/raid1/www/Hosts/bankrupt/TCRLA_Public/070321.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, March 21, 2007, Vol. 8, Issue 57
Headlines
A R G E N T I N A
COMPANIA DEFENSORA: Claims Verification Is Until June 5
COMPANIA DE TRANSPORTE: Petrobras Selling 50% Stake in Citelec
COOPERATIVA DE VIVIENDA: Claims Verification Ends on May 4
EL PASO: S&P Raises Corporate Credit Ratings to BB from B+
EXIM BOULEVARD: Trustee Will Verify Proofs of Claim Until May 3
GUA CAM: Trustee Verifies Proofs of Claim Until April 27
IMAX CORP: S&P Affirms B- Rating Despite 10-K Filing Delay
INNOVAR GROUP: Trustee Verifies Proofs of Claim Until May 16
LABORATORIOS AG: Proofs of Claim Verification Is Until May 9
MANYO SA: Trustee Will Verify Proofs of Claim Until June 12
PETROBRAS ENERGIA: Unit Gets Acquisition Offer from Enarsa
* ARGENTINA: Mining & Environment Agencies Ink Mining Pact
* ARGENTINA: Will Resume Pulp Mill Talks with Uruguay in April
B A H A M A S
HARRAH'S ENTERTAINMENT: Affiliate Inks Pack with Bluff Media
ISLE OF CAPRI: Inks Purchase Pact with Casino Aztar for US$45MM
ISLE OF CAPRI: Restatements Result to Nasdaq Delisting Notice
B E R M U D A
REFCO INC: Plan Administrators Want US$15MM Claims Disallowed
REFCO INC: Plan Administrators Want Cross-Border Protocol Fixed
RENAISSANCE CAPITAL: S&P Ups Counterparty Credit Rating to BB-
SCOTTISH RE: Unit Inks Term Loan Pact with Ableco & Mass. Mutual
B O L I V I A
GOL LINHAS: Discloses 2007 First Quarter Dividends Payment
B R A Z I L
BANCO BRADESCO: Central Bank Okays BRL3.80-Billion Capital Raise
BANCO DO BRASIL: Plans BRL650 Million in Home Loans in 2007
BANCO DO BRASIL: Won't Sell Insurance Through GM Credit Card
BANCO NACIONAL: Board Okays BRL70.2MM Financing to Onix Geracao
BANCO NACIONAL: Lending Increased 22% to BRL55.0B in February
BAUSCH & LOMB: Names Efrain Rivera as Senior Vice-President
COMMSCOPE INC: Inks Deal to Acquire Signal Vision
GERDAU: Pegged As Likely Bidder for Arcelor's Sparrows Mill
GERDAU SA: S&P Puts BB+ Corporate Credit Rating on Pos. Watch
GOL LINHAS: Subsidiary Prices US$225MM 7.5% Sr. Notes Offering
ITRON INC: Moody's Downgrades Corp. Family Rating to B1 from Ba3
MACDERMID INC: Loan Add-On Cues S&P to Affirm B+ Loan Rating
PETROLEO BRASILEIRO: Joins Ultra Group & Braskem to Buy Ipiranga
REDE EMPRESAS: Fitch Assigns B Rating on Proposed US$200MM Notes
REDE EMPRESAS: Moody's Assigns B2 Global Corporate Family Rating
TK ALUMINUM: Amends Agreements & Terms on Nemak Sale Transaction
TRW AUTO: To Issue US$1.1 Billion & EUR275 Million Senior Notes
C A Y M A N I S L A N D S
AUSTIN CAPITAL: Proofs of Claim Filing Ends on March 28
BEAR STEARNS: Proofs of Claim Filing Deadline Is March 29
GGR HOLDINGS: Proofs of Claim Filing Is Until March 30
LIBERTYVIEW GLOBAL: Proofs of Claim Filing Deadline Is March 30
LOANINVEST LTD: Proofs of Claim Filing Ends on March 30
M & M ARBITRAGE: Proofs of Claim Filing Is Until March 28
RHJCF LTD: Proofs of Claim Filing Is Until March 30
SWIX CURRENCY: Proofs of Claim Filing Ends on March 29
C H I L E
CONSTELLATION BRANDS: Closes SVEDKA US$384-Million Acquisition
PHELPS-DODGE: Freeport-Mcmoran Completes Acquisition
PHELPS DODGE: Freeport-Mcmoran Elects Three Directors to Board
FREEPORT-MCMORAN: Launches Public Offering of 35 Million Shares
SHAW GROUP: Hires KPMG LLP as Accountants
SHAW GROUP: Obtains Second Waiver from Lenders
C O L O M B I A
ECOPETROL: Will Invest US$800 Mil. in Magdalena Medio Projects
ECOPETROL: Will Start Selling 20% of Shares on Aug. 27
D O M I N I C A N R E P U B L I C
AES DOMINICANA: S&P Affirms B- Rating on US$160MM Senior Notes
BANCO INTERCONTINENTAL: Ramon Baez Figueroa Sues Scotiabank
CENTENNIAL COMM: Sale Brings in US$6 Million to Dominican Gov't
EMPRESA GENERADORA: S&P Revises B Rating's Outlook to Positive
* DOMINICAN REPUBLIC: Gets US$6M in Taxes from Centennial Sale
* DOMINICAN REPUBLIC: International Firms Sue Government
E C U A D O R
BANCO DEL PICHINCHA: Expanding Through Diversified Growth Plan
PETROECUADOR: Awards Three Crude Supply Contracts
PETROECUADOR: In Talks with Venezuela to Develop Oil Fields
E L S A L V A D O R
AES CORP: Restatements Result to Default Under Debt Facilities
G U A T E M A L A
* GUATEMALA: IDB Okays US$400,000 Funding for Plant Study
* GUATEMALA: Railroad Development Will Sue Government
H O N D U R A S
MILLICOM INT'L: Provides Roaming Services to 280 Mil. Clients
M E X I C O
ADVANCED MARKETING: Baker & Taylor Completes Biz Acquisition
ASARCO LLC: Ct. Rejects Grupo Mexico Bid to Overturn Labor Pact
DAIMLERCHRYSLER: Union Leaders Fight Unit Sale to Equity Buyer
MOVIE GALLERY: Incurs US$15.1MM Net Loss in 2006 Fourth Quarter
NORTEL NETWORKS: Posts US$80MM Net Loss in Quarter Ended Dec. 31
TANK SPORTS: Forms Strategic Agreement with Jianshe Industry
P A N A M A
CHIQUITA BRANDS: BB&T Capital Analysts Keeps "Hold" Rating
CHIQUITA BRANDS: Media Group Analyzing CEO's Tie in Gov't Probe
CHIQUITA BRANDS: Pleads Guilty to Terrorist Payment Allegation
P E R U
HERTZ CORP: S&P Affirms BB- Corporate Credit Rating
IMPSAT FIBER: Amends Merger Agreement with GCL & GC Crystal
P U E R T O R I C O
COVENTRY HEALTH: A.M. Best Puts BB+ Rating on US$400-Mil. Notes
DEVELOPERS DIVERSIFIED: Gets Included in S&P 500 Index
DORAL FINANCIAL: Sells 11 Branches to New York Commercial Bank
T R I N I D A D & T O B A G O
CENVEO CORP: Accepts Cadmus' 8-3/8% Senior Sub. Notes Due 2014
U R U G U A Y
* URUGUAY: State Bank to Provide US$100MM Funding to 40 Projects
* URUGUAY: Will Resume Pulp Mill Talks with Argentina in April
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Oil Supply to U.S. Continues to Slow
* VENEZUELA: Hugo Chavez to Supply Gas for Jamalco Expansion
* Large Companies with Insolvent Balance Sheets
- - - - -
=================
A R G E N T I N A
=================
COMPANIA DEFENSORA: Claims Verification Is Until June 5
-------------------------------------------------------
Monica Olga Rajo, the court-appointed trustee for Compania
Defensora de Choferes S.A. MSYC's bankruptcy proceeding,
verifies creditors' proofs of claim until June 5, 2007.
Ms. Rajo will present the validated claims in court as
individual reports on July 19, 2007. Buenos Aires' Civil and
Commercial Court will determine if the verified claims are
admissible, taking into account the trustee's opinion, and the
objections and challenges raised by Compania Defensora and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Compania Defensora's
accounting and banking records will be submitted in court on
Sept. 14, 2007.
Ms. Rajo is also in charge of administering Compania Defensora's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Compania Defensora de Choferes S.A. MSYC
Avda Corrientes 3023
Buenos Aires, Argentina
The trustee can be reached at:
Monica Olga Rajo
Viamonte 2359
Buenos Aires, Argentina
COMPANIA DE TRANSPORTE: Petrobras Selling 50% Stake in Citelec
--------------------------------------------------------------
Petrobras Energia SA told Reuters that it agreed to sell its 50%
stake in Citelec, the parent firm of Compania de Transporte de
Energia Electrica en Alta Tension aka Transener SA, to Argentine
state-owned energy company Enarsa and local firm
Electroingenieria.
The Argentine antitrust regulator ordered Petrobras Energia to
sell the Citelec stake because it has assets all along the chain
of energy production, transmission and distribution in
Argentina, Reuters notes.
Reuters relates that the Argentine anti-monopoly agency rejected
in February a US$54 million offer by US investment fund Eton
Park Capital Management for the stake in Citelec, believing that
Eton Park lacked experience in the power sector.
According to Reuters, Eton Park's interest in Transener caused a
minor political dispute when Argentine President Nestor Kirchner
accused the US of meddling in the sale. The US ambassador had
sent a letter to Argentine authorities, stating support on Eton
Park's bid.
Enarsa and Electroingenieria's bid offered "identical juridical,
economic and financial conditions to what was offered by Eton
Park Capital," Petrobras Energia told Reuters.
About Petrobras Energia
Headquartered in Buenos Aires, Argentina, Petrobras Energia SA
is a 75.8% owned affiliate of Petrobras Energia Participaciones
SA0 and an indirect 67.2% owned affiliate of Petroleo Brasileiro
SA. Petrobas Electric is engaged in petroleum exploration and
production, refining, marketing, petrochemicals and electric
power generation. The Petrobras unit acquired its Transener
stake when it took over Argentine company Perez Compac in 2003.
Argentine antitrust regulators obligated Petrobras to divest its
Transener stake, citing government concerns that the country's
biggest power transporter would be in foreign hands.
About Electroingenieria
Electroingenieria is controlled by the Ferreyra, Acosta, and
Zamuner families and is based in Argentina's Cordoba province.
Founded in the late 1970s, the company has power transportation
and distribution operations in Peru, Bolivia, Paraguay, and
Uruguay.
In Argentina, the company is also involved in wine making and
built 237 schools in Cordoba province since 2000, Bergoglio
said. Electroingenieria has some 300 permanent employees.
About Transener
Compania de Transporte de Energia Electrica en Alta Tension aka
Transener owns the national network of high-voltage power
transmission lines, which consist of nearly 8,800 kilometers of
lines together with the approximately 5,500 kilometers in its
Transba subsidiary's network.
* * *
As reported in the Troubled Company Reporter on Dec. 5, 2006,
Standard & Poor's Ratings Services assigned its 'B' rating to
the proposed bond for up to US$250 million to be issued by
Argentina's largest power transmission company, Compania de
Transporte de Energia Electrica en Alta Tension Transener SA.
At the same time, Standard & Poor's affirmed the 'B' corporate
credit rating on the company. S&P said the outlook is stable.
COOPERATIVA DE VIVIENDA: Claims Verification Ends on May 4
----------------------------------------------------------
Juan Carlos Herr, the court-appointed trustee for Cooperativa de
Vivienda Credito y Consumo Lope de Vega Ltda.'s bankruptcy
proceeding, verifies creditors' proofs of claim until
May 4, 2007.
Mr. Herr will present the validated claims in court as
individual reports on June 15, 2007. 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 Cooperativa de Vivienda and
its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Cooperativa de
Vivienda's accounting and banking records will be submitted in
court on Aug. 6, 2007.
Mr. Herr is also in charge of administering Cooperativa de
Vivienda's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Juan Carlos Herr
Avda Cordoba 1351
Buenos Aires, Argentina
EL PASO: S&P Raises Corporate Credit Ratings to BB from B+
----------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
ratings on El Paso Corp. and its subsidiaries to 'BB' from 'B+'
and removed the ratings from CreditWatch with positive
implications. The outlook is positive.
The ratings were initially placed on CreditWatch on
Dec. 22, 2006.
The upgrade reflects El Paso's improved financial profile due to
better profitability and debt reduction following the sale of
ANR Pipeline for US$3.3 billion in after tax proceeds and
continued progress with legacy issues. The rating action also
reflects the strength of the company's interstate natural gas
pipeline system, somewhat offset by an underperforming
exploration and production or exploration and production
segment.
"The company's leverage, while still aggressive, has improved
significantly," Standard & Poor's credit analyst Plana Lee said.
The positive outlook on El Paso reflects the potential for the
exploration and production segment to produce the cash flow
necessary for improved credit metrics in the next 18 to 24
months.
"Further ratings improvement will be highly dependent on the
company's ability to generate cash flow from its large capital
spending plan of US$2.7 billion in 2007," Ms. Lee stated.
Headquartered in Houston, Texas, El Paso Corp. (NYSE:EP)
-- http://www.elpaso.com/-- provides natural gas and related
energy products in a safe, efficient, and dependable manner.
The company owns North America's largest natural gas pipeline
system and one of North America's largest independent natural
gas producers. The company has operations in Argentina.
EXIM BOULEVARD: Trustee Will Verify Proofs of Claim Until May 3
---------------------------------------------------------------
Jose Scheinkopf, the court-appointed trustee for Exim Boulevard
Instrumentos SA's bankruptcy proceeding, will verify creditors'
proofs of claim until May 3, 2007.
Under the Argentine bankruptcy law, Mr. Scheinkopf is required
to present the validated claims in court as individual reports.
Court No. 7 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's
opinion, and the objections and challenges raised by Exim
Boulevard and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Scheinkopf will also submit a general report that contains
an audit of Exim Boulevard's accounting and banking records.
The report submission dates have not been disclosed.
Clerk No. 14 assists the court in the proceeding.
The debtor can be reached at:
Exim Boulevard Instrumentos SA
Bacacay 1677
Buenos Aires, Argentina
The trustee can be reached at:
Jose Scheinkopf
Pueyrredon 468
Buenos Aires, Argentina
GUA CAM: Trustee Verifies Proofs of Claim Until April 27
--------------------------------------------------------
Eduardo Daniel Gruden, the court-appointed trustee for Gua Cam
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until April 27, 2007.
Mr. Stolkiner will present the validated claims in court as
individual reports on June 12, 2007. 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 Gua Cam and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Gua Cam's accounting
and banking records will be submitted in court on Aug. 9, 2007.
Mr. Stolkiner is also in charge of administering Gua Cam's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Eduardo Daniel Gruden
Pte. Roque Saenz Pena 1219
Buenos Aires, Argentina
IMAX CORP: S&P Affirms B- Rating Despite 10-K Filing Delay
----------------------------------------------------------
Standard & Poor's Ratings Services affirms the ratings of IMAX
Corp. (B-/Negative/--) despite the company's delayed filing of
its SEC Form 10-K beyond the filing deadline of March 16, 2007.
The company intends to file its 10-K by March 30, 2007, and to
restate its financial statements for certain periods over the
past six years. IMAX expects that the restatement will have a
six-year net negative impact of roughly US$2.5 million. The
magnitude of the restatement and delay does not currently affect
IMAX's rating, though Standard & Poor's could become concerned
if there are further delays.
IMAX Corp. -- http://www.imax.com/-- founded in 1967 and
headquartered jointly in New York City and Toronto, Canada, is
an entertainment technology company, with particular emphasis on
film and digital imaging technologies including 3D, post-
production, and digital projection. IMAX also designs and
manufactures cameras, projectors and consistently commits
significant funding to ongoing research and development.
The IMAX Theatre Network currently consists of more than 270
IMAX affiliated theatres in 38 countries including Argentina,
Ecuador, Guatemala, Mexico and Colombia.
INNOVAR GROUP: Trustee Verifies Proofs of Claim Until May 16
------------------------------------------------------------
Hugo Raul Juarez, the court-appointed trustee for Innovar Group
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until May 16, 2007.
Mr. Juarez will present the validated claims in court as
individual reports on June 29, 2007. A court in Buenos Aires
will determine if the verified claims are admissible, taking
into account the trustee's opinion, and the objections and
challenges raised by Innovar Group and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Innovar Group's
accounting and banking records will be submitted in court on
Aug. 27, 2007.
Mr. Juarez is also in charge of administering Innovar Group's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Innovar Group S.A.
Jujuy 449
Buenos Aires, Argentina
The trustee can be reached at:
Hugo Raul Juarez
Ciudad de la Paz 2372
Buenos Aires, Argentina
LABORATORIOS AG: Proofs of Claim Verification Is Until May 9
------------------------------------------------------------
Elsa Ester Andrade, the court-appointed trustee for Laboratorios
A.G. S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until May 9, 2007.
Ms. Andrade will present the validated claims in court as
individual reports. A court in Buenos Aires will determine if
the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges raised by
Laboratorios and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Laboratorios'
accounting and banking records will be submitted in court.
Infobae did not say when the reports are due in court.
Ms. Andrade is also in charge of administering Laboratorios'
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Elsa Ester Andrade
Avda Callao 449
Buenos Aires, Argentina
MANYO SA: Trustee Will Verify Proofs of Claim Until June 12
-----------------------------------------------------------
Gustavo Fizman, the court-appointed trustee for Manyo SA's
bankruptcy proceeding, will verify creditors' proofs of claim
until June 12, 2007.
Under the Argentine bankruptcy law, Mr. Fizman is required to
present the validated claims in court as individual reports.
Court No. 19 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 Manyo and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Fizman will also submit a general report that contains an
audit of Manyo's accounting and banking records. The report
submission dates have not been disclosed.
Manyo was forced into bankruptcy at the behest of Comae SA,
which it owes US$17,532.08.
Clerk No. 37 assists the court in the proceeding.
The debtor can be reached at:
Manyo SA
Av. del Libertador 774
Buenos Aires, Argentina
The trustee can be reached at:
Gustavo Fizman
Santa Fe 5086
Buenos Aires, Argentina
PETROBRAS ENERGIA: Unit Gets Acquisition Offer from Enarsa
----------------------------------------------------------
Petrobras Energia S.A. informs Bolsa de Comercio de Buenos Aires
that, in compliance with the commitment assumed before the
Argentine Government to transfer Transener's shares, it received
an offer from Energia Argentina S.A. -- Enarsa -- and
Electroingenieria S.A. proposing legal, economic and financial
conditions identical to those offered by Eton Park Capital
Management, through EP Primerose Spain SL, for the acquisition
of the shares Petrobras Energia holds in Citelec S.A. and
Yacylec S.A.
As a result of this offer, the parties executed a letter of
agreement subject to approval by the Board of Directors of
Petrobras Energia, Enarsa and Electroingenieria. The letter of
agreement provides that the offer will be accepted if non-
acceptance of EP Primerose Spain SL became final through
administrative or legal proceedings or if the agreement entered
into with the latter were terminated for failure to obtain all
required governmental authorizations.
Petrobras Energia Participaciones SA (Buenos Aires: PBE, NYSE:
PZE) through its subsidiary, explores, produces, and refines oil
and gas, as well as generates, transmits, and distributes
electricity. It also offers petrochemicals, as well as markets
and transports hydrocarbons. The company conducts oil and gas
exploration and production operations in Argentina, Venezuela,
Peru, Ecuador, and Bolivia
* * *
As reported on Jan. 4, 2007, Fitch Argentina Calificadora de
Riesgo affirmed these ratings assigned to Petrobras Energia:
-- international currency: B+
-- local currency: BB-
-- unsecured senior debt: B+
* ARGENTINA: Mining & Environment Agencies Ink Mining Pact
----------------------------------------------------------
The Argentine mining and environment ministries have signed a
cooperation accord recognizing the importance of mining activity
for the nation's development, Business News Americas reports.
According to BNamericas, Mining Minister Jorge Mayorall and
Environment Minister Romina Picoloti signed the agreement with
the support of the federal mining advisory council, the mining
committee of the chamber of deputies and the Argentine mine
workers association.
The mining ministry said in a statement that the agreement
focuses on the importance of a framework to regulate mining and
the environment, the application of which would be the
responsibility of the provinces based on their right to control
natural resources.
BNamericas relates that the mining and environment ministries
agreed to build up efforts in:
-- technical assistance,
-- information, and
-- cooperation.
The ministries want to make productive economic development more
compatible with environmental safekeeping, BNamericas states.
* * *
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
* ARGENTINA: Will Resume Pulp Mill Talks with Uruguay in April
--------------------------------------------------------------
Argentine sources told reporters in Buenos Aires that the
country will continue negotiating with Uruguay at the end of
April in Spain to resolve the pulp mill conflict.
Merco Press relates that the meeting of Uruguayan and Argentine
government representatives in March was postponed, as requested
by Argentina.
According to reports, King Juan Carlos of Spain will join the
discussion.
As reported in the Troubled Company Reporter-Latin America on
Feb. 2, 2007, Juan Antonia Yanez Barnueo, Spain's envoy
ambassador to mediate between Argentina and Uruguay's pulp mill
construction dispute, met with Argentine Foreign Affairs
Minister Jorge Taiana for a third round of talks. He then met
with Uruguayan Foreign Affairs Minister Reinaldo Gargano to
discuss the conflict and come up with a possible solution. The
neighboring countries are at odds over the construction of two
pulp mills along their river border. The Argentine government
and environmental groups are protesting the mills' alleged
adverse effect on marine life at their river border. Uruguay
argued that studies have been made ascertaining the safety of
the river habitat and measures would be taken to ensure that the
mills wouldn't pollute the river. Argentina also claims Uruguay
violated the 1975 Statute of the River Uruguay, which states
that all issues concerning the river must be agreed upon by the
two nations. The matter has been brought to the International
Court of Justice at The Hague. A preliminary ruling was issued
in favor of Uruguay. The ruling, along with a financing from
the World Bank, renewed a series of protests and blockades of
access roads leading to Uruguay. Argentina expressed "its full
willingness" to dialogue with Uruguay in order to find a
solution to their dispute. The possible solutions to the
dispute are:
-- construction of a 30-km long pipeline
down the River Uruguay through which, the
wastes coming from the mills would be
pumped;
-- reshaping to help limit the plant visual
contamination (huge chimney) from the
Argentine side; and
-- construction of an additional drain that
be jointly financed by Argentina, Uruguay
and Spain.
However, Argentine sources commented to Merco Press, "There's a
wing of the Uruguayan government that is against going to Madrid
to dialogue with Argentina while the blockades are on, but the
Foreign Affairs ministry line has been that dialogue does not
mean negotiations."
Meanwhile, the works on the Botnia pulp mill went on. The first
hydraulic tests were already been conducted, Merco Press states.
* * *
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
=============
HARRAH'S ENTERTAINMENT: Affiliate Inks Pack with Bluff Media
------------------------------------------------------------
Harrah's Entertainment, Inc.'s affiliate Harrah's License
Company LLC has executed a non-binding letter of intent to form
a digital publishing alliance with Bluff Media LLC for online
and radio coverage of all World Series of Poker-branded events
or WSOP on a global basis.
The letter of intent, which is subject to execution of a
definitive agreement, calls for Bluff Media to be designated the
official digital publisher and radio partner of the WSOP, the
WSOP Circuit, WSOP Europe and other WSOP events. Bluff will
operate http://www.worldseriesofpoker.comand provide broadband,
streaming and real-time content, including chip counts, live
event updates and video and audio news programs and features.
"Bluff shares our vision for bringing WSOP content to every
medium that matters," said Jeffrey Pollack, commissioner of the
World Series of Poker. "Over the next four years, this alliance
will help us connect with our players and fans in new and
exciting ways, and further increase the value and relevancy of
our global brand."
"We believe the consolidation of digital-publishing rights under
this agreement will lead to a more cohesive, integrative and
compelling product for poker fans around the globe," said Eddy
Kleid, co-president of Bluff Media.
About Bluff Media
Bluff Media is the publisher of BLUFF magazine, America's
leading poker publication, and co-publisher of newly launched
SE7EN magazine, a sports-centric men's interest publication.
Bluff Media pioneered poker on the radio by broadcasting final
table play-by-play of 2006 World Series of Poker events on
satellite radio. Bluff Media continues to be a leader in
covering the world of competitive poker through its various
print, Internet, and broadcast media properties.
About Harrah's Entertainment
Headquartered in Las Vegas, Nevada, Harrah's Entertainment, Inc.
(NYSE: HET) -- http://www.harrahs.com/-- is a gaming
corporation that owns and operates casinos, hotels, and five
golf courses under several brands on four continents. The
company's properties operate primarily under the Harrah's,
Caesars and Horseshoe brand names; Harrah's also owns the London
Clubs International family of casinos. In January, it signed a
joint venture agreement with Baha Mar Resorts Ltd. to operate a
resort in Bahamas.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 16, 2007, Fitch Ratings may downgrade Harrah's
Entertainment Inc.'s aka HET Issuer Default Rating into the 'B'
category from its current 'BB+' rating based on the planned
capital structure for its leveraged buyout or LBO by Apollo
Management and Texas Pacific Group, which was outlined in its
preliminary proxy statement (filed Feb. 8, 2006).
As reported in the Troubled Company Reporter on Dec. 26, 2006,
Standard & Poor's Ratings Services lowered its ratings on
Harrah's Entertainment Inc. and its subsidiary Harrah's
Operating Co. Inc., including its corporate credit rating to
'BB' from 'BB+.
ISLE OF CAPRI: Inks Purchase Pact with Casino Aztar for US$45MM
---------------------------------------------------------------
Isle of Capri Casinos Inc. has entered into an agreement to
purchase Casino Aztar in Caruthersville, Missouri from an
affiliate of Columbia Sussex Corporation.
The agreement is subject to general conditions including the
approval of the Missouri Gaming Commission, and satisfactory
completion of due diligence by the Isle of Capri. The purchase
price is approximately US$45 million.
Banc of America Securities LLC is serving as financial advisor
to Columbia Sussex Corporation.
Based in Biloxi, Miss., Isle of Capri Casinos, Inc. (Nasdaq:
ISLE) -- http://www.islecorp.com/-- a developer and owner of
gaming and entertainment facilities, operates 16 casinos in 14
locations. The Company owns and operates riverboat and dockside
casinos in Biloxi, Vicksburg, Lula and Natchez, Miss.; Bossier
City and Lake Charles (two riverboats), La.; Bettendorf,
Davenport and Marquette, Iowa; and Kansas City and Boonville,
Mo. The Company also owns a 57% interest in and operates land-
based casinos in Black Hawk (two casinos) and Cripple Creek,
Colorado. Isle of Capri's international gaming interests
include a casino that it operates in Freeport, Grand Bahama, and
a 2/3 ownership interest in casinos in Dudley, Walsal and
Wolverhampton, England. The company also owns and operates
Pompano Park Harness Racing Track in Pompano Beach, Fla.
* * *
As reported in the Troubled Company Reporter on Dec. 26, 2005,
Standard & Poor's Ratings Services affirmed its ratings on Isle
of Capri Casinos Inc., including its 'BB-' corporate credit
rating. At the same time, all ratings were removed from
CreditWatch with negative implications where they were placed on
Sept. 1, 2005. S&P said the outlook is negative.
As reported in the Troubled Company Reporter-Latin America on
Oct. 4, 2006, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the Gaming, Lodging & Leisure
sector, the rating agency confirmed Isle of Capri Casinos,
Inc.'s Ba3 Corporate Family Rating.
ISLE OF CAPRI: Restatements Result to Nasdaq Delisting Notice
-------------------------------------------------------------
Isle of Capri Casinos Inc. received a NASDAQ Staff Determination
letter on March 13, 2007, because of its intention to restate
certain of its financial statements, and its resulting inability
to file its Quarterly Report on Form 10-Q by the March 9 due
date.
The company plans to request a hearing before the NASDAQ Listing
Qualifications Panel, which the delisting will be suspended.
The company's common stock will continue to trade on the NASDAQ
Global Select Market without interruption.
As a result, the company is not in compliance with the filing
requirements for continued listing of its common stock on the
NASDAQ Global Select Market as set forth in Marketplace Rule
4310(c)(14).
Financial Results Restatement
On March 12, the company restated its financial statements for
the fiscal years ended April 25, 2004; April 24, 2005 and
April 30, 2006, and the quarterly results for fiscal 2005 and
2006 included therein, and for the first two quarters of fiscal
2007.
The company is assessing the time frame in which it expects to
complete and file the restated financial statements and its Form
10-Q for the fiscal quarter ended Jan. 28, 2007, but expects
that the restatements and Form 10-Q filing will be completed
prior to any final NASDAQ delisting determination.
About Isle of Capri
Based in Biloxi, Miss., Isle of Capri Casinos, Inc. (Nasdaq:
ISLE) -- http://www.islecorp.com/-- a developer and owner of
gaming and entertainment facilities, operates 16 casinos in 14
locations. The Company owns and operates riverboat and dockside
casinos in Biloxi, Vicksburg, Lula and Natchez, Miss.; Bossier
City and Lake Charles (two riverboats), La.; Bettendorf,
Davenport and Marquette, Iowa; and Kansas City and Boonville,
Mo. The Company also owns a 57% interest in and operates land-
based casinos in Black Hawk (two casinos) and Cripple Creek,
Colorado. Isle of Capri's international gaming interests
include a casino that it operates in Freeport, Grand Bahama, and
a 2/3 ownership interest in casinos in Dudley, Walsal and
Wolverhampton, England. The company also owns and operates
Pompano Park Harness Racing Track in Pompano Beach, Fla.
* * *
As reported in the Troubled Company Reporter on Dec. 26, 2005,
Standard & Poor's Ratings Services affirmed its ratings on Isle
of Capri Casinos Inc., including its 'BB-' corporate credit
rating. At the same time, all ratings were removed from
CreditWatch with negative implications where they were placed on
Sept. 1, 2005. S&P said the outlook is negative.
As reported in the Troubled Company Reporter-Latin America on
Oct. 4, 2006, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the Gaming, Lodging & Leisure
sector, the rating agency confirmed Isle of Capri Casinos,
Inc.'s Ba3 Corporate Family Rating.
=============
B E R M U D A
=============
REFCO INC: Plan Administrators Want US$15MM Claims Disallowed
-------------------------------------------------------------
RJM, LLC, as Plan Administrator of the Reorganized Refco Inc.'s
Chapter 11 cases, and Marc S. Kirschner, as Plan Administrator
and Chapter 11 Trustee of Refco Capital Markets, Ltd.'s case,
ask the U.S. Bankruptcy Court for the Southern District of New
York to rule on 31 administrative expense claims, totaling
approximately US$15,000,000.
Specifically, the Plan Administrators ask Judge Drain to
disallow and expunge 11 claims that are inconsistent with the
books and records of the Reorganized Debtors and RCM:
Claimant Claim No. Claim Amount
-------- --------- ------------
Illinois Department of Revenue 4974 US$379
Joe Damouni 3091 -
Michelle Y. Coe 3333 -
3446 -
Qwest Communications Corp. 3396 19,528
State of Connecticut 14285 400
Connecticut Revenue Service Dept. 14286 250
Tennessee Department of Revenue 14288 1,409
129 1,655
14287 521
128 350
The Plan Administrators also ask Judge Drain to reduce and
allow, and in certain cases, reclassify, six claims asserting
overstated amounts:
Claim Claim Modified
Claimant Number Amount Amount
-------- ------ ------ --------
Equity Trust Co. Cust. FBO 2982 US$8,022 US$8,022
Orange County Tax Collector 14421 6,783 6,783
Pitney Bowes Credit Corp. 2316 3,853 3,853
4420 834 834
Telecommunications System, Inc. 14245 5,613 5,613
The City of New York 14298 12,017,928 125,000
The Plan Administrators also want nine claims disallowed and
expunged because they fail to assert any basis in satisfying
administrative expense status:
Claimant Claim No. Claim Amount
-------- --------- ------------
Fimat USA, LLC, and Fimat 14300 US$46,397
3413 46,397
NDC Online, Ltd. 3020 428,745
Living Water Fund L.P. 3402 1,809,972
Andrei Popov 14436 31,938
14437 31,938
Frances R. Dittmer 4268 75,000
Runyun He 14439 5,579
SNC Investments, Inc. 14441 146,477
Furthermore, the Plan Administrators ask Judge Drain to disallow
Claim No. 3417 filed by West Loop Associates, LLC, for
US$398,270, because it has already been addressed by the
Reorganized Debtors' Chapter 11 Plan and the Confirmation Order.
The Plan Administrators want four claims disallowed as
duplicate, amended, or superseded claims:
Claim Claim Remaining
Claimant Number Amount Claim
-------- ------ ------ ---------
Charles Fenton III IRA 14289 US$8,023 2982
14290 8,023 2982
Orange County Tax Collector 73 8,278 14421
14394 6,731 14421
The Plan Administrators reserve the right to amend, modify, or
file additional objections to the Administrative Claims on any
grounds.
About Refco Inc.
Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base. Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore. In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.
The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on Dec. 15, 2006. That Plan became effective on
Dec. 26, 2007. (Refco Bankruptcy News, Issue No. 59; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000)
REFCO INC: Plan Administrators Want Cross-Border Protocol Fixed
---------------------------------------------------------------
RJM, LLC, as Plan Administrator of the Reorganized Refco Inc.'s
Chapter 11 cases, and Marc S. Kirschner, as Plan Administrator
and Chapter 11 Trustee of Refco Capital Markets, Ltd.'s case,
ask the U.S. Bankruptcy Court for the Southern District of New
York to approve a cross-border insolvency protocol with the
joint provisional liquidators to ensure that the Parallel
Proceedings pending in the U.S. and Bermuda are conducted in an
efficient and effective manner so as to protect the interests of
stakeholders of the RCM and RGF estates; avoid duplication of
effort and expense; and implement the Plan.
Refco Capital Markets, Ltd., and Russia Growth Fund, Ltd., each
filed for Chapter 11 protection in the U.S. Bankruptcy Court for
the Southern District of Delaware on Oct. 17, 2005. Two days
after, RCM and RGF filed voluntary winding-up petitions in the
Supreme Court of Bermuda.
The Bermuda Court subsequently appointed Michael W. Morrison of
KPMG Financial Advisory Services Limited in Bermuda, and Richard
Heis of KPMG LLP in the United Kingdom, as joint provisional
liquidators in the Bermuda Proceedings. In April 2006, Marc S.
Kirschner was appointed as Chapter 11 trustee for the RCM
estate.
Timothy B. DeSieno, Esq., at Bingham McCutchen LLP, in New York,
relates that as of Feb. 22, 2007, neither the Joint Provisional
Liquidators nor their professionals have received payment or
reimbursement of any fees or expenses incurred in connection
with the U.S. and Bermuda Proceedings.
Mr. DeSieno notes that on Dec. 12, 2006, the Bermuda Court ruled
that the categories of actions undertaken by the Joint
Provisional Liquidators are within the scope of their duties
under Bermuda law, and that the hourly rates charged by them are
consistent with those charged in previous cases.
Pursuant to the confirmed Chapter 11 Plan of Refco, Inc., and
its debtor-affiliates, RJM, LLC, has been appointed Plan
Administrator of RGF, and serves as the corporate governance of
RGF under U.S. law, with full power and authority to manage
RGF's affairs and administer RGF's assets under the Plan and
auspices of the Bankruptcy Court.
On Jan. 17, 2007, the Bankruptcy Court issued an order
providing for the same allocation of fee approval
responsibilities between the Bankruptcy and Bermuda Courts in
accordance with the Dec. 8 Bermuda Order.
The Plan Administrators assert that the Protocol also resolves
the dispute concerning the appropriate amount and proper forum
for determination of the JPL fees.
Mr. DeSieno tells the Bankruptcy Court that the Protocol is
consistent with the purposes of and principles incorporated in
the Cross-Border Insolvency Concordat adopted by the Council of
the International Bar Association on May 31, 1996. The Protocol
recognizes that the U.S. Proceedings are the main proceedings
for RCM and RGF. He states that the relative duties and rights
of the Plan Administrators and JPLs are apportioned according to
those principles with respect to:
-- their legal responsibilities;
-- the domiciles of RCM and RGF; and
-- the sovereignty of the U.S. and Bermuda courts.
Since the U.S. Proceedings are the Main Proceeding, the Protocol
provides that Mr. Kirschner and the Refco Administrator, as
applicable, will be responsible for the claims review process,
and proof and allowance of claims will be coordinated through
the U.S. Proceedings and the Bankruptcy Court.
Reimbursement of fees and expenses of the JPLs and their
professional advisors will be:
-- a total of US$1,790,000 in full and final payment and
satisfaction of all fees and expenses incurred through the
date of effectiveness of the Protocol; and
-- up to an additional US$20,000 in full and final payment
and satisfaction of all fees and expenses incurred in
connection with securing the withdrawal of the winding-up
petition of RGF in the Bermuda Court.
Furthermore, the Refco Administrator and the JPLs have agreed
that RGF is solvent following the Plan implementation. At the
earliest possible time, RGL will seek leave from the Bermuda
Court to withdraw its winding-up petition in Bermuda, which
would, in turn, result in the dismissal of the order appointing
the JPLs. At the same time, the JPLs will seek their release
from the Bermuda Court.
About Refco Inc.
Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base. Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore. In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.
The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on Dec. 15, 2006. That Plan became effective on
Dec. 26, 2007. (Refco Bankruptcy News, Issue No. 59; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000)
RENAISSANCE CAPITAL: S&P Ups Counterparty Credit Rating to BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit rating to 'BB-' from 'B+' on Russian
securities firm Renaissance Capital Holdings Ltd. At the same
time, the ratings were removed from CreditWatch with positive
implications, where they had been placed on Dec. 19, 2006. At
the same time, the 'B' short-term rating was affirmed. The
outlook is stable.
"The upgrade reflects Renaissance Capital's strengthening
business profile and financial performance, supported by very
favorable market conditions; consistent strategy; and tighter
risk management," Standard & Poor's credit analyst Elena
Romanova said.
The ratings are still constrained by the firm's vulnerability to
the risky and concentrated Russian securities markets, as
highlighted by its substantial, albeit declining, earnings
concentrations in the brokerage business.
The Russian securities market remains extremely risky, due to
volatile prices and liquidity. Renaissance Capital is therefore
vulnerable to market risk and event shocks, through potential
falling values and trading volumes, and to settlement risk
arising from its brokerage and trading businesses. Over half of
Renaissance Capital's brokerage business is with reputable
international banks and financial companies, resulting in below-
average counterparty credit risk for Russian financial
institutions.
Renaissance Capital nearly doubled its equity between
Dec. 31, 2004, and Sept. 30, 2006, to over US$550 million, on
high retention of strong earnings.
"We expect Renaissance Capital to be able to expand its business
by leveraging its franchise in a growing market and the
structural risks arising from its businesses," said Ms.
Romanova. "The group is likely to continue to diversify,
maintain satisfactory profitability, and widen its capital base
in the medium term."
Further upward ratings movement depends on Renaissance Capital's
ability to sustain its positive commercial momentum, establish a
stronger risk management framework, and maintain its strong
profitability. The ratings could be lowered, or the outlook
revised to negative if the group's market position weakens, or
if the financial performance or capital base drops
significantly. The ratings will remain sensitive to the
performance of the Russian securities market and Renaissance
Capital's ability to generate recurrent revenues in a
volatile environment.
Renaissance Capital Holdings Ltd. is the investment banking and
asset management segment of Renaissance group, which also
includes consumer finance and merchant banking. Renaissance
Capital Holdings is the ultimate holding company of Renaissance
Capital, a leading Russian equity and fixed-income brokerage and
advisory house, which provides services to international and
domestic investors. Renaissance Capital Holdings reported total
consolidated assets of US$3.4 billion and total equity of US$510
million under International Financial Reporting Standards as of
June 30, 2006.
The Renaissance Capital group was founded in 1995 and is now a
leading Russian and Ukrainian investment bank with the holding
company (Renaissance Capital) located in Bermuda. Renaissance
UK was created in 2000 in the UK for the group's trading
operations with non-CIS clients.
SCOTTISH RE: Unit Inks Term Loan Pact with Ableco & Mass. Mutual
----------------------------------------------------------------
Scottish Re Group Ltd.'s unit Scottish Annuity & Life Insurance
Co. Ltd. as borrower, Scottish Re and certain of its
subsidiaries as guarantors and Ableco Finance LLC and
Massachusetts Mutual Life Insurance Co. as lenders entered into
a term loan agreement, with Ableco Finance acting as agent on
March 9.
In a Form 8-K filed March 15, Scottish Re said that the proceeds
of any borrowings under the loan will be used to pay all the
costs and expenses incurred in connection with the term loan
agreement and for general working capital purposes.
If the security purchase agreement transaction with MassMutual
Capital Partners LLC and SRGL Acquisition LLC, an affiliate of
Cerberus Capital Management LP, is completed, the investors will
initially hold securities representing approximately 68.7% of
the voting power of all of the company's shareholders, subject
to certain adjustments.
Upon the completion of the transaction, Scottish Annuity & Life
Insurance will be obliged to repay to the lenders any borrowings
under the loan agreement.
Massachusetts Mutual Life Insurance is an affiliate of
MassMutual Capital Partners.
Ableco Finance is an affiliate of Cerberus Capital Management.
Scottish Re Group Ltd. -- http://www.scottishre.com/--
is a global life reinsurance company. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland,
Singapore, the United Kingdom and the United States. Its
flagship operating subsidiaries include Scottish Annuity & Life
Insurance Company (Cayman) Ltd., Scottish Re (U.S.) Inc. and
Scottish Re Limited.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 6, 2007, Standard & Poor's Ratings Services said that its
ratings on Scottish Re Group Ltd. (B/Watch Dev/--) and
affiliated operating companies remain on CreditWatch with
developing implications following the announcement by the
company that the shareholders have approved the transaction by
which MassMutual Capital Partners LLC and affiliates of Cerberus
Capital Management L.P. would provide an equity infusion of
US$600 million in a transaction to close in the second quarter
of 2007.
=============
B O L I V I A
=============
GOL LINHAS: Discloses 2007 First Quarter Dividends Payment
----------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A. announced its Board of
Directors, at a meeting held on March 16, 2007, approved the
payment of interest on stockholder's capital and supplementary
dividends, referring to the first quarter of the fiscal year of
2007.
Amount of Interest on Stockholder's
Capital and Supplementary Dividends
The total amount of interest on stockholder's capital and
supplementary dividends is BRL73,715,453.48, corresponding to
BRL0.35 per common and preferred shares of the company.
From the total amount, it will be paid under the form of
interest on stockholder's capital, the gross amount of
BRL33,607,682.22, corresponding to the net amount of BRL0.14559
per common and preferred share, and BRL40,107,771.26 under the
form of supplementary dividends, corresponding to BRL0.20441 per
common and preferred share of the company.
Date of Credit
The credit of the amount of the interest on stockholder's
capital and supplementary dividends on the company's accounting
records shall be made on March 30, 2007, considering the
shareholder position of March 20, 2007.
Ex- Dividends Date
The company's shares will be traded on Sao Paulo Stock Exchange
(BOVESPA) and NYSE, "ex" dividends as of, and including,
March 21, 2007.
Withholding Income Tax
The amount of the interest on stockholder's capital is subject
to withholding income tax at a rate of 15%, except to
shareholders that evidence to be exempt or immune, and for those
domiciled in a tax heaven jurisdiction, subject to an income tax
rate of 25%.
Evidence of Exemption/Immunity
Shareholders immune or exempt of withholding income tax shall
verify if such condition is stated in their records maintained
at the company's shares registrar (Banco Itau).
Imputation of Interests on
Stockholder's Capital
The payment of interest on stockholder's capital and
supplementary dividends is resolved according to the quarterly
intercalary dividends.
Payment of Interest on Stockholder's
Capital and Supplementary Dividends
The interest on stockholder's capital and supplementary
dividends will be paid to shareholders, with no remuneration, on
May 4, 2007.
Headquartered in Sao Paulo, Brazil, GOL Linhas Areas
Inteligentes S.A. -- http://www.voegol.com.br-- through its
subsidiary, GOL Transportes Aereos S.A., provides airline
services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay.
The company's services include passenger, cargo, and charter
services. As of March 20, 2006, Gol Linhas provided 440 daily
flights to 49 destinations and operated a fleet of 45 Boeing 737
aircraft. The company was founded in 2001.
* * *
On March 21, 2006, Moody's Rating Services assigned a Ba2 rating
on GOL's Long-Term Corporate Family Rating.
On June 14, 2006, Fitch Ratings assigned a rating of 'BB' to GOL
Linhas' outstanding US$200 million 8.75% perpetual
bond. In addition, Fitch assigned:
-- National Scale Rating of 'AA-(bra)' with Stable Outlook,
and
-- Local Currency Issuer Default Rating of 'BB+'- with
Stable Outlook.
===========
B R A Z I L
===========
BANCO BRADESCO: Central Bank Okays BRL3.80-Billion Capital Raise
----------------------------------------------------------------
Banco Bradesco SA said in a statement that the Brazilian central
bank has authorized it to increase its capital by BRL3.80
billion to BRL18.0 billion.
The capital increase, which the Banco Bradesco shareholders
approved on March 12, comes from profit reserves and gives
shareholders one new share for each one held, Business News
Americas relates.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
(NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on
serving low-and medium-income individuals in Brazil since the
1960s. Bradesco is Brazil's largest private bank, with more
than 3,000 banking branches, and also a leader in insurance and
private pension management. Bradesco has branches throughout
Brazil as well as one in New York, and Japan. Bradesco offers
Internet banking, insurance, pension plans, annuities, credit
card services (including football-club affinity cards for the
soccer-mad population), and Internet access for customers. The
bank also provides personal and commercial loans, along with
leasing services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 26, 2007, Fitch Ratings affirmed these issuer default
ratings on Bradesco, with a Stable Outlook:
-- Long-term foreign currency at 'BB+';
-- Long-term local currency at 'BBB-';
-- Individual rating at 'B/C';
-- Local currency short-term at 'F3';
-- Short-term at 'B';
-- Support rating of '4';
-- National short-term rating 'F1+(bra)'; and
-- National long-term rating 'AA+(bra)'.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2006, Standard & Poor's Ratings Services maintained the
'BB+' ratings on both of Banco Bradesco SA's foreign and local
currency counterparty credit rating, however it changed the
ratings outlook to positive from stable on both ratings:
-- Foreign currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Local currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Brazil national scale rating
* to brAA+/Positive/brA-1 from brAA+/Stable/brA-1
BANCO DO BRASIL: Plans BRL650 Million in Home Loans in 2007
-----------------------------------------------------------
Banco do Brasil Retail Director Denilson Goncalves Molina told
Business News Americas that the bank will make BRL650 million
available in home loans this year.
Mr. Molina said that Banco do Brasil decided to enter the home
loan market in 2006, initially planning to launch its own
portfolio in the second half of 2007. However, increasing
competition in the segment made Banco do Brasil bring forward
its entry through a partnership with Poupex, a savings and loan
association. Still the bank plans on operating its own home
loan portfolio by the second half of 2007, BNamericas notes.
BNamericas underscores that Banco do Brasil launched a pilot
program with Poupex in Brasilia on Feb. 12 and authorized
BRL10.4 million in home loans in the first month. Banco do
Brasil and Poupex then extended the partnership to:
-- Sao Paulo,
-- Parana,
-- Santa Catarina, and
-- Rio Grande do Sul.
Mr. Molina told BNamericas that Banco do Brasil is considering
the offer of home loans through the many financial services
agreements the bank holds with retailers and other businesses.
According to BNamericas, Banco do Brasil first partnered with
regional retailer Lojas Maia in April 2006. It now runs 26
financial services accords with retailers and small business
associations, among others.
Banco do Brasil will bring its number of financial services
deals to at least 40 by the end of 2007 in an effort to reach
more non-account holders, BNamericas states.
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings upgraded Banco do Brasil S.A.'s
Support rating to '3' from '4', and affirmed its other ratings:
-- Foreign currency Issuer Default Rating (IDR) at 'BB+';
-- Short-term foreign currency at 'B';
-- Local currency IDR at 'BB+';
-- Short-term local currency at 'B';
-- Individual rating at 'C/D';
-- National Long-term rating at 'AA(bra)'; and
-- Short-term rating at 'F1+(bra)'.
BANCO DO BRASIL: Won't Sell Insurance Through GM Credit Card
------------------------------------------------------------
Banco do Brasil has decided not to sell insurance products
through a credit card partnership with General Motors' Brazilian
unit, Business News Americas reports.
As reported in the Troubled Company Reporter-Latin America on
March 16, 2007, Banco do Brasil retail and distribution vice
president Aldemir Bendine said that the bank would market
insurance products through a private-label credit card accord
with General Motors' Brazilian unit. Mr. Bendine stated that
selling insurance would be part of the partnership.
However, Banco do Brasil Corporate Director Walter Maliene
denied to BNamericas that selling insurance was part of the
deal, saying that the bank will only manage the credit cards.
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.
General Motors also has operations in Argentina, Brazil, Chile,
Colombia, Ecuador, Venezuela, Paraguay and Uruguay.
About Banco do Brasil
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings upgraded Banco do Brasil S.A.'s
Support rating to '3' from '4', and affirmed its other ratings:
-- Foreign currency Issuer Default Rating (IDR) at 'BB+';
-- Short-term foreign currency at 'B';
-- Local currency IDR at 'BB+';
-- Short-term local currency at 'B';
-- Individual rating at 'C/D';
-- National Long-term rating at 'AA(bra)'; and
-- Short-term rating at 'F1+(bra)'.
BANCO NACIONAL: Board Okays BRL70.2MM Financing to Onix Geracao
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES'
board approved a BRL70.2 million financing to Onix Geracao de
Energia Eletrica S.A. The resources will be directed to the
construction of the Small Hydroelectric Plant, Alto Sucuriu,
with a 29 MW installed capacity, which is located in the Sucuriu
River, in the Municipalities of Costa Rica, Agua Clara and
Chapadao do Sul, all of them in the Northwest of Mato Grosso do
Sul.
The project is part of Proinfa, Program of the Ministry of Mines
and Energy, which is directed to the promotion of energy to the
alternative energy sources and will generate 455 jobs during the
works. BNDES will finance 70% of the PCH total cost, which is
budgeted in BRL110.4 million and the resources will be released
through a mixed operation. That is, directly by BNDES (BRL52.7
million) and through financial agent, which is, in this case,
Banco do Brasil (BRL17.6 million).
BNDES is the great financing institution of Proinfa, Financial
Support Program for Investments in Alternative Sources of
Electrical Energy, which aims at diversifying the Brazilian
energetic matrix. BNDES's project portfolio, in the ambit of
Proinfa, reaches the amount of BRL3.6 billion financings and it
will enable BRL5 billion total investments.
BNDES will support 56 projects with a 1,447 MW generation
capacity. Out of this total, 39 projects are PCHs, which
demanded a BRL2.3 billion BNDES's financing, representing BRL3.2
billion investments. The installed capacity of the small
hydroelectric plants is 818 MW.
The project also forecasts the construction of a 138 KV
transmission line, with roughly 30-kilometer length, which will
interlink PCH Alto Sucuriu with the sub-plant of PCH Para¡so, of
Enersul.
Socio-environmental -- The project environmental impact is
almost inexistent, since only 10 properties will be affected by
the filling of the plant's reservoir, and none of them will be
unfeasible. The plant will not provoke condemnations and
removal of the populations. The installation and deforestation
licenses have already been obtained at the Federal, State and
Municipal bodies. In the plant's construction, it will be used
local workforce (roughly 80% of the total) and the remaining
jobs will be directed to employees of the own enterprise.
About BNDES
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
BANCO NACIONAL: Lending Increased 22% to BRL55.0B in February
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that its lending increased 22% to BRL55.0 billion at
the end of February 2007, compared to the same time in 2006.
Business News Americas relates that Banco Nacional's new loan
approvals grew 46% to BRL79.9 billion in February 2007, compared
to February 2006. Loan applications rose 16% to BRL109 billion.
According to BNamericas, lending to the trade and services
sector increased 46% to BRL3.67 billion in February 2007,
compared to February 2006. Approved loans rose 86% to BRL6.26
billion. Loans to the manufacturing industry grew 38% to
BRL30.0 billion and new loan approvals rose 42% to BRL40.1
billion.
Meanwhile, funding for infrastructure projects remained flat at
BRL17.0 billion in February 2007, compared to February 2006.
However, new loan approvals to the sector increased 54% to
BRL29.3 billion, after the Brazilian government's January
announcement of its economic growth acceleration program,
BNamericas notes.
The report says that Banco Nacional's loans to agribusinesses
declined 12% to BRL3.42 billion in February 2007, compared to
February 2006. New approvals rose 7% to BRL4.20 billion.
Banco Nacional's loans to small and medium-sized enterprises
increased 3% to BRL4.07 million in the 12 months ended February
2007, compared to the same period in 2006. New loan approvals
rose 40% to BRL43.1 billion. Retail lending decreased 22% to
BRL2.88 billion, while approved retail loans declined 3% to
BRL67.0 billion, BNamericas states.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
BAUSCH & LOMB: Names Efrain Rivera as Senior Vice-President
-----------------------------------------------------------
Bausch & Lomb named Efrain Rivera as Senior Vice-President and
Chief Financial Officer, succeeding Stephen C. McCluski who has
announced his plan to retire on June 30, 2007. Mr. McCluski
will serve as senior vice president-corporate strategy,
responsible for strategic business development activities, until
his retirement.
"We're very fortunate to have an executive of Efrain Rivera's
caliber to succeed Steve in the CFO function," said Chairman and
CEO Ronald L. Zarrella. "Efrain has managed successively more
responsible positions in business analysis, investor relations,
commercial operations and treasury, and has demonstrated that he
has the experience, perspective and leadership skills to be an
exceptional CFO."
Mr. Rivera, 50, joined Bausch & Lomb in 1989 and has held
management and executive positions in Corporate Treasury,
Business Analysis and Investor Relations. He has served as
general manager of Bausch & Lomb Mexico, vice president-finance
for Global Vision Care, and president-Bausch & Lomb Canada and
Latin America. He was elected an officer of the company in
2002, and has been corporate vice president and treasurer since
2004. Prior to joining Bausch & Lomb he served as an attorney
in the Civil Division of the U.S. Department of Justice.
Mr. Rivera received a B.S. degree from Houghton College,
Houghton, New York, an MBA in Finance from the William E. Simon
Graduate School of Business at the University of Rochester, a
J.D. degree from New York University, and an Executive Doctorate
in Management from Case Western Reserve University, Cleveland,
Ohio. A member of Beta Gamma Sigma, the national honor society
in business, at both the Masters and Doctoral levels, Rivera is
a Certified Management Accountant(R), Certified Financial
Manager(R) and a member of the Institute of Management
Accountants.
"Steve McCluski has served Bausch & Lomb with great distinction
during his 19-year career here, 12 of those years as CFO," said
Mr. Zarrella. "The Board of Directors and I are grateful for
his contributions to the growth and success of our businesses.
While I will especially miss his wise counsel, over the past few
years he has developed an outstanding successor in Efrain
Rivera, and that will allow us to manage through this transition
smoothly and efficiently."
Mr. McCluski, 54, has been with Bausch & Lomb since 1988, when
he joined the company as director-financial planning and
analysis for the former Personal Products Division. He served
as vice president and controller for the former Eyewear
Division, president of the former Outlook Eyewear subsidiary and
was named corporate vice president and controller in 1994. He
has served as Chief Financial Officer since 1995.
Headquartered in Rochester, New York, Bausch & Lomb Inc.
(NYSE:BOL) -- 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
COMMSCOPE INC: Inks Deal to Acquire Signal Vision
-------------------------------------------------
CommScope Inc. has signed a definitive agreement to acquire
substantially all of the assets of Signal Vision, Inc., a
supplier of broadband radio frequency subscriber products.
Signal Vision's product lines include digital passives, indoor
amplifiers and addressable taps. Signal Vision had revenues of
less than US$30 million in 2006.
"The addition of the Signal Vision line provides CommScope with
a more integrated suite of products for the last mile in
broadband networks," said Jim Hughes, Executive Vice President,
Broadband Sales & Marketing. "We believe there is significant
potential to expand the reach of Signal Vision's products
through CommScope's worldwide channels."
The transaction, which is subject to due diligence and customary
closing conditions, is expected to close in the second quarter.
Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) --
http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication
networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R)
Solutions brands CommScope is the global leader in structured
cabling systems for business enterprise applications. It is
also the world's largest manufacturer of coaxial cable for
Hybrid Fiber Coaxial applications. Backed by strong research
and development, CommScope combines technical expertise and
proprietary technology with global manufacturing capability to
provide customers with high-performance wired or wireless
cabling solutions.
CommScope, to serve the growing Latin American market, has begun
manufacturing coaxial cable for broadband wireless and wireless
networks in its plant in Jaguariuna, Brazil. It has over
283,000 sq. ft. of manufacturing space.
* * *
As reported in the Troubled Company reporter on Aug. 23, 2006,
Standard & Poor's Rating Services removed its rating on Hickory,
North Carolina-based CommScope, Inc., from CreditWatch with
negative implications from CreditWatch, where they were placed
with negative implications on Aug. 7, 2006, and affirmed the
existing 'BB' corporate credit rating. S&P said the outlook is
stable.
GERDAU: Pegged As Likely Bidder for Arcelor's Sparrows Mill
-----------------------------------------------------------
Gerdau S.A. is a "natural" candidate to join the sale process of
Arcelor Mittal's Sparrows Point mill in the United States, Valor
Economico reports.
The U.S. Department of Justice ordered Mittal Steel Co. to sell
its Sparrows Point steel plant in Baltimore, Md., over concerns
about competition brought about by the deal that created Arcelor
Mittal, the world's largest steel company.
The Sparrows Point plant is one of the largest and most
efficient blast furnaces in North America and is capable of
producing 3.9 million tons of raw steel annually. The fully
integrated steel-making facility is located on the Chesapeake
Bay. Sparrows Point is the former Bethlehem Steel plant and has
stood on its site since 1887.
"We will analyze the [sale] process and decide if we will
participate," Gerdau's Chief Executive Offier Andre Bier Gerdau
Johannpeter was quoted by Valor Economico as saying.
Headquartered in Porto Alegre, Brazil, Gerdau SA --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.
* * *
As reported in the Troubled Company Reporter on Jan. 19, 2007,
Standard & Poor's Ratings Services placed its ratings, including
its 'BB' corporate credit rating, on Tampa, Fla.-based Gerdau
Ameristeel Corp. on CreditWatch with positive implications.
GERDAU SA: S&P Puts BB+ Corporate Credit Rating on Pos. Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB+' long-term
corporate credit rating on Gerdau SA on CreditWatch with
positive implications, reflecting robust consolidated business
and financial performance and our expectation that the company's
financial policy will remain prudent despite an acquisitive
growth strategy and healthy industry conditions.
The action also reflects Standard & Poor's expectations for
reasonable, albeit lower, pricing to continue in both the US and
Brazil for the near-to-intermediate term. Gerdau's adjusted
total consolidated debt was US$4.5 billion as of Dec. 31, 2006.
Due to favorable market conditions (especially in North
America), Gerdau has been able to sustain an improved capital
structure in the past several years while concurrently
diversifying and expanding its operations. Gerdau's presence in
nonflat steel has substantially expanded in North America in the
past years, while remaining consistently robust in Brazil and
other South American markets.
"Although the steel industry is cyclical and volatile, the
ongoing consolidation should result in more price stability in
the long term. This should particularly benefit Gerdau's
operations in North America, which are more exposed to importing
threats," Standard & Poor's credit analyst Reginaldo Takara
stated.
In resolving the CreditWatch, Standard & Poor's will review the
company's operating and capital plans, and test the
sustainability of its strong financial condition over a range of
business conditions and country risks.
Headquartered in Porto Alegre, Brazil, Gerdau SA
-- http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.
GOL LINHAS: Subsidiary Prices US$225MM 7.5% Sr. Notes Offering
--------------------------------------------------------------
GOL Linhas Aereas Inteligentes's subsidiary Gol Finance has
priced an offering of US$225 million 7.5% Senior Notes due 2017
in a transaction exempt from registration under the United
States Securities Act of 1933, as amended. Gol and its
subsidiary, Gol Transportes Aereos S.A., will guarantee the
Notes. The Notes will be senior unsecured debt obligations of
Gol. Gol intends to use the proceeds of the offering to finance
the acquisition of Boeing 737 Next Generation aircraft,
equipment and supply materials, as a complement to its U.S. Exim
Bank guaranteed bank financing. The transaction is expected to
close on March 22, 2007.
In connection with the Notes, Gol will enter into a registration
rights agreement providing that it will use its reasonable best
efforts to file with the Securities and Exchange Commission and
cause to become effective a registration statement relating to
an offer to exchange the Notes for an issue of registered notes
with terms identical to the notes, except that the exchange
notes will not be subject to restrictions on transfer or to any
increase in annual interest rate as described in the agreement.
The Notes (and the guarantees) have not been and, except as
contemplated by the registration rights agreement, will not be
registered under the Securities Act and may not be offered or
sold (a) in the United States absent registration or an
applicable exemption from registration under the Securities Act,
or (b) in any other jurisdiction in which such offer or sale is
prohibited.
Headquartered in Sao Paulo, Brazil, GOL Linhas Areas
Inteligentes S.A. -- http://www.voegol.com.br-- through its
subsidiary, GOL Transportes Aereos S.A., provides airline
services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay.
The company's services include passenger, cargo, and charter
services. As of March 20, 2006, Gol Linhas provided 440 daily
flights to 49 destinations and operated a fleet of 45 Boeing 737
aircraft. The company was founded in 2001.
* * *
On March 21, 2006, Moody's Rating Services assigned a Ba2 rating
on GOL's Long-Term Corporate Family Rating.
On June 14, 2006, Fitch Ratings assigned a rating of 'BB' to GOL
Linhas' outstanding US$200 million 8.75% perpetual
bond. In addition, Fitch assigned:
-- National Scale Rating of 'AA-(bra)' with Stable Outlook,
and
-- Local Currency Issuer Default Rating of 'BB+'- with
Stable Outlook.
ITRON INC: Moody's Downgrades Corp. Family Rating to B1 from Ba3
----------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of Itron Inc. to B1 from Ba3, concluding the review process
initiated on Feb. 27, 2007. Moody's also assigned a Ba3 rating
to the new senior first-lien multi-currency credit facilities
and downgraded the existing senior subordinated notes to B3.
The downgrade of Itron's CFR reflects the significant increase
in leverage expected at closing of the US$1.6 billion
acquisition of Actaris, a leading European manufacturer of
electric, gas and water meters. Though recognizing the positive
business implications of the transaction, mainly broader scale,
enhanced geographic, customer and product diversity, which are
expected to bring more revenue stability, as well as the
potential cross-selling opportunities, the rating agency
concluded that the company's CFR would be more adequately
positioned in the B1 category given the large debt funding
component and the related deterioration of the financial metrics
at closing. The B1 rating is also based on the expectation that
Itron will use substantially all of its free cash flow to de-
lever its balance sheet in such a way that total debt to EBITDA
will reduce to below 5 times by the end of 2008 from 6 times on
a pro forma basis at Dec. 31, 2006. Free cash flow/debt is also
expected to exceed 6% by end 2008.
Moody's assessed that integration risk was moderate despite the
magnitude of the acquisition due to:
(1) limited geographic and technological overlap between
the two companies,
(2) the proximity of Itron's management with Actaris'
as a result of past joint experience within the
Schlumberger group, and
(3) the absence of manufacturing consolidation plan.
The newly assigned Ba3 rating to the senior first-lien multi-
currency credit facilities and the downgrade of the senior
subordinated notes rating to B3, reflect the contractual and
effective subordination of the notes to the bank debt with
respect to all domestic assets and Moody's assessment of their
respective expected loss in the event of default.
These ratings have been downgraded:
-- Corporate Family Rating to B1 from Ba3
-- Probability of Default Rating to B1 from Ba3
-- Senior Subordinated Notes due 2012 to B3 (LGD5, 84%)
from Ba1 (LGD2, 25%)
These rating have been withdrawn:
-- Baa3 (LGD1, 3%) US$55 million Senior Secured Revolver
due 2009
These new ratings have been assigned:
-- Ba3 (LGD3, 31%) US$115 million Senior Secured
Multi-Currency Revolver due 2011
-- Ba3 (LGD3, 31%) US$605.1 million Senior Secured
First-Lien US Term Loan due 2011
-- Ba3 (LGD3, 31%) EUR310 million Senior Secured First-Lien
Euro Term Loan due 2011
-- Ba3 (LGD3, 31%) GBP50 million Senior Secured First-Lien
Sterling Term Loan due 2011
Itron Inc. (NASDAQ:ITRI) -- http://www.itron.com/-- is a
technology provider and critical source of knowledge to the
global energy and water industries. Nearly 3,000 utilities
worldwide rely on Itron technology to provide the knowledge they
require to optimize the delivery and use of energy and water.
Itron creates value for its clients by providing industry-
leading solutions for electricity metering; meter data
collection; energy information management; demand response; load
forecasting, analysis and consulting services; distribution
system design and optimization; web-based workforce automation;
and enterprise and residential energy management. Effective
April 2006, Itron has acquired Brazil's ELO Tecnologia. Itron
Tecnologia has offices and a manufacturing assembly facility in
Campinas, Sao Paulo, Brazil and offices in Santiago, Chile.
MACDERMID INC: Loan Add-On Cues S&P to Affirm B+ Loan Rating
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its bank loan and
recovery ratings on MacDermid Inc.'s proposed senior secured
credit facilities, following the announcement that the company
will increase the term loan principal amount to the US dollar
equivalent of US$610 million. The proposed term loan will now
have both a US$360 million tranche and a EUR250 million tranche.
The secured loan rating is 'B+' (one notch higher than the
expected corporate credit rating) and the recovery rating is a
'1', indicating the expectation for full (100%) recovery of
principal in the event of a payment default.
Other changes to the debt financing structure include the
cancellation of the US$250 million senior unsecured notes due in
2014, a US$135-million increase in the senior subordinated notes
due in 2017 to US$350 million, and the addition of US$15 million
in Japanese senior secured bank debt due in 2014.
Proceeds from the new bank credit facilities and the senior
subordinated notes will be used to finance the acquisition of
MacDermid in a transaction valued at about US$1.3 billion.
Upon successful completion of the acquisition and proposed
financing, Standard & Poor's will resolve the CreditWatch
listing. Standard & Poor's also expect to withdraw all of the
ratings on the existing debt instruments upon closing of the
proposed refinancing.
Standard & Poor's ratings on MacDermid:
-- Corporate credit rating: BB+/Watch Neg/--
-- Senior secured credit facilities: B+ (Recovery rtg: 1)
MacDermid Inc. (NYSE:MRD)-- http://www.macdermid.com/-- is
manufacturer of a broad line of chemicals and related equipment
for a range of applications, including metal and plastic
finishing, electronics, graphic arts and printing, and offshore
drilling. The company maintains its headquarters in Denver,
Colorado, but operates facilities worldwide, including Brazil,
China, Germany, Italy, and Japan. Revenues for the twelve
months ended June 30, 2006, were US$797 million.
PETROLEO BRASILEIRO: Joins Ultra Group & Braskem to Buy Ipiranga
----------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras, the Ultra Group and
Braskem have reached an understanding to purchase Ipiranga Group
businesses, consolidating and increasing petrochemical and fuel
distribution sector businesses.
The transaction is worth approximately US$4 billion.
By acquiring the Ipiranga Group businesses, the three companies
reinforce their commitment to growth in Brazil, Rio Grande do
Sul and the same stakeholders targeted by Ipiranga: the
shareholders, employees, partners, community and consumers.
The Ipiranga Group, one of the largest and most traditional in
Brazil, operates in the oil refinery, petrochemical and fuel
distribution sectors. Last year it registered BRL30 billion in
net revenues, with Ebitda at BRLbillion and net earnings of
BRL534 million.
Petrobras' president, Jose Sergio Gabrielli de Azevedo, said the
deal is in line with the company's strategic plan, reinforcing
its active presence in the Brazilian petrochemical industry, in
which it already has important holdings. To Mr. Gabrielli,
"Petrobras intends to have a more relevant role in
petrochemicals than it has had in the past few years. The
Ipiranga negotiation is yet another step in the strategy of
consolidating important economic groups in Brazil, with a
relevant Petrobras presence in them. From the downstream
viewpoint, the executive also highlights the operation is
important as it increases the company's North, Northeast, and
Midwest network synergy.
Pedro Wongtschowski, the Ultra Group president, emphasized the
growth that is expected with the transaction. "With this
incorporation, we take-on important assets, committed
professionals and, moreover, the Ipiranga flag, which is among
Brazil's ten most valuable brands and one of the country's most
respected companies. With the acquisition, we significantly
boosted our operations in the fuel distribution area, now
holding two of the sector's main brands: Ultragaz and Ipiranga.
It is an investment in the fuel, biofuel, and in the Brazilian
markets."
Braskem's president, Jose Carlos Grubisich, said the Rio Grande
do Sul group's incorporation is a water divider in the strategy
at the company he leads: "we are among the world's top ten
petrochemical companies. We are committed to Brazil, to
Corporate Governance, to and sustainable development."
"This new petrochemical sector consolidation brings an important
growth potential to Braskem, with a new competitiveness and
profitability benchmark for our business," concluded Mr.
Grubisich.
Transaction Procedure
The first stage involves Ultra Group acquisition of the shares
held by the families controlling the Ipiranga Group. The Ultra
Group will then make a public offering to purchase common shares
held by Ipiranga Group minority shareholders.
In the third step, Braskem and Petrobras will submit offers to
shareholders to delist Copesul.
In the fourth step, the Ultra Group will incorporate preferred
shares held by Companhia Brasileira de Petr¢leo Ipiranga (CBPI),
Distribuidora de Produtos de Petr¢leo Ipiranga -- DPPI -- and
Refinaria de Petr¢leo Ipiranga -- RPI -- minority shareholders,
who will receive preferred shares in Ultrapar.
In the fifth and final step, petrochemical assets will be sold
and handed over to Braskem and Petrobras. Fuel distribution
businesses absorbed by Petrobras will reinforce the company's
distribution activities in the North East, North and Midwest.
The assets will be distributed as:
Fuel Distribution Sector
The Ultra Group will absorb the Ipiranga Group fuel distribution
network in the South and Southeast regions and will continue
trading under the Ipiranga brand.
Petrobras will take over the Ipiranga distribution network in
the North, North East and Midwest and will be entitled to use
the Ipiranga brand for a period of five years, during which time
it will be gradually substituted by the Petrobras Distribuidora
brand.
Petrochemical Sector
Braskem will acquire 60% of Ipiranga Group assets in the
petrochemical sector and will strengthen its controlling stake
in Copesul. Petrobras will acquire 40% of the Ipiranga Group
assets in the petrochemical sector.
Refining
Petrobras, the Ultra Group and Braskem will have equal
controlling shareholdings in the Ipiranga Refinery, in Rio
Grande do Sul, and they have made a commitment to continuing
operations.
The transaction is subject to regulatory approval in Brazil from
the Economic Defense Board, Economic Law Secretariat, and the
Economic Oversight Secretariat.
In the fuel distribution sector, the Ultra Group already owns
the leading GLP brand, Ultragaz, and will incorporate a highly
significant brand into its business, Ipiranga. This will result
in a significant increase in its sector presence based on best
corporate governance and management practices.
The petrochemical sector, Braskem will strengthen its Latin
American market leadership in thermoplastic resins, increasing
its stake in Copesul and advancing its strategy of building
growth by creating value.
Ipiranga's historical commitments to Rio Grande do Sul and to
Brazil will be upheld by Petrobras, the Ultra group and Braskem.
The company's social, cultural and environmental activities and
programs will also remain in place.
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.
REDE EMPRESAS: Fitch Assigns B Rating on Proposed US$200MM Notes
----------------------------------------------------------------
Fitch has assigned a 'B' rating to the proposed issuance of up
to US$200 million perpetual notes by Rede Empresas de Energia
Eletrica SA. The issuance has been assigned an 'RR4' Recovery
Rating, indicating an expected average recovery (31%-50%) given
a default and an assumed jurisdictional 'RR4' cap on instrument
ratings in Brazil. Fitch currently maintains Local and Foreign
Currency Issuer Default Ratings of 'B' and Brazilian national
scale ratings of 'BBB(bra)' to Rede Empresas and its
subsidiaries, Centrais Eletricas Matogrossenses S.A. aka Cemat
and Centrais Eletricas do Para S.A. aka Celpa. All ratings have
a Stable Rating Outlook.
The notes will rank pari passu with other Rede Empresas' senior
unsecured debt obligations and will be subordinated to the debt
of Rede Empresas' operating companies. The perpetual bonds have
no fixed final maturity but will become callable by Rede
Empresas in whole after the five-year initial term ending March
2012. The proceeds of the issuance will be used to refinance
existing working capital obligations at the holding level.
The rating is supported by the company's market position as an
important player in the electric distribution segment in Brazil
and the expected strengthening of credit protection measures of
the group over the next few years supported by continued growth
in operational results and cash flow and a reduction of annual
debt service via lower -- financing-cost debt. The rating also
reflects the relatively high leverage of the group when compared
to other electricity companies in the Brazilian market, as well
as the regulatory risks inherent in the Brazilian power sector.
Rede Empresas' credit profile is underpinned by its portfolio of
eight distribution companies, and, within this, by Centrais
Eletricas Matogrossenses S.A. and Centrais Eletricas do Para
S.A., which roughly accounted for 59.3% (or BRL536.6 million) of
Rede Empresas' 2006 consolidated EBITDA. Rede Empresas'
business fundamentals are supported by the natural monopoly
nature of the distribution and by the market regulation. The
distributor's operation are required to contract 100% of their
expected energy demand and the sector's new model allows for the
pass-through of all noncontrollable costs for distribution
companies. Although regulatory risks remain an ongoing credit
concern, the current electric energy industry model is generally
positive and should support growth and stability in the sector.
Rede Empresas benefits from broad, diversified and stable
customer bases. Many of the company's service areas show an
average consumption growth that has exceeded the national
average over the past five years. Rede Empresas' distribution
revenues grew 12.6% in 2006. Future improvement in operating
cash flow should also benefit from adequate tariff adjustments,
improving operating efficiencies and a more favorable economic
environment.
The company also participates in the electricity generation
segment through two hydroelectric generation companies of an
aggregate installed capacity of 529.3 megawatts, as well as
several small thermoelectric generation units with an additional
installed capacity of 127.6 megawatts. This segment represented
about 14.8% (or BRL133.8 million) of 2006 consolidated EBITDA.
As required by the New Electricity Sector Law of 2004, the
company engaged into a corporate structure reorganization
process, which ultimately resulted in the incorporation of
operating assets (previously directly owned by Rede Empresas'
parent company) into Rede Empresas in November 2006 and the
divestment of twenty unleveraged small hydroelectric companies
or SHCs in the last quarter of 2006. During the first nine
months of 2006 these SHCs reported an EBITDA of BRL56.1 million.
Sale proceeds of about BRL103 million (net of taxes and social
contributions) were applied to corporate general purposes.
Existing remaining generation assets should continue to provide
the company with positive cash flows reflecting highly
contracted positions and regulated off-take market. Rede
Empresas' strategy does not contemplate further investments in
utility generation assets in the short term.
Despite a leverage increase in 2006, Rede Empresas' debt and
cash flow levels remain consistent with the rating category.
Rede Empresas' consolidated leverage, as measured by adjusted
total debt-to-EBITDA, raised to 5.2x at December 2006, from 3.9x
at the end of the fiscal year of 2005. Nonetheless, the long-
term nature of new debt obligations in 2006 helped improved Rede
Empresas' maturities profile through amortization terms more
commensurate with operating cash flows.
Adjusted consolidated debt reduction effort by Rede Empresas was
mainly limited by the company's capital expenditure plans, a
recent tax renegotiation, and the corporate structure
reorganization, basically reflecting Inter-American Development
Bank or IDB loans to Celpa (US$100 million) and Cemat (US$79.5
million) to finance expansion and updating the distribution
grid, a tax renegotiation program PAEX (BRL1,134.9 million at
December), and debt assumptions and transfers of operating
assets as part of the aforementioned corporate structure
reorganization (BRL740 million outstanding at 2006 year-end).
Other proceeds from refinancing transactions, namely, a fund for
the securitizations of receivables (FIDC, BRL110.1 million of
original amount) and Celpa and Cemat's US$100 million notes
units also prolonged debt maturities and reduced refinancing
risks. Finally, the perpetual notes issuance will extend
improve the holding company's debt service profile to more
appropriate levels for its cash flows/dividends.
Further efforts of improving debt maturity profile along 2007
are expected as the company still shows concentration of debt
amortizations in 2008. The company has stated its intention to
launch an initial public offering next year, which could further
improve the credit quality of Rede Empresas and its
subsidiaries, as a large part of these resources may be used for
debt reduction.
Headquartered in Sao Paulo, Brazil, Rede Empresas de Energia
Eletrica SA is a holding company with interests in electricity
generation and distribution. The group operates concessions to
distribute electricity in the states of Tocantins, Mato Grosso
and Para through the following subsidiaries: Companhia de
Energia Eletrica do Estado do Tocantins aka Celtins, Centrais
Eletricas Matogrossenses S.A. aka Cemat, and Centrais Eletricas
do Para S.A. aka Celpa. In addition, Rede Empresas operates
small power distribution concessions in a number of
municipalities in the states of Sao Paulo, Minas Gerais and
Parana. The group's power generation capacity is substantially
represented by its 20.2% interest in Investco S.A. that owns the
concession to operate the 902 MW Luis Eduardo Magalhaes
hydropower plant, and a 39.5% interest in the 120 MW Guapore
hydropower plant. Rede Empresas reported net revenues of about
BRL3,217 million (US$1,476 million) in 2006.
REDE EMPRESAS: Moody's Assigns B2 Global Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service assigned corporate family ratings of
B2 on its global scale and Ba1.br on its Brazilian national
scale to Rede Empresas de Energia Eletrica SA. Simultaneously,
Moody's assigned issuer ratings B2 on its global scale and
Ba1.br on its national scale to Rede Empresas' operating
subsidiaries: Centrais Eletricas Matogrossenses S.A. aka Cemat,
Centrais Eletricas do Para S.A. aka Celpa and Companhia de
Energia Eletrica do Estado do Tocantins aka Celtins. Finally,
Moody's also assigned a B3 foreign currency rating to Rede
Empresas' proposed issuance of approximately US$200 million
senior unsecured perpetual bonds, which proceeds will be used
primarily to refinance existing debt. The outlook for all
ratings is stable.
Ratings assigned are:
Rede Empresas de Energia Eletrica SA:
-- Senior unsecured corporate family rating: B2 (global
local currency); Ba1.br Brazilian national scale
-- US$100 million senior unsecured foreign currency
perpetual notes: B3
Centrais Eletricas Matogrossenses S.A.
-- Senior unsecured issuer rating: B2 (global local
currency); Ba1.br Brazilian national scale
Centrais Eletricas do Para S.A.
-- Senior unsecured issuer rating: B2 (global local
currency); Ba1.br Brazilian national scale
Companhia de Energia Eletrica do Estado do Tocantins
-- Senior unsecured issuer rating: B2 (global local
currency); Ba1.br Brazilian national scale
Outlook: stable
The B2 global local currency corporate family rating for Rede
Empresas reflects its significant financial leverage as measured
by Total Adjusted Debt to EBITDA of 5.2x at Dec. 31, 2006, and
Moody's view of substantial refinancing risk in the coming years
in spite of the group's recent efforts to reduce indebtedness
and improve its debt maturity profile. According to Moody's
standard adjustments, Total Adjusted Debt includes debt-alike
obligations related to refinanced taxes, labor litigation,
pension fund, intercompany debt, leasing transactions and
refinanced obligations with power suppliers. During 2006, Rede
Empresas disposed of part of its power generation assets for an
aggregate amount of about BRL480 million and raised long-term
debt to replace maturing debt, including a US$250 million loan
granted by the Inter-American Development Bank to fund planned
capex. In Moody's view, significant additional efforts will be
required to refinance a considerable portion of maturing debt
over the next couple of years. Although Moody's expects EBITA
margins will remain healthy in the high teens range over the
near term, it is anticipated that Rede Empresas will remain free
cash flow negative in 2007 and 2008 due to relatively high
interest expenses and an elevated level of mandatory capex.
Accordingly, in Moody's view a significant deleveraging of the
company from internal cash generation in the near term is
unlikely to occur, thus leaving debt protection metrics fairly
weak, such as single-digit FFO to Total Adjusted Debt (net of
regulatory assets). Rede Empresas, as the vast majority of
Brazilian corporates, has no committed credit facilities to
support potential liquidity needs.
The B3 foreign currency rating assigned to the company's US$100
million senior unsecured perpetual bonds reflects the B2 global
local currency corporate family rating of Rede Empresas and the
structural subordination of the notes to substantial existing
debt at the operating subsidiaries. As an investment holding
company, Rede Empresas depends entirely upon upstreamed
dividends from its operating subsidiaries to meet its
obligations. The B3 rating of the perpetual notes is not
constrained by Brazil's current Ba1 sovereign ceiling and
assumes that there will be no material variation from the draft
documents reviewed and that all legal agreements are legally
valid, binding and enforceable.
Notwithstanding Moody's recognition that the regulated activity
and overall credit metrics of Cemat, Celpa and Celtins could be
supportive of higher ratings, the B2 issuer rating assigned to
the group's three operating subsidiaries is constrained by the
B2 corporate family rating of Rede Empresas due to existing
cross default provisions among these companies within the group,
as well as the significant pressure on those companies to
upstream dividends to service the group's excessively indebted
holding company. Combined, Cemat, Celpa and Celtins represent
about 80% of consolidated revenues, 70% of consolidated EBITDA,
and some 60% of Rede's consolidated adjusted debt as of
Dec. 31, 2006.
The ratings of Rede Empresas and its subsidiaries are also
constrained by the uncertainties related to the evolving
regulatory environment for Brazil's electricity sector.
Although Moody's recognizes that, in general, the new Brazilian
regulatory framework for the energy sector appears to provide a
more stable environment for the industry players, there are
still uncertainties regarding the regulation that is essentially
related to the substantial interference powers of the Federal
Government.
The stable outlook reflects Moody's belief that operating cash
flows will continue to grow although potential liquidity
constraints remain a concern for Rede Empresas over the near
term.
Rede's ratings or outlook could come under upward pressure if
Total Adjusted Debt to EBITDA drops to below 3.0x on a
sustainable basis combined with an overall improved liquidity
position. Further evidence of an improved supportive
environment by the Brazilian regulatory framework for electric
utilities could also positively impact the rating or outlook.
Conversely, the ratings or outlook would come under downward
pressure should FFO to Total Adjusted Debt ratio fall below 5%
for an extended period or if Rede Empresas is unable to
refinance its maturing debt in a timely manner. Additionally, a
deterioration of the regulatory environment could have a
negative impact on the ratings or outlook.
Headquartered in Sao Paulo, Brazil, Rede Empresas de Energia
Eletrica SA is a holding company with interests in electricity
generation and distribution. The group operates concessions to
distribute electricity in the states of Tocantins, Mato Grosso
and Para through the following subsidiaries: Companhia de
Energia Eletrica do Estado do Tocantins aka Celtins, Centrais
Eletricas Matogrossenses S.A. aka Cemat, and Centrais Eletricas
do Para S.A. aka Celpa. In addition, Rede Empresas operates
small power distribution concessions in a number of
municipalities in the states of Sao Paulo, Minas Gerais and
Parana. The group's power generation capacity is substantially
represented by its 20.2% interest in Investco S.A. that owns the
concession to operate the 902 MW Luis Eduardo Magalhaes
hydropower plant, and a 39.5% interest in the 120 MW Guapore
hydropower plant. Rede Empresas reported net revenues of about
BRL3,217 million (US$1,476 million) in 2006.
TK ALUMINUM: Amends Agreements & Terms on Nemak Sale Transaction
----------------------------------------------------------------
TK Aluminum Ltd. has executed amended and restated agreements
and completed the sale of certain of its assets and operations
in North America and its operations and interests in South
America to Tenedora Nemak, S.A. de C.V., a subsidiary of ALFA,
S.A.B. de C.V. Pursuant to the revised terms of the Nemak
transaction, the company remains obligated to sell its assets
and operations in Poland and a 70% equity interest in its
Chinese joint venture.
Under the revised Nemak transaction, the company is entitled to
receive an aggregate amount of US$485 million in cash, subject
to certain adjustments, together with a synthetic equity
interest in the Nemak business post-closing, which, after giving
effect to the completion of Nemak's acquisition of Norsk Hydro,
is expected to be no greater than 6.68%. The synthetic equity
interest is subject to downward revision for various
indemnities, guarantees and repayment of the US$25 million loan
issued in connection with the transaction. The synthetic equity
interest is also subject to adjustment for certain dilutive
events, changes in capitalization and the occurrence of certain
major transactions. Pursuant to the revised terms of the Nemak
transaction, Nemak is obligated to provide the company with
certain limited assistance, including the assumption of up to
US$2 million in liabilities in connection with the
reorganization of the company's remaining operations. In
addition, ALFA has agreed to provide credit enhancement to
support up to US$25 million of letters of credit in favor of
commercial counterparties to replace arrangements under the
company's senior credit facility.
The company also announced that approximately 82% of the
EUR240,000,000 aggregate principal amount of the company's
outstanding 11 3/8% Senior Notes due 2011 were validly delivered
in its previously announced solicitation, which expired on
March 8, 2007. Consequently, the company and the indenture
trustee executed a supplemental indenture, effective as of
March 15, 2007.
The Supplemental Indenture (i) permits the Nemak transaction on
the terms contained in the amended and restated agreements; and
(ii) implements the other terms that were agreed to with the
financial and legal advisors to the adhoc committee of
Noteholders. The Indenture amendments and terms of the consent
solicitation are described in the Consent Solicitation Statement
dated March 2, 2007.
As consideration for the initial sale of assets and operations
in North and South America being purchased, the company received
US$414 million in cash along with a 5.64% synthetic equity
interest in the Nemak business.
Pursuant to the revised terms of the Nemak transaction, the
company would be entitled to additional cash consideration and
additional synthetic equity interest in connection with
subsequent sales of certain of its remaining operations and
interests. There can be no assurance that these sales will
occur.
The proceeds from the initial sale were used in part to fund the
repayment of certain of the company's then outstanding debt,
including the senior secured credit facilities (both the first
lien revolver and the second lien facility) and required
repayments under capitalized leases. In addition, proceeds will
also be used to fund the anticipated tax payments as a result of
this transaction, and various other payments, including fees and
expenses, and to commence the tender offer required by the
Supplemental Indenture.
In parallel with the Nemak transaction, Teksid Aluminum has
continued to pursue alternatives with regard to its remaining
operations, principally located in France, Italy and Germany.
As previously reported, the company is in discussions with
potential purchasers of these operations. The consummation of a
transaction remains subject to a number of conditions, including
execution of a definitive agreement, regulatory approvals,
completion of satisfactory due diligence, and approval by the
board of directors of the company. There can be no assurance
that a definitive agreement with any party will be executed on
acceptable terms or at all. Additionally, even assuming
acceptable terms are reached, there can be no assurance that the
required conditions of such transactions would be met, including
any requirement to receive consent of the Noteholders.
Teksid Aluminum -- http://www.teksidaluminum.com/--
manufactures aluminum engine castings for the automotive
industry. Principal products include cylinder heads, engine
blocks, transmission housings, and suspension components. The
company operates 15 manufacturing facilities in Europe, North
America, South America, and Asia. The company maintains
operations in Italy, Brazil, and China.
Until Sept. 2002, Teksid Aluminum was a division of Teksid
S.p.A., which was owned by Fiat. Through a series of
transactions completed between Sept. 30, 2002 and Nov. 22, 2002,
Teksid S.p.A. sold its aluminum foundry business to a consortium
of investment funds led by equity investors that include
affiliates of each of Questor Management Company, LLC, JPMorgan
Partners, Private Equity Partners SGR SpA and AIG Global
Investment Corp. As a result of the sale, Teksid Aluminum is
now owned by its equity investors through TK Aluminum Ltd., a
Bermuda holding company.
* * *
On Jan. 16, Moody's Investors Service placed TK Aluminum
Ltd.'s long-term corporate family rating at Caa3.
TRW AUTO: To Issue US$1.1 Billion & EUR275 Million Senior Notes
---------------------------------------------------------------
TRW Automotive Holdings Corp., through its subsidiary TRW
Automotive Inc., has finalized the terms of its Senior Notes
offering.
The company will issue:
* US$500,000,000 in principal amount of 7% Senior Notes due
2014,
* EUR275,000,000 in principal amount of 6-3/8% Senior Notes
due 2014, and
* US$600,000,000 in principal amount of 7-1/4% Senior Notes
due 2017.
The company anticipates that consummation of the offering will
occur on March 26, 2007.
The company intends to use the proceeds from this offering to
consummate its tender offers and consent solicitations for its
outstanding US$825 million 9-3/8% Senior Notes due 2013, Euro
130 million 10-1/8% Senior Notes due 2013, US$195 million 11%
Senior Subordinated Notes due 2013 and its euro 81 million
11-3/4% Senior Subordinated Notes due 2013, as well as to pay
for related fees and expenses.
The Notes will be issued in a private placement and are expected
to be resold by the initial purchasers to qualified
institutional buyers in accordance with Rule 144A under the
Securities Act of 1933, as amended, and to non-U.S. persons
outside the United States pursuant to Regulation S under the
Securities Act. The offer of the Notes will be made only by
means of an offering memorandum to qualified investors and has
not been registered under the Securities Act, and the Notes may
not be offered or sold in the United States absent registration
under the Securities Act or an applicable exemption from the
registration requirements of the Securities Act.
About TRW
Headquartered in Livonia, Michigan, TRW Automotive Holdings
Corp. (NYSE:TRW) -- http://www.trwauto.com/-- is an automotive
supplier. Through its subsidiaries, the company employs
approximately 63,800 people in 26 countries including Brazil,
China, Germany and Italy. TRW Automotive products include
integrated vehicle control and driver assist systems, braking
systems, steering systems, suspension systems, occupant safety
systems (seat belts and airbags), electronics, engine
components, fastening systems and aftermarket replacement parts
and services.
* * *
Fitch Ratings affirmed TRW Automotive Holdings Corp.'s BB Issuer
Default Rating, BB+ Senior secured bank lines, BB- Senior
unsecured notes, and B+ Senior subordinated unsecured Notes on
September 2006.
===========================
C A Y M A N I S L A N D S
===========================
AUSTIN CAPITAL: Proofs of Claim Filing Ends on March 28
-------------------------------------------------------
Austin Capital All Seasons Offshore Fund II, Ltd.'s creditors
are given until March 28, 2007, to prove their claims to John
Cullinane and Derrie Boggess, 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.
Austin Capital's shareholder decided on Feb. 14, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Derrie Boggess
John Cullinane
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
BEAR STEARNS: Proofs of Claim Filing Deadline Is March 29
---------------------------------------------------------
Bear Stearns Multi-Strategy Offshore Fund, Ltd.'s creditors are
given until March 29, 2007, to prove their claims to Bear
Stearns Asset Management Inc., 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.
Bear Stearns' shareholder decided on Feb. 20, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Bear Stearns Asset Management Inc.
383 Madison Avenue
New York, New York 10179
USA
GGR HOLDINGS: Proofs of Claim Filing Is Until March 30
------------------------------------------------------
GGR Holdings, Ltd.'s creditors are given until March 30, 2007,
to prove their claims to John Cullinane and Derrie Boggess, 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.
GGR Holdings' shareholder decided on Dec. 21, 2006, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
87 Mary Street, George Town
Grand Cayman KY1 9002
Cayman Islands
Telephone: (345) 914-6305
LIBERTYVIEW GLOBAL: Proofs of Claim Filing Deadline Is March 30
---------------------------------------------------------------
Libertyview Global Volatility Fund, Ltd.'s creditors are given
until March 30, 2007, to prove their claims to John Cullinane
and Derrie Boggess, 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.
Libertyview Global's shareholder decided on Dec. 28, 2006, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
87 Mary Street, George Town
Grand Cayman KY1 9002
Cayman Islands
Telephone: (345) 914-6305
LOANINVEST LTD: Proofs of Claim Filing Ends on March 30
--------------------------------------------------------
Loaninvest, Ltd.'s creditors are given until March 30, 2007, to
prove their claims to John Cullinane and Derrie Boggess, 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.
Loaninvest's shareholder decided on Feb. 27, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
87 Mary Street, George Town
Grand Cayman KY1 9002
Cayman Islands
Telephone: (345) 914-6305
M & M ARBITRAGE: Proofs of Claim Filing Is Until March 28
---------------------------------------------------------
M & M Arbitrage Offshore, Ltd.'s creditors are given until
March 28, 2007, to prove their claims to M & M 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.
M & M Arbitrage's shareholder decided on Feb. 26, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
M & M Partners, LLC
Attention: Ian Gobin
Walkers
P.O. Box 265
George Town, Walker House
Mary Street, Grand Cayman
Cayman Islands
Telephone: (345) 814 4604
Fax: (345) 949 7886
RHJCF LTD: Proofs of Claim Filing Is Until March 30
---------------------------------------------------
RHJCF, Ltd.'s creditors are given until March 30, 2007, to prove
their claims to John Cullinane and Derrie Boggess, 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.
RHJCF's shareholders agreed on Dec. 21, 2006, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
87 Mary Street, George Town
Grand Cayman KY1 9002
Cayman Islands
Telephone: (345) 914-6305
SWIX CURRENCY: Proofs of Claim Filing Ends on March 29
------------------------------------------------------
Swix Currency Fund, Ltd.'s creditors are given until
March 29, 2007, to prove their claims to Marc Gilson, 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.
Swix Currency's shareholder decided on Feb. 20, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Marc Gilson
Attention: Ian Gobin
Caprinco Gestion S.A.
3, rue de la Croix d'Or
CH - 1204 Geneva
Switzerland
=========
C H I L E
=========
CONSTELLATION BRANDS: Closes SVEDKA US$384-Million Acquisition
--------------------------------------------------------------
Constellation Brands Inc. has closed the acquisition of the
SVEDKA Vodka brand and related business.
"We welcome SVEDKA to the Constellation Brands family and look
forward to the continued stellar growth of this unique premium
imported vodka brand," said Richard Sands, the company's
chairman and chief executive officer. "SVEDKA will play a key
role in expanding our premium spirits business by providing us
with a terrific and rapidly growing vodka brand in the largest
U.S. spirits category. Through continued marketing investment
in SVEDKA, we look to maximize the brand's long-term growth
potential and value."
SVEDKA, an 80 proof premium vodka produced in Sweden, was
launched in 1998 and it is now the fastest growing major
imported premium vodka in the United States. Approximately 1.1
million cases of SVEDKA were sold during calendar 2006,
predominantly in the U.S., a 60 percent increase over 2005 sales
volume.
Creator Guillaume Cuvelier will lead SVEDKA's New York-based
brand management team and maintain the independent spirit that
has successfully differentiated SVEDKA from the competition.
The brand marketing and sales team will retain their autonomy
with the SVEDKA_Grl(TM) campaign continuing to promote the
brand.
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Constellation Brands Inc. has reached an
agreement with Guillaume Cuvelier and Belgian-based Alcofinance
S.A., the owners of SVEDKA Vodka, to acquire the brand and
related business for US$384 million. The transaction, which
includes the acquisition of Spirits Marque One LLC.
About SVEDKA
SVEDKA is the fifth largest imported vodka with eight percent
market share in the imported vodka category according to
Information Resources, Inc. data. SVEDKA is 40 percent alcohol
by volume (80 proof) and is also available in four, 70 proof (35
percent alcohol by volume) flavor variations: Citron,
Clementine, Raspberry and Vanilla.
About Constellation Brands
Based in Fairport, New York, Constellation Brands, Inc.
(NYSE:STZ, ASX:CBR) -- http://www.cbrands.com/-- produces and
markets beverage alcohol brands with a broad portfolio across
the wine, spirits and imported beer categories. Well-known
brands in Constellation's portfolio include: Almaden, Arbor
Mist, Vendange, Woodbridge by Robert Mondavi, Hardys, Nobilo,
Kim Crawford, Alice White, Ruffino, Kumala, Robert Mondavi
Private Selection, Rex Goliath, Toasted Head, Blackstone,
Ravenswood, Estancia, Franciscan Oakville Estate, Inniskillin,
Jackson-Triggs, Simi, Robert Mondavi Winery, Stowells,
Blackthorn, Black Velvet, Mr. Boston, Fleischmann's, Paul Masson
Grande Amber Brandy, Chi-Chi's, 99 Schnapps, Ridgemont Reserve
1792, Effen Vodka, Corona Extra, Corona Light, Pacifico, Modelo
Especial, Negra Modelo, St. Pauli Girl, Tsingtao. One of
Constellation Brands wine and grape processing facilities is
located in Casablanca, Chile. The company also has operations
in Australia, Japan, and New Zealand.
* * *
As reported in the Troubled Company Reporter on March 5, Moody's
lowered the company's corporate family rating and probability of
default rating to Ba3 from Ba2 after the company reported a new
US$500 million share repurchase program. Moody's revised its
outlook to stable from negative.
Standard & Poor's Ratings Services lowered its ratings on
Constellation Brands, including its corporate credit and bank
loan ratings to 'BB-' from 'BB', with a stable outlook.
Fitch Ratings has downgraded Constellation Brands' issuer
default rating, bank credit facility, and senior unsecured notes
to 'BB-' from 'BB'.
PHELPS-DODGE: Freeport-Mcmoran Completes Acquisition
----------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. has completed its
acquisition of Phelps Dodge Corp. (NYSE: PD), creating the
world's largest publicly traded copper company.
In this US$26 billion transaction, Phelps Dodge shareholders
received US$88 in cash (US$18 billion in total) and 0.67 of a
share of Freeport-McMoRan's common stock (137 million shares in
total), equivalent to a value of US$128.68 per Phelps Dodge
share based on the closing price of Freeport-McMoRan's common
stock on March 16, 2007. Freeport-McMoRan currently has
approximately 334 million shares outstanding.
James R. Moffett, Chairman of the Board of Freeport-McMoRan,
said: "The new Freeport-McMoRan will benefit from a diverse
portfolio of proven assets, an attractive growth profile and an
exciting portfolio of exploration targets. We are highly
enthusiastic about the asset base created by this leading copper
producer."
Richard C. Adkerson, Freeport-McMoRan's Chief Executive Officer,
said: "We are pleased to combine the assets of two great
companies in the largest transaction in the history of the
metals and mining industry. These assets will deliver
significant copper volumes to an attractive market place,
providing substantial cash flows that will enable us to invest
in growth projects and reduce debt rapidly. We look forward to
the opportunities that this highly attractive transaction
provides our shareholders."
The new Freeport-McMoRan will be an international mining
industry leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
Management Team and Board Of Directors
James R. Moffett will continue as Chairman of Freeport-McMoRan
and Richard C. Adkerson will continue as Freeport-McMoRan's
Chief Executive Officer. Timothy R. Snider, previously
President and Chief Operating Officer at Phelps Dodge, has been
named President and Chief Operating Officer of Freeport-McMoRan.
Kathleen L. Quirk has been named Executive Vice President and
will continue as Chief Financial Officer and Treasurer of
Freeport-McMoRan. Michael J. Arnold has been named Executive
Vice President and will continue to serve as Freeport-McMoRan's
Chief Administrative Officer. Mark J. Johnson will continue as
Senior Vice President and Chief Operating Officer of Freeport-
McMoRan's Indonesian operations.
Freeport-McMoRan also announced today the election of three
former directors of Phelps Dodge Corporation to its Board of
Directors: General Charles C. Krulak, Jon C. Madonna and Dustan
E. McCoy.
J. Steven Whisler, Chairman and Chief Executive Officer of
Phelps Dodge will retire after more than 30 years of service to
the Phelps Dodge organization and Ramiro G. Peru, Chief
Financial Officer of Phelps Dodge, has elected to retire after a
27-year career with Phelps Dodge. These individuals should be
congratulated for their successful careers and valued
contributions to the Phelps Dodge organization.
Exchange Of Phelps Dodge Common Shares
Effective as of the close of trading today, Phelps Dodge's
common stock will no longer trade. Phelps Dodge's registered
shareholders will receive information from Mellon Investor
Services (1-800-279-1240) regarding the exchange of their Phelps
Dodge common shares. Phelps Dodge's shareholders holding
through a broker or bank should receive information regarding
the exchange of their Phelps Dodge common shares from the broker
or bank.
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
-- http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 6, 2007, Moody's Investors Service affirmed the B1 (LGD4,
63%) rating on Phelps Dodge's Cyprus Amax notes and on Phelps
Dodge's other existing senior unsecured notes.
Moody's also assigned a B2 (LGD5, 88%) senior unsecured rating
to Freeport-McMoRan Copper & Gold Inc.'s US$6 billion notes
issue. The notes will be unsecured and unguaranteed obligations
of Freeport-McMoRan. Moody's also affirmed Freeport's Ba3
corporate family rating and its other ratings:
-- the Baa3 (LGD1, 1.0%) senior secured rating on
Freeport-McMoRan's US$500 million secured revolver;
-- the Ba2 (LGD2, 29%) senior secured ratings on each of
Freeport-McMoRan's US$1 billion secured revolver, US$2.5
billion secured Term Loan A, and US$7.5 billion secured
Term Loan B; and
-- the Ba2 (LGD2, 29%) rating on Freeport-McMoRan's existing
6.875%, 10.125% and 7.20% senior unsecured notes.
PHELPS DODGE: Freeport-Mcmoran Elects Three Directors to Board
--------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. elected three former
directors of Phelps Dodge Corporation to its Board of Directors:
General Charles C. Krulak, Jon C. Madonna and Dustan E. McCoy.
General Charles C. Krulak, 64, is a retired U.S. Marine. The
35-year military career of Mr. Krulak culminated with his
serving as Commandant, the Marine Corps' highest-ranking
officer, from 1995 to 1999. After retiring from the military in
1999, Mr. Krulak joined MBNA Corporation, a leading
international financial services company. Until retiring from
MBNA in 2005, he served the company as Executive Vice-Chairman
and previously held the position of Chief Executive Officer of
MBNA Europe Bank Ltd. He holds a Bachelor of Science degree in
engineering from the U.S. Naval Academy and a Master of Science
degree in labor relations from George Washington University.
Mr. Krulak is a member of the Boards of Directors of
ConocoPhillips and Union Pacific Corp.
Jon C. Madonna, 63, is the retired Chairman and Chief Executive
Officer of KPMG. He holds a Bachelor of Science degree in
Accounting from the University of San Francisco. Mr. Madonna is
a director of AT&T, Tidewater Inc. and Visa U.S.A. Inc.
Dustan E. McCoy, 57, is Chairman and Chief Executive Officer of
Brunswick Corp., a leading manufacturer of recreational
products. Mr. McCoy joined Brunswick in 1999 and became
Chairman and Chief Executive Officer in December 2005. Before
joining Brunswick, he held senior positions with Witco Corp., a
chemical manufacturer. Mr. McCoy holds a Bachelor of Arts
degree in political science from Eastern Kentucky University and
a Juris Doctor degree from the Salmon P. Chase College of Law at
Northern Kentucky University. He also serves on the Board of
Directors of Louisiana-Pacific Corp.
"We are pleased to welcome Charles Krulak, Jon Madonna and Dusty
McCoy to the Freeport-McMoRan Board of Directors," said James R.
Moffett, Chairman of the Board, and Richard C. Adkerson, Chief
Executive Officer of Freeport-McMoRan. "We look forward to
their guidance and counsel as we combine the businesses of
Phelps Dodge and FCX."
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
-- http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 6, 2007, Moody's Investors Service affirmed the B1 (LGD4,
63%) rating on Phelps Dodge's Cyprus Amax notes and on Phelps
Dodge's other existing senior unsecured notes.
Moody's also assigned a B2 (LGD5, 88%) senior unsecured rating
to Freeport-McMoRan Copper & Gold Inc.'s US$6 billion notes
issue. The notes will be unsecured and unguaranteed obligations
of Freeport-McMoRan. Moody's also affirmed Freeport's Ba3
corporate family rating and its other ratings:
-- the Baa3 (LGD1, 1.0%) senior secured rating on
Freeport-McMoRan's US$500 million secured revolver;
-- the Ba2 (LGD2, 29%) senior secured ratings on each of
Freeport-McMoRan's US$1 billion secured revolver, US$2.5
billion secured Term Loan A, and US$7.5 billion secured
Term Loan B; and
-- the Ba2 (LGD2, 29%) rating on Freeport-McMoRan's existing
6.875%, 10.125% and 7.20% senior unsecured notes.
FREEPORT-MCMORAN: Launches Public Offering of 35 Million Shares
---------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. has commenced a public
offering of approximately 35 million shares of common stock.
The underwriters have an option to purchase from the company up
to an additional 5.25 million common shares to cover
overallotments, if any.
Freeport-McMoRan also has concurrently commenced a public
offering of 10 million shares of mandatory convertible preferred
stock for US$100.00 per share. The underwriters have an option
to purchase from the company up to an additional 1.5 million
mandatory convertible preferred shares to cover overallotments,
if any.
Freeport-McMoRan intends to use the net proceeds from these
offerings to repay indebtedness incurred in connection with the
acquisition of Phelps Dodge Corp.
The joint book-running managers for these offerings are Merrill
Lynch & Co. and JPMorgan.
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
-- http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
* * *
Moody's assigned a B2 (LGD5, 88%) senior unsecured rating
to Freeport-McMoRan Copper & Gold Inc.'s US$6 billion notes
issue. The notes will be unsecured and unguaranteed obligations
of Freeport-McMoRan. Moody's also affirmed Freeport's Ba3
corporate family rating and its other ratings:
-- the Baa3 (LGD1, 1.0%) senior secured rating on
Freeport-McMoRan's US$500 million secured revolver;
-- the Ba2 (LGD2, 29%) senior secured ratings on each of
Freeport-McMoRan's US$1 billion secured revolver, US$2.5
billion secured Term Loan A, and US$7.5 billion secured
Term Loan B; and
-- the Ba2 (LGD2, 29%) rating on Freeport-McMoRan's existing
6.875%, 10.125% and 7.20% senior unsecured notes.
SHAW GROUP: Hires KPMG LLP as Accountants
-----------------------------------------
The Shaw Group Inc. reported that on March 19, 2007, it engaged
KPMG LLP to serve as its independent registered public
accounting firm for the fiscal year ending August 31, 2007, and
to perform procedures related to the financial statements
included in the company's quarterly reports on Form 10-Q, which
are expected to commence with, and include, the quarter ending
May 31, 2007, unless the services of KPMG are requested in
connection with the Company's quarterly report on Form 10-Q for
the quarter ended Feb. 28, 2007.
The Audit Committee of the Board of Directors of the company
made the decision to recommend KPMG to the full Board of
Directors, which adopted and approved that decision.
During the Company's two most recent fiscal years ended
Aug. 31, 2006, and Aug. 31, 2005, and during any subsequent
interim period prior to the date of the engagement of KPMG, as
the company's independent registered public accounting firm,
neither the company nor anyone acting on its behalf consulted
with KPMG regarding (i) either: the application of accounting
principles to a specific transaction, either completed or
proposed; or the type of audit opinion that might be rendered on
the Company's financial statements, and neither a written report
was provided to the Company or oral advice was provided that
KPMG concluded was an important factor considered by the Company
in reaching a decision as to the accounting, auditing or
financial reporting issue; or (ii) any matter that was either
the subject of a disagreement (as defined in Item 304(a)(1)(iv)
of Regulation S-K and the related instructions) or a reportable
event (as described in Item 304(a)(1)(v) of Regulation S-K).
Headquartered in Baton Rouge, LA, The Shaw Group Inc.
(NYSE: SGR) -- http://www.shawgrp.com/-- is a global provider
of services to the environmental, infrastructure and homeland
security markets, including consulting, engineering,
construction, remediation and facilities management services to
governmental and commercial customers. It is also a vertically
integrated provider of engineering, procurement, pipe
fabrication, construction and maintenance services to the power
and process industries. The company segregates its business
activities into four operating segments: Environmental &
Infrastructure (E&I); Energy & Chemicals (E&C); Maintenance, and
Fabrication, Manufacturing & Distribution (F&M). In January
2005, the company sold substantially all of the assets of its
Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.
The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.
SHAW GROUP: Obtains Second Waiver from Lenders
----------------------------------------------
The Shaw Group Inc., disclosed in a regulatory filing with the
U.S. Securities and Exchange Commission that it entered into a
Waiver dated March 19, 2007, with respect to a certain Credit
Agreement dated April 25, 2005, as amended, among:
* the company, as borrower;
* BNP Paribas, as administrative agent;
* BNP Paribas Securities Corp., as joint lead arranger and
sole bookrunner;
* Bank of Montreal, as joint lead arranger;
* Credit Suisse First Boston, acting through its Cayman
Islands branch, as co-syndication agent;
* UBS Securities LLC, as co-syndication agent;
* Regions Bank as co-documentation agent;
* Merrill Lynch Pierce, Fenner & Smith, Incorporated, as
co-documentation agent;
* the guarantors signatory; and
* other lenders signatory.
The company had previously said that due to the significance of
the Westinghouse acquisition to its financial statements, the
company was required to file a Current Report on Form 8-K with
the SEC by Jan. 3, 2007, including the audited financial
statements of Westinghouse for the fiscal years ended
March 31, 2006, and 2005.
As a subsidiary of BNFL, Westinghouse maintained its accounting
records under UK generally accepted accounting principles.
Further, it did not obtain a separate audit of Westinghouse
results for the periods as required by Form 8-K.
These factors caused delays in obtaining the information and
reports needed to timely file with the SEC. Due to delays in
receiving the required Westinghouse audited financial
statements, Shaw has not filed an amendment and supplement to
Item 9.01 of its Current Report on Form 8-K initially filed on
Oct. 18, 2006, to include the historical financial statements of
Westinghouse, and the unaudited pro forma financial information
required pursuant to Article 11 of Regulation S-X of the
Securities Act of 1933, as amended.
The company relates that it encountered difficulties in
completing the conversion of UK GAAP to US GAAP, and because the
company would have been in violation of certain debt covenants
under the Amended Credit Agreement if it failed to comply with
Westinghouse Filing Requirement by Jan. 18, 2007, the company
obtained a waiver to the Amended Credit Agreement, which waived
compliance, for a 60 day period commencing on Jan. 18, 2007, and
ending on March 20, 2007, by the company with any covenant in
the Amended Credit Agreement solely to the extent that such
covenant would be breached as a result of the company's failure
to comply with the Westinghouse Filing Requirement, and waived
the requirement that the company make any representation or
warranty in the Amended Credit Agreement solely to the extent
that such representation or warranty would be false as a result
of the company's failure to comply with the Westinghouse Filing
Requirement.
Though the company has made significant progress toward
completing the conversion of UK GAAP to US GAAP, it continues to
encounter difficulties and needs additional time to comply with
the Westinghouse Filing Requirement.
Accordingly, the company has obtained a second waiver to the
Amended Credit Agreement, which waives compliance, for an
additional 90 day period commencing on March 19, 2007, by the
Company with any covenant in the Amended Credit Agreement solely
to the extent that such covenant would be breached as a result
of the Company's failure to comply with the Westinghouse Filing
Requirement, and waives the requirement that the Company make
any representation or warranty in the Amended Credit Agreement
solely to the extent that such representation or warranty would
be false as a result of the Company's failure to comply with the
Westinghouse Filing Requirement.
The Second Westinghouse Waiver became effective on
March 19, 2007, upon execution by the Company and by the Agent
pursuant to authority granted by the Required Lenders; provided
that, the Waiver shall cease to be in effect if (but only if)
the company fails to comply with the Westinghouse Filing
Requirement within 90 days after the date of the Waiver which is
March 19, 2007.
The company is making every effort to comply with the
Westinghouse Filing Requirement within this additional 90-day
period.
A full-text copy of the Second Westinghouse Waiver is available
for free at http://ResearchArchives.com/t/s?1bbe
Headquartered in Baton Rouge, LA, The Shaw Group Inc.
(NYSE: SGR) -- http://www.shawgrp.com/-- is a global provider
of services to the environmental, infrastructure and homeland
security markets, including consulting, engineering,
construction, remediation and facilities management services to
governmental and commercial customers. It is also a vertically
integrated provider of engineering, procurement, pipe
fabrication, construction and maintenance services to the power
and process industries. The company segregates its business
activities into four operating segments: Environmental &
Infrastructure (E&I); Energy & Chemicals (E&C); Maintenance, and
Fabrication, Manufacturing & Distribution (F&M). In January
2005, the company sold substantially all of the assets of its
Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.
The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.
===============
C O L O M B I A
===============
ECOPETROL: Will Invest US$800 Mil. in Magdalena Medio Projects
--------------------------------------------------------------
Colombian state-run oil firm Ecopetrol will invest US$800
million in production and refining projects in the Magdalena
Medio region this year, state news agency SNE reports.
Business News Americas relates that Ecopetrol wants to invest
US$396 million to expand output, including the drilling of 294
wells. The firm also aims to invest US$233 million for works on
the Barrancabermeja plant.
According to BNamericas, refinery works will include a project
to develop a hydro-treatment plant, which will cost about US$420
million through 2010. The project will lessen sulfur levels.
It is part of Ecopetrol's strategy to improve fuel quality.
Ecopetrol will invest over US$23 million to develop a biodiesel
plant, which will start running in the first quarter 2008, in
association with palm oil producers in central Colombia,
BNamericas states.
Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government. The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products. Ecopetrol is Latin America's
fourth-largest integrated-oil concern. Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.
On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol SA to Positive from Stable. This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia. Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.
ECOPETROL: Will Start Selling 20% of Shares on Aug. 27
------------------------------------------------------
An official of Colombia's state-owned oil firm Ecopetrol told
Business News Americas that the company will start selling up to
20% of its shares on Aug. 27.
As reported in the Troubled Company Reporter-Latin America on
March 16, 2007, Colombian Mines and Energy Minister Hernan
Martinez said that the government would start selling
Ecopetrol's shares on Aug. 23. Minister Martinez had told
reporters that the process was running very well at an
accelerated pace.
However, a public affairs official said in an E-mail sent to
BNamericas, "The minister of mines assured us yesterday [March
15] the schedule for the Ecopetrol [sale] shows the first
tranche will start on Aug. 27 not Aug. 23."
BNamericas relates that Ecopetrol previously promised to
schedule the sale at some point during the third quarter.
According to BNamericas, the first "tranche" was set aside for
the "solidarity" sector of the economy:
-- current and former Ecopetrol workers,
-- beneficiaries,
-- pension funds, and
-- cooperatives.
BNamericas underscores that Ecopetrol hired US law firm Shearman
& Sterling to advise the firm on the sales process. Ecopetrol
will still select the investment bank that will conduct the
sales' financial engineering.
Ecopetrol will use the proceeds from the sale to finance
expansion plans, which focus on exploration and production
expansion, plant upgrades and the fostering of growth in the
ethanol and biofuels field, BNamericas states.
Shearman & Sterling can be reached at:
599 Lexington Avenue
New York, New York 10022
USA
Phone: +1 212 848 4000
Fax: +1 212 848 7179
Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government. The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products. Ecopetrol is Latin America's
fourth-largest integrated-oil concern. Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.
On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol SA to Positive from Stable. This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia. Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.
===================================
D O M I N I C A N R E P U B L I C
===================================
AES DOMINICANA: S&P Affirms B- Rating on US$160MM Senior Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on AES
Dominicana Energia Finance S.A.'s US$160 million senior notes.
At the same time, the 'B-' long-term rating on AES Dominicana's
notes was affirmed.
The outlook revision reflects the uncertainties that the
operational strengthening of the country's distribution electric
system and the sector's medium-term development plan will be
achieved on time. In Standard & Poor's opinion, the government
of the Dominican Republic's recent proposal to renegotiate the
existing long-term energy sales contracts with the power
generators anticipates that the distribution companies will
continue to generate inadequate cash flows to meet their
contractual obligations, and that the government's sizable
subsidy for the sector is unsustainable in the long run.
"The stable outlook reflects our expectations that even under
the electric sector's expected reforms in the Dominican
Republic, including the government's renegotiation of the long-
term energy sales contracts, AES Dominicana will continue to
post satisfactory financial indicators and generate adequate
cash flows to continue fulfilling its debt service obligations,"
Standard & Poor's credit analyst Luis Martinez said. "However,
an unfavorable renegotiation of the energy sales contracts that
significantly erodes the company's operating margins and reduces
cash flow generation, or increased offtaker risk coupled with
the failure by the government to continue to support the
sector's development, could result in a negative rating action."
AES Dominicana is an energy group operating in the Dominican
Republic, which manages two of AES Corp.'s wholly owned
generation assets, Andres and Dominican Power. AES Dominicana,
through an AES Corp subsidiary, also has a management agreement
to operate EDE-Este, one of the three distribution companies in
the country. Andres is a power plant with a 304-megawatt
combined cycle generation facility with duel fuel capability
(gas and diesel) but with natural gas supplied through the
liquefied natural gas import facility serving as the primary
fuel while DPP is a 236-megawatt power plant comprising two
simple-cycle combustion turbines that can burn both natural gas
and fuel oil Number 2. Both plants together have PPA contracts
with EDE-Este for 260 megawatts that increase over time, but
Andres is currently servicing all contracts given its greater
efficiency. Andres LNG terminal includes a large tanker berth
and jetty, an LNG refueling pier, and a one million barrel
(160,000 cubic meters) LNG storage tank, as well as
regasification and handling facilities for both LNG and diesel.
BANCO INTERCONTINENTAL: Ramon Baez Figueroa Sues Scotiabank
-----------------------------------------------------------
Ramon Baez Figueroa, the indicted former Banco Intercontinental
head, has filed a DOP30-billion lawsuit against the Scotiabank,
along with former Central Bank governor Jose Lois Malkun and the
former Liquidation Commission members, Dominican Today reports.
Dominican Today relates that Mr. Figueroa filed the suit,
seeking to get the money to enter Banco Intercontinental's
liquidation funds.
According to Dominican Today, Mr. Figueroa's legal
representatives served notice to:
-- the Central Bank,
-- the Banks Superintendence,
-- the Banco Intercontinental Liquidation Commission, and
-- the Scotiabank.
Dominican Today underscores that Mr. Figueroa included these
persons in his complaint:
-- Keryma Marra Martinez, who worked in the Central
Bank's legal consultancy;
-- the members of the Liquidation Commission:
* Luis Maria Catano Tavarez, and
* Cesar A.J. Gomez Diaz;
-- former Banks Superintendent Julio Cross; and
-- Scotiabank senior executives:
* Peter C. Godsoe,
* Peter Cardinal, and
* Tim Hyward.
Dominican Today emphasizes that Scotiabank has been operating in
the Dominican Republic since 1920. It acquired Banco
Intercontinetal's assets and portfolios in 2003, in an operation
carried out during Mr. Malkun's term, questioned at that time by
Marino Vinicio Castillo, Mr. Figueroa's head attorney.
Mr. Figueroa told Dominican Today that Scotiabank purchased
Banco Intercontinental's 22 branches for a meager amount of
DOP656.8 million. By the additional sum of DOP28.7 million, it
also included the transference of the Banco Intercontinental's:
-- tellers property,
-- office equipment,
-- vaults,
-- deposit boxes,
-- mobile telephones,
-- security systems and equipment,
-- generators, and
-- furnishings in general.
Mr. Figueroa alleged that the appraisal of those assets was made
without referential values by the Program of Administration,
Realization and Management of Assets, Dominican Today says. He
said that the evaluation the branch mentioned wasn't authorized
by the Monetary Meeting and was based exclusively in the real
estate valuation without taking into consideration the
intangible value to the best and more beneficial use from the
facilities.
BDO Ortega & Asociados' audit report on Banco Intercontinental's
liquidation process states, "The percentage of discounts of the
portfolio of loans sold to the Scotiabank ranges from 20% to 60%
depending on the risk classification on the same."
The Liquidation Commission refused to demonstrate to the auditor
the procedures and criteria used for the suitable classification
of selected debtors for the sale of the loans portfolio,
Dominican Today says, citing BDO Ortega.
Mr. Figueroa's lawyers told Dominican Today that the Scotiabank
illicitly became rich as the result of those negotiations in
detriment of Mr. Figueroa and the Dominican State.
Dominican Today says that Mr. Figueroa also accused the 2003
monetary authorities of launching a campaign of rumors that
placed the banking organization in difficulties.
Mr. Figueroa's lawyers claimed that in the process of
intervention and subsequent liquidation the authorities didn't
strictly observe the monetary law or the regulations related to
the matter, according to Dominican Today.
The Dominican Monetary and Financial Authority told Dominican
Today that Banco Intercontinental's collapse in 2003 left a
financial void of over US$2 billion.
Meanwhile, technical information indicated that Banco
Intercontinental's collapse generated a total of US$2.24 billion
losses, Dominican Today states.
Marino Vinicio Castillo can be reached at:
Fuerza Nacional Progresista
Presidente
Consejo Nacional de Drogas
Oficinas Gubernamentales, Bloque C
Avenida Mexico esq. 30 de Marzo
Tel. 809-2221-4747
809-221-5166
Email: of.pcastillo@codetel.net.do
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.
CENTENNIAL COMM: Sale Brings in US$6 Million to Dominican Gov't
---------------------------------------------------------------
The sale of Centennial Communications Corp.'s unit, All America
Cables and Radio Inc., to Trilogy International Partners has
brought in US$6 million tax payment to the Dominican Republic,
Dominican Today reports.
As reported in the Troubled Company Reporter-Latin America on
March 15, 2007, Centennial Communications completed the sale of
All America and Radio to Trilogy International for approximately
US$80 million in cash. Waller Capital Corporation, a
telecommunications-focused investment bank, served as exclusive
financial advisor to Centennial on the transaction. Trilogy
International's exclusive financial adviser was Deutsche Bank
Securities, Inc.
Dominican Today relates that the Dominican Telecom Institute
ratified the sale.
"The payment of the tax for the sale of Dominican Centennial was
conducted with fiscal control and the costs of constituting the
regularization of the company to operate," The Dominican
Internal Taxes Agency Assistant Director Roberto Rodriguez told
Dominican Today.
Mr. Rodriguez explained to Dominican Today that Dominican
Centennial is the operational name of All America.
Dominican Centennial paid the taxes in compliance with the
Dominican Tax Law and to hand over a clean slate to the new
shareholders. Sometimes, the payment of taxes for the sale of
firms is for its capital gains, but in the case of Dominican
Centennial it's about a "fiscalization" being conduced in that
firm, Dominican Today states, citing Mr. Rodriguez.
Headquartered in Wall, New Jersey, Centennial Communications
Corp. (NASDAQ: CYCL) -- http://www.centennialwireless.com/--
provides regional wireless and integrated communications
services in the United States and the Puerto Rico with
approximately 1.1 million wireless subscribers and 387,500
access lines and equivalents. The US business owns and operates
wireless networks in the Midwest and Southeast covering parts of
six states. Centennial's Puerto Rico business owns and operates
wireless networks in Puerto Rico and the U.S. Virgin Islands and
provides facilities-based integrated voice, data and Internet
solutions. Welsh, Carson, Anderson & Stowe and an affiliate of
the Blackstone Group are controlling shareholders of Centennial.
* * *
As reported in the Troubled Company Reporter on July 3, 2006,
Fitch assigned Centennial Communications Corp.'s issuer default
rating at 'B-' and senior unsecured notes rating at 'CCC/RR6'.
Fitch said the rating outlook is stable.
EMPRESA GENERADORA: S&P Revises B Rating's Outlook to Positive
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Empresa Generadora de Electricidad Itabo SA's or Itabo's long-
term 'B' corporate credit rating to stable from positive. At
the same time, Standard & Poor's affirmed the 'B' long-term
rating on Itabo and on Itabo Finance SA's US$125 million bonds.
The outlook revision reflects the uncertainties that the
operational strengthening of the country's distribution electric
system and the sector's medium-term development plan will be
achieved on time. In Standard & Poor's opinion, the Government
of the Dominican Republic's recent proposal to renegotiate the
existing long-term energy sales contracts with the power
generators anticipates that the distribution companies will
continue to generate inadequate cash flows to meet their
contractual obligations, and that the government's sizable
subsidy for the sector is unsustainable in the long run.
"The stable outlook reflects our expectations that even under
the electric sector's expected reforms in the Dominican
Republic, including the government's renegotiation of the long-
term energy sales contracts, Itabo will continue to post
satisfactory financial indicators and generate adequate cash
flows to continue fulfilling its debt service obligations,"
Standard & Poor's credit analyst Luis Martinez stated.
"However, an unfavorable renegotiation of the energy sales
contracts that significantly deteriorates the company's
operating margins and reduces cash flow generation, or increased
offtaker risk coupled with the failure by the government to
continue to support the sector's development, could result in a
negative rating action."
Itabo is a thermo-electric generator in the Dominican Republic
and the second largest generation plant in the country. The
company has a total installed capacity of 472 megawatts of
thermo-electric generation. The company is currently owned 50%
by AES Corp.'s subsidiaries and 49.97% by the Dominican Republic
government. The balance is owned by former employees of CDE
(Corporacion Dominicana de Electricidad). As previously noted,
AES Dominicana manages the company under a management contract,
for a fee of 2.95% of Itabo's sales, while AES Corp. indirectly
controls Itabo's management board.
* DOMINICAN REPUBLIC: Gets US$6M in Taxes from Centennial Sale
--------------------------------------------------------------
The Dominican Republic has received US$6 million in tax payment
for the sale of Centennial Communications Corp.'s unit, All
America Cables and Radio Inc., to Trilogy International
Partners, Dominican Today reports.
As reported in the Troubled Company Reporter-Latin America on
March 15, 2007, Centennial Communications completed the sale of
All America and Radio to Trilogy International for approximately
US$80 million in cash. Waller Capital Corporation, a
telecommunications-focused investment bank, served as exclusive
financial advisor to Centennial on the transaction. Trilogy
International's exclusive financial adviser was Deutsche Bank
Securities, Inc.
Dominican Today relates that the Dominican Telecom Institute
ratified the sale.
"The payment of the tax for the sale of Dominican Centennial was
conducted with fiscal control and the costs of constituting the
regularization of the company to operate," The Dominican
Internal Taxes Agency Assistant Director Roberto Rodriguez told
Dominican Today.
Mr. Rodriguez explained to Dominican Today that Dominican
Centennial is the operational name of All America.
Dominican Centennial paid the taxes in compliance with the
Dominican Tax Law and to hand over a clean slate to the new
shareholders. Sometimes, the payment of taxes for the sale of
firms is for its capital gains, but in the case of Dominican
Centennial it's about a "fiscalization" being conduced in that
firm, Dominican Today states, citing Mr. Rodriguez.
About Centennial Communications
Headquartered in Wall, New Jersey, Centennial Communications
Corp. (NASDAQ: CYCL) -- http://www.centennialwireless.com/--
provides regional wireless and integrated communications
services in the United States and the Puerto Rico with
approximately 1.1 million wireless subscribers and 387,500
access lines and equivalents. The US business owns and operates
wireless networks in the Midwest and Southeast covering parts of
six states. Centennial's Puerto Rico business owns and operates
wireless networks in Puerto Rico and the U.S. Virgin Islands and
provides facilities-based integrated voice, data and Internet
solutions. Welsh, Carson, Anderson & Stowe and an affiliate of
the Blackstone Group are controlling shareholders of Centennial.
* * *
The Troubled Company Reporter-Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
* DOMINICAN REPUBLIC: International Firms Sue Government
--------------------------------------------------------
DR1 Newsletter reports that a group of international companies
has filed a lawsuit against the government of the Dominican
Republic, the Corporacion Dominicana de Empresas Electricas
Estatales and some government officials in the International
Court of Arbitration at the United Nations in New York City.
The report says that the lawsuit was filed against:
-- Dominican President Leonel Fernandez;
-- Cesar Pina Toribio, the president's legal advisor;
-- Electricity Superintendent Francisco Mendez;
-- Foreign Trade Director Vilma Arbaje;
-- National Energy Commission President Aristides
Fernandez Zucco;
-- Dominican ambassador in Washington Flavio Dario
Espinal; and
-- Dominican ambassador in Paris Guillermo Pina
Contreras.
DR1 Newsletter underscores that these are the complainants:
-- Trust Capital of the West,
-- AES Corp., and
-- Societe Generales, the alleged new owner of 50% of
AES Corp.
According to DR1 Newsletter, the complainants sought between
US$535 million and US$680 million in damages due to a loss of
cash flow or from a reduction of capital.
The situation is very delicate and the details very complicated,
Listin Diario states, citing CDEEE Vice-President Radhames
Segura.
* * *
The Troubled Company Reporter-Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
=============
E C U A D O R
=============
BANCO DEL PICHINCHA: Expanding Through Diversified Growth Plan
--------------------------------------------------------------
Banco del Pichincha Chief Executive Officer Fernando Pozo told
Business News Americas that the bank is betting on a diversified
growth strategy to continue expanding in 2007.
Mr. Pozo commented to BNamericas, "Part of our success is
explained by the firm's growth strategy in expanding in a
diversified manner, in different segments, products and
locations. We follow national economic trends and explore new
business lines."
According to BNamericas, Banco del Pichincha eyes potential for
growth in consumer loans, which represented 29% of its loan book
at the end of 2006.
Mr. Pozo told BNamericas, "Consumer loans has been one of the
most dynamic segments, which has been supported by stable
economic conditions and remittance flows from overseas
immigrants."
BNamericas underscores that Banco del Pichincha's consumer loans
increased 56% to US$518 million in 2006, compared to 2005. its
was above the industry average of 26%.
The report says that Banco del Pichincha also sees growth
potential among the "unbanked" segments, small and medium-sized
enterprises and microenterprises.
Mr. Pozo told BNamericas, "In Ecuador, banking penetration is
relatively low and one way to reverse this is providing
financing to SMEs [small and medium-sized enterprises] and
microenterprises. These segments can be highly profitable if
they are served with adequate technologies."
Banco del Pichincha's microloans represented 8% of its book at
the end of 2006, according to the report.
Mr. Pozo said that there is a lot of potential for growth by
giving access to banking services to informal sector workers,
BNamericas notes. He also said that Banco del Pichincha sees
business opportunities in the corporate market, including
funding for hydroelectric and mining activities.
As of Dec. 31, 2006, Banco Pichincha reported US$2.94 billion
assets and US$345 million equity, BNamericas states, citing Mr.
Pozo.
Banco del Pichincha is Ecuador''s largest private bank. At the
end of the first half (2006), Banco del Pichincha ranked first
in the local financial system with an asset market share of 24%.
The bank's parent is financial group Grupo Financiero Banco del
Pichincha, Ecuador's largest financial group, with assets of
US$3.71bn at end-June. Banco del Pichincha was founded in 1906
and has 227 branches in about 80 cities and 416 ATMs.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 16, 2007, Fitch Ratings affirmed Banco del Pichincha's
long-term and short-term Issuer Default Ratings as:
-- Foreign currency long-term IDR at 'B-';
-- Foreign currency short-term rating at 'B'; and
-- Support rating at '5'.
Fitch said the rating outlook is negative.
PETROECUADOR: Awards Three Crude Supply Contracts
-------------------------------------------------
Ecuadorian state-owned oil firm Petroecuador said in a statement
that it has awarded three of the five 360,000-barrel crude
supply shipments, after receiving bids on March 15.
Business News Americas relates that Petroecuador awarded the
first two crude shipments to Swiss oil trader Taurus Petroleum,
which offered a US$13.19 differential. The third shipment was
given to British oil trader Mocoh Energy, which offered a
US$13.64 differential.
The two shipments scheduled for May were declared void by the
administrative council, in the hopes of receiving better prices
in a new tender, according to BNamericas.
Ecopetrol has launched a tender for the remaining two shipment
contracts and will receive bids through March 22, BNamericas
states.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
PETROECUADOR: In Talks with Venezuela to Develop Oil Fields
-----------------------------------------------------------
State-owned firms PetroEcuador and Petroleos de Venezuela S.A.
are in talks to develop oil fields.
"We have had preliminary conversations; there's nothing concrete
yet, but we are seeking an alliance for the Ishpingo-Tambococha-
Tiputini oil area on the Ecuadorean side and for the Orinoco
band on the Venezuelan side," Carlos Pareja was quoted by Dow
Jones Newswires as saying.
Ecuadorean Energy Minister Alberto Acosta, and his Venezuelan
counterpart, Rafael Ramirez, will decide on the alliance, Dow
Jones says.
The oil field development plan is an offshoot of an energy
cooperation agreement inked May 2006 by former Ecuador President
Alfredo Palacio and his Venezuelan counterpart, Hugo Chavez.
A person familiar with the matter told Dow Jones a joint venture
could be established by the two state-oil firms that would lead
to the building of a refinery in Ecuador.
The previous Ecuadorian administation has put underway talks on
construction a refinery in the nation. MarketWatch says the new
government has made the plans more ambitious by inviting seven
Latin American state oil firms to jointly build a refinery in
Manabi, with a capacity to process 320,000 barrels of heavy
crude per day.
Ecuador, Dow Jones says, has long been looking for funding to
develop the Ishpingo-Tambococha-Tiputini oil area. Once the
field is developed, the nation's oil output would sharply
increase by 180,000 barrels per day. The oil field has proven
reserves of 900 million barrels.
About Petroleos de Venezuela
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.
About PetroEcuador
PetroEcuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in PetroEcuador's dealings.
=====================
E L S A L V A D O R
=====================
AES CORP: Restatements Result to Default Under Debt Facilities
--------------------------------------------------------------
AES Corporation reported that as of March 16, 2007, it is in
default under its senior bank credit facility due to the need to
restate prior period financial statements. In addition, the
senior bank credit facility contains a cross-default provision
that provides that if a condition exists that, with the giving
of notice or lapse of time or both, would enable the holders of
indebtedness in amounts in excess of US$50 million to accelerate
of maturity thereof, including the senior notes and junior
subordinated notes referred to below, would constitute an event
of default under the senior bank credit facility. As a result,
US$200 million of the debt under the company's senior bank
credit facility will be classified as current on the balance
sheet as of Dec. 31, 2006. The company will seek a waiver of
this default from its senior secured facility lenders. The
company may not borrow additional funds under the revolving
credit facility until obtaining this waiver.
As of March 16, 2007, the company is in default under its US$600
million senior unsecured credit facility agreement due to the
need to restate prior period financial statements. As a result,
the company will seek a waiver of this default from its senior
unsecured credit facility lenders. The company may not borrow
additional funds under the credit facility. The current draw on
this facility is approximately US$100 million.
Since the it did not timely deliver its Form 10-K for the year
ended Dec. 31, 2006, to the trustee, the company was not in
compliance with its indentures governing its senior notes and
junior subordinated notes, but that non-compliance does not
result in an automatic event of default or the acceleration of
the notes. However, the trustee under any of the indentures or
the holders of at least 25% of the outstanding principal amount
of any series of such notes has the right to accelerate the
maturity of that series of notes, if the company fails to file
and deliver its 2006 Form 10-K within 60 days after written
notice of such default, unless holders of a majority of each
such series of the notes waive compliance with the filing and
delivery requirement.
All of the indentures governing the notes and the senior
unsecured credit facility provide that an event of default
occurs thereunder when an event of default occurs under any
other indebtedness of the company in excess of US$50 million and
as a result of such default, the maturity of such debt has been
accelerated and such acceleration has not been annulled within
60 days.
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.
=================
G U A T E M A L A
=================
* GUATEMALA: IDB Okays US$400,000 Funding for Plant Study
---------------------------------------------------------
Business News Americas reports that the Inter-American
Development Bank has authorized US$400,000 funding from its
InfraFund for feasibility studies to help develop small and
medium-sized Guatemalan hydroelectric plants.
IDB said in a statement that Guatemalan state power firm Inde
will use the financing to prepare projects and to promote
private sector participation as well as public-private
partnerships. Specifically, Inde will use the resources to hire
consultants to conduct feasibility studies on projects selected
from an existing shortlist.
According to BNamericas, studies will include:
-- project analysis and site visits;
-- topography, hydrology, geology, geotechnical
factors and seismic risk;
-- preliminary social and environmental assessments;
-- preliminary hydraulic designs; and
-- cost-benefit, economic and financial analyses.
* * *
Fitch Ratings assigned these ratings on Guatemala:
Rating Rating Date
------ -----------
Country Ceiling BB+ Feb. 22, 2006
Long Term IDR BB+ Feb. 22, 2006
Short Term IDR B Feb. 22, 2006
Local Currency
Long Term Issuer
Default Rating BB+ Feb. 22, 2006
Fitch also rated Guatemala's senior unsecured bonds:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
Aug. 3, 2007 US$150,000,000 8.5% BB+
Nov. 8, 2011 US$325,000,000 10.25% BB+
Aug. 1, 2013 US$300,000,000 9.25% BB+
Oct. 6, 2034 US$330,000,000 8.125% BB+
* GUATEMALA: Railroad Development Will Sue Government
-----------------------------------------------------
US company Railroad Development Corporation said in a statement
the it has filed a notice of intent for legal proceedings
against the Guatemalan government on behalf of Ferrovias de
Guatemala, its local affiliate.
Guatemalan daily Prensa Libre relates that Railroad Development
is seeking US$65 million in damages. About US$15 million of the
amount is for investments already made, while US$50 million is
for projected returns from its operation.
Guatemalan paper Prensa Libre reported.
According to Business News Americas, Railroad Development
claimed that the "government's decision in August 2006 to deem
the company's 50-year operation and maintenance contract as
damaging amounted to an indirect expropriation of the company's
property."
Railroad Development said in a statement that because of the
government's actions, Ferrovias de Guatemala has suffered
increased losses due to:
-- inability to obtain credit,
-- reluctance of freight transportation customers to
do business with a private entity under attack by
the government of Guatemala, and
-- inability to generate lease revenue from railway-
related businesses.
Ferrovias de Guatemala Director Jorge Senn told Prensa Libre
that the government failed to fulfill its contractual
obligations to remove obstacles from the railway line, making it
impossible for the company to use various sections.
Railroad Development Chairperson Henry Posner III said in a
statement that the firm believes that such actions were taken in
favor of private Guatemalan companies interested in assets
contained in the concession, which was awarded to Ferrovias de
Guatemala in 1997.
Guatemalan lawyer Juan Pablo Carrasco commented to Prensa Libre
that upon the filing of the notice of intent, Railroad
Development and the government will have three months to reach
an agreement, after which time the case would proceed to the
International Center for Settlement of Investment Disputes.
Guatemala attorney general Mario Gordillo told BNamericas that
Railroad Development and Ferrovias de Guatemala have "jumped
ahead with the process." He reportedly said that the case must
first be taken to national courts, to decide the level of
damages caused by Ferrovias de Guatemala, which failed to comply
with its own obligations to invest in the railway.
Mr. Carrasco can be reached at:
Diaz-Duran & Asociados Legal Advisors
15 Ave 18-28 Z. 13
Guatemala City, Guatemala
Phone: (502) 2383-6000
Fax: (502) 2361-3317
===============
H O N D U R A S
===============
MILLICOM INT'L: Provides Roaming Services to 280 Mil. Clients
-------------------------------------------------------------
Millicom International Cellular SA has renewed its partnership
with MACH, the leading global clearing and settlement partner
for mobile-based transactions, to provide roaming services to
more than 280 million subscribers in Latin America, Asia and
Africa.
The deal not only includes MACH's core services, Data and
Financial Clearing. Millicom International will also benefit
from a comprehensive Fraud Management solution designed to
minimize losses from roaming fraud. This long-term agreement is
testament to Millicom International's continued confidence in
MACH as a reliable partner whose robust solutions fit with each
operator's business needs.
The partnership will allow MACH to extend its global expertise
in the industry by forming a stronger framework with all of
Millicom International's 16 operators and deploy its solutions
across a number of countries like Columbia, Guatemala, Honduras,
Ghana and Mauritius.
MACH Chief Commercial Officer Terence Ledger commented,
"Millicom's partners operate in a number of countries where the
markets have undergone major economic transformation over the
past few years. As fixed line networks in some of these
countries have limited capabilities, high quality mobile
connectivity is vital as their economies are now linked with the
rest of the World. This demand for service requires reliable
and robust solutions that MACH can provide. We feel privileged
that the Millicom Group has extended our long-standing
partnership. MACH prides itself on being a reliable partner and
we look forward to continuing our long term partnership to
provide an unparalleled focus on the global emerging markets."
About MACH
MACH -- http://www.mach.com-- is the leading global clearing
and settlement partner for mobile-based transactions. It helps
telecommunications companies and enterprises across the world to
secure and develop existing and new revenue streams. It
specializes in outsourced solutions within roaming clearing and
billing, Interconnect and WLAN. In addition, it delivers mobile
content services through the independently operating brand
End2End as well as EDI under the Progrator brand. Its global
client base comprises the leading international
telecommunication companies, including established national
operators on five continents and new licensees worldwide. With
more than 500 employees and offices in 11 countries throughout
the world, it combines global expertise and operations with
local knowledge in each of our markets.
About Millicom International
Headquartered in Bertrange, Luxembourg, and controlled by
Sweden's AB Kinnevik, Millicom International Cellular S.A. --
http://www.millicom.com/-- is a global telecommunications
investor with cellular operations in Asia, Latin America and
Africa. It currently has cellular operations and licenses in 16
countries. The Group's cellular operations have a combined
population under license of around 391 million people.
The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras. The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay. The population under license in South
America at December 2005 is 15.2 million.
* * *
Standard & Poor's Ratings Services placed its 'B+' long-term
corporate credit rating and 'B-' senior unsecured debt ratings
on Luxembourg-headquartered emerging-markets wireless
telecommunications operator Millicom International Cellular S.A.
on CreditWatch with positive implications, following the signing
of an agreement for sale by Millicom of its 88.9% stake in
Paktel Ltd. to China Mobile Communications Corp.
Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.
===========
M E X I C O
===========
ADVANCED MARKETING: Baker & Taylor Completes Biz Acquisition
------------------------------------------------------------
Baker & Taylor, Inc. has completed the acquisition of the
wholesale operations of Advanced Marketing Services, Inc.
Advanced Marketing has been in proceedings under Chapter 11 of
the Bankruptcy Code since Dec. 29, 2006. The U.S. Bankruptcy
Court in Wilmington, Delaware, approved the transaction Friday
March 9, 2007.
Baker & Taylor's acquisition includes Advanced Marketing assets
through which it distributes bestsellers, children's books,
culinary titles, reference works, and other books to membership
warehouse clubs. Baker & Taylor also acquired Advanced
Marketing's wholesale distribution operations in the United
Kingdom and in Mexico.
Baker & Taylor said it would operate the warehouse club business
under a new brand, Baker & Taylor Marketing Services, and resume
full shipping operations to the warehouse clubs on
March 19, 2007.
Richard Willis, Baker & Taylor's chairman and chief executive
officer, noted that Advanced Marketing had been the dominant
wholesale book club distributor for over 20 years. "The
Advanced Marketing acquisition is a perfect fit with Baker &
Taylor and gives us a formidable presence in this industry," Mr.
Willis noted.
"At Baker & Taylor," Mr. Willis said, "we have built the world's
largest book wholesaler by focusing on the needs of our
customers. Advanced Marketing's employees have shown the same
dedication and passion for their customers, and we are pleased
to be able to give them the opportunity to continue to grow
their business."
Baker & Taylor, founded in 1828, is based in Charlotte, North
Carolina. Advanced Marketing's headquarters is in San Diego,
California. Baker & Taylor Marketing Services will continue to
keep its primary office in San Diego and operate warehouses in
Indianapolis, Indiana and Sacramento, California.
About Baker & Taylor
Baker & Taylor is a portfolio company of Castle Harlan Partners
IV, L.P., an investment fund organized and managed by Castle
Harlan, Inc., a private equity firm based in New York. Castle
Harlan acquired Baker & Taylor last summer.
Castle Harlan, founded in 1987, invests in controlling interests
in the buyout and development of middle-market companies in
North America and Europe. Its team of 20 investment
professionals has completed 48 acquisitions since its inception
with a total value in excess of US$9 billion. The firm traces
its roots to the start of the institutionalized private-equity
business in the late 1960s.
Castle Harlan's current portfolio companies, which employ more
than 42,000 people, include Ames True Temper, a leading
manufacturer of lawn and garden tools and accessories;
RathGibson, a leader in the manufacture of stainless steel and
high alloy precision-welded tubing, and Perkins & Marie
Callender's, Inc., which operates and franchises 618 family
restaurants in the United States and Canada.
About Advanced Marketing
Based in San Diego, California, Advanced Marketing Services,
Inc. -- http://www.advmkt.com/-- provides customized
merchandising, wholesaling, distribution and publishing
services, currently primarily to the book industry. The company
has operations in the U.S., Mexico, the United Kingdom and
Australia and employs approximately 1,200 people Worldwide.
The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.
When the Debtors filed for protection from their creditors, they
listed estimated assets and debts of more than US$100 million.
The Debtors' exclusive period to file a chapter 11 plan expires
on Apr. 28, 2007.
ASARCO LLC: Ct. Rejects Grupo Mexico Bid to Overturn Labor Pact
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas in
Corpus Christi, Texas, has authorized ASARCO LLC to enter into
an agreement that had been ratified in February with the United
Steelworkers and other unions representing some 1,600 workers in
Arizona and Texas.
As reported in the Troubled Company Reporter on Feb. 12, 2007,
the labor agreement had been challenged by Grupo Mexico, owners
of the bankrupt copper mining company, who had wanted to scuttle
the contract and possibly force a labor dispute. A strike could
have caused global copper prices to rise, thus benefiting Grupo
Mexico's holdings elsewhere.
"The court decision reassures our members that the contract will
go forward," USW District 12 Director Terry Bonds said.
"Workers will now get a well-deserved signing bonus, a long
over-due wage increase, and other ground-breaking protections,
while our retirees will receive an improved insurance package.
We believe that the new labor agreement will position ASARCO to
move forward in its bankruptcy reorganization process."
Grupo Mexico filed an appeal on Friday to the District Court in
Corpus Christi.
"We will fight this frivolous appeal," Mr. Bonds said. "And we
will fight any further attempts of Grupo Mexico to place its
self-interest above the interest of our members and retirees in
a healthy ASARCO."
ASARCO filed for bankruptcy protection in August 2005. Since
then, copper prices have risen to historic highs, as ASARCO has
continued to work toward reorganization. Workers represented by
the USW and other unions ended a four-month long strike in
November 2005 and agreed to extend the old contract for one
year. That contract, which was due to expire on Dec. 31, 2006,
has been extended and now will be replaced by the new agreement.
ASARCO has appointed new management during its bankruptcy case,
and Bonds credits the new management for seeking to build a more
cooperative relationship with the USW and the other unions.
The unions representing workers at ASARCO in addition to the USW
are the International Brotherhood of Electrical Workers,
Machinists, Boilermakers, Teamsters, Operating Engineers,
Millwrights and Pipefitters.
About ASARCO LLC
Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/
-- is an integrated copper mining, smelting and refining
company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.
The Company filed for chapter 11 protection on Aug. 9, 2005
(Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq.,
Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker
Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A.
Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden,
Womble & Culbreth, P.C., represent the Debtor in its
restructuring efforts. Lehman Brothers Inc. provides the ASARCO
with financial advisory services And investment banking
services. Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the
Official Committee of Unsecured Creditors and David J. Beckman
at FTI Consulting, Inc., gives financial advisory services to
the Committee. When the Debtor filed for protection from its
creditors, it listed US$600 million in total assets and
US$1 billion in total debts.
The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-
20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee,
CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.
Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304),
Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex.
Case No. 05-21346) also filed for chapter 11 protection, and
ASARCO has asked that the three subsidiary cases be jointly
administered with its chapter 11 case. On Oct. 24, 2005,
Encycle/Texas' case was converted to a Chapter 7 liquidation
proceeding. The Court appointed Michael Boudloche as
Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt,
Esq., and John Vardeman, Esq., at Law Offices of Michael B.
Schmidt represent the Chapter 7 Trustee.
ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for chapter 11
protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774
to 06-20776).
(ASARCO Bankruptcy News, Issue No. 40; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
Judge Schmidt extended the Debtors' exclusive period to file a
plan of reorganization to April 6, 2007, and their exclusive
period to solicit acceptances of that plan to June 6, 2007.
DAIMLERCHRYSLER: Union Leaders Fight Unit Sale to Equity Buyer
--------------------------------------------------------------
Union leaders in Germany and in the U.S. oppose sale of
DaimlerChrysler AG's Chrysler Group to a private equity buyer,
the Wall Street Journal reports.
"We wouldn't support a sale to a private-equity investor,"
DaimlerChrysler supervisory board member Gerd Rheude, who heads
the works council at a Worth truck plant in southwestern
Germany, says in an interview with WSJ.
"It's important for us that Chrysler won't be cut in pieces, but
that we find a way of securing the jobs of our American
colleagues," Mr. Rheude adds.
"We wouldn't support a solution such as a private equity firm
that would cut out choice bits," DaimlerChrysler supervisory
board member Helmut Lense tells The Detroit News in an
interview. Mr. Lense is the main employee representative of a
plant in Stuttgart that builds engines, suspensions and
transmissions.
According to WSJ, under German law, a sale of a division have to
be approved by a public company's supervisory board, and half of
its seats have to be occupied by worker representatives.
The board chairman, a shareholder representative, can cast a
second, tie breaking vote in case of a deadlock, although German
companies usually avoid such moves, WSJ adds.
In a TCR story on March 15, 2007, United Auto Workers President
Ron Gettelfinger said Chrysler Group should remain in the
family, according to reports of various news agencies.
"I've been around the process long enough to know that I'm not
ready to concede that the Chrysler Group is going to come out of
DaimlerChrysler," DaimlerChrysler supervisory board member Mr.
Gettelfinger told radio station WJR-AM in Detroit in an
interview.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- 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.
MOVIE GALLERY: Incurs US$15.1MM Net Loss in 2006 Fourth Quarter
---------------------------------------------------------------
Movie Gallery Inc. reported results for the fourth quarter and
full year ended Dec. 31, 2006.
2006 and Recent Highlights
The company has achieved a number of important objectives that
significantly improve Movie Gallery's overall financial strength
and enhance its prospects for success, including:
-- Completed the refinancing of its senior secured credit
facility, strengthening the company's capital structure,
providing greater liquidity and reducing annualized cash
interest expense.
-- Acquired MovieBeam, which provides the company with a
compelling technology platform to enable digital content
delivery and drive future revenue growth.
-- Reduced capital spending in 2006 by opening only 123 new
stores, most of which were already in the pipeline.
-- Closed 230 underperforming stores and stores that had
overlapping trade areas during 2006. In order to maximize
free cash flow, the company plans to curtail new store
openings over the next several years.
-- Announced a real estate optimization strategy to better
manage store leases and sales floor space. These real
estate projects are long term in nature and Movie Gallery
expects the bulk of the financial benefits to be realized
in 2008 and beyond.
Fourth Quarter Results
For the fourth quarter of 2006 Movie Gallery's total revenues
were US$663.3 million, a decrease of 1.9% from US$676.4 million
in the fourth quarter of 2005. Same-store total revenues for
the fourth quarter decreased 2.9% from the fourth quarter of
2005. During the quarter, same-store total revenues were
relatively flat at negative 0.3% at Movie Gallery branded stores
and negative 4.1% at Hollywood branded stores.
The company's operating income for the 2006-fourth quarter
increased to US$18.7 million as compared to an operating loss of
US$514.0 million in the same period last year. Included in
operating income for the fourth quarter of 2006 is US$8.6
million of charges related to store closures, professional fees
associated with the company's continued restructuring efforts
and stock compensation expense. Specifically, US$3.0 million is
related to charges associated with the planned closure of
domestic store locations and US$1.5 million is related to the
elimination of the company's Mexico operations. In addition,
US$3.1 million is attributable to professional advisory fees
incurred in conjunction with the company's strategic planning
and balance sheet restructuring efforts and US$1.0 million
pertains to stock-based compensation.
Net loss for the fourth quarter totaled US$15.1 million as
compared to a net loss of US$546.5 million in the 2005 fourth
quarter.
Adjusted EBITDA, which is defined as operating income plus
depreciation, amortization, non-cash stock compensation, and
special items, less purchases of rental inventory, increased by
36% during the 2006 fourth quarter to US$45 million from US$33
million in the fourth quarter of 2005.
Full Year 20006 Results
For fiscal 2006, Movie Gallery's total revenues were US$2.5
billion, an increase of 25% from US$2.0 billion in the fiscal
2005. In fiscal 2005, Movie Gallery's total revenues included
revenues for 36 weeks of the company's wholly owned subsidiary,
Hollywood Entertainment Corporation, which was acquired on
April 27, 2005. Total revenues in 2006 were comprised of US$871
million from Movie Gallery, US$1.35 billion from Hollywood Video
and US$325 million from Game Crazy.
Same-store total revenues for fiscal 2006 decreased 3.7% from
the prior year. For fiscal 2006 same-store total revenues at
our Movie Gallery branded stores were relatively flat at
negative 0.1% and were negative 5.4% at our Hollywood branded
stores.
Operating income for the 2006 fiscal year improved to US$96.3
million compared to an operating loss of US$476.4 million for
the previous fiscal year. Included in operating income for the
full year 2006 is US$43.2 million of charges related to rental
amortization changes, accounting for asset retirement
obligations, store closures, the company's continued
restructuring efforts and stock compensation expense.
Specifically, US$11.3 million is related to changes in the book
value associated with revenue-sharing DVD movies and the
acceleration of the rental amortization of games at the Movie
Gallery segment, US$7.3 million is related to the company's
asset retirement obligations in accordance with SFAS 143, US$9.6
million is related to planned domestic store closures and US$1.5
million is related to the elimination of Movie Gallery's Mexico
operations. In addition, US$7.7 million is attributable to
professional advisory fees incurred in conjunction with the
Company's strategic planning and balance sheet restructuring
efforts, US$2.7 million is related to fees incurred in
connection with the 2006 amendment of Movie Gallery's previous
credit facility and US$3.1 million pertains to stock-based
compensation.
Net loss for the fiscal year was US$25.7 million as compared to
a net loss of US$552.7 million for the 2005 fiscal year.
The company generated Adjusted EBITDA of approximately US$255
million in 2006, which was relatively flat with Movie Gallery's
2005 pro forma Adjusted EBITDA (giving effect to the Hollywood
acquisition as if it had occurred on Jan. 1, 2005) of US$257
million.
At the end of its fiscal year, Dec. 31, 2006, Movie Gallery had
total cash and availability under its old revolving credit
facility of US$69 million. On March 9, 2007, the company
announced that it has a new US$900 million senior secured credit
facility comprised of:
-- a US$100 million revolving credit facility;
-- a US$600 million first lien term loan;
-- a US$175 million second lien term loan; and,
-- a US$25 million synthetic letter of credit facility.
The company's total cash and availability under the new
revolving credit facility is more than US$111 million.
Management's Commentary
Thomas Johnson, Executive Vice President and Chief Financial
Officer, said, "With our new credit facility in place, Movie
Gallery has the solid capital structure and enhanced liquidity
we need to grow our business and return to profitability. Our
strong cash flow and reduced interest expense will also allow us
to invest prudently in compelling strategic opportunities, such
as our recent acquisition of MovieBeam. We will continue to
pursue our ongoing operational improvement initiatives, which
include real estate optimization strategies and lower capital
spending. We believe we can realize substantial cost savings
while pursuing other cash generation opportunities that will
significantly enhance value for all Movie Gallery shareholders."
"This is an exciting time and an inflection point in the history
of our company," said Joe Malugen, Chairman, President and Chief
Executive Officer. "Our stores provide solid cash flow and are
the foundation of our business, but increasingly we expect that
technology will allow us to offer new and different options for
Movie Gallery customers. Our acquisition of substantially all
of the assets, technology, network operations, and customers of
MovieBeam gives us access to an innovative platform that we
expect to drive future revenue growth and diversification. We
have completed our refinancing transaction and made significant
progress in reducing costs and I look forward to providing
updates on our continued progress in 2007."
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 USUS$2.5 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 13, 2007, 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.
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.
NORTEL NETWORKS: Posts US$80MM Net Loss in Quarter Ended Dec. 31
----------------------------------------------------------------
Nortel Networks Corp. reported a net loss of US$80 million for
the fourth quarter ended Dec. 31, 2006, compared with a net loss
of US$2.286 billion for the fourth quarter of 2005.
Fourth quarter 2006 results included a gain of US$164 million on
the sale of assets, a shareholder litigation expense of US$234
million reflecting a mark-to-market adjustment of the share
portion of the global class action settlement and special
charges of US$29 million for restructuring. Fourth quarter 2005
results included a litigation expense of US$2.474 billion, a tax
benefit of US$134 million and special charges of US$24 million.
Revenues for the fourth quarter of 2006 were US$3.32 billion.
Nortel achieved year over year revenue increases of 10 percent
in the quarter as it continued to drive its core strategy and
expand its business through growth in the company's four
operating segments.
For the year 2006, revenues were US$11.42 billion compared to
US$10.51 billion for the year 2005. The company reported net
earnings for the year 2006 of US$28 million, compared with a net
loss of US$2.61 billion for the year 2005.
Net earnings for the year 2006 included a shareholder litigation
recovery of US$219 million reflecting mark-to-market adjustments
of the share portion of the global class action settlement,
special charges of US$105 million primarily related to
restructuring activities, a benefit of approximately US$43
million related to the changes to the North American employee
benefit plans and a benefit of US$206 million related to the
sale of assets. The year 2005 results included a litigation
expense of US$2.474 billion, special charges of US$169 million
and US$47 million of costs related to the sale of businesses and
assets.
"A relentless focus on execution in 2006 delivered solid
progress on our Business Transformation plan and laid the
foundations upon which Nortel will build its future. I am
particularly pleased with the progress made in the fourth
quarter as we grew revenues by 10 percent, grew our backlog, and
improved operating margin and operating cash flow performance.
In fact, the fourth quarter operating margin, was the highest in
eight quarters and the operating cash flow performance for 2006
was the best since 1998," said Mike Zafirovski, Nortel president
and chief executive officer. "We are 100% focused on the future
and are taking the necessary steps to reduce costs, grow
revenues faster than the market in key next-generation solutions
and position the company for profitable growth. There is a
significant amount of work left to be done, but today Nortel is
stronger than it has been in years."
Gross margin was 40 percent of revenue in the fourth quarter of
2006, reflecting a strong contribution from the LG-Nortel joint
venture and code division multiple access (CDMA) solutions.
This compares to gross margin of 39 percent for the fourth
quarter of 2005. Compared to the fourth quarter of 2005, there
were significant improvements in Mobility and Converged Core
Networks (MCCN) gross margins due to the negative impact of
certain contracts in the fourth quarter of 2005 not repeated in
the fourth quarter of 2006, partially offset by a significant
decline in Metro Ethernet Networks (MEN) margins due to product
mix and lower margins in Enterpise Solutions (ES) and Global
Services (GS).
Selling, general and administrative expenses were US$694 million
in the fourth quarter of 2006, compared to US$683 million for
the fourth quarter of 2005. Compared to the fourth quarter of
2005, SG&A was impacted by the consolidation of the LG-Nortel
joint venture, higher accruals for commission and bonus
payments, and higher costs related to the company's business
transformation initiatives, partially offset by lower
restatement related and employee benefit plan costs.
Research and Development expenses were US$488 million in the
fourth quarter of 2006, compared to US$457 million for the
fourth quarter of 2005. R&D expenses in the fourth quarter of
2006 was impacted by increased investment in targeted product
areas, higher accruals for bonus payments and the impact of the
consolidation of the LG-Nortel joint venture, partially offset
by lower employee benefit plan costs.
Special charges in the fourth quarter of 2006 of US$29 million
included US$13 million related to the company's prior
restructuring plans and US$17 million for the restructuring
program announced on June 27, 2006.
Other income was US$34 million of income for the fourth quarter
of 2006, which primarily included interest and dividend income
of US$47 million.
Minority interest expense was US$58 million in the fourth
quarter of 2006, compared to US$2 million for the fourth quarter
of 2005. The increase in minority interest expenses was
primarily driven by the profitability of the LG-Nortel joint
venture in the fourth quarter of 2006 resulting from the
recognition of previously deferred revenue.
Interest expense on long-term debt was US$84 million in the
fourth quarter of 2006, compared to US$54 million for the fourth
quarter of 2005. Interest expense on long-term debt was up due
to the increase in interest costs associated with the US$2
billion aggregate principal amount of senior notes issued in
July 2006.
Cash balance at the end of the fourth quarter of 2006 was
US$3.49 billion, up from US$2.6 billion at the end of the third
quarter of 2006. This increase was primarily driven by positive
cash from operations of US$520 million as well as US$306 million
in cash received upon the closing of the sale of certain assets
and liabilities related to the UMTS Access business.
At Dec. 31, 2006, the company's balance sheet showed
US$18.979 billion in total assets, US$17.079 billion in total
liabilities, US$779 million in minority interests in subsidiary
companies, and US$1.121 billion in total stockholders' equity.
Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1ba8
About Nortel
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.
Nortel Network's 4-1/4% Convertible Senior Notes due
Sept. 1, 2008, carry Moody's Investors Service's and Standard &
Poor's single-B ratings.
TANK SPORTS: Forms Strategic Agreement with Jianshe Industry
------------------------------------------------------------
Tank Sports has signed an agreement to form a strategic alliance
with Jianshe Industry Group, Ltd.
"Jianshe is one of the top powersports equipment manufacturers
in China with proven quality products," said Tank CEO Jiangyong
Ji. "One of Jianshe's strengths is its large displacement
engine ATV, along with a professional team of R&D engineers and
equipment. Tank has more than 500 dealers nationwide who are
hungry for these larger displacement engine ATVs, and the
alliance will strengthen Tank's weakness in the area of larger
power ATVs. As a result, we've negotiated with the Jianshe
Industry Group to form a strategic alliance on the large
displacement engine ATV products and add them as a valuable
addition to Tank's ATV product line."
The alliance with Tank will provide Jianshe an outlet for its
products in the U.S. with an already-established distributor of
Motorcycles, Scooters and other off-road products currently not
manufactured or distributed by Jianshe.
The cooperative aspect of the two companies will include joint
research and development of 250cc, 400cc and 700cc ATVs, as well
as service and technical support provided by Jianshe. At the
same time, Tank has obtained the right to become the exclusive
wholesaler of Jianshe products in U.S. and Mexico. The alliance
between Tank and Jianshe will provide Tank's U.S. dealers with a
larger variety of ATV products for the 2007 riding season and is
projected to increase Tank's sales revenue.
Headquartered in El Monte, California, Tank Sports Inc.
(OTCBB: TNSP) -- http://www.tank-sports.com/-- develops,
engineers, and markets high-performance on-road motorcycles &
scooters, off-road all-terrain vehicles (ATVs), dirt bikes and
Go Karts through OEMs in China. The company's motorcycles and
ATVs products are manufactured in China and Mexico.
Going Concern Doubt
Kabani & Company, Inc., in Los Angeles, California, raised
substantial doubt about Tank Sports, Inc.'s ability to continue
as a going concern after auditing the company's financial
statements for the year ended Feb. 28, 2006. The auditor
pointed to the company's net loss and accumulated deficit.
===========
P A N A M A
===========
CHIQUITA BRANDS: BB&T Capital Analysts Keeps "Hold" Rating
----------------------------------------------------------
BB&T Capital Markets analysts has maintained their "hold" rating
on Chiquita Brands International Inc., Newratings.com reports.
As reported in the Troubled Company Reporter-Latin America on
March 16, 2007, Chiquita Brands entered into a plea agreement
with the United States Attorney's Office for the District of
Colombia and the National Security Division of the U.S.
Department of Justice relating to the previously disclosed
investigation by the government into payments made by the
company's former banana-producing subsidiary in Colombia to
certain groups designated under U.S. law as foreign terrorist
organizations. Chiquita Brands voluntarily disclosed the
payments to the government in April 2003. Under the terms of
the agreement, the company will plead guilty to one count of
Engaging in Transactions with a Specially-Designated Global
Terrorist, and will pay a fine of US$25 million, payable in five
equal annual installments, with interest. The company said it
would continue to cooperate with the government in any
continuing investigation into the matter.
Though the settlement seems positive, some uncertainty regarding
the issue still remains. The decline in Chiquita Brands' share
price after the fourth quarter results were released appears
overdone, BB&T Capital told Newratings.com.
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'.
CHIQUITA BRANDS: Media Group Analyzing CEO's Tie in Gov't Probe
---------------------------------------------------------------
Sun-Times Media Group Inc. told the Associated Press that its
board will study the potential effect on its President and Chief
Executive Officer Cyrus F. Freidhim Jr.'s involvement in a
government probe on Chiquita Brands International Inc.
AP relates that Mr. Freidheim was chief executive officer at
Chiquita Brands from 2002 to 2004.
As reported in the Troubled Company Reporter-Latin America on
March 16, 2007, Chiquita Brands entered into a plea agreement
with the United States Attorney's Office for the District of
Colombia and the National Security Division of the U.S.
Department of Justice relating to the previously disclosed
investigation by the government into payments made by the
company's former banana-producing subsidiary in Colombia to
certain groups designated under U.S. law as foreign terrorist
organizations. Chiquita Brands voluntarily disclosed the
payments to the government in April 2003. Under the terms of
the agreement, the company will plead guilty to one count of
Engaging in Transactions with a Specially-Designated Global
Terrorist, and will pay a fine of US$25 million, payable in five
equal annual installments, with interest. The company said it
would continue to cooperate with the government in any
continuing investigation into the matter.
Sun-Times Media said in a filing with the Securities and
Exchange Commission that Mr. Freidheim informed the company that
he has not been advised that he is a target of the US government
investigation. However, he said that should the probe continue,
he would be part of a group of current and former Chiquita
Brands workers that would undergo investigation.
The board will conduct further inquiry into the matter as it may
affect the firm, Sun-Times Media told AP.
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'.
CHIQUITA BRANDS: Pleads Guilty to Terrorist Payment Allegation
--------------------------------------------------------------
Chiquita Brands International has pleaded guilty to one count of
doing business with Colombian terrorists to protect its most
profitable banana-growing operation, the Associated Press
reports.
Chiquita's guilty plea relates to the company's plea agreement
with the United States Attorney's Office for the District of
Colombia and the National Security Division of the U.S.
Department of Justice which includes payment of a US$25 million
fine, payable in five equal annual installments, with interest.
According to AP, prosecutors told a federal court Monday that
the company agreed to pay about US$1.7 million between 1997 and
2004 to the United Self-Defense Forces of Colombia.
Chiquita, AP relates, has said it was forced to make the
payments and was acting only to ensure the safety of its
clients.
However, AP says, federal prosecutors noted that from 2001 to
2004, when Chiquita made US$825,000 in illegal payments, the
Colombian banana operation earned US$49.4 million and was the
company's most profitable unit.
The company is set to be sentenced June 1, the source says.
As reported in the Troubled Company Reporter on Mar. 14, 2007,
Chiquita and its operating subsidiary, Chiquita Brands L.L.C.,
entered into an amendment effective March 7, 2007, of their
credit agreement dated as of June 28, 2005, with a syndicate of
banks, financial institutions and other institutional lenders.
The Amendment addressed the treatment under the Credit Agreement
of a US$25 million charge for the potential settlement of a
contingent liability related to the U.S. Department of Justice's
investigation of the company in connection with payments made by
its former Colombian subsidiary.
U.S. Department of Justice Probe
In a press statement dated Feb. 22, 2007, Chiquita disclosed
that in April 2003, the company's management and audit
committee, in consultation with the board of directors,
voluntarily disclosed to the U.S. Department of Justice that its
former banana-producing subsidiary in Colombia, which was sold
in June 2004, had made payments to certain groups in that
country which had been designated under United States law as
foreign terrorist organizations.
Following the voluntary disclosure, the Justice Department
undertook an investigation, including consideration by a grand
jury. In March 2004, the Justice Department advised that, as
part of its criminal investigation, it would be evaluating the
role and conduct of the company and some of its officers in the
matter. In September and October 2005, the company was advised
that the investigation was continuing and that the conduct of
the company and some of its officers and directors was within
the scope of the investigation.
During the fourth quarter of 2006, the company commenced
discussions with the Justice Department about the possibility of
reaching a plea agreement. As a result of the discussions, and
in accordance with the guidelines set forth in SFAS No. 5, the
company has recorded a reserve of US$25 million in its financial
statements for the quarter and year ended Dec. 31, 2006.
The amount reflects liability for payment of a proposed
financial sanction contained in an offer of settlement made by
the company to the Justice Department. The US$25 million would
be paid out in five equal annual installments, with interest,
beginning on the date judgment is entered. The Justice
Department has indicated that it is prepared to accept both the
amount and the payment terms of the proposed US$25 million
sanction.
According to the company, negotiations are ongoing, and there
can be no assurance that a plea agreement will be reached or
that the financial impacts of any such agreement, if reached,
will not exceed the amounts currently accrued in the financial
statements. Furthermore, the company said that the agreement
would not affect the scope or outcome of any continuing
investigation involving any individuals.
In the event an acceptable plea agreement between the company
and the Justice Department is not reached, the company believes
the Justice Department is likely to file charges, against which
the company would aggressively defend itself. The company is
unable to predict the financial or other potential impacts that
would result from an indictment or conviction of the company or
any individual, or from any related litigation, including the
materiality of such events.
About Chiquita Brands
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'.
=======
P E R U
=======
HERTZ CORP: S&P Affirms BB- Corporate Credit Rating
---------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Hertz
Corp. to stable from negative. All ratings, including the 'BB-'
corporate credit rating, were affirmed.
"The outlook revision is based on the company's stabilized
financial profile, with better earnings performance in 2006 and
continued improvement expected in 2007. In addition, with 28%
of the company now owned by public shareholders, the chance of
another large debt-financed dividend is unlikely," said Standard
& Poor's credit analyst Betsy Snyder.
The ratings on Hertz reflect an aggressive financial profile
following its US$14 billion leveraged acquisition in December
2005, its sponsors' very aggressive financial policy, and the
price-competitive nature of on-airport car rentals and equipment
rentals. Ratings also incorporate the company's position as the
largest global car rental company and the strong cash flow its
businesses generate. Hertz was acquired from Ford Motor Co. by
Clayton, Dubilier & Rice Inc., The Carlyle Group, and Merrill
Lynch Global Private Equity, who combined now own a 72% stake
after the company's US$1.3 billion IPO in November 2006. The
acquisition, which added over US$2 billion of debt to Hertz's
balance sheet, resulted in an increase in its borrowing costs,
and credit ratios have weakened from their previous relatively
healthy levels. Subsequently, Hertz's sponsors completed a US$1
billion debt-financed dividend just six months after acquiring
the company. Proceeds of the initial public offering, after
US$1 billion was used to repay debt incurred for the dividend,
were also paid to the sponsors as a dividend. In addition,
around two-thirds of the company's tangible assets are now
secured, versus around 10% prior to its acquisition.
Although Hertz's financial policy has become significantly more
aggressive, its financial profile has stabilized. While its
sponsors took US$1.3 billion of dividends from the company in
less than a year, partially funded through debt that was
subsequently repaid with proceeds from an initial public
offering, the chances of this recurring are unlikely given that
28% of the company is now owned by public owners. A significant
weakening in the company's operating performance could result in
a negative outlook. If the company continues to reduce its debt
leverage, the outlook could be revised to positive.
Headquartered in Park Ridge, New Jersey, Hertz Corp. --
http://www.hertz.com/-- is a car rental company that operates
from approximately 7,600 locations in 145 countries worldwide.
Hertz also operates an equipment rental business, Hertz
Equipment Rental Corporation, offering a diverse line of
equipment, including tools and supplies, as well as new and used
equipment for sale, to customers ranging from major industrial
companies to local contractors and consumers through more than
360 branches in the United States, Canada, France, and Spain.
Hertz has operations in the Philippines, Hungary, and Peru,
among others.
IMPSAT FIBER: Amends Merger Agreement with GCL & GC Crystal
-----------------------------------------------------------
IMPSAT Fiber Networks, Inc., Global Crossing Limited and its
wholly-owned subsidiary GC Crystal Acquisition, Inc. -- MergerCo
-- entered into an amendment to the Agreement and Plan of
Merger, dated as of Oct. 25, 2006, as amended, which provides
for the extension of:
(i) the Final Termination Date, as defined in the Merger
Agreement, from April 16, 2007 to May 25, 2007; and
(ii) the Regulatory Outside Closing Date, as defined in the
Merger Agreement, from April 16, 2007 to May 25, 2007.
The company, GCL and MergerCo have amended the Merger Agreement
to provide additional time to obtain all necessary approvals to
consummate the merger.
In addition, the company and its subsidiaries in Argentina and
Brazil entered into amendments to its US$38,920,888.89 Second
Amended and Restated Financing Agreement, dated as of
July 29, 2005 and its US$81,066,666.67 Second Amended and
Restated Financing Agreement, dated as of July 29, 2005, which
provided for the extension of the interest payment date under
the Argentina Financing Agreement and the interest and principal
payment dates under the Brazil Financing Agreement from
March 25, 2007 to May 25, 2007, and the waiver until the first
quarter of 2008 of the Debt Service Coverage Ratio, as defined
in the Brazil Financing Agreement.
As reported in the Troubled Company Reporter-Latin America on
March 16, 2007, Impsat entered into an Agreement and Plan of
Merger with Global Crossing and GC Crystal, on Oct. 25, 2006,
pursuant to which Impsat would be acquired by Global Crossing.
The Offer is being made in connection with the proposed merger,
and the Offer is conditioned upon the consummation of the
proposed merger upon satisfaction or waiver of the conditions to
closing of the merger. The consent solicitation with respect to
the Series A Notes is conditioned upon the receipt by Impsat of
valid consents from holders of a majority in principal amount of
the Series A Notes outstanding and unaffiliated with Impsat.
The consent solicitation with respect to the Series B Notes is
conditioned upon the receipt by Impsat of holders of a majority
in principal amount of the Series B Notes outstanding and
unaffiliated with Impsat. The waiver with respect to the Series
A Notes is conditioned upon the receipt by Impsat of valid
waivers from holders of two-thirds in principal amount of the
Series A Notes outstanding and unaffiliated with Impsat. The
waiver with respect to the Series B Notes is conditioned upon
the receipt by Impsat of valid waivers from holders of two-
thirds in principal amount of the Series B Notes outstanding and
unaffiliated with Impsat.
IMPSAT Fiber Networks Inc. (OTC: IMFN.OB) --
http://www.impsat.com/-- provides private telecommunications
networks and Internet services in Latin America. The company
owns and operates 15 metropolitan area networks in some of the
largest cities in Latin America and has 15 facilities to provide
hosting services, providing services to more than 4,500 national
and multinational client. IMPSAT has operations in Argentina,
Colombia, Brazil, Venezuela, Ecuador, Chile, Peru and the United
States.
Going Concern Doubt
In its audit report on the consolidated financial statements for
year ended Dec. 31, 2005, auditors working for Deloitte & Touche
LLP noted that IMPSAT Fiber Networks, Inc.'s current liquidity
position, high debt obligations, and negative operating results
raise substantial doubt as to its ability to continue as a going
concern.
=====================
P U E R T O R I C O
=====================
COVENTRY HEALTH: A.M. Best Puts BB+ Rating on US$400-Mil. Notes
---------------------------------------------------------------
A.M. Best Co. has assigned a debt rating of "bb+" to Coventry
Health Care, Inc.'s US$400 million 5.95% senior unsecured notes,
which will mature in 2017. The rating outlook is positive.
Coventry Health's and its subsidiaries' financial strength,
issuer credit and remaining debt ratings are unchanged.
The proceeds will be used to replace the recently redeemed
higher rate notes, finance the Concentra Workers' Compensation
Managed Care Services acquisition announced on Feb. 8, 2007, and
for share repurchase. Coventry Health redeemed all US$170.5
million 8.5% senior notes due 2012 on Feb. 15, 2007. The
all-cash transaction, valued at US$387.5 million, is expected to
close in April 2007. In addition, Coventry repurchased shares
totaling approximately US$220 million in first quarter 2007.
As a result of this offering, Coventry Health's financial
leverage is expected to increase from its current level of 20.5%
to approximately 25%, which is within industry norms. Coventry
Health generates sound financial returns and has strong
liquidity with earnings before interest taxes, depreciation and
amortization (EBITDA) coverage at approximately 18 times at
year-end 2006. Coventry Health's financial flexibility is
supported by good dividend capacity from its subsidiaries plus
non-regulated cash flows from its First Health operations.
Coventry Health's commitment to rationale pricing and stable
margins has resulted in 11% growth in net earnings in 2006 and
improved capitalization in the majority of its health plans.
Offsetting rating factors include health plans membership
decline and increased goodwill exposure following the Concentra
acquisition. Following membership losses on several highly
competitive markets, Coventry Health's risk enrollment declined
2.6%, while overall membership experienced a 0.9% decrease as of
Dec. 31, 2006, compared to 2005. In addition, A.M. Best is
concerned about Coventry Health's high goodwill exposure. As of
year-end 2006, the ratio of goodwill and intangibles to total
equity was just below 70%, and it is expected to be
approximately 79% after the Concentra Health acquisition is
completed.
Headquartered in Bethesda, Maryland, Coventry Health Care, Inc.
(NYSE: CVH) -- http://www.cvty.com/-- is a national managed
health care company operating health plans, insurance companies,
network rental/managed care and workers' compensation services
companies. Coventry provides a full range of risk and fee-based
managed care products and services, including HMO, PPO, POS,
Medicare Advantage, Medicare Prescription Drug Plans, Medicaid,
Workers' Compensation services and Network Rental to a broad
cross section of individuals, employer and government-funded
groups, government agencies, and other insurance carriers and
administrators in all 50 states as well as the District of
Columbia and Puerto Rico.
DEVELOPERS DIVERSIFIED: Gets Included in S&P 500 Index
------------------------------------------------------
Developers Diversified Realty will be added to the S&P 500 index
after the close of trading on March 20, 2007. The company does
not intend to issue equity in conjunction with the inclusion.
Scott Wolstein, Developers Diversified's Chairman and Chief
Executive Officer, commented, "Our inclusion in the S&P 500 is
an incredible honor. To be chosen as one of the preeminent 500
companies in the United States is really a testament to the hard
work of many individuals over the years. Our inclusion
significantly broadens investor participation in our stock and
we embrace the challenge to continue producing outstanding
returns for our now expanded investor base."
According to Standard and Poors, the S&P 500 index is widely
regarded as the best single gauge of the U.S. equities market.
The index is comprised of 500 leading companies in leading
industries of the U.S. economy and is frequently used as the
standard of comparison in terms of investment performance for
individual stocks and mutual funds. The S&P 500 index is also
the U.S. component of the S&P Global 1200.
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.
DORAL FINANCIAL: Sells 11 Branches to New York Commercial Bank
--------------------------------------------------------------
Doral Bank, FSB, Doral Financial Corporation's wholly owned New
York City-based thrift subsidiary, entered into a definitive
purchase and assumption agreement with New York Commercial Bank,
the commercial bank subsidiary of New York Community Bancorp,
pursuant to which New York Commercial Bank agreed to acquire
Doral Bank NY's 11 existing branches in New York City.
Pursuant to the terms of the agreement, New York Commercial Bank
will assume certain of Doral Bank NY's assets and liabilities,
including deposits of approximately US$370 million. The
purchase price for the transaction will be equal to the
difference between the value of the assets sold and the
liabilities assumed as of the closing date, plus a deposit
premium of approximately 4% of the deposits assumed as of the
closing date. The transaction is expected to result in a pre-
tax profit to Doral Bank NY of approximately US$10 million.
Following the consummation of the transaction, Doral Financial
intends to request the authorization of the Office of Thrift
Supervision to distribute a substantial portion of Doral Bank
NY's capital to Doral Financial. Doral Bank NY is organized
under a federal thrift charter and operates independently of
Doral Bank Puerto Rico, Doral Financial's principal banking
subsidiary.
"The sale of Doral Bank NY's branches will allow us to focus our
efforts on our well capitalized core Puerto Rico banking
operations and improve our liquidity as we continue to
strengthen our franchise for the benefit of our customers,
employees and shareholders," Glen R. Wakeman, Chief Executive
Officer of Doral Financial, stated. "We have structured the
transaction in a way that will allow us to retain Doral Bank
NY's charter. We saw a unique opportunity to exit this non-core
operation in a favorable market without losing the strategic
value of our federal charter.
"New York Commercial Bank is a solid institution that we
anticipate will continue to provide excellent service to Doral
Bank NY's customers. We thank Doral Bank NY's employees and
customers for their loyalty over the years."
The transaction, which is subject to regulatory approval and
other customary conditions, is expected to be completed early in
the third quarter of 2007.
Credit Suisse acted as the sole financial advisor to Doral
Financial in connection with this transaction.
About New York Commercial Bank
New York Commercial Bank is the commercial bank subsidiary of
New York Community Bancorp, one of the leading financial
institutions in the New York Metropolitan region, with assets of
$28.5 billion at Dec. 31, 2006.
About Doral Financial Corp.
Based in New York City, Doral Financial Corp. (NYSE: DRL) --
http://www.doralfinancial.com/-- is a diversified financial
services company engaged in mortgage banking, banking,
investment banking activities, institutional securities and
insurance agency operations. Its activities are principally
conducted in Puerto Rico and in the New York City metropolitan
area. Doral is the parent company of Doral Bank, a Puerto Rico
based commercial bank, Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm, Doral
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank
based in New York City.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2007, Moody's Investors Service downgraded to B2 from B1
the senior debt ratings of Doral Financial Corp. Moody's said
the ratings are on review for possible downgrade.
As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2007, Standard & Poor's Ratings Services lowered its
long-term ratings on Doral Financial Corp., including the
counterparty credit rating, to 'B' from 'B+'.
Standard & Poor's said the outlook remains negative.
=================================
T R I N I D A D & T O B A G O
=================================
CENVEO CORP: Accepts Cadmus' 8-3/8% Senior Sub. Notes Due 2014
--------------------------------------------------------------
Cenveo Corporation, a wholly-owned subsidiary of Cenveo, Inc.,
has accepted for purchase all US$20,875,000 of the outstanding
US$125,000,000 aggregate principal amount of 8-3/8% Senior
Subordinated Notes due 2014 of Cadmus Communications Corporation
(CUSIP No. 127587AD5) that were validly tendered and not
withdrawn prior to 5:00 p.m., New York City time, on
March 16, 2007. The company had made a cash tender offer to
purchase any or all of the Notes pursuant to its Offer to
Purchase and Consent Solicitation Statement dated March 5, 2007.
The tender offer and consent solicitation were subject to the
satisfaction of certain conditions, including receipt of
consents from holders of a majority of the outstanding Notes.
The company has not received consents from holders of a majority
of the outstanding Notes and has determined to waive the
condition that it receive such consents. Accordingly, the
company will not make proposed amendments to the indenture
governing the Notes that would, as contemplated by the Offer to
Purchase, have eliminated substantially all of the restrictive
covenants and certain events of default in the indenture.
The Company will pay total consideration of US$1,015.00 per
US$1,000 principal amount of Notes to holders who validly
tendered and did not withdraw their Notes prior to the Consent
Payment Deadline. Any remaining Notes validly tendered and not
withdrawn before the Expiration Date but after the Consent
Payment Deadline will receive the tender offer consideration of
US$1,005.00 per US$1,000 principal amount of Notes. The tender
offer for Notes is scheduled to expire at 5:00 p.m., New York
City time, on March 30, 2007.
The complete terms and conditions of the tender offer are
described in the Offer to Purchase, copies of which may be
obtained by contacting MacKenzie Partners, Inc., the information
agent for the offer, at (212) 929-5500 (collect) or (800) 322-
2885 (U.S. toll-free). Wachovia Securities and JPMorgan are the
dealer managers and solicitation agents for the tender offer and
consent solicitation. Additional information concerning the
tender offer and consent solicitation may be obtained by
contacting Wachovia Securities, Liability Management Group, at
(704) 715-8341 (collect) or (866) 309-6316 (US toll-free) or
JPMorgan, High Yield Capital Markets, at (212) 270-3994
(collect).
About Cadmus Communications
Headquartered in Richmond, Virginia, Cadmus Communications Corp.
provides end-to-end integrated graphic communications and
content processing services to professional publishers, not-for-
profit societies, and corporations. Its annual revenue is
approximately US$450 million. It has operations in the US,
India and the Caribbean Rim.
About Cenveo
Headquartered in Stamford, Connecticut, Cenveo, Inc., is one of
North America's leading providers of print and visual
communications, with one-stop services from design through
fulfillment. The company's broad portfolio of services and
products include commercial printing, envelopes, labels,
packaging and business documents delivered through a network of
production, fulfillment and distribution facilities throughout
North America. Cenveo Corp. is Cenveo Inc.'s wholly owned
subsidiary.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 16, 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on Cenveo Inc. and assigned its
bank loan and recovery ratings to subsidiary Cenveo Corp.'s
proposed US$925 million senior secured credit facility. The
facility was rated 'B+' (at the same level as the corporate
credit rating on Cenveo) with a recovery rating of '2',
indicating the expectation for substantial (80%-100%) recovery
of principal in the event of a payment default. At the same
time, Standard & Poor's removed all ratings from CreditWatch.
The outlook is positive.
As reported in the Troubled Company Reporter-Latin America on
Feb 14, 2007, Moody's Investors Service confirmed the B1
corporate family rating of Cenveo Corp. and assigned a Ba3
rating to its proposed senior secured bank facility intended to
fund the acquisition of Cadmus Communications Corp. for
approximately US$430 million. Moody's also changed LGD
assessments on Cenveo debt securities to reflect the proposed
liability structure in accordance with our Loss Given Default
Methodology and confirmed all other existing Cenveo ratings.
Moody's said the ratings outlook is negative.
=============
U R U G U A Y
=============
* URUGUAY: State Bank to Provide US$100MM Funding to 40 Projects
----------------------------------------------------------------
The Uruguayan government said in a statement that state-run bank
Banco Republica will provide US$100 million to 40 projects.
Business News Americas relates that the private sector will also
make US$250 million in investments for the projects.
The report says that about 65% of the projects are related to
industrial sectors:
-- energy,
-- food and drink, and
-- wood and plastic manufacturing.
BNamericas states that 35% the projects are in sectors:
-- transport,
-- restaurants,
-- hotels,
-- tourism, and
-- healthcare.
* * *
On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.
* URUGUAY: Will Resume Pulp Mill Talks with Argentina in April
--------------------------------------------------------------
Uruguay will resume negotiations with Argentina at the end of
April in Spain to resolve the pulp mill conflict, reports say,
citing Argentine sources.
Merco Press relates that the meeting of Uruguayan and Argentine
government representatives in March was postponed, as requested
by Argentina.
According to reports, King Juan Carlos of Spain will join the
discussion.
As reported in the Troubled Company Reporter-Latin America on
Feb. 2, 2007, Juan Antonia Yanez Barnueo, Spain's envoy
ambassador to mediate between Argentina and Uruguay's pulp mill
construction dispute, met with Argentine Foreign Affairs
Minister Jorge Taiana for a third round of talks. He then met
with Uruguayan Foreign Affairs Minister Reinaldo Gargano to
discuss the conflict and come up with a possible solution. The
neighboring countries are at odds over the construction of two
pulp mills along their river border. The Argentine government
and environmental groups are protesting the mills' alleged
adverse effect on marine life at their river border. Uruguay
argued that studies have been made ascertaining the safety of
the river habitat and measures would be taken to ensure that the
mills wouldn't pollute the river. Argentina also claims Uruguay
violated the 1975 Statute of the River Uruguay, which states
that all issues concerning the river must be agreed upon by the
two nations. The matter has been brought to the International
Court of Justice at The Hague. A preliminary ruling was issued
in favor of Uruguay. The ruling, along with a financing from
the World Bank, renewed a series of protests and blockades of
access roads leading to Uruguay. Argentina expressed "its full
willingness" to dialogue with Uruguay in order to find a
solution to their dispute. The possible solutions to the
dispute are:
-- construction of a 30-km long pipeline
down the River Uruguay through which, the
wastes coming from the mills would be
pumped;
-- reshaping to help limit the plant visual
contamination (huge chimney) from the
Argentine side; and
-- construction of an additional drain that
be jointly financed by Argentina, Uruguay
and Spain.
However, Argentine sources commented to Merco Press, "There's a
wing of the Uruguayan government that is against going to Madrid
to dialogue with Argentina while the blockades are on, but the
Foreign Affairs ministry line has been that dialogue does not
mean negotiations."
Meanwhile, the works on the Botnia pulp mill went on. The first
hydraulic tests were already been conducted, Merco Press states.
* * *
On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Oil Supply to U.S. Continues to Slow
------------------------------------------------------------
In keeping with Venezuelan President Hugo Chavez's threat of
cutting oil supplies to the United States, state oil firm
Petroleos de Venezuela reported a drop in supplies of 45% in
2006.
The Latin American nation diverted oil supplies to its neighbors
in the region and in the Caribbean. These new recipients of
Venezuelan oil received 30% to 36% of the company's total
exports, followed by Europe at 7% to 12%. Asia and the rest of
the world held the remaining 7%, El Universal says
El Universal highlights that while the United States pays in
cash, those deliveries in the Latin American region are governed
by the PetroCaribe initiative -- a program that provides member
nations with oil at preferential terms, normally 60% of the
payment is payable in 20 years.
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 March 12, 2007, Standard & Poor's Ratings
Services raised its long-term foreign currency corporate credit
rating on Petroleos de Venezuela S.A. or PDVSA to 'BB-' from
'B+'. S&P said the rating was removed from CreditWatch.
* VENEZUELA: Hugo Chavez to Supply Gas for Jamalco Expansion
------------------------------------------------------------
Venezuela's President Hugo Chavez has offered to supply the gas
needed by Jamaica to expand its Jamalco alumina company and to
support the development of bauxite mining, Business News
Americas reports. Both governments signed a memorandum of
understanding.
Mr. Chavez told state news agency ABN that within the framework
of Alba [the Venezuelan trade and cooperation model] they need
assistance to maintain bauxite mining.
BNamericas relates that Alcoa disclosed that it has not
completed its planned two-phase project under Jamalco expansion
due to lack of natural gas supply. The second part of the
project, BNamericas says, was dependent on deals to bring
liquefied natural gas -- LNG -- to Jamaica and the refinery in
order to have cleaner and less expensive power available.
According to Trinidad & Tobago's state-owned National Gas
Company, Jamaica would be supplied with LNG but only after 2009.
As a result, Alcoa won't be able to consider completing the
US$1.2 billion Jamalco expansion.
Jamalco, owned in equal parts by Alcoa and the Jamaican
government, mines bauxite and refines it into alumina. If the
full expansion proceeds, Alcoa's stake would rise to about 80%,
BNamericas adds.
* * *
As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses. For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion. The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Shareholders Total
Equity Assets
Company Ticker (US$MM) (US$MM)
------- ------ ------------ -------
Arthur Lange ARLA3 (8.88) 56.71
Kuala ARTE3 (33.57) 11.86
Bombril BOBR3 (781.53) 473.67
Chiarelli SA CCHI3 (58.72) 36.44
CIC CIC (1,883.69) 22,312.12
Telefonica Hldg CITI (1,481.31) 307.89
Telefonica Hldg CITI5 (1,481.31) 307.89
SOC Comercial PL COME (738.69) 456.86
DTCOM Dir to Co DTCY3 (6.05) 10.04
Aco Altona EALT3 (64.92) 92.96
Estrela SA ESTR3 (63.08) 112.36
F Guimaraes FGUI3 (224.56) 24.63
Bombril Holding FPXE3 (1,064.31) 41.97
CIMOB Partic SA GAFP3 (44.38) 121.74
Gazola GAZO3 (44.13) 22.28
Hercules HETA3 (233.64) 33.23
DOC Imbituba IMBI3 (19.84) 192.80
IMPSAT Fiber Networks IMPTQ (17.16) 535.01
Kepler Weber KEPL3 (22.20) 478.81
Minupar MNPR3 (83.99) 62.75
Wetzel SA MWET3 (21.35) 116.85
Nova America SA NOVA3 (266.34) 42.47
Paranapanema SA PMAM3 (53.36) 3,268.96
Paranapanema-PREF PMAM4 (53.36) 3,268.96
Telebras-CM RCPT RCTB30 (59.79) 228.35
Schlosser SCLO3 (55.17) 51.93
Teka TEKA3 (236.45) 540.81
Telebras SA TELB3 (59.79) 228.35
Telebras-CM RCPT TELE31 (59.79) 228.35
Telebras SA TTLBRON (59.79) 228.35
Tectoy TOYB3 (51.84) 18.72
Tec Toy SA-Pref TOYB5 (51.84) 18.72
Tec Toy SA-PF B TOYB6 (51.84) 18.72
Tectoy SA TOYBON (51.84) 18.72
Texteis Renaux TXRX3 (65.19) 75.90
Varig SA VAGV3 (8,194.58) 2,169.10
Fer C Atlant VSPT3 (171.69) 1,940.75
Weist WISA3 (107.73) 92.66
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
delos Santos, Christian Toledo, and Junald Ango, Editors.
Copyright 2076. All rights reserved. ISSN 1529-2746.
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