/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070327.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, March 27, 2007, Vol. 8, Issue 61 Headlines A R G E N T I N A BALTON SA: Proofs of Claim Verification Deadline Is April 19 CLAXSON INTERACTIVE: Forms Special Panel to Assess Proposal COOPERATIVA DE VIVIENDA: Trustee Verifies Claims Until April 19 COPZA SRL: Proofs of Claim Verification Deadline Is April 9 EL PASO: Declares Final Results of Cash Tender Offers EMPRESA DE OMNIBUS: Claims Verification Deadline Is April 16 ERBO SA: Proofs of Claim Verification Ends on April 26 ETICA SANTA FE: Asks for Court Approval to Reorganize Business FINAGRO SRL: Enters Bankruptcy on Court Order FOOD SISTEM: Asks for Court Approval to Reorganize Business HIJOS DE ELPINO: Reorganization Proceeding Concluded LA CASA: Files for Bankruptcy in Buenos Aires Court NUESTRA SENORA: Proofs of Claim Verification Ends on April 20 PLAST SAICI: Trustee Verifies Claims Until April 20 RISTORANTE SAN BABILA: Reorganization Proceeding Concluded ROCAYAPA SA: Reorganization Proceeding Concluded SATECNA COSTA: Reorganization Proceeding Concluded SERVIPAT SH: Individual Reports Due in Court on April 10 TELECOM ARGENTINA: Deutsche Bank Ups Target Price for Firm TIA NORMA: Proofs of Claim Verification Deadline Is April 27 VADTEL SA: Reorganization Proceeds to Bankruptcy VAUQUITA SA: Reorganization Proceeding Concluded VIDRIERIA EL ANGEL: Claims Verification Deadline Is April 17 B E R M U D A ATTICUS ALPHA: Will Hold Final General Meeting on April 11 CHINA PACIFIC: Final General Meeting Is Set for April 17 CHINA PACIFIC: Proofs of Claim Filing Deadline Is Today FOSTER WHEELER: Unit Wins US$100-Mil. Deal from City Utilities GNEISS INTERNATIONAL: Final General Meeting Is Set for April 16 GNEISS INTERNATIONAL: Proofs of Claim Filing Is Until March 28 LSF5 CHELSEA: Will Hold Final General Meeting on April 17 MERCK LMC: Final General Meeting Is Set for April 12 PALOMA FUND: Proofs of Claim Filing Deadline Is April 5 PALOMA FUND: Will Hold Final General Meeting on April 18 STEINHARDT INTERMEDIARY: Final General Meeting Set for April 12 UNOCAL KAPOPOSANG: Proofs of Claim Filing Deadline Is March 28 UNOCAL KAPOPOSANG: Will Hold Final General Meeting on April 16 WORLD LEISURE: Final General Meeting Is Set For April 19 WORLD LEISURE: Proofs of Claim Filing Ends on March 28 B R A Z I L BANCO DO BRASIL: To Expand Agricultural Loan Portfolio Next Year BANCO ITAU: Cancels Planned Serasa Initial Public Offering BANCO ITAU: Preparing Two New Cards for Low-Income Earners BANCO NACIONAL: Inks BRL570.2MM Pact with Companhia Energetica BENQ CORP: Creditors File EUR1.2-Bln Claim Against Mobile Unit BENQ CORP: Posts NT$7.89-Billion Loss in Fourth Quarter 2006 JABIL CIRCUIT: Revenues Up 27% to US$2.9 Bil. in Full Year 2006 LG.PHILIPS: Czech Unit Suspends Production as Demand Falls STRATOS GLOBAL: To Be Acquired by CIP Canada for US$576 Million WCM BETEILIGUNGS: Sells Klockner-Werke Stake for EUR240 Million C A Y M A N I S L A N D S AALL REALTY: Sets Last Shareholders Meeting for April 19 EMERGING TECHNOLOGY: Last Shareholders Meeting Is on April 19 GOLDEN JADE: Will Hold Last Shareholders Meeting on April 19 HAPPY RICE: Proofs of Claim Filing Deadline Is April 19 MAVERICK LONG: Proofs of Claim Filing Ends on April 19 MAVERICK ENHANCED: Proofs of Claim Filing Deadline Is April 19 MBF NO.1: Proofs of Claim Must be Filed by April 19 OP FUNDING: Will Hold Last Shareholders Meeting on April 19 PARK VIEW: Last Shareholders Meeting Is on April 19 PARMALAT SPA: New Jersey Court Denies Citigroup Motion to Appeal PARMALAT SPA: Earns EUR192.5 Mil. for Year Ended Dec. 31, 2006 PRINCIPAL PROTECTED: Proofs of Claim Filing Ends on April 19 REPACK HOLDINGS: Proofs of Claim Filing Deadline Is on April 19 SANTA ROSA: Proofs of Claim Filing Is Until April 19 SOCS LTD: Will Hold Last Shareholders Meeting on April 19 STANFIELD OPPORTUNISTIC: Last Shareholders Meeting Is April 19 Y.R.E. ASSET: Proofs of Claim Filing Is Until April 19 C H I L E SMURFIT KAPPA GROUP: Fitch Ups Rating to BB- on IPO Completion SMURFIT KAPPA: Moody's Assigns Ba3 Corporate Family Rating C O L O M B I A BBVA COLOMBIA: Earns COP49.0 Billion in First Two Months D O M I N I C A N R E P U B L I C AFFILIATED COMPUTER: Buyout Offer Cues Fitch's Negative Watch AFFILIATED COMPUTER: Buyout Offer Cues S&P's Negative Watch E C U A D O R * ECUADOR: May Renegotiate Debts with World Bank & CAF E L S A L V A D O R TARGUS GROUP: Names Theresa Hope-Reese as Senior Vice President G U A T E M A L A ALCATEL-LUCENT: Chief Executive Confirms Job Cuts in R&D Units BRITISH AIRWAYS: Calls on UK to Sanction US Under Aviation Pact J A M A I C A DYOLL GROUP: National Commercial Clarifies Involvement in Firm GOODYEAR TIRE: Selling Assets to Carlyle Group for US$1.4-Bil. NATIONAL COMMERCIAL: Clarifies Involvement in Dyoll Group M E X I C O ADVANCED MARKETING: C. Smith Succeeds G. Rautenstrauch as CEO BLOCKBUSTER INC: CEO John Antioco to Leave Post by Year-End CONSOLIDATED CONTAINER: Extends Expiration Date for Tender Offer KANSAS CITY SOUTHERN: Unit to Complete Lazaro Terminal Next Year NORTEL NETWORKS: Moody's Rates Proposed US$1-Bln Sr. Notes at B3 NORTEL NETWORKS: S&P Puts B- Rating on Proposed US$1-Bln Debt SCHEFENACKER PLC: Enters Second Phase of Restructuring SCHEFENACKER PLC: Assumes Schefenacker AG's Assets & Debts P E R U COMVERSE TECH: Reports Preliminary Selected Financial Results P U E R T O R I C O ANGIOTECH PHARMA: Picks Santo Corsaro as Sales & Marketing VP COVENTRY HEALTH: To Release First Quarter Results on April 27 MEDIRECT LATINO: Appoints New Members to Board of Directors T R I N I D A D & T O B A G O MIRANT CORP: Court Approves Mirant NY-Gen's Disclosure Statement MIRANT CORP: NY-Gen's Plan Confirmation Hearing Set for April 25 V E N E Z U E L A * VENEZUELA: Plans Joint Refineries with China * VENEZUELA: To Complete Orinoco Nationalization in Six Months * Banco del Sur Creates Apprehension in Banking Industry * BOND PRICING: For the Week March 19 to March 23, 2007 * Large Companies with Insolvent Balance Sheets - - - - - ================= A R G E N T I N A ================= BALTON SA: Proofs of Claim Verification Deadline Is April 19 ------------------------------------------------------------ Marcelo Liderman, the court-appointed trustee for Balton SA's bankruptcy proceeding, verifies creditors' proofs of claim until April 19, 2007. Mr. Liderman will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 12, 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 Balton 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 Balton's accounting and banking records will be submitted in court. La Nacion did not state the date for the submission of the reports. Mr. Liderman is also in charge of administering Balton's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Balton SA Lavalle 1290 Buenos Aires, Argentina The trustee can be reached at: Marcelo Liderman Pinzon 1555 Buenos Aires, Argentina CLAXSON INTERACTIVE: Forms Special Panel to Assess Proposal ----------------------------------------------------------- Claxson Interactive Group. Inc. has, with the support of a group of the its controlling shareholders, the Cisneros Group, Hicks Muse, Roberto Vivo and the Liberman family, proposed that the company acquire for US$10.50 per share in cash, up to all of the outstanding Class A Common shares of the Company not held by such group. A special committee of independent directors of the Company has been formed to evaluate and negotiate this proposal with its own legal and financial advisors. Claxson's Chairman and Chief Executive Officer, Mr. Roberto Vivo explained, "In light of the recently announced Pay TV and Radio sale transactions and given that Claxson does not intend to reinvest the proceeds in new assets, Claxson's operating companies will become significantly smaller. The increase of public company costs will make it difficult for a company like Claxson to continue to operate as a reporting company." No assurance can be given that the proposed transaction, or similar transaction, will take place on these or any other terms. Headquartered in Buenos Aires, Argentina, and Miami, Florida, Claxson Interactive Group. Inc. (Pink Sheets: XSONF) has a presence in the United States and all key Ibero-American countries, including without limitation, Argentina, Mexico, Chile, Brazil, Spain and Portugal. Claxson's principal shareholders are the Cisneros Group of Companies and funds affiliated with Hicks, Muse, Tate & Furst Inc. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 4, 2007, Claxson Interactive Group Inc.'s obligaciones negociables for US$44,400,000 is rated BB by Fitch Argentina. The rating action was based on the company's balance sheet at Sept. 30, 2006. COOPERATIVA DE VIVIENDA: Trustee Verifies Claims Until April 19 --------------------------------------------------------------- Norberto Aurelio Alvarez, the court-appointed trustee for Cooperativa de Vivienda Credito y Consumo Almirante Brown Ltda.'s reorganization proceeding, verifies creditors' proofs of claim until April 19, 2007. The National Commercial Court of First Instance in San Martin, Buenos Aires, approved a petition for reorganization filed by Cooperativa de Vivienda, according to a report from Argentine daily Infobae. Mr. Alvarez will present the validated claims in court as individual reports on June 4, 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 Cooperativa de Vivienda and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Cooperativa de Vivienda's accounting and banking records will be submitted in court on July 18, 2007. The informative assembly will be held on March 11, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The debtor can be reached at: Cooperativa de Vivienda Credito y Consumo Almirante Brown Ltda. San Martin 201 Buenos Aires, Argentina The trustee can be reached at: Norberto Aurelio Alvarez Rodriguez Pena 189 Buenos Aires, Argentina COPZA SRL: Proofs of Claim Verification Deadline Is April 9 ----------------------------------------------------------- Hector Piedrabuena, the court-appointed trustee for C.O.P.Z.A. S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until April 9, 2007. Mr. Piedrabuena will present the validated claims in court as individual reports on May 22, 2007. The National Commercial Court of First Instance in San Nicolas 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 C.O.P.Z.A. 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 C.O.P.Z.A.'s accounting and banking records will be submitted in court on July 6, 2007. Mr. Piedrabuena is also in charge of administering C.O.P.Z.A.'s assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: C.O.P.Z.A. S.R.L. 25 de Mayo 365 San Nicolas, Buenos Aires Argentina The trustee can be reached at: Hector Piedrabuena Alem 134 bis San Nicolas, Buenos Aires Argentina EL PASO: Declares Final Results of Cash Tender Offers ----------------------------------------------------- El Paso Corporation disclosed the expiration and final results of its previously announced cash tender offers to purchase notes of each of the series. The tender offers expired at 12:00 midnight, New York City time, on March 22, 2007. Holders of US$2,590,990,000 notes validly tendered and accepted the purchase in the tender offers. US$627,089,000 aggregate principal amount of such notes were purchased by El Paso on the early settlement date, which was March 9, 2007. El Paso expects final settlement of the tender offers to occur yesterday. Principal Amount Tendered and Principal Amount Accepted for Title of Security Outstanding (1) Purchase 7.625% Senior Notes due Aug. 16, 2007 US$272,102,000 US$229,020,000 6.750% Notes due Oct. 1, 2007 US$75,172,000 US$49,235,000 6.950% Medium Term Notes due Dec. 15, 2007 US$300,000,000 US$204,561,000 7.625% Senior Notes due Sept. 1, 2008 US$215,000,000 US$145,381,000 6.625% Notes due Feb. 1, 2008 US$100,000,000 US$49,429,000 6.500% Senior Notes due June 1, 2008 US$200,000,000 US$63,002,000 6.375% Senior Notes due Feb. 1, 2009 US$200,000,000 US$88,365,000 6.750% Senior Notes due May 15, 2009 US$495,000,000 US$81,657,000 7.750% Senior Notes due June 15, 2010 US$400,000,000 US$251,332,000 10.750% Senior Notes due Oct. 1, 2010 US$56,573,000 US$23,664,000 7.000% Senior Notes due May 15, 2011 US$470,000,000 US$274,016,000 7.625% Notes due July 15, 2011 US$595,000,000 US$241,922,000 9.625% Senior Notes due May 15, 2012 US$150,000,000 US$97,921,000 7.875% Notes due June 15, 2012 US$465,000,000 US$216,166,000 7.375% Medium Term Notes due Dec. 15, 2012 US$300,000,000 US$147,316,000 7.000% Notes due Feb. 1, 2018 US$100,000,000 US$17,811,000 6.950% Senior Notes due June 1, 2028 US$200,000,000 US$25,570,000 8.050% Medium Term Notes due Oct. 15, 2030 US$300,000,000 US$12,407,000 7.800% Medium Term Notes due Aug. 1, 2031 US$700,000,000 US$118,716,000 7.750% Medium Term Notes due Jan. 15, 2032 US$1,249,275,000 US$213,953,000 7.420% Senior Notes due Feb. 15, 2037 US$200,000,000 US$39,546,000 Citigroup Corporate and Investment Banking, Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated served as lead dealer managers for the tender offers and Global Bondholder Services Corporation served as the depositary and information agent for the tender offers. 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. EMPRESA DE OMNIBUS: Claims Verification Deadline Is April 16 ------------------------------------------------------------ Estudio Momany Auditores y Consultores, the court-appointed trustee for Empresa de Omnibus Benjamin Araoz S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until April 16, 2007. Estudio Momany will present the validated claims in court as individual reports on June 4, 2007. The National Commercial Court of First Instance in San Miguel de Tucuman 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 Empresa de Omnibus 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 Empresa de Omnibus' accounting and banking records will be submitted in court on Aug. 27, 2007. Estudio Momany is also in charge of administering Empresa de Omnibus' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Empresa de Omnibus Benjamin Araoz S.R.L. Avenida de las Industrias y Cervino El Corte, Alderetes Departamento Cruz Alta (Tucuman) San Miguel de Tucuman Tucuman, Argentina The trustee can be reached at: Estudio Momany Auditores y Consultores San Martin 107 San Miguel de Tucuman Tucuman, Argentina ERBO SA: Proofs of Claim Verification Ends on April 26 ------------------------------------------------------ Francisco Vazquez, the court-appointed trustee for the court- appointed trustee for Erbo SA's bankruptcy proceeding, verifies creditors' proofs of claim until April 26, 2007. As reported in the Troubled Company Reporter-Latin America on Aug. 11, 2005, Erbo's reorganization progressed into bankruptcy, as ordered by the National Commercial Court of First Instance No. 21 in Buenos Aires. Mr. Vazquez will present the validated claims in court as individual reports on June 11, 2007. The National Commercial Court of First Instance No. 21 in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Erbo and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Vazquez will submit a general report that contains an audit of Erbo's accounting and banking records in court on Aug. 8, 2007. La Nacion did not disclose the dates for the submission of the reports. Mr. Vazquez is also in charge of administering Erbo's assets under court supervision and will take part in their disposal to the extent established by law. Clerk No. 41 assists the court on this case. The debtor can be reached at: Erbo SA Tucuman 1538 Pueyrredon 1221, Martinez Buenos Aires, Argentina The trustee can be reached at: Francisco Vazquez Callao 215 Buenos Aires, Argentina ETICA SANTA FE: Asks for Court Approval to Reorganize Business -------------------------------------------------------------- The National Commercial Court of First Instance No. 20 in Buenos Aires is studying the merits of Etica Santa Fe S.A.'s petition to reorganize its business after it stopped paying its obligations on March 12, 2007. The petition, once approved by the court, will allow Etica Santa Fe to negotiate a settlement plan with its creditors in order to avoid a straight liquidation. Clerk No. 40 assists the court on this case. The debtor can be reached at: Etica Santa Fe S.A. Lezica 4288 Buenos Aires, Argentina FINAGRO SRL: Enters Bankruptcy on Court Order --------------------------------------------- Finagro S.R.L. enters bankruptcy protection after the National Commercial Court of First Instance in Rosario, Santa Fe, ordered the company's liquidation. The order effectively transfers control of the company's assets to a court-appointed trustee who will supervise the liquidation proceedings. The Argentine bankruptcy law requires the trustee to verify proofs of claim from Finagro's creditors and provide the court with individual reports on the validated claims, as well as a general report containing an audit of the company's accounting and business records. Infobae did not disclose the name of the trustee appointed for Finagro's bankruptcy, as well as the deadline of the reports. The debtor can be reached at: Finagro S.R.L. Santa Fe 1261 Rosario, Santa Fe Argentina FOOD SISTEM: Asks for Court Approval to Reorganize Business ----------------------------------------------------------- The National Commercial Court of First Instance No. 16 in Buenos Aires is studying the merits of Food Sistem SA's petition to reorganize its business after it stopped paying its obligations on June 8, 2006. The petition, once approved by the court, will allow Food Sistem to negotiate a settlement plan with its creditors in order to avoid a straight liquidation. Clerk No. 31 assists the court on this case. The debtor can be reached at: Food Sistem SA Tucuman 540 Buenos Aires, Argentina HIJOS DE ELPINO: Reorganization Proceeding Concluded ---------------------------------------------------- The reorganization of Hijos de Elpino Vicentin S.R.L. has been concluded. Data reported by Infobae on its Web site indicated that the process was concluded after the National Commercial Court of First Instance in Reconquista, Santa Fe, approved the debt agreement signed between the company and its creditors. The debtor can be reached at Hijos de Elpino Vicentin S.R.L. H. Yrigoyen No. 67 (3560) Reconquista, Santa Fe, Argentina Phone: 03482-420487 Fax: 03482-420487 E-mail: danielvi@trcnet.com.ar LA CASA: Files for Bankruptcy in Buenos Aires Court --------------------------------------------------- The National Commercial Court of First Instance No. 21 in Buenos Aires is studying the merits of La Casa de Orfelia S.R.L.'s bankruptcy petition after it stopped paying its obligations on November 2006. The petition, once the court approves the petition, will allow the transfer of control of the company's assets to a court- appointed trustee who will supervise the liquidation proceedings. Clerk No. 41 assists the court on this case. The debtor can be reached at: La Casa de Orfelia S.R.L. Paraguay 1359 Buenos Aires, Argentina NUESTRA SENORA: Proofs of Claim Verification Ends on April 20 ------------------------------------------------------------- Miguel Angel Troisi, the court-appointed trustee for Nuestra Senora de Pompeya S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until April 20, 2007. Mr. Toisi will present the validated claims in court as individual reports on June 5, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Nuestra Senora 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 Nuestra Senora's accounting and banking records will be submitted in court on Aug. 2, 2007. Mr. Toisi is also in charge of administering Nuestra Senora's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Nuestra Senora de Pompeya S.A. Avenida Escalada 2831 Buenos Aires, Argentina The trustee can be reached at: Miguel Angel Troisi Cerrito 146 Buenos Aires, Argentina PLAST SAICI: Trustee Verifies Claims Until April 20 --------------------------------------------------- Maria del Pilar Enriquez, the court-appointed trustee for Plast S.A.I.C.I. y F.'s bankruptcy proceeding, verifies creditors' proofs of claim until April 20, 2007. Ms. del Pilar Enriquez will present the validated claims in court as individual reports on June 5, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Plast 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 Plast's accounting and banking records will be submitted in court on July 19, 2007. Ms. del Pilar Enriquez is also in charge of administering Plast's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Plast S.A.I.C.I. y F. Moreno 455 Buenos Aires, Argentina The trustee can be reached at: Maria del Pilar Enriquez Adolfo Alsina 1495 Buenos Aires, Argentina RISTORANTE SAN BABILA: Reorganization Proceeding Concluded ---------------------------------------------------------- Buenos Aires-based Ristorante San Babila S.R.L. concluded its reorganization process, according to data released by Infobae on its Web site. The conclusion came after the National Commercial Court of First Instance in Buenos Aires approved the debt- restructuring plan signed between the company and its creditors. The debtor can be reached at: Ristorante San Babila S.R.L. Pte. R. M. Ortiz 1815 (C1113ABA) Ciudad Autonoma de Buenos Aires Argentina ROCAYAPA SA: Reorganization Proceeding Concluded ------------------------------------------------ Rocayapa S.A.'s reorganization of has been concluded. Data revealed by Infobae on its Web site indicated that the process was concluded after the National Commercial Court of First Instance in Buenos Aires approved the debt agreement signed between the company and its creditors. The debtor can be reached at: Rocayapa S.A. Avenida Rivadavia 7855 Buenos Aires, Argentina SATECNA COSTA: Reorganization Proceeding Concluded -------------------------------------------------- Buenos Aires-based Satecna Costa Afuera S.A. concluded its reorganization process, according to data released by Infobae on its Web site. The conclusion came after the National Commercial Court of First Instance in Buenos Aires approved the debt- restructuring plan signed between Satecna Costa and its creditors. As reported in the Troubled Company Reporter-Latin America on Nov. 21, 2005, Satecna Costa started reorganization proceedings after the court granted its petition for "concurso preventivo," allowing the company to negotiate a settlement proposal for its creditors so as to avoid a straight liquidation. The debtor can be reached at: Satecna Costa Afuera S.A. Reconquista 559 Buenos Aires, Argentina SERVIPAT SH: Individual Reports Due in Court on April 10 -------------------------------------------------------- Daniel Arturo Julio, the court-appointed trustee for Servipat S.H.'s reorganization proceeding, will present in court the validated claims of the company's creditors as individual reports on April 10, 2007. Mr. Julio verified proofs of claim from Servipat's creditors until Feb. 22, 2007. The National Commercial Court of First Instance in Puerto Madryn determines if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Servipat and its creditors. Mr. Julio will also submit on May 23, 2007, a general report that contains an audit of Servipat's accounting and banking records. The informative assembly will be held on Aug. 13, 2007. Creditors will vote to ratify the completed settlement plan during the assembly. The debtor can be reached at: Servipat S.H. Paso de Indios 1779 Puerto Madryn, Chubut Argentina The trustee can be reached at: Daniel Arturo Julio Roca 353 Puerto Madryn, Chubut Argentina TELECOM ARGENTINA: Deutsche Bank Ups Target Price for Firm ---------------------------------------------------------- Deutsche Bank said in a research note that it has increased its target price for Telecom Argentina to US$23 per American Depositary Receipt from US$19.50, due to a positive outlook for the wireless business in Argentina. According to the research note, Telecom Argentina should continue delivering solid top-line and Ebitda growth in 2007 to 2008, driven by its wireless division and improving margins. Telecom Argentina should continue capitalizing on Argentina's positive economic momentum. The firm is expected to report net additions of around 2.1 million wireless clients for 2007. "Wireless should continue increasing its relevance in the company's top line and Ebitda, accounting for 62% of consolidated sales in 2007 and 63% in 2008," Deutsche Bank told Business News Americas. BNamericas underscores that Deutsche Bank thinks that Telecom Argentina will be in a better position next year to begin paying dividends. Deutsche Bank analysts told Business News Americas that they are maintaining their hold recommendation on Telecom Argentina. Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- is the fixed-line operator for local and long-distance services in northern and southern Argentina. It also provides cellular and PCS phone services in Argentina, as well as in Paraguay through a 68% stake in Nocleo. France Telecom formerly controlled the company through its Nortel Inversora venture with Telecom Italia. France Telecom sold most of its stake in 2003 to the Werthein Group, an Argentine agricultural concern owned in part by vice chairman Gerardo Werthein. Nortel continues to be Telecom Argentina's largest shareholder with a 55% stake. Nortel is owned by Sofora, a consortium owned by Telecom Italia (50%), the Werthein Group (48%), and France Telecom (2%). * * * As reported on Oct 11, 2006, Standard & Poor's Ratings Services raised Telecom Argentina S.A.'s counterparty credit rating to B+/Stable/ from B/Stable following the upgrade of the Republic of Argentina to 'B+' from 'B', announced on Oct. 2, 2006. TIA NORMA: Proofs of Claim Verification Deadline Is April 27 ------------------------------------------------------------ Jose Angel Tsanis, the court-appointed trustee for Tia Norma S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until April 27, 2007. Mr. Tsanis will present the validated claims in court as individual reports on June 12, 2007. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 49, 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 Tia Norma 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 Tia Norma's accounting and banking records will be submitted in court on Aug. 9, 2007. Mr. Tsanis is also in charge of administering Tia Norma's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Tia Norma SRL Arevalo 2706 Buenos Aires, Argentina The trustee can be reached at: Jose Angel Tsanis Tte. Gral. J. D. Peron 1410 Buenos Aires, Argentina VADTEL SA: Reorganization Proceeds to Bankruptcy ------------------------------------------------ Vadtel S.A.'s reorganization has progressed into bankruptcy, as ordered by the National Commercial Court of First Instance in Rosario, Santa Fe. The order effectively transfers control of the company's assets to a court-appointed trustee who will supervise the liquidation proceedings. The Argentine bankruptcy law requires the trustee to verify proofs of claim from Vadtel's creditors and provide the court with individual reports on the validated claims, as well as a general report containing an audit of the company's accounting and business records. Infobae did not disclose the name of the trustee appointed for Vadtel's bankruptcy, as well as the deadline of the reports. The debtor can be reached at: Vadtel S.A. Pellegrini 1538 Rosario, Santa Fe Argentina VAUQUITA SA: Reorganization Proceeding Concluded ------------------------------------------------ The reorganization of Buenos Aires-based Vauquita S.A. has ended. Data reported by Infobae on its Web site indicated that the process was concluded after the National Commercial Court of First Instance in Buenos Aires approved the debt agreement signed between the company and its creditors. Vauquita S.A. Reconquista 538 Buenos Aires, Argentina VIDRIERIA EL ANGEL: Claims Verification Deadline Is April 17 ------------------------------------------------------------ Julio Cesar Beorleghi, the court-appointed trustee for Vidrieria El Angel S.A.'s reorganization proceeding, verifies creditors' proofs of claim until April 17, 2007. The National Commercial Court of First Instance in Dolores approved a petition for reorganization filed by Vidrieria El Angel, according to a report from Argentine daily Infobae. Mr. Beorleghi will present the validated claims in court as individual reports on June 5, 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 Vidrieria El Angel 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 Vidrieria El Angel's accounting and banking records will be submitted in court on Aug. 7, 2007. The informative assembly will be held on Feb. 7, 2008. Creditors will vote to ratify the completed settlement plan during the said assembly. The debtor can be reached at: Vidrieria El Angel S.A. Jupiter Esq. Rivadavia, Pinamar Buenos Aires, Argentina The trustee can be reached at: Julio Cesar Beorleghi Buenos Aires 595, Dolores Buenos Aires, Argentina ============= B E R M U D A ============= ATTICUS ALPHA: Will Hold Final General Meeting on April 11 ---------------------------------------------------------- Atticus Alpha's final general meeting will be at 9:30 a.m. on April 11, 2007, or as soon as possible, at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These agendas will be taken during the meeting: -- accounting on the manner in which the winding-up of the company has been conducted and its property disposed of and of hearing any explanation that may be given by the liquidator; -- deciding on the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed of; and -- by resolution dissolving the company. The liquidator can be reached at: Robin J Mayor Clarendon House, Church Street Hamilton, Bermuda CHINA PACIFIC: Final General Meeting Is Set for April 17 -------------------------------------------------------- China Pacific Merchants Ltd.'s final general meeting will be at 9:00 a.m. on April 17, 2007, or as soon as possible, at the liquidator's place of business. These agendas will be taken during the meeting: -- the approval of and adoption of an account laid before the shareholders showing the manner in which the winding-up of the company has been conducted and its property disposed of; -- hearing any explanation that may be given by the liquidator; -- the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- to dissolve the company. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda CHINA PACIFIC: Proofs of Claim Filing Deadline Is Today ------------------------------------------------------- China Pacific Merchants Ltd.'s creditors are given until March 27, 2007, to prove their claims to Jennifer Y. Fraser, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. China Pacific's shareholders agreed on March 6, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victoria Street Hamilton, Bermuda FOSTER WHEELER: Unit Wins US$100-Mil. Deal from City Utilities -------------------------------------------------------------- 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 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 300MWe (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. GNEISS INTERNATIONAL: Final General Meeting Is Set for April 16 --------------------------------------------------------------- Gneiss International Investments Limited's final general meeting will be at 9:30 a.m. on April 16, 2007, or as soon as possible, at the liquidator's place of business. During the meeting, Gneiss International's shareholders will: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and of hearing any explanation that may be given by the liquidator; -- determining through a resolution, the manner in which the books, accounts and documents of the company will be disposed; and -- by resolution dissolving the company. The liquidator can be reached at: Robin J Mayor Clarendon House, Church Street Hamilton, Bermuda GNEISS INTERNATIONAL: Proofs of Claim Filing Is Until March 28 -------------------------------------------------------------- Gneiss International Investments Limited's creditors are given until March 28, 2007, to prove their claims to Robin J Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Gneiss International's shareholders agreed on March 13, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J Mayor Clarendon House, Church Street Hamilton, Bermuda LSF5 CHELSEA: Will Hold Final General Meeting on April 17 --------------------------------------------------------- LSF5 Chelsea's final general meeting will be at 9:30 a.m. on April 17, 2007, or as soon as possible, at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These agendas will be taken during the meeting: -- accounting on the manner in which the winding-up of the company has been conducted and its property disposed of and of hearing any explanation that may be given by the liquidator; -- deciding on the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed of; and -- by resolution dissolving the company. The liquidator can be reached at: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda MERCK LMC: Final General Meeting Is Set for April 12 ---------------------------------------------------- Merck LMC Cash Management (Bermuda) Ltd's final general meeting will be at 9:30 a.m. on April 12, 2007, or as soon as possible, at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These agendas will be taken during the meeting: -- accounting on the manner in which the winding-up of the company has been conducted and its property disposed of and of hearing any explanation that may be given by the liquidator; -- deciding on the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed of; and -- by resolution dissolving the company. The liquidator can be reached at: Robin J Mayor Clarendon House, Church Street Hamilton, Bermuda PALOMA FUND: Proofs of Claim Filing Deadline Is April 5 ------------------------------------------------------- Paloma Fund's creditors are given until April 5, 2007, to prove their claims to Roderick Forrest, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Paloma Fund's shareholders agreed on March 12, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Roderick Forrest Chancery Hall 52 Reid Street Hamilton, Bermuda PALOMA FUND: Will Hold Final General Meeting on April 18 -------------------------------------------------------- Paloma Fund's final general meeting will be on April 18, 2007, or as soon as possible, at the liquidator's place of business. During the meeting, Paloma Fund's shareholders will: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and of hearing any explanation that may be given by the liquidator; -- determine during the meeting, through a resolution, the manner in which the books, accounts and documents of the company will be disposed; and -- by resolution dissolving the company. The liquidator can be reached at: Roderick Forrest Chancery Hall 52 Reid Street, Hamilton Bermuda STEINHARDT INTERMEDIARY: Final General Meeting Set for April 12 --------------------------------------------------------------- Steinhardt Intermediary Fund, Ltd's final general meeting will be at 9:30 a.m. on April 12, 2007, or as soon as possible, at: Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, Bermuda These agendas will be taken during the meeting: -- accounting on the manner in which the winding-up of the company has been conducted and its property disposed of and of hearing any explanation that may be given by the liquidator; -- deciding on the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed of; and -- by resolution dissolving the company. The liquidator can be reached at: Robin J Mayor Clarendon House, Church Street Hamilton, Bermuda UNOCAL KAPOPOSANG: Proofs of Claim Filing Deadline Is March 28 -------------------------------------------------------------- Unocal Kapoposang, Ltd.'s creditors are given until March 28, 2007, to prove their claims to Gary R Pitman, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Unocal Kapoposang's shareholders agreed on March 9, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Gary R Pitman Chevron House 11 Church Street Hamilton, Bermuda UNOCAL KAPOPOSANG: Will Hold Final General Meeting on April 16 -------------------------------------------------------------- Unocal Kapoposang, Ltd.'s final general meeting will be at 9:30 a.m. on April 16, 2007, or as soon as possible, at the liquidator's place of business. During the meeting, Unocal Kapoposang's shareholders will: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and of hearing any explanation that may be given by the liquidator; -- determine during the meeting, through a resolution, the manner in which the books, accounts and documents of the company will be disposed; and -- by resolution dissolving the company. The liquidator can be reached at: Gary R. Pitman Chevron House 11 Church Street Hamilton, Bermuda WORLD LEISURE: Final General Meeting Is Set For April 19 -------------------------------------------------------- World Leisure Investments Limited's final general meeting will be at 9:30 a.m. on April 19, 2007, or as soon as possible, at: Messrs. Conyers Dill & Pearman Clarendon House Church Street Hamilton, Bermuda During the meeting, Unocal Kapoposang's shareholders will: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and of hearing any explanation that may be given by the liquidator; -- determine during the meeting, through a resolution, the manner in which the books, accounts and documents of the company will be disposed; and -- by resolution dissolving the company. The liquidator can be reached at: Robin J. Mayor Clarendon House Church Street Hamilton, Bermuda WORLD LEISURE: Proofs of Claim Filing Ends on March 28 ------------------------------------------------------ World Leisure Investments Limited's creditors are given until March 28, 2007, to prove their claims to Robin J Mayor, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. World Leisure's shareholders agreed on March 9, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J Mayor Clarendon House Church Street Hamilton, Bermuda =========== B R A Z I L =========== BANCO DO BRASIL: To Expand Agricultural Loan Portfolio Next Year ---------------------------------------------------------------- Banco do Brasil Agribusiness Vice President Dercy Alcantara told Business News Americas that the bank will increase its agricultural loan portfolio 26% to BRL63 billion by June 2008, when the current 2007-08 harvest will end. Mr. Alcantara commented to BNamericas, "Of course, this is going to depend on government policy, but we want to grow at that rate." According to BNamericas, the current harvest marks the first year of recovery in Brazil's agricultural sector, with international commodity prices increasing and the real stable against the dollar. Mr. Alcantara told BNamericas, "Next year will be even better than this because prices are higher and producers can fix crop prices on the futures market. Many growers in the center-west have already sold cotton that will be harvested in 2010." BNamericas underscores that Brazilian farmers suffered low international commodity prices and differences in the exchange rate between planting and harvesting in the past two years, which lessened revenues. Drought also affected the nation's major agricultural regions in the south, southeast and center- west in 2005 and 2006. Mr. Alcantara told BNamericas that due to the crisis, Banco do Brasil renegotiated BRL6 billion in overdue loans in 2006, and the bank's non-performing loan ratio peaked at 2% compared to a historic level below 1%. The report says that Banco do Brasil has extended the renegotiated loan payments over the next five years. The vast majority of producers will be able to make their payments in 2007, BNamericas notes, citing Mr. Alcantara. The non-performing loan ratio this year will likely improve to 0.5%. Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and over 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings upgraded Banco do Brasil S.A.'s Support rating to '3' from '4', and affirmed its other ratings: -- Foreign currency Issuer Default Rating (IDR) at 'BB+'; -- Short-term foreign currency at 'B'; -- Local currency IDR at 'BB+'; -- Short-term local currency at 'B'; -- Individual rating at 'C/D'; -- National Long-term rating at 'AA(bra)'; and -- Short-term rating at 'F1+(bra)'. BANCO ITAU: Cancels Planned Serasa Initial Public Offering ---------------------------------------------------------- Banco Itau Holding Financeira, Uniao de Bancos Brasileiros SA and Banco Bradesco 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 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. 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. * * * 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 ITAU: Preparing Two New Cards for Low-Income Earners ---------------------------------------------------------- Banco Itau Holding Financeira SA credit card marketing director Fernando Chacon told the press that the bank is preparing two new cards for low-income earners. The low-income segment continues to increase faster than the general market, reports say, citing Mr. Chacon. Mr. Chacon commented to Business News Americas, "The high-income population segment has been well developed by the credit card industry and now it's time to create products for the low-income population." Banco Itau has been testing a savings bonds-credit card product on 5,000 people for the past six months. A person purchases a savings bond and also receives a credit card. The product lets people with no credit history to make a good credit record. It's similar to the security card in the US, which is granted to clients with low credit ratings after they provide some sort of collateral, BNamericas notes, citing Mr. Chacon. Banco Itau will extend the test to 15,000 users for a total period of up to 24 months, before considering launching the product onto the market. Banco Itau is also developing a credit card that fixes a monthly limit on charges, but not a limit on total purchases, Mr. Chacon told BNamericas. 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: Inks BRL570.2MM Pact with Companhia Energetica -------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES's president Demian Fiocca, and the president of group Suez, Mauricio Bahr, signed Wednesday, a financing agreement for BRL570.2 million to Companhia Energetica Sao Salvador -- CESS -- to build the Sao Salvador Plant at Tocantins River, in the Municipalities of Parana and Sao Salvador (State of Tocantins). According to Demian Fiocca, this is the first hydroelectric project contracted under the new electric generation financial support conditions implemented by BNDES since the launching of the Growth Acceleration Program -- PAC -- in addition to causing a big impact in employment generation. "This is one of the projects that will strengthen the energy supply in Brazil and the first one ever approved under the new interest rate conditions, which have been reduced for the second time within two years", he said. BNDES had already decreased its interest rates to all sectors at the turning from 2005 to 2006. "In the beginning of the year we announced another reduction in the ambit of PAC, for investments in infrastructure, basically logistics and energy, and social infrastructure", said Mr. Fiocca, at a meeting also attended by representatives of the banks involved in the operation. The new financing will be granted under a more favorable financial cost to investors. BNDES has reduced the basic spread to 1% per annum, instead of 1.5% per annum that prevailed previously for endeavors of this size. Currently, the Bank already carries in its portfolio 20 electric generation projects included in PAC, amounting to 7.7 thousand megawatts and that will benefit from the new financing conditions. PAC includes 41 other hydroelectric plants, which will amount to 24.6 thousand MW. Most of the new endeavors should be part of BNDES's portfolio within the following two years. About BNDES Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook to Positive from Stable on Banco Nacional de Desenvolvimento Economico e Social SA's BB Foreign currency counterparty credit rating and BB+ Local currency counterparty credit rating. BENQ CORP: Creditors File EUR1.2-Bln Claim Against Mobile Unit -------------------------------------------------------------- About 4,350 creditors have filed claims against BenQ Mobile GmbH & Co. OHG, the bankrupt mobile subsidiary of Taiwan-based BenQ Corp., John Blau of IDG News Service reports citing BenQ insolvency administrator Martin Prager as saying. BenQ Mobile is facing up to EUR1.2 billion (US$1.6 billion) in claims, most of which comes from 3,500 former BenQ employees who are seeking up to EUR27 million in compensation, Mr. Blau relates. According to the report, creditors have asked 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 fall only at around EUR300 million. BenQ Corp. Chairman K.Y. Lee is in pressure to turn the company around after the board of directors refused to accept his offer to resign from his post. Instead, the board said it will form a task force to review and report on all losses attributed to the acquisition of the mobile phone maker from Siemens in 2005. Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BenQ Mobile filed for insolvency in Germany on Sept. 29, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to meet the deadline in finding a buyer for the company on Dec. 31, 2006. * * * As reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's: * continuing operating losses from its handset operations; * high leverage; and * the competitive nature and low profitability of the LCD monitor industry. BENQ CORP: Posts NT$7.89-Billion Loss in Fourth Quarter 2006 ------------------------------------------------------------ BenQ Corp. posted its fifth straight quarterly loss as its handset business continues to drag after it declared its German unit insolvent late last year, Reuters relates. According to the report, BenQ posted a net loss of NT$7.89 billion or US$238 million for the October-December quarter, widening from a year-ago loss of NTT$6.02 billion. Reuters notes that the result was compared with an average forecast for an NT$843 million loss from five analysts the news agency surveyed. The firm posted a loss of NT$12.22 billion in the third quarter, Reuters relates. The report says BenQ faces more challenges as it tries to strengthen its struggling core businesses, while its outlook is also clouded by the detention last week of its chief financial officer in a probe over suspected insider trading. However, BenQ said it will continue to sell phones in Asia, even though it failed to turn around the loss-making handset unit it bought from Germany's Siemens in late 2005, Reuters notes. Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, 3G handset, Camera phones, and other products. BenQ Mobile GmbH & Co., the company's wholly owned subsidiary, operates from Munich, Germany. BenQ Mobile filed for insolvency in Germany on Sept. 29, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. 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. * * * The Troubled Company Reporter - Asia Pacific 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. JABIL CIRCUIT: Revenues Up 27% to US$2.9 Bil. in Full Year 2006 --------------------------------------------------------------- Jabil Circuit Inc. reported unaudited net revenue for the second quarter of fiscal 2007, ended Feb. 28, 2007, increased 27 percent to US$2.9 billion compared to US$2.3 billion for the same period of fiscal 2006. Jabil is not yet able to provide GAAP results. Jabil will be able to file its 2006 Form 10-K once its Board of Directors' Audit Committee has concluded its evaluation of the company's historical financial statements and the independent registered public accounting firm is able to complete its audit of the financial statements to be included in Form 10-K. Taiwan Green Point Acquisition Update On Jan. 15, 2007, Jabil utilized approximately US$870 million from its credit facility to acquire 97.5 percent of the shares of Taiwan Green Point Enterprises. The remaining minority interest shares will be purchased with finalization of the acquisition, which is expected during the last week of April, depending upon the timing of government approvals. Transition plans are ongoing. Restructuring Update Jabil estimates the associated cost for the previously announced restructuring will be at the high end of its estimated range of US$200 to US$250 million (US$150 to US$200 million cash cost). The realignment is on schedule and Jabil still anticipates the restructuring to take place during the course of fiscal 2007 and fiscal 2008. Other Fiscal Second Quarter 2007 Details -- Current and long term debt is approximately US$1.4 billion, reflecting approximately US$870 million to fund the acquisition of Taiwan Green Point shares -- Sales cycle for the quarter was 29 days -- Annualized inventory turns for the quarter were seven -- Second quarter capital expenditures were approximately US$74 million -- Capital expenditures for fiscal 2007 are estimated to be US$200 to US$250 million -- Cash and cash equivalent balances at quarter end were US$559 million -- A US$0.07 quarterly dividend was paid on March 1, 2007. Guidance Update The company said it currently expects revenue for its third fiscal quarter of 2007 to range from US$2.9 to US$3.0 billion, with an estimated core operating margin range of 2.5 to 3.0 percent, and anticipated core earnings per share in a range of US$0.17 to US$0.23 per diluted share. Under generally accepted accounting principles in the United States of America, earnings per share are estimated to be US$(0.08) to US$0.04 per diluted share. (Expected GAAP earnings per share for the third quarter of fiscal 2007 are currently estimated to include US$0.01 per share for amortization of intangibles, US$0.05 per share for stock-based compensation and US$0.13 to US$0.19 per share for restructuring and impairment charges.) In addition, Jabil said its fourth quarter of fiscal 2007 revenue should be in a range of US$2.9 to US$3.0 billion, with estimated core operating margin in a range of 3.25 to 3.75 percent, and core earnings per share anticipated to be in a range of US$0.29 to US$0.34 per diluted share. Under generally accepted accounting principles in the United States of America, earnings per share are estimated to be US$0.18 to US$0.28 per diluted share. (Expected GAAP earnings per share for the fourth quarter of fiscal 2007 are currently estimated to include US$0.01 per share for amortization of intangibles, US$0.04 per share for stock-based compensation and US$0.01 to US$0.06 per share for restructuring and impairment charges.) Jabil defines core operating income as GAAP operating income before amortization of intangibles, stock-based compensation expense, acquisition-related charges, restructuring and impairment charges. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense, acquisition-related charges, restructuring and impairment charges and other income/loss, net of tax. Jabil defines core earnings per share as core earnings divided by the weighted average number of outstanding shares determined under GAAP. Jabil reports core operating income, core earnings and core earnings per share to provide its investors with an alternative method for assessing operating income, earnings and earnings per share from what it believes to be its core manufacturing operations. As previously disclosed, Jabil is involved in several lawsuits and has received inquiries from the government in connection with certain historical stock option grants. As disclosed on Dec. 8, 2006, Jabil's Board of Directors' Special Review Committee, created to review backdating allegations, authorized the company to announce that the committee has concluded that there was no merit to the allegations that Jabil's officers issued themselves backdated stock options or attempted to cause others to issue them. The Audit Committee of Jabil's Board of Directors is still reviewing the recognition of certain revenue by Jabil in the fourth quarter of fiscal year 1999 and the third quarter of fiscal year 2001. At this time the Audit Committee's review of these matters is still ongoing. The committee will continue to evaluate the company's historical recognition of revenue in a manner and for such periods as it determines may be appropriate. Jabil Circuit, Inc. (NYSE:JBL) -- http://www.jabil.com/-- is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Jabil Circuit has more than 50,000 employees and facilities in 20 countries, including Brazil, Mexico, Europe and Asia. * * * As reported in the Troubled Company Reporter-Latin America on March 1, 2007, Moody's Investors Service downgraded Jabil Circuit, Inc.'s issuer rating to Ba1 (corporate family rating) and the senior unsecured note rating to Ba2 from Baa3, while continuing to keep the company's rating under review for possible downgrade. Moody's first placed Jabil's rating under review for possible downgrade in November 2006. Continuation of the review process reflects continued uncertainty vis-a-vis Jabil's credit and liquidity profile mainly due to issues surrounding delays in its filing of audited financial statements. Standard & Poor's Ratings Services placed a BB+ preliminary rating on Jabil Circuit's US$1.5 billion senior and subordinated debts on Aug. 19, 2005. LG.PHILIPS: Czech Unit Suspends Production as Demand Falls ---------------------------------------------------------- Multidisplay s.r.o. (formerly LG.Philips Displays Czech Republic s.r.o.) halted TV tubes production at its Hranice plant after a temporary fall in demand, CTK reports citing plant spokeswoman Zuzana Fojtikova. Ms. Fojtikova told CTK that warehouses are full at the moment. "It is less expensive to stop the lines than to let them run, say, at 50 percent," Ms. Fojtikova said. According to CTK, part of the employees will be on holiday during the temporary shutdown while others will be paid 70% of the average monthly wage. The plant will resume operations on April 2 as demand is expected to rise again. In February, CTP Invest bought the entire business from the trustee of the bankrupt mother company LG.Philips Displays Holding B.V. seated in the Netherlands. As previously reported, LG.Philips Displays Holding B.V. filed for insolvency protection along with its Dutch subsidiary, LG.Philips Displays Netherlands B.V., and its German subsidiary in Aachen due to worsening conditions in the CRT marketplace and unsustainable debt. Less than two months after the insolvency filings in Europe, the company's U.S. unit, LG.Philips Displays USA Inc., filed a chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware on March 15. About LG.Philips Displays Headquartered in Hong Kong, LG.Philips Displays -- http://www.lgphilips-displays.com/-- manufactures cathode ray tubes for use in televisions and computer monitors. The company produces one in every four television and computer monitor tubes sold. Making use of its global manufacturing infrastructure, it provides regional supplies to top TV and monitor brands worldwide. LG.Philips Displays continues to be committed to the CRT industry and will maintain a strong profile based on its competitive operations and innovative, high-quality products. The company's production facilities are in: China, Korea, Indonesia, Brazil, The Netherlands and United Kingdom. STRATOS GLOBAL: To Be Acquired by CIP Canada for US$576 Million --------------------------------------------------------------- Stratos Global Corp. has entered into a definitive agreement to be acquired by CIP Canada Investment Inc., a wholly owned subsidiary of Communications Investment Partners Limited, a professional investment company with a focus on satellite services. Until at least April 2009, an independent Canadian trust established by CIP Canada will hold the Stratos shares and exercise sole voting control over Stratos. Under the terms of the agreement, CIP Canada would acquire beneficial ownership of 100% of Stratos Global through a Plan of Arrangement under the Canada Business Corporations Act for a cash purchase price of CDN$6.40 per share. The purchase price represents a premium of 7% compared with the closing price of Stratos shares on March 8, 2007, the day before an article appeared in The Globe & Mail highlighting the possibility of a sale of Stratos. The premium is 15% compared with the most recent 30-day average through March 8 and 25% compared with the 90-day average through that date. The total transaction value, including the assumption of net debt, is US$576 million at current exchange rates. The transaction will be indirectly financed by a wholly owned subsidiary of Inmarsat plc, Inmarsat Finance III Limited. There is no financing condition to the obligations of CIP Canada to consummate the transaction. Arrangements and plans are in place from third parties and Inmarsat Finance to address any debt refinancing requirements at Stratos. Inmarsat Finance will have a call option exercisable beginning in April 2009, and expiring in December 2010, to acquire 100% of Stratos from CIP, but will not have any legal ownership in, or managerial control of Stratos. "After careful consideration, the Stratos Board of Directors unanimously concluded that this is the right transaction for Stratos' shareholders, customers, partners, and employees," Charles Bissegger, Stratos' chairman of the Board of Directors, said. "This transaction will allow Stratos to remain as an independent company executing its strategy through April 2009, and will promote stability of our business in the post-April 2009 period when our existing distribution agreements with Inmarsat come up for renewal," James Parm, Stratos' president and chief executive officer, added. Following closing, Stratos will continue to have a Board of Directors comprised of a majority of independent, non-executive directors, and key management is expected to remain with Stratos. None of the directors will be selected by or affiliated with Inmarsat or CIP. The Plan of Arrangement will require approval by an Ontario court and by 66-2/3% of votes cast at a special meeting of Stratos shareholders. A Stratos Management Proxy Circular detailing the terms of the transaction and the date of the special shareholders meeting is expected to be mailed to Stratos shareholders in late April 2007. The transaction will also be subject to customary conditions and regulatory approvals, including any applicable clearances under competition laws and the Federal Communications Commission. The transaction is expected to close in the third quarter of 2007. Bear, Stearns & Co. Inc. acted as financial advisor to the Special Committee of the Board of Directors of Stratos and RBC Capital Markets acted as financial advisor to Stratos. Both firms provided fairness opinions to the Board of Directors indicating that the cash consideration to be received in the transaction is fair from a financial point of view to Stratos shareholders. About CIP Communications Investment Partners Limited is a professional investment company incorporated in 2006. The directors of CIP collectively have more than 50 years of experience as directors of and advisors to satellite services companies in both the mobile satellite and fixed satellite services sectors. About Stratos Headquartered in Bethesda, Maryland, Stratos Corporation (TSX: SGB) -- http://www.stratosglobal.com/-- is a publicly traded company that provides a range of mobile and fixed-site remote communications solutions for users operating beyond the reach of traditional networks. The company has offices in Canada, Brazil, the United Kingdom, Norway, Germany, the Netherlands, Sweden, Italy, Spain, Turkey, Russia, Kenya, South Africa, United Arab Emirates, India, Hong Kong, Japan, Singapore, Australia and New Zealand. * * * As reported in the Troubled Company Reporter on March 23, 2007, Standard & Poor's Ratings Services raised the ratings on remote telecommunications service provider Stratos Global Corp., including the long-term corporate credit rating to 'B+' from 'B'. WCM BETEILIGUNGS: Sells Klockner-Werke Stake for EUR240 Million --------------------------------------------------------------- WCM Beteiligungs- und Grundbesitz AG has sold its stake in Klockner-Werke AG for around EUR240 million, Borsen Zeitung reports. Following the sale, WCM now has more than enough funds to repay its EUR230-million debt to HSH Nordbank, Borsen Zeitung relates. To repay its remaining debts, the company either has to sell or restructure its remaining holdings in Maternus Kliniken AG and Ymos. Borsen Zeitung suggests that WCM would become a shell company after paying its debts. Michael C. Frege, WCM's court-appointed administrator, told Borsen Zeitung that the stake sale would not terminate the company's insolvency. Mr. Frege stressed that the sale represents a major move and could form the basis for a new insolvency plan. In a TCR-Europe report on Nov. 13, 2006, WCM applied for insolvency on Nov. 8 as a result of the extraordinary termination of the loan agreement by HSH Nordbank AG. The District Court of Frankfurt (Main) opened bankruptcy proceedings against the company on Nov. 21, 2006. The Court will verify the claims against the company at 9:00 a.m. on April 23, at: The District Court of Frankfurt (Main) Hall 1 Building F Klingerstrasse 20 60313 Frankfurt (Main) Germany The administrator can be reached at: Michael C. Frege Barckhausstrasse 12-16 60325 Frankfurt (Main) Germany Tel: 069/71701-300 Fax: 069/71701-40-410 About WCM AG Headquartered in Frankfurt, Germany, WCM Beteiligungs- und Grundbesitz-AG -- http://www.wcm.de/-- holds equity interests in other real estate investment, management, and development companies, as well as in the nursing homes and a packaging maker. The group owns 80% of Klockner-Werke AG, which also operates in Austria, Czech Republic, Denmark, France, United Kingdom, Italy, Netherlands, Spain, Switzerland, Australia, Brazil, India, Japan, Mexico, Russian Federation, Singapore, and the U.S.A. WCM has been posting consecutive annual net losses of EUR849 million in 2002; EUR315 million in 2003; EUR163 million in 2004; and EUR44 million in 2005. =========================== C A Y M A N I S L A N D S =========================== AALL REALTY: Sets Last Shareholders Meeting for April 19 -------------------------------------------------------- AALL Realty Holdings Corp. will hold its final shareholders meeting on April 19, 2007, at 10:00 a.m., at: Deloitte Fourth Floor, Citrus Grove P.O. Box 1787 George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) authorize the liquidators to retain the records of the Company for a period of five years from the dissolution of the Company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Stuart Sybersma Attention: Nicole Ebanks Deloitte P.O. Box 1787 George Town, Grand Cayman Cayman Islands Telephone: (345) 949-7500 Fax: (345) 949-8258 EMERGING TECHNOLOGY: Last Shareholders Meeting Is on April 19 ------------------------------------------------------------- Emerging Technology Strategy Assets will hold its final shareholders meeting on April 19, 2007, at: Cititrust (Bahamas) Limited P.O. Box N-1576 Citibank Bldg., Thompson Boulevard Oakes Field, New Providence Nassau, Bahamas These agendas will be taken during the meeting: 1) enabling the members to review an account of the winding up of the company. 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: Michael R. Fields c/o Maples and Calder P.O. Box 309 Ugland House, South Church Street George Town, Grand Cayman Cayman Islands GOLDEN JADE: Will Hold Last Shareholders Meeting on April 19 ------------------------------------------------------------ Golden Jade CDO Ltd. will hold its final shareholders meeting on April 19, 2007, at 10:30 a.m., at: HSBC Financial Services (Cayman) Ltd. Strathvale House, North Church Street P.O. Box 1109 Grand Cayman KY1-1102 Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) authorize the liquidators to retain the records of the Company for a period of five years from the dissolution of the Company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Janet Crawshaw Cereita Lawrence P.O. Box 1109 Grand Cayman KY1-1102 Cayman Islands Telephone: 345-914-7510 Fax: 345-949-7634 HAPPY RICE: Proofs of Claim Filing Deadline Is April 19 ------------------------------------------------------- Happy Rice Field's creditors are given until April 19, 2007, to prove their claims to Wendy Ebanks and Joshua Grant, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Happy Rice's shareholders agreed on March 6, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Wendy Ebanks Joshua Grant Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands MAVERICK LONG: Proofs of Claim Filing Ends on April 19 ------------------------------------------------------ Maverick Long (Plans), Ltd.'s creditors are given until April 19, 2007, to prove their claims to Richard Gordon and Jan Neveril, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Maverick Long's shareholders agreed on March 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Richard Gordon Jan Neveril Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands MAVERICK ENHANCED: Proofs of Claim Filing Deadline Is April 19 -------------------------------------------------------------- Maverick Long Enhanced (Plans), Ltd.'s creditors are given until April 19, 2007, to prove their claims to Richard Gordon and Jan Neveril, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Maverick Long's shareholders agreed on March 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Richard Gordon Jan Neveril Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands MBF NO.1: Proofs of Claim Must be Filed by April 19 --------------------------------------------------- MBF No.1's creditors are given until April 19, 2007, to prove their claims to Guy Major and Joshua Grant, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. MBF No.1's shareholders agreed on March 8, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Guy Major Joshua Grant Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands OP FUNDING: Will Hold Last Shareholders Meeting on April 19 ----------------------------------------------------------- OP Funding Corp. will hold its final shareholders meeting on April 19, 2007, at 10:00 a.m., at: BNP Paribas Bank & Trust Cayman Limited 3rd Floor, Royal Bank House Shedden Road, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) authorize the liquidators to retain the records of the Company for a period of five years from the dissolution of the Company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Ellen J. Christian Piccadilly Cayman Limited c/o BNP Paribas Bank & Trust Cayman Limited 3rd Floor Royal Bank House, Shedden Road George Town, Grand Cayman Telephone: 345 945 9208 Fax: 345 945 9210 PARK VIEW: Last Shareholders Meeting Is on April 19 --------------------------------------------------- Park View 9 Holdings Ltd. will hold its final shareholders meeting on April 19, 2007, at the office of the company. These agendas will be taken during the meeting: 1) enable the members to review an account of the winding up of the company. 2) hear 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: Jean-Louis Cambieri Joannah Bodden, Maples and Calder P.O. Box 309 George Town, Grand Cayman Cayman Islands PARMALAT SPA: New Jersey Court Denies Citigroup Motion to Appeal ---------------------------------------------------------------- The Superior Court of New Jersey, Appellate Division, has rejected Citigroup's Motion for Leave to Appeal the denial of the motion to dismiss Parmalat S.p.A.'s complaint against the bank on the basis of forum non-conveniens. Parmalat's suit against Citigroup continues in New Jersey, the forum originally selected by Parmalat. 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 or 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. PARMALAT SPA: Earns EUR192.5 Mil. for Year Ended Dec. 31, 2006 -------------------------------------------------------------- Parmalat S.p.A. released its consolidated financial results for the full year 2006. The company reported EUR192.5 million in net profit against EUR3.84 billion in revenues for the full year 2006, compared with EUR300,000 in net loss against EUR3.68 billion in revenues. Parmalat said in a statement that the positive figure reflects a favorable shift in the sales mix, the implementation of measures to increase manufacturing and distribution efficiency and a positive change in foreign exchange rates. The company's financial performance in 2006 was also boosted by proceeds from legal settlements, The Associated Press reports. The company also halved its net debt from EUR369.3 million as of Dec. 31, 2005, to EUR170 million as of Dec. 31, 2006. The figure, however, excludes, proceeds from a EUR112-million settlement with Banca Nazionale del Lavoro S.p.A., which was booked in January 2007. Outlook for 2007 In 2007, absent non-recurring transactions and changes in the scope of consolidation, Parmalat expects to report higher revenues and EBITDA than in 2006, consistent with its performance in the first two months of the current year. These expectations are based on to the assumption of a positive contribution by functional products and the success of marketing and industrial projects that are currently being implemented. The positive operational results of the countries where the Group operates could partially suffer, in the Group consolidation, of the appreciation in value of the euro versus the currencies of the countries. Thanks to the collection early in 2007 of the receivables generated by the settlements with BNL, BPM and Deloitte, virtually all of the net indebtedness has been eliminated. Moreover, the Group's operations in the various countries are expected to generate sufficient cash flows to fund their capital investment programs and their debt service obligations. 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 or 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: Proofs of Claim Filing Ends on April 19 ------------------------------------------------------------ Principal Protected MMCAPS I, Ltd.'s creditors are given until April 19, 2007, to prove their claims to Richard Gordon and Chris Watler, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Principal Protected's shareholders agreed on March 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Richard Gordon Chris Watler Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands REPACK HOLDINGS: Proofs of Claim Filing Deadline Is on April 19 --------------------------------------------------------------- Repack Holdings Inc.'s creditors are given until April 19, 2007, to prove their claims to Wendy Ebanks and Joshua Grant, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Repack Holdings shareholders agreed on Feb. 28, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. 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: Proofs of Claim Filing Is Until April 19 ---------------------------------------------------- Santa Rosa CDO Ltd.'s creditors are given until April 19, 2007, to prove their claims to Andrew Dean and Joshua Grant, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Santa Rosa's shareholders agreed on Feb. 23, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Andrew Dean Joshua grant Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands SOCS LTD: Will Hold Last Shareholders Meeting on April 19 --------------------------------------------------------- SOCS Ltd. will hold its final shareholders meeting on April 19, 2007, at 10:00 a.m., at: Walker House, Mary Street George Town, Grand Cayman KY1-9001 Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) authorize the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which time they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Christopher E. Jansen Stanfield Capital Partners LLC 430 Park Avenue, 11th Floor New York, New York 10022 USA STANFIELD OPPORTUNISTIC: Last Shareholders Meeting Is April 19 -------------------------------------------------------------- Stanfield Opportunistic Convertible Strategies Ltd. will hold its final shareholders meeting on April 19, 2007, at 10:00 a.m., at: Walker House, Mary Street George Town, Grand Cayman KY1-9001 Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) authorize the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which time they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Christopher E. Jansen Stanfield Capital Partners LLC 430 Park Avenue, 11th Floor New York, New York 10022 USA Y.R.E. ASSET: Proofs of Claim Filing Is Until April 19 ------------------------------------------------------ Y.R.E. Asset Funding Co. Ltd.'s creditors are given until April 19, 2007, to prove their claims to Carlos Farjallah and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Y.R.E. Asset's shareholders agreed on Feb. 13, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Carlos Farjallah Emile Small Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands ========= C H I L E ========= SMURFIT KAPPA GROUP: Fitch Ups Rating to BB- on IPO Completion -------------------------------------------------------------- Following the completion of Smurfit Kappa Acquisitions' initial public offering of new shares in Smurfit Kappa Plc, and the use of proceeds to prepay debt, Fitch has taken a series of rating actions for the group, as: Smurfit Kappa Acquisitions' Issuer Default rating is upgraded to 'BB-' from 'B+'; the Rating Watch Positive status is removed and a stable outlook is in place. Its senior secured facilities are affirmed at 'BB+' and the rating for the guaranteed debenture notes is upgraded to 'BB+' from 'BB'. Smurfit Kappa Funding's remaining EUR131 million and USD280 million senior notes due 2012 are upgraded to 'BB-' from 'B' and are placed on Rating Watch Positive pending the outcome of the further tender offer launched by the company on March 22. Its EUR217.5 million and USD200 million senior subordinated notes due 2015 are upgraded to 'B+' from 'B-'. The rating for the Smurfit Kappa Holdings PIK notes is upgraded to 'B' and withdrawn. Smurfit Kappa Group's IPO raised EUR1,495 million in gross primary proceeds, EUR200 million more than anticipated, and the company has immediately applied proceeds in redemption of its PIK Notes (of which approx EUR39 million remain outstanding) and a part of its 2012 senior notes. Fitch estimates that SKG's net total leverage has been reduced as a result of the IPO to 4.3x on a pro forma basis from 5.3x reported at FYE06. The company has issued a redemption notice for the remaining PIK Notes that will be redeemed in April. "The success of the IPO and the prepayment of approximately EUR1bn of non-shareholder debt already, with potentially over EUR250m further prepayments anticipated in the next few weeks, has significantly reduced SKG's leverage and increased financial flexibility," said Michelle De Angelis, Senior Director in Fitch's Leveraged Finance team in London. "The resulting credit profile of the company is commensurate with a 'BB minus' rating, but further positive rating momentum could result from additional deleveraging and sustained EBITDA margin improvements during the next 12 to 18 months." The rating of the senior secured bank facilities remains unchanged, but the combination of the overall enhancement of SKG's credit profile together with the reduced outstanding amount of the senior notes resulted in a two-notch upgrade of both the senior notes due 2012 and the senior subordinated notes due 2015. A further tender offer has been launched in respect of the senior notes, which will see the additional funds raised used in further debt redemption, bringing the balance of 2012 notes outstanding to potentially as little as EUR33m and USD72 million. At that point, the leverage differential between senior secured debt and the senior notes could be as little as 0.1x and in Fitch's view the rating differential between the senior secured debt and the senior notes could be similarly reduced to a single notch. The agency has therefore applied a Positive Rating Watch to the senior notes rating, and if the tender offer is successful, the rating of these notes could be upgraded to 'BB'. SKG Instrument ratings summary: Smurfit Kappa Acquisitions' senior secured facilities -- 'BB+' Smurfit Capital Funding's guaranteed debentures due 2025 -- 'BB+' Smurfit Kappa Funding's senior notes due 2012 -- 'BB-'; Rating Watch Positive Smurfit Kappa Funding's senior subordinated notes due 2015 -- 'B+' Headquartered in Dublin, Ireland, Smurfit Kappa Group -- http://www.smurfit-group.com/-- manufactures containerboard containerboard and converts it into corrugated cases, folding cartons, paper sacks, tubes, and composite cans. Other products include boxboard, sack kraft paper, and printing and writing paper. The company produces 6 million tons of paper annually and has 300 facilities worldwide. In Latin America, the company operates in Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico and Venezuela. SMURFIT KAPPA: Moody's Assigns Ba3 Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service today assigned a Ba3 Corporate Family Rating to Smurfit Kappa plc, the ultimate parent company of Smurfit Kappa Holdings plc and the entity publishing consolidated group accounts, and simultaneously withdrew the CFR for Smurfit Kappa Holdings plc. In line with Moody's Loss-Given- Default methodology, a "Probability of Default Rating" of Ba3 was also assigned. The outlook is stable. Furthermore, following the successful partial flotation of its shares, SK applied the net proceeds of approximately EUR 1.4 billion for these transactions: 1) Following a public tender offer for the US$750 million 2012 Senior Notes (rating unchanged at B2) as well as for the EUR350 million 2012 Senior Notes (rating unchanged at B2), SK has so far redeemed US$470 million and EUR219 million respectively. (Moody's has noted that the company has launched a tender offer for another portion of these 2012 issues that will bring the amount outstanding of the 2012 Senior Notes to about 10% for each tranche.) 2) In addition, on March 21, 2007, SK has redeemed its EUR90 million Shareholder PIK loan (unrated). 3) On March 21, 2007, SK has issued a call for the remaining 10% of outstanding EUR 325 million 11.5% Senior PIK Notes due 2015 (rating upgraded from Caa1 to B2, see below). As a result of this emerging new capital structure and in the context of the implementation of Moody's Loss Given Default methodology for European corporates from March 19, 2007, several debt instruments of SK were consequently upgraded, and these rating changes were made to the rated debt instruments: Smurfit Kappa plc: i) A Ba3 Corporate Family Rating was assigned Smurfit Kappa Holdings plc: i) The Ba3 Corporate Family Rating was withdrawn ii) EUR 325m 11.5% Senior PIK Notes 2015: The rating was upgraded from Caa1 to B2, with an LGD rate of 96% and an LGD assessment of LGD 6; the rating will be withdrawn upon successful redemption of all securities. Smurfit Kappa Funding plc: i) EUR131 million (face amount) 10.125% Senior Notes 2012: The B2 issue rating was affirmed, with an LGD rate of 93% and an LGD assessment of LGD 6; ii) US$280 million (face amount) 9.625% Senior Notes 2012: The B2 issue rating was affirmed, with an LGD rate of 93% and an LGD assessment of LGD 6; iii) EUR 217.5 million Senior Subordinated Notes 2015: The B3 issue rating was upgraded to B2, with an LGD rate of 95% and an LGD assessment of LGD 6; iv) US$200 million 7.75% Senior Subordinated Notes 2015: The B3 issue rating was upgraded to B2, with an LGD rate of 95% and an LGD assessment of LGD 6; Smurfit Kappa Treasury Funding Limited i) US$292 million Yankee Bond 2025, the Ba3 issue rating was upgraded to Ba2, with an LGD rate of 39% and an LGD assessment of LGD 3. As a result of the implementation of the LGD methodology, Moody's has upgraded to B2 the ratings of EUR217.5 million Senior Subordinated Notes due 2015 and the US$200 million 7.75% Senior Subordinated Notes due 2015. At the same time, the US$292 million Yankee Bond which matures in 2025 was upgraded to Ba2, reflecting the significant presence of junior debt in the capital structure, resulting in a one-notch differential between the rating of the senior secured facility and the corporate family rating. Moody's will also withdraw the rating for the EUR325 million 11.5% Senior PIK Notes due 2015 after SK issued a call for the remaining 10% of outstanding notes; the rating will be withdrawn once these notes have been fully settled. Smurfit Kappa plc, headquartered in Dublin/Ireland, is Europe's largest integrated manufacturer of containerboard, corrugated containers and other paper-based packaging products. SK also holds leading positions in Latin America, which accounted for 13% of group sales, which totaled approximately EUR7.0 billion at FYE 2006. Headquartered in Dublin, Ireland, Smurfit Kappa Group -- http://www.smurfit-group.com/-- manufactures containerboard containerboard and converts it into corrugated cases, folding cartons, paper sacks, tubes, and composite cans. Other products include boxboard, sack kraft paper, and printing and writing paper. The company produces 6 million tons of paper annually and has 300 facilities worldwide. In Latin America, the company operates in Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico and Venezuela. =============== C O L O M B I A =============== BBVA COLOMBIA: Earns COP49.0 Billion in First Two Months -------------------------------------------------------- BBVA Colombia's profit increased 16.5% to COP49.0 billion in the first two months of 2007, compared to the same period in 2006, Business News Americas reports. BBVA Colombia said in a press release that its lending increased 30.1% to COP9.61 trillion at the end of February 2007, compared to the same period in 2006. According to BNamericas, BBVA Colombia's assets rose 1.70% to COP13.8 trillion at the end of February 2007, compared to the same period in 2006. Its equity increased 11.4% to COP1.33 trillion. BBVA Colombia's shareholders will hold a meeting on March 30 to authorize a COP123-billion dividend, BNamericas states. Headquartered in Bogota, Colombia, BBVA Colombia -- http://www.bbva.com.co/-- is engaged in the holding and accomplishment of all operations, acts and contracts of banking establishments. It is 95.16% owned by Banco Bilbao Vizcaya Argentaria. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 22, 2006, Fitch upgraded the foreign currency Issuer Default Rating of BBVA Colombia. These rating actions followed the Country Ceiling upgrades for various countries, including Colombia to 'BB+' from 'BB'. Fitch took these rating actions: -- foreign currency long-term issuer default rating upgraded to 'BB+' from 'BB' and revised Outlook to Stable from Positive; -- foreign currency short-term rating affirmed at 'B'; -- Local currency long-term IDR affirmed at 'BBB-' with Stable Outlook; -- Local currency short-term rating affirmed at 'F3'; -- Individual 'C/D' remains on Rating Watch Negative; -- Support affirmed at '3'. =================================== D O M I N I C A N R E P U B L I C =================================== AFFILIATED COMPUTER: Buyout Offer Cues Fitch's Negative Watch ------------------------------------------------------------- Fitch Ratings has placed Affiliated Computer Services, Inc. on Rating Watch Negative after the proposed offer from Darwin Deason, founder and current chairman of ACS, and Cerberus Capital Management L.P. to acquire the company in a leveraged buyout transaction valued at US$8.2 billion, including existing debt. Ratings affected: -- Issuer Default Rating 'BB'; -- Senior secured revolving credit facility at 'BB'; -- Senior secured term loan at 'BB'; and -- Senior notes at 'BB-'. Approximately US$3.3 billion of debt, including the US$1 billion revolving facility, is affected by Fitch's action. Resolution of the Negative Rating Watch is contingent on these factors: -- The decision reached by ACS' Board of Directors to accept or reject the offer following a review of the transaction; -- The degree of leverage utilized in financing the acquisition should the Board approve the transaction; -- The acquirer's ability to arrange what Fitch believes will be approximately US$6 billion of debt financing, assuming a 30% equity contribution. Fitch believes ACS' credit metrics proforma for the transaction support an IDR in the 'B' category. Based on the proposed offer price and a 30% equity contribution, Fitch estimates pro forma leverage may increase to 6.3x from 2.8x as of Dec. 31, 2006 due to a projected US$3.3 billion increase in outstanding debt to US$6 billion in order to finance the transaction. Fitch believes proforma interest coverage may decline to 1.7x from 7.1x for the latest 12 months ended Dec. 31, 2006. Fitch believes the majority of outstanding debt will be refinanced in an LBO transaction. Total debt as of Dec. 31, 2006 was approximately US$2.6 billion, consisting primarily of US$1.8 billion of secured term loans due 2013, US$275 million of borrowings under the revolving credit facility, US$250 million of senior notes due June 2010 and US$250 million of senior notes due June 2015. Under the terms of the credit facility agreement, consummation of the proposed transaction would be an event of default, requiring immediate repayment of all outstanding borrowings under the facility due to a change of control provision and likely violation of financial covenants in the agreement, including maximum consolidated total leverage ratio of 4x and interest coverage covenant of 4.5x. The indenture governing ACS' US$500 million of senior notes offers no protection in the event of an LBO. ACS previously granted equal and ratable liens in favor of the holders of the senior notes in all assets other than accounts receivable when it obtained the current secured credit facility. The 'BB-' rating for the senior notes incorporates the fact that the secured credit facilities have the sole rights to ACS' accounts receivable, which represented approximately 21% of total assets and 43% of tangible assets as of Dec. 31, 2006. Acceleration of principal on the senior notes as a result of ACS' failure to timely file its 10-K for the year ended June 30, 2006, remains uncertain due to the company's pending lawsuit against its Trustee, in which ACS seeks a declaratory judgment affirming its position that no default has occurred under the indenture. However, Fitch believes there is a possibility the senior notes will be refinanced in the proposed transaction to avoid the uncertainty associated with a sizeable contingent payment relative to current liquidity and minimal pro forma free cash flow in a highly leveraged capital structure. 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. AFFILIATED COMPUTER: Buyout Offer Cues S&P's Negative Watch ----------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' corporate credit and senior secured ratings on Dallas, Texas-based Affiliated Computer Services Inc. on CreditWatch with negative implications. "The CreditWatch placement follows the announcement that an investment group led by ACS' founder has offered to buy the company for about US$8.2 billion (including the assumption of debt)," said Standard & Poor's credit analyst Philip Schrank. If the LBO is successful, operating lease-adjusted leverage likely will increase from the 5x threshold incorporated into the current rating. Standard & Poor's will monitor any negotiations and respond to any change in the company's business or financial profile. 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. ============= E C U A D O R ============= * ECUADOR: May Renegotiate Debts with World Bank & CAF ------------------------------------------------------ Ecuadorian Economy Minister Ricardo Patino told Reuters Friday that the his country may seek a renegotiation of all its World Bank debt and contemplates revamping loans with the Andean Development Corporation or CAF. The news came after the country announced plans to renegotiate its loans with the Inter-American Development bank, Reuters relates. "After speaking with the Inter-American Development Bank, I hope we can speak to the World Bank," the economy minister was quoted by Reuters as saying. "We want to modify amortization tables so the debt service will not be so high." The nation's debt to the World Bank totals US$748 million, while its CAF loans reached US$1.5 billion. * * * As reported in the Troubled Company Reporter on Jan. 25, 2007, Fitch Ratings downgraded the long-term foreign currency Issuer Default Rating of Ecuador to 'CCC' from 'B-', indicating that default is a real possibility in the near term. In addition, these ratings were downgraded: -- Uncollateralized foreign currency bonds to 'CCC/RR4' from 'B-/RR4'; -- Collateralized foreign currency Par and Discount Brady bonds to 'CCC+/RR3' from 'B/RR3'; and -- Short-term foreign currency IDR to 'C' from 'B'. Fitch also affirmed the Country ceiling rating at 'B-'. ===================== E L S A L V A D O R ===================== TARGUS GROUP: Names Theresa Hope-Reese as Senior Vice President --------------------------------------------------------------- Targus(R) Group International Inc. announced that Theresa Hope-Reese has joined the company as the Senior Vice President of Human Resources. Ms. Hope-Reese will be responsible for all human resource practices and policies for the global organization. Prior to joining Targus, Ms. Hope-Reese was the Vice President of Human Resources for AVANIR Pharmaceuticals; an Orange County based Biotech Company. Ms. Hope-Reese spent over 6 years with Water Pik Technologies, Inc. as Corporate Vice President of Human Resources where she was responsible for all global human resource functions. Prior to joining Water Pik, she worked for Varco International, Inc., a global oilfield services company where she was Corporate Vice President of Human Resources. She earned her Bachelor of Science degree in management from California State University, San Diego, her Masters of Business Administration from the University of North Texas, and her Executive Certificate in Management at the Peter F. Drucker and Masatoshi Institute of Management in Claremont. "Theresa brings to this position a strong functional expertise, a demonstrated ability to develop high performance teams and an unwavering commitment to ethical business practices and behavior," said Michael Hoopis, President and Chief Executive Officer of Targus. Headquartered in Anaheim, California, Targus Group International Inc. -- http://www.targus.com/-- supplies notebook carrying cases and accessories. The company has offices on every continent and distributes in over 145 countries including Argentina, Barbados, Costa Rica and El Salvador. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. consumer product sector last week, the rating agency affirmed its B2 Corporate Family Rating for Targus Group International Inc., and raised its rating on the company's US$40 million Guaranteed First Lien Senior Secured Revolver Due 2011 to Ba3 from B2. Moody's assigned an LGD2 rating to those bonds suggesting lenders will experience a 27% loss in the event of a default. ================= G U A T E M A L A ================= ALCATEL-LUCENT: Chief Executive Confirms Job Cuts in R&D Units -------------------------------------------------------------- Alcatel-Lucent's Chief Executive Officer Patricia Russo stressed, during a meeting of the company's European group committee, that the staff reductions undertaken by the company are the direct result of redundancies linked to the merger announced on Dec. 1, 2006, and of Nortel's UMTS activities acquisition. Ms. Russo emphasized that the staff reductions are also linked to the adaptation of the business model related to its customers' rapidly evolving needs and to the adjustment of some activities to the market perspectives. Those reasons, and especially the redefinition of the product portfolio, explain why a part of the plan concerns job reductions in R&D. While the company's presence in emerging countries is essential to adapt products to the specificities of those growing markets, the company insisted on the fact that those countries would experience the impact of synergies as well. Ms. Russo also reaffirmed the company's strong commitment to R&D in Western Europe and North America in particular. The missions of the company's major European R&D competence centers were also confirmed: -- access in Belgium and Spain; -- optics in Italy, Germany and France; -- submarine networks in France; -- IP in Belgium; -- 2G mobile in France and Germany; -- 3G mobile in France, following Nortel's UMTS activities acquisition, and in Germany; -- WiMAX in France and Germany; -- convergence in France, Belgium, Germany and Spain; -- enterprise in France; and -- research & innovation in France, Germany and Belgium. Alcatel-Lucent's active involvement in the working group on the future of telecom in Europe put in place by the French government is also dedicated to this commitment. Twelve members of the management team, along with 27 delegates from nine European countries, attended the meeting. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. Through its operations in fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable communications services for people at home, at work, and on the move. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Australia, Brunei, and Cambodia. * * * As of Feb. 7, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB- rating. It's Short-Term Corporate Credit rating stands at B. Moody's, on the other hand, put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. BRITISH AIRWAYS: Calls on UK to Sanction US Under Aviation Pact --------------------------------------------------------------- British Airways plc has called on the U.K. government to stand by its right of automatic termination of traffic rights granted in the new air treaty endorsed March 22 between the European Union and the U.S. if America drags its feet on negotiating further liberalization. Access to Heathrow for U.S. airlines is at the heart of the new aviation pact signed by European Union Transport Ministers Thursday in Brussels. British Airways chief executive Willie Walsh said, "The EU is naive to believe the US will deliver on the next stage of liberalization without sanctions so we are pleased the U.K. government has recognized this and demanded an automatic termination clause. However, the five-month delay before implementation is unnecessary. "With the EU having given away their most valuable negotiating asset -- Heathrow -- the U.K. government must stand by its pledge to withdraw traffic rights if the US does not deliver further liberalization by 2010. Nothing short of an Open Aviation Area by 2010 will be acceptable and we want talks on the second stage to achieve this to start immediately. "This means delivering a true Open Aviation Area under which airlines from both sides would have free access to each others' market without restrictions and where it will be possible for a US airline to be 100% owned by investors from the EU and vice versa. "A genuine liberalization such as this would deliver huge benefits for customers. "It is disappointing that the EU has missed the opportunity to achieve these long-term gains for customers. Instead, this deal will deliver short-term gains for the subsidized American aviation industry. "So far the US has made no meaningful concessions. American carriers can now fly into Heathrow, Europe and beyond while their own backyard remains a no go area for EU carriers and foreign ownership of their airlines remains unchanged. "We will hold the Government to its word to fight for Britain's interests if America doesn't play ball. Though this is a poor agreement for Britain and Europe, we are ready to exploit the new opportunities this agreement gives us for our customers and our business. Our priority will be to move the Gatwick services to Heathrow that have most connecting traffic, such as the Houston route which serves the oil markets and give our customers the best possible connections." As previously reported, the airline is opposing the "open skies" deal as it may lose its protected flight status at Heathrow airport and face intense competition, according to published reports. About the Company Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. BA has offices in India and Guatemala. * * * British Airways' 7-1/4% senior unsubordinated notes due 2016 and 10-7/8% notes due 2008 carry Moody's Investors Service's Ba2 ratings and Standard & Poor's BB- ratings. ============= J A M A I C A ============= DYOLL GROUP: National Commercial Clarifies Involvement in Firm -------------------------------------------------------------- The National Commercial Bank of Jamaica Chairperson Michael Lee- Chin told Radio Jamaica that the bank was a passive shareholder of Dyoll Group, but wasn't involved in the latter's operations. According to Radio Jamaica, National Commercial had purchased 44% of Dyoll Group prior to its financial problems, which started two years ago when its general insurance unit collapsed due to a high number of claims arising from Hurricane Ivan. Mr. Lee-Chin commented to Radio Jamaica, "The problems were also, by the way, not in Jamaica, the problems were in Cayman. Also... the first thing you bet is the quality of management. We were not a part, notwithstanding us owning 44%, we're passive shareholders, and we're not a part in choosing management. We inherited management as a passive shareholder." The National Commercial told Radio Jamaica that it has learnt a lesson from its failed investment in Dyoll Group. About Dyoll Group 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. GOODYEAR TIRE: Selling Assets to Carlyle Group for US$1.4-Bil. -------------------------------------------------------------- The Goodyear Tire & Rubber Company has agreed to sell substantially all of its Engineered Products business to EPD, Inc., an entity sponsored by Carlyle Partners IV, L.P., for US$1.475 billion, subject to certain post-closing adjustments. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals as well as EPD's completion of a labor agreement with the United Steelworkers union. As part of the transaction, Goodyear has agreed to a trademark licensing agreement with EPD to use the Goodyear brand and certain other trademarks in connection with the Engineered Products business. Goodyear expects to record a gain on the sale, the amount of which has not yet been finalized. "This transaction reinforces our focus on our core consumer and commercial tire businesses and on improving our balance sheet," said Robert J. Keegan, Goodyear chairman and chief executive officer. "We anticipate using the proceeds for purposes including reducing debt, addressing legacy obligations and supporting growth in our tire businesses." Specific plans regarding debt reduction and investments will be announced at a later date. "Engineered Products is a successful business with outstanding associates who have made important contributions to Goodyear. We thank them for these contributions," he added. "I'm confident the resources and business philosophy of Carlyle will support Engineered Products' growth and continued success going forward." Timothy R. Toppen, president, Goodyear Engineered Products, said the transaction would not interfere with its daily operations or on meeting customer needs. "The cornerstone of our operating philosophy stays intact - we want to help our customers grow their businesses for the long- term," he said. Goodyear Engineered Products operates 32 facilities in 12 countries and has approximately 6,500 associates. It manufactures and markets engineered rubber products for industrial, military, consumer and transportation original equipment end-users. The product portfolio of the business includes hose, conveyor belts, power transmission products, rubber track, molded products and air springs. In 2006, Engineered Products had sales of approximately US$1.5 billion. The Carlyle Group is one of the world's largest private equity firms with US$54.5 billion under management, investments in more than 185 companies and 750 employees in 16 countries. In the aggregate, Carlyle portfolio companies have more than $68 billion in revenue and employ more than 200,000 people around the world. Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear Tire has marketing operations in almost every country around the world including Chile, Colombia, Guatemala, Jamaica and Peru in Latin America. Goodyear employs more than 80,000 people worldwide. * * * As reported in the Troubled Company Reporter-Latin America on March 19, 2007, Fitch Ratings has affirmed ratings for The Goodyear Tire & Rubber Company and revised the Rating Outlook to Stable from Negative. The ratings affirmed are: * The Goodyear Tire & Rubber Company -- Issuer Default Rating 'B'; -- US$1.5 billion first lien credit facility 'BB/RR1'; -- US$1.2 billion second lien term loan 'BB/RR1'; -- US$300 million third lien term loan 'B/RR4'; -- US$650 million third lien senior secured notes 'B/RR4'; and -- Senior unsecured debt 'CCC+/RR6'. NATIONAL COMMERCIAL: Clarifies Involvement in Dyoll Group --------------------------------------------------------- The National Commercial Bank of Jamaica Chairperson Michael Lee- Chin told Radio Jamaica that the bank was a passive shareholder of Dyoll Group, but wasn't involved in the latter's operations. According to Radio Jamaica, National Commercial had purchased 44% of Dyoll Group prior to its financial problems, which started two years ago when its general insurance unit collapsed due to a high number of claims arising from Hurricane Ivan. Mr. Lee-Chin commented to Radio Jamaica, "The problems were also, by the way, not in Jamaica, the problems were in Cayman. Also... the first thing you bet is the quality of management. We were not a part, notwithstanding us owning 44%, we're passive shareholders, and we're not a part in choosing management. We inherited management as a passive shareholder." The National Commercial told Radio Jamaica that it has learnt a lesson from its failed investment in Dyoll Group. About Dyoll Group 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. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2006, Standard & Poor's Rating Services affirmed its 'B/B' counterparty credit and CD ratings on National Commercial Bank Jamaica Ltd. S&P said the outlook is stable. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2006, Fitch initiated rating coverage on Jamaica's National Commercial Bank Jamaica, Ltd., by assigning 'B+' ratings on the bank's long-term foreign currency. Other ratings assigned by Fitch include: -- Long-term local currency 'B+'; -- Short-term foreign currency 'B'; -- Short-term local currency 'B'; -- Individual 'D'; -- Support '4'. Fitch said the ratings had a stable rating outlook. =========== M E X I C O =========== ADVANCED MARKETING: C. Smith Succeeds G. Rautenstrauch as CEO ------------------------------------------------------------- Advanced Marketing Services Inc. has appointed Curtis R. Smith, the company's executive vice president and chief financial officer, to succeed former CEO Gary M. Rautenstrauch following the latter's March 21 resignation, the San Diego Business Journal reports. Advanced Marketing has been in proceedings under Chapter 11 of the Bankruptcy Code since Dec. 29, 2006. The U.S. Bankruptcy Court in Wilmington, Delaware, approved the transaction on March 9. Mr. Smith will supervise the final winding-down of the Company's business operations following the completion of the sale of majority of its assets to B&T. Mr. Rautenstrauch will remain as a member of the company's Board of Directors. Mr. Rautenstrauch worked for 22 years at Baker & Taylor, including a stint as chief executive officer of B&T, the Journal relates. According to the report, the former CEO is entitled to get a bonus of up to 70 percent of his salary. U.S. securities filings disclosed that his base salary was US$450,000, which pegs his bonus at US$315,000. About Advanced Marketing Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than US$100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Apr. 28, 2007. BLOCKBUSTER INC: CEO John Antioco to Leave Post by Year-End ----------------------------------------------------------- Blockbuster Inc. disclosed Tuesday in a filing with the U.S. Securities and Exchange Commission that the Company and John Antioco, Blockbuster Chairman and CEO, have entered into an amended and restated employment agreement that sets forth terms under which Mr. Antioco will leave the company by the end of 2007. "I am pleased that we were able to reach this agreement," said John Antioco, Blockbuster Chairman and CEO. "This revised employment agreement allows for management continuity and ample opportunity for an orderly succession by the end of the year. In the meantime, the board of directors, our management team and I remain focused on continuing to improve the business, most notably through BLOCKBUSTER Total Access(TM)." "John and the company have reached terms that are clearly in the best interests of the stockholders," said Carl C. Icahn, a member of the Blockbuster Board of Directors. "I and the rest of the board remain committed to working with our dedicated management team to deliver on the company's financial goals for the year and to continue positioning Blockbuster for improved success now and into the future." Under the amended and restated employment agreement, Mr. Antioco will receive a 2006 bonus of US$3.0525 million, which reflects a compromise between the US$2.28 million bonus previously conditionally offered by the board and US$7.65 million, which is the amount Mr. Antioco was entitled to receive under his previous employment agreement and Blockbuster's 2006 Senior Bonus Plan if negative discretion was not invoked. Additionally, at the conclusion of his employment, Antioco will receive a lump sum payment of US$4.9875 million as compared to a lump sum payment of US$13.5 million that he would have been entitled to receive if he had been terminated without cause or had resigned for good reason on Dec. 31, 2007, under his previous employment agreement. Details of the amended and restated employment agreement are available for free at http://researcharchives.com/t/s?1bc7 In addition, at a meeting of the Blockbuster board of directors on March 19, 2007, the board voted to recommend that Blockbuster's stockholders approve at its annual meeting an amendment to Blockbuster's certificate of incorporation to eliminate the classification of the board of directors and to provide for the annual election of all directors. The board believes that the de-classification of the board is consistent with best corporate governance practices. 2006 Results As reported in the Troubled Company Reporter on Mar. 9, 2007, Blockbuster Inc. reported net income of US$54.7 million for the year ended Dec. 31, 2006, compared with a net loss of US$588.1 million for 2005. Revenues for 2006 decreased 3.5% to US$5.52 billion from US$5.72 billion for 2005 mostly due to the closure of stores resulting from accelerated actions to optimize the company's asset portfolio and a 2.1% decrease in worldwide same-store sales. At Dec. 31, 2006, the company's balance sheet showed US$3.137 billion in total assets, US$2.394 billion in total liabilities, and US$742.4 million in total stockholders' equity. About Blockbuster Blockbuster Inc. (NYSE: BBI) -- http://www.blockbuster.com/-- is a leading global provider of in-home movie and game entertainment, with over 8,000 stores throughout the Americas, Europe, Asia and Australia. The company maintains operations in Brazil, Mexico, Denmark, Italy, Taiwan, Australia, among others. * * * As reported in the Troubled Company Reporter on Dec. 19, 2006, Standard & Poor's Ratings Services revised its outlook on video rental retailer Blockbuster Inc. to stable from negative. The ratings on the Dallas-based company, including the 'B-' corporate credit rating, were affirmed. CONSOLIDATED CONTAINER: Extends Expiration Date for Tender Offer ---------------------------------------------------------------- Consolidated Container Company LLC, in connection with its previously announced tender offers to purchase for cash any and all of the US$207,000,000 aggregate principal amount at maturity of outstanding 10-3/4% Senior Secured Discount Notes due 2009 (CUSIP Nos. 20902YAF9 and 20902YAD4) of CCC and Consolidated Container Capital, Inc. and any and all of the US$185,000,000 principal amount of outstanding 10-1/8% Senior Subordinated Notes due 2009 (CUSIP No. 20902YAC6) of CCC and Capital, which commenced Feb. 23, 2007, has extended the time by which holders may tender Notes in response to the Offers. The Offers, which were scheduled to expire at 11:59 p.m., New York City time, on Thursday, have been extended to 11:59 p.m., New York City time, on Tuesday, March 27, 2007, unless further extended. CCC has been advised by the depositary of the Offers that as of 11:59 p.m., New York City time, on March 22, 2007, tenders had been received with respect to approximately 98.8% of the outstanding principal amount at maturity of the Senior Discount Notes and 95.4% of the outstanding principal amount of the Senior Subordinated Notes. The obligations of CCC to accept for payment and purchase the Notes in the Offers remains conditioned on, among other things, the closing of new senior secured credit facilities by CCC. Lehman Brothers Inc. is serving as the dealer manager for the Offers. Questions about the Offers should be directed to Lehman Brothers Inc., toll- free at (800) 438-3242 or (212) 528-7581 (collect), attention: Liability Management. The information agent for the Offers is D.F. King & Co. Inc. Requests for additional sets of the materials for the Offers may be directed to D.F. King & Co. Inc. by calling toll-free at (800) 758-5378. Headquartered in Atlanta, Georgia, Consolidated Container Company LLC -- http://www.cccllc.com/-- develops, manufactures and markets rigid plastic containers for many of the largest branded consumer products and beverage companies in the world. The company has a network of 55 strategically located manufacturing facilities and a research, development and engineering center located in Atlanta, Georgia. In addition, the company has three international manufacturing facilities in Canada and Mexico. The company sells containers to the dairy, water, juice & other beverage, household chemicals & personal care, agricultural & industrial, food and automotive sectors. The company's container product line ranges in size from two- ounce to six-gallon containers and consists of single and multi- layer containers made from a variety of plastic resins, including high-density polyethylene, polycarbonate, polypropylene, and polyethylene terephthalate. * * * As reported in the Troubled Company Reporter-Latin America on March 9, 2007, Moody's Investors Service upgraded the Corporate Family Rating of Consolidated Container Company LLC to B2. Concurrently, Moody's assigned a B1 rating to the US$390 million PP&E term loan facility and a Caa1 rating to the US$250 million second lien term loan facility of Consolidated Container. Moody's affirmed the ratings with stable outlook. KANSAS CITY SOUTHERN: Unit to Complete Lazaro Terminal Next Year ---------------------------------------------------------------- Jaime Valdez -- institutional relations deputy director of Kansas City Southern de Mexico S. de R.L. de C.V., Kansas City Southern's Mexican subsidiary -- told Business News Americas that the firm will complete its 110-hectare multimodal terminal project at Lazaro Cardenas port in Michoacan in December 2008. The terminal will cost US$80 million. Works on the project will start in January 2008, BNamericas relates, citing Mr. Valdez. Studies on the project that are conducted with the Michaocan government are very advanced. Upon completion, the terminal will have a capacity of one million TEUs (twenty-foot equivalent units) yearly. Mr. Valdez told BNamericas that the Mexican unit also bought an additional 190-hectare of land where the terminal will be constructed, for a second phase of expansions, although the details of the expansions haven't yet been defined. The multimodal terminal would let cargo from Asia to arrive to the US and Mexico through the Kansas City Southern railway networks, BNamericas states. Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the US, Mexico and Panama. Its primary U.S. holding includes KCSR, serving the central and south central US. Its international holdings include Kansas City Southern de Mexico, serving northeastern and central Mexico and the port cities of L zaro C rdenas, Tampico and Veracruz, and a 50% interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Standard & Poor's Ratings Services affirmed its ratings on Kansas City Southern, including the 'B' corporate credit rating, and removed the ratings from CreditWatch, where they were placed Jan. 29, 2007. The 'D' rating on the preferred stock was not on CreditWatch. NORTEL NETWORKS: Moody's Rates Proposed US$1-Bln Sr. Notes at B3 ---------------------------------------------------------------- Moody's Investors Service affirmed Nortel Networks' existing ratings, including its B3 corporate family rating, and assigned a B3 rating to the proposed US$1 billion convertible senior unsecured notes offering. Proceeds of the offering will be used to refinance a portion of the US$1.8 billion in 4.25% convertible notes due in 2008 when they become payable at par. The outlook remains stable. Moody's notes the company's progress in several fronts in its recently released year end 2006 results including revenue increases in each of its business segments and reduction in material weaknesses from 5 to 1. EBITDA for the year decreased however, despite the revenue increases. Nortel's management team has made progress in it turnaround plan but it still has considerable challenges to return operating margins to double digit levels. The recent divestiture of the UMTS business and recently disclosed US$400 million cost cutting program should positively affect EBITDA going forward if the company is able to maintain its growth momentum. The proposed notes offering will address a significant 2008 maturity issue and allow the company to substantially maintain its strong cash position. Assigned: * Nortel Networks Corporation -- Proposed US$1.0 billion Convertible Senior Unsecured notes at B3, LGD4, 67% Affirmed: * Nortel Networks Corporation -- US$1.8 billion 4.25% Convertible Senior Unsecured notes at B3, LGD4, 67% * Nortel Networks Limited -- Corporate Family Rating at B3, LGD4, 67% -- US$2.0 billion Senior Unsecured notes at B3, LGD4, 67% -- US$200 million 6.875% senior unsecured notes at B3, LGD4, 67% -- Preferred Stock Caa3 * Nortel Networks Capital Corporation -- 7.875% Senior Unsecured notes at B3, LGD4, 67% Nortel Networks Corporation is a global telecommunications networking solutions provider headquartered in Toronto, Ontario, Canada. NORTEL NETWORKS: S&P Puts B- Rating on Proposed US$1-Bln Debt ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-' debt rating to Canada-based Nortel Networks Corp.'s proposed US$1 billion senior unsecured convertible notes, which will consist of two tranches of US$500 million, maturing in 2012 and 2014, respectively. Proceeds from the convertible notes will be used to partially refinance NNC's US$1.8 billion senior unsecured convertible notes due Sept. 1, 2008, and therefore the overall debt level is not expected to change. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on 100%-owned Canada-based subsidiary, Nortel Networks Ltd. At the same time, the ratings on the US$200 million notes of NNL and the US$150 million notes of Nortel Networks Capital Corp. were lowered to 'CCC' from 'B-'. NNC, NNL, and the U.S.-based subsidiary, Nortel Networks Inc., are collectively referred to as Nortel. The outlook on NNL is stable. "The proposed US$1 billion senior unsecured convertible notes of the parent will be guaranteed by both NNL and NNI," said Standard & Poor's credit analyst Madhav Hari. "We note that the inclusion of the NNI guarantee in the proposed offering will effectively subordinate about US$1.15 billion of existing debt," Mr. Hari added. This debt includes the US$200 million unsecured notes of NNL due September 2023, the US$150 million unsecured notes of NNCC due June 2026, and the remaining US$800 million convertible notes of NNC due September 2008. Given that, on a pro forma basis, priority debt and liabilities will represent more than 30% of total adjusted assets, the ratings on the US$200 million notes of NNL and the US$150 million notes of NNCC were lowered as noted above, reflecting the relatively weaker recovery prospects of this structurally junior debt in the event of a reorganization. Nevertheless, the US$800 million remaining senior unsecured convertible notes of NNC will continue to be rated 'B-' despite the structural subordination; this is because Standard & Poor's believe investors can expect a higher likelihood of full recovery given the notes near-term maturity, particularly in the context of Nortel's meaningful cash balances of US$3.5 billion at Dec. 31, 2006, which are expected to be sustained. The ratings on NNL, which are based on the consolidation with parent NNC, reflect a highly competitive telecom equipment industry, notably in the context of continuing carrier consolidation; ongoing major changes in the industry's technology direction, resulting in potential rapid adverse changes in demand patterns; a weak but stable spending environment for global telecom equipment and services; the company's high level of debt and weak credit protection measures; and profitability that continues to lag that of its peers. These factors are partially mitigated by the company's broad portfolio of wireline and wireless products and services; reasonable-scale, geographically diversified operations; strong customer relations; early indications of a trend toward improved profitability; and a healthy liquidity position. The stable outlook reflects our expectations of only modest improvement in Nortel's operating performance, including modest growth in revenues, EBITDA, and cash flow in the next two years. The stable outlook also assumes that Nortel will be able to maintain a healthy liquidity position supported by a minimum of US$1.5 billion in cash balances. The outlook could be revised to positive should Nortel deliver better-than-expected operating performance and improved free operating cash flows. Should Nortel's profitability weaken, and if its free operating cash flow remains negative in the medium term, the outlook could be revised to negative. SCHEFENACKER PLC: Enters Second Phase of Restructuring ------------------------------------------------------ Schefenacker plc enters into the second phase of its restructuring with the presentation of a proposal for a company voluntary arrangement. The company's bondholders will be asked to vote for a debt-to- equity-swap at a creditors' meeting on March 30. This will determine the company's survival as an important automotive supply player. With the support of the company's main customers, senior creditors and the shareholder management could present a proposal to restructure the company's unsustainable debt levels and to recapitalize the business. On the operational side, since its appointment on Dec. 11, 2006, the current management has completed the separation of the lighting business and is in advanced stages of negotiations for a sale of this division. The management has also ensured a controlled wind-down of the loss-making US lighting operations. "Following the appointment of an extended executive management team in early February and the announcement of our restructuring proposal we are beginning to see momentum in our order intake," Stephen J. Taylor, acting Chief Executive of Schefenacker, said. "It is now crucial that we get the support of the bondholders for this proposal. It is the best and only solution available for the company to survive in its entirety and for the bondholders to participate in its development." Terms of the Plan Under the terms of the proposal, the company will receive EUR35 million fresh money from senior creditors and EUR20 million from Dr. Alfred R. Schefenacker. Additionally, senior creditors will have a substantial reduction of cash interest payment on their debt and Dr. Schefenacker will give up over EUR100 million in shareholder loans and his control of the company. The new equity structure of the company will look as follows: 69.6% senior lenders, 25.4% Dr. Schefenacker, 5% bondholders. In an analysis presented with the proposal, Schefenacker presents a financial outlook for 2007 based on the mirror division only of around EUR77 million EBITDA and EUR805 million sales if the proposed financial restructuring is successful. If bondholders reject the proposal Schefenacker will undergo an enforcement of security by its senior lenders in a controlled manner, absent which there would be a break-up of the group and substantial job losses. The company anticipates that if the bondholders reject the company voluntary arrangement proposal they will receive nothing at all in respect of their bonds. About Schefenacker Headquartered in Hampshire, United Kingdom, Schefenacker Plc (fka Schefenacker AG) -- http://www.schefenacker.com/-- develops, produces and supplies rear vision systems, lighting systems and sound systems to the world's automotive manufacturers. The company employs 7,900 people and operates 27 sites in Australia, China, France, Hungary, India, Japan, Korea, Mexico, Romania, Slovenia, Spain, the United Kingdom, and the U.S.A. * * * As reported in the TCR-Europe on Feb. 15, Moody's Investors Service downgraded the Corporate Family Rating of Schefenacker AG to Ca from Caa2, the rating on the company's senior subordinated notes to C from Ca and the rating for the senior secured facility from Caa1 to Caa2. Moody's said the outlook has been changed to stable. In December 2006, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on German automotive parts supplier Schefenacker AG to 'SD' (selective default) from 'CCC'. At the same time, the rating was removed from CreditWatch, where it had been placed with negative implications on Sept. 12, 2006, following the company's announcement that it had appointed financial-restructuring experts. S&P said the 'C' long-term debt rating on the Schefenacker's EUR200-million subordinated notes maturing in 2014 remains on CreditWatch with negative implications. SCHEFENACKER PLC: Assumes Schefenacker AG's Assets & Debts ---------------------------------------------------------- Schefenacker PLC disclosed its succession to all of the assets, liabilities and obligations of Schefenacker AG. Pursuant to consents received from a majority of the holders of its EUR200-million 9-1/2% Senior Subordinated Notes due 2014, Schefenacker AG and certain of its subsidiaries guaranteeing the Notes executed a Third Supplemental Indenture dated Dec. 15, 2006, to the indenture dated Feb. 11, 2004, in order to facilitate a consensual restructuring. In accordance with the Indenture, Schefenacker PLC confirms that on March 9, 2007, it succeeded to all of Schefenacker AG's obligations in a Fourth Supplemental Indenture dated Feb. 9, 2007. In addition, each of the subsidiary guarantors of the Notes has confirmed their respective guarantees in the Fourth Supplemental Indenture. About Schefenacker Headquartered in Hampshire, United Kingdom, Schefenacker Plc (fka Schefenacker AG) -- http://www.schefenacker.com/-- develops, produces and supplies rear vision systems, lighting systems and sound systems to the world's automotive manufacturers. The company employs 7,900 people and operates 27 sites in Australia, China, France, Hungary, India, Japan, Korea, Mexico, Romania, Slovenia, Spain, the United Kingdom, and the U.S.A. * * * As reported in the TCR-Europe on Feb. 15, Moody's Investors Service downgraded the Corporate Family Rating of Schefenacker AG to Ca from Caa2, the rating on the company's senior subordinated notes to C from Ca and the rating for the senior secured facility from Caa1 to Caa2. Moody's said the outlook has been changed to stable. In December 2006, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on German automotive parts supplier Schefenacker AG to 'SD' (selective default) from 'CCC'. At the same time, the rating was removed from CreditWatch, where it had been placed with negative implications on Sept. 12, 2006, following the company's announcement that it had appointed financial-restructuring experts. S&P said the 'C' long-term debt rating on the Schefenacker's EUR200-million subordinated notes maturing in 2014 remains on CreditWatch with negative implications. ======= P E R U ======= COMVERSE TECH: Reports Preliminary Selected Financial Results ------------------------------------------------------------- Comverse Technology Inc. reported preliminary unaudited selected financial information for the fourth quarter and the full fiscal year ended Jan. 31, 2007, as well as preliminary unaudited selected financial information for the seven preceding fiscal quarters and for the full fiscal year ended Jan. 31, 2006. This preliminary unaudited selected financial information is subject to change, and is based on information currently available to the company. In addition, the company's independent registered public accounting firm has not reviewed or audited the financial information presented herein and, therefore, such financial information may be subject to additional adjustments, which could be material. Since April 2006, the company repeatedly has cautioned investors not to rely upon its historical financial statements and that a Special Committee of the company's Board of Directors has been conducting investigations of the company's stock option practices and related accounting matters (Phase I) and other financial and accounting matters (Phase II). As more fully described, the Special Committee substantially has concluded its investigation of matters related to Phase I and has made a preliminary determination that the company has recorded, in respect of the period from Jan. 1, 1991 through Oct. 31, 2005 (the Restatement Period), a cumulative stock-based compensation expense and related withholding and income tax effects in the aggregate of approximately US$314 million. The Special Committee is continuing its Phase II investigation, announced in mid-November 2006, of other financial and accounting matters, including errors in the recognition of revenue related to certain contracts, errors in the recording of certain deferred tax accounts and the misclassification of certain expenses in earlier periods. In addition, based on information provided to the company, areas of financial reporting under investigation include the possible misuse of accounting reserves and the understatement of backlog in fiscal 2002 and prior periods. Accordingly, additional information discovered in the investigation and the subsequent reviews or audits by the company's independent registered public accounting firm may result in adjustments to the financial information presented herein, and such adjustments could be material. The company believes that the aggregate historical sales and total cash flows as previously reported are not likely to materially change. Presentation of Non-GAAP Financial Measure Comverse Technology provides adjusted (non-GAAP) income from operations as additional information for its operating results. This measure is not in accordance with, or an alternative for, GAAP financial measures and may be different from, or not comparable to similarly titled or other non-GAAP financial measures used by other companies. The company believes that this presentation of adjusted (non-GAAP) income from operations provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations as viewed by management in monitoring the company's businesses. In addition, management uses this non-GAAP financial measure for reviewing the financial results of the company and for budget-planning purposes. Mark C. Terrell, Chairman of Comverse Technology, said, "Year- over-year sales increased and approximately half of that increase was due to the contributions of our recent acquisitions. We recognize that our operating margins have declined to disappointing levels, and addressing this issue is a top priority. The company is committed to maximizing shareholder value and, to this end, is conducting a strategic and operating review of all business units and a comprehensive strategic review of its portfolio, corporate, and capital structure. The company is in the process of a search for a Chief Executive Officer, whose primary mission will be to ensure operational excellence while executing a value-creation strategy." Financial Review The portion of the preliminary unaudited selected financial information on a GAAP basis presented below relating to the first three quarters of fiscal 2005 reflects the impact of the restatement relating to Phase I of the Special Committee's investigation, and therefore differs from amounts previously reported for such periods. Sales The company recorded consolidated sales of US$1,588.6 million for fiscal 2006, a US$394.9 million, or 33%, increase over sales of US$1,193.7 million for fiscal 2005. Sales at the company's Comverse, Inc. subsidiary were US$1,110.9 million for fiscal 2006, a US$321.9 million, or 41%, increase over sales of US$789.0 million for the prior-year period. Sales growth of US$190.8 million was attributable to contributions from Comverse, Inc.'s acquisitions of Kenan (acquired in December 2005) and Netcentrex (acquired in May 2006) since their respective acquisition dates. The company reported consolidated sales of US$415.1 million for its 2006 fourth quarter, a US$79.0 million, or 24%, increase over sales of US$336.1 million for the prior-year period. Sales at the company's Comverse, Inc. subsidiary were US$291.9 million for its 2006 fourth quarter, a US$65.5 million, or 29%, increase over sales of US$226.4 million for the prior-year period. Fourth quarter growth of US$46.4 million was attributable to contributions from Comverse, Inc.'s acquisitions of Kenan and Netcentrex. Consolidated sales for the fiscal 2006 fourth quarter increased US$4.9 million or 1% over sales of US$410.2 million for the third quarter. Sales at the company's Comverse, Inc. subsidiary increased US$2.8 million, or 1%, over sales of US$289.1 million for the previous quarter. Backlog Backlog represents signed purchase orders or customer commitments deemed to be firm that have not yet been recognized as revenues as of the balance sheet date but are expected to be recognized in the next 12 months. Consolidated 12-month orders backlog of US$791.8 million at Jan. 31, 2007, was 1% below the US$798.2 million backlog at the prior year-end, and 12% greater than at Oct. 31, 2006, the prior quarter-end, when it totaled US$706.3 million. Operating Income/Margins Loss from operations on a GAAP basis was US$39.9 million for fiscal 2006, compared to income from operations of US$89.4 million for fiscal 2005. This US$129.3 million decline primarily reflects: * US$52.6 million in Special Committee investigation and related expenses; * an increase in stock-based compensation of US$37.5 million primarily related to the implementation of Statement of Financial Accounting Standards No. 123(R) in fiscal 2006; * the increase in amortization of intangible assets of US$28.3 million primarily attributable to recent acquisitions; and * a royalty settlement for US$23.4 million incurred by Verint Systems Inc., our majority-owned subsidiary. Operating margin on a GAAP basis for fiscal 2006 was negative 2.5%, compared with 7.5% for fiscal 2005. Loss from operations on a GAAP basis was US$18.2 million for the fourth quarter of fiscal 2006, compared to income from operations of US$20.6 million for the prior-year period. This US$38.8 million decline primarily reflects: * US$15.4 million in Special Committee investigation and related expenses; * an increase in stock-based compensation of US$8.6 million primarily related to the implementation of Statement of Financial Accounting Standards No. 123(R) in fiscal 2006; and * the increase in amortization of intangible assets of US$5.6 million primarily attributable to recent acquisitions. Operating margin on a GAAP basis for the fourth quarter fiscal 2006 was negative 4.4%, compared with 6.1% for the prior-year period. Fourth quarter 2006 loss from operations on a GAAP basis widened by US$12.1 million compared to the US$6.1 million loss from operations for the third quarter. Operating margin on a GAAP basis was negative 1.5% for the third quarter. Adjusted (non-GAAP) income from operations was US$136.3 million for fiscal 2006, a 21% increase over adjusted (non-GAAP) income from operations of US$112.4 million for fiscal 2005. Adjusted (non-GAAP) operating margins declined to 8.6% for fiscal 2006 from 9.4% for the prior-year. Adjusted (non-GAAP) income from operations was US$26.6 million for the fourth quarter of fiscal 2006, a 22% decrease from US$34.3 million for the prior-year period. Adjusted (non-GAAP) operating margins declined to 6.4% for the fiscal 2006 fourth quarter from 10.2% the prior year. Fourth quarter 2006 adjusted (non-GAAP) income from operations declined by US$5.0 million from US$31.6 million for the third quarter. Operating margin on an adjusted (non-GAAP) basis was 7.7% for the third quarter. Cash, Cash Equivalents, Bank Time Deposits and Short-Term Investments The company ended fiscal year 2006 with cash and cash equivalents, bank time deposits and short-term investments of US$1,883.0 million, compared to US$2,105.6 million at the prior year-end, for a decrease of approximately US$222.6 million year- over-year. The primary factor in this decrease was acquisitions, net of cash acquired, of approximately US$214.2 million, with other cash flow activities largely offsetting. Debt The company ended the quarter with convertible debt of US$419.6 million. As announced on March 2, 2007, the company has made a cash tender offer for all of its existing Zero Yield Puttable Securities and New Zero Yield Puttable Securities. This tender offer was initiated to satisfy the company's obligations under the Indentures governing the ZYPS as a result of the delisting of Comverse Technology's Common Stock from The NASDAQ Global Market. The company is offering to purchase all of its outstanding ZYPS at a purchase price of US$1,000 in cash for each US$1,000 principal amount of ZYPS tendered. The Offer is scheduled to expire at 5:00 p.m., New York City time, on March 30, 2007, unless extended by the company. Special Items Operating expenses presented on a GAAP basis reflect the incurrence of the following special items: Based on Phase I of the Special Committee's investigation of the company's stock option practices, which is substantially concluded, the company determined that the actual dates of measurement for certain past stock option grants for accounting purposes differed from the recorded grant dates for such awards during the Restatement Period, and also has identified other accounting errors related to stock-based compensation. As a result, the company has recorded incremental cumulative stock- based compensation expense and related withholding and income tax effects in the aggregate of approximately US$314 million for the Restatement Period, including an accrual of approximately US$49 million for the estimated liability for withholding taxes and related penalties and interest. Stock-based compensation expense and related withholding and income tax effects for the nine months ended Oct. 31, 2005, was approximately US$2.6 million which was included in the aforementioned US$314 million for the Restatement Period. Because of limitations on the company's ability to issue equity- based compensation prior to regaining compliance with its reporting obligations under the federal securities laws, the Boards of Directors of the company and certain of its subsidiaries authorized additional cash compensation in lieu of equity-based compensation as a key employee retention tool in the aggregate amount of approximately US$61.9 million, of which approximately US$17 million has been previously authorized and disclosed by the company's Verint Systems subsidiary. In the fourth quarter of fiscal year 2006, US$6.9 million of this retention compensation was charged as an expense, and we expect the balance to be recorded in the fiscal year ending Jan. 31, 2008. At Jan. 31, 2007, Comverse Technology (including its subsidiaries) had approximately 7,450 employees. Special Committee investigation and related expenses totaled approximately US$52.6 million for fiscal 2006, and US$15.4 million for the three months ended Jan. 31, 2007. Approximately US$23.4 million was incurred by Verint Systems during the second quarter of fiscal 2006 in respect of a payment to The Office of the Chief Scientist of the Ministry of Industry and Trade of the State of Israel in settlement of royalty payments otherwise due to the OCS related to the sale of certain products developed using, in part, funding extended under OCS programs, as disclosed by Verint on July 28, 2006. The Phase II investigation is ongoing and is expected to be completed by late next month or early May 2007. The company intends to issue final results and file its Quarterly Reports on Form 10-Q for the quarterly periods ended April 30, 2006, July 31, 2006 and Oct. 31, 2006, and issue final results and file its Annual Reports on Form 10-K for the fiscal years ended Jan. 31, 2006, and 2007, together with any restated historical financial statements, as soon as practicable. Comverse Technology, Inc. -- http://www.comverse.com/-- (NASDAQ: CMVT) through its Comverse, Inc. subsidiary, provides software and systems enabling network-based multimedia enhanced communication and billing services. The company's Total Communication portfolio includes value-added messaging, personalized data and content-based services, and real-time converged billing solutions. Over 450 communication and content service providers in more than 120 countries use Comverse products to generate revenues, strengthen customer loyalty and improve operational efficiency. Other Comverse Technology subsidiaries include: Verint Systems (NASDAQ: VRNT), which provides analytic software-based solutions for communications interception, networked video security and business intelligence; and Ulticom (NASDAQ: ULCM), which provides of service enabling signaling software for wireline, wireless and Internet communications. In Latin America, Comverse has operations in Argentina, Brazil, Mexico and Peru. * * * As reported in the Troubled Company Reporter on Feb. 2, 2007, Standard & Poor's Ratings Services kept its 'BB-' corporate credit and senior unsecured debt ratings on New York, New York- based Comverse Technology Inc. on CreditWatch with negative implications, where they were placed on March 15, 2006. ===================== P U E R T O R I C O ===================== ANGIOTECH PHARMA: Picks Santo Corsaro as Sales & Marketing VP ------------------------------------------------------------- Angiotech Pharmaceuticals Inc. has appointed Santi Corsaro as Vice President, Sales and Marketing OUS. With his considerable experience in the health care industry, including direct experience in wound closure, medical device and drug-eluting stent markets, Dr. Corsaro brings to Angiotech his extensive sales and marketing expertise gained from his senior roles at multinational corporations in Europe. "We are pleased to announce this important hire for Angiotech, which sets the groundwork for growth of our key products in Europe, including the VaxSys Synergy(R) and Quill(R) SRS product lines. We believe that our ability to attract this calibre of talent is further evidence of the validity of our long-term business and commercialization strategy," said Dr. William Hunter, President and CEO of Angiotech. As Vice President, Sales and Marketing OUS, Dr. Corsaro will oversee Angiotech's European commercial operations. It is anticipated that he will lend his experience to initiate a profitable growth strategy on a country-by-country basis, build local sales organizations and marketing teams, and establish direct sales subsidiaries in key European countries. Prior to joining Angiotech, Dr. Corsaro spent over 20 years working for the Johnson & Johnson (J&J) Group in Europe. Most recently, Dr. Corsaro was President and Managing Director of J&J Medical Holding SpA Italy, where he was responsible for merging four different J&J organizations under a single legal entity. Prior to this, Dr. Corsaro was the European President of Cordis, a subsidiary of J&J, where he managed 300 employees and was responsible for reorganizing the European Cordis structure and increasing drug-eluting stent adoption rates. Dr. Corsaro was also Worldwide President for J&J's A.S.P. (Advanced Sterilization Products) Company. At J&J's Ethicon Division, Dr. Corsaro held a series of increasingly senior positions culminating with his role as European President, Ethicon Endo Surgery based in Hamburg, Germany, where he managed 570 employees with direct reporting countries of the UK, Germany, France, Italy and provided marketing support to all other European countries. Angiotech Pharmaceuticals, Inc., founded in 1992, based in Vancouver, Canada, is a specialty pharmaceutical company that focuses on drug-device combinations and drug-loaded surgical biomaterial implants. The company reported over US$315 million in total revenue for the twelve months ended Dec. 31, 2006. Following the acquisition of American Medical Instruments Holdings, Inc. in the first quarter of 2006, Angiotech expanded beyond its strong R&D capabilities to encompass the manufacturing and marketing of a wide range of single use, specialty medical devices. Angiotech has several specialized direct sales and distribution organizations in Puerto Rico, the United States, the United Kingdom, Denmark and Switzerland, as well as significant manufacturing capabilities. * * * As reported in the Troubled Company Reporter-Latin America on March 15, 2007, Moody's downgraded these ratings: -- Corporate Family Rating, B2 from B1 -- Probability of Default Rating, B1 from Ba3 -- US$325 Senior Unsecured Notes, B1, LGD3, 46% from Ba3 -- US$250 Senior Subordinated Notes, B3, LGD6, 91% from B2 Moody's affirmed these ratings: -- Speculative Grade Liquidity assessment, SGL-3 -- Family LGD assessment LGD4, 65% Moody's said the ratings outlook is stable. COVENTRY HEALTH: To Release First Quarter Results on April 27 ------------------------------------------------------------- Coventry Health Care Inc. will release first quarter financial results on Friday, April 27, 2007. Dale Wolf, Coventry's Chief Executive Officer, will be hosting a conference call at 8:30 a.m. ET on that day. To listen to the call, dial toll-free at (800) 289-0569 or, for international callers, (913) 981-5542. Callers will be asked to identify themselves and their affiliations. The conference call will also be broadcast over the Internet from Coventry's Investor Relations Web site. Coventry asks participants on both the call and web cast to review and be familiar with its Securities and Exchange Commission filings. A replay of the call will be available for one week at (888) 203-1112 or, for international callers, (719) 457-0820. The access code is 9184631. Headquartered in Bethesda, Maryland, Coventry Health Care, Inc. (NYSE: CVH) -- http://www.cvty.com/-- is a national managed health care company operating health plans, insurance companies, network rental/managed care and workers' compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services, including HMO, PPO, POS, Medicare Advantage, Medicare Prescription Drug Plans, Medicaid, Workers' Compensation services and Network Rental to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators in all 50 states as well as the District of Columbia and Puerto Rico. * * * As reported in the Troubled Company Reporter-Latin America on March 21, 2007, Fitch Ratings has upgraded the Issuer Default Rating of Coventry Health Care Inc. to 'BBB' from 'BB+'. Existing senior notes are also upgraded to 'BBB-' from 'BB'. Fitch also assigns a 'BBB-' rating to Coventry's recent issuance of US$400 million of 5.95% senior unsecured notes. The Rating Outlook is Stable. A.M. Best Co. has assigned a debt rating of "bb+" to Coventry Health Care, Inc.'s US$400 million 5.95% senior unsecured notes, which will mature in 2017. The rating outlook is positive. Coventry Health's and its subsidiaries' financial strength, issuer credit and remaining debt ratings are unchanged. As reported in the Troubled Company Reporter-Latin America on March 19, 2007, Moody's Investors Service has assigned a Ba1 senior unsecured debt rating to Coventry Health Care, Inc.'s (NYSE: CVH) issuance of $400 million of new long term debt. The outlook on the rating is positive. MEDIRECT LATINO: Appoints New Members to Board of Directors ----------------------------------------------------------- MEDirect Latino Inc. has disclosed that Mr. Ruben Jose King-Shaw Jr., Mr. Daniel "Dan" Gordon, Mr. Robert Webb and Mr. Robert Lautz are joining the company's current Board of Directors: Ms. Debra L. Towsley, Mr. Charles W. Hansen III and Mr. Raymond J. Talarico. Ruben Jose King-Shaw Jr. currently serves as Chairman and CEO of Mansa Equity Partners, Inc., a health care private equity investment and advisory firm with offices in Carlisle, MA and Tallahassee, FL. Mr. King-Shaw has advised governments and companies throughout the United States, Caribbean, South Africa and Latin America on matters of business development and strategy, mergers and acquisitions, and health care policy. Mr. King-Shaw served in the George W. Bush Administration from 2001 to 2003 where he led many of President Bush and HHS Secretary Tommy G. Thompson's government-sponsored health care initiatives as Deputy Administrator and Chief Operating Officer of the Centers for Medicare and Medicaid Services. Ruben also served as Senior Advisor to the Secretary of the Treasury, where he led the Administration's Health Coverage Tax Credit policies to assist the uninsured. Ruben was also a member of the President's New Freedom Commission on Mental Health and a major spokesperson and policy advisor for the Administration on the topics of health care disparities, Medicare and Medicaid reform, prescription drug policy, rural and immigrant labor healthcare and commercial insurance market reform. Mr. King-Shaw remains active in public service. New York Governor George Pataki appointed Mr. King-Shaw to the New York State Commission on Health Care Facilities in the 21st Century in May of 2005. The Commission is charged by the Legislature to submit a plan to redesign the State's hospital and nursing home system. Massachusetts Governor Mitt Romney appointed Mr. King Shaw to the University Of Massachusetts Board Of Trustees in September of 2005, where he chairs the UMass Board's Committee on Academic and Student Affairs. Mr. King-Shaw is a member of the Cornell University Council and the Advisory Council at Cornell University's School of Industrial and Labor Relations. Abbott Laboratories named Mr. King-Shaw to their Health Policy Board in 2005. In addition, Mr. King-Shaw is a director of both the Scripps Florida Funding Corporation and the Florida Education Foundation. Prior to joining the George W. Bush Administration, Mr. King- Shaw was the Secretary of the Florida Agency for Health Care Administration. The Agency is responsible for Florida's Medicaid, Health Quality Assurance, facility regulation, intergovernmental transfers and managed care regulation activities. He was appointed to head the Agency by Governor Jeb Bush on Dec. 30, 1998. Robert Webb is the CEO of Health Solutions Group, an operating unit of UnitedHealth Group which coordinates network-based health and well-being services on behalf of mid-sized and small employers, as well as individual and families. Previously, Mr. Webb worked in private equity as a partner with One Equity Partners, and, prior to that, Equity Group Investments. He holds an MBA from The Kellogg School at Northwestern University, and Bachelors in Mechanical Engineering from the University of Minnesota. Daniel "Dan" Gordon was appointed to the Board of Commissioners of the North Broward Hospital District by Governor Jeb Bush in 2005. The NBHD has provided service for more than 50 years as a community health system offering a full spectrum of healthcare services. One of the 10 largest public health systems in the United States, the NBHD encompasses more than 30 healthcare facilities, including Broward General Medical Center, North Broward Medical Center, Imperial Point Medical Center, Coral Springs Medical Center, Chris Evert Children's Hospital and Weston Regional HealthPark. Commissioner Gordon was born in Miami and raised in Broward County, Florida. He graduated from Pompano Beach High School and earned an associate degree from Broward Junior College (now Broward Community College). He received his Bachelor of Business Administration from Florida Atlantic University. Commissioner Gordon is a Certified Property Casualty Underwriter with Bateman, Gordon and Sands insurance agency in Pompano Beach, Florida. He is past president of the Greater Pompano Beach Chamber of Commerce, the Pompano Economic Group and the Pompano Beach Rotary. He is president of the First Presbyterian Church Foundation in Pompano Beach. Robert Lautz is a co-founder and Managing Director of St. Cloud Capital, a Los Angeles based private investment firm. Mr. Lautz was formerly the Chairman of REO.com, the nation's leading Internet-based sales mechanism for bank foreclosed properties. Prior to that, Mr. Lautz served as the CEO of ListingLink, the original Internet-based residential property multiple listing services. Mr. Lautz formed and served as Chairman and CEO of Indenet, Inc., a NASDAQ listed private satellite-based network that delivered digital advertisements and programming to the 3000+ national broadcast and cable television networks. Mr. Lautz also owned and operated Peerless Capital, a venture capital business which invested in various management led leveraged buyouts and private equity transactions. Mr. Lautz has extensive experience serving on the board of directors of both private and public companies. Mr. Lautz earned a Master's degree from the American Graduate School of International Management (Thunderbird), and a B.S. in Business Administration from Miami University in Oxford, Ohio. In announcing the new Directors to MEDirect Latino's Board, Chairman and Executive Vice President, Mr. Raymond Talarico stated, "We are indeed fortunate to have individuals of such high caliber join our Board. We look forward to the wide range of knowledge and diverse experience each member has to offer the Company and our shareholders. MEDirect is a young company which at times has been challenged to effectively manage our explosive growth. Each new board member, through their involvement as founders, operators, executive officers and consultants to a wide variety of businesses and government agencies has dealt extensively with issues related to healthcare, valuation, strategy, growth and corporate governance and thereby will significantly strengthen MEDirect's strategic platform. We are honored that individuals of such high quality and experience, who believe in the Company's vision, are joining with our existing management board members to steward our plan and broaden our expectations for MEDirect Latino well into the future." Pursuant to the filing requirements of Section 14(c) of the Exchange Act of 1934, as Amended, the company has completed a filing of an Information Statement setting forth the Election of four additional directors to the Company's Board. The Directors were elected pursuant to consent of the majority of the Shareholders and all of the Directors dated March 22, 2007. Headquartered in Pompano Beach, Florida, Medirect Latino, Inc. (Pink Sheets: MLTO) -- http://www.medirectlatino.org./-- is an early stage company. It is a federally licensed, direct-to- consumer, participating provider of Medicare Part B Benefits primarily focused on supplying diabetic testing supplies to the Hispanic Medicare-eligible community domestically and in Puerto Rico. 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. The company was formerly known as Interaxx Digital Tools, Inc., one of four stand alone companies resulting from a second joint plan of reorganization filed under Chapter 11 of the bankruptcy code. The reorganization was treated as a reverse merger and subsequently, Interaxx Digital changed its name to Medirect Latino, Inc. as the new operating entity. Going Concern Doubt As reported in the Troubled Company Reporter-Latin America on Nov. 28, 2006, Berkovits, Lago & Company, LLP, expressed substantial doubt about Medirect Latino Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the fiscal year ended June 30, 2006. The auditing firm pointed to the company's inability to obtain outside long term financing and recurring losses from operations. ================================= T R I N I D A D & T O B A G O ================================= MIRANT CORP: Court Approves Mirant NY-Gen's Disclosure Statement ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas approved an Amended Disclosure Statement explaining Mirant NY- Gen LLC's Amended Chapter 11 Plan of Reorganization on March 22, 2007. Mirant NY-Gen filed the Amended Disclosure Statement and Plan on March 21, 2007. Judge Lynn held that the Amended Disclosure Statement contains "adequate information" within the meaning of Section 1125 of the Bankruptcy Code. No objections to the Disclosure Statement were filed. Additional Plan Provisions The Amended Disclosure Statement and Plan disclose (i) risk factors associated with the Plan, (ii) properties subject to easements, and (iii) the estimation of an Unsecured Creditor Amount. The Amended Plan also incorporates details of the auction of Mirant New York Inc.'s membership interest in Mirant NY-Gen, and a provision for executory contracts and unexpired leases. The Amended Plan provides that there is a risk that actual payments to certain Creditors under the Plan may be materially less than 100%. As previously reported, the Plan provides for payment in full on all Class 4 -- General Unsecured Claims and Claims for Administrative Expenses -- as well as for other Claims, except affiliates unsecured claims and the DIP Secured Claim. Mirant NY-Gen proposes to establish a Plan Carve-Out, which consists of two funds -- the Unsecured Creditor Amount and the Other Amount -- to pay all Claims, except Fee Claims and the DIP Secured Claim. At the Confirmation Hearing, the Court will determine whether the Amended Plan is feasible to pay Claims as proposed by the Plan, and in this regard, will determine the adequacy of the Plan Carve-Out to satisfy Claims as proposed by the Plan. The Amended Plan further proposes that the Plan Carve-Out will not be increased after the Plan is confirmed. Because the amount of certain Claims may be unknown as of the date of the Confirmation Hearing, the Plan Carve-Out approved or set by the Court may not contain sufficient funds to pay all claims that ultimately become Allowed Claims. In this event, the Amended Plan provides that Creditors will receive a pro-rata share of their Allowed Claim, which would be materially less than 100% of their Allowed Claims. Estimation of Unsecured Creditor Amount The Amended Plan provides that the determination of the sufficiency of the Unsecured Creditor Amount and the Other Amount as currently proposed, or as set by the Court, and of the amount needed to fund each category of the Other Amount by the Court will be conclusive. Neither Mirant NY-Gen, Mirant New York, Mirant Americas, nor Alliance Energy will be liable for Allowed Claims exceeding the amounts set for the Unsecured Creditor Amount or any Other Amount category. To the extent necessary to determine feasibility of the Plan and the adequacy of a Plan carve-out to pay relevant claims, and to determine other confirmation issues, the Amended Plan will constitute Mirant NY-Gen's request to estimate Claims for all relevant purposes pursuant to Section 502(c) of the Bankruptcy Code. Moreover, the Amended Plan provides that: * any monetary defaults -- the cure amount -- under each executory contract and unexpired lease to be assumed under the Plan will be an administrative expense and will be treated and satisfied pursuant to Section 365(b) of the Bankruptcy Code; * Mirant NY-Gen owns several properties subject to various easements, licenses, and preservation Zones: (1) Swinging Bridge Hydroelectric Power Station: * Cliff Lake in New York; * Toronto in New York; and * Swinging Bridge in New York, (2) Mongaup Hydroelectric Power Station, (3) Rio Hydroelectric Power Station, (4) Hillburn Gas Turbine Power Station, (5) Shoemaker Gas Turbine Power Station; and * pursuant to a sales procedure order, Mirant New York conducted the Membership Interest Auction on March 5, 2007, wherein Alliance Energy Renewables, LLC, was entitled to credit bid for US$250,000 towards the purchase price. Consequently, Alliance Energy's bid for US$5,100,000 was determined to be the prevailing bid, and Judge Gropper approved the Membership Interest Sale on March 13, 2007. A full-text copy of Mirant NY-Gen's Amended Disclosure Statement is available for free at http://researcharchives.com/t/s?1c18 A full-text copy of Mirant NY-Gen's Amended Plan is available for free at http://ResearchArchives.com/t/s?1c17 About Mirant Corp. Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE: MIR) -- http://www.mirant.com/-- is an energy company that produces and sells electricity in North America, the Caribbean, and the Philippines. Mirant's investments in the Caribbean include three integrated utilities and assets in Jamaica, Grand Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases more than 18,000 megawatts of electric generating capacity globally. Mirant Corporation filed for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of a confirmed Second Amended Plan on Jan. 3, 2006. Thomas E. Lauria, Esq., at White & Case LLP, represented the Debtors in their successful restructuring. When the Debtors filed for protection from their creditors, they listed US$20,574,000,000 in assets and US$11,401,000,000 in debts. The Debtors emerged from bankruptcy on Jan. 3, 2006. Mirant NY-Gen, LLC, Mirant Bowline, LLC, Mirant Lovett, LLC, Mirant New York, Inc., and Hudson Valley Gas Corporation, were not included and have yet to submit their plans of reorganization. (Mirant Bankruptcy News, Issue No. 117; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) MIRANT CORP: NY-Gen's Plan Confirmation Hearing Set for April 25 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas will convene a hearing to consider confirmation of Mirant NY-Gen LLC's Amended Plan on April 25, 2007, at 1:30 p.m., Prevailing Central Time. Objections to the Plan are due April 18, at 4:00 p.m. The Court also sets April 18, 2007, as the voting deadline. Ballots to accept or reject the Plan must be received by Forshey & Prostok LLP, Mirant NY-Gen's tabulation agent, on the Voting Deadline, no later than 4:00 p.m., Prevailing Central Time. Ballots not received by the Voting Deadline will not be counted, except upon further Court order. Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE: MIR) -- http://www.mirant.com/-- is an energy company that produces and sells electricity in North America, the Caribbean, and the Philippines. Mirant's investments in the Caribbean include three integrated utilities and assets in Jamaica, Grand Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases more than 18,000 megawatts of electric generating capacity globally. Mirant Corporation filed for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of a confirmed Second Amended Plan on Jan. 3, 2006. Thomas E. Lauria, Esq., at White & Case LLP, represented the Debtors in their successful restructuring. When the Debtors filed for protection from their creditors, they listed US$20,574,000,000 in assets and US$11,401,000,000 in debts. The Debtors emerged from bankruptcy on Jan. 3, 2006. Mirant NY-Gen, LLC, Mirant Bowline, LLC, Mirant Lovett, LLC, Mirant New York, Inc., and Hudson Valley Gas Corporation, were not included and have yet to submit their plans of reorganization. (Mirant Bankruptcy News, Issue No. 119; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ================= V E N E Z U E L A ================= * VENEZUELA: Plans Joint Refineries with China ---------------------------------------------- Venezuela and China plan to build three refineries in China to process heavy crude drilled from the Latin American nation's Orinoco oil belt, Bloomberg News reports. State-oil firm Petroleos de Venezuela S.A. and China National Petroleum Corp. are also planning to build oil tankers that would carry the heavy crude for refining in China, the same report says. In October 2006, Petroleos de Venezuela and China National started exploratory drilling in the Junin 4 block in the Orinoco belt. The Venezuelan government has been looking for an alternative market for its oil exports to cut dependence on the United States, which currently is its biggest customer. * * * 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. * VENEZUELA: To Complete Orinoco Nationalization in Six Months -------------------------------------------------------------- The Venezuelan government is finishing within six months the takeover of the heavy oil projects in the Orinoco Basin, Dow Jones Newswire reports, citing oil minister Rafael Ramirez as saying. Citing Mr. Ramirez, Dow Jones relates that the completion of the takeover process is expected to be finished within six months. The official state takeover is scheduled for May 1 and the talks about settling the details might be extended for four months after that. The minister also adds that there were pending talks with foreign oil companies on compensation for reduced ownership of the projects. "It is still unclear how the Venezuelan government will compensate Orinoco operators," says Mr. Ramirez. Compensation, Mr. Ramirez notes, could include participation in downstream projects, upstream operating areas, or settlement of debts and claims. According to the report, state-owned Petroleos de Venezuela S.A. are required to be in charge of the four heavy oil projects in the Orinoco following an issued presidential decree earlier this month. Venezuela's stake in the projects would raise to at least 60% as required by the decree. The action has provided big oil companies with major implications. Mr. Ramirez disclosed that during last year's discussions related to the government's decision about the nationalization terms of the Orinoco projects, industries had refused to participate the said event. He mentioned that it paved the way to production expansion of Venezuela's heavy crude oil reserves, however, he expected most foreign oil companies to stay in the Orinoco Vasin, Dow Jones says. According to Mr. Ramirez, there are 4 billion barrels of certified reserves in the four Orinoco projects. He is confident that the companies could recover more. Dow Jones states that the Orinoco Belt has 274 billion barrels in reserves, making it the largest oil deposit in the world as claimed by the Venezuelan government. * * * 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. * Banco del Sur Creates Apprehension in Banking Industry -------------------------------------------------------- Officially, the Inter-American Development Bank and the Andean Development Corporation, two of the biggest lending institutions in Latin America, have welcomed news of the creation of the so- called Banco del Sur. But privately, there are concerns, the Financial Times reports. The development of Banco del Sur was initiated by Venezuelan President Hugo Chavez, which later got the support of Argentina, Bolivia, Brazil, Ecuador and Paraguay. Banco del Sur will provide financing for regional projects in areas like infrastructure and human development. An insider quoted by the FT said the creation of the regional bank could reinforce divisions that resulted from Venezuela's anti-American campaigns. "With the money of Venezuela and political will of Argentina and Brazil, this is a bank that could have lots of money and a different political approach. No one will say this publicly but we don't like it," the unnamed source told the FT. Venezuela's Finance Minister Rodrigo Cabeza disclosed last week that the new bank would probably distribute loans as early as next year. "It is going to happen," Mr Cabeza was quoted by the FT as saying. "It will allow us to dispense with the conditions that the multilaterals [such as the IDB and the World Bank] attach to loans. It will deepen financial and economic integration." Critical to the issue is whether Brazil would participate in the new financial institution. The bank insider told the FT that if Brazil would join, the IDB would face its biggest threat since the debt defaults in the 1980s. Brazil's planning minister, Paulo Bernardo, stated that an alternative to Banco del Sur is "the strengthening of the CAF." Brazil has recently become a shareholder of the CAF -- a move that would add about US$1 billion to the institution's paid-in capital. * BOND PRICING: For the Week March 19 to March 23, 2007 --------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARG Boden 2.000 9/30/08 ARS 55.8555 Argent-Par 0.630 12/31/38 ARS 57.3500 Vontobel Cayman 18.600 4/30/07 USD 74.9000 Vontobel Cayman 10.400 12/28/07 CHF 74.5000 Vontobel Cayman 10.700 12/28/07 CHF 66.1500 Vontobel Cayman 11.200 12/28/07 CHF 71.1000 Vontobel Cayman 11.850 12/28/07 CHF 68.1500 Vontobel Cayman 22.850 12/28/07 CHF 46.2000 * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Shareholders Total Equity Assets Company Ticker (US$MM) (US$MM) ------- ------ ------------ ------- Arthur Lange ARLA3 (8.88) 56.71 Kuala ARTE3 (33.57) 11.86 Bombril BOBR3 (781.53) 473.67 Chiarelli SA CCHI3 (58.72) 36.44 CIC CIC (1,883.69) 22,312.12 Telefonica Hldg CITI (1,481.31) 307.89 Telefonica Hldg CITI5 (1,481.31) 307.89 SOC Comercial PL COME (738.69) 456.86 DTCOM-DIR To CO DTCY3 (6.05) 10.04 Aco Altona EALT3 (64.92) 92.96 Estrela SA ESTR3 (63.08) 112.36 F Guimaraes FGUI3 (224.56) 24.63 Bombril Holding FPXE3 (1,064.31) 41.97 CIMOB Partic SA GAFP3 (44.38) 121.74 Gazola GAZ03 (43.13) 22.28 Hercules HETA3 (233.64) 33.23 DOC Imbituba IMBI3 (19.84) 192.80 IMPSAT Fiber Networks IMPTQ (17.16) 535.01 Kepler Weber KEPL3 (22.20) 478.81 Minupar MNPR3 (83.99) 62.75 Wetzel SA MWET3 (21.35) 116.85 Nova America SA NOVA3 (266.34) 42.47 Paranapanema SA PMAM3 (53.36) 3,268.96 Paranapanema-PREF PMAM4 (53.36) 3,268.96 Telebras-CM RCPT RCTB30 (59.79) 228.35 Schlosser SCL03 (55.17) 51.93 Teka TEKA3 (236.45) 540.81 Telebras SA TELB3 (59.79) 228.35 Telebras-CM RCPT TELE31 (59.79) 228.35 Telebras SA TELE41 (59.79) 228.35 Tectoy TOYB3 (51.84) 18.72 TEC Toy SA-Pref TOYB5 (51.84) 18.72 TEC Toy SA-PF B TOYB6 (51.84) 18.72 Tectoy SA TOYBON (51.84) 18.72 Texteis Renaux TXRX3 (65.19) 75.90 Varig SA VAGV3 (8,194.58) 2,169.10 FER C Atlant VSPT3 (171.69) 1,940.75 WIEST WISA3 (92.66) 107.73 *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande de los Santos, Christian Toledo, and Junald Ango, Editors. Copyright 2076. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *