/raid1/www/Hosts/bankrupt/TCRLA_Public/070417.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, April 17, 2007, Vol. 8, Issue 75
Headlines
A R G E N T I N A
ACRILICOS CLAUDIO: Claims Verification Deadline Is May 4
BANCO RIO: Changes Name to Santander Rio
EDWARD'S INTERNATIONAL: Claims Verification Is Until May 9
ELECTROLAB SA: Court Moves Claims Verification Deadline to May 3
FIAT SPA: Okays Purchase and Disposition of EUR1.4 Bln Shares
FIAT SPA: Discloses Relative Purchase Program
HOLD SA: Trustee To File Individual Reports in Court Tomorrow
HUGO CARLOS: Trustee to File Individual Reports Tomorrow
MEDICAL POWER: Claims Verification Deadline Is May 14
MMF SA: Trustee To File Individual Reports in Court on August 8
NAVARRO SEGURIDAD: Individual Reports to be Filed Tomorrow
NIETO HERMANOS: Trustee Verifies Proofs of Claim Until May 4
ORIGLIA NESTOR: Proofs of Claim Verification Ends April 19
PIQUILLIN SRL: Individual Reports Filing in Court on July 12
PROCELPA SA: Proofs of Claim Verification Is Until May 8
RATTO SA: Proofs of Claim Verification Deadline Is June 21
RETAIL PHARMA: Individual Reports Filing in Court on June 19
TEXTIL KOVIC: Trustee to File General Report in Court Tomorrow
UNIDAD ASISTENCIAL: Moves Claims Filing Deadline to May 23
B A R B A D O S
BRITISH AIRWAYS: Barbados Direct Flights May Decrease Airfares
B E R M U D A
SEA CONTAINERS: Wants to Employ PWC Legal as U.K. Labor Counsel
SEA CONTAINERS: Can Lend Up to US$7 Million to Non-Debtor Unit
B O L I V I A
* BOLIVIA: Mining Concessions Breaching Laws to be Confiscated
B R A Z I L
AMERICAN MEDICAL: Posts US$108.4-Mln Prelim First Quarter Sales
AMR CORP: Earnings Prompt S&P to Revise Outlook to Positive
BANCO BMG: Wants Partner in Payroll & Retirement Loan Segment
BANCO BRADESCO: Will Use Tim Participacoes' Mobile Phone Service
BANCO DAYCOVAL: S&P Affirms B+/B Counterparty Credit Rating
BANCO FIBRA: S&P Affirms B+/B Counterparty Credit Rating
BANCO INDUSVAL: S&P Ups Counterparty Credit Rating to B+ from B
BANCO ITAU: Will Use Tim Participacoes' Mobile Phone Service
BANCO NACIONAL: Inks BRL1.76 Billion Deal with Transpetro
BANDEIRANTE ENERGIA: Moody's Reviews Ratings and May Upgrade
BEARINGPOINT INC: To Open SAP Center in Sao Paulo
BLOCKBUSTER INC: Appoints Nick Shepherd as Senior Exec. VP & COO
BRASKEM: Concludes US$1.2 Billion Bridge Loan Talks
COMPANHIA ENERGETICA: Launches Irape-Aruacai Transmission Line
EMI GROUP: Resolves Royalties Dispute with The Beatles
EMPRESA ENERGETICA: Moody's Reviews Ratings and May Upgrade
ESPIRITO SANTO: Moody's Reviews Ratings on Better Credit Metrics
NOSSA CAIXA: Providing Home Loans to State Employees
PETROLEUM GEO-SERVICES: Earns US$298.6 Million in Full Year 2006
PETROLEUM GEO-SERVICES: Moody's Gives Loss-Given-Default Rating
USINAS SIDERURGICAS: Deutsche Bank Holds "Buy" Recommendation
* BRAZIL: Obtains US758,000 Loan from Multilateral Investment
C A Y M A N I S L A N D S
CAPABLE LIMITED: Proofs of Claim Must be Filed by April 23
TWINKLE FUNDING: Proofs of Claim Filing Ends April 22
UBS INVESTMENT: Proofs of Claim Filing Deadline Is Apirl 25
C H I L E
SHAW GROUP: Gary Graphia Named as Corporate Development EVP
C O L O M B I A
BANCOLOMBIA: First Quarter Profits Decreases to COP223 Billion
* COLOMBIA: To Auction Exploration Rights for 13 Offshore Blocks
C O S T A R I C A
ALCATEL-LUCENT: Fitch Affirms then Withdraws BB Rating
D O M I N I C A N R E P U B L I C
BANCO BHD: Grupo BHD to Merge with Centro Financiero
E C U A D O R
PETROECUADOR: Mulls Options to Develop Amazon Oilfields
PETROECUADOR: Pertamina Wants Hydrocarbon Projects with Firm
J A M A I C A
NATIONAL COMMERCIAL: Money Laundering Case Court Hearing Resumes
M E X I C O
ADVANCE FOOD: Moody's Lowers Ratings on US$265 Mil. Loans to B1
AMERICAN GREETINGS: Completes Sale of Learning Horizons Unit
BALLY TOTAL: S&P Puts Default Rating on Interest Non-Payment
ELAMEX S.A.: Annual Shareholders' Meeting Scheduled on April 26
FOAMEX INT'L: Dec. 31 Balance Sheet Upside-Down by US$396.4 Mil.
FORD MOTOR: Defects Prompt Recall of 527,000 Ford Escape SUVs
GRUPO IUSACELL: Mexican Bankruptcy Court Okays Debt Workout Plan
INNOPHOS INC: S&P Junks Rating on US$66 Million Senior Notes
P E R U
DUN & BRADSTREET: Dec. 31 Balance Sheet Upside-Down by US$399MM
DUN & BRADSTREET: Amends U.S. Qualified Plan and 401(k) Plan
P U E R T O R I C O
CHATTEM INC: Earns US$13.7 Million in First Quarter 2007
SUNCOM WIRELESS: Unveils Preliminary First Quarter 2007 Results
U R U G U A Y
GOL LINHAS: Discloses Terms of ADR Rights Offering
NXP BV: Moody's Assigns Loss-Given-Default Rating
V E N E Z U E L A
CITGO PETROLEUM: Closes Lawrence Gasoline Station
ELECTRICIDAD DE CARACAS: Board Urges Okay of PDVSA Tender Offer
ELECTRICIDAD DE CARACAS: Supports Petroleos de Venezuela's Offer
LEAR CORP: Annual Stockholders' Meeting Slated for June 27
PEABODY ENERGY: Declares US$0.06 Per Share Quarterly dividend
PETROLEOS DE VENEZUELA: Analysts Cynical on Bonds Tax Exemption
PETROLEOS DE VENEZUELA: Armed Forces to Seize Orinoco Projects
PETROLEOS DE VENEZUELA: EDC Endorses Firm's Offer
* VENEZUELA: Chavez Wants Cemex Nationalized to Boost Production
* VENEZUELA: Eyes Operational Control of Cantv by June 4
* VENEZUELA: Colombia Gas Pipeline to be Completed in August
* IMF Says Growth Remains Relatively High in LatAm & Caribbean
- - - - -
=================
A R G E N T I N A
=================
ACRILICOS CLAUDIO: Claims Verification Deadline Is May 4
--------------------------------------------------------
Oscar Reynaldo Paez, the court-appointed trustee for Acrilicos
Claudio S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until May 4, 2007.
Mr. Paez will present the validated claims in court as
individual reports on June 19, 2007. 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 Acrilicos Claudio 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 Acrilicos Claudio's
accounting and banking records will be submitted in court on
Aug. 15, 2007.
Mr. Paez is also in charge of administering Acrilicos Claudio's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Oscar Reynaldo Paez
Juana Manso 1666
Buenos Aires, Argentina
COPRISER SRL: Trustee Verifies Proofs of Claim Until May 7
---------------------------------------------------------
Mariana Andrea Tsanis, the court-appointed trustee for Copriser
S.R.L.'s reorganization proceeding, verifies creditors' proofs
of claim until May 7, 2007.
National Commercial Court of First Instance approved a petition
for reorganization filed by Copriser, according to a report from
Argentine daily Infobae.
Ms. Tsanis 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 Copriser 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 Copriser's accounting
and banking records will be submitted in court.
Infobae did not say when the reports are due in court nor the
informative assembly date provided.
The debtor can be reached at:
Copriser S.R.L.
Calle 12 Nro. 1658 La Plata
Buenos Aires, Argentina
The trustee can be reached at:
Mariana Andrea Tsanis
Calle 50 Nro. 1410 La Plata
Buenos Aires, Argentina
BANCO RIO: Changes Name to Santander Rio
----------------------------------------
Banco Rio de la Plata said in a press release that it will
become Santander Rio.
Business News Americas relates that Santander Rio is a unit of
Spain's Santander. It is the largest Argentine private bank in
terms of loans, with ARS9.64 billion as of Jan. 31.
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.
EDWARD'S INTERNATIONAL: Claims Verification Is Until May 9
----------------------------------------------------------
Daniel Alfredo Erdocia, the court-appointed trustee for Edward's
International Services S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until May 9, 2007.
Mr. Erdocia will present the validated claims in court as
individual reports. 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 Edward's
International 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 Edward's
International's accounting and banking records will be submitted
in court.
Infobae did not say when the reports are due in court.
Mr. Erdocia is also in charge of administering Edward's
International's assets under court supervision and will take
part in their disposal to the extent established by law.
The trustee can be reached at:
Daniel Alfredo Erdocia
Paraguay 610
Buenos Aires, Argentina
ELECTROLAB SA: Court Moves Claims Verification Deadline to May 3
----------------------------------------------------------------
Nestor Szwarcberg, the court-appointed trustee for Electrolab's
bankruptcy proceeding, will verify proofs of claim from the
company's creditors until May 3, 2007.
As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2007, proofs of claim verification was initially set
for March 2, 2007.
Mr. Szwarcberg will present the validated claims in court as
individual reports on June 15, 2007. National Commercial Court
of First Instance No. 1 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 Electrolab 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 Electrolab's
accounting and banking records will be submitted in court on
July 12, 2007.
Mr. Szwarcberg is also in charge of administering Electrolab's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Electrolab SA
Avenida Inclan 3015
Buenos Aires, Argentina
The trustee can be reached at:
Nestor Szwarcberg
Hipolito Yrigoyen 1349
Buenos Aires, Argentina
FIAT SPA: Okays Purchase and Disposition of EUR1.4 Bln Shares
-------------------------------------------------------------
Shareholders of Fiat S.p.A. approved on April 5 the company's
2006 annual report and the distribution of dividends to
stockholders.
The distribution will see a gross dividend of EUR0.155 per
ordinary share, EUR0.31 per preference share and EUR0.93 per
savings share, which will be paid starting May 24, ex-dividend
date May 21.
The stockholders' meeting also authorized the purchase and
disposition of owned shares, also through the group
subsidiaries, of all three classes of stock for an amount which
may not exceed 10% of the company's capital and an aggregate
maximum amount of EUR1.4 billion.
This authorization will allow the necessary servicing of the
stock option plans and will provide the company with a strategic
investment opportunity.
Purchases of own shares will have to be made within the next 18
months in accordance with the terms and procedures allowed by
applicable law and regulations and the prices will be directly
related to the reference price reported on the stock exchange on
the preceding day, plus or minus 10%.
The meeting then approved the incentive plan based on stock
options, which had been resolved by the board of directors on
Nov. 3, 2006, and already disclosed to the market, with a
maximum of 20 million underlying Fiat ordinary shares offered at
a strike price of EUR13.37, equal to the arithmetical average of
the official prices posted on the Borsa Italiana S.p.A.'s market
in the thirty days preceding Nov. 3, 2006.
Finally, in its extraordinary session, the stockholders' meeting
approved certain amendments to the by-laws related to the Law on
Investors Protection as modified by Legislative Decree no. 303
of Dec. 29, 2006.
In particular, provisions related to the vote list system for
the election of directors were introduced, and the minimum
equity interest required for submission of a list of candidates
was determined in an amount equal to the equity interest
applicable to the Company according to the new regulations,
which may not, in any case, exceed 1% of the ordinary shares.
Provisions were also introduced in relation with the appointment
and necessary professional requirements of the manager in charge
of preparing the company's financial reporting. Provisions
regarding the appointment of the Board of Statutory Auditors
were also amended.
Pursuant to the by-laws and in accordance to the time-schedule
provided by law, the board of directors may further amend the
by-laws to make them compliant with Consob regulations that are
currently being issued.
About Fiat S.p.A.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment. It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems. Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
As reported in the TCR-Europe on April 10, Moody's confirmed its
Ba2 Corporate Family Rating for Fiat S.p.A.
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italian industrial group Fiat S.p.A.
to 'BB' from 'BB-'. At the same time, Standard & Poor's
affirmed its 'B' short-term rating on Fiat. S&P said the
outlook is stable.
Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from
Stable. Its Issuer Default rating and senior unsecured rating
are affirmed at BB-. The Short-term rating is affirmed at B.
Around EUR6 billion of debt is affected by this rating action.
FIAT SPA: Discloses Relative Purchase Program
---------------------------------------------
Fiat S.p.A. revealed its intention to start the relative
purchase program, following the stockholders' meeting resolution
that authorized the company to purchase its own shares.
The program, aimed at servicing stock options plans and at the
investment of liquidity, refers to a maximum number of own
shares of the three classes of stock which shall not exceed 10%
of the capital stock and a maximum aggregate amount of EUR1.4
billion and will be carried out on the regulated market as:
-- it will become effective on April 10 and end on
Dec. 31, 2007, or once the maximum amount of EUR1.4
billion or a number of shares equal to 10% of the capital
stock is reached;
-- the maximum purchase price will not exceed 10% of the
reference price reported on the Stock Exchange on the day
before the purchase is made;
-- the maximum number of shares purchased daily will not
exceed 20% of the total daily trading volume for each
class of shares.
Should purchases be carried out, Fiat will daily communicate to
the market and competent authorities the transactions it has
executed, specifying the number of shares purchased, the average
price, the total number of purchased shares as of the date of
the communication and the total invested amount as of such date.
As of April 5, Fiat owns a total of 3,344,958 ordinary shares.
About Fiat S.p.A.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment. It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems. Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
As reported in the TCR-Europe on April 10, Moody's confirmed its
Ba2 Corporate Family Rating for Fiat S.p.A.
Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italian industrial group Fiat S.p.A.
to 'BB' from 'BB-'. At the same time, Standard & Poor's
affirmed its 'B' short-term rating on Fiat. S&P said the
outlook is stable.
Fitch Ratings changed Fiat S.p.A.'s Outlook to Positive from
Stable. Its Issuer Default rating and senior unsecured rating
are affirmed at BB-. The Short-term rating is affirmed at B.
Around EUR6 billion of debt is affected by this rating action.
HOLD SA: Trustee To File Individual Reports in Court Tomorrow
-------------------------------------------------------------
Estudio Plastina, Torralba y Asociados, the court-appointed
trustee for Hold S.A.'s reorganization proceeding, will present
creditors' validated claims as individual reports in the
National Commercial Court of First Instance No. 12 in Buenos
Aires on April 18, 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 Hold and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Estudio Plastina verified creditors' proofs of claim until
March 7, 2007.
Estudio Plastina will also submit to court a general report
containing an audit of Hold's accounting and banking records.
The report submission date was not disclosed.
The informative assembly will be held on Dec. 10, 2007.
Creditors will vote to ratify the completed settlement plan
during the assembly.
Clerk No. 23 assists the court in the case.
The debtor can be reached at:
Hold SA
Avenida Cordoba 1364
Buenos Aires, Argentina
The trustee can be reached at:
Estudio Plastina, Torralba y Asociados
Bartolome Mitre 1131
Buenos Aires, Argentina
HUGO CARLOS: Trustee to File Individual Reports Tomorrow
--------------------------------------------------------
Nora Mabel Pszemiarower, the court-appointed trustee for Hugo
Carlos Rey SA's reorganization proceeding, will present
creditors' validated claims as individual reports in the
National Commercial Court of First Instance in Buenos Aires on
April 18, 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 Hugo Carlos and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Pszemiarower verified creditors' proofs of claim until
March 6, 2007.
Ms. Pszemiarower will also submit to court a general report
containing an audit of Hugo Carlos' accounting and banking
records on June 1, 2007.
The informative assembly will be held on Nov. 11, 2007.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The trustee can be reached at:
Nora Mabel Pszemiarower
Avenida Corrientes 1257
Buenos Aires, Argentina
MEDICAL POWER: Claims Verification Deadline Is May 14
-----------------------------------------------------
Flora Marcela Pazos, the court-appointed trustee for Medical
Power S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until May 14, 2007.
Ms. Pazos will present the validated claims in court as
individual reports. 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 Medical Power
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 Medical Power's
accounting and banking records will be submitted in court.
Infobae did not say when the reports are due in court.
Ms. Pazos is also in charge of administering Medical Power's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Flora Marcela Pazos
Montevideo 527
Buenos Aires, Argentina
MMF SA: Trustee To File Individual Reports in Court on August 8
---------------------------------------------------------------
Jorge R. Mencia, the court-appointed trustee for MMF S.A.'s
bankruptcy proceeding, will present creditors' validated claims
as individual reports in the National Commercial Court of First
Instance No. 8 in Buenos Aires on Aug. 8, 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 MMF and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Mencia verifies creditors' proofs of claim until
June 11, 2007.
Mr. Mencia will also submit to court a general report containing
an audit of MMF's accounting and banking records on
Sept. 20, 2007.
Clerk No. 16 assists the court in the case.
The trustee can be reached at:
Jorge R. Mencia
Rodriguez Pena 350
Buenos Aires, Argentina
NAVARRO SEGURIDAD: Individual Reports to be Filed Tomorrow
----------------------------------------------------------
Viviana Patricia Ferrarotti, the court-appointed trustee for
Navarro Seguridad SRL's reorganization proceeding, will present
creditors' validated claims as individual reports in the
National Commercial Court of First Instance in Buenos Aires on
April 18, 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 Navarro Seguridad and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Ferrarotti verified creditors' proofs of claim until
March 2, 2007.
Ms. Ferrarotti will also submit to court a general report
containing an audit of Navarro Seguridad's accounting and
banking records on June 1, 2007.
The informative assembly will be held on Nov. 15, 2007.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The trustee can be reached at:
Viviana Patricia Ferrarotti
Calle 21 Nro. 622 Mercedes
Buenos Aires, Argentina
NIETO HERMANOS: Trustee Verifies Proofs of Claim Until May 4
------------------------------------------------------------
Luis Alberto Pereyra, the court-appointed trustee for Nieto
Hermanos SA's bankruptcy proceeding, will verify creditors'
proofs of claim until May 4, 2007.
Under the Argentine bankruptcy law, Mr. Pereyra is required to
present the validated claims in court as individual reports.
National Commercial Court of First Instance No. 1 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 Internacional and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Pereyra will also submit a general report that contains an
audit of Internacional's accounting and banking records. The
report submission dates have not been disclosed.
Internacional was forced into bankruptcy at the behest of Norma
Amalia Prieto.
Clerk No. 2 assists the court in the proceeding.
The debtor can be reached at:
Nieto Hermanos SA
Monteagudo 460
Buenos Aires, Argentina
The trustee can be reached at:
Luis Alberto Pereyra
Avenida Presidente Roque Saenz Pena 651
Buenos Aires, Argentina
ORIGLIA NESTOR: Proofs of Claim Verification Ends April 19
----------------------------------------------------------
Aldo Alfredo Maydana, the court-appointed trustee for Origlia
Nestor Felix y Origlia Edgardo Jose S.H.'s bankruptcy
proceeding, verifies creditors' proofs of claim until
April 19, 2007.
Mr. Maydana will present the validated claims in court as
individual reports on June 4, 2007. The National Commercial
Court of First Instance in Rafaela, Santa Fe 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 Origlia Nestor 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 Origlia Nestor's
accounting and banking records will be submitted in court on
July 31, 2007.
Mr. Maydana is also in charge of administering Origlia Nestor's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Origlia Nestor Felix y Origlia Edgardo Jose S.H.
Localidad de Colonia Josefina
Santa Fe, Argentina
The trustee can be reached at:
Aldo Alfredo Maydana
26 de Enero 40
Rafaela, Santa Fe
Argentina
PIQUILLIN SRL: Individual Reports Filing in Court on July 12
------------------------------------------------------------
Jorge Alberto Vazquez, the court-appointed trustee for Piquillin
S.R.L.'s bankruptcy proceeding, will present creditors'
validated claims as individual reports in the National
Commercial Court of First Instance No. 2 in Buenos Aires on July
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 Piquillin and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Vazquez verifies creditors' proofs of claim until
May 30, 2007.
Mr. Vazquez will also submit to court a general report
containing an audit of Piquillin's accounting and banking
records on
Sept. 6, 2007.
Clerk No. 3 assists the court in the case.
The trustee can be reached at:
Jorge Alberto Vazquez
Bartolome Mitre 2593
Buenos Aires, Argentina
PROCELPA SA: Proofs of Claim Verification Is Until May 8
--------------------------------------------------------
Gabriel Churin, the court-appointed trustee for Procelpa S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
May 8, 2007.
Mr. Churin will present the validated claims in court as
individual reports on May 30, 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 Procelpa 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 Procelpa's accounting
and banking records will be submitted in court on Aug. 29, 2007.
Mr. Churin is also in charge of administering Procelpa's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Gabriel Churin
Esmeralda 114/130
Buenos Aires, Argentina
RATTO SA: Proofs of Claim Verification Deadline Is June 21
----------------------------------------------------------
Luis A. Traverso, the court-appointed trustee for Ratto S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
June 21, 2007.
Mr. Traverso 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 Ratto 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 Ratto's accounting
and banking records will be submitted in court.
Infobae did not state the reports submission date.
Mr. Traverso is also in charge of administering Ratto's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Luis A. Traverso
Reconquista 642
Buenos Aires, Argentina
RETAIL PHARMA: Individual Reports Filing in Court on June 19
------------------------------------------------------------
Ana Maria Pazos, the court-appointed trustee for Retail Pharma
S.A.'s bankruptcy proceeding, will present creditors' validated
claims as individual reports in the National Commercial Court of
First Instance No. 19 in Buenos Aires on June 19, 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 Retail Pharma and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. Pazos verifies creditors' proofs of claim until May 7, 2007.
Ms. Pazos will also submit to court a general report containing
an audit of Retail Pharma's accounting and banking records on
Aug. 16, 2007.
Clerk No. 38 assists the court in the case.
The debtor can be reached at:
Retail Pharma S.A.
Bahia Blanca 4372
Buenos Aires, Argentina
The trustee can be reached at:
Ana Maria Pazos
Maipu 374
Buenos Aires, Argentina
TEXTIL KOVIC: Trustee to File General Report in Court Tomorrow
--------------------------------------------------------------
Hector Pedro Bazzini, the court-appointed trustee for Textil
Kovic SA's reorganization proceeding, will submit to court a
general report containing an audit of the company's accounting
and banking records on April 18, 2007.
Mr. Bazzini verified creditors' proofs of claim and presented
the validated claims in court as individual reports. 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 Textil Kovic and its creditors.
Textil Kovic's creditors will vote on a settlement plan that the
company will lay on the table on Nov. 13, 2007.
The trustee can be reached at:
Hector Pedro Bazzini
Uruguay 662
Buenos Aires, Argentina
UNIDAD ASISTENCIAL: Moves Claims Filing Deadline to May 23
----------------------------------------------------------
Jorge Raul Mencia, the court-appointed trustee for Unidad
Asistencial del Oeste S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until May 23, 2007.
As reported in the Troubled Company Reporter-Latin America on
Feb. 27, 2006, creditors of Unidad Asistencial were given until
April 10, 2006 to submit proofs of claims to Mr. Mencia.
Mr. Mencia will present the validated claims in court as
individual reports on July 6, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Asistencial del 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 Asistencial del
Oeste's accounting and banking records will be submitted in
court on Sept. 4, 2007.
Mr. Mencia is also in charge of administering Asistencial del
Oeste's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Jorge Raul Mencia
Rodriguez Pena 350
Buenos Aires, Argentina
===============
B A R B A D O S
===============
BRITISH AIRWAYS: Barbados Direct Flights May Decrease Airfares
--------------------------------------------------------------
Industry players hope that the launching of British Airways'
Barbados and Trinidad direct flights will cut down regional
airfares, the Barbados Nation reports.
As reported in the Troubled Company Reporter-Latin America on
April 3, 2007, British Airways resumed flights between Barbados
and Trinidad & Tobago, after almost 20 years of absence in the
two nations.
The Nation relates that airfares throughout the region went up
from between BBD300 and BBD400 to between BBD500 and BBD800,
after British West Indies Airlines aka BWIA stopped operating on
Dec. 31, 2006.
The Barbados International Transport Ministry chief technical
officer Valarie Browne told The Nation that airfares had
increased higher than expected since BWIA closed down. British
Airways' direct flights would assist with capacity and price
control.
Direct flights would increase travelers to the region to 280
from 224, The Nation states, citing Nigel Blackett, British
Airways district manager for Barbados and St. Lucia.
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 March 2007, 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.
=============
B E R M U D A
=============
SEA CONTAINERS: Wants to Employ PWC Legal as U.K. Labor Counsel
---------------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates ask authority
from the U.S. Bankruptcy Court for the District of Delaware to
employ PricewaterhouseCoopers Legal LLP as their United Kingdom
pension and labor counsel, nunc pro tunc to Feb. 23, 2007.
SCL relates that the UK pension laws underwent significant
reform from April 2005. Given the prior decision of management
to engage Kirkland & Ellis LLP as its lead bankruptcy counsel,
the Debtors require the assistance of experienced outside
pension counsel, who can provide advice regarding the new
pension laws, during the pendency of the Chapter 11 cases.
According to SCL, PwC Legal has extensive experience with, and
knowledge of, the reformed pension laws and the Debtors' pension
schemes. The firm has the necessary expertise and background to
assist the Debtors on an ongoing basis with respect to matters
related thereto which may arise in the Chapter 11 cases. The
Debtors believe that PwC Legal is both well qualified and able
to provide the requested services in the most efficient, timely
and economical manner.
SCL tells the Court that PwC Legal's assistance is also required
in respect of UK labor law, predominantly on daily labor law
advice arising in the course of or in relation to the Debtors'
business and the Chapter 11 process, including verification and
endorsement that actions taken by the Debtors to comply with the
Bankruptcy Code do not conflict with the requirements of United
Kingdom labor law. The Debtors also need assistance on matters
where joint pension and labor law assistance is required.
SCL says it will be more expedient to have the same adviser
dealing with both joint pension and labor law aspects,
especially as the pension and labor law advisors are part of the
same practice group within PwC Legal.
As Joint Pension and Labor Law Counsel, PwC Legal will advise
the Debtors:
(1) as to issues arising from their or their subsidiaries'
participation in defined benefit pension schemes
established under U.K. law, including advice in relation
to regulatory issues and ceasing to participate;
(2) on daily issues that arise, including verification and
endorsement that the Debtors' actions comply with the
Bankruptcy Code and do not conflict with the requirements
of the U.K.; and
(3) on contentious matters, including claims brought against
the Debtors in any court or employment tribunal.
PwC Legal's services will be paid based on the firm's customary
hourly rates:
Designation Hourly Rate
----------- ---------------
Partners & Heads of Practice Areas GBP450 - GBP500
Assistant Solicitors GBP275 - GBP350
Trainee Solicitors GBP150 - GBP170
Darryl Evans, Esq., a member of PwC Legal, assures the Court
that his firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code. The members
of PwC Legal, its solicitors and barristers do not have any
connection with or represent or hold any interest adverse to the
Debtors or their estates with respect to the matters on which
the firm is to be retained.
Sea Containers Ltd. discloses that PwC Legal is a member of
PricewaterhouseCoopers LLP's network of firms and is the
associated law firm of PwC in the U.K. It is a separate legal
entity from PwC.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and
NYSEArca after the company's failure to file its 2005 annual
report on Form 10-K and its quarterly reports on Form 10-Q
during 2006 with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts. (Sea Containers Bankruptcy News, Issue No. 13;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SEA CONTAINERS: Can Lend Up to US$7 Million to Non-Debtor Unit
--------------------------------------------------------------
Sea Containers Ltd. obtained authority from the Honorable Kevin
J. Carey of the U.S. Bankruptcy Court for the District of
Delaware to provide a secured, intercompany line of credit of up
to US$7,000,000 to its non-debtor subsidiary Sea Containers
Treasury Ltd.
Intercompany Funding
Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor LLP,
in Wilmington, Delaware, disclosed that starting in 2002, SCL
initiated an operational restructuring program targeted at
evaluating and selling identified non-core assets held directly
by its foreign, non-debtor subsidiaries. The Non-Core Asset
sale program requires support from SCL, both in the form of
management oversight and through case flow support.
Mr. Greecher said many of the businesses identified as Non-Core
Assets cannot fully fund their operations on a stand-alone basis
from cash receipts alone because they are cyclical businesses
that have significant funding needs during certain parts of the
year. Hence, to maintain the operation of the businesses for a
sufficient time to allow for thorough marketing and maximization
of sale value, SCL has been required to fund their operations.
The Debtors believe that the targeted intercompany funding
accomplishes two primary objectives, both aimed at the ultimate
goal of maximizing the value of SCL's assets.
Mr. Greecher related that the Debtors have determined that
meeting the funding needs of certain non-debtor subsidiaries
will preserve the value of Non-Core Assets during a robust
marketing and sale process that will achieve its maximum value.
Also, the Debtors have identified a need to ease cash flow
problems of some non-debtor subsidiaries that could not survive
on their own to prevent creditors from initiating insolvency or
foreclosure
proceedings in foreign jurisdiction that would be detrimental on
the Debtors' reorganization and could destroy value for the
stakeholders.
Before the Debtors' filing for bankruptcy, they formed SC
Treasury as a financing subsidiary that would carry out the
business of funding the operations of international subsidiaries
that are or hold Non-Core Assets. Throughout the Chapter 11
cases, it has successfully operated to help fund operations for
various non-debtor subsidiaries.
SCL has identified a process by which funding requests are made
to SC Treasury and reviewed before any intercompany loans are
made to non-debtor foreign subsidiaries. The SC Treasury
mechanism has proven to be an effective vehicle to preserve
value in the Non-Core Assets and allow for the orderly
reorganization of the Debtors without an undue cash drain, Mr.
Greecher noted.
As of March 2, 2007, the cash needs of SCL's non-debtor foreign
subsidiaries have been lower than originally projected. As of
February 21, about US$2,520,000 remained in SC Treasury. SCL
projects SC Treasury could reallocate the remaining funds and
allow for continued financing of the non-debtor subsidiaries
through March 2007 and will run out of funds after that.
Mr. Greecher told the Court that the Debtors' decision to make
the intercompany loan to facilitate the continued operation of
the SC Treasury funding mechanism for non-debtor foreign
subsidiaries is calibrated to maximize value of their estates
for the benefit of creditors in the form of increasing sale
values for the Non-Core Assets and reducing secondary liability
claims against SCL. Indirectly, the mechanism avoids the
expense, distraction and potential value-destroying effect of a
series of international insolvency filings for the non-debtor
subsidiaries, he adds.
Funding Details
Judge Carey authorized SCL to make intercompany loans available
to non-debtor subsidiary SC Treasury in the form of a line of
credit of up to US$6,000,000, repayable on a demand basis,
secured by all assets of the SC Treasury, at an interest equal
to the London Interbank Offered Rate plus 50 basis points per
annum.
SC Treasury will be permitted to make first priority secured
loans, repayable on a demand basis, at an interest rate of LIBOR
plus 50 basis points per annum, to Sea Containers Opera Ltd.,
secured by a first priority mortgage on the Opera ferry, in an
aggregate maximum amount of US$1,000,000.
SC Treasury will likewise be permitted to make first priority
secured loans, repayable on a demand basis, at an interest rate
of LIBOR plus 50 basis points per annum, to Finnjet Bermuda
Ltd., secured by a firs priority mortgage on the Finnjet ferry,
in an aggregate maximum amount of US$2,500,000.
Moreover, SC Treasury will be permitted to make loans, repayable
on a demand basis, at an interest rate of LIBOR plus 50 basis
points per annum, to SC Finance Ireland Limited in an aggregate
maximum amount of US$900,000, which loans are secured by either:
(i) a first priority security interest in all assets of SC
Finance; or
(ii) other security and priority terms as may be agreed by
prior consent with the Official Committee of Unsecured
Creditors and the U.S. Trustee.
Subject to prior written consent of the Creditors Committee and
the U.S. Trustee, SC Treasury will be permitted to make loans in
respect of the Helsinki-Tallinn Business, in an aggregate
maximum amount of US$3,200,000, either:
(i) at an interest of LIBOR plus 50 basis points per annum to
SC Finland Oy and Superseacat Ou, secured by a first
priority interest in the Superseacat 3 and 4 vessels; or
(ii) on other security, interest, repayment and priority terms
as may be agreed.
SC Treasury will be permitted to make additional loans in an
aggregate amount of up to US$1,000,000, absent any objections by
either the U.S. Trustee or the Creditors Committee. Any loan
that does not exceed US$50,000 will not require the consent of
the Creditors Committee and the U.S. Trustee.
SC Treasury may be permitted to reallocate funding under the
Intercompany Loan on these terms, subject to certain conditions.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and
NYSEArca after the company's failure to file its 2005 annual
report on Form 10-K and its quarterly reports on Form 10-Q
during 2006 with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts. (Sea Containers Bankruptcy News, Issue No. 12 and 13;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
=============
B O L I V I A
=============
* BOLIVIA: Mining Concessions Breaching Laws to be Confiscated
--------------------------------------------------------------
Bolivia's President Evo Morales disclosed plans of seizing any
mining concessions of firms that don't comply with the country's
laws, Business News Americas reports.
President Morales commented to local paper La Razon, "Some
companies are cheating us, they are stealing from us... we must
recover those mines and return them to the state."
According to La Razon, President Morales reiterated that he will
respect private and cooperative miners that comply with the law.
BNamericas underscores that initial measures the government has
taken to revert assets to the state include:
-- granting state miner Comibol total control of the Huanuni
tin deposit, and
-- nationalization of the Vinto smelter, which was taken
from Swiss firm Glencore International.
President Morales explained to BNamericas that the two measures
have since generated greater revenues for the state. Huanuni
used to contribute US$800,000 per month to the national
treasury, while in January -- after it was taken by Comibol --
it contributed US$2 million. The Bolivian government almost had
US$3 million in cash in treasury income in March.
La Razon emphasizes that after the nationalization of Vinto, the
firm's contributions to the state increased by 13%.
"The Morales administration's policies are moving towards
recovering many businesses that had been privatized and
capitalized to the disadvantage of Bolivia. That capitalization
has been a total failure for Bolivians from a technical,
economic and social point of view," analyst Saul Escalera told
BNamericas.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
AMERICAN MEDICAL: Posts US$108.4-Mln Prelim First Quarter Sales
---------------------------------------------------------------
American Medical Systems Holdings Inc. reported preliminary
sales of US$108.4 million for the first quarter of 2007, a 47%
increase over sales of US$73.6 million in the comparable quarter
of 2006.
The Company had previously provided revenue guidance for the
quarter of US$113 million to US$118 million. The Company's
organic growth rate for the first quarter, excluding the July
2006 Laserscope acquisition, was 11%. Adjusted for foreign
exchange, the Company's base business growth rate was 9%.
The Company suffered from inventory shortfalls across several
key products, offsetting strong revenue performance in other
areas.
"In our drive to increase inventory turns over the past three
years, we have worked towards reducing safety stock levels,"
Martin J. Emerson, President and Chief Executive Officer, noted.
"This quarter, vendor quality issues, combined with performance
shortfalls in our internal manufacturing and demand planning
efforts, resulted in an inability to consistently meet demand
for several key product lines."
The Company's men's health business, which grew 5 percent in the
first quarter, excluding the impact of the Laserscope
acquisition, was hindered by product availability issues across
several product lines including erectile restoration, TherMatrx
and HPS fibers. In addition, the Company believes that customer
demand in the Company's male continence business was negatively
impacted by physicians deferring surgery as they wait for
preliminary clinical data and training classes for AdVance, the
Company's new treatment for male incontinence. Importantly, the
Company generated strong revenues from the sales of its new HPS
consoles in the first quarter despite being constrained by an
insufficient supply of HPS fibers. Including revenues from the
Laserscope acquisition, men's health grew 65 percent in the
first quarter.
The Company's women's health business grew 20% in the first
quarter even though the female continence and prolapse repair
product lines experienced significant vendor-related supply
issues. In its uterine health business, where the Company did
not experience any product supply issues, revenues in the first
quarter were more than double the revenue of the first quarter
2006.
"The performance of our supply chain in the first quarter was
disappointing as it masked strong market demand across the
majority of our products," Mr. Emerson added. "Although we
anticipate resolving our specific supply problems within the
second quarter, our new guidance reflects the recovery time
required in the marketplace from this type of disruptive event.
We remain highly confident that we are well positioned in a
dynamic, growing market and in our ability to successfully
perform to our long range goals."
Outlook
The Company estimates that its first quarter reported earnings
per share will be in the range of US$0.05 to US$0.07. The
Company has adjusted expected revenue for the full year 2007 to
US$475 to US$500 million from its previously guided revenue
range of US$490 to US$515 million. The Company also has
adjusted its previous guidance on 2007 reported earnings per
share to US$0.63 to US$0.70 from US$0.76 to US$0.81.
About American Medical Systems
Headquartered in Minnetonka, MI, American Medical Systems Inc.
-- http://www.americanmedicalsystems.com/ -- develops and
delivers pelvic health products for both men and women. AMS has
operations in Australia, Austria, Brazil, Canada, Germany, The
Netherlands, France, Spain, Portugal, the United Kingdom, and
the U.S.A.
* * *
Moody's Investors Service's confirmed its B1 Corporate Family
Rating for American Medical Systems Inc.
AMR CORP: Earnings Prompt S&P to Revise Outlook to Positive
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on AMR
Corp. (B/Positive/B-2) and subsidiary American Airlines Inc.
(B/Positive/--). The rating outlook is revised to positive from
stable.
"The positive rating outlook reflects ongoing earnings, cash
flow, and balance sheet improvements that, if sustained could
support an upgrade over the next year," said Standard & Poor's
credit analyst Philip Baggaley. Ratings on Fort Worth, Texas-
based AMR and American reflect participation in the competitive,
cyclical, and capital-intensive airline industry; erosion of
financial strength by substantial losses during 2001-2005; and a
heavy debt and pension burden. Satisfactory liquidity, with
US$4.7 billion of unrestricted cash and short-term investments
at Dec. 31, 2006, and an improving earnings trend, are
positives.
American Airlines is the world's largest airline, measured by
traffic, with solid market shares in the U.S. domestic, trans-
Atlantic, and Latin American markets, but a minimal presence in
the Pacific. American, like other large U.S. airlines, incurred
heavy losses starting in late 2000 through 2005 due to industry
wide problems of terrorism, war, high fuel prices, and
increasing price competition in the domestic market as low-cost
airlines expand. Since then, accelerating pricing improvements
in the domestic market and ongoing cost reduction efforts have
generated much improved results. In 2006, AMR earned US$231
million, compared with a US$857 million loss (a loss of US$677
million before special items) in 2005, as stronger revenue
generation and ongoing cost reductions outweighed higher fuel
prices. Fully adjusted 2006 EBITDA coverage improved to 1.8x,
from 1.2x the prior year, and funds from operations to debt
strengthened to 8% from only 3% in 2005.
AMR has substantial (US$24.6 billion) debt, leases, and
postretirement obligations, with debt to capital around 100%.
Debt is gradually declining, as the company uses free cash flow
to pay maturities and, in some cases, repurchase outstanding
notes. This effort gained a further boost with the Jan. 23,
2007, issuance of approximately US$500 million of common stock.
Although the share issuance did not cause a material change in
credit ratios, it supports management's stated commitment to
strengthening AMR's balance sheet in advance of substantial
capital expenditure requirements to modernize American's fleet.
American has indicated its intention to accelerate delivery of
47 B737-800s to begin delivery in 2009. Defined-benefit pension
plans were underfunded (on a PBO basis) by US$2.5 billion at
year-end 2006, with an added US$3.1 billion liability for other
retirement benefits. Passage of pension legislation in 2006
that allows airlines to repay funding deficits over a longer
period will ease upcoming cash requirements significantly,
though these provisions are not as generous as those available
to airlines that have "frozen" or terminated their pension
plans.
A healthy cash balance and solid internal cash generation
support credit quality, despite substantial debt maturities.
Further gains in earnings and cash flow, if they appear
sustainable, could prompt an upgrade over the coming year. The
outlook could be revised to stable if airline industry
conditions weaken, curtailing expected earnings improvements.
BANCO BMG: Wants Partner in Payroll & Retirement Loan Segment
-------------------------------------------------------------
Banco BMG Vice President Marcio Alaor de Araujo told Business
News Americas that the bank will take on a partner in the
payroll and retirement loan segment.
According to BNamericas, Banco BMG has a payroll-loan
partnership with major private sector bank Banco Itau Holding
Financiera until December 2007, which grants Itau Holding the
right of first refusal should Banco BMG decides to sell itself.
Mr. Alaor de Araujo commented to BNamericas, "But that's if we
are interested in selling and we don't have the slightest
interest. There haven't been any conversations and we're not
offering ourselves."
Banco BMG would work with another bank to share spreads on
payroll-linked loans, which is the bank's primary business
activity, BNamericas notes, citing Mr. Alaor de Araujo.
BNamericas underscores that some analysts and banking executives
predicted a slowdown in the segment in 2007. However, Mr. Alaor
de Araujo said that demand at Banco BMG has picked up since
2006.
Mr. Alaor de Araujo told BNamericas, "First quarter results were
surprising, even to us. In September last year, we were
granting an average of 12mn reais in new loans a day. In April
this year, we're seeing an average of 21mn reais a day."
The report says that Banco BMG maintains its lending growth
estimates of 25% to BRL10.0 billion by the end of 2007, compared
to the end of 2006.
Mr. Alaor de Araujo commented to BNamericas that Banco BMG's
loan book could total up to BRL10.5 billion by the end of this
year.
"Our loan book is already really big and we don't know if the
market is going to continue like this," Mr. Alaor de Araujo told
BNamericas.
Banco BMG is evaluating an initial public offering among ways of
raising capital to fund increased lending, but for the meantime,
Banco BMG has ruled out the idea. Banco BMG is watching what
the other midsize banks are doing, BNamericas says, citing Mr.
Alaor de Araujo. The bank expects net profits to increase 33.1%
to BRL350 million in 2007, compared to 2006. Its return on
equity will grow 35% this year, from 26.2% last year.
Banco BMG's net profits increased 157% to BRL129 million in the
first quarter 2007, compared to the first quarter 2006,
BNamericas states.
Banco BMG is the banking arm of Grupo BMG, which also has real
estate, food manufacturing and agro industry holdings. The bank
is a niche player focused on loans to civil servants, with
repayments taken monthly from payrolls. BMG operates mainly
through in-house representatives in state companies. It also
offers leasing and asset management services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 5, 2006, Moody's Investors Service upgraded Banco BMG SA's
long-term foreign currency deposits to Ba3, from B1. Moody's
said the rating outlook is stable.
BANCO BRADESCO: Will Use Tim Participacoes' Mobile Phone Service
----------------------------------------------------------------
Tim Participacoes will provide banking services through its GSM
mobile phones to clients of Banco Bradesco and Banco Itau
Holding Financiera, news service Folha Online reports.
Business News Americas relates that Tim Participacoes signed an
accord to allow Banco Bradesco and Banco Itau customers to use
mobile phones in:
-- paying bills,
-- securing credit,
-- checking account balances, and
-- completing transactions.
According to BNamericas, the service will be available to pre
and postpaid clients owning handsets with Wireless Application
Protocol capabilities.
Tim Participacoes has also established a partnership with Banco
do Brasil, BNamericas states.
About Tim Participacoes
TIM Participacoes SA is a wireless provider in Brazil. TIM
Celular SA and TIM Nordeste Telecomunicacoes SA are the
company's wholly owned subsidiaries. TIM Celular provides
mobile telephony services in the states of Parana, Santa
Catarina, and in the cities of Pelotas, Capao do Leao, Morro
Redondo and Turucu, in the State of Rio Grande do Sul. TIM
Nordeste provides mobile telephony services in the states of
Alagoas, Ceara, Piaui, Rio Grande do Norte, Paraiba and
Pernambuco. The company offers value-added services, including
short message services or text messaging, multimedia messaging
services (MMS), push-mail, Blackberry service, video call, turbo
mail, wireless application protocol (WAP) downloads, Web
browsing, business data solutions, songs, games, television
access, voice mail, conference calling, chats, and other content
and services.
About Banco Itau
Banco Itau Holding Financeira SA -- http://www.itau.com.br/--
is a private bank in Brazil. The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA (Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan. Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.
About Banco Bradesco
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE:
BBD) -- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management. Bradesco has branches throughout Brazil as
well as one in New York, and Japan. Bradesco offers Internet
banking, insurance, pension plans, annuities, credit card
services (including football-club affinity cards for the soccer-
mad population), and Internet access for customers. The bank
also provides personal and commercial loans, along with leasing
services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 26, 2007, Fitch Ratings affirmed these issuer default
ratings on Bradesco, with a Stable Outlook: Long-term foreign
currency at 'BB+'; Long-term local currency at 'BBB-';
Individual rating at 'B/C'; Local currency short-term at 'F3';
Short-term at 'B'; Support rating of '4'; National short-term
rating 'F1+(bra)'; and National long-term rating 'AA+(bra)'.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2006, Standard & Poor's Ratings Services maintained the
'BB+' ratings on both of Banco Bradesco SA's foreign and local
currency counterparty credit rating, however it changed the
ratings outlook to positive from stable on both ratings:
-- Foreign currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Local currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Brazil national scale rating
* to brAA+/Positive/brA-1 from brAA+/Stable/brA-
BANCO DAYCOVAL: S&P Affirms B+/B Counterparty Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its counterparty
credit rating 'B+/B' on Banco Daycoval S.A. The outlook is
stable.
A counterparty credit rating evaluates the creditworthiness of
both public and private companies, whether or not the rated
company issues in the public market.
"The ratings on Banco Daycoval incorporate the challenge of
growing its credit portfolio with good risk management to
maintain its profitability level and very competitive
environment," said Standard & Poor's credit analyst Tamara
Berenholc. These risk factors are tempered by the bank's
position as an important player in its niche segment with a long
track record and expertise; its strong asset quality indicators,
despite lending expansion; higher funding diversification and
stronger liquidity than that of peers with strong liquidity; and
historically strong profitability.
The stable outlook incorporates Standard & Poor's expectation
that the bank will be able to implement its growth strategy
successfully and sustain its good asset quality indicators and
profitability. The bank also incorporates maintaining good
liquidity.
The outlook could be revised to positive or the rating could be
raised depending on the bank's capacity to increase and sustain
its market share in its niche segment; this would have to be
done without damaging the bank's strong asset quality indicators
and maintaining profitability above peers' levels. Such a
positive rating action would also depend on the bank's ability
to grow its funding base while maintaining strong liquidity. On
the other hand, the stable outlook could be revised to negative,
or ratings could be lowered if there is a significant
deterioration in the bank's asset quality ratios (vis-a-vis its
current levels), if the bank's liquidity and funding are
pressured, or if profitability levels are significantly affected
by the competitive market.
Banco Daycoval, a Brazilian midsize bank, was founded in 1989.
It operates 15 branches concentrated in the south and southeast
of the country. Its main business is commercial lending to
small and medium enterprises, with a diversified portfolio in
agribusiness, automotives, commerce, foods, financial services,
general services, manufacturing, and textiles. Daycoval
established its trade finance department in 1995 to satisfy the
increasing demand for trade finance instruments.
BANCO FIBRA: S&P Affirms B+/B Counterparty Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+/B'
counterparty credit rating on Banco Fibra S.A. At the same
time, the 'B+' rating on Banco Fibra's senior unsecured issues
was affirmed. The outlook is stable.
A counterparty credit rating evaluates the creditworthiness of
both public and private companies, whether or not the rated
company issues in the public market.
"The ratings on Banco Fibra incorporate the bank's relatively
lower profitability when compared to that of its peers (although
this is improving)," said Standard & Poor's credit analyst
Beatriz Degani. The ratings also account for the challenge to
increase and build a diversified funding base to adequately
support growth; the fierce competition affecting most banks
operating in the midsize companies segment; and potentially
higher delinquency ratios in the future given expected increases
in consumer finance loans in proportion to the whole credit
portfolio. These risk factors are tempered by the bank's strong
asset-quality indicators; its good track record and expertise in
the corporate and middle-market segments; adequate liquidity and
provisioning metrics to face economic downturns and cover
unexpected losses; and the benefits of the implicit support of
its shareholder.
Banco Fibra's credit operations are fairly concentrated in its
core business of low corporate and middle-market segments, in
which Standard & Poor's believe the bank has the necessary know-
how, agility, and customer service to face fierce competition
and sustain its position as a relevant player. While fierce
competition from larger banks should pressure margins further,
Standard & Poor's believe the bank will be able to gradually
replace low corporate operations with middle-market credits,
strengthening its niche strategy and sustaining its margins.
Banco Fibra's operations in the retail market, previously
nonexistent, reached 10% of the bank's credit operations in 2006
and should grow its proportion in the portfolio in the years
ahead to about 20%-30%, diversifying the bank's portfolio mix.
This move should also enhance Banco Fibra's profitability, given
the higher spreads of this segment. Banco Fibra's adjusted
Return On Assets or ROA (excluding repos or repurchase
agreements) was 1.8% in December 2006, gradually improving from
1.5% in past years, but still below that of its local peers.
The stable outlook reflects Standard & Poor's expectation that
the bank will be able to sustain its good asset quality
indicators at a rate of less than 4% overall, while growing its
funding base at a strong pace and maintaining adequate
capitalization to cope with projected lending growth. In
addition, Standard & Poor's also expect profitability to improve
to an adjusted ROA of about 2% further on. The outlook could be
revised to negative or the ratings could be lowered if there is
a significant deterioration in Banco Fibra's asset quality
ratios (vis-a-vis the market average levels); if the bank's
liquidity and funding are pressured; or if it fails to show more
robust profitability levels due to strong competition. On the
other hand, the outlook could be revised to positive or there
could be an elevation of the ratings in the longer term,
depending on the bank's ability to successfully deliver a
consistent growth strategy for a longer period. Such a positive
rating action would also depend on the bank building a more
diversified and stable funding base and sustaining its adequate
liquidity position and capitalization levels.
Brazilian bank Banco Fibra S.A. is a commercial midsize bank
with total assets of BRL10.3 billion (US$4.7 billion) as of June
2006. Despite its relatively small market share, Banco Fibra is
among the top banks operating in the small corporates and
middle-market companies segment. Banco Fibra is the financial
arm of a large traditional conglomerate in Brazil, owned by the
Steinbruch family, with important operations in the textile
(Vicunha T^xtil; not rated), steel (Companhia Siderurgica
Nacional; BB/Stable/--), and gas (CEGAS; not rated) sectors.
BANCO INDUSVAL: S&P Ups Counterparty Credit Rating to B+ from B
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit rating to 'B+' from 'B' on Brazilian midsize
bank, Banco Indusval S.A. The outlook is stable.
"The upgrade on Indusval is based on its track record of
thriving and being competitive in its niche segment of servicing
the middle market while improving its financial profile," said
Standard & Poor's credit analyst Tamara Berenholc. Banco
Indusval increased its market position during the past two years
by growing its middle-market credit operations at a higher pace
than those of peers while maintaining strong credit risk
management. Supporting its credit expansion, Banco Indusval
improved its funding profile by growing its deposit base and
foreign funding lines while maintaining strong liquidity
management.
The ratings on Banco Indusval reflect the challenge of searching
for a lower cost and diversified funding base, and to gain scale
to minimize the pressure on the bank's profitability, given the
reduction in spreads. These credit risk factors are partially
offset by Banco Indusval's good position as a niche bank in the
middle-market segment, relying on the agility of its decision-
making process and strong business knowledge; its good track
record regarding credit quality, which is supported by the
bank's expertise in using receivables as collateral; and the
bank's strong liquidity position and good profitability.
The stable outlook incorporates Standard & Poor's expectation
that the bank will be able to sustain its competitive position
in the middle-market segment while keeping asset quality
indicators under control and a Return on Assets or ROA in the
1.5%-2% range. The outlook also incorporates the maintenance of
a good liquidity ratio.
The stable outlook could be revised to negative or the ratings
could be lowered if there is a significant deterioration in
Banco Indusval's asset-quality ratios (NPL ratios of more than
4%-5%) or if its liquidity, funding, and capital are pressured.
Standard & Poor's do not expect a positive rating action during
the medium term. It would depend on the bank's success in
significantly increasing its market position despite
competition, while reducing the natural concentration risk of
its assets and funding. The bank would have to be able to
adequately manage its credit risk with NPL ratios in the 1%-2%
range and profitability ratios in the 2%-2.5% range.
BANCO ITAU: Will Use Tim Participacoes' Mobile Phone Service
------------------------------------------------------------
Tim Participacoes will provide banking services through its GSM
mobile phones to clients of Banco Itau Holding Financiera and
Banco Bradesco, news service Folha Online reports.
Business News Americas relates that Tim Participacoes signed an
accord to allow Banco Bradesco and Banco Itau customers to use
mobile phones in:
-- paying bills,
-- securing credit,
-- checking account balances, and
-- completing transactions.
According to BNamericas, the service will be available to pre
and postpaid clients owning handsets with Wireless Application
Protocol capabilities.
Tim Participacoes has also established a partnership with Banco
do Brasil, BNamericas states.
About Tim Participacoes
TIM Participacoes SA is a wireless provider in Brazil. TIM
Celular SA and TIM Nordeste Telecomunicacoes SA are the
company's wholly owned subsidiaries. TIM Celular provides
mobile telephony services in the states of Parana, Santa
Catarina, and in the cities of Pelotas, Capao do Leao, Morro
Redondo and Turucu, in the State of Rio Grande do Sul. TIM
Nordeste provides mobile telephony services in the states of
Alagoas, Ceara, Piaui, Rio Grande do Norte, Paraiba and
Pernambuco. The company offers value-added services, including
short message services or text messaging, multimedia messaging
services (MMS), push-mail, Blackberry service, video call, turbo
mail, wireless application protocol (WAP) downloads, Web
browsing, business data solutions, songs, games, television
access, voice mail, conference calling, chats, and other content
and services.
About Banco Bradesco
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE:
BBD) -- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management. Bradesco has branches throughout Brazil as
well as one in New York, and Japan. Bradesco offers Internet
banking, insurance, pension plans, annuities, credit card
services (including football-club affinity cards for the soccer-
mad population), and Internet access for customers. The bank
also provides personal and commercial loans, along with leasing
services.
About Banco Itau
Banco Itau Holding Financeira SA -- http://www.itau.com.br/--
is a private bank in Brazil. The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA (Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan. Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2007, Fitch changed the outlook of these ratings of
Banco Itau Holding Financiera SA: foreign currency IDR at 'BB+';
outlook to positive from stable; local currency IDR at 'BBB-';
outlook to positive from stable; and national Long-term rating
at 'AA+(bra)'; outlook to positive from stable.
BANCO NACIONAL: Inks BRL1.76 Billion Deal with Transpetro
---------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social President
Luiz Inacio Lula da Silva has signed a contract for the
construction of nine oil ships by Rio Naval Consortium, from Rio
de Janeiro. The undertaking was rendered feasible through
BNDES' financing of BRL1.76 billion to Transpetro, which
corresponds to 90% of the total investment projected of
BRL1.96 billion. BNDES' president, Demian Fiocca, participated
in the solemnity.
The sophisticated credit structure contemplates two distinct
phases. The first one, during the ship building period, will
involve financing to Transpetro in the amount of BRL705.7
million, equivalent to 36% of the entire investment amount, and
financing to the building shipyard in the amount of BRL901.8
million, equivalent to 46% of the total investment. To that
total, own Rio Naval resources will be added, in the amount of
BRL156.8 million - representing 8% of the investment. During
the second phase, after the each ship is finished, Transpetro
will reimburse the BRL156.8 million invested by the shipyard and
will then count on BNDES financing support of 90% of the ship
construction amount.
The Rio Naval Consortium, winner of the public tender promoted
by Transpetro, is constituted by MPE S.A. - Participacoes e
Administracao, main partner with 90% of the company's total
shares, and by Sermetal Estaleiros Ltda., with the remaining
10%.
Nine oil ships - five Aframax-type ships, with capacity of
111,730 tpb (gross ton) and four Panamax-type ships, with 72,900
tpb of capacity - will be built in the old Ishibras Shipyard
(State of Rio de Janeiro), currently licensed to Sermetal.
Located at the banks of the Guanabara Bay, in the City of Rio de
Janeiro, the shipyard counts on a working area of approximately
400 thousand square meters.
The project will generate approximately 3 thousand direct and
more than 9 thousand indirect job openings, mainly within the
naval parts industry and activities and services.
Rio Naval's partners will implement a wide modernization project
in the shipyard's industrial facilities, with the acquisition of
new equipments and investments on training and habilitation for
specialized labor. In order for that to be accomplished, it was
signed a technology transfer agreement with the Korean company
Hyundai, largest world manufacturer of ships. That agreement
provides for the training of Brazilian workers, technicians and
engineers in Korean shipyards. In the same manner, Korean
supervisors will be accompanying and auditing the manufacturing
of ships at Rio Naval.
The Aframax tank ships, smaller in size, are made for docking in
African ports due to the somewhat shallow waters. As to the
Panamax ships, these bear maximum dimensions that allow passage
through the Panama Canal.
Among the main advantages of the project financed by BNDES, one
may highlight the reinvigorating drive of the Brazilian Merchant
Marine, the reappearance of the large ship building industry in
Brazil, the heating up of various industrial sectors, such as
the metallurgic sector, iron and steel segment, chemical segment
and electric installations segment to supply the nationalization
objective of up to 65% of the vessels, and the technological,
economic and social development of the country.
The time span for the construction of the first Aframax ship is
estimated in 20 months and the end date of the last Panamax is
16 months, period in which the functional body of the shipyard
will increase its expertise in naval construction.
The expectation is that Transpetro's orders would enable
Brazilian shipyards to invest on modernization, technology and
training, becoming internationally competitive by the end of the
process.
The nine ship-tanks are inserted within Transpetro's Fleet
Modernization and Expansion Program for the period encompassing
2005/2015, which provides for the construction of 42
embarkations, given that 26 ships will be built in this first
phase. This program represents the reheating of oil ship
construction industry in Brazil, which hadn't received major
orders for the past 20 years. Besides increasing the number of
ships that comprise Transpetro's fleet, the investments program
holds as main objective to modernize and reduce the average
useful life of the company's fleet of ships.
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.
BANDEIRANTE ENERGIA: Moody's Reviews Ratings and May Upgrade
------------------------------------------------------------
Moody's America Latina placed all ratings of Bandeirante Energia
S.A. under review for possible upgrade.
The impacted ratings are:
-- Senior unsecured corporate family rating: Ba3 (Global
Local Currency); A3.br Brazilian National Scale
-- BRL250 million senior unsecured local currency debentures
due in 2011: Ba3 (Global Local Currency); A3.br Brazilian
National Scale
The rating action was prompted by the company's overall improved
debt protection metrics and liquidity position including FFO
(Funds from Operations) / Total Adjusted Debt (net of regulatory
assets) of 67.5% and cash position plus free cash flow to short-
term adjusted debt (net of short-term regulatory assets) over
130% at Dec. 31, 2006. Moody's review of Bandeirante Energia's
ratings will focus on the company's ability to sustain its
credit metrics and liquidity position in the near and
intermediate term while executing mandatory investments.
Bandeirante Energia S.A, headquartered in Sao Paulo, Brazil, is
an electricity distribution utility, serving 1,365,000 clients
in the eastern portion of the industrialized state of Sao Paulo.
In 2006 Bandeirante Energia reported net revenues of BRL2,040
million (US$926 million).
BEARINGPOINT INC: To Open SAP Center in Sao Paulo
-------------------------------------------------
BearingPoint Inc. will open a Systems Applications and Products
in Data Processing or SAP Center of Excellence for utilities in
Sao Paulo, Brazil. The center will serve to concentrate
BearingPoint's SAP Utilities practice in Brazil, with more than
180 trained, certified and experienced consultants dedicated to
SAP's Utilities Industry Solution, which includes commercial
processes such as customer care, billing, work and device
management, loss prevention and collections.
"Based on our accumulated experience delivering more than 12 SAP
ERP projects and four SAP CRM billing projects for the utilities
sector in Brazil, our center will focus on further developing
and deploying our templates and accelerated solutions, as well
as building composite applications based on SAP's Netweaver
platform in support of our clients worldwide," said Oscar Caipo,
BearingPoint's Brazil country leader.
Deep industry and process knowledge combined with extensive
experience deploying SAP's utilities industry solution allow
BearingPoint to help successfully transform utilities companies
and prepare them for the highly competitive market they
currently face. This Center of Excellence will combine this
knowledge and experience and make it available for
BearingPoint's customers to help support their successful
implementations.
"Establishing this center of excellence solidifies our
commitment to work with SAP globally in the utilities sector and
to develop the next generation of enterprise-level service-
oriented architecture and business-process platform solutions,
as well as innovative, verticalized composite applications,"
said Aysin Neville, senior vice president and SAP global leader
with BearingPoint. "The applications further demonstrate how
BearingPoint helps its clients achieve measurable benefits from
their technology investments by focusing on buyer-based
innovation and business transformation."
About SAP
Founded in 1972 as Systems Applications and Products in Data
Processing, SAP is the recognized leader in providing
collaborative business solutions for all types of industries and
for every major market.
Serving more than 38,000 customers worldwide, SAP is the world's
largest business software company and the world's third-largest
independent software provider overall. SAP has a rich history
of innovation and growth that has made it a true industry
leader. Today, SAP employs more than 39,300 people in more than
50 countries. SAP professionals are dedicated to providing the
highest level of customer service and support.
About BearingPoint
Headquartered in McLean, Virginia, BearingPoint, Inc., (NYSE:
BE) -- http://www.BearingPoint.com/-- provides of management
and technology consulting services to Global 2000 companies and
government organizations in 60 countries worldwide. The firm
has approximately 17,500 employees, and major practice areas
focusing on the Public Services, Financial Services and
Commercial Services markets.
BearingPoint has global locations including in Indonesia,
Australia, Austria, China, India, Japan, Mexico, Portugal,
Singapore and Thailand.
* * *
Moody's Investors Service's rated BearingPoint Inc.'s 2.5%
Series A Convertible Subordinated Debentures due 2024 at B3.
BLOCKBUSTER INC: Appoints Nick Shepherd as Senior Exec. VP & COO
----------------------------------------------------------------
Blockbuster Inc. has named veteran Nick Shepherd Senior
Executive Vice President and Chief Operating Officer. In his
new position, Mr. Shepherd will be responsible for all aspects
of the company's global store and online operations. He will
continue reporting to John F. Antioco, Blockbuster Chairman and
CEO.
"This appointment reinforces Blockbuster's ongoing efforts to
maximize the synergies of its online and retail store operations
so that we can continue to build on the success of BLOCKBUSTER
Total Access(TM) and better serve our customers," said John
Antioco, Blockbuster Chairman and CEO. "This move also
recognizes the many valuable contributions Nick has made to
Blockbuster in his 12 years with the company. His unique
domestic and international experience, combined with his keen
leadership skills, is a tremendous benefit to Blockbuster."
Prior to this announcement Mr. Shepherd was executive vice
president and president, worldwide stores for Blockbuster. He
now assumes responsibility for Blockbuster's online operations,
and continues to be responsible for Blockbuster's global
marketing, product, merchandising and distribution efforts, and
studio relations.
Mr. Shepherd has been with Blockbuster since 1995 and has served
in a variety of capacities including president worldwide stores;
executive vice president and chief marketing and merchandising
officer; chief concept officer; senior vice president of
international; and vice president and managing director of the
company's United Kingdom business.
Prior to joining Blockbuster, Mr. Shepherd worked in the retail
consumer electronics industry, the restaurant and retail food
store business, and food and drink manufacturing. He has held
senior positions both in the UK and other foreign countries with
a number of major corporations, including Grand Metropolitan
Plc, Allied Lyons Plc and British retailer Kingfisher Plc.
Dallas-based Blockbuster Inc. (NYSE: BBI) --
http://www.blockbuster.com/-- is a leading global provider of
in-home movie and game entertainment, with over 8,000 stores
throughout the Americas, Europe, Asia and Australia. The
company maintains operations in Brazil, Mexico, Denmark, Italy,
Taiwan, Australia, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 29, 2007, Standard & Poor's Ratings Services raised the
ratings, including the Corporate Credit Rating, on Blockbuster
Inc. to 'B' from 'B-'. This action reflects the improved
operating performance and improved credit protection metrics for
the company. At the same time, Standard & Poor's raised the
recovery rating on the bank facility to '3' from '5', indicating
the expectation for meaningful (50%-80%) recovery of principal
in the event of payment default. Standard & Poor's affirmed the
stable outlook.
BRASKEM: Concludes US$1.2 Billion Bridge Loan Talks
---------------------------------------------------
Braskem SA said in a statement that it has ended talks to obtain
a US$1.2-billion bridge loan to fund the acquisition of refiner
and fuel distributor Ipiranga's petrochemical assets and the
future delisting of company Copesul.
According to Braskem's statement, the transaction was structured
by financial banks ABN Amro Real, Calyon and Citibank. It
includes a two-year credit facility, which will be repaid at
0.35% above the Libor rate in the first year and 0.55% above
Libor in the second.
Braskem Chief Financial Officer said in a statement, "The
positive market evaluation about the new size of the company,
the synergies to be captured and the strategic benefits
resulting from the Ipiranga acquisition, combined with the
confidence in Braskem's financial strength, proved crucial to
the success of the operation."
Mr. Fadigas told Business News Americas that Braskem was able to
raise the loan due to:
-- favorable market situation,
-- positive liquidity, and
-- attractive borrowing conditions.
Braskem's statement says that the refinancing of the bridge loan
will be concluded under the right conditions, as the firm will
focus on keeping its dept proportional to its cash flow.
Braskem, Petroleo Brasileiro and Ultrapar have acquired
Ipiranga, which mainly works in the petchem industry through
Copesul, BNamericas states.
Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins producer
in Latin American, and is among the three largest Brazilian-
owned private industrial companies. The company operates 13
manufacturing plants located throughout Brazil, and has an
annual production capacity of 5.8 million tons of resins and
other petrochemical products.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 26, 2007, Fitch Ratings has affirmed its BB+ ratings on
Braskem S.A. and Braskem International following the
announcement by Braskem, Petrobras and the Ultra Group that they
have reached an agreement to acquire the Ipiranga Group's
petrochemical, refining and fuel distribution assets.
Fitch also affirmed these ratings:
Braskem S.A.
-- Foreign currency issuer default rating at 'BB+';
-- Local currency issuer default rating at 'BB+';;
-- Senior unsecured notes 2008, 2014 at 'BB+';
-- Senior unsecured Perpetual Bonds at 'BB+';
-- Senior unsecured notes 2017 at 'BB+';
-- National rating at 'AA (bra)';
-- Debentures 12th Issuance at 'AA (bra)'; and
-- Debentures 13th Issuance at 'AA (bra)'.
Braskem International
-- Senior unsecured notes 2015 at 'BB+'.
COMPANHIA ENERGETICA: Launches Irape-Aruacai Transmission Line
--------------------------------------------------------------
Companhia Energetica de Minas Gerais said in a statement that it
has started the operations of its 230kV, 61-kilometer Irape-
Aruacai transmission line.
Business News Americas relates that Companhia Energetica
launched construction works for the transmission line in
September 2006. It required about BRL65 million in investments.
Companhia Energetica will run and maintain the line, which will
transport power from the firm's 360-megawatt Irape hydro plant,
crossing five municipalities in Minas Gerais, BNamericas states.
Companhia Energetica de Minas Gerais -- http://www.cemig.com.br/
-- is one of the largest and most important electric energy
utilities in Brazil due to its strategic location, its technical
expertise and its market. Cemig's concession area extends
throughout nearly 96.7% of the State of Minas Gerais, Brazil.
Cemig owns and operates 52 power plants, of which six are in
partnership with private enterprises, relying on a predominantly
hydroelectric energy matrix. Electric energy is produced to
supply more than 17 million people living in the state's 774
municipalities. In addition to those 52 plants, another three
are currently under construction.
Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).
As reported on March 8, 2007, Moody's Investors Service assigned
corporate family ratings of Ba2 on its global scale and Aa3.br
on its Brazilian national scale to Companhia Energetica de Minas
Gerais aka CEMIG. The rating action triggered the upgrade of
CEMIG's outstanding debentures due in 2009 and 2011, and of the
BRL250 million 2014 senior unsecured guaranteed debentures of
its wholly-owned subsidiary, Cemig Distribuicao S.A. to Ba2 from
B1 on the global scale and to Aa3.br from Baa2.br on the
Brazilian national scale, concluding the review process
initiated on Aug. 8, 2006.
EMI GROUP: Resolves Royalties Dispute with The Beatles
------------------------------------------------------
EMI Group Plc settled its GBP30 million royalties dispute with
The Beatles through Apple Corps, the company that handles
Beatles' business affairs, reports say.
According to the International Herald Tribune, Apple Corps filed
a lawsuit against EMI in 2005, claiming that EMI was not living
up to the terms of its contract in releasing Beatles' music and
that EMI owed the Beatles GBP30 million in royalties and other
payments.
Both EMI and Apple Corps did not disclosed the terms of the
settlement, which ended 18-months of legal proceedings after
two-year negotiations, BBC News relates.
"I can confirm that we have reached a mutually acceptable
settlement and that we are not going to say anything more than
that," an EMI spokeswoman was quoted by BBC as saying.
About EMI
Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20. The group has operations in Brazil,
China, and Hungary. The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.
At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.
* * *
As reported in the TCR-Europe on March 1, Standard & Poor's
Ratings Services placed its ratings on Warner Music Group Corp.,
including the 'BB-' corporate credit rating, on CreditWatch with
negative implications, following the company's statement that it
is exploring a possible merger agreement with EMI Group PLC (BB-
/Watch Neg/B), which EMI management has confirmed.
According to a TCR-Europe report on Jan. 17, Moody's Investors
Service downgraded EMI Group Plc's Corporate Family and senior
debt ratings to Ba3 from Ba2. All ratings remain under review
for possible further downgrade.
EMPRESA ENERGETICA: Moody's Reviews Ratings and May Upgrade
-----------------------------------------------------------
Moody's America Latina placed all ratings of Empresa Energetica
do Mato Grosso do Sul S.A. aka Enersul under review for possible
upgrade.
The impacted ratings are:
-- Senior unsecured corporate family rating: Ba3 (Global
Local Currency); A2.br Brazilian National Scale
-- BRL250 million senior unsecured local currency debentures
due in 2011: Ba3 (Global Local Currency); A2.br Brazilian
National Scale.
The rating action is prompted by the company's overall improved
debt protection credit metrics and liquidity position including
FFO (Funds from Operations) / Total Adjusted Debt (net of
regulatory assets) of 51% and cash position plus free cash flow
to short-term adjusted debt (net of short-term regulatory
assets) over 130% at Dec. 31, 2006. Moody's review of Enersul's
ratings will focus on the company's ability to sustain its
credit metrics and liquidity position in the near and
intermediate term while executing mandatory investments.
Empresa Energetica de Mato Grosso do Sul S.A. aka Enersul,
headquartered in Campo Grande, Brazil, is an electricity
distribution utility serving approximately 690,000 clients in
the agrarian state of Mato Grosso do Sul. In 2006 Enersul
reported net revenues of BRL824 million (US$374 million).
ESPIRITO SANTO: Moody's Reviews Ratings on Better Credit Metrics
----------------------------------------------------------------
Moody's America Latina placed all ratings of Espirito Santo
Centrais Eletricas S.A. aka Escelsa under review for possible
upgrade.
The impacted ratings are:
-- BRL264 million senior unsecured local currency debentures
due in 2011: Ba3 (Global Local Currency); A3.br Brazilian
National Scale.
-- US$114 million foreign currency senior unsecured notes due
July 2007: Ba3
The rating action is prompted by the company's overall improved
debt protection credit metrics and liquidity position including
FFO (Funds from Operations)/ Total Adjusted Debt (net of
regulatory assets) of 60.3% and cash position plus free cash
flow to short-term adjusted debt (net of short-term regulatory
assets) over 130% at Dec. 31, 2006. Moody's review of Escelsa's
ratings will focus on the company's ability to sustain its
credit metrics and liquidity position in the near and
intermediate term while executing mandatory investments.
Espirito Santo Centrais Eletricas S.A. aka Escelsa,
headquartered in Vitoria, Brazil, is an electricity distribution
utility, serving 1,058,900 clients in the state of Espirito
Santo. In 2006 Escelsa reported net revenues of BRL1,281
million (US$581 million).
NOSSA CAIXA: Providing Home Loans to State Employees
----------------------------------------------------
Banco Nossa Caixa said in a statement that it will provide home
loans to state workers through Companhia de Desenvolvimento
Habitacional e Urbano do Estado de Sao Paulo, the Sao Paulo
state urban housing development agency.
A Nossa Caixa spokesperson told Business News Americas that the
bank will grant BRL20 million through the program. The state
government will partially subsidize the loans, keeping interest
rates at 6% yearly for up to 20 years. Nossa Caixa will get the
subsidies when a home loan contract is signed. Loan payments
will de deducted directly from the employees' salaries to keep
the default rate low.
Companhia de Desenvolvimento funding had high default rates in
the past, BNamericas states, citing the spokesperson.
Headquartered in Sao Paulo, Brazil, Banco Nossa Caixa SA --
http://www.nossacaixa.com.br/-- operates as a multiple bank
offering banking and financial services through commercial and
loan portfolios, including real estate and foreign exchange, as
well as administering credit cards. Through its subsidiary, it
operates with private pensions. Nossa Caixa uses demand, saving
and time deposits, which include judicial deposits, to fund its
operations. The main focus of Nossa Caixa is to attend
individuals, especially public employees and small and medium-
sized companies in Sao Paulo, as well as state and municipal
government agencies. As the official bank for the government of
the State of Sao Paulo, it administers the state's resources and
state lotteries and takes care of the payroll of the indirect
state administration and part of the direct administration. As
of Dec. 31, 2005, the Bank's network consisted of 2,579
attendance points in its distribution network.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 4, 2006, Moody's Investors Service upgraded Banco Nossa
Caixa S.A.'s long-term foreign currency deposits to Ba3 from
Ba1. Moody's said the ratings outlook was stable.
PETROLEUM GEO-SERVICES: Earns US$298.6 Million in Full Year 2006
----------------------------------------------------------------
Petroleum Geo-Services ASA reported net income of
US$298.6 million on revenues of US$1.31 billion for the year
ended Dec. 31, 2006, compared with net income of US$112.6
million on revenues of US$888 million for the year ended
Dec. 31, 2005. 2005 results included US$107.3 million in debt
redemption and refinancing costs, absent in 2006.
The increase in consolidated revenues is primarily attributable
to the increase in Marine and Onshore contract revenues and
improved Marine multi-client pre-funding revenues.
Operating profit was US$409.9 million in 2006, up US$279.7
million from operating profit of US$130.2 million in 2005.
The company recorded income from discontinued operations, net of
tax, of US$69.2 million in 2006, compared with income from
discontinued operations, net of tax, of US$209.6 million in
2005. Discontinued operations include the operations of the
Production segment, which was spun off in June 2006, as well as
the company's oil and gas subsidiary, Pertra, which was sold on
March 1, 2005.
For the fourth quarter ended Dec. 31, 2006, the company reported
net income of US$78.7 million on revenues of US$361 million,
compared with a net loss of US$89 million on revenues of
US$264.1 million in the prior period fourth quarter. Fourth
quarter 2005 results included net income from discontinued
operations of US$17.9 million and debt redemption and
refinancing costs of US$103.8 million.
Svein Rennemo, PGS president and chief executive officer,
commented: "2006 was the best year ever for PGS. We delivered
substantial growth in revenues, operating profit and cash flow,
driven by strengthened market conditions and improved
operational performance. Marine realized a record high contract
margin, while Onshore improved its profitability significantly
from 2005. We experienced a stronger underlying demand for
multi-client seismic in 2006 compared to 2005 and despite fewer
licensing rounds internationally we further improved our late
sales. Our Gulf of Mexico depth processing products, strong
performance of our library offshore West Africa and increased
demand for our Brazil library were important elements in this
success.
"We expect a continued strong seismic market driven by increased
E&P spending worldwide and the demand for more advanced seismic
solutions. Construction of the new Ramform Sovereign remains on
budget and on time. Acquisition of the large wide azimuth
multi-client survey in Gulf of Mexico, Crystal, is progressing
according to plan. Both projects illustrate our efforts to
increase high-end capacity and to provide our customers with
more advanced seismic technology."
At Dec. 31, 2006, cash and cash equivalents amounted to
US$124 million compared to US$121.5 million at Dec. 31, 2005,
and US$101.2 million at Sept. 30, 2006. Restricted cash
amounted to US$18.7 million at Dec. 31, 2006, compared to
US$22.5 million at Dec. 31, 2005.
Cash provided by operating activities increased to US$563.4
million during the year ended Dec. 31, 2006, from cash provided
by operating activities of US$280.7 million during 2005.
Net interest bearing debt (interest bearing debt less cash and
cash equivalents, restricted cash and interest bearing
investments) was US$195.5 million at Dec. 31, 2006, compared
with net interest bearing debt of US$828.7 million at Dec. 31,
2005.
The company has a US$150 million revolving credit facility
maturing in 2010, out of which US$8.9 million was used for
letter of credits at Dec. 31, 2006, while the remaining amount
was undrawn.
At Dec. 31, 2006, the company's unaudited consolidated financial
statements showed US$1,234.6 million in total assets, US$789.8
million in total liabilities, and US$444.8 million in total
shareholders' equity.
About Petroleum Geo-Services
Petroleum Geo-Services ASA (NYSE: PGS) -- http://www.pgs.com/--
is a geophysical company providing a broad range of seismic and
reservoir services, including acquisition, processing,
interpretation, and field evaluation. The company also
possesses the world's most extensive multi-client data library.
PGS operates on a worldwide basis with headquarters at Lysaker,
Norway. The company reports its business in two segments:
Marine, which consists of streamer seismic data acquisition,
marine multi-client library, data processing and reservoir
consulting; and Onshore, which consists of all seismic
operations on land and in shallow water and transition zones,
including onshore multi-client library. Its operations in Latin
America are located in Brazil.
* * *
As of Feb. 27, Petroleum Geo-Services carries Moody's Ba3 long-
term corporate family and bank loan debt rating with a stable
outlook.
In addition, Standard & Poor's rates the company's senior
unsecured debt and long-term issuer default ratings at BB- with
a stable outlook.
PETROLEUM GEO-SERVICES: Moody's Gives 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 corporate families in the Gaming, Lodging
and Leisure, Manufacturing, and Energy sectors last week, the
rating agency confirmed its Ba3 Corporate Family Rating for
Petroleum Geo-Services ASA.
Moody's also assigned a Ba3 probability of default rating to the
company.
Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.
Projected
POD LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- --------
US$850 million
Senior Secured Bank
Credit Facility
Due 2012 Ba3 LGD4 57%
US$150 million
Senior Secured Bank
Credit Facility
Due 2010 Ba3 LGD4 57%
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%).
Petroleum Geo-Services ASA (NYSE: PGS) -- http://www.pgs.com/--
is a geophysical company providing a broad range of seismic and
reservoir services, including acquisition, processing,
interpretation, and field evaluation. The company also
possesses the world's most extensive multi-client data library.
PGS operates on a worldwide basis with headquarters at Lysaker,
Norway. The company reports its business in two segments:
Marine, which consists of streamer seismic data acquisition,
marine multi-client library, data processing and reservoir
consulting; and Onshore, which consists of all seismic
operations on land and in shallow water and transition zones,
including onshore multi-client library.
USINAS SIDERURGICAS: Deutsche Bank Holds "Buy" Recommendation
-------------------------------------------------------------
Deutsche Bank analysts have reaffirmed their "buy"
recommendation on Usinas Siderurgicas de Minas Gerais due to the
positive impact of a US$1-billion secondary offering of the
firm's common shares by compatriot miner Companhia Vale do Rio
Doce and pension fund Previ, Business News Americas reports.
As reported in the Troubled Company Reporter-Latin America on
April 13, 2007, Usinas Siderurgicas said that its shareholders
Companhia Vale and Previ will sell about 16.4 million common
shares through a secondary offer. Companhia Vale will sell
12.035 million common shares. Previ will sell 4.365 million
common shares.
Deutsche Bank said in a statement that the offering of 16.4
million shares -- 8.6% of total shares outstanding -- will
further boost Usinas Siderurgicas' investability. The free
float will rise to 65% from 56% and daily trading volume will
grow by US$15 million from US$60 million.
Usinas Siderurgicas would become Latin America's 13th most
liquid firm, BNamericas notes, citing Deutsche Bank, which
reaffirmed its BRL105 price target for the company.
The potential de-listing of Arcelor Brasil from the local stock
market will boost demand for the remaining liquid steel firms
trading in Latin America, BNamericas states.
Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel. Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries. Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America. The company also sells in China and Japan.
The Troubled Company Reporter - Asia Pacific reported on
Jan. 3, 2007, that Standard & Poor's Ratings Services revised
its outlook on Brazil-based steelmaker Usinas Siderurgicas de
Minas Gerais S.A., aka Usiminas, to positive from stable.
Standard & Poor's also said that it affirmed its 'BB+' local and
foreign currency corporate credit ratings on Usiminas.
* BRAZIL: Obtains US758,000 Loan from Multilateral Investment
-------------------------------------------------------------
The Inter-American Development Bank's Multilateral Investment
Fund approved a US$758,000 grant to the Centro de Integracao de
Negocios -- Center for Business Integration -- to support small
firms access to corporate supply chains.
The project will promote the integration of microenterprises and
small businesses from disadvantaged social groups by helping
them act as suppliers to large and medium-sized companies in
Brazil.
"The project will benefit 550 firms in the State of SAo Paulo,
of which 80 per cent will be owned by Afro-descendants, 15 per
cent by persons with special needs and 5 per cent by indigenous
entrepreneurs," said MIF Team Leader Bibiana Vasquez. "In
addition, 15 per cent of the buyer and supplier small businesses
affiliated with INTEGRARE are owned by women."
INTEGRARE's support model will be strengthened by increasing its
administrative capacity, promoting competitiveness of individual
firms and associations and establishing networks between them
and large corporations.
"This model of development with diversity will be applied, among
others, to the areas of information technology, civil
engineering and architecture, consulting services in business
management, accounting, systems, marketing and communication,
catering, transport and labor outsourcing," explained Mr.
Vasquez.
The project will strengthen supplier firms, support recruitment
and training of INTEGRARE buyer companies, foster business
acceleration and promotion and promote systematization,
monitoring and dissemination of the model.
INTEGRARE is a non-profit non-governmental organization
structured as a business association and established in 1999 to
activate efficient businesses, promoting the entrepreneurial
spirit in business transactions and the integration of firms
owned by Afro-descendants, indigenous and disabled people and
firms committed to sustainable development in Brazil.
MIF, an autonomous fund administered by the IDB, supports
private sector development in Latin America and the Caribbean,
focusing on microenterprise and small business.
* * *
As reported on Nov. 24, 2006, Standard & Poor's Ratings Services
revised its outlook on its long-term ratings on the Federative
Republic of Brazil to positive from stable. Standard & Poor's
also affirmed these ratings on the Republic of Brazil:
-- 'BB' for long-term foreign currency credit rating,
-- 'BB+' for long-term local currency credit rating, and
-- 'B' for short-term currency sovereign credit rating.
===========================
C A Y M A N I S L A N D S
===========================
CAPABLE LIMITED: Proofs of Claim Must be Filed by April 23
----------------------------------------------------------
Capable Ltd.'s creditors are given until April 23, 2007, to
prove their claims to Ms Margaret Sang, 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.
Capable Ltd.'s shareholders decided on March 16, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Ms Margaret Sang
Capable Limited
16/F, No 8 Queen's Road Central, Hong Kong
Campbells
4th Floor, Scotia Centre
P.O. Box 884
Grand Cayman KY1-1103
Cayman Islands
Tel: (852) 2801 3911
Fax: (852) 2147-3320
TWINKLE FUNDING: Proofs of Claim Filing Ends April 22
-----------------------------------------------------
Twinkle Funding's creditors are given until April 22, 2007, to
prove their claims to John Cullinane and Derrie Boggess, 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.
Twinkle Funding's shareholder decided on March 23, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
UBS INVESTMENT: Proofs of Claim Filing Deadline Is Apirl 25
-----------------------------------------------------------
UBS Investment Funds 1 (Cayman) Ltd.'s creditors are given until
April 25, 2007, to prove their claims to David A.K. Walker and
Lawrence Edwards, 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.
UBS Investment's shareholders decided on March 5, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258
Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 945 4237
=========
C H I L E
=========
SHAW GROUP: Gary Graphia Named as Corporate Development EVP
-----------------------------------------------------------
The Shaw Group Inc. reported that Gary P. Graphia, recently
named Executive Vice President by Shaw Group's Board of
Directors, would assume a newly established senior executive
position of Executive Vice President - Corporate Development and
Strategy. In this new role, Mr. Graphia will assume
responsibility over the following areas: Mergers and
Acquisitions, Shaw Capital, Strategic Markets, Risk Management,
Safety, QA/QC, Corporate Communications, and Sales and
Marketing. He will also oversee and serve on the company's
Project Risk, Claims, and Sarbanes-Oxley Committees.
Mr. Graphia joined Shaw Group in August 1999 as Corporate
Secretary and General Counsel and in January 2007, he was named
Executive Vice President, Chief Legal Officer and Corporate
Secretary. Since joining Shaw Group, Mr. Graphia has presided
over the legal and corporate affairs of the company, working
closely with management and the board. He has overseen the
growth of the Legal Department from 3 attorneys to 42
professionals, including 24 attorneys. Over the years, the
company has completed three major acquisitions -- including
Stone & Webster in 2000; IT Group in 2002; and most recently, a
20% equity interest in Westinghouse in October 2006; as well as,
numerous smaller transactions, including acquisitions,
divestitures, and joint ventures. In addition, the company has
completed seven public capital markets transactions totaling
over US$2.7 billion dollars, and three increases to its bank
credit facilities, the most recent being to increase the
facility to US$850 million.
Shaw Group also announced that Cliff S. Rankin would join Shaw
Group as General Counsel and Corporate Secretary beginning May
7, 2007. Mr. Rankin joins Shaw Group from the Houston law firm
of Vinson & Elkins LLP, where he was employed for 15 years and
has been a partner since 2001. At Vinson & Elkins, Mr. Rankin
specialized in representing corporate clients and financial
institutions in a variety of complex transactional matters
including construction, acquisitions, project finance and
development, and structured and commercial finance.
Shaw Group further announced that Richard F. Gill, Executive
Vice President and Chairman of Shaw's Executive Committee, who
had been serving as acting President of the Power Group, has
officially been named to that position. Mr. Gill will be
relocating to Shaw Group's Charlotte, North Carolina office.
Charlotte is headquarters for the senior management within the
Fossil and Nuclear Divisions of the Power Group. Mr. Gill's
move will facilitate increased opportunities for collaboration
within the Power Group, and allow for more rapid decision-
making. Shaw Group believes that Mr. Gill's relocation will
allow it to further strengthen its leadership position within
the power industry.
Within the Power Group, David L. Brannen will join Shaw Group on
April 16, 2007 as Executive Vice President, working directly
with Mr. Gill. Mr. Brannen's focus will be engineering
execution and project management processes. Over the past five
years, Mr. Brannen has been a consultant to engineering and
testing services companies, primarily providing services to
telecommunications and power utilities markets. As an
independent consultant, he participated in the cost and schedule
analysis of the Hanford Waste Treatment project, a major nuclear
waste management project sponsored by the U.S. Department of
Energy. The Hanford team was made up of industry experts from
throughout the nuclear industry. Previously, Mr. Brannen served
in numerous executive, managerial, and project capacities with
Bechtel International over an extensive and successful 35-year
career.
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.
===============
C O L O M B I A
===============
BANCOLOMBIA: First Quarter Profits Decreases to COP223 Billion
--------------------------------------------------------------
Bancolombia's unconsolidated profits decreased 11.8% to COP223
billion in the first quarter of 2007, from the same period in
2006, Business News Americas reports.
Bancolombia said in a press release that its net interest income
and fees rose 16.6% to COP154 billion, offsetting higher
expenses.
Bancolombia's net loans rose 33.5% to COP17.6 trillion in March
2007, compared to March 2006. Its past-due loans as a
percentage of total loans was 2.86% at the end of March 2007,
BNamericas states.
Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 2, 2007, Moody's Investors Service placed the D+ bank
financial strength rating of Bancolombia SA on review for
possible downgrade. Bancolombia's foreign currency deposit
ratings were affirmed at Ba3/Not-Prime.
As reported in the Troubled Company Reporter on Feb. 6, 2007,
Fitch Ratings affirmed Bancolombia's long-term and short-term
foreign currency Issuer Default Ratings:
* Foreign currency long-term IDR at 'BB+';
* Foreign currency short-term rating at 'B';
* Support rating at '3'.
Moody's said the rating outlook is stable.
The ratings remain on rating watch negative:
* Individual rating of 'C';
* Local currency long-term IDR of 'BBB-';
* Local currency short-term rating of 'F3'.
* COLOMBIA: To Auction Exploration Rights for 13 Offshore Blocks
----------------------------------------------------------------
Colombia's government told Xinhua News that it will launch on
Sept. 18 an auction for oil and natural exploration rights on 13
offshore blocks.
Mining and Energy Minister Hernan Martinez said that the fields
have an average of 290,000 hectares. They cover almost all of
the Colombian Caribbean shore except for natural reservation
areas and areas handed to different oil firms, Xinhua News
notes.
National Hydrocarbons Agency head Armando Zamora told Xinhua
News that three firms have asked for information on the auction
process:
-- Italy's Eni Spa,
-- Royal Dutch Shell, and
-- Colombia's state-run oil firm Ecopetrol.
Many others have approached the Colombian government, Xinhua
News says, citing Mr. Zamora.
Xinhua News emphasizes that the winning bidders of the
exploration rights will be those that propose to transfer the
biggest share of oil or gas output to the government if they
make a commercial discovery. Once licensed, they will have the
right to explore the area for 10 years and oil production rights
until the field is depleted.
Colombia lacked exploration activities due to its poor security
situation. It has recently managed to keep its oil output
levels to ensure oil self-sufficiency for the coming years
through an investment plan tapping deeper into developed oil
blocks and heavy oil, Xinhua News states.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 8, 2007, Standard & Poor's lifted the country's foreign
credit to BB+ from BB. Colombia's local currency debt rating
was raised to BBB+ from BBB.
===================
C O S T A R I C A
===================
ALCATEL-LUCENT: Fitch Affirms then Withdraws BB Rating
------------------------------------------------------
Fitch Ratings affirmed Paris-based telecom equipment vendor
Alcatel-Lucent's ratings at Issuer Default 'BB' with a Stable
Outlook, senior unsecured 'BB' and Short-term 'F2' and
simultaneously withdrawn them.
Fitch will no longer provide ratings or analytical coverage on
the company.
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide
to deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Australia, Brunei and Cambodia.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed
their merger transaction, and began operations as a
communication solutions provider under the name Alcatel-Lucent
on Dec. 1, 2006.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO BHD: Grupo BHD to Merge with Centro Financiero
----------------------------------------------------
Grupo BHD will merge with Centro Financiero BHD, Luis Molina
Achecar, Grupo BHD head, told the DR1 Newsletter.
Grupo BHD controls Banco BHD and money transfer firms Remesas
Dominicanas S.A. and BHD Corp.
Mr. Achecar explained to DR1 Newsletter that the move is part of
the corporate reorganization project launched in 2005.
