/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070411.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 Wednesday, April 11, 2007, Vol. 8, Issue 71 Headlines A R G E N T I N A ALUNCAN SA: Trustee Verifies Proofs of Claim Until May 31 ARROW ELECTRONICS: ECS Unit Brings In New Management Team BANCO RIO: Will Increase Car Loan Portfolio to ARS460 Million BITS TOOLS: Trustee To File Individual Reports in Court Tomorrow CADEAL BIOMEDICOS: Proofs of Claim Verification Ends on May 29 CAEIRO HERMANOS: Trustee Verifies Proofs of Claim Until May 28 DARK HILL: Trustee To File General Report in Court Tomorrow ECO DESIGN: Proofs of Claim Verification Ends on May 22 EQUIS SA: Creditors to Vote on Settlement Plan Tomorrow GRUPO OESTE: Trustee Verifies Proofs of Claim Until May 15 MATRAX SRL: Trustee To File Individual Reports in Court Tomorrow MULTISOFTWARE SRL: Proofs of Claim Verification Ends on May 16 B E L I Z E CARLSON WAGONLIT: Moody's Assigns Loss-Given-Default Rating B E R M U D A REFCO INC: Administrators Want Until May 25 to Object to Claims REFCO INC: Administrators Want to Settle Inter-company Claims WHITEROCK LIMITED: Proofs of Claim Filing Deadline Is April 30 B O L I V I A ADVANCED MICRO: Expects US$1.225-Bil. Earnings in First Quarter PETROBRAS ENERGIA: Hires Decio Costa as Chairman of Board B R A Z I L BANCO DO BRASIL: To Stop Contributions to Employee Pension Fund BANCO NACIONAL: Board Okays BRL22.5MM Financing to AMC Textil BANCO NACIONAL: Inks BRL1.071MM Pact with Cooperativa de Credito BANCO NACIONAL: Okays BRL11.1-Million Loan for Parana Sanitation BRASIL TELECOM: Government Authorizes Firm's Merger with Oi BRASIL TELECOM: May Lessen President's Decision-Making Power CHEMTURA CORP: Hires Stephen Forsyth as Chief Financial Officer COMMSCOPE INC: Names Mike Kelley as Sr. VP for Global Operations COMPANHIA DE SANEAMENTO: Earns BRL873 Million in 2006 COMPANHIA DE SANEAMENTO: Will Invest BRL960MM on 2007 Projects GERDAU SA: Launches Public Offering for 16.7% Stake in Siderperu HEXCEL CORP: Names Wayne Pensky as CFO & Senior Vice President METSO OYJ: CEO Sees Profit Growth for 2007 PETROLEO BRASILEIRO: Continues Negotiating for Japanese Refinery PETROLEO BRASILEIRO: Will Step Up P-56 Construction Works REALOGY CORP: Stockholders Approve Apollo Buyout REALOGY CORP: Moody's Pares Rating on US$1.2-Bil. Notes to Ba3 REALOGY CORP: S&P Lowers Corporate Credit Rating to B+ from BB+ TELE NORTE: Gov't Authorizes Oi's Merger with Brasil Telecom C A Y M A N I S L A N D S CARIBBEAN ISLANDS: Sets Final Shareholders Meeting for May 3 DENALI MAG: Will Hold Final Shareholders Meeting on May 4 DEPFA PERFORMANCE: Sets Final Shareholders Meeting for May 4 ENDEAVOUR GLOBAL: Will Hold Last Shareholders Meeting on May 3 ETON PARK: Will Hold Final Shareholders Meeting on May 4 GLOBAL OPPORTUNITIES: Sets Final Shareholders Meeting for May 4 HMTF CV: Will Hold Final Shareholders Meeting on May 3 KOWLOON LTD: Sets Final Shareholders Meeting for May 4 PACIFIC FALCON: Proofs of Claim Must be Filed by May 4 SEAGATE TECHNOLOGY: Gives Update on Third Quarter Fin'l Results SEAHAWK YACHT: Sets Final Shareholders Meeting for May 3 SF PROPERTIES: Proofs of Claim Filing Deadline Is May 3 STEEPLE CAPITAL: Sets Last Shareholders Meeting for May 4 TORUS (IG): Will Hold Final Shareholders Meeting on May 3 C H I L E CONSTELLATION BRANDS: Peter Soderberg to Join Board of Directors ROYAL & SUN: MBIA Inc. Settles Lawsuit with Royal Indemnity Co. C O L O M B I A BBVA COLOMBIA: To Issue COP800B Bonds for Working Capital Needs BRIGHTPOINT INC: Units Buy CellStar's Entire U.S. Operations TOWER RECORDS: Sony, et al. Assert Lien on US$31MM Sale Proceeds * COLOMBIA: Will Auction Central de Inversiones' Loan Portfolio D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Radhames Segura to Represent Gov't in Suit G U A T E M A L A BRITISH AIRWAYS: AUC Report Shows Worst Baggage Handlers in 2006 BRITISH AIRWAYS: Traffic Figures Up by 2.3% in March 2007 M E X I C O AXTEL SAB: Launches Operations in Cuernavaca FOAMEX INT'L: Will Spend US$3 Million To Upgrade Tupelo Plants INT'L RECTIFIER: Material Weaknesses Found in Financial Reports INT'L RECTIFIER: S&P Watches Ratings on Likely Material Weakness JOAN FABRICS: Files for Bankruptcy in Delaware JOAN FABRICS: Case Summary & 30 Largest Unsecured Creditors OCEANIA CRUISE: Moody's Puts B2 Corp. Rating on Insignia Vessel PORTRAIT CORP: Creditors Balk at Planned Managers Bonus Payments P A N A M A CABLE & WIRELESS: Inks Allnet Sale Agreement with Computancenter P E R U HERTZ CORP: DBRS Rates Senior Subordinated Debt at B (high) * PERU: To Sell Sol-Denominated Bonds to Pay Paris Club Debt P U E R T O R I C O FEDERATED DEP'T: Sells 507-Store to Men's Wearhouse for US100MM SEARS HOLDINGS: Earns US$1.5 Billion in Year Ended February 3 U R U G U A Y * URUGUAY: Sells US$500 Million of Peso Bonds in Int'l Markets V E N E Z U E L A DAIMLERCHRYSLER AG: Kerkorian Offers US$4.5 Billion for Chrysler HERBALIFE LTD: Disbands Special Panel After Whitney Talks End SHAW GROUP: Cost Review To Delay Second Quarter Fin'l Reporting * VENEZUELA: Gets US$13.7MM in Back Taxes from Royal Dutch Shell * VENEZUELA: Launches Public Tender for Cantv Majority Stake * S&P Probes Relation Between Sovereign Ratings & Country Risk * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= ALUNCAN SA: Trustee Verifies Proofs of Claim Until May 31 --------------------------------------------------------- Ulderico Luis Laudren, the court-appointed trustee for Aluncan S.A.'s reorganization proceeding, verifies creditors' proofs of claim until May 31, 2007. The National Commercial Court of First Instance in Buenos Aires approved a petition for reorganization filed by Aluncan, according to a report from Argentine daily Infobae. Mr. Laudren will present the validated claims in court as individual reports. 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 Aluncan 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 Aluncan's accounting and banking records will be submitted in court. An informative assembly will be held to allow creditors to vote on Aluncan's completed settlement plan. Infobae did not state the reports submission dates as well as the date for the assembly. The trustee can be reached at: Ulderico Luis Laudren Libertad 293 Buenos Aires, Argentina ARROW ELECTRONICS: ECS Unit Brings In New Management Team --------------------------------------------------------- Arrow Enterprise Computing Solutions, a unit of Arrow Electronics Inc., appointed a new management team that includes senior leaders from both Arrow ECS and the legacy KeyLink Systems Group (KSG). With this announcement, Arrow ECS has established global business units to oversee its IBM and software business. "Through this and our other recent acquisitions, Arrow ECS is the No. 1 value-added distributor of enterprise products for HP and IBM, the No. 1 distributor of enterprise storage, and the No. 1 distributor of security and virtualization software," Kevin Gilroy, president of Arrow ECS, said. "One of Arrow ECS' main attractions to KSG was the people who made that business so successful. Our new management team reflects a true integration of the best of both companies." "The creation of global business units for our IBM and software business is not only a reflection of the significant opportunities that exist for Arrow ECS in these areas but also ensures that Arrow ECS is prepared to meet our partners' future needs as end-user demand for global service and solutions increases," Mr. Gilroy added. Due to the large scope of the global IBM business unit, Arrow ECS will retain the segmentation of the legacy Arrow ECS and KSG IBM groups. KSG will be fully integrated into all other business units across Arrow ECS. These executives have been appointed to lead Arrow ECS new global business units, effective immediately: -- Eric Williams, vice president of the Arrow ECS' IBM group for Arrow ECS' global IBM business unit; -- Mark Taylor, vice president of the Arrow KeyLink IBM group for Arrow ECS' global IBM business unit; -- Lance Sedlak, director of retail services for Arrow ECS' global IBM business unit; -- Matt Reaves, vice president of North American enterprise software for Arrow ECS' global software business unit; and -- John Szabo, vice president, Arrow KeyLink group, for Arrow ECS' customer programs. Robert Boulet will continue to serve as vice president of Arrow ECS' storage group, which has been renamed the Arrow ECS North American storage business unit; Richard Severa will continue to serve as vice president of Arrow ECS' MOCA group, which has been renamed the Arrow ECS North American Sun business unit; and Andrew Bratton will continue to serve as vice president of Arrow ECS' government group. Mr. Williams previously served as vice president of the Arrow ECS' legacy IBM group and was responsible for planning the strategic direction and overseeing daily operations for Arrow ECS' IBM business. Prior, he served as vice president of sales and product for Arrow's former Gates/Arrow division and as vice president of sales for Arrow/Schweber. He also is the former vice president of sales for Bell Industries. Mr. Williams will co-lead supplier, marketing and joint business strategies for Arrow ECS' IBM business with Mr. Taylor. As vice president and general manager of the legacy KSG IBM business group, Mr. Taylor was responsible for field sales, profit and loss, and the overall growth and strategy for KSG's IBM business. Mr. Taylor joined Agilysys KSG in 1994 and held several positions during his tenure. Mr. Sedlak previously established and served as general manager for Arrow ECS' legacy software group. Mr. Sedlak joined Arrow ECS in 2001 after managing the SGI business group for GE Access. He previously held positions ranging from vice president of sales to product management roles for Integration Alliance Corporation. In his new role, Mr. Sedlak will oversee business initiatives with the legacy KSG point-of-sale and retail services business. Mr. Reaves is the former vice president for the legacy KSG software business unit, where he was responsible for all software sales, marketing and operations for all non-application specific products. Mr. Reaves joined Agilysys in 1990 and held several other positions with the company. Prior, he held positions at PTXI and Medical Information Systems, a value-added reseller (VAR). Mr. Reaves also previously owned his own VAR business. Mr. Szabo previously served as vice president of sales operations for KSG. He was with Agilysys for 14 years and has extensive asset management experience. He held various management positions within the company including resource center director and branch operations manager. In his current role, Mr. Szabo will manage inside sales for legacy KSG partners. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics Inc. -- 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. * * * As reported on March 30, Moody's affirmed Arrow Electronics' senior preferred stock at Ba2 and senior subordinated stock at Ba1. Arrow Electronics carries Fitch's 'BB+' issuer default rating. The company's senior unsecured notes and senior unsecured bank credit facility also carry Fitch's 'BB+' rating. Fitch said the rating outlook is positive. BANCO RIO: Will Increase Car Loan Portfolio to ARS460 Million ------------------------------------------------------------- Banco Rio de la Plata Product Manager Gustavo Massaro told Business News Americas that the bank aims to boost its car loan portfolio by 40% to ARS460 million in 2007. Mr. Massaro commented to BNamericas that sales of new and used car are increasing in Argentina. However, there may be slower deliveries of cars from Brazil, causing a slowdown in the market. BNamericas underscores that Brazilian cars account for 60% of total car sales in Argentina. Banco Rio is Argentina's largest car finance player, with about 40% of the market and a 12.5% overall market share. Banco Rio hopes to increase the overall market share to 15% in two years, BNamericas says, citing Mr. Massaro. In a study Banco Rio conducted, the average car loan amount the bank granted in 2006 was ARS17,809, with an average loan maturity of 48 months, BNamericas states. Headquartered in Buenos Aires, Argentina, Banco Rio de la Plata is an Argentinean private bank providing a range of financial services, including retail, corporate, and merchant banking, insurance, credit cards and fund management, to individuals, companies of all sizes, financial institutions and the public sector (both provincial and national). The company has a network of approximately 280 branches and employs over 5,000 serving over 1 million customers. It is part of the Latin American franchise of Banco Santander Central Hispano, which holds over 80% of the bank's share capital. * * * As reported in the Troubled Company Reporter-Latin America on March 22, 2007, Moody's Investors Service assigned a B2 foreign currency debt rating to Banco Rio de la Plata S.A.'s US$250 million Global Short- and Medium-term Note Program. Moody's placed a (P)Ba2 long-term local currency debt rating to Banco Rio's proposed ARS450 million notes that are due in 2010 and are to be issued under the program. Moody's also assigned a Aa3(ar) national scale debt rating to the program and a (P)Aaa(ar) national scale local currency debt rating to the notes. These ratings were assigned to Banco Rio: US$250 million Global Short- and Medium-Term Note Program: -- Long-term foreign-currency debt rating: B2, Positive outlook -- National scale foreign currency debt rating: Aa3(ar) ARS450 million Senior Unsecured Notes: -- Provisional Long-term local currency debt rating: (P)Ba2, stable outlook -- Provisional National scale local currency debt rating: (P)Aaa(ar) BITS TOOLS: Trustee To File Individual Reports in Court Tomorrow ---------------------------------------------------------------- Francisco Jose M. Costa, the court-appointed trustee for Bits Tools SA's bankruptcy proceeding, will present creditors' validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on April 12, 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 Bits Tools and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Costa verified creditors' proofs of claim until March 1, 2007. Mr. Costa will also submit to court a general report containing an audit of Bits Tools' accounting and banking records on May 24, 2007. Mr. Costa is also in charge of administering Bits Tools' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Francisco Jose M. Costa Sarmiento 1562 Buenos Aires, Argentina CADEAL BIOMEDICOS: Proofs of Claim Verification Ends on May 29 -------------------------------------------------------------- Ernesto Resnizky, the court-appointed trustee for Cadeal Biomedicos S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until May 29, 2007. Mr. Resnizky will present the validated claims in court as individual reports on July 12, 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 Cadeal Biomedicos 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 Cadeal Biomedicos' accounting and banking records will be submitted in court on Oct. 5, 2007. Mr. Resnizky is also in charge of administering Cadeal Biomedicos' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Ernesto Resnizky Caracas 4330 Buenos Aires, Argentina CAEIRO HERMANOS: Trustee Verifies Proofs of Claim Until May 28 -------------------------------------------------------------- Hector Francisco Presta, the court-appointed trustee for Caeiro Hermanos S.A.C.I.F.I.A.'s reorganization proceeding, verifies creditors' proofs of claim until May 28, 2007. The National Commercial Court of First Instance in Buenos Aires approved a petition for reorganization filed by Caeiro Hermanos, according to a report from Argentine daily Infobae. Mr. Presta will present the validated claims in court as individual reports. 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 Caeiro Hermanos 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 Caeiro Hermano's accounting and banking records will be submitted in court. The informative assembly will follow. Creditors will vote to ratify the completed settlement plan during the assembly. Infobae didn't disclose the reports submission deadlines as well as the date of the assembly. The debtor can be reached at: Caeiro Hermanos S.A.C.I.F.I.A. Paraguay 2564 Buenos Aires, Argentina The trustee can be reached at: Hector Francisco Presta Parana 467 Buenos Aires, Argentina DARK HILL: Trustee To File General Report in Court Tomorrow ----------------------------------------------------------- Rosa del Carmen Irigoyen, the court-appointed trustee for Dark Hill SA's bankruptcy proceeding, will submit to court a general report containing an audit of the company's accounting and banking records on April 12, 2007. Ms. Irigoyen verified creditors' proofs of claim until Dec. 15, 2006. She then presented the validated claims in court as individual reports on March 1, 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 Dark Hill and its creditors. Ms. Irigoyen is also in charge of administering Dark Hill's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Rosa del Carmen Irigoyen Avenida Cordoba 1351 Buenos Aires, Argentina ECO DESIGN: Proofs of Claim Verification Ends on May 22 ------------------------------------------------------- Ricardo Sukiassan, the court-appointed trustee for Eco Design S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until May 22, 2007. Mr. Sukiassan will present the validated claims in court as individual reports. 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 Eco Design 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 Eco Design's accounting and banking records will be submitted in court. Infobae did not state the reports submission dates. Mr. Sukiassan is also in charge of administering Eco Design's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Ricardo Sukiassan San Martin 1009 Buenos Aires, Argentina EQUIS SA: Creditors to Vote on Settlement Plan Tomorrow ------------------------------------------------------- Equis S.A., a company under reorganization, will present a settlement plan to its creditors on April 12, 2007. Claudina Beatriz Badino, the court-appointed trustee for Equis' reorganization proceeding, submitted individual reports in court on Aug. 11, 2006. The individual reports were based on creditors' claims that Ms. Badino verified until June 28, 2006. The National Commercial Court of First Instance in Mendoza determined the verified claims' admissibility, taking into account the trustee's opinion and the objections and challenges raised by Equis and its creditors. Ms. Badino also presented a general report containing an audit of Equis' accounting and banking records in court on Oct. 9, 2006. The debtor can be reached at: Equis S.A. 9 de Julio 1769 Ciudad de Mendoza Mendoza, Argentina The trustee can be reached at: Claudina Beatriz Badino Perito Moreno 1077 Godoy Cruz Mendoza, Argentina GRUPO OESTE: Trustee Verifies Proofs of Claim Until May 15 ---------------------------------------------------------- Nestor Rodolfo del Potro, the court-appointed trustee for Grupo Oeste S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim until May 15, 2007. As reported in the Troubled Company Reporter-Latin America on April 3, 2007, the National Commercial Court of First Instance in Buenos Aires appointed Mr. del Potro for Grupo Oeste's bankruptcy proceeding. The proofs of claim presentation was on Feb. 21, 2007. Mr. del Potro will present the validated claims in court as individual reports on June 28, 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 Grupo Oeste 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 Grupo Oeste's accounting and banking records will be submitted in court on Aug. 27, 2007. Infobae did not state the date for the informative assembly. The trustee can be reached at: Nestor Rodolfo del Potro Avenida Corrientes 1291 Buenos Aires, Argentina MATRAX SRL: Trustee To File Individual Reports in Court Tomorrow ---------------------------------------------------------------- Anibal Hugo Rivero, the court-appointed trustee for Matrax SRL's bankruptcy proceeding, will present creditors' validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on April 12, 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 Matrax and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Rivero verified creditors' proofs of claim until Feb. 28, 2007. Mr. Rivero will also submit to court a general report containing an audit of Matrax's accounting and banking records on May 24, 2007. Mr. Rivero is also in charge of administering Matrax's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Ruben Leonardro Kwasniewski Rauch 925 Buenos Aires, Argentina MULTISOFTWARE SRL: Proofs of Claim Verification Ends on May 16 -------------------------------------------------------------- Maria del Carmen Alvarez, the court-appointed trustee for Multisoftware SRL's bankruptcy proceeding, verifies creditors' proofs of claim until May 16, 2007. Ms. Alvarez will present the validated claims in court as individual reports on June 28, 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 Multisoftware 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 Multisoftware's accounting and banking records will be submitted in court on Aug. 30, 2007. Ms. Alvarez is also in charge of administering Multisoftware's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Maria del Carmen Alvarez San Jose 135 Buenos Aires, Arigentina =========== B E L I Z E =========== CARLSON WAGONLIT: Moody's Assigns Loss-Given-Default Rating ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa last week, the rating agency confirmed its Ba3 Corporate Family Rating for Carlson Wagonlit B.V. The implementation of the LGD methodology in EMEA follows the introduction of the methodology in September 2006. Most of the rating actions Moody's confirmed relate to senior secured loans. * Issuer: CWT Europe Holdings SAS Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Senior Secured Bank Credit Facility Due 2014 Ba3 Ba2 LGD3 36% * Issuer: CWT Global B.V. Senior Secured Bank Credit Facility Due 2014 Ba3 Ba2 LGD3 36% * Issuer: Carlson Wagonlit B.V. Senior Secured Bank Credit Facility Due 2013 Ba3 Ba2 LGD3 36% Senior Secured Regular Bond/Debenture Due 2015 B2 B2 LGD5 89% * Issuer: Carlson Wagonlit New Holdco Limited Senior Secured Bank Credit Facility Due 2014 Ba3 Ba2 LGD3 36% * Issuer: Horizon Merger Corp Senior Secured Bank Credit Facility Due 2014 Ba3 Ba2 LGD3 36% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alphanumeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Paris, France, Carlson Wagonlit specializes in managing business travel for corporate clients worldwide. It is the world's second-largest travel management company and is present in nearly 150 countries including Singapore, Canada, the United States, and in Latin America. In Latin America, the company operates in Argentina, Barbados, Brazil, Belize, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Trinidad and Tobago, Uruguay and Venezuela. ============= B E R M U D A ============= REFCO INC: Administrators Want Until May 25 to Object to Claims --------------------------------------------------------------- RJM LLC, as Plan Administrator of the Reorganized Debtors' Chapter 11 cases, and Marc S. Kirschner, Chapter 11 Trustee and Plan Administrator of Refco Capital Markets, Ltd.'s estate, tell the U.S. Bankruptcy Court for the Southern District of New York that since filing for bankruptcy, about 14,000 claims, aggregating US$150,000,000,000 in asserted amounts, have been filed against the estates of Refco Inc., and its debtor- affiliates. Over the course of the Chapter 11 cases, about 5,000 claims asserting US$143,000,000,000 have been resolved by Court order or by consent of the parties. The Plan Administrators also filed objections to 1,300 additional claims asserting approximately US$5,500,000,000. The Plan Administrators continue to reconcile the remaining claims filed against the Chapter 11 estates, and anticipate filing additional claims objections by March 2007. Pursuant to the Reorganized Debtors' Plan of Reorganization, the last day for filing an objection to claims against the Debtors and RCM will be: (a) the later of 90 days after the Plan Effective Date, or 60 days after the filing of a proof of claim for, or request for payment of, that Claim; or (b) other date as the Court may order. The Plan Administrators ask the Court to extend the Claims Objection Deadline through and including May 25, 2007. Mark S. Deveno, Esq., at Bingham McCutchen LLP, in New York, asserts that extension of the Claims Objection Deadline is appropriate to complete the claims reconciliation process and to help ensure that all non-meritorious claims are appropriately challenged. The Plan Administrators believe that it is important to ensure that no unwarranted claims are allowed simply by virtue of the passage of time. Mr. Deveno assures Judge Drain that extending the Claims Objection Deadline will not cause delay and will not prejudice any claimants, as each claimant will retain any substantive defenses it may have to any claim objections filed. While the Plan Administrators do not anticipate any need to seek additional extensions, they reserve the right to seek further extension of the Claims Objection Deadline. About Refco Inc. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. On June 5, 2006, three more affiliates filed for chapter 11 protection namely: Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC. Refco Commodity Management, Inc., another affiliate, filed for bankruptcy on Oct. 16, 2006. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its Direct and Indirect Subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates, LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. (Refco Bankruptcy News, Issue No. 60; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). REFCO INC: Administrators Want to Settle Inter-company Claims ------------------------------------------------------------- RJM LLC, as Plan Administrator of the Reorganized Debtors' Chapter 11 cases, and Marc S. Kirschner, as Chapter 11 Trustee and Plan Administrator of Refco Capital Markets, Ltd.'s estate, ask the U.S. Bankruptcy Court for the Southern District of New York to approve their settlement and compromise of various Inter-company claims with Albert Togut, as (i) Chapter 7 Trustee for the Refco LLC estate, and (ii) interim Chapter 7 trustee for the estate of Refco Trading Services, LLC a wholly owned subsidiary of Refco LLC. The Refco Administrator represents: -- each of the then Chapter 11 Debtors, excluding Refco F/X Associates, LLC; -- FXA; and -- certain non-debtor affiliates, including Refco Singapore Pte. Ltd. and Refco Investment Services Pte. Ltd. RCM Claim In July 2006, the RCM Trustee filed Claim No. 290 against Refco, LLC, asserting a liquidated intercompany claim for US$11,450,384 based on "money borrowed or converted." The RCM Trustee also asserted "unknown, contingent and unliquidated claims" against Refco LLC for up to US$2,278,164,695, based on his belief that RCM improperly transferred more than US$2,200,000,000 to Refco Global Capital Management LLC Refco Global or Refco Capital LLC to directly benefit Refco Global, Refco Capital and one or more other debtors, including Refco LLC. Refco Master Claim In July 2006, the then Chapter 11 Debtors and their affiliates filed Claim No. 414 against Refco LLC, asserting liquidated inter-company claims in the net aggregate amount of US$138,266.382. The Refco Master Claim is separate and distinct from the RCM Claim filed against the Refco LLC estate for more than US$2,000,000,000 by the RCM Trustee. Subsequent to filing the claim, the Refco Master Claimants alleged damages exceeding US$750,000,000 based on various grounds of liability that seeks payments for, among other things: (i) improper acquisition accounting; (ii) allocations of senior management and administrative services and tradename use charges; (iii) retention of sale proceeds from the transaction with Man Financial, Inc., relating to trademarks and tradename values of Refco Group Ltd.; (iv) improper recording of income at Refco LLC referred to as "corporate yield enhancement"; (v) an assumption by one or more of the Refco Master Claimants of losses at Refco LLC arising out of an arbitration award; and (vi) interest on all claims as of the Refco LLC Petition Date. Refco Investment & Singapore Claims Refco Singapore and Refco Investment filed Claim Nos. 458 and 459 against Refco LLC for US$96,126 and US$114,235, purporting to arise out of intercompany receivables between the two claimants, on one hand, and Refco LLC, on the other. RTS Claims Mr. Togut, on behalf of the RTS estate, filed Claim Nos. 11726 through 11751, and 11753 against each of the then Chapter 11 Debtors and RCM, and Claim No. 413 against Refco LLC, seeking undetermined amounts for various causes of action arising from RTS' relationship with each of the Chapter 11 Debtors, RCM and Refco LLC. The RTS Claims further asserted unliquidated claims for damages arising from transactions engaged in by the Chapter 11 Debtors, RCM and Refco LLC that involved fraudulent accounting, misuse of assets, fraudulent concealment of losses, and any other misconduct or omissions, including those that led to the commencement of cases under Chapter 11 and Chapter 7. According to Refco LLC's books and records, RTS held accounts receivable claims aggregating US$4,961,638 against the Refco Master Claimants and Refco LLC, versus account payables due those same entities in aggregate amount of US$12,013,485. Refco LLC Claims Mr. Togut, on behalf of the Refco LLC estate, filed Claim Nos. 11312 through 11318; 11435; 11752; and 11754 through 11771) in the cases of each of the Chapter 11 Debtors and RCM. The Refco LLC Claims assert unliquidated claims arising out of the Chapter 7 Debtor's relationship with the Chapter 11 Debtors and RCM. Mr. Togut also asserted various liquidated claims against certain of the Chapter 11 Debtors. Based on its schedules of assets and liabilities, Refco LLC held accounts receivable aggregating US$198,107,010 against the Refco Master Claimants, RCM and RTS, versus account payables due such entities totaling US$153,735,761. Terms of Intercompany Claims Settlement Under the Plan, on and after the Effective Date, the Plan Administrators may exercise all of the Reorganized Debtors' rights, powers and duties, including the settlement and compromise of the disputed intercompany claims. Accordingly, the Intercompany Claims Settlement Agreement provides that: (1) The Contributing Debtors will be allowed a senior subordinated unsecured claim against the Refco LLC estate for US$565,000,000, in settlement of the claims asserted in the Refco Master Claim. The Specified Allowed Contributing Debtors' Claim will be entitled to distribution from the Refco LLC estate. The claim will be senior to, and paid before distributions are made on account of, the Allowed Other Claim or any claims under Sections 726(a)(3) through 726(a)(6) of the Bankruptcy Code. (2) The balance of the Refco Master Claim and the RCM Claim will be allowed as a junior subordinated unsecured claim against the Refco LLC estate for US$575,000,000, and will be entitled to distribution from the Refco LLC estate under Section 726(a)(2). (3) The Refco Singapore Claim and the Refco Investment Claim will be disallowed and expunged in their entireties. Refco Singapore, Refco Investment, and all other Refco Affiliates included in the Refco Master Claim will not be entitled to any distribution from Refco LLC's estate on account of the Refco Singapore Claim, the Refco Investment Claim, or the Refco Master Claim. (4) The RTS Claims will be disallowed and expunged in their entireties in consideration for certain releases. (5) The parties will exchange mutual releases. (6) The Settlement allows the Specified Allowed Contributing Debtors' Claim and the Allowed Other Claim. The timing and amount of the distributions will be in Mr. Togut's discretion consistent with the applicable provisions of the Bankruptcy Code. The parties agree that the Settlement does not waive, expunge or otherwise disallow any claims or rights to payment of administrative expenses arising on or after the Refco LLC Petition Date, or any claims or rights of customers or creditors of RCM against Refco LLC that were assigned by them to the Refco Master Claimants and RCM, and subordinated on the terms of various Claim Subordination and Waivers contemplated by the Plan Support Agreement, dated September 14, 2006. About Refco Inc. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. On June 5, 2006, three more affiliates filed for chapter 11 protection namely: Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC. Refco Commodity Management, Inc., another affiliate, filed for bankruptcy on Oct. 16, 2006. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its Direct and Indirect Subsidiaries, including Refco Capital Markets, Ltd., and Refco F/X Associates, LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. (Refco Bankruptcy News, Issue No. 60; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). WHITEROCK LIMITED: Proofs of Claim Filing Deadline Is April 30 -------------------------------------------------------------- Whiterock Limited's creditors are given until April 30, 2007, to prove their claims to Donna A. Trott, 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. Whiterock Limited's shareholders agreed on March 21, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Donna A. Trott 27 Reid Street Hamilton HM 11, Bermuda ============= B O L I V I A ============= ADVANCED MICRO: Expects US$1.225-Bil. Earnings in First Quarter --------------------------------------------------------------- Advanced Micro Devices will report revenue of approximately US$1.225 billion in the quarter ending March 31, 2007. Revenues declined sharply quarter-over-quarter for the Computing Solutions segment, primarily due to lower overall average selling prices and significantly lower unit sales, especially in the resale channel. Advanced Micro plans to restructure its business model to increase operational efficiencies and lower its operating cost structure. Advanced Micro will reduce 2007 capital expenditures by approximately US$500 million, which the company believes will not materially impact capacity plans for the year. Advanced Micro will also significantly reduce discretionary expenses and limit hiring to critical positions. The company will provide more details during its conference call to report first quarter 2007 financial results on April 19. Advanced Micro will report first quarter 2007 financial results after market close on April 19, 2007. Advanced Micro will hold a conference call for the financial community at 2:00 p.m. Pacific Time to discuss first quarter results. Based in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE: AMD) -- http://www.amd.com/-- designs and produces innovative microprocessor and graphics and media solutions for the computer, communications, and consumer electronics industries. The company has corporate locations in Sunnyvale, California, Austin, Texas, and Markham, Ontario, and global operations include those in Bolivia, Chile, Colombia and Ecuador, among others. * * * The company's 7-3/4% Senior Notes due Nov. 1, 2012, carries Standard & Poor's B+ rating, Moody's Ba3 rating and Fitch's BB- rating. PETROBRAS ENERGIA: Hires Decio Costa as Chairman of Board --------------------------------------------------------- Petrobras Energia Participaciones S.A. disclosed that its board of directors has appointed Decio Fabricio Oddone da Costa and Daniel Lima de Oliveira as Chairman and Vice Chairman, respectively. In addition, the Board at the said meeting resolved to appoint the members of the Audit Committee, mostly composed of independent Directors according to the Argentine Securities Commission Regulations, and appointed Cedric Bridger, Ignacio R. Arrieta and Santiago Montezanti as regular members and Horacio T. Liendo, as alternate member of such Audit Committee, with the abstention, in each case, of the directors involved. 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+ =========== B R A Z I L =========== BANCO DO BRASIL: To Stop Contributions to Employee Pension Fund --------------------------------------------------------------- Banco do Brasil said in a statement that it has decided to stop contributions to Previ, its employee pension fund. Banco do Brasil told Business News Americas that it made the decision to lessen personnel expenses to BRL325 million per year. The bank will raise contributions to employee health plan, Cassi, which will counterbalance any savings. BNamericas relates that Banco do Brasil will study the need for more contributions to Previ every 12 months. Previ had a surplus of BRL15.9 billion in 2006, ending the year with BRL106 billion in assets, 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 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 NACIONAL: Board Okays BRL22.5MM Financing to AMC Textil ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES' board approved a financing of BRL22.5 million to A.M.C. Textil Ltda, for the construction of a textile production plant in the Municipality of Itajai (State of Santa Catarina). Consequently, the company will increase its offer of differentiated textile products, and will generate about 300 direct and 600 indirect jobs, in addition to obtaining economies of scale and productivity from its investments in modernization. Total investments of BRL35 million, of which BNDES will participate with 64%, will allow an increase of 34% in the company's production capacity. The new plant will initially support the transference of all plant's structure in Brusque, the main A.M.C.'s business unit, which concentrates management, creation, fabric cutting, modeling and sales activities. The place was selected due to its strategic location in logistic terms, since it is next to BR 101 highway, Navegantes Airport and Port of Itajai, therefore allowing the discharge of its products with more agility and speed. A.M.C. owns four manufacturing plants: one for roll knitting, in Jaragua do Sul, two for textile manufacturing, in Brusque and Joinville, and one for footwear in Sao Joao Batista, all of them municipalities in the State of Santa Catarina. The company is held by the Menegotti family, which owns Colcci, Sommer and Carmelitas trademarks, having a strong operation in the market and being present to all events of the Brazilian fashion, such as Fashion Rio and Sao Paulo Fashion Week. A.M.C. also owns a license to use Coca-Cola brand in undershirts, pants and warm clothing. Colcci's business unit plays an important role in the market, by differentiating itself from the informal producer and other fashion and leisure textile manufacturers, based on its aggressive investment in marketing and product development. An example of the attention directed to marketing is the hiring of the Brazilian model Gisele B�ndchen to represent the company in fashion events. About BNDES Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook to Positive from Stable on Banco Nacional de Desenvolvimento Economico e Social SA's BB Foreign currency counterparty credit rating and BB+ Local currency counterparty credit rating. BANCO NACIONAL: Inks BRL1.071MM Pact with Cooperativa de Credito ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social and Cooperativa de Credito de Sao Roque de Minas Ltda. entered into an agreement on, April 3, 2007, under which the cooperative will receive BRL1.071 million for the construction of its seat, with modernization of its infrastructure and creation of a cultural space for events on technical qualification and social interaction. The operation agreement was signed by BNDES Social Area director, Elvio Gaspar, at BNDES head office. Since 1991 the cooperative operates as an agent for promoting development in the High Sao Francisco region, at northeast of Minas Gerais, benefiting the Municipalities of Sao Roque de Minas, Vargem Bonita, Delfinopolis, Sao Joao Batista do Glaria and Pratinha, by means of low interest rate financings. The BNDES operation was qualified under the ambit of Program for Collective Productive Investments -- Proinco -- and total investment in the project will be BRL1.433 million, of which R$ 362 thousand will come from the cooperative's own funds. Its performance has been crucial for improving the agricultural activities in High Sao Francisco, not only due to the granting of productive credit, but also due to the provision of technical assistance to farmers and cattle breeders, so contributing to the development of these activities on entrepreneurship bases. Under direct supervision of an agronomic engineer hired by the cooperative itself, technical counseling is provided to coffee and corn planters, which benefited from the implementation of a grain silo, in partnership with Cooperativa dos Produtores Rurais da Serra da Canastra. In addition to providing credit to its members, Cooperativa de Credito de Sao Roque de Minas functions as a bank, operating several financial products and services, such as deposits, cash investments, tax payment, transfers, collections, payment orders, and savings, among others. The cooperative has currently about 6.2 thousand members. Its target is to reach 10.5 thousand members until 2017, representing an increase of 66% over the current number. In 2006, nearly 3.8 thousand credit operations were carried out, amounting to BRL20.94 million, of which BRL12.94 million was funded as deposits and BRL7.69 million as transfers from Banco Cooperativo do Brasil S/A. Another important performance of this entity relates to the educational sector, as creator and provider of Cooperativa Educacional de Sao Roque de Minas, which offers basic education to 120 students in elementary and secondary school. It also supports the transportation of 70 college students attending classes in the Municipalities of Formiga, Arcos and Piumhi, besides opening qualification and professionalization programs for its members. The Program for Collective Productive Investments -- Proinco -- was created by BNDES to support investment projects benefiting workers, producers and/or domestic enterprises with collective operations and capable of influencing decisively in the economic and social development of the region, sectors and communities involved, particularly at less developed areas. In Minas Gerais, the first institution receiving Proinco financing was Cooperativa Cachacaboa, in Jequitinhonha Valley, which last year received from BNDES funds of about BRL1.89 million to build a structure for storing, homogenizing, analyzing chemically and bottling the cachaca production. About BNDES Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook to Positive from Stable on Banco Nacional de Desenvolvimento Economico e Social SA's BB Foreign currency counterparty credit rating and BB+ Local currency counterparty credit rating. BANCO NACIONAL: Okays BRL11.1-Million Loan for Parana Sanitation ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social said in a statement that it has authorized a BRL11.1-million loan for provision of basic sanitation services in Parana. Business News Americas relates that the loan will be made to Parana's state-run water firm Sanepar, which will make another BRL2.8-million loan. According to BNamericas, the project was included in the Brazilian government's growth acceleration plan. It is aimed at sinking wells into the Guarani aquifer to provide water for the cities: -- Candoi, -- Jardim Alegre, -- Vaipora, and -- Laranjeiras do Sul. The report says that the investment will be used for: -- water pumping stations, -- reservoirs, and -- electrical installations. Sanepar seeks to supply treated water for 100% of the urban population and wastewater collection for 80% by 2010. The company currently provides treated water to 98.7% of the urban population within its area of activity and wastewater collection services for 47.7%, BNamericas states. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook to Positive from Stable on Banco Nacional de Desenvolvimento Economico e Social SA's BB Foreign currency counterparty credit rating and BB+ Local currency counterparty credit rating. BRASIL TELECOM: Government Authorizes Firm's Merger with Oi ----------------------------------------------------------- The Brazilian government has approved a merger between fixed line telecoms operator Brasil Telecom Participacoes and Oi fka Tele Norte Leste Participacoes, local magazine Veja reports. According to Veja, the government will pass a legislation allowing the deal. However, an Oi spokesperson denied to Business News Americas that it was negotiating a merger with Brasil Telecom. The spokesperson did say that in the face of strong competition from global operators, Oi sees a merger with one of the other national operators to form a "national platform" as one of its options. "We think that a national champion such as a merger between Telemar and Brasil Telecom is good for the country, but this would need a presidential decree," Oi Chief Financial Officer Jose Luis Magalhaes Salazar told BNamericas. 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. 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. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. * * * Brasil Telecom Participacoes' local currency long-term debt carries Fitch's BB+ rating. Moody's Investors Service placed a Ba1 local currency long-term issuer rating on Brasil Telecom. BRASIL TELECOM: May Lessen President's Decision-Making Power ------------------------------------------------------------ Brasil Telecom Participacoes shareholders will vote on a plan to reduce the company president Ricardo Knoepfelmacher's decision- making power, news daily Valor Economico reports. Brasil Telecom's board of management has been acting informally as a collective decision-making group for one year, Business News Americas relates. Technically, the president and a nominated executive have the power to ratify vital decisions for the company. Shareholders will vote to abolish this power. Braso Telecom Corporate Governance Director Fabio Moser commented to BNamericas, "This concentration of power represents a risk for shareholders. Our aim with the project is to reduce this risk, but without slowing the decisions of the company." Valor Economico underscores that once the reduction of the president's power is approved, new board members will then be nominated. Brasil Telecom expects the minimum number of board members to be increased to between five and nine, from four. The new management structure is part of a continuing corporate governance review within Brasil Telecom. The company hired US management consultants McKinsey to research the issue, Valor Economico states, citing Mr. Moser. Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. * * * Brasil Telecom Participacoes' local currency long-term debt carries Fitch's BB+ rating. Moody's Investors Service placed a Ba1 local currency long-term issuer rating on Brasil Telecom. CHEMTURA CORP: Hires Stephen Forsyth as Chief Financial Officer --------------------------------------------------------------- Chemtura Corp. has appointed Stephen C. Forsyth as Executive Vice President and Chief Financial Officer, effective April 30, 2007. Declaring the appointment, Chairman and CEO Robert L. Wood said, "Stephen is a proven financial and operating executive with more than 25 years of experience and a demonstrated track record of operational finance, cash generation and bottom-line improvement." Mr. Forsyth, 51, will succeed Karen R. Osar as Executive Vice President and Chief Financial Officer, whose retirement from the company was effective March 30, 2007. "We appreciate Karen's significant contributions over the last three years and wish her a long and happy retirement," Mr. Wood said. Kevin V. Mahoney, Chemtura's Senior Vice President and Corporate Controller, is serving as interim CFO pending Mr. Forsyth's arrival from Hexcel Corp., a leading advanced structural materials company where he most recently served as Executive Vice President and Chief Financial Officer. Mr. Forsyth was instrumental in designing and implementing business consolidation programs and growth strategies that resulted in a significant increase in revenues for Hexcel. In particular, he secured financing for and managed the financial integration of several key acquisitions to diversify the company's markets, optimized Hexcel's capital and cost structures, and launched a global restructuring plan. Mr. Forsyth also has 16 years of operating management experience with Hexcel, including serving as vice president of international operations, responsible for one third of Hexcel's sales, assets and employees, and serving as manager of various resins and chemicals businesses and international divisions. A native of England, Mr. Forsyth completed his undergraduate degree at the London School of Economics and Political Science, joined Lloyds Bank, and then completed his MBA at the London Business School. Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:CEM) -- http://www.chemtura.com/-- is a global manufacturer and marketer of specialty chemicals, crop protection, and pool, spa and home care products. The company has approximately 6,400 employees around the world and sells its products in more than 100 countries. The company has facilities in Singapore, Australia, China, Hong Kong, India, Japan, South Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany, Mexico, and The United Kingdom. * * * In November 2006, Moody's Investors Service assigned a Ba1 rating to Chemtura Corp.'s US$400 million of senior notes due 2016 and affirmed the Ba1 ratings for its other debt and the corporate family rating. COMMSCOPE INC: Names Mike Kelley as Sr. VP for Global Operations ---------------------------------------------------------------- CommScope Inc. has appointed Mike Kelley as Senior Vice President, Global Enterprise Operations. Mr. Kelley, 46, will be responsible for building upon and integrating CommScope's global Enterprise manufacturing operations, including facilities based in North America, Europe and Australia. Mr. Kelley has been a CommScope leader for eight years as plant manager and Vice President of Operations at the Claremont, North Carolina manufacturing facility. "With more than 20 years of broad operations experience and his key leadership role in our recent, successful manufacturing initiatives, Mike is the right person to guide our global Enterprise operations," said Randy Crenshaw, Executive Vice President and General Manager, Enterprise. "In the past few years, Mike has shown that he is a capable, focused leader who can meet the challenges of a dynamic operations environment." Prior to joining CommScope in 1999, Mr. Kelley was Plant Manager for General Cable Corporation in Plano, Texas. Before that, Mr. Kelley held various manufacturing and operations positions at Belden CDT Inc., including Plant Manager at its Tompkinsville, Kentucky facility and Director of Operations at its Venlo, Netherlands facility. Mr. Kelley received his Masters of Business Administration from the University of Tennessee at Chattanooga in 1984 and his Bachelors degree in 1983. He and his wife, Patti, have two children and live in Conover, North Carolina. Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV) -- http://www.commscope.com/-- designs and manufactures "last mile" cable and connectivity solutions for communication networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with high-performance wired or wireless cabling solutions. CommScope, to serve the growing Latin American market, has begun manufacturing coaxial cable for broadband wireless and wireless networks in its plant in Jaguariuna, Brazil. It has over 283,000 sq. ft. of manufacturing space. * * * As reported in the Troubled Company reporter on Aug. 23, 2006, Standard & Poor's Rating Services removed its rating on Hickory, North Carolina-based CommScope, Inc., from CreditWatch with negative implications from CreditWatch, where they were placed with negative implications on Aug. 7, 2006, and affirmed the existing 'BB' corporate credit rating. S&P said the outlook is stable. COMPANHIA DE SANEAMENTO: Earns BRL873 Million in 2006 ----------------------------------------------------- Companhia de Saneamento Basico do Estado de Sao Paulo said in a filing with Brazilian securities regulator Comissao de Valores Mobiliarios that its net profit increased 0.81% to BRL873 million in 2006, compared to 2005. Business News Americas relates that Companhia de Saneamento's gross revenue rose 11.7% to BRL5.98 billion in 2006, from 2005. Its net sales increased 11.6% to BRL5.53 billion, while its operating profit grew 7.4% to BRL1.33 billion. The firm's Ebitda increased 11.1% to BRL2.5 billion. Companhia de Saneamento invested BRL905 million in 2006 for the expansion of water supply as well as waste treatment, BNamericas notes. The firm connected about 156,000 homes to water and 136,000 to the sewage network. Environmentally responsible activities are the most important area for investment during 2007, BNamericas states, citing Companhia de Saneamento. Companhia de Saneamento Basico do Estado de Sao Paulo is one of the largest water and sewage service providers in the world based on the population served in 2005. It operates water and sewage systems in Sao Paulo, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2006, Standard & Poor's Ratings Services has raised its Brazilian national-scale corporate credit rating on Companhia de Saneamento Basico do Estado de Sao Paulo to 'brA+' from 'brA'. At the same time, it affirmed the company's global-scale ratings at 'BB-'. S&P said the outlook is stable. As reported on Oct. 25, 2006, Fitch Ratings assigned local and foreign currency issuer default ratings of 'BB' and National Long-term Rating of 'A+(bra)' to Companhia de Saneamento Basico do Estado de Sao Paulo aka Sabesp. In addition, Fitch assigned a 'BB' to the company's US$250 million note issuance due 2016. COMPANHIA DE SANEAMENTO: Will Invest BRL960MM on 2007 Projects -------------------------------------------------------------- A Companhia de Saneamento Basico do Estado de Sao Paulo spokesperson told Business News Americas that the firm will invest BRL960 million this year. The spokesperson explained to BNamericas, "The resources are to be spent on a wide range of projects including the laying of sewage collection and water distribution systems, as well as specific projects such as the water loss control program. There are an infinite number of projects that have been especially earmarked in the budget." BNamericas states that Companhia de Saneamento said in its 2006 financial results that investments were BRL905 million in 2006. About BRL412 million of which was spent on water, while some BRL493 million was used in sewage. Sao Paulo received BRL574 million, while regional systems got BRL331 million. Some BRL885 million was allocated for the Tiete river cleanup, considered as one of Companhia de Saneamento's most important ongoing projects, BNamericas notes. Companhia de Saneamento told BNamericas that it is working with a BRL400-million loan from the national development bank BNDES and the Inter-American Development Bank. Companhia de Saneamento Basico do Estado de Sao Paulo is one of the largest water and sewage service providers in the world based on the population served in 2005. It operates water and sewage systems in Sao Paulo, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on June 23, 2006, Standard & Poor's Ratings Services has raised its Brazilian national-scale corporate credit rating on Companhia de Saneamento Basico do Estado de Sao Paulo to 'brA+' from 'brA'. At the same time, it affirmed the company's global-scale ratings at 'BB-'. S&P said the outlook is stable. As reported on Oct. 25, 2006, Fitch Ratings assigned local and foreign currency issuer default ratings of 'BB' and National Long-term Rating of 'A+(bra)' to Companhia de Saneamento Basico do Estado de Sao Paulo aka Sabesp. In addition, Fitch assigned a 'BB' to the company's US$250 million note issuance due 2016. GERDAU SA: Launches Public Offering for 16.7% Stake in Siderperu ---------------------------------------------------------------- Gerdau SA has launched a public offer for a 16.7% stake in Siderperu, the latter said in a filing with Peruvian securities regulator, Conasev. The offer covers 98 million shares at PEN1.38 per share and will close on April 25. Based on this price, the offer will be about US$42 million, which is lower than that of Siderperu shares trading on the Lima stock exchange. It is, however, higher than the PEN0.69 per share that Gerdau paid in November 2006 to boost its participation to the current 83.3% in the Peruvian firm, according to Siderperu's statement. About Siderperu Headquartered in Chimbote, Peru, Siderperu SA has steel production capacity of 400,000 tons per year. The company reported a net loss of 5.99 million soles (US$1.82 million) in 2005, compared to a net profit of 28.8 million soles in 2004. About Gerdau Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. * * * As reported in the Troubled Company Reporter on Jan. 19, 2007, Standard & Poor's Ratings Services placed its ratings, including its 'BB' corporate credit rating, on Tampa, Fla.-based Gerdau Ameristeel Corp. on CreditWatch with positive implications. HEXCEL CORP: Names Wayne Pensky as CFO & Senior Vice President -------------------------------------------------------------- Hexcel Corporation has appointed Wayne Pensky as Senior Vice President and Chief Financial Officer. The current Chief Financial Officer, Stephen Forsyth has advised that he is leaving the company on April 27, 2007, to join Chemtura Corporation (NYSE:CEM) as its Executive Vice President and Chief Financial Officer. Mr. Pensky joined Hexcel in July 1993 as Corporate Controller, having previously been a partner in a public accounting firm. In 1998 he was named Vice President, Finance and Controller of Hexcel's Composites global business unit. In that role, he has been responsible for accounting, planning, analysis and control activities of the business in the U.S. and internationally. Since last summer, he has led the process to integrate and consolidate Hexcel's operational finance & accounting organization. He will relocate from Hexcel's offices in Dublin, California to the corporate headquarters in Stamford, Connecticut. Dave Berges, Chairman & CEO commented, "Stephen has made many significant contributions to Hexcel since joining the company in 1980 in operating, business development and financial positions. He played a pivotal role in Hexcel's growth and development over the last fifteen years. While Stephen will be missed, we are pleased that Chemtura has recognized his abilities and wish him every success in his new position." Mr. Berges continued, "I am delighted to name Wayne to the position of Chief Financial Officer and that our succession planning has enabled an orderly transition. Wayne combines strong financial and accounting skills and an in depth understanding of our business with clear-sighted business judgment and leadership abilities. I look forward to his many contributions to the success of Hexcel in this exciting period of growth." Headquartered in Stamford, Connecticut, Hexcel Corporation -- http://www.hexcel.com/-- (NYSE/PCX: HXL) develops, manufactures and markets lightweight, high-performance reinforcement products, composite materials and composite structures for use in commercial aerospace, space and defense, electronics, and industrial applications. The company has operations in Australia, Brazil, China, France and Japan, among others. * * * As reported in the Troubled Company Reporter-Latin America on April 5, 2007, Moody's Investors Service has raised Hexcel Corp.'s Corporate Family Rating to Ba3 from B1. The ratings on Hexcel's senior secured credit facility have been upgraded to Ba1 from Ba2, while the subordinated notes ratings were upgraded to B1 from B3. The ratings outlook is Stable. As reported in the Troubled Company Reporter-Latin America on March 30, 2007, Standard & Poor's Ratings Services raised its ratings, including the corporate credit to 'BB' from 'BB-', on aerospace supplier Hexcel Corp. S&P said the outlook is stable. METSO OYJ: CEO Sees Profit Growth for 2007 ------------------------------------------ Metso Oyj President and Chief Executive Officer Jorma Elorante stated in his review that the company's profit growth would continue in 2007. The good order intake in the first quarter supports the positive development for the full year. "As we noted in February, in connection with the publication of our financial statements, Metso's net sales in 2007 are estimated to grow by more than 20 percent on 2006, and the operating profit is estimated to clearly improve. We also repeat our estimate regarding the 2007 operating profit margin. It is estimated that the operating profit margin will be slightly below Metso's 10 percent target. Metso's order backlog has further strengthened from the year-end, which supports our favorable full-year estimate," Mr. Elorante said. However, Mr. Eloranta reminds that in businesses like Metso's the net sales and operating profit can vary significantly between quarters. "We estimate that this year the first quarter will be the weakest, and the net sales and operating profit for the last three quarters of the year will clearly improve from the first quarter. This is mainly due to the timing and mix of deliveries and normal seasonal variation," Mr. Eloranta added. Metso targets to exploit the favorable market situation by, for example, strengthening its global presence close to the customers. It will also improve its supply chain management globally. De-bottlenecking investments target improved delivery capability and customer service. According to Eloranta, continuous improvement of productivity and operational quality are key matters for profitability development. Additionally, Metso is developing its business processes and supporting information systems. "Growth will also require business renewal. We see great potential in, for example, environmental and service business development," Mr. Eloranta concluded. Metso will also consider corporate acquisitions that complement its current product and service offering or strengthen its geographical presence. About Metso Headquartered in Helsinki, Finland, Metso Corp. aka Metso Oyj -- http://www.metso.com/-- is a global engineering and technology corporation with 2005 net sales of around EUR4.2 billion. Its 22,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. The company's principal production plants are located in Brazil, China, Finland, France, Germany, India, Italy, South Africa, Sweden, the United Kingdom, and the United States. * * * As of Feb. 9, Metso Oyj carries Standard & Poor's 'BB+' long- term and 'B' short-term corporate credit ratings and 'BB' senior unsecured debt rating. PETROLEO BRASILEIRO: Continues Negotiating for Japanese Refinery ---------------------------------------------------------------- Brazilian state-owned oil firm Petroleo Brasileiro Fuel Distribution Director Paulo Roberto Costa told Business News Americas that the firm is still negotiating with ExxonMobil Corp. and Sumitomo Corp. to acquire an oil refinery in Okinawa, Japan. As reported in the Troubled Company Reporter-Latin America on Dec. 22, 2006, Almir Barbassa, Petroleo Brasileiro SA's chief financial officer, confirmed that the company was negotiating to purchase a stake in Nansei Sekiyu KK, which has a capacity of 100,000 barrels per day and is 87.5% owned by ExxonMobil through its Japanese unit TonenGeneral Sekiyu KK. Sumitomo holds the remaining stake. Mr. Barbassa said that Petroleo Brasileiro could reach a deal for Nansei Sekiyu in one or two months. According to him, Petroleo Brasileiro would seek to upgrade Nansei Sekiyu to refine heavy Brazilian crude and boost its production capacity. According to BNamericas, Petroleo Brasileiro has been in talks with ExxonMobil and Sumitomo for the refinery since early this year. Mr. Costa commented to reporters in Brazil, "The negotiation process continues. We need to reach a deal healthy for all sides involved. We have not reached common ground yet." Petroleo Brasileiro is also negotiating with the main players in Brazil's petrochemicals sector to set up a petrochemicals complex in the southeast region, BNamericas notes, citing Mr. Costa. Mr. Costa told BNamericas, "We're still in preliminary talks but in six months or a year we may have something definite." Petroleo Brasileiro denied to BNamericas that one of its officers was directly involved in the alleged insider trading in Ipiranga before the latter was acquired by Petroleo Brasileiro, Braskem and Ultrapar. BNamericas emphasizes that the concerned employee was temporarily working at Petroleo Brasileiro unit BR Distribuidora. "The officer is now working for Petrobras [Petroleo Brasileiro] again but is suspended from his duties. He was not part of the group that was studying Ipiranga's acquisition," BR Distribuidora Gas Stations Manager Reinaldo Belotti told BNamericas. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. PETROLEO BRASILEIRO: Will Step Up P-56 Construction Works --------------------------------------------------------- Brazil's state-run oil firm Petroleo Brasileiro SA will speed up the launching of construction works for P-56, a semi-submersible platform that will produce 100,000 barrels per day of oil and six million cubic meters per day of natural gas, Business News Americas reports. BNamericas relates that the works could take three years to complete. Petroleo Brasileiro did not disclose the launching date of the P-56 construction works. Petroleo Brasileiro said in a statement that the move will offset delays in construction of the P-55 and P-57 platforms. BNamericas underscores that Petroleo Brasileiro called off tenders for P-55 and P-57, saying that shipbuilders were asking too much for construction. Petroleo Brasileiro said that it is defining new strategies to hire out construction of platforms P-55 and P-57 to optimize projects and obtain better commercial conditions. Petroleo Brasileiro is discussing with FSTP -- composed of Singapore's shipmaker Keppel, Brazil's engineering firm Pem Setal and France's engineering company Technip -- for the construction of P-56, BNamericas states. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's. Fitch Ratings assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ Fitch upgraded the foreign currency rating of Petrobras to BB+ from BB, with positive outlook, in conjunction with Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. REALOGY CORP: Stockholders Approve Apollo Buyout ------------------------------------------------ Realogy Corporation disclosed that its stockholders approved the merger agreement providing for the acquisition of Realogy by an affiliate of Apollo Management, L.P. at a special meeting of stockholders held March 30. Stockholder approval satisfies a required condition to the closing of the transaction. As previously disclosed, subject to the satisfaction of other customary conditions to closing, Realogy anticipates that the transaction will be completed on or about April 10, 2007, after which time shares of Realogy common stock will no longer be listed on the New York Stock Exchange. Upon the completion of the merger each outstanding share of Realogy common stock will be converted into the right to receive US$30.00 in cash, without interest and less any applicable withholding taxes. The parties disclosed the takeover agreement in December 2006, in a transaction valued at approximately US$9.0 billion, including the assumption or repayment of approximately US$1.6 billion of net indebtedness and legacy contingent and other liabilities of approximately US$750 million. Terms of the Agreement Under the terms of the agreement, Realogy stockholders would receive US$30.00 per share in cash at closing, representing a premium of 18 percent over Dec. 15, 2006's market closing price of US$25.50 and a premium of 26 percent over Realogy's average closing share price since its spin-off from Cendant Corporation on Aug. 1, 2006. In addition, the total transaction value represents a multiple of approximately 11 times the mid-point of the Company's previously released 2006 EBITDA guidance before restructuring and spin-off-related costs, and approximately 12 times the consensus Wall Street estimate of 2007 Company EBITDA. On the unanimous recommendation of a special committee of the Board of Directors comprised entirely of independent and disinterested directors, the Board of Directors of Realogy approved the agreement and recommended that Realogy's stockholders adopt the agreement. Pursuant to existing contractual arrangements, it is expected that Henry R. Silverman will continue to serve as Chairman and CEO until the expiration of his current employment agreement on December 31, 2007, at which time it is expected that he will be succeeded as CEO by Richard A. Smith, the company's current vice chairman and president. Mr. Silverman and the Company have agreed that he will not be an equity participant with Apollo in the acquisition, and will receive the same per share consideration for his shares and in-the-money options as other stockholders and optionholders under the merger agreement. As with all other optionholders, all of Mr. Silverman's out-of-the- money options will be cancelled. No discussions have been held with other members of senior management regarding management participation in the transaction, but it is anticipated that the senior management team will remain with the Company following the transaction's closing. There is no financing condition to the obligations of Apollo to consummate the transaction, and Apollo has already secured commitments from JPMorgan, Credit Suisse and Bear Stearns to provide the debt financing for this cash transaction. In addition, Apollo has committed to provide US$2.0 billion of equity to complete the transaction. Headquartered in Parsippany, N.J., Realogy Corporation (NYSE: H)-- http://www.realogy.com/-- is real estate franchisor and a member of the S&P 500. The company has a diversified business model that also includes real estate brokerage, relocation, and title services. Realogy's world-renowned brands and business units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R), Sotheby's International Realty(R), NRT Incorporated, Cartus, and Title Resource Group. Realogy has more than 15,000 employees worldwide. The company operates in Australia, Brazil and France. REALOGY CORP: Moody's Pares Rating on US$1.2-Bil. Notes to Ba3 -------------------------------------------------------------- Moody's Investors Service downgraded the US$1.2 billion of existing unsecured senior fixed and floating rate notes of Realogy Corporation to Ba3 from Baa2. The company recently announced the approval by its shareholders of the leveraged buyout by Apollo Management, L.P. The US$1.2 billion of existing unsecured notes are expected to become secured upon the closing of the buyout transaction in accordance with the terms of the indenture. This concludes a review for possible downgrade initiated on Dec. 19, 2006. The leveraged buyout is expected to be financed with: -- US$1.95 billion term loan facility, -- US$2.25 billion of senior unsecured notes, -- US$900 million of senior subordinated notes, -- approximately US$200 million of borrowings under a US$750 million revolving credit facility, -- approximately US$300 million of cash on hand and contributed equity of US$2 billion. In connection with the closing of the transaction, Realogy will also enter into a US$1.22-billion delayed draw term loan facility, which may be used to purchase existing fixed and floating rate senior notes put to the company in connection with the change of control offer or, if not put, to fund the redemption of the US$250 million of existing floating rate notes once their par call period commences on Oct. 22, 2007. The indenture governing the existing senior notes provides that upon a change of control, Realogy will be required to offer to purchase the notes at 100% of their principal amount, plus accrued and unpaid interest, if the ratings on the notes are lowered to non-investment grade by each rating agency during a period beginning with a notice of an upcoming change in control and extending 60 days past the actual change in control. Upon closing of the buyout, the existing senior notes of Realogy will become secured in accordance with the terms of the indenture and will rank pari passu with the new secured bank facilities of the company. The Ba3 rating reflects the expected priority position of the notes in the post-acquisition capital structure (along with the secured credit facility) and the significant amount of junior ranking debt and non-debt obligations. Moody's also converted the provisional B3 corporate family, Ba3 senior secured credit facility, Caa1 senior note and Caa2 subordinated debt ratings of Realogy into definitive ratings. Moody's notes that the size of Realogy's proposed synthetic letter of credit facility has been reduced to US$525 million from US$850 million. The B3 Corporate Family Rating reflects weak pro forma financial strength and profitability metrics, Moody's expectation of continued softness in the residential real estate market in the intermediate term and minimal business line diversification. The ratings are supported by leading market positions, strong brands and long-term growth fundamentals for the real estate industry. Moody's took these rating actions with respect to Realogy (Old): -- downgraded US$250 million floating rate senior unsecured notes due 2009 to Ba3 (LGD 2-23%) from Baa2; -- downgraded US$450 million senior unsecured notes due 2011 to Ba3 (LGD 2-23%) from Baa2; -- downgraded US$500 million senior unsecured notes due 2016 to Ba3 (LGD 2-23%) from Baa2; -- withdrew the Baa2 senior unsecured issuer rating; -- prospectively withdrew the Baa2 rating on the US$1.05-billion senior unsecured revolving credit facility due 2011; and -- prospectively withdrew the Baa2 rating on the US$600-million senior unsecured term loan facility due 2011. The stable ratings outlook anticipates continued weakness in the residential real estate market in 2007, with an approximately 7% to 8% decline in home sale volume and flat to modestly declining pricing trends. Although Moody's expects a modest recovery in 2008, credit metrics are expected to remain weak for the rating category over the intermediate term. Headquartered in Parsippany, N.J., Realogy Corporation (NYSE: H)-- http://www.realogy.com/-- is real estate franchisor and a member of the S&P 500. The company has a diversified business model that also includes real estate brokerage, relocation, and title services. Realogy's world-renowned brands and business units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R), Sotheby's International Realty(R), NRT Incorporated, Cartus, and Title Resource Group. Realogy has more than 15,000 employees worldwide. The company operates in Australia, Brazil and France. REALOGY CORP: S&P Lowers Corporate Credit Rating to B+ from BB+ --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Realogy Corp. to 'B+' from 'BB+' and removed it from CreditWatch. The Dec. 18, 2006, CreditWatch placement followed the company's announcement that it had entered into a definitive agreement to be acquired by Apollo Management L.P. in a transaction valued at about US$9 billion. The outlook is negative. Pro forma consolidated debt outstanding, including liabilities under management programs and adjusted for operating leases, approximates about US$8 billion. "This rating action followed the recent approval by Realogy shareholders of its pending LBO by Apollo Management," said Standard & Poor's credit analyst Michael Scerbo. Following the affirmative vote, the company expects to complete the transaction next week. Despite Realogy's leadership position in the residential real estate industry, its 2007 pro forma debt to EBITDA ratio is expected to be very high for the ratings at around 10x (adjusted for operating leases and liabilities under management programs). "While our ratings incorporate a mid-to-high single-digit decline in overall sides and a relatively minor decline in prices in 2007, operating weakness in excess of these levels could result in a ratings downgrade as the company's overall liquidity position would become more constrained," Mr. Scerbo said. "Specifically, if sides were to decline in excess of 10% and prices in excess of 5%, there would be a higher likelihood of a downgrade. Conversely, an outlook revision to stable, which we view as less likely in the intermediate term, would require the company to demonstrate consistent, sustainable improvement in its credit protection measures." Headquartered in Parsippany, N.J., Realogy Corp. (NYSE:H) -- http://www.realogy.com/-- is real estate franchisor and a member of the S&P 500. The company has a diversified business model that also includes real estate brokerage, relocation, and title services. Realogy's world-renowned brands and business units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R), Sotheby's International Realty(R), NRT Incorporated, Cartus, and Title Resource Group. Realogy has more than 15,000 employees worldwide. The company has operations in Australia, Brazil and France. TELE NORTE: Gov't Authorizes Oi's Merger with Brasil Telecom ------------------------------------------------------------ The Brazilian government has ratified a merger between fixed line telecoms operator Oi fka Tele Norte Leste Participacoes and Brasil Telecom Participacoes, local magazine Veja reports. According to Veja, the government will pass a legislation allowing the deal. However, an Oi spokesperson denied to Business News Americas that it was negotiating a merger with Brasil Telecom. The spokesperson did say that in the face of strong competition from global operators, Oi sees a merger with one of the other national operators to form a "national platform" as one of its options. "We think that a national champion such as a merger between Telemar and Brasil Telecom is good for the country, but this would need a presidential decree," Oi Chief Financial Officer Jose Luis Magalhaes Salazar told BNamericas. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. 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. 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. =========================== C A Y M A N I S L A N D S =========================== CARIBBEAN ISLANDS: Sets Final Shareholders Meeting for May 3 ------------------------------------------------------------ Caribbean Islands Investment Co. Ltd. will hold its final shareholders meeting on May 3, 2007, at 4:00 p.m., at: Miller Simons O'Sullivan Beatrice Butterfield Building, Butterfield Square P.O. Box 260 Providenciales, Turks and Caicos Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorize the liquidator 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: Adrian G. Corr Attention: Campbell Corporate Services Limited c/o P.O. Box 268 George Town 4th Floor, Scotia Centre Grand Cayman, Cayman Islands Tel: 345 949 2648 Fax: 345 949 8613 DENALI MAG: Will Hold Final Shareholders Meeting on May 4 --------------------------------------------------------- Denali Mag Fund Ltd. will hold its final shareholders meeting on May 4, 2007, at 9:30 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, and 2) authorizing 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 Ltd., Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands DEPFA PERFORMANCE: Sets Final Shareholders Meeting for May 4 ------------------------------------------------------------ Depfa Performance Converging Markets Ltd. will hold its final shareholders meeting on May 4, 2007, at 9:30 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, and 2) authorizing 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 Ltd., Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands ENDEAVOUR GLOBAL: Will Hold Last Shareholders Meeting on May 3 -------------------------------------------------------------- Endeavour Global Opportunities Fund, Ltd., will hold its final shareholders meeting on May 3, 2007, at 10:00 a.m., at: Strathvale House 90 North Church Street Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorize the liquidator 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: Geoffrey Varga Attention: Bernadette Bailey-Lewis Kinetic Partners Cayman LLP P.O. Box 10387 Grand Cayman KY1-1004 Cayman Islands Telephone: (345) 623 9900 Fax: (345) 623 0007 ETON PARK: Will Hold Final Shareholders Meeting on May 4 -------------------------------------------------------- Eton Park Overseas Fund II, Ltd. will hold its final shareholders meeting on May 4, 2007, at 11:30 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, and 2) authorizing 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 Ltd., Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands GLOBAL OPPORTUNITIES: Sets Final Shareholders Meeting for May 4 --------------------------------------------------------------- Global Opportunities Trading Ltd. will hold its final shareholders meeting on May 4, 2007, at 2:30 p.m., at: Deloitte Touche Tohmatsu 35th Floor, 88 Queensway Hong Kong 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, and 2) authorizing 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: Darach Haughey Derek Lai Attention: Mr. Glen Ho Deloitte Touche Tohmatsu 35th Floor, One Pacific Place 88 Queensway, Hong Kong Telephone: (852) 2852 1643 Fax: (852) 2850 8362 HMTF CV: Will Hold Final Shareholders Meeting on May 3 ------------------------------------------------------ HMTF CV Co-Investment Management Ltd. will hold its final shareholders meeting on May 3, 2007, at 9:00 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 and a report of the liquidator giving an explanation; and 2) considering and, if thought fit, passing a resolution pursuant to section 158(1)(b) of the April 2, 2007, 363 Issue No. 7/2007 Companies Law authorizing the liquidator to retain the books, accounts, papers and documents 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: HM Capital Partners LLC P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 949 3344 Fax: (345) 949 2888 KOWLOON LTD: Sets Final Shareholders Meeting for May 4 ------------------------------------------------------ Kowloon, Ltd., will hold its final shareholders meeting on May 4, 2007, at 10:00 a.m., at: Kroll (Cayman) Limited 4th Floor, Bermuda House Dr. Roy's Drive, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) requesting the members' approval of the liquidation fees incurred to date, approval of the liquidator's estimated costs to completion. 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: Gordon I. Macrae Attention: Korie Drummond Kroll (Cayman) Limited 4th Floor, Bermuda House Dr. Roy's Drive, Grand Cayman Cayman Islands Telephone: (345) 946-0081 Fax: (345) 946-0082 PACIFIC FALCON: Proofs of Claim Must be Filed by May 4 ------------------------------------------------------ Pacific Falcon's creditors are given until May 4, 2007, to prove their claims to Richard L. Finlay, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Pacific Falcon's shareholders agreed on March 2, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay Attention: Krysten Lumsden P.O. Box 2681 George Town, Grand Cayman Telephone: (345) 945 3901 Fax: (345) 945 3902 SEAGATE TECHNOLOGY: Gives Update on Third Quarter Fin'l Results --------------------------------------------------------------- Seagate Technology provided an update on its expected results for the fiscal third quarter ended March 30, 2007. Revenue for the fiscal third quarter is now expected to be approximately US$2.8 billion, compared to prior guidance of US$2.9 to 3.0 billion, and GAAP and non-GAAP gross margins did not achieve the company's expectations. Primary factors impacting revenue and profitability, which became evident toward the end of March, were a lower than expected industry demand for 3.5-inch ATA disc drives and a more aggressive than planned pricing environment for high capacity 3.5-inch ATA disc drives. The company believes that its market share, both in total and within each market currently served, is virtually unchanged from the previous quarter. Further, Seagate's inventories on-hand in the distribution channel are under five weeks. Overall, the company's results continue to be healthy and are reflective of its leadership position in an industry where consumers and applications are using, creating and sharing digital content at an accelerating pace. Fiscal Third Quarter Financial Results Seagate Technology will report its fiscal third quarter 2007 financial results on April 17, 2007, after the close of the market. A subsequent conference call for the investment community will take place at 2:30 p.m. Pacific Time. Headquartered in Scotts Valley, California, and registered in Cayman Islands, Seagate Technology (NYSE: STX) -- http://www.seagate.com/-- designs, manufactures and markets hard disc drives, and provides products for a wide-range of Enterprise, Desktop, Mobile Computing, and Consumer Electronics applications. * * * Moody's Investors Service has confirmed on July 17, 2006, the ratings of Seagate Technology HDD Holdings and upgraded the ratings of Maxtor Corp., now a wholly owned subsidiary of Seagate Technology US Holdings, following the completion of its acquisition on May 19, 2006, and subsequent guaranteeing of Maxtor's debt by Seagate. This concludes the review initiated by Moody's on Dec. 21, 2005. The review was prompted by the company's announcement of its intention to acquire Maxtor in an all-stock transaction for approximately US$1.9 billion. The ratings outlook is stable. Moody's confirmed these ratings: -- Corporate Family Rating: Ba1; and -- SGL Rating of 1. Moody's upgraded these ratings: Seagate Technology HDD Holdings: -- US$400 million senior notes 8%, due 2009: to Ba1 SEAHAWK YACHT: Sets Final Shareholders Meeting for May 3 -------------------------------------------------------- Seahawk Yacht Sales, Ltd., will hold its final shareholders meeting on May 3, 2007, at 10:00 a.m., at: 6805 Morrison Blvd. Suite 370 Charlotte, NC 28211 USA These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted; and 2) presentation of the acts and dealings that the liquidator conducted and ratifying and confirming them. 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: James E. Mattei 6805 Morrison Blvd. Suite 370 Charlotte, NC 28211 USA Tel: 1 704 971 6060 Fax: 1 704 971 6071 SF PROPERTIES: Proofs of Claim Filing Deadline Is May 3 ------------------------------------------------------- S.F. Properties Holdings Inc.'s creditors are given until May 3, 2007, to prove their claims to Guy Major and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. S.F. Properties' shareholders agreed on March 13, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Guy Major Emile Small Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands STEEPLE CAPITAL: Sets Last Shareholders Meeting for May 4 --------------------------------------------------------- The Steeple Capital Offshore Fund III Ltd. will hold its final shareholders meeting on May 4, 2007, at 9:00 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 Ltd., Walker House 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands TORUS (IG): Will Hold Final Shareholders Meeting on May 3 --------------------------------------------------------- Torus (IG) II-C, Ltd., will hold its final shareholders meeting on May 3, 2007, at: Queensgate House, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) presentation of an account on the winding up of the company, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Emile Small Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands ========= C H I L E ========= CONSTELLATION BRANDS: Peter Soderberg to Join Board of Directors ---------------------------------------------------------------- Constellation Brands Inc.'s board of directors authorized an increase in board positions from seven to eight, and approved Peter H. Soderberg, 60, to fill the new board seat effective April 4, 2007. Mr. Soderberg is currently president and chief executive officer of Batesville, Indiana-based Hillenbrand Industries Inc., a public holding company for two major operating businesses serving the healthcare and funeral services industries. "With tremendous manufacturing, marketing and operational experience in the consumer products, business-to-business and service industry sectors, Peter will be a valued addition to the Constellation Brands board and we look forward to the contributions he will make and the guidance he will provide," said Richard Sands, Constellation Brands chairman and chief executive officer. "It has been our desire to increase the number of directors as the company grows, and we believe the time is right to add another voice to our strategic business analysis and decision making capabilities." Prior to joining Hillenbrand in 2006, Mr. Soderberg was with privately held Welch Allyn Inc. from 1993 to 2006, rising to president and chief executive officer of the New York-based medical equipment manufacturer in 2000. Mr. Soderberg spent 23 years at Johnson & Johnson in various management positions, mostly in consumer products, and he also founded a venture capital business, Princeton Entrepreneurial Resources. He earned a bachelor's degree in engineering from Yale University. Mr. Soderberg is currently on the boards of the Advanced Medical Technology Association, the Syracuse Symphony Orchestra, Greatbatch, Inc., as well as Hillenbrand. Based in Fairport, New York, Constellation Brands, Inc. (NYSE:STZ, ASX:CBR) -- http://www.cbrands.com/-- produces and markets beverage alcohol brands with a broad portfolio across the wine, spirits and imported beer categories. Well-known brands in Constellation's portfolio include: Almaden, Arbor Mist, Vendange, Woodbridge by Robert Mondavi, Hardys, Nobilo, Kim Crawford, Alice White, Ruffino, Kumala, Robert Mondavi Private Selection, Rex Goliath, Toasted Head, Blackstone, Ravenswood, Estancia, Franciscan Oakville Estate, Inniskillin, Jackson-Triggs, Simi, Robert Mondavi Winery, Stowells, Blackthorn, Black Velvet, Mr. Boston, Fleischmann's, Paul Masson Grande Amber Brandy, Chi-Chi's, 99 Schnapps, Ridgemont Reserve 1792, Effen Vodka, Corona Extra, Corona Light, Pacifico, Modelo Especial, Negra Modelo, St. Pauli Girl, Tsingtao. One of Constellation Brands wine and grape processing facilities is located in Casablanca, Chile. The company also has operations in Australia, Japan, and New Zealand. * * * As reported in the Troubled Company Reporter on March 5, Moody's lowered the company's corporate family rating and probability of default rating to Ba3 from Ba2 after the company reported a new US$500 million share repurchase program. Moody's revised its outlook to stable from negative. Standard & Poor's Ratings Services lowered its ratings on Constellation Brands, including its corporate credit and bank loan ratings to 'BB-' from 'BB', with a stable outlook. Fitch Ratings has downgraded Constellation Brands' issuer default rating, bank credit facility, and senior unsecured notes to 'BB-' from 'BB'. ROYAL & SUN: MBIA Inc. Settles Lawsuit with Royal Indemnity Co. --------------------------------------------------------------- MBIA Inc., the world's largest bond insurer, has settled a lawsuit with Royal Indemnity Co., a unit of Royal & Sun Alliance Insurance Group plc, Reuters reports. The settlement with the unit will be used to repay outstanding bonds worth about $362 million insured by MBIA. Royal had insured the vocational loans used to collateralize the bonds, Reuters discloses. According to the report, MBIA expects to post about $20 million in losses in the first quarter as an upshot of the litigation's settlement. About MBIA Inc. New York-based MBIA Inc. -- http://www.mbia.com/-- through its subsidiaries, is a financial guarantor and provider of specialized financial services. About Royal & Sun Alliance 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. =============== C O L O M B I A =============== BBVA COLOMBIA: To Issue COP800B Bonds for Working Capital Needs --------------------------------------------------------------- BBVA Colombia said in a press release that it will issue bonds for up to COP800 billion in 2007 to finance working capital needs. Business News Americas relates that BBVA Colombia's shareholders ratified the bank's board to securitize loan portfolios for up to COP600 billion. BBVA Colombia told BNamericas that the board will decide on the type of bonds to issue, the deadlines and the amounts. Shareholders authorized the distribution of a COP123-billion dividend as well as allotting 0.7% of 2006's profits to finance BBVA Colombia's corporate social responsibility program, BNamericas states. Headquartered in Bogota, Colombia, BBVA Colombia -- http://www.bbva.com.co/-- is engaged in the holding and accomplishment of all operations, acts and contracts of banking establishments. It is 95.16% owned by Banco Bilbao Vizcaya Argentaria. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 22, 2006, Fitch upgraded the foreign currency Issuer Default Rating of BBVA Colombia. These rating actions followed the Country Ceiling upgrades for various countries, including Colombia to 'BB+' from 'BB'. Fitch took these rating actions: -- foreign currency long-term issuer default rating upgraded to 'BB+' from 'BB' and revised Outlook to Stable from Positive; -- foreign currency short-term rating affirmed at 'B'; -- Local currency long-term IDR affirmed at 'BBB-' with Stable Outlook; -- Local currency short-term rating affirmed at 'F3'; -- Individual 'C/D' remains on Rating Watch Negative; -- Support affirmed at '3'. BRIGHTPOINT INC: Units Buy CellStar's Entire U.S. Operations ------------------------------------------------------------ Brightpoint Inc. disclosed that its wholly-owned subsidiaries, Brightpoint North America L.P. and Brightpoint Latin America, Inc., have completed the acquisition of substantially all of CellStar Corp.'s assets and liabilities related to its U.S. operations and its Miami-based Latin America business. CellStar's operations in Mexico and Chile and other businesses or obligations of CellStar Corporation were not included in the acquisition. "We are excited to complete the acquisition of CellStar's U.S. operations and its Miami-based Latin America business," J. Mark Howell, President, Brightpoint, Inc. and Brightpoint Americas, stated. "This transaction provides a foundation to implement our expansion into Latin America, broadens our product offering, and will improve overall operating efficiencies to help drive long-term value for our stakeholders. Additionally, we welcome the former CellStar employees to the Brightpoint team and look forward to working with them to provide the most complete, efficient, and innovative solutions for suppliers, network operators and retailers throughout North America and Latin America." In accordance with the definitive agreement, the estimated purchase price of US$88 million was reduced to US$62.4 million based upon a preliminary estimate of net asset adjustments. The purchase price is subject to further adjustments as the net asset adjustments and other matters set forth in the definitive agreement are finalized. Brightpoint expects to record goodwill and other intangible assets of approximately US$63.5 million in relation to this transaction. The purchase price was primarily funded through borrowings on Brightpoint, Inc.'s senior secured revolving credit facility led by Banc of America Securities LLC, as lead arranger for a group of 9 major U.S. and international lending institutions. Availability under the Credit Facility was increased today by US$75 million from US$165 million to US$240 million. The other terms of the Credit Facility remained unmodified and amounts borrowed under this Credit Facility are due in February 2012. About CellStar Headquartered at Coppell, Texas, CellStar Corp. (OTC Pink Sheets: CLST) -- http://www.cellstar.com/-- provides logistics and distribution services to the wireless communications industry. CellStar Corp. has operations in North America and Latin America, including Mexico, and distributes handsets, related accessories and other wireless products from manufacturers to a network of wireless service providers, agents, MVNOs, insurance/warranty providers and big box retailers. CellStar Corp. specializes in logistics solutions, repair and refurbishment services, and in some of its markets, provides activation services. About Brightpoint Headquartered in Plainfield, Indiana, Brightpoint, Inc. -- http://www.brightpoint.com/-- engages in the distribution of wireless devices and accessories, as well as provision of customized logistic services to the wireless industry. The company primarily operates in Australia, Colombia, Finland, Germany, India, New Zealand, Norway, the Philippines, the Slovak Republic, Sweden, United Arab Emirates and the United States. The company's customers include mobile operators, mobile virtual network operators, resellers, retailers and wireless equipment manufacturers. Brightpoint was incorporated in 1989 under the name Wholesale Cellular USA, Inc. and changed its name to Brightpoint Inc. in 1995. * * * On April 12, 2006, Standard & Poor's placed Brightpoint's long- term local and foreign issuer credit ratings at BB- with a stable outlook. TOWER RECORDS: Sony, et al. Assert Lien on US$31MM Sale Proceeds ---------------------------------------------------------------- Five music companies sued MTS Inc. dba Tower Records contending that they have a lien on some or all of the US$31.8 million remaining from the sale of Tower's assets in October, Bill Rochelle of Bloomberg News reports. According to Bloomberg, the companies suing Tower are: Sony BMG, Twentieth Century Fox Home Entertainment LLC, Universal Music Group Distribution Corp., Warner Home Video, and Warner/Elektra/Atlantic Corp. The complaint, which was lodged after Tower and its debtor- affiliates filed with the U.S. Bankruptcy Court for the District of Delaware a disclosure statement describing their Chapter 11 Plan, dispute Tower's claim in the Disclosure Statement that the music companies waived their lien on money from the sale, the report says. Liquidation Plan Tower and its debtor-affiliates' Chapter 11 Plan of Liquidation, according to Mr. Rochelle, said that 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 said. The Court is set to consider the adequacy of the disclosure statement on May 3. Asset Sale The Debtors auctioned their intellectual property assets last 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 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. Moody's Investors Service gave the company's issuer rating and long-term corporate family rating a Ca, and its senior subordinated rating a C. * COLOMBIA: Will Auction Central de Inversiones' Loan Portfolio --------------------------------------------------------------- Dow Jones Newswires reports that Colombia's government will auction state financial firm Central de Inversiones SA's COP2.7 trillion non-performing loan portfolio in the first week of June. Central de Inversiones President Lia Heenan told Dow Jones that the portfolio is made up of non-performing loans transferred from former state banks and lenders that went bankrupt or were sold after the 1999 financial sector crisis. According to Dow Jones, the Central de Inversiones' portfolio is made up of: -- COP2.3 trillion non-performing bank loans, and -- COP400 billion bad mortgages. Ms. Heenan commented to Dow Jones, "We've been preparing this project to generate a market for these kind of loans. We think it is a mistake for the government to manage this portfolio." The minimum price for the portfolio will be disclosed during the auction, Dow Jones notes, citing Ms. Heenan. Local and foreign banks will be able to bid. Potential bidders include: -- Citigroup Inc., -- JPMorgan Chase & Co, -- Bancolombia SA, -- Banco Davivienda SA, -- Banco Colpatria Red Multibanca SA, and -- Corporacion Financiera Colombiana SA. * * * 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. =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Radhames Segura to Represent Gov't in Suit ---------------------------------------------------------------- Dominican Today reports that the Dominican Republic's President Leonel Fernandez has appointed Dominican State Owned Electricity Companies Corporation Vice President Radhames Segura to represent the Dominican government in the lawsuit filed by foreign firms Trust Capital of the West, AES Corporation and Societe Generales. According to Dominican Today, Mr. Segura was awarded special powers to defend the government in the lawsuit. As reported in the Troubled Company Reporter-Latin America on March 21, 2007, the international companies sued: -- Dominican President Leonel Fernandez; -- Cesar Pina Toribio, the president's legal advisor; -- Electricity Superintendent Francisco Mendez; -- Foreign Trade Director Vilma Arbaje; -- National Energy Commission President Aristides Fernandez Zucco; -- Dominican ambassador in Washington Flavio Dario Espinal; and -- Dominican ambassador in Paris Guillermo Pina Contreras. The complainants sought between US$535 million and US$680 million in damages due to a loss of cash flow or from a reduction of capital. Mr. Segura could hire any lawyers suitable to take on the government's defense case and to conduct all types of judicial and extrajudicial action, President Fernandez told Dominican Today. The electrical sector reportedly hired US lawyer Roger W. Thomas, Dominican Today states. Mr. Thomas can be reached at: Cleary Gottlieb Steen & Hamilton LLP One Liberty Plaza New York, NY 10006 USA Phone: +1 212 225 2180 Fax: 1 212 225 3999 E-mail: rthomas@cgsh.com ================= G U A T E M A L A ================= BRITISH AIRWAYS: AUC Report Shows Worst Baggage Handlers in 2006 ---------------------------------------------------------------- British Airways plc had the worst baggage handling performance in 2006 among the 24 carriers who are members of the Association of European Airlines, an Air Transport Users Council report reveals. According to the report, BA mishandled 23 bags per 1000 passengers last year. BA Director of Operations Geoff Want told AUC that "the volumes of hold baggage going through Heathrow, the change in security procedures and some baggage system failures within Terminal 4 has not helped our performance, but we accept that overall the levels of service we offered to our customers has not been up to an acceptable standard. We fully apologize to customers who have been affected by delayed baggage in the past year." "We have undertaken a significant amount of work to improve our performance in the current working environment and we therefore look forward to an improved operational performance this summer, and in the future when Terminal 5 opens," Mr. Want continued. About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. BA has offices in India and Guatemala. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its Ba1 Corporate Family Rating for British Airways Plc. * Issuer: British Airways, Plc Projected Old POD New POD LGD Loss-iven Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- GBP100-million 10.875% Sr. Unsec. Regular Bond/Debenture Due 2008 Ba2 Ba2 LGD5 84% GBP250-million 7.25% Sr. Unsec. Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD5 84% As reported on March 27, 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. BRITISH AIRWAYS: Traffic Figures Up by 2.3% in March 2007 --------------------------------------------------------- British Airways plc reported traffic and capacity statistics for March 2007. In March 2007, passenger capacity, measured in Available Seat Kilometres, was 2.3% above March 2006. Traffic, measured in Revenue-Passenger-Kilometers, was higher by 3.3%. This resulted in a passenger load factor up 0.7 points versus last year, to 76.3%. The increase in traffic comprised a 3.6% increase in premium traffic and a 3.2% increase in non-premium traffic. Cargo, measured in Cargo-Ton-Kilometers, decreased by 16.3%. Market Conditions Underlying market conditions are broadly unchanged. Strategic Developments In the light of Iberia's announcement that it had received a bid approach, British Airways appointed UBS to advise on how to use British Airways' 10% holding in Iberia in the best interests of British Airways shareholders. The advice will examine all options, including a disposal of British Airways' holding. British Airways called on the U.K. Government to stand by its right of automatic termination of traffic rights granted in the new aviation pact between the EU and US if America stalls on negotiating further liberalization. The airline expanded its operations at London City Airport by more than 70% with the launch of its new subsidiary, BA CityFlyer, which operates 250 flights a week to six UK and European destinations. New direct routes include Glasgow and Zurich. British Airways completed the sale of the regional operation of its subsidiary airline BA Connect to Flybe. British Airways entered into exclusive talks to transfer its ground handling operation at Aberdeen, Edinburgh, Glasgow and Manchester airports to Aviance UK, an independent ground handling company. The summer schedule includes four new routes from London Gatwick this summer including Port of Spain in Trinidad and Tobago, Dresden in Germany, Sarajevo in Bosnia and Herzegovina and Newquay. The company announced three-year contracts with global distribution systems Galileo, Sabre Travel Network and Worldspan. At its annual Investor Day British Airways released market guidance for the financial year 2007/8. Revenue is forecast to increase by 5% to 6% based on capacity measured in available seat kilometers (ASKs) up 1.3%, traffic measured in revenue passenger kilometers (RPKs) up 2.4% and yield measured in pence per RPK up 3.4%. Fuel is forecast to be up by some GBP100 million for 2007/8. Total costs, excluding fuel are forecast to be up GBP50 million. This will leave the company on track to achieve a 10% operating margin in the year to March 2008. About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Limited and British Airways Travel Shops Limited. BA has offices in India and Guatemala. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its Ba1 Corporate Family Rating for British Airways Plc. * Issuer: British Airways, Plc Projected Old POD New POD LGD Loss-iven Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- GBP100-million 10.875% Sr. Unsec. Regular Bond/Debenture Due 2008 Ba2 Ba2 LGD5 84% GBP250-million 7.25% Sr. Unsec. Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD5 84% As reported on March 27, 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. =========== M E X I C O =========== AXTEL SAB: Launches Operations in Cuernavaca -------------------------------------------- Axtel, S.A.B. de C.V. (BMV: AXTELCPO; OTC: AXTLY) has launched operations in Cuernavaca, Morelos. Roberto Reynoso Corbala, Southern Region Director of AXTEL, made the inaugural speech, followed by the initial AXTEL call made by Rafael Tamayo, Secretary of Economic Development for the state of Morelos. The direct investment by AXTEL in Cuernavaca, Jiutepec and Temixco will be approximately US$25 million dollars over the next five years. AXTEL's initial network deployment in Cuernavaca covers 90% of the population already, with telephone, Internet, and advance data services for users in the residential and business sectors. "By commencing operations in Cuernavaca, we demonstrate AXTEL's capabilities to deliver greater-quality telecommunications services while further penetrating new markets. We promise to work hard to provide modern technology and top-notch customer service to clients in Cuernavaca to quickly gain the confidence of the community," stated Mr. Reynoso Corbala. AXTEL reported 792,000 lines in service at the close of 2006, and will invest US$210 million dollars nationwide in 2007. Headquartered in Monterrey, Mexico, AXTEL is a Mexican telecommunications company that provides local and long distance telephony, broadband Internet, data and built-to-suit communications solutions in 17 cities and long distance telephone services to business and residential customers in over 200 cities. The seventeen cities in which AXTEL currently provides local services are Mexico City, Monterrey, Guadalajara, Puebla, Leon, Toluca, Queretaro, San Luis Potosi, Aguascalientes, Saltillo, Ciudad Juarez, Tijuana, Torreon (Laguna region), Veracruz, Chihuahua, Celaya and Irapuato. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 25, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to Axtel SAB de CV's US$250 million Senior Unsecured Notes due January 2017. It also affirmed its 'BB-' long-term corporate credit rating on Axtel. S&P said the outlook is negative. As reported in the Troubled Company Reporter-Latin America on Jan. 23, 2007, Moody's Investors Service has confirmed Axtel, S.A.B. de C.V.'s Ba3 corporate family rating and changed the rating outlook to stable. FOAMEX INT'L: Will Spend US$3 Million To Upgrade Tupelo Plants -------------------------------------------------------------- Foamex International Inc. will invest US$3 million in capital improvements at its Tupelo, Mississippi operations, and will also consolidate its fabrication and pourline facilities, which are located approximately 1 mile apart. The capital improvements will include installation of state-of-the-art automated fabrication equipment and will secure the expanded facility's key role in Foamex International's future growth plans. The consolidation is part of the company's strategy to increase capabilities and efficiencies as it continues to distinguish itself as a technological leader and market-focused provider of polyurethane foam-based solutions and specialty comfort products. Raymond E. Mabus, chairman and chief executive officer of Foamex International, said, "We are pleased to announce that we will be investing more than US$3 million to upgrade our Tupelo operations to make them safer and more versatile, environmentally-friendly and cost-efficient. This capital infusion represents the largest manufacturing investment Foamex International has made in the State of Mississippi since 1994, and should be seen as a clear sign of our commitment to the Furniture and Bedding markets. Our Tupelo operations will continue to play a key role in Foamex International's plans to grow through innovation and efficiency." "Our investments in Tupelo have already begun to bear fruit, as evidenced by the recent launch of Reflex(R) Natural(TM), the newest addition to Foamex International's Reflex product line, which provides the furniture industry a superior alternative to traditional polyurethane, fibers and synthetic fiberfills. Reflex Natural is a high-performance, environmentally-friendly flexible polyurethane foam, and our talented employees in Tupelo played a key role in the conception, design, and production of this exciting and unique product." Foamex International expects the upgrades will allow Tupelo to continue serving as an incubator for new technologies in the comfort cushioning area. In addition to Reflex Natural, the Tupelo facilities have played a key role in recently launched bedding products such as Aerus(TM), Energia(TM) and Venus(TM). Transition plans are in place to provide uninterrupted service to existing customers. The company expects this transition will occur during the second half of 2007. Headquartered in Linwood, Pennsylvania, Foamex International Inc. manufactures and distributes flexible polyurethane and advanced polymer foam products. As of Jan. 1, 2006, the company's operations were conducted through its wholly owned subsidiary, Foamex L.P., and through Foamex Canada Inc., Foamex Latin America, Inc. and Foamex Asia, Inc., which are wholly owned subsidiaries of Foamex L.P. The company has five business segments: Foam Products, Carpet Cushion Products, Automotive Products, Technical Products and Other Products. On Sept. 19, 2005, the company and certain of its domestic subsidiaries, including Foamex L.P., the company's primary operating subsidiary, filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Latin American subsidiary is in Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 16, 2007, Standard & Poor's Ratings Services raised its corporate credit rating on Linwood, Penn.-based Foamex L.P. to 'B' from 'D', following the company's emergence from bankruptcy on Feb. 12, 2007. S&P affirmed all other ratings. The outlook is stable. As reported in the Troubled Company Reporter on Dec. 8, 2006, Moody's Investors Service has assigned a B2 corporate family and probability of default ratings on Foamex L.P. Concurrently, Moody's has assigned a B1 rating to the company's US$425 million first lien senior secured Term Loan B and a Caa1 rating to its US$190 million second lien senior secured term loan (expected to be downsized to US$175 million). Moody's said the ratings outlook is stable. INT'L RECTIFIER: Material Weaknesses Found in Financial Reports --------------------------------------------------------------- International Rectifier Corporation's Audit Committee of its Board of Directors has determined, based on an interim report of an investigation conducted at its request, by independent investigators hired by outside legal counsel, that the company's financial statements for the quarters ended Dec. 31, 2006, Sept. 30, 2006, March 31, 2006, Dec. 31, 2005 and Sept. 30, 2005, and for the year ended June 30, 2006, included in the company's Quarterly Reports on Form 10-Q and the Annual Report on Form 10-K for such periods, should no longer be relied upon. It has not yet been determined whether and to what extent financial statements for earlier periods may have been affected by the matters discovered in the investigation. Based on the interim results of this investigation, the Audit Committee has determined that material weaknesses in the internal control over financial reporting exist at a foreign subsidiary, and consequently the Audit Committee has determined that management's report on internal control over financial reporting as of June 30, 2006, included in the company's Annual Report on Form 10-K for the year then ended, should no longer be relied upon. The ongoing investigation has discovered some accounting irregularities at a foreign subsidiary. These accounting irregularities include, among other things, premature revenue recognition of product sales. The investigation is continuing and additional information will be sought to enable the Audit Committee to determine the extent by which accounts receivable, revenues and possibly other entries in the financial statements may have been misstated in any given accounting period, including possibly periods preceding the year ended June 30, 2006. The Audit Committee is working with management to determine the extent to which accounting errors exist and require any restatement of the financial statements for prior periods. As of the date hereof, the company is unable to provide a reasonable estimate of the impact of the accounting errors on its financial statements and is unable to predict the likelihood, amount or the timing of any possible restatement. At this time, the company anticipates that it will be unable to file within the required time period, its Quarterly Report on Form 10-Q for the period ending March 31, 2007, until the investigation is completed, identified errors quantified, and previously issued financial statements revised as may be necessary. The company's analyst day planned for May 11, 2007 has been postponed. About International Rectifier Headquartered in El Segundo, Calif., International Rectifier Corporation (NYSE:IRF) -- http://www.irf.com/-- provides enabling technologies for products that work smarter, run cooler, and raise the world's productivity-per-watt. It has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on March 14, 2007, Fitch Ratings has upgraded International Rectifier Corp.'s (NYSE: IRF) ratings as: -- Issuer Default Rating to 'BB' from 'BB-'; -- Senior Secured Bank Credit Facility Rating 'BB+' from 'BB'; -- Subordinated Debt Rating to 'BB-' from 'B+'. Fitch said the rating outlook is positive. INT'L RECTIFIER: S&P Watches Ratings on Likely Material Weakness ---------------------------------------------------------------- Standard & Poor's Rating Services has placed its 'BB' corporate credit and other ratings for International Rectifier Corp. on CreditWatch with negative implications. "The action follows International Rectifier's report that the audit committee of its board of directors has determined that the company's financial statements for the fiscal year ended June 30 2006, and quarters from September 2005 through December 2006, and possibly for earlier periods, should no longer be relied upon because of material weaknesses in the internal control over financial reporting at a foreign subsidiary," said Standard & Poor's credit analyst Bruce Hyman. International Rectifier is unable to provide a reasonable estimate of the impact of the accounting errors on its financial statements and is unable to predict the likelihood, amount, or the timing of any possible restatement. The company does not expect to timely file its March 2007 10-Q. International Rectifier's substantial liquidity (cash and financial assets totaled US$1.4 billion at Dec. 31, 2006, compared with US$550 million rated debt) should cushion the downside risk to the rating. Standard & Poor's will monitor events to assess what impact, if any, these developments may have on the ratings for International Rectifier. Headquartered in El Segundo, Calif., International Rectifier -- http://www.irf.com/-- provides enabling technologies for products that work smarter, run cooler, and raise the world's productivity-per-watt. It has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. JOAN FABRICS: Files for Bankruptcy in Delaware ---------------------------------------------- Joan Fabrics Corporation and its wholly owned subsidiary Madison Avenue Design, filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code with the U.S. Bankruptcy COurt for the District of Delaware. The company intends to utilize the Chapter 11 process to reorganize its business and financial operations. During this process Joan Fabrics and Madison Avenue Designs will be fully operational serving their more than 700 clients in the residential, hospitality and contract sectors in the Canadian, Mexican and US markets. Carl Marks Advisory Group, a business advisory and interim management firm, has taken over day-to-day operations. Former president and CEO Elkin McCallum stepped down last week, but remains on the Board. "Joan Fabrics has many positive advantages as a business," Richard Heller, chief operating officer, said. "They ran into some recent challenges due to the downturn in the US textile industry caused by, among other factors, increased foreign competition. However, their quality products, strong customer base and excellent design team provide a solid foundation for the business to be restructured and emerge successfully from Chapter 11." Joan Fabrics' 700 employees are unaffected by this filing. Customers should expect business as usual in terms of products, delivery and service. The companies entered into debtor in possession financing agreements with their lenders, led by Bank of America as its administrative agent and its factor CIT. Joan Fabrics and Madison Avenue designs have received debtor-in-possession financing of more than $10 million dollars. "This will allow the company to meet its cash needs and give the company opportunities to explore strategic options to determine the company's future, Heller noted. "The company is already in contact with a number of firms who have expressed interest in acquiring some or all of our operating units. The company believes that such a sale will provide the most advantageous result for its employees, customers and creditors." About Joan Fabrics Joan Fabrics, founded in 1932, manufactures top quality woven jacquard and velour fabrics. The companies have manufacturing facilities in North Carolina and an affiliate entity in Mexico. Annually, Joan Fabrics introduces over 1500 new open line designs and provides exclusive designs for the distributor trade and "jobbers" who supply product to the interior design trade and other related businesses. In order to maintain its competitive edge, Joan Fabrics collaborates with a major retail furniture chain, offering an in-store collection of mid-to-high end fabrics. JOAN FABRICS: Case Summary & 30 Largest Unsecured Creditors ----------------------------------------------------------- Lead Debtor: Joan Fabrics Corporation 100 Vesper Executive Park Tyngsboro, MA 01879-2710 Tel: (978) 649-5626 Fax: (978) 649-9142 Bankruptcy Case No.: 07-10479 Debtor-affiliate filing separate chapter 11 petitions: Entity Case No. ------ -------- Madison Avenue Designs, L.L.C. 07-10480 Type of Business: The Debtors manufacture automotive and furniture upholstery fabrics. Chapter 11 Petition Date: April 10, 2007 Court: District of Delaware (Delaware) Debtors' Counsel: Curtis A. Hehn, Esq. Laura Davis Jones, Esq. Michael Seidl, Esq. Pachulski, Stang, Ziehl, Young, Jones & Weintraub, L.L.P. 919 North Market Street, 16th Floor Wilmington, DE 19801 Tel: (302) 652-4100 Fax: (302) 652-4400 --- and --- Richard E. Mikels, Esq. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. One Financial Center Boston, MA 02111 Tel: (617) 542-6000 Fax: (617) 542-2241 Estimated Assets: US$1 Million to US$100 Million Estimated Debts: US$1 Million to US$100 Million Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ U.N.F.I. trade $4,831,051 7201 West Friendly Avenue Greensboro, NC 27410 Pension Benefit Guaranty unfunded benefit $3,300,000 Corp. plan Office of the General Counsel 1200 K. Street, N.W. Washington, D.C. 20005 American Fibers and Yarns Co. trade $1,277,880 55 Vilcom Circle, Suite 300 Chapel Hill, NC 27514 Valdese Manufacturing Company trade $813,665 312 Columbo Street Valdese, NC 28690 Staubil Corp. trade $540,493 201 Parkway West Duncan, SC 29334 R.L. Stowe Mills, Inc. trade $537,153 100 North Main Street Belmont, NC 28012 The C.I.T. Group/E.F. trade $510,950 1540 West Fountainhead Parkway Tempe, AZ 85282 Carollna Mills, Inc. trade $487,489 618 North Carolina Avenue Maiden, NC 28650 Hess Corporation trade $429,077 1 Hess Plaza Woodbridge, NJ 07095 Grover Industries, Inc. trade $354,213 219 Laurel Avenue Grover, NC 28073 Gaston County Tax Collector tax $315,508 128 West Main Avenue Gastonia, NC 28052 Para-Chem trade $271,124 862 SE Main Street Simpsonville, SC 29681 Kennetex, Inc. trade $239,598 Carotex trade $211,876 G.P. Fabrication trade $211,517 Catawba County Tax tax $199,902 Duke Energy trade $178,299 Crypton trade $174,579 Giorgini Silvano trade $170,826 BB&T Factors Corp. trade $168,400 Noveon, Inc. trade $162,178 G.M.A.C. trade $160,421 Fred C. Church, Inc, trade $154,017 Parkdale trade $148,362 Rutherford County Tax tax $137,232 Wallace Sales Co. trade $135,624 P.S.N.C. Energy utility $133,603 United Parcel Service trade $133,022 Lonfil America Chenille Yarns trade $117,798 Applied Textiles, Inc. trade $112,961 OCEANIA CRUISE: Moody's Puts B2 Corp. Rating on Insignia Vessel --------------------------------------------------------------- Moody's Investors Service assigned a corporate family rating of B2 to Oceania Cruise Holdings Inc.'s wholly owned indirect subsidiary, Insignia Vessel Acquisition, LLC. Moody's also assigned the associated loss given default rating of LGD4, 50%, and the probability of default rating of B2. The rating outlook is stable. In addition, Moody's assigned ratings to several bank facilities, subject to final documentation, that will be used to refinance Oceania Cruise's existing bank facilities as a result of a change of control triggered by the company's strategic partnership with Apollo Management L.P. Apollo Managemen will purchase an approximate 60% ownership interest in Oceania Cruise for US$325 million via a perpetual Payment In Kind or PIK preferred security. Approximately US$275 million of the proceeds of the PIK preferred security will be distributed to existing shareholders while the remainder is expected to be used to secure new ship orders. The joint and several borrowers under the bank facility will be Insignia Vessel Acquisition LLC, Regatta Acquisition LLC and Nautica Acquisition LLC, that each own one cruise vessel. All three borrowers are owned by an intermediate holding company, Oceania Cruises Inc. that is in turn owned by Oceania Cruise Holdings. The facility is guaranteed by Oceania Cruises Inc. and is secured by three passenger cruise vessels. The assigned CFR is lower than the methodology implied rating because of the company's high pro-forma leverage, reliance on a small fleet of ships, limited operating history and Moody's expectation that the company will seek to grow its fleet, which could cause leverage to spike when new ships are delivered several years in the future. These considerations are not sufficiently offset by the company's overall mapping with respect to profitability. Oceania Cruise's small scale of operations make its earnings vulnerable to a potentially material decline if a ship were to be out of service for any reason. Moody's has concerns regarding the ultimate size of the market niche Oceania Cruise targets and the likelihood the fleet will grow substantially, as well as the existence of better capitalized and significantly larger competitors that weights the rating down. Nevertheless, Oceania Cruise has established a good initial track record of ramping up operations to profitability, and establishing relationships with key travel agencies to support distribution of its cruise product. The company appears to have discovered a relatively untapped and profitable market niche largely ignored by its larger peers and one that is supported by favorable demographic trends and strong forward bookings. Any new ships that may be added to the fleet is expected to be financed with new secured debt borrowed by to be formed restricted subsidiaries of Oceania Cruises Inc. The rating outlook is stable in light of solid forward booking-trends at rising price levels. Bank ratings assigned: -- US$40 million 5- year, senior secured first lien revolving credit facility guaranteed by Oceania Cruises at B1, LGD3, 39% -- US$300 million 6-year, senior secured first lien term-loan guaranteed by Oceania Cruises at B1, LGD3, 39% -- US$75 million 7-year, senior secured second lien term-loan guaranteed by Oceania Cruises at Caa1, LGD6, 90% Rating to be withdrawn: Oceania Cruise Holdings, Inc. -- Corporate family rating at B2 -- Probability of default rating at B2 -- Loss Given Default Assessment, LGD4, 50% Insignia Vessel Acquisition, LLC -- 25 million 5- year, senior secured first lien revolving credit at B1, LGD3, 41% -- US$300 million 6-year, senior secured first lien term-loan at B1, LGD3, 41% -- US$75 million 7-year , second lien term loan at Caa1, LGD6, 92% Moody's last rating action occurred on March 1, 2007 when Oceania Cruise's rating outlook was changed to negative. Headquartered in Miami, Florida, Oceania Cruise Holdings, Inc. owns three passenger identical cruise ships that each have 698 berths (2,094 in total) operating under the brand name of Oceania Cruises. The company was formed in 2002 and began operating in 2003 when it entered into a charter (lease) arrangement to operate the first of three ships. The company targets the upper premium segment of the cruise industry with destination-oriented cruises that maximize on-shore activities. Oceania Cruise's principal areas of operation include Africa, Arabia, Black Sea, Caribbean, Central America, China, Greek Isles, Iceland, India, Mediterranean, Mexico, Russia, Scandinavia, South America, and Southeast Asia. PORTRAIT CORP: Creditors Balk at Planned Managers Bonus Payments ---------------------------------------------------------------- The Official Committee of Unsecured Creditors in Portrait Corp. of America Inc.'s Chapter 11 case opposed the Debtor's proposal to pay bonuses to its top executives and managers arguing that the program "could completely wipe out recoveries to unsecured creditors", Bill Rochelle of Bloomberg News reports. According to the report, the Committee calculated the bonuses would total US$5.7 million if the business were sold for US$100 million in cash. The Committee said it has found a potential purchaser who is expected to pay off secured debt. Portrait agreed to move, to April 12, the hearing on its motion for approval of the bonus program. Treatment of Claims Under Reorganization Plan Last month, the U.S. Bankruptcy Court for the Southern District of New York in White Plains approved the disclosure statement explaining Portrait and its debtor-affiliates' joint plan of reorganization. Under that Plan, holders of Allowed Administrative Expense Claims will be paid in full and in cash. On the Plan's effective date, the DIP obligations will be deemed allowed and paid indefeasibly in full in accordance with the terms of the DIP Agreement and DIP Order. Upon full payment of all DIP Obligations, all liens and security interests granted to secure those obligations will be terminated. Provided, however, that the particular provisions of the DIP Agreement that are specified to survive will survive. Existing letters of credit issued pursuant to the DIP Agreement will be cancelled and replaced with new letters of credit to be issued pursuant to the Exit Facility. Holders of Allowed Priority Tax Claim will receive cash on the later of the plan effective date or the date the claim became allowed, or equal annual cash payments together with interest to be determined by the Bankruptcy Court. Holders of Class A Allowed Priority Non-Tax Claims will also be paid in full in cash. At the sole option of the Debtors, holders of Class B Allowed Other Secured Claims will: (a) receive payment in full in cash plus post-commencement date interest; (b) have a reinstated claim; (c) receive the collateral securing their claim; or (d) receive a treatment that renders the claim unimpaired pursuant to Section 1124 of the Bankruptcy Code. Holders of Class C Allowed Second Lien Notes Claims will receive, in full satisfaction of their claim, their pro rata share of 100% of Reorganized Portrait Corp of America common stock. Holders of Class D Allowed Senior Notes and Other Unsecured Claims will receive their pro rata distribution of new warrants. Holders of Class E Allowed Convenience Class Claims will receive 1% of their allowed claim as payment. Holders of Class F Allowed Goldman Note Claims, Class G Allowed Old Preferred Equity Interests, Class H Allowed Old Common Equity Interests, and Class I Allowed Old Common Subsidiary Equity Interests will not receive anything under the plan. Goldman Note Claims refer to: -- the 13.75% Senior Subordinated Notes due 2010, issued to GS Mezzanine Partners II L.P. and GS Mezzanine Partners II Offshore L.P. These notes were guaranteed by Portrait Corporation of America Inc., American Studios Inc., PCA National LLC, PCA National of Texas LP, PCA Photo Corporation of Canada Inc., Photo Corporation of America Inc., and PCA Finance Corp; and -- the 16.5% Senior Subordinated Notes due 2010, issued to GS Mezzanine Partners II L.P. and GS Mezzanine Partners II Offshore L.P. Wal-Mart Deal In February 2007, the Court approved an agreement between Portrait and Wal-Mart allowing Portrait to close operations on its 500 lowest performing studios. Commenting on the major milestone, David Alexander, Portrait's chairman and chief executive officer, said, "The closure of these unprofitable studios and the subsequent workforce reductions are a very difficult but necessary part of restoring the company to financial success. While approximately 1,200 positions will be eliminated across the company, many of these associates will be offered opportunities in other studios or departments. After the studio closures, PCA will continue to operate over 2,000 studios in North America and Europe." About Portrait Corporation of America Inc. Portrait Corporation of America Inc. -- http://pcaintl.com/-- provides professional portrait photography products and services in North America. The Company operates portrait studios within Wal-Mart stores and Supercenters in the United States, Canada, Mexico, Germany and the United Kingdom. The Company also operates a modular traveling business providing portrait photography services in additional retail locations and to church congregations and other institutions. Portrait Corporation and its debtor-affiliates filed for Chapter 11 protection on Aug. 31, 2006 (Bankr S.D. N.Y. Case No. 06-22541). John H. Bae, Esq., at Cadwalader Wickersham & Taft LLP, represents the Debtors in their restructuring efforts. Berenson & Company LLC serves as the Debtors' financial advisor and investment banker. Kristopher M. Hansen, Esq., at Stroock & Stroock & Lavan LLP represents the Official Committee of Unsecured Creditors. Peter J. Solomon Company serves as financial advisor for the Committee. At June 30, 2006, the Debtor had total assets of US$153,205,000 and liabilities of US$372,124,000. =========== P A N A M A =========== CABLE & WIRELESS: Inks Allnet Sale Agreement with Computancenter ---------------------------------------------------------------- Cable & Wireless plc has agreed to sell Cable & Wireless Allnet Ltd. to Computacenter U.K. Ltd. Allnet is the in-premises cabling services division of Cable & Wireless with gross assets amounting to GBP17 million and net assets of GBP6 million. The financial impact of the disposal will not be material to Cable & Wireless. Separately, the two companies have entered into a master services agreement which sees Computacenter as a preferred supplier of LAN services to Cable & Wireless in the U.K., combining Allnet's offering with the broader services capability offered by Computacenter. These moves are part of the ongoing transformation of Cable & Wireless' U.K. business and its mission to deliver excellent levels of service to its large corporate and public sector customers. With all 168 people currently working for Allnet transferring to Computacenter, the two companies will be able to leverage their combined skills and resources and offer additional functionality to customers. "We're delighted to have reached this preferred supplier agreement with Computacenter and look forward to a continuing and growing relationship," Jim Marsh, CEO of Cable & Wireless U.K., said. About Cable & Wireless Headquartered in London, Cable & Wireless PLC -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. Its principal operations are in the United Kingdom, continental Europe, Asia, the Caribbean, Panama and the Middle East. * * * Cable & Wireless Plc carry these ratings: * Moody's Investors Service -- Long-Term Corporate Family Rating: Ba3 -- Senior Unsecured Debt: B1 -- Short-Term: NP -- Outlook: Negative * Standard & Poor's -- Long-Term Foreign Issuer Credit Rating: BB- -- Long-Term Local Issuer Credit Rating: BB- -- Short-Term Foreign Issuer Credit Rating: B -- Short-Term Local Issuer Credit Rating: B -- Outlook: Negative ======= P E R U ======= HERTZ CORP: DBRS Rates Senior Subordinated Debt at B (high) ----------------------------------------------------------- Dominion Bond Rating Service assigned to Hertz Corporation an issuer rating of BB, a long-term debt rating of BB (low) and a senior subordinated debt rating of B (high). The notch differentials between the issuer, long-term debt and senior subordinated debt ratings reflect the unsecured position of the long-term debt, the junior position of the senior subordinated debt and the dominance of the secured debt. The trends are Stable. The ratings reflect the Company's strong business franchise and leading market position in the daily rental business, sizable cash flow generation ability and strong historical fleet management. The ratings are restrained by the high leverage, owed to a large amount of goodwill in the Company's capital base. The company's exposure to U.S. original equipment manufacturers continues to negatively pressure the ratings; however, this exposure has decreased over the past few years. Further, the company's single concentration in U.S. OEMs, while still high, compares favorably to its peers. Hertz's strong franchise has enabled it to be a historical leader in the premium vehicle rental segment. The company operates the largest worldwide general-use car rental brand and the second largest North American equipment rental business, both based on revenues. Further, the Hertz brand continues to lead the on-airport rental market. The company's fleet management model has historically been solid in a highly seasonal market. The Company has sizable cash flow generation ability and has demonstrated its ability to navigate well through seasonal markets and various business cycles, including the extraordinary events of 9/11, which slowed travel significantly. Hertz's capital structure is characterized by large amounts of acquisition-related debt and goodwill. As such, the company has a highly levered balance sheet. The company's capital structure is an underlying restraint on its ratings. Additionally, the increased interest expense resulting from the large level of debt has put downward pressure on profitability in an already fiercely competitive market. Nonetheless, profitability was respectable in 2006, ending with a strong fourth quarter characterized by strong revenue gains in the equipment rental business and expense control initiatives taken by the company. Finally, Hertz, as the whole industry, is faced with increasing residual risks as the Company purchases a higher percentage of risk vehicles, owed to reduced incentives and increased program vehicle pricing from U.S. OEMs. Consequently, inherent exposure to used car markets remains a challenge for the company, one which it has managed well in the past. Headquartered in Park Ridge, New Jersey, Hertz Corp. -- http://www.hertz.com/-- is a car rental company that operates from approximately 7,600 locations in 145 countries worldwide. Hertz also operates an equipment rental business, Hertz Equipment Rental Corporation, offering a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers through more than 360 branches in the United States, Canada, France, and Spain. Hertz has operations in the Philippines, Hungary, and Peru, among others. * PERU: To Sell Sol-Denominated Bonds to Pay Paris Club Debt ------------------------------------------------------------ The Peruvian government plans to sell sol-denominated bonds to repay its US$1.8 billion debt to the Paris Club -- a group of creditor countries that include France, Canada, Germany and Italy, Karla Palomo and Alex Emery at Bloomberg News report. Peruvian deputy Economy Minister Juan Miguel Cayo told Bloomberg in an interview that the bond offering will be made in the second and third quarters of this year. In 2005, the Latin American nation paid a US$1.5 billion debt to the Paris Club ahead of schedule. This year's issuance will be in sol to protect the country against declines in the currency. * * * As reported in the Troubled Company Reporter-Latin America on March 2, 2007, Standard & Poor's Ratings Services assigned its 'BB+' foreign currency credit rating to the Republic of Peru's (BB+/Stable/B foreign, BBB-/Stable/A-3 local currency sovereign credit ratings) US$1.24 billion global bond due in 2037 issued as part of a new liability management operation. ===================== P U E R T O R I C O ===================== FEDERATED DEP'T: Sells 507-Store to Men's Wearhouse for US100MM --------------------------------------------------------------- Federated Department Stores Inc. has completed the sale of its 507-store After Hours Formalwear business to Houston-based Men's Wearhouse. The sale price of approximately US$100 million was adjusted for certain items, primarily customer cash deposits retained by Federated Department on rentals to be completed after closing. Pre-tax cash proceeds from the transaction were approximately US$67.3 million. The After Hours sale completes the divestiture of Federated Department's Bridal Group division, which was acquired in 2005 as part of The May Department Stores Co. As previously announced, David's Bridal and Priscilla of Boston were sold in January 2007. The sale price of the total Bridal Group was approximately US$820 million in cash (after-tax proceeds of approximately US$720 million). Federated Department Stores, Inc. (NYSE:FD)(NYSE Arca:FD) is one of the country's largest department stores operators, with more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico, operating under the banners Macy's and Bloomingdale's. The August 2005 acquisition of May nearly doubled Federated's scale -- sales in fiscal 2006, the first full year of combination, were US$27 billion. * * * As reported in the Troubled Company Reporter-Latin America on March 1, 2007, Moody's Investors Service downgraded Federated Department Stores, Inc.'s long term senior unsecured debt rating to Baa2 from Baa1, and affirmed the company's Prime 2 rating for commercial paper, following the company's announcement that the Board had authorized a US$4 billion additional share buyback program. Ratings downgraded: -- Senior unsecured debt rating to Baa2 from Baa1 -- Preferred shelf rating to (P) Ba1 from (P) Baa3 Rating affirmed: -- Prime 2 rating for commercial paper SEARS HOLDINGS: Earns US$1.5 Billion in Year Ended February 3 ----------------------------------------------------------- Sears Holdings Corp. earned US$1.5 billion on US$53 billion total revenues for the year ended Feb. 3, 2007, versus US$858 million net income on US$49.1 billion total revenues for the comparable year ended Jan. 28, 2006. The company generated US$53 billion in merchandise sales and services and zero credit and financial products revenues in 2006, versus US$48.9 billion in merchandise sales and services and US$231 million in credit and financial products revenues in the prior year. The increase in fiscal 2006 revenues, as compared to reported revenues for fiscal 2005, was primarily due to the inclusion of Sears for the entire year in fiscal 2006 and, to a lesser degree, the inclusion of an additional week of sales in fiscal 2006. As of Feb. 3, 2007, the company listed US$30.1 billion in total assets and US$17.4 billion in total liabilities, resulting to US$12.7 billion in total shareholders' equity. The company had cash and cash equivalents of US$4 billion at Feb. 3, 2007 as compared to US$4.4 billion at Jan. 28, 2006. The decline in cash and cash equivalents from Jan. 28, 2006, was primarily attributable to share repurchases of US$816 million, debt repayments, net of new borrowings of US$434 million, capital expenditures of US$513 million, and cash used in the acquisition of additional interests in Sears Canada of US$282 million, partially offset by cash flows from operating activities of US$1.4 billion, which included pension contributions of US$355 million, and an increase in merchandise inventories. The company generated about US$1.4 billion in operating cash flows during fiscal 2006, as compared with US$2.3 billion in fiscal 2005. Net cash flows used by investing activities totaled US$663 billion in fiscal 2006, as compared with US$635 million provided in fiscal 2005. Investing cash flows in both years were heavily impacted by a number of significant transactions. Net cash used in financing activities was US$1.3 billion in fiscal 2006, reflecting share repurchases of US$816 million and debt repayments of US$434 million, net of new borrowings. Of the total share repurchases, US$806 million of the total was made pursuant to the company's common share repurchase program. Net cash used in financing activities was US$2 billion in fiscal 2005. Uses and Sources of Liquidity The company's primary need for liquidity is to fund seasonal working capital requirements of its retail businesses, capital expenditures and for general corporate purposes. The company believes that these needs will be adequately funded by the company's operating cash flows, credit terms from vendors, current balances in cash and cash equivalents and, to the extent necessary, borrowings under the company's US$4 billion, five- year credit agreement. At Feb. 3, 2007, US$3.8 billion was available under this facility. As of Feb. 3, 2007, the company had US$196 million of letters of credit outstanding under the Credit Agreement with US$3.8 billion of availability remaining under the Credit Agreement. There were no direct borrowings under the facility during fiscal 2006. The company has a letter of credit agreement with a commitment amount of up to US$1 billion. The LC Agreement, which is renewable annually upon agreement of the parties, is scheduled for renewal in August 2007. As of Feb. 3, 2007, there were US$686 million of letters of credit outstanding under the LC Agreement. The company had US$690 million posted as collateral under the LC Agreement and US$32 million of cash was posted as collateral for self-insurance programs as of Feb. 3, 2007. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1cd8 About Sears Holdings Based in Hoffman Estates, Illinois, Sears Holdings Corp. (NASDAQ: SHLD) -- http://www.searsholdings.com/-- is a broadline retailer, with approximately US$55 billion in annual revenues, and with approximately 3,800 full-line and specialty retail stores in the United States, Canada and Puerto Rico. Sears Holdings is a home appliance retailer as well as a retailer of tools, lawn and garden, home electronics, and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including well-known labels as Lands' End, Jaclyn Smith, and Joe Boxer, as well as the Apostrophe and Covington brands. * * * As reported in the Troubled Company Reporter on June 23, 2006, Standard & Poor's Ratings Services revised its outlook on Sears Holdings Corp. to stable from negative. All ratings, including the 'BB+' corporate credit rating, and the 'B-1' short-term rating for Sears Roebuck Acceptance Corp., are affirmed. As reported in the Troubled Company Reporter on June 22, 2006, Fitch affirms its ratings of Sears Holdings Corp. including its Issuer Default Rating (IDR) at 'BB'; Senior notes at 'BB'; and Secured bank facility at 'BBB-'. ============= U R U G U A Y ============= * URUGUAY: Sells US$500 Million of Peso Bonds in Int'l Markets -------------------------------------------------------------- The Uruguayan government has sold US$500 million of inflation- linked bonds in international markets, Daniel Helft at Bloomberg News reports. The bonds will yield 4.25 percentage points over inflation, Bloomberg says, citing Economy Minister Danilo Astori. The new debt instruments will be payable in U.S. dollars based on the average interbank exchange rate published by Uruguay's Central Bank. Deutsche Bank Securities and Merrill Lynch & Co. managed the sale. According to the economy minister, demand reached US$1.4 billion. American investors purchased 70% of the bonds, while European investors bought 15%, and the rest was purchased by Latin American investors. * * * On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of 5% inflation-indexed bonds payable in U.S. dollars and maturing Sept. 14, 2018, at 'B+'. ================= V E N E Z U E L A ================= DAIMLERCHRYSLER AG: Kerkorian Offers US$4.5 Billion for Chrysler ---------------------------------------------------------------- DaimlerChrysler AG has received a new offer of up to US$4.5 billion in cash from Tracinda Corp., an investment firm owned by billionaire Kirk Kerkorian, published reports say. Meanwhile, Magna International Inc. and private-equity group Cerberus Capital Management LP have each submitted tenders for Chrysler, with Blackstone Group LP and Centerbridge Capital Partners LLC presenting a joint bid for the ailing unit, Bloomberg News relates. Tracinda plans to offer United Auto Workers union a "substantial portion" of Chrysler equity in exchange for lower healthcare cost for hourly workers, the Wall Street Journal reveals. According to reports, Mr. Kerkorian's tender also depends on whether Chrysler enters into a "satisfactory" labor contract with the UAW and if Daimler agrees to share part of the troubled unit's unfunded pension liabilities and retiree heath-care costs amounting to US$15 billion. In a letter to DaimlerChrysler CEO Dieter Zetsche, Jerome B. York, Mr. Kerkorian's longtime lieutenant and former Chrysler CFO, wrote: "Investors that feel the need to show 'mark to market' results in their funds in relatively short time frames (just a few years) will not be willing to invest as necessary over an unusually lengthy period of time to achieve the necessary end results. Long term, patient investing has been Tracinda's approach." Mr. Kerkorian previously said he wants "a true partnership" with the company's workers, including the investment of "necessary new funds" to help boost Chrysler's product spending, reports claim. This is Mr. Kerkorian's second attempt to acquire Chrysler, following a failed US$25 million hostile bid in 1995 that later led to Chrysler's 1998 merger with Daimler-Benz AG of Germany, The Scotsman states. 