/raid1/www/Hosts/bankrupt/TCRLA_Public/070326.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
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 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
REPACK HOLDINGS: Sets Last Shareholders Meeting for May 31
----------------------------------------------------------
Repack Holdings Inc. will hold its final shareholders meeting on
May 31, 2007, at:
Maples Finance Limited
Queensgate House, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
the winding up has been conducted and how the property has
been disposed, and
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
Wendy Ebanks
Joshua Grant
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
SANTA ROSA: Will Hold Final Shareholders Meeting on May 31
----------------------------------------------------------
Santa Rosa CDO, Limited 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:
Joshua Grant
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
YRE ASSET: Final Shareholders Meeting Is on May 31
--------------------------------------------------
Y.R.E. Asset Funding Co., Ltd. will hold its final shareholders
meeting on May 31, 2007, at:
Maples Finance Limited
Queensgate House, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
the winding up has been conducted and how the property has
been disposed, and
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Emile Small
c/o Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
=========
C H I L E
=========
SHAW GROUP: Will Add 5,000 Workers Due to Growing Market Demands
----------------------------------------------------------------
The Shaw Group Inc. reported its plans to add an additional
5,000 professionals and craft workers to its 21,000 person work
force over the next 12 months. Shaw is experiencing
unprecedented growth demands globally in its Power, Energy &
Chemicals, and Fabrication & Manufacturing divisions.
Opportunities in Power include the Fossil, Nuclear and
Maintenance sectors, including coal and gas-fired power plant
engineering and design, and next-generation nuclear plant
engineering and design. While most positions are in the
domestic market, there are also overseas opportunities.
J. M. Bernhard, Jr., Chairman, President and Chief Executive
Officer of Shaw, said, "This company was founded 20 years ago
with 3 employees, and I'm very pleased that Shaw has reached
record staffing highs of over 21,000 employees. Shaw is
providing great opportunities to employees, improving their
families' lives by working at Shaw. Our best years are ahead of
us in a promising market and we are positioned to help our
clients achieve their goals."
Shaw will be recruiting at career fairs in the Denver, CO;
Boston, MA; Charlotte, NC; Trenton/Cherry Hill, NJ; and Houston,
TX areas and Toronto, Canada through April. Interested
applicants can look at openings at the company's 170 locations
around the globe and submit a resume at http://www.ThinkShaw.net
or http://www.shawgrp.com/careers.
With estimated revenues in 2007 of over US$5 billion and a
backlog of US$9.5 billion, Shaw is positioned to take the lead
in several markets. The company has experienced significant
growth in over the past two years, and expects to continue to
grow rapidly. Shaw has hired 2,700 professionals in the past 6
months. With innovative proprietary technologies and first-of-
a-kind projects, Shaw offers engineering and construction
professionals the kinds of challenges they won't find elsewhere.
For example, Shaw announced on March 1 that the
Westinghouse/Shaw AP1000 Consortium has completed a framework
agreement with China's State Nuclear Power Technology Company to
provide four AP1000 next-generation nuclear power plants in
China.
"Shaw is the place to be for a career in many facets of
engineering and construction," J. M. Bernhard, Jr., continued.
"The opportunities we offer in nuclear, fossil, chemicals and
energy are second to none. With first-of-a-kind opportunities
and a rapidly growing backlog of work, we're seeking the best
and brightest in the industry to join us now."
Headquartered in Baton Rouge, LA, The Shaw Group Inc.
(NYSE: SGR) -- http://www.shawgrp.com/-- is a global provider
of services to the environmental, infrastructure and homeland
security markets, including consulting, engineering,
construction, remediation and facilities management services to
governmental and commercial customers. It is also a vertically
integrated provider of engineering, procurement, pipe
fabrication, construction and maintenance services to the power
and process industries. The company segregates its business
activities into four operating segments: Environmental &
Infrastructure (E&I); Energy & Chemicals (E&C); Maintenance, and
Fabrication, Manufacturing & Distribution (F&M). In January
2005, the company sold substantially all of the assets of its
Shaw Power Technologies Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.
The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.
===============
C O L O M B I A
===============
ARMOR HOLDINGS: Obtains US$103-Million Armor Component Order
------------------------------------------------------------
Armor Holdings Inc. reported the receipt of new orders from AM
General valued at US$103 million under a blanket purchase
agreement to provide armor components for the M1151, M1152 and
M1165 Up-Armored HMMWV programs. The company stated that work
will be performed in 2007 by the Armor Holdings Aerospace and
Defense Group at its Fairfield, Ohio facilities.
Robert Schiller, President of Armor Holdings, Inc., said, "Our
ongoing business in support of AM General validates our
investment in facilities and equipment to become a premiere
armor component fabrication center. We are pleased to continue
our long standing positive relationship with AM General in
support of these Up-Armored HMMWV programs."
Headquartered in Jacksonville, Florida, Armor Holdings, Inc.
(NYSE: AH) -- http://www.armorholdings.com/-- manufactures and
distributes security products and vehicle armor systems for the
law enforcement, military, homeland security, and commercial
markets. The company's mobile security division is located in
Mexico, Venezuela, Colombia and Brazil.
* * *
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Ba3 Corporate
Family Rating for Armor Holdings Inc.
Additionally, Moody's affirmed its B1 ratings on the company's
2% Convertible Senior Subordinated Notes Due 2024 and 8.25%
Senior Subordinated Notes Due 2013. Moody's assigned those
debentures an LGD5 rating suggesting noteholders will experience
a 77% loss in the event of default.
TOWER RECORDS: Caiman Buys Trademark & Web Site for US$4.2-Mil.
---------------------------------------------------------------
Caiman Holdings Inc. has bought Tower Records trademark and Web
site for US$4.2 million outbidding four other competitors, the
Sacramento Business Journal reports. The sale includes the
e-commerce business and a global trademark of Tower Records,
which is registered in 37 countries.
The Sacramento Bee says that with the purchase, Caiman Holdings
could now operate the Web site and possibly open Tower Records
stores in the United States and in some foreign countries.
Headquartered in West Sacramento, California, MTS, Inc., dba
Tower Records -- http://www.towerrecords.com/-- is a retailer
of music in the U.S., with nearly 100 company-owned music, book,
and video stores. The company has stores in the United Kingdom,
the Philippines and Colombia.
The Company and its affiliates previously filed for chapter 11
protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No.
04-10394). The Court confirmed the Debtors' plan on
March 15, 2004.
The Company and seven of its affiliates filed their second
voluntary chapter 11 petition on Aug. 20, 2006 (Bankr. D. Del.
Case Nos. 06-10886 through 06-10893). Richards, Layton &
Finger, P.A. and O'Melveny & Myers LLP represent the Debtors.
The Official Committee of Unsecured Creditors is represented by
McGuirewoods LLP and Cozen O'Connor. When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than US$100 million. The Debtors' exclusive period to
file a chapter 11 plan expires on Dec. 18, 2006.
Moody's Investors Service gave the company's issuer rating and
long-term corporate family rating a Ca, and its senior
subordinated rating a C.
* COLOMBIA: Arthur D to Give Technical Assistance to Regulator
--------------------------------------------------------------
Colombian hydrocarbons regulator Agencia Nacional de
Hidrocarburos has awarded U.S. company Arthur D Little a
contract to provide technical assistance and improve the
former's ability to conduct upstream licensing and tender
responsibilities, Business News Americas reports.
U.S. Trade & Development Agency relates that Arthur D will
complete its work in August 2007.
According to BNamericas, U.S. Trade is providing technical
assistance funds for the project, which includes:
-- providing expertise and capacity building to the
regulator's management and staff in charge with
developing licensing policy,
-- organizing tenders based on international
standards,
-- evaluating bids, and
-- helping the regulator develop a marketing strategy
to lure foreign investors to participate in the
development of Colombia's hydrocarbons sector.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 8, 2007, Standard & Poor's lifted the country's foreign
credit to BB+ from BB. Colombia's local currency debt rating
was raised to BBB+ from BBB.
===================
C O S T A R I C A
===================
ALCATEL-LUCENT: Another Ex-Official Indicted in Firm's Case
-----------------------------------------------------------
The U.S. Department of Justice told A.M. Costa Rica that a Miami
federal grand jury has returned a "superseding indictment"
charging former Alcatel-Lucent executive Edgar Valverde Acosta
with violating the Foreign Corrupt Practices Act by bribing
Costa Rican officials to secure a mobile telephone contract from
the state-owned telecommunications authority Instituto
Costarricense de Electricidad.
A.M. Costa Rica relates that Mr. Acosta was the former senior
country officer at Alcatel de Costa Rica, Alcatel-Lucent's Costa
Rican affiliate. The 10-count indictment charged him and French
national Christian Sapsizian -- the former deputy vice president
responsible for Costa Rica -- of making corrupt payments and
laundering the bribes through a consultant. Mr. Sapsizian was
previously charged on Dec. 19, 2006, with conspiring to pay
US$2.5 million to Costa Rican officials to get a
telecommunications contract for Alcatel-Lucent.
According to A.M. Costa Rica, the superseding indictment alleged
that Messrs. Sapsizian and Valverde conspired from February 2000
through September 2004 to make payments to a member of the board
of directors of Instituto Costarricense -- responsible for
awarding all telecommunications contracts -- to exercise his
influence to:
-- start a bidding process favoring Alcatel-Lucent's
technology, and
-- to vote to award the company a mobile telephone
contract.
The report says that Messrs. Sapsizian and Valverde paid the
bribe to Instituto Costarricense board member Jose Antonio Lobo
-- the director who was an adviser to a more senior official in
the Costa Rican government. Messrs. Sapsizian and Valverde are
charged with offering Mr. Lobo up to 2% of the value of the
contract. Mr. Lobo claimed that he passed a substantial sum on
to then-president Miguel Angel Rodriguez. Both are facing Costa
Rican criminal action.
A.M. Costa Rica emphasizes that the superseding indictment
stated that Messrs. Sapsizian and Valverde were aware that the
Instituto Costarricense official planned to share the bribe with
a more senior Costa Rican government official. They authorized
one of Alcatel-Lucent's Costa Rican consulting firms, which was
managed by another individual, to channel the payments to the
Instituto Costarricense official. Messrs. Sapsizian and
Valverde allegedly caused Alcatel CIT to send US$14 million in
commission payments to the consultant. The consultant then
transferred US$2.5 million to the Instituto Costarricense
official.
Alcatel-Lucent, was then awarded a US$149-million mobile
telephone contract in August 2001, A.M. Costa Rica notes.
A.M. Costa Rica states that the conspiracy and corrupt practices
charges each have a maximum sentence of five years in prison,
while the money laundering charge carries a maximum sentence of
20 years in prison.
The report says that the prosecutors in the case are:
-- Mark F. Mendelsohn, Deputy Chief of the Fraud
Section of the Criminal Division of the U.S.
Department of Justice; and
-- Trial Attorneys of the Fraud Section of the
Criminal Division at the U.S. Department of Justice
in Washington:
* Charles Duross, and
* Mary K. Dimke.
A.M. Costa Rica adds that the Federal Bureau of Investigation
conducts the investigations for the case.
The Southeast Regional Branch of the U.S. Securities and
Exchange Commission provided assistance in the case, the
Department of Justice told A.M. Costa Rica.
Mr. Mendelsohn can be reached at:
Deputy Chief, Fraud Section
Criminal Division
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530-0001
USA
E-mail: Criminal.Division@usdoj.gov
Phone: (212) 637-2487
Mr. Duross can be reached at:
The United States Attorney's Office
Southern District of Florida
99 N.E. 4th Street
Miami, Florida 33132
USA
Phone: (305) 961-9001
Fax: (305) 530-7679
Ms. Dimke can be reached at:
DOJ Trial Attorney
450 Golden Gate Avenue, Box 36055
San Francisco, California 94102
USA
Phone: (415) 436-6840
Fax: (415) 436-7234
E-Mail: Mary.Dimke@usdjoj.gov
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide,
to deliver voice, data and video communication services to end
users. Through its operations in fixed, mobile and converged
broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end
solutions that enable communications services for people at
home, at work, and on the move.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Australia, Brunei, and Cambodia.
* * *
As of Feb. 7, 2007, Alcatel-Lucent's Long-Term Corporate Credit
rating and Senior Unsecured Debt carry Standard & Poor's BB
rating. It's Short-Term Corporate Credit rating stands at B.
Moody's on the other hand put a Ba2 rating on Alcatel's
Corporate Family and Senior Debt rating. Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred
rating.
Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured
Debt rating at BB.
===================================
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
---------------------------------------------------
The AES Corp. has deposited the US$6 million payment it agreed
with the Dominican Republic government into the World Fargo Bank
in New York, DR1 Newsletter reports.
As reported in the Troubled Company Reporter-Latin America on
March 13, 2007, AES Corp. reached an out-of-court settlement
with the Dominican Republic by agreeing to pay US$6 million for
the industrial waste dumped on the latter's shores. The
Dominican Republic sought for US$80 million in damages from AES
Corp. for 82,000 tons of coal ash dumped on its beaches. The
tons of ash were left on the beaches in Manzanillo and the
Samana Bay port town of Arroyo Barril between October 2003 and
March 2004 without proper government permits. These tons of ash
were transported from an AES Plant in Guayama, Puerto Rico. AES
Corp. said that it had proper permits for disposal of the ash
and believed that it was not toxic. The Dominican nation also
sued Roger Charles Fina, the owner of the firm hired by AES
Corp. to transport the ash.
DR1 Newsletter relates that as part of the agreement, the rock
ash must be disposed of within the first 120 days after the
money is deposited into the bank account.
Dominican Environment Minister Max Puig told Diario Libre that
the funds have been in the bank account since last week.
The money will be used to pay court and legal fees, DR1
Newsletter states.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.
AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela. Fuels include biomass, diesel, coal, gas and
hydro. The group also pursues business development activities
in the region. AES has been in the region since May 1993, when
it acquired the CTSN power plant in Argentina.
* * *
As reported on Oct. 20, 2006, Moody's Investors Service's
downgraded its B1 Corporate Family Rating for AES Corporation in
connection with the implementation of its new Probability-of-
Default and Loss-Given-Default rating methodology.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on the company's loans
and bond debt obligations including the B1 rating on its senior
unsecured notes 7.75% due 2014, which was also given an LGD4
loss-given default rating, suggesting noteholders will
experience a 55% loss in the event of a default.
BANCO INTERCONTINENTAL: Defendants May Face Stiffer Penalties
-------------------------------------------------------------
The Justice Ministry of the Dominican Republic and the
complainants in the Banco Intercontinental fraud case have
petitioned for increased criminal charges against the
defendants, Dominican Today reports.
Dominican Today relates that the request for more drastic prison
terms were made to the three judges of the National District
First Collegiate Court who hear the case against:
-- Ramon Baez Figueroa,
-- Marcos Baez Cocco,
-- Vivian Lubrano de Castillo,
-- Luis Alvarez Renta, and
-- Jesus Maria Troncoso.
According to Dominican Today, the 230 pieces of evidence
introduced showed that the accused made violations of the
Dominican Republic's law that don't necessarily appear in their
indictments.
The prosecution asked that the court must rule on whether to
vary the accusations so that the accused face additional
criminal penalties, Dominican Today notes.
Dominican Today underscores that the prosecution asked that Mr.
Renta be also charged with:
-- conspiracy, according to several articles of the
Penal Code;
-- complicity to breach of trust and the forgery of
bank documents; and
-- conspiracy to forge documents.
The report says that the prosecution also requested that the
court advise Mr. Figueroa, Mr. Cocco, Ms. Lubrano de Castillo
and Mr. Troncoso of their rights to a defense regarding their
alleged forgery and use of bank documents, and conspiracy, since
from the start it has been shown that a variation in the
indictment is possible and viable.
The defendants' attorneys immediately objected the petition,
questioning the motives of the Banks Superintendence's and
Central Bank's lawyers, as well as well as the prosecutors,
Dominican Today states.
Banco Intercontinental aka Baninter collapsed in 2003 as a
result of a massive fraud that drained it of about US$657
million in funds. As a consequence, all of its branches were
closed. The bank's current and savings accounts holders were
transferred to the bank's new owner -- Scotiabank. The
bankruptcy of Baninter was considered the largest in world
history, in relation to the Dominican Republic's Gross Domestic
Product. It cost Dominican taxpayers DOP55 billion and resulted
to the country's worst economic crisis.
=====================
E L S A L V A D O R
=====================
* EL SALVADOR: State Power Firm to Complete Plant Revamp Program
----------------------------------------------------------------
El Salvador's state power firm Comision Ejecutiva Hidroelectrica
del Rio Lempa production manager, Rodolfo Caceres, told Business
News Americas that the company will conclude a US$64.4-million
improvement program at its plants in June.
Daily El Diario de Hoy relates that the revamp program, which
aims to increase the plants' generation capacity to 469
megawatts from 388 megawatts, started in 1999.
Mr. Caceres told El Diario that the program will finish with the
US$15-million restoration of the 157-megawatt 15 de Septiembre
plant, increasing plant capacity to 23.4 megawatts.
BNamericas underscores that consortium Alstom-IASA is conducting
the repair of the plant, which started operating in 1983.
Mr. Caceres told BNamericas that the 15 de Septiembre plant
produces almost 10% of El Salvador's demand per year.
Comision Ejecutiva has improved nine of its 10 plants under the
revamp program, El Diario states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Fitch Ratings affirmed these ratings on El
Salvador:
-- Foreign and Local Currency Issuer Default Ratings
at 'BB+';
-- Short-term Issuer Default Rating at 'B'; and
-- Country Ceiling at 'BBB-'.
Fitch said the rating outlook was stable.
=================
G U A T E M A L A
=================
AFFILIATED COMPUTER: Confirms Deason-Cerberus Purchase Proposal
---------------------------------------------------------------
Affiliated Computer Services Inc. confirmed that it received a
proposal from Darwin Deason, Chairman of the Board of ACS, and
Cerberus Capital Management L.P., to acquire, for a cash
purchase price of US$59.25 per share, all of the outstanding
shares of the company's common stock, other than certain shares
and options held by Mr. Deason and members of the company's
management team that would be rolled into equity securities of
the acquiring entity in connection with the proposed
transaction.
A special committee of independent directors has been formed by
the Board of Directors to evaluate the company's strategic
alternatives, including the proposal from Mr. Deason and
Cerberus. The committee has engaged independent legal counsel
-- Weil, Gotshal & Manges LLP -- and expects to retain
independent financial advisors to assist the committee.
The committee expects to make a recommendation to the Board of
Directors following its consideration of strategic alternatives,
including the proposal, in due course.
Letter to Mr. Deason
The independent directors, through Lead Director Joseph P.
O'Neill, have written a letter to Mr. Deason about his proposal.
In that letter, Mr. O'Neill stated that the independent
directors have threshold concerns with two aspects of the
Proposal:
1) The Proposal states that Mr. Deason has agreed to work
exclusively with Cerberus to negotiate a transaction and
expect the Proposal to undergo a customary market check
process only after execution of a definitive agreement;
and
2) The Proposal indicates that Mr. Deason has entered into an
agreement with Cerberus which involves, among other
things, voting arrangements with respect to Mr. Deason's
ACS shares.
With regards to the first aspect, Mr. O'Neill emphasized that
the independent directors are concerned that it provides Mr.
Deason and Cerberus with an inherent timing and information
advantage, which may chill the interest of other parties and
raise questions about the fairness and reasonableness of the
company's process for developing and considering alternative
proposals.
Accordingly, Mr. O'Neill relates that the independent directors
are requesting that the exclusivity arrangement promptly be
voided so that there is no constraint on the company's ability
to deal with third parties concurrently with Mr. Deason and
Cerberus.
Concerning the second aspect, Mr. O'Neill said that the
independent directors believe they need to be informed of Mr.
Deason's agreements relating to the Proposal, including details
as to the roll over of certain of his securities, cash he
received in the transaction and ongoing incentive and other
arrangements, in order to properly evaluate the Proposal.
Moody's May Downgrade Ratings
Moody's Investors Service placed the ratings for Affiliated
Computer Services on review for possible downgrade after the
company's disclosure of Mr. Deason and Cerberus' proposal to buy
the company.
"With a proposed consideration exceeding $8 billion, the
transaction, once approved, would likely result in a significant
increase in financial leverage and a multiple notch downgrade of
the company's ratings," John Moore, Moody's Senior Analyst,
said.
Ratings placed on review for possible downgrade include the Ba2
rated Senior Secured Term Loan, Senior Secured Revolving Credit
Facility, Senior Notes, and US$500 Million due 2010 and 2015.
Deason-Cerberus Buyout Proposal
In their proposal, Mr. Deason and Cerberus said their proposed
price represents a premium of 15.5% over the closing price of
the company's class A common stock on March 19, 2007, and an
18.3% premium over the 90-day average closing price.
Mr. Deason and Cerberus expect that the company's Board of
Directors will establish a special committee of independent
directors to consider and negotiate the proposal on behalf of
the company's public shareholders and ultimately to recommend to
the Board of Directors whether to approve the Acquisition.
Mr. Deason and Cerberus also expect that the Special Committee
will engage its own legal and financial advisors to assist in
its review.
Specifically, Mr. Deason and Cerberus propose, among others,
that:
a) the acquisition would be structured as a merger in which a
newly formed acquisition vehicle of a holding company
organized by the proponents for the transaction would
merge with and into the company;
b) Mr. Deason continue as Chairman following the acquisition;
c) the business would continue to be run in accordance with
the company's current practice while maintaining the
company's valuable employee base; and
d) in connection with the transaction, Mr. Deason would
receive performance-based equity incentives.
Financing
Mr. Deason committed to roll, into equity securities of the
acquiror, company common stock and options having an aggregate
value of approximately US$300 million based on the proposed
acquisition price.
Members of the company's executive management team would also be
required to roll over company common stock and options
representing at least 70% of the aggregate value of the company
common stock and options held by them based on proposed
acquisition price, and other members of the company's management
team would be required to roll over at least half of the
aggregate value of the company common stock and options held by
them.
Members of management would also be afforded the opportunity to
roll over more company common stock and options. Cerberus will
make a significant cash equity investment to fund a substantial
portion of the purchase price.
The balance of the purchase price will be financed through a
combination of bank loans and high yield securities issued
pursuant to commitment letters from financial institutions.
Citigroup Commitment Letter
Mr. Deason and Cerberus received a letter from Citigroup Global
Markets Inc. stating that it is highly confident of its ability
to raise the debt necessary to complete the transaction.
In that letter, Citigroup stated, "It is our understanding that
acquiror intends to finance the acquisition with:
(i) up to US$4,050 million of funded Senior Secured Credit
Facilities;
(ii) the underwriting or private placement of up to
US$2,515 million High Yield Notes; and
(iii) the contribution by the acquiror of cash equity and
rollover equity, all of which will allow [the acquiror]
to complete the acquisition and to pay fees and expenses
associated therewith."