According to DR1 Newsletter, the merger is aimed at providing an
increased level of synergy and efficiency in corporate
operations. It will be effective on July 1.
BHD shareholders had ratified the merger, Mr. Achecar told DR1
Newsletter.
Banco BHD is a privately owned commercial bank in the Dominican
Republic and part of the BHD Group. Having operated for over 30
years, it is a financial institution focused on serving
individuals and corporations of the Dominican Republic. Banco
BHD deals in multiple currencies and has an international
department that handles large money transfers. In 1998 it
acquired the insurance provider Compania de Seguros Palic and
has an alliance with Spanish Banco Sabadell. The company has 60
branches located in the Dominican Republic, New York and the
Cayman Islands.
* * *
As reported on Oct. 27, 2006, Fitch Ratings affirmed these
Dominican Republic-based Banco BHD ratings: Long term foreign
and local currency Issuer Default Ratings at 'B'; Short-term at
'B'; Support at '5'; and Individual at 'D'.
=============
E C U A D O R
=============
PETROECUADOR: Mulls Options to Develop Amazon Oilfields
-------------------------------------------------------
Ecuadorian state-run oil firm Petroecuador President Carlos
Pareja said in a statement that the company is considering
several options to develop the Ishpingo-Tambochocha-Tiputini
oilfields in the Amazon, as well as the launching of an
international tender.
Business News Americas relates that ITT would need at least
US$5 billion in investment.
According to Mr. Pareja's statement, Ecuador will seek
international experts' aid in developing bidding rules once it
decides to launch the tender. The auction will bring in various
offers for the project, allowing the government to chose the
best for the country. Petroecuador is studying several ideas
for ITT due to the intense interest that state and private firms
have shown in the oilfields, which could hold about 950 million
barrels.
BNamericas underscores that other alternatives include accepting
a proposal for ITT from state oil firms Petroleo Brasileiro,
Enap and Sinopec. Petroecuador signed a memorandum of
understanding with the three companies to develop ITT.
Mr. Pareja said in a statement that Petroleos de Venezuela has
shown interest in ITT and could present an offer that would
involve working with Petroecuador, Petroleo Brasileiro, Enap and
Sinopec.
Petroecuador told BNamericas that France's Total is interested
in developing ITT.
BNamericas states that Petroecuador is also communicating with
state oil firms from these countries regarding the project:
-- Indonesia,
-- Japan,
-- Malaysia,
-- India,
-- Argentina,
-- Colombia, and
-- Peru.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
PETROECUADOR: Pertamina Wants Hydrocarbon Projects with Firm
------------------------------------------------------------
Indonesian state-owned oil firm Petamina wants to have
hydrocarbon projects with Ecuadorian state oil company
Petroecuador, Dow Jones Newswires reports, citing Ecuador's
Foreign Affairs Ministry.
According to Dow Jones, Petroecuador signed a cooperation accord
with Pertamina in 2006.
The ministry told Dow Jones, "The president of Indonesia, Susilo
Bambang Yudhoyono, talked by telephone with President Rafael
Correa to reaffirm the interest of his government to work
together with Petroecuador on various projects."
The ministry said in a statement that Indonesia will open an
embassy in Quito, Ecuador.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
=============
J A M A I C A
=============
NATIONAL COMMERCIAL: Money Laundering Case Court Hearing Resumes
----------------------------------------------------------------
The court hearing of the money laundering complaint filed
against the National Commercial Bank of Jamaica will continue,
Radio Jamaica reports.
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, Jamaican authorities filed historic criminal
proceedings against the National Commercial's Linstead Branch
for alleged breaches of the Money Laundering Act. The National
Commercial is accused of failing to report suspicious financial
transactions of alleged drug lord Norris 'Deedo' Nembhard in
2003.
Radio Jamaica relates that the National Commercial appeared
before the court in February to answer the charges after a two-
year investigation by the Financial Crimes Investigation
Division allegedly revealed it failed to report Mr. Nembhard's
large financial transactions.
There were deposits, withdrawals and transfers involving
significant amounts above the reporting threshold that weren't
reported, Radio Jamaica notes, citing investigators.
According to Radio Jamaica, financial institutions in Jamaica
are required to report cash transactions over US$50,000.
The National Commercial denied the accusations, Radio Jamaica
says.
Radio Jamaica underscores that the case was last heard on
March 16, where the National Commercial's legal representatives
confirmed that they received accusation statements from the
authorities.
The Director of Public Prosecutions will be presenting
additional statements to the defense attorneys, Radio Jamaica
states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd. S&P said the outlook is stable.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2006, Fitch initiated rating coverage on Jamaica's
National Commercial Bank Jamaica, Ltd., by assigning 'B+'
ratings on the bank's long-term foreign currency. Other ratings
assigned by Fitch include: Long-term local currency at 'B+';
Short-term foreign currency at 'B'; Short-term local currency at
'B'; Individual at 'D'; Support at '4'.
Fitch said the ratings had a stable rating outlook.
===========
M E X I C O
===========
ADVANCE FOOD: Moody's Lowers Ratings on US$265 Mil. Loans to B1
---------------------------------------------------------------
Moody's Investors Service lowered the first-time ratings
assigned to Advance Food Co.'s first lien senior secured credit
facility to B1 from Ba3 to reflect changes in the company's
capital structure, from that which served as the basis for our
original ratings. The B1 corporate family rating and B3 rating
assigned to the second lien term loan are not affected by this
action, and have been affirmed. The rating outlook remains
stable.
Ratings downgraded:
Advance Food Co:
-- US$40 million first-lien revolving credit facility due
2012 to B1 (LGD 3, 45%) from Ba3 (LGD 3, 42%)
-- US$225 million first-lien Term Loan B, including a US$50
million delayed draw term loan, due 2014 to B1
(LGD 3, 45%) from Ba3 (LGD 3, 42%). The term loan B was
originally expected to be US$210 million.
Ratings affirmed:
Advance Food Co:
-- Corporate family rating at B1
-- Probability of default rating at B1
-- US$50 million second-lien Term Loan due 2014 at B3 (LGD 6,
92%). The term loan was originally expected to be US$65
million.
On Feb. 22, 2007, Moody's assigned a Ba3 rating to the company's
proposed first lien credit facility, which was to have consisted
of a US$40 million revolving credit facility and a US$210
million term loan B. However, the first-lien term loan B was
subsequently increased by US$15 million, to US$225 million, and
the second-lien term loan was decreased by US$15, to $50
million. These changes, and the proportionally greater first-
lien debt and lower second-lien debt in the capital structure,
resulted in a downgrade of the first-lien credit facilities
according to Moody's Loss Given Default methodology.
Proceeds from the above facilities were used to refinance
existing indebtedness, fund a dividend to shareholders, and pay
related fees and expenses. Included in the US$225 million first
lien term loan B is a US$50 million delayed draw term-loan to be
used to finance the construction of a new processing facility in
Enid, Oklahoma. Proceeds from the US$40 million revolver will
be used for ongoing working capital requirements, capital
expenditures, and other general corporate purposes.
Advance Food, based in Enid, Oklahoma, operates nine
manufacturing facilities in five states, a nationwide
distribution network and sells internationally to Canada,
Mexico, Germany, Japan and the Caribbean. Advance currently
produces nearly 2200 center-of-the-plate products made from
beef, pork, poultry, lamb and veal. Proforma 2006 revenues
exceed US$530 million.
AMERICAN GREETINGS: Completes Sale of Learning Horizons Unit
------------------------------------------------------------
American Greetings Corp. has completed the sale of Learning
Horizons Inc. Learning Horizons offers a variety of
supplemental educational products for children. The company was
sold to Learning Horizons Holding Corp., an Evolution Capital
Partners portfolio firm.
The company entered into an agreement to sell Learning Horizons
in February 2007 and has completed the transaction. The sale of
Learning Horizons reflects the company's strategy to focus its
resources on businesses and product lines more closely related
to its core social expression business. The terms of the
transaction have not been disclosed. As a result of this
transaction the company expects to record a pre-tax loss of
around US$4 million.
About American Greetings
Headquartered in Cleveland, Ohio, American Greetings Corp.
(NYSE: AM) -- http://corporate.americangreetings.com/--
manufactures social expression products. American Greetings
also manufactures and sells greeting cards, gift wrap, party
goods, candles, balloons, stationery and giftware throughout the
world, primarily in Canada, the United Kingdom, Mexico,
Australia, New Zealand and South Africa.
* * *
Moody's Investors Service's confirmed its Ba1 Corporate Family
Rating for American Greetings Corporation.
BALLY TOTAL: S&P Puts Default Rating on Interest Non-Payment
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its subordinated debt
rating on Bally Total Fitness Holding Corp. to 'D' from 'CC'.
The senior unsecured rating was also lowered to 'D' from 'CCC-'.
At the same time, Standard & Poor's lowered the corporate credit
rating on Bally to 'D' from 'CCC'.
"The downgrades are based on Bally Total's intention not to pay
the April 16 interest payment of about US$15 million on its
senior subordinated notes," said Standard & Poor's credit
analyst Andy Liu.
The 9.875% notes are scheduled to mature in October 2007.
Nonpayment on them will trigger a cross default under the
indenture governing the company's 10.5% senior notes maturing in
2011.
Bally Total has obtained a forbearance agreement from its
lending group on its US$284 million senior secured credit
facility. It is in discussions regarding waiver and forbearance
agreements with holders of its senior notes and subordinated
notes, as required by its lending group no later than May 14,
2007.
Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial
operator of fitness centers in the U.S., with nearly 390
facilities and 30 franchises and joint ventures located in 29
states, Mexico, Canada, Korea, China and the Caribbean. Bally
also sells Bally-branded apparel, nutritional products, fitness-
related merchandise and its licensed portable exercise equipment
is sold in more than 10,000 retail outlets.
ELAMEX S.A.: Annual Shareholders' Meeting Scheduled on April 26
---------------------------------------------------------------
Elamex S.A. de C.V. will hold its Annual Meeting of Shareholders
on Thursday, April 26, 2007 at 11:00 a.m. local time. The
meeting will be held at
Hotel Camino Real
Avenida Teofilo Borunda #6941
Colonia Partido Iglesias, Cd. Juarez
Chih, Mexico 32617
All shareholders are cordially invited to attend the meeting in
person. To attend the meeting, a shareholder must present an
admission ticket. To obtain a ticket, call Alma Diaz no later
than 48 (forty-eight) hours before the meeting at (915) 298-3063
in El Paso, Texas, and ask that a ticket be reserved. The Board
of Directors and management look forward to greeting those
shareholders who are able to attend.
Elamex, S.A. de C.V. (PINKSHEETS: ELAMF) and its subsidiaries
are a group of Companies in Mexico and the United States that
provide manufacturing, packaging and distribution services. The
Company provides customized manufacturing services in the candy
and nut industry. The Company's manufacturing machinery and
equipment are located in facilities in Ciudad Juarez, in Mexico,
and in El Paso, Texas in the United States. The Company is a
subsidiary of Accel, S.A. de C.V., which owns approximately
57.7% of the Company's issued and outstanding common shares at
December 31, 2004.
Substantial Doubt
Jorge Jaramillo El-as at Galaz, Yamazaki, Ruiz Urquiza, S.C.,
expressed substantial doubt about the company's ability to
continue as a going concern after auditing the company's Form
10-K filed on Jan. 13, 2006. The auditor points to the
company's accumulated deficits and net losses for 2003 and 2004.
As of December 31, 2004 and 2003, the Joint Venture has an
accumulated deficit in excess of 100% of its total paid-in
capital. Under Mexican law, this condition allows the Joint
Venture's partners, creditors or other interested parties to
force the Joint Venture into dissolution.
Initially, the Company had decided upon the sale of its stock.
However, as of September 2005, the Joint Venture's operations
were suspended, which resulted in the termination of a majority
of the Joint Venture's employees and the sale of the majority of
the Joint Venture's machinery and equipment.
FOAMEX INT'L: Dec. 31 Balance Sheet Upside-Down by US$396.4 Mil.
----------------------------------------------------------------
Foamex International Inc.'s balance sheet as of Dec. 31, 2006,
showed US$396.4 million total stockholders' deficit, resulting
from US$564.6 million total assets and US$961 million total
liabilities. The company's accumulated deficit as of Dec. 31,
2006, stood at US$432.7 million.
The company reported a US$12.3 million net income on US$1.4
billion net sales for the year ended Dec. 31, 2006. It had a
US$56.2 million net loss on US$1.3 billion net sales for the
comparable period ended Jan. 1, 2006.
Gross profit in 2006 was US$207.3 million, as compared with
gross profit of US$128.7 million in 2005. Selling price
increases implemented in the fourth quarter of 2005 allowed the
company to recover increases in raw material costs that averaged
about 35% since 2005, plus previously unrecovered raw material
cost increases. In addition, operating efficiencies and yield
improvements contributed to higher margins in 2006. Gross
profit was reduced by asset impairment charges of US$1.6 million
in 2006 and US$15.2 million in 2005.
Income from operations in 2006 was US$120.1 million, increasing
US$78.6 million from US$41.5 million reported in 2005 primarily
due to the increased gross profit. Selling, general and
administrative expenses were essentially unchanged from 2005 as
the accrual of incentive compensation under a plan approved by
the Bankruptcy Court on Oct. 30, 2006, was offset by lower
professional fees and reduced bad debt expense. The 2006 period
included US$7.9 million of restructuring charges related to the
closure of manufacturing facilities, while the 2005 period
included a US$29.7 million gain from the sale of the company's
rubber and felt carpet cushion businesses and goodwill
impairment charges of US$35.5 million.
Liquidity and Capital Resources
Cash and cash equivalents were US$6 million at Dec. 31, 2006
compared with US$7.4 million at Jan. 1, 2006. Working capital
at Dec. 31, 2006, was US$24 million and the current ratio was
1.08 to 1 compared to negative working capital at Jan. 1, 2006,
of US$19.4 million and a current ratio of 0.95 to 1.
In order to finance the company's Reorganization Plan, Foamex
L.P. entered into new senior secured credit facilities on Feb.
12, 2007, which provided for aggregate maximum borrowings of up
to US$775 million.
In addition, on Jan. 4, 2007, the company offered rights to
existing stockholders to purchase 2.506 shares of its common
stock for each share of common stock held as of Dec. 29, 2006,
and holders of preferred stock as of the same date were offered
rights to purchase 250.6 shares of common stock for each
preferred share held, in each case for US$2.25 per share.
A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1d15
About Foamex International
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.
FORD MOTOR: Defects Prompt Recall of 527,000 Ford Escape SUVs
-------------------------------------------------------------
Fires in antilock-break connectors have forced Ford Motor Co. to
recall about 527,000 Ford Escape sport utility vehicles,
excluding gasoline-electric hybrid Escapes, United Press
International reports.
The recall covers 2001-2004 Escapes, including 444,880 sold in
the United States, 36,642 in Canada, 23,714 in Mexico, 15,094 in
Europe, and 6,670 Escape SUVs sold in other parts of Latin
America and in Asia, UPI states.
According to the report, Ford revealed that missing or
incorrectly installed seals may cause water and other
contaminants such as brake fluid or road salt to enter the
antilock-break connector, which leads to corrosion and results
in a warning indicator, an open fuse and "in some rare
instances, smoking, melting, or burning."
A total of 53 engine fires that may be related to the problem
were reported to the company and the National Highway Traffic
Safety Administration, although Ford claims no accidents or
injuries have resulted from this condition, UPI relates. The
automaker will swap corroded ABS connectors for free.
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents. With more than 280,000
employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury, and Volvo. Its automotive-
related services include Ford Motor Credit Company and The Hertz
Corporation.
* * *
As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan
and '2' recovery ratings on Ford Motor Co.
As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4'.
As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's US$3 billion of senior convertible notes
due 2036.
GRUPO IUSACELL: Mexican Bankruptcy Court Okays Debt Workout Plan
----------------------------------------------------------------
Grupo Iusacell SA de C.V. told Bloomberg that a Mexican
bankruptcy court ratified a debt workout plan with the firm's
creditors.
Grupo Iusacell said in a filing with the Mexican stock exchange
Bolsa Mexicana de Valores that holders of US$350 million of
defaulted bonds due in 2006 will get US$175 million of new bonds
with a coupon of 10% that mature in 2013.
Bloomberg underscores that Grupo Iusacell disclosed in June 2006
that 89% of investors holding the defaulted bonds participated
in the offer.
According to Bloomberg, billionaire Ricardo Salinas Pliego
purchased a controlling stake in Grupo Iusacell four years ago
from Verizon Communications Inc. and Vodafone Group Plc after
Grupo Iusacell defaulted on over US$800 million of debt.
Grupo Iusacell and its creditors reached a debt settlement in
January 2006, Bloomberg states.
Headquartered in Mexico City, Mexico, Grupo Iusacell, SA de CV
(BMV: CEL) -- http://www.iusacell.com-- is a wireless cellular
and PCS service provider in Mexico with a national footprint.
Independent of the negotiations towards the restructuring of its
debt, Grupo Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, including its new 3G network, throughout all of the
regions in which it operate.
As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit
widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000
at Dec. 31, 2004.
Grupo Iusacell filed for bankruptcy protection on June 18 under
Mexican Law to prevent creditors from disrupting its debt
restructuring talks. On July 14, 2006, Gramercy Emerging
Markets Fund, Pallmall LLC and Kapali LLC, owed an aggregate
amount of US$55,878,000 filed an Involuntary Chapter 11 Case
against Grupo Iusacell's operating subsidiary, Grupo Iusacell
Celular, SA de CV (Bankr. S.D.N.Y. Case No. 06-11599). Alan M.
Field, Esq., at Manatt, Phelps & Phillips, LLP, represents the
petitioners. Iusacell Celular then filed for bankruptcy
protection under Mexican Law on July 18.
The involuntary petition in the United States was dismissed in
December 2006.
INNOPHOS INC: S&P Junks Rating on US$66 Million Senior Notes
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'CCC+' rating to
US$66 million of senior unsecured notes due 2012 to be issued by
Innophos Holdings Inc., parent company of Innophos Inc.
Standard & Poor's also affirmed the 'B' corporate credit rating
and other ratings on Innophos Inc.
"Proceeds from the debt offering will refinance the outstanding
balance of floating-rate senior notes," said Standard & Poor's
credit analyst Wesley E. Chinn.
The ratings of Innophos Inc. reflect strengthening cash flow
protection measures that benefited in part from debt reduction
using proceeds from a November 2006 IPO. Credit quality also
incorporates a moderate sales base of over US$535 million, a
narrow product line in a niche, mature market, aggressive debt
leverage, and litigation related to Mexican tax claims and
compliance with wastewater discharge limits at a plant in
Mexico. These negatives overshadow the company's solid position
in the production of specialty phosphates, good operating
margins, improving earnings, and prospects for additional debt
reduction from discretionary cash flows.
Specialty phosphates are used in a variety of food and beverage,
consumer products, pharmaceutical, and industrial applications.
Specific uses include improving the texture and taste of food,
adding an abrasive characteristic to toothpaste for whitening,
and improving the cleaning characteristics of detergents.
Innophos has leading shares in all three major product segments
of the specialty phosphates industry: purified phosphoric acid
(which is used in part in the downstream production of phosphate
derivatives), specialty salts
and acids, and technical grade sodium tri-polyphosphate or STPP.
Specialty salts and acids account for 50%-55% of Innophos Inc.'s
sales.
Innophos, Inc. -- http://www.innophos.com/-- is a leading North
American manufacturer of specialty phosphates serving a diverse
range of customers across multiple applications, geographies and
channels. Innophos offers a broad suite of products used in a
wide variety of food and beverage, consumer products,
pharmaceutical and industrial applications. The Company's
market-leading positions derive from its experience and
dedication to customer service and innovation. Headquartered in
Cranbury, New Jersey, Innophos has plant operations in
Tennessee, Illinois, Ontario and Mexico.
=======
P E R U
=======
DUN & BRADSTREET: Dec. 31 Balance Sheet Upside-Down by US$399MM
---------------------------------------------------------------
The Dun & Bradstreet Corp. disclosed in a regulatory filing with
the U.S. Securities and Exchange Commission that for the year
ended Dec. 31, 2006, the company reported net income of US$240.7
million on revenues of US$1.5 billion. This compares to net
income of US$221.2 million on revenues of US$1.4 billion.
At Dec. 31, 2006, the company's balance sheet showed total
assets of US$1.36 billion and total liabilities of US$1.75
billion, resulting in a shareholders' deficit of US$399.1
million.
The company's Dec. 31 balance sheet further showed working
capital deficit with total current assets of US$645 million and
total current liabilities of US$805 million.
Senior Notes
In March 2006, the company issued senior notes with a face value
of US$300 million that mature on March 15, 2011, and bears 5.5%
fixed annual interest, payable semi-annually. The proceeds were
used to repay the company's existing US$300 million notes
bearing interest at a fixed annual rate of 6.625%, payable semi-
annually, which matured in March 2006.
Credit Facility
In September 2004, the company entered into a US$300 million
bank revolving credit facility which bears interest at
prevailing short-term interest rates and will expire in
September 2009. This facility also supports the company's
commercial paper borrowings.
At Dec. 31, 2006, the company had US$159.5 million of borrowings
outstanding under this facility. The company has not drawn on
the facility and did not have any borrowings outstanding under
the facility for the years ended Dec. 31, 2005 and 2004. The
company also did not borrow under its commercial paper program
for the years ended Dec. 31, 2006, 2005 or 2004.
The bank credit facility requires the maintenance of interest
coverage and total debt to earnings before income, tax
depreciation and amortization ratios. The company reports that
it was in compliance with these requirements for the years ended
Dec. 31, 2006, 2005 and 2004.
A full-text copy of the company's financial statements for the
year ended Dec. 31, 2006, is available for free at:
http://ResearchArchives.com/t/s?1d3f
About Dun & Bradstreet
Based in Short Hills, New Jersey, The Dun & Bradstreet
Corporation (NYSE:DNB) -- http://www.dnb.com/--) is a source of
commercial information and insight on businesses. Its global
commercial database contains more than 110 million business
records. D&B's DUNSRight quality process provides its customers
with quality business information to make critical business
decisions. The company provides customers with four solution
sets: Risk Management Solutions, Sales & Marketing Solutions, E-
Business Solutions and Supply Management Solutions.
D&B operates through two business segments: United States, which
consists solely of its United States operations, and
International, which consists of its operations in Canada,
Europe, Asia Pacific and Latin America with locations in
Argentina, Brazil, Mexico and Peru. During the year ended Dec.
31, 2006, the company formed a joint venture, Huaxia D&B China,
with Huaxia International Credit Consulting Co. Ltd. In March
2007, the Company acquired First Research, a provider of
editorial-based industry insight, specifically tailored toward
sales professionals.
DUN & BRADSTREET: Amends U.S. Qualified Plan and 401(k) Plan
------------------------------------------------------------
The Dun & Bradstreet Corp. disclosed that on April 12, 2007, its
Board of Directors took these actions with respect to the
company's U.S. benefit plans:
* amended the company's Dun & Bradstreet Corporation
Retirement Account; and
* amended the company's 401(k) Plan.
The company relates that its Retirement Account is amended
effective June 30, 2007. Any pension benefit that has been
accrued through such date under the U.S. Qualified Plan will be
"frozen" at its then current value and no additional benefits,
other than interest on such amounts, will accrue under the U.S.
Qualified Plan. All non-vested U.S. Qualified Plan participants
who are actively employed as of June 30, 2007 will be
immediately vested on July 1, 2007.
Under the amended 401(k) Plan, which is effective July 1, 2007,
the company increased its match formula from 50% to 100% of a
team member's contributions and to increase the maximum match to
7%, from 6%, of such team member's eligible compensation.
The company says that these changes to the U.S. Qualified Plan
and 401(k) Plan won't impact its 2007 financial guidance.
On an annualized net basis, the company also believe that these
actions will not have a material impact on its operating income
and will result in a decrease to its cash flow from operating
activities of approximately US$11.0 million to US$13.0 million,
primarily as a result of the increased match under the 401(k)
Plan.
Based in Short Hills, New Jersey, The Dun & Bradstreet
Corporation (NYSE:DNB) -- http://www.dnb.com/--) is a source of
commercial information and insight on businesses. Its global
commercial database contains more than 110 million business
records. D&B's DUNSRight quality process provides its customers
with quality business information to make critical business
decisions. The company provides customers with four solution
sets: Risk Management Solutions, Sales & Marketing Solutions, E-
Business Solutions and Supply Management Solutions.
D&B operates through two business segments: United States, which
consists solely of its United States operations, and
International, which consists of its operations in Canada,
Europe, Asia Pacific and Latin America with locations in
Argentina, Brazil, Mexico and Peru. During the year ended Dec.
31, 2006, the company formed a joint venture, Huaxia D&B China,
with Huaxia International Credit Consulting Co. Ltd. In March
2007, the Company acquired First Research, a provider of
editorial-based industry insight, specifically tailored toward
sales professionals.
=====================
P U E R T O R I C O
=====================
CHATTEM INC: Earns US$13.7 Million in First Quarter 2007
--------------------------------------------------------
Chattem Inc. reported net income of US$13.7 million for the
first quarter ended Feb. 28, 2007, down 7%, compared to net
income of US$14.8 million in the prior year quarter.
Net income in the first quarter of fiscal 2007 included employee
stock option expenses under SFAS 123R. Net income in the first
quarter of fiscal 2006 included employee stock option expense
under SFAS 123R, a gain related to a recovery of legal expenses,
and a loss on early extinguishment of debt. As adjusted to
exclude these items, net income in the first quarter of fiscal
2007 was US$14.4 million, up 25%, compared to US$11.5 million in
the prior year quarter.
Total revenues for the first quarter of fiscal 2007 were
US$100.8 million compared to total revenues of US$84 million in
the prior year quarter representing a 20% increase. Revenue
growth for the quarter was driven by sales of the five brands
acquired from Johnson & Johnson on Jan. 2, continued growth of
the Gold Bond(R) franchise, up 27%, the strength of the Icy
Hot(R) business, up 23%, led by new product launches, and steady
growth from Dexatrim(R) and Pamprin(R), each up 11%. Offsetting
these increases was a reduction in sales of Icy Hot Pro-
Therapy(TM) from launch levels in the first quarter of fiscal
2006. Excluding the impact of the acquired brands and Icy Hot
Pro-Therapy, total revenues from the base business increased by
11% in the first quarter of fiscal 2007, compared to the prior
year quarter.
"The company completed its first quarter in history with
revenues over US$100 million," said chief executive officer Zan
Guerry. "The level of enthusiasm at the company is greater than
ever. With sales of Gold Bond continuing to exceed
expectations, the Selsun(R) franchise continuing to perform well
at retail with Nielsen data showing a 12% increase for the
latest 13 week period ending Feb. 24, 2007, a strong sell-in of
our new products in the topical pain care category and the
integration of our newly acquired brands progressing smoothly,
Chattem is well positioned to deliver on its growth objectives
in fiscal year 2007 and beyond. We are extremely pleased with
the company's 27% increase in adjusted earnings per share as we
view this as a meaningful measure of our operating performance."
Key Highlights
Gross margin for the first quarter of fiscal 2007 was 69.3%,
compared to 69.0% in the prior year quarter. The increase in
gross margin primarily reflected reduced sales of the
relatively low margin Icy Hot Pro-Therapy line.
Advertising and promotion expense for the first quarter of
fiscal 2007 increased to US$28.8 million from US$27.2 million in
the prior year quarter. A&P expense as a percentage of total
revenues decreased to 28.5% for the first quarter of fiscal
2007, as compared to 32.4% in the prior year quarter, with the
reduction as a percentage of total revenues declining largely as
a result of the heavy investment spending on Icy Hot Pro-Therapy
in the first quarter of fiscal 2006.
Selling, general and administrative expenses for the first
quarter of fiscal 2007 increased to US$12.6 million from US$11.6
million in the prior year quarter. SG&A as a percentage of
total revenues for the first quarter of fiscal 2007 decreased to
12.5%, as compared to 13.8% in the prior year quarter reflecting
the company's ability to leverage its operating infrastructure.
Acquisition costs of US$1.2 million for the first quarter of
fiscal 2007 primarily reflect payments made to Johnson & Johnson
for services rendered under a Transition Services Agreement
related to the acquired brands.
Earnings before interest, taxes, depreciation and amortization
excluding litigation settlement items was US$28.7 million, or
28.5% of total revenues, for the first quarter of fiscal 2007,
up 40%, compared to the prior year quarter.
Interest expense increased US$4.4 million in the first quarter
of fiscal 2007 as compared to the prior year quarter reflecting
the impact of the additional indebtedness incurred to finance
the acquisition of brands from Johnson & Johnson.
The company reduced outstanding borrowings under its revolving
credit facility to US$15 million as of March 21, 2007, versus an
outstanding balance of US$30 million at Feb. 28, 2007, and an
acquisition funding balance of US$38 million on Jan. 2, 2007.
At Feb. 28, 2007, the company's balance sheet showed
US$783.7 million in total assets, US$625.7 million in total
liabilities, and US$158 million in total shareholders' equity.
Full-text copies of the company's consolidated financial
statements for the quarter ended Feb. 28, 2007, are available
for free at http://researcharchives.com/t/s?1d0b
About Chattem Inc.
Chattem Inc. (NASDAQ: CHTT) -- http://www.chattem.com/-- is a
marketer and manufacturer of a broad portfolio of a broad
portfolio of branded over the counter healthcare products,
toiletries and dietary supplements. The company's portfolio of
products includes well-recognized brands such as Icy Hot, Gold
Bond, Selsun Blue, ACT, Cortizone and Unisom. Chattem conducts
a portion of its global business through subsidiaries in the
United Kingdom, Ireland and Canada.
* * *
Chattem Inc.'s 7% Exchange Senior Subordinated Notes due 2014
carry Moody's Investors Service's 'B2' rating and Standard &
Poor's 'B' rating.
SUNCOM WIRELESS: Unveils Preliminary First Quarter 2007 Results
---------------------------------------------------------------
SunCom Wireless Holdings Inc. has released preliminary first
quarter 2007 subscriber results and an expected range of
Adjusted EBITDA for the quarter.
Adjusted EBITDA for the first quarter 2007 is expected to be in
a range of US$42.0 to US$44.0 million compared with US$7.4
million in the first quarter 2006. The company estimated that
cash flow from operations will be a positive US$9.0 million in
the first quarter of 2007 compared with a usage of US$21.6
million a year ago.
The increase in Adjusted EBITDA over the prior year period
reflects a greater than US$4 increase in average revenue per
user (ARPU), improvements in the company's cost structure and a
113,000 increase in subscribers.
Service revenues for the quarter were approximately US$186.4
million compared with US$155.5 million in the first quarter of
2006. The increased service revenue was driven by higher ARPU
of US$55.70 and the increased subscriber count. The higher ARPU
reflects the addition of subscribers at higher access points,
and higher feature and miscellaneous revenues. Roaming revenues
were approximately US$22.0 million compared with US$21.5 million
a year ago.
"The increase in ARPU during the first quarter 2007 is strong
evidence that the consumer continues to see tremendous value in
SunCom's offerings and reflects the fourth consecutive quarter
of improving ARPU." said Michael E. Kalogris, Chairman and CEO
of SunCom.
Improvements in the company's cost structure were driven by the
decommissioning of its TDMA network, efficiencies in its GSM
network, a reduction of incollect expenses and the benefits of
fixed-cost leverage.
SunCom added a net 33,646 subscribers on gross additions of
107,851 to end the quarter with 1,120,838 subscribers. Bill
Robinson, Executive Vice President of Operations said, "The
slight decline in gross and net add performance in the first
quarter reflects a conscious strategy to pursue higher ARPU
subscribers." In the first quarter 2006, the company added
41,292 net subscribers on gross additions of 116,315.
Continental U.S. operations accounted for 20,136 net additions
with the Puerto Rico operations accounting for 13,510 net
additions in the first quarter of 2007. Gross additions were
68,106 in the continental U.S. and 39,745 in Puerto Rico
compared with 78,960 and 37,355, respectively, a year ago.
The results reported in this release are preliminary and subject
to further review and refinement by management and SunCom's
independent auditors. The company expects to update first
quarter earnings to include more detailed results in early May
2007.
Based in Berwyn, Pennsylvania, SunCom Wireless Holdings Inc.
(NYSE: TPC) (OTC: SWSH.OB) -- http://www.suncom.com/-- offers
digital wireless communications services to more than one
million subscribers in the southeastern United States, Puerto
Rico and the U.S. Virgin Islands. SunCom is committed to
delivering Truth in Wireless by treating customers with respect,
offering simple, straightforward plans and by providing access
to the largest GSM network and the latest technology choices.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2007, Standard & Poor's Rating Services said it revised
its outlook for Berwyn, Pa.-based SunCom Wireless Holdings Inc.
to positive from negative following SunCom's announcement that
it had reached a consensual agreement with its largest
subordinated bondholders to exchange debt for common stock.
All ratings, including the 'CCC+' corporate credit rating and
those on wholly owned subsidiary SunCom Wireless Inc., were
affirmed.
As reported in the Troubled Company Reporter-Latin America on
Feb. 9, 2007, Moody's lowered the probability of default rating
of SunCom Wireless Inc. to LD, placed the company's Caa3
corporate family rating under review for possible upgrade and
placed its B2 senior secured, Caa2 senior unsecured and Ca
senior subordinate ratings under review direction uncertain.
=============
U R U G U A Y
=============
GOL LINHAS: Discloses Terms of ADR Rights Offering
--------------------------------------------------
GOL Linhas Aereas Inteligentes has filed an immediately
effective registration statement with the SEC for the
registration of 2,470,794 preferred shares in a preemptive
rights offering, in which U.S. holders of its preferred shares
and American Depositary Shares - ADRs -- can subscribe for GOL's
preferred shares and ADRs.
As previously disclosed, when GOL agreed to acquire the capital
stock of VRG Linhas Aereas S.A. in March 2007, it agreed to pay
a portion of the acquisition price in its preferred.
The terms of the rights offering are:
1. Maximum number of preferred shares, including shares in
form of ADRs, to be subscribed in the rights offering:
2,470,794.
2. Record date for the preferred share offering: April 10,
2007
3. Issuance and subscription price for the preferred share
offering: BRL$60.81 per share.
4. Subscription period for holders of preferred shares:
April 11, 2007 through May 21, 2007.
5. Record date for the ADR offering: April 19, 2007.
6. Issuance and subscription price for the ADR offering:
US$31.44 per ADR, which is the ADR subscription price of
BRL$60.81 per ADR.
If the amount of the estimated ADR subscription price a
holder pays to the ADR rights agent is insufficient to
cover the actual ADR subscription price in reais plus
conversion expenses, ADR issuance fees and financial
transaction taxes for ADRs a holder is subscribing for or
is allocated, the ADR rights agent will pay the deficiency
to the extent the deficiency does not exceed 20% of your
payment. A holder must reimburse the ADR rights agent for
the amount of any deficiency financed by the ADR rights
agent prior to your receiving any new ADRs.
If the amount of the estimated ADR subscription price a
holder pays to the ADR rights agent is greater than the
subscription price plus conversion expenses, ADR issuance
fees and financial transaction taxes for ADRs you are
subscribing for or are allocated, the ADR rights agent
will pay you the excess without interest.
7. Subscription period for holders of ADRs: April 23 through
May 16, 2007.
8. The preferred shares and ADRs issued shall have the right
to receive dividends and interests over the company's
capital since the date of their issuance.
9. Non-subscribed shares and ADRs: any remaining preferred
shares or ADRs will be shared proportionally among the
shareholders and ADR holders who have indicated their
intention to subscribe remaining preferred at the moment
of the subscription.
Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL
Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) --
http://www.voegol.com.br-- through its subsidiary, GOL
Transportes Aereos S.A., provides airline services in Brazil,
Argentina, Bolivia, Uruguay, and Paraguay. The company's
services include passenger, cargo, and charter services. As of
March 20, 2006, Gol Linhas provided 440 daily flights to 49
destinations and operated a fleet of 45 Boeing 737 aircraft.
The company was founded in 2001.
* * *
On March 7, 2007, Fitch Ratings assigned its BB+ rating to GOL
Intelligent Airlines' senior unsecured debt.
NXP BV: 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 corporate families in the
Telecommunications, Media and Technology sectors last week, the
rating agency confirmed its Ba3 Corporate Family Rating for NXP
B.V.
Moody's also assigned a Ba3 probability of default rating to the
company.
Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ --------
Senior Secured FLT RT
Notes Due 2013 Ba2 Ba2 LGD3 40%
7.88% Senior Secured
Regular Bond/Debenture
Due 2014 Ba2 Ba2 LGD3 40%
9.50% Senior Unsecured
GTD Global Notes
Due 2015 B2 B2 LGD5 86%
8.63% Senior Unsecured
GTD Global Notes
Due 2015 B2 B2 LGD5 86%
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 Eindhoven, Netherlands, NXP B.V. --
http://www.nxp.com/-- is one of the largest semiconductor
companies worldwide, focusing on the designs and manufacture of
application-specific integrated circuits for the home
electronics, mobile communications, automotive and
identification technology application markets. Next to that,
NXP is focusing via its multimarket product business on general
purpose and application specific standard semiconductor
products. Revenues were EUR4.8 billion
In Latin America, the company has sales offices in Brazil,
Colombia and Uruguay.
=================
V E N E Z U E L A
=================
CITGO PETROLEUM: Closes Lawrence Gasoline Station
-------------------------------------------------
A gasoline station selling Citgo Petroleum Corp. products has
been closed, Lawrence Journal-World reports.
Lawrence Journal relates that the station, registered to a
Darshan's Kansas Stations One Inc., is located at 2005 West
Ninth Street.
The station posted a handwritten sign declaring that the place
was out of business. The station no longer has products inside
its small cashier's booth, and no prices are posted on its Citgo
Petroleum pole sign along Iowa Street, Lawrence Journal states.
Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.
Petroleos de Venezuela is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical, and
coal industry, as well as planning, coordinating, supervising,
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
* * *
Standard and Poor's Ratings Services assigned a 'BB' rating on
Citgo Petroleum Corp.
Citgo Petroleum carries Fitch's BB- Issuer Default Rating.
Fitch also rates the company's US$1.15 billion senior secured
revolving credit facility maturing in 2010 at 'BB+', its US$700
million secured term-loan B maturing in 2012 at 'BB+', and its
senior secured notes at 'BB+'.
ELECTRICIDAD DE CARACAS: Board Urges Okay of PDVSA Tender Offer
---------------------------------------------------------------
C.A. La Electricidad de Caracas's board of directors recommends
that holders of its American Depositary Shares or ADSs accept a
tender offer that was commenced on April 9, 2007, by Petroleos
de Venezuela, S.A. for all of the outstanding ADSs for
US$13.6675 in cash per ADS (with each ADS representing 50 shares
of common stock of Electricidad de Caracas).
In addition, Venezuelan securities regulator Comision Nacional
de Valores told Business News Americas that it has allowed the
nation's state oil firm Petroleos de Venezuela SA aka PDVSA to
purchase power company Electricidad de Caracas and Cantv.
BNamericas relates that the regulator decided to let PDVSA buy
2.7 million common shares, or 82.14% of Electricidad de Caracas,
from US company AES Corporation.
On Feb. 28, AES entered into a definitive accord to sell
Electricidad de Caracas to PDVSA for US$739 million. A
preliminary agreement was signed on January, BNamericas notes.
PDVSA also purchased Seneca, which serves Nueva Esparta, from US
electricity company CMS Energy, BNamericas states.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/--
is Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
About Electricidad de Caracas
Electricidad de Caracas is the largest private-sector electric
utility in Venezuela and generates, transmits, distributes, and
markets electricity primarily to metropolitan Caracas and its
surrounding areas. The AES Corp. owns 86% of EDC and acquired
its stake in June 2000, through a public-tender offer.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 16, 2007, Standard & Poor's Ratings Services revised the
CreditWatch implications for its 'B' foreign currency corporate
credit rating on C.A. La Electricidad de Caracas to developing
from negative. Standard & Poor's also revised the CreditWatch
implications for its 'B' senior unsecured debt rating on
Electricidad de Caracas Finance B.V.'s notes due 2014 to
developing from negative.
ELECTRICIDAD DE CARACAS: Supports Petroleos de Venezuela's Offer
----------------------------------------------------------------
Electricidad de Caracas said in a statement that it is
recommending shareholders to accept Venezuelan state-owned oil
firm Petroleos de Venezuela SA's offer for all its outstanding
American Depositary Shares.
According to Electricidad de Caracas' statement, holders of ADS
are advised to make their own decisions whether to tender their
ADS and accept the offer.
Business News Americas relates that Petroleos de Venezuela
decided in February to purchase 82%-plus of Electricidad de
Caracas from the latter's parent, AES Corporation, for US$739
million as part of Venezuela's nationalization strategy.
Petroleos de Venezuela offered US$13.6675 per ADS, which
represents 50 shares of Electricidad de Caracas common stock.
Petroleos de Venezuela launched the offer on April 9. It will
be open through May 8, BNamericas states.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/--
is Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
About Electricidad de Caracas
Electricidad de Caracas is the largest private-sector electric
utility in Venezuela and generates, transmits, distributes, and
markets electricity primarily to metropolitan Caracas and its
surrounding areas. The AES Corp. owns 86% of EDC and acquired
its stake in June 2000, through a public-tender offer.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 16, 2007, Standard & Poor's Ratings Services revised the
CreditWatch implications for its 'B' foreign currency corporate
credit rating on C.A. La Electricidad de Caracas to developing
from negative. Standard & Poor's also revised the CreditWatch
implications for its 'B' senior unsecured debt rating on
Electricidad de Caracas Finance B.V.'s notes due 2014 to
developing from negative.
LEAR CORP: Annual Stockholders' Meeting Slated for June 27
----------------------------------------------------------
Lear Corporation has set its 2007 annual meeting of stockholders
for 10:00 a.m. on June 27 at:
Hotel du Pont
11th and Market Streets
Wilmington
Delaware 19801
U.S.A.
At the meeting, stockholders will be asked to vote on, among
other things, a management proposal to amend the Company's
Certificate of Incorporation to declassify the Board of
Directors and, if presented, the adoption of the merger
agreement between the Company and certain affiliates of Carl
Icahn.
The record date for determination of stockholders entitled to
notice of, and vote at, the meeting is the close of business on
Monday, May 14, 2007.
About Lear Corp.
Southfield, Mich.-based Lear Corp. (NYSE: LEA) --
http://www.lear.com/-- is a global supplier of automotive
interior systems and components. Lear provides complete seat
systems, electronic products, electrical distribution systems,
and other interior products.
Lear also operates in Argentina, Austria, Belgium, Brazil,
Canada, China, Czech Republic, United Kingdom, France, Germany,
Honduras, Hungary, India, Italy, Japan, Mexico, Morocco,
Netherlands, Philippines, Poland, Portugal, Romania, Russia,
Singapore, Slovakia, South Africa, South Korea, Spain, Sweden,
Thailand, Tunisia, Turkey, and Venezuela.
* * *
In a TCR-Europe report on Feb. 13, Standard & Poor's Ratings
Services lowered its corporate credit rating on Southfield,
Mich.-based Lear Corp. to 'B' from 'B+ and placed its ratings on
CreditWatch with negative implications following Lear's
announcement that it had agreed to be acquired by Carl Icahn-
controlled American Real Estate Partners, L.P.
As reported in the Troubled Company Reporter-Europe on Feb. 8,
Moody's Investors Service placed the long-term ratings of Lear
Corporation, corporate family rating at B2, under review for
possible downgrade. The company's speculative grade liquidity
rating of SGL-2 was affirmed.
PEABODY ENERGY: Declares US$0.06 Per Share Quarterly dividend
-------------------------------------------------------------
Peabody Energy Corp.'s board of directors has declared a regular
quarterly dividend on its common stock of US$0.06 per share.
The dividend is payable on May 18, 2007, to holders of record on
April 27, 2007.
Headquartered in St. Louis, Missouri, Peabody Energy Corporation
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and US$4.6 billion in revenues. Its
coal products fuel 10% of all U.S. and 3% of worldwide
electricity. The company has coal operations in Venezuela.
* * *
As reported in the Troubled Company Reporter on Mar 9, 2007,
Moody's Investors Service reported that, after the adoption of
final guidelines for preferred stock and hybrid securities
notching, it downgraded Peabody Energy Corporation's hybrid
instrument to Ba3. This instrument had been placed on review
for downgrade. This completes the review for possible
downgrade.
PETROLEOS DE VENEZUELA: Analysts Cynical on Bonds Tax Exemption
---------------------------------------------------------------
Financial analysts believe that the exemption granted to
Petroleos de Venezuela SA's bonds from income tax "add noise" to
the issuance of US$7.5 billion in foreign-currency denominated
bonds that will be paid in Venezuelan bolivars, El Universal
reports.
The Official Gazette relates that the yield gotten by Venezuelan
investors from the bonds of Petroleos de Venezuela will be free
from income tax for five years.
As reported in the Troubled Company Reporter-Latin America on
April 2, 2007, Petroleos de Venezuela SA Chief Executive Officer
and Energy Minister Rafael Ramirez said that no taxes for the
notes accounting for US$5 billion would be paid. The current
income tax law indicates that only government bonds are exempted
from payment of taxes. However, Minister Ramirez explained that
the Ministry of Finance made an exception on the matter.
Finance Minister Rodrigo Cabezas told El Universal, "While the
company issues the securities, the company is state property."
Petroleos de Venezuela's bonds expire in 2017, 2027 and 2037,
while the tax exemption will last until 2012, El Universal
states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company. Fitch said the rating
outlook is stable.
PETROLEOS DE VENEZUELA: Armed Forces to Seize Orinoco Projects
--------------------------------------------------------------
Venezuelan President Hugo Chavez told the Associated Press that
the nation's armed forces will accompany government officials
representing the Venezuelan state-run oil firm Petroleos de
Venezuela SA in confiscating oil projects in the Orinoco River
basin in May.
According to AP, President Chavez ordered that Petroleos de
Venezuela will take a minimum 60% interest in four heavy-oil
projects in the Orinoco River. He also urged the six private
firms operating in the region to be minority partners.
President Chavez told AP, "On May 1 we are going to take control
of the oil fields. I'm sure no transnational company is going
to draw a shotgun, but we will go with the armed forces and the
people."
AP underscores that the Orinoco projects were operated by:
-- BP PLC,
-- Exxon Mobil Corp.,
-- Chevron Corp.,
-- ConocoPhillips,
-- Total SA, and
-- Statoil ASA.
No agreement has been reached on the takeover yet. Talks are
expected to be difficult as the firms want a deal that takes
into account over US$17 billion in investments and loans related
to the projects, AP states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company. Fitch said the rating
outlook is stable.
PETROLEOS DE VENEZUELA: EDC Endorses Firm's Offer
-------------------------------------------------
Electricidad de Caracas or EDC said in a statement that it is
recommending shareholders to accept Venezuelan state-owned oil
firm Petroleos de Venezuela SA's offer for all its outstanding
American Depositary Shares.
According to EDC's statement, holders of ADS are advised to make
their own decisions whether to tender their ADS and accept the
offer.
Business News Americas relates that Petroleos de Venezuela
decided in February to purchase 82%-plus of EDC from the
latter's parent, AES Corporation, for US$739 million as part of
Venezuela's nationalization strategy.
Petroleos de Venezuela offered US$13.6675 per ADS, which
represents 50 shares of EDC common stock. Petroleos de
Venezuela launched the offer on April 9. It will be open
through May 8, BNamericas states.
About Electricidad de Caracas
Electricidad de Caracas is the largest private-sector electric
utility in Venezuela and generates, transmits, distributes, and
markets electricity primarily to metropolitan Caracas and its
surrounding areas. The AES Corp. owns 86% of EDC and acquired
its stake in June 2000, through a public-tender offer.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on Nov. 22, 2006, Fitch affirmed the local and
foreign currency Issuer Default Ratings of Petroleos de
Venezuela S.A. at 'BB-'. Fitch has also affirmed the 'AAA(ven)'
national scale rating of the company. Fitch said the rating
outlook is stable.
* VENEZUELA: Chavez Wants Cemex Nationalized to Boost Production
----------------------------------------------------------------
The Venezuelan Government has declared its interests to wrest
control of Cemex, the largest private cement company in the
country, local paper Vanguardia reported.
In a recent pronouncement President Hugo Chavez said, "If cement
companies don't want to increase production in the country, we
will take them over, inject resources, improve their operations,
lower costs and produce cement for ourselves, because we've had
enough of having them take away resources that belong to us, to
enrich a minority."
BusinessNews America said that, President Chavez criticized the
cement companies for their export-oriented production that left
local construction with "no cement with which to build."
President Chavez's pronouncement is in line with the government
policy nationalizing key industries to improve production. In
the last few years, the Venezuelan government has expropriated
telecommunications, electricity and oil companies, accusing them
of being underprodcutive, BusinessNews America related.
* * *
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: Eyes Operational Control of Cantv by June 4
--------------------------------------------------------
Venezuelan government eyes operational control of CA Nacional
Telefonos de Venezuela aka Cantv by June 4, Conatel, the local
telecommunications regulator, related to Business News Americas.
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2007, the government offered to purchase Verizon
Communication Inc.'s 28.51% stake at Cantv for US$572 million.
Holding 35.1% stake of Cantv after its purchase of Verizon
Communication's 28.5% holding, the government extended the
purchase offer to all Cantv shareholders, related the Troubled
Company Reporter last Feb. 23.
"Within a month, we will make a takeover bid both in New York
and Caracas. The State is bound to buy from any shareholders
willing to sell at the same purchase price that was paid to
Verizon," Telecommunications Minister Jesse Chacon said during
an interview with TV channel Venevision.
On April 9, to further to expand control, the government
launched a public tender offered of VEB4,560 per local share and
US$14.85 for American Depositary Shares on the New York Stock
Exchange to obtain a majority stake in Cantv, Trouble Company
Reporter added.
The minister said that the government expects to hold an
extraordinary shareholders' meeting to elect the new board of
the company on June 4, after the end of the tender offer,
Business News Americas reported.
According to Business News Americas, the minister added that
once under control, the government wants to continue expanding
the telephony infrastructure to provide coverage in areas where
the company has no reach. The government expects all localities
with more than 500 inhabitants to have fixed and mobile coverage
by 2011.
* * *
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: Colombia Gas Pipeline to be Completed in August
------------------------------------------------------------
The national gas pipeline construction between Venezuela and
Colombia will be completed in August, The Associated Press
reports, citing Venezuela's Energy Minister Rafael Ramirez as
saying.
Mr. Ramirez told AP that the pipeline will take natural gas from
Colombia to Venezuela during an initial seven-year period, and
after that it is expected to bring gas from Venezuela's vast,
largely untapped reserves to Colombia.
In 2005, Venezuelan President Hugo Chavez and Colombian
President Alvaro Uribe agreed to build the 230-km (145-mile)
pipeline from Colombia's La Guajira gas fields to Venezuela's
Paraguana refining complex, AP relates.
According to AP, both countries will sign a natural gas supply
deal during a two-day energy summit starting yesterday at
Venezuela's Margarita Island.
The pipeline will help advance the plans for a proposed
US$20 million South American gas pipeline that would run for
about 9,000 km from Venezuela's huge gas reserves to some
countries including Brazil and Argentina, Mr. Ramirez asserted.
AP says the South American gas pipeline project is designed for
regional integration to which President Chavez has promoted.
* * *
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.
* IMF Says Growth Remains Relatively High in LatAm & Caribbean
--------------------------------------------------------------
Economies of Latin America and the Caribbean grew vigorously in
2006 and should continue growing at a relatively high rate in
2007, said Anoop Singh, Director of the International Monetary
Fund's Western Hemisphere Department.
Mr. Singh noted, "The 2004-06 period is now on record as the
most vigorous period of growth for the region in Latin America
and the Caribbean since the 1970s, reflecting both stronger
policies and the favorable external environment." Poverty
indicators have also improved further although more efforts are
needed, as governments everywhere recognize.
According to Mr. Singh, the main challenges for the region
remain raising and sustaining long-term growth, and sharing the
benefits more equitably.
"To substantially raise living standards over the next two
decades, Latin America must grow faster on a sustainable basis,"
Mr. Singh stated. At the same time, policies needed to remain
vigilant to ensure that the safety margins built up in recent
years-particularly in the fiscal area-do not erode.
According to the Regional Economic Outlook's main findings for
Latin America and the Caribbean, 2006 was a year of strong
economic performance for Latin America and the Caribbean.
Output grew at an average rate of 5.5%, almost one percentage
point higher than in 2005, and slightly above world growth.
With many countries experiencing the strongest growth in several
years -- about one third of them grew at around 7% or higher --
unemployment and poverty rates have continued to fall.
Inequality has also declined, the first such fall in several
decades.
Other macroeconomic developments have also been favorable.
Inflation continued on a downward path, falling to a regional
average of 5%, although significant differences remain between
countries. For the region as a whole and in many individual
countries, primary fiscal balances and external current accounts
were at record highs, with average surpluses of 2.8 and 1.7 of
gross domestic product, respectively. Public debt ratios have
fallen somewhat further, and debt structures have also improved.
Many of these improvements were shared by countries experiencing
critical political transitions, reflecting the new economic
stability of the region. A supportive external environment
helped, with low interest rates, high commodity prices, and
strong world growth.
Looking forward, average growth in the region is expected to
decline moderately, to just under 5% in 2007 and about 4.25% in
2008. This reflects the lower pace of expansion in some
countries that grew at historically high rates in 2006, and less
buoyant external conditions. At the same time, inflation may
edge up, particularly in countries with high capacity
utilization, although it is likely to remain contained for the
region as a whole. Reflecting strong domestic demand and
continued rapid increases in government spending, external and
fiscal surpluses are expected to decline, to roughly half their
2006 levels in terms of gross domestic product. This underlines
the need to rein in the growth of government outlays, especially
current spending.
The report also takes a close look at the sensitivity of Latin
American growth to the external environment, which has been
exceptionally benign in recent years. Though much-improved
balance sheets and policy frameworks have made Latin America
more resilient than a decade ago, the region remains sensitive
to shocks to world growth, commodity prices, and financing
conditions. New analysis shows that the region's rising
resilience could accommodate moderate changes in these
conditions, although the region is still quite vulnerable to
sharply slower world growth combined with much tighter
financing, or a big drop in commodity prices. Reducing Latin
America's vulnerability further to such shocks requires
additional progress in lowering public debt levels, making
budgets and exchange rates more flexible, strengthening
financial systems, and diversifying the export structure.
Looking to the medium term, the Regional Economic Outlook shows
that significant increases in investment and, more importantly,
in productivity growth would be needed to raise per capita
incomes substantially in Latin America, and illustrates the
potential effects of reforms in two key areas (education and
labor markets). Based on recent research, the report also
addresses the question whether Latin America has now succeeded
in breaking with its history of periodic growth reversals. It
finds that several critical determinants of sustained growth-
including political institutions and trade regimes-have indeed
improved significantly in the last decades, and macroeconomic
volatility is much lower. Intensified efforts to create more
equitable and less divided societies, which will be better
positioned to avert sharp growth reversals in the future, would
also help. Progress in this area will take time and require
fiscal, education, labor, and financial sector reforms. In the
meantime, macroeconomic policies will need to remain vigilant,
to ensure that the region can grasp the opportunity to entrench
and raise growth.
***********
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,
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delos Santos, Christian Toledo, and Junald Ango, Editors.
Copyright 2076. All rights reserved. ISSN 1529-2746.
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