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. HERBALIFE LTD: Disbands Special Panel After Whitney Talks End ------------------------------------------------------------- Herbalife Ltd. reported that discussions between the Special Committee of the Board of Directors and Whitney V, L.P., described in Amendment No. 7 to the Schedule 13D of Whitney filed on April 5, 2007, have terminated. In light of these developments, the Board of Directors has terminated the term of the Special Committee and the Special Committee has been disbanded. "The Board of Directors remains committed to growing this company," said Peter M. Castleman, chairman of Herbalife Board of Directors. "We are confident in the company's future because of the work of over a million and a half Herbalife independent distributors in 64 countries, which are what make the company successful." "During the discussions between the Special Committee and Whitney, we have consistently stressed to our distributors and employees that it's business as usual for all of us," said Michael O. Johnson, Herbalife CEO. Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- Herbalife, now in its 26th year, conducts business in 62 countries. The company does business with several manufacturers worldwide and has its own manufacturing facility in Suzhou, China as well as major distribution centers in Venray, Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn., Guadalajara, Mexico, and El Salvador. The company also has operations in Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on April 05, 2007, Standard & Poor's Ratings Services said that its 'BB+' corporate credit rating on Herbalife Ltd. remains on CreditWatch with negative implications following the company's announcement that the company's board of directors has rejected a bid to be acquired by Whitney V L.P. SHAW GROUP: Cost Review To Delay Second Quarter Fin'l Reporting --------------------------------------------------------------- The Shaw Group Inc. will delay reporting its second quarter results pending the completion of an independent review of the estimated costs of an ongoing U.S. gulf coast EPC petrochemical project, which has an approximate contract value of US$39 million. The review is being performed to determine the amount of any error in estimated costs and the reporting periods, which may be affected. Present information indicates that the project costs estimates could include additional charges of US$7 million to US$12 million; US$4 million to US$7 million, after taxes, and would result in a loss on the project of approximately the same amount. The company believes that the estimated costs increase, if verified, may have been required to have been reported in the first quarter of fiscal 2007. Therefore, until the review is completed, financial statements for the first quarter of fiscal 2007 should not be relied upon. Further, because the project began in April 2006, it is possible that the review may reveal that reporting periods in the second half of fiscal 2006 were affected, and in such event, the company will evaluate any impact to prior financial statements at that time. Shaw also has determined that the accounting work for the expected restatement and the review of the company's second quarter financial statements would be more efficiently performed by Shaw's new auditors, KPMG LLP. The company's previous auditors, Ernst & Young LLP (E&Y), and the company had previously indicated that E&Y would complete their engagement as the company's auditors following the completion of the review of Shaw's second quarter results. Effective immediately, KMPG has begun its work as Shaw's auditors and KPMG will be responsible for the review of financial results for second quarter, a first quarter restatement, if required, and Shaw's fiscal 2007 financial statements. There were no reportable disagreements with Ernst & Young on any accounting principles or practices, financial statement disclosure or auditing scope or procedures. Shaw expects the delay in filing of its second quarter Form 10-Q to be 45 to 90 days from its normal filing requirement date of April 9, 2007. In the event reporting periods in the second half of fiscal 2006 require restatement, the delay may be longer. Covenant Waiver Requirement The company also stated that a waiver of certain covenants of its Bank Credit Agreement will be required in connection with the delay in the filing of its second quarter financial statements. The company expects to receive the necessary waiver. The Shaw Group Inc. Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the US$100 million increase to the company's revolving credit facility. * VENEZUELA: Gets US$13.7MM in Back Taxes from Royal Dutch Shell ---------------------------------------------------------------- Venezuelan taxing authority Seniat told Reuters that the Venezuelan unit of Royal Dutch Shell has paid the government US$13.7 million in back taxes charged on operations in 2005. As reported in the Troubled Company Reporter-Latin America on Dec. 12, 2006, Seniat asked Royal Dutch's local subsidiary to pay back taxes related to transfer prices in 2005. Royal Dutch has a joint venture with state oil firm Petroleos de Venezuela for production on the Urdaneta Oeste field in the Zulia state. Shell has a joint venture with state oil firm Petroleos de Venezuela for production on the Urdaneta Oeste field in Zulia. Seniat told Reuters that Royal Dutch made the payment after an audit determined that the firm hadn't paid enough income tax for 2005. Seniat said it disapproved of Royal Dutch Venezuelan unit's write-down of interest payments on a loan it took from its corporate headquarters, insisting the interest rate on the loan had been set above market rates. * * * As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings affirmed Venezuela's long-term foreign and local currency Issuer Default Ratings at 'BB-'. At the same time, the agency also affirmed the short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'. Fitch said the outlook on the ratings remains stable. * VENEZUELA: Launches Public Tender for Cantv Majority Stake ------------------------------------------------------------ Published reports say that the Venezuelan government has launched a public tender to obtain a majority stake in Cantv. Business News Americas relates that the public tender will close on May 8. BNamericas underscores that the government is offering VEB4,560 per local share and US$14.85 for American Depositary Shares on the New York Stock Exchange. According to reports, Venezuelan ministers expect the government to start running Cantv in June. The government owns a 6.5% stake in Cantv, BNamericas states. * * * As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings affirmed Venezuela's long-term foreign and local currency Issuer Default Ratings at 'BB-'. At the same time, the agency also affirmed the short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'. Fitch said the outlook on the ratings remains stable. * S&P Probes Relation Between Sovereign Ratings & Country Risk -------------------------------------------------------------- Standard & Poor's Ratings Services examined the unique relationship between sovereign credit ratings and country risk -- the risk of doing business in a particular country. The report, entitled "Investigating Country Risk And Its Relationship To Sovereign Ratings In Latin America," surveys 24 countries in Latin America, none of which has a long-term foreign currency rating higher than 'A' and all of which are categorized as having emerging market economies. Of the group, 20 are in Latin and Central America or the Caribbean, while the remaining four-China, India, Russia, and South Africa-represent key benchmarks of comparison for the region. "This is not a formal scoring exercise, but rather a compilation of relative rankings using a number of indicators other than macroeconomic ones," said Standard & Poor's sovereign analyst Helena Hessel. "The credit rating itself is fundamentally an indicator of financial strength -- a government's ability and willingness to service its debt obligations on a timely basis -- and will therefore be influenced strongly by a range of sociopolitical, economic, and financial factors." The study divides the group of 24 sovereigns into two subgroups based upon their foreign currency ratings. One group includes eight investment-grade countries with ratings ranging from 'A' to 'BBB-', the other includes the remaining 16 speculative-grade rated regional sovereigns. "The results from the first group shows that all regional investment-grade-rated countries rank high in an overall weighted composite country risk index," explained Ms. Hessel. "Barbados leads the group, followed by Chile. Mexico is in fourth position, and Trinidad and Tobago in eighth. Barbados and Chile also rank high in all five individual country risk indicators, except income inequality." Among the 16 speculative-grade rated sovereigns, the most interesting cases are Costa Rica, Uruguay, Jamaica, and Grenada. In terms of their foreign currency ratings, these sovereigns rank 14th, 18th, 20th, and 21st, respectively. In terms of an overall weighted composite country risk index, their relative ranking climbs significantly. Uruguay is ranked third, Jamaica fifth, Costa Rica seventh, and Grenada 10th. In all four countries, the business environment is dramatically better than the sovereign ratings indicate, with the latter being mainly constrained by high government indebtedness (especially in Jamaica and Grenada) and recent default history (Uruguay and Grenada). "In recent years, changing country risk factors in emerging markets have affected a number of companies. Legal and regulatory systems in emerging market countries are often underdeveloped and can be unpredictable, while laws and regulations are often poorly defined or are untested, may be enforced arbitrarily, and may be imposed to the detriment of investors. Furthermore, some emerging market countries may not respect the decisions of international arbitration courts," Ms. Hessel stated. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- April 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Pal's Cabin, West Orange, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ April 11-15, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Annual Spring Meeting J.W. Marriott, Washington, District of Columbia Contact: 1-703-739-0800; http://www.abiworld.org/ April 12, 2007 BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Contact: 240-629-3300; http://www.beardaudioconferences.com/ April 12, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC 4th Spring Luncheon and Founders Awards Washington, District of Columbia Contact: http://www.iwirc.org/ April 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ April 12, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - East JW Marriott, Washington, District of Columbia Contact: http://www.abiworld.org/ April 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Fundamentals of Turnaround Management Melbourne, Australia Contact: http://www.turnaround.org/ April 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Completing the Turnaround Melbourne, Australia Contact: http://www.turnaround.org/ April 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth Arizona Chapter Meeting Biltmore Hotel, Phoenix, Arizona Contact: http://www.turnaround.org/ April 17, 2007 BEARD AUDIO CONFERENCES Real Estate Bankruptcy Contact: 240-629-3300; 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http://renaissanceamerican.com/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting Social TBA, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Operational Turnaround Management Renaissance Hotel, Syracuse, New York Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Fraud and Forensic Investigation Athletic Club, Denver, Colorado Contact: http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Completing the Turnaround Brisbane, Australia Contact: http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION The Nuts & Bolts of Buying and Selling Distressed Companies University Club, Chicago, Illinois Contact: http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ April 24, 2007 BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Contact: 240-629-3300; 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http://renaissanceamerican.com/ May 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona and RMA Joint Meeting Hotel Valley Ho, Scottsdale, Arizona Contact: http://www.turnaround.org/ May 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ May 30-31, 2007 FINANCIAL RESEARCH ASSOCIATES Distressed Debt Harvard Club, New York, New York Contact: http://www.frallc.com/ May 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting and Casino Night Mayfair Farms, West Orange, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ May 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Speaker Series E&Y Tower, Calgary, Alberta Contact: http://www.turnaround.org/ May 31 - June 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION 2nd Annual TMA Southeast Regional Conference Marriott Resort at Grande Dunes Myrtle Beach, South Carolina Contact: http://www.turnaround.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference JW Marriott Spa and Resort, Las Vegas, Nevada Contact: http://http://www.airacira.org/ June 6-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION 5th Annual Mid-Atlantic Regional Symposium Borgata Hotel Casino & Spa Atlantic City, New Jersey Contact: http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, Illinois Contact: http://www.airacira.org/ June 7-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION Mealey's Asbestos Bankruptcy Conference Intercontinental Hotel, Chicago, Illinois Contact: http://www.turnaround.org/ June 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth Arizona Chapter Meeting Biltmore Hotel, Phoenix, Arizona Contact: http://www.turnaround.org/ June 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Economic Update at the 1/2 Year Mark University Club, Portland, Oregon Contact: http://www.turnaround.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ June 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Clarion Hotel, Princeton, New Jersey Contact: 908-575-7333 or www.turnaround.org/ June 21-22, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Tenth Annual Conference on Corporate Reorganizations Successful Strategies for Restructuring Troubled Companies The Millennium Knickerbocker Hotel - Chicago Contact: 800-726-2524; http://renaissanceamerican.com/ June 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact: http://www2.nortoninstitutes.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, Rhode Island Contact: 1-703-739-0800; http://www.abiworld.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Young Professionals Billiards Night TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ July 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ July 25-28, 2007 AMERICAN BANKRUPTCY INSTITUTE 12th Annual Southeast Bankruptcy Workshop The Sanctuary, Kiawah Island, South Carolina Contact: http://www.abiworld.org/ July 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ July 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Golf Outing Raritan Valley Country Club, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ July 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Enterprise Florida: Improving Florida's Business Climate and Helping Florida Companies Market Overseas Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Aug. 3, 2007 TURNAROUND MANAGEMENT ASSOCIATION Women's Spa Event Short Hills Hilton, Livingston, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 10, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Aug. 9-11, 2007 AMERICAN BANKRUPTCY INSTITUTE 3rd Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 23-26, 2007 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Drake Hotel, Chicago, Illinois Contact: http://www.nabt.com/ Aug. 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Fishing Trip Point Pleasant, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Healthcare Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Aug. 29-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 3rd Annual Northeast Regional Conference Gideon Putnam Resort and Spa, Saratoga Springs, New York Contact: http://www.turnaround.org/ Sept. 6-7, 2007 TURNAROUND MANAGEMENT ASSOCIATION Complex Financial Restructuring Program Four Seasons, Las Vegas, Nevada Contact: http://www.turnaround.org/ Sept. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Southwest Bankruptcy Conference Four Seasons Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Sept. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Buying and Selling Troubled Companies Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ Sept. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Sept. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Retail Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Sept. 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Educational & Networking Reception TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Sept. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Sept. 27-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 8th Annual Cross Border Business Restructuring & Turnaround Conference Contact: http://www.turnaround.org/ Oct. 2, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Oct. 9-10, 2007 IWIRC Orlando, Florida IWIRC Annual Fall Conference Contact: http://www.iwirc.org/ Oct. 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES 81st Annual National Conference of Bankruptcy Judges Contact: http://www.ncbj.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Capital Markets Case Study Contact: http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Crisis Communications With Employees,Vendors and Media Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Nov. 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Hackensack, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Dinner South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Nov. 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Portland Holiday Party University Club, Portland, Oregon Contact: 206-223-5495 or http://www.turnaround.org/ Nov. 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Mixer TBA, Vancouver Contact: 206-223-5495 or www.turnaround.org/ Nov. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Real Estate Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Nov. 29, 2007 TMA Arizona Chapter Meeting TURNAROUND MANAGEMENT ASSOCIATION Contact: http://www.turnaround.org/ Dec. 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Seattle Holiday Party Athletic Club, Seattle, Washington Contact: 206-223-5495 or http://www.turnaround.org/ Dec. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Jan. 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ April 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, District of Columbia Contact: http://www.abiworld.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: http://www.abiworld.org/ July 10-13, 2008 TURNAROUND MANAGEMENT ASSOCIATION 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, Massachussets Contact: http://www.turnaround.org/ July 31 - Aug. 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Contact: http://www.abiworld.org/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Dec. 4-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, Nevada Contact: http://www.ncbj.org/ June 21-24, 2009 INSOL 8th International World Congress TBA Contact: http://www.insol.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, Louisiana Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers-the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande de los Santos, Christian Toledo, and Junald Ango, Editors. Copyright 2076. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *