/raid1/www/Hosts/bankrupt/TCRLA_Public/070313.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, March 13, 2007, Vol. 8, Issue 51
Headlines
A R G E N T I N A
ARGRAF SA: Trustee Will Verify Proofs of Claim Until April 16
ALL PRO: Proofs of Claim Verification Ends on May 18
ANJUFE SRL: Trustee Will Verify Proofs of Claim Until April 19
BOL CART: Proofs of Claim Verification Is Until May 14
CASPLAST SRL: Asks for Court Approval to Reorganize Business
CONSERGEN SRL: Trustee Will Verify Proofs of Until April 17
DELTA SOL: Proofs of Claim Verification Ends on May 28
DST SRL: Trustee Will Verify Proofs of Claim Until Aug. 8
DUONICOLAS SRL: Proofs of Claim Verification Is Until May 30
FLORMAN SA: Trustee Will Verify Proofs of Claims Until July 4
HIDROELECTRICA PIEDRA: Mulls Issuance of New Notes for US$500MM
MANDATARIA DE SERVICIOS: Trustee Will Verify Claims Until May 4
MATERLANUS SA: Trustee Will Verify Proofs of Claim Until May 15
MAZAL SA: Trustee Will Verify Proofs of Claim Until April 3
METROGAS SA: Earns ARS293 Million in 2006
MEXICO 1501: Asks Buenos Aires Court for Reorganization Approval
MISSISSIPI TOURS: Files for Bankruptcy in Buenos Aires Court
ORGANIZACION GRAN: Proofs of Claim Verification Ends on April 17
POLYMER GROUP: Net Sales Up to US$1.02 Bil. in Full Year 2006
RETCORP SA: Proofs of Claim Verification Is Until May 4
SALVAMAR SA: Trustee Will Verify Proofs of Claim Until April 26
SIDEPA SA: Proofs of Claim Validation Is Until May 9
TENNECO INC: Timothy Donovan Resigns as Executive Vice-President
* ARGENTINA: In Talks with Bolivia on Gas Pipeline Work Schedule
B A H A M A S
4114 LTD: Proofs of Claim Must Be Filed by April 5
B O L I V I A
* BOLIVIA: In Talks with Argentina on Gas Pipeline Work Schedule
B R A Z I L
ALCATEL-LUCENT: Deploys IPTV Service Solution to TDC A/S
BAUSCH & LOMB: Defers Filing of 2006 Annual Report in Form 10-K
BRASIL TELECOM: Internet Group Signs Agreement with Google
DAMOVO GROUP: New Chairman Eyes Review of Scottish Operations
DAIMLERCHRYSLER: Chrysler Feb. Sales Outside North America Up 9%
DAIMLERCHRYSLER AG: Shareholders Want Chrysler Deal Investigated
DURA AUTOMOTIVE: Creditors Must File Proofs of Claim by May 1
METSO OYJ: Board Cancels 2003 Stock Options
M-REAL OYJ: Moody's Lowers Corporate Family Rating to B3 from B2
PARANA BANCO: S&P Says Stock Offering Won't Affect Ratings
PETROLEO BRASILEIRO: May Buy Grupo Empresarial's Port Facility
PETROLEO BRASILEIRO: Pres. Lula & Bush Visit Guarulhos Units
TELE NORTE: Net Profits Increase to BRL1.31 Billion in 2006
USINAS SIDERURGICAS: Sales Volume to Reach 8 Mil. Tons in 2007
VARIG: TAM & Lan In Talks for Possible Joint Bid for Airline
* BRAZIL: Lula Inks Alternative Fuel Cooperation Pact with Bush
C A Y M A N I S L A N D S
BLUE HERON: Proofs of Claim Filing Ends on April 5
CALYPSO HOLDINGS: Proofs of Claim Must be Filed by April 5
CASCADA CAPITAL: Proofs of Claim Filing Is Until April 5
DABENREAL INDUSTRIES: Proofs of Claim Must be Filed by April 5
DOMC HOLDINGS: Proofs of Claim Filing Ends on April 5
DOMC HOLDINGS: Sets Last Shareholders Meeting for April 5
FLOREAT FUND: Proofs of Claim Must be Filed by April 5
HMTF CV: Proofs of Claim Filing Is Until April 5
FORTUNE FUND: Proofs of Claim Must be Filed by April 5
MAGNETAR STERGE: Proofs of Claim Filing Ends on April 5
MEA SPC 2: Proofs of Claim Must be Filed by April 5
MEA SPC 3: Proofs of Claim Filing Is Until April 5
MEA SPC 4: Proofs of Claim Must be Filed by April 5
MEA SPC 5: Proofs of Claim Filing Ends on April 5
MEA SPC 6: Proofs of Claim Filing Ends on April 5
MEADS COMPANY: Proofs of Claim Must be Filed by April 5
NZB ABSOLUTE: Proofs of Claim Filing Is Until April 5
OXFORD ADVISORS: Sets Last Shareholders Meeting for April 5
PREMIUM RISK: Proofs of Claim Must be Filed by April 5
SEASONS CORE: Proofs of Claim Filing Ends on April 5
TPC BLOCKER: Proofs of Claim Filing Is Until April 5
TRINITY INVESTMENT: Proofs of Claim Filing Ends on April 5
C H I L E
CORPBANCA: Forms New Unit to Address Legal Advisory Services
IRON MOUNTAIN: Prices CDN$175 Million Senior Sub. Debt Offering
NORSKE SKOGINDUSTRIER: Nominates Kim Wahl as New Chairman
C O L O M B I A
ARMSTRONG WORLD: Retention of Advisor Cues S&P to Revise Outlook
TOWER RECORDS: Court OKs Pact Expanding Consor's Retention Scope
C U B A
* CUBA: Seeks to Boost Trade with Panama by Tariff Reduction
D O M I N I C A N R E P U B L I C
AES CORP: Reaches Out-of-Court Settlement with Dominican Gov't
BANCO BHD: Says Small Firms Can Compete with Foreign Firms
BANCO INTERCONTINENTAL: BDO Ortega to Hand Over Audit
CERVECERIA NACIONAL: Moody's Puts (P)B1 Rating on Proposed Notes
CERVECERIA NACIONAL: S&P Assigns B Rating on US$270-Mil. Notes
E C U A D O R
* ECUADOR: Political Condition to Affect Lending in 2007
G R E N A D A
* GRENADA: Opposition Leader Wants Details on Russian Deal
J A M A I C A
AIR JAMAICA: May Get Cheaper Planes Due to Airbus Reorganization
DYOLL GROUP: Hoping to Get US$150 Million from Major Asset Sale
* JAMAICA: Czech Experts to Appraise Mining Sector
M E X I C O
DAIMLERCHRYSLER AG: Sells EUR2 Bil. 4.375% Bonds Due March 2010
DISTRIBUTED ENERGY: Expects Going Concern Doubt Statement
DISTRIBUTED ENERGY: Forms Venture to Fund Power Resources Plans
DOMINO'S PIZZA: Unit Accepts US$273M for Sr. Notes Tender Offers
FORD MOTOR: Court Orders Repayment of US$80 Million to Navistar
FORD MOTOR: Inks Pact to Sell Aston Martin for US$925 Million
GENERAL MOTORS: Directors Approved Bylaws Amendments
GENERAL NUTRITION: Receives Requisite Consents for Senior Notes
GENERAL NUTRITION: Discloses Fourth Quarter Financial Estimates
MOVIE GALLERY: Completes US$900MM Senior Secured Credit Facility
MOVIE GALLERY: Moody's Ups Rating on US$100-Million Credit to B1
NORTEL NETWORKS: Operating Unit Gets Default Waiver from EDC
OI EUROPEAN: Offering EUR300-Mil Sr. Notes Via Private Placement
OI EUROPEAN: Moody's Rates New EUR300 Million Senior Notes at B3
OI EUROPEAN: Fitch May Rate New EUR300-Million Senior Notes at B
PLASTICON INTERNATIONAL: Acquires 100% of AV-CB Developments
P A N A M A
CHIQUITA BRANDS: Less Than 5% of Panamanian Exports Sent to U.S.
* PANAMA: Cuba Seeks to Boost Trade with Nation by Tariff Cut
P E R U
IIRSA NORTE: Moody's Places Ba2 Sr. Sec. Notes Rating on Review
IRON MOUNTAIN: Moody's Rates Proposed CDN$175-Mln Notes at B3
IRON MOUNTAIN: S&P Rates Proposed CDN$175 Million Sr. Notes at B
PERU ENHANCED: Moody's Reviews Ba3 Discount Notes Rating
PETROLEO BRASILEIRO: To Build US$800-Mil. Plant with Petroperu
* PERU: Will Construct US$800MM Plant with Petroleo Brasileiro
P U E R T O R I C O
ALLIED WASTE: North America Unit Prices 8.5% Sr. Notes Offering
AVNET INC: Prices Offering of 5-7/8% Senior Notes
AVNET INC: Moody's Rates US$250 Million Senior Notes at Ba1
FERRELLGAS PARTNERS: Net Income Up to US$59.2MM in Second Qtr.
DEVELOPERS DIVERSIFIED: Launches US$400-Million Notes Offering
HOME PRODUCTS: Court Confirms Amended Plan of Reorganization
NEWCOMM WIRELESS: Hires Martinez Odell as Special Counsel
U R U G U A Y
ROYAL & SUN: Posts GBP20-Mil. Net Loss in Year Ended Dec. 31
V E N E Z U E L A
DAIMLERCHRYSLER AG: Will Develop Hybrid Drive System with BMW
PETROLEOS DE VENEZUELA: Prepares for Eni's Lawsuit Against Gov't
PETROLEOS DE VENEZUELA: Reduces Oil Output at Boscan Field
- - - - -
=================
A R G E N T I N A
=================
ARGRAF SA: Trustee Will Verify Proofs of Claim Until April 16
-------------------------------------------------------------
Elisa Tomattis, the court-appointed trustee for Argraf SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until April 16, 2007.
Under the Argentine bankruptcy law, Ms. Tomattis is required to
present the validated claims in court as individual reports.
Court No. 9 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Argraf SA and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Tomattis will also submit a general report that contains an
audit of Argraf SA's accounting and banking records. The report
submission dates have not been disclosed.
Argraf SA was forced into bankruptcy at the behest of
Cooperativa de Vivienda, Credito y Consumo Dielmar Limitada,
which it owes US$16,843.20.
Clerk No. 18 assists the court in the proceeding.
The debtor can be reached at:
Argraf SA
Cuzco 565
Buenos Aires, Argentina
The trustee can be reached at:
Elisa Tomattis
Callao 215
Buenos Aires, Argentina
ALL PRO: Proofs of Claim Verification Ends on May 18
----------------------------------------------------
Humberto Perez Vanmoregan, the court-appointed trustee for All
Pro Salud SA's reorganization, will verify claims from the All
Pro's creditors until May 18, 2007. After verification period,
the trustee will submit the individual and general reports in
court. Dates for submission of these reports are yet to be
disclosed.
The informative assembly will be held on Dec. 21, 2007.
Creditors will vote to ratify the completed settlement plan
during the assembly.
Court No. 8 of Buenos Aires' Civil and Commercial Tribunal
approved a petition for reorganization filed by All Pro.
The city's Clerk No. 16 assists the court on the case.
The debtor can be reached at:
All Pro Salud SA
Llavallol 4585
Buenos Aires, Argentina
The trustee can be reached at:
Humberto Perez Vanmoregan
Uruguay 599
Buenos Aires, Argentina
ANJUFE SRL: Trustee Will Verify Proofs of Claim Until April 19
--------------------------------------------------------------
Santos Luparelli, the court-appointed trustee for Anjufe SRL's
bankruptcy proceeding, will verify creditors' proofs of claim
until April 19, 2007.
Under the Argentine bankruptcy law, Mr. Luparelli is required to
present the validated claims in court as individual reports.
Court No. 25 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Anjufe and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Luparelli will also submit a general report that contains an
audit of Anjufe's accounting and banking records. The report
submission dates have not been disclosed.
Anjufe was forced into bankruptcy at the behest of Obra Social
de los Empleados de Comercio y Actividades Civiles, which it
owes US$17,187.01.
Clerk No. 49 assists the court in the proceeding.
The debtor can be reached at:
Anjufe SRL
Conde 1544
Buenos Aires, Argentina
The trustee can be reached at:
Santos Luparelli
Paraguay 2067
Buenos Aires, Argentina
BOL CART: Proofs of Claim Verification Is Until May 14
------------------------------------------------------
Fernando Seghezzo, the court-appointed trustee for Bol Cart
SRL's bankruptcy proceeding, will verify creditors' proofs of
claim until May 14, 2007.
Under the Argentine bankruptcy law, Mr. Seghezzo is required to
present the validated claims in court as individual reports.
Court No. 3 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Bol Cart and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Seghezzo will also submit a general report that contains an
audit of Bol Cart's accounting and banking records. The report
submission dates have not been disclosed.
Bol Cart was forced into bankruptcy at the behest of Union
Obreros y Empleados Plasticos, which it owes US$2,116.74.
Clerk No. 6 assists the court in the proceeding.
The debtor can be reached at:
Bol Cart SRL
L. de la Torre 2353
Buenos Aires, Argentina
The trustee can be reached at:
Fernando Seghezzo
C. de los Pozos 125
Buenos Aires, Argentina
CASPLAST SRL: Asks for Court Approval to Reorganize Business
------------------------------------------------------------
Casplast SRL has requested for reorganization approval after
failing to pay its liabilities since Dec. 10, 2006.
The reorganization petition, once approved by the court, will
allow Casplast to negotiate a settlement with its creditors in
order to avoid a straight liquidation.
The case is pending before Court No. 25. Clerk of Court No. 50
assists on this case.
The debtor can be reached at:
Casplast SRL
Teniente General J. D. Peron 1410
Buenos Aires, Argentina
CONSERGEN SRL: Trustee Will Verify Proofs of Until April 17
-----------------------------------------------------------
Mariela Bernani, the court-appointed trustee for Consergen SRL's
bankruptcy proceeding, will verify creditors' proofs of claim
until April 17, 2007.
Under the Argentine bankruptcy law, Ms. Bernani is required to
present the validated claims in court as individual reports.
Court No. 6 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Consergen and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Bernani will also submit a general report that contains an
audit of Consergen's accounting and banking records. The report
submission dates have not been disclosed.
Consergen was forced into bankruptcy at the behest of Mariana
Galvan, whom it owes US$16,506.53.
Clerk No. 12 assists the court in the proceeding.
The debtor can be reached at:
Consergen SRL
C. Larralde 3681
Buenos Aires, Argentina
The trustee can be reached at:
Mariela Bernani
Marcelo T. de Alvear 1364
Buenos Aires, Argentina
DELTA SOL: Proofs of Claim Verification Ends on May 28
------------------------------------------------------
Gisela Corradini, the court-appointed trustee for Delta Sol SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until May 28, 2007.
Under the Argentine bankruptcy law, Ms. Corradini is required to
present the validated claims in court as individual reports.
Court No. 6 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Delta Sol and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Corradini will also submit a general report that contains an
audit of Delta Sol's accounting and banking records. The report
submission dates have not been disclosed.
Delta Sol was forced into bankruptcy at the behest of Alejandro
Jose Dagnino, whom it owes ARP12,000.
Clerk No. 12 assists the court in the proceeding.
The debtor can be reached at:
Delta Sol SA
Talcahuano 481
Buenos Aires, Argentina
The trustee can be reached at:
Gisela Corradini
Albania 4518
Buenos Aires, Argentina
DST SRL: Trustee Will Verify Proofs of Claim Until Aug. 8
---------------------------------------------------------
Leon Fuks, the court-appointed trustee for DST SRL's bankruptcy
proceeding, will verify creditors' proofs of claim until
Aug. 8, 2007.
Under the Argentine bankruptcy law, Mr. Fuks is required to
present the validated claims in court as individual reports.
Court No. 21 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by DST and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Fuks will also submit a general report that contains an
audit of DST's accounting and banking records. The report
submission dates have not been disclosed.
DST was forced into bankruptcy at the behest of Cooperativa de
Credito del Milenio Ltda.
Clerk No. 42 assists the court in the proceeding.
The debtor can be reached at:
DST SRL
Cabildo 2327
Buenos Aires, Argentina
The trustee can be reached at:
Leon Fuks
Viamonte 1636
Buenos Aires, Argentina
DUONICOLAS SRL: Proofs of Claim Verification Is Until May 30
------------------------------------------------------------
Gabriel Ail, the court-appointed trustee for Duonicolas SRL's
bankruptcy proceeding, will verify creditors' proofs of claim
until May 30, 2007.
Under the Argentine bankruptcy law, Mr. Ail is required to
present the validated claims in court as individual reports.
Court No. 20 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Duonicolas and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Ail will also submit a general report that contains an audit
of Duonicolas's accounting and banking records. The report
submission dates have not been disclosed.
Duonicolas was forced into bankruptcy at the behest of Banca
Nazionale del Lavoro SA, which it owes US$14,738.68.
Clerk No. 39 assists the court in the proceeding.
The debtor can be reached at:
Duonicolas SRL
Jujuy 101
Buenos Aires, Argentina
The trustee can be reached at:
Gabriel Ail
Cordoba 1352
Buenos Aires, Argentina
FLORMAN SA: Trustee Will Verify Proofs of Claims Until July 4
-------------------------------------------------------------
Lidia Albite, the court-appointed trustee for Florman SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until July 4, 2007.
Under the Argentine bankruptcy law, Ms. Albite is required to
present the validated claims in court as individual reports.
Court No. 3 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Florman and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Albite will also submit a general report that contains an
audit of Florman's accounting and banking records. The report
submission dates have not been disclosed.
Florman was forced into bankruptcy at the behest of Arenera
Pueyrredon SA, which it owes US$6,500.
Clerk No. 5 assists the court in the proceeding.
The debtor can be reached at:
Florman S.A.
Suipacha 760
Buenos Aires, Argentina
The trustee can be reached at:
Lidia Albite
Tacuari 119
Buenos Aires, Argentina
HIDROELECTRICA PIEDRA: Mulls Issuance of New Notes for US$500MM
---------------------------------------------------------------
Hidroelectrica Piedra del Aguila S.A. will hold a shareholders
meeting on March 22 to decide on the issuance of a Global
Program of Obligaciones Negociables of up to US$500 million.
During the meeting, the company's shareholders will also decide
how the funds will be used.
Headquartered in Buenos Aires, Argentina, Hidroelectrica Piedra
del Aguila S.A. is an electric power distributor.
As reported on Jan. 31, 2007, Fitch Argentina Calificadora de
Riesgo assigned these ratings on Hidroelectrica Piedra del
Aguila S.A.'s debts:
-- Obligaciones Negociables Series A for US$64,500,000, BB-
-- Obligaciones Negociables Series B for US$35,600,000, BB-
-- Obligaciones Negociables Series C for US$39,300,000, BB-
-- Obligaciones Negociables Series D for US$22,800,000, BB-
-- Obligaciones Negociables Simples for US$300,000,000, BB-
-- Program of Obligaciones Negociables for US$300,000,000, B
-- Class I under the US$300 million program for
US$97,300,000, BB-
-- Class II under the US$300 million program for
US97,300,000, BB-
-- Clase III under the US$300 illion program for
US62,500,000, BB-
MANDATARIA DE SERVICIOS: Trustee Will Verify Claims Until May 4
---------------------------------------------------------------
Norma Tabloada, the court-appointed trustee for Mandataria de
Servicios SA's bankruptcy proceeding, will verify creditors'
proofs of claim until May 4, 2007.
Under the Argentine bankruptcy law, Ms. Tabloada is required to
present the validated claims in court as individual reports.
Court No. 1 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Mandataria de Servicios and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Marletta will also submit a general report that contains an
audit of Mandataria de Servicios's accounting and banking
records. The report submission dates have not been disclosed.
Mandataria de Servicios was forced into bankruptcy at the behest
of Petrolera del Conosur SA, which it owes US$12,000.
Clerk No. 1 assists the court in the proceeding.
The debtor can be reached at:
Mandataria de Servicios SA
Uruguay 469
Buenos Aires, Argentina
The trustee can be reached at:
Norma Tabloada
Ezeiza 2461
Buenos Aires, Argentina
MATERLANUS SA: Trustee Will Verify Proofs of Claim Until May 15
---------------------------------------------------------------
Oscar Scally, the court-appointed trustee for Materlanus SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until May 15, 2007.
Under the Argentine bankruptcy law, Mr. Scally is required to
present the validated claims in court as individual reports.
Court No. 3 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Materlanus and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Scally will also submit a general report that contains an
audit of Materlanus's accounting and banking records. The
report submission dates have not been disclosed.
Materlanus was forced into bankruptcy at the behest of Arenera
Pueyrredon SA, which it owes US$14,065.55.
Clerk No. 6 assists the court in the proceeding.
The debtor can be reached at:
Materlanus SA
Tacuari 1772
Buenos Aires, Argentina
The trustee can be reached at:
Oscar Scally
Arenales 1345
Buenos Aires, Argentina
MAZAL SA: Trustee Will Verify Proofs of Claim Until April 3
-----------------------------------------------------------
Gisela Corradini, the court-appointed trustee for Mazal SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until April 3, 2007.
Under the Argentine bankruptcy law, Ms. Corradini is required to
present the validated claims in court as individual reports.
Court No. 6 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Mazal and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Corradini will also submit a general report that contains an
audit of Mazal's accounting and banking records. The report
submission dates have not been disclosed.
Mazal was forced into bankruptcy at the behest of Unilan Trelew
SA, which it owes US$7,325.
Clerk No. 12 assists the court in the proceeding.
The debtor can be reached at:
Mazal SA
Pinzon 1335
Buenos Aires, Argentina
The trustee can be reached at:
Gisela Corradini
Albania 4518
Buenos Aires, Argentina
METROGAS SA: Earns ARS293 Million in 2006
-----------------------------------------
Metrogas SA said in a filing with the stock exchange Bolsa de
Comercio de Buenos Aires that its net profits increased to
ARS293 million in 2006, compared to ARS28.4 million in 2005.
As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Metrogas SA (Chile) or Metrogas Chile said in a
filing with Superintendencia de Valores y Seguros de Chile that
its consolidated net profits increased 5.7% to CLP35.8 billion
in 2006, compared to 2005.
Business News Americas relates that the boost in Metrogas'
Argentine profits was mainly due to its debt restructuring.
Metrogas said in its year-end earnings statement that the its
restructuring, which concluded in May 2006, provided the firm
with ARS389 million.
BNamericas underscores that Metrogas' operating profit in 2006
increased to ARS112 million, from ARS83.1 million in 2005, due
in part to lower operating costs, which dropped 10.5% to ARS626
million because the costs of gas purchases declined 23.2% to
ARS285 million.
According to the report, Metrogas' sales decreased 2% to ARS874
million in 2006, compared to 2005. The total volume of gas
Metrogas supplied to clients rose 8% to 8.52 billion cubic
meters.
Metrogas said in a statement that net equity at the end of 2006
increased to ARS974 million, from ARS681 million at the end of
2005.
Business News Americas emphasizes that Metrogas' operating
profit in the fourth quarter of 2006 was ARS6.95 million,
compared to a 43,000-loss in 2005. Metrogas' net losses in the
fourth quarter of 2006 totaled ARS8.2 million, compared to the
ARS65.1 million net loss reported in the same period in 2005.
Metrogas' sales rose 9.3% to ARS195 million in the fourth
quarter 2006, compared to the fourth quarter 2005, BNamericas
states.
Headquartered in Buenos Aires, Argentina, Metrogas SA --
http://www.metrogas.com.ar/-- distributes gas to Buenos Aires
and southern and eastern greater metropolitan Buenos Aires. The
Company has a 35-year concession that began in 1992 to provide
natural gas in this area. The concession is renewable for an
additional 10 years. Metrogas supplies some 2 million customers
in Buenos Aires through 15,840 km of pipelines, representing
about 26% of all gas retailed in Argentina. Metrogas is 45%
owned by a subsidiary of UK gas production company BG Group and
26% owned by a unit of Spanish oil company Repsol YPF.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 15, 2007, Standard & Poor's as rated Metrogas SA's debts:
-- Obligaciones Negociables Series for US$26,254,764, raBB+
-- Program of Obligaciones Negociables simples for
US$600,000,000, D
-- Obligaciones Negociables Series 2-B for EUR26,070,450
-- Obligaciones Negociables Series 1 for US$236,285,638,
raBB+.
In addition, Metrogas' ordinary class B shares had been included
in category 4. The rating action was based on the company's
balance sheet at Sept. 30, 2006.
MEXICO 1501: Asks Buenos Aires Court for Reorganization Approval
----------------------------------------------------------------
Mexico 1501 SA has requested the Buenos Aires Court No. 18 for
the firm's reorganization after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Mexico 1501 to negotiate a settlement with its creditors
in order to avoid a straight liquidation.
Clerk of Court No. 35 assists on this case.
The debtor can be reached at:
Mexico 1501 SA
Mexico 1501
Buenos Aires, Argentina
MISSISSIPI TOURS: Files for Bankruptcy in Buenos Aires Court
------------------------------------------------------------
Mississipi Tours SA has filed for bankruptcy in Buenos Aires
Court No. 24 after failing to pay its liabilities since
April 11, 2003.
Clerk No. 48 assists the court in the proceeding.
The debtor can be reached at:
Mississipi Tours SA
Jovellanos 174
Buenos Aires, Argentina
ORGANIZACION GRAN: Proofs of Claim Verification Ends on April 17
----------------------------------------------------------------
Hector Franco, the court-appointed trustee for Organizacion Gran
Sud SA's bankruptcy proceeding, will verify creditors' proofs of
claim until April 17, 2007.
Under the Argentine bankruptcy law, Mr. Franco is required to
present the validated claims in court as individual reports.
Court No. 25 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Organizacion Gran and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Franco will also submit a general report that contains an
audit of Organizacion Gran's accounting and banking records.
The report submission dates have not been disclosed.
Organizacion Gran was forced into bankruptcy at the behest of
Orlando Quinteros, whom it owes US$2,116.74.
Clerk No. 49 assists the court in the proceeding.
The debtor can be reached at:
Organizacion Gran Sud SA
Brasil 1116
Buenos Aires, Argentina
The trustee can be reached at:
Hector Franco
Chacabuco 178
Buenos Aires, Argentina
POLYMER GROUP: Net Sales Up to US$1.02 Bil. in Full Year 2006
-------------------------------------------------------------
Polymer Group, Inc. reported unaudited results of operations for
the fourth quarter and fiscal year ended Dec. 30, 2006.
Highlights included:
-- Net sales for the fiscal year of 2006 increased 7.7% to a
record high US$1.02 billion.
-- Fourth quarter net sales increased 9.8% to US$263.9
million, while gross profit increased 12.8% to US$41.4
million for the quarter. Fourth quarter profitability
rebounded substantially over the prior year period and
sequential quarter as a result of higher volumes and lower
unit costs, including lower raw material costs during the
quarter.
-- The company expects continued strength and improvement in
2007, as recent capacity expansions contribute to higher
margins, coupled with productivity and cost improvements in
North America.
"I am pleased to report that PGI ended 2006 on a strong note,"
said PGI's chairman and interim chief executive officer, William
B. Hewitt. "Our fourth quarter returned to a more acceptable
level of performance and we have the right initiatives in place
to continue on a steady trend of improvement going forward. I
am encouraged by the progress we are making with both our
capacity expansions and new product introductions that will
drive performance in 2007."
Fourth Quarter Overview
Net sales for the fourth quarter of 2006 were US$263.9 million,
up US$23.5 million from US$240.4 million in the fourth quarter
of 2005, driven primarily by higher volumes from new capacity
additions and price increases implemented to offset the effects
of higher raw material costs experienced in the prior quarters.
The recovery in certain base business volumes experienced in
late third quarter of 2006 also contributed to higher sales in
the fourth quarter.
Fourth quarter gross profit increased US$4.7 million to US$41.4
million compared to US$36.7 million during the same period the
prior year, representing an increase of 12.8%. The company's
gross margin improved to 15.7% compared to 15.3% for the prior
year and 14.1% in the third quarter of 2006. Cost of goods sold
for the fourth quarter included US$1.2 million of higher
depreciation costs compared with the prior year period as a
result of the capacity investments made during the year. The
company continued to control selling, general and administrative
expense during the quarter, reducing SG&A as a percent of sales
to 10.3% compared to 10.7% the prior year. As a result,
underlying performance improved substantially compared to the
same period in 2005 and the prior quarter.
During the fourth quarter of 2006, the company recognized
US$21.9 million of special charges, primarily composed of non-
cash asset impairment charges of US$18.6 million. The largest
component of the non-cash asset impairment charges relates to
specific hydroentanglement-based lines in the U.S. and Europe
where the company plans to exit low-margin business in efforts
to optimize profit mix and manufacturing costs. Additionally,
the company recognized non-cash asset impairment charges of
US$1.8 million in the U.S. associated with the previously
announced plant consolidation plan. The company also recorded
cash restructuring and plant realignment charges of US$2.0
million during the quarter associated with the previously
announced cost reduction initiatives in the U.S., Canada and
Europe, and US$1.3 million of other cash charges primarily
associated with the investigation announced in the third
quarter. After the US$21.9 million of special charges, the
company reported an operating loss of US$7.1 million, compared
to operating income of US$11.0 million during the fourth quarter
of 2005. The company reported a net loss of US$18.9 million in
the fourth quarter compared to a net loss of US$2.4 million in
the fourth quarter of 2005.
The company generated substantially higher levels of cash during
the quarter as it continued to reduce relative working capital
levels. Operating working capital (defined as accounts
receivables plus inventories less accounts payable) was 15.1% of
annualized fourth quarter sales compared to 16.4% the comparable
prior-year period.
Full Year Overview
"2006 was a year of growth and challenges," Mr. Hewitt said. "We
successfully started up three large- scale capacity expansions
and generated record revenue, clearing US$1 billion for the
first time in the company's history. We continued to execute on
the growth and innovation aspects of our strategy, even as
economic and market conditions created an undertow that
temporarily slowed the rate of profit growth in 2006.
Contributing factors include elevated raw material prices in
North America, a softening of the housing market, offshore
competition for our Canadian lumber wrap sales, a downturn in
the auto segment, and lower-than-projected demand in some
consumer markets," he said. "Despite these challenges, we made
significant progress positioning the company for industry
leadership through our investments in new technology and
capacity. Additionally, we have been focused on implementing
the right initiatives to improve our competitive position and
cost structure. I am convinced we have the right strategies in
place to resume a trend of continued profit improvement and to
become the industry leader."
2006 net sales were US$1.02 billion, up US$72.8 million over the
prior year. The primary drivers of the increase were higher
volumes from the new capacity additions and higher selling
prices implemented to offset raw material price increases
throughout the year.
Gross profit for the year was US$156.2 million compared to
US$161.5 million in 2005. The decline was due partially to
US$3.8 million of higher depreciation costs as the new lines
were commissioned, in addition to the lower profitability
experienced during the second and third quarters of the year.
The company improved SG&A as a percent of sales for the year to
10.8% compared to 11.0% the prior year. In addition to the
special charges in the fourth quarter described above, the
company previously reported charges associated with abandoned
acquisition costs and plant realignment and restructuring costs.
After US$38.7 million of special charges recognized during 2006,
the company's operating income for fiscal 2006 was US$5.9
million compared to operating income of US$56.3 million for the
fiscal year of 2005.
The company refinanced its senior bank facility in November of
2005 resulting in a lower comparable interest rate and decreased
its overall debt level during the year. As a result, interest
expense declined US$3.3 million over the prior fiscal year to
US$29.2 million. Total debt at the end of the year was US$411.2
million compared to US$415.2 million the prior year. As a
result of the above and after income tax expense of US$7.3
million, the company reported a net loss to common shareholders
of US$34.5 million compared to a net loss to common shareholders
of US$21.0 million the prior year.
2007 Outlook
The company expects to improve profits in 2007 as a result of
the full year impact of capacity expansions that were completed
in 2006, new technology commercializations in the second half of
2007, and lower costs from restructuring and consolidation plans
that have been initiated.
The company commercialized its Mooresville, N.C. spunbond line
in June of 2006 and expects 2007 to benefit from a full year of
production from that line. Additionally, the new facility in
Suzhou, China was starting up during the second half of 2006 and
is expected to significantly contribute to sales and profit
growth in fiscal 2007 as it transitions to full commercial
production.
The company announced the introduction of new Spinlace(R)
fabrics that are expected to begin production in late summer
2007 at PGI's Benson, N.C. plant. As the new product platforms
ramp up, the company expects a portion of the sales and profit
benefits to be recognized late in the year, with the predominant
amount of the impact in fiscal year 2008.
Earlier this year, the company announced a U.S. plant
consolidation plan that will result in the closure of its
Rogers, Ark. and Gainesville, Ga. plants by mid-year. These
plans are expected to result in a reduction of fixed overhead of
approximately US$4 million to US$6 million annualized, which is
expected to have a partial benefit in the latter portion of 2007
and full year benefit in 2008. The company has also implemented
a number of restructuring initiatives in North America and
Europe to improve its productivity and cost position, while
managing the exit of certain low-margin product lines associated
with the plant consolidation plans previously announced. This
is expected to result in higher profit levels in North America,
albeit at slightly lower sales levels compared to fiscal year
2006. As a result of the initiatives in place for the year, the
company expects year-over-year improvement in operating
profitability, with sales in developing regions being driven by
volume growth balanced against the consolidation plans in North
America during the second half of the year.
Polymer Group, Inc., -- http://www.polymergroupinc.com/--
(OTC Bulletin Board: POLGA/POLGB) develops, manufactures and
markets engineered materials. The company operates 22
manufacturing facilities in 10 countries throughout the world.
The company has manufacturing offices in Argentina, China and
France, among others.
* * *
As reported in the Troubled Company Reporter on Nov. 24, 2006,
Standard & Poor's Ratings Services revised its outlook on
Polymer Group Inc. to negative from stable. All ratings,
including the 'BB-' corporate credit rating, were affirmed.
The outlook revision followed several quarters of weaker-than-
expected performance and somewhat higher-than-expected debt
primarily due to raw material cost escalation and some product
mix shifts. Also contributing to the disappointing results were
several one-time items such as costs related to technical
problems associated with new equipment, an acquisition that was
not consummated, the closing of manufacturing capacity, and
moving the company's headquarters.
RETCORP SA: Proofs of Claim Verification Is Until May 4
-------------------------------------------------------
Pablo Luis Peregal, the court-appointed trustee for Retcorp SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until May 4, 2007.
Under the Argentine bankruptcy law, Mr. Peregal is required to
present the validated claims in court as individual reports.
Court No. 8 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Retcorp and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Peregal will also submit a general report that contains an
audit of Retcorp's accounting and banking records. The report
submission dates have not been disclosed.
Retcorp was forced into bankruptcy at the behest of Maria
Magdalena Cruz, whom it owes US$16,073.
Clerk No. 16 assists the court in the proceeding.
The debtor can be reached at:
Retcorp SA
Paraguay 3150
Buenos Aires, Argentina
The trustee can be reached at:
Pablo Luis Peregal
Avenida Leandro N. Alem 651
Buenos Aires, Argentina
SALVAMAR SA: Trustee Will Verify Proofs of Claim Until April 26
---------------------------------------------------------------
Nestor Szwarcberg, the court-appointed trustee for Salvamar SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until April 26, 2007.
Under the Argentine bankruptcy law, Mr. Szwarcberg is required
to present the validated claims in court as individual reports.
Court No. 1 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Salvamar and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Szwarcberg will also submit a general report that contains
an audit of Salvamar's accounting and banking records. The
report submission dates have not been disclosed.
Salvamar was forced into bankruptcy at the behest of Transportes
Generales Darsena A, which it owes US$25,220.35.
Clerk No. 2 assists the court in the proceeding.
The debtor can be reached at:
Nestor Szwarcberg
B. Mitre 688
Buenos Aires, Argentina
The trustee can be reached at:
Laura Marletta
H. Yrigoyen 1349
Buenos Aires, Argentina
SIDEPA SA: Proofs of Claim Validation Is Until May 9
----------------------------------------------------
Carlos Alberto Vicente, the court-appointed trustee for Sidepa
SA's bankruptcy proceeding, will verify creditors' proofs of
claim until May 9, 2007.
Under the Argentine bankruptcy law, Mr. Vicente is required to
present the validated claims in court as individual reports.
Court No. 2 of Buenos Aires' Civil and Commercial Tribunal will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
raised by Sidepa and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Vicente will also submit a general report that contains an
audit of Sidepa's accounting and banking records. The report
submission dates have not been disclosed.
Sidepa was forced into bankruptcy at the behest of Gregorio
Aranda, whom it owes US$8,895.
Clerk No. 3 assists the court in the proceeding.
The debtor can be reached at:
Sidepa SA
Bacacay 2099
Buenos Aires, Argentina
The trustee can be reached at:
Carlos Alberto Vicente
Corrientes 2166
Buenos Aires, Argentina
TENNECO INC: Timothy Donovan Resigns as Executive Vice-President
----------------------------------------------------------------
Tenneco Inc. disclosed that Timothy R. Donovan, executive vice
president, general counsel and member of the board of directors,
is leaving the company to pursue another opportunity.
Mr. Donovan's resignation from Tenneco is effective on March 16.
His resignation from the company's board of directors was
effective Feb. 28. Tim joined Tenneco as senior vice president
and general counsel in August 1999.
Both internal and external candidates will be considered to fill
the general counsel position.
"Tim has played an important role in establishing Tenneco as a
successful stand-alone company. Over the past seven years, his
leadership and strong legal counsel have greatly facilitated
Tenneco's restructuring efforts and growth strategies around the
world," said Gregg Sherrill, chairman and CEO, Tenneco. "On
behalf of all Tenneco employees, I thank Tim for his outstanding
contributions and dedication. We wish him much success in his
new endeavor."
Headquartered in Lake Forest, Illinois, Tenneco Inc. --
http://www.tenneco.com/-- is a leading manufacturer of
automotive ride control and emissions control products and
systems for both the worldwide original equipment market and
aftermarket. Leading brands include Monroe(R), Rancho(R), and
Fric Rot ride control products and Walker(R) and Gillet emission
control products.
The company has global operations in Argentina, Japan, and
Germany, among others, with its European operations
headquartered in Brussels, Belgium.
* * *
As reported on Oct. 27, 2006, Moody's Investors Service
confirmed its B1 Corporate Family Rating for Tenneco Inc. in
connection with the rating agency's implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the U.S. Automotive and Equipment sectors.
* ARGENTINA: In Talks with Bolivia on Gas Pipeline Work Schedule
----------------------------------------------------------------
Argentine Federal Planning Ministry said in a statement that
Minister Julio de Vido has started discussing with Bolivian
Hydrocarbons Minister Carlos Villegas the work schedule for the
Gasoducto Noreste Argentino gas pipeline project, which will
link the two nations.
Business News Americas relates that the meeting was set to study
the possible tender for the construction of the US$1.3-billion
pipeline, which is expected to start providing about 20 million
cubic meters per day of gas to Argentina from 2010.
Bolivia signed an accord with Argentina in October 2006 to boost
gas export volumes to the latter to 27.7 million cubic meters
per day by 2010.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
=============
B A H A M A S
=============
4114 LTD: Proofs of Claim Must Be Filed by April 5
--------------------------------------------------
4114 Ltd.'s creditors are given until April 5, 2007, to prove
their claims to Alpha Direction Limited, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
4114 Ltd. was placed into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Alpha Direction Limited
Oceanic Bank and Trust Limited
TK House, Bayside Executive Park
West Bay St. And Blake Road
P.O. Box AP 59213
Nassau, Bahamas
=============
B O L I V I A
=============
* BOLIVIA: In Talks with Argentina on Gas Pipeline Work Schedule
----------------------------------------------------------------
Bolivian Hydrocarbons Minister Carlos Villegas has started
discussing with Argentine Federal Planning Minister Julio de
Vido the work schedule for the Gasoducto Noreste Argentino gas
pipeline project, which will link the two nations, the latter
said in a statement.
Business News Americas relates that the meeting was set to study
the possible tender for the construction of the US$1.3-billion
pipeline, which is expected to start providing about 20 million
cubic meters per day of gas to Argentina from 2010.
Bolivia signed an accord with Argentina in October 2006 to boost
gas export volumes to the latter to 27.7 million cubic meters
per day by 2010.
* * *
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
===========
ALCATEL-LUCENT: Deploys IPTV Service Solution to TDC A/S
--------------------------------------------------------
Alcatel-Lucent has deployed its IPTV solution, including the
Microsoft IPTV Edition software platform, to TDC A/S.
TDC has rolled-out a nationwide commercial IPTV service. With
the recent TDC TVlaunch, TDC has inaugurated Denmark's largest
and most state-of-the-art interactive TV network with service
available to more than 1.6 million households.
Building on Alcatel-Lucent's commitment to support service
providers in delivering a truly converged TV experience, this
critical market milestone follows TDC's selection of Alcatel-
Lucent's IPTV offering, including the Microsoft IPTV Edition
software platform, in 2006. Alcatel-Lucent has established a
leading position in interactive TV services, and already enables
TV, video and music services for more than 110 fixed and mobile
service providers around the world.
The solution delivered to TDC includes comprehensive Alcatel-
Lucent services integration as well as the Microsoft TV IPTV
Edition software platform. Based on this solution, TDC TV
subscribers will benefit from an enriched entertainment
experience with broadband access to 35 television channels, an
electronic program guide, digital recorder with pause feature,
and access to more than 200 movie titles available at their
convenience via video on demand technology. The network is also
HDTV-ready.
"The new generation of TDC TV is one of TDC's most important
growth projects within broadband for many years. This is one
example of how broadband will be playing a still greater role in
our everyday lives in the future," said Gert Rieder, President
of TDC Solutions. "We deliver telephony, Internet, and TV
through one and the same wall outlet. This is clearly the most
user-friendly solution in the market because it is interactive
and offers convenient access to individual content preferences
such as on-demand movie rentals."
"With the launch of TDC TV, TDC is playing a market leadership
role by pioneering IPTV service delivery in the Nordic region,"
said Lars Boilesen, head of Alcatel-Lucent's activities in the
Nordic & Baltic countries. "The successful delivery of advanced
entertainment services is a milestone not only for TDC and
Alcatel-Lucent but also for other carriers in the region who are
looking to capitalize on increasing demand for advanced,
enhanced entertainment services."
About TDC A/S
Headquartered in Copenhagen, Denmark, TDC A/S --
http://www.tdc.dk/-- through its subsidiaries and affiliates,
provides communication solutions in Europe. It provides
communication services in Denmark and Switzerland, and has a
significant presence in selected Northern and Central European
telecommunication markets. It operates through five business
lines.
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.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Australia, Brunei and Cambodia.
* * *
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 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.
BAUSCH & LOMB: Defers Filing of 2006 Annual Report in Form 10-K
---------------------------------------------------------------
Bausch & Lomb disclosed in a regulatory filing with the U.S.
Securities and Exchange Commission that it delayed the filing of
its Annual Report on Form 10-K for 2006. The report was due
Feb. 28.
The company said that its inability to file is principally due
to the considerable time and effort that it had to devote to
completing the recently completed financial restatement and
filing of its Form 10-K for 2005. This has prevented the
company from being able to timely complete its financial close
process for 2006.
The company said that it expects to file the 2006 10-K by
April 30.
The company filed its annual report on Form 10-K for the year
ended Dec. 31, 2005, with the SEC on Feb. 7.
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.
2005 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.
While in Europe, the company maintains operations in Austria,
Germany, the Netherlands, Spain, and the U.K., among others.
* * *
On Feb. 2, 2007, 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.
BRASIL TELECOM: Internet Group Signs Agreement with Google
----------------------------------------------------------
Brasil Telecom S.A. and Brasil Telecom Participacoes S.A. said
that the Internet Group, its Internet division which includes
the portals iG, iBest and BrTurbo, had reported a strategic
partnership unprecedented in the Brazilian market with Google.
Initially, the agreement allows Google to provide e-mailing
platform and PSP (customized homepage) to the Internet Group.
Google will also be the provider of the search engine of the
portals and will explore the sponsored links segments.
The main strength in the agreement consists in the combination
of Google's platforms with Internet Group's portals' contents
and services. Currently, Google has agreements with other
portals only for search engine and sponsored links.
Google's technology sharing will not reduce Internet Group's
investments on own technology. There will be a combination of
the best tools of both companies, which will lead to greater
accessibility, portability and connectivity for its users.
About Google
Google Inc. offers advertising and Internet search solutions, as
well as intranet solutions through an enterprise search
appliance. The company, through Google.com, provides Google
WebSearch that offers access to Web pages; Google Image Search,
a searchable index of images found across the Web; Google Groups
that enable participation in Internet discussion groups; Google
News that gathers information from news sources and presents
news in a searchable format; Froogle, a shopping search engine;
Google Local that allows users to find driving directions and
local businesses; and Google Desktop that enables users to
perform a text search on the contents of their own computer.
About Brasil Telecom
Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA. The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intraregional long-
distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.
* * *
Brasil Telecom Participacoes' local currency long-term debt
carries Fitch's BB+ rating.
* * *
Moody's Investors Service placed a Ba1 local currency long-term
issuer rating on Brasil Telecom.
DAMOVO GROUP: New Chairman Eyes Review of Scottish Operations
-------------------------------------------------------------
Mike Parton, who agreed to become chairman of Damovo Group S.A.
after its financial restructuring, intends to initiate a review
of the telecom services group's Scottish operations, Guy Dixon
writes for Scotsman.
According to the report, the restructuring is expected to close
by mid-April during which creditors, whose identities remain
undisclosed, will take control.
However, Damovo may retain its world headquarters in Scotland
and keep its management team including Chief Executive Bob
Contreras and Chief Operating Officer Joe Boyle.
Paul Ward, U.K. managing director of Houlihan Lokey Howard and
Zukin, told Scotsman that there are no plans under way for
Damovo's Scottish staff just yet as actions are focused on
getting the capital structure of the company fixed.
Houlihan Lokey Howard and Zukin, is an investment bank advising
Damovo on the restructuring.
In December 2006, Damovo's bondholders approved a EUR358-million
(US$508 million) swap of fixed-rate and floating-rate bonds due
in 2012 for equity in the company, Bloomberg relates.
As previously reported, the telecom services group deferred on
its EUR18.9-million semi-annual coupon payment due on
Oct. 30, 2006, under the EUR350 million senior secured notes
issued by subsidiary Damovo III S.A.
As part of the company's recent financial restructuring,
bondholders also approved EUR50 million in new funding for the
group's Italian subsidiaries.
Headquartered in Glasgow, Scotland, Damovo Group S.A. --
http://www.damovo.com/-- is a provider of information and
communications technology (ICT) and services to public service
organizations and larger private sector companies. The company
also maintains operations in Belgium, Brazil, Czech Republic,
Germany, Ireland, Italy, Mexico, Poland, Switzerland and the
United Kingdom.
* * *
As reported on Feb. 1, Standard & Poor's Ratings Services
withdrew its 'D' long-term corporate credit rating on U.K.-based
telecommunication services provider Damovo Group S.A., and 'D'
senior secured debt ratings and '4' recovery rating on
subsidiary Damovo III S.A.
In November 2006, Moody's Investors Service downgraded the
corporate family rating of Damovo Group S.A. to Caa3 from Caa1
following the non-payment of a semi-annual interest coupon due
on Oct. 30 on the company's 2012 senior notes and the
announcement of its intention to undertake a financial
restructure. Moody's has concurrently downgraded the rating on
the senior notes, which are issued at Damovo III S.A. to Ca from
Caa2. Moody's said the outlook is negative. The rating actions
conclude a review initiated on Oct. 16.
DAIMLERCHRYSLER: Chrysler Feb. Sales Outside North America Up 9%
----------------------------------------------------------------
Chrysler Group celebrated 21 consecutive months of sales
increases outside North America, as February closed with 9%
growth (15,194 units) over the same month in 2006. Year-to-
date, sales grew 10% over 2006, with much of the increase coming
from higher sales in Europe and Asia.
The Dodge Caliber was the top-selling Chrysler Group vehicle
outside North America year-to-date (4,834units), and continued
to be the Chrysler Group sales leader in Western Europe, the
largest-volume region. Dodge brand sales led Chrysler Group's
expansion efforts in international markets with sales up 278%.
"The global success of Dodge Caliber shows us that there is a
significant group of customers in European and international
markets who are attracted to the bold and unique characteristics
of the Dodge brand," Chrysler Group Executive Director for
International Sales and Marketing Thomas Hausch said. "And we
have more to come; later this year, the Dodge Nitro and Avenger
will be available to customers all over the world."
For the month, Chrysler 300C led the product lineup in terms of
both sales and overall growth with 2,629 units sold and a 57%
increase. Local production of the Chrysler 300C began at the
end of last year in Beijing; and in February, the vehicle
outsold any other Chrysler Group vehicle in the Chinese market
by more than five times. Growth in the Asia Pacific region as a
whole was up 26% for the month.
Italy remained the company's largest volume market with sales up
2% and 3,363 units sold so far in 2007. It is followed by
Germany, which has seen double-digit growth of 13% in 2007, and
a total of 2,372 units sold.
"The positive sales trend that we're seeing in these markets is
showing that our vehicles, dealer network and marketing efforts
are appealing to new customers. A direct result is increased
profitability; 2006 was the most profitable year ever for
Chrysler Group's International operations," Mr. Hausch said.
"We have a strong dealer network in place with the right
products in the market, and more on the way, to sustain this
growth. And in the fast-growing markets, we are reaching out to
new dealers to increase our network and ensure that the customer
experience there is a positive one as well, in addition to
increasing brand awareness and loyalty."
Expansion and sales growth in international markets has been a
strategic goal for the Chrysler Group in recent years. As an
example of commitment to this effort, last month the company
announced that the Dodge brand will join Chrysler and Jeep(R)
vehicles for sale in China. Starting this year, all three
Chrysler Group brands will be sold there for the first time
ever, laying the foundation for future growth and continued
expansion outside North America.
Chrysler Group sells and services vehicles in more than
125 countries around the world, and Chrysler Group sales outside
North America currently account for approximately 8% of the
company's total global sales. Vehicles available range across
all three Chrysler Group brands, with limited availability on
some trucks and SUV models. The company's operations outside
North America have been experiencing year-over-year sales
increases since 2004, and will continue to increase the number
of product offerings, powertrain options and RHD availability
through 2007.
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 company's worldwide locations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.
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 AG: Shareholders Want Chrysler Deal Investigated
----------------------------------------------------------------
DaimlerChrysler AG shareholders Ekkehard Wenger and Leonhard
Knoll are calling for special audits that could lead to damage
claims against the company's supervisory board, in a new sign of
friction between investors and management of the German-U.S.
carmaker, Matthias Krust at The Wall Street Journal reports.
The two investors, WSJ says, have succeeded in amending the
agenda of the company's April 4 annual shareholders meeting to
include a motion that, if successful, would require an audit of
the 1998 takeover of the former Chrysler Corp. by the former
Daimler-Benz AG.
According to the report, Messrs. Wenger and Knoll say company
officials did not calculate the companies' value correctly and
that DaimlerChrysler management added a 30% premium to the
market value of the Chrysler shares when determining the
exchange ratio used for the merger of both companies.
In response, DaimlerChrysler said in a statement cited by WSJ
that there is no reason for the requested investigations.
As reported in the Troubled Company Reporter on March 8, 2007,
the Journal said that DaimlerChrysler Chief Executive Officer
Dieter Zetsche confirmed his company is talking to General
Motors Corp. about sharing the costs of future sport-utility
vehicles, but he and GM's CEO stayed mum about whether GM could
try to buy its Chrysler arm outright.
According to that report, Mr. Zetsche reiterated that the auto
maker is considering "all options" for Chrysler, including a
possible sale, which move came amid rising investor frustration
over the division's losses.
Lower February Sales
As reported in the Troubled Company Reporter on Mar. 2, 2007,
DaimlerChrysler AG's Chrysler Group reported sales for February
2007 of 174,506 units; down 8% compared with February 2006 with
190,367 units. All sales figures are reported unadjusted.
"In a generally soft market environment in February, the
Chrysler Group had good traffic and solid customer interest
especially for our newly launched, fuel efficient models like
the Dodge Avenger, Dodge Caliber, and Jeep(R) Compass. Also,
the Jeep Wrangler had its best February ever," Chrysler Group
Vice President for Sales and Field Operations Steven Landry
said.
About DaimlerChrysler
Headquartered 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 company's worldwide locations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.
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.
DURA AUTOMOTIVE: Creditors Must File Proofs of Claim by May 1
-------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
entered an order setting the deadline for creditors to file
proofs of claim in the chapter 11 cases of Dura Automotive
Systems Inc. and its debtor-affiliates.
Creditors who have a claim or potential claim against the
Debtors that arose prior to Oct. 30, 2006, must file a proof of
claim on or before 6:00 p.m. on May 1.
Creditors must send an original proof of claim form to:
Kurtzman Carson Consultants LLC
2335 Alaska Ave.
El Segundo, California 90245
USA
The company can be reached at:
Dura Automotive Systems Inc.
2791 Research Drive
Rochester Hills, Michigan 48309
USA
248-299-7500
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules, and exterior trim systems for the
global automotive industry. The company is also a supplier of
similar products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities. (Dura Automotive
Bankruptcy News, Issue No. 14; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
METSO OYJ: Board Cancels 2003 Stock Options
-------------------------------------------
Metso Oyj's board of directors has decided to cancel 2003 stock
options in such a way that after the cancellation there remains
only 135,000 of 2003A options.
Out of these, 35,000 options have been granted and 100,000
options are held by Metso's subsidiary Metso Capital Ltd. Of the
granted options, 2,000 have been used to subscribe Metso shares
in February 2007.
About Metso
Headquartered in Helsinki, Finland, Metso Corp. aka Metso Oyj --
http://www.metso.com/-- is a global engineering and technology
corporation with 2005 net sales of around EUR4.2 billion. Its
22,000 employees in more than 50 countries serve customers in
the pulp and paper industry, rock and minerals processing, the
energy industry and selected other industries.
The company's principal production plants are located in Brazil,
China, Finland, France, Germany, India, Italy, South Africa,
Sweden, the United Kingdom and the United States.
* * *
As of Feb. 9, Metso Oyj carries Standard & Poor's 'BB+' long-
term and 'B' short-term corporate credit ratings and 'BB' senior
unsecured debt rating.
M-REAL OYJ: Moody's Lowers Corporate Family Rating to B3 from B2
----------------------------------------------------------------
Moody's Investors Service lowered M-Real Oyj's Corporate Family
Rating to B3 from B2, and also changed the company's senior
unsecured debt ratings -- in addition to the senior unsecured
guaranteed MTN program rating of its majority-owned subsidiary,
Metsa Group Financial Services Oy -- to B3 from B2. The outlook
for the ratings has been changed to stable from negative.
Following the publication of detailed full year 2006 results,
Moody's commented that M-real Oyj's credit metrics continue to
position the ratings below the B2 rating category. Despite M-
real Oyj's ongoing restructuring program, which also includes
significant asset disposals, cash flow relative to debt remains
weak at 8.0%, and more importantly free cash flow is negative
and will be challenged to turn positive in 2007. Furthermore,
Moody's remains cautious about M-real Oyj's low interest
coverage, with the operating result excluding non-recurring
items not covering interest expenses. Although management has
addressed liquidity issues with the issuance of a EUR400 million
bond in December 2006, the poor cash flow generation leaves re-
financing at risk. Additional disposals of cash flow generating
assets may hamper a recovery of metrics commensurate with a
rating higher than B3.
The stable outlook balances the positive rating pressure on M-
real Oyj's B3 ratings that could develop from higher-than
expected price increases (more than 5% on average), with the
potential negative rating pressure that would result from a
moderate cooling off of the European economy, which would likely
result in a softening price environment.
To this extent, Moody's said that it expects moderate price
increases for M-real Oyj's main fine paper grades throughout
2007 as a result of capacity reductions undertaken by most of
the largest companies which should currently begin to impact the
market; the continued benign economic environment should
underpin the ongoing moderate demand increase and further
support the expectation of modest price increases of low to mid
single digits. Furthermore, any visibility of a more
disciplined pricing strategy of the industry could have a
notable positive impact on M-real Oyj's profitability and cash
generation and therefore result in a positive rating
development. However, while noticing the company's internal
restructuring efforts -- which appear at most to cover cost
inflation -- Moody's also notes that with its weakened balance
sheet M-real Oyj remains significantly exposed to any softening
in the economy and a resulting possible further price decline.
Moody's added that the ratings continues to take into
consideration a supportive stance of its main shareholder,
Metsaliitto (unrated), although Metsaliitto's ability to provide
ongoing and significant financial support to M-real Oyj remains
difficult to assess given its cooperative shareholder structure
with limited access to new capital.
Downgrades:
Issuer: M-real Oyj
Downgrades:
-- Corporate Family Rating, Downgraded to B3 from B2
-- Senior Unsecured Medium-Term Note Program,
Downgraded to B3 from B2
-- Senior Unsecured Regular Bond/Debenture Due 2008,
Downgraded to B3 from B2
-- Senior Unsecured Regular Bond/Debenture Due 2007,
Downgraded to B3 from B2
-- Senior Unsecured Regular Bond/Debenture Due 2008,
Downgraded to B3 from B2
-- Senior Unsecured Regular Bond/Debenture Due 2008,
Downgraded to B3 from B2
-- Senior Unsecured Regular Bond/Debenture Due 2009,
Downgraded to B3 from B2
-- Senior Unsecured Regular Bond/Debenture Due 2010,
Downgraded to B3 from B2
-- Senior Unsecured Regular Bond/Debenture Due 2008,
Downgraded to B3 from B2
-- Senior Unsecured Regular Bond/Debenture Due 2009,
Downgraded to B3 from B2
-- Senior Unsecured Regular Bond/Debenture Due 2013,
Downgraded to B3 from B2
Outlook Actions:
-- Outlook, Changed To Stable From Negative
Issuer: Metsa Group Financial Services Oy
Downgrades:
-- Senior Unsecured Medium-Term Note Program,
Downgraded to B3 from B2
Outlook Actions:
-- Outlook, Changed To Stable From Negative
Based in Helsinki, Finland, M-Real Oyj -- http://www.M-Real.com/
-- is a leading European producer of fine paper products, with
FYE 2005 turnover of EUR5.2 billion. For the fiscal year 2006
the company generated revenues of EUR 5.6 billion. The company
has operations in Japan, Brazil, China, India and Singapore.
PARANA BANCO: S&P Says Stock Offering Won't Affect Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services said that the announcement
that Parana Banco SA (B/Stable/B) has filed with the local
Exchange Commission for an Initial Public Offering won't affect
the ratings of the bank.
Although the IPO positively reinforces Parana Banco's
capitalization and supports its projected growth, the bank is
still challenged to increase its credit operations while keeping
asset quality under control. The bank will continue in the
hands of current shareholder J. Malucelli Group, which S&P
believes will maintain the bank's current strategic direction.
Parana Banco is a niche bank in the segment of payroll discount
lending, primarily to public-sector employees. The bank's
adjusted total assets of US$375 million as of June 2006
represented less than 1% of total assets in the Brazilian
banking industry. The bank is a relevant part of a broader
conglomerate (J. Malucelli), with operations in different
sectors and concentrated in the South of Brazil.
PETROLEO BRASILEIRO: May Buy Grupo Empresarial's Port Facility
--------------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA is
negotiating with Grupo Empresarial Ence SA over the possible
sale of the latter's port facility and other business in Fray
Bentos, Uruguay, sources told news daily Negocio.
Clovis Correa, the chairperson of Petroleo Brasileiro's
Uruguayan operations, told Negocio that the firm has been
interested in Grupo Empresarial's port on the river Uruguay.
Grupo Empresarial had plans to transport cellulose using the
port. However, the firm didn't rule out selling it, the sources
confirmed to Negocio.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Pres. Lula & Bush Visit Guarulhos Units
------------------------------------------------------------
The presidents of Brazil, Luiz Inacio Lula da Silva, and of the
United States of America, George W. Bush, visited Petroleo
Brasileiro S.A.'s facilities in Guarulhos, State of Sao Paulo,
Friday. Pres. Lula, accompanied by Petrobras' president, Jose
Sergio Gabrielli de Azevedo, showed the American president the
several stages involved in ethanol and biodiesel production.
The visit lasted 30 minutes.
President Lula considered signing the memorandum aimed at
incorporating ethanol to the American energy grid, "an answer to
the 21st century's energy challenge." The Brazilian president
highlighted establishing the bases for the global biofuel market
as a huge contribution to the environment. "Anything we can do
to deter global warming is welcome. We who polluted the planet
last century have the duty to advance sustainable development in
the 21st century," he said. Lula mentioned that Brazil more
than tripled sugarcane productivity with no prejudice to food
production and reduced Amazon forest deforestation. I am
convinced the US will be an outstanding partner in this
project," he concluded.
President George W. Bush said he was "very excited with the
possibilities afforded by ethanol and biodiesel" and highlighted
Petrobras' performance. "I appreciated my conversation with
president Sergio Gabrielli and the company's efforts to seek
innovations in the biofuel area. The United States is very
interested in biofuels because depending on foreign oil is a
matter of national safety to us. It is an economic problem. If
demand grows in countries such as China, for example, prices go
up. We intend to add 10% ethanol to our fuels in ten years.
This means 35 billion gallons. Since I took office, we have
already spent US$12 billion in research and technology in
alternative sources of energy, and you have great scientists. I
am optimistic and believe America will benefit from these
sources."
Ethanol
Petrobras has been operating in the ethanol segment for more
than 30 years. In the 1970's, it supported the deployment of
the National Ethanol Program (known as Proalcool). With its
nationwide structure dedicated to liquid oil byproduct
transportation, storage and distribution and to adding ethanol
to gasoline, Petrobras was able to provide the agility,
efficiency, and effectiveness the program needed to develop.
Petrobras worked on the process of mixing ethanol with gasoline,
testing 10%, 15%, 20% and 25% anhydrous alcohol additions to the
gasoline used to fuel its own fleet. The mix rate currently in
effect in Brazil is 23%.
The company was the first to convert its fleet to use hydrated
alcohol, using engines with components that had been developed
and tested at its Research Center (Cenpes). It installed the
country's first ethanol pumps in its service stations, and
developed and installed the first carburant ethanol storage
tanks, strategically located near the producer zones. Petrobras
soon had an ethanol tankage capacity superior to a billion
liters.
With Petrobras' decisive participation, particularly in the
transportation and storage sector, the new fuel won the
automotive market over. Dual fuel vehicles (ethanol & gasoline)
took the Brazilian market over as of 2003: in total, more than
2.6 million of the so-called flex fuel vehicles have already
been sold in Brazil.
New Markets
The first foreign market Petrobras sold Brazilian ethanol to was
Japan. The project was kicked-off by making Japanese industries
sensitive to this dual fuel's importance.
In late 2005, Petrobras and the Japanese state-owned company
Nippon Alcohol Hanbai K.K. joined forces to establish Brazil-
Japan Ethanol Co. LtD.- BJE in Japan, with a 50/50 participation
of each company. BJE is in charge of importing ethanol, among
others, for use in medications and beverages.
In Brazil, Petrobras undertakes parallel actions to make
production viable and ensure product offer to the Japanese
market. The company recently signed a Memorandum of
Understanding with Japanese Mitsui to assess upwards of 40
private projects for this purpose.
Petrobras is studying building an ethanol pipeline to connect
the Minas Gerais, Sao Paulo, Mato Grosso, Mato Grosso do Sul,
Goias and Tocantins producer areas to Paul¡nia, and another one
to connect Paulinia to the Sao Sebastiao terminal, in Sao Paulo.
The projects under analysis may be financed with resources
coming from Japanese institutions, form the BNDES, Petrobras, or
from the producers themselves.
Petrobras exports ethanol to Venezuela and is closing the first
load to send to Nigeria. This year, Petrobras will export 850
million liters of ethanol. Pursuant to its Strategic Plan, in
2011 exports are expected to top at 3.5 billion liters, mostly
to Japan.
Biodiesel
Petrobras is currently deploying its three first industrial
biodiesel production units in Candeias, Montes Claros, and
Quixada. The biodiesel will be produced from vegetable oils and
animal fat, and each plant will be capable of producing up to 57
million liters of the product per year. With production
expected to go online in late 2007, these units will be posed to
serve Petrobras Distribuidora's demand in Northeastern Brazil.
More than 4,000 BR service stations nationwide already market
biodiesel.
Raw material provision for biodiesel production by family
agriculture projects will be Petrobras' priority. By employing
this strategy, the company hopes to contribute to the
development of farmer coops, encouraging increased production
and productivity of the castor seed, cotton, and dende crops
and, in the future, other oleaginous crops such as sunflowers,
peanuts and jatropha seeds. It is estimated that some 70,000
farmer families will have jobs and income by providing their
crops to the first three Petrobras biodiesel units.
Two more biodiesel plants will be installed in the Southern
Region, each capable of producing 100,000 tons of biodiesel per
year. The project will benefit about 80,000 families, who will
plant and provide their oleaginous crop inputs to the plants.
Petrobras is also analyzing several projects in other Brazilian
regions to make sure the company is producing 855 million liters
of biodiesel per year by 2011, in accordance with its 2007-2011
Business Plan.
HBIO
The HBIO production process Petrobras developed allows vegetable
oils to be mixed to mineral oil directly in the refining unit.
The outcome is diesel with better quality than that produced
solely from oil. The mix is made at the refinery's
hydrotreatment unit. Compared to mineral diesel, this diesel
has low sulfur content and a higher cetane number.
Unprecedented in the world, the HBIO process is in its testing
phase and is expected to go online by late 2007 at the Gabriel
Passos -- Regap -- refinery, in Betim, Minas Gerais; Presidente
Getulio Vargas -- Repar -- refinery, in Araucaria, Parana; at
the Alberto Pasqualini -- Refap -- refinery, in Canoas, Rio
Grande do Sul; and at the Paulinia -- Replan -- refinery, in
Paulinia, Sao Paulo.
The project's schedule foresees conventional diesel fuel import
reductions by up to 10% by December 2007, and it is expected 256
million liters of vegetable oil will be used to produce HBIO.
The process is planned to be deployed at eight refineries by
2011, with an annual consumption of 1.050 million liters of
vegetable oil, some 35% of the volume of soybean oil exported in
2005.
Unlike biodiesel, which involves building specific units to be
produced, the HBIO process only requires minor adaptations to
the existing refineries, something that renders this technology,
in addition to innovative, more economical.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
TELE NORTE: Net Profits Increase to BRL1.31 Billion in 2006
-----------------------------------------------------------
Tele Norte Leste Participacoes said in a statement that its net
profits increased to BRL1.31 billion in 2006, from BRL1.11
billion in 2005.
Business News Americas relates that Tele Norte's net profits
rose 46% to BRL613 million in the fourth quarter 2006, compared
to BRL416 million in the same quarter in 2005.
Tele Norte's gross revenues totaled BRL24.2 billion in 2006,
compared to BRL23.7 billion in 2005, BNamericas notes. Its
total gross revenues come from:
-- its fixed line operations, which decreased to
BRL20.8 billion in 2006 from BRL20.9 billion in
2005; and
-- its wireless services, which increased to BRL3.47
billion in 2006 from BRL2.75 billion in 2005.
BNamericas underscores that Tele Norte's Ebitda margin dropped
to 36.2% in 2006 from 40.4% in 2005.
According to BNamericas, Tele Norte had 14.4 million fixed line
subscribers in 2006, relatively the same with 2005. Meanwhile,
its mobile phone clients increased 26% to 13.1 million and
broadband customers grew 40% to 1.1 million.
BNamericas notes that Tele Norte expects little growth in its
fixed line this year. It expects that its mobile phone
customers will total 15 million this year, while its broadband
clients will be 1.4 million.
Tele Norte's average revenue per user increased 2.3% to BRL87,
compared to 2005, the report says.
Tele Norte invested BRL2.30 billion in 2006, of which 71% were
used for fixed line services and the rest to mobile. The firm
will invest BRL2.40 billion in 2007, with 80% allocated for
fixed line and 20% for mobile operations, BNamericas states.
Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America. The
company markets its services under its Telemar brand name. Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.
* * *
As reported in the Troubled Company Reporter on Feb. 5, 2007,
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Brazil-based telecom service
providers Tele Norte Leste Participacoes SA and Telemar Norte
Leste SA, jointly referred to as Telemar, to 'BB+' from 'BB'.
At the same time, Standard and Poor's revised its ratings on the
combined BRL300 million outstanding local debentures of Telemar
Participacoes SA in Brazil National Scale to 'brAA-' from
'brA+', and assigned o 'brAA-' rating to TmarPart's proposed
five-year BRL$250 million debentures.
USINAS SIDERURGICAS: Sales Volume to Reach 8 Mil. Tons in 2007
--------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA Investor Relations
Director Paulo Penido said in an analyst conference that the
firm expects that its sales volume will total eight million tons
this year.
Mr. Penido told Business News Americas that Usinas Siderurgicas
aims to export 30% of sales in 2007.
"We have high-quality products to meet demand abroad," Mr.
Penido commented to BNamericas.
BNamericas underscores that Usinas Siderurgicas expects that
Chinese steel exports are lower this year, compared to last
year. Prices will recover during the first half of 2007.
Usinas Siderurgicas expects that there will be supply and demand
stability throughout the second half of 2007, BNamericas notes,
citing Mr. Penido.
According to BNamericas, investments this year will total about
US$800 million, mainly for:
-- a thermoelectric project and a coking facility for
Usinas Siderurgicas, and
-- a thermoelectric plant and new continuous casting
equipment for unit Cosipa.
Mr. Penido told BNamericas, "We plan to reach 2015 with a
company of 15 million tons per year."
Usinas Siderurgicas will disclose by the end of 2007 more
details on plans to construct a new five million ton per year
steel mill, BNamericas states, citing Mr. Penido.
Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel. Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries. Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America. The company also sells in China and Japan.
* * *
Standard & Poor's Ratings Services affirmed on June 7, 2006, its
'BB+' long-term corporate credit rating on Brazil-based steel
maker Usinas Siderurgicas de Minas Gerais SA -- Usiminas. At
the same time, Standard & Poor's assigned its 'BB+' senior
unsecured debt rating to the forthcoming US$200 million Global
MTNs due June 2016 to be issued by Cosipa Commercial Ltd. S&P
says the outlook on the corporate credit rating is stable.
VARIG: TAM & Lan In Talks for Possible Joint Bid for Airline
------------------------------------------------------------
Brazil's leading airline TAM S.A. and Chilean airline Lan SA are
in talks over a possible joint bid for troubled Brazilian
airline Varig, according to the local Estado newswire Thursday.
According to the report, TAM CEO Marco Antonio Bologna will go
to Chile to discuss the plan in the next few days.
At the end of January, Lan lent Varig US$17.10 million in
exchange for an exclusive option for shares.
The Chilean carrier has long sought to establish a subsidiary in
South America's biggest country, and has a tradition of entering
foreign markets via defunct local airlines.
Varig has had a troubled recent history, entering bankruptcy
protection in 2005 under debts totaling more than US$3 billion.
In July, VarigLog, owned by a group of investors that included
U.S. investment fund Matlin Patterson, bought the company's
operating assets for US$24 million and sharply cut back the
number of flights offered.
In Brazil, foreign investors cannot own more than 20% of a local
carrier.
TAM may be considering a joint venture with LAN to give the
Chilian operator a Brazilian partner and block the growth of
rival Gol Linhas Aereas Inteligentes, said the report.
Local press reports have also linked Gol with a purchase of
Varig assets.
Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America. VARIG's principal business is the transportation of
passengers and cargo by air on domestic routes within Brazil and
on international routes between Brazil and North and South
America, Europe and Asia. VARIG carries approximately 13
million passengers annually and employs approximately 11,456
full-time employees, of which approximately 133 are employed in
the United States.
The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage.
The Debtors may be the first case under the new law, which took
effect on June 9, 2005. Similar to a chapter 11 debtor-in-
possession under the U.S. Bankruptcy Code, the Debtors remain in
possession and control of their estate pending the Judicial
Reorganization. Sergio Bermudes, Esq., at Escritorio de
Advocacia Sergio Bermudes, represents the carrier in Brazil.
Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative. In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States. As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts.
Volo do Brasil, which purchased VARIG's cargo unit, VARIG
Logistica S.A., and partially controlled by U.S. investment fund
MatlinPatterson Global Advisors, bought VARIG for US$600 million
in July 2006.
* BRAZIL: Lula Inks Alternative Fuel Cooperation Pact with Bush
---------------------------------------------------------------
Brazilian President Luis Inacio Lula da Silva and his American
counterpart, George W. Bush, signed Friday a new biofuel
agreement that calls for cooperation between the two countries
in developing an alternative fuel source.
In February, the two nations started talks over the energy
partnership that would promote the use of ethanol globally.
Under which, both countries would promote technology-sharing and
would encourage other Latin American nations to become biofuel
producers and consumers.
The two presidents said in reports that the increased production
of biofuels in Latin America would lift incomes of the region's
poor and reduce the world's dependence to crude.
The American president arrived Thursday in Latin America for a
five-nation tour aimed at bettering relations with right-wing
and moderate left-wing leaders, a move, observers say, that is
designed to counter the United State's greatest critic --
Venezuelan President Hugo Chavez.
Tariff
The Financial Times notes that despite signing the deal, the two
leaders failed to address the issue of Brazilian producers'
access to the U.S. market.
The same report underscores that the two leaders avoided tariff
issues, saying those topics should be discussed in another
venue.
Brazil and the United States together produce most of the
world's biofuels. The FT says Brazilian producers are denied
access to the U.S. market by tariffs of 54 cents per gallon and
subsidies of 51 cents per gallon paid to U.S. producers.
According to the Wall Street Journal, President da Silva said
that the U.S. should eliminate protectionism on trade. He
emphasized that removing trade barriers "is the only way the
fuel of the future will be able" to reach its potential.
* * *
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
===========================
BLUE HERON: Proofs of Claim Filing Ends on April 5
--------------------------------------------------
Blue Heron Funding I, Ltd.'s creditors are given until
April 5, 2007, to prove their claims to Chris Watler and Emile
Small, the company's liquidators, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Blue Heron's shareholders agreed on Feb. 20, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Chris Watler
Emile Small
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
CALYPSO HOLDINGS: Proofs of Claim Must be Filed by April 5
----------------------------------------------------------
Calypso Holdings, Ltd.'s creditors are given until
April 5, 2007, to prove their claims to Royhaven Secretaries
Limited, the company's liquidator, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Calypso Holdings' shareholders agreed on Feb. 15, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Royhaven Secretaries Limited
Attention: Sharon Meghoo
P.O. Box 707
George Town, Grand Cayman
Cayman Islands
Telephone: 945-4777
Fax: 945-4799
CASCADA CAPITAL: Proofs of Claim Filing Is Until April 5
--------------------------------------------------------
Cascada Capital Ltd.'s creditors are given until April 5, 2007,
to prove their claims to HM Capital Partners LLC, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Cascada Capital's shareholders agreed on Feb. 12 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
HM Capital Partners LLC
P.O. Box 2510
Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 949 3344
Fax: (345) 949 2888
DABENREAL INDUSTRIES: Proofs of Claim Must be Filed by April 5
--------------------------------------------------------------
Dabenreal Industries creditors are given until April 5, 2007, to
prove their claims to Alpha Direction Limited, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Dabenreal Industries was placed into voluntary liquidation under
The Companies Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Alpha Direction Limited
Oceanic Bank and Trust Limited
TK House, Bayside Executive Park
West Bay St. And Blake Road
P.O. Box AP 59213
Nassau, Bahamas
DOMC HOLDINGS: Proofs of Claim Filing Ends on April 5
-----------------------------------------------------
DOMC Holdings Corporation III, creditors are given until
April 5, 2007, to prove their claims to Piccadilly Cayman
Limited, the company's liquidator, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
DOMC Holdings shareholders agreed on Feb. 16, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Ellen J. Christian
Piccadilly Cayman Limited
c/o BNP Paribas Bank & Trust Cayman Limited
3rd Floor, Royal Bank House
Shedden Road, George Town
Grand Cayman, Cayman Islands
Telephone: 345 945 9208
Fax: 345 945 9210
DOMC HOLDINGS: Sets Last Shareholders Meeting for April 5
---------------------------------------------------------
DOMC Holdings Corporation III will hold its final shareholders
meeting on April 5, 2007, at 10:00 a.m., at:
3rd Floor, Royal Bank House
Shedden Road, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted as at final winding up on
April 5, 2007; and
2) requesting the members' approval to authorize the
liquidator to retain the records of the company for a
period of five years from its dissolution, after which
they may be destroyed.
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:
Ellen J. Christian
Piccadilly Cayman Limited
c/o BNP Paribas Bank & Trust Cayman Limited
3rd Floor, Royal Bank House
Shedden Road, George Town
Grand Cayman, Cayman Islands
Telephone: 345 945 9208
Fax: 345 945 9210
FLOREAT FUND: Proofs of Claim Must be Filed by April 5
------------------------------------------------------
The Floreat Fund Ltd.'s creditors are given until April 5, 2007,
to prove their claims to Linburgh Martin and John Sutlic, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Floreat Fund's shareholder agreed on Jan. 9, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Linburgh Martin
Attention: Kim Charaman
Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034
George Town, Grand Cayman
Cayman Islands
Telephone: (345) 949 8455
Fax: (345) 949 8499
HMTF CV: Proofs of Claim Filing Is Until April 5
------------------------------------------------
HMTF CV Co-Investment Management Ltd.'s creditors are given
until April 5, 2007, to prove their claims to HM Capital
partners LLC, the company's liquidator, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
HMTF CV's shareholder agreed on Feb. 12 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
HM Capital Partners LLC
P.O. Box 2510
Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 949 3344
Fax: (345) 949 2888
FORTUNE FUND: Proofs of Claim Must be Filed by April 5
------------------------------------------------------
The Fortune Fund, Ltd.'s creditors are given until
April 5, 2007, to prove their claims to Stuart K Sybersma and
Ian A N Wight, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Fortune Fund's shareholder agreed on Feb. 7, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Stuart Sybersma
Ian A N Wight
Attention: Nicole Ebanks
Deloitte
P.O. Box 1787
George Town, Grand Cayman
Cayman Islands
Telephone: (345) 949 7500
Fax: (345) 949 8258
MAGNETAR STERGE: Proofs of Claim Filing Ends on April 5
-------------------------------------------------------
Magnetar Sterge Premium Fund, Ltd.'s creditors are given until
April 5, 2007, to prove their claims to Mike Hughes and Jan
Neveril, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Magnetar Sterge's shareholders agreed on Feb. 12, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Mike Hughes
Jan Neveril
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
MEA SPC 2: Proofs of Claim Must be Filed by April 5
---------------------------------------------------
Mea SPC 2, Ltd.'s creditors are given until April 5, 2007, to
prove their claims to Melanie Whittaker and Jan Neveril, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Mea SPC's shareholders agreed on Feb. 20, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Melanie Whittaker
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
MEA SPC 3: Proofs of Claim Filing Is Until April 5
--------------------------------------------------
Mea SPC 3, Ltd.'s creditors are given until April 5, 2007, to
prove their claims to Melanie Whittaker and Jan Neveril, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Mea SPC's shareholders agreed on Feb. 20, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Melanie Whittaker
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
MEA SPC 4: Proofs of Claim Must be Filed by April 5
---------------------------------------------------
Mea SPC 4, Ltd.'s creditors are given until April 5, 2007, to
prove their claims to Melanie Whittaker and Jan Neveril, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Mea SPC's shareholders agreed on Feb. 20, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Melanie Whittaker
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
MEA SPC 5: Proofs of Claim Filing Ends on April 5
-------------------------------------------------
Mea SPC 5, Ltd.'s creditors are given until April 5, 2007, to
prove their claims to Melanie Whittaker and Jan Neveril, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Mea SPC's shareholders agreed on Feb. 22, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Melanie Whittaker
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
MEA SPC 6: Proofs of Claim Filing Ends on April 5
--------------------------------------------------
Mea SPC 6, Ltd.'s creditors are given until April 5, 2007, to
prove their claims to Melanie Whittaker and Jan Neveril, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Mea SPC's shareholders agreed on Feb. 20, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Melanie Whittaker
Maples Finance Limited
P.O. Box 1093
George Town, Grand Cayman
Cayman Islands
MEADS COMPANY: Proofs of Claim Must be Filed by April 5
-------------------------------------------------------
Meads Company, Ltd. creditors are given until April 5, 2007, to
prove their claims to Stuart K Sybersma and Ian A N Wight, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Meads Company was placed into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Diana J. Murphy
24 Old Powderhouse Road
Lakeville, Massachusetts
02347, USA
NZB ABSOLUTE: Proofs of Claim Filing Is Until April 5
-----------------------------------------------------
NZB Absolute Healthcare Fund Ltd.'s creditors are given until
April 5, 2007, to prove their claims to Trident Directors
(Cayman) Ltd., the company's liquidator, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
NZB Absolute's shareholders agreed on Feb. 13 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Trident Directors (Cayman) Ltd.
Attention: Kimbert Solomon
P.O. Box 847
George Town, Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 0880
Fax: (345) 949 0881
OXFORD ADVISORS: Sets Last Shareholders Meeting for April 5
------------------------------------------------------------
Oxford Advisors Ltd. will hold its final shareholders meeting on
April 5, 2007, at 9:30 a.m., at:
Third Floor, Harbour Centre
P.O. Box 1348
Grand Cayman KY1-1108
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
Q & H Nominees Ltd.
Third Floor, Harbour Centre
P.O. Box 1348
Grand Cayman KY1-1108
Cayman Islands
PREMIUM RISK: Proofs of Claim Must be Filed by April 5
------------------------------------------------------
Premium Risk Insurance Co. SPC's creditors are given until
April 5, 2007, to prove their claims to Glen Trenouth, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Premium Risk's shareholder decided on Dec. 14, 2006, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Glen Trenouth
P.O. Box 31118
Grand Cayman KY1-1205
Cayman Islands
Telephone: (345) 943 8800
Fax: (345) 943 8801
SEASONS CORE: Proofs of Claim Filing Ends on April 5
----------------------------------------------------
Seasons Core Plan Asset Fund Ltd.'s creditors are given until
April 5, 2007, to prove their claims to Linburgh Martin and John
Sutlic, the company's liquidators, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Seasons Core's shareholder agreed on Jan. 23, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Linburgh Martin
Attention: Kim Charaman
Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034
George Town, Grand Cayman
Cayman Islands
Telephone: (345) 949 8455
Fax: (345) 949 8499
TPC BLOCKER: Proofs of Claim Filing Is Until April 5
----------------------------------------------------
TPC Blocker Ltd., creditors are given until April 5, 2007,
to prove their claims to HM Capital Partners LLC, the company's
liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
TPC Blocker's shareholder agreed on Feb. 12 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
HM Capital Partners LLC
P.O. Box 2510
Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 949 3344
Fax: (345) 949 2888
TRINITY INVESTMENT: Proofs of Claim Filing Ends on April 5
----------------------------------------------------------
Trinity Investment Fund Ltd., creditors are given until
April 5, 2007, to prove their claims to Kevin Hayashi, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Trinity Investment's shareholders agreed on Dec. 29 2006, to
place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Kevin Hayashi
Attention: Ian Goodall
P. O. Box 61
Grand Cayman KY1-1102
Cayman Islands
Telephone: +1 345 949 4244
Fax: +1 345 949 8635
=========
C H I L E
=========
CORPBANCA: Forms New Unit to Address Legal Advisory Services
------------------------------------------------------------
Corpbanca has created a new subsidiary, Corplegal S.A.
Corpbanca will hold a 99.99% ownership interest in the new
subsidiary. Corplegal S.A. will exclusively address all legal
advisory services required by Corpbanca, its subsidiaries or
their clients.
The Chilean Superintendency of Banks and Financial Institutions
granted authorization for the creation of Corplegal S.A. on
Jan. 26, 2007, pursuant to resolution No. 01092.
Corpbanca -- http://www.corpbanca.cl/-- was Chile's sixth-
largest bank at the end of third-quarter 2006, with a 6.2%
market share of loans. Its main activities are lending to SMEs
and individuals, and its subsidiaries offer stock and insurance
brokerage, mutual fund management and financial advisory. As of
August 2006, Corpbanca's main owners were Chile-based Corpgroup
Banking (49.6%) and Saga (7.9%). In turn, Corpgroup is
ultimately owned by Chilean investors, the main being Alvaro
Saieh and his family with 57.9%; the next largest shareholding
was an 8.6% stake.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2006, Fitch Ratings affirmed Corpbanca and Affiliates'
ratings as:
-- Foreign currency long-term Issuer Default Ratings at
'BBB+', Stable Outlook;
-- Local currency long-term IDR at 'BBB+', Stable Outlook;
-- Foreign and local currency short-term ratings at 'F2';
-- Individual at 'C'; and
-- Support '3'.
IRON MOUNTAIN: Prices CDN$175 Million Senior Sub. Debt Offering
---------------------------------------------------------------
Iron Mountain Incorporated's wholly owned subsidiary, Iron
Mountain Nova Scotia Funding Company, has priced a private
placement of CDN$175 million in aggregate principal amount of
its 7-1/2% CAD Senior Subordinated Notes due 2017. The notes
will be sold at par. The notes will be fully and
unconditionally guaranteed by Iron Mountain Incorporated and
certain of its wholly owned subsidiaries. The net proceeds of
the offering will be used to repay a portion of amounts
outstanding under IRM's existing term loan facility. The
closing of the offering is expected to occur on March 15, 2007,
and is subject to customary closing conditions.
The notes will be sold only to qualified institutional buyers
under Rule 144A under the Securities Act of 1933, as amended,
and to persons outside the United States pursuant to Regulation
S under the Securities Act, including in Canada to accredited
investors pursuant to National Instrument 45-106 -- Prospectus
and Registration Exemptions. The securities to be offered have
not been registered under the Securities Act, or applicable
securities laws, and until so registered, may not be offered or
sold in the United States except pursuant to an exemption from
the registration requirements of the Securities Act and
applicable state securities laws. The securities to be offered
are also exempt from the prospectus requirements of applicable
Canadian securities laws and may not be resold in Canada except
pursuant to a further exemption.
Headquartered in Boston, Massachusetts, Iron Mountain
Incorporated (NYSE: IRM) is an international provider of
information storage and protection related services. The
company offers comprehensive records management and data
protection solutions, along with the expertise to address
complex information challenges such as rising storage costs,
litigation, regulatory compliance and disaster recovery.
Founded in 1951, Iron Mountain has more than 90,000 corporate
clients throughout North America, Europe, Latin America, and
Asia Pacific. Its Latin American operations are located in
Argentina, Brazil, Chile, Mexico and Peru.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2007, Standard & Poor's Ratings Services assigned its
'B' rating to Iron Mountain Inc.'s proposed EUR175 million 6.75%
senior subordinated notes due 2018.
NORSKE SKOGINDUSTRIER: Nominates Kim Wahl as New Chairman
---------------------------------------------------------
Kim Wahl has been nominated as the new chair of Norske
Skogindustrier ASA after Lars W. Groholt informed the nomination
committee that he would not be seeking re-election.
The nomination committee has also recommended that Oivind Lund
be re-elected as deputy chair, while Kari Broberg is recommended
for election as a new director of the group.
Mr. Groholt has been Norske Skog's chair for five years.
"The international paper industry has been through several
difficult years, and Norske Skog has therefore undergone an
extensive restructuring process during Groholt's time as chair.
We thank him for his commitment in this demanding period," Idar
Kreutzer, chair of the nomination committee, said.
Mr. Wahl is currently a partner in and deputy chair of Industri
Kapital, a European private equity company, which owns 24
companies throughout the continent with a combined turnover of
more than EUR8 billion. With an MBA from Harvard, his previous
appointments include jobs with US investment bank Goldman, Sachs
& Co. in London and New York.
"Wahl has very strong strategic experience and expertise," Mr.
Kreutzer continued. "He also has international industrial
experience, knowledge about and familiarity with the
international finance business, and experience from large and
demanding restructuring processes.
"Combined with his strong person qualities, this means that he
meets the requirements for a new chair specified by the
nomination committee. Wahl will contribute an expertise and
experience which will be important for Norske Skog in the
future," Mr. Kreutzer added.
Ms. Broberg has been nominated by the committee to replace
Annette Brodin Rampe, who is retiring from the board. With an
MSc in business economics from the Norwegian School of
Management, she currently works as a company adviser and farmer.
Her earlier career includes jobs with Hartmark Consulting,
Jordan, Alcatel Telecom and Aker Engineering.
The nomination committee has also recommended changes to Norske
Skog's corporate assembly.
Helge Evju has been nominated as the new chair of the assembly,
and thereby also of the nomination committee. Mr. Kreutzer is
recommended as deputy chair of both assembly and committee. In
addition, executive vice president Oyvind Birkeland at DnB NOR
Kapitalforvaltning has been nominated as a new member of the
assembly in succession to Svein Aaser, who has resigned.
The nomination committee's recommendations for shareholder-
elected directors and members of the corporate assembly are
accordingly as:
Board of directors:
-- Kim Wahl (chair),
-- Oivind Lund (deputy chair),
-- Halvor Bjorken,
-- Gisele Marchand,
-- Ingrid Wiik, and
-- Kari Broberg.
Corporate assembly:
-- Helge Evju (chair),
-- Idar Kreutzer (deputy chair),
-- Emil Aubert,
-- Ole H. Bakke,
-- Ann Kristin Brautaset,
-- Kirsten C. Ideboen,
-- Birgitta Rodstol Naess,
-- Christian Ramberg,
-- Tom Ruud,
-- Turid Fluge Svenneby,
-- Halvard Saether, and
-- Oyvind Birkeland.
The nomination committee in Norske Skog currently comprises:
-- Idar Kreutzer (chair),
-- Helge Evju, Gunn Waersted, and
-- Ole H. Bakke.
These elections will be held at Norske Skog's annual general
meeting on April 12.
All recommendations by the nomination committee are unanimous.
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
===============
ARMSTRONG WORLD: Retention of Advisor Cues S&P to Revise Outlook
----------------------------------------------------------------
Standard & Poor's Ratings Service revised its outlook to
developing from stable for Armstrong World Industries Inc. At
the same time, we affirmed the 'BB' corporate credit and senior
secured ratings for the company.
"The outlook change reflects Armstrong's retention of an advisor
for a review of its strategic alternatives," said Standard &
Poor's credit analyst John Kennedy. The developing outlook
indicates that S&P could raise, lower, or affirm the rating,
based on the outcome of the review and any related transactions.
"We expect this business to remain strong, given the turnaround
in the commercial construction activity," Mr. Kennedy said.
"However, production in this segment is energy intensive, and if
energy prices ramp up again, margins could thin without a
successful pass-through of price increases to customers."
Based in Lancaster, Pennsylvania, Armstrong World Industries,
Inc. -- http://www.armstrong.com/-- the major operating
subsidiary of Armstrong Holdings, Inc., designs, manufactures
and sells interior floor coverings, ceiling systems and
cabinets, around the world. With 43 manufacturing plants
worldwide, the company has operation in Colombia, Costa Rica,
Greece, Iceland and Asia among others.
TOWER RECORDS: Court OKs Pact Expanding Consor's Retention Scope
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
a stipulation among MTS Inc. dba Tower Records, its debtor-
affiliates, the Official Committee of Unsecured Creditors, and
an informal committee of secured trade vendors expanding Consor
Intellectual Asset Management's scope of services.
Pursuant to that stipulation, Consor will now manage the
marketing and sale of the Debtors' intellectual properties under
the direction of the Debtors and in consultation with the
Committees.
The Creditors Committee had retained Consor as its intellectual
property valuation consultant pursuant to a Court-order dated
Dec. 20, 2006.
For its services under the modified retention agreement, Consor
will receive:
a) a non-refundable fee of US$100,000 upon Court approval of
the retention application;
b) an incentive and success fee out of the sale proceeds upon
closing of any sale transaction for each or all of the IP
assets as follows:
-- on the first US$2,000,000 of the gross consideration
received by or for the benefit of the Debtors' estates
for all transactions, no success fee will be payable to
Consor;
-- after generating the first US$2,000,000 of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions, the success fee
payable to Consor will be 5% of the increment in excess
of US$2,000,000 up to US$4,000,000 of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions;
-- after generating the first US$4,000,000 of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions, the success fee
payable to Consor will be 10% of the increment in
excess of US$4,000,000 up to US$6,000,000 of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions; and
-- after generating the first US$6,000,000 of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions, the success fee
payable to Consor will be 15% of the increment in
excess of US$6,000,000million of the gross
consideration received by or for the benefit of the
Debtors' estates for all transactions.
To the best of the parties' knowledge, Consor does not hold any
interest adverse to the Debtors' estate.
Consor has started marketing the IP Assets in January 2007.
About Tower Records
Headquartered in West Sacramento, California, MTS Inc., dba
Tower Records -- http://www.towerrecords.com/-- is a retailer
of music in the U.S., with nearly 100 company-owned music, book,
and video stores. The company and its affiliates previously
filed for chapter 11 protection on Feb. 9, 2004 (Bankr. D. Del.
Lead Case No. 04-10394). The Court confirmed the Debtors' plan
on March 15, 2004. The company has stores in the United Kingdom,
the Philippines and Colombia.
The company and seven of its affiliates filed their second
voluntary chapter 11 petition on Aug. 20, 2006 (Bankr. D. Del.
Case Nos. 06-10886 through 06-10893). Richards, Layton &
Finger, P.A. and O'Melveny & Myers LLP represent the Debtors.
The Official Committee of Unsecured Creditors is represented by
McGuirewoods LLP and Cozen O'Connor. When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than US$100 million. The Debtors' exclusive period to
file a plan expires on March 26, 2007.
=======
C U B A
=======
* CUBA: Seeks to Boost Trade with Panama by Tariff Reduction
------------------------------------------------------------
Cuban Foreign Minister Felipe Perez Roque told the Associated
Press that his country has proposed to Panama a reduction of
tariffs on a range of goods traded between the two nations.
Minister Roque said in a news conference that Cuba presented a
list of goods it would like to include in the tariff reduction
to create conditions to boost trade.
"We have identified other areas of cooperation which we can
explore in the future, like the topic of trade," Panama's
Foreign Minister Samuel Lewis Navarro told AP.
According to AP, trade between Cuba and Panama totals about
US$50 million. Panama ships mostly raw materials and
manufactured goods to Cuba, while Cuba sends Panama these
products:
-- tobacco,
-- rum,
-- cement, and
-- pharmaceuticals.
Minister Roque didn't disclose to AP when Cuba and Panama will
start negotiating an agreement for the tariff reduction.
* * *
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
===================================
AES CORP: Reaches Out-of-Court Settlement with Dominican Gov't
--------------------------------------------------------------
AES Corp. has reached an out-of-court settlement with the
government of the Dominican Republic by agreeing to pay US$6
million for the industrial waste dumped on the latter's shores.
As reported in the Troubled Company Reporter-Latin America on
Jan. 10, 2007, the Dominican Republic's environmental minister
said that the nation would consider a settlement with AES Corp.
regarding the lawsuit it filed against the firm for allegedly
polluting its shores. The Dominican Republic sought for US$80
million in damages from AES Corp. for 82,000 tons of coal ash
dumped on its beaches. The tons of ash were left on the beaches
in Manzanillo and the Samana Bay port town of Arroyo Barril
between October 2003 and March 2004 without proper government
permits. These tons of ash were transported from an AES Plant
in Guayama, Puerto Rico. AES Corp. said that it had proper
permits for disposal of the ash and believed that it was not
toxic. The Dominican nation also sued Roger Charles Fina, the
owner of the firm hired by AES Corp. to transport the ash.
A hearing on the case had been scheduled March 5 at the
Commonwealth of Virginia Federal Court.
The US$6 million covers compensation for both the Samana and
Manzanillo dumps.
Environment and Natural Resources Minister Max Puig told DR1
Newsletter that the settlement includes legal fees, and will
become available in 10 days.
The settlement was reduced to US$6 million from US$80 million
because a federal judge didn't allow that the lawsuit be tried
under the "Rico" Statutes on bribery and organized crime.
Dominican officials told the Associated Press that they were
pleased even though the amount was lessened.
AES Corp. spokesperson Robin Pence commented to DR1 Newsletter,
"We agreed to settle the Dominican lawsuit because of our long-
standing business relationship. We're pleased to have the
matter behind us."
However, several environmental activists believed that US$6
million was an insignificant sum considering the ecological
damage to Semana and Manzanillo.
Environmentalist Amparo Chantada commented to DR1 Newsletter
that the Dominican government had been damaged by the settlement
and that AES Corp. got away with their deal.
Terms of the settlement weren't disclosed. However, US lawyer
Susan Burke of Burke Pyle LLC told DR1 Newsletter that the
Dominican government would release the terms of the settlement.
AES Corp. told AP that the Dominican government acknowledged
that the firm didn't commit any wrongdoing as part of the
settlement.
Meanwhile, the coal ash will be burned in cement factories, DR1
Newsletter says, citing Minister Puig.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.
AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela. Fuels include biomass, diesel, coal, gas and
hydro. The group also pursues business development activities
in the region. AES has been in the region since May 1993, when
it acquired the CTSN power plant in Argentina.
* * *
As reported on Oct. 20, 2006, Moody's Investors Service's
downgraded its B1 Corporate Family Rating for AES Corporation in
connection with the implementation of its new Probability-of-
Default and Loss-Given-Default rating methodology.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on the company's loans
and bond debt obligations including the B1 rating on its senior
unsecured notes 7.75% due 2014, which was also given an LGD4
loss-given default rating, suggesting noteholders will
experience a 55% loss in the event of a default.
BANCO BHD: Says Small Firms Can Compete with Foreign Firms
----------------------------------------------------------
Banco BHD's analysis indicated that two of every three of the
large, medium and small firms in the Dominican Republic can
compete with foreign firms when the nation's Free Trade Pact
with the United States and Central America is implemented,
Dominican Today states.
Dominican Today relates that 30% of the total companies in the
country will have to undergo transformation processes, re-
convert their products, or improve the products' standards of
quality.
Banco BHD conducted with its consultant's service ASE-CAFTA a
study on more than 530 firms in several subsectors and sizes.
ASE-CAFA has two consulting firms specialized in free trade,
Dominican Today states.
Banco BHD is a privately owned commercial bank in the Dominican
Republic and part of the BHD Group. Having operated for over 30
years, it is a financial institution focused on serving
individuals and corporations of the Dominican Republic. Banco
BHD deals in multiple currencies and has an international
department that handles large money transfers. In 1998 it
acquired the insurance provider Compania de Seguros Palic and
has an alliance with Spanish Banco Sabadell. The company has 60
branches located in the Dominican Republic, New York and the
Cayman Islands.
* * *
As reported on Oct. 27, 2006, Fitch Ratings affirmed these
Dominican Republic-based Banco BHD ratings:
-- Long term foreign and local currency Issuer Default
Ratings at 'B';
-- Short-term at 'B';
-- Support at '5';
-- Individual at 'D'.
BANCO INTERCONTINENTAL: BDO Ortega to Hand Over Audit
-----------------------------------------------------
Central Bank assistant manager Ricardo Rojas Leon disclosed that
they would tender to the Justice Minister, BDO Ortega &
Asociados' audit on Banco Intercontinental's liquidation between
April 2003 and December 2004 period, Dominican Today reports.
In the Z-101 talk radio program cited by Dominican Today, Mr.
Leon was quoted saying "this is a forensic audit and remember
that who authorized this audit was the Justice Ministry under
the commitment that the results were communicated to it."
Ramon Baez Figueroa had requested the Court to compel Central
Bank's Liquidation Commission to hand over key documents over
the Baninter's US$2.5 billion case.
According to the source, Defense lawyer Vinicio Castillo Seman
stated the auditors have revealed the scandal that the Central
Bank, which contracted them placed the person investigated,
Zunilda Paniagua as the liaison; to her were directed the
requests for information and obvious she and the Liquidation
Commission hid all that which could jeopardize them in the
handling of the liquidation process.
Mr. Castillo believed that an investigation should be
implemented to clarify the whereabouts of Baninter's billions of
pesos, Dominican Today adds.
As published in Troubled Company Reporter-Latin America on
March 6, 2007, the audit of BDO Ortega on the company revealed
that a probe on the latter was incomplete and without conclusion
due to the lack of documents provided by the authorities, cited
by Dominican Today.
However, as noted by Dominican Today, the legal representatives
of former Banco Intercontinental president Ramon Baez Figueroa
alleged that those responsible for the plundering and theft of
the bank's assets, enjoyed impunity in the administration.
Banco Intercontinental aka Baninter collapsed in 2003 as a
result of a massive fraud that drained it of about US$657
million in funds. As a consequence, all of its branches were
closed. The bank's current and savings accounts holders were
transferred to the bank's new owner -- Scotiabank. The
bankruptcy of Baninter was considered the largest in world
history, in relation to the Dominican Republic's Gross Domestic
Product. It cost Dominican taxpayers DOP55 billion and resulted
to the country's worst economic crisis.
CERVECERIA NACIONAL: Moody's Puts (P)B1 Rating on Proposed Notes
----------------------------------------------------------------
Moody's assigned a (P)B1 rating to Cerveceria Nacional
Dominicana, C. por A.'s proposed US$270 million senior unsecured
notes due 2014. Moody's also assigned Ba3 local currency and B1
foreign currency corporate family ratings to the company. The
outlook for the notes and the local currency corporate family
rating is stable. The foreign currency corporate family rating
is constrained by the Dominican Republic's B1 country ceiling,
which is currently on review for upgrade. All ratings are
subject to closing of the proposed notes offering.
Cerveceria Nacional is the main operating subsidiary of E. Leon
Jimenes, a family-controlled holding company based in the
Dominican Republic. Proceeds from the notes will be used to
refinance a US$270 million bridge loan Cerveceria Nacional has
incurred in November 2006, to partly finance E. Leon's purchase
of 47.5% of its own voting stock from Phillip Morris
International. Post transaction, E. Leon owns 83.5% of
Cerveceria Nacional, while Heineken and other minority
shareholders own 9% and 7.5%, respectively. Cerveceria
Nacional's pro forma debt also includes US$200 million in
secured bank debt (not rated).
Ratings assigned are:
-- US$270 million senior unsecured guaranteed notes due 2014,
at (P)B1
-- Local currency corporate family rating, at Ba3
-- Foreign currency corporate family rating, at B1 on review
for upgrade
The outlook for the notes and the local currency corporate
family rating is stable.
The Ba3 local currency corporate family rating or LC CFR
reflects Cerveceria Nacional's scores on the industry-specific
key rating factors outlined by Moody's Global Alcoholic Beverage
Rating Methodology as well as the company's country risk and
currency exposures. Pro forma for the notes issuance, the LC
CFR incorporates Cerveceria Nacional's strong domestic beer
franchise, profitability and credit metrics, which are partly
offset by the company's limited diversification and scale
(Caa/B) and its relatively aggressive financial policies in
light of country risk and currency exposures (B). Concerns
related to country risk and currency exposures explain the gap
between the assigned Ba3 LC CFR and the Ba2 yielded by the
industry methodology.
The (P)B1 rating of the proposed notes is one notch below CND's
Ba3 LC CFR because the material amount of secured bank debt in
the company's capital structure reduces the notes' expected
recovery in the event of default. The notes will be issued at
the CND level and will be guaranteed by Cerveceria Nacional's
Bohemia and Presidente USA operating subsidiaries.
The stable rating outlook for the notes and the LC CFR reflects
our expectation of:
i) a solid operating performance in line with trends seen
in 2006,
ii) continued strong leadership in the Dominican beer
market despite aggressive competition from AmBev or
other potential new entrants, and
iii) annual free cash flow after dividends in excess of
scheduled debt amortization. The foreign currency CFR
is currently on review for upgrade.
Cerveceria Nacional Dominicana C. por A. is the leading beer and
malt producer and distributor in the Dominican Republic. The
company is the main operating subsidiary of E. Leon Jimenes, a
family-controlled holding company also based in the Dominican
Republic.
CERVECERIA NACIONAL: S&P Assigns B Rating on US$270-Mil. Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' corporate
credit rating to Cerveceria Nacional Dominicana C. por A. At
the same time, S&P assigned its 'B' rating to Cerveceria
Nacional's US$270 million senior unsecured notes due 2014. The
outlook is stable.
The rating on the new senior unsecured notes is one notch below
the corporate credit rating, recognizing the structural
subordination of the notes to the company's outstanding US$157
million senior secured loan. Cerveceria Nacional will use note
proceeds to repay a US$270 million bridge loan that was incurred
in connection with the buyout of Philip Morris International's
(not rated) stake in Cerveceria Nacional.
"The rating reflects the shift in Cerveceria Nacional's
financial policy toward more aggressive use of debt, as the
company had historically relied only on internally generated
cash to finance its capital investment needs," said S&P credit
analyst Luis Martinez.
The rating also considers uncertainty on whether the company
will be able to achieve its targeted deleveraging path, given
its high exposure to currency depreciation risk associated with
the mismatch between the substantial proportion of Dominican
peso-denominated sales and the US dollar-denominated debt
obligations. Cerveceria Nacional aims to reach a debt-to-EBITDA
ratio of around 2.0x over the next couple of years.
Cerveceria Nacional has limited access to the derivatives
markets. This is reflected in the company's hedging mechanism
that does not fully protect interest payments throughout the
term of the notes. S&P believes this mechanism only partially
mitigates the company's currency risk exposure. In addition,
the rating reflects the challenges that Cerveceria Nacional
faces operating in the Dominican Republic, and the exposure to
the nation's economic cycles and vulnerability to external
shocks. The rating also incorporates business constraints
associated with Cerveceria Nacional's geographic concentration,
as well as the intense competition in the industry throughout
the region that could limit the company's ability to expand its
business in the international markets.
These challenges are partially offset by Cerveceria Nacional's
leading position in the Dominican Republic beer and malt
markets, with market shares of approximately 96% and 63%,
respectively. In addition, the rating considers S&P's
expectations that Cerveceria Nacional's growth strategy and
capital investment plans will continue to be funded through
internally generated cash, with an annual budget of
approximately US$45 million. Cerveceria Nacional benefits from
its strong distribution capabilities in a fragmented retailer
system, solid and long-standing brand recognition, and the
improving acceptance of Cerveceria Nacional's products in the
international markets. The rating also incorporates S&P's
expectations that the Dominican economy will remain stable and
will contribute to the domestic beer industry's sustained
growth.
Cerveceria Nacional Dominicana C. por A. is the leading beer and
malt producer and distributor in the Dominican Republic. The
company is the main operating subsidiary of E. Leon Jimenes, a
family-controlled holding company also based in the Dominican
Republic.
=============
E C U A D O R
=============
* ECUADOR: Political Condition to Affect Lending in 2007
--------------------------------------------------------
Market observers told Business News Americas that the shaky
political situation in Ecuador will result to sluggish lending
in the country this year.
Lending increased 26% in 2006, compared to 2005, BNamericas
notes, citing the observers.
BNamericas underscores that Ecuador held a second-round of
voting during the presidential election in November 2006 between
Rafael Correa and Alvaro Noboa, in which the former won.
Local stockbrokerage Analytica Securities' consultant Alejandro
Sarzosa commented to BNamericas that banks have become more
cautious about lending in this transition period, already shown
in slower credit expansion.
The Ecuadorian central bank told BNamericas that monthly growth
in private sector lending decreased to 1.3% in January 2007 from
3.7% in December 2006. Yearly growth was 27.9% in January 2007,
compared to 27.5% in January 2006.
Bank Watch Ratings senior director Patricio Baus told BNamericas
that credit growth is expected to continue its slowdown at least
during the first half of 2007 due to political situation.
Commercial lending is most exposed to the political uncertainty.
Mortgage and consumer would slow down to a lesser extent since
client loan demand is supported by remittances from overseas
workers.
BNamericas emphasizes that analysts think that the share of
clinet loans of banks' total loans will increase from the
current 30%.
Mr. Sarzosa told BNamericas that making the US dollar as
Ecuador's official currency has increased borrowers and
creditors' trust on the country since the risk of devaluation
has disappeared, contributing to improved banking penetration.
"[Rafael Correa] has a great opportunity to achieve economic
recovery since Ecuador has enormous potential. Business,
agriculture and financial sectors are all open to working with
the government," Mr. Pozo commented to BNamericas.
* * *
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-'.
=============
G R E N A D A
=============
* GRENADA: Opposition Leader Wants Details on Russian Deal
----------------------------------------------------------
Opposition leader Tillman Thomas has called the Grenada
administration to come clean with the people in connection to
Reynold Benjamin's letter dated Sept. 28, 2006, accusing the New
National Party administration of signing a deal with a Russian
company Global Petroleum Group Limited, Caribbean Net News
reports.
Citing Mr. Thomas, Carribean Net relates that the Russian group
has paid the government US$2.5 million. Mr. Thomas suggested
the government to provide the people with details about the
money account and how it was used.
Mr. Thomas stated his party continues to believe in
accountability and transparency, Carribean Net discloses.
According to the report, the letter was distributed to the Prime
Minister and to the media, among others.
* * *
As reported in the Troubled Company Reporter on March 21, 2006,
Standard & Poor's Ratings Services affirmed its 'B-' long-term
and 'C' short-term sovereign credit ratings on Grenada. S&P
said the outlook on the long-term ratings remains stable.
The ratings on Grenada are constrained by large government debt,
which, at an estimated 118% of GDP in 2006 (98% of GDP on a net
basis), is one of the highest among the 110 sovereigns rated by
Standard & Poor's. The debt burden has been partly alleviated
by the restructuring completed in Nov. 2005, which extended
the maturity of roughly US$261 million (or 44% of the total) in
debt to 2025 and reduced the interest payment by more than half,
to about 2.5% of GDP in 2006.
=============
J A M A I C A
=============
AIR JAMAICA: May Get Cheaper Planes Due to Airbus Reorganization
----------------------------------------------------------------
Air Jamaica may be able to get cheaper planes as aircraft
manufacturer Airbus reorganizes, Radio Jamaica reports.
Radio Jamaica relates that Air Jamaica is trying to take
advantage of Airbus' reorganization to negotiate cheaper rates
for new aircrafts.
As reported in the Troubled Company Reporter-Latin America on
Feb. 6, 2007, Air Jamaica would change its Airbus fleet to
Boeing 757s later this year, as part of its business plan. Paul
Pennicook, Air Jamaica's senior vice president of marketing and
sales, said that Boeing 757 was more appropriate for Air
Jamaica, as it carries 188 passengers and has more room for
baggage. It would also have bigger number of load and fly a
longer route more efficiently.
Due to changes taking place at Airbus, Air Jamaica will take
advantage of talks on changing its fleet, Air Jamaica Chief
Executive Officer Michael Conway told Radio Jamaica.
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.
DYOLL GROUP: Hoping to Get US$150 Million from Major Asset Sale
---------------------------------------------------------------
Dyoll Group was hoping to get US$150 million from the sale of
its major asset, Drax Hall, to strengthen its balance sheet, The
Jamaica Gleaner reports.
The Gleaner relates that Dyoll Group planned to "re-outfit" the
firm as a real estate development entity and property management
company, with plans to raise capital through private placement
and debt financing.
As reported in the Troubled Company Reporter-Latin America on
March 9, 2007, Dyoll Group said in a filing with the Jamaica
Stock Exchange that it continued to experience severe cash flow
problems since Dec. 15, 2006. It was unable to meet its
financial obligations, which include:
-- payment of its statutory obligations,
-- payment of salaries, and
-- payment of its commercial debt.
The Gleaner relates that it is, however, unlikely that Dyoll
Group's financial will be solved soon since plans to sell Drax
Hall seemed to have been stalled.
"The view is out there that the delisting is imminent, that the
company is on its way out. Nobody knows what is Dyoll, except
that it is a shell. The company is not able to meet its debt
payments, which means that there is nothing left for
shareholders in the company," a stockbroker commented to The
Gleaner.
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 March 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: Czech Experts to Appraise Mining Sector
--------------------------------------------------
The Associated Press reports that a team of Czec experts are
evaluating quarries in Jamaica to maximize efficiency in the
mining industry.
"We're developing a plan for our quarries where we're going to
show people that you can mine in such a manner that it is
attractive and sustainable," Victor Cummings, minister of state
in Jamaica's Ministry of Agriculture and Lands, was quoted by AP
as saying.
The visit came after the Jamaican minister's official trip to
the Czech Republic's mine-out quarries, AP relates. His tour
provided the minister some ideas that he'd like to adopt for
Jamaica.
"These are some of the same things that we would like to do
here," the minister said according to AP.
Jamaica is the world's fifth largest producer of bauxite, the
principal ore used in aluminum.
* * *
As reported on Mar. 9, 2007, Standard & Poor's Ratings Services
affirmed its 'B' ratings on Jamaica's long-term and short-term
sovereign credit, with stable outlook.
===========
M E X I C O
===========
DAIMLERCHRYSLER AG: Sells EUR2 Bil. 4.375% Bonds Due March 2010
---------------------------------------------------------------
DaimlerChrysler AG sold EUR2 billion of 4.375% bonds due March
2010 at a yield premium or a spread of 35 basis points over the
mid-swaps rate, the Budapest Business Journal reports citing
Bloomberg as its source.
Investors earlier demanded the highest risk premiums to hold the
company debt in at least a month after a rise in supreme
mortgage failures.
According to Mahmoud El-Shaer, who helps manage about US$35
billion of fixed-income assets for State Street Investment
Management in London, the market is entering into a more normal
phase following a period of volatility, BBJ relates.
Mr. E-Shaer said speculations that DaimlerChrysler will
successfully find a buyer for its unprofitable Chrysler division
may have also helped boost demand for the bonds.
However, a company spokeswoman refused to disclose details on
how the automobile manufacturer intends to use the proceeds of
the sale.
According to data compiled by Bloomberg, DaimlerChrysler has up
to EUR8.3 billion of bonds maturing this year. Commerzbank AG,
Royal Bank of Scotland Group Plc and UniCredit SpA is managing
the sale of the debt.
The company's bonds reported a gain on Feb. 14 after
DaimlerChrysler CEO Dieter Zetsche disclosed that his company is
keeping all options open, including a sale or possible
partnerships, for its loss-making Chrysler division.
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 company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.
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.
DISTRIBUTED ENERGY: Expects Going Concern Doubt Statement
---------------------------------------------------------
Distributed Energy Systems Corp. disclosed that it expects
PricewaterhouseCoopers LLP, its independent registered public
accounting firm, to include a going concern explanatory
paragraph in its audit report for 2006, due to the significant
recurring losses and cash outflows from operations that raise
substantial doubt about its ability to continue as a going
concern.
"The results for the fourth quarter and the full year were well
below our expectations and were clearly unsatisfactory," Ambrose
L. Schwallie, Distributed Energy's chief executive officer,
said. "We have taken strong and immediate actions to address
the shortfall in both revenue and earnings, including executive
management changes, revised sales and contract objectives to
drive gross margin and top line growth, a more focused approach
to our key markets and approximately a 20% workforce reduction
in late January 2007. We believe these actions, along with the
previously announced reorganization, will help to streamline the
company's operations, position us for stronger performance in
2007 and enable us to make increased progress toward our goal of
reaching profitability.
For the fourth quarter ended Dec. 31, 2006, revenues increased
to US13.8 million from US$11 million in the same period of 2005.
The net loss for the fourth quarter was US$33.2 million, which
includes approximately US$25.6 million in non-cash goodwill and
intangible asset impairment charges, compared with a net loss of
US$3.4 million in 2005.
For the full year 2006, Distributed Energy revenues were
US$45.6 million, up from US$45 million during 2005. The
company's 2006 net loss was US$53.4 million, including US$25.6
million in goodwill and intangible asset charges, compared with
a 2005 net loss of US$16.2 million.
The non-cash goodwill impairment of approximately US$24.2
million was due to the company's determination that the carrying
value of its Northern Power subsidiary exceeded its fair value.
Fair value is determined by several factors including projected
revenues, gross margins and related operating cash flows. The
company previously announced that it is combining the operations
of its Proton and Northern subsidiaries into a single-company
structure and operating under the Distributed Energy Systems
Corp. name. As a result the company determined that the
Northern trade name, valued at US$1.4 million, had been fully
impaired.
The company disclosed the combination of two subsidiaries;
Northern Power Systems and Proton Energy Systems, in an effort
to streamline its operations, reduce costs, better position the
company for improved growth and strengthen systems sales,
engineering, production, service and technology development.
This reorganization is estimated to result in savings of
approximately US$4-US$5 million, on an annualized basis,
beginning in the second quarter of 2007.
Mr. Schwallie also noted the continuing interest and growing
revenue potential for renewable, electrolytic hydrogen systems
based on the company's proprietary proton exchange membrane
technology. "Our technology is state-of-the-art, and we
achieved improved gross margins in the fourth quarter on our
commercial and hydrogen technology businesses," Mr. Schwallie
said.
"We will now concentrate on leveraging our expertise in power
generation for the oil and gas markets, commercial on-site
hydrogen for power plants, hydrogen electrolysis development,
larger-scale wind projects outside North America, and
alternative energy projects," Mr. Schwallie added. "All of
these are strong markets where our value added has been
demonstrated."
Management will also continue to implement its plan to increase
revenue, increase gross margin, reduce expenses, potentially
sell assets, and may raise additional capital in order to
increase its cash balance.
About Distributed Energy Systems
Based in Wallingford, Connecticut, Distributed Energy Systems
Corp. (Nasdaq: DESC) -- http://www.distributed-energy.com/--
creates and delivers products and solutions to the emerging
decentralized energy marketplace, giving users greater control
over their energy cost, quality and reliability. The company
delivers a combination of practical, ready-today energy
solutions and the solid business platforms for capitalizing on
the changing energy landscape. The company has operations in
Mexico.
DISTRIBUTED ENERGY: Forms Venture to Fund Power Resources Plans
---------------------------------------------------------------
Distributed Energy Systems Corp. has entered into a joint
venture with Morgan Stanley to develop and finance power
generation projects focused on better utilizing energy
resources.
The Agreement with Morgan Stanley represents the successful
conclusion of Distributed Energy Systems' goal of attracting a
financing partner to support and accelerate development of
renewable and efficiency-enhancing projects in the United
States. Projects envisioned by the joint venture will offer
competitive returns for investors while also advancing
environmental objectives. Primary applications would include
waste-to-energy, combined-heat-and-power, wind, solar, bio-
digestion, fuel cell and other renewable technologies. The
joint venture will offer full project life cycle services
including development, financing, engineering, procurement,
construction, commissioning, operations and services.
"Teaming with Morgan Stanley lets us step up to a broader array
of project opportunities" Ambrose L. Schwallie, Distributed
Energy's chief executive officer, said. "Many of the customers
we deal with see the merit in projects that help them save on
the cost of energy while reducing their environmental footprint,
but the cost of these projects often exceeds their capital
funding limits. Now, in partnership with Morgan Stanley, we can
offer a third-party ownership and operations model that creates
a win-win for end users and investors alike. Another clear
benefit of working with Morgan Stanley is that our engineering
and services business will have a chance to win business from
their robust franchise in energy projects."
"We see a large and growing number of investment opportunities
in selected alternative energy projects," Morgan Stanley's
Managing Director, Aaron Lubowitz, said. "We look forward to
creating a mutually beneficial business relationship with
Distributed Energy Systems."
Under the terms of the Agreement, Morgan Stanley and Distributed
Energy will collaborate to develop and own alternative and
efficiency-enhancing energy projects. Morgan Stanley expects to
contribute the majority of the capital to meet project-financing
requirements, with Distributed Energy providing the balance.
Morgan Stanley will receive warrants to purchase up to 10% of
Distributed Energy's common shares. The majority of those
warrants vest immediately, with the remainder vesting when the
combined investment by the two companies reaches $100 million.
About Distributed Energy Systems
Based in Wallingford, Connecticut, Distributed Energy Systems
Corp. (Nasdaq: DESC) -- http://www.distributed-energy.com/--
creates and delivers products and solutions to the emerging
decentralized energy marketplace, giving users greater control
over their energy cost, quality and reliability. The company
delivers a combination of practical, ready-today energy
solutions and the solid business platforms for capitalizing on
the changing energy landscape. The company has operation in
Mexico.
DOMINO'S PIZZA: Unit Accepts US$273M for Sr. Notes Tender Offers
----------------------------------------------------------------
Domino's Pizza Inc. reported that the bond tender offer for all
of Domino's, Inc.'s outstanding 8-1/4% Senior Subordinated Notes
due 2011 expired March 9, 2007, and that Domino's Inc. has
accepted for payment and will purchase all Notes validly
tendered in the tender offer and not validly withdrawn prior to
expiration.
Domino's Pizza's separate equity tender offer expired March 9 at
5:00 p.m., Eastern time.
According to The Bank of New York, the depositary for the bond
tender offer, approximately US$273.6 million in aggregate
principal amount of the Notes (or 99.9%) were validly tendered
and not withdrawn. The holders who tendered their Notes prior
to 5:00 p.m., Eastern time, on Feb. 23, 2007, (the consent
payment deadline) will receive US$1,048.50 per US$1,000
principal amount of the Notes, plus accrued interest on the
tendered Notes up to, but not including, the date of payment of
the Notes, which is expected to be today. Holders who tendered
their Notes after the consent payment deadline will receive
US$1,028.50 per US$1,000 principal amount of the Notes, plus
accrued interest on the tendered Notes up to, but not including,
the date of payment of the Notes.
The aggregate cost to purchase the Notes tendered in the tender
offer, including accrued and unpaid interest, will be
approximately US$291.1 million. Following the purchase of the
Notes accepted in the tender offer, approximately US$300,000 in
aggregate principal amount of the Notes will remain outstanding,
which Domino's, Inc. intends to redeem on July 1, 2007, the
first date on which it may redeem the Notes.
J.P. Morgan Securities Inc., Lehman Brothers Inc. and Merrill
Lynch & Co. acted as dealer managers and solicitation agents,
Global Bondholder Services Corporation acted as the information
agent and The Bank of New York acted as the depositary for the
tender offer and the related consent solicitation. Persons with
questions regarding the tender offer and consent solicitation
should contact J.P. Morgan Securities Inc., Attention:
Liability Management Group at (866) 834-4666 (toll-free) or
(212) 834-4077 (collect).
Headquartered in Ann Arbor, Michigan, Domino's Pizza Inc.
(NYSE: DPZ) -- http://www.dominos.com/-- through its primarily
franchised system, operates a network of 8,190 franchised and
company-owned stores in the United States and more than 50
countries. Founded in 1960, the company has more than 500
stores in Mexico. The Domino's Pizza(R) brand, named a
Megabrand by Advertising Age magazine, had global retail sales
of nearly US$5 billion in 2005, comprised of USUS$3.3 billion
domestically and US$1.7 billion internationally.
As of Sept. 10, 2006, Domino's Pizza's balance sheet showed a
US$592,435,000 stockholders' deficit compared with a
US$609,112,000 at June 18, 2006.
FORD MOTOR: Court Orders Repayment of US$80 Million to Navistar
---------------------------------------------------------------
Ford Motor Co. will repay Navistar International Inc. US$80
million as part of a consent order that will ensure continued
supply of diesel engines for its Super Duty pickup trucks in the
immediate future, Terry Kosdrosky of the Wall Street Journal
reports.
Ford, the report says, had debited about US$160 million from
Navistar invoices as part of the dispute over warranty and
pricing issues.
The order, released Friday by a Michigan circuit court judge,
directed Ford to transfer US$80 million to Navistar by March 13
and required both companies to engage in "high-level meetings"
and try to reach a final resolution to the dispute, WSJ relates.
In a previous WSJ report, published in the Troubled Company
Reporter on Mar. 8, 2007, the Journal said that Ford and
Navistar commenced a negotiation to temporarily settle a long-
running pricing dispute over diesel engines Navistar supplies
for Ford's heavy-duty F-Series pickups.
The negotiation followed the automaker and the engine supplier's
motion asking Oakland County Circuit Court Judge John McDonald
to delay ruling on the companies' pricing dispute.
The dispute, the Journal said, goes back over a year, involving
a previous diesel truck engine Navistar built for Ford from 2002
through the end of 2006. It also involves a new engine Navistar
began shipping last month with the launch of the redesigned Ford
F-Series Super Duty pick-up truck.
The F-series pick-up truck is Ford's best-selling and most
profitable line of vehicles, the report relates.
Navistar, the Journal said, is the sole supplier of diesel
engines to Ford, producing 225,000 to 300,000 of them a year.
Two weeks ago, Ford estimated US$11,182 million in total life-
time costs for restructuring actions.
Of the total US$11,182 million of estimated costs, Ford said
that US$9,982 million has been accrued in 2006 and the balance,
which is primarily related to salaried personnel-reduction
programs, is expected to be accrued in the first quarter of
2007.
The company expects a curtailment gain for other postretirement
employee benefit obligations related to hourly personnel
separations that occur in 2007, which gain the company expects
to record in 2007. Of the estimated costs, those relating to
job bank benefits and personnel-reduction programs also
constitute cash expenditure estimates.
The restructuring cost estimates relate to the automaker's
previously announced commitment to accelerate its restructuring
plan, referred to as Way Forward plan.
The "Way Forward" plan includes closing plants and laying off up
to 45,000 employees.
Ford, which incurred a US$12,613 million net loss on US$160,123
million of total sales and revenues for the year ended Dec. 31,
2006, said in a regulatory filing with the Securities and
Exchange Commission that its overall market share in the United
States has declined in each of the past five years, from 21.1%
in 2002 to 17.1% in 2006. The decline in overall market share
primarily reflects a decline in the company's retail market
share, which excludes fleet sales, during the past five years
from 16.3% in 2002 to 11.8% in 2006, the automaker said.
Ford also reported a US$16.9 billion decrease in its
stockholders' equity at Dec. 31, 2006, which, according to the
company, primarily reflected 2006 net losses and recognition of
previously unamortized changes in the funded status of the
company's defined benefit postretirement plans as required by
the implementation of Statement of Financial Accounting
Standards No. 158, offset partially by foreign currency
translation adjustments.
About Navistar International Corp.
Based in Warrenville, Illinois, Navistar International Corp.
(NYSE:NAV) -- http://www.nav-international.com/-- is the parent
company of Navistar Financial Corp. and International Truck and
Engine Corp. The company produces International brand
commercial trucks, mid-range diesel engines and IC brand school
buses, Workhorse brand chassis for motor homes and step vans,
and is a private label designer and manufacturer of diesel
engines for the pickup truck, van and SUV market. The company
also provides truck and diesel engine parts and service sold
under the International brand. A wholly owned subsidiary offers
financing services.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents. With more than 324,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury, and Volvo. Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.
* * *
As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co.
As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.
As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's $3 billion of senior convertible notes due
2036.
FORD MOTOR: Inks Pact to Sell Aston Martin for US$925 Million
-------------------------------------------------------------
Ford Motor Company has entered into a definitive agreement to
sell Aston Martin, its prestigious sports car business, to a
consortium comprised of David Richards, John Sinders, Investment
Dar and Adeem Investment Co.
This transaction is the result of Ford's decision, as announced
in August 2006, to explore strategic options for the Aston
Martin business as the company restructures its core automotive
operations and builds liquidity.
The sale is expected to close during the second quarter and is
subject to customary closing conditions, including applicable
regulatory approvals. The transaction values Aston Martin at
GBP479 million (US$925 million). As part of the transaction,
Ford will retain a GBP40 million (US$77 million) investment in
Aston Martin. Other terms and conditions specific to the sale
are not being disclosed at this time.
"The sale of Aston Martin supports the key objectives of the
company, to restructure to operate profitably at lower volumes,
changed model mix, and to speed the development of new
products," Ford President and Chief Executive Officer Alan
Mulally said.
"From Aston Martin's point of view, the sale will provide access
to additional capital, which will allow Aston Martin to continue
the growth it has experienced under Ford's stewardship. Today's
announcement is good for Ford Motor Company, good for Aston
Martin and good for the UK. We wish Aston Martin every possible
success for the future."
The new owner of Aston Martin is a consortium comprised of:
-- David Richards, founder and chairman of Prodrive, a
world-leading motorsport and automotive technology
company;
-- John Sinders, an avid Aston Martin collector and a backer
of Aston Martin Racing; and
-- Investment Dar and Adeem Investment Co, international
investment companies headquartered in Kuwait.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents. With more than 280,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury, and Volvo. Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.
* * *
As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co.
As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.
As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's $3 billion of senior convertible notes due
2036.
GENERAL MOTORS: Directors Approved Bylaws Amendments
----------------------------------------------------
General Motors Corp.'s Board of Directors, on March 5, 2007,
approved amendments to the Corporation's Bylaws effective
immediately.
Section 2.1, which establishes the number of directors as 12
unless changed from time to time by resolution of the Board of
Directors, was amended to add that the Board will not change the
number of directors to less than 3 nor more than 17 without the
consent of GM's stockholders. The current number of directors,
established by resolution of the Board, is 11.
The amendment also added a provision stating that there is no
vacancy on the Board as long as the number of directors in
office is equal to the number of directors established in
Section 2.1 or by a resolution of the directors pursuant to
Section 2.1.
In addition, Section 3.1 was amended to provide that the
standing committees of the Board include, rather than comprise,
the committees listed in that section, and to authorize the
Board to establish an administrative committee to deal with
matters that are not expressly reserved to the jurisdiction of
the Board or one of its committees according to its delegation
of authority and are not otherwise significant.
Section 3.2 has been amended to identify the specific committees
of the Board for which the members and chairmen shall be elected
annually and that are subject to the requirements that only
Independent Directors shall be members, rather than refer to the
standing committees of the Board.
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 including Belgium, France, Germany, India, Mexico,
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.
* * *
As reported in the Troubled Company Reporter on Dec. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with negative implications, where
they were placed March 29, 2006. S&P said the outlook is
negative.
As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
US$1.5 billion secured term loan of General Motors Corp.
GENERAL NUTRITION: Receives Requisite Consents for Senior Notes
---------------------------------------------------------------
GNC Parent Corp., General Nutrition Centers, Inc.'s parent
company, said that with respect to its previously announced
tender offer to purchase any and all of its outstanding Floating
Rate Senior PIK Notes due 2011, it has received valid tenders
and consents representing a majority of the aggregate principal
amount of Parent Notes outstanding as of the Consent Date.
GNC Parent also disclosed that it executed the supplemental
indenture relating to the Parent Notes, which became effective
upon execution but will not become operative until after
acceptance of, and final payment for, the Parent Notes on the
Payment Date.
In addition, General Nutrition Centers said that with respect to
its previously announced tender offer to purchase any and all of
each of its outstanding 8-5/8% Senior Notes due 2011 and 8-1/2%
Senior Subordinated Notes due 2010, Centers has received valid
tenders and consents representing a majority of the aggregate
principal amount of each of the Centers Notes outstanding as of
the Consent Date. Centers also executed the supplemental
indentures relating to each of the Centers Notes, which became
effective upon execution but will not become operative in each
case until after acceptance of, and final payment for, the
respective Centers Notes on the Payment Date.
The consent deadline pursuant to the terms of the offers to
purchase and consent solicitation statements for each of the
Parent Notes and the Centers Notes expired at 5:00 p.m., New
York City time, on March 1, 2007. In each case, rights to
withdraw tendered Notes and to revoke delivered consents
terminated on the Consent Date, except in limited circumstances
or as otherwise required by law.
Centers further said that the consideration payable for each of
the Centers Notes given the expected expiration date of 12:00
midnight, New York City time, on March 15, 2007 and the payment
date of March 16, 2007, is:
* Holders who validly tendered and did not withdraw their
Centers Senior Notes and related consents before the
Consent Date will receive, for each US$1,000 principal
amount of Centers Senior Notes tendered, tender offer
consideration equal to US$1,066.40, which includes a US$30
consent payment.
Holders who tender their Centers Senior Notes and deliver
their consents after the Consent Date, but before the
Expiration Date, will receive, for each US$1,000 principal
amount of Centers Senior Notes tendered, tender offer
consideration equal to US$1,036.40 (which is the Total
Centers Senior Notes Consideration less the Consent
Payment). Accrued and unpaid interest will be paid on all
Centers Senior Notes tendered and accepted for purchase.
* Holders who validly tendered and did not withdraw their
Centers Senior Sub Notes and related consents before the
Consent Date will receive, for each US$1,000 principal
amount of Centers Senior Sub Notes tendered, tender offer
consideration equal to US$1,061.35, which includes the
Consent Payment.
Holders who tender their Centers Senior Sub Notes and
deliver their consents after the Consent Date, but before
the Expiration Date, will receive, for each US$1,000
principal amount of Centers Senior Sub Notes tendered,
tender offer consideration equal to US$1,031.35. Accrued
and unpaid interest will be paid on all Centers Senior Sub
Notes tendered and accepted for purchase.
The tender offers and consent solicitations for each of the
Notes are being conducted in connection with the previously
announced acquisition of Parent by an affiliate of Ares
Management LLC and the Ontario Teachers' Pension Plan.
J.P. Morgan Securities Inc. and Goldman, Sachs & Co. are the
Dealer Managers for each of the tender offers and Solicitation
Agents for each of the consent solicitations.
Questions concerning the terms of each of the tender offers may
be directed to J.P. Morgan Securities Inc. at (800) 245-8812
(toll-free) or to Goldman, Sachs & Co. at (800) 828-3182 (toll-
free). Copies of each of the Offers to Purchase may be obtained
by calling the information agent, MacKenzie Partners, Inc.,
toll-free at (800) 322-2885 or at (212) 929-5500 (call collect).
Based in Pittsburgh, Pennsylvania, General Nutrition Centers,
Inc., is a wholly owned subsidiary of GNC Parent Corp. --
http://www.gnc.com/-- a specialty retailer of health and
wellness products, including vitamins, minerals, herbal, and
specialty supplements, sports nutrition products and diet
products. The company sells its products through a network of
more than 5,800 locations operating under the GNC brand name and
operates in three business segments: retail, franchise and
manufacturing/wholesale.
GNC has franchise operations in 46 international markets
including Turkey, Ukraine, Australia, Colombia, Singapore,
Indonesia, Philippines, among others.
* * *
As reported in the Troubled Company Reporter on March 2, 2007,
Moody's Investors Service assigned a B3 corporate family rating
and SGL-3 liquidity rating to General Nutrition Centers, Inc.
Moody's also rated GNC's proposed secured bank loan at B1, LGD2,
27%, senior notes at Caa1, LGD5, 77%, and senior subordinated
notes at Caa2, LGD6, 95%. Proceeds from the new debt, together
with preferred and common equity from the new owners Ares
Management and Ontario Teachers' Pension Plan, will be used to
finance the leveraged buyout of GNC from Apollo Management for
total consideration of almost US$1.7 billion. The rating
outlook is stable.
GENERAL NUTRITION: Discloses Fourth Quarter Financial Estimates
---------------------------------------------------------------
General Nutrition Centers, Inc., an indirect wholly owned
subsidiary of GNC Parent Corporation, disclosed estimated ranges
with respect to certain of its financial results for the fourth
quarter ended Dec. 31, 2006.
GNC disclosed the estimates in connection with its private debt
offering to be completed as part of the financing for the
previously announced agreement of GNC Parent Corporation to be
acquired by an affiliate of Ares Management LLC and the Ontario
Teachers' Pension Plan.
GNC plans to file its annual report on Form 10-K for the year
ended Dec. 31, 2006, on or before March 31, 2007. It is in the
process of completing its audit for 2006 and, as a result, the
ranges presented below are preliminary and unaudited.
GNC expects to report these results for the fourth quarter of
2006:
* net revenues of between US$345.2 million and US$350.2
million compared to US$325.4 million for the same period
in 2005;
* net cash provided by operating activities of between
US$4.3 million and US$5.8 million compared to US$29.5
million for the same period in 2005;
* EBITDA of between US$16.6 million and US$18.5 million
compared to US$29.0 million for the same period in 2005;
and
* Adjusted EBITDA of between US$39.2 million and US$41.1
million compared to US$30.2 million for the same period in
2005.
GNC does not intend to update or otherwise revise these
estimates.
GNC also disclosed that, as of Dec. 31, 2006, it operated 2,554
company-owned stores in the United States, 134 company-owned
stores in Canada, 1,046 domestic franchised stores, 961
international franchised stores in 48 international markets, and
1,227 store-within-a-store locations.
Based in Pittsburgh, Pennsylvania, General Nutrition Centers,
Inc., is a wholly owned subsidiary of GNC Parent Corp. --
http://www.gnc.com/-- a specialty retailer of health and
wellness products, including vitamins, minerals, herbal, and
specialty supplements, sports nutrition products and diet
products. The company sells its products through a network of
more than 5,800 locations operating under the GNC brand name and
operates in three business segments: retail, franchise and
manufacturing/wholesale.
GNC has franchise operations in 46 international markets
including Turkey, Ukraine, Australia, Colombia, Singapore,
Indonesia, Philippines, among others.
* * *
As reported in the Troubled Company Reporter on March 5, 2007,
Moody's Investors Service assigned a B3 corporate family rating
and SGL-3 liquidity rating to General Nutrition Centers, Inc.
Moody's also rated GNC's proposed secured bank loan at B1, LGD2,
27%, senior notes at Caa1, LGD5, 77%, and senior subordinated
notes at Caa2, LGD6, 95%. Proceeds from the new debt, together
with preferred and common equity from the new owners Ares
Management and Ontario Teachers' Pension Plan, will be used to
finance the leveraged buyout of GNC from Apollo Management for
total consideration of almost US$1.7 billion. The rating
outlook is stable.
MOVIE GALLERY: Completes US$900MM Senior Secured Credit Facility
----------------------------------------------------------------
Movie Gallery Inc. has completed the previously announced
refinancing of its existing senior secured credit facility. The
final structure of the new US$900 million senior secured credit
facility is comprised of a:
* US$100 million revolving credit facility at L+250bps;
* US$600 million first lien term loan at L+350bps;
* US$175 million second lien term loan at L+650bps; and,
* US$25 million synthetic letter of credit facility.
The company expects the new credit facility to result in more
than US$6 million of annual cash interest savings. The new
credit facility also includes an option for the company to defer
cash interest on the second lien term loan and instead pay
interest in-kind. As of the close of the new facilities, total
cash and availability under the new revolving credit facility
was more than US$127 million.
"We are pleased to complete this refinancing transaction, which
further strengthens Movie Gallery's capital structure," said Joe
Malugen, Chairman, President and Chief Executive Officer of
Movie Gallery. "The strong response to this transaction by our
lenders allowed an improved structure from our previous
announcement and is a testament to the strong cash flow
characteristics of our business. We expect that the favorable
terms of this refinancing will provide Movie Gallery with
greater liquidity while reducing annual interest expense,
thereby advancing our efforts to drive profitable growth and
create value for our shareholders."
The new facility is guaranteed by all of Movie Gallery's
domestic subsidiaries and is secured by substantially all of the
assets of the company and its subsidiaries. The facilities have
a five-year maturity and contain certain affirmative and
negative covenants that are usual and customary for financings
of this kind.
Goldman Sachs Credit Partners L.P. acted as sole lead arranger
for the new credit facility.
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.
MOVIE GALLERY: Moody's Ups Rating on US$100-Million Credit to B1
----------------------------------------------------------------
Moody's Investors Service upgraded the rating on Movie Gallery
Inc.'s US$100 million senior secured credit facility to B1 and
affirmed all its other ratings following the companies revision
of its new capital structure and change in the terms of the
revolving credit facility. The rating outlook remains positive.
The upgrade reflects the revolving credit facility now being a
"first-out" revolver that will get paid first (ahead of the
other first lien debt) in the event of a default. In addition,
the capital structure changed such that the first lien term loan
was increased to US$600 million from the original US$525 million
and the second lien term loan was decreased to US$175 million
from the original US$250 million, as discussed in our press
release dated Feb. 20, 2007. The total amount of the debt in
the capital structure remains unchanged.
This rating is upgraded:
-- US$100 million senior secured revolving credit facility
to B1 (LGD1-9%) from B2 (LGD3-33%).
These ratings are affirmed:
-- Corporate family rating at Caa1;
-- Probability of default rating at B3;
-- US$25 million synthetic letter of credit facility at B2
(with the LGD assessment changed to LGD3-39%);
-- US$600 million senior secured first lien term loan at B2
(with the LGD assessment changed to LGD3-39%);
-- US$175 million senior secured second lien term loan
at Caa1 (LGD4-66%).
-- Senior unsecured guaranteed notes at Caa2 (with the LGD
assessment changed to LGD5-88%); and
-- Speculative grade liquidity rating at SGL-3.
This rating is withdrawn:
-- Senior secured credit facilities at B3 (LGD-3-41%).
The Caa1 corporate family rating reflects the company's
continued eroding competitive position of its Hollywood
Entertainment subsidiary, its very weak credit metrics and the
numerous threats the home video rental industry faces. The
rating is also constrained by the company's high seasonality and
aggressive financial policies. The company has very little
financial flexibility as result of the high leverage it incurred
in order to finance its acquisition of Hollywood Entertainment
in early 2005. Balancing out these weaknesses is the company's
national diversification, credible market position (in a
challenged industry), and its scale with approximately US$2.5
billion in annual revenues.
The rating outlook is positive. Ratings could be upgraded
should the company demonstrate that its internally generated
cash flow has stabilized and can fully support, with a moderate
cushion, its working capital, video rental library purchases,
capital expenditures, and its debt service requirements. Given
the positive outlook it is currently unlikely that ratings would
be downgraded. However, downward rating pressure would develop
should the company's liquidity position deteriorate or should
there be further notable erosion in the company's operating
income.
Movie Gallery, headquartered in Dothan, Alabama, is a leading
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 2006 were US$2.5 billion.
NORTEL NETWORKS: Operating Unit Gets Default Waiver from EDC
------------------------------------------------------------
Nortel Networks Corporation's principal operating subsidiary,
Nortel Networks Limited has obtained a waiver from Export
Development Canada. The waiver relates to the defaults and
events of default under its US$750 million support facility with
EDC in connection with NNL's previously announced need to
restate and make adjustments to its financial results for prior
periods, as published in the Troubled Company Reporter-Latin
America on March 5, 2007.
The company identified certain errors primarily through
discussions with Nortel's North American pension and post-
retirement plan actuaries and through Nortel's ongoing
remediation efforts with respect to its previously reported
internal control deficiencies. As a result, Nortel and its
principal operating subsidiary will restate their financial
results for 2004, 2005, and the first nine months of 2006, and
will make adjustments to periods prior to 2004.
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-Latin America on
March 7, 2007, Dominion Bond Rating Service notes that Nortel
Networks Corporation accounting restatements will not have an
immediate impact on its B (low) long-term ratings.
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.
OI EUROPEAN: Offering EUR300-Mil Sr. Notes Via Private Placement
----------------------------------------------------------------
OI European Group B.V., an indirect wholly owned subsidiary of
Owens-Illinois, Inc., intends to offer, subject to market and
other conditions, EUR300 million aggregate principal amount of
senior notes due 2017 in a private offering.
OI European Group B.V. intends to use the net proceeds of the
offering to repay borrowings under its existing secured credit
agreement. In May 2007, a subsidiary borrower of Owens-
Illinois, Inc., intends to borrow under the secured credit
agreement in order to repay all outstanding $300 million of
Owens-Illinois, Inc.'s, 8.10% Senior Notes due May 15, 2007.
The notes have not been and will not be registered under the
Securities Act of 1933, as amended, and are being offered and
sold in the United States only to qualified institutional buyers
in reliance on Rule 144A under the Act and to certain non-U.S.
persons in transactions outside the United States in reliance on
Regulation S under the Act. Prospective purchasers that are
qualified institutional buyers are hereby notified that the
seller of the notes may be relying on the exemption from the
provisions of Section 5 of the Act provided by Rule 144A.
Headquartered in Perrysburg, Ohio, Owens-Illinois, Inc.
(NYSE:OI), through its subsidiaries, manufacturers glass
containers and healthcare packaging including prescription
containers and medical devices, and closures including tamper-
evident caps and dispensing systems. It has operations in
Australia, Mexico, Puerto Rico, Brazil, Hungary, Spain, the
Netherlands and Singapore, among others.
* * *
As reported in the Troubled Company Reporter-Europe on March 6,
Standard & Poor's Ratings Services assigned its 'B' senior
unsecured debt rating to OI European Group B.V.'s proposed
offering of EUR300 million of notes due 2017.
The notes will be issued under Rule 144A without registration
rights. OI Europe is an indirect wholly owned subsidiary of
Owens-Illinois Inc.
OI EUROPEAN: Moody's Rates New EUR300 Million Senior Notes at B3
----------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to OI European
Group BV, a subsidiary of Owens-Illinois, Inc., new
EUR300 million senior unsecured notes.
Initially, the proceeds will be used to repay revolving debt,
which will then be used to fund the maturity of the US$300
million 8.1% senior unsecured notes held at Owens-Illinois, Inc.
due May 15. Concurrently, Moody's affirmed the ratings of
parent Owens-Illinois, Inc. The rating outlook is stable.
The B2 corporate family rating is constrained by weak free cash
flow over the past two fiscal years and the large debt
maturities in the intermediate term. The ratings are supported
by O-I's size and scale as measured by revenues and their
leading market position. Additionally, margins, leverage and
interest coverage are in line with the rating category. Moody's
expects the company's new strategic initiatives to have a
positive impact on the company.
The ratings are also subject to the finalization of the
indenture for the EUR300-million senior unsecured notes held at
OI European Group BV due March 31, 2017.
The B2 Corporate Family Rating and stable outlook contemplate an
improvement in free cash flow generation in the intermediate
term stemming from improvements in operating efficiency, a
decline in working capital needs and improved pricing and
inflation cost recovery. The outlook also anticipates that the
company will maintain an adequate liquidity cushion.
Headquartered in Perrysburg, Ohio, Owens-Illinois, Inc., through
its subsidiaries, is one of the world's largest global
manufacturers of glass containers and is also a leading
manufacturer of healthcare packaging including prescription
containers and medical devices, and closures including
tamper-evident caps and dispensing systems. For the twelve
months ended Dec. 31, 2006, O-I had revenue of approximately
US$7.4 billion.
OI EUROPEAN: Fitch May Rate New EUR300-Million Senior Notes at B
----------------------------------------------------------------
Fitch expects to rate OI European Group B.V.'s, a subsidiary of
Owens-Illinois, Inc., new senior unsecured notes 'B/RR3' upon
the successful completion of the offer. All of the company's
other ratings remain unchanged.
Owens-Illinois, Inc.:
-- Issuer Default Rating 'B-';
-- Senior unsecured notes 'CCC+/RR5'; and
-- Preferred stock 'CCC/RR6'.
Owens Brockway Glass Container Inc.
-- IDR 'B-';
-- Senior secured credit facilities 'BB-/RR1';
-- Senior Secured Notes 'BB-/RR1'; and
-- Senior Unsecured Notes 'B/RR3'.
The Rating Outlook is Stable. The company currently has about
US$5.2 billion of total rated debt.
The new notes are expected to be EUR300 million and will be
issued by OI European Group B.V., an indirect subsidiary of
Owens Brockway Glass Container Inc., which is an indirect
subsidiary of Owens-Illinois, Inc., the ultimate parent company.
The new notes will be guaranteed on a senior basis by the same
guarantors as for the senior secured credit facility and will
rank equal in right of payment to the senior unsecured debt held
at OB. Fitch therefore considers the new notes to be of similar
credit risk as the existing OB senior unsecured class. Proceeds
from the offering will be used to repay borrowings under the
secured credit agreement. The company has about US$300 million
of senior unsecured debt maturing in May 2007 held at OI, which
will likely be refinanced with the credit facility.
The Recovery Ratings and notching of the debt tranches reflect
Fitch's recovery expectations under a scenario in which
distressed enterprise value is allocated to the various debt
classes. The analysis is based on a going concern valuation
which exceeds the estimated liquidation value. This results in
expected recovery in the 91%-100% range for the senior secured
credit facilities at OB, expected recovery in the 91%-100% range
for the senior secured debt at OB, expected recovery in the 51%-
70% range for the senior unsecured notes at OB and OI European
Group B.V., expected recovery in the 11%-30% range for the
senior unsecured notes at OI given their structural
subordination, and expected recovery in the 0%-10% range for
preferred equity.
Under certain scenarios using Fitch's recovery methodology the
new notes and the existing OB unsecured notes could experience
lower recovery than the current 'RR3' category suggests.
However, the recovery rating is not being changed at this time
because Fitch believes that the most likely scenarios will leave
the overall credit profile unchanged. The potential sale of
OI's plastics segment is also considered in the expected 'B/RR3'
rating of the new notes. OI is currently reviewing strategic
alternatives for this segment, which generated operating profits
of US$115 million in 2006. Depending on the use of the
proceeds, the potential sale of the plastics segment could have
a meaningful impact on the company's credit metrics, and the
company's ratings or outlook could be positively affected if a
transaction is executed.
The ratings are supported by the company's leading market
positions, global footprint, technology leadership, and long-
term customer relationships with large, stable customers. New
asbestos claims and asbestos cash payments continue to decline
steadily.
O-I has also improved its working capital management. With the
company's second quarter 2006 bank facility refinancing,
liquidity has improved, the need for currency hedging has been
reduced and interest expense has been lowered. Although cash
flows have been declining, the company has ample liquidity and
modest debt maturities in the near-term. Fitch views the
appointment of a new CEO in December 2006 as a potentially
favorable development, which could bring meaningful change to
OI's operating strategy.
Increasing energy costs and other cost inflation are primary
concerns. Although O-I has made progress on improving price,
reducing costs, and boosting productivity, raw materials and
energy inflation have more than offset these gains in recent
quarters. High leverage continues to be a key rating factor,
and free cash flow has been minimal or negative in the past
three years. Although total debt has declined by 11.5% from
fiscal-year 2003 to FY2006 and gross debt to EBITDA has declined
from 5.2x to 4.5x, the company's cash flow has deteriorated.
Cash from operations for the same period has fallen from US$353
million to US$150 million due to rising costs, increased taxes,
fees and premiums associated with a recent refinancing and note
repurchase, and a change in accounting treatment for receivables
securitization. Adjusted for the accounting change, FY2006
operating cash flow was US$278 million, or 21% lower than FY2003
operating cash flow.
Fitch's Recovery Ratings, introduced in 2005, are a relative
indicator of creditor recovery on a given obligation in the
event of a default.
PLASTICON INTERNATIONAL: Acquires 100% of AV-CB Developments
------------------------------------------------------------
Plasticon International Inc. has signed a Letter of Intent to
acquire AV-CB Developments. AV-CB Developments is a joint-
venture between Avest Limited Partnership and Christian Brothers
Construction.
"Plasticon International Inc. has the intention of acquiring
100% of AV-CB Developments, which will add more than $80,000,000
in sales to the company. One of the most unique factors about
AV-CB Developments is that they lock in their pricing and sell
out their projects prior to construction commencing. AV-CB
Developments is a green company that makes every effort to
comply with all environmental issues as well as to use green
products as much as possible in their projects," stated Jim
Turek, Plasticon's CEO and President.
About AV-CB Developments
AV-CB Developments, located near Boise, Idaho, is primarily a
construction company that builds residential and commercial
developments in the Idaho area. Based on the due diligence
completed by Plasticon to date, we believe that AV-CB
Developments has several projects whose future prospects may
hold multi-million dollar values.
About Plasticon International
Plasticon International Inc. (PINKSHEETS: PLNI) --
http://www.plasticonintl.com/-- designs, produces, and
distributes high-quality concrete accessories (rebar supports),
informational and directional signage, and plastic lumber, which
are all produced from recycled and recyclable plastics. The
Company's line of plastic concrete accessories has been approved
or accepted in all 50 states and several foreign countries
including Poland, Israel, Canada, Mexico, and Egypt.
As of June 30, 2006, the company had stockholders' equity
deficit of US$214,233 compared to US$6,840,176 of deficit in
Dec. 31, 2005.
===========
P A N A M A
===========
CHIQUITA BRANDS: Less Than 5% of Panamanian Exports Sent to U.S.
----------------------------------------------------------------
Chiquita Brands International Corporate Communications Director
Michael Mitchell told Fresh Plaza that less than 5% of the
firm's Panamanian exports were shipped to the United States.
The major part of the exports was delivered to Europe and other
international markets, Fresh Plaza relates, citing Mr. Mitchell.
According to Fresh Plaza, Europe is still the major market for
Panamanian fruit.
Figures from the United States Department of Agriculture
indicated that the exports of Panamanian bananas to the US
market rose by 272% to 7,515 million tons in 2006, compared to
2005, Fresh Plaza states.
Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.
Moody's Investors Service downgraded the ratings for Chiquita
Brands L.L.C., as well as for its parent Chiquita Brands
International, Inc. Moody's said the outlook on all ratings is
stable.
Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.
* PANAMA: Cuba Seeks to Boost Trade with Nation by Tariff Cut
-------------------------------------------------------------
Panama has received a proposal from Cuba to reduce tariffs on a
range of goods traded between the nations, the Associated Press
reports, citing Cuban Foreign Minister Felipe Perez Roque.
Minister Roque said in a news conference that Cuba presented a
list of goods it would like to include in the tariff reduction
to create conditions to boost trade.
"We have identified other areas of cooperation which we can
explore in the future, like the topic of trade," Panama's
Foreign Minister Samuel Lewis Navarro told AP.
According to AP, trade between Cuba and Panama totals about
US$50 million. Panama ships mostly raw materials and
manufactured goods to Cuba, while Cuba sends Panama these
products:
-- tobacco,
-- rum,
-- cement, and
-- pharmaceuticals.
Minister Roque didn't disclose to AP when Cuba and Panama will
start negotiating an agreement for the tariff reduction.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2006, Fitch Ratings affirmed the Republic of Panama's
long-term foreign currency Issuer Default Rating of 'BB+'.
Fitch also affirmed the sovereign's long-term local currency IDR
of 'BB+', the short-term foreign currency IDR of 'B' and the
country ceiling of 'BBB+'. Fitch said the rating outlook is
stable.
=======
P E R U
=======
IIRSA NORTE: Moody's Places Ba2 Sr. Sec. Notes Rating on Review
---------------------------------------------------------------
Moody's Investors Service has placed the Ba2 rating for IIRSA
Norte Finance Ltd.'s Senior Secured Notes due in 2024 under
review for possible upgrade. This action follows Moody's action
placing the foreign currency government bonds of Peru and the
foreign currency country ceiling under review for possible
upgrade.
Under a Concession Agreement between Concesionaria IIRSA Norte
S.A. and the Ministry of Transportation and Communications, the
government of Peru has agreed to make annual payments for the
full and timely payment of debt service on the notes. While the
government's payment obligations are expressly stated not to be
sovereign indebtedness of the Republic of Peru pursuant to
Article 75 of the Constitution, the rating incorporates Moody's
expectation that the government will include the payment
obligations under the Concession Agreement in its budgets and
appropriations for each fiscal year until debt maturity. The
rating also considers the benefits from an Inter-American
Development Bank (rated Aaa) liquidity facility provided to the
Government of Peru that is sized to cover approximately two
years of debt service payments.
The members of Concesionaria IIRSA Norte S.A. include:
Constructora Norberto Odebrecht S.A., Odebrecht Invesimientos em
Enfra-Estructura Ltda., Constructora Andrade Gutierrez S.A. and
Grana y Montero S.A. The company was incorporated in June, 2005
to enter into the Concession Agreement with the Government of
Peru to provide for the construction, maintenance and operation
of the IIRSA Norte toll road project.
IRON MOUNTAIN: Moody's Rates Proposed CDN$175-Mln Notes at B3
-------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to the proposed
CDN$175 million senior subordinated notes due 2019 of Iron
Mountain Nova Scotia Funding Company, a Nova Scotia Unlimited
Liability Company and an indirect subsidiary of Iron Mountain
Incorporated.
The notes are guaranteed by Iron Mountain and are rated the same
as existing senior subordinated indebtedness and one notch lower
than the B2 Corporate Family Rating. The B3 rating reflects
Moody's expectation of loss-given-default greater or equal to
50% but less than 70% (LGD 4). The proposed notes are
redeemable on a "make whole basis" in the first five years, at a
premium between years five and eight and at par thereafter.
Proceeds from the notes will be used to repay outstanding
indebtedness and for general corporate purposes. Existing
ratings are unaffected.
Moody's believes that the proposed refinancing does not
materially impact the credit profile of Iron Mountain. Despite
meaningful improvement over the past two years, the Corporate
Family Rating of B2 and instrument ratings continue to reflect
high financial leverage, the significant amount of goodwill and
intangibles to total assets and the relatively low level of pro
forma free cash flow (defined as cash from operations less
capital expenditures less dividends) relative to debt. The
ratings also reflect a capital intensive business with most
revenues deriving from paper document storage and related
services which require significant customized physical space.
The ratings are supported by solid interest coverage for the
rating category of about 1.8 times in 2006 and adequate EBIT
return on assets of about 7% in the same period. The ratings
also reflect the company's prominent position as a global leader
in information storage and data protection, including its
strategic expansion in the digital market in recent years. The
ratings also benefit from the company's historical revenue
stability, geographical diversification and low customer
concentration.
The stable outlook reflects Iron Mountain's revenue stability
and successful record of acquiring and integrating assets, the
successful expansion in digital data storage and protection
services, as well as the recent reduction in the rate of
acquisitions. Solid operating margins, EBIT to interest
coverage of 1.8 times and satisfactory EBIT return on average
assets (about 7.7% in 2005 and about 7.0% for 2006) further
support the stable outlook. The outlook is constrained by
relatively narrow covenant cushions under the company's US
credit facilities.
Moody's took these rating actions:
* Assigned a B3 (LGD4, 64%) rating to the proposed
CDN$175-million senior subordinated notes due 2019;
* Affirmed the B3 (LGD4, 64%) rated EUR225-million 6.75%
Euro senior subordinated notes due 2018;
* Affirmed the Ba2 (LGD1, 7%) rated US$400-million IMI
revolving credit facility;
* Affirmed the Ba2 (LGD1, 7%) rated US$312-million IMI term
loan facility;
* Affirmed the B3 (LGD4, 64%) rated US$72-million 8.25%
senior subordinated notes due 2010;
* Affirmed the B3 (LGD4, 64%) rated US$200-million 8.75%
senior subordinated notes due 2018;
* Affirmed the B3 (LGD4, 64%) rated US$448-million 8.625%
senior subordinated notes due 2013;
* Affirmed the B3 (LGD4, 64%) rated US$293.9-million 7.25%
GBP senior subordinated notes due 2014;
* Affirmed the B3 (LGD4, 64%) rated US$439-million 7.75%
senior subordinated notes due 2016;
* Affirmed the B3 (LGD4, 64%) rated US$316-million 6.625%
senior subordinated notes due 2016;
* Affirmed the (P)Ba2 (LGD2, 10%) rated secured drawings
under the existing shelf;
* Affirmed the (P)B3 (LGD4, 64%) rated subordinated draws
under the existing shelf;
* Affirmed the (P)Caa1 (LGD6, 97%) preferred stock draws
under the existing shelf;
* Affirmed the (P)B3 (LGD4, 64%) rated Trust preferred stock
shelf;
* Affirmed the B2 Corporate Family Rating;
* Affirmed the B2 Probability of Default Rating.
The Speculative Grade Liquidity rating is unchanged at SGL-3.
The outlook for the ratings is stable.
Headquartered in Boston, Massachusetts, Iron Mountain
Incorporated is an international provider of information storage
and protection related services. The company offers
comprehensive records management and data protection solutions,
along with the expertise to address complex information
challenges such as rising storage costs, litigation, regulatory
compliance and disaster recovery. Founded in 1951, Iron
Mountain has more than 90,000 corporate clients throughout North
America, Europe, Latin America, and Asia Pacific. Revenue for
the twelve months ended December 31, 2006 was approximately
US$2.4 billion. Its Latin American operations are located in
Argentina, Brazil, Chile, Mexico and Peru.
IRON MOUNTAIN: S&P Rates Proposed CDN$175 Million Sr. Notes at B
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' rating to
Iron Mountain Nova Scotia Funding Co.'s proposed CDN$175 million
in senior subordinated notes maturing in 2019. Iron Mountain
Nova Scotia Funding will be amalgamated into Iron Mountain
Canada Corp. (unrated) when the two subsidiaries of Iron
Mountain Inc. (IMI; B-/Stable/--) merge around the beginning of
April 2007.
The rating is two notches lower than the 'BB-' corporate credit
rating on the parent company because the notes represent senior
subordinated obligations. IMI and all of IMI's existing and
future subsidiaries will guarantee the issue. The company will
use proceeds from the transaction to pay down debt, including
U.S. dollar borrowings, and for general corporate purposes.
"The corporate credit rating on IMI is 'BB-', reflecting IMI's
relatively high debt leverage, limited debt capacity for large
acquisitions, and aggressive financial policies supporting its
growth strategy," said Standard & Poor's credit analyst Andy
Liu. "These factors are only partially offset by IMI's leading
position in records management and its stable growth rate from
existing and new customer accounts."
Ratings List
* Iron Mountain Inc.
-- Corporate Credit Rating: BB-/Stable/--
New Rating
* Iron Mountain Nova Scotia Funding Co.
-- Senior Subordinated Debt: B
Headquartered in Boston, Massachusetts, Iron Mountain
Incorporated (NYSE: IRM) is an international provider of
information storage and protection related services. The
company offers comprehensive records management and data
protection solutions, along with the expertise to address
complex information challenges such as rising storage costs,
litigation, regulatory compliance and disaster recovery.
Founded in 1951, Iron Mountain has more than 90,000 corporate
clients throughout North America, Europe, Latin America, and
Asia Pacific. Its Latin American operations are located in
Argentina, Brazil, Chile, Mexico and Peru.
PERU ENHANCED: Moody's Reviews Ba3 Discount Notes Rating
--------------------------------------------------------
Moody's Investors Service has placed the Ba3 rating of senior
secured discount notes issued by Peru Enhanced Pass-Through
Finance Ltd. under review for possible upgrade. This action
follows Moody's action placing the foreign currency government
bonds of Peru and the foreign currency country ceiling under
review for possible upgrade.
The rating on the notes reflects the importance of the
underlying toll road projects that are the impetus for the 25-
year Concession Agreements between the concession companies
Concesionaria Interoceanica Sur-Tramo 2 S.A. and Concesionaria
Interoceanica Sur-Tramo 3 S.A. and the Government of Peru for
two segments of the Corridor Vial Interoceanica Sur Toll Road.
The Concession Agreements provide for the construction,
maintenance and operation of the toll road segments. However,
the senior secured notes are structured to rely on annual
payments from the government for the full and timely payment of
debt service. As construction milestones are reached, the
government will issue payment obligation certificates, which
represent annual payment obligations of the Ministry of
Transportation and Communications under the Sistema Nacional de
Presupuestos in accordance with Law no. 28411. Payments under
the government certificates, once issued, are not subject to any
conditionality with respect to the concession company's
performance or the condition of the toll road segments.
The notes benefit from a debt service reserve account equal to 6
months of debt service payments. Under the financing structure
all portions of the initial debt will be covered either by the
necessary amount of government payment certificates or by note's
proceeds invested in Inter-American Development Bank notes
(rated Aaa).
Concesionaria Interoceanica Sur - Tramo 2 S.A. and Concesionaria
Interoceanica Sur - Tramo 3 S.A. are owned by a consortium
consisting of Constructora Norberto Odebrecht S.A., Odebrecht
Investimentos em Infra-Estructura Ltda., Grana y Montero S.A.A.,
JJC Contratistas Generales S.A., and Ingenieros Civiles y
Contratistas S.A.
PETROLEO BRASILEIRO: To Build US$800-Mil. Plant with Petroperu
--------------------------------------------------------------
Brazilian state-run oil company Petroleo Brasileiro SA has
signed an accord with Petroperu, its Peruvian counterpart, to
construct a US$800-million plant to produce ammonia and urea,
Business News Americas reports.
BNamericas relates that that agreement also includes the
construction of a US$2.00-billion for a polyethylene plant.
According to BNamericas, the two plants will be fueled with
natural gas from the Camisea field.
Petroperu said in a statement that production from the
petrochemicals complex is estimated at a yearly average of one
million tons.
According to Petroperu's statement, the firm also signed a deal
with French firm Suez to study future gas transport and
electricity and steam supply services for the new acility, which
will need an estimated US$500 million investment.
BNamericas underscores that the studies will be conducted in a
first pre-feasiblity stage that will last for two months and a
subsequent four-month feasibility study.
A Petroperu spokesperson told BNamericas that Suez could get the
contract for the construction of the gas pipeline and supply of
power after the six-month feasibility studies are completed.
The petrochemicals complex could be situated in ports Ilo in
Moquegua department or Matarani in Arequipa department,
BNamericas states.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
* PERU: Will Construct US$800MM Plant with Petroleo Brasileiro
--------------------------------------------------------------
Peruvian state-owned oil firm Petroperu has signed a deal with
Petroleo Brasileiro SA, its Brazilian counterpart, to construct
a US$800-million plant to produce ammonia and urea, Business
News Americas reports.
BNamericas relates that that agreement also includes the
construction of a US$2.00-billion for a polyethylene plant.
According to BNamericas, the two plants will be fueled with
natural gas from the Camisea field.
Petroperu said in a statement that production from the
petrochemicals complex is estimated at a yearly average of one
million tons.
According to Petroperu's statement, the firm also signed a deal
with French firm Suez to study future gas transport and
electricity and steam supply services for the new acility, which
will need an estimated US$500 million investment.
BNamericas underscores that the studies will be conducted in a
first pre-feasiblity stage that will last for two months and a
subsequent four-month feasibility study.
A Petroperu spokesperson told BNamericas that Suez could get the
contract for the construction of the gas pipeline and supply of
power after the six-month feasibility studies are completed.
The petrochemicals complex could be situated in ports Ilo in
Moquegua department or Matarani in Arequipa department,
BNamericas states.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Standard & Poor's Ratings Services assigned its
'BB+' foreign currency credit rating to the Republic of Peru's
(BB+/Stable/B foreign, BBB-/Stable/A-3 local currency sovereign
credit ratings) US$1.24 billion global bond due in 2037 issued
as part of a new liability management operation.
=====================
P U E R T O R I C O
=====================
ALLIED WASTE: North America Unit Prices 8.5% Sr. Notes Offering
---------------------------------------------------------------
Allied Waste Industries Inc. announced the pricing terms of the
previously announced offer to purchase for cash, by its wholly-
owned subsidiary Allied Waste North America, Inc., any and all
of AWNAs outstanding 8.5% Senior Notes due 2008, on the terms of
and subject to the conditions in its Offer to Purchase and
Consent Solicitation Statement, dated Feb. 26, 2007.
The total consideration for each US$1,000 principal amount of
the Notes, which will be payable in respect of the Notes that
are accepted for payment and that were validly tendered on or
prior to on March 9, 2007, will be US$1,053.04 per US$1,000
principal amount of the Notes. The Total Consideration consists
of the Offer Consideration, plus a US$12.50 consent payment.
The "Offer Consideration" was determined as of March 9, 2007,
and is equal to, for each US$1,000 principal amount of Notes:
(i) the present value of US$1,000 discounted to
March 12, 2007, from Dec. 1, 2008, the stated maturity
date of the Notes, plus the present value on the Early
Settlement Date of all interest that would have accrued
and been payable on the Notes from the most recent
interest payment date until the Maturity Date, in each
case determined on the basis of a yield to the Maturity
Date equal to the sum of
(x) the bid-side yield of the 4.625% U.S. Treasury Note
due Nov. 30, 2008, which was 4.726% as of 2:00 p.m.,
New York City time, March 9, 2007, plus
(y) a fixed spread of 50 basis points, minus
(ii) accrued and unpaid interest on the Notes to, but not
including, the Early Settlement Date, and minus
(iii) the Consent Payment.
The scheduled payment date for the Notes tendered on or prior to
the Consent Date will be yesterday, the Early Settlement Date,
subject to the terms of and conditions in the Statement. In
addition to the Total Consideration, such tendering holders will
receive accrued and unpaid interest up to, but not including,
the Early Settlement Date, in the amount of US$23.85 for each
US$1,000 principal amount of Notes validly tendered and not
withdrawn prior to the Consent Date pursuant to the Offer.
The Offer is scheduled to expire at 11:59 p.m., New York City
time, on March 23, 2007, unless extended. Holders who validly
tender their Notes after the Consent Date and on or prior to the
Expiration Date will receive the Offer Consideration, but not
the Consent Payment. Payments for Notes tendered after the
Consent Date but prior to the Expiration Date will be made
promptly after the Expiration Date.
Allied and AWNA have received the requisite consents to certain
proposed amendments to eliminate substantially all of the
restrictive covenants in the indenture governing the Notes and
certain other provisions. Upon the satisfaction or waiver of
the remaining conditions set forth in the Statement, including
the sale of US$750.0 million in aggregate principal amount of
AWNAs 6 7/8% Senior Notes due 2017, AWNA intends to accept the
Notes for purchase and payment pursuant to the tender offer and
consent solicitation and execute the supplemental indenture
effecting the amendments to the indenture.
None of the representatives or employees of Allied Waste, the
Dealer Managers or the Information Agent makes any
recommendations as to whether or not holders should tender their
8.5% Notes pursuant to the tender offer and no one has been
authorized by any of them to make such recommendations. Holders
must make their own decisions as to whether to tender 8.5% Notes
and, if so, as to the principal amount of such 8.5% Notes to
tender.
The tender offer and consent solicitation is being made solely
by the offer to purchase and consent solicitation statement,
dated Feb. 26, 2007.
Citigroup Corporate and Investment Banking and UBS Investment
Bank will each act as Dealer Manager for the Tender Offer and
Solicitation Agent for the Consent Solicitation. Questions
regarding the Tender Offer and the Consent Solicitation may be
directed to either Citigroup Corporate and Investment Banking at
(800) 558-3745 or UBS Investment Bank at (888) 722-9555
ext. 4210.
Allied Waste North America, Inc., a wholly owned operating
subsidiary of Allied Waste Industries, Inc., is based in
Phoenix, Arizona. Allied Waste is a vertically integrated, non-
hazardous solid waste management company providing collection,
transfer, and recycling and disposal services for residential,
commercial and industrial customers. As of Dec. 31, 2006, the
company operated a network of 304 collection companies, 161
transfer stations, 168 active landfills and 57 recycling
facilities in 37 states and Puerto Rico. The company had
revenues of approximately USUS$6.0 billion in fiscal 2006.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 28, 2007, Moody's Investors Service upgraded the Corporate
Family Rating of Allied Waste Industries, Inc to B1 from B2,
affirmed the Ba3 (LGD 2, 30%) rating on the senior secured
credit facilities of Allied Waste North America, Inc., and
upgraded other rated debt tranches of Allied Waste along with
Allied Waste North America and its wholly-owned subsidiary,
Browning-Ferris Industries, LLC. Concurrently, Moody's assigned
a B1 (LGD 4, 56%) rating to the company's proposed USUS$750
million senior secured note due 2017. The outlook for the
ratings remains positive, reflecting continuing pricing strength
in the industry as a whole and the company's own pricing
initiatives in driving enhanced internal revenue growth (6.7% in
2006, versus 5% in 2005 and 2.2% in 2004).
AVNET INC: Prices Offering of 5-7/8% Senior Notes
-------------------------------------------------
Avnet Inc. prices its offering of US$300 million aggregate
principal amount of 5-7/8% Notes due 2014 in a registered
offering.
Upon pricing, the offering size was increased from the US$250
million aggregate principal amount, which was offered on
March 2. The offering was expected to close on March 7, subject
to customary closing conditions.
Avnet intends to use all of the net proceeds to repay amounts
outstanding under its revolving credit facility and its accounts
receivable securitization program.
The offering is lead-managed by Banc of America Securities LLC
and Credit Suisse Securities (USA) LLC.
A prospectus relating to the offering may be obtained from:
Banc of America Securities LLC
Telephone 1-800-294-1322
or
Credit Suisse Securities (USA) LLC
Prospectus Delivery Department
11 Madison Avenue, Floor 2B
New York, NY 10010 1-800-221-1037
Headquartered in Phoenix, Arizona, Avnet, Inc. (NYSE:AVT) --
http://www.avnet.com/-- distributes electronic components and
computer products, primarily for industrial customers. It has
operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, Sweden, Brazil,
Mexico and Puerto Rico.
* * *
As reported in the Troubled Company Reporter on March 5, 2007,
Moody's Investors Service affirmed the Ba1 corporate family and
long-term debt ratings of Avnet, Inc. and revised the outlook to
positive from stable.
AVNET INC: Moody's Rates US$250 Million Senior Notes at Ba1
-----------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating and positive
outlook to Avnet, Inc.'s offering of US$250 million senior notes
due 2014. The new issue proceeds will be used to refinance
short-term debt incurred to fund Avnet's purchase of Access
Distribution from General Electric, which closed on
Dec. 31, 2006.
The US$412.5 million acquisition was funded through a
combination of debt and cash-on-hand. Although debt has
increased, the purchase is not expected to materially weaken
credit protection measures and internal liquidity given Avnet's
higher operating cash flow levels plus the additive cash flow
generated by Access.
Moody's expect pro forma debt to EBITDA to increase modestly to
2.5x on a Moody's adjusted basis compared to 2.2x as of LTM
Dec. 30, 2006. With approximately US$2 billion in revenues,
Access is expected to deepen Avnet's existing Sun relationship,
adding complementary product lines and expanding the Technology
Solution Group's geographic coverage. In addition to improved
scale, US$15 million of anticipated cost synergies and immediate
accretion to earnings, the acquisition is expected to generate
sales synergies via cross-selling opportunities into the
customer bases of both Access and Avnet.
New rating assigned with a positive outlook:
* US$250 million Senior Unsecured Notes due 2014, Ba1, LGD-3,
49%
Avnet, Inc., headquartered in Phoenix, Arizona, is one of the
largest worldwide distributors of electronic components and
computer products, primarily for industrial customers. Revenues
and EBITDA for the last twelve months ended Dec. 30, 2006 were
US$14.8 billion and US$666 million, respectively. It has
operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, Sweden, Brazil,
Mexico and Puerto Rico.
FERRELLGAS PARTNERS: Net Income Up to US$59.2MM in Second Qtr.
--------------------------------------------------------------
Ferrellgas Partners L.P. reported improved earnings for its
fiscal second quarter ended Jan. 31, 2007.
Net earnings for the quarter rose nearly 2% to US$59.2 million
from US$58.1 million the year before, while Adjusted EBITDA
increased 5.3% to US$111.5 million from US$105.9 million a year
ago. This earnings performance reflects ongoing margin
improvement, which more than offset the impact of a warmer start
to the winter heating season.
Propane sales volumes decreased 3% to 276 million gallons from
283 million gallons sold in the prior year quarter. Nationwide
temperatures from the start of the fiscal second quarter through
the middle of January were approximately 5% warmer than a year
ago and 15% warmer than normal. Sharply colder weather in the
last half of January resulted in nationwide temperatures for the
fiscal second quarter being 3% colder than year-ago levels but
10% warmer than normal.
"Because of a natural time lag, the impact of the late January
cold weather on our propane gallon demand was felt primarily in
February, when propane sales volumes climbed by approximately
20% over prior-year levels," said James E. Ferrell, Chairman and
Chief Executive Officer. "Combined with our continued strong
margin performance, the higher volumes contributed to an
increase in Adjusted EBITDA of over US$10 million for the month
of February. As a result, we anticipate a record third-quarter
performance and feel increasingly confident that we can still
achieve our full-year Adjusted EBITDA guidance of US$235 million
to US$245 million." In fiscal 2006, the partnership's Adjusted
EBITDA reached a record US$215.9 million and the Adjusted EBITDA
for the most recent trailing 12-month period ended
Jan. 31, 2007, was US$220.9 million.
Second-quarter revenues rose to US$662.8 million from US$652.6
million and gross profit totaled US$227.5 million versus
US$220.8 million in the prior-year quarter. Operating expenses
rose to US$99.8 million from US$97.1 million. However, general
and administrative expense declined to US$10.0 million from
US$11.3 million the year before, while equipment lease expense
decreased to US$6.5 million from US$7.2 million.
"Our improved second-quarter performance is especially
gratifying in light of the warm start to the winter heating
season, which carried through most of the quarter," commented
Steve Wambold, President and Chief Operating Officer. "Our
performance is a testament to our employees, who have
demonstrated once again their ability to produce regardless of
what Mother Nature throws their way."
For the first half of fiscal 2007, Adjusted EBITDA increased to
US$131.2 million from US$126.2 million the year before, while
gross profit rose to US$354.6 million from US$348.4 million.
Revenues were practically unchanged at US$1.04 billion and
propane sales volumes decreased to 437 million gallons from 451
million gallons. Operating and general and administrative
expenses were US$189.9 million and US$21.0 million,
respectively. Interest and depreciation and amortization
expenses for the six-month period were US$44.7 million and
US$43.7 million, respectively, and equipment lease expense for
the same period was US$13.1 million. Net earnings totaled
US$29.7 million compared to US$32.3 million in the same period
last year.
Headquartered in Overland Park, Kansas, Ferrellgas Partners, LP
(NYSE: FGP) -- http://www.ferrellgas.com/-- through its
operating partnership, Ferrellgas, LP, is a propane marketer in
the United States. Ferrellgas serves more than 1 million
customers in all 50 states, the District of Columbia, Puerto
Rico, and Canada, and has annual sales volumes approaching 1
billion retail gallons. Ferrellgas employees indirectly own
more than 20 million common units of the partnership through an
employee stock ownership plan.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the broad energy midstream sector, encompassing
companies that engage in the extraction, treating, transmission,
distribution, and logistics for crude oil, natural gas, and
other hydrocarbon products, the rating agency affirmed its Ba3
corporate family rating on Ferrellgas Partners L.P.
DEVELOPERS DIVERSIFIED: Launches US$400-Million Notes Offering
--------------------------------------------------------------
Developers Diversified Realty Corporation intends to offer,
subject to market and other conditions, US$400 million aggregate
principal amount of convertible senior notes due 2012 through an
offering to qualified institutional buyers in accordance with
Rule 144A under the Securities Act of 1933, as amended.
The notes will be convertible into cash up to their principal
amount and Developers Diversified common shares in respect of
the remainder, if any, of the conversion value in excess of such
principal amount. The exact timing and terms of the offering
will depend on market conditions and other factors.
Developers Diversified expects to grant to the initial
purchasers an option to purchase up to an additional US$60
million aggregate principal amount of notes to cover over-
allotments.
In connection with the offering, Developers Diversified expects
to enter into capped convertible note hedge transactions with
affiliates of the initial purchasers of the notes to
substantially increase the effective conversion premium of the
notes. These transactions are also intended to reduce the
potential dilution upon future conversion of the notes.
In connection with establishing their initial hedges in respect
of these transactions, the counterparties have advised
Developers Diversified that their affiliates expect to purchase
Developers Diversified common shares and enter into various
derivative transactions with respect to Developers Diversified
common shares simultaneously with or shortly after the pricing
of the notes. These activities could have the effect of
increasing or preventing a decline in the value of our common
stock concurrently with or following the pricing of the notes.
In addition, following pricing of the notes, the counterparties
or their affiliates may enter into or unwind various derivatives
and/or purchase or sell Developers Diversified common shares in
secondary market transactions, including during the observation
period relating to any conversion of the notes.
Developers Diversified expects to use the net proceeds from the
offering to repurchase approximately US$75 million of its common
shares, for the repayment of outstanding debt under its senior
unsecured credit facility and for other general business
purposes. Developers Diversified also expects to use a portion
of the net proceeds from the offering to fund the cost of the
convertible note hedge transaction.
About Developers Diversified
Based in Beachwood, Ohio, Developers Diversified Realty
Corp. (NYSE: DDR) -- http://www.ddr.com/-- owns or manages
approximately 800 operating and development retail properties in
45 states, plus Puerto Rico and Brazil, comprising approximately
162 million square feet. Developers Diversified is a self-
administered and self-managed real estate investment trust
operating as a fully integrated real estate company, which
develops, leases and manages shopping centers.
The company elected to be treated as a Real Estate Investment
Trust under the Internal Revenue Code of 1986, as amended,
commencing with its taxable year ended Dec. 31, 1993. As a real
estate investment trust, the company must meet a number of
organizational and operational requirements, including a
requirement that the company distribute at least 90% of its
taxable income to its stockholders. As a real estate investment
trust the company generally will not be subject to corporate
level federal income tax on taxable income it distributes to its
stockholders.
* * *
As reported in the Troubled Company Reporter on Oct. 31, 2006,
Fitch Ratings affirmed Developers Diversified Realty
Corporation's BB+ preferred stock rating.
HOME PRODUCTS: Court Confirms Amended Plan of Reorganization
------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
confirmed Home Products International, Inc.'s Amended Plan for
Reorganization. The company expects the effective date of its
Plan to occur on or around March 20, 2007.
"This is very good news in that it is a critical first step
toward HPI's exit from bankruptcy," commented Don Hotz, Chief
Financial Officer of HPI. "We are very proud of the fact that
our general unsecured creditors remained unimpaired throughout
this process."
"We fully appreciate the loyalty and ongoing support of our
employees, our customers and our suppliers," continued Mr. Hotz.
"Because of them, we have been able to continue our normal day-
to-day operations. We are looking forward to emerging from
bankruptcy as an even stronger HPI."
Treatment of Claims
As reported in the Troubled Company Reporter-Latin America on
Feb. 9, 2007, under the Amended Plan, these classes are
unimpaired:
-- Administrative Claims,
-- Priority Tax Claims,
-- Class 1 Priority Non-Tax Claims,
-- Class 2 Prepetition Lender Secured Claims,
-- Class 3 Miscellaneous Secured Claims,
-- Class 4 General Unsecured Claims, and
-- Class 7 Interests in HPI-NA.
Class 5 Noteholder Claims and Class 6 Interests in HPI are
impaired classes.
At the Debtors' option, holders of Allowed Administrative Claims
will be paid:
-- in full in cash on the later of the plan effective date or
the date the claim is allowed, or
-- on terms agreed upon by the holder and the debtors.
Holders of Allowed Priority Tax Claims will receive cash
payments in equal annual installments starting on the
anniversary of the plan effective date, together with interest
on the unpaid balance on the later of the plan effective date,
the date the claim is allowed, or the date the holder and the
Debtors made an agreement.
Holders of Allowed Class 1 Priority Non-Tax Claims will received
cash on the later of the plan effective date, the date the claim
is allowed, or the date the holder and the Debtors made an
agreement.
Holders of Allowed Prepetition Lender Secured Claims will be
allowed in an amount equal to the principal amount outstanding
on the plan effective date plus accrued and unpaid interest,
costs, attorneys' fees, and expenses through the effective date.
Reorganized HPI-NA will pay the allowed claim in cash on the
later of the plan effective date or the date the claim became
allowed.
At the sole option of the Reorganized Debtors, on the plan
effective date:
-- the legal, equitable, and contractual rights of each
holder of Class 3 Allowed Miscellaneous Secured Claims and
Class 4 Allowed General Unsecured Claims will remain the
same and will not be discharged upon confirmation of the
plan, or
-- the Reorganized Debtors will provide other treatment as
they and the holders agree.
Holders of Class 5 Allowed Noteholder Claims will receive:
-- their pro rata share on 95% of the New HIP stock on the
plan effective date, subject to dilution by the Management
Incentive Plan Shares and Option. The holders, however,
may elect on the ballot to receive, in lieu of the new
stock, cash equal to US$22.97 for each US$1,000 of Notes
held, and
-- the right to purchase New Convertible Notes.
Holders of Class 6 Allowed Interests in HPI will be cancelled.
Holders of Class 7 Allowed Interests in HPI-NA, however, will
retain their interests since Old HPI-NA stock will not be
cancelled.
A full-text copy of Home Product's Second Amended Disclosure
Statement is available for free at:
http://ResearchArchives.com/t/s?1952
A full-text copy of Home Product's Second Amended Plan of
Reorganization is available for free at:
http://ResearchArchives.com/t/s?1953
About Home Products
Headquartered in Chicago, Illinois, Home Products International,
Inc. -- http://www.hpii.com/-- designs, manufactures, and
markets ironing boards, covers, and other high-quality, non-
electric consumer houseware products. The Debtor's product
lines include laundry management products, bath and shower
organizers, hooks, hangers, home and closet organizers, and food
storage containers. Their products are sold under the HOMZ
brand name, and are distributed to hotels, discounters, and
other retailers such as Wal-Mart, Kmart, Sears, Home Depot, and
Lowe's.
The company and its affiliate, Home Products International-North
America, Inc., filed for chapter 11 protection on Dec. 20, 2006
(Bankr. D. Del. Case Nos. 06-11457 and 06-11458). Ronald
Barliant, Esq., and Kathryn A. Pamenter, Esq., at Goldberg Kohn,
Bell, Black, Rosenbloom & Moritz, Ltd., and Mark D. Collins,
Esq., and Michael J. Merchant, Esq., at Richards, Layton &
Finger P.A. represent the Debtors. When the Debtors filed for
protection from their creditors, they listed estimated assets
between US$1 million and US$100 million and debts of more than
US$100 million. The Debtors' exclusive period to file a chapter
11 plan of reorganization expires on April 18, 2007.
NEWCOMM WIRELESS: Hires Martinez Odell as Special Counsel
---------------------------------------------------------
The United States Bankruptcy for the District of Puerto Rico
gave NewComm Wireless Services Inc. permission to employ
Martinez Odell & Calabria, as its special counsel.
The firm is expected to provide defense, litigation support, or
other legal advice as may be necessary.
The firm tells the Court that it agreed to represent the Debtor
on the basis of a US$10,000 retainer to be held in escrow.
The firm's professionals billing rate are:
Designation Hourly Rate
----------- -----------
Partners US$190
Associates US$135
Paralegals US$40 - US$50
Nelson Robles-Diaz, Esq., a partner of Martinez Odell, assures
the Court that the firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
Mr. Robles-Diaz can be reached at:
Nelson Robles-Diaz, Esq.
Martinez Odell & Calabria
Popular Center Building, Suite 1600
209 Munoz Rivera Avenue
Hato Rey, Puerto Rico 00919
Tel: (787) 75389-14
Fax: (787) 764-5664
http://www.mocpr.com/
Based in Guaynabo, Puerto Rico, NewComm Wireless Services Inc.
is a PCS company that provides wireless service to the Puerto
Rico market. The company is a joint venture between ClearComm,
L.P. and Telefonica Larga Distancia. The company filed for
chapter 11 protection on Nov. 28, 2006 (Bankr. D. P.R. Case No.
06-04755). Carmen D. Conde Torres, Esq., at C. Conde & Assoc.
and Peter D. Wolfston, Esq., at Sonnenschein Nath & Rosenthal
LLP represent the Debtor in its restructuring efforts. Mark J.
Wolfson, Esq. at Foley & Lardner LLP and Sergio A. Ramirez de
Arellano, Esq., at Sergio Ramirez de Arrelano Law Office
represent the Official Committee of Unsecured Creditors. When
the Debtor filed for protection from its creditors, it reported
assets and liabilities of more than US$100 million.
=============
U R U G U A Y
=============
ROYAL & SUN: Posts GBP20-Mil. Net Loss in Year Ended Dec. 31
------------------------------------------------------------
Royal & Sun Alliance Insurance Group plc released its financial
results for the year ended Dec. 31, 2006.
Royal & Sun posted GBP20 million in net losses against GBP5.5
billion in net written premiums for the year ended
Dec. 31, 2006, compared with GBP605 million in net profit
against GBP5.3 billion in net written premiums for the same
period in 2005.
At Dec. 31, 2006, the Group's balance sheet showed GBP22.6
billion in total assets, GBP19.8 billion in total liabilities,
resulting in a GBP2.9 billion stockholders' equity.
"It has been a good twelve months for the Group," Andy Haste,
Group CEO of Royal & Sun Alliance Insurance Group plc,
commented. "We have achieved another strong performance with an
18% increase in the underwriting result and continued delivery
against our strategic objectives. The completion of our US
disposal resolves the Group's last remaining legacy issue. Our
portfolio of businesses is strong, we are growing profitably in
our target trades and we are well positioned to continue
delivering sustainable profitable performance. As it stands
today, we expect the Group to deliver a combined operating ratio
of better than 95% for 2007."
"As a reflection of our confidence in the earnings of the Group
and our capital strength, we are announcing a 35% increase in
the final dividend to 4.12p, bringing the total dividend for the
year to 5.87p up 24% on 2005. We plan to grow future dividends
at least in line with inflation," Mr. Haste added.
Headquartered in London, England, Royal & Sun Alliance Insurance
Group PLC -- http://www.royalsunalliance.com/-- is a FTSE 100
company, listed on the London Stock Exchange and in New York.
The group consists of three regions -- U.K., Scandinavia and
International -- with operations in 30 countries, providing
general insurance products to over 20 million customers
worldwide. In Latin America, it operates in Brazil, Chile,
Colombia, Mexico, Uruguay and Venezuela. In Asia, the company
operates in Hong Kong, Singapore and Saudi Arabia.
* * *
As of Feb. 22, Royal & Sun Alliance Insurance Group PLC carries
Moody's Ba1 preferred stock rating.
=================
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DAIMLERCHRYSLER AG: Will Develop Hybrid Drive System with BMW
-------------------------------------------------------------
DaimlerChrysler AG and the BMW Group will develop as equal
partners an innovative hybrid module for rear-wheel-drive
premium segment cars in an expansion of their previous
collaboration in the field of hybrid drive systems.
Both carmakers plan to commercialize the new module within the
next three years. This collaboration will allow the two
companies to share their extensive know-how and to achieve
increased efficiency through economies of scale.
The decision to jointly develop hybrid drive components will
allow DaimlerChrysler and BMW to extend their range of
innovative drive systems for rear-wheel-drive premium segment
cars.
Both manufacturers will benefit from the pooling of development
capacity, which will make for faster commercialization, and from
improved cost efficiencies due to higher unit volumes.
The components will be individually adapted by the two companies
to the different character of the two brands.
"Cooperation in the field of innovative drive systems makes good
sense not only from a technical but also from an economic
standpoint," emphasized Dr. Thomas Weber, member of
DaimlerChrysler's Board of Management responsible for Group
Research and Mercedes Car Group Development.
"It will help to strengthen the competitiveness of two German
manufacturers whose requirements in the premium segment are very
similar. This is a segment where rapid commercialization of
drive technologies offering high efficiency, performance, and
comfort is particularly important."
"This collaboration will allow us to broaden our technological
base in the area of future hybrid drive systems for the premium
class and will allow the two companies to pool their innovative
resources," said Dr. Klaus Draeger, member of BMW's Board of
Management responsible for Development and Purchasing.
"The distinct identities of the different brands will not be
affected, since the relevant technologies will be tailored to
fit the specific character of the different vehicles."
Both technically and geographically, the core development work
on the proposed hybrid module, which will be of the mild hybrid
type, will take place in Germany, at the relevant engine and
drive-train development sites.
A common project framework will ensure close integration of the
development teams and will harness the combined knowledge base
of both manufacturers.
Synchronized development procedures, joint testing, and state-
of-the-art quality assurance and development methods will assist
the efficient implementation of the project.
This new collaboration between BMW and DaimlerChrysler extends
the existing cooperation at the Hybrid Development Center in
Troy, USA, which began in 2005.
Both companies are rapidly expanding their portfolio of
alternative drive technologies and rounding out their range of
hybrid drive components.
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 company's worldwide operations are located in Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.
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.
PETROLEOS DE VENEZUELA: Prepares for Eni's Lawsuit Against Gov't
----------------------------------------------------------------
Rafael Ramirez, Venezuelan energy and oil minister and state-run
Petroleos de Venezuela SA's president, told Business News
Americas that the firm is preparing to deal with Italian oil
company Eni's lawsuit against the Venezuelan government.
Eni filed a complaint against the government at the
International Center for Settlement of Investment Disputes, the
World Bank's arbitration center.
Petroleos de Venezuela had confiscated Eni's operations in the
country because the latter refused to sign a joint venture with
the firm. Eni disagreed with the terms of the venture.
"We have to designate a person for the arbitrage," Minister
Ramirez told the press.
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.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company. Fitch said the rating
outlook is stable.
PETROLEOS DE VENEZUELA: Reduces Oil Output at Boscan Field
----------------------------------------------------------
State-owned oil firm Petroleos de Venezuela SA director Eulogio
del Pino told local reporters that Venezuela will decrease oil
output at the Boscan field by 40,000 barrels per day.
Business News Americas relates that Boscan is operated by a
joint venture between Chevron and Petroleos de Venezuela. It
normally produces over 100,000 barrels per day of crude.
The reduction of oil output at Boscan is part of the 58,000
barrel per day cut that Venezuela must follow as a member of the
Organization of the Petroleum Exporting Countries, El Universal
states, citing Mr. del Pino.
* * *
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.
***********
S U B S C R I P T I O N I N F O R M A T I O N
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