/raid1/www/Hosts/bankrupt/TCRLA_Public/070606.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, June 6, 2007, Vol. 7, Issue 112
Headlines
A R G E N T I N A
BANCO MACRO: Issues Five-Year Term Notes for US$100 Million
CABRA-HUE: Seeks Reorganization Okay in Buenos Aires Court
CONIVIL SA: Proofs of Claims Verification Is Until Aug. 8
EVRO SA: Proofs of Claims Verification Deadline Is Aug. 15
FORD MOTOR: May 2007 Sales Up by 9.4%, Truck Sales Up by 25%
KAROLINGYA INVESTMENTS: Claims Verification Ends on July 10
LA ESQUINA: Seeks Bankruptcy Protection Approval from Court
LA VACA: Proofs of Claims Verification Deadline Is June 25
STRADIVARIUS SA: Trustee Verifies Proofs of Claim Until Aug. 14
RED HAT: AG Edwards Puts Buy Recommendation on Firm's Shares
B A H A M A S
ISLE OF CAPRI: Morgan Joseph Maintains Hold Rating on Firm
B E R M U D A
DIGICEL LTD: Gasparillo Locals Block Cell Tower Installation
B O L I V I A
* BOLIVIA: Mining Ministry Names New Supervisors
B R A Z I L
ACTUANT CORP: Moody's Rates US$250 Mil. Sr. Unsec. Notes at Ba2
ACTUANT CORP: Launches Private Offering of US$250MM of Sr. Notes
BANCO NACIONAL: Trucks Acquisition Financings Up 58% in 4 Mos.
COMPANHIA SIDERURGICA: Workers Will Hold Strike Against Firm
FERRO CORPORATION: Hires Amy McGann as Assistant General Counsel
FLEXTRONICS INT'L: Moody's May Cut Ba1 Rating After Review
GRAFTECH INT'L: March 31 Balance Sheet Upside-Down by US$90 Million
LYONDELL CHEMICAL: Fitch to Rate US$500 Million Notes at BB-
PETROLEO BRASILEIRO: Hires Amy McGann as Assistant General Counsel
PETROLEO BRASILEIRO: Spending Over BRL500MM To Protect Amazon
PETROLEO BRASILEIRO: Giving 25% Stakes in 3 Blocks to India
SOLECTRON GLOBAL: Moody's May Lift B3 Rating After Review
WEIGHT WATCHERS: March 31 Balance Sheet Upside-Down by US$1 Bil.
* BRAZIL: Local Stock Market Tops US$1 Trillion Mark
C A Y M A N I S L A N D S
CARE HOLDINGS: Proofs of Claim Filing Is Until July 6
EQUITY HRA: Proofs of Claim Must be Filed by July 6
HARBORSIDE IIP: Proofs of Claim Filing Is Until July 6
NEW CARE EQUITY: Proofs of Claim Filing Ends on July 6
NEW CARE: Proofs of Claim Filing Deadline Is July 6
NEW EQUITY HRA: Proofs of Claim Filing Ends on July 6
NEW EQUITY HRB: Proofs of Claim Filing Deadline Is July 6
NEW HARBORSIDE HOLDINGS: Proofs of Claim Filing Ends on July 6
NEW HARBORSIDE IIP: Proofs of Claim Filing Ends on July 6
NEW HARBORSIDE INVESTMENTS: Proofs of Claim Filing Ends on July 6
NEW HARBORSIDE: Proofs of Claim Must be Filed by July 6
NEW HEALTHCARE INVESTMENTS: Proofs of Claim Must be Filed by July 6
NEW HEALTHCARE: Proofs of Claim Must be Filed by July 6
NEW HRB INVESTMENTS: Proofs of Claim Filing Ends on July 6
NEW HRB: Proofs of Claim Must be Filed by July 6
C O L O M B I A
AES CORP: Eyes No Nationalization Move in Other LatAm Nations
C O S T A R I C A
ALCATEL-LUCENT: Dresdner Kleinwort Holds Sell Rating on Firm
J A M A I C A
DYOLL INSURANCE: Coffee Farmers To Get Paid Next Week
M E X I C O
ALL AMERICAN: Rock River Wins Bidding Process for All Assets
ENTRAVISION COMM: Gilbert Vasquez Joins Board of Directors
GREAT PANTHER: Appoints Raakel Iskanius as Chief Financial Officer
GRUPO MEXICO: Miners To Hold Demonstrations Against Company
INTERTAPE POLYMER: Chief Financial Officer A. Archibald Resigns
KRISPY KREME: Incurs US$7.4 Mil. Net Loss in Qtr. Ended April 29
KRISPY KREME: Unveils Changes at Board Members Annual Meeting
PRIDE INTERNATIONAL: Morgan Keegan Holds Market Perform Rating
PRIDE INTERNATIONAL: Capital One Reaffirms Hold Rating on Firm
SPANSION LLC: Prices US$75 Million of Senior Secured Notes
TELTRONICS INC: Secures US$12-Million Loan from Wells Fargo
WENDY'S INT'L: Named Favorite QSR Brand for Second-Straight Year
P A R A G U A Y
GENERAL MOTORS: May 2007 Sales Up by 8.5%
P E R U
BBVA BANCO: Moody's Withdraws B1 Foreign Currency Deposit Rating
HERTZ CORP: Moody's Withdraws Ba1 Rating on US$1.6 Billion Debt
* PERU: Financial Regulator Grants Banking License to Santander
P U E R T O R I C O
DORAL FINANCIAL: FBOP Corp Presents US$610-Million Bid for Firm
T R I N I D A D & T O B A G O
BRISTOW GROUP: Moody's Rates Proposed US$250-Mil. Notes at Ba2
V E N E Z U E L A
DAIMLERCHRYSLER AG: Chrysler Group’s May 2007 U.S. Sales Rise 4%
PETROLEOS DE VENEZUELA: Investing VEB240B on Highway Project
PETROLEOS DE VENEZUELA: Unit Investing VEB46B on Pipelines
NORTHWEST AIRLINES: Announces Executive Appointments
- - - - -
=================
A R G E N T I N A
=================
BANCO MACRO: Issues Five-Year Term Notes for US$100 Million
-----------------------------------------------------------
Banco Macro offered an annual rate of 10.75% for the issuance of the third
series of Obligaciones Negociables for 5 years, simple and non-convertible
in shares, for a maximum amount equivalent to US$100 million.
The investors, basically from abroad, presented offers for US$430 million,
which demonstrated a good reception of these titles in the international
markets.
The ONs will be completely amortized at maturity, in 2012, and will pay
interests in June and December every year. The rate was calculated over a
capital in local currency equivalent to ARS307.94 million, which implies
an initial exhange rate of ARS3.0794.
The titles will be quoted in the Buenos Aires stock exchange market and
the Euro MTF Market of Luxembourg.
Moody's assigned a “Aa1.ar” rating at local level, whereas Fitch assigned
a “A1+” rating.
The operation was part of the program of the Obligaciones Negociables
already approved for up to US$400 million.
The international section of the placement was handled by Global Citigroup
Markets, whereas Raymond James Society Stock market acted as the local
agent.
Headquartered in Buenos Aires, Argentina, Banco Macro --
http://www.macro.com.ar/-- had consolidated assets of ARS16.8
billion (US$5.4 billion) and consolidated deposits of ARS11
billion (US$3.5 billion) as of March 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 5, 2007, Moody's Investors Service assigned a Ba1 global local
currency rating to Banco Macro S.A.'s US$100 million senior unsecured
Argentine peso-linked notes due 2012, issued under Macro's existing US$400
million Medium-Term Note Program.
CABRA-HUE: Seeks Reorganization Okay in Buenos Aires Court
----------------------------------------------------------
Cabra-Hue S.R.L. has requested for reorganization approval in the
National Commercial Court of First Instance No. 2 in Buenos Aires after
failing to pay its liabilities since April 23, 2007.
The reorganization petition, once approved by the court, will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.
Clerk No. 4 assists the court on this case.
The debtor can be reached at:
Cabra-Hue S.R.L.
Lavalle 1454
Buenos Aires, Argentina
CONIVIL SA: Proofs of Claims Verification Is Until Aug. 8
---------------------------------------------------------
Gabriel J. Churin, the court-appointed trustee for Conivil SA's bankruptcy
proceeding, will verify creditors' proofs of claim until
Aug. 8, 2007.
Mr. Churin will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 8 in Buenos
Aires, with the assistance of Clerk No. 15, 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 Conivil 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 Conivil’s accounting and
banking records will be submitted in court.
La Nacion did not state the reports submission dates.
Mr. Churin is also in charge of administering Conivil's assets under court
supervision and will take part in their disposal to the extent established
by law.
The debtor can be reached at:
Conivil SA
Florida 835
Buenos Aires, Argentina
The trustee can be reached at:
Gabriel J. Churin
Esmeralda 114/30
Buenos Aires, Argentina
EVRO SA: Proofs of Claims Verification Deadline Is Aug. 15
----------------------------------------------------------
Juan E. Preve, the court-appointed trustee for Evro SA's bankruptcy
proceeding, verifies creditors' proofs of claim until Aug. 15, 2007.
Mr. Preve will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 5 in Buenos
Aires, with the assistance of Clerk No. 10, 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 Evro 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 Evo’s accounting and banking
records will be submitted in court.
La Nacion did not state the reports submission dates.
Mr. Preve is also in charge of administering Evo's assets under court
supervision and will take part in their disposal to the extent established
by law.
The debtor can be reached at:
Evro SA
Cordoba 3000
Buenos Aires, Argentina
The trustee can be reached at:
Juan E. Preve
Pte. Roque Saenz Pena 651
Buenos Aires, Argentina
FORD MOTOR: May 2007 Sales Up by 9.4%, Truck Sales Up by 25%
------------------------------------------------------------
The Ford Edge continues to energize the crossover revolution, recognizing
its fifth consecutive month of growth, and is among a strong group of
trucks and crossovers that posted record setting sales, leading to a 9.4%
increase in sales for the Ford Motor Company of Canada, Limited in May.
"The buzz on the Ford Edge continues to build and so do the sales," Bill
Osborne, president and CEO, Ford of Canada, said. "Our selection of cars,
crossovers and trucks deliver the attributes Canadians value -– striking
design, great price, safety, versatility and fuel efficiency -– and
consistently meet the ever-changing needs of consumers."
In May, Ford of Canada saw overall combined sales increase of 9.4% at
25,218 units. Total truck sales were up 24.5% at 18,098 units. Although
car sales of 7,120 units marks a 16.3% decline, the Ford Mustang and
Fusion scored solid sales with increases of 16.5% and 9% respectively.
Ford Motor Company of Canada, Limited
May 2007 Vehicle Sales
2007 2006 % Change
---- ---- --------
Total Vehicles
May 25,218 23,044 +9.4
January – May 92,716 94,008 -1.4
Total Cars
May 7,120 8,503 -16.3
January – May 23,234 30,199 -23.1
Total Trucks
May 18,098 14,541 +24.5
January – May 69,482 63,809 +8.9
About Ford Motor Co.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents. With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda. The company provides
financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region. In Europe,
the company maintains a presence in Sweden, and the United Kingdom. The
company also distributes its brands in various Latin-American regions,
including Argentina and Brazil.
* * *
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.
KAROLINGYA INVESTMENTS: Claims Verification Ends on July 10
-----------------------------------------------------------
Sergio L. Novick, the court-appointed trustee for Karolingya Investments
S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until
July 10, 2007.
Mr. Novick 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 Karolingya Investments 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 Karolingya Investments’
accounting and banking records will be submitted in court.
Infobae did not state the reports submission dates.
Mr. Novick is also in charge of administering Karolingya Investments'
assets under court supervision and will take part in their disposal to the
extent established by law.
The trustee can be reached at:
Sergio L. Novick
Libertad 359
Buenos Aires, Argentina
LA ESQUINA: Seeks Bankruptcy Protection Approval from Court
-----------------------------------------------------------
The National Commercial Court of First Instance No. 7 in Buenos Aires is
studying the merits of La Esquina de Moldes SRL's request to enter
bankruptcy protection.
The report adds that that La Esquina filed a "Quiebra Decretada"
petition following cessation of debt payments on May 9, 2007.
The petition, once approved by the court, will transfer control
of the company's assets to a court-appointed trustee who will
supervise the liquidation proceedings.
The city's Clerk No. 13 assists the court on this case.
The debtor can be reached at:
La Esquina de Moldes SRL
Moldes 2497/99
Buenos Aires, Argentina
LA VACA: Proofs of Claims Verification Deadline Is June 25
----------------------------------------------------------
Luis Pedro Pereyra, the court-appointed trustee for La Vaca Guestaltica
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until
June 25, 2007.
Mr. Pereyra 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 La Vaca Guestaltica 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 La Vaca Guestaltica’s
accounting and banking records will be submitted in court.
Infobae did not state the reports submission dates.
Mr. Pereyra is also in charge of administering La Vaca Guestaltica'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 Pedro Pereyra
Roque Saenz Pena 651
Buenos Aires, Argentina
STRADIVARIUS SA: Trustee Verifies Proofs of Claim Until Aug. 14
---------------------------------------------------------------
Adolfo J. Santos, the court-appointed trustee for Stradivarius SA's
reorganization proceeding, verifies creditors' proofs of claim until Aug.
14, 2007.
The National Commercial Court of First Instance No. 4 in Buenos Aires,
with the assistance of Clerk No. 8, approved a petition for reorganization
filed by Stradivarius, according to a report from Argentine daily La
Nacion.
Mr. Santos 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 Stradivarius 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 Stradivarius' accounting and
banking records will be submitted in court.
La Nacion did not state the reports submission dates.
The debtor can be reached at:
Stradivarius SA
Cordoba 673
Buenos Aires, Argentina
The trustee can be reached at:
Adolfo J. Santos
Junin 55
Buenos Aires, Argentina
RED HAT: AG Edwards Puts Buy Recommendation on Firm's Shares
------------------------------------------------------------
AG Edwards analyst Kevin Buttigieg has assigned a "buy" rating on Red Hat
Inc.'s shares, Newratings.com reports.
Newratings.com relates that the 12-month target price for Red Hat's shares
was set at US$28.50.
Mr. Buttigieg said in a research note that the Linux's client uptake would
carry on “at a healthy rate going forward on account of the displacement
of new server shipments and Unix servers.”
AG Edwards told Newratings.com that “Red Hat’s ASPs” would rise due to the
increasing sales of the Red Hat Enterprise Linux 5 Advanced Platform.
Red Hat would keep its market leading position, Newratings.com states,
citing Mr. Buttigieg.
Headquartered in Raleigh, North Carolina Red Hat, Inc. --
http://www.redhat.com/-- is an open source and Linux provider. Red Hat
provides operating system software along with middleware, applications and
management solutions. Red Hat also offers support, training, and
consulting services to its customers worldwide and through top-tier
partnerships.
The company has offices in Singapore, Germany, and Argentina,
among others.
* * *
As reported on Nov. 3, 2006, Standard & Poor's Ratings Services revised
its outlook on Raleigh, North Carolina-based operating systems provider
Red Hat Inc. to stable from positive, and affirmed its 'B+' corporate
credit rating.
=============
B A H A M A S
=============
ISLE OF CAPRI: Morgan Joseph Maintains Hold Rating on Firm
----------------------------------------------------------
Morgan Joseph analysts have kept their "hold" rating on Isle of Capri
Casinos Inc.'s shares, Newratings.com reports.
The analysts said in a research note that Isle of Capri has several
properties. However, it isn't well diversified.
Newratings.com relates that the analysts anticipate that Isle of Capri’
operations in Biloxi would improve with the possible reopening of the
Biloxi Ocean Springs Bridge in November 2007.
The earnings per share estimate for 2008 was decreased to US$0.42 from
US$0.66, while the estimate for 2009 dropped to US$0.46 from US$0.69 to
indicate “weaker-than-expected returns” at Pompano Park, Newratings.com
states.
Based in Biloxi, Missippi and founded in 1992, Isle of Capri Casinos Inc.
(Nasdaq: ISLE) -- http://www.islecorp.com/-- owns and operates casinos in
Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana;
Bettendorf, Davenport and Marquette, Iowa; Kansas City and Boonville,
Missouri and a casino and harness track in Pompano Beach, Florida. The
company also operates and has a 57 percent ownership interest in two
casinos in Black Hawk, Colorado. Isle of Capri Casinos' international
gaming interests include a casino that it operates in Freeport, Grand
Bahama and a two-thirds ownership interest in casinos in Dudley and
Wolverhampton, England.
* * *
Moody's Investors Service affirmed its Ba3 Corporate Family Rating on Isle
of Capri Casinos in connection with its implementation of the new
Probability-of-Default and Loss-Given-Default rating methodology for the
Gaming, Lodging & Leisure sector. Moody's assigned LGD ratings to four of
the company's debts including a LGD5 rating on its 9% Sr. Sub. Notes,
suggesting debt holders will experience a 76% loss in the event of a
default.
=============
B E R M U D A
=============
DIGICEL LTD: Gasparillo Locals Block Cell Tower Installation
------------------------------------------------------------
Phoolo Danny-Maharaj at the Trinidad and Tobago Express reports that
residents of Gasparillo have organized a watch group to stop the
deployment of Digicel Group's cell tower in the area.
The Express relates that the tower was to be constructed on private lands
leased to Digicel between the houses of Enid Chatterpaul and Marcia
Farrow, who both disapproved of the cell tower.
Ms. Chatterpaul told The Express that Digicel didn't talk to her, while
Ms. Farrow said she told the company representative that she was against
the construction of the cell tower.
The report says that Digicel spoke to three out of the 500 residents in
Gasparillo.
According to The Express' Mr. Danny-Maharaj, the locals threatened to
block Alma Street, off Lumsden Road, to stop the cell tower's
construction.
The residents alleged that a load of gravel was brought to the area to be
used for the construction, according to The Express. However, the men
Digicel hired didn't yet start any work.
Digicel didn't have authorization from the corporation for the
installation of the tower, The Express says, citing Feeraz Ali – the
councillor for the Gasparillo/Bonne Aventure area -- and
Couva/Tabaquite/Talparo Regional Corporation deputy chairperson Sahadeo
Boondoo.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started 0operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478 million
and US$155 million, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- Proposed US$1.4 billion senior subordinated notes
due 2015 assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings was stable.
=============
B O L I V I A
=============
* BOLIVIA: Mining Ministry Names New Supervisors
------------------------------------------------
The Bolivian mining and metallurgy ministry has appointed new mines
supervisors for the departments of La Paz, Oruro and Potosi, Business News
Americas reports.
The ministry said in a statement that the new officials have the authority
to award mining concessions on behalf of the executive branch. They will
first address the dispute surrounding the technical and legal aspects of
mining concessions. The Bolivian mining code says that mines supervisors
also have the power to resolve administrative cases for nullifications,
expropriation, labor subjugation and returned mining concessions.
According to BNamericas, the appointments of the supervisors were made in
spite of a supreme decree that the administration passed last month
declaring all national territory a fiscal reserve and preventing the
awarding of new concessions in Bolivia.
The mining industry is asking that the government declare the decree
unconstitutional due to its series of problems, BNamericas states, citing
Guillermo Cortes, national mining chamber Canalmin's advisor.
* * *
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
===========
B R A Z I L
===========
ACTUANT CORP: Moody's Rates US$250 Mil. Sr. Unsec. Notes at Ba2
---------------------------------------------------------------
Moody's Investors Service assigned a Ba2 (LGD3, 43%) rating to Actuant
Corporation's US$250 million senior unsecured notes and affirmed the
company's Ba2 Corporate Family Rating.
Moody's also changed the company's outlook to positive from stable. The
change in outlook reflects Actuant's strong operations resulting in robust
cash flows and solid debt coverage metrics.
Actuant's Ba2 Corporate Family Rating reflects the company's
competitive market position in providing industrial tools and motion
control systems to diversified end-markets. Actuant has also been able to
integrate several acquisitions without interruptions to its core business.
The company is currently benefiting from global demand for its products,
which have contributed to strong credit metrics.
For LTM February 2007, Actuant's key credit metrics were:
-- EBITDA margin near 17%;
-- free cash flow/ debt near 10%;
-- Debt/EBITDA at 3.5 times; and
-- EBIT/Interest expense of 4.3 times.
These credit metrics position Actuant as one of the stronger
diversified manufacturer when compared to its rated industry peers. The
corporate family rating incorporates Moody's belief that Actuant will
continue with "bolt-on" acquisitions which could require incremental
capital investments. Constraining the corporate family rating is the
cyclicality of Actuant's industrial end markets.
The positive outlook reflects Moody's expectation that Actuant's debt
protection measures will continue to improve over the next twelve to
eighteen months as the company benefits from the robust demand in its end
markets. Future acquisitions are anticipated to be modest in size and
successfully integrated into the company's core operations, which should
further diversify its revenue sources. Additionally, Actuant continues to
improve its internal operating efficiencies. The key risk that Actuant
will continue to face is the cyclicality in the industrial end markets it
services. Nevertheless, Actuant should be able to weather future cyclical
downturns much better than in the past due to its broader product
offerings, diversity of industrial end markets, and a commitment to
maintain adequate liquidity.
The Ba2 (LGD3, 43%) rating on the existing senior secured bank credit
facility and the proposed US$250 million senior unsecured notes reflect a
comparable priority of claim each facility has within the company's
capital structure. Moody's notes that the collateral for the bank credit
facility is the pledge of 65% of the equity of certain material foreign
subsidiaries. Moody's does not ascribe significant recovery values to
this collateral package. As a result, both the bank credit facility and
unsecured notes have the same loss given default assessments. Moody's also
notes that the unsecured notes mature ten years from closing and diversify
the company's funding sources. Proceeds from the unsecured notes will be
used to repay a comparable amount of bank debt and to pay associated fees
and expenses.
These ratings/assessments were affected by this action:
-- Corporate Family Rating affirmed at Ba2;
-- Probability-of-default rating affirmed at Ba2;
-- US$400 million senior secured bank credit facility due 2009
affirmed at Ba2 (LGD3, 43%);
-- US$250 million senior unsecured notes due 2017 assigned at
Ba2 (LGD3, 43%).
Headquartered in Butler, Wis., Acuant Corp. (NYSE: ATU) --
http://www.actuant.com/-- is a diversified industrial company
with operations in more than 30 countries including Australia,
China, Italy, United Kingdom, Brazil, among others. The Actuant
businesses are market leaders in highly engineered position and
motion control systems and branded hydraulic and electrical
tools and supplies. The company employs a workforce of more
than 6,700 worldwide.
ACTUANT CORP: Launches Private Offering of US$250MM of Sr. Notes
----------------------------------------------------------------
Actuant Corporation will offer up to US$250 million in aggregate principal
amount of senior notes due in 2017 in a private placement, subject to
market and other conditions.
The company expects the offering will be completed in June 2007. The
issuance of the notes will be subject to customary closing conditions.
The company will use the net proceeds from the offering to refinance a
portion of its senior credit facility and to pay certain transaction costs
and expenses.
Based in Butler, Wis., Acuant Corp. (NYSE: ATU) --
http://www.actuant.com/-- is a diversified industrial company
with operations in more than 30 countries, including Australia, Brazil
China, Hong Kong, Italy, Japan, Taiwan and South Korea. . The Actuant
businesses are market leaders in highly engineered position and motion
control systems and branded hydraulic and electrical tools and supplies.
The company employs a workforce of more than 6,700 worldwide.
* * *
As reported in the Troubled Company Reporter on Oct. 23, 2006,
Moody's Investors Service affirmed its Ba2 corporate family rating
for Actuant Corp.
BANCO NACIONAL: Trucks Acquisition Financings Up 58% in 4 Mos.
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES has been
breaking monthly records in disbursements for the acquisition of trucks,
which reflects strong market acceleration. In the first four months this
year, the Finame Caminhoes program released BRL1.99 billion financings, an
amount 58% higher than the BRL1.25 billion in the same period, last year.
The domestic truck sales boom has contributed to accelerate the
performance of Finame transportation segment, which disbursements amounted
to BRL2.88 billion between last January and April, or 54% higher than the
first four months in 2006.
The Procaminhoneiro [Pro-truck driver], a program addressed to autonomous
truck drivers and small load transportation businesses, contributed to
these results. With less than one year in operation, the Procaminhoneiro
released, from July 2006, when it was launched, until April, BRL139.3
million financings, involving 1,145 operations all over the country. Out
of this total, 938 are operations for the purchase of new trucks, while
207 for the acquisition of used vehicles, with up eight years of use.
It is important, as well, the contribution of the program for renewal of
the Brazilian fleet which, in the case of the autonomous, now has over 20
years in use, in average.
The superintendent of BNDES Indirect Operations Area, Claudio Bernardo de
Moraes, confirms there is an increased domestic demand for trucks higher
than the offering. In view of this, the delivery term for heavy and
semi-heavy vehicles currently reaches up to 120 days, double what is
considered as normal. Also for the so-called off-road trucks, largely
used in the mining sector, there are waiting lists.
According to Mr. Moraes, many sectors explain the increased demand, in
special the agricultural sector recovery and expansion of the sugar and
alcohol segment, driven by the increased production of ethanol. “The
increase sugar cane transportation flow demands expansion of the truck
fleet,” he says.
The increased foreign trade, with higher load movement and the higher
demand for trucks by subcontractors also contribute for market warm up.
“This is a sign that construction companies are getting prepared for the
Programa de Aceleracao do Crescimento [Growth Acceleration Program]
investment cycle, believes BNDES superintendent.
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.
COMPANHIA SIDERURGICA: Workers Will Hold Strike Against Firm
------------------------------------------------------------
Companhia Siderurgica Nacional employees will hold demonstrations against
the company, Business News Americas reports, citing a source at the
metalworkers union representing the south of Rio de Janeiro.
The source told BNamericas that the workers decided on June 1 to strike,
alleging that Companhia Siderurgica was "locking up" workers at its Volta
Redonda mill in Rio de Janeiro.
At the first day of the strike on June 2, Companhia Siderurgica produced
about 7,300 tons of steel. Normally, the firm makes an average of 15,000
tons per day, BNamericas notes, citing the source.
The source commented to BNamericas, "So far, there is no indication that
the steelmaker wants to negotiate. CSN [Companhia Siderurgica] is forcing
employees to work and preventing them from leaving. This is a crime."
According to BNamericas, the workers demanded:
-- salary adjustment according to the current consumer
price index of 3.44%
-- 6% real wage increase, and
-- 33% restitution on salary losses.
The report says that Companhia Siderurgica has implemented pay hikes below
inflation since 1995.
BNamericas relates that Companhia Siderurgica offered:
-- salary adjustment according to the current consumer
price index,
-- a Brazilian real increase of 1.5%, and
-- one-off bonuses of BRL2,000.
About 80% of workers were against the strike, and production is running at
the normal rate of 15,000 tons per day, BNamericas states, citing a
Companhia Siderurgica press official.
Companhia Siderurgica Nacional is one of the lowest-cost steel
producers in the world, which is a result of its access to
proprietary, high-quality iron ore (at the Casa de Pedra mine);
self-sufficiency in energy; streamlined facilities; and
logistics advantages. This is in addition to the group's strong
market position in the fairly concentrated steel industry in
Brazil.
* * *
On Jan. 26, 2006, Standard and Poor's Rating Services assigned a
'BB' corporate credit rating on Brazilian flat carbon steelmaker
Companhia Siderurgica Nacional.
The 'BB' corporate credit rating on CSN reflects the company's
exposure to volatile demand and price cycles, increasing
competition in its home and predominant market of Brazil,
aggressive dividend policy and capital investment plan, and
sizable gross-debt position. These risks are partly offset by
CSN's privileged cost position and sound operating profile,
favorable market position in Brazil, strong export capabilities
to offset occasional domestic demand sluggishness, and
increasing business diversification.
FERRO CORPORATION: Hires Amy McGann as Assistant General Counsel
----------------------------------------------------------------
Ferro Corporation has appointed Amy B. McGann as its Assistant General
Counsel and Assistant Secretary.
Ms. McGann was formerly Corporate Counsel for American Greetings
Corporation, the publicly owned creator, manufacturer and distributor of
social expression products, headquartered in Cleveland, Ohio. Prior to
her employment with American Greetings, she was an Associate with Calfee,
Halter & Griswold LLP and Baker & Hostetler LLP, both Cleveland based-law
firms, where she provided general corporate counsel to both privately and
publicly held companies and organizations.
Ms. McGann earned her law degree from Case Western Reserve University
School of Law, a master's of business administration degree in economics
from Case Western Reserve University Weatherhead School of Management, and
a bachelor’s degree in finance from Boston College Carroll School of
Management.
Ms. McGann serves on the Cleveland Playhouse Square Partners’ Executive
Leadership Board and is a member of the Steering Committee of the
Cleveland Chapter of the Boston College Alumni Association.
Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE)
-- http://www.ferro.com/-- is a global producer of an array of
specialty chemicals including coatings, enamels, pigments,
plastic compounds, and specialty chemicals for use in industries
ranging from construction, pharmaceuticals and
telecommunications. Ferro operates through the following five
primary business segments: Performance Coatings, Electronic
Materials, Color and Performance Glass Materials, Polymer
Additives, and Specialty Plastics. Revenues were US$2 billion
for the FYE ended Dec. 31, 2006.
Ferro Corp. has global locations in Argentina, Australia,
Belgium, Brazil, China, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service assigned a B1 corporate
family rating to Ferro Corporation. Moody's also assigned a B1
rating to the company's US$200 million senior secured notes
(issued as unsecured notes in 2001) due in January 2009 and an
SGL-3 speculative grade liquidity rating.
FLEXTRONICS INT'L: Moody's May Cut Ba1 Rating After Review
----------------------------------------------------------
Moody's Investors Service placed the ratings of Flextronics International
Limited (Ba1 CFR) on review for possible downgrade and the B3 notes
ratings for Solectron Corporation on review for possible upgrade,
following the companies' announcement on June 4, 2007 that they have
entered into a definitive agreement for Flextronics to acquire Solectron
for approximately US$3.6 billion.
Flextronic's review for possible downgrade reflects the potential for
increased financial leverage to result if the transaction closes as
planned. Solectron's review for possible upgrade reflects the potential
increased scale and client diversity provided by the merger. Solectron's
corporate family rating has not been placed on review, but would be
withdrawn if the transaction closes as planned. Solectron's outstanding
notes are also subject to a change of control covenant, and may be
tendered at the option of investors upon the transaction's close.
The reviews will focus on the combined company's prospects for
acquisition spending, asset rationalization, asset returns, and client
retention, as well as its definitive capital structure and the timing for
restructuring actions and a restoration of more consistent free cash flow.
Moody's notes that free cash flow (cash flow from operating activities
less capital expenditures) for each company has been negative for at least
the trailing twelve months ended March 2007.
Under terms of the agreement, a combination of stock and cash will be
offered to Solectron shareholders, subject to the limitation that not more
than 70% in aggregate and no less than 50% in the aggregate of Solectron
shares will be converted into shares of Flextronics. Approximately US$1.8
billion incremental debt would be issued to satisfy the 50% financing, if
elected. The cash and stock consideration represents a premium ranging
between approximately 15% and 20% over Solectron's June 1, 2007 closing
price. Flextronics has arranged for fully committed unsecured term loan
backstop financing from Citigroup of up to US$2.5 billion and is
evaluating strategies for permanent financing. The transaction is subject
to regulatory and shareholder approvals and is expected to close by Dec.
31, 2007.
Ratings for Flextronics International Placed on Review for Possible
Downgrade:
-- Corporate Family Rating Ba1
-- US$400 million 6.25% Senior Subordinated Notes, due 2014 Ba2
-- US$400 million 6.5% Senior Subordinated Notes, due 2013 Ba2
-- US$7.7 million 9.875% Senior Subordinated Notes, due 2010
Ba2
Ratings for Solectron Corporation Placed on Review for Possible
Upgrade:
-- US$450 million 0.5% Convertible Senior Notes, due 2034 B3
-- US$150 million 8.0% Senior Subordinated Notes, due 2016 B3
Ratings Affirmed:
-- Solectron's Corporate Family Rating B1
Headquartered in Singapore, Flextronics International Ltd.
-- http://www.flextronics.com/-- provides electronics
manufacturing services through a network of facilities in over
30 countries worldwide including Brazil, Mexico, Finland, Hungary, Sweden
and the United Kingdom. The company delivers complete design,
engineering, and manufacturing services to aerospace, automotive,
computing, consumer digital, industrial, and infrastructure, medical and
mobile original equipment
manufacturers.
GRAFTECH INT'L: March 31 Balance Sheet Upside-Down by US$90 Million
-------------------------------------------------------------------
Graftech International Ltd.'s balance sheet at March 31, 2007, showed
US$771.6 million in total assets and US$861.6 million in total
liabilities, resulting in a US$90 million total stockholders' deficit.
GrafTech International Ltd. reported net income of US$17.9 million for the
first quarter ended March 31, 2007, compared with a net loss of US$4.6
million for the same period ended March 31, 2006.
Net sales increased to US$228 million for the first quarter ended
March 31, 2007, versus US$174 million in the first quarter of 2006.
Gross profit increased 54 percent to US$76 million, as compared to US$49
million in the first quarter of 2006.
Net cash provided by operating activities improved US$51 million to US$18
million, versus a use of US$33 million in the first quarter of 2006.
Operating net cash for the quarter included disbursements of a US$7
million call premium related to the US$135 million redemption of Senior
Notes, US$5 million to complete the final antitrust obligation, and US$4
million in restructuring payments. Operating net cash for the prior year
included disbursements of US$5 million in antitrust and restructuring
payments.
Net debt was reduced by US$12 million to US$497 million.
Craig Shular, chief executive officer of GrafTech, commented, "The company
is beginning to gain traction on a number of fronts as the impact of
several of our initiatives is beginning to flow through to our results.
Performance is improving due to higher product pricing, and benefits
realized from our previously announced productivity projects, overhead
reduction initiatives and tax planning efforts."
Total operating income from the segments increased US$40 million to US$51
million, as compared to US$11 million in the first quarter of 2006. Total
operating income from the segments as a percent of sales improved 16.0
percentage points to 22.3 percent, versus 6.3 percent in the 2006 first
quarter. First quarter 2007 operating income margin benefited by
approximately two percentage points as a result of a carryover of lower
cost raw materials from the prior year. Operating income margin for the
first quarter 2006 included an unfavorable impact of five percentage
points related to asset impairment charges in the quarter.
Selling and administrative and research and development expenses were
US$25 million in the 2007 first quarter, as compared to US$27 million in
the 2006 first quarter. The decrease was a result of realized benefits
from previously announced productivity initiatives.
Interest expense was US$12 million in the 2007 first quarter, flat as
compared to the same period in 2006.
During the first quarter of 2007, GrafTech recorded a net restructuring
charge of US$1 million as it continues to execute its previously
identified productivity and cost savings program. Other (income) expense,
net, was an expense of US$11 million in the first quarter 2007, as
compared to approximately zero in the first quarter 2006. The increase is
largely due to a charge of US$8 million related to the call premium and
fees associated with the redemption of US$135 million of our Senior Notes
in the first quarter 2007.
Mr. Shular commented, "We generated a US$51 million improvement in
operating cash flow, enabling us to complete the quarter with net debt
below US$500 million. Our team remains focused on its stated goal of
maximizing cash flow in order to build shareholder value. We recently
announced a third call of our Senior Notes, our most expensive debt, for
an additional US$50 million to be retired later this month. This brings
our total year-to-date Senior Note redemptions to US$185 million.
Following this third call, the amount outstanding will be reduced to
US$250 million. Recall, that at their peak, the outstanding Notes totaled
US$550 million."
Full-text copies of the company's consolidated financial statements for
the quarter ended March 31, 2007, are available for free at
http://researcharchives.com/t/s?2094
About GrafTech
Based in Parma, Ohio, GrafTech International Ltd. (NYSE: GTI) --
http://www.graftechaet.com/ -- manufactures and provides high
quality synthetic and natural graphite and carbon based products
and technical and research and development services, with
customers in 80 countries engaged in the manufacture of steel,
automotive products and electronics. The company manufactures
graphite electrodes, products essential to the production of
electric arc furnace steel. The company also manufactures thermal
management, fuel cell and other specialty graphite and carbon
products for, and provide services to, the electronics, power
generation, semiconductor, transportation, petrochemical and other
metals markets. GrafTech operates 11 state of the art
manufacturing facilities strategically located on four continents.
The company has operations in China, France and Brazil.
* * *
As reported in the Troubled Company Reporter on May 14, 2007, Standard &
Poor's Ratings Services raised its corporate credit
rating on GrafTech International Ltd. to 'B+' from 'B'. In addition, S&P
raised the rating on the company's US$215 million senior secured revolving
credit facility to 'BB-' from 'B+' and affirmed the '1' recovery rating on
the facility. Also, Standard & Poor's raised its rating on Graftech's
convertible notes to 'B-' from 'CCC+'. Lastly, S&P affirmed the 'B-'
rating on GrafTech's US$550 million senior secured notes and assigned them
a '5' recovery rating. The outlook is stable.
LYONDELL CHEMICAL: Fitch to Rate US$500 Million Notes at BB-
------------------------------------------------------------
Fitch Ratings expects to assign a 'BB-' rating to Lyondell Chemical
Company's US$500 million announced offering of senior unsecured notes due
2017. Proceeds from this offering are expected to fully repay the
existing US$500 million, 10.875% senior subordinated notes due 2009.
Fitch has also affirmed Lyondell's other ratings as:
-- Issuer Default Rating at 'BB-';
-- Senior secured credit facility and term loan at 'BB+';
-- Senior secured notes at 'BB+';
-- Senior unsecured notes at 'BB-';
-- Debentures at 'BB-';
Additionally, Fitch has affirmed and withdrawn its 'B' rating on
Lyondell's senior subordinated notes. The Rating Outlook for Lyondell
remains Positive. Approximately US$5 billion of debt is affected by these
actions.
The affirmation of Lyondell's ratings and assignment of 'BB-' rating to
the new senior unsecured notes are supported by the company's debt
reduction efforts, lower average cost of borrowings and improved financial
flexibility. Lyondell continues to benefit
from multiple operational cash streams as well as cash from the recent
Inorganics sale. Fitch expects debt reduction will accelerate in the
near-term as the sale of its Inorganics business was completed in mid-May.
Proceeds from the asset sale are expected to primarily fund the repayment
of Millennium America Inc.'s remaining US$373 million, 9.25% senior notes
due 2008, Equistar Chemicals, LP's US$300 million, 10.125% senior notes
due 2008 and US$300 million, 10.625% senior notes due 2011.
Fitch also continues to expect Lyondell's debt reduction targets to be met
during 2008 and high probability of additional debt repayment to occur
thereafter. In addition, Lyondell's 'BB-' Issuer Default Rating
incorporates the company's highly integrated businesses in refining,
petrochemicals and performance products. Lyondell's size, liquidity and
access to capital markets support the rating.
The Positive Rating Outlook reflects continued relatively favorable
business conditions for the markets Lyondell participates in, and the
expectation that Lyondell and its subsidiaries will accelerate their debt
reduction efforts in the next year. Fitch also expects that energy and
raw material prices will continue to be volatile however average prices
are expected to trend lower. Strong operations from petrochemical and
refining operations are likely to offset more cyclical businesses within
the portfolio.
Lyondell holds leading global positions in propylene oxide and
derivatives, as well as leading North American positions in ethylene,
propylene, polyethylene, aromatics, acetic acid, and vinyl acetate
monomer. The company also has substantial refining operations located in
Houston, Tex. The company benefits from strong technology positions and
high barriers to entry in its major product lines. Lyondell owns 100% of
Equistar; 70.5% directly and 29.5% indirectly through its wholly owned
subsidiary Millennium. For the latest three months ending March 31, 2007,
Lyondell and its subsidiaries generated US$2.37 billion of EBITDA on
US$23.3 billion in sales.
Lyondell has operations in South Korea, Brazil and the Netherlands.
PETROLEO BRASILEIRO: Hires Amy McGann as Assistant General Counsel
------------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras' president, Jose Sergio Gabrielli de
Azevedo, signed a partnership agreement June 4, in New Delhi, with ONGC,
India's biggest oil & gas corporation. The agreement, which also involves
ONGC Videsh Limited, ONGC's international branch, was signed by Indian
executives Radhey Shyam Sharma and R. S. Butola. Six deepwater
exploratory blocks will be operated, three of which in Brazil and three
off the Eastern Coast of India.
In Brazil, the blocks are located in Maranhao, in the Sergipe-Alagoas
Basin and in the Santos Basin. In India, meanwhile, the blocks to be
explored are in the Krishna Godavari, Mahanadi, and Cauvery Basins. All
of these blocks are in deep waters and at least one well will be drilled
in each one of them.
Technological Cooperation
President Luiz Inacio Lula da Silva and the Prime Minister of India,
Manmohan Singh, attended the event. Petrobras' International Area -- ANI
-- Director, Nestor Cervero, and its Exploration & Production Director,
Guilherme Estrella, in addition to executive managers Francisco Nepomuceno
(Exploration & Production), and Samir Passos Awad (International Area for
America, Africa and Eurasia) were also present.
The agreement also foresees cooperation in several oil industry
activities, the highlight of which offshore exploration & production in
India, Brazil, and in other countries.
ONGC produces come 600,000 barrels of oil and 70 million cubic meters of
gas per day and has sought to diversify its operations by investing in
other countries. It recently purchased 15% participation in the Ostra,
Abalone, Argonauta and Nautilus fields, in the Campos Basin, which are
operated by Shell and in which Petrobras has 35% participation.
Common Interest
Petrobras has participated in bids held by the Indian oil regulator since
2005, but until now it hadn't struck any deals in India. During its
negotiations with the Indian national oil company, Petrobras identified
areas of common interest between the companies, not only as far as
exploratory portfolios are concerned, but also in technological aspects.
ONGC is well positioned in a few Asian regions such as, for example,
Myanmar, Vietnam, and Iran.
From the technological standpoint, the Indian company is interested in
having Petrobras as a partner for its renowned excellence in deep and
ultra-deep water exploration and production. Since negotiations were
kicked off, Petrobras sent two missions to India seeking to study the
opportunities ONGC offered. The Indian company, meanwhile, sent a team to
Brazil last April to analyze Petrobras' offer.
CEO Forum
Soon before signing the agreement with ONGC and ONGC Videsh Ltd., Mr.
Gabrielli spoke as the president of the delegation of Brazilian executives
who are travelling with president Lula in his visit to India. During the
closing ceremony for the First Brazil-India Forum of CEOs, Mr. Gabrielli
said the gathering held today (Monday, 06/04) among businesspeople from
both countries "was extremely productive." To Petrobras' president,
business opportunities have been identified which are certain to intensify
the Brazil/India trade relations, particularly in biofuels,
infrastructure, pharmaceuticals, and transportation. The need for
technical mission exchanges between the two countries was also defined.
Biofuels
Mr. Gabrielli met with President Lula and with India's Oil & Gas minister,
Murli Deora, to discuss the Indian interest in undertaking joint ethanol
projects. President Lula stated the Indian government is interested in
boosting ethanol production and use in India using Brazilian technology.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Spending Over BRL500MM To Protect Amazon
-------------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA told Bernd
Radowitz at Dow Jones Newswires that it will spend over BRL500 million
until 2012 to protect the Amazon rain forest.
Dow Jones' Mr. Radowitz relates that Petroleo Brasileiro produces over
50,000 barrels of oil per day in Urucu, which is in the middle of the
Amazon rain forest.
According to Petroleo Brasileiro's press release, the firm will launch a
center for environmental protection in Manaus.
The center will reduce risks brought by oil production in the Amazon,
Petroleo Brasileiro told Dow Jones' Mr. Radowitz .
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
PETROLEO BRASILEIRO: Giving 25% Stakes in 3 Blocks to India
-----------------------------------------------------------
Brazilian state-run oil company Petroleo Brasileiro SA will give 25%
stakes in its three exploration and production blocks to Indian
counterpart Oil and Natural Gas Corp., ONGC's chairperson R.S. Sharma told
Himendra Kumar at Dow Jones Newswires.
Dow Jones' Mr. Kumar relates that ONGC's overseas exploration unit ONGC
Videsh Ltd. will take the stake, under an accord signed between Petroleo
Brasileiro and ONGC on June 4, 2007.
According to Petroleo Brasileiro's statement, the firm signed a
partnership accord with ONGC.
Business News Americas notes that the partnership involves a joint
exploration of deep water oil blocks -- three in Brazil and three off the
Indian east coast. In Brazil, the firms will explore for oil in deep
water areas in Maranhao and in the Santos and Sergipe-Alagoas basins,
while they will jointly explore the Krishna Godavari, Mahanadi and Cauvery
blocks in India.
ONGC will invest up to US$1 billion in the Brazilian blocks over three
years, Dow Jones' Mr. Kumar notes, citing Mr. Sharma.
ONGC will give Petroleo Brasileiro equity in three Indian exploration and
production blocks. ONGC will grant Petroleo Brasileiro 15%, 25% and 40%
stakes in three offshore blocks located off India's eastern coast, Dow
Jones' Mr. Kumar states.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
SOLECTRON GLOBAL: Moody's May Lift B3 Rating After Review
---------------------------------------------------------
Moody's Investors Service placed the ratings of Flextronics International
Limited (Ba1 CFR) on review for possible downgrade and the B3 notes
ratings for Solectron Corporation on review for possible upgrade,
following the companies' announcement on June 4, 2007 that they have
entered into a definitive agreement for Flextronics to acquire Solectron
for approximately US$3.6 billion.
Flextronic's review for possible downgrade reflects the potential for
increased financial leverage to result if the transaction closes as
planned. Solectron's review for possible upgrade reflects the potential
increased scale and client diversity provided by the merger. Solectron's
corporate family rating has not been placed on review, but would be
withdrawn if the transaction closes as planned. Solectron's outstanding
notes are also subject to a change of control covenant, and may be
tendered at the option of investors upon the transaction's close.
The reviews will focus on the combined company's prospects for
acquisition spending, asset rationalization, asset returns, and client
retention, as well as its definitive capital structure and the timing for
restructuring actions and a restoration of more consistent free cash flow.
Moody's notes that free cash flow (cash flow from operating activities
less capital expenditures) for each company has been negative for at least
the trailing twelve months ended March 2007.
Under terms of the agreement, a combination of stock and cash will be
offered to Solectron shareholders, subject to the limitation that not more
than 70% in aggregate and no less than 50% in the aggregate of Solectron
shares will be converted into shares of Flextronics. Approximately US$1.8
billion incremental debt would be issued to satisfy the 50% financing, if
elected. The cash and stock consideration represents a premium ranging
between approximately 15% and 20% over Solectron's June 1, 2007 closing
price. Flextronics has arranged for fully committed unsecured term loan
backstop financing from Citigroup of up to US$2.5 billion and is
evaluating strategies for permanent financing. The transaction is subject
to regulatory and shareholder approvals and is expected to close by Dec.
31, 2007.
Ratings for Flextronics International Placed on Review for Possible
Downgrade:
-- Corporate Family Rating Ba1
-- US$400 million 6.25% Senior Subordinated Notes, due 2014 Ba2
-- US$400 million 6.5% Senior Subordinated Notes, due 2013 Ba2
-- US$7.7 million 9.875% Senior Subordinated Notes, due 2010
Ba2
Ratings for Solectron Corporation Placed on Review for Possible
Upgrade:
-- US$450 million 0.5% Convertible Senior Notes, due 2034 B3
-- US$150 million 8.0% Senior Subordinated Notes, due 2016 B3
Ratings Affirmed:
-- Solectron's Corporate Family Rating B1
Headquartered in Milpitas, California, Solectron Corp.
(NYSE: SLR) -- http://www.solectron.com/-- provides a full
range of worldwide manufacturing and integrated supply chain
services to the world's premier high-tech electronics companies.
Solectron's offerings include new-product design and
introduction services, materials management, product
manufacturing, and product warranty and end-of-life support.
The company operates in more than 20 countries on five
continents including France, Malaysia, and Brazil, among others.
It had sales from continuing operations of US$10.6 billion in
fiscal 2006.
WEIGHT WATCHERS: March 31 Balance Sheet Upside-Down by US$1 Bil.
----------------------------------------------------------------
Weight Watchers International, Inc., had total assets of
US$1 billion, total liabilities of US$2 billion, resulting in a total
stockholders’ deficit of US$1 billion as of March 31, 2007.
The company’s balance sheet as of March 31, 2007, also showed strained
liquidity with total current assets of US$268.2 million and total current
liabilities of US$186.6 million.
For the first quarter of 2007, net revenues increased US$57.4 million or
16.8% to US$399.4 million, up from US$342 million in the first quarter of
2006. Net income for the first quarter of 2007 was US$53.8 million, as
compared with US$57 million for the first quarter of 2006.
Sources and Uses of Cash
For the three months ended March 31, 2007, cash and cash equivalents were
US$53.9 million, an increase of US$16.4 million from
Dec. 30, 2006. For the three months ended April 1, 2006, cash and cash
equivalents were US$52.9 million, an increase of US$21.4 million from Dec.
31, 2005.
Balance Sheet
Comparing the balance sheet at March 31, 2007, with that at
Dec. 30, 2006, the company’s cash balance has increased by US$16.4 million
to US$53.9 million, as noted above. The company’s working capital deficit
at March 31, 2007, was US$81.5 million, including US$53.9 million of cash,
as compared to US$81.8 million, including US$37.5 million of cash, at Dec.
30, 2006. Excluding the change in cash, the working capital deficit
increased by US$16.1 million from Dec. 30, 2006, to March 31, 2007.
Of the US$16.1 million increase in negative working capital, about US$36.1
million relates to operational items and US$3.6 million reflects an
increase in the current portion of our long-term debt. These are
partially offset by a decrease in negative working capital of
US$23.6 million arising from higher deferred taxes. The US$36.1 million
of operational items is largely the result of a US$28.3 million increase
in deferred revenue for member prepayments associated with our new
commitment plans. The remaining US$7.8 million is comprised of net
payables and accrued expenses increasing US$8.8 million, inventories
declining by US$3.6 million, and a US$4.6 million higher receivables
balance in the quarter.
Long Term Debt
As of March 31, 2007, the WWI Credit Facility consists of a term loan
facility in an aggregate amount of up to US$1.5 billion consisting of Term
Loan A, Additional Term Loan A and Term Loan B, and the Revolver in the
amount of up to US$500 million. At March 31, 2007, WWI had debt of US$1.8
billion and had additional availability under its US$500 million Revolver
of US$229.2 million.
At March 31, 2007 and Dec. 30, 2006, the company’s debt consisted entirely
of variable-rate instruments. The average interest rate on the company's
debt was about 6.7% and 6.8% per annum at March 31, 2007, and Dec. 30,
2006, respectively.
Commenting on results, David Kirchhoff, president and chief executive
officer of the company, said, “During the first quarter, we began to see
some of the benefits of our transforming initiatives, particularly Monthly
Pass. The company is taking meaningful steps to achieve its long-term
growth aspirations by focusing on improving member success and increasing
our overall relevance.”
The company reaffirms its full year 2007 earnings guidance of between
US$2.33 and US$2.47 per fully diluted share, including US$0.02 per share
of non-recurring expense associated with the early extinguishment of debt
in the first quarter of 2007.
About Weight Watchers
Headquartered in New York, U.S.A., Weight Watchers International Inc.
(NYSE: WTW) -- http://www.weightwatchersinternational.com/-- provides
weight management services, with a presence in 30 countries around the
world, including Brazil, Netherlands, and New Zealand. The company serves
its customers through Weight Watchers branded products and services,
including meetings conducted by Weight Watchers International and its
franchisees.
* BRAZIL: Local Stock Market Tops US$1 Trillion Mark
----------------------------------------------------
Bovespa, Brazil's local stock exchange, surpassed US$1 trillion as metals
prices rose to double corporate profits, Paulo Winterstein at Bloomberg
News reports.
Bloomberg says the overall value of Brazilian equities rose to US$1.02
trillion on June 1 after the Bovespa index rallied 2.2%. The gauge has
climbed 45% in the past year and more than quadrupled since 2002, helped
by a stronger currency.
Bloomberg adds profits have risen 108% during the four-year rally,
according to research company Economatica, buoyed by rising prices of
nickel and iron-ore. Foreigners also have increased investment
on speculation economic growth will accelerate. International investors
accounted for 34 percent of shares traded this year, up from 22% in 2000,
according to the Sao Paulo Stock Exchange.
* * *
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.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local
currency sovereign Issuer Default Ratings to 'BB+' from 'BB'
and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed
Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable.
===========================
C A Y M A N I S L A N D S
===========================
CARE HOLDINGS: Proofs of Claim Filing Is Until July 6
------------------------------------------------------
Care Holdings Ltd. creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
Care Holdings shareholders agreed on May 10, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
EQUITY HRA: Proofs of Claim Must be Filed by July 6
---------------------------------------------------
Equity HRA Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
Equity HRA’s shareholders agreed on May 10, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
HARBORSIDE IIP: Proofs of Claim Filing Is Until July 6
------------------------------------------------------
Harborside IIP Ltd. creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
Harborside IIP’s shareholders agreed on May 10, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW CARE EQUITY: Proofs of Claim Filing Ends on July 6
------------------------------------------------------
New Care Equity Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
New Care’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW CARE: Proofs of Claim Filing Deadline Is July 6
---------------------------------------------------
New Care Holdings Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
New Care’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW EQUITY HRA: Proofs of Claim Filing Ends on July 6
-----------------------------------------------------
New Equity HRA Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
New Equity’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW EQUITY HRB: Proofs of Claim Filing Deadline Is July 6
---------------------------------------------------------
New Equity HRB Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
New Equity’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW HARBORSIDE HOLDINGS: Proofs of Claim Filing Ends on July 6
--------------------------------------------------------------
New Harborside Holdings Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
New Harborside’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW HARBORSIDE IIP: Proofs of Claim Filing Ends on July 6
---------------------------------------------------------
New Harborside IIP Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
New Harborside’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW HARBORSIDE INVESTMENTS: Proofs of Claim Filing Ends on July 6
-----------------------------------------------------------------
New Harborside Investments Ltd.’s creditors are given until
July 6, 2007, to prove their claims to Westport Services Ltd., 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.
New Harborside’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW HARBORSIDE: Proofs of Claim Must be Filed by July 6
-------------------------------------------------------
New Harborside Equity Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
New Harborside’s shareholders agreed on May 10, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW HEALTHCARE INVESTMENTS: Proofs of Claim Must be Filed by July 6
-------------------------------------------------------------------
New Healthcare Investments Ltd.’s creditors are given until
July 6, 2007, to prove their claims to Westport Services Ltd., 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.
New Healthcare’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW HEALTHCARE: Proofs of Claim Must be Filed by July 6
------------------------------------------------------
New Healthcare Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
New Healthcare’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW HRB INVESTMENTS: Proofs of Claim Filing Ends on July 6
----------------------------------------------------------
New HRB Investments Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
New HRB’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
NEW HRB: Proofs of Claim Must be Filed by July 6
------------------------------------------------
New HRB Holdings Ltd.’s creditors are given until July 6, 2007, to
prove their claims to Westport Services Ltd., 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.
New HRB’s shareholders agreed on May 14, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
===============
C O L O M B I A
===============
AES CORP: Eyes No Nationalization Move in Other LatAm Nations
-------------------------------------------------------------
The AES Corporation's Chief Operating Officer Andres Gluski told Business
News Americas that the firm sees no nationalization drive by other Latin
American nations, after the Venezuelan government's repurchase of stakes
in AES' unit Electricidad de Caracas.
Mr. Gluski said in a Web cast, "We really don't see a contagion of this
event from Venezuela. Latin America is somewhat of a geographical
expression more than an expression of specific country risk."
The Venezuelan government paid for the nationalization, which needed
considerable funds, BNamericas notes, citing Mr. Gluski.
According to BNamericas, Venezuelan state-run oil company Petroleos de
Venezuela SA had agreed to purchase Electricidad de Caracas from AES for
US$739 million.
Mr. Gluski commented to BNamericas, "Very few other Latin American
countries have at their disposition these sort of fiscal resources to buy
out private companies."
AES preserved value in Venezuela by having a strong local position and
understanding like being updated on regulatory changes and the
macroeconomic environment, Mr. Gluski told BNamericas.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.
AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela. Fuels include biomass, diesel, coal, gas and
hydro. The group also pursues business development activities
in the region. AES has been in the region since May 1993, when
it acquired the CTSN power plant in Argentina.
* * *
In Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
given-default rating methodology. Additionally, Moody's revised
its probability-of-default ratings and assigned loss-given-
default ratings on the company's loans and bond debt obligations
including the B1 rating on its senior unsecured notes 7.75% due
2014, which was also given an LGD4 loss-given default rating,
suggesting noteholders will experience a 55% loss in the event
of a default.
===================
C O S T A R I C A
===================
ALCATEL-LUCENT: Dresdner Kleinwort Holds Sell Rating on Firm
------------------------------------------------------------
Dresdner Kleinwort analyst Per Lindberg has kept his "sell" rating on
Alcatel-Lucent's shares, Newratings.com reports.
According to Newratings.com, the target price for Alcatel-Lucent's shares
was set at EUR8.
Mr. Lindberg said in a research note that the performance of Nortel's
WCDMA radio in the UK and Italy is unlikely to impress Vodafone.
Telefonica might kick out Nortel as its WCDMA radio partner in Germany and
the UK as it did in Spain, Newratings.com states, citing Mr. Lindberg.
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.
* * *
As reported on April 13, Fitch Ratings affirmed Alcatel-Lucent's ratings
at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and
Short-term 'F2' and simultaneously withdrawn them.
As of Feb. 7, 2007, Moody's Investor Services puts a Ba2 rating on
Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's
B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
=============
J A M A I C A
=============
DYOLL INSURANCE: Coffee Farmers To Get Paid Next Week
-----------------------------------------------------
The coffee farmers owed by Dyoll Insurance will get their insurance
compensation next week, Radio Jamaica reports, citing Radio Jamaica.
As reported in the Troubled Company Reporter-Latin America on
May 21, 2007, the Trustees of the Coffee Farmers Insurance Fund wouldn't
be able to resolve issues preventing the payment of the proceeds to coffee
farmers owed by Dyoll Insurance by the May 31 deadline. Jamaican
Agriculture Minister Roger Clarke said
that it had been discovered that some of the coffee farmers who
suffered crop damage during Hurricane Ivan were overpaid, which
could affect the collection for the Dyoll Insurance pay-out.
The Coffee Insurance Scheme Trustees reportedly repaid the US$60
million that the Jamaican government disbursed to coffee farmers
in 2006, as compensation from Dyoll Insurance. It has not be
determined how many farmers were overpaid and how much was
overpaid. Minister Clarke said that the money would have to be
repaid. A Blue Mountain coffee farmers' representative had said that
other than issues of overpayments, the trustees failed to make the
payments due to stale-dated cheques and duplication with the list of
farmers.
Minister Clarke told Radio Jamaica that preparations have been completed
for the disbursement of cheques.
Dyoll Group Ltd. is a Jamaica-based company that is principally
engaged in the insurance business. Jamaica's Financial Services
Commission has assumed temporary management of the Jamaica-based
Dyoll Insurance Co. Ltd. in Mar. 7, 2005, in order to establish
the true position of the Company, address the matter of
settlement to its claimants and ensure that its policies will
remain in force after a high level of insurance claims were
leveled on the company as a result of the hurricane Ivan.
Kenneth Tomlinson was appointed temporary manager. Jamaica's
Supreme Court ordered for the distribution of a US$653 million
fund held by the FSC in accordance with the Insurance Act 2001,
section 59, which says that the prescribed deposit, on the
winding up of an insurance company, should be applied first to
settle the claims of local policyholders.
===========
M E X I C O
===========
ALL AMERICAN: Rock River Wins Bidding Process for All Assets
------------------------------------------------------------
All American Semiconductor, Inc., disclosed that Rock River Capital was
the successful bidder for substantially all of the company's operating
assets and is expected to continue to operate as a going concern business
utilizing the acquired assets of All American and All American's 42 years
of experience and service to the industry subject to Bankruptcy Court
approval.
The bid was made by a two-party consortium of Rock River
Capital LLC and the Company's senior secured lenders for which Harris N.A.
acts as agent. Rock River did not purchase the company's commercial tort
claims, avoidance actions, accounts receivable and certain other
miscellaneous assets. Subject to Bankruptcy Court approval, the company's
senior secured lenders were the successful bidders for the its accounts
receivable. None of the company's commercial tort claims or avoidance
actions was sold. The aggregate purchase price from the auction is
US$15.2 million, which will be paid to Harris N.A. As agent for the senior
secured lenders. The auction included assets of All American's 33
subsidiaries in the United States, Canada, Mexico, Europe and Asia.
The auction was held on May 31, 2007, at the Miami offices of the
company's counsel, Squire, Sanders & Dempsey, L.L.P. Bankruptcy Court
approval of the sale to the successful bidders is scheduled for hearing on
June 5, 2007. The closing of the sale is set to occur no later than June
8, 2007.
About All American Semiconductor
Headquartered in Miami, Florida, All American Semiconductor
Inc. (Pink Sheets: SEMI.PK) -- http://www.allamerican.com/--
is a distributor of electronic components manufactured by
others. The company distributes a full range of semiconductors
including transistors, diodes, memory devices, microprocessors,
microcontrollers, other integrated circuits, active matrix
displays and various board-level products. All American also
distributes passive components such as capacitors, resistors and
inductors; and electromechanical products such as power
supplies, cable, switches, connectors, filters and sockets. The
company also offers complete solutions for flat panel display
products. In total, the company offers approximately 40,000
products produced by approximately 60 manufacturers. The
company has 36 strategic locations throughout North America and
Mexico, as well as operations in both Asia and Europe.
The company and its debtor-affiliates filed for Chapter 11
protection on April 25, 2007 (Bankr. S.D. Fla. Lead Case No.
07-12963). Tina M. Talarchyk, Esq., at Squire Sanders & Dempsey
LLP, in West Palm Beach, Florida, represents the Debtors. Jerry
M. Markowitz, Esq., at Markowitz, Davis, Ringel & Trusty, P.A.,
and William M. Hawkins, Esq., at Loeb & Loeb LLP, represents the
Committee. As of Feb. 28, 2007, total assets was US$117,634,000
and total debts was US$106,024,000.
ENTRAVISION COMM: Gilbert Vasquez Joins Board of Directors
----------------------------------------------------------
Entravision Communications Corporation has elected Gilbert R.
Vasquez to the company's Board of Directors at the
company's 2007 annual stockholder meeting. Mr. Vasquez was also appointed
as a member of the Audit Committee of the Board.
Mr. Vasquez has been the managing partner of the certified public
accounting firm of Vasquez & Company LLP since 1967. He served as an
executive board member of the 1984 Olympic Organizing Committee and
currently serves as a board member of its successor organization, the
Amateur Athletic Foundation of Los Angeles. Mr. Vasquez also serves on
the boards of the Tomas Rivera Policy Institute, the Cal State LA
Foundation, Manufacturers Bank and Promerica Bank.
Walter F. Ulloa, Chairman and Chief Executive Officer of Entravision,
commented, "We are pleased to welcome Gilbert to Entravision's Board of
Directors. His financial and accounting expertise, as well as his insight
and experience as a board member, will be invaluable in helping guide
Entravision in the execution of its strategic plan."
Mr. Vasquez commented, "I look forward to working with Entravision
management and all the other members of the Board. Entravision is an
exciting company within the Spanish-language media industry and is
uniquely positioned to capitalize on the burgeoning population and rapidly
growing buying-power of the U.S. Hispanic market."
Headquartered in Santa Monica, California, Entravision
Communications Corporation (NYSE: EVC) -- http://www.entravision.com/--
is a diversified Spanish-language media company utilizing a combination of
television, radio and outdoor operations to reach approximately 75% of
Hispanic consumers across the United States, as well as the border markets
of Mexico. Entravision is the largest affiliate group of both Univision
television network and Univision's
TeleFutura network, with television stations in 20 of the
nation's top 50 Hispanic markets in the United States.
Entravision owns and operates one of the nation's largest groups
of primarily Spanish-language radio stations, consisting of 54
owned and operated radio stations in 21 U.S. markets.
Entravision's outdoor advertising operations consist of
approximately 11,100 advertising faces located primarily in Los
Angeles and New York.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 10, 2007, Standard & Poor's Ratings Services revised its
outlook on Entravision Communications Corp. to positive from
stable. At the same time, Standard & Poor's affirmed its 'B+'
long-term corporate credit rating on the company. The company
had US$497.8 million of total debt outstanding as of Dec. 31, 2006.
GREAT PANTHER: Appoints Raakel Iskanius as Chief Financial Officer
------------------------------------------------------------------
Great Panther Resources Limited appointed Ms. Raakel Iskanius, CA, to the
position of Chief Financial Officer.
"Raakel is a senior accounting professional with 17 years of experience in
public practice as well as private industry. She has worked with both
public and non-public companies, in both Canada and the USA." said Mr.
Kaare Foy, the company’s Executive Chairman and former CFO. "Her
background includes experience with natural gas distribution, facilities &
real estate management, and engineering services".
Most recently, Ms. Iskanius was the senior financial and regulatory
reporting manager at Terasen Gas Inc., a SEDAR filing company with
revenues of US$1.5 billion-plus. Her responsibilities included managing
the financial accounting and regulatory reporting staff of twenty-eight,
being responsible for: the preparation of the utility’s financial
statements, Sarbanes-Oxley control documentation, and timely filing of the
company’s regulatory reports.
Raakel articled at KPMG while obtaining her Chartered Accountant
designation in 1999. In addition to her CA designation, Raakel obtained
her Certified General Accountants designation in 1995.
"Having only ninety staff at the beginning of last year to having almost
five hundred currently, and having transformed Great Panther from an
exploration company into a silver producer with five consecutive quarterly
production records, the company now demands senior financial managers of
Raakel’s calibre. We are fortunate to have secured somebody of her
experience and track record", Mr. Foy has said.
About Great Panther
Great Panther Resources Limited (TSX-V: GPR) through its
acquisition of the Topia and Guanajuato Mines in Mexico has
transformed from a company that was exclusively focused on mineral
exploration to a company involved in the mining of precious and
base metals.
Going Concern Doubt
As reported in the Troubled Company Reporter on July 13, 2006,
KPMG LLP in Vancouver, Canada, raised substantial doubt about
Great Panther Resources Limited's ability to continue as a going
concern after auditing the company's consolidated financial
statements for the years ended Dec. 31, 2005, and 2004. The
auditors pointed to the company's recurring losses and operating
cash flow deficiencies.
GRUPO MEXICO: Miners To Hold Demonstrations Against Company
-----------------------------------------------------------
Workers at several mines owned by Grupo Mexico SA, de CV, will hold a
protest on the alleged violation of collective labor contracts, EFE News
reports, citing the national mine and metallurgical workers union.
Union spokesperson Carlos Pavon Campost told Business News Americas that
Grupo Mexico refused to negotiate new collective contracts. Previous
contracts already expired.
Mr. Pavon commented to BNamericas, "The strike has been called precisely
because the collective contracts are already expired, and if there is no
deal, then we do not know just how long this [strike] will go on. They
have already gone more than a month past their review dates, and in the
case of Cananea, since last year."
Grupo Mexico has refused to deal with the union since leader Napoleon
Gomez Urrutia was reinstated earlier this year. Mr. Urrutia had been
ousted by the government last year, BNamericas notes, citing the
spokesperson. The union has asked the labor ministry to bring Grupo
Mexico to the negotiating table for mediated talks.
EFE News relates that the union will launch the strike on
June 10. The union warned it would affect the installations of some Grupo
Mexico units in:
-- San Luis Potosi,
-- Zacatecas,
-- Chihuahua,
-- Coahuila,
-- Sonora, and
-- Guerrero.
According to the union's statement, Grupo Mexico breached the collective
bargaining accords, mainly through the lack of safety in its mines and
plants.
EFE News notes that Grupo Mexico director Xavier Garcia de Quevedo had
said that the mining union must abandon “union terrorism."
Grupo Mexico lost up to US$4 billion in potential income during the
2000-2006 period due to a total of 186 strikes, EFE News states, citing
figures compiled by the Mining Chamber of Mexico.
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'. Fitch said the rating outlook is stable.
INTERTAPE POLYMER: Chief Financial Officer A. Archibald Resigns
---------------------------------------------------------------
Intertape Polymer Group Inc. disclosed that Andrew M. Archibald C.A. has
advised the company of his intention to retire as chief financial officer
as of June 30, 2007.
Mr. Archibald joined Intertape Polymer Group Inc. in 1989 as its vice
president finance. In May 1995 he became the company's chief financial
officer and was also elected as vice president administration, a position
he held through January 2005.
"The board appreciates Andrew's years of service and dedication to the
company,” Michael Richards, the company's chairman of the board,
commented. His contributions were instrumental in the growth and success
of Intertape."
Victor DiTommaso, currently the company's vice president, finance, will
assume Mr. Archibald's responsibilities subsequent to
June 30th.
Headquartered in Quebec, Canada, Intertape Polymer Group (TSX:
ITP) (NYSE: ITP) -- http://www.intertapepolymer.com/-- develops
and manufactures specialized polyolefin plastic and paper based
packaging products and complementary packaging systems for
industrial and retail use. Headquartered in Montreal, Quebec and
Sarasota/Bradenton, Florida, the company employs about 2450
employees with operations in 18 locations, including 13
manufacturing facilities in North America, one in Portugal and in
Mexico.
* * *
Intertape Polymer Group, Inc., carries Standard & Poor's 'B-' corporate
credit and senior secured ratings. In addition, the company also carries
Standard & Poor's 'CCC' senior subordinated rating.
KRISPY KREME: Incurs US$7.4 Mil. Net Loss in Qtr. Ended April 29
----------------------------------------------------------------
Krispy Kreme Doughnuts Inc. reported financial results for the
quarter ended April 29, 2007, the first quarter of fiscal 2008.
Revenues for the first quarter decreased 7.1% to US$110.9 million
compared to US$119.4 million in the first quarter of last year. Company
Stores revenues decreased 6.4% to US$80.5 million, revenues from franchise
operations increased 9.9% to US$5.0 million, and KK Supply Chain revenues
decreased 11.6% to US$25.5 million.
First quarter systemwide sales decreased 2.8% from the first quarter of
last year. Systemwide average weekly sales per store decreased
approximately 1.5% to approximately US$39,300 per store. Company Stores
average weekly sales per store increased 3.4% to approximately US$55,300
per store. Systemwide average weekly sales per store are lower than
Company average weekly sales per store principally because the growth in
satellite stores, which have lower average weekly sales than factory
stores, largely has been concentrated in franchise stores and not in
Company stores.
The net loss for the first quarter was US$7.4 million compared to a net
loss of US$6.0 million, in the comparable period last year. The net loss
for the quarter includes a charge of US$9.6 million representing a
prepayment fee and the write-off of deferred financing costs related to
long-term debt refinanced during the quarter. The refinancing resulted in
a decrease in the rate of interest accruing on the company's long-term
debt of approximately 425 basis points annually compared to interest rates
paid in fiscal 2007 on the refinanced facility. Cash on the balance sheet
remained over US$30 million at quarter end.
Impairment charges and lease termination costs totaled US$12.7 million in
the first quarter this year, compared to US$755,000 in the first quarter
of fiscal 2007.
Results for the first quarter of fiscal 2008 also include a credit of
US$14.9 million, representing the decrease from January 28 to March 2 in
the estimated fair value of the securities issued by the company on March
2, 2007, in connection with the settlement of the class action litigation
and partial settlement of the shareholder derivative action.
General and administrative expenses totaled US$6.8 million in the first
quarter this year, compared to US$16.6 million in the first quarter last
year. The company incurred professional fees, net of insurance
recoveries, of approximately US$725,000 and US$7.9 million in the first
quarter of fiscal 2008 and 2007, respectively, associated with internal
and external investigations, litigation and the services of an interim
management firm formerly engaged by the company. In addition, general and
administrative expenses fell due to a US$1.5 million increase in corporate
support costs allocated to the company's business segments and included in
direct operating expenses. Exclusive of these effects, general and
administrative expenses fell approximately US$1.1 million from last year's
first quarter.
During the quarter, 13 new Krispy Kreme stores, comprised of 9 factory
stores and 4 satellites, were opened systemwide, and 4 factory stores were
closed systemwide. This brings the total number of stores systemwide at
quarter end to 404, consisting of 301 factory stores and 103 satellites.
The net increase of 9 stores in the quarter reflects a net increase of 12
international stores and a net decrease of 3 domestic stores.
"While Krispy Kreme still faces some longstanding challenges, we
continue to advance the turnaround," said Daryl Brewster, President and
Chief Executive Officer of Krispy Kreme. "During the quarter, we improved
our average weekly sales per Company store and slowed the decline in
systemwide sales. We refinanced our credit facilities to achieve cost
savings. We reduced special professional fees and made progress in
reducing other general and administrative costs. Our international
franchisees continued to show significant growth. We also took steps to
reevaluate
elements of the business, which resulted in recording impairment charges
of US$12.7 million to write down certain assets."
Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed. There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating system wide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.
The U.S. District Court for the Middle District of North
Carolina has set Feb. 7, 2007, as the hearing date for the final
approval of the terms of the settlement of the shareholder
derivative action entitled Wright v. Krispy Kreme Doughnuts
Inc., et al.
KRISPY KREME: Unveils Changes at Board Members Annual Meeting
-------------------------------------------------------------
Krispy Kreme Doughnuts Inc. reported the results of its Annual Meeting of
Shareholders held June 4 in Winston-Salem, North Carolina.
During the Meeting, shareholders elected two new members to the Krispy
Kreme Board of Directors: Lynn Crump-Caine and C. Stephen Lynn.
Shareholders also re-elected three Board members who were in classes up
for election at the meeting: Daryl G. Brewster, Krispy Kreme President and
Chief Executive Officer, Robert S. McCoy, Jr. and Charles A. Blixt.
Additionally, Krispy Kreme shareholders approved amendments to the 2000
Stock Incentive Plan and ratified the appointment of the company's
independent registered public accounting firm.
Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed. There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating system wide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.
The U.S. District Court for the Middle District of North
Carolina has set Feb. 7, 2007, as the hearing date for the final
approval of the terms of the settlement of the shareholder
derivative action entitled Wright v. Krispy Kreme Doughnuts
Inc., et al.
PRIDE INTERNATIONAL: Morgan Keegan Holds Market Perform Rating
--------------------------------------------------------------
Morgan Keegan analysts have kept their "market perform" rating on Pride
International Inc's shares, Newratings.com reports.
The analysts said in a research note published on June 1 that Pride
International’s “recent fleet update” showed a boost in rates “for the
Pride Venezuela semi in West Africa” and a risein the “downtime expected
for Pride Mexico's upgrades.”
The analysts told Newratings.com that the unstable US Gulf jack-up markets
seem to be improving.
The earnings per share estimate for 2007 was decreased to US$2.82 from
US$2.88, while the estimate for 2008 dropped to US$4.05 from US$4.20 to
show lower interim US Gulf jack-up rates and additional yard time in the
second half of 2007, Newratings.com states.
Headquartered in Houston, Texas, Pride International Inc. (NYSE:
PDE) -- http://www.prideinternational.com/-- provides onshore
and offshore contract drilling and related services in more than
25 countries, operating a diverse fleet of 277 rigs, including
two ultra-deepwater drillships, 12 semisubmersible rigs, 28
jackups, 16 tender-assisted, barge and platform rigs, and 214
land rigs.
* * *
As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service affirmed its Ba1 Corporate Family
Rating for Pride International Inc.
PRIDE INTERNATIONAL: Capital One Reaffirms Hold Rating on Firm
--------------------------------------------------------------
Capital One Southcoast analysts have reaffirmed their "hold" rating on
Pride International Inc's shares, Newratings.com reports.
Newratings.com relates that the target price for Pride International's
shares was set at US$40.
The analysts said in a research note that Pride International issued a
“fairly neutral monthly fleet status report.”
The analysts told Newratings.com that Pride Alaska’s day rates rose to
US$135,000 from US$112,000.
Two of Pride International’s “formerly idle GOM jack ups are back on
contract,” Newratings.com states, citing Capital One.
Headquartered in Houston, Texas, Pride International Inc. (NYSE:
PDE) -- http://www.prideinternational.com/-- provides onshore
and offshore contract drilling and related services in more than
25 countries, operating a diverse fleet of 277 rigs, including
two ultra-deepwater drillships, 12 semisubmersible rigs, 28
jackups, 16 tender-assisted, barge and platform rigs, and 214
land rigs.
* * *
As reported in the Troubled Company Reporter on Oct. 5, 2006,
Moody's Investors Service affirmed its Ba1 Corporate Family
Rating for Pride International Inc.
SPANSION LLC: Prices US$75 Million of Senior Secured Notes
----------------------------------------------------------
Spansion LLC priced the terms of US$75 million aggregate principal amount
of Senior Secured Floating Rate Notes due 2013 in a private offering to
qualified institutional buyers pursuant to Rule 144A under the Securities
Act of 1933, as amended, and outside the United States to non-U.S. persons
in compliance with Regulation S under the Securities Act.
The Additional Notes are part of the same series of Spansion LLC’s US$550
million aggregate principal amount of Senior Secured Floating Rate Notes
due 2013 issued and sold by Spansion LLC on May 18, 2007. The interest
rate and other terms of the Additional Notes will be identical in all
respects to the Initial Notes, except that the offering price of the
Additional Notes is 101.125% plus accrued interest from May 18, 2007.
Spansion LLC expects to use the net proceeds of the offering of Additional
Notes for capital expenditures, working capital and general corporate
purposes.
About Spansion
Spansion Inc., -- http://www.spansion.com/--headquartered in Sunnyvale,
California, and parent of Spansion LLC, is a leading provider of flash
memory semiconductors that's after its initial public offering in December
2005, is owned approximately 38% by Advanced Micro Devices and 25% by
Fujitsu Limited.
The company has European operations in France, Asia-Pacific facilities in
Japan, China, Malaysia and Thailand, as well as sales offices in Latin
American countries including Brazil and Mexico.
* * *
Spansion Inc. carries Standard & Poor's Ratings Services 'B'
corporate credit rating.
As reported in the Troubled Company Reporter on May 11, 2007, Moody's
Investors Service assigned a B1 rating to Spansion LLC's
proposed US$550 million senior secured floating rate notes due 2013.
Standard & Poor's assigned its 'B+' issue rating and its '1' recovery
rating to Spansion LLC's new US$550 million senior secured
floating rate notes.
TELTRONICS INC: Secures US$12-Million Loan from Wells Fargo
-----------------------------------------------------------
Teltronics Inc. has received a US$12 million facility from Wells Fargo
Foothill, part of Wells Fargo & Company. Teltronics plans to use the
funding for working capital and to support growth strategies by backing
new opportunities.
"As we continue to expand our product services and offerings, it is
important to establish a banking relationship with a strategic partner
more attune to our business needs, stated Ewen Cameron, President and CEO
for Teltronics. "We are excited about Wells Fargo Foothill's knowledge in
the technology industry because it provides Teltronics with a unique
funding opportunity that allows for more creative investing and growth."
"We are pleased to have been able to provide this facility for
Teltronics," said Jerry L. Jansen, senior vice president with Wells Fargo
Foothill. "We look forward to working with the company in support of its
plans for future growth."
About Wells Fargo
Wells Fargo Foothill -- http://www.wffoothill.com/-- provides senior
secured financing to middle-market companies across the United States and
Canada, offering flexible, innovative credit facilities from US$10 million
to US$1 billion and more. It is part of Wells Fargo & Company, a
diversified financial services company with US$486 billion in assets,
providing banking, insurance, investments, mortgage and consumer finance
to more than 23 million customers from more than 6,000 stores and the
Internet across North America and elsewhere internationally. Wells Fargo
Bank, N.A. is the only bank in the U.S., and one of only two banks
worldwide, to have the highest credit rating from both Moody's Investors
Service, "Aaa," and Standard & Poor's Ratings Services, "AAA."
About Teltronics
Headquartered in Sarasota, Florida, Teltronics, Inc. (OTCBB:
TELT) -- http://www.teltronics.com/-- provides communications
solutions and services for businesses. The company manufactures
telephone switching systems and software for small-to-large size
businesses and government facilities. Teltronics offers a full
suite of Contact Center solutions -- software, services and
support -- to help their clients satisfy customer interactions.
Teltronics also provides remote maintenance hardware and
software solutions to help large organizations and regional
telephone companies effectively monitor and maintain their voice
and data networks. The company serves as an electronic
contract manufacturing partner to customers in the US and
overseas.
Teltronics, Inc., designs, installs, develops, manufactures and
markets electronic hardware and application software products
and also engages in electronic manufacturing services in the
telecommunication industry. The company's products are
classified into intelligent systems management, digital
switching systems, voice over Internet protocol (VoIP), customer
contact management systems and emergency response systems.
Overall operations are classified into three reportable
segments: Teltronics, Inc., Teltronics Limited (UK) and Mexico.
Its Mexico office is located at Naucalpan de Juarez.
Teltronics Inc.'s balance sheet at Dec. 30, 2006, showed total
assets of US$16.7 million and total liabilities of US$18.1
million resulting in a total shareholders' deficit of US$1.4
million. The company's Shareholders' deficiency at
Dec. 31, 2005, stood at US$2.5 million.
WENDY'S INT'L: Named Favorite QSR Brand for Second-Straight Year
----------------------------------------------------------------
Wendy’s International Inc. recently rated as consumers’ favorite
quick-service restaurant -- QSR -- for the second-straight year, based on
consumer responses in QSR(R) Magazine’s 2007 Consumer Survey.
In addition, Wendy’s(R) tied for second position in offering healthier
menu options and ranked second in brand loyalty. Wendy’s ranked third in
delivering consistent quality from one location to the next.
“We are honored to be recognized as consumers’ favorite quick-service
restaurant,” said Wendy’s CEO and President Kerrii Anderson. “This
recognition is a tribute to our franchisees and operators who provide
fresh, quality food with caring service every day in more than 6,000
Wendy’s restaurants throughout the world.
“As we say at Wendy’s, ‘Quality is our Recipe(R),’” Anderson continued.
“That is the major point of distinction between Wendy’s and other
quick-service restaurants. We use fresh, never frozen, beef and make
every hamburger to order right off the grill, just like Dave Thomas did
when he founded Wendy’s in 1969. We top every sandwich with fresh
condiments, including whole-leaf lettuce and tomatoes that we slice every
day in our restaurants.”
Recently, Zagat Survey(R), which is considered a world-leading provider of
consumer survey-based leisure content, named Wendy’s as having the best
hamburger in the quick-service restaurant industry. In addition, Wendy’s
ranked first among quick-service “mega-chains” (i.e., those with at least
5,000 outlets) for food, facilities and popularity.
Wendy’s also took the top spot for customer satisfaction in the “limited
service restaurants" category in this year’s American Customer
Satisfaction Index (ACSI) survey produced by the University of Michigan’s
Stephen M. Ross Business School.
About Wendy's International
Headquartered in Dublin, Ohio, Wendy's International Inc.
-- http://www.wendysintl.com/-- and its subsidiaries operate,
develop, and franchise a system of quick service and fast casual
restaurants in the United States, Canada, Mexico, Argentina,
among others.
* * *
As reported in the Troubled Company Reporter on Oct. 17, 2006,
Moody's Investors Service held its Ba2 Corporate Family Rating
for Wendy's International Inc.
Additionally, Moody's held its Ba2 ratings on the company's
US$200 million 6.25% Senior Unsecured Notes Due 2011 and US$225
million 6.2% Senior Unsecured Notes Due 2014. Moody's assigned
the debentures an LGD4 rating suggesting noteholders will
experience a 54% loss in the event of default.
===============
P A R A G U A Y
===============
GENERAL MOTORS: May 2007 Sales Up by 8.5%
-----------------------------------------
General Motors Corp. dealers in the United States delivered 375,682
vehicles in May, up 4.7 percent compared with year-ago monthly sales. On
an unadjusted basis, sales were up 8.8%. GM's May retail sales of 279,731
were up 8.5%. On an unadjusted basis, retail sales were up 12.8 percent
compared with a year ago.
May sales reflected the continuing strength of GM's new product portfolio.
Increased sales of Chevrolet Impala and Saturn AURA as well as the new
industry leading mid-size crossovers GMC Acadia, Saturn OUTLOOK and Buick
Enclave demonstrate GM's strong positioning in the marketplace for
fuel-efficient and alternative fuel (E-85) vehicles. The Chevrolet
Silverado and GMC Sierra full-size pickup trucks - fuel efficiency leaders
in their class - pushed GM's large pickup segment sales up 10 percent in
total and 14 percent retail compared with May 2006.
Divisions with retail sales increases for the month included Saturn (up
59%), GMC (up 18%) and Pontiac (up 8%). Additionally, Chevrolet was again
the sales leader in the industry (up 5%).
"Our May results were extremely positive as we saw strong total and retail
sales increases. Our significant market share gains in full-size trucks
and crossovers validates the decision we made to invest in
industry-leading fuel economy in these important segments," said Mark
LaNeve, vice president, GM North American Sales, Service and Marketing.
"We are particularly pleased with the Chevrolet Silverado and GMC Sierra
pickups, which pushed our full-size truck sales up more than 10 percent
for the month. As with many of our vehicles, these great all-new trucks
offer what the customer is looking for - best-in-class fuel economy,
terrific performance and tremendous value. And our newest entry to the
crossover segment, the Buick Enclave, is performing ahead of our
expectations. Dealers are selling them as soon as they arrive from the
plant. Our mid-size crossover segment performance, including the GMC
Acadia and Saturn OUTLOOK, continues to grow at a blistering pace."
The product renaissance at Saturn continued to accelerate with total sales
increasing almost 69 percent compared with a year ago, highlighting the
tremendous public acceptance of the new lineup of Saturn vehicles
including SKY, AURA and AURA Hybrid, OUTLOOK, VUE and VUE Hybrid.
Saturn's ION small car is soon to be replaced with the popular ASTRA.
Saturn is the fastest growing brand in the industry this year.
Chevrolet Aveo, Cobalt, Malibu, Impala, HHR, Silverado, Suburban, and
Avalanche; Pontiac G6 and Solstice; Saturn SKY and VUE; Saab 9-3, GMC
Sierra and Yukon XL; Buick Lucerne; Cadillac SRX, Escalade ESV and
Escalade EXT; and HUMMER H3 all had May retail sales increases compared
with a year ago. Pontiac G5, Saturn AURA and OUTLOOK, GMC Acadia and the
Buick Enclave are newly offered products and continue to contribute retail
sales momentum.
The GMC Acadia, Saturn OUTLOOK and Buick Enclave had retail sales of more
than 12,800 vehicles, pushing a significant retail increase in GM's
mid-crossover segment. GM's total sales of more than 16,600 vehicles in
this segment pushed monthly performance up more than 211 percent, compared
with the same month last year.
"We're seeing positive results, including increased residual values for
our products, as a result of staying aligned and disciplined to our North
American turnaround and market growth plans. For customers, this means
providing industry-leading products in terms of design, segment fuel
economy, warranty coverage and performance," LaNeve added. "This
translates to a beneficial cost of ownership experience. With new
products such as the Cadillac CTS and Chevrolet Malibu coming to dealer
showrooms later this year, we expect to build on this customer
enthusiasm."
Certified Used Vehicles
May 2007 sales for all certified GM brands, including GM Certified Used
Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified
Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER
Certified Pre-Owned Vehicles, were 45,892 units, up 3% from last May.
Total year-to-date certified GM sales are 227,365 units, up 3% from the
same period last year.
GM Certified Used Vehicles, the industry's top-selling
manufacturer-certified used brand, posted 40,306 sales, up nearly 5% from
last May. Year-to-date sales for GM Certified Used Vehicles are 199,715
units, up 4% from the same period in 2006.
Cadillac Certified Pre-Owned Vehicles posted May sales of 3,102 units,
down 6% from last May. Saturn Certified Pre-Owned Vehicles sold 1,603
units in May, down 13%. Saab Certified Pre-Owned Vehicles sold 797 units,
comparable to last May, and HUMMER Certified Pre-Owned Vehicles sold 84
units, down 6%. "GM Certified Used Vehicles, the industry's top-selling
certified brand, had another category-leading performance with sales of
40,306 units, up nearly 5%," said LaNeve. "GM Certified also set a new
all-time high with year-to-date sales through May of 199,715 units, up 4%
from its 2006 segment record performance for the same period."
Unchanged at 1.145 Million Vehicles, 2007 Third-Quarter Production
Forecast Set at 1.075 Million Vehicles
In May, GM North America produced 401,000 vehicles: 139,000 cars and
262,000 trucks. This is down 25,000 units or 6% compared to May 2006 when
the region produced 425,000 vehicles: 158,000 cars and 267,000 trucks.
The region's 2007 second-quarter production forecast is unchanged at 1.145
million vehicles: 403,000 cars and 742,000 trucks. Additionally, the
region's initial 2007 third-quarter production forecast is set at 1.075
million vehicles: 377,000 cars and 698,000 trucks, up 2% from
third-quarter 2006 actuals.
GM also announced revised 2007 second-quarter and initial 2007
third-quarter production forecast for its international regions.
GM Europe
GM Europe's 2007 second-quarter production forecast is revised at 468,000
vehicles, down 5,000 units from last month's guidance. In the
second-quarter of 2006 the region built 495,000 vehicles. The region's
initial 2007 third-quarter production forecast is set at 389,000 vehicles.
In the third-quarter of 2006 the region built 374,000 vehicles.
GM Asia Pacific
GM Asia Pacific's 2007 second-quarter production forecast remains
unchanged at 568,000 vehicles. In the second-quarter of 2006 the region
built 482,000 vehicles. The region's initial 2007 third-quarter
production forecast is set at 524,000 vehicles. In the third-quarter of
2006 the region built 433,000 vehicles.
GM Latin America
GM Latin America, Africa and the Middle East - The region's 2007
second-quarter production forecast is unchanged at 233,000 vehicles. In
the second-quarter of 2006 the region built 206,000 vehicles. The
region's initial 2007 third-quarter production forecast is set at 258,000
vehicles. In the third-quarter of 2006 the region built 215,000 vehicles.
About General Motors
General Motors Corp. (NYSE: GM), the world's largest automaker in 2006,
has been the annual global industry sales leader for 76 years. Founded in
1908, GM today employs about 280,000 people around the world. With global
headquarters in Detroit, GM manufactures its cars and trucks in 33
countries. In 2006, nearly 9.1 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM
Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's
OnStar subsidiary is the industry leader in vehicle safety, security and
information services.
General Motors has Asia-Pacific operations in India, China, Indonesia,
Japan, the Philippines, among others. I t has locations in European
countries including Belgium, Austria, and France. In Latin-America, the
company maintains locations in Argentina, Brazil, Chile, Colombia,
Ecuador, Venezuela, Paraguay and Uruguay.
* * *
As reported in the Troubled Company Reporter on May 28, 2007,
Standard & Poor's Ratings Services placed General Motors Corp.'s
corporate credit rating at B/Negative/B-3.
At the same time, Moody's Investors Service affirmed GM's B3
Corporate Family Rating and B3 Probability of Default Rating, and
maintained its SGL-3 Speculative Grade Liquidity Rating. S&P said the
rating outlook remains negative.
=======
P E R U
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BBVA BANCO: Moody's Withdraws B1 Foreign Currency Deposit Rating
----------------------------------------------------------------
Moody's Investors Service has withdrawn all of its ratings for BBVA Banco
Continental for business reasons.
The bank has no rated foreign currency debt outstanding.
The ratings were withdrawn:
-- Long Term Foreign Currency Deposit Rating: B1, on review
for upgrade
-- Short Term Foreign Currency Deposit Rating: Not Prime
-- Bank Financial Strength Rating: D+, with stable outlook
HERTZ CORP: Moody's Withdraws Ba1 Rating on US$1.6 Billion Debt
---------------------------------------------------------------
Moody's Investors Service withdrew the Ba1 (LGD2, 17) rating of The Hertz
Corporation's $1.6 billion senior secured credit facility due 2010, which
has been replaced by an amended credit
facility which Moody's does not rate. This rating action does not effect
any of Hertz's other ratings which include the Ba3 corporate family rating
and SGL-2 speculative grade liquidity rating.
Headquartered in Park Ridge, New Jersey, Hertz Corp. --
http://www.hertz.com/-- is a car rental company that operates
from approximately 7,600 locations in 145 countries worldwide.
Hertz also operates an equipment rental business, Hertz
Equipment Rental Corporation, offering a diverse line of
equipment, including tools and supplies, as well as new and used
equipment for sale, to customers ranging from major industrial
companies to local contractors and consumers through more than
360 branches in the United States, Canada, France, and Spain.
Hertz has operations in the Philippines, Hungary, and Peru,
among others.
* PERU: Financial Regulator Grants Banking License to Santander
---------------------------------------------------------------
Peruvian regulator Superintendencia de Bancos y Seguros said in a
statement that it has granted Spain's Santander a banking license.
Business News Americas relates that Santander filed for a bank license in
Peru in February 2007. It will launch operations in the country in the
fourth quarter 2007 after receiving final authorization from SBS.
Santander will name its new unit Banco Santander Peru, according to SBS'
statement.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Standard & Poor's Ratings Services assigned its
'BB+' foreign currency credit rating to the Republic of Peru's
(BB+/Stable/B foreign, BBB-/Stable/A-3 local currency sovereign
credit ratings) US$1.24 billion global bond due in 2037 issued
as part of a new liability management operation.
=====================
P U E R T O R I C O
=====================
DORAL FINANCIAL: FBOP Corp Presents US$610-Million Bid for Firm
---------------------------------------------------------------
Doral Financial said in a press release that it has received a
US$610-million unsolicited takeover bid by privately held banking firm
FBOP Corp.
Business News Americas relates that FBOP wants an 80% stake in Doral's
common stock for US$1.41 per share. Shareholders would keep the 20%
stake.
According to BNamericas, Doral Financial entered in May 17 into a merger
agreement with a pool of private equity investors led by Bear Stearns
Merchant Banking for US$610 million, or US$0.63 per share. Under the
accord, shareholders would own 10% of the new firm. The transaction was
aimed at helping Doral Financial repay a US$625-million debt that matures
on July 20 and a US$129-million settlement of shareholder lawsuits filed
two years ago.
Fitch Ratings analyst Peter Shimkus commented to BNamericas, "The big
difference between the two deals is the bridge financing. FBOP's offer
contains a US$150-million line of credit and the prior offer does not."
FBOP pledged “bridge financing” once it fails to get regulatory
authorization by the time the US$625-million notes mature, BNamericas
says, citing Mr. Shimkus. The Bear Stearns offer it would be up to Doral
Financial to get funds in the meantime.
Doral Financial told BNamericas that it would review FBOP's proposal.
Based in New York City, Doral Financial Corp. (NYSE: DRL) --
http://www.doralfinancial.com/-- is a diversified financial
services company engaged in mortgage banking, banking,
investment banking activities, institutional securities and
insurance agency operations. Its activities are principally
conducted in Puerto Rico and in the New York City metropolitan
area. Doral is the parent company of Doral Bank, a Puerto Rico
based commercial bank, Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm, Doral
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank
based in New York City.
* * *
As reported in the Troubled Company Reporter on May 21, 2007,
Fitch Ratings has lowered Doral Financial Corporation's ratings
as:
Doral Financial Corporation
-- Long-term Issuer Default Rating to 'B' from 'B+';
-- Senior debt to 'B-' from 'B';
-- Preferred stock to 'CCC' from 'CCC+';
-- Individual to 'E' from 'D/E'.
Doral Bank
-- Long-term Issuer Default Rating to 'B+' from 'BB-';
-- Long-term deposits to 'BB- from 'BB';
-- Individual to 'D' from 'C/D'.
Fitch said the ratings remain on Rating Watch Negative.
Moody's Investors Service is continuing its review of Doral
Financial Corporation for possible downgrade. The ratings have
been on review for possible downgrade since Jan. 5, 2007, when
Doral was downgraded to B2 from B1 for senior debt. The review
has centered on Doral's prospects for refinancing US$625 million
of debt maturing in July.
=================================
T R I N I D A D & T O B A G O
=================================
BRISTOW GROUP: Moody's Rates Proposed US$250-Mil. Notes at Ba2
--------------------------------------------------------------
Moody's Investors Service assigned a Ba2 (LGD 4, 55%) rating to Bristow
Group Inc.'s proposed US$250 million senior unsecured notes offering.
Simultaneously, Moody's affirmed the Ba2 corporate family rating Ba2
probability of default rating (PDR), and the Ba2 rating (but changed the
LGD point estimate from LGD4, 59% to LGD4, 55%) on the existing US$230
million senior unsecured notes. The outlook remains negative.
Proceeds from the note offering are being used to fund the options on new
aircraft as part of the company's ongoing aircraft fleet expansion
program. BRS has US739.7 million worth of options for 52 large and medium
aircraft over fiscal years 2008-2013 in addition to $331.6 million worth
of orders for 31 aircraft for 2008 and 2009. Until it exercises the
options on the new aircrafts and pays the purchase price, proceeds from
the note issue will be invested in highly liquid, investment grade
securities.
Moody's originally placed the negative outlook on the company in 2006 to
reflect the uncertainty surrounding the SEC investigation, a separate
Dept. of Justice investigation, and the previously reported material
weaknesses. However, Moody's believes the outcomes of these two events
has become less of an issue for the ratings and the company has remedied
the material weaknesses. The negative outlook is now warranted due to the
company's significant increase in long-term debt that is increasing the
company's leverage (debt/EBITDA) to approximately 4.1x from about 2.7x,
and ranks among the highest for the peer group. This degree of leverage
is beyond the expectations for the Ba2 rating as we stated in our press
release dated January 31, 2006 and ranks among the highest for the peer
group. While the underlying business fundamentals remains very
supportive, the company is utilizing a historically high amount of debt to
fund the exercising of additional options to build more aircraft currently
with no customer contracts.
The negative outlook also considers that company holds more options on new
aircraft beyond those that can be funded with this offering. The current
offering will pre-fund a portion (12 aircraft) of the options the company
has on new aircraft that can be exercised over the next 12 to 18 months.
If the incremental options beyond the initial 12 are exercised, it would
require approximately $475 million of additional funding and thus could
keep leverage elevated and possibly push it higher if there is a
significant debt component. Moody's notes that the company is not
currently obligated on those options but that if exercised, it will likely
contain a significant debt component and could result in leverage beyond
the levels of a Ba2 profile.
A stable outlook would require the company to meet its earnings and
cashflow projections, resulting in reduced leverage to within the 3.0x
over the next 12 months. It would also require the company to
significantly fund any additional newbuilds with equity, especially if
there is a significant number of newbuilds uncontracted at the time they
are ordered.
The affirmation of the Ba2 ratings reflects the still very supportive
outlook for Bristow's business given the continued strength in the global
offshore exploration and production sector, particularly the deepwater
market for which the majority of the new aircraft are suited; the
company's historically conservative financial policies; the geographic
diversification of its operations; its leading position in its primary
markets; and the company's solid liquidity position.
The Ba2 CFR remains restrained by the helicopter sector's contract
structure which has restrained upcycle earnings and cash flows relative to
the rest of the oilfield services sector which are at historically high
levels; the company's dependence on the volatile exploration and
production of oil and gas; the still mature and potentially cyclical
nature of the GOM and North Sea, which generate about half of the
company's earnings and cash flows; the lack of barriers to entry given the
major oil and gas companies ability to foster greater competition for
helicopter services; and the significant capital being spent on the
company's fleet renewal/expansion over the next couple of years.
Headquartered in Houston, Texas, Bristow Group Inc. (NYSE:BRS)
-- http://www.bristowgroup.com/-- provides helicopter
transportation services to the offshore oil and gas industry
worldwide. Its services include helicopter transportation,
maintenance, search, and rescue and aviation support, as well as
oil and gas production management services. The company
operates under the brand names of Air Logistics and Bristow
Helicopters for its helicopter services, and Grasso Production
Management for its production management services. As of
March 31, 2006, the company operated 331 aircrafts and its
unconsolidated affiliates operated an additional 146 aircrafts.
The company has offices in Australia, China, India, Mexico, the
Netherlands, Singapore, Trinidad and Tobago, United Kingdom, and
the United States, among others.
=================
V E N E Z U E L A
=================
DAIMLERCHRYSLER AG: Chrysler Group’s May 2007 U.S. Sales Rise 4%
----------------------------------------------------------------
Chrysler Group reported sales for May 2007 of 199,393 units; up 4%
compared to May 2006 with 191,261. All sales figures are reported
unadjusted.
"Chrysler Group increased overall sales in May based on a strong retail
performance and while fleet sales were down," Darryl Jackson, Vice
President – U.S. Sales, said. "Especially our new offerings in the car
segment continued to gain momentum, supported by the fuel economy message
of our ‘Maximize Your Miles’ program. Driven by models like the Chrysler
Sebring, Dodge Avenger and Dodge Caliber, the company’s car sales
increased 15 percent over the previous year."
Chrysler brand car sales in May were up 22% year-over-year, while Dodge
brand car sales increased 11%. Chrysler Group’s offerings in the car
segment include the Chrysler Sebring Sedan and Sebring Convertible,
Chrysler 300, Dodge Avenger, Dodge Caliber and Dodge Charger.
Jeep(R) brand sales continued to increase in May after an already strong
April and posted a gain of 20% over the previous year. This result was
driven by the continuously strong Jeep Wrangler and the Jeep Patriot.
Jeep Wrangler and Wrangler Unlimited posted sales of 12,332 units, an
all-time record for the month of May and up 114% compared to May 2006 with
5,754 units. The Jeep Patriot also continued its momentum and finished
May with sales of 4,504 units, up 55% from April 2007. The vehicle is one
of Chrysler Group’s recently introduced models that achieve 30 miles per
gallon or better in highway driving.
The Chrysler Sebring Convertible posted sales of 3,082 units in the second
month of availability of the 2008 model, an increase of 113% over April
2007. The redesigned model offers what no other convertible has offered
before -— three automatically latching convertible top options: vinyl,
cloth and a body-color painted steel retractable hard top, all of which
can be retracted with a push of a button on the key fob.
Sales of the Dodge brand increased in May by 3%, fueled by strong demand
for the Dodge Ram pick up truck. The model finished May with sales of
31,327 units, up 6% year-over-year in a highly competitive segment and on
the heels of four already very successful months in 2007.
"As our strong car sales in May demonstrate, the recently launched
‘Maximize Your Miles’ program resonates well with customers and will be
continued in June," Michael Keegan, Vice President – Volume Planning and
Sales Operations, said. "Facing continued pressure on gas prices, the
program communicates Chrysler Group’s fuel economy message across all
three of our brands and offers customers a great value package based on
low-rate financing plus additional bonus cash."
Chrysler Group finished the month with 479,501 units of inventory, or a
63-day supply. Inventory is down by 19% compared to May 2006 when it was
at 592,486 units.
Based in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- develops, manufactures, distributes,
and sells various automotive products, primarily passenger cars, light
trucks, and commercial vehicles worldwide. It primarily operates in four
segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and
Financial Services.
The company has locations in Europe including some in Germany, Belgium,
Spain and Switzerland. Its operations in the Asia-Pacific are in Thailand,
China, Japan, Vietnam, India, Australia and Indonesia. Its Latin American
facilities are in Argentina, Brazil, Mexico, and Venezuela.
DaimlerChrysler lowered its operating profit forecast for full-year 2006
to be in the magnitude of EUR5 billion (US$6.4 billion) based on an
expected full-year operating loss of approximately EUR1 billion (US$1.2
billion) for its Chrysler Group.
The Chrysler Group is facing a difficult market environment in the United
States with excess inventory, non-competitive legacy costs for employees
and retirees, continuing high fuel prices and a stronger shift in demand
toward smaller vehicles. At the same time, key competitors have further
increased margin and volume pressures - particularly on light trucks - by
making significant price concessions. In addition, increased interest
rates caused higher sales & marketing expenses. Chrysler Group will take
additional production cuts in the third and fourth quarters to reduce
dealer inventories and make way for its current product offensive.
PETROLEOS DE VENEZUELA: Investing VEB240B on Highway Project
------------------------------------------------------------
Venezuelan state-owned oil company Petrleos de Venezuela SA will invest
over VEB240 billion in highway paving works in 2007, the government said
in a release.
Business News Americas relates that Petroleos de Venezuela will supervise
the paving of a total 639 kilometers of highways in 22 of Venezuela's 24
states to improve highway and road networks.
According to BNamericas, the project is par of the national road plan that
Petroleos de Venezuela developed. It will benefit these states:
-- Amazonas,
-- Anzoategui,
-- Apure,
-- Aragua,
-- Barinas,
-- Carabobo,
-- Cojedes,
-- Delta Amacuro,
-- Falcon,
-- Guarico,
-- Lara,
-- Merida,
-- Miranda,
-- Monagas,
-- Nueva Esparta,
-- Portuguesa,
-- Sucre,
-- Tachira,
-- Trujillo,
-- Vargas,
-- Yaracuy, and
-- Zulia.
The reports says that the project will need over 838 tons of asphalt.
BNamericas notes that Petroleos de Venezuela's national road plan will
cover 82 road development projects, with 25 in the central region, 23 in
the western area, 19 in the east and 15 to in the metropolitan area.
Companies that will handle the construction works will invest VEB6.6
billion for road rehabilitation, as part of a corporate social
responsibility plan, BNamericas states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the absence
of timely financial and operating information.
PETROLEOS DE VENEZUELA: Unit Investing VEB46B on Pipelines
----------------------------------------------------------
PDVSA Gas, Venezuelan state-owned oil firm Petroleos de Venezuela SA's
natural gas unit, will invest VEB46 billion this year for the expansion
and construction of pipelines in Miranda, Business News Americas reports.
According to Petroleos de Venezuela's statement, the project is part of
the national gasification plan and will benefit some 178,000 families in
12 municipalities. Works include the installation of over 224 kilometers
of pipe.
The Plan de Gasificacion Nacional, or the gas plan, will invest VEB3.4
trillion through 2012 to provide direct connections to three million
homes, BNamericas states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the absence
of timely financial and operating information.
NORTHWEST AIRLINES: Announces Executive Appointments
----------------------------------------------------
Northwest Airlines disclosed several executive appointments resulting from
the resignation of a key officer who will depart the airline now that the
company’s restructuring process has been successfully completed.
Phil Haan, executive vice president -– international, alliances &
information technology and chairman –- NWA Cargo, has announced his
intention to leave Northwest effective July 31, 2007. Mr. Haan is
Northwest’s longest tenured officer, having joined the company as vice
president -– revenue management in April 1991. Prior to joining
Northwest, Mr. Haan spent nine years at American Airlines.
“Now that we have successfully guided Northwest through this restructuring
process, and with 25 years experience in the airline industry, I am ready
for new challenges,” Mr. Haan said. Commenting on Mr. Haan’s career, Doug
Steenland, Northwest president and chief executive officer said, “Phil has
been a critical member of the senior management team for the past 16
years. He led Northwest’s Asia/Pacific business during an exceptionally
tumultuous decade and transformed the business into a successful,
profitable enterprise. Phil played key roles in building our very
successful joint venture across the Atlantic with KLM. He has also left
an indelible mark on many other functions within the company through
innovation and application of technology. We will miss Phil’s global
strategic perspective; we wish him well and thank him for his numerous
contributions to Northwest Airlines.”
Neal Cohen, who currently serves as executive vice president and chief
financial officer, has been named executive vice president – strategy,
international and chief executive officer – regional airlines. In his new
role, Mr. Cohen will have lead responsibility for strategy development,
will manage NWA’s international passenger and cargo businesses as well as
oversee NWA’s wholly-owned regional carriers. Mr. Cohen will continue to
report to Steenland.
“Neal was very instrumental in the company’s successful restructuring
efforts and is extremely knowledgeable with all aspects of Northwest’s
business portfolio,” Mr. Steenland said. “His creativity and broad
strategic leadership skills make him ideally suited to take on this
challenging role as we strive to excel in the highly competitive
international sector.”
Dave Davis, senior vice president – finance and controller, has been
promoted to executive vice president and chief financial officer,
replacing Mr. Cohen. He will report to Steenland. Mr. Davis rejoined
Northwest in August 2005 after serving as chief financial officer at US
Airways.
“Dave Davis is a seasoned finance expert and was a key participant in the
successful restructuring of our business. We are fortunate to have a very
capable internal successor who will continue to lead all aspects of
financial management for the airline,” Mr. Steenland continued.
In addition to financial planning, accounting, tax, treasury, fuel and
fleet planning, Mr. Davis will also have responsibility for managing
facilities and airport affairs which had previously reported to Mr.
Steenland.
Theresa Wise, currently chief information officer, has been promoted to
senior vice president and chief information officer, reporting directly to
Mr. Steenland.
Mr. Cohen rejoined Northwest in May 2005 and was appointed Northwest's
executive vice president and chief financial officer. Previously, he was
executive vice president of finance and chief financial officer for US
Airways from April 2002 to April 2004. Prior to his position at US
Airways, Mr. Cohen served as chief financial officer for various service
and financial organizations.
From 1991 to 2000, Mr. Cohen held a number of senior marketing and finance
positions at Northwest Airlines, including senior vice president and
treasurer, and vice president, market planning. Prior to joining
Northwest, he spent seven years at General Motors’ New York City
treasurer’s office.
Mr. Cohen has master of business administration and bachelor degrees from
the University of Chicago.
Prior to rejoining Northwest as senior vice president -– finance and
controller, Mr. Davis served as the chief financial officer of
Houston-based KRATON Polymers, LLC. He has also been executive vice
president -– finance and chief financial officer of US Airways where he
led the company’s finance functions, fleet planning, purchasing,
information technology, corporate real estate, investor relations and
internal auditing.
In addition to his positions at KRATON and US Airways, Mr. Davis served as
vice president – financial planning and analysis for Budget Group, Inc. as
well as key finance positions at both Delta Air Lines and Northwest
Airlines.
Mr. Davis holds a master of business administration degree and a bachelor
of science degree in aerospace engineering from the University of
Minnesota.
Ms. Wise was appointed vice president – information services in October
2001. She joined Northwest in 1993 and prior to her appointment as vice
president – information services, was managing director – information
services.
Ms. Wise graduated from St. Olaf College with a bachelor of arts degree in
mathematics and chemistry. She holds a doctorate and a master of science
degree in operations research and applied math from Cornell University.
About Northwest Airlines
Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/-- is the
world's fourth largest airline with hubs at Detroit, Minneapolis/St.
Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily
departures. Northwest is a member of SkyTeam, an airline alliance that
offers customers one of the world's most extensive global networks.
Northwest and its ravel partners serve more than 900 cities in excess of
160 countries on six continents, including Italy, Spain, Japan, China,
Venezuela and Argentina.
The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R.
Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham &
Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader,
Wickersham & Taft LLP in Washington represent the Debtors in their
restructuring efforts. The Official Committee of Unsecured Creditors has
retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in
the Debtors' chapter 11 cases.
When the Debtors filed for bankruptcy, they listed US$14.4 billion in
total assets and US$17.9 billion in total debts. On Jan. 12, 2007 the
Debtors filed with the Court their Chapter 11 Plan.
On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure
Statement. The Court approved the adequacy of the Debtors' Disclosure
Statement on March 26, 2007. On May 21, 2007, the Court confirmed the
Debtors' Plan. The Plan will take effect May 31, 2007.
* * *
As reported in the Troubled Company Reporter on May 25, 2007, Standard &
Poor's Ratings Services expects to assign its 'B+' corporate credit rating
to Northwest Airlines Corp. and subsidiary Northwest Airlines Inc. (both
rated 'D') upon their emergence from bankruptcy, anticipated May 31, 2007.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA.
Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande de los Santos, and
Christian Toledo, Editors.
Copyright 2007. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or publication
in any form (including e-mail forwarding, electronic re-mailing and
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