/raid1/www/Hosts/bankrupt/TCRLA_Public/070329.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, March 29, 2007, Vol. 8, Issue 63
Headlines
A R G E N T I N A
ARROW ELECTRONICS: Moody's Affirms Low B Provisional Ratings
BUENOS AIRES CRIOLLO: Claims Verification Deadline Is May 16
CALZADOS MATHIUS: Proofs of Claim Verification Ends on May 3
CASTIMAR SACF: Trustee Verifies Proofs of Claim Until April 20
CENTER WASH: Proofs of Claim Verification Ends on May 14
DANA CORP: Unit Amends Joint Venture Agreement with Dongfeng
FLORMAN SA: Proofs of Claim Verification Deadline Is June 4
GETTY IMAGES: S&P Holds B+ Corp. Credit Rating on CreditWatch
ILDA SRL: Trustee Verifies Proofs of Claim Until May 4
KONINKLIJKE AHOLD: Earns EUR915 Million for Full Year 2006
MANDATARIOS DE SERVICIOS: Claims Verification Ends on May 4
MANTENIMIENTOS INDUSTRIALES: Individual Reports Due in Court Tom
ONTARIO GROUP: Proofs of Claim Verification Deadline Is May 29
PACKAGING PAPER: Seeks Court Approval for Reorganization
PEDRO CASADO: Proofs of Claim Verification Is Until April 13
PETROBRAS ENERGIA: Crude Oil Production Suspended in Ecuador
PRODOM SA: Proofs of Claim Verification Ends on May 21
RETAIL PHARMA: Proofs of Claim Verification Ends on May 7
SANTAX SRL: Claims Verification Deadline Moved to April 30
SATELITAL SA: Proofs of Claim Verification Deadline Is June 4
SENNIC SA: Trustee to Present General Report in Court Tomorrow
SUADIR SA: Trustee To Present Individual Reports in Court Tom
TELECOM ARGENTINA: Picks Oracle to Support Internet Services
TEXAL SA: Reorganization Proceeding Concluded
* ARGENTINA: Gets US$100-Million Loan from World Bank
* ARGENTINA: Inks Pipeline Construction Contract with Bolivia
B E L I Z E
CONTINENTAL AIRLINES: Deploys Self Check-In Stalls in Belize
B E R M U D A
FOSTER WHEELER: Subsidiary Taps Michael Stacey to Board
QUANTA CAPITAL: Milberg Weiss to Probe Class Action Lawsuits
B O L I V I A
PETROLEOS DE VENEZUELA: Pays US Consultant to Advise Bolivia
* BOLIVIA: Inks Pipeline Construction Contract with Argentina
* BOLIVIA: Venezuelan Firm Pays US Consultant to Advise Nation
B R A Z I L
BANCO BRADESCO: Paying Monthly Interest Due on May 2
BANCO DO BRASIL: Will Conduct 3-for-1 Stock Split
BANCO VOTORANTIM: Moody's Puts Ba1 Rating on Global Note Program
BLOCKBUSTER INC: S&P Raises Corporate Credit Rating to B from B-
COMPANHIA ENERGETICA: Can Present Privatization Model in 4 Mos.
COMPANHIA PARANAENSE: Will Meet Shareholders on April 27
COMPANHIA SIDERURGICA: Blast Furnace Mishap to Harm 2006 Results
DURA AUTOMOTIVE: RSM Richter Delivers 2nd Report to Ontario Ct.
DURA AUTOMOTIVE: Lease-Decision Period Extended to May 28
DURA AUTOMOTIVE: Banner & Witcoff Okayed as Special IP Counsel
EL PASO: Will Pump First Oil in Camamu Basin in 2008
PETROLEO BRASILEIRO: Investing BRL3.12 Billion in Santos Unit
PETROLEO BRASILEIRO: Signs Joint Biofuel Deal with Eni
PETROLEO BRASILEIRO: Wants 15-Year Reserves-Production Ratio
PRG SCHULTZ: Dec. 31 Balance Sheet Upside-Down by US$104.5-Mil.
RHODIA SA: Presents Mulhouse Dornach Closure Plans
RHODIA SA: S&P Affirms B+ Ratings on Continuing Improvements
TELE NORTE: Government May Help Company on Way Brasil Purchase
* BRAZIL: Federal Court Orders Closure of Cargill's Terminal
* BRAZIL: Gov't May Help Tele Norte on Way Brasil Acquisition
* RIO DE JANEIRO: Moody's Affirms Ba3 Currency Issuer Ratings
C A Y M A N I S L A N D S
GGR HOLDINGS: Will Hold Last Shareholders Meeting on April 20
INVESTCORP HILDING: Sets Last Shareholders Meeting for May 1
LIBERTYVIEW GLOBAL: Last Shareholders Meeting Is on April 20
LOANINVEST LTD: Will Hold Last Shareholders Meeting on April 20
PARMALAT SPA: Converted Warrants Hike Share Capital by EUR6 Mln
PARMALAT SPA: Eyes Acquisitions & Investments This Year
RYMSLECT SPC: Proofs of Claim Filing Is Until April 30
C H I L E
FREEPORT-MCMORAN: Moody's Raises Corporate Family Rating to Ba2
GOODYEAR TIRE: Moody's Affirms B1 Corporate Family Rating
C O L O M B I A
NOVELL INC: Gets Additional Non-Compliance Notice from Nasdaq
TOWER RECORDS: Files Disclosure Statement in Delaware
VOTORANTIM PARTICIPACOES: Wins Acerias' Stake for US$485 Million
* COLOMBIA: Votorantim Wins Acerias Paz's 52% Stake for US$485MM
C O S T A R I C A
US AIRWAYS: Names Robert Martens as Senior VP & President
D O M I N I C A N R E P U B L I C
BANCO LEON: Launches New Service Branch in La Sirena Store
E C U A D O R
PETROBRAS ENERGIA: Block 18 Production Suspended Due to Protests
PETROECUADOR: Unit Starts Drilling Eden Yuturi Field
G U A T E M A L A
BRITISH AIRWAYS: S&P Retains BB+ Ratings After Open Skies Vote
M E X I C O
AMERICAN AIRLINES: Moody's Lifts Corporate Family Rating to B2
DAIMLERCHRYSLER AG: General Motors Will Not Bid for Chrysler
VISTEON CORP: S&P Puts B+ Rating on Proposed US$500MM Term Loan
WCM BETEILIGUNGS: To Sell Stakes in Maternus-Kliniken & YMOS
* MEXICO: S&P Says Consumer Demand Drives Auto Finance Growth
P A N A M A
CHIQUITA BRANDS: Shows Interim Price & Volume Data for 1st Qtr.
P U E R T O R I C O
ADVANCED CARDIOLOGY: Hires Alexis Hernandez as Bankr. Counsel
ADVANCED CARDIOLOGY: Can Hire Reyes-Ramis Silvagnoli as Auditor
ALLIED WASTE: Moody's Puts Ba3 Ratings on Amended Sr. Facilities
GLOBAL HOME: Court OKs Sale of Anchor Hocking to Monomoy Capital
U R U G U A Y
ROYAL & SUN: Unveils Scrip Dividend Scheme for Ordinary Shares
V E N E Z U E L A
DAIMLERCHRYSLER AG: Plans to Keep Chrysler Ties Following Sale
LEAR CORP: Pzena Presents Objections to Lear-AREP Merger Deal
PETROLEOS DE VENEZUELA: Buys Seismic Equipment from Belarus
PETROLEOS DE VENEZUELA: Cantv's Small Investors May Keep Shares
PETROLEOS DE VENEZUELA: Net Profit Drops to US$4.7 Bil. in 2006
- - - - -
=================
A R G E N T I N A
=================
ARROW ELECTRONICS: Moody's Affirms Low B Provisional Ratings
------------------------------------------------------------
Moody's Investors Service affirmed the (P)Ba1, (P)Ba2 and
(P)Baa3 Shelf Registration Ratings to Arrow Electronics, Inc.'s
subordinated, preferred, and senior unsecured stocks
respectively.
Moody's also affirmed the Baa3 senior long-term debt rating of
Arrow Electronics and revised the outlook to positive from
stable.
These ratings were affirmed:
-- Senior unsecured debt at Baa3
-- Shelf registration for senior unsecured, subordinated,
and preferred stock at (P)Baa3, (P)Ba1 and (P)Ba2,
respectively
"The positive outlook reflects Moody's expectation that Arrow's
operating performance will continue to benefit from the secular
outsourcing trend underway in the semiconductor space, favorable
product mix, an expanded line card from recent acquisitions and
increasing geographic diversity that collectively support
operating margins above 4%," Moody's Vice President & Senior
Analyst Gregory Fraser said. "The positive outlook also
considers realized operating efficiency improvements that have
resulted in sustained operating margin and Return On Assets
expansion, improved credit protection measures, higher gross
cash flow levels and an enhanced business model that has the
propensity to deliver operating margin stability and consistent
levels of positive free cash flow especially during periods of
industry weakness."
Moody's expects Electronics to continue to maintain focused on
balance sheet de-leveraging via free cash flow generation
targeted towards debt reduction and/or higher operating cash
flow.
The outlook revision also recognizes the company's improved
operating leverage and enhanced market position as the leading
distributor of enterprise product solutions for both IBM and
Hewlett-Packard following the planned acquisition of the
Agilysys KeyLink Systems Group. It is Moody's understanding
that the US$485 million Agilysys KeyLink acquisition will be
funded through a combination of debt and cash. Although debt
will increase, the purchase is not expected to materially weaken
Arrow Electronics' credit protection measures and internal
liquidity given the additive cash flow from Agilysys KeyLink.
The positive outlook considers the company's de-leveraging track
record and reflects Moody's expectations that free cash flow
will be used to reduce debt incurred for the Agilysys KeyLink
acquisition with leverage migrating to a range of 1.6x to 2.2x
(Moody's adjusted).
Moody's could upgrade the rating if the company continues to
demonstrate:
(i) improvement in revenue and margin enhancement with
Moody's adjusted operating margins in the 4.2-4.7% range
and ROA (NPATBUI/average assets) in the 6-7% range;
(ii) sustained progress in improving operating performance;
(iii) evidence of acquisition synergies;
(iv) improvement in financial leverage to a range of 1.6x
to 2.2x (Moody's adjusted) via reduction of acquisition-
related debt and/or higher operating cash flow leading
to EBIT to interest above 6x (Moody's adjusted);
(v) evidence of high levels of retained cash flow to debt
of at least 30% (Moody's adjusted); and
(vi) stability in free cash flow generation, muting the
inherent volatility of the semiconductor and computer
products cycles.
Headquartered in Melville, New York, Arrow Electronics
(NYSE:ARW) -- http://www.arrow.com/-- provides products,
services and solutions to industrial and commercial users of
electronic components and computer products. Arrow serves as a
supply channel partner for nearly 600 suppliers and more than
130,000 original equipment manufacturers, contract manufacturers
and commercial customers through a global network of over 270
locations in 53 countries and territories.
The company operates in France, Spain, Portugal, Denmark,
Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden,
Italy, Germany, Austria, Switzerland, Belgium, the Netherlands,
United Kingdom, Argentina, Brazil, Mexico, Australia, China,
Hong Kong, Korea, Philippines and Singapore.
BUENOS AIRES CRIOLLO: Claims Verification Deadline Is May 16
------------------------------------------------------------
Roberto Oscar Hermida, the court-appointed trustee for Buenos
Aires Criollo SRL's bankruptcy proceeding, verifies creditors'
proofs of claim until May 16, 2007.
Mr. Hermida will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 4 in Buenos Aires, with the assistance of Clerk
No. 7, 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 Buenos Aires Criollo 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 Buenos Aires
Criollo's accounting and banking records will be submitted in
court.
La Nacion did not state the dates for the submission of the
reports.
Mr. Hermida is also in charge of administering Buenos Aires
Criollo's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Buenos Aires Criollo SRL
Maipu 440
Buenos Aires, Argentina
The trustee can be reached at:
Roberto Oscar Hermida
Tucuman 1668
Buenos Aires, Argentina
CALZADOS MATHIUS: Proofs of Claim Verification Ends on May 3
------------------------------------------------------
Jose Luis Abuchdid, the court-appointed trustee for Calzados
Mathius SRL's bankruptcy proceeding, verifies creditors' proofs
of claim until May 3, 2007.
Mr. Abuchdid will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 9 in Buenos Aires, with the assistance of Clerk
No. 18, 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 Calzados Mathius 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 Calzados Mathius'
accounting and banking records will be submitted in court.
La Nacion did not state the reports submission deadlines.
Mr. Ladaga is also in charge of administering Calzados Mathius'
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Calzados Mathius SRL
Camacua 651
Buenos Aires, Argentina
The trustee can be reached at:
Jose Luis Abuchdid
Avenida de los Incas 3624
Buenos Aires, Argentina
CASTIMAR SACF: Trustee Verifies Proofs of Claim Until April 20
--------------------------------------------------------------
Ruben Hugo Faure, the court-appointed trustee for
Castimar S.A.C.F. y S.'s reorganization proceeding, verifies
creditors' proofs of claim until April 20, 2007.
The National Commercial Court of First Instance No. 9 in Buenos
Aires, with the assistance of Clerk No. 17, approved a petition
for reorganization filed by Castimar, according to a report from
Argentine daily Infobae.
Mr. Faure 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 Castimar 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 Castimar's accounting
and banking records will be submitted in court on Aug. 7, 2007.
The informative assembly will be held on Feb. 4, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The debtor can be reached at:
Castimar SACF y S
Lavalleja 815
Buenos Aires, Argentina
The trustee can be reached at:
Ruben Hugo Faure
Avenida Corrientes 1312
Buenos Aires, Argentina
CENTER WASH: Proofs of Claim Verification Ends on May 14
--------------------------------------------------------
Hector Ricardo Arzu, the court-appointed trustee for Center Wash
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until May 14, 2007.
As reported in the Troubled Company Reporter-Latin America on
June 8, 2005, Mr. Arzu validated the claims until July 1, 2005.
The National Commercial Court of First Instance No. 12 of Buenos
Aires, with the assistance of Clerk No. 24, had ordered the
opening of the company's reorganization to allow it to negotiate
a settlement with its creditors in order to avoid a straight
liquidation.
However, the reorganization case turned into a bankruptcy
proceeding.
Mr. Liderman will present the validated claims in court as
individual reports on June 27, 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 Center Wash 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 Center Wash's
accounting and banking records will be submitted in court on
Aug. 24, 2007.
Mr. Liderman is also in charge of administering Center Wash's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Hector Ricardo Arzu
Junin 55
Buenos Aires, Argentina
DANA CORP: Unit Amends Joint Venture Agreement with Dongfeng
------------------------------------------------------------
Dana Mauritius Ltd. and Dongfeng Motor Co. Ltd. have amended
their agreement to develop a 50-50 joint venture, the Dongfeng
Dana Axle Co. Ltd., Forbes reports, citing a statement from Dana
Corp.
According to Dana's statement, part of the amendments calls for
Dana Mauritius to make an initial payment of CNY38.8 million to
Dongfeng for a 4% equity interest in the joint venture.
The transaction is expected to be completed by the end of March,
Forbes says.
Meanwhile, Dana Mauritius will purchase the remaining 46%
interest after April 1, 2008, and within three years of
receiving government approvals.
The agreement also provides that, Dana license certain
commercial vehicle axle technology to Dongfeng Dana Axle for the
term of the joint venture, Forbes says citing Dana Corp's
statement.
Forbes, however, notes that all these amendments are still
subject to government approval.
About Dongfeng Motor Co. Ltd.
Dongfeng Motor Co. Ltd. is a joint venture between the state-
owned Dongfeng Motor Group Company Ltd. and a Chinese subsidiary
of Nissan Motors. Dongfeng Motor Group was founded in 1969 and
with its affiliates ranks as one of the three largest vehicle
makers in China. Dongfeng Motor Co. Limited produces a broad
range of light, medium, and heavy-duty trucks, as well as buses
and passenger cars.
About Dana Corp.
Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs
and manufactures products for every major vehicle producer in
the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies. Dana employs 46,000
people in 28 countries. Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million
vehicles annually. Dana has facilities in China, Argentina and
Italy.
The company and its affiliates filed for chapter 11 protection
on Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Sept. 30, 2005, the Debtors listed US$7,900,000,000 in total
assets and US$6,800,000,000 in total debts.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors' exclusive period to file a plan expires on
Sept. 3, 2007. They have until Nov. 2, 2007, to solicit
acceptances of that plan. (Dana Corporation Bankruptcy News,
Issue No. 36; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
FLORMAN SA: Proofs of Claim Verification Deadline Is June 4
-----------------------------------------------------------
Lydia Elsa Albite, the court-appointed trustee for Florman
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until June 4, 2007.
However, it was reported in the Troubled Company Reporter-Latin
America on March 13, 2007, that Ms. Albite would verify
creditors' proofs of claim until July 4, 2007.
Ms. Albite will present the validated claims in court as
individual reports on Aug. 1, 2007. The National Commercial
Court of First Instance No. 3 in Buenos Aires, with the
assistance of Clerk No. 5, 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 Florman 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 Florman's accounting
and banking records will be submitted in court on
Sept. 13, 2007.
Ms. Albite is also in charge of administering Florman's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Florman S.A.
Suipacha 760
Buenos Aires, Argentina
The trustee can be reached at:
Lydia Elsa Albite
Tacuari 119
Buenos Aires, Argentina
GETTY IMAGES: S&P Holds B+ Corp. Credit Rating on CreditWatch
-------------------------------------------------------------
Standard & Poor's Ratings Services related that the ratings on
Getty Images Inc., including the 'B+' corporate credit rating,
remain on CreditWatch with developing implications, following
the company's announcement that it had obtained a US$350 million
revolving credit facility. The ratings were placed on
CreditWatch on Dec. 4, 2006, after the company announced that it
had received notices from bondholders that its delayed third-
quarter SEC Form 10-Q filing constituted an event of default.
Developing implications indicate the possibility of upward or
downward movement in the ratings.
Getty Images could use borrowings under the facility to acquire
MediaVast Inc. or to fund its convertible bond obligation should
these bonds be accelerated.
Separately, the cure period for the company to resolve its
alleged event of default with its bondholders has passed; the
company's bondholders may demand immediate payment of the
principal and any accrued interest of the convertible notes at
any time. The new facility gives Standard & Poor's some comfort
that bank lenders are willing to support the company's growth
plans and provide the company with additional liquidity despite
the delayed filing.
"We will monitor the situation closely," said Standard & Poor's
credit analyst Tulip Lim. "If the filing is delayed further, we
could lower the rating again. If the company becomes current
with its required quarterly and annual filings, we will reassess
the company for an upgrade."
Getty Images Inc. (NYSE: GYI) -- http://gettyimages.com/--
creates and distributes visual content and the first place
creative professionals turn to discover, purchase and manage
imagery. The company's award-winning photographers and imagery
help customers create inspiring work which appears every day in
the world's most influential newspapers, magazines, advertising
campaigns, films, television programs, books and Web sites.
Headquartered in Seattle, WA and serving customers in more than
100 countries, Getty Images believes in the power of imagery to
drive positive change, educate, inform, and entertain. The
company has corporate offices in Australia, the United Kingdom
and Argentina.
ILDA SRL: Trustee Verifies Proofs of Claim Until May 4
------------------------------------------------------
Alberto Guillermo Hosselet, the court-appointed trustee for Ilda
SRL's bankruptcy proceeding, verifies creditors' proofs of claim
until May 4, 2007.
Mr. Hosselet will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 2 in Buenos Aires, with the assistance of Clerk
No. 4, 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 Ilda 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 Ilda's accounting and
banking records will be submitted in court.
La Nacion did not state the reports submission deadlines.
Mr. Hosselet is also in charge of administering Ilda's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Ilda SRL
Campana 3053
Buenos Aires, Argentina
The trustee can be reached at:
Alberto Guillermo Hosselet
Avenida Luis Maria Campos 1166
Buenos Aires, Argentina
KONINKLIJKE AHOLD: Earns EUR915 Million for Full Year 2006
----------------------------------------------------------
Koninklijke Ahold N.V. released its financial results for the
year and fourth quarter ended Dec. 31, 2006.
Ahold posted EUR915 million in net profit on EUR44.87 billion in
net revenues for 2006, compared with EUR146 million in net
profit on EUR43.98 billion in net revenues for 2005.
Ahold posted EUR240 million in net profit on EUR10.38 billion in
net revenues for the fourth quarter of 2006, compared with
EUR108 million in net profit on EUR10.69 billion in net revenues
for the same period 2005.
As of Dec. 31, 2006, the company had EUR18.44 billion in net
assets, EUR13.17 billion in net liabilities and EUR5.27 billion
in shareholders' equity.
"Ahold met the targets we set last year," Anders Moberg,
President and CEO of Ahold, said. "U.S. Foodservice delivered
1.7% operating margin, our retail operations performed in line
with our margin guidance and exceeded sales growth guidance.
Group Office Support costs are down and we have reduced net debt
even more than we said we would. Our Value Improvement Program
at Stop & Shop is on track and we have already seen encouraging
improvements in the way customers perceive our produce
department, both in terms of price and quality."
For 2007, Ahold plans to continue its announced strategy. The
company plans to increase the amount of return to shareholders
from EUR2 billion to EUR3 billion, subject to the divestment of
USF. This will be executed through a share buyback program.
About Ahold
Headquartered in Amsterdam, Koninklijke Ahold N.V. --
http://www.ahold.com/-- retails food through supermarkets,
hypermarkets and discount stores in North and South America,
Europe. It has operations in Argentina. The company's chain
stores include Stop & Shop, Giant, TOPS, Albert Heijn and
Bompreco. Ahold also supplies food to restaurants, hotels,
healthcare institutions, government facilities, universities,
stadiums, and caterers.
* * *
As reported on Dec. 22, 2006, Standard & Poor's Ratings Services
revised its outlook on the Dutch food retailer and food service
distributor Koninklijke Ahold N.V. to positive from stable. At
the same time, the 'BB+/B' long- and short-term corporate credit
ratings were affirmed.
Moody's Investors Service and Standard and Poor's has assigned
low-B ratings to the company's 5.625% senior notes due 2007.
Also, the company's 5.875% senior unsubordinated notes due 2008
and 6.375% senior unsubordinated notes due 2007 carry Moody's,
S&P's and Fitch's low-B ratings.
MANDATARIOS DE SERVICIOS: Claims Verification Ends on May 4
-----------------------------------------------------------
Maria Susana Taboada, the court-appointed trustee for
Mandatarios de Servicios S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until May 4, 2007.
Ms. Taboada will present the validated claims in court as
individual reports on June 18, 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 Mandatarios de Servicios 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 Mandatarios de
Servicios' accounting and banking records will be submitted in
court on Aug. 14, 2007.
Ms. Taboada is also in charge of administering Mandatarios de
Servicios' assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Mandatarios de Servicios S.A.
Uruguay 469
Buenos Aires, Argentina
The trustee can be reached at:
Maria Susana Taboada
Ezeiza 2641
Buenos Aires, Argentina
MANTENIMIENTOS INDUSTRIALES: Individual Reports Due in Court Tom
----------------------------------------------------------------
Miguel Adolfo Kupchik, the court-appointed trustee for
Mantenimientos Industriales S.A.'s bankruptcy proceeding, will
present creditors' validated claims as individual reports in the
National Commercial Court of First Instance in Buenos Aires on
March 30, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Mantenimientos Industriales and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Kupchik verified creditors' proofs of claim until
Feb. 16, 2007.
Mr. Kupchik will also submit to court a general report
containing an audit of Mantenimientos Industriales' accounting
and banking records on May 17, 2007.
The trustee can be reached at:
Miguel Adolfo Kupchik
San Luis 3067
Buenos Aires, Argentina
ONTARIO GROUP: Proofs of Claim Verification Deadline Is May 29
--------------------------------------------------------------
Agustin Cueli Gomez, the court-appointed trustee for Ontario
Group S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until May 29, 2007.
Mr. Gomez will present the validated claims in court as
individual reports on Aug. 6, 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 Ontario Group and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Ontario Group's
accounting and banking records will be submitted in court on
Sept. 24, 2007.
Mr. Gomez is also in charge of administering Ontario Group's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Ontario Group S.A.
Suipacha 190
Buenos Aires, Argentina
The trustee can be reached at:
Agustin Cueli Gomez
Avenida Corrientes 915
Buenos Aires, Argentina
PACKAGING PAPER: Seeks Court Approval for Reorganization
--------------------------------------------------------
Packaging Paper SRL has filed a petition for reorganization
before The National Commercial Court of First Instance Court
No. 13, after failing to pay its liabilities since
March 19, 2007.
The reorganization petition, once approved by the court, will
allow Packaging Paper to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
Clerk No. 26 assists on this case.
The debtor can be reached at:
Packaging Paper SRL
Uruguay 160
Buenos Aires, Argentina
PEDRO CASADO: Proofs of Claim Verification Is Until April 13
------------------------------------------------------------
Raul Bolado, the court-appointed trustee for Pedro Casado y Cia.
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until April 13, 2007.
Mr. Bolado will present the validated claims in court as
individual reports on May 29, 2007. The National Commercial
Court of First Instance in General Alvear, Mendoza, 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 Pedro Casado 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 Pedro Casado's
accounting and banking records will be submitted in court on
July 26, 2007.
Mr. Bolado is also in charge of administering Pedro Casado's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Pedro Casado y Cia. S.R.L.
Moreno 60
General Alvear, Mendoza
Argentina
The trustee can be reached at:
Raul Bolado
Ameghino 30
General Alvear, Mendoza
Argentina
PETROBRAS ENERGIA: Crude Oil Production Suspended in Ecuador
------------------------------------------------------------
Petrobras Energia S.A. said that crude oil production in Block
18 has been interrupted since March 9 as a result of the
coercive actions taken by the inhabitants of PreCooperativa 25
de Diciembre and Alamorena Community, which involve occupation
of Palo Azul Field in Block 18.
The company operates Block 18 through EcuadorTLC S.A., its
subsidiary in Ecuador. Production in 2006 -- according to the
company's participating interest -- averaged 11,779 bbls. per
day.
The communities demand asphalt paving of roads at the company's
expense and rejected the proposal submitted by the Ecuadorian
Ministries of Energy and Public Works involving asphalt paving
as part of the road plan worked out by the Ecuadorian
government.
The company, together with the Ministry of Energy and Mines and
the Ministry of the Government of Ecuador, are striving to solve
the conflict as soon as possible so as to resume crude oil
operations in the block.
Other similar coercive measures are being taken by inhabitants
of communities adjacent to blocks operated by other private and
public oil companies in the east of Ecuador.
The company ratifies its willingness to dialog and its constant
and unconditional support to the communities located within the
influence area of its operations. Under agreements entered into
with local communities, the company develops health, educational
and basic infrastructure projects for communities adjacent to
Block 18 in line with its Corporate Social Responsibility
policy.
Petrobras Energia Participaciones SA (Buenos Aires: PBE, NYSE:
PZE) through its subsidiary, explores, produces, and refines oil
and gas, as well as generates, transmits, and distributes
electricity. It also offers petrochemicals, as well as markets
and transports hydrocarbons. The company conducts oil and gas
exploration and production operations in Argentina, Venezuela,
Peru, Ecuador, and Bolivia
* * *
As reported on Jan. 4, 2007, Fitch Argentina Calificadora de
Riesgo affirmed these ratings assigned to Petrobras Energia:
-- international currency: B+
-- local currency: BB-
-- unsecured senior debt: B+
PRODOM SA: Proofs of Claim Verification Ends on May 21
------------------------------------------------------
Alberto Ladaga, the court-appointed trustee for Prodom SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
May 21, 2007.
Mr. Ladaga will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 26 in Buenos Aires, with the assistance of Clerk
No. 52, 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 Prodom 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 Prodom's accounting
and banking records will be submitted in court.
La Nacion did not state the date for the submission of the
reports.
Mr. Ladaga is also in charge of administering Prodom's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Prodom SA
Avenida Juan B. Justo 7726
Buenos Aires, Argentina
The trustee can be reached at:
Alberto Ladaga
Vidt 2039
Buenos Aires, Argentina
RETAIL PHARMA: Proofs of Claim Verification Ends on May 7
---------------------------------------------------------
Ana Maria Pazos, the court-appointed trustee for Retail Pharma
SA's bankruptcy proceeding, verifies creditors' proofs of claim
until May 7, 2007.
Ms. Pazos will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of Clerk
No. 38, 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 Retail Pharma 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 Retail Pharma's
accounting and banking records will be submitted in court.
La Nacion did not state the dates for the submission of the
reports.
Ms. Pazos is also in charge of administering Retail Pharma's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Retail Pharma SA
Avenida Luis Mar¡a Campos 1371
Buenos Aires, Argentina
The trustee can be reached at:
Ana Maria Pazos
Maipu 374
Buenos Aires, Argentina
SANTAX SRL: Claims Verification Deadline Moved to April 30
----------------------------------------------------------
Carlos Alberto Vicente, the court-appointed trustee for
Santax S.R.L.'s reorganization proceeding, verifies creditors'
proofs of claim until April 30, 2007. The deadline was
previously set for Feb. 28, 2007.
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2007, The National Commercial Court of First Instance
No. 2 in Buenos Aires, with the assistance of Clerk No. 4,
approved a petition for reorganization filed by Santax,
appointing Aldo Emilio Cambiasso as trustee. Mr. Cambiasso was
to verify claims until Feb. 28, 2007. The informative assembly
was set for Oct. 15, 2007.
Mr. Vicente will present the validated claims in court as
individual reports on June 13, 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 Santax 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 Santax's accounting
and banking records will be submitted in court on Aug. 6, 2007.
The informative assembly will be held on Dec. 13, 2007.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The debtor can be reached at:
Santax S.R.L.
Mendoza 5875
Buenos Aires, Argentina
The trustee can be reached at:
Carlos Alberto Vicente
Avenida Corrientes 2166
Buenos Aires, Argentina
SATELITAL SA: Proofs of Claim Verification Deadline Is June 4
-------------------------------------------------------------
Cristina Mattioni, the court-appointed trustee for Satelital
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until June 4, 2007.
Ms. Mattioni will present the validated claims in court as
individual reports on July 19, 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 Satelital 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 Satelital's
accounting and banking records will be submitted in court on
Sept. 14, 2007.
Ms. Mattioni is also in charge of administering Satelital's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Satelital S.A.
Avenida Libertador 2687
Buenos Aires, Argentina
The trustee can be reached at:
Cristina Mattioni
Uruguay 385
Buenos Aires, Argentina
SENNIC SA: Trustee to Present General Report in Court Tomorrow
--------------------------------------------------------------
Ignacio Victor Kaczer, the court-appointed trustee for Sennic
S.A.'s reorganization proceeding, will submit to court a general
report containing an audit of the company's accounting and
banking records on March 30, 2007.
Mr. Kaczer verified creditors' proofs of claim until
Dec. 1, 2006. He then presented the validated claims in court
as individual reports on Feb. 16, 2007. The National Commercial
Court of First Instance in Buenos Aires determined the verified
claims' admissibility, taking into account the trustee's opinion
and the objections and challenges raised by Sennic and its
creditors.
Sennic's creditors will vote on a settlement plan that the
company will lay on the table on Sept. 11, 2007.
The trustee can be reached at:
Ignacio Victor Kaczer
Avenida Callao 441
Buenos Aires, Argentina
SUADIR SA: Trustee To Present Individual Reports in Court Tom
-------------------------------------------------------------
Jorge David Jalfin, the court-appointed trustee for Suadir
S.A.'s bankruptcy proceeding, will present creditors' validated
claims as individual reports in the National Commercial Court of
First Instance in Buenos Aires on March 30, 2007.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Suadir and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Jalfin verified creditors' proofs of claim until
Feb. 13, 2007.
Mr. Jalfin will also submit to court a general report containing
an audit of Suadir's accounting and banking records on
May 18, 2007.
The debtor can be reached at:
Suadir SA
San Marin 793
Buenos Aires, Argentina
The trustee can be reached at:
Jorge David Jalfin
Sarmiento 1452
Buenos Aires, Argentina
TELECOM ARGENTINA: Picks Oracle to Support Internet Services
------------------------------------------------------------
Telecom Argentina S.A. has selected Oracle(R) Communications
Billing and Revenue Management to support its launch of next-
generation services including IPTV, VoIP and WiFi. Telecom
Argentina chose Oracle's application for its flexibility, which
enabled the company to offer diverse pre- and post-paid billing
plans and customized solution bundles to meet diverse customer
needs and to help expand beyond its 50 percent market share in
the country.
In addition to flexibility, Telecom Argentina also selected
Oracle Communications for its scalability. Telecom Argentina
expects significant growth, particularly in new services and in
ADSL broadband Internet. The Oracle solution will help Telecom
Argentina efficiently deliver and bill for services, as its
subscriber-base continues to grow.
"Telecom Argentina is committed to offering next-generation
products and high quality service. We needed our IT
applications to support that mission," said Guillermo Desimoni,
Director of Information, Telecom Argentina. "We considered
other vendors, but chose Oracle because it had the best solution
to meet our immediate and future needs."
Telecom Argentina expects the Oracle implementation to help it
become a leader in offering customer-centric next-generation
services and compete more effectively in a rapidly changing
competitive landscape. The company plans to launch pre-paid
WiFi in April 2007 and ADSL services in October 2007. Telecom
Argentina plans to use the application to boost average revenue
per user by quickly launching new services and leveraging
marketing functionality to improve cross-selling initiatives.
"Oracle Communications brings together a unique portfolio of
proven software that enables service providers to leverage next-
generation convergent services," said Bhaskar Gorti, Senior Vice
President and General Manager, Oracle Communications. "We look
forward to helping Telecom Argentina maintain its position as a
leading communications provider as it pursues aggressive next-
generation service rollouts."
Oracle Communications Billing and Revenue Management delivers
comprehensive revenue management functions and significant
capabilities enabling communications service providers to focus
on developing further innovation of their business. Important
features include:
-- Convergent platform for prepaid and postpaid customers,
services and payments
-- Real-time customer care interfaces for customers and
customer care representatives
-- Compliance with the most stringent enterprise security
requirements
-- Flexible, pricing and promotions delivering rapid
time-to-market performance
-- Powerful tools to maximize revenue and minimize loss
associated with fraud and revenue leakage
About Oracle Communications
Oracle Communications (Nasdaq: ORCL) -- http://www.oracle.com/-
- is #1 in Communications globally with 19 of the world's top 20
telecommunications companies running Oracle applications.
Oracle Communications integrates industry-specific BSS and OSS
solutions with the capabilities of Oracle's industry-leading
enterprise applications, business intelligence tools, and
carrier-grade middleware and database technologies. The company
enables service providers to deliver next generation convergent
services rapidly, increase customer satisfaction and loyalty,
and reduce costs in the business and the network.
About 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.
TEXAL SA: Reorganization Proceeding Concluded
---------------------------------------------
Buenos Aires-based Texal 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 the company and its creditors.
* ARGENTINA: Gets US$100-Million Loan from World Bank
-----------------------------------------------------
The World Bank's Board of Directors approved a US$100 million
loan in additional financing for Argentina to support the Buenos
Aires Urban Transport Project in completing ongoing activities
related to improving urban transport services in the City of
Buenos Aires and the metropolitan area. The loan will be a
first step in developing an integrated urban transport system
and improving traffic safety in the Greater Buenos Aires
Metropolitan Area, home to almost 14 million people.
"The World Bank has supported this important project for Buenos
Aires over the last 10 years. Implementation suffered during
the crisis years, but with the recovery starting in 2003, the
project teams have been able to strongly reactivate the project
implementation. With most of the project now executed, we
realize that much more needs to be done. For this reason, the
additional financing will complete many works that will help
improve transport services," said Axel van Trotsenburg, World
Bank Director for Argentina, Chile, Paraguay and Uruguay.
Specifically, the additional financing for the US$200 million
Buenos Aires Urban Transport Project, originally approved in
1997, will support the following activities:
* Develop an Urban Transport Integration System by improving
the pavement of roads and sidewalks, and
* by adding lights and urban furniture at selected outlying
metropolitan railway stations of municipalities with the
highest poverty rates.
The program seeks to improve public transport access for
pedestrians and other non-motorized and public transport users.
The World Bank will also support the creation of the
Metropolitan Transport Agency for the AMBA, which will
coordinate public transport sector activities.
Enhance traffic safety by converting or building new underpasses
or bridges in seven selected road or rail crossings. Strengthen
the institutional framework by carrying out a household
transport survey and an inventory of the bus transport system
operating within the AMBA, among other initiatives. In
addition, technical assistance and training provision will be
provided to the cities of Cordoba, Mendoza, Posadas, Rosario and
Tucuman in order to expand the development of integrated urban
transport strategies. Improve Buenos Aires subway
infrastructure by supporting rehabilitation works for selected
stations in the A-Line Buenos Aires subway system.
"The new resources build on the success of the original project
driven by the Secretariat of Transport of the Federal
Government," said Andres Pizarro, World Bank task manager for
the project. "The program has had a very positive impact on
road safety in densely populated areas such as Tres de Febrero,
San Fernando/Tigre, and Avellaneda," he added.
"The project also has had a very significant impact revamping
the infrastructure of Line A of the subway system, which is the
oldest subway line in South America and carries about 40 million
passengers per year," said Juan Gaviria, World Bank Sector
Leader for Infrastructure.
The additional financing is consistent with the World Bank's
US$3.3 billion 2006-2008 Country Assistance Strategy for
Argentina, approved by the Board of Directors in June 2006.
This strategy focuses on three pillars -- sustained growth with
equity, social inclusion and improved governance that make up
100 percent of investment loans.
The new US$100 million single currency, fixed-spread loan is
repayable in 15 years, and includes 5 years of grace.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
* ARGENTINA: Inks Pipeline Construction Contract with Bolivia
-------------------------------------------------------------
Argentina has signed a contract to construct a US$1.5-billion
gas pipeline with Bolivia, Dow Jones Newswires reports.
According to Dow Jones, the deal finalizes the terms of an
accord signed in October 2006 by Bolivia's President Evo Morales
and Argentina's President Nestor Kirchner.
Dow Jones relates that the Northeast Argentina Pipeline will
eventually increase the amount of natural gas Bolivia sends to
Argentina, which is at five million cubic meters of gas per day
on average.
Bolivian and Argentine officials told Dow Jones that the
pipeline will be able to export up to 20 million cubic meters of
gas daily from Bolivia to Argentina by 2010, effectively
increasing the 7.7 million cubic meters per day capacity of the
existing pipeline between the two nations in the 1970s.
Argentina will pay for 1,500 kilometers of the pipeline, Dow
Jones states, citing Bolivian Hydrocarbons Minister Carlos
Villegas.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
===========
B E L I Z E
===========
CONTINENTAL AIRLINES: Deploys Self Check-In Stalls in Belize
------------------------------------------------------------
Continental Airlines told Self-Service World Magazine that it
successfully installed five self check-in booths at Belize's
International Airport.
According to Self-Service World, Continental Airlines is the
first airline to offer self check-in stalls in Belize.
Continental Airlines Central American Director Salvador Marrero
told Self-Service World, "These self check-in kiosks allow our
passengers greater convenience by enabling them to have greater
control at the airport and to help them avoid lines and wait
times, which are part of our goal to make flying on Continental
an enjoyable experience for our passengers."
According to Self-Service World, passengers could use the booths
to purchase:
-- audio headsets,
-- beer,
-- cocktails, and
-- wine on board.
Continental Airlines now has over 1,000 kiosks at 165 airports
worldwide, Self-Service World states.
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 3,200 daily departures throughout Belize, Mexico, Europe
and Asia, serving 154 domestic and 138 international
destinations including Honduras and Bonaire. More than 400
additional points are served via SkyTeam alliance airlines.
With more than 43,000 employees, Continental has hubs serving
New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 61 million passengers
per year. Continental consistently earns awards and critical
acclaim for both its operation and its corporate culture.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 15, 2007, Moody's Investors Service raised the ratings of
Continental Airlines, Inc.'s corporate family rating to B2,
senior unsecured to B3 and preferred stock to Caa1 and the
ratings of certain tranches of the airline's Enhanced Equipment
Trust Certificates or EETC's. Moody's also affirmed Continental
Airlines' SGL-2 rating, the ratings of the EETCs not upgraded,
and the Loss Given Default rating of LGD5 - 74%. The outlook
remains stable.
Upgrades:
Issuer: Cleveland (City of) Ohio
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Continental Airlines Finance Trust II
-- Preferred Stock Preferred Stock, Upgraded to Caa1
from Caa2
Issuer: Continental Airlines, Inc.
-- Corporate Family Rating, Upgraded to B2 from B3
-- Multiple Seniority Shelf, Upgraded to a range of (P)Caa1
to (P)B3 from a range of (P)Caa2 to (P)Caa1
-- Senior Secured Enhanced Equipment Trust, Upgraded to
a range of B2 to Baa2 from a range of B3 to Baa3
-- Senior Secured Equipment Trust, Upgraded to Ba2
from Ba3
-- Senior Secured Shelf, Upgraded to (P)Ba3 from (P)B1
-- Senior Unsecured Conv./Exch. Bond/Debenture, Upgraded
to B3 from Caa1
-- Senior Unsecured Regular Bond/Debenture, Upgraded
to B3 from Caa1
Issuer: Harris (County of) Texas, I.D.C.
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Hawaii Department of Transportation
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Houston (City of) Texas
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: New Jersey Economic Development Authority
-- Senior Unsecured Revenue Bonds, Upgraded to B3 from Caa1
Issuer: Port Authority of New York and New Jersey
-- Revenue Bonds, Upgraded to B3 from Caa1
=============
B E R M U D A
=============
FOSTER WHEELER: Subsidiary Taps Michael Stacey to Board
-------------------------------------------------------
Foster Wheeler Ltd.'s subsidiary Foster Wheeler Energy Limited,
part of its Global Engineering and Construction Group, has
appointed Dr. J. Michael Stacey to its main board. Foster
Wheeler Energy Limited is headquartered in Reading, UK.
"I am delighted to have Mike working with us," said Steve
Davies, chairman and chief executive officer, Foster Wheeler
Energy Limited. "Mike's experience and expertise will
strengthen our board as we continue to implement our strategy to
further develop and grow our upstream oil and gas business
internationally. We have been increasingly successful in
securing new business in this sector over the past two years
since the establishment of our Upstream Oil and Gas Group in the
UK in 2005, and it is our intention to continue to increase our
share of the global market by further broadening our technical
offering and customer base."
Dr. Stacey is a chemical engineer with 39 years' experience in
the international oil and gas business. In 1984 he founded the
oil and gas consulting company Granherne Limited in the UK, and,
as chairman and chief executive, grew the company
internationally. In 1996 Dr. Stacey sold Granherne to The M. W.
Kellogg Co. and remained with them in an executive role until
2001, when he invested in Petrofac and joined the company as an
executive director. He established Petrofac Engineering in the
UK and, as vice chairman of Petrofac Ltd., was closely involved
in its successful initial public offering in 2005.
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.
QUANTA CAPITAL: Milberg Weiss to Probe Class Action Lawsuits
------------------------------------------------------------
The law firm of Milberg Weiss & Bershad LLP is investigating
possible illegal conduct as alleged in proposed class action
lawsuits filed by certain law firms on behalf of investors in
Quanta Capital Holdings, Ltd., who purchased the common stock or
preferred stock of Quanta between May 14, 2004, and
March 2, 2006, inclusive, including those who purchased common
stock or preferred stock pursuant or traceable to the Secondary
Offering on or about Dec. 14, 2005.
The class actions are pending in the United States District
Court for the Southern District of New York against Quanta and
certain of its officers and directors. One of two above-
referenced actions alleges that Quanta and certain of its
officers and directors violated Section 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated. The
company is said to have misrepresented that it failed to
properly account for losses and to set aside adequate reserves
to account for specific, weather-related claims in order to
maintain a favorable rating from A.M. Best Company.
In addition, the other action seeks to pursue remedies under the
Securities Act of 1933. Specifically, the action alleges that
during the Class Period, Quanta and certain of its officers and
directors made misleading statements in two prospectuses; both
issued in connection with a Secondary Offering on Dec. 14, 2005,
of 11,423,340 common shares valued at US$4.75 per share, and
3,000,000 10.25% Series A preferred shares valued at US$25 per
share. These Prospectuses stated that Quanta's estimated net
losses related for 2005 were US$68.5 million. However, on
March 2, 2006, it was revealed that net losses were US$78.7
million, an additional US$10.2 million -- 15% more than
previously stated by the Company. On this news, Quanta common
stock plunged 40% from US$4.73 per share to US$2.83 per share.
If you purchased the common stock or preferred stock of Quanta
between May 14, 2004 and March 2, 2006, inclusive, including any
purchases of common stock or preferred stock pursuant or
traceable to the Secondary Offering on or about Dec. 14, 2005,
you may, no later than April 6, 2007, request that the Court
appoint you as lead plaintiff. A lead plaintiff is a
representative party acting on behalf of other class members in
directing the litigation. To be appointed lead plaintiff, the
Court must decide that your claim is typical of the claims of
other class members, and that you will adequately represent the
class. Your share in any recovery will not be enhanced or
diminished by the decision whether or not to serve as a lead
plaintiff. You may retain Milberg Weiss & Bershad LLP, or other
attorneys, to serve as your counsel in this action.
Milberg Weiss & Bershad LLP -- http://www.milbergweiss.com/--
has been representing individual and institutional investors for
nearly 40 years and serves as lead counsel in federal and state
courts throughout the United States.
For more discussion regard to this matter, contact these
attorneys:
Lori G. Feldman, Esq.
Anita B. Kartalopoulos, Esq.
One Pennsylvania Plaza, 49th Fl.
New York, NY, 10119-0165
Tel: (800) 320-5081
Email: contactus@milbergweiss.com
Headquartered in Hamilton, Bermuda, Quanta Capital Holdings Ltd.
(NASDAQ: QNTA) -- http://www.quantaholdings.com/-- operates its
Lloyd's syndicate in London and its environmental consulting
business through Environmental Strategies Consulting in the
United States. The Company is in the process of running off its
remaining business lines. The Company maintains offices in
Bermuda, the United Kingdom, Ireland and the United States.
* * *
As reported in the Troubled Company Reporter on Aug. 15, 2006,
Quanta Capital Holdings Ltd. continues to work with its lenders
regarding an amendment to its credit facility and an extension
to its waiver period, which expired Aug. 11, 2006.
On June 7, 2006, A.M. Best Co. downgraded the financial strength
ratings to B from B++ and the issuer credit ratings to bb from
bbb for the insurance/reinsurance subsidiaries of Quanta Capital
Holdings Ltd. These rating actions apply to Quanta Reinsurance
Ltd., its subsidiaries and Quanta Europe Ltd. A.M. Best also
downgraded Quanta's ICR to b from bb and the securities rating
to ccc from b+ for its US$75 million 10.25% Series A non-
cumulative perpetual preferred shares. All ratings have been
removed from under review with negative implications and
assigned a negative outlook.
The company disclosed that the A.M. Best rating action triggered
a default under Quanta's credit facility.
=============
B O L I V I A
=============
PETROLEOS DE VENEZUELA: Pays US Consultant to Advise Bolivia
------------------------------------------------------------
Venezuelan state-owned oil firm Petroleos de Venezuela SA has
paid a US consultant Curtis, Mallet-Prevost, Colt & Mosle LLP to
advise the Bolivian government on the execution of accords with
multinationals under the hydrocarbons nationalization decree, El
Universal reports, citing Bolivian officials.
Bolivian state oil company Yacimientos Petroliferos Fiscales
Bolivianos Chief Executive Officer Manuel Morales Olivera told
Agence France-Presse that it must be Petroleos de Venezuela who
paid Curtis, Mallet-Prevost for advisory services.
"YPFB did not pay absolutely anything, not one cent, because the
arrival of international experts was part of the collaboration
between PDVSA and YPFB," Mr. Morales Olivera was quoted by The
Associated Press as saying. He told reporters before testifying
before Congress on errors in the contracts that have delayed the
full effect of nationalization.
However, Senator Oscar Ortiz of the major opposition Podemos
party commented to El Universal, "I do not understand why Pdvsa
[Petroleos de Venezuela], led by Mr. Hugo Chavez should hire
attorneys for us. The Congress, last year, authorized
millionaire transfers to YPFB [Yacimientos Petroliferos] to
implement the decree on nationalization. Why, then, a company
that anywhere else can even compete with us should hire
international legal firms to manage our negotiations?"
Bolivian President Evo Morales had said that the government
received no advice from foreign entities and insisted that
Bolivian citizens were responsible for everything related to the
accords, El Universal states.
Curtis, Mallet-Prevost, Colt & Mosle LLP can be reached at:
101 Park Avenue
New York, New York 10178-0061
USA
Telephone: +1 212-696-6000
Fax: +1 212-697-1559
Petroleos de Venezuela SA -- http://www.pdv.com/--
is Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 12, 2007, Standard & Poor's Ratings
Services raised its long-term foreign currency corporate credit
rating on Petroleos de Venezuela S.A. or PDVSA to 'BB-' from
'B+'. S&P said the rating was removed from CreditWatch.
* BOLIVIA: Inks Pipeline Construction Contract with Argentina
-------------------------------------------------------------
Bolivia has signed a contract to construct a US$1.5-billion gas
pipeline with Argentina, Dow Jones Newswires reports.
According to Dow Jones, the deal finalizes the terms of an
accord signed in October 2006 by Bolivia's President Evo Morales
and Argentina's President Nestor Kirchner.
Dow Jones relates that the Northeast Argentina Pipeline will
eventually increase the amount of natural gas Bolivia sends to
Argentina, which is at five million cubic meters of gas per day
on average.
Bolivian and Argentine officials told Dow Jones that the
pipeline will be able to export up to 20 million cubic meters of
gas daily from Bolivia to Argentina by 2010, effectively
increasing the 7.7 million cubic meters per day capacity of the
existing pipeline between the two nations in the 1970s.
Argentina will pay for 1,500 kilometers of the pipeline, Dow
Jones states, citing Bolivian Hydrocarbons Minister Carlos
Villegas.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
* BOLIVIA: Venezuelan Firm Pays US Consultant to Advise Nation
--------------------------------------------------------------
Venezuelan state-owned oil firm Petroleos de Venezuela SA has
paid a US consultant Curtis, Mallet-Prevost, Colt & Mosle LLP to
advise the Bolivian government on the execution of accords with
multinationals under the hydrocarbons nationalization decree, El
Universal reports, citing Bolivian officials.
Bolivian state oil company Yacimientos Petroliferos Fiscales
Bolivianos Chief Executive Officer Manuel Morales Olivera told
Agence France-Presse that it must be Petroleos de Venezuela who
paid Curtis, Mallet-Prevost for advisory services.
"YPFB did not pay absolutely anything, not one cent, because the
arrival of international experts was part of the collaboration
between PDVSA and YPFB," Mr. Morales Olivera was quoted by The
Associated Press as saying. He told reporters before testifying
before Congress on errors in the contracts that have delayed the
full effect of nationalization.
However, Senator Oscar Ortiz of the major opposition Podemos
party commented to El Universal, "I do not understand why Pdvsa
[Petroleos de Venezuela], led by Mr. Hugo Chavez should hire
attorneys for us. The Congress, last year, authorized
millionaire transfers to YPFB [Yacimientos Petroliferos] to
implement the decree on nationalization. Why, then, a company
that anywhere else can even compete with us should hire
international legal firms to manage our negotiations?"
Bolivian President Evo Morales had said that the government
received no advice from foreign entities and insisted that
Bolivian citizens were responsible for everything related to the
accords, El Universal states.
Curtis, Mallet-Prevost, Colt & Mosle LLP can be reached at:
101 Park Avenue
New York, New York 10178-0061
USA
Telephone: +1 212-696-6000
Fax: +1 212-697-1559
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/--
is Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
BANCO BRADESCO: Paying Monthly Interest Due on May 2
----------------------------------------------------
Banco Bradesco S.A. disclosed in a regulatory filing with the
securities exchange and commission that in conformity with the
System for Monthly Payment to Stockholders, it will pay on
May 2, 2007, Interest on Own Capital related to the month of
April 2007, in the amount of BRL$0.018026250 per common stock
and BRL$0.019828875 per preferred stock to the stockholders
registered in the company's records on April 2, 2007.
The payment, net of the Withholding Income Tax of 15%, except
for legal entity stockholders exempted from the referred
taxation, which will receive for the stated amount, will be made
through the net amount of BRL$0.015322313 per common stock and
BRL$0.016854544 per preferred stock, as follows:
a) credit in the current account informed by the stockholder;
b) the stockholders who do not inform their banking data or
do not hold a current account in a Financial Institution
must go to a Bradesco Branch on their preference having
their identification document and the "Notice For Receipt
of Earnings from Book-Entry Stocks", sent by mail to those
having their address updated in the company's records;
c) to those with stocks held on custody with the CBLC --
Companhia Brasileira de Liquidacao e Custodia (CBLC --
Brazilian Clearing and Depository Corporation), the
payment of Interest will be made to CBLC, which will
transfer them to the stockholders through the Depository
Agents.
The said Interest already has its value adjusted due to the
bonus of 100% in stocks, approved at the Special Stockholders'
Meeting held on March 12, 2007, which aimed only at adjusting
the value of the market quote to a more attractive level for
trading, providing the stocks with a better liquidity. Thus,
the stockholders will continue to receive an equal amount of
Interest.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
(NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on
serving low-and medium-income individuals in Brazil since the
1960s. Bradesco is Brazil's largest private bank, with more
than 3,000 banking branches, and also a leader in insurance and
private pension management. Bradesco has branches throughout
Brazil as well as one in New York, and Japan. Bradesco offers
Internet banking, insurance, pension plans, annuities, credit
card services (including football-club affinity cards for the
soccer-mad population), and Internet access for customers. The
bank also provides personal and commercial loans, along with
leasing services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 26, 2007, Fitch Ratings affirmed these issuer default
ratings on Bradesco, with a Stable Outlook:
-- Long-term foreign currency at 'BB+';
-- Long-term local currency at 'BBB-';
-- Individual rating at 'B/C';
-- Local currency short-term at 'F3';
-- Short-term at 'B';
-- Support rating of '4';
-- National short-term rating 'F1+(bra)'; and
-- National long-term rating 'AA+(bra)'.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2006, Standard & Poor's Ratings Services maintained the
'BB+' ratings on both of Banco Bradesco SA's foreign and local
currency counterparty credit rating, however it changed the
ratings outlook to positive from stable on both ratings:
-- Foreign currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Local currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Brazil national scale rating
* to brAA+/Positive/brA-1 from brAA+/Stable/brA-
BANCO DO BRASIL: Will Conduct 3-for-1 Stock Split
-------------------------------------------------
Banco do Brasil said in a filing with the Sao Paulo stock
exchange Bovespa that it will conduct a 3-for-1 stock split.
Business News Americas relates that Banco do Brasil will present
the proposal at an extraordinary shareholders' meeting on
April 25.
Banco do Brasil's net income increased 69.3% to BRL1.25 billion
in the fourth quarter of 2006, compared to the fourth quarter of
2005. Net income was also 37.6% more than the third quarter of
2006. Full-year net profits increased 45.5% to BRL6.04 billion
in 2006, from 2005, BNamericas states.
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings upgraded Banco do Brasil S.A.'s
Support rating to '3' from '4', and affirmed its other ratings:
-- Foreign currency Issuer Default Rating (IDR) at 'BB+';
-- Short-term foreign currency at 'B';
-- Local currency IDR at 'BB+';
-- Short-term local currency at 'B';
-- Individual rating at 'C/D';
-- National Long-term rating at 'AA(bra)'; and
-- Short-term rating at 'F1+(bra)'.
BANCO VOTORANTIM: Moody's Puts Ba1 Rating on Global Note Program
----------------------------------------------------------------
Moody's Investors Service assigned Ba1/Not Prime long- and
short-term foreign currency ratings to Banco Votorantim S.A.'s
or BV's existing US$2 billion Global Medium Term Note Program.
The outlook on the ratings is stable. Under the terms of the
program, BV acts through its Bahamas-based Branch, Banco
Votorantim S.A. - Nassau Branch. Moody's also assigned a Ba1
long-term foreign currency rating to BV-Nassau's BRL300 million
notes issued under the program, due 2014 and payable in US
dollars.
Moody's stated that the Ba1 rating indicates the joint
probabilities of default that are contained in Brazil's Ba1
country ceiling for foreign currency bonds and in BV's Ba1
global local currency rating, which incorporates its fundamental
credit quality. The Ba1 rating also reflects the probability of
a sovereign default implied by the Brazilian government's Ba2
foreign currency bond rating, and the debt's eligibility to
pierce the country ceiling. The Ba1 rating is at the country
ceiling for Brazil.
These ratings were assigned to Banco Votorantim S.A, Nassau
Branch:
-- US$ 2 billion Global MTN program: Ba1/ Not Prime
long- and short-term foreign currency bond ratings,
stable outlook.
-- BRL300 million notes: Ba1 long-term foreign currency
bond rating, stable outlook
Banco Votorantim, headquartered in Sao Paulo, Brazil, ranked as
the 10th largest bank in the Brazilian banking system by asset
size, with BRL$55 billion in assets as of December 2006
(approximately US$26.5 billion). BV has a well-established
wholesale franchise and has increasingly expanded its operations
into consumer finance, in a move that enhances earnings
diversification and recurrence. Moody's upgraded BV's financial
strength rating to D+ in December 2006, and confirmed its Ba1
global local currency rating to reflect the improvement in BV's
earnings quality as the bank diversifies into consumer lending,
while still boasting its very low cost base.
BLOCKBUSTER INC: S&P Raises Corporate Credit Rating to B from B-
----------------------------------------------------------------
Standard & Poor's Ratings Services raised the ratings, including
the Corporate Credit Rating, on Blockbuster Inc. to 'B' from
'B-'. This action reflects the improved operating performance
and improved credit protection metrics for the company. At the
same time, Standard & Poor's raised the recovery rating on the
bank facility to '3' from '5', indicating the expectation for
meaningful (50%-80%) recovery of principal in the event of
payment default. Standard & Poor's affirmed the stable outlook.
The ratings reflect its participation in the declining video
rental industry, extremely competitive home entertainment
market, operational challenges as the company diversifies its
distribution channels, dependence on decisions made by the movie
studios, and highly leveraged capital structure.
"Cash flow protection measures have strengthened and are
adequate for the rating category," said Standard & Poor's credit
analyst David Kuntz. "But Blockbuster will be challenged to
increase movie rental sales, given the industry's weak
fundamentals and strong competition."
Dallas-based 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.
COMPANHIA ENERGETICA: Can Present Privatization Model in 4 Mos.
---------------------------------------------------------------
Companhia Energetica de Sao Paulo Chief Executive Officer
Guilherme de Toledo said reports that the model to be used for
the firm's privatization could be ready four months after the
Sao Paulo state government decides on whether to proceed with
the sell-off.
Mr. de Toledo commented to Business News Americas, "The decision
has not been taken by governor [Jose] Serra yet. But once it
is, modeling will take 120 days if the company is privatized in
one block."
According to BNamericas, the Sao Paulo government disclosed
plans of privatizing Companhia Energetica.
Once the government decides to split Companhia Energetica up for
the sale, modeling could take over 120 days, BNamericas relates,
citing Mr. de Toledo. Then it would take longer to prepare the
sale due to the complexity of company assets and liabilities.
Companhia Energetica has a BRL7.3-billion debt, about BRL1.9
billion of which comes due over the next year. The company will
raise revenue and sell debt to restructure its liabilities over
the next five years to manageable levels, Mr. de Toledo told
BNamericas.
Headquartered in Sao Paulo, Brazil, CESP -- Companhia Energetica
de Sao Paulo is the country's third largest power generator,
majority owned by the State of Sao Paulo. CESP operates 6
hydroelectric plants with total installed capacity of 7,456 MW
and reported net revenues of BRL1,983 million in the last twelve
months through Sept. 30, 2006.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2007, Moody's Investors Service assigned a Ba3 foreign
currency rating to Companhia Energetica de Sao Paulo aka CESP's
proposed unsubordinated unsecured Real-denominated IPCA linked
notes due in 2015 in the amount of approximately US$250 million
in Real-equivalent. The 2015 notes shall be issued under the
US$975 million Medium Term Notes Program rated Ba3 by Moody's.
Moody's notes that, although the notes will be denominated in
Brazilian Real, all related payments will be made in US-
Dollars. Moody's said the ratings outlook is positive.
COMPANHIA PARANAENSE: Will Meet Shareholders on April 27
--------------------------------------------------------
Companhia Paranaense de Energia aka COPEL's shareholders are
called to the Annual Shareholders' Meeting, to be held at
2:00 pm, on April 27, 2007.
The shareholders will deliberate on these agendas:
1.) Analysis, discussion and voting of the Management Report,
balance sheet and other accounting statements, referring
to the fiscal year 2006;
2.) The Executive Board's proposal for the allocation of 2006
net income and the payment of the productivity based
profit sharing program for the same fiscal year;
3.) Analysis, discussion and voting of the Executive Board's
Proposal for a Capital Increase, upon the full
incorporation of retained income reserve for the fiscal
years 2004 and partial incorporation of the fiscal year
2005, for they were allocated to the company's investment
program and, consequent amendments to article 4 of the
company's Bylaws, in compliance with the prerogative
foreseen at paragraph 1 of the article 7, of the
company's Bylaws, due to the conversion of PNA shares
into PNB shares, at the request of shareholders;
4.) Election of Board of Directors members, due to the end of
the term of office;
5.) Election of Fiscal Committee members, due to the end of
the term of office;
6.) Establishment of Management and Fiscal Committee members'
compensation; and
7.) Ratification of the newspapers where the company will
publish its information as foreseen at the Federal Law
6404/76.
Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Parana and has a generating capacity of nearly 4,600
MW, primarily from hydroelectric plants. COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services. The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitely postponed. In response, COPEL is
re-evaluating its corporate structure. The government of Parana
controls about 59% of COPEL.
* * *
As reported in the Troubled Company Reporter on Dec. 13, 2006,
Moody's America Latina upgraded the corporate family rating of
Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its
global scale and to Aa2.br from A3.br on its Brazilian national
scale.
COMPANHIA SIDERURGICA: Blast Furnace Mishap to Harm 2006 Results
----------------------------------------------------------------
Rodrigo Ferraz, a mining and metals analyst with brokerage
Brascan Corretora, told Business News Americas that an accident
at Companhia Siderurgica Nacional's blast furnace no. 3 will
negatively affect the latter's financial results for 2006.
BNamericas relates that the blast furnace reached full capacity
in August 2006, after a January 2006 accident discontinued
operations until June 2006.
Companhia Siderurgica had to acquire slabs at high prices --
US$400 per ton, a much higher price than the firm's average
production cost of up to US$250 per ton, BNamericas notes,
citing Mr. Ferraz.
Mr. Ferraz told BNamericas, "I believe CSN's [Companhia
Siderurgica] net profit will fall 28% compared to 2005, while
net revenue could decline some 10% and Ebitda could fall almost
30%."
According to BNamericas, Companhia Siderurgica's net income was
BRL2.01 billion in 2005. Its net revenue was BRL10.0 billion,
while its Ebitda was BRL4.59 billion.
Mr. Ferraz commented to BNamericas, "The margin will be much
worse in 2006 compared to what CSN usually reports, but due to
internal, not market conditions."
Companhia Siderurgica will likely see the negative effect
through early 2007 of the slabs acquired in 2006. Meanwhile,
margins will likely recover beginning in the second quarter of
2007. The overall outlook is positive for Brazilian
steelmakers, BNamericas states, citing Mr. Ferraz.
Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages. This is in addition to the group's strong
market position in the fairly concentrated steel industry in
Brazil.
* * *
As reported on Feb. 2, 2007, Standard & Poor's Ratings Services
affirmed its 'BB' local- and foreign-currency corporate credit
ratings on Brazil-steel maker Companhia Siderurgica Nacional or
CSN and removed them from CreditWatch, where they were placed on
Nov. 17, 2006, with negative implications. S&P said the outlook
is stable.
DURA AUTOMOTIVE: RSM Richter Delivers 2nd Report to Ontario Ct.
---------------------------------------------------------------
RSM Richter, Inc., Dura Automotive Systems Inc. and its debtor-
affiliates' information officer, delivered its second report
with the Ontario Superior Court of Justice (Commercial List) in
Canada to:
(a) provide updates with respect to developments in the
Debtors' restructuring proceedings since Dec. 11, 2006;
(b) summarize and seek approval of its activities since
Dec. 11, 2006; and
(e) recommend that the Ontario Court approve the Debtors'
request for an extension of its stay of proceedings to
June 15, 2007.
A full-text copy of RSM Richter's First Report is available for
free at http://ResearchArchives.com/t/s?1c2b
RSM Richter informs the Ontario Court that the Debtors'
operations at their Canadian facilities in Brantford, Ontario,
will be discontinued by June 2007. Operations at the Debtors'
facilities in Stratford, Ontario, will be discontinued by
November.
RSM Richter reported these material developments with respect to
the Debtors' Canadian operations:
(1) the Canadian facilities at Bracebridge, Stratford, and
Brantford, comprising the Debtors' Canadian operations,
have continued to operate in the normal course, with
minimal disruption. The Canadian Operations, with RSM
Richter's assistance, have resolved sourcing issues that
arose with certain suppliers as a result of the Debtors'
Chapter 11 cases;
(2) the Bracebridge Facility terminated 34 hourly employees
in January 2007, as contemplated in the Debtors' 50 Cubed
Plan;
(3) the Stratford Facility has scheduled for Mar. 16, 2007,
and announced layoffs for 22 hourly employees; and
(4) the Brantford Facility has recalled five hourly
employees, previously laid off, as a result of increased
demand from Chrysler Canada in respect of its Mini-Van
program.
Moreover, since Dec. 11, 2006, RSM Richter:
* reviewed and commented on certain of the Debtors' draft
application materials;
* reviewed materials filed in the U.S. Chapter 11
proceedings;
* posted a copy of various Court materials on its Web site;
* spoke routinely with each Canadian facility in order to
determine if any critical issues are affecting
operations;
* communicated with the Brantford Facility, and the
Canadian Debtors' counsel, Davies Ward Phillips and
Vineberg LLP, regarding a supplier of paintline
chemicals, Henkel Canada, which proposed changing its
payment terms and delaying shipments to the facility;
* dealt with Davies Ward regarding restructuring matters
generally;
* attended a meeting with DWPV and with labor union
representatives;
* responded to queries from creditors or suppliers
concerning the Debtors' proceedings;
* attended conference calls with the Canadian Debtors and
Davies Ward to discuss operational issues and other
developments; and
* corresponded with Davies Ward to stay apprised of
developments in the Debtors' Chapter 11 proceedings.
Stay Extended to June 15
At the Debtors' request, Justice Campbell of the Ontario Court
extends to June 15, 2007, the expiration of the stay enjoining
and restraining creditors and parties-in-interest from
initiating or continuing actions in any court or tribunal in
Canada against the Debtors or that affect the their ability to
carry on their business.
RSM Richter informed the Ontario Court that the Debtors have
been diligently pursuing restructuring initiatives and have been
acting in good faith.
The Court approves the activities and conduct of RSM Richter as
set forth in the Second Report.
RSM Richter's Fees & Disbursements Request
RSM Richter sought and obtained the Ontario Court's approval of:
(a) its fees and disbursements from Nov. 1, 2006, to Jan. 31,
2007, for CDN$53,254 in connection with the Debtors'
Chapter 11 cases; and
(b) the fees and disbursements of its legal counsel, Fasken
Martineau DuMoulin LLP, through Nov. 30, 2006,
aggregating CDN$3,461.
About DURA Automotive Systems Inc.
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.
The Debtors' exclusive plan-filing period expires on
March 21, 2007. (Dura Automotive Bankruptcy News, Issue No. 16;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
DURA AUTOMOTIVE: Lease-Decision Period Extended to May 28
---------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware extended Dura Automotive Systems Inc.
and its debtor-affiliates time to assume, assume and assign or
reject unexpired leases of nonresidential property through and
including May 28, 2007, pursuant to Section 365(d)(4) of the
Bankruptcy Code.
Four months since their bankruptcy filing, the Debtors, together
with their advisors, have been focusing on a series of threshold
operational and legal issues that have required immediate
attention in advance of, and in some cases, concomitant with
developing their business plan, relates Jason M. Madron, Esq.,
at Richards, Layton & Finger, P.A., in Wilmington, Delaware.
The business plan development process is approaching completion
and will allow for meaningful negotiations with customers,
creditors and other constituencies to commence in earnest.
Finishing the business plan and making substantial progress in
the negotiations are necessary predicates for Debtors to
develop, and ultimately file, a realistic proposed Chapter 11
plan of reorganization, Mr. Madron tells the Court.
With assistance from AlixPartners, LLP, the Debtors' bottom-up
operational analysis is nearing completion. Upon completion,
the preliminary business plan will allow the Debtors to identify
where and to what extent they should maintain their
manufacturing footprint in North America. Only then will the
Debtors be able to properly assess which of the approximately
eleven real Property Leases they wish to exit or maintain, Mr.
Madron states.
Mr. Madron informs the Court that the Debtors have not yet
completed their analysis of the individual real property Leases
to determine whether efficiencies can be generated in connection
with their operational restructuring initiatives.
The requested time extension will enable the Debtors to continue
the process of restructuring their business operations in an
orderly manner, including the potential assumption or rejection
of certain Real Property Leases. The extension will also afford
the Debtors the ability to determine if there are any cost-
saving opportunities that would enable the Debtors to increase
overall operational efficiency, thus resulting in an increase of
the Debtors' overall profitability, Mr. Madron asserts.
About DURA Automotive Systems Inc.
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.
The Debtors' exclusive plan-filing period expires on March 21,
2007. (Dura Automotive Bankruptcy News, Issue No. 16;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
DURA AUTOMOTIVE: Banner & Witcoff Okayed as Special IP Counsel
--------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware authorized Dura Automotive Systems Inc.
and its debtor-affiliates to hire Banner & Witcoff, Ltd., as
special counsel in matters of intellectual property advice,
protection and enforcement, nunc pro tunc to Dec. 21, 2006.
David L. Harbert, Dura Automotive Systems, Inc.'s chief
financial officer, relates that since April 15, 1992, Banner &
Witcoff provided legal services to the Debtors primarily for the
purpose of filing and enforcing their patents and other
intellectual property. During that time, on behalf of the
Debtors, Banner & Witcoff prepared and prosecuted numerous
patents to issuance by the United States Patent Office and has
prosecuted issued or still pending corresponding foreign
patents. In addition, Banner represented the Debtors in a
number of patent litigation matters.
Banner & Witcoff has also represented the Debtors in trademark
matters, including filing applications for new federal trademark
registrations, maintaining existing registrations and evaluating
possible trademark infringement actions against third parties,
Mr. Harbert informs the Court.
Banner & Witcoff has worked closely and continuously with the
Debtors' current in-house intellectual property counsel, Dean B.
Watson, Esq., and each of his two predecessors. In the course
of that representation, Banner has become familiar with the
Debtors, their businesses, personnel and various intellectual
property practices and policies, including aspects of their
corporate structure and history. Banner has also become
familiar with many of the Debtors' most important products and
customers, in addition to their financial situation and overall
business objectives.
According to Mr. Harbert, Banner & Witcoff represents the
Debtors in two significant ongoing patent enforcement projects:
(a) the enforcement of at least two patents owned by the
Debtors covering sliding window assemblies for motor
vehicles against a competitor -- an urgent and
significant action, and the most significant matter for
which special counsel status is now sought; and
(b) an ongoing evaluation of possible enforcement actions
against infringers of the Debtors' trademark and other
rights, including against importers, distributors and
sellers of trailer couplers.
Banner & Witcoff also represents the Debtors in approximately
80 pending or planned patent applications, which includes
necessary corporate, commercial, intellectual property,
litigation, or trade-related legal services.
Mr. Harbert relates that the Debtors originally included Banner
& Witcoff in the list of ordinary course professionals submitted
to Court on Oct. 30, 2006. Pursuant to the OCP Order dated
Nov. 21, 2006, the fees paid to ordinary course professionals by
the Debtors may not exceed US$25,000 per month on a average over
a rolling two-month period while the Chapter 11 cases are
pending.
The Debtors expect that Banner & Witcoff's fees in relation to
the Slider Patent Enforcement Action and other intellectual
property matters will exceed the OCP Cap, thus, they are filing
the Application.
The Debtors sought to retain Banner & Witcoff to continue their
representation of the Debtors in the matters of intellectual
property, and to advise the Debtors and their boards of
directors with respect to those issues.
As special counsel, Banner & Witcoff will be involved in the
bankruptcy and reorganization issues as they relate to
intellectual property aspects of the Debtors' operations, but
will not serve as the primary bankruptcy and reorganization
counsel to the Debtors.
The Debtors maintain that Banner & Witcoff's services will
complement, rather than duplicate, those of their reorganization
co-counsel, Kirkland & Ellis LLP, and Richards, Layton & Finger,
P.A.
Banner & Witcoff will be paid on an hourly basis, plus
reimbursement of its actual, necessary expenses.
Banner & Witcoff's current hourly rates are:
Professional Hourly Rate
------------ -----------
Partners US$268 to US$593
Associates US$210 to US$265
Para-professionals US$105 to US$175
Other professionals US$180 to US$285
Frederic M. Meeker, Esq., a partner at Banner & Witcoff, attests
that his firm:
(a) has not received any promises as to compensation in
connection with the Debtors' Chapter 11 cases other than
in accordance with the provisions of the Bankruptcy Code;
(b) has no agreement with any other entity or person to
share:
* any compensation it has received or may receive for
services rendered in connection with the cases; or
* any compensation another entity or person has
received or may receive for services rendered in
connection with these Reorganization Cases.
About DURA Automotive Systems Inc.
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Delaware Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors'
co-counsel. Baker & McKenzie acts as the Debtors' special
counsel. Togut, Segal & Segal LLP is the Debtors' conflicts
counsel. Miller Buckfire & Co., LLC is the Debtors' investment
banker. Glass & Associates Inc., gives financial advice to the
Debtor. Kurtzman Carson Consultants LLC handles the notice,
claims and balloting for the Debtors and Brunswick Group LLC
acts as their Corporate Communications Consultants for the
Debtors. As of July 2, 2006, the Debtor had US$1,993,178,000 in
total assets and US$1,730,758,000 in total liabilities.
The Debtors' exclusive plan-filing period expires on
March 21, 2007. (Dura Automotive Bankruptcy News, Issue No. 16;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
EL PASO: Will Pump First Oil in Camamu Basin in 2008
-----------------------------------------------------
An El Paso Corp. official told reporters that the company will
pump its first oil in Brazil's Camamu basin in late 2008.
Business News Americas relates that El Paso is drilling two
wells in the Camamu basin. The oil found there is high in
paraffin content, which demands a specific heating technology.
El Paso initially aims for at least 12,000 barrels per day
production in the wells.
El Paso Materials and Contracts Manager Fernando Quintas
commented to the press, "El Paso is drilling two wells right now
in the Pinauna field to have an idea of how big they are. Our
production process will depend on that."
El Paso still has to meet federal environmental regulator
Ibama's demands, which include spill controls, BNamericas
underscores, citing Mr. Quintas.
Due to environmental measures, El Paso's oil projects in the
region will be 10% more expensive, BNamericas states.
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.
PETROLEO BRASILEIRO: Investing BRL3.12 Billion in Santos Unit
-------------------------------------------------------------
Brazil's state oil company Petroleo Brasileiro SA's press office
told Business News Americas that the firm has allocated BRL3.12
billion for investments in UN-BS, its Santos business unit this
year.
BNamericas underscores that UN-BS was created in 2005 and is one
of Petroleo Brasileiro's new development areas. Petroleo
Brasileiro disclosed in 2006 plans to invest US$18 billion
through 2015 in five development areas that will have 14 oil and
gas production units.
The BRL3.12 billion investment includes exploration and
production assets in the Santos basin, BNamericas relates,
citing Petroleo Brasileiro.
According to BNamericas, Petroleo Brasileiro's 2007 budget
totaled BRL55 billion.
Petroleo Brasileiro told BNamericas that the Santos basin
project includes:
-- natural gas field Mexilhao's development,
-- production boost at Merluza field, and
-- the Caravela and Cavalo Marinho fields' initial
development for the start of production in 2010.
Investment in UN-BS' output for this year will be BRL2.2
billion. It will include the construction of pipelines and
natural gas-processing units, BNamericas notes, citing Petroleo
Brasileiro.
The report says that Petroleo Brasileiro's investment for
exploration this year is budgeted at BRL900 million, including
BRL580 million in recently acquired exploration blocks in the
Santos basin.
Petroleo Brasileiro told BNamericas that it will produce 30
million cubic meters per day of natural gas and 100,000 barrels
per day of oil in the Santos basin by 2011, a starting point for
future growth.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Signs Joint Biofuel Deal with Eni
------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras and Italian Eni S.p.A., in
a ceremony held at the Planalto Palace, in Brasilia, signed a
Memorandum of Understandings for the joint development of a set
of new biofuel production technologies. The President of the
Republic, Luiz Inacio Lula da Silva, Italy's Prime Minister,
Romano Prodi, Petrobras' Downstream director, Paulo Roberto
Costa, and Eni's CEO, Paulo Scaroni, participated in the event.
To president Lula, the agreement symbolizes a great advancement
in the biofuel area, the volume and diversity of which will grow
a lot. "Brazil's project is to increase biofuel participation
in the international energy grid."
Italy's Prime Minister, Romano Prodi, highlighted the fact that
the agreement will be a strong, powerful political instrument
for Brazil and Italy to work together in the academic and
technological areas and, as a result, to help African countries.
"And ENI will assist in the partnership process with Brazilian
companies."
Petrobras' downstream director, Paulo Roberto Costa, called
attention to the Italian technology and said Petrobras and ENI,
together, have an important mission ahead of them. "Petrobras
and ENI technicians will already start working tomorrow."
With the MOU, Petrobras and Eni seek to develop new technology
for large scale biofuel production. The joint studies are
expected to include raw material selection for refining and,
also, possible heavy oil refining improvements in Brazil.
Petrobras, which developed the technology to produce H-BIO and
created alternative possibilities for biodiesel production, Eni,
which devised a new catalytic process, and Eni Slurry
Technology, which converts heavy refining residues to
distillates, commit to:
-- Assess the possibility of establishing a strategic
alliance in countries where conditions are appropriate to
produce biofuels and to market them in the international
market;
-- Evaluate the application of EST's technology in Brazil, in
a wider-ranging partnership involving the refining and
transportation area and, also, exploration and production;
-- Identify the areas and the scope of technical and
viability studies to be developed in a possible
partnership, and negotiate relevant agreements aimed at
implementing projects in Brazil and in other countries.
A workgroup will be created with technicians from both companies
to supervise the studies and identify projects to be developed
in partnership. Selected projects will then be submitted to
approval by the corporations.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Wants 15-Year Reserves-Production Ratio
------------------------------------------------------------
Brazilian state oil company Petroleo Brasileiro SA Chief
Executive Officer Jose Gabrielli said in a televised interview
that the company is aiming for a long-term reserves-production
ratio of at least 15 years.
Petroleo Brasileiro expects that after 2015, it will have a
reserves-to-production ratio of over 15 years, including new
reserves that it will incorporate, Business News Americas
relates, citing Mr. Gabrielli.
Mr. Gabrielli told BNamericas that Petroleo Brasileiro has a
US$87-billion investment plan for 2007 to 2011. The firm aims
to reach an output rate of 3.4 million barrels of oil equivalent
per day in 2011 and 4.5 million barrels of oil equivalent per
day in 2015.
According to BNamericas, Petroleo Brasileiro is producing over
two million barrels of oil equivalent per day.
Mr. Gabrielli explained to BNamericas that the expansion takes
into account only existing reserves. Petroleo Brasileiro's
current proved reserves is at 13 billion barrels of oil
equivalent, of which 50% are yet to be developed.
"Since 2003, we have turned around a policy of reducing our
presence in oil exploration in Brazil and expanded our
exploration assets. We now have interests in exploration blocks
from the Pelotas basin [in the country's far south region] to
the north of the Amazon [Delta region]. When we discover new
oil reserves, we have to report to the regulator," Mr. Gabrielli
commented to BNamericas.
BNamericas underscores that Mr. Gabrielli also called for the
acceleration of the federal government's BRL504-billion growth
acceleration program. According to him, Petroleo Brasileiro
represents 30% of all investments outlined in the program,
especially through the construction of 4,600 kilometers of new
natural gas pipelines and the development of natural gas fields
in the country's south. The lack of local suppliers and
management of large contracts within the company are some of its
obstacles.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil.
Petrobras has operations in China, India, Japan, and Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PRG SCHULTZ: Dec. 31 Balance Sheet Upside-Down by US$104.5-Mil.
---------------------------------------------------------------
PRG Shultz International Inc.'s balance sheet at Dec. 31, 2006,
showed US$178.7 million in total assets, US$272 million in total
liabilities, and US$11.2 million in mandatory redeemable
participating preferred stock, resulting in US$104.5 million
stockholders' deficit.
PRG Shultz International Inc. reported a net loss of US$21.1
million on revenues of US$266.1 million for the year ended
Dec. 31, 2006, compared with a net loss of US$207.7 million on
revenues of US$292.2 million for the year ended Dec. 31, 2005.
The 2006 loss included a non-cash charge of US$10 million
resulting from the company's successful financial restructuring
completed in March 2006, a charge of US$8 million for severance
and operational restructuring costs, charges of US$4.7 million
for stock-based compensation, a charge of US$1.7 million related
to the voluntary forfeiture of stock options by the company's
chief executive officer, and a loss on discontinued operations
of US$833,000.
The 2005 loss included the non-cash charge of US$170.4 million
for impairment of goodwill and other intangibles, a charge of
US$11.6 million associated with the company's operational
restructuring, a charge of US$3.9 million for severance costs
related to the departures of the company's former chief
executive officer and former vice Chairman, a loss on
discontinued operations of US$2.2 million and a charge of
US$400,000 for stock-based compensation.
At Dec. 31, 2006, the company had cash and cash equivalents of
US$35 million and had no borrowings against its revolving credit
facility. Total debt outstanding at year-end was US$139.8
million and included a US$25 million variable rate term loan due
2010, US$51.5 million in principal amount of 11.0% Senior Notes
Due 2011, $62.5 million in principal amount of 10.0% Senior
Convertible Notes Due 2011, and an US$800,000 capital lease
obligation. In addition, the company had 9.0% Series A
preferred stock outstanding with an aggregate liquidation
preference of US$11.2 million, which is mandatory redeemable in
2011.
"The first full year of our turnaround has put our company on a
solid footing for attacking our future opportunities," said
James B. McCurry, chairman, president and chief executive
officer. "A realigned cost structure and a focused commitment
to meeting the objectives of our most important clients have
transformed our core recovery audit business into a reliable
source of cash for paying down debt and investing in new sources
of future revenue. We are learning and developing new ways to
bring value to our strong existing base of clients throughout
the world. In addition, the impending national expansion of
recovery audit of Medicare to all fifty states, congressionally
mandated late last year, provides us with an exciting growth
opportunity that builds on our proven experience auditing
Medicare payments in California since 2005."
Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1c29
About PRG Schultz
Headquartered in Atlanta, PRG Schultz International Inc.
(NasdaqGM: PRGX) -- http://www.prgx.com/-- is the world's
leading recovery audit firm, providing clients throughout the
world with insightful value to optimize and expertly manage
their business transactions. Using proprietary software and
expert audit methodologies, PRG industry specialists review
client purchases and payment information to identify and recover
overpayments.
The company has operations in Brazil, Mexico, and Puerto Rico.
RHODIA SA: Presents Mulhouse Dornach Closure Plans
--------------------------------------------------
Rhodia S.A. presented a plan to close the Mulhouse Dornach site
in France to its Work Council. The closure would take effect on
Dec. 31, 2007.
An economic analysis of the site's business activities has
illustrated a difficult competitive situation being faced by
agrochemical and pharmaceutical intermediates. Considerable
efforts were made to cut costs and increase prices, but these
have not halted the decline in these businesses.
Rhodia will make effort to propose a redeployment solution to
all employees concerned. The outline agreement signed on
March 14, with the group's two main trade union allows for the
redeployment of staff impacted to be anticipated.
As of March 23, alternative employment has been identified for
more than 100 employees out of the 135 based at the site.
About Rhodia
Headquartered in Paris, France, Rhodia SA (NYSE: RHA) --
http://www.rhodia.com/-- is a global specialty chemicals
company partnering with major players in the automotive,
electronics, pharmaceuticals, agrochemicals, consumer care,
tires, and paints and coatings markets. Rhodia offers tailor-
made solutions combining original molecules and technologies to
respond to customers' needs. Rhodia employs around 19,500
people worldwide. The company has operations in Brazil. Rhodia
is listed on Euronext Paris and the New York Stock Exchange.
* * *
As of March 9, Rhodia S.A. carries Moody's 'B1' Long-term
Corporate Family Rating, 'B2' Senior Unsecured Debt and 'B3'
Senior Subordinate.
Fitch Ratings upgraded the Issuer Default rating of Rhodia SA to
'BB-' from 'B+'; the EUR300 million revolving credit facility
rating to 'BB+' from 'BB'; the senior notes due 2010 and 2013
rating to 'BB-' from 'B+'; and the senior subordinated notes due
2011 rating to 'B' from 'B-'. Fitch said the Outlook on the IDR
is stable.
RHODIA SA: S&P Affirms B+ Ratings on Continuing Improvements
------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
France-based chemicals producer Rhodia S.A. to positive from
stable, reflecting continuing good business and financial
momentum.
At the same time, the 'B+' long-term and 'B' short-term
corporate credit ratings on the group were affirmed. With 2006
sales of EUR5 billion, Rhodia is one of the largest chemical
groups in Europe.
The outlook revision reflects Rhodia's significantly improved
operational and financial results in 2006, due in particular to:
-- management's turnaround strategy;
-- the group's track record in terms of achievements against
its plan; and
-- the potential for a higher rating in the medium term if
Rhodia is able to generate positive free operating cash
flow and improve its cash flow metrics.
Rhodia's financial profile remains the main rating constraint,
although S&P believe that it has room for improvement. Free
funds from operations to adjusted debt remained weak in 2006,
albeit stronger than in previous years. FOCF was negative due
to still-material cash restructuring expenses, higher
inventories, and higher interest relative to EBITDA. This
should improve, however, given higher FFO and only moderately
higher capital expenditures.
The group's business profile has improved in recent years. The
2006 EBITDA margin was in line with or better than peers,
showing marked progress from subpar performance in the past,
reaching about 14% compared with 9.5% in 2005. This reflects in
large part the group's so far successful three-pillar turnaround
plan.
"The positive outlook reflects the potential for an upgrade in
the medium term if Rhodia maintains good operating momentum and
financial focus, enabling the group to achieve positive FOCF and
higher cash flow protection measures," said Standard & Poor's
credit analyst Lucas Sevenin.
The outlook could be revised back to stable if operating
performance and market conditions deteriorate materially against
expectations, notably in the core polyamide market, or if the
return to positive FOCF is slower than expected.
TELE NORTE: Government May Help Company on Way Brasil Purchase
--------------------------------------------------------------
Bloomberg reports that the Brazilian government may appeal
telecoms regulator Anatel's decision to block the proposed
acquisition of Way Brasil by Oi fka Tele Norte Leste
Participacoes.
Brazilian Communications Minister Helio Costa told Bloomberg,
"We will find a way to contest the decision if consumers are
being affected. I am very concerned."
As reported in the Troubled Company Reporter-Latin America on
March 23, 2007, Anatel rejected Oi's acquisition of Way Brasil,
claiming that Oi would breach its fixed line telecoms concession
contract if it offered cable TV services in its own region.
Tele Norte, through its mobile phone unit Oi, acquired the cable
television firm at an auction for BRL132 million. Tele Norte
Chief Executive Officer Luiz Falco said that the authorization
of Way TV already took a long time. The acquisition was totally
legal from a regulatory perspective as Tele Norte was the sole
bidder in a public auction.
Business News Americas relates that Oi aims to get a cable TV
license by acquiring Way Brasil. It is part of its plan to
compete in the triple play services market.
Oi Regulatory Affairs Director Alain Riviare told news daily
Valor Economico that the firm may appeal the decision.
The government is making a proposal to revise the telecoms law.
It will send the proposal to congress for a vote this year,
BNamericas states, citing Minister Costa.
Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America. The
company markets its services under its Telemar brand name. Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.
The Troubled Company Reporter-Latin America reported on
March 6, 2007, Tele Norte said that it would unify its fixed,
mobile, Internet and entertainment services under the Oi brand.
Tele Norte's fixed line segment would be called Oi Fixo, while
the Internet service Velox would be renamed Oi Velox. The
integration would be gradually adopted through August 2007.
* * *
As reported in the Troubled Company Reporter on Feb. 5, 2007,
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Brazil-based telecom service
providers Tele Norte Leste Participacoes SA and Telemar Norte
Leste SA, jointly referred to as Telemar, to 'BB+' from 'BB'.
At the same time, Standard and Poor's revised its ratings on the
combined BRL300 million outstanding local debentures of Telemar
Participacoes SA in Brazil National Scale to 'brAA-' from
'brA+', and assigned o 'brAA-' rating to TmarPart's proposed
five-year BRL$250 million debentures.
* BRAZIL: Federal Court Orders Closure of Cargill's Terminal
------------------------------------------------------------
Published reports say that a Brazilian federal court ordered the
closure of the grain terminal operated by agriculture firm
Cargill Agricola at Santarem port in Para.
Business News Americas relates that Cargill Agricola's operating
license for the port was suspended and the contract was revoked
due to lacking environmental impact assessments of the terminal.
If proven responsible for the lack of data required for the
terminal, Cargill Agricola will be fined BRL10,000 for each day
that the report is not submitted to Ibama, the federal
environmental regulator, BNamericas notes.
Cargill Agricola told the Brazilian press that it carried out
the required environmental studies and that it has the necessary
federal. The company will challenge the federal court's
decision.
* * *
As reported on Nov. 24, 2006, Standard & Poor's Ratings Services
revised its outlook on its long-term ratings on the Federative
Republic of Brazil to positive from stable. Standard & Poor's
also affirmed these ratings on the Republic of Brazil:
-- 'BB' for long-term foreign currency credit rating,
-- 'BB+' for long-term local currency credit rating, and
-- 'B' for short-term currency sovereign credit rating.
* BRAZIL: Gov't May Help Tele Norte on Way Brasil Acquisition
------------------------------------------------------------
Bloomberg reports that the Brazilian government may appeal
telecoms regulator Anatel's decision to block the proposed
acquisition of Way Brasil by Oi fka Tele Norte Leste
Participacoes.
Brazilian Communications Minister Helio Costa told Bloomberg,
"We will find a way to contest the decision if consumers are
being affected. I am very concerned."
As reported in the Troubled Company Reporter-Latin America on
March 23, 2007, Anatel rejected Oi's acquisition of Way Brasil,
claiming that Oi would breach its fixed line telecoms concession
contract if it offered cable TV services in its own region.
Tele Norte, through its mobile phone unit Oi, acquired the cable
television firm at an auction for BRL132 million. Tele Norte
Chief Executive Officer Luiz Falco said that the authorization
of Way TV already took a long time. The acquisition was totally
legal from a regulatory perspective as Tele Norte was the sole
bidder in a public auction.
Business News Americas relates that Oi aims to get a cable TV
license by acquiring Way Brasil. It is part of its plan to
compete in the triple play services market.
Oi Regulatory Affairs Director Alain Riviare told news daily
Valor Economico that the firm may appeal the decision.
The government is making a proposal to revise the telecoms law.
It will send the proposal to congress for a vote this year,
BNamericas states, citing Minister Costa.
About Tele Norte
Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America. The
company markets its services under its Telemar brand name. Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.
* * *
As reported on Nov. 24, 2006, Standard & Poor's Ratings Services
revised its outlook on its long-term ratings on the Federative
Republic of Brazil to positive from stable. Standard & Poor's
also affirmed these ratings on the Republic of Brazil:
-- 'BB' for long-term foreign currency credit rating,
-- 'BB+' for long-term local currency credit rating, and
-- 'B' for short-term currency sovereign credit rating.
* RIO DE JANEIRO: Moody's Affirms Ba3 Currency Issuer Ratings
-------------------------------------------------------------
Moody's has affirmed the Ba3 global scale local and foreign
currency issuer ratings of the City of Rio de Janeiro and
assigned an A2.br national scale rating to the city. The
ratings have a stable outlook.
The ratings reflect the city's satisfactory financial
performance supported by a sizeable tax base and prudent
financial practices. These features have allowed Rio to produce
operating surpluses annually and to generate small financing
surpluses in most years.
These results have been achieved despite fiscal challenges,
including rigidity in the city's expenditure base related to its
social service responsibilities, significant infrastructure
requirements and weak growth in government transfers. Increased
demands for education, health and security services, the need to
extend services to disadvantaged areas of the city and the
assumption of responsibilities that are generally provided by
higher levels of government have also led to an increase in the
city's largely inflexible personnel costs.
The city has managed these cost pressures by improving tax
collection systems and adjusting capital expenditures downward
when required, resulting in financing surpluses (excluding
amortization) of 2.2% of revenues registered in 2005 and 4.6%
estimated for 2006. However, Moody's explained, in 2007 the
city will have to contend with potential cost pressures stemming
from the completion of construction of facilities for the
upcoming Pan American Games.
The city's debt burden is manageable and has eased in recent
years due to the impact of favorable price trends on inflation-
indexed debt and aided by the effect of the appreciation of the
domestic currency on debt payable in or indexed to the US
dollar. New borrowing has remained minimal in recent years due
to federal restrictions on debt issuance imposed as part of the
debt refinancing agreement of 1999 and the Fiscal Responsibility
Law.
As Brazil's second largest city, Rio has a large and diversified
service-based economy, which provides support for the generation
of own-source revenues, reducing its reliance on transfers from
senior levels of government.
Moody's notes that the outlook for the ratings could improve
should the city successfully contain costs related to the Pan
American Games and maintain a favorable fiscal performance in
2007.
===========================
C A Y M A N I S L A N D S
===========================
GGR HOLDINGS: Will Hold Last Shareholders Meeting on April 20
-------------------------------------------------------------
GGR Holdings Ltd. will hold its final shareholders meeting on
April 20, 2007, at 10:00 a.m., at the office of the company.
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:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
P.O. Box 908, Grand Cayman KY1-9002
Cayman Islands
INVESTCORP HILDING: Sets Last Shareholders Meeting for May 1
------------------------------------------------------------
Investcorp Hilding (Sedco) Investing Ltd. will hold its final
shareholders meeting on May 1, 2007, at 1:30 p.m., at the office
of the company.
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:
Westport Services Ltd.
Attention: Evania Ebanks
P.O. Box 1111
Grand Cayman, Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
LIBERTYVIEW GLOBAL: Last Shareholders Meeting Is on April 20
------------------------------------------------------------
Libertyview Global Volatility Fund Ltd. will hold its final
shareholders meeting on April 20, 2007, at 11:00 a.m., at the
office of the company.
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:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
P.O. Box 908, Grand Cayman KY1-9002
Cayman Islands
LOANINVEST LTD: Will Hold Last Shareholders Meeting on April 20
---------------------------------------------------------------
Loaninvest Ltd. will hold its final shareholders meeting on
April 20, 2007, at 10:30 a.m., at the office of the company.
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:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
P.O. Box 908, Grand Cayman KY1-9002
Cayman Islands
PARMALAT SPA: Converted Warrants Hike Share Capital by EUR6 Mln
---------------------------------------------------------------
Parmalat S.p.A. disclosed that following the allocation of
shares to creditors of the Parmalat Group, the subscribed and
fully paid up share capital has now been increased by
EUR6,341,475 to EUR1,648,337,620 from EUR1,641,996,145.
The share capital increase is due to the assignation of 128,873
shares and to the conversion of warrants for 6,212,602 shares.
The latest status of the share allotment is that 43,540,879
shares representing around 2.6% of the share capital are still
in a deposit account c/o Parmalat S.p.A., of which:
-- 16,147,888 or 1.0% of the share capital, registered in the
name of individually identified commercial creditors, are
still deposited in the intermediary account of Parmalat
S.p.A. centrally managed by Monte Titoli (compared with
16,147,993 shares as at Feb. 23, 2007);
-- 27,392,991 or 1.7% of the share capital registered in the
name of the Foundation, called Fondazione Creditori
Parmalat, of which:
-- 120,000 shares representing the initial share
capital of Parmalat S.p.A. (unchanged); and
-- 27,272,991 or 1.7% of the share capital that pertain
to currently undisclosed creditors (compared with
28,223,948 shares as at Feb. 23, 2007).
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 about
40 brand product lines, which include 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: Eyes Acquisitions & Investments This Year
-------------------------------------------------------
Parmalat S.p.A. is planning on several acquisitions this year as
the company posted its first net profit since its December 2003
collapse, Bloomberg News reports citing Chief Executive Enrico
Bondi.
Mr. Bondi said that Parmalat will raise enough money in 2007 to
acquire firms and stimulate external growth, Bloomberg News.
The chief executive noted that Parmalat's finances in 2006 were
boosted by purged debt, proceeds from legal settlements and a
EUR192.5 million in net profit.
Carlo Prevedini, Parmalat's chief operating officer, revealed
that the company will invest up to EUR170 million in 2007,
around EUR70 million of which will be used to improve plants in
Australia and Canada.
Bloomberg News comments that Parmalat is selling more profitable
goods and recouping funds through lawsuits against banks and
auditors.
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 about
40 brand product lines, which include 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.
RYMSLECT SPC: Proofs of Claim Filing Is Until April 30
--------------------------------------------------------
Rymslect SPC, Ltd.'s creditors are given until April 30, 2007,
to prove their claims to Glen Trenouth, 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.
Rymslect SPC's shareholder decided on Feb. 6, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Glen Trenouth
P.O. Box 31118
Grand Cayman KY1-1205
Cayman Islands
Telephone: (345) 943 8800
Fax: (345) 943 8801
=========
C H I L E
=========
FREEPORT-MCMORAN: Moody's Raises Corporate Family Rating to Ba2
---------------------------------------------------------------
Moody's Investors Service upgraded Freeport-McMoRan Copper &
Gold Inc.'s or Freeport's corporate family rating to Ba2 from
Ba3 and undertook a number of related rating actions:
-- upgraded to Baa2 (LGD1, 2%) from Baa3 the senior
secured rating on Freeport's $500 million secured
revolver;
-- upgraded to Baa3 (LGD2, 22%) from Ba2 the senior secured
ratings on each of Freeport's US$1 billion secured
revolver, US$2.5 billion secured Term Loan A,
US$7.5 billion secured Term Loan B, and each of
Freeport's existing 6.875%, 10.125% and 7.20% senior
secured notes; and
-- upgraded to Ba3 (LGD5, 83%) from B2 Freeport's US$6
billion senior unsecured notes.
Moody's also upgraded to Ba2 (LGD3, 48%) from B1 the ratings on
Phelps Dodge's secured Cyprus Amax notes and on Phelps Dodge's
other existing notes.
The rating actions are based on Freeport's pending issuance of
approximately US$2.5 billion of common equity and US$2.5 billion
of mandatorily convertible preferred stock and a potential
overallotment, the proceeds of which will be used to reduce Term
Loans A and B. In considering Freeport's capital structure,
Moody's treats the mandatorily convertible preferreds as equity.
The ratings reflect the overall probability of default of
Freeport, to which Moody's assigns a PDR of Ba2. The rating
outlooks for Freeport, Phelps Dodge and Cyprus Amax are stable.
The Ba2 corporate family rating reflects Freeport's high debt
level of approximately US$13 billion and what Moody's believes
will be a protracted time frame for debt reduction in the face
of softening metals prices and continued high cost challenges.
The rating also considers the high concentration in copper and
resultant variability in earnings and cash flow, significant
capital expenditures, and a high level of reliance on the
Grasberg mine in Indonesia. The rating also reflects the
cultural challenges inherent in the acquisition of the larger
Phelps Dodge by Freeport, and the execution and political risk
of Phelps Dodge's development project in the Congo. The Ba2
rating favorably considers the company's leading positions in
copper and molybdenum, a significant amount of gold production,
the low cost, long-life reserves at PT-FI, and improved
operating and political diversity.
Ratings upgraded are:
Issuer: Freeport-McMoRan Copper & Gold Inc.
-- Corporate Family Rating: to Ba2 from Ba3
-- Probability of Default Rating: to Ba2 from Ba3
-- US$0.5 billion Senior Secured Revolving Credit facility,
to Baa2, LGD1, 2% from Baa3
-- US$1.0 billion Senior Secured Revolving Credit Facility,
to Baa3, LGD2, 22% from Ba2
-- US$2.5 billion Senior Secured Term Loan A, to Baa3,
LGD2, 22%, from Ba2
-- US$7.5 billion Senior Secured Term Loan B, to Baa3,
LGD2, 22%, from Ba2
-- US$340 million 6.875% Senior Secured Notes due 2014,
to Baa3, LGD2, 22%, from Ba2
-- US$272 million 10.125% Senior Secured Notes due 2010,
to Baa3, LGD2, 22%, from Ba2
-- US$0.2 million 7.20% Senior Secured Notes due 2026,
to Baa3, LGD2, 22%, from Ba2
-- Senior Unsecured Notes: to Ba3, LGD5, 83%, from B2
Issuer: Cyprus Amax Minerals Co.
-- US$60.1 million 7.375% Senior Notes due 2007, to Ba2,
LGD3, 48%, from B1
Issuer: Phelps Dodge Corp.
-- US$107.9 million 8.75% Senior Notes due 2011, to Ba2,
LGD3, 48%, from B1
-- US$115 million 7.125% Senior Notes due 2027, to Ba2,
LGD3, 48%, from B1
-- US$150 million 6.125% Senior Notes due 2034, to Ba2,
LGD3, 48%, from B1
-- US$193.8 million 9.50% Senior Notes due 2031, to Ba2,
LGD3, 48%, from B1
Moody's last rating action on Freeport was to affirm its Ba3
corporate family rating in February 2007 in connection with
Freeport's acquisition of Phelps Dodge.
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
-- http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
* * *
As reported in the Troubled Company Reporter on March 27, 2007,
Standard & Poor's Ratings Services assigned its 'B' preferred
stock rating to the proposed $2.5 billion 6.75% mandatory
convertible preferred stock offering of Freeport-McMoRan
Copper & Gold Inc.
GOODYEAR TIRE: Moody's Affirms B1 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service affirmed Goodyear Tire & Rubber Co.'s
Corporate Family Rating of B1 but raised the outlook to
positive. In addition, a Ba1 rating was assigned to Goodyear's
new US$1.5 billion first lien revolving credit facility and a
Ba2 rating was assigned to the company's new US$1.2 billion
second lien term loan. At the same time, a Ba1 rating was
assigned to Goodyear Dunlop Tyres Europe's or GDTE new first
lien credit facilities for EUR505 million (approximately US$650
million). The Speculative Grade Liquidity rating of SGL-2 was
also affirmed. Amounts being refinanced are identical to
current facilities, relative priorities are unchanged, but
maturity profiles have been extended under improved terms.
Accordingly, the composition of the company's capital structure
and the impact on respective recovery expectations are
essentially unchanged (LGD assessments have been revised for
recent financial statements).
Goodyear Tire is amending, restating and extending the maturity
of its US$1.5 billion first lien revolving credit facility. The
facility will have maturity in April 2013 compared to the
current 2010. The facility will continue as an asset backed
arrangement with first liens over the parent's and its
guaranteeing subsidiaries current assets, trademark and other
intangibles, shareholdings in subsidiaries (limited to 65% in
the case of certain first tier foreign subsidiaries) and certain
other assets. Similarly, Goodyear Tire is also amending and
restating the terms of its US$1.2 billion second lien term loan
whose new maturity will be April 2014 compared to the current
April 2010. The restated facility will have an option to
include a Luxembourg and/or a Canadian subsidiary as borrowers
under a Goodyear guarantee. The term loan will continue with a
second priority lien over the collateral package pledged to the
domestic revolving credit facility and up-streamed North
American subsidiary guarantees.
GDTE is also amending, restating and extending the maturities of
its bank credit facilities. These currently consist of EUR350
million of revolving credit facilities and a term loan to its
German subsidiary of EUR155 million (total EUR505 million or
approximately US$650 million). The new facilities will consist
of a EUR350 million revolving credit facility available to GDTE
and several of its subsidiaries and a separate EUR155 million
revolving credit facility to a German subsidiary (total EUR505
million). The facilities continue with their respective first
lien collateral packages and cross-guarantees as in the current
arrangements. The new maturity will be April 2012. An
unsecured guarantee from Goodyear will also remain in place.
The B1 Corporate Family Rating recognizes strong scores for
several factors in Moody's Automotive Supplier Methodology.
These include the company's substantial scale, global brands
with refreshed product offerings, leading market share,
diversified geographic markets, lengthened debt maturities and
continuing solid liquidity profile. Scores for those
qualitative attributes would normally track to a higher
Corporate Family rating. However, the B1 rating also considers
Goodyear's substantial leverage, low EBIT returns and weak
coverage ratios, which were affected by the recent strike in
North America as well as un-recouped raw material costs and weak
replacement tire demand in that region. Scores from these
factors counter qualitative strengths and position the overall
rating in the high B category. Nonetheless, debt levels should
crest during 2007 and leverage measurements should begin to
decline as savings are realized from an improved cost structure,
rationalized manufacturing footprint, pricing actions, and
ultimate recovery in unit demand in the critical North American
tire market. The pending sale of its Engineered Products
business for US$1.475 billion could also provide substantial
capacity for the company's pension contributions and potential
contributions to a VEBA trust, which would address union
retirement health care liabilities.
"The change in outlook reflects several positive trends, which
should develop over the intermediate term," said Ed Wiest, VP
and Senior Analyst at Moody's. "Among these are resumption of
modest growth in replacement tire demand in select North
American markets, improved cost structure and operating
flexibility in the region following resolution of its labor
contract, and higher global utilization rates in its
manufacturing footprint over the next 12 months as
rationalization efforts are completed."
In addition, Goodyear Tire should benefit from healthier margin
realization upon pricing actions, introduction of new tire
models, and moderation in raw material costs. The company may
fund up to US$1 billion into a VEBA structure for its post
retirement obligations to hourly employees in the United States
in 2007. Additionally, it is likely the peak in pension funding
requirements will occur in 2007 with significant declines
occurring in subsequent years. Accordingly, Moody's would
expect Goodyear Tire's debt burden to be lower by the end of the
coming year. Stronger coverage ratios and free cash flow
metrics should emerge in the second half of 2007. (Results in
the first half will be impacted by the recent strike in its
North American operations).
The Speculative Grade Liquidity rating of SGL-2 liquidity
rating, designating good liquidity over the coming year,
reflects significant internal and external resources as well as
increased flexibility in financial covenants under the
refinanced bank obligations. Although Goodyear Tire will incur
meaningful working capital requirements as production levels
recover following the labor settlement in North America, and it
may need to fund up to US$1 billion into a VEBA for retirement
health care liabilities for its United Steel Workers employees
as well as US$700-US$750 million of global pension
contributions, the company finished 2006 with roughly US$2.8
billion in un-restricted cash pro forma for repayments under its
domestic and GDTE's German revolving credit facilities in early
January. The announcement of an agreement to sell its
Engineered Products business for US$1.475 billion may also add
substantial liquidity in the coming year. Upon closing of the
new facilities, Goodyear would have roughly US$1.0 billion of
unused and available capacity under its domestic revolving
credit facility (approximately US$0.5 billion of letters of
credit are issued against the commitment) and the majority of
the European revolving credit facilities. Going forward,
Goodyear Tire will have improved covenant flexibility.
The Ba1 (LGD-1, 4%) rating assigned to the new first lien
revolving credit facility at Goodyear Tire incorporates the
benefits of its first priority liens over substantial collateral
as well as the sizable amount of liabilities junior to its
claims. The Ba2 (LGD-2, 20%) rating assigned to the new second
lien term loan results from its second priority claims against
the identical collateral package as well as the level of junior
capital beneath it. The higher rating and improved recovery on
the second lien facility compared to the current second lien
term loan reflects a reassessment of its collateral position,
which, in turn, yielded a lower modeled deficiency claim. The
Ba1 (LGD-1, 4%) rating assigned to the European facilities of
GDTE recognizes the benefits of liens over substantially all
tangible and intangible assets in the borrowing and guaranteeing
group of GDTE entities.
Ratings assigned:
Goodyear Tire & Rubber Co.
-- US$1.5 billion first lien revolving credit facility,
Ba1 (LGD-1, 4%)
-- US$1.2 billion second lien term loan,
Ba2 (LGD-2, 20%)
Goodyear Dunlop Tyres Europe B.V. and certain subsidiaries
-- EUR505 million of first lien revolving credit
facilities, Ba1 (LGD-1, 4%)
Ratings changed:
Goodyear Tire & Rubber Co.
-- Outlook, to positive from stable
Ratings affirmed and applicable Loss Given Default Assessments:
Goodyear Tire & Rubber Co.
-- Corporate Family Rating, B1
-- Probability of Default, B1
-- third lien secured term loan, B2 with LGD assessment
changed to (LGD-4, 59%) from (LGD-4, 63%)
-- 11% senior secured notes, B2 with LGD assessment
changed to (LGD-4, 59%) from (LGD-4, 63%)
-- floating rate senior secured notes, B2 with LGD
assessment changed to (LGD-4, 59%) from (LGD-4, 63%)
-- 9% senior notes, B2 with LGD assessment changed to
(LGD-4, 59%) from (LGD-4, 63%)
-- 8 5/8 % senior unsecured notes due 2011, B2 with LGD
assessment changed to (LGD-4, 59%) from (LGD-4, 63%)
-- floating rate unsecured note due 2009, B2 with LGD
assessment changed to (LGD-4, 59%) from (LGD-4, 63%)
-- 6 3/8% senior notes, B3 (LGD-6, 94%)
-- 7 6/7% senior notes, B3 (LGD-6, 94%)
-- 7% senior notes, B3 (LGD-6, 94%)
-- senior unsecured convertible notes, B3 (LGD-6, 94%)
-- Speculative Grade Liquidity rating, SGL-2
The last rating action was on Jan. 10, 2007, at which time
Goodyear Tire and GDTE ratings were affirmed and the outlook was
changed to stable from negative. Upon closing of the new
facilities, ratings on Goodyear Tire's existing first and second
lien facilities will be withdrawn as will the ratings on GDTE's
existing bank credit facilities.
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.
===============
C O L O M B I A
===============
NOVELL INC: Gets Additional Non-Compliance Notice from Nasdaq
-------------------------------------------------------------
Novell, Inc., received an additional notice of non-compliance
from the staff of NASDAQ Stock Market due to the delay in filing
its quarterly report on Form 10-Q for the fiscal quarter ended
Jan. 31, 2007, as required by NASDAQ Marketplace Rule
4310(c)(14).
Novell received notices of non-compliance from NASDAQ on
Sept. 14, 2006, due to the delay in filing its quarterly report
on Form 10-Q for the fiscal quarter ended July 31, 2006, and on
Jan. 22, 2007, for its annual report on Form 10-K for the fiscal
year ended Oct. 31, 2006.
Novell has delayed the filing of its periodic reports pending
the completion of the review by its Audit Committee of the
company's historical stock-based compensation practices.
In response to the first notice of non-compliance, Novell
requested a hearing before a NASDAQ Listing Qualifications
Panel. On Jan. 9, 2007, the Panel granted Novell's request for
continued listing subject to the requirements that Novell:
1) provide the Panel with certain information relating to the
Audit Committee's review on or about March 1, 2007, which
was submitted to the Panel; and
2) become current in its delinquent reports and file any
necessary restatements by March 13, 2007.
On Feb. 20, 2007, Novell received a letter from the NASDAQ
Listing and Hearing Review Council indicating that the Listing
Council had called for review the Jan. 9, 2007, decision of the
Panel and had determined to stay the Panel's decision and any
future Panel determinations to suspend Novell's securities from
trading pending further action by the Listing Council.
In connection with the call for review, the Listing Council has
provided Novell with the opportunity to make an additional
submission for the Listing Council's consideration by May 4,
2007, describing Novell's plan for filing the necessary periodic
reports.
NASDAQ has also provided Novell with the opportunity to make a
submission by March 22, 2007, addressing the delay in filing its
First Quarter Form 10-Q. The company intends to timely provide
both submissions to NASDAQ.
The company is working diligently to complete all necessary
filings and demonstrate compliance with all applicable
requirements for continued listing on the NASDAQ Global Select
Market; however, there can be no assurance that the Listing
Council will determine to grant the company a further extension
following its review of the forthcoming submissions.
About Novell Inc.
Headquartered in Waltham, Mass., Novell, Inc. (Nasdaq: NOVL) --
http://www.novell.com/-- delivers Software for the Open
Enterprise. With more than 50,000 customers in 43 countries,
Novell helps customers manage, simplify, secure and integrate
their technology environments by leveraging best-of-breed, open
standards-based software.
Novell has sales offices in Argentina, Brazil and Colombia.
* * *
Novell, Inc.'s Subordinated Debt carries Moody's Investors
Service's 'B1' rating.
TOWER RECORDS: Files Disclosure Statement in Delaware
-----------------------------------------------------
MTS Inc. dba Tower Records and its debtor-affiliates filed with
the U.S. Bankruptcy Court for the District of Delaware a
disclosure statement describing their Chapter 11 Plan of
Liquidation, Bill Rochelle of Bloomberg News reports.
According to Mr. Rochelle, the disclosure statement said
unsecured claims of trade suppliers will total US$73.5 million,
in addition to other unsecured claims expected to range from
US$95 million to US$115 million.
The Debtors estimated that assets available for distribution
to trade suppliers and other unsecured creditors will range from
US$3 million to US$26 million, Mr. Rochelle relates.
The Court is set to consider the adequacy of the disclosure
statement on May 3.
Asset Sale
The Debtors auctioned their intellectual property assets this
month.
The IP Assets -- which include the Debtors' website business,
including Tower.com, trademarks, and international licenses --
were part of the Debtors' Court-approved auction in October
2006, but were never sold due to the inability of the Debtors to
close sale transactions.
On Sept. 6, 2006, the Debtors obtained Court approval for the
sale of substantially all of their assets. The Debtors' assets
were auctioned in October 2006 in accordance with a consortium
of bids made by multiple parties.
Included in the consortium of bids was the successful bid of
Norton LLC for, among other things, the Debtors' website
business.
According to the Debtors, the sale of the website business did
not push through because of some business, technical and
operational issues that became apparent in the course of the
negotiations.
The Debtors' inventory and fixed assets were sold to Great
American Group for US$104 million.
CIT Obligation
At the commencement of their chapter 11 cases, the Debtors'
capital structure included approximately US$80 million in first
priority secured debt owed to CIT Group/Business Credit Inc. as
well as more than US$70 million of second priority secured debt
asserted by secured trade vendors. In addition, the Debtors
estimate that they face at least another US$50 million in
unsecured claims.
Proceeds from the October Auction Sale were used to pay in full
the first priority secured debt the Debtors owe CIT.
About Tower Records
Headquartered in West Sacramento, California, MTS, Inc., dba
Tower Records -- http://www.towerrecords.com/-- is a retailer
of music in the U.S., with nearly 100 company-owned music, book,
and video stores. The company has stores in the United Kingdom,
the Philippines and Colombia.
The Company and its affiliates previously filed for chapter 11
protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No.
04-10394). The Court confirmed the Debtors' plan on
March 15, 2004.
The Company and seven of its affiliates filed their second
voluntary chapter 11 petition on Aug. 20, 2006 (Bankr. D. Del.
Case Nos. 06-10886 through 06-10893). Richards, Layton &
Finger, P.A. and O'Melveny & Myers LLP represent the Debtors.
The Official Committee of Unsecured Creditors is represented by
McGuirewoods LLP and Cozen O'Connor. When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than US$100 million. The Debtors' exclusive period to
file a chapter 11 plan expires on Dec. 18, 2006.
Moody's Investors Service gave the company's issuer rating and
long-term corporate family rating a Ca, and its senior
subordinated rating a C.
VOTORANTIM PARTICIPACOES: Wins Acerias' Stake for US$485 Million
----------------------------------------------------------------
Votorantim Participacoes SA outbids other Brazilian steel giants
for a controlling stake in Colombia's Acerias Paz del Rio.
Votorantim obtained a 52% stake in the Colombian steelmaker for
US$485 million, beating offers from steel giants Arcelor Mittal,
Gerdau SA and Companhia Siderurgica Nacional, The Associated
Press says.
The Colombian government, which owned 9.14% of Paz del Rio, and
a group of other shareholders sold a combined 52% stake in the
steel maker for a minimum of COP425.9 billion, or US$192
million.
In an interview with AP, Votorantim Chairman Antonio Ermirio de
Moraes said that the acquisition of a stake in Acerias is part
of the company's strategy to expand overseas.
Votorantim's chairman cited Acerias' proximity to the Caribbean
as an opportunity to enter the U.S. and European markets, AP
relates.
About Acerias Paz del Rio
Acerias Paz del Rio S.A. is Colombia's second largest steel
company active in the iron and steel industry. The Company
explores, exploits, transforms, transports and commercially
distributes minerals and raw materials required by the
metallurgical industry.
About Votorantim Participacoes
Headquartered in Sao Paulo, Brazil, the Votorantim group is one
of the largest private industrial conglomerates in Latin
America, with large-scale production in cement, pulp and paper,
and metals and mining industries. The group is also actively
engaged in the production of chemicals, frozen concentrated
orange juice, energy, financial services and venture capital
investments.
* * *
Moody's Investors Service upgraded on Sept. 5, 2006, the
foreign currency rating of Voto -- Votorantim Overseas Trading
Op. III's US$300 million senior unsecured guaranteed notes due
2014 to Ba1 from Ba2, while maintaining the stable outlook. The
rating action was prompted by Moody's upgrade of Brazil's long-
term foreign currency ceiling for bonds and notes
to Ba1 from Ba2, with stable outlook.
* COLOMBIA: Votorantim Wins Acerias Paz's 52% Stake for US$485MM
----------------------------------------------------------------
Votorantim Participacoes SA outbids other Brazilian steel giants
for a controlling stake in Colombia's Acerias Paz del Rio.
Votorantim obtained a 52% stake in the Colombian steelmaker for
US$485 million, beating offers from steel giants Arcelor Mittal,
Gerdau SA and Companhia Siderurgica Nacional, The Associated
Press says.
The Colombian government, which owned 9.14% of Paz del Rio, and
a group of other shareholders sold a combined 52% stake in the
steel maker for a minimum of COP425.9 billion, or US$192
million.
In an interview with AP, Votorantim Chairman Antonio Ermirio de
Moraes said that the acquisition of a stake in Acerias is part
of the company's strategy to expand overseas.
Votorantim's chairman cited Acerias' proximity to the Caribbean
as an opportunity to enter the U.S. and European markets, AP
relates.
About Acerias Paz del Rio
Acerias Paz del Rio S.A. is Colombia's second largest steel
company active in the iron and steel industry. The Company
explores, exploits, transforms, transports and commercially
distributes minerals and raw materials required by the
metallurgical industry.
About Votorantim Participacoes
Headquartered in Sao Paulo, Brazil, the Votorantim group is one
of the largest private industrial conglomerates in Latin
America, with large-scale production in cement, pulp and paper,
and metals and mining industries. The group is also actively
engaged in the production of chemicals, frozen concentrated
orange juice, energy, financial services and venture capital
investments.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 8, 2007, Standard & Poor's lifted the country's foreign
credit to BB+ from BB. Colombia's local currency debt rating
was raised to BBB+ from BBB.
===================
C O S T A R I C A
===================
US AIRWAYS: Names Robert Martens as Senior VP & President
---------------------------------------------------------
US Airways Group Inc. has appointed Robert E. Martens as Senior
Vice President and President, US Airways Express. In his new
position, Mr. Martens, 61, will oversee the US Airways Express
program, which consists of 2,300 daily flights and includes nine
regional airlines. He will have direct oversight of the
airlines' two wholly owned regional subsidiaries, Piedmont
Airlines and PSA Airlines, and will report to US Airways
President Scott Kirby.
US Airways President Scott Kirby stated, "We are extremely
pleased to welcome Bob to the US Airways team. He brings a
great deal of industry knowledge and extensive airline
operations experience, particularly with regional affiliates, to
our airline, and we look forward to improving the seamless
service between our express and mainline operations as a result
of Bob's leadership."
Mr. Martens has more than 35 years of aviation experience, and
began his career at Trans World Airlines where he held a variety
of planning and financial positions. Mr. Martens spent the
majority of his career with American Airlines where he served in
various senior management capacities, including President and
CEO of AMR Corporation's wholly owned regional airline American
Eagle Airlines. His additional experience includes serving as
chairman and chief executive officer at Business Express
Airlines, and as president and chief operating officer at Polar
Air Cargo.
Mr. Martens holds a Bachelor of Arts degree from Yale and a
Masters of Business Administration from Harvard.
Headquartered in Arlington, Virginia, US Airways Group Inc.'s
(NYSE: LCC) -- http://www.usairways.com/-- primary business
activity is the ownership of the common stock of:
* US Airways, Inc.,
* Allegheny Airlines, Inc.,
* Piedmont Airlines, Inc.,
* PSA Airlines, Inc.,
* MidAtlantic Airways, Inc.,
* US Airways Leasing and Sales, Inc.,
* Material Services Company, Inc., and
* Airways Assurance Limited, LLC.
Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for US$240 million infusion of new capital.
US Airways and its subsidiaries filed another chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts. In the Company's
second bankruptcy filing, it lists US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts.
The Debtors' chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005. The Debtors completed their
merger with America West on the same date.
US Airways, US Airways Shuttle, and US Airways Express operate
approximately 3,800 flights per day and serve more than 230
communities in the U.S., Canada, Europe, the Caribbean, and
Latin America. The new US Airways is a member of the Star
Alliance, which provides connections for customers to
841 destinations in 157 countries worldwide.
US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.
* * *
As reported in Troubled Company Reporter on Feb. 1, 2007,
Standard & Poor's Ratings Services affirmed its ratings on US
Airways Group. and its major operating subsidiaries America West
Holdings Corp., America West Airlines Inc., and US Airways Inc.,
including the 'B-' corporate credit ratings. The ratings were
removed from CreditWatch, where they were placed with developing
implications on Nov. 15, 2006. S&P said the outlook is
positive.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO LEON: Launches New Service Branch in La Sirena Store
----------------------------------------------------------
Banco Leon has launched a new service branch in the La Sirena
store in Sol, Santiago, Dominican Today reports.
According to Dominican Today, this is the second launching that
is part of the commercial partnership, which started in last
year between Banco Leon and the Ramos group.
Dominican Today underscores that Banco Leon and Ramos had
launched the Sirenas Visa Gold card.
The partnership between Banco Leon and Ramos will continue to
strengthen with more plans of launching Banco Leon branches in
the stores Multicentro and La Sirena, Dominican Today states.
* * *
Fitch Ratings assigned these ratings to Banco Multiple Leon SA:
-- CCC+ long-term issuer default rating;
-- C short-term rating;
-- BBB(DOM) national long-term rating;
-- F3(DOM) national short-term rating; and
-- Outlook Positive
=============
E C U A D O R
=============
PETROBRAS ENERGIA: Block 18 Production Suspended Due to Protests
----------------------------------------------------------------
Petrobras Energia said in a statement that community strikers
have caused production to stop on block 18 in Ecuador.
Business News Americas relates that the strikers, demanding
paving projects at Petrobras Energia's expense, occupied the
Palo Azul field in block 18 on March 9.
Petrobras Energia said in a statement, "The company ratifies its
willingness to dialog and its constant and unconditional support
to the communities located within the influence area of its
operations."
According to BNamericas, Petrobras Energia is working with the
Ecuadorian energy and mines ministry to resolve the conflict.
Petrobras Energia said in a statement that other Ecuadorian
community groups are taking similar coercive measures against
public and private oil firms.
Petrobras Energia Participaciones SA (Buenos Aires: PBE, NYSE:
PZE) through its subsidiary, explores, produces, and refines oil
and gas, as well as generates, transmits, and distributes
electricity. It also offers petrochemicals, as well as markets
and transports hydrocarbons. The company conducts oil and gas
exploration and production operations in Argentina, Venezuela,
Peru, Ecuador, and Bolivia
* * *
As reported on Jan. 4, 2007, Fitch Argentina Calificadora de
Riesgo affirmed these ratings assigned to Petrobras Energia:
-- international currency: B+
-- local currency: BB-
-- unsecured senior debt: B+
PETROECUADOR: Unit Starts Drilling Eden Yuturi Field
----------------------------------------------------
A spokesperson of Ecuadorian state oil firm Petroecuador's block
15 told Business News Americas that UB-15 -- the temporary
administration unit operating the block -- has started drilling
on the Eden Yuturi field.
BNamericas relates that the well is being drilled with the
Sinopec 129 tower, the second of the three contracted by UB-15.
The other two are:
-- Sinopec 128, the first tower drilling the
Limoncocha 02 well on the Limoncocha field; and
-- a third tower belonging to China's Changqing
Petroleum Exploration Bureau, which will start
operating at the end of March or at the start of
May.
The spokesperson told BNamericas that UB-15 is also close to
contracting a fourth drilling tower. UB-15 maintains the block
15's average year-end production, which is expected at 90,000
barrels per day. Petroecuador's statement saying that the
production goal was 85,000 barrels per day -- also the current
level of production -- was incorrect.
BNamericas underscores that although output will be at its
lowest level of 81,000 barrels per day in April, it will later
grow to 95,000 barrels per day in December for the 90,000-barrel
per day yearly average.
Production was 100,000 barrels per day in May 2006 when
Petroecuador cancelled the block 15 contract with US oil firm
Occidental Petroleum, BNamericas states.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: S&P Retains BB+ Ratings After Open Skies Vote
--------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'BB+' long-term
corporate credit rating on British Airways PLC remains on
CreditWatch, with positive implications, following a vote on
March 22 by EU ministers approving a proposed "open skies"
aviation treaty with the U.S.
The ratings where originally placed on CreditWatch with positive
implications on Jan. 9, 2007.
"The treaty, which will allow EU or U.S. airlines to fly to any
destination in the other region starting in March 2008, will,
over time, increase price competition at BA's major hub at
London's Heathrow International Airport and is likely to reduce
revenues and earnings on the airline's key trans-Atlantic
routes," said Standard & Poor's credit analyst Eve Greb.
"However, access to Heathrow is constrained by the limited
availability of takeoff and landing slots, and terminal space.
Accordingly, the effects on BA are expected to unfold gradually
over time."
BA's trading performance and financial profile have improved
materially over the past several years, with further
strengthening of the credit profile likely to be achieved
following the conclusion of the group's agreement with its
unions, reached in January 2007, to address the airline's
sizable pension deficit. Under BA's pension proposal, the
company will make a onetime contribution of GBP800 million and
up to GBP150 million more in contributions over the next three
years, subject to financial targets. Together with a onetime
employee saving of GBP400 million and changes to future
benefits, the GBP2.1 billion New Airways Pensions Scheme deficit
will be reduced by more than one-half to GBP900 million.
===========
M E X I C O
===========
AMERICAN AIRLINES: Moody's Lifts Corporate Family Rating to B2
--------------------------------------------------------------
Moody's Investors Service raised the debt ratings of AMR Corp.
and its subsidiaries -- corporate family rating to B2. Moody's
also raised the ratings of most tranches of AMR's Enhanced
Equipment Trust Certificates or EETC, affirmed the SGL-2 rating,
and increased the Loss Given Default rate to 30-LGD3 on the
secured debt and to 83-LGD5 on the senior unsecured debt. The
outlook is stable.
"The rating upgrades follow meaningful improvement to the debt
protection metrics of AMR Corp. and American Airlines, Inc.
(jointly "American") after a sustained period of free cash flow
generation, including American's first full year of net profits
since 2000," said George Godlin of Moody's Investors Service.
Moody's anticipates continued gains in profits, as management
works to implement a number of planned cost saving initiatives.
American's long-term debt declined and is not expected to
increase in the near term as the company has no mainline or
regional aircraft delivering until 2013 and the company improved
the funded status of its pension plan in 2006 through excess
contributions. Management efforts are ongoing to strengthen the
balance sheet, and Moody's expects debt to be paid down during
2007 at least equal to the scheduled debt maturities of US$1.35
billion. American has amassed a substantial cash position
(about US$5.2 billion), or approximately 38.7% of gross debt),
which is not likely to diminish over the near term because of a
strong revenue environment.
The company's liquidity rating was affirmed at SGL-2 reflecting
American's compliance with the terms of its financial covenants
and increased borrowing capacity as the company pays down debt
and satisfies pension plan obligations from cash from
operations. Despite the fact that a substantial portion of its
assets are encumbered, American's ratings acknowledge the
company's leadership position in the North American airline
industry and its large unrestricted cash and short-term
investments to support additional secured borrowings.
The rating could be raised further if growth in internally
generated cash flows is sufficient to sustain EBIT to interest
greater than 2 times and retained cash flow to debt greater than
15%. Downward pressure on the ratings could occur with an
EBITDA margin lower than 15%, or if debt to EBITDA exceeds 8
times or EBIT to interest expense falls to close to 1 times.
Upgrades:
Issuer: AMR Corp.
-- Probability of Default Rating, Upgraded to B2 from B3
-- Corporate Family Rating, Upgraded to B2 from B3
-- Senior Unsecured Conv./Exch. Bond/Debenture, Upgraded
to Caa1 from Caa2
-- Senior Unsecured Medium-Term Note Program, Upgraded
to Caa1 from Caa2
-- Senior Unsecured Regular Bond/Debenture, Upgraded
to Caa1 from Caa2
-- Senior Unsecured Shelf, Upgraded to (P)Caa1
from (P)Caa2
Issuer: Alliance Airport Authority, Inc.
-- Revenue Bonds, Upgraded to Caa1 from Caa2
Issuer: American Airlines 1988-A Grantor Trust
-- Senior Secured Equipment Trust, Upgraded to B2 from B3
Issuer: American Airlines, Inc.
-- Senior Secured Bank Credit Facility, Upgraded to Ba3
from B1
-- Senior Secured Enhanced Equipment Trust, Upgraded
to a range of Ba3 to Baa1 from a range of B1 to Baa3
-- Senior Secured Equipment Trust, Upgraded to a range of
Caa1 to Baa1 from a range of Caa2 to Baa2
-- Senior Secured Regular Bond/Debenture, Upgraded
to a range of B1 to Ba1 from a range of B2 to Ba2
-- Senior Secured Shelf, Upgraded to (P)Ba3 from (P)B1
Issuer: Chicago O'Hare International Airport, IL
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1
from Caa2
Issuer: Dallas-Fort Worth Intl. Airp. Fac. Imp. Corp.
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Secured Revenue Bonds, Upgraded to Caa1
from Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1
from Caa2
Issuer: Dallas-Fort Worth TX, Regional Airport
-- Revenue Bonds, Upgraded to Caa1 from Caa2
Issuer: New Jersey Economic Development Authority
-- Revenue Bonds, Upgraded to Caa1 from Caa2
Issuer: New York City Industrial Development Agcy, NY
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1
from Caa2
Issuer: Puerto Rico Ind Med&Env Poll Ctl Fac Fin Auth
-- Revenue Bonds, Upgraded to Caa1 from Caa2
Issuer: Puerto Rico Ports Authority
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1
from Caa2
Issuer: Raleigh-Durham Airport Authority, NC
-- Revenue Bonds, Upgraded to Caa1 from Caa2
Issuer: Regional Airports Improvement Corporation, CA
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1
from Caa2
Issuer: Tulsa OK, Municipal Airport Trust (Trustees of)
-- Revenue Bonds, Upgraded to Caa1 from Caa2
-- Senior Secured Revenue Bonds, Upgraded to Caa1
from Caa2
-- Senior Unsecured Revenue Bonds, Upgraded to Caa1
from Caa2
American Airlines, Inc. (NYSE:AMR) -- http://www.AA.com/--
American Eagle, and the AmericanConnection regional airlines
serve more than 250 cities in over 40 countries with more than
3,800 daily flights. The combined network fleet numbers more
than 1,000 aircraft. American Airlines, Inc. and American Eagle
are subsidiaries of AMR Corporation. It has Latin operations in
Mexico, Dominican Republic, Puerto Rico, Argentina, Bolivia,
Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Venezuela,
Uruguay, Belize, Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua and Panama.
DAIMLERCHRYSLER AG: General Motors Will Not Bid for Chrysler
------------------------------------------------------------
General Motors Corp. will not join in the first round of bidding
for DaimlerChrysler AG's Chrysler Group, Reuters reports citing
the New York Times.
GM decided not to bid for Chrysler because the company had no
need for extra capacity, Reuters adds referring to the Times'
unnamed sources.
Meanwhile, a report from Bear Stearns & Co. said GM's
acquisition of Chrysler would probably face difficulty in
gaining approval from antitrust authorities since it would give
the combined company a high market share in light trucks, the
Wall Street Journal reports.
Bear Stearns' report said that the new entity could overcome
antitrust concerns in passenger cars but could face problems in
pick up trucks, sports-utility vehicles and minivans, WSJ notes.
According to WSJ, Bear Stearns, citing figures from Autodata
Corp, said pickup truck sales shares for:
-- GM is 38.2%;
-- Chrysler is 16.4%;
-- Ford Motor Co. is 36.5%;
-- Toyota Motor Corp. is 5.6%; and
-- Nissan Motor Co. is 3.3%.
Bear Stearns also said it believes an acquisition of Chrysler
"could do more harm than good for GM's ongoing turnaround." The
report noted a combination of GM and Chrysler would increase
GM's exposure to the highly competitive U.S. market, WSJ adds.
About DaimlerChrysler
Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:
DCX) -- http://www.daimlerchrysler.com/-- develops,
manufactures, distributes, and sells various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide. It primarily operates in four segments:
Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company's worldwide operations are located in: Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
VISTEON CORP: S&P Puts B+ Rating on Proposed US$500MM Term Loan
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' rating and
'1' recovery rating to auto supplier Visteon Corp.'s proposed
US$500 million new senior secured term loan tranche, which would
increase the size of the company's total term loan facilities to
US$1.5 billion from US$1 billion.
At the same time, Standard & Poor's raised its bank loan and
recovery ratings on Visteon's existing US$1 billion term loan
facility, reflecting the proposed addition of new collateral
that would support the existing and new tranches. The bank loan
rating on the existing term loan facility is raised to 'B+' from
'B,' while the recovery rating is raised to '1' from '2.'
The 'B+' bank loan ratings on both term loan tranches are one
notch higher than the corporate credit rating on Visteon. These
ratings and the '1' recovery ratings indicate the expectation of
full recovery of principal in the event of a payment default.
Visteon is seeking amendments to its credit agreements that
would allow for the US$500 million in additional term loan
borrowings, as well enable the company to include the stock of
majority owned Halla Climate Control in the collateral
supporting the term loans. The existing term loan and the
proposed new tranche would have essentially the same terms and
conditions and share in the same collateral; however, the
maturities will differ slightly, with the existing term loan
maturing in June 2013, and the new tranche maturing in December
2013. Proceeds from the new tranche would be used to support
the company's liquidity and financial flexibility amid difficult
conditions in the U.S. automotive supplier industry. The
transaction is expected to be completed in the second quarter of
2007.
The corporate credit rating on Visteon is B/Negative/B-3.
Ratings List
Visteon Corp.
Corporate credit rating B/Negative/B-3
Ratings Assigned
US$500M new senior secured term loan tranche B+
Recovery rating 1
Ratings Raised
To From
US$1B term loan facility B+ B
Recovery rating 1 2
Headquartered in Van Buren Township, Mich., Visteon Corp.
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic, and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers. With corporate offices in
the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the
company has more than 170 facilities in 24 countries, including
Mexico, and employs approximately 50,000 people.
Visteon's balance sheet at Dec. 31, 2006, showed total assets of
US$6.93 billion and total liabilities of US$7.12 billion,
resulting in a total shareholders' deficit of US$188 million.
The company's total shareholders' deficit as of Dec. 31, 2005,
stood at US$48 million.
WCM BETEILIGUNGS: To Sell Stakes in Maternus-Kliniken & YMOS
------------------------------------------------------------
WCM Beteiligungs- und Grundbesitz-AG, WCM Beteiligungs- und
Verwaltungs GmbH & Co KG and WCM Beteiligungs- und Verwaltungs
GmbH concluded a preliminary agreement to sell close to a 71.5%
stake in MATERNUS-Kliniken AG and a 95% stake in YMOS AG to CURA
Kurkliniken, Seniorenwohn-und Pflegeheime Aktiengesellschaft, on
March 22.
Furthermore the stake MEDICO Grundstuecksgesellschaft mbH & Co
Bayerwald Klinik KG indirectly held by WCM Beteiligungs- und
Verwaltungs GmbH will also be sold.
In the preliminary agreement, the right to terminate the
contract in favor of the bankruptcy administrator has been
agreed. The preliminary contract is subject to approval by the
executive boards of the contracting parties.
WCM applied for insolvency on Nov. 8, 2006, 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 Salzgitter
Headquartered in Salzgitter, Germany, Salzgitter AG --
http://www.salzgitter-ag.de/-- is the Germany-based holding
company for a group of more than 80 domestic and international
subsidiaries active in the steel technology industry.
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 since 2002:
EUR849 million in 2002; EUR315 million in 2003; EUR163 million
in 2004; and EUR44 million in 2005.
* MEXICO: S&P Says Consumer Demand Drives Auto Finance Growth
-------------------------------------------------------------
The automotive industry has been one of the most dynamic
industries in Mexico for the past 12 years, while the still
benign economic environment continues to be the key driver for
the growth seen in the auto finance industry, says a report
released today by Standard & Poor's Ratings Services titled, "As
The Mexican Auto Industry Decelerates, Auto Finance Moves Into
The Passing Lane."
Not only has the higher purchasing power allowed captive finance
and auto savings companies to increase their loan portfolios,
but banks have also benefited from the higher demand for credit
in the consumer sector. "Even though auto finance companies'
growth rates have been decreasing in the past three years, we
expect auto sales to continue leveraging on financing
activities, given the favorable consumer confidence that is
driving credit demand," said Standard & Poor's credit analyst
Arturo Sanchez.
As the industry matures and consolidates, Standard & Poor's
looks forward to better products and a better financing
environment, which will ultimately benefit consumers.
===========
P A N A M A
===========
CHIQUITA BRANDS: Shows Interim Price & Volume Data for 1st Qtr.
---------------------------------------------------------------
Chiquita Brands International Inc. provided an interim update
for the first quarter 2007, including Chiquita banana and Fresh
Express value-added salad prices and volumes for January-
February 2007 in its Banana and Fresh Cut segments,
respectively.
Banana prices in the company's core European markets were down 2
percent year-on-year on a local currency basis (up 6 percent on
a U.S. dollar basis), reflecting the continued impact of E.U.
regulatory changes implemented on Jan. 1, 2006, which have
resulted in an increase in industry volume and price
competition. The company noted that local pricing in the AC-10
countries of Central and Eastern Europe was particularly
affected by pressure from hard discounters at the low end of the
price spectrum, while local pricing for premium-quality fruit in
the traditional EU-15 countries was essentially flat year-over-
year. The company's volume sold in its core European markets
increased by 4 percent, due to the company's ability to maintain
its position as the leading supplier in these markets as well as
recovery from weather-related disruptions in late 2005 that had
impacted supply in the first half of 2006.
North American banana pricing continued its positive trend,
albeit at a modest year-over-year rate. While base contract
prices increased, this improvement was partially offset by lower
spot-market pricing and lower year-on-year surcharges linked to
a third-party fuel price index. Banana volume sold in the
region rose 9 percent, reflecting distribution gains at several
top-25 customers as well as the company's recovery from weather-
related disruptions in the previous year.
In Asia Pacific and the Middle East, pricing rose 6 percent
year-on-year on a U.S. dollar basis, primarily as a result of
significant improvement in local pricing in Japan, partially
offset by unfavorable dollar-yen exchange rates. Volume in this
region fell by 9 percent year-over-year, primarily related to
unfavorable weather conditions in the Philippines, which
resulted in lower yields of premium-quality fruit.
In the company's trading markets, which consist primarily of
European and Mediterranean countries that do not belong to the
European Union, the increase in volume was driven by growth in
Turkey, where the company has established a year-round service
commitment in 2007.
In the Fresh Cut segment, total volume of retail value-added
salads was flat year-over-year in the two-month period. Although
January volumes rose 2 percent year-over-year, record freezing
temperatures in growing regions earlier this year limited the
supply of raw product, and as a result the industry as a whole
experienced a decline in volume in February. In addition, since
mid-September, the company's Fresh Express operations have been
impacted by consumer concerns regarding the safety of fresh
spinach and other packaged leafy greens in the United States,
despite the fact that no confirmed cases of consumer illness
were linked by the U.S. Food and Drug Administration to Fresh
Express products. Net revenue per case declined by 3 percent
year-over-year due to increased promotion activity designed to
stimulate consumer confidence in the category.
Cincinnati, Ohio- based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- operates as an
international marketer and distributor of bananas and other
fresh produce sold under the Chiquita and other brand names in
over 70 countries including Panama, Philippines, Australia,
Belgium, Germany, among others. It also distributes and markets
fresh-cut fruit and other branded, value-added fruit products.
* * *
Moody's Investors Service downgraded the ratings for Chiquita
Brands L.L.C., as well as for its parent Chiquita Brands
International, Inc. Moody's said the outlook on all ratings is
stable.
Standard & Poor's Ratings Services also lowered its ratings on
Cincinnati, Ohio-based Chiquita Brands International Inc.,
including its corporate credit rating, from 'B+' to 'B'.
=====================
P U E R T O R I C O
=====================
ADVANCED CARDIOLOGY: Hires Alexis Hernandez as Bankr. Counsel
-------------------------------------------------------------
Advanced Cardiology Center Corp. obtained permission from the
U.S. Bankruptcy Court for the District of Puerto Rico to employ
Alexis Fuentes-Hernandez as its counsel.
Mr. Hernandez has been handling the Debtor's legal affairs since
Sept. 15, 2006, and has served as the counsel in the Debtor's
prior bankruptcy case (Bankr. D. P.R. Case No. 04-03656).
Documents submitted to the Court did not disclose the services
to be rendered by Mr. Hernandez.
Mr. Hernandez tells the Court that his retainer fee is US$19,500
and that his hourly rate is US$165.
Mr. Hernandez assures the Court that he is a "disinterested
person" as that term is defined is Section 101(14) of the
Bankruptcy Code.
Mr. Hernandez can be reached at:
Alexis Fuentes-Hernandez, Esq.
Fuentes Law Offices
P.O. Box 9022726
San Juan, PR 00902-2726
Tel: (787) 607-3436
Fax: (787) 300-6682
Based in Mayaguez, Puerto Rico, Advanced Cardiology Center Corp.
filed for Chapter 11 protection on Jan. 8, 2007 (Bankr. D. P.R.
Case No. 07-00061). When the Debtor filed for protection from
its creditors, it estimated assets and debts between US$10
million and US$50 million.
ADVANCED CARDIOLOGY: Can Hire Reyes-Ramis Silvagnoli as Auditor
---------------------------------------------------------------
Advanced Cardiology Center Corp. obtained permission from the
U.S. Bankruptcy Court for the District of Puerto Rico to employ
Reyes-Ramis, Silvagnoli & Co. PSC as its auditor.
The Debtor needs to retain the services of the accounting firm
for its annual audit of financial statements.
Mario R. Silvagnoli, CPA, a member at Reyes-Ramis, tells the
Court that the firm's flat rate is US$32,500 and that the Debtor
has paid US$12,500 in advance. The remaining US$20,000 will be
paid when the auditors complete and deliver the audited
financial statements.
Mr. Silvagnoli assures the Court that the firm is disinterested
as that term is defined is Section 101(14) of the Bankruptcy
Code.
Based in Mayaguez, Puerto Rico, Advanced Cardiology Center Corp.
filed for Chapter 11 protection on Jan. 8, 2007 (Bankr. D. P.R.
Case No. 07-00061). Alexis Fuentes-Hernandez at Fuentes Law
Offices represent the Debtor. When the Debtor filed for
protection from its creditors, it estimated assets and debts
between US$10 million and US$50 million.
ALLIED WASTE: Moody's Puts Ba3 Ratings on Amended Sr. Facilities
----------------------------------------------------------------
Moody's Investors Service assigned Ba3 (LGD 2, 29%) ratings on
the amended senior secured credit facilities of Allied Waste
North America, Inc. or Allied Waste NA, which Moody's expects to
close later this week. The proceeds from the refinancing will
be used to repay existing facilities. Concurrently, Moody's
affirmed other ratings of Allied Waste Industries, Inc. or
Allied Waste, Allied Waste NA and its wholly owned subsidiary,
Browning-Ferris Industries, LLC. The outlook for the ratings is
positive.
The company's amended senior secured credit facilities consist
of a US$1.575 billion revolver due January 2012, a US$1.105
billion Term Loan due January 2014, and a US$490 million
institutional letter of credit facility due January 2014.
Maturity dates could accelerate if certain debt tranches with
earlier maturities are not refinanced prior to certain dates.
The facilities are rated one notch higher than the B1 Corporate
Family Rating, reflecting the benefits of the guarantee and
security package and Moody's expectation of loss-given-default
greater or equal to 10% and less than 30% (LGD 2). The borrower
under the facilities is Allied Waste NA. The facilities are
secured by the stock of substantially all subsidiaries and a
security interest in substantially all assets. A portion of the
collateral is shared with the holders of the company's senior
secured notes and debentures. The proposed amended term loan
has an excess cash flow repayment requirement of 50%, with step-
downs depending on leverage. The company uses its letter of
credit facilities primarily to provide financial assurance
purposes under contractual arrangements. In addition, as of
Dec. 31, 2006, about US$399 million in letters of credit was
drawn on the revolver.
The ratings benefit from a stable underlying business with
limited available substitutes and the relative lack of
cyclicality in the municipal solid waste industry, the company's
prominent market position and the company's size and diversified
revenue stream as well as ownership of scarce assets. The
ratings continue to be constrained by the company's high
leverage and weak free cash flow generation. Although the
company has made progress with its best practices program over
the last year and a half, ongoing implementation costs,
fluctuations in fuel costs and cyclical weakness in construction
activity may put pressure on operating margins. Although
Moody's expects ongoing improvements in free cash flow, such
improvements are likely to continue to be constrained by
interest payments and high ongoing capital expenditure levels.
The positive ratings outlook recognizes the continuing pricing
strength and focus on return on capital in the industry, the
reduction in near-term maturities resulting from recent
refinancings, as well as the positive free cash flow generation.
The positive outlook also takes into account the company's
strong liquidity position in 2007 and ongoing efforts to reduce
financial leverage through debt repayment. Indications of
pricing weakness in the industry, substantial volume declines
(e.g., as a result of a slowdown in construction activity),
which lead to negative free cash flows, debt-financed
acquisitions or additional indebtedness, for example in
connection with potential developments with respect to the
outstanding dispute with the Internal Revenue Service could lead
to stabilization of the outlook or place downward pressure on
the ratings.
Moody's took these rating actions:
Allied Waste North America, Inc:
-- Assigned a Ba3 (LGD2, 29%) rating to the US$1.575
billion guaranteed senior secured revolving credit
facility due 2012;
-- Assigned a Ba3 (LGD2, 29%) rating to the US$1.105
billion guaranteed senior secured term loan due 2014;
-- Assigned a Ba3 (LGD2, 29%) rating to US$490 million
guaranteed senior secured Tranche A Letter of Credit
Facility due 2014;
-- Affirmed the Ba3 (LGD2, 30%) rated US$1.575 billion
guaranteed senior secured revolving credit facility
due 2010, subject to withdrawal upon completion of
the refinancing;
-- Affirmed the Ba3 (LGD2, 30%) rated US$1.105 billion
guaranteed senior secured term loan due 2012, subject
to withdrawal upon completion of the refinancing;
-- Affirmed the Ba3 (LGD2, 30%) rated US$490 million
guaranteed senior secured Tranche A Letter of Credit
Facility due 2012, subject to withdrawal upon completion
of the refinancing;
-- Affirmed the B1 (LGD4, 56%) rating on the US$750 million
issue of 6.875% guaranteed senior secured notes due
2017;
-- Affirmed the B2 (LGD4, 57%) rating on the US$750 million
issue of 8.5% guaranteed senior secured notes due 2008,
subject to withdrawal upon completion of the refinancing
currently under way;
-- Affirmed the B1 (LGD4, 56%) rating on the US$350 million
issue of 6.5% guaranteed senior secured notes due 2010;
-- Affirmed the B1 (LGD4, 56%) rating on the US$400 million
issue of 5.75% guaranteed senior secured notes due 2011;
-- Affirmed the B1 (LGD4, 56%) rating on the US$275 million
issue of 6.375% guaranteed senior secured notes due
2011;
-- Affirmed the B1 (LGD4, 56%) rating on the US$251 million
issue of 9.25% guaranteed senior secured notes due 2012;
-- Affirmed the B1 (LGD4, 56%) rating on the US$450 million
issue of 7.875% guaranteed senior secured notes due
2013;
-- Affirmed the B1 (LGD4, 56%) rating on the US$425 million
issue of 6.125% guaranteed senior secured notes due
2014;
-- Affirmed the B1 (LGD4, 56%) rating on the US$595 million
issue of 7.125% guaranteed senior secured notes due
2016;
-- Affirmed the B1 (LGD4, 56%) rating on the US$600 million
issue of 7.25% guaranteed senior secured notes due 2015;
-- Affirmed the B2 (LGD4, 69%) rating on the US$400 million
issue of 7.375% guaranteed senior unsecured notes due
2014;
Allied Waste Industries, Inc:
-- Affirmed the B1 Corporate Family Rating;
-- Affirmed the B1 Probability of Default Rating;
-- Affirmed the B3 (LGD 5, 87%) rating on the US$230
million issue of 4.25% guaranteed senior subordinated
convertible bonds due 2034;
-- Affirmed the B3 (LGD 6, 98%) rating on the US$600
million issue of 6.25% senior mandatory convertible
preferred stock - conversion date of March 2008.
-- The Speculative Grade Liquidity Rating is SGL-1.
-- The outlook for the ratings remains positive.
Browning-Ferris Industries, LLC:
(assumed by Allied Waste North America, Inc.)
-- Affirmed the B1 (LGD4, 56%) rating on the US$155 million
issue of 6.375% senior secured notes due 2008;
-- Affirmed the B1 (LGD4, 56%) rating on the US$96 million
issue of 9.25% secured debentures due 2021;
-- Affirmed the B1 (LGD4, 56%) rating on the US$294 million
issue of 7.4% secured debentures due 2035;
-- Affirmed the B2 (LGD4, 69%) rating on the US$281 million
of industrial revenue bonds with various maturities.
Allied Waste North America, Inc., a wholly owned operating
subsidiary of Allied Waste Industries, Inc., is based in
Phoenix, Arizona. Allied Waste is a vertically integrated, non-
hazardous solid waste management company providing collection,
transfer, and recycling and disposal services for residential,
commercial and industrial customers. As of Dec. 31, 2006, the
company operated a network of 304 collection companies, 161
transfer stations, 168 active landfills and 57 recycling
facilities in 37 states and Puerto Rico. The company had
revenues of approximately US$6.0 billion in fiscal 2006.
GLOBAL HOME: Court OKs Sale of Anchor Hocking to Monomoy Capital
----------------------------------------------------------------
Global Home Products LLC has obtained authority from the U.S.
Bankruptcy Court for the District of Delaware to sell the
glassware business of its affiliates, Anchor Hocking Operating
Company LLC and Anchor Hocking CG Operating Company LLC, to
Monomoy Capital Partners, Bill Rochelle of Bloomberg News
reports.
Monomoy purchased the Anchor Hocking business for US$75 million
in cash and US$20 million in assumed debt at an auction held
Friday last week, Mr. Rochelle relates.
Previous Asset Sale
Last year, Global Home sold its WearEver cookware and bakeware
businesses to SEB, S.A. and Groupe SEB USA for approximately
US$36.5 million.
The WearEver businesses were owned by Global Home's affiliates:
Mirro Acquisition Inc., Mirro PuertoRico Inc., and Mirro
Operating Company LLC.
Global Home also sold its picture framing business to Gibson
Inc.
for US$33.5 million. The business was owned by Global Home
affiliates Burnes Acquisition Inc., Intercraft Company, Burnes
Puerto Rico Inc., Picture LLC, and Burnes Operating Company LLC.
Plan Filing Expected Next Week
As reported in the Troubled Company Reporter on Jan. 29, 2007,
the Hon. Kevin Gross extended, until Apr. 5, 2007, the Debtors'
exclusive period to file a chapter 11 plan of reorganization.
The Court also extended, until June 6, 2007, their exclusive
period to solicit acceptances of that plan.
The Debtors sought the extension to facilitate the sale of
Anchor Hocking, their only remaining operating business group.
According to the Debtors, they are continuing their analysis and
litigation of administrative and reclamation claims asserted by
a number of claimants and they have also rejected a number of
burdensome leases and executory contracts, which included their
former headquarters' lease in Westerville, Ohio.
Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry. The company also designs and markets photo frames,
photo albums and related home decor products. The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
April 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young,
Jones & Weintraub LLP, represent the Debtors. Bruce Buechler,
Esq., at Lowenstein Sandler, P.C., and David M. Fournier, Esq.,
at Pepper Hamilton LLP represent the Official Committee of
Unsecured Creditors. Huron Consulting Group LLC gives financial
advice to the Committee. When the company filed for protection
from their creditors, they estimated assets between US$50
million and US$100 million and estimated debts of more than
US$100 million.
=============
U R U G U A Y
=============
ROYAL & SUN: Unveils Scrip Dividend Scheme for Ordinary Shares
--------------------------------------------------------------
Royal & Sun Alliance Insurance Group plc offers shareholders the
opportunity to take new ordinary shares, credited as fully paid,
in lieu of cash dividends, by participating in a Scrip
Dividend Scheme.
In relation to the final dividend for 2006, the price of a new
ordinary share under the Scrip Dividend Scheme has been set at
161.53 pence. This is the average of the Company's middle
market closing price for the five consecutive dealing days
commencing on the ex-dividend date of March 14.
Shareholders wishing to participate in the Scrip Dividend Scheme
should contact Lloyds TSB Registrars and return their mandate
forms to Lloyds TSB Registrars to arrive no later than May 9.
Lloyds TSB Registrars can be reached at 0870 600 3988 or +44 121
415 7064 if calling from overseas.
Headquartered in London, England, Royal & Sun Alliance Insurance
Group PLC -- http://www.royalsunalliance.com/-- is a FTSE 100
company, listed on the London Stock Exchange and in New York.
The group consists of three regions -- U.K., Scandinavia and
International -- with operations in 30 countries, providing
general insurance products to over 20 million customers
worldwide. In Latin America, it operates in Brazil, Chile,
Colombia, Mexico, Uruguay, and Venezuela. In Asia, the company
operates in Hong Kong, Singapore and Saudi Arabia.
* * *
As of Feb. 22, Royal & Sun Alliance Insurance Group PLC carries
Moody's Ba1 preferred stock rating.
=================
V E N E Z U E L A
=================
DAIMLERCHRYSLER AG: Plans to Keep Chrysler Ties Following Sale
--------------------------------------------------------------
DaimlerChrysler AG has revealed detailed areas of cooperation
that it plans to pursue between its Mercedes division and any
new owners of Chrysler Group as talks over the U.S. arm's sale
continue, The Wall Street Journal reports.
The company envisions a lasting relationship between Mercedes
and Chrysler, particularly in the areas of purchasing, component
sharing, and engineering, even if they become separated by the
sale, WSJ states.
Reports say DaimlerChrysler hopes to receive at least three
preliminary bids for Chrysler by the end of the month from
private equity firm Cerberus Capital Management LLC, the
private-equity tandem of Blackstone Group and Centerbridge
Partners LP, and Canadian auto parts maker Magna International
Inc.
The company, however, denied speculations that a deal to sell
Chrysler is looming, disclosing through a statement that there
would be no news on the unit's sale this week and there will be
no announcement regarding the subsidiary's fate at the annual
shareholders meeting in Germany on April 4, WSJ reveals.
Dealers are worried that the unit's uncertain future may be
affecting revenues after U.S. Chrysler sales fell about 8% in
February, WSJ relates.
Chrysler and Mercedes have joint engineering teams working in
both Germany and Michigan who are making a set of basic
components that may be useful to the next version of the Jeep
Grand Cherokee and a Mercedes M-Class sport-utility vehicle.
They are also developing common axles, a common electronics
backbone for their vehicles, as well as diesel and hybrid
engines, the report says.
Chrysler Sale Cues Neutral Rating by Goldman
Meanwhile, Goldman analyst Stefan Burgstaller in London raised
DaimlerChrysler AG's ratings to "neutral" from "sell" amid the
company's plans to overhaul or sell its Chrysler unit, Bloomberg
News relates.
Mr. Burgstaller also increased his 12-month share-price target
to EUR57 from EUR47, which prompted DaimlerChrysler's shares to
climb to a seven-year high in the U.S. and a 5 1/2-year high in
Germany, Bloomberg reveals.
About DaimlerChrysler
Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures,
distributes, and sells various automotive products, primarily
passenger cars, light trucks, and commercial vehicles worldwide.
It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.
The company's worldwide operations are located in Canada,
Mexico, United States, Argentina, Brazil, Venezuela, China,
India, Indonesia, Japan, Thailand, Vietnam, and Australia.
The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and
accessories under the MOPAR brand.
The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles. At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses.
In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.
LEAR CORP: Pzena Presents Objections to Lear-AREP Merger Deal
-------------------------------------------------------------
Pzena Investment Management LLC, a major shareholder in Lear
Corp., has made public a letter sent to shareholder advisory
firms outlining the investment firm's objections to Lear's deal
to be acquired by American Real Estate Partners L.P., Terry
Kosdrosky of The Wall Street Journal reports.
As reported in the Troubled Company Reporter on Feb. 12, 2007,
Lear and AREP, an affiliate of Carl C. Icahn, entered into an
agreement for Lear to be acquired by AREP, in a transaction
valued at approximately US$5.3 billion, including the assumption
of debt. Under the terms of the agreement, Lear shareholders
would receive US$36.00 per share in cash. Closing is expected
to occur by the end of the second quarter of 2007.
Under the terms of the agreement, Lear may solicit alternative
proposals from third parties for a period of 45 days from the
execution of the agreement and intends to consider any such
proposals with the assistance of its independent advisors. In
addition, Lear may, at any time, subject to the terms of the
merger agreement, respond to unsolicited proposals. If Lear
accepts a superior proposal, a break-up fee would be payable to
AREP.
According to WSJ, no other offer for the company has been
disclosed during the 45-day solicitation period for alternative
proposals.
Pzena's Objection
Pzena said in a letter filed with the Securities & Exchange
Commission and cited by WSJ that the $36 per share offering
price by AREP "is far below the fair value of the company,"
compared to
the investment firm's previous approximation that the company is
worth between US$55 and US$60 a share.
WSJ relates that the firm, which owns about a 10% stake in Lear,
is urging shareholders to vote against the Icahn proposal.
The Journal says that Pzena further objected by stating that
that the deal, as structured, not only undervalues Lear's future
earnings potential but includes management conflicts and
discourages other offers with high breakup fees.
The letter, WSJ notes, points out that Lear's top executives get
guaranteed contracts and bonuses, stock options immediately vest
and a portion of retirement benefits are paid early.
Rating Agencies Warn Lower Ratings
Following Lear's announcement of its merger deal with AREP,
Standard & Poor's Ratings Services lowered its corporate credit
rating on the company to 'B' from 'B+' and placed its ratings on
CreditWatch with negative implications.
"The downgrade reflects our expectation that the transaction
will result in an increase in debt at Lear," said Standard &
Poor's credit analyst Robert Schulz.
Additionally, Moody's Investors Service placed Lear's corporate
family rating at B2, under review for possible downgrade. The
company's speculative grade liquidity rating of SGL-2 was
affirmed.
Further, Fitch Ratings placed Lear's 'B' Issuer Default Rating
and 'B/RR4' Senior Unsecured Debt Rating on rating watch
negative.
Class Action Suit
Lear is facing six purported class actions filed by certain
shareholders seeking to block the merger deal.
Three of the lawsuits were filed in the Delaware Court of
Chancery and have since been consolidated into a single action.
Another three were filed in Michigan Circuit Court.
The class action complaints, which are substantially similar,
generally allege that the Agreement and Plan of Merger unfairly
limits the process of selling Lear and that certain members of
the company's board of directors have breached their fiduciary
duties in connection with the Merger Agreement and have acted
with conflicts of interest in approving the Merger Agreement.
The lawsuits seek to enjoin the merger, to invalidate the Merger
Agreement and to enjoin the operation of certain provisions of
the Merger Agreement, a declaration that certain members of the
company's Board of Directors breached their fiduciary duties in
approving the Merger Agreement and an award of unspecified
damages or rescission in the event that the proposed merger with
AREP is completed.
2006 Results
Lear's net loss for the year ended Dec. 31, 2006, decreased to
US$707.5 million from US$1,381.5 million in the year ended
Dec. 31, 2005, reflecting loss on divestiture of the company's
interior business of US$636 million in 2006 and goodwill
impairment charges of US$1.0 billion in 2005.
Net sales for the year ended Dec. 31, 2006, increased by 4.4%,
or US$750 million, to US$17,838.9 million from US$17,089.2
million in 2005. New business favorably impacted net sales by
US$1.9 billion. The increase was partially offset by the impact
of unfavorable vehicle platform mix and lower industry
production volumes primarily in North America, which reduced net
sales by US$1.2 billion.
The company's balance sheet at Dec. 31, 2006, showed total
assets of US$7,850.5 million, total liabilities of US$7,248.5
million, and total stockholders' equity of US$602.0 million.
Lear's total stockholders' equity at Dec. 31, 2005, was
US$1,111.0 million.
About Lear Corp.
Southfield, Mich.-based Lear Corp. (NYSE: LEA) --
http://www.lear.com/-- is a global supplier of automotive
interior systems and components. Lear provides complete seat
systems, electronic products, electrical distribution systems,
and other interior products.
Lear also operates in Argentina, Austria, Belgium, Brazil,
Canada, China, Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, India, Italy, Japan, Mexico, Morocco,
Netherlands, Philippines, Poland, Portugal, Romania, Russia,
Singapore, Slovakia, South Africa, South Korea, Spain, Sweden,
Thailand, Tunisia, Turkey, and Venezuela.
* * *
As reported on Feb. 13, Standard & Poor's Ratings Services
lowered its corporate credit rating on Southfield, Mich.-based
Lear Corp. to 'B' from 'B+ and placed its ratings on CreditWatch
with negative implications following Lear's announcement that it
had agreed to be acquired by Carl Icahn-controlled American Real
Estate Partners, L.P.
As reported on Feb. 8, Moody's Investors Service placed the
long-term ratings of Lear Corporation, corporate family rating
at B2, under review for possible downgrade. The company's
speculative grade liquidity rating of SGL-2 was affirmed.
PETROLEOS DE VENEZUELA: Buys Seismic Equipment from Belarus
-----------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA has
purchased seismic data acquisition trucks and other equipment
from Belarus for US$2 million, Venezuela's state news agency
Agencia Bolivariana de Noticias reports.
Business News Americas relates that the seismic trucks use large
hydraulic hammers to pound the soil and make an artificial
seismic wave, which will then be recorded and studied to help
predict where and how deep the location of the oil and natural
gas is.
Venezuela held an official function at its foreign office for
the signing of several cooperation pacts between the country and
Belarus, BNamericas notes. The agreements cover:
-- energy,
-- technology,
-- housing, and
-- agriculture.
Petroleos de Venezuela and Belarusneft -- its counterpart in
Belarus -- set up a joint venture in 2006 to conduct reserve
assessment work in Venezuela's Orinoco crude belt, BNamericas
states.
Petroleos de Venezuela SA -- http://www.pdv.com/--
is Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 12, 2007, Standard & Poor's Ratings
Services raised its long-term foreign currency corporate credit
rating on Petroleos de Venezuela S.A. or PDVSA to 'BB-' from
'B+'. S&P said the rating was removed from CreditWatch.
PETROLEOS DE VENEZUELA: Cantv's Small Investors May Keep Shares
---------------------------------------------------------------
Compania Anonima Nacional Telefonos de Venezuela's small
investors are not obliged to sell their shares in the network,
El Universal reports.
Julian Nebreda, chief executive officer of Venezuela's largest
private power firm La Electricidad de Caracas, said: "small
investors will be allowed to choose whether they want to sell or
not their stocks to Pdvsa under the takeover bid to be presented
over the next few days."
Employees and retirees hold about 9.9% stake in the country's
biggest network. The network's nationalization was declared
early this year by Venezuelan President Hugo Chavez who accused
Cantv of being in league with "coup plotters" and the United
States government.
About Cantv
Compania Anonima Nacional Telefonos de Venezuela, Cantv, offers
telecommunications services. The company provides domestic and
international long distance telephone services throughout
Venezuela, wireless telephone services, and Internet access, and
publishes telephone directories.
PETROLEOS DE VENEZUELA: Net Profit Drops to US$4.7 Bil. in 2006
---------------------------------------------------------------
Venezuelan state-owned oil company Petroleos de Venezuela SA
told El Universal that its net profit decreased 26.4% to US$4.7
billion in 2006, compared to 2005.
Meanwhile, corporate expenditure for social welfare nearly
doubled, El Universal relates, citing Petroleos de Venezuela.
A non-audited, preliminary report posted on Petroleos de
Venezuela's Web site indicating that the firm's inter-annual
sales rose 18.8% to US$101.8 billion in 2006, compared to 2005,
Reuters states.
Petroleos de Venezuela SA -- http://www.pdv.com/--
is Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 12, 2007, Standard & Poor's Ratings
Services raised its long-term foreign currency corporate credit
rating on Petroleos de Venezuela S.A. or PDVSA to 'BB-' from
'B+'. S&P said the rating was removed from CreditWatch.
***********
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