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 Monday, March 26, 2007, Vol. 8, Issue 60 Headlines A R G E N T I N A AGILENT TECHNOLOGIES: Accelerates US$2B Share Buyback Program AGILENT TECHNOLOGIES: Moody's Revises Outlook to Stable AGILENT TECHNOLOGIES: Patrick Byrne Resigns as Senior VP AGROPECUARIA SUDESTE: Claims Verification Is Until April 26 DISTRIBUIDORA ENERGY: Claims Verification Is Until June 5 EL PASO: Commences Consent Solicitation & Cash Tender Offer NORVAS SRL: Seeks Court Approval for Reorganization PETROLEO BRASILEIRO: Argentina May Evaluate Firm's Gas Contracts VALL ROS: Seeks Court Approval for Reorganization * ARGENTINA: May Look at Petroleo Brasileiro's Gas Contracts B A H A M A S ULTRAPETROL: Reports US$10.5 Mil. Net Income in Full Year 2006 B E L I Z E * BELIZE: Gets Additional European Union Sugar Quota B E R M U D A FOSTER WHEELER: Unit Wins City Utilities' Steam Generator Deal B O L I V I A * BOLIVIA: Striking Miners Demand Amayapampa Mine Reactivation B R A Z I L BANCO BRADESCO: Cancels Planned Serasa Initial Public Offering BANCO ITAU: Low-Income Credit Card Use to Reach BRL10.7B in 2007 BANCO NACIONAL: Will Sell Stake in Brasiliana BENQ CORP: Mobile Unit to Seek EUR500-Mln Claim Against Parent BRASKEM SA: Fitch Affirms BB+ Ratings on Ipiranga Acquisition COMPANHIA SIDERURGICA: May Build Two Steel Processing Plants GRAFTECH INTERNATIONAL: Earns US$91.3 Mil. in Year Ended Dec. 31 PETROLEO BRASILEIRO: Fitch Affirms BB+ Ratings on Ipiranga Buy PETROLEO BRASILEIRO: Landless Farmers Hold Strike Against Co. PETROLEO BRASILEIRO: Will Export Ethanol to U.S. in 2007 TECUMSEH PRODUCTS: Brazilian Unit Demands Judicial Restructuring TOWER AUTOMOTIVE: Wants Until July 31 to Decide on Leases TOWER AUTOMOTIVE: Hikes Due Diligence Amount to Over US$3.2 Mil. UNIAO DE BANCOS: Cancels Planned Serasa Initial Public Offering C A Y M A N I S L A N D S MAVERICK LONG: Will Hold Final Shareholders Meeting on May 31 MBF NO.1: To Hold Final Shareholders Meeting on May 31 PARMALAT SPA: Investors To Get US$50 Million Partial Settlement PRINCIPAL PROTECTED: Final Shareholders Meeting Is on May 31 REPACK HOLDINGS: Sets Last Shareholders Meeting for May 31 SANTA ROSA: Will Hold Final Shareholders Meeting on May 31 YRE ASSET: Final Shareholders Meeting Is on May 31 C H I L E SHAW GROUP: Will Add 5,000 Workers Due to Growing Market Demands C O L O M B I A ARMOR HOLDINGS: Obtains US$103-Million Armor Component Order TOWER RECORDS: Caiman Buys Trademark & Web Site for US$4.2-Mil. * COLOMBIA: Arthur D to Give Technical Assistance to Regulator C O S T A R I C A ALCATEL-LUCENT: Another Ex-Official Indicted in Firm's Case D O M I N I C A N R E P U B L I C AES CORP: Pays US$6 Million to Dominican Government BANCO INTERCONTINENTAL: Defendants May Face Stiffer Penalties E L S A L V A D O R * EL SALVADOR: State Power Firm to Complete Plant Revamp Program G U A T E M A L A AFFILIATED COMPUTER: Confirms Deason-Cerberus Purchase Proposal AFFILIATED COMPUTER: Shareholders File Suit to Prevent Buyout H O N D U R A S LEAR CORP: To Supply Seating Systems to Bombardier Recreational * HONDURAS: Congress Plans To Discuss Modified Telecoms Rules J A M A I C A CABLE & WIRELESS: Mobile Phone Sale in Jamaica Mobbed DYOLL GROUP: Jamaica Stock Exchange Suspends Share Trading DYOLL INSURANCE: Compensation Delay Upsets Coffee Farmers * JAMAICA: Tax Refunds to Pension Funds Deferred M E X I C O AMERICAN AIRLINES: S&P Assigns CCC+ Rating on US$357 Mil. Bonds FORD MOTOR: S&P Holds Negative Outlook on Liquidity Concern FORD MOTOR: S&P Comments on Asset Backed Securities' Protections GENERAL MOTORS: S&P Holds Negative Outlook on Liquidity Issues GENERAL MOTORS: S&P Comments on Asset Backed Securities HOME PRODUCTS: Completes Restructuring & Recapitalization MERIDIAN AUTOMOTIVE: Ct. Sets Beneficiary Record Date to Dec. 29 MERIDIAN AUTOMOTIVE: Wants Until June 30 to Remove Civil Actions NORTEL NETWORKS: Commences US$1-Bil. Senior Conv. Notes Offering PLASTICON INT: Shareholders Approve Election of Board Directors P A N A M A * PANAMA: Offers US$450 Million Reopened Global Bond Due in 2036 P U E R T O R I C O ALLIED WASTE: Fitch Puts BB/RR1 Rating on New Credit Facilities CLEAN HARBORS: Earns US$11.5 Million in Quarter Ended Dec. 31 LIN TELEVISION: Incurs US$234.5 Mil. Net Loss in Full Year 2006 MEDIRECT LATINO: Files Restated 2006 Annual Report SIMMONS CO: Posts US$2.8 Million Net Loss in Year Ended Dec. 30 U R U G U A Y GOL LINHAS: Gol Finance Closes US$225-Million Notes Offering V E N E Z U E L A PETROLEOS DE VENEZUELA: Shuts Down Cardon Plant Alkylation Unit PETROLEOS DE VENEZUELA: Issuing US$5B Bonds to Finance Expansion * VENEZUELA: State Telecom Firm to Deploy Fixed Wireless Service * VENEZUELA: To Purchase Remaining Cantv Shares This Week * BOOK REVIEW: American Express - - - - - ================= A R G E N T I N A ================= AGILENT TECHNOLOGIES: Accelerates US$2B Share Buyback Program ------------------------------------------------------------- Agilent Technologies Inc.'s Board of Directors has authorized the acceleration of its existing US$2 billion share-repurchase program. To date, the company has repurchased approximately US$500 million of the total US$2 billion and expects completion by the end of Agilent's fiscal year. At that time, Agilent will have cumulatively repurchased US$6.4 billion of the shares outstanding since the program's inception in 2005. "Today's decision by the Board reflects our confidence in Agilent's operating model," said Bill Sullivan, Agilent president and chief executive officer. "It also underscores our continuing commitment to return excess cash to the owners." Agilent anticipates the share-repurchase program will be implemented using a variety of methods, which may include open- market purchases, block trades, accelerated share-repurchase transactions or otherwise, or by any combination of such methods. The number of shares to be repurchased and the timing of any repurchases will depend on factors such as the stock price, economic and market conditions, and corporate and regulatory requirements. The stock-repurchase program may be suspended or discontinued at any time. Agilent Technologies, Inc. (NYSE:A) -- http://www.agilent.com/ -- is a measurement company providing core bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries. The company has operations in India, Argentina and Luxembourg. * * * As reported in the Troubled Company Reporter on Dec. 13, 2006, Moody's Investors Service upgraded both the corporate family rating and probability of default rating of Agilent Technologies Inc. to Ba1 from Ba2 and revised the outlook to positive. In addition, Moody's also affirmed the company's speculative grade liquidity rating at SGL-1. AGILENT TECHNOLOGIES: Moody's Revises Outlook to Stable ------------------------------------------------------- Moody's Investors Service changed the outlook of Agilent Technologies, Inc., to stable from positive following the company's announcement that its board has authorized an acceleration of the US$2 billion repurchase of the company's common stock. Agilent Technologies has roughly US$1.5 billion remaining under the stock repurchase program, which is expected to be completed by Oct. 31, 2007 (fiscal year end). Originally, the program was to be implemented over a two-year window and align closely with the timing of Agilent Technologies' generation of free cash flow. Now, the accelerated US$2 billion share purchase will significantly exceed the level of free cash flow that the company will generate in fiscal 2007, which Moody's currently expects to be roughly US$650 million (after acquisitions), compared to US$700 million previously, due to softness in the mobile handset tester market. The rating action is consistent with Moody's comments in its Dec. 14, 2006, Credit Opinion, which cautioned that share purchase activity that "significantly exceed amounts provided by the company's free cash flow" could result in downward revision in the outlook. The announcement will not affect Agilent Technologies' Ba1 corporate family rating given the company's strong liquidity (SGL-1) even after considering the planned accelerated share repurchase. However, the announcement indicates a return to a more aggressive use of Agilent's significant balance sheet liquidity (US$2.1 billion of unrestricted cash as of January 2007), thus reducing financial flexibility at a time when free cash flow generation could be delayed or be modestly weaker than expected. Moody's stated in its Dec. 14, 2006, Credit Opinion that compared to the US$4.5 billion stock repurchase in 2005, the US$2 billion repurchase program was "viewed as less aggressive since it is smaller in size and will be implemented gradually over a 24-month period." Hence, although the size and intent to repurchase stock has not been altered, the timing of the buyback differs from Moody's previous expectations. Given Agilent Technologies' more stable operating profile, refocused business strategy in less volatile business segments, diversification across its core test and measurement markets and propensity for predictable free cash flow compared to prior years, Moody's believes the company has a buildup of excess cash relative to its peers. Although designed to reduce this excess cash and return value to shareholders, Moody's views the accelerated share buyback as further evidence of financial policies that are more shareholder friendly, a factor that constrains Agilent Technologies' ratings. Following the accelerated share repurchase, Moody's expects Agilent Technologies will maintain unrestricted cash of US$500 million to a US$1 billion or more. Additional liquidity support is derived from Moody's expectation that free cash flow generation will remain fairly robust through cycles. Going forward, Moody's expects that the bulk of free cash flow is likely to be used for strategic investments and smaller share repurchases to offset the dilution of shares issued in connection with employee stock-based compensation plans, thereby limiting further cash buildup. Agilent Technologies, Inc. -- http://www.agilent.com/-- is a measurement company providing core bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries. The company has operations in India, Argentina and Luxembourg. AGILENT TECHNOLOGIES: Patrick Byrne Resigns as Senior VP -------------------------------------------------------- Agilent Technologies Inc. reported that Patrick M. Byrne has resigned as Agilent's senior vice president and president of the company's Electronic Measurements Group or EMG, effective immediately. Byrne is leaving the company for personal reasons. His position will not be replaced and the group will now report directly to Bill Sullivan, Agilent president and chief executive officer. EMG, whose markets include communications test and general purpose test, provides standard and customized electronic measurement instruments and systems, monitoring, management and optimization tools for communications networks and services, software design tools and related services that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment and communications networks and services. Agilent Technologies, Inc. (NYSE:A) -- http://www.agilent.com/ -- is a measurement company providing core bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries. The company has operations in India, Argentina and Luxembourg. * * * As reported in the Troubled Company Reporter on Dec. 13, 2006, Moody's Investors Service upgraded both the corporate family rating and probability of default rating of Agilent Technologies Inc. to Ba1 from Ba2 and revised the outlook to positive. In addition, Moody's also affirmed the company's speculative grade liquidity rating at SGL-1. 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. 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 DISTRIBUIDORA ENERGY: Claims Verification Is 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. The court 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 EL PASO: Commences Consent Solicitation & Cash Tender Offer ----------------------------------------------------------- El Paso Natural Gas Company, a subsidiary of El Paso Corporation, has commenced a cash tender offer to purchase any and all of its outstanding 7 5/8% notes due 2010 of which US$355 million in aggregate principal amount was outstanding as of March 22, 2007, and a solicitation of consents from the registered holders of the notes to certain proposed amendments to the indenture governing the notes. The tender offer and consent solicitation are described in detail in an Offer to Purchase and Consent Solicitation Statement dated March 22, 2007. The tender offer is scheduled to expire at 12:00 midnight, New York City time, on April 18, 2007, unless extended or earlier terminated. Holders of notes must tender and not withdraw their notes and deliver and not rescind their corresponding consents on or before the consent date, which is 5:00 p.m., New York City time, on April 4, 2007, unless extended or earlier terminated, to receive the total consideration, which includes a consent payment of US$10.00 per US$1,000 principal amount of notes. Holders of notes who tender their notes after the consent date and on or before the expiration date will receive the purchase price, which is the total consideration minus the consent payment. The total consideration for each US$1,000 principal amount of the notes tendered and accepted for payment will be determined in the manner described in the statement by reference to the fixed spread of 50 basis points over the yield based on the bid side price of the reference treasury security, 3.875% U.S. Treasury notes due July 31, 2007, as calculated by the lead dealer manager at 2:00 p.m., New York City time, on April 4, 2007. In addition to the total consideration or the purchase price, as applicable, holders of notes tendered and accepted for payment will receive accrued and unpaid interest on the notes from the last interest payment date for the notes to, but not including, the applicable settlement date. Except as set forth in the statement or as required by applicable law, notes tendered may be withdrawn and consents delivered may be revoked at any time on or prior to the withdrawal date, which is 5:00 p.m., New York City time, on April 4, 2007, by following the procedures described in the statement. Notes tendered on or prior to the withdrawal date that are not validly withdrawn on or prior to the withdrawal date may not be withdrawn thereafter. Tenders of notes after the withdrawal date may not be withdrawn. EPNG currently expects to have an initial settlement for notes tendered on or before the consent date promptly after the consent date and the satisfaction of the Financing Condition (expected to occur on April 5, 2007), followed by a final settlement promptly after the expiration of the tender offer for notes tendered after the consent date. EPNG reserves the right to extend or forego the initial settlement date, as a result of which the initial settlement date may occur as late as the final settlement date. The tender offer and consent solicitation are conditioned on the satisfaction of certain conditions, including but not limited to: (i) the tender on or prior to the consent date of notes representing a majority of the principal amount of the notes outstanding, (ii) the execution by the trustee of the supplemental indenture implementing the proposed amendments following receipt of the requisite consents, and (iii) the completion by EPNG of the sale of new notes pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended on terms satisfactory to EPNG. The securities to be sold in the New Offering will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release is not an offer to sell or a Solicitation of an offer to buy any securities. EPNG expects to fund the purchase of the notes with the net proceeds from the New Offering and cash on hand. If the Financing Condition or any other condition in the Statement is not satisfied, EPNG is not obligated to accept for purchase, or to pay for, Notes tendered (and corresponding Consents) and may delay the acceptance for payment of, any tendered Notes, in each event, subject to applicable laws, and may terminate, extend or amend the tender offer and may postpone the acceptance for purchase of, and payment for, notes so tendered. EPNG has retained Citigroup Corporate and Investment Banking to serve as lead dealer manager for the tender offer and lead solicitation agent for the consent solicitation and has retained Deutsche Bank Securities Inc. as co-dealer manager and co- solicitation agent for the consent solicitation. EPNG has retained Global Bondholder Services Corporation to serve as the depositary and information agent for the tender offer and consent solicitation. Requests for documents may be directed to: Global Bondholder Services Corporation 65 Broadway - Suite 723 New York, NY, 10006 Tel: (866) 952-2200 Fax: (212) 430-3774 Questions regarding the tender offer or consent solicitation may be directed to Citigroup Corporate and Investment Banking at (800) 558-3745 or (212) 723-6106. Headquartered in Houston, Texas, El Paso Corp. (NYSE:EP) -- http://www.elpaso.com/-- provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. The company has operations in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on March 21, 2007, Standard & Poor's Ratings Services raised its corporate credit ratings on El Paso Corp. and its subsidiaries to 'BB' from 'B+' and removed the ratings from CreditWatch with positive implications. S&P said the outlook is positive. NORVAS SRL: Seeks Court Approval for Reorganization --------------------------------------------------- Norvas SRL has filed a petition for reorganization before Buenos Aires' Court No. 14, after failing to pay its liabilities since March 15, 2007. The reorganization petition, once approved by the court, will allow Norvas to negotiate a settlement with its creditors in order to avoid a straight liquidation. Clerk No. 27 assists on this case. The debtor can be reached at: Norvas SRL Avenida de los Constituyentes 6005 Buenos Aires, Argentina PETROLEO BRASILEIRO: Argentina May Evaluate Firm's Gas Contracts ---------------------------------------------------------------- The Argentine government may evaluate Brazilian state-owned oil firm Petroleo Brasileiro SA's oil and natural gas concessions after the firm's Chief Executive Jose Sergio Gabrielli carped on the nation's policy of keeping prices low, Bloomberg reports. As reported in the Troubled Company Reporter-Latin America on March 23, 2007, Petroleo Brasileiro said that energy prices in Argentina hamper investment in the sector, as they don't reflect scarcity of products like oil derivatives and natural gas. Mr. Gabrielli called for changes in Argentina's pricing system. 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 said that his company was worried on the decreasing oil and natural gas reserves in Argentina, which called for additional investment. Bloomberg relates that Argentine President Nestor Kirchner refused to let energy firms to raise rates in a bid to control inflation and extend a four-year economic recovery. Energy shortages in the nation since 2004 have forced the government to cut exports to Chile and Uruguay and left farmers with insufficient fuel to plant crops. New York research company 4Cast Inc. analyst Matthew Festa commented to Bloomberg that the price controls seem to threaten to damp investment in energy. The government won't likely approve a rate increase this year, as it wants to limit prices ahead of the presidential election on Oct. 28. Argentina may face energy shortages and is vulnerable to any abrupt decline in energy since the price controls will prevent the market from correcting the problem, Bloomberg says, citing Mr. Festa. Morgan Stanley analyst David Wilson said in a research note that Petroleo Brasileiro's international division had BRL247 million losses on lower prices and volumes in Argentina and Bolivia, as well as higher costs associated with write-offs. However, Argentine Planning Minister Julio de Vido told Bloomberg that Petroleo Brasileiro's oil and gas fields in Argentina have huge potential. He denied that Argentina faces shortages. According to him, Mr. Gabrielli's comments at a Reuters conference were inappropriate. The minister told Radio Diez that Petroleo Brasileiro will see its contracts "seriously affected" if it fails to honor investments it has agreed to. Petroleo Brasileiro spokesperson Miriam Guaraciaba's assistant told Bloomberg that the firm is committed to existing investments in Argentina. 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. VALL ROS: Seeks Court Approval for Reorganization ------------------------------------------------- Vall Ros Internacional SA has filed a petition for reorganization with Buenos Aires' Court No. 19, after failing to pay its liabilities since Aug. 17 2002. The reorganization petition, once approved by the court, will allow Vall Ros to negotiate a settlement with its creditors in order to avoid a straight liquidation. Clerk No. 37 assists on this case. The debtor can be reached at: Vall Ros Internacional SA Carrasco 555 Buenos Aires, Argentina * ARGENTINA: May Look at Petroleo Brasileiro's Gas Contracts ------------------------------------------------------------ The Argentine government may evaluate Brazilian state-owned oil firm Petroleo Brasileiro SA's oil and natural gas concessions after the firm's Chief Executive Jose Sergio Gabrielli carped on the nation's policy of keeping prices low, Bloomberg reports. As reported in the Troubled Company Reporter-Latin America on March 23, 2007, Petroleo Brasileiro said that energy prices in Argentina hamper investment in the sector, as they don't reflect scarcity of products like oil derivatives and natural gas. Mr. Gabrielli called for changes in Argentina's pricing system. 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 said that his company was worried on the decreasing oil and natural gas reserves in Argentina, which called for additional investment. Bloomberg relates that Argentine President Nestor Kirchner refused to let energy firms to raise rates in a bid to control inflation and extend a four-year economic recovery. Energy shortages in the nation since 2004 have forced the government to cut exports to Chile and Uruguay and left farmers with insufficient fuel to plant crops. New York research company 4Cast Inc. analyst Matthew Festa commented to Bloomberg that the price controls seem to threaten to damp investment in energy. The government won't likely approve a rate increase this year, as it wants to limit prices ahead of the presidential election on Oct. 28. Argentina may face energy shortages and is vulnerable to any abrupt decline in energy since the price controls will prevent the market from correcting the problem, Bloomberg says, citing Mr. Festa. Morgan Stanley analyst David Wilson said in a research note that Petroleo Brasileiro's international division had BRL247 million losses on lower prices and volumes in Argentina and Bolivia, as well as higher costs associated with write-offs. However, Argentine Planning Minister Julio de Vido told Bloomberg that Petroleo Brasileiro's oil and gas fields in Argentina have huge potential. He denied that Argentina faces shortages. According to him, Mr. Gabrielli's comments at a Reuters conference were inappropriate. The minister told Radio Diez that Petroleo Brasileiro will see its contracts "seriously affected" if it fails to honor investments it has agreed to. Petroleo Brasileiro spokesperson Miriam Guaraciaba's assistant told Bloomberg that the firm is committed to existing investments in Argentina. 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. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 ============= B A H A M A S ============= ULTRAPETROL: Reports US$10.5 Mil. Net Income in Full Year 2006 -------------------------------------------------------------- Ultrapetrol (Bahamas) Limited disclosed its financial results for the fourth quarter and full year ended Dec. 31, 2006. 2006 Highlights: * Full year 2006 revenues of US$173.5 million were 38% higher than full year 2005 revenues of US$125.4 million. * Full year 2006 EBITDA was US$62.4 million. Full year 2005 EBITDA was US$55.8 million, which included a net gain of US$13.1 million on the sale of the bulk carrier vessel "Cape Pampas". Excluding the effect of this sale, full year 2005 Adjusted EBITDA was US$42.7 million. The 2006 EBITDA is 46% higher than this adjusted 2005 EBITDA. * Fourth quarter 2006 EBITDA of US$13.1 million, compared to fourth quarter 2005 EBITDA of US$3.0 million. Total revenues for 2006 were US$173.5 million, compared to US$125.4 million in 2005. Full year 2006 net income was US$10.5 million, compared to US$14.6 million in 2005. The 2005 results included the net gain of US$13.1 million on the sale of the "Cape Pampas". Ultrapetrol had a net loss of US$2.8 million in the fourth quarter 2006, a significant improvement on the net loss of US$7.8 million experienced in the equivalent period of 2005. The net result for the fourth quarter 2006 was impacted by several events and general seasonal patterns of certain of the company's businesses. These included: (1) a one-time charge totaling US$2.3 million resulting from the early cancellation of Ultrapetrol's variable interest rate debt and early redemption of preferred shares of UP Offshore owned by IFC as part of the use of proceeds of Ultrapetrol's October 2006 initial public offering; (2) the scheduled dry docks of the company's three largest OBO Suezmax/Capesize vessels, which lost 94 days during the fourth quarter of 2006; and (3) the general seasonality of Ultrapetrol's River and Passenger Businesses, which find their most active periods in the second and third quarters of the year. Felipe Menendez, Ultrapetrol's President and Chief Executive Officer, said: "Last year was a milestone year for Ultrapetrol. After more than 14 years as a private company, we completed our IPO in October. We also made great strides in executing our growth strategy, as evidenced by the solid performance of each of our operating units. We are pleased with the financial results generated by our diversified business model and we will continue to invest in those areas that present attractive growth opportunities. These investments underscore our commitment to growth and to improving the overall efficiency of each of our four business lines." As part of its ongoing investment program, Ultrapetrol has this month made the following investments: * River -- the company acquired all of the outstanding shares of another company operating in the Hydrovia System, by which Ultrapetrol has taken control of a modern fleet that includes the shallow drafted 4,500 bhp push boat "Otto Candies" (built in the U.S. in 1995) and 12 jumbo barges of 2,500 tons dwt each. * Offshore Supply -- Ultrapetrol has recently contracted with a shipyard in India for the construction of two Platform Supply Vessels of similar design to those the company has already built, with an option to build two more. If this option is exercised, Ultrapetrol will have a fleet of 10 large PSVs that utilize the most modern technology available in the world. As previously disclosed: * Ocean -- the company has added two ocean-going vessels to its fleet, following its strategic decision to invest in modern product tankers that will service niche trades. Business Segment Highlights River Despite a drought that affected the agricultural production in large areas of the river system Ultrapetrol serves, the company increased its volume of cargo carried by 19% during 2006 versus 2005. This, coupled with higher freight rates, enabled the River segment to generate EBITDA of US$18.5 million for 2006 and US$3.3 million for the fourth quarter 2006, an increase of 170% and 206%, respectively, over the equivalent periods in 2005. Offshore Supply Ultrapetrol took delivery of two new PSVs in 2006. After consolidating UP Offshore in March 2006, the Offshore Supply segment recorded EBITDA of US$13.7 million for the last nine months of the year. In the fourth quarter 2006, with four vessels in operation, this business segment generated EBITDA of US$4.5 million. Ocean In the fourth quarter 2006, Ultrapetrol acquired the crude/product tanker "Amadeo" which was built in 1996 and has a capacity of 39,530 mt dwt. The "Amadeo" is presently being retrofitted with a double hull in Romania. Ultrapetrol expects her to enter service in South America in the second quarter 2007. Additionally, the company purchased the m.t. "Alejandrina," a double hull product tanker built in 2006 that entered service in South America this month. Ultrapetrol's Ocean business generated an EBITDA of US$20.8 million in 2006 compared to US$43.1 million in 2005 (the 2005 EBITDA includes the net gain of US$13.1 million on the sale of the "Cape Pampas"). In the fourth quarter 2006, during which Ultrapetrol's three largest Suezmax/Capesize OBO vessels were out of service for 94 days due to a scheduled dry dock and survey, the Ocean segment posted an EBITDA of US$3.0 million. The Ocean segment's 2005 fourth quarter EBITDA was US$5.2 million. Passenger The company's Passenger business recorded EBITDA of US$8.7 million in 2006, compared to US$4.5 million in 2005. The increase resulted from a greater number of operational days in 2006 for the vessel "New Flamenco" (for which Ultrapetrol contracted partial off-season employment) and the commencement of service in April 2006 of the vessel "Grand Victoria." The unit's fourth quarter 2006 EBITDA was US$1.9 million, compared to zero EBITDA in the fourth quarter 2005. Ultrapetrol believes that the disclosed non-Generally Accepted Accounting Principles measures such as EBITDA, and any adjustments thereto, when presented in conjunction with comparable GAAP measures, are useful for investors to use in evaluating the performance of the company. These non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. About Ultrapetrol Ultrapetrol (Nasdaq: ULTR) - http://www.ultrapetrol.net/-- is an industrial transportation company serving the marine transportation needs of its clients in the markets on which it focuses. It serves the shipping markets for grain, forest products, minerals, crude oil, petroleum and refined petroleum products, as well as the offshore oil platform supply market and the leisure passenger cruise market, with its extensive and diverse fleet of vessels. These include river barges and pushboats, platform supply vessels, tankers, oil-bulk-ore vessels and passenger ships. * * * As reported in the Troubled Company Reporter on Dec. 26, 2006, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Bahamas-based shipping company Ultrapetrol (Bahamas) Ltd. At the same time, the rating on Ultrapetrol's US$180-million preferred ship mortgage notes due 2014 was also affirmed at 'B'. The outlook on the corporate credit ratings was revised to stable. As of Sept. 30, 2006, Ultrapetrol's total debt amounted to US$312 million. =========== B E L I Z E =========== * BELIZE: Gets Additional European Union Sugar Quota ---------------------------------------------------- The ministers of the African Caribbean and Pacific countries have agreed in a special meeting that the shortfall in Sugar Protocol supplies resulting from the cessation of production in St. Kitts should be reallocated within the Caribbean region. CARICOM sugar stakeholders have agreed that this reallocation should be shared equally by Belize and Guyana. The result is an increase of some 8,000 tons or almost 20% in the permanent quota of Belize to the European market. Belize's Minister of Foreign Trade Eamon Courtenay said, "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." For Belize it represents a crucial step in providing a much larger secure market outlet for the planned increase in sugar production resulting from the improved cane yields forecast to be obtained from the national Adaptation Strategy and Action Plan. Efforts will continue to concentrate on gaining further access to help offset the imminent reduction in the EU market price. The Belize delegation included Ambassador Alexis Rosado, trade economist Venetia Eck, and BSI Chairperson Barry Newton. Minister Courtenay went to Bonn, Germany, where he participated in an Informal Dialogue between the EU Development Ministers and invited ACP Trade Ministers. EU Trade Commissioner Peter Mandelson and Development Commissioner Louis Michel were also in attendance. The Bonn gathering allowed both the EU and the ACP to informally take stock of the status of the negotiations on Economic Partnership Agreements that will be completed by the end of 2007. These negotiations have become increasingly difficult as the negotiators seek to reach consensus on issues like: -- market access, -- tariff liberalization, -- services, and -- treatment of commodities like banana and sugar. Minister Courtenay also traveled to London where he had a meeting with Rt. Hon. Don Mackinnon, the Commonwealth Secretary General. The Secretary General briefed Minister Courtenay on the status of the secretariat's work on trade and petroleum issues for Belize, the upcoming Commonwealth Summit scheduled for Uganda, and other developments in Fiji and Zimbabwe. Minister Courtenay took the opportunity to brief Secretary General Mackinnon on the current state of play in the Belize- Guatemala negotiations. Meetings were also held with officials of the British Government on issues of mutual concern. The Belize delegation also discussed the proposed trip to Belize by UK parliamentarians and businesspersons later this year. This was a follow-up to the visit by Prime Minister Said Musa in November 2006 to London. High Commissioner, Lawrence Sylvester joined Minister Courtenay in these meetings. * * * 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 ============= FOSTER WHEELER: Unit Wins City Utilities' Steam Generator Deal -------------------------------------------------------------- Foster Wheeler Ltd.'s subsidiary within its Global Power Group has been awarded a contract by City Utilities of Springfield, Missouri, for the design and supply of a natural circulation pulverized-coal or PC steam generator to be constructed at City Utilities' existing Southwest Power Station in Springfield, Missouri. City Utilities is a community-owned municipal utility serving more than 106,000 customers in southwest Missouri with electricity, natural gas, water, telecommunications and transit services. Foster Wheeler has received a full notice to proceed on this contract, valued in excess of US$110 million, which will be included in Foster Wheeler's first-quarter 2007 bookings. The 300 MWe (gross megawatt electric) PC steam generator will be designed to fire low-sulfur Powder River Basin coal. To burn this fuel as cleanly and efficiently as possible, the unit will be equipped with Foster Wheeler's advanced low-NOx (nitrogen oxides) burner system. In addition, Foster Wheeler's selective catalytic reduction technology will be installed to reduce NOx emissions at the stack, and a flue gas scrubber will be used for sulfur dioxide reduction. Commercial operation of the plant is scheduled for the end of 2010. "This award underscores our client's confidence in our proven PC steam generator technology," said Gary Nedelka, president and chief executive officer of Foster Wheeler North America Corp. "This is another example of Foster Wheeler's commitment to supply environmentally friendly and cost-effective twenty-first century solutions to support our power industry clients." "This contract is a significant step in City Utilities of Springfield's plan to supply our community with a long-term, reliable and affordable energy source," said Scott Miller, associate general manager - electric supply, City Utilities. "This new facility will be a state-of-the-art facility producing clean, coal-fired energy for the region. In addition, construction and operation of the facility will provide highly skilled employment opportunities for the southwest Missouri area." Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter on Dec. 18, 2006, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating and other ratings on the company. The company had about US$217 million of total debt at Sept. 29, 2006. ============= B O L I V I A ============= * BOLIVIA: Striking Miners Demand Amayapampa Mine Reactivation -------------------------------------------------------------- Caracollo miners held demonstrations, blocking the highway connecting the cities of Oruro and La Paz to pressure the Bolivian government to restart operations at the Amayapampa gold mine, Business News Americas reports. Published reports say that the miners demanded that the government reactivate mining at the Potosi department through: -- state miner Comibol, or -- a foreign investor. According to BNamericas, Canadian firm Luzon Minerals holds 90% of Amayapampa and is making payments for the share purchase disclosed in January 2005 to Canadian Vista Gold. Vista holds the other 10%. Howard Harlan, Vista Gold's VP of business development, told BNamericas that Luzon is seeking financing to develop the project, which already has a bankable feasibility study. BNamericas underscores that workers who joined the blockade are part of the almost 300 non-salaried miners in the area that don't belong to any cooperative. In July 2005 cooperative miners who had worked at Amayapampa held a 10-day hunger strike to force the government to reactivate the mine, though local farmers opposed it on contamination fears. The strike ended with government guarantees of jobs for the unemployed workers. The blockades threaten the negotiations on new sector policies between mining cooperatives and the government. Talks in five of the six discussion groups haven't touched on pending issues that may need to be delayed, affecting the March 23 deadline when discussions are expected to end and the final accords presented, BNamericas states, citing the Bolivian mining ministry. * * * 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 =========== BANCO BRADESCO: Cancels Planned Serasa Initial Public Offering -------------------------------------------------------------- Banco Bradesco SA, Banco Itau Holding Financeira and Uniao de Bancos Brasileiros SA said in a joint statement that they canceled a planned initial public offering of credit information firm Serasa after receiving an offer to buy the company. Business News Americas says that Banco Itau holds 32.25% of Serasa, Bradesco owns 22.02% and Uniao de Bancos 19.04%. The local units of HSBC and ABN Amro have 4.20% and 2.76%, respectively. According to BNamericas, Serasa filed for an initial public offering with securities regulator Comissao de Valores Mobiliarios on March 5. Banco Bradesco, Banco Itau and Uniao de Bancos did not disclose the prospective buyer or buyers to BNamericas. However, financial daily Valor Economico relates that the offer came from Experian, an Irish financial information firm. About Banco Itau Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA (Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. About Uniao de Bancos Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/-- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. The company's businesses comprise segments: Retail, Wholesale, Insurance and Pension Plans and Wealth Management. Uniao de Bancos and its associated companies FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas) offer a network composed of 17,000 points of service. It also counts on 7,580 automated teller machines and all 30 Hours' products and services, including the telephone service and the Internet banking. The company's international network consists of branches in Nassau and the Cayman Islands; representatives offices in New York; banking subsidiaries in Luxembourg, the Cayman Islands and Paraguay; and a brokerage firm in New York -- Unibanco Securities Inc. About Banco Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 26, 2007, Fitch Ratings affirmed these issuer default ratings on Bradesco, with a Stable Outlook: -- Long-term foreign currency at 'BB+'; -- Long-term local currency at 'BBB-'; -- Individual rating at 'B/C'; -- Local currency short-term at 'F3'; -- Short-term at 'B'; -- Support rating of '4'; -- National short-term rating 'F1+(bra)'; and -- National long-term rating 'AA+(bra)'. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 27, 2006, Standard & Poor's Ratings Services maintained the 'BB+' ratings on both of Banco Bradesco SA's foreign and local currency counterparty credit rating, however it changed the ratings outlook to positive from stable on both ratings: -- Foreign currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Local currency counterparty credit rating * to BB+/Positive/B from BB+/Stable/B -- Brazil national scale rating * to brAA+/Positive/brA-1 from brAA+/Stable/brA-1 BANCO ITAU: Low-Income Credit Card Use to Reach BRL10.7B in 2007 ---------------------------------------------------------------- Fernando Chacon, Banco Itau Holding Financeira SA bank credit card marketing director, said in reports that low-income credit card use will increase 22% to BRL10.7 billion in 2007, from 2006. A study by Banco Itau's credit division indicated that sales volume growth among low-income credit card holders in Brazil will continue to surpass the general market in 2007, although at a lesser rate compared to the past two years, Business News Americas relates. Mr. Chacon told reporters that sales volume in the general market will likely increase 20% to BRL188 billion in 2007, compared to 2006. According to BNamericas, Banco Itau expects credit card sales volume to grow 18.4% to BRL41.7 billion in the first quarter of 2007, compared to the same quarter in 2006. Sales volume among low-income cardholders increased 23.6% in 2006 and 31.8% in 2005, while the general market grew 23% and 27.1% respectively. Artur Gimenes, a local credit card analyst at Ibope Intelegencia told BNamericas that the boost in sales volume among low-income cardholder was a result of the increased penetration seen in 2006. The PNAD national census showed that about 32%, or 34.1 million people of Brazil's economically active population earned up to BRL499 per month in 2005, BNamericas notes. Mr. Chacon told BNamericas that of the 34.1 million people, 61% have never had a credit card through a bank or the client finance unit of a bank, although they have or have had a private label card through a retailer. He suggested that the industry create ties with these consumers. To attract more low-income customers, Banco Itau has been testing a new product for the past six months that connects savings bonds with credit cards, according to the report. Mr. Chacon told BNamericas that plastic has come to represent the second most popular form of payment for the 22% of low- income earners that have credit cards, replacing checks and now only trailing cash. He said that there is still a lot of room for more penetration in this segment. The default rate among low-income credit card users is high, but stable. Defaults are part of the game, but they're in line with expectations. Mr. Gimenes commented to BNamericas, "Brazil still lacks sounds models for granting credit. Some banks had high default rates in this segment and had to put the brakes on granting loans." Low-income cardholders use credit cards to pay for basic needs as well as infrequent purchases like medicine or school supplies, BNamericas says, citing Mr. Gimenes. Meanwhile, Mr. Chacon told BNamericas that low-income cardholders use the cards for: -- supermarket buys, -- clothing purchases, and -- home supplies. Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA (Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Fitch changed the outlook of these ratings of Banco Itau Holding Financiera SA: -- foreign currency IDR at 'BB+'; outlook to positive from stable; -- local currency IDR at 'BBB-'; outlook to positive from stable; and -- national Long-term rating at 'AA+(bra)'; outlook to positive from stable. BANCO NACIONAL: Will Sell Stake in Brasiliana --------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has decided to sell a non-controlling stake in power holding firm Brasiliana, Business News Americas reports. Banco Nacional owns a 49.99% stake at Brasiliana. Brasiliana Chief Executive Officer Eduardo Bernini told the press that Banco Nacional's decision won't affect the operational performance of his company's operating subsidiaries in Brazil. Mr. Bernini said in a press conference, "Life without BNDES [Banco Nacional, as a shareholder] won't change. There is a shareholding agreement that gives AES operational control." Britaldo Soares -- investor relations officer of power distribution firm Eletropaulo, the largest asset controlled by Brasiliana -- told BNamericas that Banco Nacional hasn't disclosed details about its proposed share sale. AES has the first choice to purchase the shares and most of the shareholders' accord will remain untouched. Banco Nacional's decision to sell shares in Brasiliana follows that of AES to pay down all debts with Banco Nacional, BNamericas states. About Brasiliana Brasiliana, the holding power firm of most Brazilian assets of AES Corp., controls power generation firms Eletropaulo, AES Tiete and AES Uruguaiana. About Banco Nacional 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. BENQ CORP: Mobile Unit to Seek EUR500-Mln Claim Against Parent -------------------------------------------------------------- Martin Prager, the insolvency manager for BenQ Mobile GmbH, will file a EUR500 million (US$667 million) claim against Taiwan- based parent BenQ Corp., Bill Rochelle at Bloomberg News reports citing Economic Daily news as its source. According to EE Times Europe, Mr. Prager is seeking to get the assets allegedly transferred by BenQ Mobile to its parent company before it filed for insolvency in September 2006. Sueddeutche Zeitung says he is claiming EUR382 million from the company's Taipei headquarters and EUR122 million from a Shanghai subsidiary. As previously reported in the Troubled Company Reporter-Europe, about 4,350 creditors filed claims of up to EUR1.2 billion against BenQ Mobile, most of which comes from 3,500 former BenQ employees who are seeking up to EUR27 million in compensation. Creditors were asking Mr. Prager to examine whether they could require the company's Taiwanese parent to meet their demands as Mr. Prager's estimates of the mobile unit's assets fell only at around EUR300 million. BenQ Corp. rejected the creditors' compensation claims, calling them unrelated to the corporation, The China Post reports citing BenQ spokesman Wang Tan-ju. "We have consulted our legal advisers, who said that if they really take the action, there is no legal basis because BenQ Mobile is an independent enterprise," he said. BenQ Corp.'s CFO Eric Yu is currently under probe on an alleged involvement in insider trading activities. Bloomberg News relates that the allegations also 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. BenQ has posted a net loss of NT$7.89 billion or US$238 million for the October-December quarter. The Troubled Company Reporter-Europe noted that the quarterly loss is the company's fifth straight as its handset business continues to drag after it declared its German unit insolvent late last year. 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, 2006, 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. 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. BRASKEM SA: Fitch Affirms BB+ Ratings on Ipiranga Acquisition ------------------------------------------------------------- Fitch Ratings has affirmed its BB+ ratings on Braskem S.A. and Braskem International following the announcement by Braskem, Petrobras and the Ultra Group that they have reached an agreement to acquire the Ipiranga Group's petrochemical, refining and fuel distribution assets. The multi-part transaction, which is expected to be concluded by the end of 2007, should result in Braskem owning 33% of the oil refinery Refinaria de Petroleo Ipiranga or RIPI and 60% of the petrochemical assets of Ipiranga Quimica or IQ, which in turn will own 100% of Ipiranga Petroquimica or IPQ. Braskem will also own 64% of Copesul through its existing stake in that company plus that held by IPQ. The affirmed ratings are: Braskem S.A. -- Foreign currency issuer default rating at 'BB+'; -- Local currency issuer default rating at 'BB+';; -- Senior unsecured notes 2008, 2014 at 'BB+'; -- Senior unsecured Perpetual Bonds at 'BB+'; -- Senior unsecured notes 2017 at 'BB+'; -- National rating at 'AA (bra)'; -- Debentures 12th Issuance at 'AA (bra)'; and -- Debentures 13th Issuance at 'AA (bra)'. Braskem International -- Senior unsecured notes 2015 at 'BB+'. At the same time, the Rating Outlook for Braskem has been revised to Positive from Stable. The Positive Outlook reflects an expectation that Braskem's future earnings will benefit from this strategic acquisition and that it will be able to reduce its indebtedness over the next two years. This acquisition should allow Braskem to consolidate its leading position in the Brazilian petrochemical industry commanding a market share of over 50% in thermoplastic resins. On a post-acquisition consolidated basis, Braskem will have an annual capacity of about 2.9 million tons of thermoplastic resins and 5.8 million tons of basic petrochemicals. With this acquisition, which does not increase Braskem's financial leverage, Fitch expects the company to be able to increase significantly free cash flow generation, which would allow a significant improvement in credit metrics needed for Braskem's ratings to migrate to an investment grade category. Among the assets being acquired, IPQ operates five plants with a combined production capacity of 730,000 tons per year of polyethylene and polypropylene. During 2006, IPQ generated BRL184 million of EBITDA on BRL2 billion of sales. At the end of 2006, IPQ had BRL723 million of total debt and BRL21 million of cash. Copesul is the second largest naptha cracker in Latin America with an annual production capacity of 3.3 million tons per year of basic chemicals, including 1.25 million tons of ethylene. At the end of 2006, Copesul had BRL336 million of debt and BRL97 million of cash and marketable securities. Copesul's EBITDA was BRL1.151 billion in 2006. Refinaria Ipiranga is capable of refining 17,000 barrels of oil per day. At the end of 2006, it had no relevant cash or debt and only accounted for about BRL1 million of EBITDA in 2006. Braskem had BRL6.3 billions (USD2.95 billion) of debt and BRL1.8 billion (USD835 million) of cash and marketable securities at the end of 2006. During the past year, the company generated BRL1.6 billion of EBITDA. These figures translate into a net debt to EBITDA ratio of 2.7x for 2006. Braskem's total debt figure includes BRL1.1 billion of debentures, which Fitch expects could be converted to equity in 2007 and has been factored into the revision of the Outlook to Positive. Braskem's performance in 2006 was hindered by increased prices of naphtha, a larger supply of polyethylene in the market, the entrance of a new player in the local market and limited ability to pass on prices upstream. An improvement of the operational performance is expected for 2007, as demand has picked up in the local market and prices are re-aligning with international prices. A pro-forma consolidation of these new assets would have increased Braskem's EBITDA to BRL2.5 billion from BRL1.6 billion in 2006. Braskem has a positive track record in capturing synergies from its acquisitions. Thus, integration of these strategic assets is expected to improve the company's cash flow going forward and reduce volatility of the results. Braskem is expected to pay about US$1.1 billion for these assets and on a proportional basis will assume about BRL648 million of debt. On a pro-forma basis -- as if Braskem had owned these assets for 12 months in 2007 -- the company's yearend leverage ratio should be close to 2.5x. Braskem's foreign currency IDR is the same as the 'BB+' country ceiling assigned to Brazil by Fitch. The company's considerable exports and cash held abroad limit transfer and convertibility risk and would allow the company's FC IDR to potentially be rated above Brazil's Country Ceiling. Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. COMPANHIA SIDERURGICA: May Build Two Steel Processing Plants ------------------------------------------------------------ Companhia Siderurgica Nacional will construct two 4.5 million ton per year steel processing plants in Brazil, Business News Americas reports. BNamericas says that one plant will be built in Itaguai, Rio de Janeiro, while the other could be in Minas Gerais. Meanwhile, Companhia Siderurgica could also construct a 4.5 million ton per year steel processing plant in the United States to increase its presence in North America, Bloomberg relates. According to BNamericas, Companhia Siderurgica operates CSN LLC in North America. Bloomberg notes that discussions are ongoing to secure a location for the processing plant in the Midwest or southern US. The talks to construct the facility in Kentucky have advanced the furthest so far. CSN LLC Chief Executive Officer Luiz Migliora told Bloomberg, "Definitely, we have this in mind. We have done some investigations into Kentucky. This plant could be about 4.5 million tons. If you go for a greenfield, you should look at this size." Companhia Siderurgica had disclosed plans of constructing a hot rolling mill in Kentucky last year, BNamericas states. Companhia Siderurgica Nacional is one of the lowest-cost steel producers in the world, which is a result of its access to proprietary, high-quality iron ore (at the Casa de Pedra mine); self-sufficiency in energy; streamlined facilities; and logistics advantages. This is in addition to the group's strong market position in the fairly concentrated steel industry in Brazil. * * * As reported on Feb. 2, 2007, Standard & Poor's Ratings Services affirmed its 'BB' local- and foreign-currency corporate credit ratings on Brazil-steel maker Companhia Siderurgica Nacional or CSN and removed them from CreditWatch, where they were placed on Nov. 17, 2006, with negative implications. S&P said the outlook is stable. GRAFTECH INTERNATIONAL: Earns US$91.3 Mil. in Year Ended Dec. 31 ---------------------------------------------------------------- GrafTech International Ltd. reported net income of US$91.3 million on net sales of US$885.4 million for the year ended Dec. 31, 2006, compared with a net loss of US$125.2 million on net sales of US$773 million for the year ended Dec. 31, 2005. Net sales increased 11 percent, to US$855.4 million, versus 2005 net sales of US$773 million. Graphite electrode sales volume increased 5 percent to 211 thousand metric tons, versus 201 thousand metric tons in 2005. Gross profit increased 14 percent, to US$249.3 million or 29.1 percent of net sales, as compared to US$219.2 million, or 28.4 percent of net sales, in 2005. Income from continuing operations was US$42.4 million, versus a net loss from continuing operations of US$120.5 million in 2005. Income from discontinued operations, which includes the gain from sale of discontinued operations of US$58.6 million in 2006, was US$48.9 million, versus a loss from discontinued operations in 2005 of US$4.6 million. Net cash provided by operating activities was $64.2 million, versus US$8 million in 2005. Craig Shular, chief executive officer of GrafTech, commented, "Our team made significant progress in 2006 toward our stated goal of debt reduction. The sale of our non-strategic cathode business together with strong operating cash flow performance allowed us to complete the year with net debt below US$510 million, better than our original target. This represents a US$180 million improvement in net debt and nearly a US$100 million improvement in free cash flow year over year and positions the company well as we move into 2007." At Dec. 31, 2006, the company's balance sheet showed US$906.2 million in total assets, US$1.016 billion in total liabilities, and US$3.7 million in minority stockholders' equity in consolidated entities, resulting in a US$113.9 million total stockholders' deficit. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1be1 Discontinued Operations On Dec. 5, 2006, the company completed the sale of its 70% equity interest in Carbone Savoie and other assets used in and liabilities related to its former cathode business to Alcan France, for approximately US$135 million less certain price adjustments and the purchaser's assumption of liabilities. About GrafTech GrafTech International Ltd. -- http://www.graftechaet.com/-- manufactures and provides synthetic and natural graphite and carbon based products and technical and research and development services, with customers in 80 countries, including Brazil and Mexico, engaged in the manufacture of steel, aluminum, silicon metal, automotive products and electronics. The Company manufactures graphite electrodes and cathodes, products essential to the production of electric arc furnace steel and aluminum. It also manufactures thermal management, fuel cell and other specialty graphite and carbon products for, and provides services to, the electronics, power generation, semiconductor, transportation, petrochemical and other metals markets. GrafTech operates 13 manufacturing facilities located in four continents. * * * As reported in the Troubled Company Reporter on Nov. 9, 2006, Moody's Investors Service affirmed its B1 Corporate Family Rating for Graftech International Ltd. PETROLEO BRASILEIRO: Fitch Affirms BB+ Ratings on Ipiranga Buy -------------------------------------------------------------- Fitch Ratings has affirmed its BB+ ratings on Petroleo Brasileiro S.A.'s aka Petrobras. The Rating Outlook remains Stable. These rating actions follow the announcement by Petrobras, Braskem and the Ultra Group that they have reached an agreement to acquire the Ipiranga Group's petrochemical, refining and fuel distribution assets. Fitch has affirmed these ratings: -- Foreign currency issuer default rating at 'BB+'; -- Senior unsecured notes due to 2008 at 'BB+'; -- Senior unsecured notes due to 2011 at 'BB+'; -- Senior unsecured notes due to 2013 at 'BB+'; -- Senior unsecured notes due to 2014 at 'BB+'; -- Senior unsecured notes due to 2016 at 'BB+'; -- Senior unsecured notes due to 2018 at 'BB+'; -- National rating at 'AAA(bra)'; -- Second issuance of debentures due to 2012: 'AAA(bra)' -- Third issuance of debentures due to 2010: 'AAA(bra)' The multi-part transaction, which is expected to be concluded by the end of 2007, should result in Petrobras owning the fuel distribution assets of Ipiranga that are based in the North, Northeast and Midwest regions of Brazil, 33% of the oil refinery Refinaria de Petroleo Ipiranga or RIPI and 40% of the petrochemical assets of Ipiranga Quimica or IQ, which has investments in Ipiranga Petroquimica or IPQ and Copesul. Petrobras is expected to pay about US$1.3 billion for these investments. The fuel distribution assets being purchased by Petrobras consist of 3,324 service stations. IPQ operates five plants with a combined production capacity of 730,000 tons per year of polyethylene and polypropylene, while Copesul is the second largest naptha cracker in Latin America with an annual production capacity of 3.3 million tons per year of basic chemicals, including 1.25 million tons of ethylene. RIPI is capable of refining 17,000 barrels of oil per day. At the end of 2006, Petrobras had BRL58.4 billions (USD27.3 billions) of total debt and BRL29.2 billion (USD13.6 billions) of cash and marketable securities. During 2006, the company generated BRL52 billions (USD24 billions) of EBITDA. These acquisitions increase Petrobras' presence in the Brazilian petrochemical sector and enhance its fuel distribution capabilities. Given the low leverage at the entities to be acquired and Petrobras' strong capital structure, the transaction is viewed to be neutral to mildly positive for Petrobras' credit profile. The ratings of Petrobras are supported by substantial proved hydrocarbon reserves and increasing upstream output, recognized leadership in offshore exploration and production, a favorable international product price environment and its dominant domestic market position. The company further benefits from material international operations and its shift to a net export position, which supports the generation of foreign currency cash flow. These factors are tempered by vulnerability to fluctuations in international commodity prices, exposure to local political interference, currency risk, domestic market revenue concentration, and significant medium-term capital- investment requirements linked to the company's ambitious strategic plan. 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: Landless Farmers Hold Strike Against Co. ------------------------------------------------------------- Brazilian state oil company Petroleo Brasileiro SA's spokesperson told Business News Americas that landless farmers held demonstrations against the firm in Bahia, near the company's offshore operations. BNamericas relates that 200 strikers were claiming the rights to use 5,000 hectares of allegedly idle land in Sao Sebastiao do Passe, where Petroleo Brasileiro's administrative offices are located. They also demanded a bigger role in the firm's biodiesel program. According to BNamericas, Petroleo Brasileiro supports family agriculture in Sao Sebastiao, providing seeds and tools so farmers can plant the raw materials for biodiesel production. BNamericas underscores that the strike lasted less than a day. Petroleo Brasileiro didn't suffer production losses. Petroleo Brasileiro will study the landless farmers' demands, BNamericas states. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. PETROLEO BRASILEIRO: Will Export Ethanol to U.S. in 2007 -------------------------------------------------------- An official from Petroleo Brasileiro SA aka Petrobras told the Associated Press that the company is planning to export ethanol to the United States in 2007. According to Silas Oliva Filho, manager of ethanol and oxygenates at Petrobras, the company would enter the U.S. ethanol market for the first time following a sugar and ethanol conference in Sao Paulo. AP says that the U.S. would charge a 54-cent-a-gallon U.S. tariff on imports of Brazilian ethanol made from sugar, a measure designed to help U.S. corn growers. Ethanol could be made from either crop or sugar, but is much cheaper if it is made from sugar, AP adds. Petrobras expected to export around 850 million liters of ethanol in 2007 to markets including Nigeria and Venezuela, with test volumes to Japan of about 20 million liters. Mr. Filho asserted that as early as August, the company would start to construct a US$750 million ethanol pipeline with an estimated of two years to complete. The pipeline had the capacity to transport 8 billion liters (2.1 billion gallons) of ethanol. 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. TECUMSEH PRODUCTS: Brazilian Unit Demands Judicial Restructuring ---------------------------------------------------------------- TMT Motoco, the Brazil-based engine-manufacturing subsidiary of Tecumseh Products Company, filed a request in Brazil for court permission to pursue a judicial restructuring. The requested protection under Brazilian bankruptcy law is similar to a U.S. filing for Chapter 11 protection in that during such a restructuring TMT Motoco would remain in possession of its assets and its creditors could not impose an involuntary restructuring on the company. TMT Motoco requested the judicial restructuring following the rejection of its request for a temporary stay pending its previously announced appeal of a Brazilian court's decision, entered on March 15, 2007, denying its request to impose financial restructuring terms on two of its lenders. TMT Motoco has suspended operations and, with the consent of its unions, has placed its employees on vacation furlough. TMT Motoco and a majority of its lenders had previously signed an out-of-court restructuring agreement extending payment dates for TMT Motoco's debt on the same terms sought to be imposed on the two dissenting lenders in the court action. In conjunction with its March 15, 2007, ruling, the Brazilian court lifted a stay that had previously prevented one of the dissenting banks from pursuing collection proceedings. The court also implemented sweep procedures for TMT Motoco's bank accounts. These actions had the effect of accelerating TMT Motoco's debt to the dissenting bank, which totals approximately $18 million, making it all now due and payable and enabling the bank to pursue its remedies for collection under Brazilian law. TMT Motoco had also asked the Brazilian court for injunctive relief to suspend the outcome of the ruling pending its appeal; that request, however, was denied. TMT Motoco's appeal has been withdrawn. Lender Default The filing in Brazil constitutes an event of default with the Tecumseh's domestic lenders. This will enable these lenders to accelerate repayment of Tecumseh's debt unless such lenders agree to waive the defaults or enter into curative amendments to Tecumseh's first and second lien credit agreements to eliminate the default and make other necessary changes to those agreements. In its ongoing discussions with these lenders, Tecumseh to date has received no indication that it intends to accelerate or that it will not agree to any requested consents, waivers, or amendments. There can be no assurance, however, that Tecumseh will reach an agreement with its domestic lenders or as to what the terms of any such agreement may be. Tecumseh's management is continuing to assess what impact the developments at TMT Motoco may have on its other businesses. Tecumseh's management is working to protect these other businesses from any adverse effects of the events at TMT Motoco to the greatest extent possible. In that regard, Tecumseh noted that it expects to meet all existing commitments to its engine customers in North America as it currently has six weeks of inventory en route from Brazil and it also has inventory available in its warehouse in El Paso, Tex., and its plant in Dunlap, Tenn. A full-text copy of Amendment No. 4 to First Lien Credit Agreement is available for free at http://ResearchArchives.com/t/s?1bfe A full-text copy of Amendment No. 1 to Amended and Restated Second Lien Credit Agreement is available for free at http://ResearchArchives.com/t/s?1bff A full-text copy of the Out-of-Court Restructuring Agreement is available for free at http://ResearchArchives.com/t/s?1c00 About Tecumseh Products Company Headquartered in Tecumseh, Mich., Tecumseh Products Company (Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/-- manufactures hermetic compressors for air conditioning and refrigeration products, gasoline engines and power train components for lawn and garden applications, submersible pumps, and small electric motors. The company has offices in Italy, United Kingdom, Brazil, France, and India. TOWER AUTOMOTIVE: Wants Until July 31 to Decide on Leases --------------------------------------------------------- Tower Automotive Inc. and its debtor-affiliates ask the Honorable Allen L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York to further extend the time by which they must assume or reject their unexpired non-residential real property leases through and including July 31, 2007. Anup Sathy, Esq., at Kirkland & Ellis LLP, in Chicago, relates that the Debtors are party to more than 18 major facility lease agreements, including leases for office space locations and key production centers. The Debtors are current on all postpetition obligations under the unexpired Leases, Mr. Sathy relates. The Leased Facilities will factor heavily into the Debtors' ongoing operational restructuring, Mr. Sathy notes. According to Mr. Sathy, the Debtors have already made significant progress evaluating the Unexpired Leases. As of March 9, 2007, the Debtors have rejected nine different leases. However, Mr. Sathy explains that while the Debtors have made substantial progress, they remain in active negotiations with the landlords regarding certain of the Leased Facilities and require additional time to assume or reject the Unexpired Leases. The Debtors reserve their rights to evaluate whether any of the Unexpired Leases are secured financing arrangements. Nothing will constitute an admission that any of the contracts are properly categorized as lease arrangements, Mr. Sathy says. 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). TOWER AUTOMOTIVE: Hikes Due Diligence Amount to Over US$3.2 Mil. ---------------------------------------------------------------- Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York, notifies the U.S. Bankruptcy Court for the Southern District of New York that Tower Automotive Inc. and its debtor-affiliates have decided to increase the Due-Diligence Amount -- the amount the Debtors may pay to prospective equity investors and lenders -- up to US$3,225,000. The Increase of the Due-Diligence Amount from US$2,000,000 to US$3,225,000 was made: * with the consent of the Official Committee of Unsecured Creditors; and * pursuant to the Dec. 21, 2006, order issued by Judge Gropper authorizing the Debtors to increase payments upon notice to the Court. 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). UNIAO DE BANCOS: Cancels Planned Serasa Initial Public Offering --------------------------------------------------------------- Uniao de Bancos Brasileiros SA, Banco Bradesco SA and Banco Itau Holding Financeira said in a joint statement that they canceled a planned initial public offering of credit information firm Serasa after receiving an offer to buy the company. Business News Americas says that Banco Itau holds 32.25% of Serasa, Bradesco owns 22.02% and Uniao de Bancos 19.04%. The local units of HSBC and ABN Amro have 4.20% and 2.76%, respectively. According to BNamericas, Serasa filed for an initial public offering with securities regulator Comissao de Valores Mobiliarios on March 5. Banco Bradesco, Banco Itau and Uniao de Bancos did not disclose the prospective buyer or buyers to BNamericas. Financial daily news Valor Economico relates that the offer came from Experian, an Irish financial information firm. About Banco Itau Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA (Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. About Banco Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. About Uniao de Bancos Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/-- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. The company's businesses comprise segments: Retail, Wholesale, Insurance and Pension Plans and Wealth Management. Uniao de Bancos and its associated companies FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas) offer a network composed of 17,000 points of service. It also counts on 7,580 automated teller machines and all 30 Hours' products and services, including the telephone service and the Internet banking. The company's international network consists of branches in Nassau and the Cayman Islands; representatives offices in New York; banking subsidiaries in Luxembourg, the Cayman Islands and Paraguay; and a brokerage firm in New York -- Unibanco Securities Inc. * * * As reported in the Troubled Company Reporter Latin America on Feb. 12, 2007, Fitch changed the outlook of these ratings of Unibanco-Uniao de Bancos Brasileiros SA: -- Foreign currency IDR at 'BB+'; Outlook to Positive from Stable; -- Local currency IDR at 'BB+'; Outlook to Positive from Stable; and -- National Long-term rating at 'AA(bra)'; Outlook to Positive from Stable Fitch Ratings revised the Outlook on the foreign and local currency Issuer Default ratings and National ratings of a select group of Brazilian banks, insurance and leasing companies to Positive from Stable. This rating action follows the revision of Brazil's foreign and local currency IDR Outlooks. All the ratings on these banks, insurers and leasing companies are affirmed. =========================== C A Y M A N I S L A N D S =========================== MAVERICK LONG: Will Hold Final Shareholders Meeting on May 31 ------------------------------------------------------------- Maverick Long Enhanced (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 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 liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands MBF NO.1: To Hold Final Shareholders Meeting on May 31 ------------------------------------------------------ MBF NO.1 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: Guy Major Joshua Grant Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands PARMALAT SPA: Investors To Get US$50 Million Partial Settlement --------------------------------------------------------------- A multi-national notification program began on March 22, 2007, as ordered by the U.S. District Court for the Southern District of New York, to alert investors, brokers, financial institutions, and other nominees who bought the common stock or bonds of Parmalat Finanziaria S.p.A. and its subsidiaries and affiliates from Jan. 5, 1999, through and including Dec. 18, 2003, about a US$50 million partial settlement of a U.S. class action lawsuit about the prices paid for Parmalat common stock and bonds. The lawsuit alleges that Parmalat and numerous other defendants participated in a fraudulent financial scheme, resulting in the understatement of Parmalat's debt by nearly US$10 billion and the overstatement of its net assets by over US$16 billion. Parmalat ultimately filed for bankruptcy, and the value of its stock and bonds dramatically declined. Several of the defendants have now agreed to settle the case (Banca Nazionale del Lavoro S.p.A. (BNL), Credit Suisse Group, Credit Suisse, Credit Suisse International, and Credit Suisse Securities (Europe) Limited), while the lawsuit proceeds against Parmalat S.p.A. (the successor to Parmalat Finanziaria S.p.A.), financial institutions, two auditing firms, and certain individuals. The Court defined "Class members" in the settlement to include all people and entities who bought Parmalat common stock and/or bonds from Jan. 5, 1999 through and including Dec. 18, 2003, and were damaged thereby, regardless of where such people live or where they purchased their Parmalat securities. Notices informing Class members about their legal rights will be mailed, and are scheduled to appear in publications reaching readers in the United States, Italy, and around the world, leading up to a hearing in New York on July 19, 2007, when the Court will consider whether to approve the settlement. In May 2004, the Court appointed the law firms of Cohen, Milstein, Hausfeld & Toll, P.L.L.C, of Washington, D.C., Grant & Eisenhofer, P.A., of Wilmington, DE, and Spector Roseman & Kodroff, P.C., of Philadelphia, PA, to represent the Class. These firms have been litigating this case known as In re Parmalat Securities Litigation, No. 04 Civ. 0030 (LAK), since that time, and they negotiated the partial settlement. Those affected by the settlement may simply await further notice about how to ask for a payment, or may now exclude themselves from the partial settlement, or object to the terms of the proposed settlement. The deadline for exclusions and objections is June 19, 2007. The money in the settlement fund will not be distributed yet. In part because the litigation is still proceeding against the remaining defendants, there is no plan to allocate the money now; thus it is not possible to determine the amount of Class member payments, or what the average payment will be on a per share or per bond basis. Payments will depend on the number of valid claim forms that Class members eventually send in, how many shares of Parmalat stock they bought or how many bonds they bought, when they bought and sold them, and the prices they paid. A neutral Court website has been established at http://www.ParmalatSettlement.com/where notices and the Settlement Stipulation may be obtained. Those affected may also write to: Parmalat Notice Administrator P.O. Box 4068 Portland, OR 97208-4068 The Class Counsels are: 1) Mark S. Willis, Esq. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Telephone +1-202-408-4606 2) James Sabella, Esq. Grant & Eisenhofer P.A. Telephone +1-646-722-8500 3) Robert M. Roseman, Esq. Spector Roseman & Kodroff, P.C. Telephone +1-215-496-0300 About Parmalat Based in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has 40- some brand product line, which includes yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. PRINCIPAL PROTECTED: Final Shareholders Meeting Is on May 31 ------------------------------------------------------------ Principal Protected Mmcaps I, 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