In evaluating the acquisition, Citigroup said it "is highly
confident of its ability to (i) underwrite fully or privately
place through a 144A offering with subsequent registration
rights the Notes and (ii) underwrite fully and syndicate the
Senior Credit Facilities."
Timetable
Cerberus has already begun its due diligence review, but will
need to conduct additional confirmatory business, accounting and
legal due diligence. The proposal is subject to completion of
the confirmatory due diligence by Cerberus, as well as
negotiation and execution of a mutually satisfactory merger
agreement.
Cerberus believes it can complete its due diligence within 45
days from the date it is granted full access to the company's
management and the requisite due diligence materials. The
proponents anticipate negotiation of the merger agreement
concurrently with the due diligence process, with a view to the
execution of the merger agreement in early-May 2007.
Cerberus said it is prepared to commence its confirmatory due
diligence review immediately following negotiation and execution
of a mutually satisfactory confidentiality agreement.
Second Quarter 2007 Results
As reported in the Troubled Company Reporter on Mar. 9, 2007,
Affiliated Computer Services Inc. reported net income of
US$72.1 million on revenues of US$1.426 billion for the second
quarter of fiscal 2007 ended Dec. 31, 2006, compared with net
income of US$102.4 million on revenues of US$1.347 billion for
the second quarter of the prior year.
At Dec. 31, 2006, the company's balance sheet showed
US$5.928 billion in total assets, US$4.038 billion in total
liabilities, and US$1.89 billion in total stockholders' equity.
About Affiliated Computer
A FORTUNE 500 company, Affiliated Computer Services Inc.,
(NYSE: ACS) -- http://www.acs-inc.com/ -- provides business
process outsourcing and information technology solutions to
world-class commercial and government clients. The company has
more than 58,000 employees supporting client operations in
nearly 100 countries.
Dallas-based Affiliated Computer Services Inc. has global
operations in Brazil, China, Dominican Republic, India,
Guatemala, Ireland, Philippines, Poland and Singapore.
As reported in the Troubled Company Reporter-Latin America on
Mar 9, 2007, Standard & Poor's Ratings Services raised its
corporate credit and senior secured ratings on Affiliated
Computer Services Inc. to 'BB' from 'B+' and removed the ratings
from CreditWatch positive (the initial CreditWatch placement
with negative implications was on Jan. 27, 2006). S&P says the
outlook is stable.
AFFILIATED COMPUTER: Shareholders File Suit to Prevent Buyout
-------------------------------------------------------------
Momentum Partners and Mark Levy filed separate shareholder
lawsuits in a Delaware corporate law tribunal against Affiliated
Computer Services Inc. in an attempt to block the attempted
buyout of the company by founder Darwin Deason and Cerberus
Capital Management LP, the Mercury News reports citing the
Associated Press.
As reported in the Troubled Company Reporter on March 21, 2007,
the company disclosed in a regulatory filing with the Securities
and Exchange Commission that it received a proposal from Deason-
Cerberus to acquire all of the outstanding shares of the company
for US$59.25 per share in cash, other than certain shares and
options held by Mr. Deason and members of the company's
management team.
The two lawsuits are framed as class actions and brought in the
name of those who allegedly stand to be shortchanged in the
buyout.
According to the report, both suits hinge on the fact that the
company has a record of turning down buyout offers. The
shareholders also alleged that the timing of the buyout offer
was in question since the pricing was done when the company's
stock hit a low point due to the company's involvement in a
stock options backdating scandal. Further, the deal is
defective with the buyers having too much voting power.
Mercury News further relates that according to court documents,
Mr. Deason and management control 42% of the voting power at the
company.
About Affiliated Computer
A FORTUNE 500 company, Affiliated Computer Services Inc.,
(NYSE: ACS) -- http://www.acs-inc.com/ -- provides business
process outsourcing and information technology solutions to
world-class commercial and government clients. The company has
more than 58,000 employees supporting client operations in
nearly 100 countries.
Dallas-based Affiliated Computer Services Inc. has global
operations in Brazil, China, Dominican Republic, India,
Guatemala, Ireland, Philippines, Poland and Singapore.
As reported in the Troubled Company Reporter-Latin America on
Mar 9, 2007, Standard & Poor's Ratings Services raised its
corporate credit and senior secured ratings on Affiliated
Computer Services Inc. to 'BB' from 'B+' and removed the ratings
from CreditWatch positive (the initial CreditWatch placement
with negative implications was on Jan. 27, 2006). S&P says the
outlook is stable.
===============
H O N D U R A S
===============
LEAR CORP: To Supply Seating Systems to Bombardier Recreational
---------------------------------------------------------------
Lear Corp. has been awarded a new contract to supply seating
systems to Bombardier Recreational Products Inc. for its Can-Am
line of all-terrain vehicles. The new business is for a term of
five years. Financial details of the agreement were not
disclosed.
In May this year, Lear will begin providing complete seating
assemblies with key characteristics of durability and comfort to
BRP's all-new ATV assembly plant in Juarez, Mexico. The seats
will be produced at Lear's existing San Lorenzo, Mexico seating
facility, which currently employs 2,500 workers. This facility
also manufactures seat trim covers for Ford Motor Company and
DaimlerChrysler Corporation's Chrysler unit.
"This new seating business signals progress in our strategic
initiative to further diversify Lear's customer and product
segment portfolio and explore non-traditional growth
opportunities that are synergistic with our core competencies
and existing infrastructure," Doug DelGrosso, Lear President and
Chief Operating Officer, said. "Lear and BRP are working
jointly to identify other opportunities and we are also
exploring possibilities to leverage our seating expertise within
other industries."
About the Company
Southfield, Mich.-based Lear Corp. (NYSE: LEA) --
http://www.lear.com/-- is a global supplier of automotive
interior systems and components. Lear provides complete seat
systems, electronic products, electrical distribution systems,
and other interior products.
Lear also operates in Argentina, Austria, Belgium, Brazil,
Canada, China, Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, India, Italy, Japan, Mexico, Morocco,
Netherlands, Philippines, Poland, Portugal, Romania, Russia,
Singapore, Slovakia, South Africa, South Korea, Spain, Sweden,
Thailand, Tunisia, Turkey, and Venezuela.
* * *
As reported on Feb. 13, Standard & Poor's Ratings Services
lowered its corporate credit rating on Southfield, Mich.-based
Lear Corp. to 'B' from 'B+ and placed its ratings on CreditWatch
with negative implications following Lear's announcement that it
had agreed to be acquired by Carl Icahn-controlled American Real
Estate Partners, L.P.
As reported on Feb. 8, Moody's Investors Service placed the
long-term ratings of Lear Corporation, corporate family rating
at B2, under review for possible downgrade. The company's
speculative grade liquidity rating of SGL-2 was affirmed.
* HONDURAS: Congress Plans To Discuss Modified Telecoms Rules
-------------------------------------------------------------
Honduras' congress has prepared to talk about modifying the
country's telecoms laws, which President Manuel Zelaya approved
the final changes, Business News Americas reports, citing a
statement posted on the presidential website.
The new law:
-- is designed to adapt the market to competition, in line
with free market principles laid out in a free trade
agreement with the US, which mandates an open telecoms
sector;
-- would allow new mobile operators into the market in
particular; and
-- provides establishment of a universal access fund for
social development.
Sources say that the delayed telecoms law resulted to political
controversy over the role of Hondutel in a reformed market.
Former Hondutel CEO disclosed about Hondutel's plan to launch a
mobile unit but it lacks proper funding, according to previous
local press reports. Honduras, Josa Otero, president of
consulting firm Signals Telecoms Consulting says, had
insufficient investment funds both for the Hondutel mobile
launch and for increased broadband deployments.
Mr. Otero informed BNamericas that Hondutel should be privatized
or looked for a strategic partner if the company proposes a
mobile launch. "Otherwise Hondutel will not be able to compete
with the existing players," said Mr. Otero.
Citing Mr. Otero, BNamericas relates that the company would
probably be the main service provider and investor, assuming it
can resolve the financing problem.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
CABLE & WIRELESS: Mobile Phone Sale in Jamaica Mobbed
-----------------------------------------------------
Cable & Wireless management called in extra security due to a
mad rush of buyers during its mobile phone sale at its unit in
Knutsford Boulevard in New Kingston, Jamaica, Radio Jamaica
reports.
The drastic reduction in the price for six types of handsets
contributed to the rush, Cable & Wireless Corporate
Communications Vice President Errol Miller told Radio Jamaica.
Order was restored after extra security was called in, Mr.
Miller told Radio Jamaica.
Headquartered in London, Cable & Wireless PLC --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
Its principal operations are in the United Kingdom, continental
Europe, Asia, the Caribbean, Panama and the Middle East.
* * *
Cable & Wireless Plc carries these ratings:
* Moody's Investors Service
-- Long-Term Corporate Family Rating: Ba3
-- Senior Unsecured Debt: B1
-- Short-Term: NP
-- Outlook: Negative
* Standard & Poor's
-- Long-Term Foreign Issuer Credit Rating: BB-
-- Long-Term Local Issuer Credit Rating: BB-
-- Short-Term Foreign Issuer Credit Rating: B
-- Short-Term Local Issuer Credit Rating: B
-- Outlook: Negative
DYOLL GROUP: Jamaica Stock Exchange Suspends Share Trading
----------------------------------------------------------
The Jamaica Stock Exchange suspended on March 22 the trading in
the shares of Dyoll Group, due to the firm's non-compliance of
the stock exchange's rules.
Jamaica Stock Exchange General Manager Marlene Street-Forrest
said, "It is in the best interest of shareholders and all
stakeholders in the stock market, for the Jamaica Stock
Exchange, to suspend trading in the company's shares at this
time. The Stock Exchange has had dialogue with Dyoll's Chairman
Damien King who has indicated that the company will be working
to ensure an early lifting of the suspension."
As reported Troubled Company Reporter-Latin America on
March 13, 2007, Dyoll Group was hoping to get US$150 million
from the sale of its major asset, Drax Hall, to strengthen its
balance sheet. Dyoll Group planned to "re-outfit" the firm as a
real estate development entity and property management company,
with plans to raise capital through private placement and debt
financing. The company had said in a filing with the Jamaica
Stock Exchange that it continued to experience severe cash flow
problems since Dec. 15, 2006. It was unable to meet its
financial obligations, which include:
-- payment of its statutory obligations,
-- payment of salaries, and
-- payment of its commercial debt.
However, plans to sell Drax Hall seemed to have been stalled. A
stockbroker said that a delisting was imminent and that the
company was on its way out.
Dyoll Group was also unable to finalize its unaudited financial
statements for the quarter ended Dec. 31, 2006, and to retain
the services of an auditor to start the audited statements for
2006 due to a lack of money.
Dyoll Group Ltd. is a Jamaica-based company that is principally
engaged in the insurance business. Jamaica's Financial Services
Commission has assumed temporary management of the Jamaica-based
Dyoll Insurance Co. Ltd. in March 7, 2005, in order to establish
the true position of the Company, address the matter of
settlement to its claimants and ensure that its policies will
remain in force after a high level of insurance claims were
leveled on the company as a result of the hurricane Ivan.
Kenneth Tomlinson was appointed temporary manager. Jamaica's
Supreme Court ordered for the distribution of a US$653 million
fund held by the FSC in accordance with the Insurance Act 2001,
section 59, which says that the prescribed deposit, on the
winding up of an insurance company, should be applied first to
settle the claims of local policyholders.
DYOLL INSURANCE: Compensation Delay Upsets Coffee Farmers
---------------------------------------------------------
Coffee farmers are upset because they have not received the
agreed compensation from Dyoll Insurance, Radio Jamaica reports.
As reported in the Troubled Company Reporter-Latin America on
March 12, 2007, Senator Norman Grant, the Jamaica Agricultural
Society head, said that Dyoll Insurance Co.'s liquidators
Kenneth Krys and John Lee at RSM Cayman have agreed to pay
coffee farmers US$158.4 million. The farmers would still have
to wait before they receive the payment because the trustees of
the insurance scheme would still work out a method of payment.
The liquidators and officials of the Jamaica Agricultural
Society, which represents coffee farmers, were able to reach an
out-of-court agreement on compensation that the farmers demand
for the damage they suffered during the Hurricane Ivan in 2004.
Over 2,000 farmers would get paid. Farmers had initially
received US$200,000. The trustees would determine the formula
for payment and the payout date for the entitlement.
The farmers told Radio Jamaica that they don't know when the
Coffee Board will start to disburse cheques.
RJR News relates that a coffee farmer blamed the delays on
disagreements at the level of the Coffee Board.
Senator Anthony Johnson, the opposition spokesperson on
agriculture, told Radio Jamaica that the government has to
explain the mechanisms used to determine how much each coffee
farmer will be receiving as compensation.
Senator Johnson commented to Radio Jamaica, "The farmers don't
know anything now, the only thing they now is that when they
show up at the factory they are given so much as the first
payment and later on they get a second payment but they don't
really know exactly what basis it is being done. The entire
system of governance within the industry has broken down. And
this is not good because no matter what profits you make if you
are not sure of what your future is or even what your present
status is, you find it hard to keep on investing and Jamaica
need to have farmers continuing to invest in the crop."
The government must also accelerate the implementation of
another insurance scheme for coffee farmers, Radio Jamaica
notes, citing Senator Johnson.
"At the moment we do not have any insurance in place. All the
coffee farmers and the coffee farmers are subjected to the
hazards of nature, not only hurricanes, and it is important for
the farmers and the nation that they be placed in a position
that whenever these events occur the farmer has something to
rely on he can get an earning even when all the leaves are blown
off. And it is also a means of insuring that all the other
banks and financial institutions will support the crop because
they know there is some sort of fall back position when you have
hazards of nature," Senator Johnson explained to Radio Jamaica.
Dyoll Group Ltd. is a Jamaica-based company that is principally
engaged in the insurance business. Jamaica's Financial Services
Commission has assumed temporary management of the Jamaica-based
Dyoll Insurance Co. Ltd. in Mar. 7, 2005, in order to establish
the true position of the Company, address the matter of
settlement to its claimants and ensure that its policies will
remain in force after a high level of insurance claims were
leveled on the company as a result of the hurricane Ivan.
Kenneth Tomlinson was appointed temporary manager. Jamaica's
Supreme Court ordered for the distribution of a US$653 million
fund held by the FSC in accordance with the Insurance Act 2001,
section 59, which says that the prescribed deposit, on the
winding up of an insurance company, should be applied first to
settle the claims of local policyholders.
* JAMAICA: Tax Refunds to Pension Funds Deferred
------------------------------------------------
Jamaica's Finance Ministry has instructed Vinnette Keene, the
director general of tax administration, to suspend refunding the
payment of withholding taxes on investments to pension funds,
The Jamaica Gleaner reports.
According to The Gleaner, the ministry's "fiscal numbers" are
already off-target by US$7 billion.
A source told The Gleaner, "We have had problems recently, for
the past two, three months. When we call we are told that they
got directives from the Ministry of Finance. I suspect that the
Ministry of Finance is trying to curtail expenses for the rest
of this fiscal year to ensure that the fiscal numbers don't come
out looking bad, but no one knows when they will start sending
the refund cheques."
NCB Insurance Company Managing Director Ingrid Chambers
confirmed to The Gleaner that there has been a cessation of
refund cheques since October or November 2006.
"We were getting the refunds and we were much happier but since
then they have stopped. We do constant follow-ups, but our
approach is not antagonistic," Ms. Chambers commented to The
Gleaner.
The Gleaner underscores that the Finance Ministry owes about
US$794 million to NCB Insurance. It is estimated that
government has about US$2 billion in withholding taxes, or 2% of
the value of pension funds, under management outstanding for the
industry.
Pension Fund Association of Jamaica Chairperson Allan Lewis told
The Gleaner, "We are just about to write to the minister because
we haven't seen any consistent improvement in the matter since
we first brought this to the attention of the minister two years
ago."
According to The Gleaner, Pension Fund has actively protested
against Finance Minister Dr. Omar Davies, expressing its
dissatisfaction with government's treatment of the refunds.
Currently, pension fund managers are required to deduct
withholding tax from interest earned on taxable instruments, a
policy Dr. Davies introduced in 1999. Though a "fast-track
window" was set up to facilitate refunds within 45 days, this
hasn't occurred and in some cases refunds are several years
behind.
The Gleaner underscores that Pension Fund has complained in the
past that the inability of the pension funds to invest the
amount being withheld on which the government doesn't pay
interest affects the investment income of the funds, reducing
potential benefits.
"The main issue is that it impacts on returns to members. It
also has an impact on the administration because of the time and
effort that has to be spent following up with the Ministry of
Finance and it is just a time-consuming matter for something
that shouldn't be an issue," Mr. Lewis told The Gleaner.
* * *
As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses. For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion. The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.
===========
M E X I C O
===========
AMERICAN AIRLINES: S&P Assigns CCC+ Rating on US$357 Mil. Bonds
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'CCC+' rating to
American Airlines Inc.'s (B/Stable/--) US$357 million Alliance
Airport Authority special facility revenue refunding bonds,
series 2007, due Dec. 1, 2029. The bonds are guaranteed by
American's parent, AMR Corp. (B/Stable/B-2), and are secured by
payments made by American to the airport authority. Proceeds
are being used to refund the outstanding revenue bonds, series
1990 (rated 'CCC+'), whose rating is withdrawn.
"The Alliance Airport revenue bonds are the equivalent of
unsecured debt of American and parent AMR Corp., and are
accordingly rated 'CCC+'," said Standard & Poor's credit analyst
Philip Baggaley. "Unsecured debt of American and AMR is rated
two notches lower than the 'B' corporate credit ratings on the
companies, due to the large amount of secured debt and leases
that effectively rank senior to unsecured obligations."
The corporate credit ratings on AMR and American are based on
AMR's consolidated credit quality and reflect participation in
the competitive, cyclical, and capital-intensive airline
industry; erosion of financial strength by substantial losses
during 2001-2005; and a heavy debt and pension burden.
Satisfactory liquidity, with US$4.7 billion of unrestricted cash
and short-term investments at Dec. 31, 2006, and an improving
earnings trend, are positives. In 2006, AMR earned US$231
million, compared with a US$857 million loss (a loss of US$677
million before special items) in 2005, as stronger revenue
generation and ongoing cost reductions outweighed higher fuel
prices. Earnings and cash flow are expected to improve further
in 2007, but not at the sharp rate achieved in 2006.
A healthy cash balance and solid internal cash generation
support credit quality, despite substantial debt maturities.
Further gains in earnings and cash flow, if they appear
sustainable, could prompt an outlook revision to positive, given
the company's commitment to balance sheet improvement. A
material deterioration in airline industry conditions, most
likely due to higher fuel prices not offset by higher fares,
could prompt a revision of the outlook to negative.
American Airlines, Inc. (NYSE:AMR) -- http://www.AA.com/--
American Eagle, and the AmericanConnection regional airlines
serve more than 250 cities in over 40 countries with more than
3,800 daily flights. The combined network fleet numbers more
than 1,000 aircraft. American Airlines, Inc. and American Eagle
are subsidiaries of AMR Corporation. It has Latin operations in
Mexico, Dominican Republic, Puerto Rico, Argentina, Bolivia,
Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Venezuela,
Uruguay, Belize, Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua and Panama.
FORD MOTOR: S&P Holds Negative Outlook on Liquidity Concern
-----------------------------------------------------------
Ford Motor Co. has made progress in some aspects of the
company's multiyear turnaround plans for its North American
operations, but the automaker's use of cash remains a serious
concern, says Standard & Poor's Ratings Services in a special
report.
In the article titled "Are GM And Ford Making The Right Turns In
Their Turnaround Plans?" Standard & Poor's credit analyst Robert
Schulz notes, "There have been some successes, most notably on
headcount reductions and in bolstering liquidity. And we view
the current backdrop for their turnaround attempts as
supportive. Economic conditions are broadly favorable, and the
capital markets have been forthcoming with credit. But this
initial progress is no guarantee of the sustained success that
is necessary, and we are maintaining our negative outlooks
assigned to both companies."
The report comments that the heart of the problem for Ford and
GM remains a combination of North American issues:
-- revenue shortfalls stemming from an adverse shift
in product mix,
-- high legacy costs relative to current market share,
and
-- excess manufacturing capacity.
The automakers' operations outside the US, including GM's
significant share in growing markets such as China, do not begin
to offset the poor performance in North America.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 284,000
people around the world. It has manufacturing operations in
33 countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries. GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Company
(NYSE: F) -- http://www.ford.com/-- manufactures and
distributes automobiles in 200 markets across six continents.
With more than 324,000 employees worldwide, including Mexico,
the company's core and affiliated automotive brands include
Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury
and Volvo. Its automotive-related services include Ford Motor
Credit Company and The Hertz Corp.
FORD MOTOR: S&P Comments on Asset Backed Securities' Protections
----------------------------------------------------------------
Despite the continuing adverse rating actions on Ford Motor's
corporate debt, the many legal, structural and credit
protections that are inherently part of ABS deals have so far
kept Ford Motor Credit Co.'s public ABS free of associated
downgrades, according to a new Standard & Poor's Ratings
Services report on General Motors Corp. and Ford Motor Co.
Nevertheless, General Motors' and Ford Motor's auto Asset Backed
Securities or ABS ratings aren't completely insulated from their
corporate downgrades, and that raises questions about which auto
asset types are most vulnerable to a manufacturer bankruptcy and
whether the transactions are adequately protected.
These issues are particularly relevant, considering the
heightened risks both GM and Ford now face. They have also led
to major changes in rental fleet ABS transactions, as most
ratings on these deals were previously tied to those of the
manufacturers, owing to buyback agreements with the automakers.
GMAC has also modified its auto lease transactions to address
the risk that the Pension Benefit Guaranty Corp. or PBGC could
attach a lien on the unencumbered assets of its lease
securitizations if it terminates an underfunded pension plan or
fails to make the required minimum payments. Additionally, GMAC
changed one of the trigger events in its floor plan
securitizations, resulting in significantly higher levels of
credit enhancement.
Overall, the extent to which manufacturer bankruptcy risk
affects Ford Credit's and GMAC's auto ABS -- and the structural
safeguards, including new changes, that protect against this
risk -- is a key consideration for Standard & Poor's when
assigning ratings to auto ABS. Standard & Poor's believes
manufacturers' dealer floor plan loans are the most vulnerable,
followed by auto leases and then retail auto loans. The wider
bond spreads for floor plan securitizations compared with those
for retail auto loan issuances substantiate this view.
About GMAC LLC
GMAC LLC, headquartered in Detroit, Michigan, provides retail
and wholesale auto financing, primarily in support of General
Motors' auto operations, and is one of the world's largest non-
bank financial institutions. GMAC LLC reported earnings of
US$2.4 billion in 2005. Its Latin American operations are
located in Argentina, Brazil, Chile, Colombia, Mexico and
Venezuela.
About Ford Motor Credit Co.
Ford Motor Credit Co. -- http://www.fordcredit.com/-- is an
automotive finance company, which has supported the sale of Ford
products since 1959. With about 14,000 employees, Ford Motor
Credit operates in 36 countries including Brazil and Mexico in
Latin America. Ford Motor Credit is an indirect wholly owned
subsidiary of Ford Motor Company. It provides automotive
financing for Ford, Lincoln, Mercury, Aston Martin, Jaguar, Land
Rover, Mazda and Volvo dealers and customers.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Company
(NYSE: F) -- http://www.ford.com/-- manufactures and
distributes automobiles in 200 markets across six continents.
With more than 324,000 employees worldwide, including Mexico,
the company's core and affiliated automotive brands include
Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury
and Volvo. Its automotive-related services include Ford Motor
Credit Company and The Hertz Corp.
GENERAL MOTORS: S&P Holds Negative Outlook on Liquidity Issues
--------------------------------------------------------------
General Motors Corp. has made progress in some aspects of the
company's multiyear turnaround plans for its North American
operations, but the automaker's use of cash remains a serious
concern, says Standard & Poor's Ratings Services in a special
report.
In the article titled "Are GM And Ford Making The Right Turns In
Their Turnaround Plans?" Standard & Poor's credit analyst Robert
Schulz notes, "There have been some successes, most notably on
headcount reductions and in bolstering liquidity. And we view
the current backdrop for their turnaround attempts as
supportive. Economic conditions are broadly favorable, and the
capital markets have been forthcoming with credit. But this
initial progress is no guarantee of the sustained success that
is necessary, and we are maintaining our negative outlooks
assigned to both companies."
The report comments that the heart of the problem for Ford and
GM remains a combination of North American issues:
-- revenue shortfalls stemming from an adverse shift
in product mix,
-- high legacy costs relative to current market share,
and
-- excess manufacturing capacity.
The automakers' operations outside the US, including GM's
significant share in growing markets such as China, do not begin
to offset the poor performance in North America.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents. With more than 280,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury, and Volvo. Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 284,000
people around the world. It has manufacturing operations in
33 countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries. GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.
GENERAL MOTORS: S&P Comments on Asset Backed Securities
-------------------------------------------------------
Despite the continuing adverse rating actions on General Motors
Corp.'s corporate debt, the many legal, structural and credit
protections that are inherently part of ABS deals have so far
kept GMAC LLC's public ABS free of associated downgrades,
according to a new Standard & Poor's Ratings Services report on
General Motors Corp. and Ford Motor Co.
Nevertheless, General Motors' and Ford Motor's auto Asset Backed
Securities or ABS ratings aren't completely insulated from their
corporate downgrades, and that raises questions about which auto
asset types are most vulnerable to a manufacturer bankruptcy and
whether the transactions are adequately protected.
These issues are particularly relevant, considering the
heightened risks both GM and Ford now face. They have also led
to major changes in rental fleet ABS transactions, as most
ratings on these deals were previously tied to those of the
manufacturers, owing to buyback agreements with the automakers.
GMAC has also modified its auto lease transactions to address
the risk that the Pension Benefit Guaranty Corp. or PBGC could
attach a lien on the unencumbered assets of its lease
securitizations if it terminates an underfunded pension plan or
fails to make the required minimum payments. Additionally, GMAC
changed one of the trigger events in its floorplan
securitizations, resulting in significantly higher levels of
credit enhancement.
Overall, the extent to which manufacturer bankruptcy risk
affects Ford Credit's and GMAC's auto ABS-and the structural
safeguards, including new changes, that protect against this
risk-is a key consideration for Standard & Poor's when assigning
ratings to auto ABS. Standard & Poor's believes manufacturers'
dealer floorplan loans are the most vulnerable, followed by auto
leases and then retail auto loans. The wider bond spreads for
floorplan securitizations compared with those for retail auto
loan issuances substantiate this view.
About Ford Motor Credit Co.
Ford Motor Credit Co. -- http://www.fordcredit.com/-- is an
automotive finance company, which has supported the sale of Ford
products since 1959. With about 14,000 employees, Ford Motor
Credit operates in 36 countries including Brazil and Mexico in
Latin America. Ford Motor Credit is an indirect wholly owned
subsidiary of Ford Motor Company. It provides automotive
financing for Ford, Lincoln, Mercury, Aston Martin, Jaguar, Land
Rover, Mazda and Volvo dealers and customers.
About GMAC LLC
GMAC LLC, headquartered in Detroit, Michigan, provides retail
and wholesale auto financing, primarily in support of General
Motors' auto operations, and is one of the world's largest non-
bank financial institutions. GMAC LLC reported earnings of
US$2.4 billion in 2005. Its Latin American operations are
located in Argentina, Brazil, Chile, Colombia, Mexico and
Venezuela.
About General Motors Corp.
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the
world's largest automaker and has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 284,000
people around the world. It has manufacturing operations in
33 countries including Belgium, France, Germany, India, Mexico,
and its vehicles are sold in 200 countries. GM sells cars and
trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, and
Vauxhall.
HOME PRODUCTS: Completes Restructuring & Recapitalization
---------------------------------------------------------
Home Products International Inc. disclosed Wednesday that the
company and its U.S. subsidiary, Home Products International
- North America, have emerged from chapter 11, and the company's
Second Amended Chapter 11 Plan of Reorganization has become
effective.
"The emergence from chapter 11 represents the final milestone in
our reorganization process and a new day for the Company,"
stated George Hamilton, President and CEO of HPI," Michael
Fineman of Third Avenue Management LLC and Chairman of the Board
of HPI stated.
"We were able to complete this challenging process in an
extraordinarily short time period due to the cooperation and
participation of our customers, suppliers, bondholders,
shareholders and employees, all of whom helped reposition the
Company for long-term success.
"The Company has emerged with a strong, revitalized balance
sheet and is well positioned for continued future growth in our
core markets, and to continue to provide the best products in
the Housewares Industry with outstanding customer service."
"We are proud of the fact that we were able to emerge so rapidly
and that our trade creditors were unaffected by the process,"
Mr. Fineman added.
Under the terms of the Plan, the company's 9.625% Senior
Subordinated Notes have been converted into approximately 95% of
the company's post-bankruptcy equity, subject to dilution, and
the company's existing common stock has been extinguished.
Certain holders of such common stock have received the remaining
approximately 5% of the company's post-bankruptcy equity,
subject to dilution. All trade suppliers and other unsecured
creditors are unimpaired by the Plan.
As part of its emergence from chapter 11, the company has
obtained US$75 million in financing, which includes an exit
financing facility of US$50 million from Bank of America, the
same lender who provided the company with its prepetition
financing and debtor in possession financing, and the issuance
by the company of new convertible notes in the aggregate
principal amount of
US$25 million.
In connection with the Plan, the company's prepetition
bondholders and shareholders have rights to purchase the new
convertible notes, with such issuance being backstopped by
certain affiliates of Third Avenue Management LLC, the
reorganized company's largest equity holder, and Storage
Acquisition Company, LLC, the former majority equity holder of
the company. A portion of the notes were issued upon emergence
with the remainder to be issued at the end of the month. The
proceeds of such financings will be used to fund distributions
under the Plan and to provide ongoing working capital for growth
plans.
Also effective with the company's emergence from chapter 11,
HPI's previous Board of Directors was succeeded by a new Board
of Directors selected under the Plan. The new board members
joining CEO George Hamilton are:
* Thomas Ferguson, former President and COO of Newell
Rubbermaid, Inc.;
* Gene Moriarty, President and CEO of Brown Jordan
International, Inc.;
* Lewis (Mick) Solimene, Managing Director, Giuliani Capital
Advisors;
* Philip Tinkler with Equity Group Investments, LLC;
* Michael Fineman; and
* Keith Bloomfield of Third Avenue Management LLC.
A full-text copy of Home Product's Second Amended Disclosure
Statement is available for free at:
http://ResearchArchives.com/t/s?1952
A full-text copy of Home Product's Second Amended Plan of
Reorganization is available for free at:
http://ResearchArchives.com/t/s?1953
About Home Products
Headquartered in Chicago, Illinois, Home Products International,
Inc. -- http://www.hpii.com/-- designs, manufactures, and
markets ironing boards, covers, and other high-quality, non-
electric consumer houseware products. The Debtor's product
lines include laundry management products, bath and shower
organizers, hooks, hangers, home and closet organizers, and food
storage containers. Their products are sold under the HOMZ
brand name, and are distributed to hotels, discounters, and
other retailers such as Wal-Mart, Kmart, Sears, Home Depot, and
Lowe's.
The company and its affiliate, Home Products International-North
America, Inc., filed for chapter 11 protection on Dec. 20, 2006
(Bankr. D. Del. Case Nos. 06-11457 and 06-11458). Ronald
Barliant, Esq., and Kathryn A. Pamenter, Esq., at Goldberg Kohn,
Bell, Black, Rosenbloom & Moritz, Ltd., and Mark D. Collins,
Esq., and Michael J. Merchant, Esq., at Richards, Layton &
Finger P.A. represent the Debtors. When the Debtors filed for
protection from their creditors, they listed estimated assets
between US$1 million and US$100 million and debts of more than
US$100 million. The Debtors' exclusive period to file a chapter
11 plan of reorganization expires on April 18, 2007.
MERIDIAN AUTOMOTIVE: Ct. Sets Beneficiary Record Date to Dec. 29
----------------------------------------------------------------
The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for
the District of Delaware clarifies that pursuant to the terms of
Reorganized Meridian Automotive Systems Inc. and its debtor-
affiliates' Plan of Reorganization and the MAS Litigation Trust
Agreement:
(a) the fixed record date for identifying Prepetition First
Lien Claim Beneficiaries and Prepetition Second Lien
Claim Beneficiaries is Dec. 29, 2006, the Effective Date
of the Plan; and
(b) the fixed record date for identifying Prepetition General
Unsecured Claim Beneficiaries is Dec. 6, 2006, the
Distribution Record Date, for those holders of
Prepetition General Unsecured Claims whose claims are
allowed as of Dec. 6, 2006.
Pursuant to terms of the Plan and the Trust Agreement, Ocean
Ridge Capital Advisors, LLC, the litigation trustee
appointed pursuant to the Plan, is authorized to rely on the
Claims Reports provided to it by the MAS Companies for the
addresses of Prepetition General Unsecured Claim Beneficiaries
for the dollar amount of the claim of each Prepetition General
Unsecured Claim, and for information concerning Prepetition
General Unsecured Claim that are disputed as of the Distribution
Record Date and are subsequently allowed in whole or in part,
the Court holds.
Judge Walrath also elaborates that the Litigation Trustee is
authorized to recognize, pursuant to the Plan and the Trust
Agreement, as Trust Beneficiaries and make distributions to:
(i) holders of Prepetition First Lien Claims and Prepetition
Second Lien Claims as of Dec. 29, 2006;
(ii) holders of allowed Prepetition General Unsecured Claims
as of Dec. 6, 2006; and
(iii) holders of Prepetition General Unsecured Claims that are
allowed after Dec. 6, 2006, to the extent the
allowance is reflected in the Claims Reports provided to
the Litigation Trustee, and those distributions are
consistent with the Plan and the Trust Agreement.
Headquartered in Dearborn, Mich., Meridian Automotive Systems
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck
manufacturers. Meridian operates 22 plants in the United
States, Canada and Mexico, supplying Original Equipment
Manufacturers and major Tier One parts suppliers. The Company
and its debtor-affiliates filed for chapter 11 protection on
April 26, 2005 (Bankr. D. Del. Case Nos. 05-11168 through 05-
11176). James F. Conlan, Esq., Larry J. Nyhan, Esq., Paul S.
Caruso, Esq., and Bojan Guzina, Esq., at Sidley Austin Brown &
Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq.,
Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young
Conaway Stargatt & Taylor, LLP, represent the Debtors in their
restructuring efforts. Eric E. Sagerman, Esq., at Winston &
Strawn LLP represents the Official Committee of Unsecured
Creditors. The Committee also hired Ian Connor Bifferato, Esq.,
at Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an
adversary proceeding against Meridian's First Lien Lenders and
Second Lien Lenders to invalidate their liens. When the Debtors
filed for protection from their creditors, they listed US$530
million in total assets and approximately US$815 million in
total liabilities.
Judge Walrath has confirmed the Revised Fourth Amended
Reorganization Plan of Meridian. That plan became effective on
Dec. 29, 2006. (Meridian Bankruptcy News, Issue No. 51;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
MERIDIAN AUTOMOTIVE: Wants Until June 30 to Remove Civil Actions
----------------------------------------------------------------
Reorganized Meridian Automotive Systems Inc. and its debtor-
affiliates ask the U.S. Bankruptcy Court for the District of
Delaware to further extend the period within which they must
file notices of removal of civil actions to and including
June 30, 2007.
Although the Reorganized Debtors have recently exited their
bankruptcy proceedings, they continue to attend to the myriad
issues that have followed the confirmation of their Plan of
Reorganization and the administration of their post-Effective
Date estates, Robert S. Brady, Esq., at Young Conaway Stargatt &
Taylor, LLP, in Wilmington, Delaware, relates. The Reorganized
Debtors have not had a sufficient opportunity to fully consider
the status of all prepetition actions.
The extension of the Removal Period will provide the Reorganized
Debtors with more time to make fully informed decisions
concerning removal of each pending prepetition civil action, Mr.
Brady notes.
The rights of other parties to any of those actions will not be
prejudiced by the extension because any party to a prepetition
action that is removed may seek to have it remanded to the state
court pursuant to Section 1452 of the Judiciary and Judicial
Procedures Code, Mr. Brady adds.
Pursuant to Del. Bankr. L.R. 9006-2, the filing of the
Reorganized Debtors' request prior to the expiration of the
current deadline serves to automatically extend the current
deadline without the need for entry of a bridge order until the
Court rules on the request.
The Court will convene a hearing on April 13, 2007, to consider
the Debtors' request.
Headquartered in Dearborn, Mich., Meridian Automotive Systems
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck
manufacturers. Meridian operates 22 plants in the United
States, Canada and Mexico, supplying Original Equipment
Manufacturers and major Tier One parts suppliers. The Company
and its debtor-affiliates filed for chapter 11 protection on
April 26, 2005 (Bankr. D. Del. Case Nos. 05-11168 through
05-11176). James F. Conlan, Esq., Larry J. Nyhan, Esq., Paul S.
Caruso, Esq., and Bojan Guzina, Esq., at Sidley Austin Brown &
Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq.,
Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young
Conaway Stargatt & Taylor, LLP, represent the Debtors in their
restructuring efforts. Eric E. Sagerman, Esq., at Winston &
Strawn LLP represents the Official Committee of Unsecured
Creditors. The Committee also hired Ian Connor Bifferato, Esq.,
at Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an
adversary proceeding against Meridian's First Lien Lenders and
Second Lien Lenders to invalidate their liens. When the Debtors
filed for protection from their creditors, they listed US$530
million in total assets and approximately US$815 million in
total liabilities.
Judge Walrath has confirmed the Revised Fourth Amended
Reorganization Plan of Meridian. That plan became effective on
Dec. 29, 2006. (Meridian Bankruptcy News, Issue No. 51;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
NORTEL NETWORKS: Commences US$1-Bil. Senior Conv. Notes Offering
----------------------------------------------------------------
Nortel Networks Corporation has commenced a proposed offering of
an aggregate of US$1 billion in principal amount of senior
unsecured convertible notes in two series (currently expected to
be in equal principal amounts), one maturing in 2012 and the
other in 2014, to qualified institutional buyers pursuant to
Rule 144A under the U.S. Securities Act of 1933, as amended, and
in Canada to qualified institutional buyers that are also
accredited investors pursuant to applicable Canadian private
placement exemptions, subject to market and other conditions.
The company would grant the initial purchasers over-allotment
options to purchase up to an aggregate US$150 million of
additional Notes. The Notes would be convertible into common
shares of the Company and would be fully and unconditionally
guaranteed by the company's principal direct operating
subsidiary, Nortel Networks Limited, and initially fully and
unconditionally guaranteed by the Company's indirect subsidiary,
Nortel Networks Inc. The Notes will be senior unsecured
obligations and will rank pari passu with all other senior
obligations of the Company.
The company expects that the net proceeds from the sale of the
Notes would be approximately US$980 million (US$1.125 billion if
the initial purchasers exercise in full their over-allotment
options) and plans to use these net proceeds to redeem on or
about Sept. 1, 2007, at par a corresponding amount of its US$1.8
billion outstanding principal amount of 4.25% Convertible Notes
due 2008. Pending this redemption, the company plans to invest
the net proceeds in money market instruments.
The Notes and related guarantees and any common shares issuable
upon conversion of the Notes have not been registered under the
Securities Act or the securities laws of any other jurisdiction
and may not be offered or sold unless so registered except
pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act and
applicable securities laws in other jurisdictions. This press
release shall not constitute an offer to sell or the
solicitation of an offer to buy the Notes and related guarantees
or common shares issuable upon conversion of the Notes nor shall
there be any sale of the Notes and related guarantees or common
shares issuable upon conversion of the Notes in any jurisdiction
in which such offer, solicitation or sale is unlawful. This
press release is being issued pursuant to and in accordance with
Rule 135c under the Securities Act.
Headquartered in Ontario, Canada, Nortel Networks Limited
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over Internet
provider, multimedia services and applications, and wireless
broadband. Nortel Networks does business in more than 150
countries, including Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 7, 2007, Dominion Bond Rating Service notes that Nortel
Networks Corporation accounting restatements will not have an
immediate impact on its B (low) long-term ratings.
As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service upgraded its B3 Corporate Family
Rating for Nortel Networks Corp. to B2.
PLASTICON INT: Shareholders Approve Election of Board Directors
---------------------------------------------------------------
Plasticon International Inc.'s Board of Directors has been
approved as a result of the shareholders meeting. The
shareholders voted to ratify the appointment of Mendoza, Berger,
and Co. of Irvine, California as the independent registered
public accounting firm for the company for the years 2006 and
2007.
The slate of Directors nominated for the Board of Directors
includes:
-- Jim Turek as Chairman of the Board, as well as CEO and
President of Plasticon International,
-- C. Edwin Rude, Jr., who has over 34 years practicing as
an attorney under Florida, U.S. Court of Appeals, Eleventh
Circuit; U.S. District Court, Northern and Middle
districts of Florida and the U.S. Supreme Court,
-- George Butler, who has over 29 years of experience as a
commercial banker in Barnesville, Georgia, and
-- Michael Rodriquez, who has more than 20 years of
experience supervising accounts, budgeting, contracting,
estimating, purchasing, and invoicing in the construction
industry.
"I am very pleased with the results from the shareholder
meeting. I was able to speak to individual shareholders and
answer any questions that they had. We are compliant in our
financial statements and look forward to pursuing an up listing
to the American Stock Exchange," stated Mr. Turek.
Plasticon International Inc. (PINKSHEETS: PLNI) --
http://www.plasticonintl.com/-- designs, produces, and
distributes high-quality concrete accessories (rebar supports),
informational and directional signage, and plastic lumber, which
are all produced from recycled and recyclable plastics. The
Company's line of plastic concrete accessories has been approved
or accepted in all 50 states and several foreign countries
including Poland, Israel, Canada, Mexico, and Egypt.
As of June 30, 2006, the company had stockholders' equity
deficit of US$214,233 compared to US$6,840,176 of deficit in
Dec. 31, 2005.
===========
P A N A M A
===========
* PANAMA: Offers US$450 Million Reopened Global Bond Due in 2036
----------------------------------------------------------------
A market source told Reuters that Panama offered US$450 million
of a reopened global bond, which matures in 2036.
The source explained to Reuters that Panama originally offered
an additional US$300 million of the bond. However, it increased
the deal later as demand toppedUS$1 billion.
The new bond carries a coupon of 6.7%. It is expected to price
around 103.375, Reuters states, citing the source.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2006, Fitch Ratings affirmed the Republic of Panama's
long-term foreign currency Issuer Default Rating of 'BB+'.
Fitch also affirmed the sovereign's long-term local currency IDR
of 'BB+', the short-term foreign currency IDR of 'B' and the
country ceiling of 'BBB+'. Fitch said the rating outlook is
stable.
=====================
P U E R T O R I C O
=====================
ALLIED WASTE: Fitch Puts BB/RR1 Rating on New Credit Facilities
---------------------------------------------------------------
Fitch Ratings has assigned a rating of 'BB/RR1' to the new
senior secured credit facilities of Allied Waste North America,
Inc. or AWNA, a wholly owned subsidiary of Allied Waste
Industries, Inc. or AW, that are currently in syndication. The
senior secured credit facilities total US$3.17 billion and are
comprised of:
-- US$1.105 billion term loan B;
-- US$1.575 billion revolving credit facility; and
-- US$490 million institutional letter of credit facility.
The revolving credit facility matures in 2012, while both the
term loan B and the institutional letter of credit facility
mature in 2014. The Issuer Default Rating for AWNA is 'B' and
the Rating Outlook is Stable.
Proceeds from the new senior secured credit facilities will be
used to replace AWNA's existing senior secured credit
facilities. The new credit facilities will be guaranteed by AW
and substantially all of AWNA's subsidiaries, including
Browning-Ferris Industries LLC or BFI. The new credit
facilities will be secured by 100% of the equity of AWNA and its
domestic restricted subsidiaries (including BFI), 65% of the
capital stock AWNA's first-tier foreign subsidiaries and
substantially all of the assets, excluding vehicles and
landfills, of AWNA and its domestic restricted subsidiaries. By
replacing its existing senior secured credit facilities, AWNA
will reduce its annual interest expense and extend its maturity
profile by two years.
The ratings for AW and its subsidiaries reflect the waste
company's solid market position, relatively low industry demand
volatility and the value of the company's landfill assets,
weighed against a relatively high debt load. Over the course of
2006, AW gained traction on its pricing initiatives, and, as a
result, consolidated internal revenue grew by 6.7% on volume
growth of only 0.8%. The consolidated full-year operating
margin, excluding losses from divestitures and asset
impairments, grew by 40 basis points to 16.4% from 16.0%, and
free cash flow (defined as operating cash flow less capital
expenditures and common dividends) rose to US$235 million from
US$2.2 million in 2005. Although the company has taken a firmer
stance on pricing, its customer retention rate has remained
above 90%.
AW ended 2006 with a cash and equivalents balance of US$94
million. Liquidity is enhanced by access to a US$1.58 billion
revolving credit facility that can be used for cash borrowings
and to support letters of credit. As of Dec. 31, 2006, US$1.18
billion was available under the revolving credit facility after
accounting for outstanding letters of credit. Balance sheet
debt declined by US$181 million in 2006 to US$6.91 billion,
contributing to an improvement in leverage, with total
debt/EBITDA of 4.5x at year-end 2006 versus 4.8x at year-end
2005. In 2007, Fitch expects leverage to decline further, as
the company plans to reduce debt by US$260 million -- US$285
million during the year.
Concerns include continued high leverage, volatility in fuel
prices and high capital expenditures needs. Also of concern is
the potential for future U.S. Internal Revenue Service or IRS
payments related to the capital loss recorded by BFI prior to
its acquisition by AW in 1999, which could pressure free cash
flow and/or force an increase in debt.
The recovery ratings and notching in the debt structure of AW
and AWNA reflect Fitch's recovery expectations under a scenario
in which distressed enterprise value is allocated to the various
debt classes. The recovery rating of 'RR1' for the new senior
secured credit facilities reflects Fitch's expectation of
outstanding recovery prospects in a distressed scenario, with
expected recoveries of 90% to 100%.
Allied Waste North America, Inc., a wholly owned operating
subsidiary of Allied Waste Industries, Inc., is based in
Phoenix, Arizona. Allied Waste is a vertically integrated, non-
hazardous solid waste management company providing collection,
transfer, and recycling and disposal services for residential,
commercial and industrial customers. As of Dec. 31, 2006, the
company operated a network of 304 collection companies, 161
transfer stations, 168 active landfills and 57 recycling
facilities in 37 states and Puerto Rico. The company had
revenues of approximately USUS$6.0 billion in fiscal 2006.
CLEAN HARBORS: Earns US$11.5 Million in Quarter Ended Dec. 31
-------------------------------------------------------------
Clean Harbors Inc. reported that its net income rose to
US$11.5 million for the fourth quarter ended Dec. 31, 2006, from
US$7.9 million for the same period of 2005.
Clean Harbors increased revenues by approximately 20 percent to
US$231.8 million in the fourth quarter of 2006 from US$193.7
million in the fourth quarter of 2005. Income from operations
grew to US$19.8 million in the fourth quarter of 2006, from
US$14.3 million for the fourth quarter of 2005.
"The fourth quarter of 2006 was a strong conclusion to the best
year in Clean Harbors' history," said Alan S. McKim, chairman
and chief executive officer. "With solid demand across our
business lines and good weather, we delivered quarterly revenue
in excess of US$200 million for the second consecutive quarter,
exclusive of any revenue attributed to Teris, which we acquired
in August."
"Organic growth in the fourth quarter was primarily driven by
our Technical Services business, which continued to perform
large facilities projects," McKim said. "Incineration volumes
were strong, and we achieved utilization of 91 percent, despite
the addition of significant capacity earlier in the year.
Reflecting increased activity in both the United States and
Canada, total landfill volumes were nearly 30 percent higher
than in the same period in 2005."
"In Site Services, we continued our steady geographic expansion
with the opening of another branch in southern Florida," said
McKim. "We did not have any major emergency response events in
the quarter, unlike the fourth quarter of 2005 when we posted
more than US$17 million of higher margin revenue related to post
hurricane clean-up projects. Consequently, our Site Services
margins were down, even though we generated a steady stream of
small scale projects that produced approximately US$7 million in
revenue in the quarter."
Revenues for the year ended Dec. 31, 2006, increased nearly 17
percent to US$829.8 million, compared with US$711.2 million for
full-year 2005. Income from operations for full-year 2006
increased 45 percent to US$74.4 million versus US$51.3 million
in the prior year.
The company generated net income US$46.7 million for the full-
year 2006. This compares with a 2005 net income of US$25.6
million.
"The year 2006 was outstanding for Clean Harbors both
financially and operationally," McKim said. "We added
substantial incineration capacity, constructed several secure
landfill cells, upgraded numerous facilities, expanded our
transportation fleet, and exceeded our Health, Safety &
Compliance targets. In support of our successful strategy of
introducing the Clean Harbors brand into new markets and
expanding our footprint, we opened six new Site Services
locations in 2006. These initiatives enabled us to post the
largest organic increase in revenues in the company's history."
"At the same time, we successfully completed the Teris
acquisition, which will broaden our service offerings and
improve our ability to service our customers," said McKim.
"Although Teris is still ramping up, it turned in an exemplary
month in December. We also met our goal of Teris being
accretive in the fourth quarter and we expect to see continued
improvement throughout 2007."
At Dec. 31, 2006, the company's balance sheet showed
US$670.8 million in total assets, US$497.6 million in total
current liabilities, and US$173.2 million in total stockholders'
equity.
Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1bf9
About Clean Harbors
Headquartered in Norwell, Massachusetts, Clean Harbors Inc.
(NasdaqGS: CHLB) -- http://www.clenharbors.com/-- provides
environmental and hazardous waste management services. With an
infrastructure of 49 waste management facilities, including nine
landfills, six incineration locations and six wastewater
treatment centers, the company provides essential services to
over 45,000 customers, including more than 325 Fortune 500
companies, thousands of smaller private entities and numerous
federal, state and local governmental agencies. Clean Harbors
has more than 100 locations strategically positioned throughout
North America in 36 U.S. states, six Canadian provinces, Mexico
and Puerto Rico.
* * *
As reported in the Troubled Company Reporter on Jul. 3, 2006,
Moody's Investors Service affirmed the B1 Corporate Family
Rating on Clean Harbors Inc. and changed the outlook to positive
from stable.
LIN TELEVISION: Incurs US$234.5 Mil. Net Loss in Full Year 2006
---------------------------------------------------------------
LIN Television Corp. recorded a net loss of US$234.5 million in
2006, as compared with a net loss of US$26.14 million in 2005.
Net losses in the years 2006 and 2005 primarily as a result of
impairment of the company's broadcast licenses and goodwill, and
interest expense.
The company recorded net revenues of US$426.1 million for the
year ended Dec. 31, 2006, as compared with net revenues of
US$321.14 million for the year ended Dec. 31, 2005.
The increase in net revenues in 2006 was due primarily to:
(a) an increase of US$57.5 million related to the stations
acquired in 2005 and 2006 from Emmis, Viacom and
Raycom;
(b) an increase in political revenue of US$40.1 million;
and
(c) an increase in local airtime sales of US$19.5 million;
offset by:
(d) a decrease in network compensation of US$7.3 million;
and
(e) an increase in sales-related agency commissions of
US$8.8 million.
The company's balance sheet as of Dec. 31, 2006, showed total
assets of US$2.12 billion, total liabilities of US$1.52 billion,
and preferred stock of Banks Broadcasting Inc. of US$10.03
million, resulting to total stockholders' equity of US$588.72
million.
In addition, as of Dec. 31, 2006 and 2005, the company had
accumulated deficits of US$462.4 million and US$227.9 million,
respectively.
The company decreased its cash and cash equivalents in 2006 to
US$6.08 million from US$11.13 million in 2005.
On Oct. 18, 2006, the company agreed to sell its Puerto Rico
operations to InterMedia Partners VII, LP for US$130 million in
cash. The sale is expected to close at the end of the first
quarter of 2007.
Liquidity and Capital Resources
The company's principal sources of funds for working capital
have historically been cash from operations and borrowings under
the company's credit facility. At Dec. 31, 2006, the company
had cash of US$6.08 million and an undrawn, but committed,
US$275 million revolving credit facility, all of which was
available as of Dec. 31, 2006, subject to certain covenant
restrictions.
A full-text copy of the company's annual report for 2006 is
available for free at http://ResearchArchives.com/t/s?1bf2
After LIN Television
Headquartered in Providence, Rhode Island, LIN Television Corp.
(NYSE: TVL) owns and operates 31 television stations in 18 mid-
sized markets in the U.S. and Puerto Rico. At Dec. 31, 2006,
its stations covered about nine percent of U.S. television
households. It also owns and operates and/or programs 29
stations, including two stations pursuant to local marketing
agreements and three low-power stations. In addition, the
company has equity investments in five other stations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2006, Moody's Investors Service downgraded LIN
Television Corp.'s corporate family rating from Ba2 to Ba3.
Moody's has also downgraded its ratings on the company's
Probability of Default Rating to Ba3; 6.5% Senior Subordinated
Notes due 2013 to B1, LGD4, 69%; 6.5% Senior Subordinated Notes
CL B due 2013 to B1, LGD 4, 69%; and 2.5% Exch. Senior
Subordinated Notes due 2033 to B1, LGD4, 69%. Moody's affirmed
its Secured Revolver and Secured Term Loan Ratings at Baa3 for
the company, as well as its SGL-2 speculative grade liquidity
assessment. Moody's said the outlook is stable.
MEDIRECT LATINO: Files Restated 2006 Annual Report
--------------------------------------------------
MEDirect Latino Inc. has filed its restated annual report for
the year ended June 30, 2006, with the U.S. Securities and
Exchange Commission.
The company says that the restatement was due to its:
-- additional cost of television advertising totaling
US$61,245;
-- cost of a legal settlement with a third party totaling
US$1,057,770;
-- liability to its in-house legal counsel totaling
US$415,000 under a service agreement; and
-- reduction of a payable and selling and administrative
expenses by US$105,440.
Financials
The company's restated financial results for the year ended
June 30, 2006, showed a net loss of US$26.01 million on net
sales of US$6.73 million, versus net loss of US$2.56 million on
net sales of US$278,598 a year ago.
At June 30, 2006, the company's balance sheet showed total
assets of US$2.94 million and total liabilities of US$4.68
million, resulting to total stockholders' deficit of US$1.74
million. The company also listed an accumulated deficit of
US$30.35 million as of June 30, 2006.
The company plans to continue to provide for its capital
requirements by issuing additional equity securities and debt.
It has obtained significant new funding from certain private
investors. However, the company stated that there are no
assurances that it can achieve additional funding and that the
company will have sufficient funds to execute its business plan
or generate positive operating results.
Going Concern Doubt
Berkovits, Lago & Company, LLP, raised substantial doubt about
MEDirect Latino, Inc.'s ability to continue as a going concern
after auditing the company's financial statements for the fiscal
years ended June 30, 2006, and 2005. The auditor pointed to the
company's need to obtain outside long term financing and
recurring losses from operations.
A full-text copy of the company's restated annual report for
2006 is available for free at
http://ResearchArchives.com/t/s?1b84
About MEDirect Latino
Headquartered in Pompano Beach, Florida, MEDirect Latino, Inc.
(PNK: MLTO) -- http://www.medirectlatino.org/-- was
incorporated in 2002 as a national direct to consumer provider
of medical products and services. The company was a private
non-registrant operating company until such time as it completed
a Reorganization Agreement with Interaxx Digital Tools Inc. The
company also distributes 'quality of life' enhancing products
like walking assistance devices, to customers who have
circulatory and mobility related afflictions resulting from
diabetes. The company also maintains offices in San Juan,
Puerto Rico.
SIMMONS CO: Posts US$2.8 Million Net Loss in Year Ended Dec. 30
---------------------------------------------------------------
Simmons Company has released operating results for the fourth
quarter and full year ended Dec. 30, 2006.
"The Company's 2006 financial results significantly exceeded our
expectations for the year," said Charlie Eitel, Simmons Chairman
and Chief Executive Officer. "Simmons set new highs in net
sales and Adjusted EBITDA while gaining market share with
increasing momentum throughout 2006. We also took steps to
build our core business by exiting the retail segment with the
sale of Sleep Country USA in August, and acquiring Simmons
Canada in November. We believe these strategic transactions,
coupled with moves we made to strengthen our product lines and
our U.S. and Canadian management teams, position us well for
2007."
Mr. Eitel continued, "We are optimistic about our prospects for
2007. We entered the year with arguably the hottest product
line in our industry including our luxury line, Beautyrest
Black(TM), which was introduced in August 2006. This January we
introduced our new Beautyrest(R) 2007 product line. Dealer
reaction to the product line at the Las Vegas Market was
enthusiastic and the initial performance of the line at retail
has been outstanding."
Fourth Quarter Results
For the fourth quarter of 2006, net sales were US$224.8 million
compared to US$214.8 million for the same period last year, a
4.6% increase. The fourth quarter of 2006 was a 13-week period
whereas the fourth quarter of 2005 was a 14 week period. The
additional week added approximately US$12.4 million of sales in
2005. Additionally, The company's net sales in 2005 included
the sales of its former retail operations. Exclusive of these
sales, the company's net sales increased US$29.2 million or
14.9%. Its sales growth was primarily attributable to an
increase in the company's domestic conventional bedding units
sold of 5.3% compared to the same period last year, and Simmons
Canada sales of US$12.7 million in 2006. Gross profit for the
fourth quarter increased to US$91.7 million, or 40.8% of net
sales, from US$91.0 million, or 42.4% of net sales, for the same
period of 2005.
For the fourth quarter of 2006, operating income was US$16.7
million, or 7.4% of net sales, compared to US$19.6 million, or
9.1% of net sales, for the same period last year. The company
had a net loss of (US$2.8) million for the fourth quarter of
2006 compared to net income US$0.5 million for the same period
of the prior year. For the fourth quarter of 2006, Adjusted
EBITDA increased 6.0% to US$32.8 million compared to US$30.9
million during the same period of 2005.
Full Year Results
For fiscal year 2006, net sales rose 12.4% to US$961.6 million
compared to US$855.3 million in 2005. Exclusive of the net
sales associated with the company's former retail operations,
its net sales increased US$124.6 million, or 15.8%, to US$912.7
million in fiscal year 2006 compared to US$788.1 million in
fiscal year 2005. In addition, fiscal year 2006 was a 52-week
year compared to 53 weeks in fiscal year 2005. For fiscal year
2006, the company's net sales increased principally due to
increases in domestic conventional bedding unit volume and
average unit selling price of 10.8% and 2.6%, respectively,
compared to fiscal year 2005. Gross profit for the fiscal year
2006 was US$417.5 million or 43.4% of net sales, compared to
US$367.1 million, or 42.9% of net sales, a year ago.
For fiscal year 2006, operating income was US$152.0 million, or
15.8% of net sales, compared to US$76.3 million, or 8.9% of net
sales, in 2005. Exclusive of the US$43.3 million pre-tax gain
on the sale of Sleep Country USA, operating income was US$108.7
million, or 11.3% of net sales, for fiscal year 2006. Net
income was US$47.6 million for fiscal year 2006 compared to
US$3.3 million in 2005. Adjusted EBITDA for fiscal year 2006
increased 42.9% to a record US$163.3 million compared to
US$114.3 million, or 13.4% of net sales, for 2005.
As of Dec. 30, 2006, Simmons' working capital as a percentage of
net sales for fiscal year 2006 was 0.7% compared to 2.0% at the
beginning of the year. In 2006, Simmons Bedding's leverage
ratio decreased from 6.2 to 4.1, as a result of the Company's
improved financial performance and debt reduction.
About Simmons Co.
Headquartered in Atlanta, Georgia, Simmons Company -
http://www.simmons.com/-- through its indirect subsidiary
Simmons Bedding Company, is one of the world's largest mattress
manufacturers, manufacturing and marketing a broad range of
products including Beautyrest(R), BackCare(R), BackCare Kids(R)
and Deep Sleep(R). Simmons Bedding Company operates 21
conventional bedding manufacturing facilities and two juvenile
bedding manufacturing facilities across the United States,
Canada and Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2007, Moody's Investors Service assigned a Caa1 rating
to Simmons Co.'s US$275 million super holdco toggle loan and
affirmed the company's B2 corporate family rating. At the same
time, Moody's upgraded Simmons' senior secured credit facility
to Ba2, its US$200 million subordinated notes to B2 and its
senior discount notes to B3. The ratings outlook was revised to
stable from positive due to the higher leverage and aggressive
financial posture resulting from this transaction.
=============
U R U G U A Y
=============
GOL LINHAS: Gol Finance Closes US$225-Million Notes Offering
------------------------------------------------------------
GOL Linhas Aereas Inteligentes' subsidiary Gol Finance has
closed an offering of US$225 million 7.50% Senior Notes due 2017
in a transaction exempt from registration under the United
States Securities Act of 1933, as amended. Gol and its
subsidiary, Gol Transportes Aereos S.A., guarantee the Notes,
which are senior unsecured debt obligations of Gol.
Gol intends to use the proceeds of the offering to finance the
acquisition of Boeing 737 Next Generation aircraft, equipment
and supply materials, as a complement to its U.S. Exim Bank
guaranteed bank financing.
In connection with the Notes, Gol entered into a registration
rights agreement providing that it will use its reasonable best
efforts to file with the Securities and Exchange Commission and
cause to become effective a registration statement relating to
an offer to exchange the Notes for an issue of registered notes
with terms identical to the Notes, except that the exchange
notes will not be subject to restrictions on transfer or to any
increase in annual interest rate as described in the agreement.
With the placement of the Notes, Gol achieved a 10-year
financing at the lowest coupon ever achieved on an unsecured
bond by a non-investment grade rated airline. "This offering
further reduces our cost of capital and bolsters the company's
capitalization", says Richard Lark, Chief Financial Officer of
Gol.
The Notes (and the guarantees) have not been and, except as
contemplated by the registration rights agreement, will not be
registered under the Securities Act and may not be offered or
sold (a) in the United States absent registration or an
applicable exemption from registration under the Securities Act,
or (b) in any other jurisdiction in which such offer or sale is
prohibited.
Headquartered in Sao Paulo, Brazil, GOL Linhas Areas
Inteligentes S.A. -- http://www.voegol.com.br-- through its
subsidiary, GOL Transportes Aereos S.A., provides airline
services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay.
The company's services include passenger, cargo, and charter
services. As of March 20, 2006, Gol Linhas provided 440 daily
flights to 49 destinations and operated a fleet of 45 Boeing 737
aircraft. The company was founded in 2001.
* * *
On March 21, 2006, Moody's Rating Services assigned a Ba2 rating
on GOL's Long-Term Corporate Family Rating.
On June 14, 2006, Fitch Ratings assigned a rating of 'BB' to GOL
Linhas' outstanding US$200 million 8.75% perpetual
bond. In addition, Fitch assigned:
-- National Scale Rating of 'AA-(bra)' with Stable Outlook,
and
-- Local Currency Issuer Default Rating of 'BB+'- with
Stable Outlook.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Shuts Down Cardon Plant Alkylation Unit
---------------------------------------------------------------
Venezuela's state-owned oil firm Petroleos de Venezuela SA told
Petroleumworld that it has shut down an alkylation unit in its
CRP Cardon refinery in northwestern Falcon state due to
scheduled maintenance.
Other maintenance works will be made in CRP Amuay plant's
distillation unit, also in Falcon, Reuters relates, citing a
Petroleos de Venezuela spokesperson.
The Amuay and Cardon plants comprise the 900,000-barrel per day
CRP Paraguana Refining Compound, Petroleumworld states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company. Fitch said the rating
outlook is stable.
PETROLEOS DE VENEZUELA: Issuing US$5B Bonds to Finance Expansion
----------------------------------------------------------------
Petroleos de Venezuela S.A. will sell up to US$5 billion of
bonds to help fund a US$70 billion expansion plan, Bloomberg
News reports, citing company President Rafael Ramirez.
According to Bloomberg, the bolivar's gain and the local bonds
plunge suggest that bond sale may help ease demand fro dollar-
denominated assets. As previously reported, the issuance is
part of the government's move to curb inflation in the country.
"The appetite for assets such as the PDVSA bond is swelling,"
Henry Travieso, a trader with Caracas-based brokerage Global
Capital Valores, told Bloomberg. "Investors will probably snap
them up."
Bloomberg says the the sale process will start March 26. The
bond will be allotted on April 2, with the settlement date on
April 12.
ABN Amro Bank NV and Econoinvest Casa de Bolsa CA will handle
the offering for the state-oil company. The sale prospectus
said individual investors will be given priority, Bloomberg
relates. Minister Ramirez previously said in reports that the
bonds would be offered to individuals willing to invest up to
US$8,000.
Miguel Octavio, managing director at BBO Servicios Financieros,
told Blooomberg the company would probably avoid registering the
issues with the U.S. Securities and Exchange Commission by
filing them under Regulation S. Under Regulation S, the
proposed bonds can't be offered, sold or delivered within the
United States until 40 days after the transaction.
Petroleos de Venezuela SA -- http://www.pdv.com/--
is Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 12, 2007, Standard & Poor's Ratings
Services raised its long-term foreign currency corporate credit
rating on Petroleos de Venezuela S.A. or PDVSA to 'BB-' from
'B+'. S&P said the rating was removed from CreditWatch.
* VENEZUELA: State Telecom Firm to Deploy Fixed Wireless Service
----------------------------------------------------------------
Published reports say that CVG Telecom, Venezuela's state-run
telecom firm, will install a fixed wireless telephony service in
the nation by May.
CVG Telecom President Julio Duran told Business News Americas
that the firm has deployed 36 CDMA450 cells across Venezuela.
Each cell has an approximately 50-kilometer radius coverage
area. The company is also carrying out a pilot program with
four operative cells.
The service will benefit 800,000 citizens in an initial phase,
BNamericas states.
CVG Telecom is a telecommunications service provider formed in
September 2004. It was a joint venture between Venezuelan state
power utility Electricidad del Caroni and state heavy industry
holding firm Corporacion Venezolana de Guyana.
* * *
As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses. For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion. The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.
* VENEZUELA: To Purchase Remaining Cantv Shares This Week
---------------------------------------------------------
The Venezuelan government intends to purchase the rest of the
stakes it doesn't own at telecommunications company Cantv.
Telecom Minister Jesse Chacon said in reports the offer would be
made this week.
The government holds a 35% stake at Cantv after it purchased
Verizon Communication Inc.'s 28.51% holding for US$572 million.
Business News Americas says authorities are currently working to
meet requirements of the U.S. Securities and Exchange Commission
to launch a tender offer for Cantv's shares at the New York
Stock Exchange.
About Cantv
Compania Anonima Nacional Telefonos de Venezuela, Cantv, offers
telecommunications services. The company provides domestic and
international long distance telephone services throughout
Venezuela, wireless telephone services, and Internet access, and
publishes telephone directories.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'. Fitch said the outlook on the
ratings remains stable.
* BOOK REVIEW: American Express
-------------------------------
Title: American Express: The People Who Built the Great
Financial Empire
Author: Peter Z. Grossman
Publisher: Beard Books
Hardcover: 420 pages
List Price: $34.95
Own your personal copy at
http://amazon.com/exec/obidos/ASIN/1587982838/internetbankrupt
American Express: The People Who Built the Great Financial
Empire by Peter Z. Grossman is the inside story of how a major
corporation prevailed to reach worldwide success.
This fascinating book reveals the inside story of one of the
best-known and most influential corporations in the world. It
is not just the history of a company, but of a business.
The American Express Company is a consummate example of
corporate success and endurance.
The book will prove informative for all interested in the world
of business, and it will reinforce the notion that fact can be
more engrossing than fiction.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
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Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, Christian Toledo, and Junald Ango, Editors.
Copyright 2076. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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