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/raid1/www/Hosts/bankrupt/TCRLA_Public/070724.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, July 24, 2007, Vol. 8, Issue 145 Headlines A R G E N T I N A BANCO DE GALICIA: Prices Capital Increase Per Share at ARS4.991 CEREALES SAN JOSE: Claims Verification Deadline Is Aug. 7 COMPANIA GENERAL: Proofs of Claim Verification Is Until Sept. 21 CORAL SEA: Proofs of Claim Verification Is Until Sept. 10 D Y H: Proofs of Claim Verification Deadline Is Sept. 11 GANADERA DEL SALADO: Proofs of Claim Verification Ends on Oct. 1 GNC SA: Seeks for Reorganization Okay in Buenos Aires Court INDUSCUER SA: Proofs of Claim Verification Deadline Is Aug. 16 KALEI SA: Proofs of Claim Verification Ends on Sept. 21 OKS CONSTRUCCIONES: Claims Verification Deadline Is Sept. 28 YPF SA: China Nat'l Petroleum Withdraws Bid for Repsol's Unit * ARGENTINA: Energy Crisis Won't End Soon, Antonio Calo Says * ARGENTINA: State Energy Company To Purchase Seven Turbines * ARGENTINA: Will Launch San Cruz Hydroelectric Plant Tender B A R B A D O S DIGICEL GROUP: Cable & Wireless Says Firm's Claim Has No Basis INTERPOOL INC: Chariot Deal Prompts S&P to Withdraw Ratings B E R M U D A DRESDNER RCM: Proofs of Claim Filing Is Until July 27 JUPITER POWER: Sets Final General Meeting for July 30 B O L I V I A * BOLIVIA: Bags US$2.1-Billion Steel & Iron Deal with Jindal * BOLIVIA: Hydrocarbons Committee Approves 80% of New Framework * BOLIVIA: Launches Development Bank B R A Z I L BANCO NACIONAL: Gov't Seeks Bank's Help on Aviation Crisis BANCO NACIONAL: Okays BRL252-Mil. Loan to Zilor Group's Project BANCO SAFRA: Fitch Confirms Issuer Default Rating at BB+ BR MALLS: S&P Puts BB- Corp. Credit Rating with Stable Outlook COMPANIA FORCA: Good Fin. Performance Cues S&P to Revise Outlook COMPANHIA PARANAENSE: Power Sales Rise 5.7% in First Six Months EMBRATEL PARTICIPACOES: Earns BRL499 Mil. in Second Quarter 2007 EMI GROUP: S&P Says Ratings Remain on CreditWatch Negative ENERGISA SA: Good Fin'l Performance Cues S&P to Revise Outlook FERRO CORP: Inks Pact with Buyers in Antitrust Violation Suit FORD MOTOR: To Invest EUR675 Million in Romanian Plant NET SERVICOS: 2nd Qtr. Net Revenues Rose 27.9% to BRL698.3 Mil. SAELPA: Good Fin'l Performance Cues S&P to Revise Outlook SANITEC INDUSTRIES: Section 341(a) Meeting Scheduled on Aug. 14 TEKSID ALUMINUM: Gets Necessary Consents to Amend Indenture VARIG SA: Creditors Can Decide on Restated Plan Until Aug. 10 * BRAZIL: Gov't Seeks Banco Nacional's Help on Aviation Crisis C A Y M A N I S L A N D S ACORN ALTERNATIVE: Final Shareholders Meeting Is on Aug. 17 ADC INT'L: Will Hold Final Shareholders Meeting on Sept. 19 ADC INTERNATIONAL: Proofs of Claim Filing Is Until Sept. 19 AMMC CDO: Will Hold Final Shareholders Meeting on Aug. 23 ASAP FUNDING: Final Shareholders Meeting Is on Sept. 20 ASIAN FUNDING: Will Hold Final Shareholders Meeting on Sept. 10 ASPECT CURRENCY: Sets Final Shareholders Meeting for Sept. 20 ASPECT TRADING: Will Hold Final Shareholders Meeting on Sept. 20 BRITANNIC WORLD: Proofs of Claim Filing Is Until Aug. 20 BRITANNIC WORLD: Proofs of Claim Must be Filed by Aug. 20 CABLE & WIRELESS: Says Digicel's Complaint Has No Basis CHESHIRE FINANCE: Sets Final Shareholders Meeting for Sept. 20 CORSAIR II: Will Hold Final Shareholders Meeting on Aug. 15 DRAGON MBS: Sets Final Shareholders Meeting for Sept. 20 EUREKA INTERACTIVE: Proofs of Claim Filing Is Until Aug. 31 HFT REAL: Sets Final Shareholders Meeting for Sept. 20 MECKLENBERGH INVESTMENT: Proofs of Claim Filing Ends on Aug. 20 MORGAN STANLEY: Will Hold Final Shareholders Meeting on Sept. 20 C H I L E AES CORP: Reports US$119 Mil. Net Income in 2007 First Quarter ELECTROANDINA SA: Fitch Affirms Issuer Default Ratings at BB SHAW GROUP: Secures US$1.29 Bil. EPC Contract from Duke Energy C O L O M B I A CHIQUITA BRANDS: Closes Sale of 12 Cargo Ships for US$227 Mil. CHIQUITA BRANDS: Congressmen Want More Details on Firm's Case CHIQUITA BRANDS: Unveils Rule 10b5-1 Stock Trading Plan Adoption C O S T A R I C A NEW HORIZONS: March 31 Balance Sheet Upside-Down by US$3.4 Mil. D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: To Start Work on San Jose de las Matas E C U A D O R GENERAL MOTORS: Labor Talks to Aid Turnaround of U.S. Business G U A T E M A L A IMAX CORP: Completes 2002-2005 Financial Results Restatement J A M A I C A WEST CORP: June 30 Balance Sheet Upside-Down by US$2.1 Billion M E X I C O COLLINS & AIKMAN: C&A Automotive Canada Files for CCAA COOPER-STANDARD: Moody's Affirms B2 Corporate Family Rating FIRST DATA: Earns US$228.9 Million in Quarter Ended June 30 GRUPO IMSA: Reimbursing Shares Not Tendered To Ternium Offer GRUPO TMM: Securitizes Vessels' Future Revenues Under Trust Plan N I C A R A G U A * NICARAGUA: Venezuela Cancels Nation's US$33.2-Million Debt P A N A M A NCO GROUP: Launches Exchange Offers for US$365 Million Sr. Notes P E R U HANOVER COMPRESSOR: Begins Tender Offer for US$550-Mil. Notes P U E R T O R I C O DORAL FINANCIAL: Fitch Junks Long-Term Issuer Default Rating DORAL FINANCIAL: Pays US$625 Million Senior Notes in Full V E N E Z U E L A CMS ENERGY: Board Declares Dividends on Common & Preferred Stock DAIMLERCHRYSLER: Banks Seek Higher Interest for Chrysler Funding DAIMLERCHRYSLER: New Bill Forces Chrysler to Drop Imperial Plans PETROLEOS DE VENEZUELA: Investing US$3.5B To Buy Drilling Rigs * VENEZUELA: Cancels Nicaragua's US$33.2-Million Debt * BOND PRICING: For the Week July 16 to July 20, 2007 - - - - - ================= A R G E N T I N A ================= BANCO DE GALICIA: Prices Capital Increase Per Share at ARS4.991 --------------------------------------------------------------- Banco de Galicia said in a filing with the local stock exchange Bolsa de Comercio that it has set a ARS4.991 per share price for its upcoming capital increase. As reported in the Troubled Company Reporter-Latin America on July 10, 2007, Banco de Galicia said that it asked the central bank for a 30-day extension to complete its planned capital increase. A Buenos Aires judge dismissed in June 2007 a previous court ruling that had blocked the transaction due to two lawsuits filed by investment vehicles Lagarcue and Theseus, which have shares in Galicia. Banco de Galicia said it sought for a postponement as the appeals were still being analyzed. The preferential subscription period was initially set to run from May 31 through June 11. It had been postponed by Banco de Galicia as it was appealing the court's decision. Banco Galicia will issue up to 100 million B class shares at a nominal value of 1 peso each through cash or bonds maturing 2010, 2014 and 2019. Parent firm Grupo Financiero Galicia would subscribe bonds for about US$100 million. The preferential subscription period was set for July 23, 2007, Business News Americas relates. Headquartered in Buenos Aires, Argentina, Banco de Galicia y Buenos Aires SA -- http://www.e-galicia.com/-- is an Argentinean private bank that is engaged in commercial banking, providing general banking services to large corporations, small and medium-sized companies, agricultural and cattle farms and individuals. The company controls an extensive and diverse network of subsidiaries, which include Banco Galicia Uruguay SA, Galicia Capital Markets SA, Galicia Factoring y Leasing SA, Agro Galicia SA, Galicia Administradora de Fondos SA, Galicia Valores SA, Galicia Warrants SA, Net Investments SA, Sudamericana Holding SA and Tarjetas Regionales SA. Through its subsidiaries the company offers accounting, investment and insurance services, loans, checks and debit and credit cards. It also finances the development of real estate, acts as a fiduciary and leases properties to interested parties. It operates over 400 branches across the country and provides e-banking services to customers via its Internet site. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2007, Banco de Galicia y Buenos Aires' Obligaciones Negociables issued on Nov. 6, 2001, for the original amount of US$12 million was rated D by the Argentine arm of Standard & Poor's International Ratings. CEREALES SAN JOSE: Claims Verification Deadline Is Aug. 7 --------------------------------------------------------- Pedro Rodriguez Oller, the court-appointed trustee for Cereales San Jose S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Aug. 7, 2007. Mr. Oller will present the validated claims in court as individual reports on Sept. 19, 2007. The National Commercial Court of First Instance in Bahia Blanca, 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 Cereales San Jose 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 Cereales San Jose's accounting and banking records will be submitted in court on Nov. 1, 2007. Mr. Oller is also in charge of administering Cereales San Jose's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Cereales San Jose S.A. Caronti 15, Bahia Blanca Buenos Aires, Argentina The trustee can be reached at: Pedro Rodriguez Oller D Orbigny 325, Bahia Blanca Buenos Aires, Argentina COMPANIA GENERAL: Proofs of Claim Verification Is Until Sept. 21 ------------------------------------------------------------------- Juan J. Romanelli, the court-appointed trustee for Compania General de Limpieza SA's bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 21, 2007. Mr. Romanelli will present the validated claims in court as individual reports. The National Commercial Court of First Instance in 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 Compania General 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 Compania General's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission dates. Mr. Romanelli is also in charge of administering Compania General's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Compania General de Limpieza SA Tacuari 119 Buenos Aires, Argentina The trustee can be reached at: Juan J. Romanelli Gandara 20.700 Buenos Aires, Argentina CORAL SEA: Proofs of Claim Verification Is Until Sept. 10 --------------------------------------------------------- Ricardo Adrogue, the court-appointed trustee for Coral Sea S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 10, 2007. Mr. Adrogue will present the validated claims in court as individual reports on Oct. 22, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Coral Sea 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 Coral Sea's accounting and banking records will be submitted in court on Dec. 3, 2007. Mr. Adrogue is also in charge of administering Coral Sea's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Ricardo Adrogue Bouchard 468 Buenos Aires, Argentina D Y H: Proofs of Claim Verification Deadline Is Sept. 11 -------------------------------------------------------- Felipe Florio, the court-appointed trustee for D y H Constructora S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 11, 2007. Mr. Florio will present the validated claims in court as individual reports on Nov. 9, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by D y H Constructora 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 D y H Constructora's accounting and banking records will be submitted in court on Dec. 21, 2007. Mr. Florio is also in charge of administering D y H Constructora's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: D y H Constructora S.R.L. Pje. Dr. Angel Roffo 7029 Buenos Aires, Argentina The trustee can be reached at: Felipe Florio Uruguay 618 Buenos Aires, Argentina GANADERA DEL SALADO: Proofs of Claim Verification Ends on Oct. 1 ---------------------------------------------------------------- Silvia B. Giambone, the court-appointed trustee for Ganadera del Salado SRL's bankruptcy proceeding, verifies creditors' proofs of claim until Oct. 1, 2007. Ms. Giambone will present the validated claims in court as individual reports. The National Commercial Court of First Instance in No. 7 in Buenos Aires, with the assistance of Clerk No. 13, 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 Ganadera del Salado 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 Ganadera del Salado's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission dates. Ms. Giambone is also in charge of administering Ganadera del Salado's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Ganadera del Salado SRL Uruguay 680 Buenos Aires, Argentina The trustee can be reached at: Silvia B. Giambone Avenida Pte. Roque Saenz Pena 651 Buenos Aires, Argentina GNC SA: Seeks for Reorganization Okay in Buenos Aires Court ----------------------------------------------------------- GNC SA has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow GNC to negotiate a settlement with its creditors in order to avoid liquidation. The case is pending in the National Commercial Court of First Instance No. 14 in Buenos Aires, with the assistance of Clerk No. 28. The debtor can be reached at: GNC SA Avenida Eva Peron 3953 Buenos Aires, Argentina INDUSCUER SA: Proofs of Claim Verification Deadline Is Aug. 16 -------------------------------------------------------------- Gustavo Ariel Fiszman, the court-appointed trustee for Induscuer S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Aug. 16, 2007. Mr. Fiszman will present the validated claims in court as individual reports on Oct. 1, 2007. The National Commercial Court of First Instance in Lomas de Zamora, 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 Induscuer 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 Induscuer's accounting and banking records will be submitted in court on Nov. 14, 2007. Mr. Fiszman is also in charge of administering Induscuer's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Gustavo Ariel Fiszman Tucuman 1295, Banfield Buenos Aires, Argentina KALEI SA: Proofs of Claim Verification Ends on Sept. 21 ------------------------------------------------------- Antonio Florencio Canada, the court-appointed trustee for Kalei S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 21, 2007. Mr. Canada will present the validated claims in court as individual reports on Nov. 2, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Kalei 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 Kalei's accounting and banking records will be submitted in court on Nov. 14, 2007. Mr. Canada is also in charge of administering Kalei's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Antonio Florencio Canada Dr. Luis Belaustegui 4531 Buenos Aires, Argentina OKS CONSTRUCCIONES: Claims Verification Deadline Is Sept. 28 ------------------------------------------------------------ Jorge Osvaldo Stanislavsky, the court-appointed trustee for O.K.S. Construcciones S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 28, 2007. Mr. Stanislavsky will present the validated claims in court as individual reports on Nov. 12, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by O.K.S. Construcciones 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 O.K.S. Construcciones' accounting and banking records will be submitted in court on Dec. 26, 2007. Mr. Stanislavsky is also in charge of administering O.K.S. Construcciones' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Jorge Osvaldo Stanislavsky Talcahuano 768 Buenos Aires, Argentina YPF SA: China Nat'l Petroleum Withdraws Bid for Repsol's Unit ------------------------------------------------------------- Oil and gas producer China National Petroleum Corp won't proceed with a deal to purchase the energy assets of YPF SA, the Argentine unit of Spanish oil firm Repsol, sources familiar with the matter told the Wall Street Journal. The Journal notes that China National decided to withdraw its offer due to concerns about nationalization risks in South America, particularly in Venezuela. Repsol spokesperson William Gartland confirmed to the Journal that China National had talked to the firm. Enrique Eskenazi, an Argentine banker with close ties to the government, is likely to acquire the Argentine assets, XFN-ASIA reports, citing Mr. Gartland. Headquartered in Buenos Aires, Argentina, YPF S.A. is an integrated oil and gas company engaged in the exploration, development and production of oil and gas, natural gas and electricity-generation activities (upstream), the refining, marketing, transportation and distribution of oil and a range of petroleum products, petroleum derivatives, petrochemicals and liquid petroleum gas (downstream). The company is a subsidiary of Repsol YPF, S.A., a Spanish company engaged in oil exploration and refining, which holds 99.04% of its shares. Its international operations are conducted through its subsidiaries, YPF International S.A. and YPF Holdings Inc. * * * Fitch Ratings assigned BB+ long-term issuer default rating on YPF SA. Fitch said the outlook is stable. Moody's Investors Service assigned these ratings on YPF SA: -- B2 long-term foreign currency corporate family rating; and -- Ba2 foreign currency senior unsecured rating; Moody's said the outlook was negative. * ARGENTINA: Energy Crisis Won't End Soon, Antonio Calo Says ------------------------------------------------------------ Antonio Calo, the general secretary of Argentina's national metalworkers union (Union Obrera Metalurgica), told reporters that the country's energy crisis won't be "overcome very soon." The Argentine government decided to cut the gas supply to local industry in May 2007. Residential demand at that time rose due to cold winter temperatures that have worsened, BNamericas states. No workers have been dismissed from firms in the sector so far, Business News Americas relates, citing Mr. Calo. "But there have been shift changes caused by these tough times we are experiencing due to the lack of power," Mr. Calo commented to BNamericas. Strat Consulting's energy department director Mario Guaragna told BNamericas that "the electric system lacks the capacity to meet demand during peak consumption hours." Argentina's hydro generation capacity has been weak throughout the year. The energy crisis will continue for a number of years. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 * ARGENTINA: State Energy Company To Purchase Seven Turbines ------------------------------------------------------------ The Argentine government said in a statement that through its state-run energy firm Enarsa, it will buy seven open-cycle turbines that can run on either natural gas or diesel. According to the government's statement, the turbines will be deployed in three provinces. They will be grouped into five different plants with combined capacity of 1.6 gigawatts. Business News Americas relates that four 270-megawatt turbines will be installed in two locations in Ensenada and Campana in Buenos Aires. The government said in a statement that a 170-megawatt turbine will be deployed in Necochea in Buenos Aires. Meanwhile, Santa Fe and Cordoba will each get one 125-megawatt turbine. BNamericas notes that the project will cost ARS3.25 billion. All equipment will be turned over once it is installed and operating. The government said in a statement that it will launch a tender for the project. BNamericas states that the government will sell bidding rules beginning Aug. 7. It will open offers on Sept. 11 for the tender. Tender winners will be disclosed on Oct. 8. Contracts will be signed on Nov. 20. The government wants to have all seven turbines running by the end of next year, BNamericas states. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 * ARGENTINA: Will Launch San Cruz Hydroelectric Plant Tender ------------------------------------------------------------ Argentine President Nestor Kirchner said in a statement posted on the presidential Web site that the government will launch a tender for two new hydroelectric plants. According to the statement, the plants will be situated on the San Cruz river in Patagonia. The plants will generate up to two gigawatts of power. The project will need an initial investment of ARS4.5 billion, President Kirchner said in a statement. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 =============== B A R B A D O S =============== DIGICEL GROUP: Cable & Wireless Says Firm's Claim Has No Basis -------------------------------------------------------------- Cable & Wireless said in a statement that it is positive that Digicel's claim against the firm is without foundation. As reported in the Troubled Company Reporter-Latin America on July 23, 2007, Digicel said it filed a lawsuit against rival Cable & Wireless for illegally delaying its entry into Caribbean markets. Digicel said it is seeking "multimillion pound" in damages. Digicel claims that former Cable & Wireless, a former monopoly in the Caribbean and Central American markets, tried to prevent the company from launching competing mobile phone networks in eight markets, which include St. Lucia, Grenada, Barbados, Cayman Islands, and Trinidad & Tobago. According to Digicel, the obstructions happened between 2002 and 2006, causing the company substantial losses. Cable & Wireless told Reuters that it would defend itself against a claim for damages from a rival in the Caribbean. About Cable & Wireless Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. About Digicel Group Digicel Group Limited -- http://www.digicelgroup.com/-- is a wireless services provider in the Caribbean region. The company is a newly created Bermuda incorporated company formed by Mr. Denis O'Brien, who previously owned 78% of the shares of Digicel Limited on a fully diluted basis. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in 22 markets primarily in the Caribbean including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and Haiti among others. 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. -- 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. INTERPOOL INC: Chariot Deal Prompts S&P to Withdraw Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services withdrew all ratings on Interpool Inc., including the 'BB' corporate credit rating. The rating action follows the company's July 19, 2007, acquisition by Chariot Acquisition Holding LLC, a company formed by certain private equity funds managed by affiliates of Fortress Investment Group LLC. "Ratings were withdrawn due to the successful completion of Interpool's tender offer for its outstanding rated debt in conjunction with its acquisition," said Standard & Poor's credit analyst Betsy Snyder. Interpool is the largest lessor of chassis in North America and one of the larger participants in the marine cargo container leasing market. Interpool, Inc. (NYSE: IPX) is a supplier of equipment and services to the transportation industry. It is a lessor of intermodal container chassis and a world-leading lessor of cargo containers used in international trade. The company has operations in Barbados, Singapore and Basel. ============= B E R M U D A ============= DRESDNER RCM: Proofs of Claim Filing Is Until July 27 ----------------------------------------------------- Dresdner RCM Oriental Income Fund Ltd.'s creditors are given until July 27, 2007, to prove their claims to Mark W.R. Smith, Derek Lai and Darach Haughey, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Dresdner RCM's shareholders agreed on July 2, 2006, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Mark W.R. Smith Derek Lai Darach Haughey Deloitte & Touche Corner House, Church & Parliament Streets P.O. Box 1556 Hamilton HM FX, Bermuda JUPITER POWER: Sets Final General Meeting for July 30 ----------------------------------------------------- Jupiter Power Holdings Ltd.'s final general meeting is scheduled on July 30, 2007, at 9:00 a.m., at: Canon's Court 22 Victoria Street Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. ============= B O L I V I A ============= * BOLIVIA: Bags US$2.1-Billion Steel & Iron Deal with Jindal ------------------------------------------------------------ Jindal Steel & Power Ltd. has agreed to put in US$2.1 billion in investments in Bolivia's steel and iron-ore sector. The investment is the biggest that ever came from an Indian company, Bloomberg News says. It included developing a 10 million-ton pellet plant, a 1.7 million-ton steel mill and a 450-megawatt power plant in the next eight years, Jindal Steel said in a statement to the Bombay Stock Exchange. The 40-year contract signing was originally slated for August 2006 but President Evo Morales has delayed it, asking for a bigger stake for the government, the same news report says. "In the prior contract, the state was only going to supply raw materials, but now it will take part in industrialization," Pres. Morales was quoted by Bloomberg as saying in a broadcast on La Paz-based Radio Panamericana. "With this contract, the state has sovereign control over its natural resources." The plant will be constructed at El Mutun, which has one of the world's largest iron-ore mines. According to Press Trust, Jindal has won a contract to exploit 50% of El Mutun's 40 billion reserves. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 * BOLIVIA: Hydrocarbons Committee Approves 80% of New Framework --------------------------------------------------------------- The Bolivian constituent assembly's hydrocarbons committee vice president Roberto Vaca said in a statement that the committee has agreed to 80% of the new hydrocarbons framework draft. Business News Americas relates that the draft says that ownership of Bolivian hydrocarbons resources, "whatever the state they are found in or the form in which they present themselves, are the absolute, direct inalienable dominion of Bolivians." According to Mr. Vaca's statement, the state would determine strategic hydrocarbons reserves for local consumption, "which in the case of natural gas should be projected for a period of 30 years." BNamericas notes that the committee also agreed on the creation of state-owned firm Empresa Boliviana de Industria de Hidrocarburos. Mr. Vaca told BNamericas that when fields containing hydrocarbons deposits span two or more departments, Empresa Boliviana will launch an international call for bids to draft the study to determine the proportion of reserves in each department. Other framework aspects include the increase of indigenous group and rural community participation during project development, BNamericas states. * * * 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 * BOLIVIA: Launches Development Bank ------------------------------------ The Productive Development Bank of Bolivia was launched early this month to provide funding to small producers in the country, according to a report from Prensa Latina. Planning Minister Gabriel Loza explained in the same report that the bank will allow consolidating integrationist projects such as the Trade Agreement with the Peoples, encouraged by President Evo Morales. Prensa Latina says food and cloth producers will get the first flexible credits. Mr. Loza added that the textile, manufacture, leather, timber, and tourism industries are among those with the highest support. The bank offers loan with six percent interest rate in a 12-year term, plus two periods of grace, Prensa Latina says, citing Mr. Loza. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 =========== B R A Z I L =========== BANCO NACIONAL: Gov't Seeks Bank's Help on Aviation Crisis ---------------------------------------------------------- Published reports in Brazil say that planning minister Paulo Bernardo has asked Banco Nacional de Desenvolvimento Economico e Social SA's assistance in alleviating the nation's air crisis. Banco Nacional head Luciano Coutinho told Business News Americas that Minister Berndardo spoke with him about ways in which the bank could help the government find a way out of the problems afflicting the air transport infrastructure network. According to BNamericas, Minister Bernardo talked with Mr. Coutinho on July 16, the day before the accident at Congonhas involving an Airbus 320 carrying 186 passengers on July 17. Mr. Coutinho told BNamericas that due to legal restrictions, Banco Nacional couldn't make loans to the government. Banco Nacional is mulling ways in which it could fund the construction of an airport in Sao Goncalo do Amarante in Rio Grande do Norte. "Options include financing the state government and loaning resources to the private sector," BNamericas states, citing Mr. Coutinho. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook to Positive from Stable on Banco Nacional de Desenvolvimento Economico e Social SA's BB Foreign currency counterparty credit rating and BB+ Local currency counterparty credit rating. BANCO NACIONAL: Okays BRL252-Mil. Loan to Zilor Group's Project --------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES' approved a financing of BRL252 million to Companhia Agricola Quata and Acucareira Quata S/A, located in the Municipality of Quata, in the State of Sao Paulo. The credit corresponds to 83% of total investment, equivalent to BRL301.4 million. The funds will be used to expand the sugar cane plantation, in an innovation and R,D&I project, for electric energy cogeneration and industrial expansion. The investments aim at expanding and renewing Cia. Agricola Quata's sugar cane planting, increasing A�ucareira Quata's processing capacities and cogeneration, expanding the productive capacity of the business unit Biorigin and duplicating this business unit's innovation and research structure. The project will: * allow energy generation using clean technology, from a renewable source; * meet the increasing demand for alcohol; * diversify the production line; * increase the revenues from diversification of products; and * generate 75 direct jobs during the operation. The companies are held by the Zilor Group, comprised of three sugar/alcohol plants and three agricultural enterprises, located at the center-west region in the State of Sao Paulo, producing and trading products based on own and third party sugar cane. The Zilor Group's plants rank among those presenting the higher productivity in the sector. The group's units produce jointly about 550 thousand tons of sugar and 400 million liters of alcohol per year. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * As reported on Nov. 27, 2006, Standard & Poor's Ratings Services changed the ratings outlook to Positive from Stable on Banco Nacional de Desenvolvimento Economico e Social SA's BB Foreign currency counterparty credit rating and BB+ Local currency counterparty credit rating. BANCO SAFRA: Fitch Confirms Issuer Default Rating at BB+ -------------------------------------------------------- Fitch Ratings affirmed the ratings of Banco Safra S.A. and Safra Leasing S.A. - Arrendamento Mercantil as: Banco Safra -- Foreign currency Issuer Default Rating at 'BB+', Stable Outlook; -- Local currency IDR at 'BB+', Stable Outlook; -- Short-term foreign currency IDR at 'B'; -- Short-term local currency rating at 'B'; -- BRL fixed notes local currency rating at 'BB+'; -- Individual rating 'C'; -- Support rating '4'; -- Support Rating Floor 'B'; -- National Long-term rating at 'AA(bra)', Stable Outlook; -- National Short-term rating at 'F1+(bra)'. Safra Leasing Arrendamento Mercantil -- Long-term rating at 'AA(bra)', Stable Outlook; -- National short-term rating at 'F1+(bra)'. Safra Leasing Arrendamento Mercantil- 12nd and 13rd issuances of debentures -- Long-term rating at 'AA(bra)'. Banco Safra S.A. (Safra) ratings reflect the agility of the bank's management in an often-volatile environment, its thorough knowledge of its borrowers and exceptional controls over its collateral stream. They consider Safra's consistent performance, balance sheet strength and managerial capacity, but also a significant and growing exposure to the sovereign. The foreign and local currency IDRs are equal to the sovereign rating. The Rating Outlook for the Safra ratings is Stable and would be affected by any potential deterioration in sovereign risk or the bank's loan portfolio or capitalization. The ratings could benefit from improvements in revenue diversification, more reliance on fees, and a lower concentration in its securities portfolio, which will be challenging given Safra's business model and a competitive environment. Safra is wholly controlled by Joseph Safra, following the agreement officially signed and approved by Central Bank in 2006 with his brother Moise Safra. The bank and its subsidiaries rank among the ten largest private banks in Brazil and are engaged in a broad range of commercial and corporate banking activities. Safra has expanded leveraging in higher-spread operations, intends to increase its retail presence and has been more active on treasury operations. As with its peers, the bank's strategy aims to compensate pressure on margins due to interest rates falling faster than funding costs, taking advantage also of the benign economic environment. Agility in adding market share will be fundamental for Safra's growth, given the increased competition from banks with a broad distribution capacity and stronger appetite for credit risk. The increase and lengthening of its funding profile, benefiting from greater liquidity in the international markets, are expected to contribute to reduce the bank's funding costs in the medium and long run. However, its smaller branch network results in higher funding costs but also lower operating expenses in comparison with its competitors. Safra's capitalization ratio continues to be pressured by business expansion; the recent capitalization of US$200 million in July 2007, increased the capital ratio slightly to around 13%; this remains below peer average, though it is worth noting that it is largely a Tier I capital base, and Safra carries far fewer intangible assets on its balance sheet than do its local peers. Fitch expects that the capital base will further increase over the medium-term, in order to support the bank's growth. Fitch's national ratings provide a relative measure of creditworthiness for rated entities in countries where the sovereign's foreign and local currency ratings are below 'AAA'. National ratings are not internationally comparable since the best relative risk within a country is rated 'AAA' and other credits are rated only relative to this risk. They are signified by the addition of an identifier, for the country concerned, such as 'AAA (bra)' for national ratings in Brazil. Banco Safra S.A. is a notable and respected player in the Brazilian and international banking sector, ranking among the country's ten largest private sector financial institutions in terms of total assets. A full-service commercial bank, Banco Safra S.A. operates in all areas of the financial sector, serving the needs of its clients nationwide. Outside Brazil, the bank offers its large customer base a broad selection of international services. BR MALLS: S&P Puts BB- Corp. Credit Rating with Stable Outlook -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to BR Malls Participacoes S.A. The outlook is stable. The company's total debt amounted to US$91 million in March 2007. "The ratings reflect the company's higher leverage after relevant debt-funded acquisitions, which are part of the company's ambitious growth plans and potentially pressure its financial profile; and the company's exposure to increasing competition from other players that are also well capitalized and seek to consolidate the still-fragmented shopping mall market in Brazil," said Standard & Poor's credit analyst Beatriz Degani. On the other hand, the rating mirrors BR Malls' distinguished position in the Brazilian shopping mall industry because it is the largest shopping mall company in the country, despite being recently created; asset diversification in different regions and income segments; and its expertise in managing shopping malls (BR Malls currently operates approximately 37 malls and four business centers). Moreover, the ratings incorporate S&P's expectations that the company's growth will be driven mainly by acquiring established shopping malls, rather than building new ones, and immediately benefiting from more stable cash flows. The stable outlook mirrors S&P's expectations that BR Malls will maintain its leading market position and will be successful in its ambitious expansion strategy, focusing on acquiring existing assets (at least in the next 2-3 years). S&P also expects the company to sustain its adequate liquidity position. The outlook could be revised to positive if the company consistently reduces its financial leverage, reporting a net debt-to-EBITDA ratio of about 1 times. On the other hand, the outlook could be revised to negative if the competitive landscape becomes so challenging that BR Malls' main assets would be affected significantly (with major cash flow effects on a consolidated basis) or if the company adopts a more aggressive growth strategy involving more exposure to new malls (not expected in the medium term) and more leverage than we incorporate in the current ratings. BR Malls Participacoes SA is an integrated Shopping Mall company in Brazil. The Company has stakes in 11 Shopping Centers, 10 of them in operation and one under construction, totalizing 505,000 square meters of Gross Commercial Area (GCA) and 396,900 square meters of Gross Leaseable Area (GLA) and approximate 2.2 thousand stores. The Company provides management, consulting and leasing services for 37 Shopping Centers, Commercial and Business Centers, totalizing 981,000 square meters of GCA, with approximate 4,100 stores. The Company's portfolio of shopping centers has been strategically diversified in its geographic positioning and in its penetration of income segments. The Company's principal subsidiaries consist of ECISA Engenharia and ECISA Participacoes, Egec, Dacom, Sisa, Egec Par and GS, Nattca, SPE Indianapolis, Deico and other companies. COMPANIA FORCA: Good Fin. Performance Cues S&P to Revise Outlook ---------------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on Brazil-based electric distribution utilities Empresa Energetica de Sergipe and Companhia Forca e Luz Cataguazes-Leopoldina to positive from stable. Standard & Poor's also affirmed the 'B+' rating on Energipe, Cataguazes, and Brazil-based electric distribution utility Sociedade Anonima de Eletrificacao da Paraiba, as well as the 'B+' rating on the unsecured US$250 million notes jointly issued by Energipe and Saelpa. The three companies are subsidiaries of Brazil-based holding company Energisa S.A. (Energisa; not rated), a nonoperating holding company with interests in five electric power distribution companies and an 87-megawatt gas-fired thermopower plant. The outlook revision reflects the positive effect on Energipe and Cataguazes resulting from Energisa's announcement that it has sold for BRL293 million its 11 small-scale hydropower plants totaling 45 megawatts of installed capacity, plus four projects being developed totaling 188 megawatts of installed capacity. The positive outlook on Saelpa reflects S&P's expectation that Saelpa will maintain an adequate financial performance, along with progress in its operating efficiencies. The positive outlook on Energipe and Cataguazes indicates their strengthened financials and improved capital structure, assuming proceeds from Energisa's asset sale are implemented according to management's strategy. "The 'B+' ratings on Energipe, Cataguazes, and Saelpa might be raised to 'BB-', assuming the companies yield improved company debt profiles regarding cost of debt, better amortization, and enhanced financial metrics," noted Standard & Poor's credit analyst Marcelo Costa. "On the other hand, the outlook could be revised to stable or negative if Saelpa's current financial performance deteriorates, or if Energipe and Cataguazes do not profit from Energisa's asset sale," he continued. Companhia Forca e Luz Cataguazes-Leopoldina is a Brazil-based company that is mainly engaged in the power generation and distribution business. The Company supplies energy for over 1,900,000 consumers in four Brazilian states: Minas Gerais, Rio de Janeiro, Sergipe and Paraiba, with a total area of 91,180 square kilometers. The Company, along with CENF-Companhia de Eletricidade de Nova Friburgo, Energipe-Empresa Energica de Sergipe S.A., CELB-Companhia Energica da Borborema and Saelpa- Sociedade de Eletrifica da Para, are all subsidiaries of the Sistema Cataguazes-Leopoldina Group, which is involved in the generation and distribution of electricity. The Group operates with five distributors, one thermoelectric power station and 14 small hydroelectric power plants, a total of 137,000 kilowatts of generating capacity. COMPANHIA PARANAENSE: Power Sales Rise 5.7% in First Six Months --------------------------------------------------------------- Companhia Paranaense de Energia SA said in a statement that its power sales increased 5.7% to 10.1 terawatt hour in the first half of 2007, from the same period last year. Business News Americas reports that Companhia Paranaense's power sales to industrial customers rose by 4.5% to 3.75 terawatt hour in the first six months of 2007, compared to the first six months of 2006. Companhia Paranaense told BNamericas that its power sales to commercial and residential clients increased 9.5% to 1.88 terawatt hour and 6.9% to 2.56 terawatt hour in the first six months of 2007, from the same period in 2006. Sales in rural areas grew 5.0% to 779 gigawatt hour. Sales to residential customers rose due in part due to warmer temperatures. Sales to residential, industrial, commercial and rural clients were 25.3%, 37.0%, 18.5% and 7.7% of total sales respectively, BNamericas notes, citing Companhia Paranaense. Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense de Energia SA -- http://www.copel.com/-- transmits and distributes electricity to more than 3 million customers in the state of Parana and has a generating capacity of nearly 4,600 MW, primarily from hydroelectric plants. COPEL also offers telecommunications, natural gas, engineering, and water and sanitation services. The company restructured its utility operations in 2001 into separate generation, transmission, and distribution subsidiaries to prepare for full privatization, which has been indefinitely postponed. In response, COPEL is re-evaluating its corporate structure. The government of Parana controls about 59% of COPEL. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2006, Moody's America Latina upgraded the corporate family rating of Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its Brazilian national scale. The rating outlook was stable. This rating action concludes the review process initiated on July 26, 2006. Moody's upgraded these ratings: -- Corporate Family Rating: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); -- BRL500 million Senior Unsecured Guaranteed Debentures due 2007: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); and -- BRL400 million Senior Secured Guaranteed Debentures due 2009: to Ba1 from Ba2 (Global Local Currency) and to Aa1.br from A1.br (Brazilian National Scale). EMBRATEL PARTICIPACOES: Earns BRL499 Mil. in Second Quarter 2007 ---------------------------------------------------------------- Embratel Participacoes said in its earnings statement that its net profits increased by 23% to BRL499 million in the second quarter 2007, compared to BRL131 million in the same quarter last year. Business News Americas relates that Embratel Participacoes' revenues rose to BRL2.10 billion in the second quarter 2007, from BRL2.04 billion in the second quarter 2006. According to BNamericas, Embratel Participacoes' net profits increased by 143% to BRL631 million in the first half of 2007, compared to BRL259 million in the same period in 2006. Embratel Participacoes' revenues grew 3.4% to BRL4.21 billion in the first half of 2007, from BRL4.08 billion in the first half of 2006, partly due to a 35% boost in local services, BNamericas notes. The report says that Embratel Participacoes' revenues from voice services decreased to BRL2.21 billion in the first half of 2007, from BRL2.37 billion in the first half of 2006. Its data communications revenues increased by 1.8% to BRL1.14 million year-over-year. BNamericas notes that Embratel Participacoes' revenues from long distance calls -- its traditional core business -- declined by 3.4% year-on-year to BRL2.03 million in sales in the first half of 2007. It represented 53% of revenues. Embratel Participacoes' Ebitda increased by 3.2% to BRL1.07 million in the first half of 2007, from BRL1.04 million in the same period last year. Its Ebit was BRL447 million in the first half of 2007, compared to BRL607 million in the first half of 2006, BNamericas states. Embratel Participacoes SA offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and Internet transmission, and is present all over the country with its satellite solutions. Embratel is the market leader in revenues with Long Distance, Domestic and International calls. Embratel Participacoes is rated by Moody's: * local currency issuer rating -- B1; and * senior unsecured debt -- B2. EMI GROUP: S&P Says Ratings Remain on CreditWatch Negative ---------------------------------------------------------- Standard & Poor's Ratings Services said that its 'B+/B' long- and short-term corporate credit ratings and 'B+' senior unsecured debt ratings on U.K.-based music major EMI Group PLC remain on CreditWatch with negative implications. The 'B+' senior unsecured debt ratings on related entities Capitol Records Inc. and EMI Group Finance (Jersey) Ltd. also remain on CreditWatch negative. "The maintenance of the ratings on CreditWatch reflects today's announcement that Maltby Ltd., a company formed at the direction of private equity house Terra Firma, further extended its offer for EMI shares to July 29, 2007," said Standard & Poor's credit analyst Patrice Cochelin. The transaction, if successful, will likely entail a substantial increase in leverage for EMI, as Maltby has secured GBP2.5 billion in term debt and a GBP350 million revolving credit facility. At March 31, 2007, EMI had GBP1.3 billion in gross unadjusted debt. Although the underlying value of EMI's music rights and the recorded business can be successfully realized and developed over time, in the near future the company faces a revenue shortfall, as growing digital music sales fail to bridge the gap created by a continuing decline in CD shipments. "We will review the ratings on EMI as more information on ownership and potential capital structures becomes available," said Mr. Cochelin. S&P will review separately the rating implications of a change- of-control event on the issue ratings. Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. ENERGISA SA: Good Fin'l Performance Cues S&P to Revise Outlook -------------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on Brazil-based electric distribution utilities Empresa Energetica de Sergipe (Energisa) and Companhia Forca e Luz Cataguazes- Leopoldina to positive from stable. Standard & Poor's also affirmed the 'B+' rating on Energipe, Cataguazes, and Brazil- based electric distribution utility Sociedade Anonima de Eletrificacao da Paraiba, as well as the 'B+' rating on the unsecured US$250 million notes jointly issued by Energipe and Saelpa. The three companies are subsidiaries of Brazil-based holding company Energisa S.A. (Energisa; not rated), a nonoperating holding company with interests in five electric power distribution companies and an 87 megawatt gas-fired thermopower plant. The outlook revision reflects the positive effect on Energipe and Cataguazes resulting from Energisa's announcement that it has sold for BRL293 million its 11 small-scale hydropower plants totaling 45 megawatts of installed capacity, plus four projects being developed totaling 188 megawatts of installed capacity. The positive outlook on Saelpa reflects S&P's expectation that Saelpa will maintain an adequate financial performance, along with progress in its operating efficiencies. The positive outlook on Energipe and Cataguazes indicates their strengthened financials and improved capital structure, assuming proceeds from Energisa's asset sale are implemented according to management's strategy. "The 'B+' ratings on Energipe, Cataguazes, and Saelpa might be raised to 'BB-,' assuming the companies yield improved company debt profiles regarding cost of debt, better amortization, and enhanced financial metrics," noted Standard & Poor's credit analyst Marcelo Costa. "On the other hand, the outlook could be revised to stable or negative if Saelpa's current financial performance deteriorates, or if Energipe and Cataguazes do not profit from Energisa's asset sale," he continued. ENERGISA is a holding company for the three electricity distribution companies issuing the notes units, ENERGIPE, SAELPA, and CELB. The distribution companies serve approximately 1.5 million customers distributing 4,351 GWh in 2005 in the Northeast Brazilian States of Sergipe and Paraiba. FERRO CORP: Inks Pact with Buyers in Antitrust Violation Suit ------------------------------------------------------------- Ferro Corporation has entered into an agreement with the direct purchasers in a class action civil lawsuit related to alleged antitrust violations in the heat stabilizer industry. Although Ferro has decided to bring this matter to a close through settlement, thecCompany does not admit any of the alleged violations and continues to deny its liability. The settlement agreement must be approved by the United States District Court for the Eastern District of Pennsylvania. The direct purchasers class action lawsuit was filed along with two other actions after the United States Department of Justice requested documents from the Company in 2003 in connection with its investigation into possible antitrust violations in the heat stabilizer industry. In April 2006, the Department of Justice notified Ferro that it had closed its investigation and that the company was relieved of any obligation to retain documents that were responsive to the Department of Justice's earlier document request. Before closing its investigation, the Department of Justice took no action against the company or any of its current or former employees. Ferro is vigorously defending the remaining two civil actions alleging antitrust violations in the heat stabilizer industry. In addition, Ferro believes that it has a claim for indemnification by the former owner of Ferro's heat stabilizer business for the defense of these lawsuits and any resulting payments by Ferro, including the US$6.25 million payments to the class of direct purchasers and PolyOne Corporation. As the remaining two actions currently are in their preliminary stages, Ferro cannot determine their outcomes at this time. As a result of the settlement agreement and as part of Ferro's second quarter financial results, Ferro will record a US$6.25 million reserve for a US$5.5 million settlement payment to the direct purchasers and a US$750,000 settlement payment to PolyOne Corporation, which opted out of the class of direct purchasers and entered into a separate settlement agreement with Ferro. The settlement agreement with PolyOne Corporation did not require payment until Ferro entered into a settlement agreement with the class of direct purchasers. The impact of the reserve settlement is expected to lower net income per share for the second quarter, ended June 30, 2007, by approximately 10 cents. Previously, Ferro had indicated that it expected to earn approximately 16 to 21 cents per share in the quarter, including 4 cents for charges related to its manufacturing rationalization programs. 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. FORD MOTOR: To Invest EUR675 Million in Romanian Plant ------------------------------------------------------ Ford Motor Company plans to develop the Craiova manufacturing plant in Romania into one of the major facilities supporting Ford of Europe's vehicle and engine production requirements, the company said in a statement. The TCR-Europe reported on July 12, 2007, that Ford had submitted a bid for the Automobile Craiova assembly plant in Romania and forwarded its proposal to he Romanian Authority for State Assets Recovery. If the company's bid is successful, the company would commit to investing EUR675 million in the site to upgrade and modernize the plant in line with global Ford Motor Company standards. Ford's plans also include increasing employment levels from 3,900 now to 7,000 -- and potentially up to 9,000. The existing and additional workforce would be producing 300,000 vehicles a year, together with a further 300,000 engines annually, according to Ford's plans. In 2006, the plant made 24,000 vehicles and 116,000 engines. Ford's strategy for the Craiova plant was discussed at meetings in Bucharest with Ford of Europe President and CEO John Fleming, Romania Prime Minister Calin Popescu-Tariceanu and members of the privatization committee for Automobile Craiova. "By 2012, we would expect to be spending around EUR1 billion a year in Romania to support the Craiova plant," said Mr. Fleming. "We are excited about the opportunity for Craiova. But there is still much hard work to be done before a final agreement is reached. During our negotiations with the privatization committee, we will be emphasizing how important the Craiova plant is to Ford's long-term strategic manufacturing plans," Mr. Fleming added. 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. * * * To date, Ford Motor Company still carries Standard & Poor's Ratings Services 'B' long-term foreign and local issuer credit ratings and negative ratings outlook. At the same time, the company carries Moody's Caa1 issuer and senior unsecured debt ratings and negative ratings outlook. NET SERVICOS: 2nd Qtr. Net Revenues Rose 27.9% to BRL698.3 Mil. --------------------------------------------------------------- Net Servicos de Comunicacao S.A. announced its 2007 second quarter results. Net revenue rose by 27.9%, from BRL545.8 million in the second quarter 2006 to BRL698.3 million in this quarter. Operating costs rose by 30.2%, from BRL254.8 million in the second quarter 2006 to BRL331.7 million, remaining virtually stable as a percentage of net revenue, at approximately 47%. Selling, General and Administrative expenses (SG&A) surged by 73.2%, from BRL125.7 million to BRL217.8 million. Consolidated EBITDA excluding the non-recurring equalization, rose by 24.3%, from BRL157.4 million to BRL195.8 million. On May 16, 2007, the National Telecommunications Agency approved the acquisition of Vivax's control by Net Servicos pursuant to the terms and conditions in the Share Acquisition and Other Arrangement Agreement of October 2006. Following ANATEL's approval, shareholders' meetings approved this acquisition on June 11, 2007. Since then, Net has thus become Vivax's controlling shareholder, detaining the totality of its shares. Vivax's acquisition was in line with the company's growth strategy as the companies have complementary infrastructures with almost no overlapping. This becomes clear with the continued strong growth of both pay TV and broadband services, up by 16.7% and 75.4%, respectively. Voice services, which were only available in some parts of Net's coverage area, reached 353,700 clients at end of the quarter. Vivax's consolidation required accounting equalizations in order to conform to the standards adopted by Net. Since, these adjustments are not recurring; the company does not anticipate this kind of adjustment in the coming quarters. The effect of these adjustments on EBITDA totaled BRL55.3 million. Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao -- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1-- is a subscriber TV multi-operator in Brazil, as it operates the NET brand in major cities, including operations in the 4 largest cities: Sao Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre. NET also offers Broadband Internet services through its NET VIRTUA brand name. * * * Moody's America Latina assigned on May 22, 2006, a Baa2.br Brazilian National Scale Rating and a B1 Global Local Currency Rating to Net Servicos de Comunicacao S.A.'s BRL650 million debentures due in 2011 issued in September 2005. Concurrently, Moody's Investors Service affirmed Net's B1 global local currency scale corporate family rating. Moody's said the ratings outlook was stable. SAELPA: Good Fin'l Performance Cues S&P to Revise Outlook --------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on Brazil-based electric distribution utilities Empresa Energetica de Sergipe and Companhia Forca e Luz Cataguazes-Leopoldina to positive from stable. Standard & Poor's also affirmed the 'B+' rating on Energipe, Cataguazes, and Brazil-based electric distribution utility Sociedade Anonima de Eletrificacao da Paraiba, as well as the 'B+' rating on the unsecured US$250 million notes jointly issued by Energipe and Saelpa. The three companies are subsidiaries of Brazil-based holding company Energisa S.A. (Energisa; not rated), a nonoperating holding company with interests in five electric power distribution companies and an 87-megawatt gas-fired thermopower plant. The outlook revision reflects the positive effect on Energipe and Cataguazes resulting from Energisa's announcement that it has sold for BRL293 million its 11 small-scale hydropower plants totaling 45 megawatts of installed capacity, plus four projects being developed totaling 188 megawatts of installed capacity. The positive outlook on Saelpa reflects S&P's expectation that Saelpa will maintain an adequate financial performance, along with progress in its operating efficiencies. The positive outlook on Energipe and Cataguazes indicates their strengthened financials and improved capital structure, assuming proceeds from Energisa's asset sale are implemented according to management's strategy. "The 'B+' ratings on Energipe, Cataguazes, and Saelpa might be raised to 'BB-,' assuming the companies yield improved company debt profiles regarding cost of debt, better amortization, and enhanced financial metrics," noted Standard & Poor's credit analyst Marcelo Costa. "On the other hand, the outlook could be revised to stable or negative if Saelpa's current financial performance deteriorates, or if Energipe and Cataguazes do not profit from Energisa's asset sale," he continued. Sociedade Anonima de Eletrificacao da Paraiba; privatization of electric distribution company serving approximately 715,000 customers in the State of Paraiba, Brazil. SANITEC INDUSTRIES: Section 341(a) Meeting Scheduled on Aug. 14 --------------------------------------------------------------- The U.S. Trustee for Region 16 will convene a hearing of creditors of Sanitec Industries Inc., on Aug. 14, 2007, at 9:00 a.m., at 21051 Warner Center Lane, Room 105 in Woodland, California. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible officer of the Debtors under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Sun Valley, California, Sanitec Industries Inc. -- http://www.sanitecindustries.com/-- is the global patent holder for the Sanitec(R) Microwave Healthcare Waste Disinfection System(TM). The company's facilities that are operating both at hospitals and at regional waste treatment centers in the United States and in six foreign countries (Brazil, England, Canada, Japan, Korea, and Saudi Arabia), process infectious medical waste. The company filed for Chapter 11 protection on July 5, 2007 (Bankr. C.D. Calif. Case No. 07-12307). Jeffry A. Davis, Esq., in San Diego, California, represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed to date in this case. When the Debtor filed for bankruptcy, its listed estimated assets and debts between US$1 million and US$100 million. TEKSID ALUMINUM: Gets Necessary Consents to Amend Indenture ----------------------------------------------------------- Teksid Aluminum Luxembourg S.a r.l., S.C.A disclosed that that, as of 12:00 p.m., New York City time (5:00 p.m., London time), on Wednesday, July 18, 2007, consents representing approximately 85% of the EUR205,598,000 aggregate principal amount of its outstanding 11-3/8% Senior Notes due 2011 have been validly delivered pursuant to its previously announced solicitation of consents to implement certain proposed amendments to the indenture governing the Senior Notes and to give effect to a waiver of any Default or Event of Default arising from and any claims relating to the Company's failure to comply with the sixth paragraph of Section 11.15(b)(i) of the Indenture. Consequently, the Company, the note guarantors and the trustee executed a supplemental indenture on Tuesday, July 17, 2007. Accordingly, the proposed amendments have become operative in accordance with their terms and the Waiver has become effective. The consent solicitation expired on Thursday, July 18, 2007 at 10:00 a.m., New York City time (3:00 p.m., London time). The indenture amendments: (a) extend the time by which offers to purchase Senior Notes after the sale of each of Teksid Aluminum Poland S.p. z.o.o., the Company's indirectly held minority equity interest in Nanjing Teksid Aluminum Foundry and the Company's equity interest in Cevher Dokum Sanayi A.S. are to be made to no later than Aug. 15, 2007, (b) extend the time by which offers to purchase Senior Notes with each of the Fiat Payment and the Escrow Amount are to be made to no later than ten (10) business days after receipt of each such payment, but in no event prior to Aug. 15, 2007, and (c) allow the payment of the interest due and unpaid on the Senior Notes on or about July 15, 2007, together with required interest on such unpaid interest to be deducted from the proceeds to be used to fund such tender offers. The Company expects to make an interest payment in the amount of EUR12,735,555.28 on July 19, 2007. About Teksid Aluminum Teksid Aluminum -- http://www.teksidaluminum.com/-- manufactures aluminum engine castings for the automotive industry. Principal products include cylinder heads, engine blocks, transmission housings, and suspension components. The company operates 15 manufacturing facilities in Europe, North America, South America, and Asia. The company maintains operations in Italy, Brazil, and China. Until Sept. 2002, Teksid Aluminum was a division of Teksid S.p.A., which was owned by Fiat. Through a series of transactions completed between Sept. 30, 2002, and Nov. 22, 2002, Teksid S.p.A. sold its aluminum foundry business to a consortium of investment funds led by equity investors that include affiliates of each of Questor Management Company, LLC, JPMorgan Partners, Private Equity Partners SGR SpA and AIG Global Investment Corp. As a result of the sale, Teksid Aluminum is now owned by its equity investors through TK Aluminum Ltd., a Bermuda holding company. * * * As reported in the Troubled Company Reporter-Latin America on May 10, 2007, Moody's Investors Service confirmed the Caa3 Corporate Family Rating of Teksid Aluminum Ltd as well as the Ca rating of the company's senior notes at Teksid Aluminum Luxembourg Sarl SCA with a stable outlook. VARIG SA: Creditors Can Decide on Restated Plan Until Aug. 10 ------------------------------------------------------------- VARIG S.A., Rio Sul Linhas Aereas S.A. and Nordeste Linhas Aereas S.A., and the Judicial Administrator in the Foreign Proceeding have determined that the 30-day period set forth in the Restated In- Court Reorganization of the Foreign Debtors for creditors to elect to adhere to the Restated Plan will end on Aug. 10, 2007. The debtors and the Judicial Administrator decided to let creditors vote on the Restated Plan starting July 11, 2007. On June 22, 2007, Varig S.A., Rio Sul Linhas Aereas S.A. and Nordeste Linhas Aereas S.A. published procedures for post-petition or "bankruptcy" creditors to elect to adhere to the Restated Plan that was approved by the general assembly of creditors in the proceedings pending in the Commercial Bankruptcy and Reorganization Court in Rio de Janeiro, Brazil on July 17, 2006. The foregoing procedures are posted, in Portuguese and in English, on the Foreign Debtors' Web site at: http://www.voenordeste.com.br/ Creditors may contact the counsel to the foreign representative of Varig, Rio Sul and Nordeste Linhas can be reached at: Rick B. Antonoff, Esq. Pillsbury Winthrop Shaw Pittman LLP 1540 Broadway, New York NY 10036, USA Phone: (212) 885-1000 E-mail: rick.antonoff@pillsburylaw.com Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's largest air carrier and the largest air carrier in Latin America. VARIG's principal business is the transportation of passengers and cargo by air on domestic routes within Brazil and on international routes between Brazil and North and South America, Europe and Asia. VARIG carries approximately 13 million passengers annually and employs approximately 11,456 full-time employees, of which approximately 133 are employed in the United States. The Company, along with two affiliates, filed for a judicial reorganization proceeding under the New Bankruptcy and Restructuring Law of Brazil on June 17, 2005, due to a competitive landscape, high fuel costs, cash flow deficit, and high operating leverage. The Debtors may be the first case under the new law, which took effect on June 9, 2005. Similar to a chapter 11 debtor-in- possession under the U.S. Bankruptcy Code, the Debtors remain in possession and control of their estate pending the Judicial Reorganization. Sergio Bermudes, Esq., at Escritorio de Advocacia Sergio Bermudes, represents the carrier in Brazil. Each of the Debtors' Boards of Directors authorized Vicente Cervo as foreign representative. In his capacity, Mr. Cervo filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the United States. As of March 31, 2005, the Debtors reported BRL2,979,309,000 in total assets and BRL9,474,930,000 in total debts. Volo do Brasil, which purchased VARIG's cargo unit, VARIG Logistica S.A., and partially controlled by U.S. investment fund MatlinPatterson Global Advisors, bought VARIG for US$600 million in July 2006. * BRAZIL: Gov't Seeks Banco Nacional's Help on Aviation Crisis -------------------------------------------------------------- Published reports in Brazil say that planning minister Paulo Bernardo has asked Banco Nacional de Desenvolvimento Economico e Social SA's assistance in alleviating the nation's air crisis. Banco Nacional head Luciano Coutinho told Business News Americas that Minister Berndardo spoke with him about ways in which the bank could help the government find a way out of the problems afflicting the air transport infrastructure network. According to BNamericas, Minister Bernardo talked with Mr. Coutinho on July 16, the day before the accident at Congonhas involving an Airbus 320 carrying 186 passengers on July 17. Mr. Coutinho told BNamericas that due to legal restrictions, Banco Nacional couldn't make loans to the government. Banco Nacional is mulling ways in which it could fund the construction of an airport in Sao Goncalo do Amarante in Rio Grande do Norte. "Options include financing the state government and loaning resources to the private sector," BNamericas states, citing Mr. Coutinho. About Banco Nacional 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. 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 was stable. =========================== C A Y M A N I S L A N D S =========================== ACORN ALTERNATIVE: Final Shareholders Meeting Is on Aug. 17 ----------------------------------------------------------- Acorn Alternative Strategies (Overseas) Ltd. will hold its final shareholders meeting on Aug. 17, 2007, at 9:00 a.m., at: 4th Floor Harbour Place George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Linburgh Martin Attention: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034 Grand Cayman, KYI-1102 Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 ADC INT'L: Will Hold Final Shareholders Meeting on Sept. 19 ----------------------------------------------------------- ADC International Corp. will hold its final shareholders meeting on Sept. 19, 2007, at 12:00 noon, at: 3rd Floor, Piccadilly Center Elgin Avenue, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: MBT Trustees Ltd. P.O. Box 30622SMB Grand Cayman Cayman Islands Tel: 945-8859 Fax: 949-9793/4 ADC INTERNATIONAL: Proofs of Claim Filing Is Until Sept. 19 ------------------------------------------------------------ ADC International Corp.'s creditors are given until Sept. 19, 2007, to prove their claims to MBT Trustees 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. ADC International's shareholders agreed on June 19, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: MBT Trustees Ltd. P.O. Box 30622SMB Grand Cayman Cayman Islands Tel: 945-8859 Fax: 949-9793/4 AMMC CDO: Will Hold Final Shareholders Meeting on Aug. 23 --------------------------------------------------------- AMMC CDO II Ltd. will hold its final shareholders meeting on Aug. 23, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Mora Goddard Joshua Grant Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands ASAP FUNDING: Final Shareholders Meeting Is on Sept. 20 ------------------------------------------------------- Asap Funding Ltd. will hold its final shareholders meeting on Sept. 20, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands ASIAN FUNDING: Will Hold Final Shareholders Meeting on Sept. 10 --------------------------------------------------------------- Asian Funding For Tags will hold its final shareholders meeting on Sept. 10, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands ASPECT CURRENCY: Sets Final Shareholders Meeting for Sept. 20 ------------------------------------------------------------- Aspect Currency Fund will hold its final shareholders meeting on Sept. 20, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Joshua Grant Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands ASPECT TRADING: Will Hold Final Shareholders Meeting on Sept. 20 ---------------------------------------------------------------- Aspect Trading Fund will hold its final shareholders meeting on Sept. 20, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidators can be reached at: Joshua Grant Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands BRITANNIC WORLD: Proofs of Claim Filing Is Until Aug. 20 -------------------------------------------------------- Britannic World Markets Master Fund Ltd.'s creditors are given until Aug. 20, 2007, to prove their claims to S.L.C. Whicker and K.D. Blake, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Britannic World's shareholders agreed on June 25, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: S.L.C. Whicker P.O. Box 493 Attention: Blair Houston Grand Cayman KY1-1106 Cayman Islands Tel: 345-914-4334 Fax: 345-949-7164 BRITANNIC WORLD: Proofs of Claim Must be Filed by Aug. 20 --------------------------------------------------------- Britannic World Markets Fund Ltd.'s creditors are given until Aug. 20, 2007, to prove their claims to S.L.C. Whicker and K.D. Blake, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Britannic World's shareholders agreed on June 25, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: S.L.C. Whicker P.O. Box 493 Attention: Blair Houston Grand Cayman KY1-1106 Cayman Islands Tel: 345-914-4334 Fax: 345-949-7164 CABLE & WIRELESS: Says Digicel's Complaint Has No Basis ------------------------------------------------------- Cable & Wireless said in a statement that it is positive that Digicel's claim against the firm is without foundation. As reported in the Troubled Company Reporter-Latin America on July 23, 2007, Digicel said it filed a lawsuit against rival Cable & Wireless for illegally delaying its entry into Caribbean markets. Digicel said it is seeking "multimillion pound" in damages. Digicel claims that former Cable & Wireless, a former monopoly in the Caribbean and Central American markets, tried to prevent the company from launching competing mobile phone networks in eight markets, which include St. Lucia, Grenada, Barbados, Cayman Islands, and Trinidad & Tobago. According to Digicel, the obstructions happened between 2002 and 2006, causing the company substantial losses. Cable & Wireless told Reuters that it would defend itself against a claim for damages from a rival in the Caribbean. About Digicel Group Digicel Group Limited -- http://www.digicelgroup.com/-- is a wireless services provider in the Caribbean region. The company is a newly created Bermuda incorporated company formed by Mr. Denis O'Brien, who previously owned 78% of the shares of Digicel Limited on a fully diluted basis. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in 22 markets primarily in the Caribbean including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and Haiti among others. About Cable & Wireless Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% CHESHIRE FINANCE: Sets Final Shareholders Meeting for Sept. 20 -------------------------------------------------------------- Cheshire Finance Ltd. will hold its final shareholders meeting on Sept. 20, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Hugh Thompson Joshua Grant Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands CORSAIR II: Will Hold Final Shareholders Meeting on Aug. 15 ----------------------------------------------------------- Corsair II Offshore Cayman Ltd. will hold its final shareholders meeting on Aug. 15, 2007, at: 717 Fifth Avenue 24th Floor New York, NY 10022 USA These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Amy Soeda c/o Maples and Calder P.O. Box 309 Ugland House South Church Street, George Town Grand Cayman Cayman Islands DRAGON MBS: Sets Final Shareholders Meeting for Sept. 20 -------------------------------------------------------- Dragon MBS Ltd. will hold its final shareholders meeting on Sept. 20, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands EUREKA INTERACTIVE: Proofs of Claim Filing Is Until Aug. 31 ----------------------------------------------------------- The Eureka Interactive Fund Ltd.'s creditors are given until Aug. 31, 2007, to prove their claims to John Sutlic and Jeffrey Arkley, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Eureka Interactive's shareholders agreed on March 30, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: John Sutlic Attention: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034 Grand Cayman KY1-1102 Tel: (345) 949 8455 Fax: (345) 949 8499 HFT REAL: Sets Final Shareholders Meeting for Sept. 20 ------------------------------------------------------ HFT Real Estate CDO 2006-III Ltd. will hold its final shareholders meeting on Sept. 20, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands MECKLENBERGH INVESTMENT: Proofs of Claim Filing Ends on Aug. 20 --------------------------------------------------------------- Mecklenbergh Investment & Finance Company Ltd.'s creditors are given until Aug. 20, 2007, to prove their claims to Cereita Lawrence and Scott Aitken, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Mecklenbergh Investment's shareholders agreed on June 25, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Cereita Lawrence Scott Aitken Attention: Isabel Mason P.O. Box 1109 Grand Cayman KY-1102 Cayman Islands Tel: 345 949-7755 Fax: 345 949-7634 MORGAN STANLEY: Will Hold Final Shareholders Meeting on Sept. 20 ---------------------------------------------------------------- Morgan Stanley Alternatives Managed Futures Ltd. will hold its final shareholders meeting on Sept. 20, 2007, at: 3rd Floor, Piccadilly Center Elgin Avenue, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093 George Town, Grand Cayman Cayman Islands ========= C H I L E ========= AES CORP: Reports US$119 Mil. Net Income in 2007 First Quarter -------------------------------------------------------------- The AES Corporation reported strong first quarter 2007 results. Revenues increased 11% to US$3.1 billion compared to US$2.8 billion for the first quarter of 2006, while net cash from operating activities increased 14% to US$581 million compared to US$509 million last year. First quarter income from continuing operations was US$119 million, or US$0.18 earnings per diluted share. The quarterly results were in line with the company's expectations excluding a non-cash charge of US$35 million, or US$0.05 impact on diluted earnings per share, due to an impairment of a minority investment, and a charge of US$22 million, or US$0.03 impact on diluted earnings per share, relating to a litigation reserve as a result of a court ruling at its subsidiary in Kazakhstan. Adjusted earnings per share (a non-GAAP financial measure) were US$0.24 for the quarter and include the US$0.03 charge at its subsidiary in Kazakhstan. These results compare to 2006 first quarter income from continuing operations of US$330 million, or US$0.49 earnings per diluted share, and adjusted earnings per share of US$0.39. First quarter 2006 results included a one- time US$87 million gain or US$0.13 positive impact on diluted earnings per share associated with the sale of Kingston in Ontario and the sale of an additional US$39 million or US$0.05 positive impact on diluted earnings per share in excess emission sales. As anticipated and previously disclosed, the company recognized an impairment charge of approximately US$638 million, or US$0.94 impact on diluted earnings per share, in connection with the sale of its equity stake in its Venezuelan subsidiary C.A. La Electricidad de Caracas, now included in discontinued operations. Including these charges, the company incurred a net loss of US$455 million, or US$0.67 diluted loss per share. This compares to net income of US$348 million, or US$0.52 earnings per diluted share in first quarter 2006. During the quarter, AES continued to execute its growth plans. The Company signed a Memorandum of Understanding and subsequently entered into a partnership with GE Energy Financial Services to develop greenhouse gas emission reduction projects in the United States. The Company also acquired two new power plants with long-term power agreements in Tamuin, Mexico totaling 460 MW of capacity. "The quarter reflected strong revenues, cash flow and underlying operating performance," said Paul Hanrahan, AES President and CEO. "We continued to implement its growth strategy focusing on meeting increasing demand for energy in fast-growing markets while expanding our presence in renewables and the growing market for emission offsets." First Quarter 2007 Consolidated Highlights: -- Revenues increased by US$304 million to US$3.1 billion, reflecting higher prices and increased demand primarily in Latin America, the acquisition of two new facilities in Mexico and the consolidation of Itabo, one of the company's businesses in the Dominican Republic, and favorable foreign currency translation. -- Gross margin decreased by US$49 million to US$868 million, primarily due to the benefit of higher emission sales of US$39 million recorded in first quarter 2006 and US$32 million cost recoveries related to prior periods in the first quarter of 2006 at Eletropaulo in Brazil. This was partially off-set by favorable foreign currency translation, contributions from the two new facilities in Mexico and the consolidation of Itabo, and improved operating performance at various subsidiaries. -- General and administrative expense increased US$28 million to US$85 million, largely from higher spending related to the strengthening of the company's financial organization, completion of its recent restatement and increased business development activities to support its growth initiatives. -- Interest expense increased by US$4 million to US$422 million, reflecting debt at recently acquired businesses, including the two new facilities in Mexico, interest on regulatory liabilities in Brazil and losses on interest rate derivatives. These increases were partially offset by debt retirements and lower interest rates at its Brazil subsidiaries. -- Other expense decreased US$37 million to US$41 million, largely due to costs associated with debt retirements at the parent company and at its businesses in El Salvador during the first quarter of 2006, partially offset by a US$22 million charge in first quarter of 2007 related to a court ruling at its subsidiary in Kazakhstan. -- Gain on sale of investment decreased by US$86 million due to the sale of AES Kingston, a 110 MW power plant in Ontario, Canada that resulted in a gain of US$87 million in the first quarter of 2006. -- Other non-operating expense increased by US$39 million to US$39 million, largely due to a US$35 million impairment in the company's minority investment in AgCert International. An impairment was determined to exist due to the application of accounting rules relating to an "other than temporary" decline in AgCert's stock price performance during the first quarter of 2007. -- The effective tax rate during the quarter was 41% as compared to 31% in 2006. This increase was primarily due to a change in tax law in China, unfavorable tax impacts of the charges associated with the impairment of its investment in AgCert and with the court ruling in Kazakhstan, and a favorable impact in the first quarter of 2006 associated with the non-taxable sale of Kingston, offset by a tax benefit recorded upon the release of a valuation allowance at one of its subsidiaries in Argentina. -- Income from continuing operations for the first quarter of 2007 was US$119 million, or US$0.18 diluted earnings per share, versus US$330 million, or US$0.49 diluted earnings per share for the first quarter of 2006. Adjusted earnings per share for the first quarter of 2007 were US$0.24 compared to US$0.39 in first quarter 2006. -- During the quarter, free cash flow (a non-GAAP financial measure) increased by US$68 million to US$377 million, primarily due to decreases in net working capital, lower cash tax payments and contributions from the two new facilities in Mexico and the consolidation of Itabo. First Quarter 2007 Segment Highlights: -- Latin America Generation revenue increased by US$139 million to US$738 million, primarily due to higher contract and spot prices at Gener in Chile, the consolidation of Itabo in the Dominican Republic, and increased energy prices in Argentina. Gross margin decreased by US$9 million to US$250 million, primarily due to increased purchased electricity and fuel costs at Uruguaiana in Brazil and Gener in Chile and higher fixed costs at Gener, partially offset by the consolidation of Itabo and variable margin on the increased revenues in Argentina. -- Latin America Utility revenue increased by US$73 million to US$1.2 billion, primarily due to the positive impact of foreign currency translation in Brazil and higher tariff rates at Eletropaulo and Sul in Brazil and CAESS-EEO in El Salvador. Gross margin decreased by US$19 million to US$210 million, primarily due to prior period costs recovered through the tariff in first quarter 2006 at Eletropaulo in Brazil, partially offset by favorable foreign currency translation and the favorable tariff rates at Sul and CAESS-EEO. -- North America Generation revenue increased by US$17 million to US$510 million, primarily due to the acquisition of the two new facilities in Mexico, higher spot prices at Eastern Energy in New York and planned outages at Warrior Run in Maryland and AES Hawaii in first quarter 2006. These gains were mostly offset by lower emission sales in New York and outages at Merida in Mexico and at Deepwater in Texas. Gross margin decreased by US$20 million to US$154 million, primarily due to lower emission sales at Eastern Energy in New York. -- North America Utility revenue increased by US$8 million to US$263 million, primarily due to higher volumes at IPL in Indiana. Gross margin increased by US$17 million to US$81 million primarily due to higher volume and lower maintenance costs associated with generation unit overhauls in first quarter of 2006 at IPL. -- Europe & Africa Generation revenue increased by US$44 million to US$252 million, primarily due to higher volume and prices in Kazakhstan, favorable foreign currency translation and higher volume and prices in Hungary. Gross margin increased by US$10 million to US$90 million, primarily due to higher revenues in Kazakhstan and favorable foreign currency translation, partially offset by lower emission sales at Bohemia in Czech Republic. -- Europe & Africa Utility revenue increased by US$14 million to US$166 million, primarily due to higher tariff rates in Ukraine and foreign currency translation gains. Gross margin decreased by US$19 million to US$17 million due to reduced rainfall in Cameroon which led to increased fuel costs and an unfavorable derivative mark-to-market variance at AES SONEL in Cameroon. Additionally, AES SONEL experienced higher fixed costs related to increased staffing and higher depreciation. -- Asia Generation revenue increased by US$18 million to US$212 million, primarily due to higher volume in Pakistan and an outage at Ras Laffan in Qatar in 2006, partially offset by lower volumes in Sri Lanka. Gross margin decreased by US$5 million to US$58 million, primarily due to lower volumes in Sri Lanka and higher planned maintenance costs at Barka in Oman. 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. ELECTROANDINA SA: Fitch Affirms Issuer Default Ratings at BB ------------------------------------------------------------ Fitch Ratings has affirmed the 'BB' foreign and local currency Issuer Default Ratings of ElectroAndina S.A. In addition, Fitch has revised Electroandina's Rating Outlook to Positive from Stable. The Positive Outlook incorporates the expectation of continued strengthening in credit fundamentals, as the company is expected to renegotiate existing long-term power purchase agreements, which should improve operating results; further deleverage of the company; and the reduction of fuel availability risk and higher fuel diversification due to the introduction of Liquified Natural Gas in the system. The ratings reflect ElectroAndina's business position, which benefits from its long-term PPAs with financially strong industrial and mining companies, well diversified fuel generation mix, and sound operating strategy. The company's credit profile is strengthened by the inherent support from its controlling shareholder, Suez Energy Andino S.A. and additional shareholder, Corporacion Nacional del Cobre de Chile. Both of the shareholders have actively participated in the capital structure of the company as guarantors and via direct loans. The assigned ratings continue to be constrained by exposure to the spot market to serve its contracted position during periods of high natural gas supply restrictions from Argentina, and the evolution of energy fuel prices, mainly coal and diesel. Liquidity remains tight, but manageable, as the company faces amortizations of US$23.7 million in 2007 and 2008 and capital expenditures of approximately US$20 million. As of March 2007, ElectroAndina's 27% increase in EBITDA, coupled with debt reduction of US$24 million, has strengthened ElectroAndina's financial profile in line with Fitch expectations. The consolidated leverage ratio as measured by debt-to-EBITDA decreased to 1.7 times as of March 2007 compared, with 2.8 times in the same period 2006. The EBITDA growth was mainly related to the tariff renegotiation on some of the existing PPAs, the latter was partially offset by higher generation fuel cost. Headquartered in Santiago, Chile, Electroandina -- http://www.electroandina.cl-- produces electricity for the Interconnected System of Northern Chile. The company has an installed capacity of 1029 MW. Its plants are located in Tocopilla, where Electroandina supplies electric energy to copper mines, its principal customers. Mining clients include Codelco Chile -- Chuquicamata Division, Codelco -- Radomiro Tomic Division, and SCM El Abra. Another key client, SOQUIMICH, is a maker of specialty fertilizers, iodine, and lithium. The company also offers services in the maintenance of transmission lines and substations. In addition to its energy business, Electroandina offers port services in Tocopilla, for loading and unloading bulk goods, liquids, and general cargo. SHAW GROUP: Secures US$1.29 Bil. EPC Contract from Duke Energy -------------------------------------------------------------- The Shaw Group Inc. has been awarded an engineering, procurement and construction contract by Duke Energy Carolinas, LLC, a unit of Duke Energy, as part of the Cliffside modernization project, to build a new 800-megawatt supercritical coal-fired electric generating plant and a flue gas desulfurization system at Duke's existing Cliffside Steam Station in Rutherford and Cleveland counties, North Carolina. Supercritical clean coal technology allows for exceptional operational reliability, efficiency and fuel flexibility, thereby providing an economic and environmental benefit. The state-of-the-art FGD system, to be built at Unit 5 of the existing Cliffside Steam Station, will be shared with the new 800-megawatt supercritical unit. The value of Shaw's EPC contract is valued at approximately US$1.29 billion. "We are excited to continue support Duke's clean energy expansion strategy with this significant EPC contract," J.M. Bernhard, Jr., chairman, president and chief executive officer of Shaw, said. "The supercritical pulverized clean coal technology is more advanced and efficient than conventional coal combustion technologies currently in operation and we are ready to deliver this important generating facility and air quality control system for our longtime client." About Duke Energy Corp. Headquartered in Charlotte, North Carolina, Duke Energy Corp. (NYSE:DUK) -- http://www.duke-energy.com/-- is an electric and natural gas company. About Shaw Group Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the US$100 million increase to the company's revolving credit facility. =============== C O L O M B I A =============== CHIQUITA BRANDS: Closes Sale of 12 Cargo Ships for US$227 Mil. -------------------------------------------------------------- Chiquita Brands International, Inc. has completed the previously announced sale of its 12 refrigerated cargo vessels for US$227 million. The cash proceeds from the transaction are being used to repay approximately US$170 million of debt, and the remainder will be retained for general corporate purposes, including growth investments or future debt repayments. The ships have been chartered back from an alliance formed by Eastwind Maritime Inc. and NYKLauritzenCool AB. The parties also entered a long- term strategic agreement in which the alliance will serve as Chiquita's preferred supplier in ocean shipping to and from Europe and North America. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Colombia, Panama and the Philippines. * * * As reported in the Troubled Company Reporter on May 16, 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. CHIQUITA BRANDS: Congressmen Want More Details on Firm's Case ------------------------------------------------------------- Josh Meyer at the Los Angeles Times reports that a group of congressmen are seeking more details about the Justice Department's handling of the Chiquita Brands International's case, as part of an inquiry into corporate payments to violent groups in Colombia. The Los Angeles Times relates that the U.S. attorney's office in Washington was heading the probe, in conjunction with Nahmias and others at the Justice Department headquarters. According to the report, the congressmen want to determine whether the department was "too lenient." They also want to know the reason for the delay of filing for criminal charges against Chiquita Brands. It took four years to file criminal charges after the firm admitted paying terrorist groups. The Los Angeles Times notes that Chiquita Brands admitted that its senior executives became aware of the payments to terrorist groups by September 2000 or earlier, and that the company continued to make the payments until February 2004, which was almost a year after its own lawyers and the Justice Department told them to stop. Congressional investigators told the Los Angeles Times that they are interested in an April 2003 meeting, when top Justice Department officials reportedly ordered Chiquita Brands to stop making the payments. The prosecutors were irritated by Chiquita Brands' continued payments to the United Self-Defense Forces of Colombia, after allegedly repeated warnings, the Los Angeles Times says, citing Justice Department sources. According to current and former department officials, they didn't agree on "some matters by political appointees in the department, including David Nahmias, a former deputy assistant attorney general overseeing counter- terrorism." The Justice Department's warnings were unclear, the Los Angeles Times says, citing Chiquita Brands. Justice Department officials told the Los Angeles Times that the prosecutors handling the Chiquita Brands case "had wanted to bring charges of material support of terrorism" against the firm. They also wanted to pursue charges against some of the firm's top executives by 2004. Chiquita Brands was charged three years later with one count of doing business with a global terrorist and was ordered to pay US$25 million over five years, the report says. No company officials were charged. Chiquita Brands told the Los Angeles Times that the fine wouldn't affect the firm's global operations. According to the Los Angeles Times, Chiquita Brands has annual revenue of US$4.5 billion. Current and former department officials told the Los Angeles Times that Nahmias asked Roscoe C. Howard Jr. and the U.S. attorney for the District of Columbia not to conduct search warrants at Chiquita Brands headquarters in Cincinnati. However, Howard refused, and then asked that charges not be filed until the Justice Department could meet with former attorney general Richard L. Thornburgh, a lawyer for the company's board. Chiquita Brands' legal representatives were in Washington to attend meetings with top officials at the Justice Department and the Treasury Department, often without the prosecutors' knowledge, knowing about it, the Los Angeles Times says, citing one of the senior Justice Department officials. "They were trying to cause political pressure," the official commented to the Los Angeles Times. Colombian attorney general Mario Iguaran told the Los Angeles Times that he is seeking all of the Justice Department's investigative files on Chiquita Brands. He promised to transfer the firm's officials to face charges in Colombia. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Colombia, Panama and the Philippines. * * * As reported in the Troubled Company Reporter on May 16, 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. CHIQUITA BRANDS: Unveils Rule 10b5-1 Stock Trading Plan Adoption ---------------------------------------------------------------- Chiquita Brands International Inc. disclosed that one of its executive officers has adopted a prearranged stock trading plan in accordance with guidelines specified by Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Rule 10b5-1 allows plans to be established that permit corporate executives to prearrange sales of company securities at a time when they are not aware of any material non-public information. Such plans typically involve a plan to sell shares over a set period of time. These pre-arranged planned trades will be executed at a specified later date, as set forth in the plan, without further action or oversight by the executive officer. A plan can provide for sales of stock on a particular date or at a particular price or a combination of both of these factors, along with others. The rules allow corporate executives to diversify their investment portfolios and avoid concerns about initializing stock transactions while possibly in possession of material non-public information. Chiquita's President and Chief Operating Officer of its Chiquita Fresh Group, Robert F. Kistinger, has adopted a plan under Rule 10b5-1which is in accordance with company's stock ownership guidelines and provides for the liquidation of portions of his holdings over multiple quarters, as part of systematic financial planning for the benefit of his family. Shares sold pursuant to the plan will be disclosed publicly through Form 144 filings and Form 4 filings as required by the U.S. Securities and Exchange Commission. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Colombia, Panama and the Philippines. * * * As reported in the Troubled Company Reporter on May 16, 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. =================== C O S T A R I C A =================== NEW HORIZONS: March 31 Balance Sheet Upside-Down by US$3.4 Mil. -------------------------------------------------------------- New Horizons Worldwide, Inc. reported its financial results in its Form 10-Q for the quarter ended March 31, 2007, which was filed with the U.S. Securities and Exchange Commission. The filing of the Form 10-Q was delayed due to the resolution of issues associated with the restatement of the company's fiscal year 2003 results and the completion of the fiscal year 2004, 2005 and 2006 audits. The filing of the Form 10-Q for the quarter ended March 31, 2007, brings the company current with its periodic SEC filings. The company's financial statements for fiscal years 2003, 2004, 2005 and 2006 are contained in Current Reports on Form 8-K filed with the SEC on Nov. 6, 2006, and Feb. 20, 2007, and the Annual Report on Form 10-K filed with the SEC on June 25, 2007. As of March 31, 2007, the company's balance sheet listed total assets of US$26.7 million, total liabilities of US$30.2 million, and total stockholders' deficit of US$3.4 million. First Quarter 2007 Results Revenue for the quarter ended March 31, 2007 totaled US$14.8 million, compared to US$23.1 million in the comparable 2006 period. The decrease in revenue is the result of the disposal and re-franchising of seven company-owned training centers since March 31, 2006, and the July 2006 cancellation of the company's courseware reseller contract. Revenue from company-owned training centers declined to US$9.3 million in the quarter ended March 31, 2007 from US$16.1 million in the comparable period of 2006 primarily as a result of the disposal of the seven company- owned locations. Franchising revenue declined to US$5.6 million as compared to US$7.0 million in 2006 as a result of the cancellation of the company's courseware reseller contract in July 2006. Partially offsetting this decline, franchise fee and royalty revenue increased to US$4.4 million in the quarter ended March 31, 2007, from US$3.7 million in the comparable 2006 period primarily as a result of re-franchising the seven company-owned training centers. The company had operating income of US$977,000 in the first quarter of 2007 compared to an operating loss of US$2.0 million in the first quarter of 2006. The company defines operating income (loss) as income (loss) before gains (losses) from the sale of assets, interest and income taxes. The improvement is the result of improved margins in both the company-owned training center and franchising segments as the Company's expense saving initiatives began to take effect. Net income for the first quarter of 2007 was US$1.2 million, or US$0.12 per diluted share, compared to a net loss of US$1.6 million, or (US$0.16) per diluted share, in the comparable 2006 period. For the three months ended March 31, 2007, total system-wide revenues from all franchised and company-owned locations was US$91.0 million compared to total system-wide revenues for the comparable 2006 period of US$88.8 million, an increase of 2.4%. Mark A. Miller, President and Chief Executive Officer of New Horizons, stated, "With this filing New Horizons is current with its periodic SEC filings for the first time since November 2004. We are encouraged by our first quarter results as both of our business segments operated profitably. In the franchising segment, we improved our operating margin despite a reduction in revenue due to the 2006 cancellation of our courseware reseller contract. Better expense control combined with savings from our cost cutting initiatives were major contributors to the improved margin. In the company-owned location segment, revenues declined with the disposal of seven centers. The remaining centers were modestly profitable in the first quarter, representing an improvement over the first quarter of 2006, when they operated at a 9.2% loss." Mr. Miller continued, "We realize that one quarter does not constitute a trend and that our net income was increased substantially by a non-recurring gain on the sale of company- owned training centers. We are committed to a disciplined approach of executing our strategic plan to drive increased shareholder value over a long period of time. We appreciate the support that our shareholders, employees and franchise owners have shown us." About New Horizons Anaheim, California-based New Horizons Worldwide Inc. (Pink Sheets: NEWH) - http://www.newhorizons.com/-- franchises the New Horizons Computer Learning Center brand in the U.S. and around the world. It also owns and operates computer training centers in the U.S. and more than 280 centers in 56 countries. New Horizons Computer Learning Centers is an independent IT training company by IDC in 2006. It has Latin America operations in Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Panama, Peru and Puerto Rico. =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: To Start Work on San Jose de las Matas ------------------------------------------------------------ The Dominican Republic has inked a hydroelectric project construction accord with Brazilian company Andrade Gutierrez SA, Prensa Latina reports. The US$285 million San Jose de las Matas hydroelectric project in Santiago province is expected to supply 187 megawatts to the national energy system, the same report says. The Brazilian National Bank of Social and Economic Development, the NIB-NORDINT INVESTMENT BANK and credit lines from Sweden, Norway, Finland and Portugal provide financing for the project, Prensa Latina relates. Once operational, the new plant is expected to let the government save more than US$40 million a year, the same report adds. * * * As reported in the Troubled Company Reporter-Latin America on May 4, 2007, Moody's Investors Service upgraded the Dominican Republic government's foreign- and local-currency bond ratings to B2 from B3. The Dominican Republic's foreign-currency country ceiling was upgraded to Ba3 from B1. The country's ceiling for foreign-currency bank deposits was also upgraded to B3 from Caa1. Moody's said all ratings have stable outlook. ============= E C U A D O R ============= GENERAL MOTORS: Labor Talks to Aid Turnaround of U.S. Business -------------------------------------------------------------- General Motors Corp. expects labor negotiations with unions to help boost its struggling business in the U.S. as both parties explore ways to cut costs, Reuters reports, quoting GM Chief Executive Rick Wagoner. "We will improve results in the United States faster than people think," Mr. Wagoner said after disclosing new investment plans in Brazil and Argentina, Reuters notes. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries, including Brazil and India. 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. It 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. The rating outlook remained negative, according to Moody's. ================= G U A T E M A L A ================= IMAX CORP: Completes 2002-2005 Financial Results Restatement ------------------------------------------------------------ IMAX Corporation has completed its restatement of financial results covering 2002 through 2005, and will file its Form 10-K for fiscal 2006 and Form 10-Q for the first quarter of fiscal 2007, recording a net loss per diluted share from continuing operations of US$0.12 for the first quarter of fiscal 2007, compared to a restated net loss of US$0.15 per diluted share from continuing operations for the first quarter of fiscal 2006. For the full year 2006, the Company reported a net loss from continuing operations of US$18.3 million, which includes several significant one-time items, such as a future tax valuation allowance, costs associated with its restatement, regulatory inquiries and attempted sales process, and other write-downs, compared to restated reported earnings from continuing operations of US$5.8 million in 2005. IMAX Co-Chief Executive Officers Richard L. Gelfond and Bradley J. Wechsler stated, "We are pleased to complete our restatement and to file our 10-K and 10-Q today. In recent months we have been working very closely with the regulators, our auditors, counsel, Audit Committee and Board to manage this process, and are happy to be moving ahead unencumbered by the overhang of delayed filings. Most recently, we carefully evaluated our accounting practices in light of comments received from the staffs of the U.S. Securities and Exchange Commission and Ontario Securities Commission, and, during the course of our interaction with these regulators, decided that we should revise our accounting policy as it relates to revenue recognition of theatre systems. The SEC and OSC inquiries remain ongoing. As for our performance to date in 2007, we are pleased to have had 19 signings completed in the first half of the year. In addition, our joint venture initiative is being positively received by exhibitors due principally to the strength of our film slate and the strong financial performance of the JV's that have been installed to date. While the Company navigated several challenges in fiscal 2006, we believe IMAX is now well positioned to expand our worldwide network and generate greater recurring revenues. Many of the events that impacted the Company in fiscal 2006 are now behind us, and several compelling growth opportunities lie ahead." The company formally launched its joint venture initiative at the beginning of the year as part of its effort to add incremental momentum to theatre growth and realize the benefits of network economics more quickly. In 2007 to date, IMAX has signed joint venture agreements for five theatres: a two-theatre joint venture agreement with Regal Cinemas in the first quarter and three-theatre deal with Muvico Theaters in the second quarter. Three of those five theatres have since opened and have experienced strong early results, and numerous discussions are ongoing both domestically and abroad. During the first quarter, the company signed agreements for 13 IMAX(R) theatre systems, two of which were joint venture arrangements and three of which were subject to certain conditions. The company recognized revenue on four theatre systems in the first quarter and recognized one additional sale of an existing system. The company signed agreements for six theatre systems in the second quarter of fiscal 2007. On the film side, the company reported that Warner Bros. Pictures' Harry Potter and the Order of the Phoenix: An IMAX 3D Experience opened July 11, with the film's 18-minute finale digitally converted into live-action IMAX(R) 3D. The film grossed US$11.6 million in its first week on 126 IMAX screens, which represents the company's largest worldwide opening ever. It shattered several other opening box office records including largest domestic per screen average at US$98,700, and largest single day at US$1.9 million. The film's opening weekend domestic box office performance was double that of the opening weekend of the previous instalment, Harry Potter and the Goblet of Fire: The IMAX Experience. The film set several international records as well, including the best opening weekend at US$1.4 million on 35 screens; in coming weeks the film will open in 17 additional international IMAX theatres. In addition, Warner Bros. Pictures' 300: The IMAX Experience, released on March 9, 2007, has grossed US$24.0 million to date and Sony's Spider-Man 3: The IMAX Experience, released domestically on May 4th, has grossed approximately US$24.1 million to date. "We are delighted with the ongoing strength of our film slate, which has now featured five consecutive well-received films: Happy Feet, Night at the Museum, 300, Spider-Man 3 and last week's release of Harry Potter and the Order of the Phoenix, with the finale in unparalleled IMAX(R) 3D. For the last several years, we have discussed the impact of the growing theatre network on our film and other recurring revenues. The performance of Harry Potter 5, as well as our other recent releases, is demonstrating the power of the expanded network. In its first week, Harry Potter and the Order of the Phoenix grossed US$11.6 million on 126 IMAX screens, compared to a first week of US$5.5 million on 75 IMAX screens for Harry Potter and the Goblet of Fire in 2005. These increasingly strong results not only impact our film revenues, but also our joint venture arrangements, owned & operated theatre performance and ongoing network royalties. We have said that the network economics as the number of global IMAX theatres expands are going to be increasingly impressive, and this is strong evidence that this is already happening. With our terrific film slate, the positive initial response to our joint venture initiative, and the Company on track to introduce our new digital platform in late 2008 to mid-2009, we believe IMAX will see even greater enhanced network growth, improved network economics and increased recurring revenues going forward," concluded Messrs. Gelfond and Wechsler. In March 2007, the company delayed the filing of its annual report on Form 10-K for fiscal 2006 and its quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2007 due to the discovery of certain accounting errors, mostly in the area of film accounting and inventory capitalization and taxes. The impact of these previously-disclosed errors resulted in a net overstatement of aggregate earnings previously reported for the periods 2002 through the third quarter of 2006 of US$4.0 million. Of this US$4.0 million, approximately US$2.5 million was recognized in the fourth quarter of 2006, with the remaining US$1.5 million expected to be recognized in future periods, the majority in 2007. The company subsequently broadened its accounting review to include certain other accounting matters, based on comments the company received from the SEC and OSC. Under the former method for recording revenues under multiple element arrangement accounting, as reflected in the company's 2005 10-K, the company recognized revenue when the projector and sound system were installed and deferred revenue recognition of components deemed to be separate deliverables until their subsequent installation, such as the screen. Because the projector and sound system are delivered together, wired together and coordinated to provide a synchronized audio-video experience, the company considered these two components to be a single deliverable, with other deliverables, such as the glasses cleaning machine and the screen system, treated separately. After extensive review and consideration, the company determined that the screen, 3-D glasses cleaning machine and initial services including projectionist training should be considered one single deliverable. In addition, the company will now require receipt of a signed acceptance from each client before recognizing revenue, in the absence of which the company will recognize revenue upon the opening of the theatre. Consequently, the company concluded that errors occurred in its prior accounting for theatre systems, has revised its policy with regard to revenue recognition for theatre systems, and restated its financial results in accordance with the revised policy. The revised policy has the effect of shifting theatre systems revenues from the period in which they were previously reported to subsequent periods. The impact of these errors resulted in a net overstatement of aggregate earnings previously reported for the periods 2002 through 2005 of US$10.4 million. The operating results for 2006 include the recognition of income resulting from the restatement of US$7.4 million, meaning that the net earnings impact on future periods is US$3.0 million. It is anticipated that, of that US$3 million in net impact, the majority will be recognized in income in 2007. Breaking it down further, a total of 16 installation transactions with a total revenue and margin impact of US$25.4 million and US$14.1 million, respectively, shifted between reported quarters in their originally reported years. In addition, a total of 14 installation transactions, with a total revenue and margin impact of US$27.1 million and US$14.0 million, respectively, shifted between fiscal years. As part of the company's review of these transactions, certain other adjustments were identified, including misallocation of value to elements and accounting for finance income on certain leases that were previously reserved against. The net amount of these adjustments over the period 2002 through 2005 was a decrease in income of US$1.9 million. Transactions and events related to these adjustments are expected to result in the majority of the income reversing into 2007. For the three months ended March 31, 2007, the company's total revenues were US$27.2 million, as compared to US$23.3 million reported for the prior year period. Systems revenue was US$13.1 million versus US$12.8 million in the prior year period. The company recognized revenue on 5 theatre systems, which qualified as either sales or sales-type leases in the first quarter of 2007, compared to 5 in 2006. For the first quarter of 2007, film revenues were US$9.1 million, as compared to US$6.0 million in the first quarter of 2006. This included IMAX DMR(TM) revenues of US$4.6 million compared to US$1.1 million in 2006. Theatre operations revenue was US$4.5 million in the first quarter of 2007 compared to US$3.7 million in the first quarter of 2006. The company's cash and short term investments position was US$27.4 million as of March 31, 2007, compared to US$27.2 million as of Dec. 31, 2006. For the year ended Dec. 31, 2006, the company's total revenues were US$129.3 million, as compared to US$135.3 million reported for the prior year. Systems revenue was US$72.1 million versus US$88.6 million in the prior year, a decrease due principally to a reduction in settlement revenue for 2006. The company recognized revenue on 30 theatre systems which qualified as either sales or sales-type leases in fiscal 2006, versus 30 in 2005, as restated. For fiscal 2006, film revenues were US$36.3 million, as compared to US$26.0 million in fiscal 2005. This included IMAX DMR revenues of US$14.6 million, compared to US$8.9 million in 2005, an increase of 65%. Theatre operations revenue decreased to US$16.9 million in 2006 from US$17.5 million in 2005. Other revenue was US$4.0 million in fiscal 2006, compared to US$3.2 million in fiscal 2005. During the fourth quarter of fiscal 2006, the Company recorded a write-down of US$3.2 million related primarily to inventories, property, plant and equipment and accounts receivable. It also recorded a deferred tax valuation allowance of US$6.2 million, which equates to approximately US$0.15 per share, during the fourth quarter of fiscal 2006. The tax write down relates to the company's current assessment that the ultimate utilization of certain tax assets previously recorded on the balance sheet may not be realized within a two-year period. About IMAX Corporation Headquartered jointly in New York City and Toronto, Canada, IMAX Corporation -- http://www.imax.com/-- (NASDAQ:IMAX) is one of the world's leading entertainment technology companies, with particular emphasis on film and digital imaging technologies including 3D, post-production and digital projection. IMAX is a fully-integrated, out-of-home entertainment enterprise with activities ranging from the design, leasing, marketing, maintenance, and operation of IMAX(R) theatre systems to film development, production, post-production and distribution of large-format films. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. IMAX has locations in Guatemala, India, Italy, among others. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2007, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on IMAX Corp. to 'CCC+' from 'B-'. The ratings remain on CreditWatch, with implications revised to developing from negative, to indicate possible upward or downward movement of the ratings. The ratings were originally placed on CreditWatch with negative implications on April 2, 2007. ============= J A M A I C A ============= WEST CORP: June 30 Balance Sheet Upside-Down by US$2.1 Billion -------------------------------------------------------------- West Corporation's balance sheet at June 30, 2007, showed total assets of US$3 billion, total liabilities of US$4.1 billion, minority interest of US$11 million, class L common stock of US$969.3 million, resulting in a stockholders' deficit of US$2.1 billion. Revenues of US$520.2 million for the second quarter ended June 30, 2007, compared to US$461.7 million for the same quarter last year, an increase of 12.7%. Revenue from acquired entities accounted for US$28.7 million of the US$58.5 million increase during the second quarter and US$100.9 million of the US$142.4 million year-to-date increase. Net income for the second quarter ended June 30, 2007, was US$2.5 million, compared with US$37.8 million for the same quarter last year. Liquidity At June 30, 2007, West Corporation had cash and cash equivalents totaling US$281.3 million and working capital of US$189.3 million. Second quarter depreciation expense was US$25.8 million and amortization expense was US$19 million. Cash flow from operating activities was US$45.3 million and was impacted by interest expense of US$83.5 million. Comments "During the quarter, we invested US$25.7 million in capital expenditures primarily for telecom and computer network equipment," stated Paul Mendlik, chief financial officer of West Corporation. "The company also expanded its term credit facility by US$135 million to fund the Omnium acquisition." "We are pleased with this quarter's results and the closing of the Omnium acquisition on May 4," said Thomas B. Barker, chief executive officer of West Corporation. About West Corp. Based in Omaha, Nebraska, West Corp. -- http://www.west.com/-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West helps its clients communicate effectively, maximize the value of their customer relationships and drive greater profitability from every interaction. The company's integrated suite of customized solutions includes customer acquisition, customer care, automated voice services, emergency communications, conferencing and accounts receivable management services. The company also has operations in Australia, Canada, China, Hong Kong, India, Jamaica, Mexico, Philippines, Singapore, Switzerland and the United Kingdom. At March 31, 2007, the company's balance sheet showed US$2.7 billion in total assets and US$3.9 billion in total liabilities resulting in a stockholders' deficit of US$2.1 billion. The balance sheet however also that the company is liquid with US$692 million in total current assets and US$535 million in total current liabilities. =========== M E X I C O =========== COLLINS & AIKMAN: C&A Automotive Canada Files for CCAA ------------------------------------------------------ Collins & Aikman Corporation disclosed Thursday that Collins & Aikman Automotive Canada Inc. applied for creditor protection under the Companies' Creditors Arrangement Act (Canada) in the Ontario Superior Court of Justice. The CCAA filing for Collins & Aikman's Canadian Plastics operations is a necessary step in completing its restructuring efforts. "This CCAA filing will allow the company to complete any potential sale transactions involving our Canadian Plastics operations," said John Boken, Collins & Aikman's Chief Restructuring Officer. "Similar to our previous filing involving our Soft Trim operations, we expect to work closely with our customers, suppliers and employees, as well as the US and Canadian courts to complete our restructuring efforts." In connection with the filing, Collins & Aikman sought and obtained orders staying creditors and other third parties from terminating agreements with the companies or otherwise taking enforcement steps. Collins & Aikman's Canadian Plastics entities will continue operations in the ordinary course during the CCAA proceedings under the leadership of their existing management team. The Company has arranged for DIP financing that will provide the necessary funding during the CCAA proceedings. Ernst & Young Inc. was appointed by the Court as the Monitor in the CCAA proceedings. About Collins & Aikman Headquartered in Troy, Mich., Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The company operates in Latin America through its facilities in Mexico. The company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtors with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed US$3,196,700,000 in total assets and US$2,856,600,000 in total debts. On Aug. 30, 2006, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Dec. 22, 2006, they filed an Amended Joint Chapter 11 Plan. The Court approved the adequacy of the Amended Disclosure Statement. As reported in the Troubled Company Reporter on July 16, 2007, the Court confirmed the Debtors' Amended Joint Plan of Liquidation. COOPER-STANDARD: Moody's Affirms B2 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service affirmed the B2 Corporate Family and Probability of Default Ratings of Cooper-Standard Automotive Inc. and its wholly owned Canadian subsidiary Cooper-Standard Automotive Canada Limited. Moody's also assigned a Ba2 rating to Cooper-Standard's incremental senior secured term loan which will be used to finance a portion of the announced acquisition of the Metzeler Automotive Profile Systems sealing systems operations from Automotive Sealing Systems S.A for US$134 million. MAPS operations are located in Germany, Italy, Poland and Belgium, including joint venture interests in India and China. The financing for the transaction will consist of a USD$ equivalent 87 million incremental term loan, drawings under an amended revolving credit facility, and a US$30 million equity infusion from Cooper-Standard's equity sponsors. In a related action Moody's raised the ratings of the existing senior secured bank credit facilities to Ba2 from Ba3, affirmed the B3 rating on the guaranteed senior unsecured notes, and affirmed the Caa1 rating on the guaranteed senior subordinated notes. The Speculative Grade Liquidity rating was raised to SGL-2. The ratings outlook was changed to stable from negative. The ratings reflect the expected neutral immediate impact on Cooper-Standard's credit metrics resulting from the acquisition's purchase price along with the equity infusion. The acquisition will further increase Cooper-Standard's geographic and customer diversity, and further strengthen the company's sealing systems capabilities. Synergies are expected to be nominal as a result of minimal overlapping operations and customers in the MAPS' operating region. The ratings also reflect the company's pro forma high leverage, moderate interest coverage, and acquisitive nature. Following the transaction Cooper-Standard will continue to have about 54% revenue exposure to the Big-3 and have to contend with agreed upon price concessions to OEM customers and high raw material cost. The stable outlook reflects Cooper-Standard's demonstrated ability to maintain credit metrics consistent with a B2 rating subsequent to the acquisition of ITT's Fluid Handling Systems Division in the first quarter of 2006 and the expectation that this ability will continue following the MAPS acquisition. The equity infusion from the company's sponsors mitigates the acquisition's impact on credit metrics. Cooper-Standard may experience additional industry pressure from negotiated price concessions, raw material costs, and market share challenges of its OEM customers. However, the company's ongoing restructuring efforts, and integration history, should lessen the impact of these challenges. The acquisition provides further business diversification both geographically and on a customer basis, which are stabilizing factors. The SGL-2 Speculative Grade Liquidity rating reflects Moody's expectation that the company will maintain good liquidity over the next 12 months from internal cash generation, cash on hand, and availability under committed borrowing facilities. The amended bank credit facilities will eliminate the interest coverage financial covenant and amend the leverage covenant to a senior secured leverage test, which will incorporate sufficient cushion over the next 12 months. The assigned rating is: -- Ba2 (LDG2, 21%) rating for the new add-on USD87MM equivalent senior secured term loan at Cooper-Standard The raised ratings are: -- senior secured credit agreement for borrowers Cooper- Standard and Cooper-Standard Canada to Ba2 (LGD2, 21%) from Ba3 (LDG2, 24%), consisting of: -- guaranteed senior secured revolving credit (US$ denominated) at Cooper-Standard, due December 2010; -- guaranteed senior secured revolving credit (US$ or CND$ denominated) at Cooper-Standard Canada, due December 2010; -- guaranteed senior secured term loan A (CND$ denominated) at Cooper-Standard Canada, due December 2010; -- guaranteed senior secured term loan B (US$ denominated) at Cooper-Standard Canada, maturing December 2011; -- guaranteed senior secured term loan C (US$ denominated) at Cooper-Standard, maturing December 2011; -- guaranteed senior secured term loan D (US$ and Euro denominated) at Cooper-Standard, maturing December 2011; -- Speculative Grade Liquidity rating of Cooper-Standard to SGL-2 from SGL-3 These ratings were affirmed: -- B3 (LGD4 60%) for the guaranteed senior unsecured notes maturing December 2012; -- Caa1(LGD5 86%) for the guaranteed senior subordinated unsecured notes maturing December 2014 -- B2 Corporate Family Rating -- B2 Probability of Default Rating The last rating action was on Sept. 22, 2006 when the LGD methodology was applied. For the LTM period ending March 31, 2007, Cooper-Standard's EBIT/interest expense was approximately 1.1x. Total Debt/EBITDA was approximately 4.8x. Cooper-Standard had positive free cash flow of US$105 million for the LTM period ending March 31, 2007. At March 31, 2007 the company had US$51 million of cash on its balance sheet and an additional US$109 million of borrowing capacity under its revolving credit facility, net of letters of credit. Pro Forma for the MAPS transaction, Debt/EBITDA and EBIT/Interest levels as the accretive purchase price multiple and equity infusion is offset by increased debt and the additional pension liabilities assumed. Availability under the revolving credit is expected to decrease by about US$23 million due to funding of the MAPS transaction. However, these amounts are expected to be repaid in the near term given the company free cash flow generation capacity. Future events that could improve Cooper-Standard's outlook or ratings include the realization of incremental new business awards from both domestic transplants and foreign OEMs that will serve to diversify and globalize the customer base, rising average content per vehicle, stabilized raw material costs resulting in increased margins, and permanent debt reduction at a faster pace than projected. Consideration for an improved outlook or rating upgrade could arise if any combination of these factors were to reduce leverage consistently under 4 times or increase EBIT/interest coverage approaching 2 times. Future events that could result in pressure on Cooper-Standard's outlook or ratings include material reductions in OEM production volumes that adversely affect the company's business outlook, a failure by the company to realize material lean manufacturing and restructuring savings sufficient to offset customer price concessions and other operating cost increases, rising raw materials prices which cannot be offset by customer surcharges and price increases, lost market share, insufficient availability under the revolving credit facility, additional announcements of a material acquisition, or plans for buybacks of common stock or a dividend payment to the common shareholders. Consideration for lower ratings could arise if any combination of these factors were to increase leverage over 5.5 times, or lower existing EBIT/interest. Headquartered in Novi, Michigan, Cooper-Standard Automotive, Inc. -- http://cooper-standard.com/-- is a portfolio company of The Cypress Group and Goldman Sachs Capital Partners. It is a leading global manufacturer of fluid handling systems (about 53% of revenues); and body sealing, and noise, vibration, and harshness control systems (about 47%) for automotive vehicles. The company sells about 80% of its products directly to automotive original equipment manufacturers. Annual revenues currently about US$2.2 billion. It has Latin America operations in Brazil and Mexico. FIRST DATA: Earns US$228.9 Million in Quarter Ended June 30 ----------------------------------------------------------- First Data Corp. disclosed net income of US$228.9 million for the three months ended June 30, 2007, compared to net income of US$462.6 million The company recorded consolidated revenues of up 16% to US$2 billion. Earnings per share was US$0.31 excluding items or US$0.30 from continuing operations. The items were comprised of transaction costs related to the pending merger with an affiliate of Kohlberg Kravis Roberts & Co. as well as net expenses resulting from litigation, restructuring and all other items. Second quarter 2007 earnings per share of US$0.30 from continuing operations compares with last year's second quarter earnings per share of US$0.33 from continuing operations. However, the second quarter of 2006 included US$0.07 of items favorable to earnings, primarily related to a non-cash SFAS 133 derivative accounting restatement. Accordingly, when comparing the second quarter of 2006 to the second quarter of 2007, excluding all items, First Data's earnings per share grew from US$0.26 to US$0.31, an increase of 19%. Total earnings per share of US$0.60 in the second quarter of 2006 included US$0.27 from discontinued operations principally related to the spin-off of Western Union. "Our results demonstrated strong continuing momentum across all of our businesses. The growth in each segment is a testament to the very predictable and recurring business model underlying our operations," said Ric Duques, Chairman and Chief Executive Officer. "Our employees around the world delivered another quarter of results that met or exceeded our expectations." Segment Results Commercial Services For the quarter, Commercial Services generated revenues of US$1.1 billion, a growth rate of 11% or 7% excluding reimbursable debit network fees. Revenue growth was primarily driven by strong transaction growth. Operating profit was US$297 million, up 7%. Compared to the second quarter of 2006, operating margin stayed relatively constant at 33.5% excluding reimbursable debit network fees. Reported operating margin for the quarter was 26.0%. Financial Institution Services For the quarter, Financial Institution Services generated revenue of US$487 million, up 8% or 7% excluding reimbursables. Operating profit was US$99 million, up 4%. Operating margin for the quarter was 20.3%, or 30.5% excluding reimbursables. First Data International For the quarter, First Data International generated revenue of US$403 million, up 35%. Revenue growth on a constant currency basis, excluding acquisitions and divestitures, was 9%. Operating profit was US$41 million, up 21%, and operating margin was 10.1%. Overall, results reflected continued progress in executing our four key strategies: 1) Growing the core business; 2) Expanding product offerings; 3) Improving the overall cost structure, and; 4) Expanding the business globally. Cash Flow Year to date free cash flow was US$534 million and operating cash flow from continuing operations was US$657 million. "These results demonstrate First Data's continued ability to generate high levels of cash flow," said Mr. Duques. Outlook On April 1, 2007, First Data entered into an agreement to be acquired by KKR in a transaction with a total value of approximately US$29 billion or US$34 per share in cash. Following the completion of the transaction, Michael D. Capellas, former CEO of MCI Inc. and Compaq Computer Corporation, will become CEO of First Data. Mr. Capellas will succeed Henry C. "Ric" Duques, the current Chairman and CEO of First Data. Duques announced his intention to retire within two years when he returned as Chairman and CEO in late 2005. Mr. Duques said, "The significant items required to complete this historic transaction with KKR are on track, we already have committed financing, and we remain on schedule to close in the third quarter." For the full year 2007, First Data affirmed its earnings per share guidance from continuing operations in the range of US$1.20-US$1.26. This guidance excludes costs related to the KKR transaction as well as the effect of the wind-down of the Official Check and Money Order business, which the company is not able to accurately estimate at this time. Due to the scheduled closing of the transaction in the third quarter, First Data will no longer update financial guidance. Mr. Duques concluded, "For more than 11 years across two tenures, it has been my privilege to serve as Chairman and CEO of First Data, and I have many people to thank. First, our customers who became more like partners in pioneering and building the electronic payments business around the world. Second, our Board of Directors who gave us consistent support and guidance over our many years as a public company. Third, a highly talented senior management team who, quarter after quarter, delivers the kind of results we reported today. And, most importantly, a team of 29,000 employees who have made First Data a leader in its industry -- and who will continue to do so well into the future." About First Data First Data Corp. (NYSE: FDC) -- http://www.firstdata.com/-- provides electronic commerce and payment solutions for businesses worldwide, including those in New Zealand, the Netherlands and Mexico. The company's portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at 2 million ATM and retail locations. * * * As reported in the Troubled Company Reporter on April 4, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on First Data Corp. to 'BB+' from 'A' and placed it on CreditWatch with negative implications. The rating action followed First Data's agreement to be acquired by Kohlberg Kravis Roberts & Co. in a transaction valued at about USUS$29 billion. GRUPO IMSA: Reimbursing Shares Not Tendered To Ternium Offer ------------------------------------------------------------ Grupo Imsa said in a filing with the Mexico City stock exchange that all shares not tendered to steel group Ternium's takeover offer of US$6.40 per share will be subject to reimbursement through capital reduction at the same price on July 26. Business News Americas relates that Grupo had said that the offer expired on July 23. Ternium's bid seeks to acquire 100% of Grupo Imsa's 270 million shares for US$1.7 billion. Given Grupo Imsa's additional US$1.4 billion in debt, the enterprise value has increased to US$3.1 billion, BNamericas states. About Ternium Ternium consolidates the operations of the steel companies Hylsa (Mexico), Siderar (Argentina) and Sidor (Venezuela). Ternium manages highly-integrated processes to manufacture steel and value-added products and services. About Grupo IMSA Headquartered in Mexico, Grupo IMSA, S.A. de C.V. -- http://www.grupoimsa.com/-- is a diversified industrial company that conducts its business in three segments: steel processing products, steel and plastic construction products and aluminum and other related products. The company's products include galvanized metal, painted metal, aluminum for construction, glass fiber and painted laminates. The company operates through its wholly owned subsidiary holding companies: IMSA ACERO S.A. de C.V., IMSATEC S.A. de C.V., and IMSALUM S.A. de C.V. The company exports its products to the United States, Canada, Mexico, Europe and Central and South America. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 11, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Grupo Imsa SAB de CV to 'BB+' from 'BBB' and removed it from CreditWatch, where it was placed with negative implications on Oct. 2, 2006. S&P said the outlook was stable. GRUPO TMM: Securitizes Vessels' Future Revenues Under Trust Plan ---------------------------------------------------------------- Grupo TMM, S.A.B., has securitized the future revenues of its vessels through the issuance of a first tranche of 20-year Mexican Trust Certificates (Certificados Bursatiles) in the amount of MXN$3.0 billion (approximately US$280 million dollars) at a rate of TIIE + 225 basis points (the First Issuance). This securitization was completed under the Company's Mexican Trust Certificates program that may increase up to MXN$9.0 billion as the company identifies opportunities to acquire offshore and product tanker vessels. The Program was previously approved by the company's shareholders on April 30, 2007, at its Annual Ordinary Shareholders Meeting and represents a long-term financing in pesos that is non-recourse to the company. Javier Segovia, president of Grupo TMM, said, "We are very pleased to announce this transaction as it provides for long- term financing tied to the useful life of our vessels and is the first of its kind in Mexico. The rating of AA (mex) by Fitch Ratings for this financing structure reflects TMM's quality operating performance, increased demand for maritime transportation services, and the reality that the Mexican Navigation Law will be vigorously enforced. The Program allows the Company to improve its debt profile while at the same time increasing its financial flexibility by reducing the debt service under its former vessel financings. Additionally, the Program also affords the Company a better position to participate in the fulfillment of Mexico's expanding demand for offshore vessels and product tankers. In summary, the securitization of the future revenues of our vessels is a milestone, which opens up accretive growth opportunities for TMM. Additional information will be forthcoming during the Company's second-quarter conference call." Headquartered in Mexico City, Grupo TMM SA (NYSE: TMM)(MEX VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin American multimodal transportation and logistics company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. * * * Standard & Poor's Ratings Services raised its corporate credit rating on Grupo TMM SA to 'B-' from 'CCC.' The rating was removed from Creditwatch, where it was placed on Dec. 15, 2004. S&P said the outlook is positive. ================= N I C A R A G U A ================= * NICARAGUA: Venezuela Cancels Nation's US$33.2-Million Debt ------------------------------------------------------------ Venezuela has cancelled Nicaragua's US$33.2-million indebtedness under the framework of a debt relief initiative, Xinhua News reports, citing the Nicaraguan Foreign Ministry. The Nicaraguan ministry said in a news release that because Venezuela decided to reduce Nicaragua's debt under the framework of the Heavily Indebted Poor Countries debt relief initiative, Nicaragua's public debt was reduced to US$3.3 billion. The Ministry said in the release, "Venezuela's decision on debt cancel strongly supports our country and will make Nicaragua's public debt sustainable and improve the investment climate, making the country more attractive to local and foreign investment." Xinhua News relates that Venezuela's President Hugo Chavez visited Nicaragua late last week and "handed" US$5.3-million credits to small companies. The Venezuelan leader also launched with his Nicaraguan counterpart Daniel Ortega a fossil-fuel plant in Nicaragua. Venezuela would construct US$1.5-billion petrochemical, electricity and natural gas plants in Nicaragua, Xinhua News states, citing President Chavez. * * * Moody's Investor Service assigned these ratings to Nicaragua: Rating Rating Date ------ ----------- Long Term Caa1 June 30, 2003 Senior Unsecured Debt B3 June 30, 2003 =========== P A N A M A =========== NCO GROUP: Launches Exchange Offers for US$365 Million Sr. Notes ---------------------------------------------------------------- NCO Group Inc. has commenced an offer to the holders of its Floating Rate Senior Notes due 2013 (CUSIP No. 144A: 628858 AE 2, ISIN No. 144A: US628858AE21) and its 11.875% Senior Subordinated Notes due 2014 (CUSIP No. 144A: 628858 AF 9, ISIN No. 144A: US628858AF95; CUSIP No. Reg. S: U6376M AC 5, ISIN No. Reg. S: USU6376MAC56) to exchange the Outstanding Notes for like principal amount of its $165 million principal amount Floating Rate Senior Notes due 2013 and its US$200 million principal amount 11.875% Senior Subordinated Notes due 2014, which have been registered under the Securities Act of 1933, as amended. The Outstanding Notes were sold in a private placement by the company, which was completed in November 2006. The company was required to carry out the Exchange Offer under the terms of agreements entered into in the private placement. The Exchange Offer is scheduled to expire at 5:00 p.m., New York City time, on Aug. 15, 2007, unless extended by the company. The exchange agent for the exchange offer is The Bank of New York. Holders of the Outstanding Notes may obtain further information by calling The Bank of New York at 212-815-5098, or by facsimile at 212-298-1915. Headquartered in Horsham, Pennsylvania, NCO Group Inc. -- http://www.ncogroup.com/-- provides business process outsourcing services including accounts receivable management, customer relationship management and other services. NCO provides services through over 100 offices in the United States, Canada, the United Kingdom, Australia, India, the Philippines, the Caribbean and Panama. * * * NCO Group carries Moody's Investor Service's B2 long-term corporate family rating and probability of default rating. The outlook is stable. The company also carries Standard & Poor's B+ long-term foreign and local issuer credit rating. ======= P E R U ======= HANOVER COMPRESSOR: Begins Tender Offer for US$550-Mil. Notes ------------------------------------------------------------- Hanover Compressor Company has commenced cash tender offers for US$550 million of its outstanding senior notes on the terms and subject to the conditions set forth in the company's Offer to Purchase and Consent Solicitation Statement dated July 19, 2007. The company is soliciting consents from the holders of the Notes that would effect certain proposed amendments to the indentures governing the Notes to, among other things, eliminate substantially all of the restrictive covenants and eliminate or modify certain events of default. The tender offers will expire at 5:00 p.m., New York City time, on Aug. 17, 2007, unless extended or earlier terminated by the company. The company reserves the right to terminate, withdraw or amend the tender offers and consent solicitations at any time subject to applicable law. The Total Consideration (as to each Series) payable per US$1,000 principal amount of Notes validly tendered and not validly withdrawn prior to 5:00 p.m., New York City time, on Aug. 1, 2007, and accepted for payment pursuant to an Offer will be a price equal to (a) the present value on the payment date of the sum of (i) the amount the issuer would be required to pay on Notes on the date on which Notes become redeemable at a set redemption price as set forth in the table above (as to each Series, the Repayment Price and Repayment Date, respectively) and (ii) the amount of interest that would accrue and be payable from the last date on which interest has been paid to the Repayment Date, where, in the case of (i) and (ii), the present value is determined on the basis of a yield to the Repayment Date equal to the sum of (x) the bid-side yield on the applicable U.S. Treasury Note, as calculated by Wachovia Securities in accordance with standard market practice, based on the bid price for the Reference Security, as of 2:00 p.m., New York City time, on Aug. 3, 2007, which is ten business days preceding the scheduled Expiration Time, subject to adjustment as provided in the tender offer documents, as displayed on the applicable Reference Page of the Bloomberg Government Pricing Monitor Page set forth in the table above, plus (y) 50 basis points, such price being rounded to the nearest cent per US$1,000 principal amount of Notes, minus (b) accrued and unpaid interest. The Tender Offer Consideration (as to each Series) payable per US$1,000 principal amount of Notes validly tendered after the Consent Payment Deadline, not validly withdrawn and accepted for payment pursuant to an Offer is equal to the Total Consideration minus the US$30 per US$1,000 principal amount consent payment. The company will pay accrued and unpaid interest up to, but not including, the payment date. Each holder who validly tenders its Notes and delivers consents prior to the Consent Payment Deadline will be entitled to a consent payment, which is included in the total consideration above, of US$30 for each US$1,000 principal amount of Notes tendered by such holder if such Notes are accepted for purchase pursuant to the tender offer. Holders who tender Notes are required to consent to the proposed amendments to the indenture and the Notes. Holders who tender Notes after the Consent Payment Deadline will not receive the consent payment. The company's obligation to accept for purchase, and to pay for, Notes validly tendered and not validly withdrawn pursuant to the tender offers and the consent solicitations is subject to the satisfaction or waiver of certain conditions, including, among others, the consummation of the mergers contemplated by the Agreement and Plan of Merger among the Company, Universal Compression Holdings, Inc., Exterran Holdings, Inc. and Exterran's subsidiaries, dated Feb. 5, 2007, as amended, the receipt of sufficient funds to consummate the tender offers and the receipt of sufficient consents with respect to the proposed amendments to the indentures and execution of the supplemental indentures for the Notes. Each tender offer and consent solicitation is independent of the others, and the complete terms and conditions of the tender offers and the consent solicitations are set forth in the tender offer documents, which are being sent to holders of Notes. Holders of Notes are urged to read the tender offer documents carefully. The tender offers are part of the refinancing plan of the Company and Universal being implemented in anticipation of the closing of their pending merger, which is currently expected to occur on or about Aug. 20, 2007, if the conditions to the closing set forth in the Agreement and Plan of Merger have been satisfied as of that date. As part of the refinancing plan, Exterran Holdings, Inc., which will be the publicly traded holding company following the completion of the merger, has engaged Wachovia Capital Markets, LLC and J. P. Morgan Securities Inc. to arrange and syndicate a senior secured credit facility, consisting of a revolving credit facility and a term loan, and has engaged Wachovia to provide a new asset-backed securitization facility to Exterran. The primary purpose of these new facilities will be to fund the redemption or repurchase of all of the company's and Universal's outstanding debt other than the company's convertible debt securities and the credit facility of Universal's publicly traded subsidiary, Universal Compression Partners, L.P. The new facilities will replace the Company's and Universal's existing bank lines and Universal's existing asset-backed securitization facility. The closing of the new facilities is subject to, among other things, the receipt of sufficient commitments from participating lenders and the execution of mutually satisfactory documentation. Wachovia Securities has been retained to act as exclusive dealer manager in connection with the tender offers and consent solicitations. Questions about the tender offers and consent solicitations may be directed to Wachovia Securities at (866) 309-6316 (toll free) or (704) 715-8341 (collect). Copies of the tender offer documents and other related documents may be obtained from D.F. King & Co., Inc., the information agent for the tender offers and consent solicitations, at (800) 859-8508 (toll free) or (212) 269-5550 (collect). About Hanover Compressor Company Headquartered in Houston, Texas, Hanover Compressor Company (NYSE:HC) -- http://www.hanover-co.com/-- is in full service natural gas compression and provider of service, fabrication and equipment for oil and natural gas production, processing and transportation applications. Hanover sells and rents this equipment and provides complete operation and maintenance services, including run-time guarantees for both customer-owned equipment and its fleet of rental equipment. Founded in 1990 and a public company since 1997, Hanover's customers include both major and independent oil and gas producers and distributors as well as national oil and gas companies. It has locations in Argentina, Bolivia, Brazil, Colombia, Mexico, Peru, Venezuela, India, China, Indonesia, Japan, Korea, Taiwan, the United Kingdom, and Vietnam, among others. * * * As reported in the Troubled Company Reporter on Feb. 8, 2007, Standard & Poor's Ratings Services placed the 'BB-' corporate credit ratings on oilfield service company Hanover Compressor Co. and its related entity Hanover Compression L.P. on CreditWatch with positive implications. ===================== P U E R T O R I C O ===================== DORAL FINANCIAL: Fitch Junks Long-Term Issuer Default Rating ------------------------------------------------------------ Fitch Ratings has removed all of Doral Financial Corporation's ratings from Rating Watch Negative and DRL's Rating Outlook is Positive. Fitch currently rates DRL's long-term Issuer Default Rating 'CCC'. The Support Rating Floor for DRL and its principal subsidiary remains unchanged at No Floor. DRL's Positive Rating Outlook is driven by the closing of the equity sale and the payment of a significant impending debt maturity. On July 19, DRL announced that it had received all regulatory approvals and closed the equity sale of a 90% stake to Bear Stearns Merchant Banking for US$610 million. In addition, DRL announced that they have paid the impending US$625 million debt maturity. The equity transaction has removed the immediate liquidity pressure and potential imminent default. However, immediate and long-term concerns still exist, which include demonstrated success of the business model, an ability to return to profitability, rising non-performing assets that could cause credit costs to rise, the currently weakened state of Puerto Rico's economy, and DRL's reduced market position in Puerto Rico. Fitch views that with the recapitalization of the firm complete, DRL can now focus entirely on improving the financial profile of the company. Resolution of the Rating Watch Positive will be driven by improved operating metrics and satisfactory review of liquidity and capitalization plans. These ratings have a Positive Rating Outlook: Doral Financial Corporation -- Long-term Issuer Default Rating 'CCC'; -- Senior debt to 'CCC/RR4''; -- Preferred stock to 'C/RR6'; -- Short-term Issuer Default Rating 'C'; -- Support '5'; -- Support Floor 'NF'; -- Individual 'E'. Doral Bank -- Long-term Issuer Default Rating (IDR) 'B'; -- Long-term deposits B+; -- Support '5'; -- Support Floor 'NF'; -- Individual 'D'; -- Short-term Issuer 'B'; 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. DORAL FINANCIAL: Pays US$625 Million Senior Notes in Full --------------------------------------------------------- Doral Financial Corporation said in a press release that it has timely paid in full the US$625 million senior notes that matured July 20. Business News Americas relates that Doral Financial completed on July 20 the sale of a 90% stake to a consortium headed by Bear Stearns Merchant Banking that led to a US$610-million recapitalization, which allowed the firm to honor its debt. 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-Latin America on July 23, 2007, Moody's Investors Service confirmed the B2 senior debt rating of Doral Financial Corporation. The rating had been on review for possible downgrade since Jan. 5, 2007. Following the rating confirmation, the rating outlook was changed to stable. * * * 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. ================= V E N E Z U E L A ================= CMS ENERGY: Board Declares Dividends on Common & Preferred Stock ---------------------------------------------------------------- CMS Energy's Board of Directors has declared quarterly dividends on the company's common stock and its preferred stock. The dividend for the common stock (CUSIP: 125896100) is US$0.05 per share payable Aug. 31, 2007, to shareholders of record on Aug. 10, 2007. The dividend for the company's 4.50 percent cumulative convertible preferred stock, Series B (CUSIP: 125896878) is US$0.5625 per share payable Sept. 3, 2007, to shareholders of record on Aug. 15, 2007. Based in Jackson, Michigan, CMS Energy Corporation is an electric and natural gas utility, natural gas pipeline systems, and independent power generation operator. The company has offices in Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on June 22, 2007, Fitch assigned a rating of 'BB-' to these new issues from CMS Energy Corp.: -- US$250 million 6.55% senior notes, due July 17, 2017; -- US$150 million floating-rate senior notes, due Jan. 15, 2013. Proceeds from the sale will be used to retire outstanding debt and for general corporate purposes. Fitch said the Rating outlook was positive. DAIMLERCHRYSLER: Banks Seek Higher Interest for Chrysler Funding ---------------------------------------------------------------- Wall Street banks that are arranging financing for Cerberus Capital Management LP's acquisition of DaimlerChrysler AG units Chrysler Corporation LLC and Chrysler Financial Services LLC are seeking more perks on the loans' terms, as uncertainty in the debt market lingers, the Wall Street Journal reports, citing Standard & Poor's Leveraged Commentary & Data as its source. According to the report, bankers marketed a US$10 billion loan for Chrysler's auto business at 3.75 percentage points above the London Interbank Offered Rate, compared to the 3.25 percentage points discussed when the road show kicked off about three weeks ago. Meanwhile, another US$2 billion in financing for the auto company is now being marketed at seven percentage points above the London interbank offered rate, compared to the original six percentage points. The banks are also offering to sell those loans at less than 100 cents on the dollar in a bid to further entice investors to the deal, WSJ reveals, quoting the S&P report. Pricing for US$8 billion in loans for Chrysler Financial is also expected to change, Standard & Poor's said, WSJ notes. Of that US$8 billion, a US$6 billion loan is now being marketed at three percentage points above the London interbank offered rate, compared to the 2.75 percentage points of the original terms. Another US$2 billion in financing could see terms raised by as much as 5.5 percentage points above the London interbank offered rate, compared to the original five percentage points. The TCR-Europe reported on July 20, 2007, that investors are wary of Chrysler's US$22 billion loans as they continue to monitor similar indicators of the industry's health in the wake of fallout from problems in the market for U.S. subprime mortgage-related debt and a repricing of risk by investors. J.P. Morgan Chase & Co., Bear Stearns Cos., Goldman Sachs Group Inc., Citigroup Inc. and Morgan Stanley launched a road show last month to raise money to finance Cerberus Capital's acquisition of Chrysler. The deal requires Cerberus to raise about US$62 billion in debt. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DAIMLERCHRYSLER: New Bill Forces Chrysler to Drop Imperial Plans ---------------------------------------------------------------- Chrysler Group has abandoned plans to manufacture a luxury sedan that would have represented a bigger, heavier and less-fuel- efficient version of its Chrysler 300C model, published reports say. According to the reports, Chrysler blames its decision on high gasoline prices and tougher fuel regulations currently on the table in Washington that could push U.S. automakers to increase vehicle fuel mileage. Chrysler is the first carmaker to revise production plans in response to the push in Congress that requires vehicles sold in the U.S. to consume less gasoline, the New York Times reveals. The Senate passed a bill last month calling for automakers to raise their average fuel mileage to at least 35 miles a gallon by 2020; a proposal in the House would hold manufacturers to the same standard by 2018. The company had previously informed Canadian Auto Workers that the Imperial was slated to go into production at Chrysler's Brampton, Ontario, plant in 2009 for release in 2010. However, union officials in Canada were briefed earlier this month on the company's decision to scrap the plan, Reuters relates, citing Chrysler spokesman Dave Elshoff as its source. The Imperial would have been built on a rear-wheel-drive platform shared with Daimler's Mercedes. It would also have added a gas-guzzling sedan to Chrysler's line-up at a time when it is looking to respond to consumer demands for improved fuel efficiency and facing tougher U.S. government regulations, Reuters observes. "We decided in an era of US$3 gas and more regulations headed this way that it didn't amount to a good business case -- a profitable business case," the Times report quotes Chrysler spokesman Ed Saenz as saying. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. PETROLEOS DE VENEZUELA: Investing US$3.5B To Buy Drilling Rigs -------------------------------------------------------------- Venezuelan state-run oil firm Petroleos de Venezuela SA said in a statement that it will invest about US$3.5 billion to acquire new drilling rigs. Business News Americas relates that Petroleos de Venezuela endured labor unrest at rigs during the nationalization of several rigs in western parts of Venezuela and continued problems in obtaining new rigs. Petroleos de Venezuela said in a statement that it spends an average of VEB25.4 million per rig a day to fund rigs operated by third parties. It spends VEB17.6 million to run each of its own rigs. There are about 112 rigs in Venezuela, 33 of which belong directly to the firm. This year's rig goal had been decreased to 120 from the original goal of 190, published reports say, citing Petroleos de Venezuela head and energy minister Rafael Ramirez. The country has faced difficulties in finding rig constructors to participate in Venezuelan bids. According to the press, Petroleos de Venezuela turned away from traditional rig contractors due to: -- a law requiring contract winners to donate 10% of the contract value to social causes, -- increased international demand, -- corruption scandals, and -- ongoing threat of nationalization. Petroleos de Venezuela said in a statement that it reached an accord with China for the acquisition of new rigs. About 13 rigs will first be imported from China. Future Chinese rigs will be assembled in Venezuela. Almost 140 Petroleos de Venezuela engineers are in China developing a plan to construct rigs completely in Venezuela. Petroleos de Venezuela told BNamericas that it would need to have about 202 rigs to reach its 2012 Plan Siembra Petrolera goal of producing 5.8 million barrels per day. A total US$34.9 billion will be invested in Venezuela to reach the goal. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. * VENEZUELA: Cancels Nicaragua's US$33.2-Million Debt ----------------------------------------------------- Venezuela has cancelled Nicaragua's US$33.2 million debt under the framework of a debt relief initiative, Xinhua News reports, citing the Nicaraguan Foreign Ministry. The Nicaraguan ministry said in a news release that because Venezuela decided to reduce Nicaragua's debt under the framework of the Heavily Indebted Poor Countries debt relief initiative, Nicaragua's public debt was reduced to US$3.3 billion. The Ministry said in the release, "Venezuela's decision on debt cancel strongly supports our country and will make Nicaragua's public debt sustainable and improve the investment climate, making the country more attractive to local and foreign investment." Xinhua News relates that Venezuela's President Hugo Chavez visited Nicaragua late last week and "handed" US$5.3-million credits to small companies. The Venezuelan leader also launched with his Nicaraguan counterpart Daniel Ortega a fossil-fuel plant in Nicaragua. Venezuela would construct US$1.5-billion petrochemical, electricity and natural gas plants in Nicaragua, Xinhua News states, citing President Chavez. * * * As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings affirmed Venezuela's long-term foreign and local currency Issuer Default Ratings at 'BB-'. At the same time, the agency also affirmed the short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'. Fitch said the ratings' outlook remained stable. * BOND PRICING: For the Week July 16 to July 20, 2007 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- Arg Boden 2.000 9/30/08 ARS 42.63 Argent-Par 0.630 12/31/38 ARS 51.07 CAYMAN ISLANDS -------------- Vontobel Cayman 10.300 10/25/07 CHF 61.75 Vontobel Cayman 13.150 10/25/07 EUR 57.05 Vontobel Cayman 10.400 12/28/07 CHF 64.75 Vontobel Cayman 10.700 12/28/07 CFH 56.00 Vontobel Cayman 11.400 12/28/07 CFH 52.00 Vontobel Cayman 11.650 12/28/07 CHF 66.95 Vontobel Cayman 11.850 12/28/07 CHF 64.35 Vontobel Cayman 13.050 12/28/07 EUR 73.10 Vontobel Cayman 13.350 12/28/07 EUR 59.95 Vontobel Cayman 13.450 12/28/07 CHF 66.95 Vontobel Cayman 14.900 12/28/07 CHF 51.60 Vontobel Cayman 16.000 12/28/07 EUR 41.65 Vontobel Cayman 16.800 12/28/07 CHF 50.00 Vontobel Cayman 17.700 12/28/07 EUR 70.50 Vontobel Cayman 22.850 12/28/07 CHF 35.95 Vontobel Cayman 9.200 2/4/08 CHF 65.65 Vontobel Cayman 13.500 2/22/08 CHF 71.30 PUERTO RICO ----------- Puerto Rico Cons 5.900 4/15/34 US 75.00 VENEZUELA --------- Petroleos de Ven 5.375 4/12/27 US 68.42 Petroleos de Ven 5.500 4/12/37 US 66.45 *********** 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 photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *