/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070323.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, March 23, 2007, Vol. 8, Issue 59 Headlines A R G E N T I N A AGROPECUARIA SUDESTE: Claims Verification Is Until April 26 ARROW ELECTRONICS: Agilysys Owners OK KeyLink Systems Takeover COEUR D'ALENE: Builds New Mill in Argentina to Boost Production DISTRIBUIDORA ENERGY: Trustee Verifies Claims Until June 5 KONINKLIJKE AHOLD: Names Carl Schlicker as Giant-Carlisle CEO PETROLEO BRASILEIRO: Argentine Energy Prices Impede Investment VALEANT PHARMA: Peter Blott Replaces Bary Bailey as CFO * ARGENTINA: Bolivia May Not Fulfill Gas Export Pact with Nation B E L I Z E * BELIZE: Sugar Quota for Euro Market Increased by 20 Percent B E R M U D A REFCO INC: Administrators Want Protocol on 140 Related Claims B O L I V I A * BOLIVIA: May be Unable to Meet Gas Export Pact with Argentina * BOLIVIA: Seeks to Replace Private Pension System B R A Z I L AMRO REAL: Parent Firm Launches Merger Talks with Barclays BANCO NACIONAL: Board Approves BRL187.3-Mil. Loan to Grupo Pao BANCO SAFRA: Fitch Assigns BB+ Rating on US$200MM Proposed Notes BENQ CORP: Detains Head on Alleged Insider Trading Activities BENQ CORP: Probe Has No Immediate Impact on Ratings, TRC Says GERDAU SA: Names Deloitte Touche as Independent Auditing Firm ITRON INC: S&P Keeps BB- Corp. Credit Rating on CreditWatch METSO OYJ: Supplies Handling Equipment to Bateman Africa PETROLEO BRASILEIRO: Aims to Lead LatAm Energy Sector by 2015 PETROLEO BRASILEIRO: Joint Venture with PDVSA to Start by 2011 PETROLEO BRASILEIRO: Loses 188,000 Barrels Due to Labor Strike TELE NORTE: Fails to Get Regulator Okay on Way Brasil Purchase TOWER AUTO: Wants to Make Initial Payment in ERISA Settlement TOWER AUTOMOTIVE: Wants Avoidance Actions Protocol Established TOWER AUTOMOTIVE: Wants Deutsche Bank's 2nd Lien L/Cs Extended TRW AUTOMOTIVE: Considers Payment on Tender Offers for Sr. Notes C A Y M A N I S L A N D S HAPPY RICE: Will Hold Final Shareholders Meeting on May 31 LEAHLON HOLDINGS: To Hold Last Shareholders Meeting on April 23 MAVERICK LONG: Final Shareholders Meeting Is on May 31 NIRVANA PACIFIC: Proofs of Claim Filing Deadline Is April 27 NIRVANA PACIFIC: Sets Last Shareholders Meeting for April 27 C H I L E FREEPORT-MCMORAN: Fitch Rates Mandatory Pref. Stock Issue at B+ GOODYEAR TIRE: Refinancing Principal Credit Facilities REVLON CONSUMER: Dec. 31 Balance Sheet Upside-Down by US$1.22B C O L O M B I A GRAN TIERRA: Drills New Guayuyaco Well with Solana Resources * COLOMBIA: Zuluaga Says Biofuel Dev. To Help End Oil Dependency * COLOMBIA: Gov. Agencies Ink Mining Pact with Comptroller Gen'l C O S T A R I C A * COSTA RICA: Recope Completes Ethanol Pilot Project D O M I N I C A N R E P U B L I C AES CORPORATION: Keller Rohrback Probes Claims Against Officers CERVECERIA NACIONAL: S&P Puts B+ Rating on US$150-Million Debt E C U A D O R BANCO DEL PICHINCHA: Seeks to Increase Profits by 25% in 2007 PETROECUADOR: Raises Operations & Investments Budget to US$2.65B E L S A L V A D O R ALCATEL-LUCENT: Inks Submarine Cable Network Deal with EASSy G U A T E M A L A BRITISH AIRWAYS: EU Court Upholds EUR6.8-Mln Fine Imposed by EC H A I T I * HAITI: To Get 14,000 Barrels of Crude Per Day from Venezuela H O N D U R A S LEAR CORP: Faces Lawsuits Over US$2.31-Bln Sale to Carl Icahn J A M A I C A GOODYEAR TIRE: Inks Tentative Pact with United Steelworkers M E X I C O ADVANCE FOOD: S&P Affirms Ratings After Increasing Term Loans ADVANCED MARKETING: Can Pay Employees Under Retention Bonus Plan ADVANCED MARKETING: Hires Houlihan Lokey as Investment Banker AMERICAN TOWER: Ronald M. Dykes Joins Board of Directors AMR CORP: Dec. 31 Balance Sheet Upside-Down by US$606 Million BEARINGPOINT INC: Lenders Extend Waiver Until March 30 DISTRIBUTED ENERGY: Losses Cue PwC to Raise Going Concern Doubt KANSAS CITY SOUTHERN: Unit to Build San Luis Railway Terminal SHILOH INDUSTRIES: Discloses Unfavorable Results of Litigation N I C A R A G U A XEROX CORP: Launches Latest Ads to Increase Consulting Services P A N A M A CABLE & WIRELESS: Inks MOU with CCT Global CHIQUITA: Moody's Says Plea Agreement Won't Affect Ratings Yet * PANAMA: Fitch Says Weak Regulations Hamper Region's Growth P A R A G U A Y * PARAGUAY: Pres. Says Part of Reserves to Go to South Bank P E R U NUTRO PRODUCTS: S&P Says Product Recall Won't Affect B- Rating P U E R T O R I C O ALLIED WASTE: S&P Puts BB Rating on US$3.17B Sr. Sec. Bank Debt FRANCISCO MENDOZA: Case Summary & 40 Largest Unsecured Creditors GLOBAL HOME: Hires Johnson Associates as Compensation Advisor GLOBAL HOME: Court Extends Removal Period Deadline to July 15 STANDARD MOTOR: Secures New Revolving Credit Facility V E N E Z U E L A PEABODY ENERGY: Creates New Positions in China Office PETROLEOS DE VENEZUELA: JV with Petrobras to Operate by 2011 PETROLEOS DE VENEZUELA: Plant to Undergo Engineering Work * VENEZUELA: Dominica May Reject Nation's Plant Project Offer * VENEZUELA: Monagas Sues Foreign Firms for Tax Payment Default * VENEZUELA: Rejects IADB's Mass Biofuel Production Proposal * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= AGROPECUARIA SUDESTE: Claims Verification Is Until April 26 ----------------------------------------------------------- Ricardo Jorge Randrup, the court-appointed trustee for Agropecuaria Sudeste S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until April 26, 2007. Mr. Randrup will present the validated claims in court as individual reports on June 11, 2007. Buenos Aires' Civil and Commercial Tribunal in Mar del Plata will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Agropecuaria Sudeste 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 Agropecuaria Sudeste's accounting and banking records will be submitted in court on July 24, 2007. Mr. Randrup is also in charge of administering Agropecuaria Sudeste's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Agropecuaria Sudeste S.A. Avda Luro 8568 Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Ricardo Jorge Randrup Ortiz de Zarate 6450 Mar del Plata Buenos Aires, Argentina ARROW ELECTRONICS: Agilysys Owners OK KeyLink Systems Takeover -------------------------------------------------------------- Agilysys Inc. shareholders have approved the proposed sale of KeyLink Systems Group to Arrow Electronics Inc. for US$485 million in cash. The company also received clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. "With the approval by the Agilysys shareholders and Hart-Scott- Rodino clearance, we remain on schedule to close this transaction at the end of the current quarter," said William E. Mitchell, chairman, president, and chief executive of Arrow Electronics. "We are excited about the significant cross-selling opportunities this partnership will bring to further accelerate our growth in the global enterprise computing solutions distribution market. We will become the leading distributor of enterprise products for both International Business Machines Corporation and Hewlett-Packard Company, as well as a leading value-added distributor of storage and software." About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. The company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands, United Kingdom, Argentina, Brazil, Mexico, Australia, China, Hong Kong, Korea, Philippines and Singapore. * * * Arrow Electronics carries Fitch's 'BB+' issuer default rating. The Company's senior unsecured notes and senior unsecured bank credit facility also carry Fitch's 'BB+' rating. The rating outlook is positive. COEUR D'ALENE: Builds New Mill in Argentina to Boost Production --------------------------------------------------------------- Coeur d'Alene Mines Corp. will construct a flotation mill at its Martha mine in the province of Santa Cruz, Argentina, at a cost of US$13.9 million. The design of the mill would accommodate annual silver production of as much as 3 million ounces. Completion is expected by the end of the year. The company's continued success in expanding the high-grade reserves and resources at Martha, as well as the mine's significant exploration upside, are key reasons for deciding to create a standalone operation at Martha. As previously announced, Martha reported a 50 percent increase in proven and probable silver mineral reserves as of the end of 2006 as compared to 2005. In 2006, the average grade of proven and probable silver mineral reserves also increased, to more than 61 ounces of silver per ton, which ranks among the world's highest silver grades. Additionally, in 2006, the company acquired interests in four highly prospective silver-gold exploration properties in Santa Cruz and has budgeted more than US$4.6 million for exploration in Santa Cruz in 2007. The mill also will enable Martha to reduce its cash operating cost by processing ore on site. Currently, Martha's ore is processed at the company's Cerro Bayo facilities in Chile. In 2006, Martha produced approximately 2.7 million ounces of silver and more than 3,400 ounces of gold. Dennis E. Wheeler, Coeur's Chairman, President, and Chief Executive Officer, said, "Not only does the mill create value for the company, but it will provide new jobs and generate positive economic activity in the region, where mining continues to be of growing importance. In addition, we are particularly pleased and grateful to have the support of the provincial government and federal mining authorities as we begin to move forward with this project." Coeur originally acquired Martha in 2002 for US$2.5 million. Since that time, the company has mined more than 9.5 million ounces of silver there. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poors' B- rating. DISTRIBUIDORA ENERGY: Trustee Verifies Claims Until June 5 ---------------------------------------------------------- Lia Stella Maris Alvarez, the court-appointed trustee for Distribuidora Energy Drinks de Argentina S.A.'s reorganization proceeding, verifies creditors' proofs of claim until June 5, 2007. Buenos Aires' Civil and Commercial Tribunal approved a petition for reorganization filed by Distribuidora Energy, according to a report from Argentine daily Infobae. Ms. Alvarez will present the validated claims in court as individual reports on July 7, 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 that will be raised by Distribuidora Energy 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 Distribuidora Energy's accounting and banking records will be submitted in court on Sept. 12, 2007. The informative assembly will be held on Dec. 3, 2007. Creditors will vote to ratify the completed settlement plan during the said assembly. The city's Clerk No. 37 assists the court on the case. The debtor can be reached at: Distribuidora Energy Drinks de Argentina S.A. Migueletes 1717 Buenos Aires, Argentina The trustee can be reached at: Lia Stella Maris Alvarez Cerrito 146 Buenos Aires, Argentina KONINKLIJKE AHOLD: Names Carl Schlicker as Giant-Carlisle CEO ------------------------------------------------------------- Koninklijke Ahold N.V. has appointed Carl Schlicker as new chief executive officer of Giant-Carlisle/Tops. He takes over from Tony Schiano, who retired recently. Mr. Schlicker has experience in many areas of the company -- especially marketing and sales. In his new role, Mr. Schlicker will be responsible for Giant Food Stores' 24,000 employees and 143 stores in four states in the U.S.A. Mr. Schlicker will report directly to Larry Benjamin, Chief Operating Officer of Ahold U.S.A. After graduating with a Business Administration degree, Mr. Schlicker joined Pathmark Supermarkets. During the next 11 years, he held several management positions including store manager. In 1986, Mr. Schlicker joined First National Supermarkets (later Edwards Super Food Stores) as a store manager. His assignments included Produce Supervisor, District Manager, Director of Operations, Director of Advertising, and Regional Vice President. In 1998, Mr. Schlicker transferred to Giant Food Stores as Executive Vice President of Store Operations. In May 2000, he was promoted to Executive Vice President of Sales and Marketing, with responsibility for advertising, marketing, procurement, and category management for Giant Food Stores and Tops Markets. About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe. It has operations in Argentina. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * As reported on Dec. 22, 2006, Standard & Poor's Ratings Services revised its outlook on the Dutch food retailer and food service distributor Koninklijke Ahold N.V. to positive from stable. At the same time, the 'BB+/B' long- and short-term corporate credit ratings were affirmed. Moody's Investors Service and Standard and Poor's has assigned low-B ratings to the company's 5.625% senior notes due 2007. Also, the company's 5.875% senior unsubordinated notes due 2008 and 6.375% senior unsubordinated notes due 2007 carry Moody's, S&P's and Fitch's low-B ratings. PETROLEO BRASILEIRO: Argentine Energy Prices Impede Investment -------------------------------------------------------------- Brazilian state-owned oil firm Petroleo Brasileiro SA told Reuters that energy prices in Argentina hamper investment in the sector, as they don't reflect scarcity of products like oil derivatives and natural gas. Reuters relates that Petroleo Brasileiro Chief Executive Jose Sergio Gabrielli called for changes in Argentina's pricing system. The Argentine government has "de facto" control over energy prices, the report says. According to Reuters, most of Petroleo Brasileiro's foreign production comes from Argentina, where it is actively operating Petrobras Energia after acquiring Perez Companc in 2003. Mr. Gabrielli told Reuters, "We believe that the price system is not a system that could stimulate much investment. We believe that there is a need for some changes in the sector, especially in the area of derivatives and also natural gas so that they can convey more adequately signals of relative scarcity of these products." Petroleo Brasileiro was worried on the decreasing oil and natural gas reserves in Argentina, which called for additional investment, Reuters notes, citing Mr. Gabrielli. Energy analysts confirmed to Reuters the shortage of gas and electricity in Argentina, as supply didn't rise as much as the robust economic growth of the past few years. 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. VALEANT PHARMA: Peter Blott Replaces Bary Bailey as CFO ------------------------------------------------------- Valeant Pharmaceuticals International reported the resignation of its chief financial officer, Bary G. Bailey. Mr. Bailey joined the company in 2002 to work on its restructuring after the removal of the former management team. Consistent with succession planning discussions with the board of directors, Peter J. Blott, ACA, the company's group financial controller, has been appointed chief financial officer. Mr. Bailey will remain with the company through May 31, 2007, to assist with transition matters. Timothy C. Tyson, president and chief executive officer, said, "On behalf of the board of directors and the Valeant management team, I want to thank Bary for his outstanding contributions to the company over the past four years. He has guided us through some very complex financial issues and we will all miss his leadership and counsel. We wish Bary well in his future endeavors. At the same time, we are very excited to appoint Peter to this critical role. I have known Peter for many years and his financial expertise and industry background will serve the company well now and into the future." Mr. Blott is a member of the Valeant management team and has worked closely with Messrs. Bailey and Tyson and the board of directors since joining the company in 2003. He currently oversees all group financial information, including consolidation and financial reporting, operations finance, accounting shared services, and all planning, budgeting and forecasting activities. Prior to joining Valeant, Mr. Blott held several senior finance positions for Otsuka Pharmaceuticals Europe Ltd. and GlaxoSmithKline. Mr. Blott began his career at PriceWaterhouseCoopers in London where he qualified as a Chartered Accountant. He graduated with a BA (Hons) in Economics and Law from the University of Newcastle-upon-Tyne. Headquartered in Costa Mesa, California, Valeant Pharmaceuticals International (NYSE:VRX) -- http://www.valeant.com/is a research-based specialty pharmaceutical company that discovers, develops, manufactures and markets products primarily in the areas of neurology, infectious disease and dermatology. The company has offices in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2007, Standard & Poor's affirmed its ratings on Costa Mesa, California-based Valeant Pharmaceuticals International, including the 'B+' corporate credit rating. The ratings were removed from CreditWatch, where they were placed with negative implications Oct. 24, 2006, to reflect the ongoing uncertainty at that time regarding the company's inability to file its Form 10-Q for the third quarter and the possibility that all of its debt obligations would have been accelerated. * ARGENTINA: Bolivia May Not Fulfill Gas Export Pact with Nation ---------------------------------------------------------------- Bolivia is at risk of not fulfilling its gas export accord with Argentina due to delays in finalizing the 44 contracts signed with oil companies, Manuel Morales Olivera, Bolivian state-owned oil firm Yacimientos Petroliferos Fiscales de Bolivia's head, told government news agency Agencia Boliviana de Informacion. As reported in the Troubled Company Reporter-Latin America on Feb. 6, 2007, Yacimientos Petroliferos said that the 44 contracts it signed in October 2006 with 12 oil companies as part of President Evo Morales' nationalization plan will not come into effect until adequate technical/legal conditions can be guaranteed. Yacimientos Petroliferos said that it must sign the contracts with the legal representatives from each company. The contracts must also be notarized. Business News Americas relates that Yacimientos Petroliferos and its Argentina counterpart Enarsa signed an accord in October to increase gas export volumes from 4.5 million cubic meters per day to: -- 7.7 million cubic meters per day in 2007, -- 16 million cubic meters per day for 2008 and 2009, and -- 27.7 million cubic meters per day from 2010 to 2026. Mr. Olivera told BNamericas that the delay puts the investment process at risk. As a result, it makes gas supply to Argentina in 2010 and 2011 uncertain. The Bolivian senate is still studying the "short law," which would correct 15 flawed contracts. Once ratified, the 44 contracts would have to pass through the Bolivia's lower and upper houses, 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 =========== B E L I Z E =========== * BELIZE: Sugar Quota for Euro Market Increased by 20 Percent ------------------------------------------------------------- Belize's sugar supply quota to the European market has been increased by about 8,000 tons or 20%. The increase came as a result of St. Kitts cessation of production, the Caribbean PressReleases.com reports. At a Special Meeting of Ministers of the African Caribbean and Pacific countries, the member-nations decided to reallocate the quota equally between Belize and Guyana. Belize is happy with the decision. "This decision is the culmination of a year long struggle to persuade the ACP countries that having on several previous occasions ceded quota shortfalls to their African colleagues the CARICOM nations had to keep this vital access within the newly established Caribbean Single Market. The final agreement was a welcome expression of solidarity amongst ACP sugar producers and halts a growing transfer from the Caribbean of long standing commodity trading benefits," Belize's Hon. Eamon Courtenay said. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 22, 2007, Standard & Poor's Ratings Services raised its long- and short-term foreign currency sovereign credit ratings on Belize to 'B' from 'SD' following the completion of the government's debt restructuring. At the same time, Standard & Poor's raised its long-term local currency sovereign credit rating on Belize to 'B' from 'CCC+' and its short-term local currency sovereign rating to 'B' from 'C'. The outlooks on both the long-term foreign and local currency sovereign credit ratings are stable. Standard & Poor's also assigned its 'B' rating to Belize's new US$546.8 million step-up bonds due Feb. 20, 2029, issued at the conclusion of the debt exchange. These bonds bear the interest of 4.25% for the first three years, 6% for years four to five, and 8.5% thereafter, and start amortizing in 2019. ============= B E R M U D A ============= REFCO INC: Administrators Want Protocol on 140 Related Claims ------------------------------------------------------------- RJM, LLC, the duly appointed administrator of Refco, Inc.'s Chapter 11 case, and Marc S. Kirschner, the duly appointed administrator and Chapter 11 Trustee of Refco Capital Markets, Ltd.'s estate, ask the U.S. Bankruptcy Court for the Southern District of New York to treat approximately 140 claims as Related Claims in accordance with the Plan. The Plan Administrators assumed the rights, powers, and duties of the Reorganized Debtors and RCM upon the Plan Effective Date. Under the Reorganized Debtors' chapter 11 Plan, a creditor is entitled to recover on its claim from its primary debtor obligor. Other claims arising from the same facts, transactions or occurrences giving rise to the creditor's claim are deemed "Related Claims" and are subordinated under the Plan. The claimholders are not entitled to a distribution on account of those claims unless and until all Allowed General Unsecured Claims against the applicable Reorganized Debtor or RCM, have been paid in full. After reviewing the Reorganized Debtors' books and records, the Plan Administrators have identified approximately 140 Related Claims, with underlying claims asserted against each claimant's primary obligor. The Related Claims include: Primary Related Claimant Case No. Claim No. Case No. Claim No. -------- -------- --------- -------- --------- Alternative Investments 018 9198 262 9172 Fund, Ltd. Banesco Holding CA 018 10125 023 10546 Fimex International 018 5750 029 9288 Limited IDS Managed Fund LLC 018 9352 261 14417 Lebo Capital 018 12289 262 12261 Management LLC NBK Investment, Ltd. 018 10221 262 10194 Nikko Futures Fund 018 10015 020 10017 Reserve Invest 018 11392 006 11391 (Cyprus) Limited Rietumu Banka 018 11383 027 11380 RPM Risk & Portfolio 018 9568 007 9561 Management AB TAU 28 Fund Ltd. 018 9420 023 9404 A complete list of the Related Claims is available at no charge at http://ResearchArchives.com/t/s?1bc1 Mark W. Deveno, Esq., at Bingham McCutchen LLP, in New York, asserts that proper treatment of the Related Claims is necessary to ensure that distributions are properly calculated within the terms of the Plan. 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) ============= B O L I V I A ============= * BOLIVIA: May be Unable to Meet Gas Export Pact with Argentina --------------------------------------------------------------- Manuel Morales Olivera, Bolivian state-owned oil firm Yacimientos Petroliferos Fiscales de Bolivia's head, told government news agency Agencia Boliviana de Informacion that Bolivia is at risk of not fulfilling its gas export accord with Argentina due to delays in finalizing the 44 contracts signed with oil companies. As reported in the Troubled Company Reporter-Latin America on Feb. 6, 2007, Yacimientos Petroliferos said that the 44 contracts it signed in October 2006 with 12 oil companies as part of President Evo Morales' nationalization plan will not come into effect until adequate technical/legal conditions can be guaranteed. Yacimientos Petroliferos said that it must sign the contracts with the legal representatives from each company. The contracts must also be notarized. Business News Americas relates that Yacimientos Petroliferos and its Argentina counterpart Enarsa signed an accord in October to increase gas export volumes from 4.5 million cubic meters per day to: -- 7.7 million cubic meters per day in 2007, -- 16 million cubic meters per day for 2008 and 2009, and -- 27.7 million cubic meters per day from 2010 to 2026. Mr. Olivera told BNamericas that the delay puts the investment process at risk. As a result, it makes gas supply to Argentina in 2010 and 2011 uncertain. The Bolivian senate is still studying the "short law," which would correct 15 flawed contracts. Once ratified, the 44 contracts would have to pass through the Bolivia's lower and upper houses, BNamericas states. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 * BOLIVIA: Seeks to Replace Private Pension System -------------------------------------------------- A draft bill for pension reform, which proposes the replacement of Bolivia's private pension system with a new state-run scheme, will be presented to President Evo Morales next week, local daily Los Tiempos reports. Los Tiempos underscores that a pension reform commission is preparing the draft bill. Business News Americas relates that Bolivia had a "pay-as-you- go" pension system until a private "defined-contribution" system was adopted in 1996. The private system has two pension fund managers: -- BBVA Prevision, owned by Spain's BBVA; and -- Futuro de Bolivia, owned by Swiss group Zurich. Statistics from pension, securities and insurance watchdog SPVS indicated that the pension fund managers reported BOB18.5 billion in assets under management in January 2006, BNamericas states. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 =========== B R A Z I L =========== AMRO REAL: Parent Firm Launches Merger Talks with Barclays ---------------------------------------------------------- ABN Amro, Brazilian Banco ABN Amro Real's Dutch parent, has launched merger negotiations with Barclays Plc, Business News Americas reports. According to BNamericas, analysts differ as to what Barclays will do with Amro Real if it eventually acquires ABN Amro. Rodrigo Margela, an investment analyst at ARX Capital Management, told BNamericas, "Barclays is interested in entering emerging markets as they've shown in India. All signs point to Barclays holding on to ABN Amro Real." However, Mr. Margela said that Banco Itau Holding Financeira will be the likely buyer if Barclays decides to sell Amro Real, BNamericas notes. He said that Banco Itau wants more exposure to corporate and consumer lending. HSBC or Spain's Santander would also be interested in acquiring ABN Amro to boost exposure in the local market. HSBC would double the size of retail operations in Brazil, probably rising to third in terms of total assets, BNamericas says, citing Mr. Margela. Mr. Margela told BNamericas that if negotiations between Barclays and ABN Amro fail, the latter could sell off units outside Europe to boost shareholder value, attracting interest from: -- Banco Itau, -- Banco Bradesco, -- HSBC, and -- Santander. ABN Amro Real would be a key asset in the consolidation of the Brazilian financial market, BNamericas notes, citing Mr. Margela. Mr. Margela told BNamericas, "However, everybody said Bank of America [BofA; NYSE: BAC] would sell [BankBoston Brasil] right away when it bought FleetBoston, but it took them a couple of years to decide. At the end of the day, maybe Barclays will sell [ABN Amro Real], but it doesn't look like it." Celso Boin, an investment strategist at brokerage Link Corretora commented to BNamericas that if Barclays establishes retail operations in Brazil, competition will increase in the local banking sector. However, if Barclays decides to sell, the sector will see more consolidation and less competition. "Acquisitions in Brazil are worth more and more each time. Maybe Barclays could negotiate a good price," Mr. Boin told BNamericas. For Mr. Boin, Banco Bradesco would be the most likely buyer if Barclays decides to sell Amro Real, BNamericas says. He stated that with interest rates falling, banks want to increase their credit portfolios and ABN Amro Real would be very interesting. BNamericas emphasizes that Banco Bradesco would also like to increase its exposure among higher-income customers like Amro Real account holders, especially after Banco Itau acquired BankBoston Brasil in May 2006. "That's another motive for Bradesco to be more aggressive. They're interested in the segment and that's why they bought Amex operations in Brazil last year [for US$490 million]," Mr. Boin told BNamericas. However, Mr. Boin thought that it was less likely HSBC or Santander would want to purchase Amro Real, according to BNamericas. Mr. Boin explained to BNamericas that competition in the European and Asian markets are tight. Banco Safra analyst Victor Martins told BNamericas that there could be some "overlap" if a local bank bought Amro Real. Meanwhile, Fitch Ratings reports that Barclays could find ABN Amro's Brazilian operations attractive. However, the acquisition talks had no immediate impact on either bank's ratings. ABN Amro Real specializes in commercial banking, capital markets, corporate banking, asset management, and trade finance. Its more than 22,000 employees assist over five million clients throughout five thousand different points of sales. In 1999, the bank merged with Brazil's Banco Real. The regional office for Latin America and the Caribbean is located in Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Sept 4, 2006, Moody's Investors Service upgraded Banco ABN AMRO Real S.A.'s long-term foreign currency deposits to Ba3, from B1. Moody's said the rating outlook is stable. BANCO NACIONAL: Board Approves BRL187.3-Mil. Loan to Grupo Pao -------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES' Board of Directors approved a BRL187.3 million financing to Companhia Brasileira de Distribuicao -- CBD -- Grupo Pao de Acucar. The resources are directed to the expansion and modernization of its store network, in several states of Brazil, some of which already in its course. The objective is to open 15 stores and repair 122 others, which backs up the generation forecast of 2 thousand direct jobs and 3.2 thousand indirect ones. BNDES's support equals to 47% of the total investments, which amounts to BRL398.7 million. The new stores are located in the States of Sao Paulo, Rio de Janeiro, Federal District, Pernambuco and Piaui. The repairs will result in layout improvements and innovations, change in the facades and floors, sales area resizing and equipment modernization. CBD began its operations in 1948, in Sao Paulo, with Doceira Pao de Acucar - -Pao de Acucar Pastry Shop -- controlled by the Diniz Family and, in 1959, opened its first supermarket. In 1995, the company opened its capital, with simultaneous share placement in Brazil, United States and Europe. In 1997, it became the fourth Brazilian company and the first in the Brazilian retail sector with negotiable shares at the New York Stock Market. In 1999, the French group Casino became a minority partner of the company. In 2004, it executed a joint venture with Banco Itau, in order to operate in the structuring and commercialization of financial products and services for CBD's clients. The corporate restructuring, which resulted in the sharing of the corporate control between Ab�lio Diniz (50%) and the Casino Group (50%) through its current holding Wilkes, occurred in 2005. In that year, the group reached gross revenue of BRL16.1 billion, becoming the biggest supermarket's network in Brazil. Since 2004, BNDES has already financed BRL1 billion, through its Department of Commerce, Services and Tourism. For this year, it is expected to reach BRL700 million, which would lead the disbursements to almost BRL2 billion in four years. The information comprehends the support given by BNDES to the retail network (supermarket, department stores, malls, bookstores, drugstores, fuel commerce and vehicle-related products). The contemplated sectors are tourism, services, publishing companies and print shops. This department's project portfolio is currently composed of 77 contracted operations, which amount to BRL2.47 billion, and 24 other operations in analysis, amounting BRL2.78 billion. 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 SAFRA: Fitch Assigns BB+ Rating on US$200MM Proposed Notes ---------------------------------------------------------------- Fitch has assigned an expected local currency rating of 'BB+' to the proposed unsecured and unsubordinated issuance of Banco Safra S.A., acting through its Cayman Branch, of the Brazilian Real or BRL equivalent to US$200 million due in 2017. The notes are payable in US dollars and will rank pari passu with Banco Safra's other senior unsecured external debt obligations; principal will be due at maturity, with interest payable semi-annually. The issuance is made under the bank's US$3 billion global medium-term note program. While the notes are payable in US dollars, the notes will carry a local currency rating as the issue is an amount fixed at the BRL equivalent of US$200 million on issue date, with repayment of principal and interest based on that amount and the dollar amount to be paid at each payment date determined by the BRL/US$ exchange rate then in effect, transferring the potential exchange risk to the noteholders. In addition, should the issuer not be able to obtain dollars due to the imposition of foreign exchange constraints, noteholders may opt to receive payment in BRL; if noteholders decide to receive payment in foreign currency in the case of foreign exchange constraints being imposed, the resulting delay in receiving payment will not constitute an event of default. The rating reflects Banco Safra's Issuer Default Rating of 'BB+', based on its capacity to successfully anticipate and adapt to market changes and the volatility of the Brazilian economy. Fitch notes the bank's nimble management, solid knowledge of its borrowers, and unusually good controls on collateral flows. Banco Safra's foreign currency IDR is at Brazil's Country Ceiling. The banks's local currency IDR is higher than Brazil's sovereign rating ('BB'), reflecting Safra's consistent performance and balance sheet strength and management capacity. These qualities, which are taken into account in the bank's Individual rating of 'C', have allowed Safra to successfully manage through often-turbulent economic cycles. Banco Safra is wholly controlled by Joseph Safra, following the agreement, officially signed and approved by the Central Bank of Brazil in 2006, with his brother Moise Safra. The bank and its subsidiaries rank among the 10 largest banks in Brazil in terms of total assets as at Dec. 31, 2006, and are engaged in a broad range of commercial and corporate banking activities. The full branch in the Cayman Islands opened in May 1996 and is currently focused in the business of providing trade financing services in US Dollars and other currencies for the bank's corporate banking customers and functions as a funding vehicle for the bank in the international capital markets. At Dec. 31, 2006, the Banco Safra had total assets of approximately BRL55,390 million, total deposits of approximately BRL10,892 million and stockholders' equity of approximately BRL3,803 million, operating through a relatively small retail network of 92 full service branches, primarily concentrated in the City and State of Sao Paulo, as well as through 20 special detached mini branches located on site in the offices of the Bank's principal customers. The expected rating was based on preliminary information provided by the issuer. The rating assignment will be based on the analysis of the final documents to be provided by the issuer and might differ from the expected rating. Banco Safra S.A. is a notable and respected player in the Brazilian and international banking sector, ranking sixth among the country's largest private sector financial institutions in terms of total assets. The Bank is part of the larger Safra Group of banks and financial institutions. A full-service commercial bank, the company operates in all areas of the financial sector. Outside Brazil, the bank offers its large customer base a broad selection of international services. Through its major Brazilian subsidiaries, Safra Leasing, Safra Seguros S. A., Safra Distribuidora de Titulos e Valores Mobiliarios and Safra Corretora de Valores e Cambio Ltda., the bank's activities extend beyond traditional lending operations to leasing, securities underwriting, investment fund management, brokerage and insurance operations. The bank is also active in trade finance, asset management and treasury operations. BENQ CORP: Detains Head on Alleged Insider Trading Activities ------------------------------------------------------------- Taiwanese prosecutors raided BenQ's headquarter in Neihu and a factory in Taoyuan and detained its chief financial officer Eric Yu over alleged involvement in insider trading activities, various reports say. Taoyuan District Prosecutors' Office spokesman John Chang confirmed that it was Mr. Yu who was detained by the authorities after the raid, Taipei Times relates. Mr. Yu could be detained for up to four months before being charged, in accordance with Taiwan's legal system, the Times says. Prosecutors also questioned former Chief Financial Officer Alex Liou and Accounting Manager Billy Liu, on their suspected involvement in the scandal. Both were released on bail. Mr. Liou's bail was NT$5 million while Mr. Liu's bail was NT$2 million, BenQ said in a statement. Bloomberg News, in a telephone interview with Chang Chin-fung, deputy prosecutor of the Taoyuan District Court, relates that the allegations involve some employees who benefited from BenQ's stock trading around March 2006, just before BenQ posted a fourth quarter loss. China Post adds that it is believed BenQ executives sold large amounts of company shares ahead of the company's announcement of huge losses incurred from its takeover of Siemens's handset division. "We have yet to find out whether those shares were owned by those persons or by the company," Mr. Chang said, noting that BenQ Chairman K.Y. Lee is not being investigated. In an internal e-mail, BenQ said that the probe would not significantly affect its operations, Taipei Times says. Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing, developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BenQ Mobile filed for insolvency in Germany on Sept. 29, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. It has operations in Brazil. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the deadline in finding a buyer for the company on Dec. 31, 2006. * * * As reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's: * continuing operating losses from its handset operations; * high leverage; and * the competitive nature and low profitability of the LCD monitor industry. BENQ CORP: Probe Has No Immediate Impact on Ratings, TRC Says ------------------------------------------------------------- On March 14, 2007, Taiwan Ratings Corp. said that its ratings on BenQ Corp. -- (twBB+/Negative/twB)-- are not immediately affected by the current investigation by Taiwan's prosecutors into alleged insider trading by some of the company's employees. The prosecutors took action on March 13, 2007, to search for evidence related to the alleged insider trading. The allegations involve some employees making profits from BenQ's stock trading in March 2006, just before the company posted a loss of NT$6 billion for the fourth quarter of 2005, which was derived from its acquisition of German-based Siemens AG's money- losing handset division in June 2005. Taiwan Ratings views the alleged insider trading to have no immediate impact on the company's business operations, as the probe is not expected to change the company's fundamentals. Nevertheless, the incident raises concerns over BenQ's internal controls. Taiwan Ratings will monitor the progress of the investigations, as well as the company's operating performance. GERDAU SA: Names Deloitte Touche as Independent Auditing Firm -------------------------------------------------------------- Gerdau SA said in a statement that it has appointed Deloitte Touche Tohmatsu Auditores Independentes as its new independent auditing company. Gerdau needed to choose a new auditor to abide by requirements from Brazilian securities regulator Comissao de Valores Mobiliarios, Business News Americas reports. 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. ITRON INC: S&P Keeps BB- Corp. Credit Rating on CreditWatch ----------------------------------------------------------- Standard & Poor's Ratings Services keeps Itron Inc.'s ratings on CreditWatch with negative implications, including the 'BB-' corporate credit rating. The ratings were placed on CreditWatch on Feb. 26, 2007, following the announcement that the company would purchase Luxembourg-based meter manufacturer Actaris Metering for more than US$1.6 billion. Standard & Poor's will resolve the CreditWatch listing upon completion of the acquisition (the deal is expected to close by the second quarter of 2007). If it is completed as planned, the corporate credit rating on Itron would be lowered to 'B+'. The outlook would be stable. At the same time, Standard & Poor's assigned its loan and recovery ratings to Itron's proposed US$1.1 billion senior secured first-lien credit facilities, based on preliminary terms and conditions. The credit facilities were rated 'B+' with a recovery rating of '3', indicating Standard & Poor's expectation for a meaningful recovery of principal by lenders (50%-80%) in the event of a default. The facilities will be used along with cash balances (partially derived from a US$345 million convertible note offering and a US$235 million issuance of equity) to fund the acquisition. Standard & Poor's will withdraw its rating on the company's existing US$55 million revolving credit facility upon the closing of the new facilities. 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. METSO OYJ: Supplies Handling Equipment to Bateman Africa -------------------------------------------------------- Metso Minerals, a division of Metso Oyj, will supply bulk materials handling equipment to Bateman Africa (Pty) Ltd. for Richards Bay Coal Terminal (RBCT) situated on the east coast of South Africa. The delivery, installation and commissioning will be completed by the first quarter of 2009. The value of the order is around EUR17 million. The order comprises a twin-cell rotary railcar dumper system and a stacker reclaimer. The railcar dumper rotates two railcars at a time and will be capable of unloading trains at the rate of 65 railcars per hour. The stacker reclaimer has a 60-meter boom outreach with an average reclaim rate of 4,500 tons per hour and a stacking rate of 6,000 tons per hour. The order also comprises commissioning and installation services. Metso's supply is part of the overall solution for the expansion of the terminal. Once the expansion is completed, the terminal annual throughput capacity will increase from 72 million tons to 91 million tons. Bateman Africa is the main contractor for engineering, procurement and construction (EPC) for the RBCT phase V expansion project. RBCT is the largest single export coal terminal in the world and it employs around 500 permanent people. About Metso Headquartered in Helsinki, Finland, Metso Corp. aka Metso Oyj -- http://www.metso.com/-- is a global engineering and technology corporation with 2005 net sales of around EUR4.2 billion. Its 22,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. The company's principal production plants are located in Brazil, China, Finland, France, Germany, India, Italy, South Africa, Sweden, the United Kingdom, and the United States. * * * As of Feb. 9, Metso Oyj carries Standard & Poor's 'BB+' long- term and 'B' short-term corporate credit ratings and 'BB' senior unsecured debt rating. PETROLEO BRASILEIRO: Aims to Lead LatAm Energy Sector by 2015 ------------------------------------------------------------- Brazil's state-owned oil firm Petroleo Brasileiro SA Chief Executive Officer Jose Gabrielli told news magazine Carta Capital that the company aims to become the leading energy firm in Latin America by 2015. Mr. Gabrielli told Business News Americas that Petroleo Brasileiro is competing against Venezuelan counterpart Petroleos de Venezuela and Mexican counterpart Pemex. BNamericas relates that Petroleo Brasileiro wants to boost output at home and abroad to over 4.5 million barrels of oil equivalent per day by 2015 from the current 2 million barrels of oil equivalent per day. Petroleo Brasileiro's corporate governance is solid, BNamericas notes, citing Mr. Gabrielli. He said that no government does whatever it wants with Petroleo Brasileiro, as the company is separate from the government. It has its own budget. The board members, except for the chairperson, are chosen at a shareholders' assembly and subject to rules of securities regulator Comissao de Valores Mobiliarios. Mr. Gabrielli reiterated to Carta Capital Petroleo Brasileiro's strategy to: -- continue expanding domestic oil and gas output, -- expand the gas pipeline network to 10,000 kilometers from 6,000 kilometers, and -- increase the firm's fleet renewal program to 42 new ships by 2011. According to BNamericas, Mr. Gabrielli also played down the effect of recent changes in Bolivia and a new accord reached on imported gas prices. "Bolivia is seen by the market as a very small thing for Petrobras [Petroleo Brasileiro]. Bolivia is important to Brazil because 50% of the gas [Brazilians] consume comes from there," Mr. Gabrielli told BNamericas. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. PETROLEO BRASILEIRO: Joint Venture with PDVSA to Start by 2011 -------------------------------------------------------------- Brazilian state-run oil firm Petroleo Brasileiro SA Chief Executive Officer Sergio Gabrielli told radio network CBN that the firm's joint refinery with Venezuelan counterpart Petroleos de Venezuela SA aka PDVSA will start operations by 2011. Works on the plant are within the schedule, CBN notes, citing Mr. Gabrielli. He said that the Petroleo Brasileiro and PDVSA are considering the possibility of advancing the commissioning a little bit. The facilities, which are in Northeast Brazil, could then begin operations well in advance, Business News Americas relates. However, Mr. Gabrielli told the Associated Press that no final decision has been made yet. The plant will process 200,000 barrels per day, with 100,000 from each country, BNamericas states, citing Petroleo Brasileiro Provision and Refining head Paulo Roberto Costa. 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 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. PETROLEO BRASILEIRO: Loses 188,000 Barrels Due to Labor Strike -------------------------------------------------------------- Petroleo Brasileiro SA aka Petrobras has lost 188,000 barrels of oil after production has stopped due to labor strikes in Ecuador's Orellana province in the Amazon, Business News Americas reports. The workers, with close residence in Petrobras' block 18 in the Amazon region, alleged that the company ignored their demands to raise salaries and limit environmental damage. BNamericas states that the government of Ecuador failed to end the protests. The government owned more than 50% of the lost production. Reports show that Petrobras has been complying with community investment plans approved by the local authorities. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. TELE NORTE: Fails to Get Regulator Okay on Way Brasil Purchase -------------------------------------------------------------- Oi fka Tele Note Leste Participacoes said in a statement that telecoms regulator Anatel rejected the firm's planned acquisition of television company Way Brasil. As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Tele Norte's purchase of Way Brasil was still waiting for Anatel's approval. Tele Norte, through its mobile phone unit Oi, acquired the cable television firm at an auction for BRL132 million. Tele Norte Chief Executive Officer Luiz Falco said that the authorization of Way TV already took a long time. The acquisition was totally legal from a regulatory perspective as Tele Norte was the sole bidder in a public auction. Business News Americas relates that Anatel established that Oi would breach its fixed line telecoms concession contract if it offered cable television services in its own region. Oi aimed to get a cable television license by acquiring Way TV, as part of its plan to compete in the triple play services market, BNamericas notes. Andre Roche, a telecoms analyst with brokerage Unibanco Corretora told BNamericas that the regulator's decision doesn't have a major impact on Oi's financial results, as cable is still a small part of its business. However, he said that it has an impact on Oi's future strategy. Oi may ask Anatel to review its decision or go to court to reverse the decision. Anatel's ruling is in line with the telecoms law, which prohibits telecoms operators to offer cable television in their own regions, BNamericas says, citing Mr. Roche. Alain Riviare, Oi's regulatory affairs director, said during an earnings conference call earlier this month that if Anatel rejected the acquisition of Way TV, Oi would offer triple play through a partnership with a cable television provider. "We have a plan A, which is to have a cable TV license, while plan B will be to offer triple play via satellite and radio... This can be done via a partnership or through our own license as Telefonica has done," Mr. Riviare told BNamericas. Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. The Troubled Company Reporter-Latin America reported on March 6, 2007, Tele Norte said that it would unify its fixed, mobile, Internet and entertainment services under the Oi brand. Tele Norte's fixed line segment would be called Oi Fixo, while the Internet service Velox would be renamed Oi Velox. The integration would be gradually adopted through August 2007. * * * As reported in the Troubled Company Reporter on Feb. 5, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Brazil-based telecom service providers Tele Norte Leste Participacoes SA and Telemar Norte Leste SA, jointly referred to as Telemar, to 'BB+' from 'BB'. At the same time, Standard and Poor's revised its ratings on the combined BRL300 million outstanding local debentures of Telemar Participacoes SA in Brazil National Scale to 'brAA-' from 'brA+', and assigned o 'brAA-' rating to TmarPart's proposed five-year BRL$250 million debentures. TOWER AUTO: Wants to Make Initial Payment in ERISA Settlement ------------------------------------------------------------- Tower Automotive Inc. and its debtor-affiliates seek permission from the Honorable Allen L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York to make a US$2 million provisional settlement payment as part of a settlement of an Employee Retirement Income Security Act Class Action. The Debtors previously obtained approval from Judge Gropper to advance up to an aggregate of US$1,500,000 in legal defense fees, costs and related expenses incurred by the Debtors' current and former officers, directors and employees to defend alleged violations of the Employee Retirement Income Security Act Class Action. The Debtors maintain that resolution of the ERISA Litigation is an important aspect of their efforts to reorganize. The Debtors and the individual defendants have been negotiating a settlement of the Class Action Lawsuits that resolves all potential liability of the Debtors or the Individual Defendants, Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York, relates. While the Settlement will be subject to review and approval by U.S. District Court for the Southern District of New York, the Debtors come before Judge Gropper seeking authority to make a provisional payment pursuant to the Settlement, Mr. Cieri notes. If the request is granted, the Debtors would execute a fully documented settlement agreement and make the Provisional Settlement Payment. The salient terms of the Settlement term sheet provides that: (a) Upon approval of the Settlement by the District Court, the Debtors will deposit US$2,000,000 in a segregated account; (b) The stipulated liability under the ERISA Litigation will be capped at US$14,000,000, which is within the policy limits under the ERISA Policy; (c) The Debtors and the Individual Defendants would agree to assign to the plaintiffs in the Class Action Lawsuits the right to pursue the Debtors' and the Individual Defendants' claims against Federal Insurance Company -- the Debtors' insurance carrier -- up to US$14,000,000, at the Plaintiffs' sole expense; and (d) If the Plaintiffs prevail against Federal in the Coverage Litigation, the first US$4,000,000 of any recovery would go to the Plaintiffs, the next US$2,000,000 would go to the Debtors to reimburse them for the Provisional Settlement Payment, and the balance of any recovery would go to the Plaintiffs. Thus, so long as there is more than US$6,000,000 in coverage for the ERISA Litigation, the Debtors will be entitled to a full refund of the Provisional Settlement Payment upon the Plaintiffs' receipt of funds from Federal. The Debtors submit that the Settlement is beneficial to their estates and creditors, fair and equitable, and falls well within the range of reasonableness. Mr. Cieri also notes that in exchange for the Provisional Settlement Payment, the Debtors will receive several important benefits from the Settlement, including that: (1) The Debtors will realize significant savings by not continuing to fund the litigation costs associated with the Coverage Litigation and the ERISA Litigation. The Coverage Litigation and the ERISA Litigation are both in relatively early stages, and given the tenor to date, would be very costly to conclude, and would likely involve significant appellate litigation; (2) The Settlement will provide much needed certainty to the Debtors and the Individual Defendants at a crucial time in the Debtors' Chapter 11 cases. The ERISA Litigation and the Coverage Litigation have been a distraction for the Debtors and for the Individual Defendants, and the Debtors believe that their reorganization efforts would benefit from putting an end to this distraction and allowing the Debtors and the Individual Defendants to more fully focus on the considerable challenges at hand related to the Debtors' planned emergence from Chapter 11; (3) The Settlement will remove a significant obstacle to the Debtors' ability to retain the services of the Individual Defendants going forward. The Debtors expect that the future owners of, or investors in, their businesses, whomever they may be, may want to retain some or all of the Individual Defendants, and that the ERISA Litigation could be a barrier to that goal; and (4) The Debtors and the Individual Defendants will receive a full release of all claims arising out of, or in any way related to, directly or indirectly, any or all of the acts, omissions, facts, matters, transactions or occurrences during the Class Period that are, were, or could have been alleged, asserted or set forth in the ERISA Litigation related to alleged violations of ERISA. The release is significant because there's a risk that if the Individual Defendants were held liable in the ERISA Litigation, their liability would be as agents of the Debtors, exposing the Debtors to both vicarious liability under the theory of "respondeat superior" and the risk of being collaterally estopped from denying liability for the actions of the Individual Defendants. Responses (a) Silver Point Silver Point Capital Fund, L.P., asserts that it neither takes issue with the economic structure of the Settlement nor maintains that the Settlement falls outside the "range of reasonableness." However, Silver Point believes that consideration of the request should be deferred until a better understanding of the Debtors' ability to fully satisfy the claims of their senior creditors -- specifically, the Second Lien Lenders -- in cash can be ascertained. James C. Tecce, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, argues that the Debtors' bankruptcy cases have reached a critical point, and paying junior creditors' prepetition claims outside of a Chapter 11 plan before the satisfaction of the Second Lien Lenders' claims simply is inappropriate. "This is especially true when the US$2 million provisional payment will not be used to satisfy claims asserted against the Debtors," Mr. Tecce argues. Mr. Tecce adds that at best, the Debtors may be obligated with respect to indemnification claims asserted by the Individual Defendants relating to the ERISA Litigation. These claims would arise under the Debtors' by-laws and employment agreements, and relate to alleged prepetition misconduct. Accordingly, Silver Point asks Judge Gropper to sustain its objection and defer consideration of the Debtors' request. (b) Creditors Committee The Official Committee of Unsecured Creditors asks the Bankruptcy Court to deny the Debtors' request because: * The Plaintiffs' claims arose from the sale of securities, and the Bankruptcy Code mandates that the claims be subordinated to the claims of general unsecured creditors. Thus, payment of the Settlement, without a guarantee of insurance coverage, will in essence elevate the plaintiffs' claims above all other claims; and * The Settlement Payment will constitute the payment of a prepetition claim outside of a confirmed Reorganization Plan. Courts have consistently held that payment of those claims should only be approved where it is essential to the debtors' reorganization efforts. The Bankruptcy Court must not allow the Debtors to end run around the bankruptcy priority scheme, and favor the Plaintiffs' subordinate claims to the detriment of all other claimants, Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP in New York emphasizes. Under Section 510(b) of the Bankruptcy Code, courts must subordinate bankruptcy claims "for damages arising from purchases and sales of securities of a debtor," including claims for "reimbursement or contribution" based on those claims, Mr. Dizengoff notes. According to Mr. Dizengoff, even if the Plaintiffs' claims are not subordinated pursuant to Section 510(b), they are still merely general unsecured claims that should be paid pursuant to a confirmed Plan. Multiple provisions in the Bankruptcy Code envision and demand that similarly situated creditors receive equal treatment. Moreover, as required by the Bankruptcy Court's prior orders, the Debtors must be directed to seek reimbursement from Federal of all amounts advanced, including amounts already paid, to the Individual Defendants if the Debtors prevail in the ERISA Coverage Litigation, Mr. Dizengoff argues. It is premature to allow the Debtors to pay any more amounts, including the Settlement Payment, if there is no basis to recover those amounts from Federal, he says. Mr. Dizengoff maintains that the Debtors should know first if they can recover the Settlement Payment -- plus the amounts previously paid -- from Federal. If the Debtors or their assigns are successful in the ERISA Coverage Litigation, then the proposed Settlement would have no impact on the estate. Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. - - http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The Company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed US$787,948,000 in total assets and US$1,306,949,000 in total debts. The Debtors' exclusive plan-filing deadline is extended to March 21, 2007, pending a hearing on that date. (Tower Automotive Bankruptcy News, Issue No. 54; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). TOWER AUTOMOTIVE: Wants Avoidance Actions Protocol Established -------------------------------------------------------------- Tower Automotive Inc. and its debtor-affiliates previously asked the U.S. Bankruptcy Court for the Southern District of New York to enter a ruling establishing streamlined procedures for claims and actions that are commenced by the Debtors pursuant to Sections 502, 547, 548 and 550 of the Bankruptcy Code. The Court requested that the motion be noticed to all defendants in the Avoidance Actions. On Feb. 23, the Debtors filed a similar request asking the Court to enter an order establishing certain procedures governing all Avoidance Actions. Specifically, Frank A. Oswald, Esq., at Togut, Segal & Segal LLP in New York, says the Debtors ask the Court to enter a ruling: (a) eliminating the requirement of a scheduling conference required by Rule 7026(f) of the Federal Rules of Bankruptcy Procedure, and an initial pretrial conference under Rule 7016, and instead, set procedures and timetables for service of Rule 7026 disclosures; (b) requiring a pre-motion conference before any motion is filed; and (c) authorizing and approving omnibus procedures for the settlement and compromise of the Avoidance Actions, pursuant to which the Debtors would be permitted to settle a majority of the Avoidance Actions without the requirement of noticing all creditors or bringing all of the proposed settlements before the Court for approval pursuant to Rule 9019 of the Federal Rules of Bankruptcy Procedure. Mr. Oswald notes that the Debtors have served a copy of the present request with the summons and complaint on the defendant in each adversary proceeding. The Debtors, the Official Committee of Unsecured Creditors and their retained professionals have been working together to determine whether any transfers made by the Debtors to third parties within the one-year period immediately before their bankruptcy filing, may be avoided and recovered by the Debtors pursuant to Chapter 5 of the Bankruptcy Code, Mr. Oswald tells Judge Kishel. According to Mr. Oswald, the Debtors have commenced more than 400 adversary proceedings seeking to avoid and recover in excess of US$260,000,000, and have entered into 29 tolling agreements. Mr. Oswald asserts that absent the establishment of streamlined procedures to govern the prosecution and settlement of the Avoidance Actions, it will be extremely difficult and costly for the Debtors to prosecute the Avoidance Actions in an efficient and timely manner and equally as difficult for the Court to administer the matters. Mr. Oswald says by instituting certain procedures, the Debtors will be able to minimize the administrative costs to the estates including, among other things: * the cost and expense of having counsel travel to and from the Court for countless pretrial and scheduling conferences; * drafting Rule 9019 motions; and * serving every creditor with every proposed settlement, which could amount to hundreds of motions for approval of settlements. Mr. Oswald explains that given the volume of the Avoidance Actions that were commenced, the Debtors believe that their request with respect scheduling conferences, pretrial conferences, initial disclosures and motion practice are imperative. Absent the limitations, Mr. Oswald says, the Court's docket will be clogged with those matters and additional time will be consumed with reviewing and signing individual scheduling orders in potentially hundreds of adversary proceedings. In addition, the Debtors seek the Court's authority to settle and compromise Avoidance Actions in accordance with these procedures: (1) For the settlement of any Avoidance Action where the amount demanded is US$1,000,000 and greater, the Debtors will, after obtaining the prior agreement of the Creditors Committee or its successor that the proposed settlement is fair and reasonable, seek for Court approval of the proposed settlement pursuant to Rule 9019 on notice by regular, first-class mail upon: (a) counsel for the Creditors Committee; (b) the Office of the U.S. Trustee for the Southern District of New York; (c) the parties listed on the "Notice List" established by the Court's ruling establishing notice procedures; and (d) the defendant in that particular Avoidance Action; (2) For the settlement of any Avoidance Action where the amount demanded is greater than US$150,000 but less than US$1,000,000, after consultation with the Creditors Committee or its successor regarding the settlement, the Debtors will serve notice of any proposed settlement by regular, first-class mail on the Notice Parties, provided that if any of the Notice Parties object to a settlement proposed by the Debtors, and the Debtors still desire to enter into the proposed settlement with the defendant, the execution of the settlement will not proceed except upon: -- resolution of the objection by the Debtors and the Objecting Party; or -- further Court ruling after a hearing. The Debtors will also file notice on the Court's electronic docket. If no written objection is received within 10 business days after the date of service of the Notice, the Debtors will be authorized to consummate the proposed settlement without further Court ruling or consent of any other party; (3) For the settlement of any Avoidance Action where the amount demanded is US$150,000 or less, the Debtors will be authorized to consummate the proposed settlement without further Court ruling, and without giving notice to, or receiving consent from any other party; and (4) The Debtors will provide a confidential bi-weekly settlement report to the Creditors Committee or its successor listing all settled actions, settlement amounts and claim waivers, unless the Committee or its successor waives the requirement. The Debtors hope that the proposed procedures will promote settlements because they believe proceeding in this manner may obviate the need for defendants to retain outside counsel during the settlement process. Often, not having to expend substantial resources for outside counsel is a major consideration in a defendant's willingness to settle quickly, Mr. Oswald explains. Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. - - http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The Company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed US$787,948,000 in total assets and US$1,306,949,000 in total debts. The Debtors' exclusive plan-filing deadline is extended to March 21, 2007, pending a hearing on that date. (Tower Automotive Bankruptcy News, Issue No. 55; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). TOWER AUTOMOTIVE: Wants Deutsche Bank's 2nd Lien L/Cs Extended -------------------------------------------------------------- Tower Automotive Inc. and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to enter into and perform under a Second Extension Agreement and to pay Deutsche Bank' fees. The Debtors also ask the Court to approve a proposed "affirmation and consent" of various Debtors. The Court previously authorized the replacement of Comerica Bank with Deutsche Bank Trust Company Americas as the issuer of Second Lien Letters of Credit under the Prepetition Credit Agreement. On Nov. 1, 2006, the Debtors and Deutsche Bank agreed to extend the maturity dates of the Second Lien L/Cs from Feb. 7, 2007, to not later than June 7, 2007. As of March 9, 2007, there are 10 outstanding undrawn and unpaid Second Lien L/Cs under the Second Lien Facility in the aggregate amount of approximately US$97,200,000. The Second Lien L/Cs are set to expire on June 7. According to Anup Sathy, Esq., at Kirkland & Ellis LLP, in Chicago, in light of the pending expiry of the Second Lien L/Cs, the Debtors negotiated an extension agreement, and certain related agreements, which extend the expiry of the L/Cs to the earlier of: (a) Oct. 9, 2007; and (b) the effective date of the Debtors' plan of reorganization. However, the Debtors have the right not to request the extension of the expiry date of one or more of the Second Lien L/Cs, or to request the extension of the expiry date of one or more of the Second Lien L/Cs to a date before Oct. 9, 2007, in their sole discretion, Mr. Sathy explains. Mr. Sathy notes that the Second Extension Agreement is subject to certain conditions, including the agreement of Silver Point Capital Fund L.P., as the successor administrative agent under the Second Lien Facility, and LaSalle Bank National Association, as the escrow agent. Mr. Sathy relates that in exchange for Deutsche Bank's commitment to extend the expiry of the Second Lien L/Cs, Deutsche Bank has requested, and the Debtors have agreed to pay: (i) Deutsche Bank's legal expenses related to the negotiation, documentation and implementation of the Second Extension Agreement, and otherwise related to the Second Lien L/Cs; and (ii) a non-refundable, fully-earned extension fee for US$243,219. Mr. Sathy asserts that if the Second Extension Agreement and Affirmation are not authorized, each of the beneficiaries will most likely draw on their Second Lien L/Cs. He explains that this could have serious adverse consequences to the Debtors' estates because the Debtors are generally current on amounts owed to the beneficiaries, and a full draw of the Second Lien L/Cs may over-collateralize certain of the beneficiaries. Furthermore, the Debtors' budget under the DIP credit agreement was negotiated with the assumption that the Second Lien L/Cs would continue, generally undrawn and unpaid, throughout the Debtors' Chapter 11 cases, Mr. Sathy explains. The DIP Credit Agreement's revolving credit facility limits L/Cs under it to US$100,000,000. If the Second Extension Agreement and the Affirmation are not approved and the beneficiaries fully draw the Second Lien L/Cs, the Debtors believe that many of the beneficiaries would nevertheless require replacement L/Cs that would have to be issued under the DIP Credit Agreement. In this case, Mr. Sathy says, there would be insufficient availability under the DIP Credit Agreement to issue both replacement L/Cs to beneficiaries under the Second Lien Facility as well as new letters of credit as may become required during the Debtors' Chapter 11 cases. A full-text copy of the proposed Second Extension Agreement, together with a proposed Affirmation and Consent of various Debtors, is available for free at: http://ResearchArchives.com/t/s?1b94 Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company has operations in Korea, Spain and Brazil. Tower Automotive and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed US$787,948,000 in total assets and US$1,306,949,000 in total debts. The Debtors' exclusive plan-filing deadline is extended to March 21, 2007, pending a hearing on that date. (Tower Automotive Bankruptcy News, Issue No. 56; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). TRW AUTOMOTIVE: Considers Payment on Tender Offers for Sr. Notes ---------------------------------------------------------------- TRW Automotive Holdings Corp., through its subsidiary TRW Automotive Inc., has determined the consideration to be paid in connection with the previously announced cash tender offers and consent solicitations for its outstanding: -- US$825 million 9-3/8% Senior Notes due 2013, -- EUR130 million 10-1/8% Senior Notes due 2013, -- US$195 million 11% Senior Subordinated Notes due 2013 and -- EUR81 million 11-3/4% Senior Subordinated Notes due 2013. In conjunction with the tender offers, the company also commenced consent solicitations to eliminate substantially all the covenants and certain events of default and to modify the provisions relating to defeasance of the Notes. The tender offers and consent solicitations are being made pursuant to the company's Offer to Purchase and Consent Solicitation Statement dated March 12, 2007. The total consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 9-3/8% Notes validly tendered is US$1,078.26, which includes a US$30.00 consent payment. The total consideration, excluding accrued and unpaid interest, for each EUR1,000 principal amount of 10-1/8% Notes validly tendered (and not validly withdrawn) is EUR1,096.69, which includes a EUR30.00 consent payment. The total consideration, excluding accrued and unpaid interest, for each US$1,000 principal amount of 11% Notes validly tendered (and not validly withdrawn) is US$1,099.86, which includes a US$30.00 consent payment. The total consideration, excluding accrued and unpaid interest, for each EUR1,000 principal amount of 11-3/4% Notes validly tendered (and not validly withdrawn) is EUR1,118.44, which includes a EUR30.00 consent payment. The total consideration for the 9-3/8% Notes and the 11% Notes was determined using standard market practice of pricing to the first redemption date at a fixed spread of 50 basis points over the bid-side yield on the 4- 5/8% Treasury Notes due Feb. 29, 2008, determined at 10:00 a.m. New York City time on March 21, 2007, based on the Treasury bid-side prices reported by the Bloomberg Government Pricing Monitor Page BBT3. The total consideration for the 10-1/8% Notes and the 11-3/4% Notes was determined using standard market practice of pricing to the first redemption date at a fixed spread of 50 basis points over the bid-side yield on the 4-1/4% German OBL due Feb. 15, 2008, determined at 10:00 a.m. New York City time on March 21, 2007, based on the German OBL bid-side prices reported by the Bloomberg Government Pricing Monitor Page PXGB. Holders who properly tender and deliver their consents to the proposed amendments on or prior to 5:00 p.m., New York City time, on March 23, 2007, unless extended or earlier terminated, will be eligible to receive the total consideration with respect to the applicable series of Notes. Holders who properly tender after the Consent Date but on or prior to the Expiration Date will be eligible to receive the tender offer consideration applicable to such series of Notes, which equals the total consideration less the consent payment. In addition, all Notes accepted for payment will be entitled to receipt of accrued and unpaid interest in respect of such Notes from the last interest payment date prior to the applicable settlement date to, but not including, the applicable settlement date. The tender offers will expire at midnight, New York City time, on April 6, 2007, unless extended or earlier terminated. Settlement for all Notes tendered on or prior to the Consent Date and accepted for payment is expected to be promptly following the satisfaction of the Financing Condition. Settlement for all Notes tendered after the Consent Date, but on or prior to the Expiration Date, is expected to be promptly following the Expiration Date. Consummation of the tender offers, and payment for the tendered notes, is subject to the satisfaction or waiver of certain conditions, including obtaining debt financing, in an amount and on terms acceptable to the company, sufficient to pay for all Notes tendered. Holders may withdraw their tenders and revoke their consents at any time on or prior to 5:00 p.m., New York City time, on the Consent Date, but not thereafter. Holders who wish to tender their Notes must consent to the proposed amendments and holders may not deliver consents without tendering their related Notes. Holders may not revoke consents without withdrawing the Notes tendered pursuant to the applicable tender offer. Lehman Brothers Inc., Banc of America Securities LLC, Deutsche Bank Securities, Goldman, Sachs & Co. and Merrill Lynch & Co. are each acting as a Dealer Manager and Solicitation Agent for the tender offers and the consent solicitations. The Depositary is The Bank of New York and the Information Agent is Global Bondholder Services Corporation. Requests for documentation should be directed to Global Bondholder Services Corporation at (866) 924-2200, The Bank of New York Attn: William Buckley 101 Barclay Street 7 East, New York, NY 10286 Tel: (212) 815-5788 Fax: (212) 298-1915 -- or -- The Bank of New York (Luxembourg) S.A. Aerogolf Center - 1A Hoehenhof, L-1736 Senningerberg, Luxembourg Tel: +(352) 34 20 90 5637 Questions regarding the tender offers and the consent solicitations should be directed to Lehman Brothers at (800) 438-3242 (toll- free) or (212) 528-7581 (collect). 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 =========================== HAPPY RICE: Will Hold Final Shareholders Meeting on May 31 ---------------------------------------------------------- Happy Rice Field will hold its final shareholders meeting on May 31, 2007, at: Maples Finance Limited Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the the winding up has been conducted and how the property has been disposed, and 2) hearing any explanation that may be given by the liquidators. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Wendy Ebanks Joshua Grant Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands LEAHLON HOLDINGS: To Hold Last Shareholders Meeting on April 23 --------------------------------------------------------------- Leahlon Holdings (Cayman) Ltd. will hold its final shareholders meeting at 10:00 a.m. on April 23, 2007, at: Myers & Alberga, Harbour Place 2nd Floor, 103 South Church Street P.O. Box 472, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the the winding up has been conducted and how the property has been disposed, as at the final winding up on April 23, 2007; and 2) authorizing the liquidator to retain the company's records for a period of five years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Michael L. Alberga Harbour Place 2nd Floor, 103 South Church Street George Town, Grand Cayman Cayman Islands Telephone: (345) 949-0699 Fax: (345) 949-8171 MAVERICK LONG: Final Shareholders Meeting Is on May 31 ------------------------------------------------------ Maverick Long (Plans), Ltd. will hold its final shareholders meeting on May 31, 2007, at: Maples Finance Limited Queensgate House, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the the winding up has been conducted and how the property has been disposed, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands NIRVANA PACIFIC: Proofs of Claim Filing Deadline Is April 27 ------------------------------------------------------------ Nirvana Pacific Capital Limited's creditors are given until April 27, 2007, to prove their claims to Richard L. Finlay, 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. Nirvana Pacific'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: Richard L. Finlay Attention: Krysten Lumsden Conyers Dill & Pearman Cricket Square, Hutchins Drive Grand Cayman KY1-1111, Cayman Islands Telephone: (345) 945 3901 Fax: (345) 945 3902 NIRVANA PACIFIC: Sets Last Shareholders Meeting for April 27 ------------------------------------------------------------ Nirvana Pacific Capital Limited will hold its final shareholders meeting at 9:00 a.m. on April 27, 2007, at the offices of the company. These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the the winding up has been conducted and how the property has been disposed, as at the final winding up on April 27, 2007. 2) authorizing the liquidator to retain the company's records for a period of six years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Richard L. Finlay Attention: Krysten Lumsden Conyers Dill & Pearman Cricket Square, Hutchins Drive Grand Cayman KY1-1111, Cayman Islands Telephone: (345) 945 3901 Fax: (345) 945 3902 ========= C H I L E ========= FREEPORT-MCMORAN: Fitch Rates Mandatory Pref. Stock Issue at B+ --------------------------------------------------------------- Fitch has rated Freeport-McMoRan Copper & Gold Inc.'s mandatory convertible preferred stock issue at 'B+'. The issue is expected to generate some US$1 billion in gross proceeds. The Outlook is Stable. The proceeds of the new preferred issue together with a secondary offering of 35 million shares of common stock will be used to repay borrowings under the secured term loans used to finance, in part, the acquisition of Phelps Dodge Corp. The mandatory convertible preferred stock is not redeemable and has a mandatory conversion date of May 1, 2010. The issue will rank on parity with Freeport's outstanding 5 1/2% convertible perpetual preferred stock. The ratings reflect Freeport's position as the world's second- largest copper producer, its diversified operations and strong liquidity, as well as the company's exposure to copper prices and its relatively high financial leverage. The outlook is for copper producers to continue to benefit from a strong pricing environment over the near term. 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. GOODYEAR TIRE: Refinancing Principal Credit Facilities ------------------------------------------------------ The Goodyear Tire & Rubber Company intended to refinance its principal credit facilities. These include a: * US$1.5 billion first-lien credit facility due April 30, 2010; * US$1.2 billion second-lien term loan facility due April 30, 2010; and * EUR505 million credit facility for the company's Goodyear Dunlop Tires Europe affiliate due April 30, 2010. Goodyear said it expects to amend, restate and extend these facilities to provide for a: * US$1.5 billion first-lien credit facility due in 2013, * US$1.2 billion second-lien term loan due in 2014 and * EUR505 million European revolving credit facility due in 2012. The transaction is subject to normal conditions and the execution of definitive documentation. The facilities are expected to close in April. Goodyear is one of the world's largest tire companies. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries around the world. Goodyear employs more than 75,000 people worldwide. Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear Tire has marketing operations in almost every country around the world including Chile, Colombia, Guatemala, Jamaica and Peru in Latin America. Goodyear employs more than 80,000 people worldwide. * * * As reported in the Troubled Company Reporter-Latin America on March 19, 2007, Fitch Ratings has affirmed ratings for The Goodyear Tire & Rubber Company and revised the Rating Outlook to Stable from Negative. The ratings affirmed are: * The Goodyear Tire & Rubber Company -- Issuer Default Rating 'B'; -- US$1.5 billion first lien credit facility 'BB/RR1'; -- US$1.2 billion second lien term loan 'BB/RR1'; -- US$300 million third lien term loan 'B/RR4'; -- US$650 million third lien senior secured notes 'B/RR4'; and -- Senior unsecured debt 'CCC+/RR6'. REVLON CONSUMER: Dec. 31 Balance Sheet Upside-Down by US$1.22B -------------------------------------------------------------- Revlon Consumer Products Corp. increased its net loss for the year ended Dec. 31, 2006, to US$244.5 million, from US$77.8 million for the year ended Dec. 31, 2005. Net sales in 2006 and 2005 were somewhat flat at US$1.33 billion, sales in 2005 were higher by US$900,000. The company had an operating loss of US$43.6 million in 2006, as compared with an operating income of US$72.5 million a year earlier. The operating loss was partly due to the increased selling, general, and administrative expenses of US$802.1 million in 2006, as compared with US$750.2 million in 2005. The company's balance sheet as of Dec. 31, 2006, showed a stockholders' deficiency of US$1.22 billion, resulting from total assets of US$944 million and total liabilities of US$2.16 billion. It stockholders' deficiency in 2005 was US$1.09 billion. As of Dec. 31, 2006, the company's cash and cash equivalents totaled US$35.4 million, slightly up from US$32.4 million in 2005. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1bbf Year 2006 Highlights In September 2006, the company elected David Kennedy as a Director and as president and chief executive officer to replace Mr. Stahl. Mr. Kennedy was also elected as a director. Mr. Kennedy previously served as Revlon, Inc.'s executive vice president, chief financial officer and treasurer, and prior to that as the company's executive vice president and president of Revlon, Inc.'s international operations. Revlon, Inc. also announced in September 2006 the discontinuance of its Vital Radiance brand, which did not maintain an economically feasible retail platform for future growth. During 2006 the company incurred charges of US$9.4 million in connection with the Mr. Stahl's departure and US$60.4 million in connection with the discontinuance of the Vital Radiance brand. Credit Agreements On Dec. 20, 2006, the company replaced the US$800 million 2004 Term Loan Facility under its 2004 Credit Agreement with a new 5- year, US$840 million 2006 Term Loan Facility pursuant to the 2006 Term Loan Agreement, as of Dec. 20, 2006, among the company, as borrower, the lenders party thereto, Citicorp USA, Inc., as administrative agent and collateral agent, Citigroup Global Markets Inc., as sole lead arranger and sole bookrunner, and JPMorgan Chase Bank, N.A., as syndication agent. As part of the bank refinancing, the company also amended and restated the 2004 Multi-Currency Facility by entering into the US$160 million 2006 Revolving Credit Agreement that amended and restated the 2004 Credit Agreement. The company was in compliance with all applicable covenants under the 2006 Credit Agreements as of Dec. 31, 2006. At Feb. 28, 2007, the 2006 Term Loan Facility was fully drawn and availability under the US$160 million 2006 Revolving Credit Facility, based upon the calculated borrowing base less about US$15.1 million of outstanding letters of credit and nil then drawn on the 2006 Revolving Credit Facility, was about US$134.4 million. About Revlon Consumer Revlon, Inc. (NYSE:REV) -- http://www.revloninc.com/-- is a worldwide cosmetics, skin care, fragrance, and personal care products company. The company's vision is to deliver the promise of beauty through creating and developing the most consumer preferred brands. The company's brands include Revlon(R), Almay(R), Vital Radiance(R), Ultima(R), Charlie(R), Flex(R), and Mitchum(R). The company's Latin American operations are located in Argentina, Brazil, Chile, Mexico and Venezuela. Headquartered in New York, Revlon Consumer Products Corp. is a worldwide cosmetics, skin care, fragrance, and personal care products company. The company is a wholly owned subsidiary of Revlon Inc. -- http://www.revloninc.com/-- which in turn is majority-owned by MacAndrews and Forbes, which is wholly owned by Ronald O. Perelman. The company's Latin American operations are located in Argentina, Brazil, Chile, Mexico and Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 11, 2006, Moody's Investors Service assigned a (P)B1 rating to Revlon Consumer Products Corporation's US$160 million senior secured asset based revolving credit facility and a (P)B3 rating to the company's new US$840 million senior secured term loan. At the same time, Moody's affirmed the company's long-term ratings, including the corporate family rating of Caa1. Moody's also affirmed the company's speculative grade liquidity rating of SGL-4. Final ratings are subject to review of documentation. Ratings on the existing bank facilities will be withdrawn upon completion of the new term loan facility. Moody's said the outlook remains negative. =============== C O L O M B I A =============== GRAN TIERRA: Drills New Guayuyaco Well with Solana Resources ------------------------------------------------------------ Gran Tierra Energy Inc., in collaboration with Solana Resources, has drilled and logged a new field wildcat well in the Putumayo basin's Guayuyaco block in Colombia, Business News Americas reports. Gran Tierra said in a statement that the Juanambu-1 well reached a total depth of 9,154 feet on March 10. BNamericas relates that the well "encountered" reservoir quality sandstones with hydrocarbons shows in four zones. The well is being "cased." A service rig with test equipment will move to Juanambu-1 to operate a completion string and start testing the hydrocarbons zones in April. Once Juanambu-1 is cased, the Pride-17 rig will be moved to the neighboring Chaza block to drill the Costayaco-1 exploration well. Costayaco-1 drilling is will start in early April, Gran Tierra said in a statement. Gran Tierra Energy Inc. (OTCBB: GTRE.OB) -- http://www.grantierra.com/-- is an international oil and gas exploration and development company headquartered in Calgary, Canada, incorporated and traded in the United States and operating in South America. The company currently holds interests in producing and prospective properties in Argentina, Colombian and Peru. * * * Management disclosed that the company's ability to continue as a going concern is dependent upon obtaining the necessary financing to acquire oil and natural gas interests and generating profitable operations from its oil and natural gas interests in the future. The company incurred a net loss of US$1.9 million for the nine-month period ended Sept. 30, 2006, and, as at Sept. 30, 2006, had an accumulated deficit of US$4.1 million. * COLOMBIA: Zuluaga Says Biofuel Dev. To Help End Oil Dependency ---------------------------------------------------------------- Colombia's Economy Minister Oscar Ivan Zuluaga told news daily Panorama Digital that biofuel development is an important way to help end "mid-term" dependency on oil. Business News Americas relates that under the Colombian law, 10% ethanol from sugarcane must be added to gasoline to improve fuel quality and decrease tailpipe emissions. Colombia managed to make great advances in two years producing ethanol, BNamericas states, citing Minister Zuluaga. The country has become the sixth largest producer in Latin America. * * * As reported in the Troubled Company Reporter-Latin America on March 8, 2007, Standard & Poor's lifted the country's foreign credit to BB+ from BB. Colombia's local currency debt rating was raised to BBB+ from BBB. * COLOMBIA: Gov. Agencies Ink Mining Pact with Comptroller Gen'l ---------------------------------------------------------------- Colombia's environment, mines and transport ministries have signed an accord with the comptroller general's office to promote measures favorable for the environment at coal operations, Business News Americas reports. The office of the president said in a statement that the agreement also includes state-run oil firm Ecopetrol, which will do the same when extracting fuel. Mines and Energy Minister Hernan Martinez told BNamericas that the idea is to agree upon actions to outline an environmental improvement plan in the oil and coal sectors, like the implementation of stricter requirements on coal-carrying ships to avoid accidents. Juan Lozano, the environment, housing and territorial development minister, commented to BNamericas that that his office will award permits to oil and mining projects that meet all environmental requirements. In the future, no licenses will be awarded to those that don't comply with the most rigorous environmental norms in terms of coal mining or oil. * * * As reported in the Troubled Company Reporter-Latin America on March 8, 2007, Standard & Poor's lifted the country's foreign credit to BB+ from BB. Colombia's local currency debt rating was raised to BBB+ from BBB. =================== C O S T A R I C A =================== * COSTA RICA: Recope Completes Ethanol Pilot Project ---------------------------------------------------- Recope, Costa Rica's state oil refiner, told Business News Americas, that it completed an ethanol pilot project that was started over a year ago. The refiner's project involved introducing a 5% ethanol admixture at 64 service stations. The plan is for Recope to introduce a 10% admixture in service stations throughout Costa Rica by mid-2008. Costa Rica's environment and energy ministry, BNamericas says, continues to find ways to develop alternative biofuels that would meet growing demands from more than a million vehicles. * * * As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa Rica's country ceiling to BB+ from BB. =================================== D O M I N I C A N R E P U B L I C =================================== AES CORPORATION: Keller Rohrback Probes Claims Against Officers --------------------------------------------------------------- Keller Rohrback L.L.P. is investigating claims against AES Corporation's executive officers and board members in light of recent information concerning alleged backdating of stock options at the company. On Feb. 26, 2007, the company announced that it is restating its previously reported financial statements as a result of errors discovered by its management. Since that announcement, the company has disclosed that the accounting issues identified in February would prevent it from timely filing its 2006 Annual Report and that its previously issued financial statements and reports should no longer be relied upon for the years ended Dec. 31, 2003, 2004 and 2005. The company stated that it expects to report a reduction in net income of US$80-US$105 million as a result of accounting errors, including share based compensation relating to stock options and restricted stock unit awards. Keller Rohrback's investigation focuses on the extent to which the company's stock option grant dates and exercise prices of stock options were manipulated by AES's executive officers and directors in order to boost their value to those who received them. If you are an AES shareholder and have relevant information, or if you would like additional information concerning the shareholder derivative claims presently being investigated by Keller Rohrback, please contact paralegal Rodney Shanks or attorneys Juli Farris, Elizabeth Leland, Tyler Farmer, or Lynn Sarko by telephone, toll-free at 1-800-776-6044, or via e-mail at: investor@kellerrohrback.com. Keller Rohrback L.L.P. is a law firm headquartered in Seattle that has successfully represented shareholders and consumers in class action cases for over two decades. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars. 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. CERVECERIA NACIONAL: S&P Puts B+ Rating on US$150-Million Debt -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' senior unsecured debt rating to Cerveceria Nacional Dominicana C. por A.'s Dominican peso-linked senior unsecured debt tranche due 2012, equivalent to up to US$150 million. The notes are senior unsecured obligations of Cerveceria Nacional and rank pari-passu with all existing and future unsecured and unsubordinated senior debt of the company. At the same time, Standard & Poor's raised its rating on the US$255 million senior unsecured debt tranche due 2014 to 'B+' from 'B'. Standard & Poor's also affirmed its 'B+' long-term corporate credit rating. The outlook is stable. "The rating actions follow Cerveceria Nacional's recent announcement that proceeds from both tranches will be used to refinance the company's existing indebtedness, including a significant portion of the US$157 million senior secured loan," said Standard & Poor's credit analyst Luis Manuel Martinez. Standard & Poor's believes that Cerveceria Nacional's approximate US$130 million refinancing of the secured debt removes the structural subordination on the senior unsecured notes, which previously had resulted in a one-notch differential below the corporate credit rating. The ratings reflect the shift in Cerveceria Nacional's financial policy toward more aggressive use of debt, as the company historically relied only on internally generated cash to finance its capital investment needs. The stable outlook reflects Standard & Poor's expectations that Cerveceria Nacional will be able to maintain its solid business profile, which is driven by a consolidation of its leading position in the Dominican Republic, and will increase the company's participation in the international markets while maintaining its strong financial profile. A negative rating action could result from a greater than expected cyclical downturn or a departure from Cerveceria Nacional's expected financial policies, including the strategy to deleverage its capital structure. Competitive margins, along with the dominant market position, temper downside risk. However, upside ratings potential is limited because of the company's high geographic concentration and exposure to a highly vulnerable economy. Cerveceria Nacional Dominicana C. por A. is the leading beer and malt producer and distributor in the Dominican Republic. The company is the main operating subsidiary of E. Leon Jimenes, a family-controlled holding company also based in the Dominican Republic. ============= E C U A D O R ============= BANCO DEL PICHINCHA: Seeks to Increase Profits by 25% in 2007 ------------------------------------------------------------- Banco del Pichincha Chief Executive Officer Fernando Pozo told Business News Americas that the bank wants to increase profits by 25% to US$75 million in 2007, compared to 2006, on the back of strong loan volume. According to BNamericas, Banco del Pichincha increased net lending by 24% to US$1.67 billion in 2006, compared to 2007, due in part to a 56% boost in consumer loans. Mr. Pozo told BNamericas that Banco del Pichincha wants to exceed the system's 20% projected loan growth for this year to retain its leading market share in Ecuador. He said that political uncertainty regarding President Rafael Correa's economic policies might lead to a slowdown in loan increase this year, compared to last year, which grew 26%, or five times the gross domestic product growth. Banco del Pichincha will also aim to boost its efficiency ratio to below 50% in five years from 60%, due to an information technology accord in January 2006 with Indian firm Tata Consultancy Services, BNamericas relates, citing Mr. Pozo. BNamericas underscores that Banco del Pichincha joined the Inter-American Development Bank's regional trade finance facilitation program as "issuing and confirming bank." The deal will give Banco del Pichincha with essential funding for exporters and importers in Ecuador's dollarized economy, Mr. Pozo told BNamericas. 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$3.71 billion at June end. 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: Raises Operations & Investments Budget to US$2.65B ---------------------------------------------------------------- State-owned oil company Petroecuador said in a statement that its board has ratified a US$2.65 billion budget for operations and investments this year. Business News Americas relates that of the US$2.65 billion, about US$1.74 billion will be used for operating costs and some US$912 million is allotted for investments. The Ecuadorian government will also provide Petroecuador with US$2.19 billion for the import of fuel derivatives, BNamericas notes. A Petroecuador spokesperson told BNamericas that the combined US$4.84 billion planned for 2007 is 34.3% higher compared to 2006. According to BNamericas, Petroecuador unit Petroproduccion will get US$512 million from the budget for operations and US$234 million for investments. Among new investments, Petroproduccion will contract four drilling towers to drill 35 new wells: -- 29 development wells, -- two exploratory wells, and -- four are reinjection. BNamericas underscores that Petroproduccion will contract 12 reconditioning towers to conduct 300 well-maintenance works and execute a 3D seismic program to incorporate new reserves. It will also start works on new projects like the Panacocha field. Petroecuador said in a statement that Petroproduccion aims to stabilize production and reach an average of 185,000 barrels per day by the end of 2007, not including block 15. The spokesperson told BNamericas that output on March 19 -- excluding block 15 -- was 170,000 barrels per day. The report says that Petroproduccion's budget includes US$71.5 million for operating partnerships. BNamericas states that Petroecuador's board budgeted US$205 million in operating costs and US$292 million in investments for UB-15, the temporary administration unit operating Petroecuador's block 15. New investments will include drilling nine wells to incorporate new reserves and register output of 85,000 barrels per day at year-end. The spokesperson told BNamericas that production as of March 19 on block 15 was 85,000 barrels per day. UB-15 Chief Executive Officer told BNamericas earlier this month that block 15's production would reach its lowest level of 81,000 barrels per day in April, increasing to 95,000 barrels per day in December, for an annual average of 90,000 barrels per day. BNamericas emphasizes that Petroecuador cancelled the block 15 contract with Occidental Petroleum in May 2006. Output at that time was 100,000 barrels per day. According to the report, Petroecuador's Petroindustrial unit will receive US$166 million for operational costs and US$120 million for investments, with projects including the restoration of the Esmeraldas plant. Meanwhile, the operational budget for unit Petrocomercial in 2007 is US$227 million. The firm will receive US$129 million for investments. It will launch its liquefied petroleum gas storage project and Cuenca-Pascuales multi-purpose pipeline project, among other things. BNamericas notes that the national Sote pipeline will get US$62 million for operation and US$25.2 million for investments. Petroecuador also allocated US$16.2 million for its environmental protection department, BNamericas relates. BNamericas reports that the Ecuadorian economy ministry must also provide Petroecuador with: -- US$25 million to fulfill promises made by the previous government with Amazon towns and council, and -- US$15.1 million for legal costs related to the cases against Oxy and US oil firm Chevron. 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 ===================== ALCATEL-LUCENT: Inks Submarine Cable Network Deal with EASSy ------------------------------------------------------------ Alcatel-Lucent has signed a turnkey contract with the East Africa Submarine Cable System (EASSy) consortium to lay the first ever optical submarine cable network landing in East Africa. Based on Alcatel-Lucent's submarine and terrestrial optical solutions, EASSy will provide connectivity across the continent to support the increase in local traffic from both traditional and new broadband services. Additionally, with interconnection to other submarine cable systems to the North and South, this project will provide an international gateway, crucial for the economic development of the region. With completion scheduled by the end of 2008, the EASSy submarine network will deliver a regional capacity of 320 Gbit/s. Governments, public administrations and businesses will leverage advanced technology to support new applications such as remote medical diagnosis and international call centers. Consumers will benefit from accessible and affordable broadband Internet. The EASSy submarine network will span nearly 10,000 km linking eight countries from Sudan to South Africa, via Djibouti, Somalia, Kenya, Tanzania, Madagascar and Mozambique. Landings will be located in Port Sudan, Djibouti (Djibouti), Mogadishu (Somalia) Mombasa (Kenya), Dar Es Salaam (Tanzania), Toliary (Madagascar), Maputo (Mozambique) and Mtunzini (South Africa). By interconnecting with Sea-Me-We 3, Sea-Me-We 4, SAS1, Falcon and SAT3/ WASC /SAFE, the EASSy submarine cable system will also serve as a supporting infrastructure for these networks. "This project represents a milestone in the development of the African communication infrastructure, where there is a strong need for optical connectivity," Sammy Kirui, Chairman of the EASSy Project Management Committee and Managing Director of Telkom Kenya, said. "Alcatel-Lucent is recognized as one of the key turnkey suppliers in the submarine cable market and was selected through a competitive tendering process." "Globalization of the economy and the Internet have enhanced communications, and submarine networks contribute greatly by connecting almost every corner in the world," said Jean Godeluck, President of Alcatel-Lucent's submarine network activity. "Our turnkey approach to projects allows consortia like EASSy to continue breaking barriers and extending communications capabilities to those areas which are not adequately served." The Alcatel-Lucent submarine solution will be based on its 1620 Light Manager next-generation DWDM submarine platform, and will also include cables and submarine repeaters. Branching units will ensure direct connectivity to landing stations where Alcatel-Lucent will deploy its 1678 Metro Core Connect (MCC) for terrestrial interconnection. The Alcatel-Lucent 1350 management system will supervise all the equipment supplied. A comprehensive suite of professional services, including project management, engineering, marine operation, and installation testing and commissioning, is part of this turnkey project. About the EASSy Consortium EASSy is a project set up by 22 licensed telecommunications operators in the Eastern and Southern African region and a few international carriers. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work, and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Australia, Brunei, and Cambodia. * * * As of Feb. 7, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB- rating. It's Short-Term Corporate Credit rating stands at B. Moody's, on the other hand, put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. ================= G U A T E M A L A ================= BRITISH AIRWAYS: EU Court Upholds EUR6.8-Mln Fine Imposed by EC --------------------------------------------------------------- The European Commission welcomed the judgment by the European Court of Justice definitely dismissing British Airways plc's claims against the Commission's decision of July 1999 imposing on it a fine as a result of abusive conduct (case C-95/04 P). BA filed an appeal against that judgment before the ECJ. However, the ECJ dismissed the appeal as in part inadmissible and in part unfounded. The ECJ has stated that, in an appeal, it is not the function of the Court of Justice to substitute its own assessment of market data and the competition situation for that of the Court of First Instance. The appeal must be limited to questions of law. The assessment of facts is not a question of law, which can be submitted to the Court of Justice for review. As a result, the pleas in which BA challenges assessments of facts and evidence by the Court of First Instance are inadmissible. The ECJ confirms that the bonus schemes (including the so-called "performance reward schemes") used by BA to calculate travel agents' commissions constitute an abuse of dominant position in violation of Article 82 of the EC Treaty and keeps the level of the fine unchanged at EUR6.8 million. The judgment confirms the application of an approach under European competition law based on the effects on the market(s) of the conduct in question. On July 14, 1999, the Commission found that BA had abused its dominant position on the United Kingdom market for air travel agency services and accordingly fined BA EUR6.8 million. BA appealed that decision before the Court of First Instance. The latter rejected its appeal in December 2003. The ECJ judgment confirms the CFI ruling on all points subject to the appeal. ECJ Finds Bonus Schemes "Abusive" The ECJ holds that bonus schemes may be abusive even if they do not correspond exactly to the types of loyalty bonuses that have been condemned in past judgments. More generally, the ECJ confirms that the list of abusive conduct in Article 82 is not exhaustive; the practices there mentioned are merely examples of abuses of a dominant position. The judgment holds that bonuses granted by dominant companies can be abusive if they are likely to reduce competition on the market, that is to say, as the Court stated, "whether they are capable, first, of making market entry very difficult or impossible for competitors of the undertaking in a dominant position and, secondly, of making it more difficult or impossible for its co-contractors to choose between various sources of supply or commercial partners". In addition, it has to be determined "whether the exclusionary effect arising from such a system, which is disadvantageous for competition, may be counterbalanced, or outweighed, by advantages in terms of efficiency which also benefit the consumer". The ECJ confirms that the CFI did not err in law when it found that the bonuses granted by BA were abusive since they had the effect of excluding rivals of BA from the market without any objective economic justification. British Airways' Illegal Conduct In its decision of July 1999, the Commission found that the performance reward schemes implemented by BA in order to calculate travel agents' commissions constituted an abuse of the dominant position held by BA on the United Kingdom market for air travel agency services. Although their exact functioning changed over time (BA modified its bonuses policy in 1998), the commission schemes put in place by BA had one notable feature in common: in each case, meeting the targets for sales growth led to an increase in the commission paid on all BA tickets sold by the agent, not just on the tickets sold after the target is reached. Such commissions were considered to be equivalent to a "loyalty discount" i.e. a discount based not on cost savings but simply on customers' loyalty, thereby able to exclude the dominant firm's competitors from the market. Indeed, the effect of such performance reward schemes was to encourage United Kingdom travel agents to maintain or increase their sales of BA tickets, to the detriment of sales of tickets of rival airlines. These schemes therefore created illegal barriers to airlines that wished to compete against BA on the U.K. markets for air transport. The case began following a complaint lodged by rival Virgin Atlantic Airways. About the Company Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. BA has offices in India and Guatemala. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. ========= H A I T I ========= * HAITI: To Get 14,000 Barrels of Crude Per Day from Venezuela -------------------------------------------------------------- Venezuelan President Hugo Chavez and his Haitian counterpart, Rene Preval, inked a crude supply agreement under the Petrocaribe initiative. Under the agreement, Haiti will receive 14,000 barrels of oil per day from Petroleos de Venezuela S.A. and will pay 60% of the bill within 90 days from delivery. The rest of the payment will be paid over a 25-year period at an annual 1% interest rate. The Petrocaribe initiative, launched in June 2005, allows member-nations to purchase up to 185,00 barrels of oil at preferential payment. In addition, it allows for nations to pay for oil with other products like banana, rice and sugar. * * * Haiti is currently seeking international help to spur economic development in the country. President Rene Preval submitted that the country's poverty, widespread unemployment and the dilapidated state of infrastructure will be alleviated with increased international assistance. =============== H O N D U R A S =============== LEAR CORP: Faces Lawsuits Over US$2.31-Bln Sale to Carl Icahn ------------------------------------------------------------- Southfield, Michigan-based Lear Corp. is facing six purported class actions filed by certain shareholders seeking to block the automotive parts supplier's acquisition by billionaire investor Carl Icahn, according to the company's Feb. 27, 2007 Form 10-K filing with the U.S. Securities and Exchange Commission for the period ended Dec. 31, 2006. In February, the company agreed to a US$2.31 billion buyout offer from Icahn-controlled American Real Estate Partners LP. The transaction involves Mr. Icahn paying US$36 per share for the shares he does not already own, according to reports. Under the terms of the agreement, Lear was allowed to solicit alternate proposals for 45 days. Between Feb. 9, 2007 and Feb. 21, 2007, certain stockholders filed six purported class actions against the company, certain members of the board of directors and American Real Estate Partners, L.P. and certain of its affiliates (AREP). Three of the lawsuits were filed in the Delaware Court of Chancery and have since been consolidated into a single action. Another three were filed in Michigan Circuit Court. The class action complaints, which are substantially similar, generally allege that the Agreement and Plan of Merger unfairly limits the process of selling Lear and that certain members of the company's board of directors have breached their fiduciary duties in connection with the Merger Agreement and have acted with conflicts of interest in approving the Merger Agreement. The lawsuits seek to enjoin the merger, to invalidate the Merger Agreement and to enjoin the operation of certain provisions of the Merger Agreement, a declaration that certain members of the company's Board of Directors breached their fiduciary duties in approving the Merger Agreement and an award of unspecified damages or rescission in the event that the proposed merger with AREP is completed. On Feb. 23, 2007, the plaintiffs in the consolidated Delaware action filed a consolidated amended complaint, a motion for expedited proceedings and a motion to preliminarily enjoin the merger contemplated by the Merger Agreement. The company believes that the lawsuits are without merit and intend to defend against them vigorously. About the Company Southfield, Mich.-based Lear Corp. (NYSE: LEA) -- http://www.lear.com/-- is a global supplier of automotive interior systems and components. Lear provides complete seat systems, electronic products, electrical distribution systems, and other interior products. Lear also operates in Argentina, Austria, Belgium, Brazil, Canada, China, Czech Republic, United Kingdom, France, Germany, Honduras, Hungary, India, Italy, Japan, Mexico, Morocco, Netherlands, Philippines, Poland, Portugal, Romania, Russia, Singapore, Slovakia, South Africa, South Korea, Spain, Sweden, Thailand, Tunisia, Turkey, and Venezuela. * * * In a TCR-Europe report on Feb. 13, Standard & Poor's Ratings Services lowered its corporate credit rating on Southfield, Mich.-based Lear Corp. to 'B' from 'B+ and placed its ratings on CreditWatch with negative implications following Lear's announcement that it had agreed to be acquired by Carl Icahn- controlled American Real Estate Partners, L.P. As reported in the Troubled Company Reporter-Europe on Feb. 8, Moody's Investors Service placed the long-term ratings of Lear Corporation, corporate family rating at B2, under review for possible downgrade. The company's speculative grade liquidity rating of SGL-2 was affirmed. ============= J A M A I C A ============= GOODYEAR TIRE: Inks Tentative Pact with United Steelworkers ----------------------------------------------------------- Goodyear Tire & Rubber Co. has reached a tentative agreement on local issues with the United Steelworkers of America after five weeks of negotiations, Melissa Willett of The Fayetteville Observer reports. The report says the agreement, which mainly addressed scheduling, hiring and vacation time, provides, among others, that: a) all workers except maintenance -- craftsmen, electricians and machinists -- will be given multiple shift options; and b) maintenance workers will be split into two shifts -- one working eight hours and the other working 12 hours. Amended Pension Plans Early this month, the company made a series of changes to its U.S.-based retail and salaried employee pension and retiree benefit plans aimed at increasing its global competitiveness while significantly reducing its cost structure. The changes will be phased in over a two-year period, with most benefit plan changes effective in 2008 and the most significant pension plan changes in 2009. As a result, Goodyear expects after-tax savings of US$80 million to US$90 million in 2007, US$100 million to US$110 million in 2008, and US$80 million to US$90 million in 2009 and beyond. The actions are expected to reduce the company's pension obligation by approximately US$100 million and its obligation for other post retirement benefits by about US$525 million assuming interest rates used to value the obligations remain similar to those used at Dec. 31, 2006. Goodyear plans to record a one-time after-tax charge of approximately US$65 million related to these actions in the first quarter of 2007. Benefit plan changes effective Jan. 1, 2008, include: * Increasing the amounts that current and future salaried retirees contribute toward the cost of their medical benefits; * Redesigning retiree medical benefit plans to minimize cost impact on premiums; * Closing the company's Medicare supplement plan to new entrants; and * Discontinuing company-paid life insurance for salaried retirees. The pension changes include: * Freezing the current salaried defined benefit pension plans as of Dec. 31, 2008; * Replacing the defined benefit pension plans with enhanced 401(k) savings accounts with varying levels of company contributions for current associates beginning Jan. 1, 2009; and * Introducing company-matching contributions for the salaried 401(k) savings plan at 50 percent of the first 4 percent of annual pay beginning Jan. 1, 2009. About The Goodyear Tire & Rubber Company Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear Tire has marketing operations in almost every country around the world including Chile, Colombia, Guatemala, Jamaica and Peru in Latin America. Goodyear employs more than 80,000 people worldwide. * * * As reported in the Troubled Company Reporter-Latin America on March 19, 2007, Fitch Ratings has affirmed ratings for The Goodyear Tire & Rubber Company and revised the Rating Outlook to Stable from Negative. The ratings affirmed are: * The Goodyear Tire & Rubber Company -- Issuer Default Rating 'B'; -- US$1.5 billion first lien credit facility 'BB/RR1'; -- US$1.2 billion second lien term loan 'BB/RR1'; -- US$300 million third lien term loan 'B/RR4'; -- US$650 million third lien senior secured notes 'B/RR4'; and -- Senior unsecured debt 'CCC+/RR6'. =========== M E X I C O =========== ADVANCE FOOD: S&P Affirms Ratings After Increasing Term Loans ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its corporate credit and bank loan ratings on Advance Food Co., including the company's senior secured first-lien and second-lien bank facilities, following the recent announcement that the company will increase the first-lien term loan facility by US$15 million and reduce the second-lien term loan facility by the same amount. The outlook is negative. At the same time, Standard & Poor's lowered the recovery rating on the first-lien facility to '3' from '2', indicating an expectation for meaningful (50%-80%) recovery of principal in the event of a payment default. The '5' recovery rating on the company's US$50 million second-lien term loan facility was affirmed, indicating an expectation for negligible (0%-25%) recovery of principal in the event of a payment default. "The rating action reflects first-lien lenders' less favorable recovery position following the incremental debt added to the first-lien term loan facility," said Standard & Poor's credit analyst Mark Salierno. The ratings reflect Advance Food's highly leveraged capital structure, aggressive financial policy, high customer and supplier concentration, and narrow business focus. These factors are partially mitigated by the company's leading position in its niche markets and existing long-term relationships with its distributors and end users. Advance Food Co. is a developer, manufacturer, and marketer of processed food items, including meat products and ready-to-serve non-meat products. Restaurants represent a majority of the company's end users, although the company is a niche player in the US$460 billion food-prepared-away-from-home market in the U.S. This market includes many larger, financially stronger competitors, particularly vertically integrated processors and suppliers of meat such as Tyson Foods and Smithfield Foods. Advance Food, based in Enid, Oklahoma, operates nine manufacturing facilities in five states, a nationwide distribution network and sells internationally to Canada, Mexico, Germany, Japan and the Caribbean. Advance currently produces nearly 2200 center-of-the-plate products made from beef, pork, poultry, lamb and veal. Proforma 2006 revenues exceed US$530 million. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 26, 2007, Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Advance Food Co. In addition, Standard & Poor's assigned its bank loan and recovery ratings to Advance Food's proposed US$250 million first-lien senior secured credit facility and US$65 million second-lien term loan facility. The first-lien facility was rated 'B+' (at the same level as the corporate credit rating), with a recovery rating of '2', indicating the expectation of substantial (80%-100%) recovery of principal in the event of a payment default. The second-lien facility was rated 'B-' (two notches below the corporate credit rating), with a recovery rating of '5', indicating the expectation that second-lien lenders can expect negligible (0%-25%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and are subject to review upon final documentation. The outlook is negative. ADVANCED MARKETING: Can Pay Employees Under Retention Bonus Plan ---------------------------------------------------------------- The Hon. Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware has authorized Advanced Marketing Services Inc. and its debtor-affiliates to pay key AMS Employees retention bonuses aggregating US$820,000 under the AMS Retention Bonus Plan. Judge Sontchi further rules that: -- the Debtors may use up to US$50,000 of the Retention Plan Fund to add additional individuals to the Retention Plan or to increase the amount of a particular employee's retention pay, with the consent of the Official Committee of Unsecured Creditors. If the Committee does not consent, the Debtors must obtain prior Court approval. -- all payments under the Retention Plan will be in lieu of any other performance bonus, severance pay, or retention compensation or other plan program. -- certain individuals which the Debtors propose to include in the Retention Plan have been deferred from participation in the Retention Plan and will be considered for participation by the Court on March 13, 2007, at 10:30 a.m., which, if approved by the Court, will correspondingly increase the aggregate amount of the Retention Plan Fund. The provision for postpetition payments pursuant to the Retention Plan will be administrative expenses of the estates, Judge Sontchi says. As reported in the Troubled Company Reporter on March 6, 2007, the Debtors asked the Court for approval for the payment of: a) sale-related incentives to AMS employees including members of senior management (AMS Management Incentive Plan) b) retention plan to certain AMS non-management employees (AMS Employee Retention Plan) c) allowing all payments thereunder as administrative expenses of the estates. The request was made to ensure the continued availability of qualified, trained, and motivated personnel and executives necessary to bring an AMS sale to completion and to oversee and implement the complicated business arrangements necessary to effect a sale of the business or its material parts and an inventory return program. 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. (Advanced Marketing Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ADVANCED MARKETING: Hires Houlihan Lokey as Investment Banker ------------------------------------------------------------- The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware authorized Advanced Marketing Services Inc. and its debtor affiliates to employ Houlihan Lokey Howard & Gukin Capital Inc. as their investment banker, at the expense of the Chapter 11 estate, nunc pro tunic to Jan. 14. As reported in the TCR-Europe on Feb. 20, The Official Committee of Unsecured Creditors, as well as Kelly Beaudin Stapleton, the United States Trustee for Region 3, filed objections to the Debtors' motion. Mark D. Collins, Esq., at Richards, Layton & Finger, PA, in Wilmington, Delaware, relates that Houlihan Lokey is one of the leading advisors and investment bankers to troubled companies, both inside and outside of bankruptcy. The firm's Financial Restructuring Group has advised more than 500 transactions, valued in excess of US$200 billion, over the past 12 years. The Debtors have chosen Houlihan Lokey to act as their investment banker because the firm has substantial expertise in advising them, and is well qualified to perform the services and represent their interests in the Chapter 11 cases, Mr. Collins explains. As investment banker, Houlihan Lokey will: (a) evaluate the Debtors' strategic options based on Houlihan's initial review; (b) advise the Debtors generally as to available financing and capital restructuring alternatives, including recommendations of specific courses of action; (c) assist the Debtors with the development, negotiation and implementation of a restructuring plan, including participation as an advisor to the Debtors in negotiations with creditors and other parties involved in a restructuring; (d) assist the Debtors, if required, to draft an information memorandum to seek potential new capital, and to solicit, coordinate and evaluate indications of interest regarding a transaction; (e) assist the Debtors with the design of any debt and equity securities or other consideration to be issued in connection with a Transaction; (f) advise the Debtors as to potential mergers or acquisitions, and the sale or other disposition of any of the Debtors' assets or businesses; (g) assist the Debtors in communications and negotiations with its constituents; including, creditors, employees, vendors, shareholders, and other parties in interest in connection with any Transaction; (h) assist the Debtors in locating and negotiating debtor-in- possession financing with a new lender to replace the DIP financing with Wells Fargo Foothill, Inc., in effect as of the Effective Date of the Agreement; and (i) render other financial advisory and investment banking services as may be mutually agreed upon by Houlihan and the Debtors. Houlihan Lokey will be paid a flat monthly fee of US$150,000 for the first three months of the engagement, and US$100,000 per month afterwards. The Debtors will also pay the firm: (1) a Financing Fee upon the consummation of a DIP Financing Transaction on behalf of the Debtors equal to the greater of (i) US$750,000 and (ii) 1.25% of the aggregate principal amount of DIP Financing raised or committed; (2) a M&A Transaction Fee equal to a minimum of US$1.25 million plus incremental increases; and (3) a US$1.25 million Restructuring Transaction Fee. Houlihan Lokey will be reimbursed for all its reasonable out-of- pocket expenses. According to Mr. Collins, Houlihan Lokey's restructuring expertise, as well as its capital markets knowledge, financing skills, and mergers and acquisitions capabilities, some or all of which may be required by the Debtors during the term of the engagement, were important factors in the determination of the amount of the firm's fees. As its compensation will be calculated and paid based on certain transaction fees, Houlihan Lokey will not be required to file time records, Mr. Collins adds. Rather, in its fee applications filed with the Court, Houlihan Lokey would present descriptions of those services provided on behalf of the Debtors and the individuals who provided the professional services. The Debtors would indemnify and hold Houlihan Lokey harmless against liabilities arising out of or in connection with its retention. Christopher R. Di Mauro, managing director at Houlihan Lokey, assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Objections (a) Committee The Official Committee of Unsecured Creditors said it is inappropriate and unnecessary at this juncture for the Debtors to retain Houlihan Lokey or any other investment banker. Given the high fees Houlihan Lokey is seeking, there is no benefit to the estates and creditors to retain them at this time, Thomas F. Driscoll III, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware, told Judge Sontchi. Any beneficial services that Houlihan Lokey could realistically provide at this point can be provided by the Debtors' other professionals, Mr. Driscoll maintains. It is also possible that Jefferies & Company, Inc., the Debtors' prepetition investment banker, will make a claim for compensation, he added. Houlihan Lokey's compensation must be subject to review under Section 330 of the Bankruptcy Code. A greater portion of any monthly fees awarded to Houlihan Lokey should be credited against any M&A Transaction Fee Houlihan may become entitled to in these cases, Mr. Driscoll asserts. (b) U.S. Trustee Kelly Beaudin Stapleton, the United States Trustee for Region 3, reminded the Court that professional fees may not be awarded unless and until the applicant shows that there is a benefit to the estate. The fees must be reasonable and necessary, she added. Ms. Stapleton noted that Houlihan Lokey's monthly fee, if allowed, should be subject to Section 330 standards, while the various transaction and financing fees should be disallowed under the "improvident" standard set forth in Section 328 and subject to Section 330. With respect to the objections filed by the Official Committee of Unsecured Creditors and the U.S. Trustee, the Court ruled that: (a) Houlihan Lokey will receive a Transaction Fee during the Tail Period only if an M&A Transaction or Restructuring Transaction is caused or procured by Houlihan Lokey; and (b) if Houlihan Lokey commences a process intending to raise exit financing or other sources of capital in support of a Transaction, its proposed fees will be submitted upon proper notice in an application to the Court for approval. Judge Sontchi said Houlihan Lokey will be compensated for its services, and reimbursed for any related expenses, in accordance with Section 328(a) of the Bankruptcy Code, the Bankruptcy Rules, the Local Bankruptcy Rules and any other applicable orders of the Court. The firm's fees and expenses will be paid in the amounts, at the times and in the manner, described in the Engagement Letter. The Debtors and the Committee are permitted to review the Monthly Fees pursuant to the reasonableness standards set forth in Section 330 of the Bankruptcy Code provided that the number of hours spent by Houlihan Lokey's personnel during any given monthly period will not be the sole basis for any objection. All other fees to which Houlihan Lokey is entitled will be subject to review by the U.S. Trustee, the Committee, the Debtors, and all parties-in-interest under the standards set forth in Section 328(a). In the event that Jefferies & Co., Inc., moves for, and is granted, a claim in connection with any sale of the Debtors' assets which also gives rise to a M&A Transaction Fee or Restructuring Fee, the Committee, the U.S. Trustee and the Debtors may challenge, and the Court will review, for reasonableness, that portion of the Houlihan Lokey M&A Transaction Fee or Restructuring fee which is in the equivalent amount of the allowed Jefferies Section 503(b) claim. Houlihan Lokey will file interim and final fee applications. In the event that Houlihan Lokey is required to contribute to any losses, claims, liabilities or expenses, any limitation of the contribution in the Engagement Letter will not apply. If, before the earlier of (i) the entry of an order confirming a Chapter 11 plan in the Debtors' cases, and (ii) the entry of an order closing the Chapter 11 cases, Houlihan Lokey believes that it is entitled to indemnification claims under the Engagement Letter and the application, the firm must file an application in the Court, and the Debtors may not pay any amounts to Houlihan Lokey before the entry of a Court order approving the payment. The Debtors will indemnify and hold Houlihan Lokey harmless against liabilities arising out of or in connection with its retention by the Debtors except for any losses, claims, damages, or liabilities incurred by the Debtors that are finally judicially determined by a court of competent jurisdiction to have resulted from Houlihan Lokey's gross negligence, willful misconduct or fraud. Houlihan Lokey is excused from maintaining time records as set forth in Rule 2016 in connection with the services to be rendered pursuant to the Engagement Letter. The firm is permitted to: (a) present summary time descriptions of those services provided on behalf of the Debtors and the individuals who provided professional services on behalf of the Debtors for work performed prior to the entry of the Order; and (b) maintain time records in half-hour increments in connection with the services to be rendered pursuant to the Engagement Letter for work performed after the entry of the Order. The U.S. Trustee's objection has been withdrawn. 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 around 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. (Advanced Marketing Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Debtors' exclusive period to file a chapter 11 plan expires on April 28, 2007. AMERICAN TOWER: Ronald M. Dykes Joins Board of Directors -------------------------------------------------------- American Tower Corp.'s Board of Directors elected Ronald M. Dykes as a member of the Board, effective March 21, 2007. Mr. Dykes brings over 34 years of telecommunications industry experience to the company's Board of Directors. Mr. Dykes is the former Chief Financial Officer of BellSouth Corp., a position he retired from in 2005. In addition, from October 2000 through December 2005, Mr. Dykes served as a director of Cingular Wireless, most recently as Chairman of the Board. "Ron will be a tremendous addition to our board, bringing both his deep understanding of the telecom industry and his Chief Financial Officer experience to the table," said Jim Taiclet, American Tower's Chairman and Chief Executive Officer. "Ron is a respected industry leader with an outstanding track record of accomplishments. We are truly excited to be working closely with him as we pursue our Company vision of serving our customers as the premier wireless communications infrastructure provider." "I am pleased to join the American Tower team," said Mr. Dykes. "American Tower plays an important role in the wireless communications industry, and I look forward to contributing to the company's success as a member of the Board." Headquartered in Boston, Massachusetts, American Tower Corp. (NYSE: AMT) -- http://www.americantower.com/-- is an independent owner, operator and developer of broadcast and wireless communications sites in the United States, Mexico and Brazil. American Tower owns and operates over 22,000 sites in the United States, Mexico, and Brazil. Additionally, American Tower manages approximately 2,000 revenue producing rooftop and tower sites. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 16, 2007, Moody's Investors Service upgraded the corporate family rating of American Tower Corp. to Ba1 from Ba2, affirmed the company's SGL-1 liquidity rating and changed the ratings of its various debt instruments pursuant to the loss given default methodology. This concludes the ratings review commenced Dec. 11, 2006. Moody's said the outlook is stable. As reported in the Troubled Company Reporter-Latin America on Feb. 14, 2007, Fitch Ratings has upgraded the ratings on American Tower Corp. and its subsidiaries as: American Tower Corp. -- Issuer Default rating to 'BB+' from 'BB-'; -- Senior Unsecured notes to 'BB+' from 'BB-'. American Towers Inc. -- IDR to 'BB' from 'BB-'. SpectraSite Communications Inc. -- IDR to 'BB' from 'BB-'. AMR CORP: Dec. 31 Balance Sheet Upside-Down by US$606 Million ------------------------------------------------------------- AMR Corp. reported net earnings for the year ended Dec. 31, 2006, of US$231 million, compared with net loss of US$857 million for the previous year. The company's 2006 results reflected an improvement in revenues somewhat offset by fuel prices and certain other costs that were higher in 2006, compared to 2005. The company's total operating revenues were US$22.56 billion, which consisted of US$17.86 billion in revenues from American Airlines, US$2.5 billion in revenues from Regional Affiliates, US$827 million cargo revenues, and US$1.37 billion in other revenues, for the year ended Dec. 31, 2006. The company had total operating revenues of US$20.71 billion for the year ended Dec. 31, 2005. As of Dec. 31, 2006, the company's balance sheet showed US$29.14 billion in total assets, US$29.75 in total liabilities, resulting to US$606 million in stockholders' deficit. The company's December 31 balance sheet also showed strained liquidity with US$6.9 billion in total current assets available to pay US$8.5 billion in total current liabilities. Unrestricted cash and short-term investments held by the company as of Dec. 31, 2006, was US$121 million and US$4.59 billion, respectively, as compared with cash of US$138 million and US$3.67 billion, respectively, as of Dec. 31, 2005. AMR Corp.'s working capital deficit decreased by US$505 million, from US$2.11 billion at Dec. 31, 2005, to US$1.6 billion at Dec. 31, 2006. AMR Corp. continues to recapitalize its balance sheet and in May 2006, issued 15 million shares of common stock for net proceeds of US$400 million. On Jan. 26, it issued an additional 13 million shares of common stock for net proceeds of US$497 million. Credit Facility American Airlines, Inc. has a fully drawn US$740 million credit facility which consists of a fully drawn US$295 million senior secured revolving credit facility, with a final maturity on June 17, 2009, and a fully drawn US$445 million term loan facility, with a final maturity on Dec. 17, 2010. American's obligations under the Credit Facility are guaranteed by AMR Corp. The Credit Facility contains a covenant requiring American to maintain, as defined, unrestricted cash, unencumbered short term investments and amounts available for drawing under committed revolving credit facilities of not less than US$1.25 billion for each quarterly period through the life of the Credit Facility. The required ratio was 1.2 to 1 for the four-quarter period ending Dec. 31, 2006, and will increase gradually for each four- quarter period ending on each fiscal quarter thereafter until it reaches 1.5 to 1 for the four-quarter period ending June 30, 2009. A full-text copy of the company's annual report for 2006 is available for free at http://ResearchArchives.com/t/s?1b0e About AMR Corp. Forth Worth, Tex.-based AMR Corp., operates with its principal subsidiary, American Airlines, Inc., -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to approximately 150 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines, Inc. and Executive Airlines, Inc. and does business as "American Eagle." The American Eagle carriers provide connecting service from eight of American's high-traffic cities to smaller markets throughout the United States, Canada, Mexico and the Caribbean. American also contracts with three independently owned regional airlines, which does business as the American Connection. American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. BEARINGPOINT INC: Lenders Extend Waiver Until March 30 ------------------------------------------------------ BearingPoint Inc. obtained on March 15 a limited waiver to the Fifth Amended Credit Agreement, dated as of Oct. 31, 2006, among the company, BearingPoint, LLC, the guarantors party, the lenders party, General Electric Capital Corporation, as syndication agent and collateral agent, Wells Fargo Foothill, LLC, as documentation agent, UBS Securities, LLC, as lead arranger, UBS AG Stamford Branch, as issuing bank and administrative agent, and UBS Loan Finance LLC, as swingline lender. Among other things, the Waiver waives the delivery requirement of the company's Form 10-K for the year ended Dec. 31, 2006 and of its Forms 10-Q for the fiscal quarters ended March 31, 2006 and June 30, 2006, until March 30. The Company said in a regulatory filing with the U.S. Securities and Exchange Commission that it currently expects to file its Forms 10-Q for fiscal 2006 as soon as reasonably practicable after the 2006 Form 10-K filing. The Company has sought and obtained the additional Waiver to permit the lenders under the Credit Facility time to review and consider the Company's request to obtain certain additional amendments to the terms of the Credit Facility and to work toward execution of a single amendment that would, among other things, extend the deadline for filing the 2006 Form 10-K and its other SEC periodic reports, consistent with the Company's previous announcements. On July 19, 2005, the company entered into a US$150 million Senior Secured Credit Facility, which was amended on Dec. 21, 2005, March 30, 2006, July 19, 2006, Sept. 29, 2006, and Oct. 31, 2006. The 2005 Credit Facility provides for revolving credit and advances, including issuance of letters of credit. Advances under the revolving credit line are limited by the available borrowing base, which is based upon a percentage of eligible accounts receivable. As of Dec. 31, 2005, the company did not have availability under the borrowing base. As of Sept. 30, 2006, the company had approximately US$22 million available under the borrowing base. About BearingPoint Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE: BE) -- http://www.BearingPoint.com/-- provides of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. The firm has approximately 17,500 employees, and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. BearingPoint has global locations including in Indonesia, Australia, Austria, China, India, Japan, Mexico, Portugal, Singapore and Thailand. * * * Moody's Investors Service's rated BearingPoint Inc.'s 2.5% Series A Convertible Subordinated Debentures due 2024 at B3. DISTRIBUTED ENERGY: Losses Cue PwC to Raise Going Concern Doubt --------------------------------------------------------------- PricewaterhouseCoopers LLP expressed substantial doubt on Distributed Energy Systems Corp.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2006. The auditing firm points to the company's recurring operating losses and cash outflows from operations. The company disclosed that it had expected a going concern doubt statement from its auditors due to unsatisfactory results for the fourth quarter and full year 2006. For the full year 2006, the company incurred a net loss of US$53.35 million on total revenues of US$45.09 million, versus a net loss of US$16.24 million on total revenues of US$44.97 million for the full year 2005. The company's balance sheet as of Dec. 31, 2006, showed total assets of US$69.88 million and total liabilities of US$23.14 million, resulting to total stockholders' equity of US$46.74 million. Its accumulated deficit in 2006 totaled US$189.26 million, up from US$135.91 million in 2005. Cash and cash equivalents and marketable securities as of Dec. 31, 2006, stood at US$4.91 million and $13.25 million, respectively. About Distributed Energy Based in Wallingford, Connecticut, Distributed Energy Systems Corp. (Nasdaq: DESC) -- http://www.distributed-energy.com/-- creates and delivers products and solutions to the emerging decentralized energy marketplace, giving users greater control over their energy cost, quality and reliability. The company delivers a combination of practical, ready-today energy solutions and the solid business platforms for capitalizing on the changing energy landscape. The company has operations in Mexico. KANSAS CITY SOUTHERN: Unit to Build San Luis Railway Terminal ------------------------------------------------------------- Jose Zozaya -- president of Kansas City Southern de Mexico S. de R.L. de C.V., Kansas City Southern's Mexican subsidiary -- told daily El Norte that the firm has signed a US$270-million agreement to construct a new railway terminal in San Luis Potosi. Jaime Valdez, Kansas City Southern de Mexico's director of institutional relations, said that the project is still in its conceptual stages, Business News Americas relates. Mr. Valdez told BNamericas that project designs and studies will be conducted in the second half of 2007, with the works expected to start in 2008. As part of the project, Kansas City Southern de Mexico will end operations at its existing terminal in the center of San Luis Potosi city, and construct a new one in its eastern industrial district. BNamericas underscores that the purpose of the new terminal will be to decongest traffic flows in San Luis Potosi, part of the Kansas City Southern de Mexico's plan to improve community relations in all of the areas where it operates. Mr. Valdez told BNamericas that Kansas City Southern de Mexico will also turn over its existing tracks running through the center of San Luis Potosi to the communication and transport ministry, which will offer them under concession to a firm to use as a new urban transit line running from the north to the south of the city. The new terminal will have almost 200% more capacity compared to the existing one. It will be able to handle up to 1,000 cars, compared to the existing terminal's 350-car capacity, BNamericas says, citing Mr. Valdez. Mr. Valdez told BNamericas that Kansas City Southern de Mexico will partly finance the works with public funds received for giving back the land and facilities that it is using in the city center under a US$1.4-billion concession obtained in 1997. The new terminal will be the most modern in Latin America because of its design and its synchronized systems and communication, Mr. Zozaya commented to El Norte. Kansas City Southern de Mexico has similar plans in northern Nuevo Leon state capital Monterrey, and its Nuevo Laredo municipality, as well as for Coahuila state capital Saltillo, BNamericas states, citing Mr. Valdez. Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the US, Mexico and Panama. Its primary U.S. holding includes KCSR, serving the central and south central US. Its international holdings include Kansas City Southern de Mexico, serving northeastern and central Mexico and the port cities of L zaro C rdenas, Tampico and Veracruz, and a 50% interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Standard & Poor's Ratings Services affirmed its ratings on Kansas City Southern, including the 'B' corporate credit rating, and removed the ratings from CreditWatch, where they were placed Jan. 29, 2007. The 'D' rating on the preferred stock was not on CreditWatch. SHILOH INDUSTRIES: Discloses Unfavorable Results of Litigation -------------------------------------------------------------- Shiloh Industries, Inc. disclosed that on March 16, 2007, a jury verdict was entered against the company in the United States District Court in Akron, Ohio following a jury trial in a claim by the bankruptcy estate of Valley City Steel, LLC relating to the company's sale of certain assets in 2001. Valley City Steel, LLC claimed that the company's sale of certain assets to Valley City Steel, LLC, in connection with the creation of the joint venture in which the company was a minority shareholder, amounted to a constructive fraudulent conveyance under Ohio law. The plaintiff also alleged that certain amounts were due and owing on account to Valley City Steel, LLC. The jury verdict against the company was approximately US$4.9 million, US$4.6 million of which related to the constructive fraudulent conveyance claim. The company believes that the verdict relating to the constructive fraudulent conveyance claim is contrary to the facts and the law and the company intends to file post-trial motions including a motion for a new trial and other relief. The company will vigorously appeal any final constructive fraudulent conveyance judgment if the court denies the post- trial motions. The company believes that there are valid grounds to reverse, or reduce the damages applicable to, the portion of any final judgment relating to the constructive fraudulent conveyance claim on appeal. There can be no assurance that the company's appeal will be successful. About Valley City Headquartered in Valley City, Ohio, Valley City Steel, LLC, is a subsidiary of Viking Steel LLC. The Company filed for chapter 11 protection on November 27, 2002 (Bankr. N.D. Ohio Case No. 02-55516). Howard E. Mentzer, Esq., at Mentzer, Vuillemin and Mygrant Ltd., represents the Debtor. When it filed for bankruptcy, the Company reported assets and debts between US$10 million and US$50 million. About Shiloh Headquartered in Valley City, Ohio, Shiloh Industries, Inc. (NASDAQ:SHLO) -- http://www.shiloh.com/-- manufactures first operation blanks, engineered welded blanks, complex stampings and modular assemblies for the automotive and heavy truck industries. The Company has 15 wholly owned subsidiaries at locations in Ohio, Georgia, Michigan, Tennessee and Mexico, and employs approximately 1,890. * * * As reported in the Troubled Company Reporter on Feb. 26, 2007, Moody's Investors Service affirmed the ratings for Shiloh Industries, Inc's Corporate Family at Ba3; and Probability of Default at B1. Moody's also affirmed the ratings of the company's guaranteed first lien senior secured credit facility, Ba2, LGD2, 24%. Moody's said the outlook remains stable. ================= N I C A R A G U A ================= XEROX CORP: Launches Latest Ads to Increase Consulting Services --------------------------------------------------------------- Xerox Corp. is launching new advertising campaigns and marketing programs designed to bolster the fastest growing segments of its business: consulting services and color. A series of new print ads positions Xerox Global Services as the premier consulting and outsourcing partner for document management needs. Aimed at C-level decision makers and IT executives, the ads are running in publications including Harvard Business Review, CIO Magazine, CFO Magazine as well as online Web sites including Business Week, The Economist, Financial Times and The New York Times. One ad spotlights a team of Xerox consultants under the banner "We Find Millions." It focuses on document assessment services that result in millions in cost savings at companies like Owens Corning and InterContinental Hotels Group. Another ad -- titled "We Retrieve" -- shows a golden retriever with a duck decoy in its mouth, an analogy for how Xerox helps search, retrieve and manage everything from accounting and HR documents to legal contracts at organizations such as JP Morgan Chase and Enterprise Rent-A-Car Company. A third ad, headlined "We Go One to One" emphasizes personalized, targeted customer communications that boost response rates. In early April, Xerox will debut additional print ads and two new television commercials around the theme of affordable color for businesses small to large. These ads promote Xerox's growing line of affordable color printers and multifunction systems that print, copy, fax and scan. One ad shows three colorful owls with the words "Wise Color" in the background. The sub-head asks, "Who makes color affordable with prints for just pennies a page? You know who." According to Michael C. Mac Donald, Xerox's chief marketing officer, the ads are part of a broader push to build the value of the Xerox brand and better serve customers. "When it comes to the customer experience, we need to think big and small. That means paying equal attention to 'big brand' efforts like advertising and 'little brand' experiences that define the way customers interact with us everyday," Mac Donald said in remarks prepared for a keynote presentation today at THE Conference on Marketing in Las Vegas. In addition to new ad campaigns, Xerox is moving more of its marketing online. The company recently revamped its home page at http://www.xerox.com/to reduce clutter and make it easier to navigate. Xerox also has launched industry blogs, viral marketing efforts and is expanding its presence in the online virtual world of Second Life. In parallel with these efforts, Xerox is leveraging a proprietary software tool called Sentinel to monitor and boost customer satisfaction. The tool automatically contacts customers and offers an easy way to provide immediate feedback and solve problems in real time. Use of Sentinel has nearly doubled over the past two years, expanding to 14 countries worldwide and 124 major accounts. At the same time, Xerox is revamping traditional measures of customer satisfaction, placing more emphasis on customer likelihood to recommend Xerox. "We've found that customers who say they are likely to recommend us are 2.5 times more likely to re-purchase," Mac Donald said. He urged marketers to better engineer all kinds of customer communications, from direct mail pieces to forms, statements, manuals, applications and welcome kits. "The more personal your relationship is with your customers, the more likely they will be to recommend you," he said. "The way we handle these touch points can reduce service calls, boost customer retention and enhance the brand experience." Headquartered in Stamford, Connecticut, Xerox Corp. -- http://www.xerox.com/-- develops, manufactures, markets, services and finances a range of document equipment, software, solutions and services. Xerox operates in over 160 countries worldwide and distributes products in the Western Hemisphere through divisions, wholly owned subsidiaries and third-party distributors. The company has operations in Japan, Italy and Nicaragua. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 1, 2007, Standard & Poor's Ratings Services revised its rating outlook on Stamford, Conn.-based Xerox Corp. to positive from stable. Ratings on the company, including the 'BB+' long- term and 'B-1' short-term corporate credit ratings, were affirmed. =========== P A N A M A =========== CABLE & WIRELESS: Inks MOU with CCT Global ------------------------------------------ Cable & Wireless PLC has signed an Interconnection Agreement Memorandum of Understanding with CCT Global Communications, a sole British Virgin Islands-based mobile provider, Caribbean Net News reports. Vance Lewis, Chief Executive of Cable & Wireless, told press that the MOU provide access to an open and level playing field in the BVI. "The remaining obstacle is the issuance of unitary licenses for those operators who will be allowed to provide telecommunications services," Mr. Lewis added. The only thing to accomplish, Mr. Lewis asserted, once all unitary licenses have been issued, is introducing bmobile, the most recognized mobile service in the Caribbean. Carribbean Net discloses that Cable & Wireless would likely receive its unitary licence after the March 31st deadline given by government. In addition Mr. Lewis believed that bMobile would provide the best value for money with unrivalled island-wide coverage and reliability as BVI enters a dynamic telecoms market. Headquartered in London, Cable & Wireless PLC -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. Its principal operations are in the United Kingdom, continental Europe, Asia, the Caribbean, Panama and the Middle East. * * * Cable & Wireless Plc carries these ratings: * Moody's Investors Service -- Long-Term Corporate Family Rating: Ba3 -- Senior Unsecured Debt: B1 -- Short-Term: NP -- Outlook: Negative * Standard & Poor's -- Long-Term Foreign Issuer Credit Rating: BB- -- Long-Term Local Issuer Credit Rating: BB- -- Short-Term Foreign Issuer Credit Rating: B -- Short-Term Local Issuer Credit Rating: B -- Outlook: Negative CHIQUITA: Moody's Says Plea Agreement Won't Affect Ratings Yet -------------------------------------------------------------- Moody's Investors Service related that the March 19, 2007, approval and acceptance by the U.S. District Court for the District of Columbia of the March 14 plea agreement entered by Chiquita Brands International, Inc. has not at this point had any impact on the company's ratings. The rating outlook remains stable. As previously disclosed, in April 2003 Chiquita 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 right- and left-wing paramilitary groups to protect the lives of its employees. The company's disclosure was made shortly after its senior management became aware that the paramilitary group had been designated as foreign terrorist organizations under a U.S. stature that forbids payments to such organizations. In the fourth quarter of 2006, Chiquita recorded a charge of US$25 million to reflect liability for payment of a proposed financial sanction contained in the company's offer of settlement to the Justice Department. Court approval for the plea agreement and the payment of the US$25 million in five annual installments with interest was received on March 19. The first US$5 million principal will be paid upon formal sentencing, currently scheduled for June 1, 2007. As part of its ongoing monitoring of Chiquita, Moody's will remain close to the situation, especially in regards to the company's ability to fund its annual payments. Should there be negative repercussions to the business of Chiquita or its ability to operate in any markets as a consequence of its plea, Moody's would consider negative rating action. Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 70 countries including Panama, Philippines, Australia, Belgium, Germany, among others. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. * * * Moody's Investors Service downgraded the ratings for Chiquita Brands L.L.C., as well as for its parent Chiquita Brands International, Inc. Moody's said the outlook on all ratings is stable. Standard & Poor's Ratings Services also lowered its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. * PANAMA: Fitch Says Weak Regulations Hamper Region's Growth ------------------------------------------------------------ The financial crisis that had hit Central America for the past few years has prompted Fitch Ratings to look into the regulatory and supervisory activities of the region. In a Special Report, "Prudential Regulations in Central America and Panama," Fitch enumerates the weaknesses of these regulatory and supervisory activities, and the deficiencies of the legal framework for the financial system. The report relates that the pace of improvements in the financial systems' regulatory and supervisory activities is still a primary concern for the region, as industry norms continue to lag behind international standards and deficiencies in the legal framework hamper regulators' abilities to make adequate decisions in a timely manner. These deficiencies lead institutions and customers alike to assume unnecessary high-risk levels, triggering several financial crises across the region, some of which have been quite severe over the past few years. Finally, the tendency of authorities to be reactive rather than proactive has led their operative structure to be more focused on problem solving rather than the prevention of future crises, a weakness that should be addressed when upgrading regulations and resources available to authorities in the region. After reviewing the various legal frameworks and regulatory activities, this report focuses on Fitch's two primary concerns, the lack of homogeneity in regulations across the region, and the lack of supervision for financial groups on a consolidated level, particularly in those countries exhibiting significant offshore activity. The relatively small size of each individual system has hampered its development in the past, leading financial institutions to favor large economic groups and related parties when extending loans. In addition, the region's financial system has experienced a high concentration in government securities as well as a significant increase in unregulated offshore banking activity. Also considered a major concern is the banks' failure to adjust their capitalization and reserve levels using expected loan loss models. Finally, an important issue considered in this report is the large degree of dollarization of banks' balance sheets in countries that have not adopted the US Dollar as their legal tender. The dollarization of balance sheets represents a significant risk to regional banks, as the payment capacity for borrowers who do not generate income in foreign currency may deteriorate in a scenario of high foreign-exchange volatility. In Fitch's view, a proper regulatory framework is as vital as the quality and thoroughness of supervisory activity in the achievement of a stronger and healthier financial system. =============== P A R A G U A Y =============== * PARAGUAY: Pres. Says Part of Reserves to Go to South Bank ----------------------------------------------------------- Paraguayan President Nicanor Duarte said he's willing to set aside part of the country's international reserves to the so- called Bank of the South, a project initiated by Venezuelan President Hugo Chavez to ease out the International Monetary Fund in the region, El Universal reports. The Bank of the South was launched in Nov. 25, 2006, by the Venezuelan leader, and was recently joined by Argentina, Efe news agency reported. According to the Paraguayan leader, the country has about US$1.6 billion in international reserves, which could be deposited in the Bank of the South rather than in U.S. banks, El Universal says. Cesar Barreto, head of Paraguay's Financial Agency for Development, will be meeting with Argentine experts next week to conduct feasibility surveys on the projected bank, El Universal says, citing Pres. Duarte. Venezuela is investing US$600 million for the Bank of the South's initial capital, while Argentina will disburse US$400 million, El Universal says. * * * Moody's assigned these ratings on Paraguay: -- CC LT Foreign Bank Deposit, Caa2 -- CC LT Foreign Currency Debt, Caa1 -- CC ST Foreign Bank Deposit, NP -- CC ST Foreign Currency Debt, NP -- LC Currency Issuer Rating, Caa1 -- FC Currency Issuer Rating, Caa1 -- Local Currency LT Debt, WR * * * Standard & Poor's assigned these ratings on Paraguay: -- Foreign Currency LT Debt B- -- Local Currency LT Debt B- -- Foreign Currency ST Debt C -- Local Currency ST Debt C ======= P E R U ======= NUTRO PRODUCTS: S&P Says Product Recall Won't Affect B- Rating -------------------------------------------------------------- Standard & Poor's Ratings Services said that there would be no immediate effect on its credit ratings or outlook on Nutro Products Inc. (B-/Stable/--) following the company's voluntary participation in the Menu Foods recall of its 'cuts and gravy' style dog and cat food packaged in cans and pouches and manufactured in its Kansas and New Jersey facilities between Dec. 3, 2006, and Mar. 6, 2007. Menu Foods manufactures 'wet' food products for several other dog and cat food brands in addition to Nutro Products, including Purina, Eukanuba, Iams and Science Diet who also voluntarily recalled their products. The recall occurred after Menu Foods received complaints about pet illness or death from customers in the US. At this time, Standard & Poor's does not expect this recall to have any material financial effect on Nutro Products as the recalled product sales represents a very small percentage of the overall company sales; however, Standard & Poor's will monitor the situation for further developments and any impact on future product sales or damage to the Nutro Products brand image as well as the potential for litigation. Based in City of Industry, California, Nutro Products, Inc. -- http://www.nutroproducts.com/-- formulates and manufactures dry and canned food, biscuits, and treats for dogs and cats. The company's brand names include Natural Choice, MAX, and Gourmet Classics. Its products are available in feed stores and pet supply shops, such as Petco and PetSmart, across the US and Canada. Nutro Products's products are also distributed worldwide, including Indonesia, Peru and Austria, among others. ===================== P U E R T O R I C O ===================== ALLIED WASTE: S&P Puts BB Rating on US$3.17B Sr. Sec. Bank Debt --------------------------------------------------------------- Standard & Poor's Ratings Services assigned bank loan and recovery ratings to Allied Waste North America Inc.'s US$3.17 billion senior secured bank credit facilities, based on preliminary terms and conditions. The amended credit facilities are rated 'BB' with recovery ratings of '2', indicating the expectation of substantial (80%-100%) recovery of principal in the event of a payment default. In addition, Standard & Poor's raised the ratings on the existing US$4.6 billion of outstanding senior secured notes to 'BB' from 'BB-' and revised the recovery rating to '2' from '4', indicating the expectation of substantial (80%-100%) recovery of principal in the event of a payment default. Standard & Poor's affirmed the 'BB' corporate credit rating on Allied Waste Industries. The outlook is stable. Under the proposed amendment, the final maturity under the revolving credit facility will be extended to 2012 from 2010. The final maturities under the term loan and letter of credit facility will be extended to 2014 from 2012. "The ratings on Allied Waste-NA reflect a highly leveraged financial profile, which outweighs the company's fairly strong competitive business position," said Standard & Poor's credit analyst Robyn Shapiro. Allied Waste-NA is the second-largest solid waste management participant in the US, with 2007 revenues and EBITDA estimated at about US$6.2 billion and US$1.65 billion, respectively. The company provides collection, transfer, disposal, and recycling services to about 10 million residential, commercial, and industrial customers in 37 states and Puerto Rico. Leading shares in most local markets, good collection-route density, and a high rate of waste internalization enhance operations. Allied Waste-NA's highly leveraged financial profile stems mainly from debt incurred in the 1999 acquisition of Browning- Ferris Industries Inc. Since that time, the firm's key focus has been on debt reduction from free cash flow, the issuance of equity, and the proceeds from divestitures. Operating margins stabilized at around 26% in 2006, supported by price increases, modest volume gains, and benefits of ongoing cost reduction programs. Allied Waste North America, Inc., a wholly owned operating subsidiary of Allied Waste Industries, Inc., is based in Phoenix, Arizona. Allied Waste is a vertically integrated, non- hazardous solid waste management company providing collection, transfer, and recycling and disposal services for residential, commercial and industrial customers. As of Dec. 31, 2006, the company operated a network of 304 collection companies, 161 transfer stations, 168 active landfills and 57 recycling facilities in 37 states and Puerto Rico. The company had revenues of approximately US$6.0 billion in fiscal 2006. FRANCISCO MENDOZA: Case Summary & 40 Largest Unsecured Creditors ---------------------------------------------------------------- Lead Debtor: Francisco Mendoza, Inc. dba JJ Alvarez dba Empresas Mendoza dba YPSO dba Mueblerias Mendoza P.O. Box 1277 Cayey, Puerto Rico 00737 Bankruptcy Case No.: 07-01474 Debtor-affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Comercial Mendoza, Inc. 07-01476 Inversiones Mendoza, Inc. 07-01477 Inmobiliaria Mendoza Del Norte, Inc. 07-01478 Chapter 11 Petition Date: March 21, 2007 Court: District of Puerto Rico (Old San Juan) Debtors' Counsel: Carmen D. Conde Torres, Esq. C. Conde & Associates 254 San Jose Street, 5th Floor San Juan, PR 00901-1523 Tel: (787) 729-2900 Fax: (787) 729-2203 Estimated Assets Estimated Debts ---------------- --------------- Francisco Mendoza, Inc. US$1 Million to Unknown US$100 Million Comercial Mendoza, Inc. US$50,000 to US$100,000 to US$100,000 US$500,000 Inversiones US$10 Million to Less than Mendoza, Inc. US$50 Million US$50,000 Inmobiliaria Mendoza Less than Less than Del Norte, Inc. US$50,000 US$50,000 A. Francisco Mendoza, Inc.'s 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Leo Burnett US$2,033,483 268 Mu�oz Rivera Avenue San Juan, PR 00918 IBM Corp. US$816,765 P.O. Box 7247-0298 Philadelphia, PA 19170 Capri S.E. - Los Colobos US$339,678 P.O. Box 363148 San Juan, PR 00936-4668 JJ Alvarez US$298,163 129 Calle Balboa Mayaguez, PR 00681 Mente Creativa US$239,945 P.O. Box 7891 Guaynabo, PR 00970-7891 Capri, S.E. - Humacao US$238,671 Secretario De Hacienda US$209,516 G.E. Appliances Caribbean US$199,895 New Port Investments US$197,949 AEE US$145,405 Whirlpool Corp. US$144,874 Jose J. Alvarez US$128,772 Roberto Ledesma Ins. US$109,100 Inversiones Rafael A. Soto, Inc. US$83,277 Ramallo Bros. Printing Inc. US$80,406 A.I. Credit Corp. US$67,003 Ryder Puerto Rico US$59,198 Trailer Bridge Inc. US$57,439 Rotta Moveis US$56,042 Sony De Puerto Rico US$53,453 B. Comercial Mendoza, Inc.'s 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ J. Cobo & Associates, Inc. US$44,013 15712 Southwest 41 Street, Suite 800 Fort Lauderdale, FL 33331 Fogel Caribbean Corp. US$43,639 170 Pedro Albizu Campos Aguadilla, PR 0603 Refricentro, Inc. US$17,586 H-15 Calle Amapola Condado Viejo Caguas, PR 00726 Carrier PR, Inc. US$14,959 P.O. Box 71519 San Juan, PR 00936 Follet Corporation US$11,806 P.O. Box D 801 Church Lane Easton, PA 18044 Collazo Electric US$8,000 Cumba Refrigeration US$7,472 York International US$7,150 Asoc. Industrials Del Pan Coliseo US$5,980 Wilberto Rivera Feliciano US$2,352 Mitel Distributing Inc. US$1,887 Padilla Refrigeration US$1,876 Vanya Air US$1,406 Simcox Refrigeration Suppliers US$1,143 Tourism Events Unlimited US$975 Thunderbird Food Machine, Inc. US$955 Trane De PR, Inc. US$939 Joe Caceres US$700 Brothers Bakery Machinery US$557 IMI Cornelius, Inc. US$548 C. Inversiones Mendoza, Inc., and Inmobiliaria Mendoza Del Norte, Inc., do not have any creditors who are not insiders. GLOBAL HOME: Hires Johnson Associates as Compensation Advisor ------------------------------------------------------------- Global Home Products LLC and its debtor-affiliates obtained permission from the U.S. Bankruptcy Court for the District of Delaware to employ Johnson Associates Inc. as their compensation advisor nunc pro tunc Jan. 9, 2007. Johnson Associates is expected to: a) perform an analysis of the Debtors' proposed management incentive plan and sales bonus plan; b) provide expert testimony, at one or more depositions or hearings related to their chapter 11 cases, regarding their proposed plans, or any modifications to that plans; and c) provide other advisory services as necessary by the Debtors. Jeff Visithpanich, Esq., at Johnson Associates, will bill the Debtors US$300 per hour for his work. Mr. Visithpanich discloses that the firm's other professionals bill: Professional Hourly Rate ------------ ----------- Alan Johnson US$575 Staff and Associates US$155 - US$300 Mr. Visithpanich assured the Court that Johnson Associates is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Westerville, Ohio, Global Home Products, LLC -- http://www.anchorhocking.com/and http://www.burnesgroup.com/ -- sells houseware and home products and manufactures high quality glass products for consumers and the food services industry. The company also designs and markets photo frames, photo albums and related home decor products. The company and 16 of its affiliates, including Burnes Puerto Rico, Inc., and Mirro Puerto Rico, Inc., filed for Chapter 11 protection on April 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP, represent the Debtors. Bruce Buechler, Esq., at Lowenstein Sandler, P.C., and David M. Fournier, Esq., at Pepper Hamilton LLP represent the Official Committee of Unsecured Creditors. Huron Consulting Group LLC gives financial advice to the Committee. When the company filed for protection from their creditors, they estimated assets between US$50 million and US$100 million and estimated debts of more than US$100 million. GLOBAL HOME: Court Extends Removal Period Deadline to July 15 ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware further extended until July 15, 2007, the period within which Global Home Products LLC and its debtor-affiliates can remove state court civil actions. As reported in the Troubled Company Reporter on Jan. 29, 2007, since filing for bankruptcy, Debtors' efforts were directed to: a) obtain Court approval for the sale of the Burnes Group assets and WearEver assets; b) address issues attendant to that sales; c) consider going forward alternatives for the Anchor Hocking business; d) extend and modify their dip financing; and e) work with key constituencies on issues relating to their cases. Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP, told the Court that the Debtors did not have the opportunity to thoroughly review actions that may be need to be removed from other jurisdictions. The extension, Ms. Laura said, will allow the Debtors to make fully informed decisions in removing each action and will assure that the Debtors won't forfeit valuable rights under Section 1452 of the Bankruptcy Code. Headquartered in Westerville, Ohio, Global Home Products, LLC -- http://www.anchorhocking.com/and http://www.burnesgroup.com/ -- sells houseware and home products and manufactures high quality glass products for consumers and the food services industry. The company also designs and markets photo frames, photo albums and related home decor products. The company and 16 of its affiliates, including Burnes Puerto Rico, Inc., and Mirro Puerto Rico, Inc., filed for Chapter 11 protection on April 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP, represent the Debtors. Bruce Buechler, Esq., at Lowenstein Sandler, P.C., and David M. Fournier, Esq., at Pepper Hamilton LLP represent the Official Committee of Unsecured Creditors. Huron Consulting Group LLC gives financial advice to the Committee. When the company filed for protection from their creditors, they estimated assets between US$50 million and US$100 million and estimated debts of more than US$100 million. STANDARD MOTOR: Secures New Revolving Credit Facility ----------------------------------------------------- Standard Motor Products Inc. has entered into a new revolving credit facility, replacing its existing credit facility, with GE Capital Markets acting as Agent for a syndicate of lenders. The new credit facility provides for a line of credit up to US$275 million, with an additional US$50 million accordion feature, and has a term of five years. The US$275 million revolving credit facility will continue to be secured primarily with the Company's accounts receivable, inventory and fixed assets similar to the existing advance rate formulas. Mr. James J. Burke, Standard Motor Products' Chief Financial Officer, stated, "We are very pleased to secure this new financing arrangement which capitalizes on current favorable market conditions. This facility will offer immediate benefits and secure an integral component of our capital structure for the next five years. In addition, the US$50 million accordion feature allows for future expansion needs." Headquartered in Long Island City, New York, Standard Motor Products Inc. (NYSE: SMP) -- http://smpcorp.com/-- manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. The company supplies Engine Management and Temperature Control parts for motor vehicles - domestic and imported, new as well as older vehicles. Parts are sold throughout the U.S., Canada, Central and South America, Europe and Asia, by traditional warehouse distributors and auto parts stores, as well as major retail stores. Standard Motor Products Inc has more than 20 factories and distribution centers throughout the U.S., Puerto Rico, Canada, Europe and the Far East. Lawrence I. Sills, grandson of the company's founder, is the current Chairman of the Board and Chief Executive Officer, and John Gethin is President and Chief Operating Officer. * * * As reported in the Troubled Company Reporter on Feb. 9, 2006, Moody's Investors Service lowered the ratings for Standard Motor Products Inc. Corporate Family Rating to B3 from B1. ================= V E N E Z U E L A ================= PEABODY ENERGY: Creates New Positions in China Office ----------------------------------------------------- Peabody Energy disclosed new positions for its office in Beijing. Russell Phillips has been named Vice President of Engineering for Peabody China, and Pan Wanze has joined Peabody's international sales and trading subsidiary, COALTRADE International, as Commercial Operations Manager for China. Mr. Phillips will report to President of Peabody China Mark N. Schroeder. He will be responsible for engineering-related services and will assist in evaluating commercial opportunities. He will be based in Peabody's Beijing office. Mr. Phillips brings nearly 35 years of experience in managing coal mining operations, most recently serving as Chief Representative for Anglo American's Anglo Coal operations in Beijing, China. He also served as General Manager of Anglo Coal's Xiwan Coal project in the Shaanxi Province. Mr. Phillips holds a Graduate Diploma of Applied Finance and Investment from the Securities Institute of Australia and a Diploma of Applied Geology from the Royal Melbourne Institute of Technology. Pan will report to COALTRADE International Director of Trading for China Phil Smith. Pan will be responsible for coordinating commercial contacts for all marketing, sales and trading opportunities for import and export coal in China. He will also be based in Peabody's Beijing office. Pan brings 25 years of experience in foreign trade in the coal industry. He began his career with China National Coal Import and Export Corporation -- CNCIEC -- as a Sales Coordinator importing coal mining machines and equipment for use in the Chinese coal industry. In 1995, he was appointed Chief Representative of CNCIEC's Europe office and President of Sineuro S.A. in Belgium, selling Chinese coal to European customers. Since 2000, he has held various positions with China Coal Group, most recently as General Manager of the International Cooperation Department. Pan holds a Bachelor of Arts degree from Peking University. China is the world's fastest-growing major economy, representing half the world's growth in raw materials and more than one-third of global coal demand. Peabody opened its Beijing office in the fall of 2005 and began its trading activities in China earlier this year. Headquartered in St. Louis, Missouri, Peabody Energy Corporation (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Venezuela. * * * As reported in the Troubled Company Reporter on Dec. 21, 2006, Moody's Investors Service assigned Peabody Energy Corporation's proposed US$500 million convertible junior subordinated debentures a rating of Ba2. Moody's also revised Peabody's outlook to stable from negative. At the same time, Moody's affirmed Peabody's Ba1 corporate family rating and the Ba1 senior unsecured rating on its existing revolver, term loan and notes. PETROLEOS DE VENEZUELA: JV with Petrobras to Operate by 2011 ------------------------------------------------------------ The joint refinery of Venezuelan state-owned oil firm Petroleos de Venezuela SA aka PDVSA and Brazilian counterpart Petroleo Brasileiro SA aka Petrobras will start operations by 2011, radio network CBN reports, citing the latter's Chief Executive Officer Sergio Gabrielli. Works on the plant are within the schedule, CBN notes, citing Mr. Gabrielli. He said that the Petroleo Brasileiro and PDVSA are considering the possibility of advancing the commissioning a little bit. The facilities, which are in Northeast Brazil, could then begin operations well in advance, Business News Americas relates. However, Mr. Gabrielli told the Associated Press that no final decision has been made yet. The plant will process 200,000 barrels per day, with 100,000 from each country, BNamericas states, citing Petroleo Brasileiro Provision and Refining head Paulo Roberto Costa. 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. 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. 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. PETROLEOS DE VENEZUELA: Plant to Undergo Engineering Work --------------------------------------------------------- Japan Gasoline and Inelectra will conduct extended basic engineering work at state-owned oil firm Petroleos de Venezuela SA's Puerto La Cruz plant, local daily El Universal reports. Japan Gasoline designs refineries and similar plants, while Inelectra is a group of engineering, construction, telecommunication and computer services firms. Fernando Padron, Petroleos de Venezuela's eastern division refining manager, told El Universal that the plant will be retooled to use the HDH Plus refining technology. Business News Americas relates that Intevep, Petroleos de Venezuela's research and development unit, developed HDH Plus as a specialty refining method for Venezuela's trademark heavy and extra-heavy sour crude oils. Puerto La Cruz will be the first major plant to use HDH Plus to upgrade crude from API grade 8 to 35 once the work is completed, BNamericas states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * As reported on Nov. 22, 2006, Fitch affirmed the local and foreign currency Issuer Default Ratings of Petroleos de Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)' national scale rating of the company. Fitch said the rating outlook is stable. * VENEZUELA: Dominica May Reject Nation's Plant Project Offer ------------------------------------------------------------- United Workers Party, the main opposition party in Dominica, has asked the government to reject Venezuela's offer to construct an oil refinery, The Associated Press reports. The opposition told AP that the Venezuelan project would damage Dominica's image as a nature island. The Dominican government should instead seek to take control from Venezuela over Isla de Aves, or Bird Island, to help attract ecotourists, AP notes, citing the United Workers head Edison James. He said that Bird Island would bring greater economic benefit to Dominica, instead of an oil refinery. It would boost Dominica's nature tourism image through scuba diving and whale-watching activities. According AP, Venezuela has kept its ownership of Isla de Aves - - an uninhabited, treeless island about 350 miles north of Venezuela but closer to Dominica -- since 1865. The Venezuelan government has a small outpost on it shared by naval troops and scientists. The Caribbean Conservation Association in Barbados also urged Dominica to reject Venezuela's proposed refinery, which is part of the Petrocaribe deal, AP states. * * * 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. * VENEZUELA: Monagas Sues Foreign Firms for Tax Payment Default --------------------------------------------------------------- News daily El Universal reports that the municipality of Monagas, Anzoategui, Venezuela, has filed a lawsuit international oil firms and joint ventures for nonpayment of municipal taxes. According to El Universal, Monagas Mayor Rafael Puerta went before a tax court in Anzoategui capital Barcelona to launch legal action that requires the firms to pay VEB376 billion in taxes plus accrued interests. El Universal underscores that Monagas sued: -- US oil company ConocoPhillips, -- Norway's state oil firm Statoil, -- France's Total, -- Orinoco joint venture Sincor, and -- Orinoco joint venture Petrozuata. Mayor Puerta told El Universal that he notified the firms of his intentions to collect taxes in 2006 to no avail. * * * 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. * VENEZUELA: Rejects IADB's Mass Biofuel Production Proposal ------------------------------------------------------------ Venezuela has rejected the Inter-American Development Bank's proposal for a US$200 billion investment for mass production of biofuels in the region, El Universal reports, citing Finance Minister Rodrigo Cabeza. "Suggesting an investment of USD 200 billion is incredible when, even at this moment, two out of five Latin Americans do not have access to power supply," the finance minister told AFP news agency. According to El Universal, IADB President Luis Alberto Moreno suggested Monday the mass production of biofuels in Latin America to create more jobs for rural sectors. * * * 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. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Country Club at District of Columbia Ranch, Scottsdale, Arizona Contact: http://www.turnaround.org/ March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia Launch Melbourne Hotel, Perth, Washington, Australia Contact: http://www.turnaround.org/ March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Fundamentals of Turnaround Management Sydney, Australia Contact: http://www.turnaround.org/ March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Toot Your Own Horn - This event is for members only. Pronto Cena, Newark, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Reception Co-Sponsored with IWIRC Hartford Club, Hartford, Connecticut Contact: 203-265-2048 or http://www.turnaround.org/ March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting TBA Contact: http://www.turnaround.org/ March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia Launch Melbourne Hotel, Perth, Washington, Australia Contact: http://www.turnaround.org/ March 23, 2007 TURNAROUND MANAGEMENT ASSOCIATION Completing the Turnaround Sydney, Australia Contact: http://www.turnaround.org/ March 23, 2007 TURNAROUND MANAGEMENT ASSOCIATION Evolving Role of the Turnaround Professional Kimmel Center, Philadelphia, Pennsylvania Contact: http://www.turnaround.org/ March 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lunch Seminar Kansas City, Missouri Contact: http://www.turnaround.org/ March 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lunch Seminar Kansas City, Missouri Contact: http://www.turnaround.org/ March 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION "The Six Keys of Sustained Profitable Growth" Rodney Page, Senior Partner of Blue Springs Partners Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ March 27-31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spring Conference Four Seasons Las Colinas, Dallas, Texas Contact: http://www.turnaround.org/ March 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION "Position" in the Strategic Marketing Context Norton White, Sydney, Australia Contact: http://www.turnaround.org/ March 28-31, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Four Seasons Las Colinas, Dallas, Texas Contact: http://www.turnaround.org/ March 29-31, 2007 AMERICAN LAW INSTITUTE - AMERICAN BAR ASSOCIATION Chapter 11 Business Reorganizations Scottsdale, Arizona Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/ March 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Rising to the (Counter) Top of the Market Solera, Minneapolis Contact: http://www.turnaround.org/ March 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION 10th Annual April Fools' Networking Cocktail Reception University Club, New York, New York Contact: 646-932-5532 or http://www.turnaround.org/ March 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Zinifex/Pasminco - What a ride? Ferriers, Melbourne, Australia Contact: http://www.turnaround.org/ April 5, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Case Study "When Everything Goes Wrong" University of Florida, Gainesville, Florida Contact: http://www.turnaround.org/ April 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Pal's Cabin, West Orange, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ April 11-15, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Annual Spring Meeting J.W. Marriott, Washington, District of Columbia Contact: 1-703-739-0800; http://www.abiworld.org/ April 12, 2007 BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Contact: 240-629-3300; http://www.beardaudioconferences.com/ April 12, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC 4th Spring Luncheon and Founders Awards Washington, District of Columbia Contact: http://www.iwirc.org/ April 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ April 12, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - East JW Marriott, Washington, District of Columbia Contact: http://www.abiworld.org/ April 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Fundamentals of Turnaround Management Melbourne, Australia Contact: http://www.turnaround.org/ April 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Completing the Turnaround Melbourne, Australia Contact: http://www.turnaround.org/ April 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth Arizona Chapter Meeting Biltmore Hotel, Phoenix, Arizona Contact: http://www.turnaround.org/ April 17, 2007 BEARD AUDIO CONFERENCES Real Estate Bankruptcy Contact: 240-629-3300; http://www.beardaudioconferences.com/ April 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth Arizona Chapter Meeting Biltmore Hotel, Phoenix, Arizona Contact: http://www.turnaround.org/ April 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Breakfast with Association for Corporate Growth Woodbridge Hilton, Iselin, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Personnel Issues in Bankruptcy University Club, Portland, Oregon Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Program on Fraud and Forensic Investigations Athletic Club, Denver, Colorado Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Fundamentals of Turnaround Management Brisbane, Australia Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Personnel Issues in Bankruptcy University Club, Portland, Oregon Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast: Program on Fraud and Forensic Investigations Athletic Club, Denver, Colorado Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Tyson's Corner Marriott, Vienna, Virginia Contact: 215-657-5551 or http://www.turnaround.org/ April 19-20, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Eighth Annual Conference on Healthcare Transactions Successful Strategies for Mergers, Acquisitions, Divestitures, and Restructurings The Millennium Knickerbocker Hotel - Chicago Contact: 800-726-2524; http://renaissanceamerican.com/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting Social TBA, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Operational Turnaround Management Renaissance Hotel, Syracuse, New York Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Fraud and Forensic Investigation Athletic Club, Denver, Colorado Contact: http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Completing the Turnaround Brisbane, Australia Contact: http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION The Nuts & Bolts of Buying and Selling Distressed Companies University Club, Chicago, Illinois Contact: http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ April 24, 2007 BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Contact: 240-629-3300; http://www.beardaudioconferences.com/ April 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION "Why Prospects Become Clients" Mark Fitzgerald, President of Sales Training Institute Inc Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Jacksonville Zoo Turnaround University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual Credit & Bankruptcy Symposium Golf/Spa Outing Fox Hopyard Golf Club, East Haddam, Connecticut Contact: 203-265-2048 or http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spa Outing Mohegan Sun, Uncasville, Connecticut Contact: 203-265-2048 or http://www.turnaround.org/ April 26-27, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual Credit & Bankruptcy Symposium Mohegan Sun, Uncasville, Connecticut Contact: http://www.turnaround.org/ April 26-28, 2007 ALI-ABA Fundamentals of Bankruptcy Law Philadelphia, Pennsylvania Contact: http://www.ali-aba.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting - Working Effectively with the Media to Create Publicity for Your Business Contact: http://www.turnaround.org/ April 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION 13 Week CF Program Washington University, St. Louis, Missouri Contact: http://www.turnaround.org/ April 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Equity Sponsor Panel Breakfast Westin Buckhead, Atlanta, Georgia Contact: http://www.turnaround.org/ April 29 - May 1, 2007 INTERNATIONAL BAR ASSOCIATION International Insolvency Conference Zurich, Switzerland Contact: http://www.ibanet.org/ May 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Organization of Women Visit King Tut Exhibit Franklin Institute, Philadelphia, Pennsylvania Contact: 215-657-5551 or www.turnaround.org/ May 2-4, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth Arizona Chapter Meeting Washington University, Arizona Contact: http://www.turnaround.org/ May 4, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - NYC Alexander Hamilton US Custom House, SDNY New York, New York Contact: http://www.abiworld.org/ May 7, 2007 AMERICAN BANKRUPTCY INSTITUTE 9th Annual New York City Bankruptcy Conference Millennium Broadway Hotel & Conference Center New York, New York Contact: http://www.abiworld.org/ May 14-16, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual TMA Regional Conference - Texas Hyatt Regency Resort & Spa Lost Pines, Texas Contact: http://www.turnaround.org/ May 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Corporate Restructuring Workshop Cable Center, Denver, Colorado Contact: http://www.turnaround.org/ May 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Corporate Restructuring Workshop Cable Center, Denver, Colorado Contact: http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION Bankruptcy Judges Panel Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ May 17-18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 6th Annual Great Lakes Regional Conference Renaissance Quail Hollow Resort, Painesville, Ohio Contact: http://www.turnaround.org/ May 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Enterprise Valuation / Sale of the Distressed Business Athletic Club, Seattle, Washington Contact: http://www.turnaround.org/ May 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Women's Networking Lunch TBD, Arizona Contact: 623-581-3597 or http://www.turnaround.org/ May 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 13 Week CF Program Kansas City, Missouri Contact: http://www.turnaround.org/ May 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Annual Golf Outing TBD, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ May 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Hedge Funds Standard Club, Chicago, Illinois Contact: http://www.turnaround.org/ May 23, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Calaloo Cafe, Morristown, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ May 24-25, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Fourth Annual Conference on Distressed Investing Europe Maximizing Profits in the European Distressed Debt Market Le Meridien Piccadilly Hotel - London, UK Contact: 800-726-2524; http://renaissanceamerican.com/ May 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona and RMA Joint Meeting Hotel Valley Ho, Scottsdale, Arizona Contact: http://www.turnaround.org/ May 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ May 30-31, 2007 FINANCIAL RESEARCH ASSOCIATES Distressed Debt Harvard Club, New York, New York Contact: http://www.frallc.com/ May 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting and Casino Night Mayfair Farms, West Orange, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ May 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Speaker Series E&Y Tower, Calgary, Alberta Contact: http://www.turnaround.org/ May 31 - June 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION 2nd Annual TMA Southeast Regional Conference Marriott Resort at Grande Dunes Myrtle Beach, South Carolina Contact: http://www.turnaround.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference JW Marriott Spa and Resort, Las Vegas, Nevada Contact: http://http://www.airacira.org/ June 6-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION 5th Annual Mid-Atlantic Regional Symposium Borgata Hotel Casino & Spa Atlantic City, New Jersey Contact: http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, Illinois Contact: http://www.airacira.org/ June 7-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION Mealey's Asbestos Bankruptcy Conference Intercontinental Hotel, Chicago, Illinois Contact: http://www.turnaround.org/ June 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth Arizona Chapter Meeting Biltmore Hotel, Phoenix, Arizona Contact: http://www.turnaround.org/ June 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Economic Update at the 1/2 Year Mark University Club, Portland, Oregon Contact: http://www.turnaround.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ June 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Clarion Hotel, Princeton, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ June 21-22, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Tenth Annual Conference on Corporate Reorganizations Successful Strategies for Restructuring Troubled Companies The Millennium Knickerbocker Hotel - Chicago Contact: 800-726-2524; http://renaissanceamerican.com/ June 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact: http://www2.nortoninstitutes.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, Rhode Island Contact: 1-703-739-0800; http://www.abiworld.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Young Professionals Billiards Night TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ July 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ July 25-28, 2007 AMERICAN BANKRUPTCY INSTITUTE 12th Annual Southeast Bankruptcy Workshop The Sanctuary, Kiawah Island, South Carolina Contact: http://www.abiworld.org/ July 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ July 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Golf Outing Raritan Valley Country Club, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ July 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Enterprise Florida: Improving Florida's Business Climate and Helping Florida Companies Market Overseas Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Aug. 3, 2007 TURNAROUND MANAGEMENT ASSOCIATION Women's Spa Event Short Hills Hilton, Livingston, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 10, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Aug. 9-11, 2007 AMERICAN BANKRUPTCY INSTITUTE 3rd Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 23-26, 2007 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Drake Hotel, Chicago, Illinois Contact: http://www.nabt.com/ Aug. 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Fishing Trip Point Pleasant, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Healthcare Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Aug. 29-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 3rd Annual Northeast Regional Conference Gideon Putnam Resort and Spa, Saratoga Springs, New York Contact: http://www.turnaround.org/ Sept. 6-7, 2007 TURNAROUND MANAGEMENT ASSOCIATION Complex Financial Restructuring Program Four Seasons, Las Vegas, Nevada Contact: http://www.turnaround.org/ Sept. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Southwest Bankruptcy Conference Four Seasons Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Sept. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Buying and Selling Troubled Companies Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ Sept. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Sept. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Retail Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Sept. 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Educational & Networking Reception TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Sept. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Sept. 27-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 8th Annual Cross Border Business Restructuring & Turnaround Conference Contact: http://www.turnaround.org/ Oct. 2, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Oct. 9-10, 2007 IWIRC Orlando, Florida IWIRC Annual Fall Conference Contact: http://www.iwirc.org/ Oct. 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES 81st Annual National Conference of Bankruptcy Judges Contact: http://www.ncbj.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place Boston, Massachussets Contact: 312-578-6900; http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Capital Markets Case Study Contact: http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Crisis Communications With Employees,Vendors and Media Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Nov. 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Hackensack, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Dinner South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Nov. 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Portland Holiday Party University Club, Portland, Oregon Contact: 206-223-5495 or http://www.turnaround.org/ Nov. 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Mixer TBA, Vancouver Contact: 206-223-5495 or http://www.turnaround.org/ Nov. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Real Estate Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Nov. 29, 2007 TMA Arizona Chapter Meeting TURNAROUND MANAGEMENT ASSOCIATION Contact: http://www.turnaround.org/ Dec. 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Seattle Holiday Party Athletic Club, Seattle, Washington Contact: 206-223-5495 or http://www.turnaround.org/ Dec. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Jan. 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ April 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, District of Columbia Contact: http://www.abiworld.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: http://www.abiworld.org/ July 10-13, 2008 TURNAROUND MANAGEMENT ASSOCIATION 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, Massachussets Contact: http://www.turnaround.org/ July 31 - Aug. 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Contact: http://www.abiworld.org/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Dec. 4-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, Nevada Contact: http://www.ncbj.org/ June 21-24, 2009 INSOL 8th International World Congress TBA Contact: http://www.insol.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, Louisiana Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Handling Complex Chapter 11 Restructuring Issues Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; 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Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande de los Santos, Christian Toledo, and Junald Ango, Editors. Copyright 2076. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *