/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070914.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, September 14, 2007, Vol. 8, Issue 183 Headlines A R G E N T I N A AGROSERVICIOS LOS CERRILLOS: Claims Verification Ends Today ALITALIA SPA: Chairman Says Stake Sale To Close by December 2007 ANTU APLICACIONES: Claims Verification Deadline Is Today ARVINMERITOR INC: Appoints Joe Plomin as VP for CVS Truck Unit CENTRO TAXI: Trustee Filing Individual Reports on Oct. 1 COMPANIA EXPORTADORA: Claims Verification Deadline Is Nov. 28 FIAT SPA: Creates Joint Venture with Severstal's Car Division GNC SA: Proofs of Claim Verification Deadline Is Nov. 7 OBRA SOCIAL: Concludes Reorganization Proceeding OFFICE PLUS: Proofs of Claim Verification Deadline Is Oct. 18 REDSAL SA: Proofs of Claim Verification Is Until Nov. 7 SOFT DRINKS: Proofs of Claim Verification Is Until Nov. 9 ULTIMATE SYSTEM: Proofs of Claim Verification Ends on Nov. 6 VIUDA DE C: Trustee Filing General Report in Court Today W.R. GRACE: Andrew Bonham to Lead Construction Products Biz Unit B A H A M A S HARRAH'S ENTERTAINMENT: Subsidiary Acquires Macau Orient Golf JETBLUE AIRWAYS: Brings In Russ Chew as President ZANZOTTERA Y BLANCO: Proofs of Claim Verification Ends Today B E R M U D A BERMUDA COMMERCIAL: Moody's Extends Review on Ratings NORTH AMERICAN: Holding Final General Meeting Today B O L I V I A * BOLIVIA: Launches Transredes Stake Sale with Ashmore Energy B R A Z I L ALLIANCE ONE: Starts Exchange Offer for Senior Notes Due 2012 ASPEN TECHNOLOGY: Reports Selected Preliminary Financial Results FIDELITY NATIONAL: Closes EFD Stock Acquisition for US$1.8 Mil. IWT TESORO: Wants to Employ Rattet Pasternak as Counsel IWT TESORO: Taps Donlin Recano as Claims & Noticing Agent IWT TESORO: Wants Until October 21 to File Schedules & Statement LAZARD LTD: Opens Zurich Office; Rolf Bachmann to Lead Swiss Biz RHODIA SA: To Delist Shares in New York Stock Exchange TRW AUTOMOTIVE: Brings Integrated Safety to Vehicle Markets VERINT SYSTEMS: Victor DeMarines Joins Board of Directors * BRAZIL: Reports 5.4% Economic Growth for Second Quarter * BRAZIL: Regulator Rejects Petrobras' Appeal on BRL1.3-Bln Fine * BRAZIL: Ecuador Deciding on Oilfield Conflict with Nation C A Y M A N I S L A N D S ALPHAGEN ABSOLUS: Final Shareholders Meeting Is on Monday AMB BLACKPINE: Holding Final Shareholders Meeting on Monday AVENIR ASIAN: Final Shareholders Meeting Set for Today BANK OF INDIA: To Raise INR1 Billion from Perpetual Bond Sale RHICON 4XIM: Holding Final Shareholders Meeting on Monday WESTROCK LTD: Final Shareholders Meeting Is on Monday C H I L E EASTMAN KODAK: S&P Affirms B+ Corporate Credit Rating C O L O M B I A POLYONE: Posts US$5.4 Mil. Net Loss in 2nd Quarter to June 30 C O S T A R I C A ANIXTER INT'L: Promotes Two Officers to Executive Positions US AIRWAYS: To Hire 350 New Pilots; Move 140 Others to Mainline D O M I N I C A N R E P U B L I C ASHMORE ENERGY: Launches Transredes Stake Sale with Bolivia GENERAL CABLE: Inks US$735-Mln Purchase Deal w/ Freeport-McMoran E C U A D O R FREEPORT-MCMORAN: Selling Wire & Cable Biz for US$735 Million PETROECUADOR: Resumes Biding Process for Marginal Oilfields * ECUADOR: Deciding on Oilfield Ownership Dispute with Brazil * ECUADOR: Will Launch Oil Contract Renegotiation G U A T E M A L A AFFILIATED COMPUTER: Extends Contract with Hawaii Medicaid M E X I C O ALASKA AIRLINES: To Acquire Hawaiian Vacations' Assets BALLY TOTAL: AGT Crunch, et al. Balk at Modified Plan BALLY TOTAL: Files Supplement to Modified First Amended Plan BALLY TOTAL: Asks Court to Deny Prepayment of Premium Claims BLOCKBUSTER INC: Names Tom Casey as VP & Chief Financial Officer INT'L RECTIFIER: S&P Holds BB Corporate Rating on CreditWatch N I C A R A G U A XEROX CORPORATION: To Acquire Advectis for US$32 Million P A N A M A CHIQUITA BRANDS: Eyes Higher Operating Expenses in Third Quarter P U E R T O R I C O ALLIED WASTE: Inks Exclusive Contract with PSSI Stadium FOOT LOCKER: S&P Holds BB+ Corporate Rating on CreditWatch T R I N I D A D & T O B A G O HILTON HOTELS: Launches Cash Tender Offers for US$1.8-Bil. Debt V E N E Z U E L A CMS ENERGY: Earns US$33 Million in Second Quarter Ended June 30 HARVEST NATURAL: Signs Conversion Deal w/ Corporacion Venezolana NORTHWEST AIRLINES: Court Rejects US$4.2MM Bonuses for Attorneys PETROLEOS DE VENEZUELA: Former Officials Criticize Firm PETROLEOS DE VENEZUELA: Exxon Files for Arbitration with ICSID PETROLEOS DE VENEZUELA: Nat'l Assembly OKs Joint Venture Pacts SUN MICROSYSTEMS: To Buy Cluster File's IP & Business Assets - - - - - ================= A R G E N T I N A ================= AGROSERVICIOS LOS CERRILLOS: Claims Verification Ends Today ----------------------------------------------------------- Juan Carlos Bonfigli, the court-appointed trustee for Agroservicios Los Cerrillos S.A.'s reorganization proceeding, verifies creditors' proofs of claim on Sept. 14, 2007. Mr. Bonfigli will present the validated claims in court as individual reports on Oct. 30, 2007. The National Commercial Court of First Instance in Casilda, Santa Fe, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Agroservicios Los Cerrillos 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 Agroservicios Los Cerrillos' accounting and banking records will be submitted in court on Dec. 14, 2007. The informative assembly will be held on June 27, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The debtor can be reached at: Agroservicios Los Cerrillos S.A. 1 de Mayo 1299, Arequito Santa Fe, Argentina The trustee can be reached at: Juan Carlos Bonfigli Buenos Aires 2048, Casilda Santa Fe, Argentina ALITALIA SPA: Chairman Says Stake Sale To Close by December 2007 ---------------------------------------------------------------- Maurizio Prato, chairman of Alitalia S.p.A., expects to complete the sale of the Italian government's stake in the troubled carrier by December 2007, various reports say. Mr. Prato told Il Sole 24 Ore that advisor Citigroup has initiated contacts with parties that had participated in the failed auction for Italy's stake in Alitalia and with Asian firms. The chairman expects the first rounds of meeting to be complete by end of September or early October, Il Sole relates. Mr. Prato said he will conduct a first selection among potential buyers by the end of October before starting an evaluation phase. Jean Cyril Spinetta, Air France-KLM chief executive, has said he would "listen attentively" if approached by Alitalia, adding the Italian carrier's new restructuring plan was "suitable," Agence- France Presse relates. Alitalia's 2008-2010 business plans includes possible capital increase, job cuts and downscaling operations Milan's Malpensa airport. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. ANTU APLICACIONES: Claims Verification Deadline Is Today -------------------------------------------------------- Hugo Oscar D. Ubaldo, the court-appointed trustee for Antu Aplicaciones Industriales Integradas S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim on Sept. 14, 2007. Mr. Ubaldo will present the validated claims in court as individual reports on Oct. 26, 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 Antu Aplicaciones 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 Antu Aplicaciones' accounting and banking records will be submitted in court on Dec. 7, 2007. Mr. Ubaldo is also in charge of administering Antu Aplicaciones' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Hugo Oscar D. Ubaldo Tucuman 1577 Buenos Aires, Argentina ARVINMERITOR INC: Appoints Joe Plomin as VP for CVS Truck Unit -------------------------------------------------------------- ArvinMeritor, Inc. has named Joe Plomin as vice president of the Truck business unit within Commercial Vehicle Systems (CVS), effective immediately. The newly formed truck unit is now one of four CVS business units -- the others are Aftermarket, Specialty, and Trailers. In his new role, Mr. Plomin will be responsible for the overall development of product marketing and strategic planning, program management, sales and service, pricing, delivery, and customer relations for the Truck unit - which encompasses axle, brake and driveline sales to global truck manufacturers. "With his significant background in marketing, sales and strategic planning, Joe will accelerate the various activities we have initiated to improve all aspects of our performance," said Carsten Reinhardt, president, CVS. "We are delighted that Joe has decided to join our team." Before joining ArvinMeritor, Mr. Plomin most recently served as senior vice president, Sales, Marketing and Product Line Management for Remy International in Anderson, Ind. He has more than 20 years of experience in heavy duty and automotive component development, marketing and sales. Mr. Joe Plomin holds a bachelor's of arts degree in Economics from Knox College in Galesburg, Illinois, United States. About ArvinMeritor Inc. Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- is a premier US$8.8 billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. ArvinMeritor employs approximately 29,000 people at more than 120 manufacturing facilities in 25 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. ArvinMeritor common stock is traded on the New York Stock Exchange under the ticker symbol ARM. * * * Moody's Investor Services rated B3 ArvinMeritor Inc.'s long term corporate family and probability of default on January 2007. Moody's said the outlook is stable. CENTRO TAXI: Trustee Filing Individual Reports on Oct. 1 -------------------------------------------------------- The court-appointed trustee for Centro Taxi S.R.L.'s reorganization proceeding, will file the validated proofs of claim as individual reports in the National Commercial Court of First Instance in San Miguel de Tucuman, Tucuman, on Oct. 1, 2007. The court will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Centro Taxi 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 Centro Taxi's accounting and banking records will be submitted in court on Jan. 14, 2008. COMPANIA EXPORTADORA: Claims Verification Deadline Is Nov. 28 ------------------------------------------------------------- Roberto Hosselet, the court-appointed trustee for Compania Exportadora Argentina SA's reorganization proceeding, verifies creditors' proofs of claim until Nov. 28, 2007. Mr. Hosselet will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 4, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Compania Exportadora 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 Exportadora's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. The informative assembly will be held on Sept. 16, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The debtor can be reached at: Compania Exportadora Argentina SA Avenida Alicia Moreau de Justo 740 Buenos Aires, Argentina The trustee can be reached at: Roberto Hosselet Avenida Luis Maria Campos 1160 Buenos Aires, Argentina FIAT SPA: Creates Joint Venture with Severstal's Car Division ------------------------------------------------------------- Fiat Group Automobiles and Severstal Auto, a unit of OAO Severstal, signed a letter of intent to establish a commercial and industrial venture in Russia on Sept. 11, 2007. Fiat and Severstal will have a 50% interest in the joint venture. The agreement aims the establishment of a business that will include sales and marketing of all Fiat branded vehicles in the Russian Federation, together with manufacturing facility, wherein the new Fiat Linea will begin production in the first quarter of 2008. All vehicles produced in Russia will conform to Fiat Group quality standards. Fiat Group Automobiles will also lead the definition of the product range. The Russian production site will form part of FGA's global manufacturing footprint and the joint venture will be a part of Fiat Group Automobiles marketing and product strategy. While the details of joint venture are being finalized, the signing of the Letter of Intent for Russian operations reflects a growing commitment of the two organizations to work together and leverage their respective strengths. "This agreement gives both Fiat and Severstal Auto the opportunity to strengthen their presence in the Russian market while allowing the joint venture to benefit from Fiat's marketing strategies and production standards. Severstal Auto's knowledge of the Russian market will integrate and reinforce Fiat's investment and commitment to this region," Sergio Marchionne, Fiat Group's CEO disclosed. "It's a significant step in strategic cooperation between Fiat and Severstal Auto, which shows our strong commitment to exploit the potential of the growing Russian market and to develop both production and distribution of Fiat vehicles in Russia," Vadim Shvetsov, Severstal Auto's CEO commented. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. About Fiat SpA Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported on Aug. 24, 2007, Moody's Investors Service upgraded to Ba1 from Ba2 Fiat SpA's Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook on all long-term ratings was maintained. The short term Not Prime rating remains unchanged. Standard & Poor's give Long-Term Foreign and Local Issuer Credit Ratings of BB+ for Fiat. Its Short-term Foreign and Local Issuer Credit Ratings are at B with Positive Outlook. Dominion Bond Rating Service gives Fiat a Long-term Issuer Rating of BB with Positive Outlook. GNC SA: Proofs of Claim Verification Deadline Is Nov. 7 ------------------------------------------------------- Rodolfo Fernando Daniel Torella, the court-appointed trustee for Redsal SA's reorganization proceeding, verifies creditors' proofs of claim until Nov. 7, 2007. Mr. Torella will present the validated claims in court as individual reports on Feb. 8, 2008. 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 Redsal 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 Redsal's accounting and banking records will be submitted in court on March 26, 2008. The informative assembly will be held on June 23, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The trustee can be reached at: Rodolfo Fernando Daniel Torella Arcos 3726 Buenos Aires, Argentina OBRA SOCIAL: Concludes Reorganization Proceeding ------------------------------------------------ Obra Social Para La Actividad Docente's reorganization proceeding has ended. Data published by Infobae on its Web site indicated that the process was concluded after a court in Buenos Aires approved the debt agreement signed between the company and its creditors. OFFICE PLUS: Proofs of Claim Verification Deadline Is Oct. 18 ------------------------------------------------------------- Jorge Blazquez, the court-appointed trustee for Office Plus SA's bankruptcy proceeding, verifies creditors' proofs of claim until Oct. 18, 2007. Mr. Blazquez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 9 in Buenos Aires, with the assistance of Clerk No. 18, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Office Plus 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 Office Plus' accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Blazquez is also in charge of administering Office Plus' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Office Plus SA Avenida Leandro N. Alem 896 Buenos Aires, Argentina The trustee can be reached at: Jorge Blazquez Fray Justo Santa Maria de Oro 2381 Buenos Aires, Argentina REDSAL SA: Proofs of Claim Verification Is Until Nov. 7 ------------------------------------------------------- Susana Vacchelli, the court-appointed trustee for Redsal SA's bankruptcy proceeding, verifies creditors' proofs of claim until Nov. 7, 2007. Ms. Vacchelli will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 24 in Buenos Aires, with the assistance of Clerk No. 48, 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 Redsal 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 Redsal's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Vacchelli is also in charge of administering Redsal's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Redsal SA Callao 661 Buenos Aires, Argentina The trustee can be reached at: Susana Vacchelli Montevideo 571 Buenos Aires, Argentina SOFT DRINKS: Proofs of Claim Verification Is Until Nov. 9 --------------------------------------------------------- Adriana del Carmen Gallo, the court-appointed trustee for Soft Drinks S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Nov. 9, 2007. Ms. Gallo will present the validated claims in court as individual reports on Dec. 21, 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 Soft Drinks 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 Soft Drinks' accounting and banking records will be submitted in court on March 5, 2008. Ms. Gallo is also in charge of administering Soft Drinks' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Adriana del Carmen Gallo Roque Saenz Pena 651 Buenos Aires, Argentina ULTIMATE SYSTEM: Proofs of Claim Verification Ends on Nov. 6 ------------------------------------------------------------ Raul Horacio Trejo, the court-appointed trustee for Ultimate System S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Nov. 6, 2007. Mr. Trejo will present the validated claims in court as individual reports on Feb. 11, 2008. 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 Ultimate System 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 Ultimate System's accounting and banking records will be submitted in court on March 10, 2008. Mr. Trejo is also in charge of administering Ultimate System's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Ultimate System S.A. Varela 1136 Buenos Aires, Argentina The trustee can be reached at: Raul Horacio Trejo Avenida Corrientes 818 Buenos Aires, Argentina VIUDA DE C: Trustee Filing General Report in Court Today -------------------------------------------------------- Enrique Jose Luna, the court-appointed trustee for Viuda de C. Barbiero e Hijos S.A.'s reorganization proceeding, will file in the National Commercial Court of First Instance in Rosario del Tala, Entre Rios, a general report that contains an audit of the company's accounting and banking records on Sept. 14, 2007. Mr. Luna verified creditors' proofs of claim until June 5, 2007. Mr. Luna also presented the validated claims in court as individual reports on July 13, 2007. The informative assembly will be held on Oct. 26, 2007. Creditors will vote to ratify the completed settlement plan during the assembly. The debtor can be reached at: Viuda de C. Barbiero e Hijos S.A. Misael J. Parodi 194, Rosario del Tala Entre Rios, Argentina The trustee can be reached at: Enrique Jose Luna Urquiza 341, Rosario del Tala Entre Rios, Argentina W.R. GRACE: Andrew Bonham to Lead Construction Products Biz Unit ---------------------------------------------------------------- W.R. Grace & Co. has elected Andrew Bonham as its Vice President and named President of its Construction Products business unit. Mr. Bonham joined Grace in 2005 as vice president and general manager of Grace Construction Products European operations, headquartered in Brussels, Belgium. Prior to joining Grace, Mr. Bonham was president of Invensys Controls-America. He also held positions of increasing responsibility at General Electric and Honeywell before joining Invensys Controls. He graduated from Virginia Polytechnic Institute with a degree in Mechanical Engineering and earned an MBA at Averett University. "Andrew has done a terrific job at Grace leading its construction business in Europe, the Middle East and India," said Fred Festa, Grace President & CEO. "He is a proven leader, highly energetic and possesses a strong commitment to his customers. I am confident that he will continue to grow our construction business around the world and reinforce our reputation as the leading innovator in specialty construction products." Grace Construction Products is an approximately US$1 billion global business with facilities, sales and technical services support in more than 25 countries. Its principal products include specialty admixtures for the cement and concrete industry, and waterproofing, residential building materials, and fire protection products for the construction industry. It is headquartered in Cambridge, Massachusetts. About W.R. Grace Headquartered in Columbia, Md., W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally, including Argentina, Australia and Ireland. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). James H.M. Sprayregen, Esq., at Kirkland & Ellis, and Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan LLP represents the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Anderson Kill & Olick, P.C., represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Martin W. Dies, III, Esq., at Dies & Hile L.L.P., and C. Alan Runyan, Esq., at Speights & Runyan,to represent it. Lexecon, LLP, provided asbestos claims consulting services to the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. ============= B A H A M A S ============= HARRAH'S ENTERTAINMENT: Subsidiary Acquires Macau Orient Golf ------------------------------------------------------------- Harrah's Entertainment Inc.'s subsidiary, Harrah's Operating Company, Inc., has acquired Macau Orient Golf. Located on Cotai and directly adjacent to the Lotus Bridge, one of the two border crossings into Macau from China, Macau Orient Golf is the seventh course in the Harrah's collection of award-winning golf courses. "This investment reaffirms our commitment to Asia and to the Macau market," said Gary Loveman, chairman, president and CEO of Harrah's Entertainment. "We are delighted to have a compelling amenity to offer our best customers in one of the most exciting and dynamic markets in the world." "Golf courses are a proven attraction for our customers," said Michael Chen, president of the Asia-Pacific Region for Harrah's Entertainment. "We are eager to improve the golf course to make it one of the most authentic links-style courses in the Pearl River Delta enhancing the quality of attractions available for visitors to Macau." Headquartered in Las Vegas, Nevada, Harrah's Entertainment, Inc. (NYSE: HET) -- http://www.harrahs.com/-- is a gaming corporation that owns and operates casinos, hotels, and five golf courses under several brands on four continents. The company's properties operate primarily under the Harrah's, Caesars and Horseshoe brand names; Harrah's also owns the London Clubs International family of casinos. In January, it signed a joint venture agreement with Baha Mar Resorts Ltd. to operate a resort in Bahamas. * * * As reported in the Troubled Company Reporter on Feb. 16, 2007, Fitch Ratings may downgrade Harrah's Entertainment Inc.'s Issuer Default Rating into the 'B' category from its current 'BB+' rating based on the planned capital structure for its leveraged buyout by Apollo Management and Texas Pacific Group, which was outlined in its preliminary proxy statement. JETBLUE AIRWAYS: Brings In Russ Chew as President ------------------------------------------------- JetBlue Airways has appointed Chief Operating Officer Russ Chew as President. Mr. Chew, with his additional responsibilities, will work directly with Chief Executive Officer Dave Barger to execute the Company's vision and strategic plan. "Since Russ joined our team, we have established the right foundation for continuous improvement," said Mr. Barger. "Russ will help lead our efforts to develop JetBlue's long-term business strategy that values our culture and takes full advantage of our financial opportunities." "I am honored to take on this additional responsibility," Mr. Chew said. "JetBlue has incredible talent and vision, and bringing that vision to life for our customers and crewmembers, especially in today's competitive and operational environment, will depend on our ability to set the right course for our future. JetBlue crewmembers have demonstrated their unique ability to tackle challenges, especially when given the right tools and resources, while staying true to our company's values. I am committed to serving our crewmembers so they may continue to serve our customers with signature JetBlue service." Mr. Chew joined JetBlue after four years with the Federal Aviation Administration as Chief Operating Officer, following a 17-year career with American Airlines in their Operations and Planning units. Based in Forest Hills, New York, JetBlue Airways Corp. (Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger air transportation services primarily in the United States. As of Feb. 14, 2006, the company operated approximately 369 daily flights serving 34 destinations in 15 states, Bermuda, Puerto Rico, the Dominican Republic, and the Bahamas. The Company also provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems and Internet services, through its wholly owned subsidiary, LiveTV, LLC. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 15, 2007, Fitch Ratings affirmed the debt ratings of JetBlue Airways Corp. as: -- Issuer Default Rating at 'B' -- Senior unsecured convertible notes at 'CCC' with a recovery rating of 'RR6' The senior unsecured rating applies to US$425 million of outstanding convertible notes. ZANZOTTERA Y BLANCO: Proofs of Claim Verification Ends Today ------------------------------------------------------------ Humberto Carlos Villarraza, the court-appointed trustee for Zanzottera y Blanco S.H.'s bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 14, 2007. Mr. Villarraza will present the validated claims in court as individual reports on Oct. 29, 2007. The National Commercial Court of First Instance in San Nicolas, 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 Zanzottera y Blanco 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 Zanzottera y Blanco's accounting and banking records will be submitted in court on Dec. 10, 2007. Mr. Villarraza is also in charge of administering Zanzottera y Blanco's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Zanzottera y Blanco S.H. J. Kennedy 150, Arrecifes Buenos Aires, Argentina The trustee can be reached at: Humberto Carlos Villarraza Garibaldi 78, San Nicolas Buenos Aires, Argentina ============= B E R M U D A ============= BERMUDA COMMERCIAL: Moody's Extends Review on Ratings ----------------------------------------------------- Moody's Investors Service has extended the review for possible downgrade of Bermuda Commercial Bank Limited's ratings. Bermuda Commercial's current ratings are D+ for financial strength and Baa3 and Prime-3, respectively, for long- and short-term deposits. Moody's said that despite the publication of Bermuda Commercial's fiscal 2006 financial statements and the improved profitability for that fiscal year, the decision to extend the review was taken because of continuing uncertainty over Bermuda Commercial's ownership and future business strategy, and whether the franchise had suffered permanent damage. Moody's had first placed the ratings on review for downgrade on Sept. 15, 2006, following the announcement that Bermuda Commercial's affiliate, First Curacao International Bank was under investigation for money laundering and other illegal activities. Moody's extended the review in January 2007. At that time Moody's noted that First Curacao had been intervened by the Central Bank of the Netherlands Antilles, but cited on- going uncertainties about the bank, including the fact that Bermuda Commercial had made it known that it was looking to be acquired as the reasons for extending the review. In August 2007, Bermuda Commercial published the delayed audited financial statements for the fiscal year ended September 2006. Moody's observed the doubling of Bermuda Commercial's net income to US$10.1 million due largely to rising interest rates, as well as the erosion in the bank's deposit base because of the uncertainties facing the institution. Deposits had fallen to US$400 million from US$803 million a year earlier, but the rating agency noted that the declining deposit trend has since been reversed, with deposits having climbed to US$519 million according to unaudited interim results as of March 2007. While the bank is small with assets of US$464 million and shareholders' equity of US$57 million at September 2006, its Tier 1 and Total Capital ratios were robust at 54.07% and 54.09%, respectively. Moody's also believes that the likelihood of negative factors emerging about Bermuda Commercial's management or its involvement in improper activities with First Curacao has diminished further with the passage of time. Moody's reiterated its view that any potential acquirer would have to be of sufficient financial strength and strong reputation to be acceptable to the Bermuda Monetary Authority and the Bermuda Ministry of Finance. The rating agency added that negative rating pressure could emerge if no acceptable acquirer was found and the long-term health of Bermuda Commercial's franchise was negatively affected by this outcome. On the other hand, the acquisition of Bermuda Commercial by a qualified institution could lead to an upgrade of Bermuda Commercial's ratings, the rating agency added. Negative pressure on the bank's ratings could also emerge according to Moody's if core profitability were to decline such that it weakened the bank's financial flexibility and capital growth, or if a more risky business strategy were to be adopted, whether or not Bermuda Commercial is acquired. The ratings that remain under review for possible downgrade are: Bermuda Commercial Bank Limited -- Financial Strength at D+ -- Short-term deposits at Prime-3 -- Long-term deposits at Baa3 -- Issuer at Baa3 Bermuda Commercial Bank Limited, headquartered in Hamilton, Bermuda reported assets of US$464 million in its latest audited financial statements for the fiscal year-ended Sept. 30, 2006. NORTH AMERICAN: Holding Final General Meeting Today --------------------------------------------------- North American Manufacturers Insurance Company Limited's final general meeting is scheduled on Sept. 14, 2007, at 10:30 a.m., at: Sofia House, 1st Floor 48 Church Street, Hamilton 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: Launches Transredes Stake Sale with Ashmore Energy ------------------------------------------------------------- A Bolivian hydrocarbons and energy ministry spokesperson told Business News Americas that the ministry has launched negotiations with Ashmore Energy International on the sale of the firm's stake in gas transporter Transredes. As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Bolivian hydrocarbons minister Carlos Villegas said that Ashmore Energy planned to continue negotiations with Bolivian President Evo Morales on the sale of its 14% stake in Transredes. BNamericas relates that Ashmore Energy and Anglo-Dutch oil major Shell each own a 25% share in Transredes. Bolivia's state hydrocarbons firm Yacimientos Petroliferos Fiscales Bolivianos and other shareholders control 34% and 16% respectively. According to BNamericas, the government wants to give Yacimientos Petroliferos a majority stake in Transredes as part of President Morales' nationalization decree. The spokesperson told BNamericas that Ashmore Energy officials arrived in La Paz to start the talks. The Bolivian government's planned acquisition of Transredes shares wouldn't affect Transredes' financial and operative obligations, BNamericas says, citing a regional ratings agency Pacific Credit Rating analyst. The rating agency hasn't changed its BAA rating on Transredes bond issues. BNamericas explains that the BAA rating indicates: -- Transredes' position as Bolivia's main hydrocarbons transporter, -- its low revenue volatility, -- favorable gas demand growth perspectives, and -- Bolivia's current gas reserves. About Ashmore Energy Ashmore Energy International Ltd. -- http://www.ashmoreenergy.com-- owns and operates a portfolio of energy infrastructure assets in power generation, transmission, and distribution of natural gas, gas liquids, and electric power. Ashmore Energy's portfolio, directly or indirectly, consists of 19 companies in 14 countries, most of which are located in Latin America. The company's largest asset is Brazilian electric distribution company, Elektro, which represents approximately 43% of EBITDA, and 55.3% of fiscal 2006 consolidated cash flow to parent company Ashmore Energy. The company also operates a power plant in the Dominican Republic. * * * 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 =========== ALLIANCE ONE: Starts Exchange Offer for Senior Notes Due 2012 ------------------------------------------------------------- Alliance One International, Inc. has commenced an exchange offer for all of its outstanding 8-1/2% Senior Notes due 2012. The company is offering to exchange up to US$150,000,000 aggregate principal amount of its 8-1/2% Senior Notes due 2012 which have been registered under the Securities Act of 1933, as amended, for a like principal amount of its original unregistered 8-1/2% Senior Notes due 2012. The terms of the exchange securities are identical in all material respects to the terms of the original securities for which they are being exchanged, except that the registration rights and the transfer restrictions, applicable to the original securities are not applicable to the exchange securities. Alliance One will accept for exchange any and all original securities validly tendered on or prior to 5:00 p.m., New York City time, on the date the exchange offer expires, which will be Oct. 1, 2007, unless the exchange offer is extended by the company. The exchange offer is made only pursuant to Alliance One's prospectus, dated Aug. 30, 2007, which will be filed with the Securities and Exchange Commission as part of Alliance One's Registration Statement on Form S-4. The Registration Statement was declared effective by the U.S. Securities and Exchange Commission on Aug. 29, 2007. Copies of the prospectus and transmittal materials governing the exchange offer may be obtained from the Exchange Agent, Deutsche Bank Trust Company Americas, at the following address: Deutsche Bank Trust Company Americas DB Services Tennessee, Inc. Reorganization Unit P.O. Box 305050 Nashville, Tennessee 37211 Phone (800) 735-7777 Fax: (615) 835-3701 e-mail: SPU-Reorg.Operations@db.com. Based in Morrisville, North Carolina, Alliance One International, Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a leaf tobacco merchant. The company has worldwide operations, including those in Indonesia, Argentina, Brazil, Bulgaria, Canada, China, France, India, Philippines, Malaysia, and Singapore. * * * As reported in the Troubled Company Reporter on Sept. 27, 2006, Moody's Investors Service's confirmed its B2 Corporate Family Rating for Alliance One International, Inc., and upgraded its B2 rating on the company's US$300 million senior secured revolver to B1. In addition, Moody's assigned an LGD3 rating to notes, suggesting noteholders will experience a 37% loss in the event of a default. ASPEN TECHNOLOGY: Reports Selected Preliminary Financial Results ---------------------------------------------------------------- Aspen Technology Inc. has disclosed preliminary financial results for its fiscal fourth quarter 2007 and fiscal year ended June 30, 2007. The company reported record license bookings during the fiscal fourth quarter 2007, with license bookings defined as the total net present value of all license contracts signed in the quarter. License bookings were US$67 million during the fiscal fourth quarter, an increase of approximately 49% compared to US$45 million in the fourth quarter of fiscal 2006. The company reported record fiscal 2007 license bookings of US$200 million, an increase of approximately 23% from US$162 million in fiscal 2006. The company ended the fourth quarter with US$132 million in cash, up US$31 million from US$101 million at the end of the prior quarter. The increase in cash was driven primarily by strong license bookings, which generated installments receivable that were sold for cash during the quarter, and continued focus on managing costs and expenses. In addition, the company received US$5 million of proceeds from exercises of stock options, while it used US$2 million of cash for capital expenditures during the fourth quarter. Mark Fusco, Chief Executive Officer of Aspen Technology, said "We were very pleased with the company's operating performance in the fourth quarter, which was highlighted by robust growth in license bookings that exceeded our expectations and the growth of the market. The fourth quarter capped off the most successful annual operating performance in the history of AspenTech, and our business was solid across each key metric during the fourth quarter - vertical, major geography, product, aspenONE and transactions of all sizes." Mr. Fusco added, "With solid market demand, a differentiated value proposition and industry leading domain expertise, we are optimistic about the company's fundamental outlook as we begin fiscal 2008." The company also announced that it is continuing work on the restatement of previously issued financial statements. The restatement needs to be completed before the company can issue final, complete results for its fiscal fourth quarter and year ended June 30, 2007. On June 11, 2007, the company has announced identified errors in its accounting for sales of installments receivable. The company has reviewed thousands of installments receivable transactions, dating back to fiscal 2003, as part of a process to determine period-end balances for two new balance sheet accounts, a collateral asset for secured borrowings and a secured borrowing liability. Based on the significant amount of work that has been completed over the course of the past three months, the company has updated its estimate of the balances of these two new related balance sheet items, as follows: -- approximately US$230 million as of June 30, 2005 -- approximately US$200 million as of June 30, 2006 -- approximately US$200 million as of June 30, 2007 Brad Miller, Chief Financial Officer of AspenTech, said "The company's finance team and outside financial advisors have been working diligently to complete the restatement and fiscal 2007 year-end financial statements. We are committed to addressing these matters as expeditiously and thoroughly as possible. While we are completing this effort, AspenTech remains focused on customer success and sales of our solutions into end markets that continue to show strong demand." About Aspen Technology Based in Cambridge, Massachusetts, Aspen Technology Inc. (Nasdaq: AZPN) -- http://www.aspentech.com/-- provides software and professional services that help process companies improve efficiency and profitability by enabling them to model, manage and control their operations. The company has locations in Brazil, Malaysia and France. * * * Aspen Technology carries Moody's B2 long-term corporate family rating and Caa1 equity linked rating. Moody's said the outlook is stable. The company carries Standard & Poor's B long-term foreign and local issuer credit ratings, with negative outlook. FIDELITY NATIONAL: Closes EFD Stock Acquisition for US$1.8 Mil. --------------------------------------------------------------- Fidelity National Information Services, Inc., has completed the acquisition of EFD/eFunds Corporation. Under the terms of the merger agreement, Fidelity National acquired all of the outstanding shares of EFD common stock for approximately US$1.8 billion in cash, or US$36.50 per share. William P. Foley, II, executive chairman of FIS, stated, "eFunds is an excellent fit for our company, and further strengthens our competitive positions in electronic processing and risk management services. Fidelity and EFD customers will benefit from a more comprehensive product offering and strong industry expertise." "eFunds' products and services complement our existing businesses, and provide FIS with greater scale, product capability and expanded geographic reach," added Lee A. Kennedy, president and chief executive officer for Fidelity National. "We look forward to working with the EFD team to deliver high quality and innovative solutions to our customers." Fidelity National expects to realize approximately US$65 million in annual cost savings. The transaction is expected to be neutral to 2007 cash earnings per diluted share and accretive to 2008 cash earnings per diluted share, including synergies. Within approximately one week, letters of transmittal and additional instructions regarding the process for exchanging shares for cash consideration of US$36.50 per share will be mailed to EFD shareholders of record as of today's closing date. Headquartered in Jacksonville, Florida, Fidelity National Information Services, Inc. -- http://www.fidelityinfoservices.com/-- provides core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage related information products; and outsourcing services to financial institutions, retailers, mortgage lenders and real estate professionals. FIS has processing and technology relationships with 35 of the top 50 global banks, including nine of the top ten. Nearly 50% of all US residential mortgages are processed using FIS software. FIS maintains a strong global presence, serving over 7,800 financial institutions in more than 60 countries worldwide, including Brazil. * * * As reported in the Troubled Company Reporter on June 29, 2007, Fitch Ratings has placed these Fidelity National Information Services' ratings on Rating Watch Negative including the company's issuer default rating 'BB+'; US$3 billion senior unsecured credit facilities 'BB+', consisting of a US$2.1 billion term loan and a US$900 million revolving credit facility; and senior unsecured notes 'BB+'. At the same time, Standard & Poor's Ratings Services placed its 'BB+' corporate credit and senior unsecured ratings for Fidelity National Information Services on CreditWatch with negative implications. Also, Moody's Investors Service placed the Ba1 corporate family rating for Fidelity National Information Services on review for possible downgrade following FIS's plan to acquire EFD/eFunds Corporation. IWT TESORO: Wants to Employ Rattet Pasternak as Counsel ------------------------------------------------------- I.W.T. Tesoro Corporation and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for permission to hire Rattet, Pasternak & Gordon-Oliver, L.L.P. as their counsel. Rattet Pasternak will: a. advice the Debtors with respect to their powers and duties as debtors-in-possession and the continued management of their property and affairs; b. negotiate with creditors of the Debtors and work out a plan of reorganization and take the necessary legal steps in order to effectuate a plan including negotiations with the creditors and other parties in interest; c. prepare the necessary answers, orders, reports and other legal papers required of a Debtor who seeks protection under Chapter 11; d. appear before the Court to protect the interest of the Debtors and to represent the Debtors in all matters pending before the Court; e. attend meetings and negotiate with representatives of creditors and other parties in interest; f. advise the Debtors in connection with any potential refinancing of secured debt and any potential sale of the business; g. represent the Debtors in connection with obtaining post- petition financing; h. take any necessary action to obtain approval of a disclosure statement and confirmation of a plan of reorganization; i. perform all other legal services for the Debtors which may be necessary for the preservation of the Debtors' estate and to promote the best interests of the Debtors, their creditors and its estate. The Debtors will pay Rattet Pasternak on an hourly basis according to these rates: Designation Hourly Rate ----------- ----------- Partners US$415 - US$550 Counsel US$140 Associates US$250 - US$385 Paraprofessionals US$120 To the best of the Debtors' knowledge, the firm is a disinterested person and does not hold or represent any interest adverse to the Debtors' estates. The firm can be reached at: Rattet, Pasternak & Gordon-Oliver, L.L.P. 550 Mamaroneck Avenue Harrison, NY 10528 Tel: (914) 381-7400 Fax: (914) 381-7406 I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, -- http://www.iwttesoro.com/-- is headquartered in New York City. The company and its subsidiaries are wholesale distributors of building materials, specifically hard floor and wall coverings. Their products consist of ceramic, porcelain and natural stone floor, wall and decorative tile. They import a majority of these products from suppliers and manufacturers in Europe, South America (Brazil), and the Near and Far East. Their markets include the United States and Canada. They also offer private label programs for branded retail sales customers, buying groups, large homebuilders and home center store chains. The Debtor and its debtor-affiliates, International Wholesale Tile, Inc. and American Gres, Inc., filed for Chapter 11 bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead Case No. 07-12841). As of June 30, 2007, the Debtors had total assets of US$39,798,579 and total debts of US$47,940,983. IWT TESORO: Taps Donlin Recano as Claims & Noticing Agent --------------------------------------------------------- I.W.T. Tesoro Corporation and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for permission to employ Donlin, Recano & Company, Inc. as their claims, notice, and balloting agent. The Debtors relate to the Court that they have over a thousand creditors and other potential parties-in-interest. The Debtors believe that the Clerk's Office is not equipped to distribute notices, process all of the proofs of claim filed, and assist in the balloting process for the Debtors' large case, thus the need to hire Donlin Recano. Specifically, Donlin Recano will: a. notify all potential creditors of the filing of the Debtors' bankruptcy petitions and of the setting of the first meeting of creditors, pursuant to Bankruptcy Code Section 341(a); b. maintain an official copy of the Debtors' schedules of assets and liabilities and statement of financial affairs listing the Debtors' known creditors and the amounts the Debtors owe; c. notify all potential creditors of the existence and amount of their respective claims, as evidenced by the Debtors' books and records and as set forth in their schedules; d. furnish a notice of the last day for the filing of proofs of claim and a form for the filing of a proof of claim, after the notice and the form are approved by the Court; e. file with the Clerk an affidavit or certificate of service which includes a copy of the notice, a list of persons to whom it was mailed (in alphabetical order), and the date the notice was mailed, within 10 days of service; f. docket all claims received, maintain the official cliams registers for each of the Debtors on behalf of the Clerk, and provide the Clerk with certified duplicate unofficial claims registers on a monthly basis, unless otherwise directed; g. specify, in the applicable claims register, these information for each claim docketed: i. the claim number assigned; ii. the date received; iii. the name and address of the claimant and agent, if applicable, who filed the claim; iv. the filed amount of the claim, if liquidated; and v. the classification of the claim according to the proof of claim; h. relocate, by messenger, all of the actual proofs of claim filed to Donlin Recano, not less than weekly; i. record all transfers of claims and provide any notices of the transfers required by Bankruptcy Rule 3001; j. make changes in the claims register pursuant to Court Order; k. upon completion of the docketing process for all claims received to date by the Clerk's Office, turn over to the Clerk copies of the claims registers for the Clerk's review; l. maintain the claims register for public examination without charge during regular business hours; m. maintain the official mailing list for each Debtor of all entities that have filed a proof of claim, which list will be available upon request by a party-in-interest or the Clerk; n. assist with, among other things, solicitation, calculation, and tabulation of votes and distribution, as required in furtherance of confirmation of the plan; o. provide and maintain a Web site where parties can view claims filed, status of claims, and pleadings or other documents filed with the Court by the Debtors; p. in 30 days prior to the close of the cases, an order dismissing Donlin Recano would be submitted terminating its services upon completion of its duties and responsibilities and upon the closing of the case; and q. at the close of the case, box and transport all original documents in proper format, as provided by the Clerk's office, to the Federal Records Center. In addition, the Debtors may utilize other services of Donlin Recano like disbursing and related administrative services upon request. Donlin Recano's schedule of services charges are: Type of Service Hourly Rate --------------- ----------- Date Input Clerical US$35 Admin. Proj. Specialist US$65 Consulting Bankruptcy Consultant US$130 - US$195 IT Programming Consultant US$115 - US$135 Attorneys/Sr. Consultant US$200 - US$250 The Debtors tell the court that they have agreed to pay Donlin Recano a total retainer of US$5,000, which was paid in full prior to the filing of the case. The Debtors requested the Court that the fees and expenses of Donlin Recano for its services be treated as an administrative expense of the Debtors Chapter 11 estates and be paid by the Debtors in the ordinary course of business, without the need to file any fee applications or seek Court approval. The Debtors assure the Court that Donlin Recano neither holds nor represents any interest adverse to the Debtors' respective estates. The firm can be reached at: Donlin Recano & Company, Inc. 419 Park Avenue South New York, NY 10016 Tel: (212) 481-1411 Fax: (212) 481-1416 http://www.donlinrecano.com/ I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, -- http://www.iwttesoro.com/-- is headquartered in New York City. The company and its subsidiaries distribute building materials, specifically hard floor and wall coverings. They are wholesalers and do not sell directly to any end user. Their products consist of ceramic, porcelain and natural stone floor, wall and decorative tile. They import a majority of these products from suppliers and manufacturers in Europe, South America (Brazil), and the Near and Far East. Their markets include the United States and Canada. They also offer private label programs for branded retail sales customers, buying groups, large homebuilders and home center store chains. The Debtor and its debtor-affiliates, International Wholesale Tile, Inc. and American Gres, Inc., filed for Chapter 11 bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead Case No. 07-12841). Dawn K. Arnold, Esq. and Jonathan S. Pasternak, Esq. at Rattet, Pasternak & Gordon-Oliver, L.L.P. represent the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had total assets of US$39,798,579 and total debts of US$47,940,983. IWT TESORO: Wants Until October 21 to File Schedules & Statement ---------------------------------------------------------------- I.W.T. Tesoro Corporation and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for to extend their deadline to file their schedule of assets and liabilities and statement financial affairs through Oct. 21, 2007. The Debtors relate to the Court that due to the size of the of their creditor body, the Debtors anticipate they will not be able to complete their schedule of assets and liabilities within the statutory time frame of 15 days from the bankruptcy filing. The Debtors further relate to the Court that they are currently reviewing their books and records, which are needed to complete the schedules. About I.W.T. Tesoro I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, -- http://www.iwttesoro.com/-- is headquartered in New York City. The company and its subsidiaries distribute building materials, specifically hard floor and wall coverings. They are wholesalers and do not sell directly to any end user. Their products consist of ceramic, porcelain and natural stone floor, wall and decorative tile. They import a majority of these products from suppliers and manufacturers in Europe, South America (Brazil), and the Near and Far East. Their markets include the United States and Canada. They also offer private label programs for branded retail sales customers, buying groups, large homebuilders and home center store chains. The Debtor and its debtor-affiliates, International Wholesale Tile, Inc. and American Gres, Inc., filed for Chapter 11 bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead Case No. 07-12841). Dawn K. Arnold, Esq. and Jonathan S. Pasternak, Esq. at Rattet, Pasternak & Gordon-Oliver, L.L.P. represent the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had total assets of US$39,798,579 and total debts of US$47,940,983. LAZARD LTD: Opens Zurich Office; Rolf Bachmann to Lead Swiss Biz ---------------------------------------------------------------- Lazard Ltd is opening an office in Zurich as part of the firm's strategy to expand its global Financial Advisory business. Lazard has hired former McKinsey & Co. Partner Rolf Bachmann as a Managing Director to lead the firm's Swiss investment banking business. "The Zurich office will enable us to expand our financial advisory services to the Swiss market, where Lazard already has established corporate relationships," said Georges Ralli, Chief Executive of Lazard European Investment Banking. "The combination of Rolf Bachmann's Swiss corporate advisory experience and relationships with Lazard's network in Europe and worldwide, puts us in an excellent position to do so." Mr. Bachmann joins Lazard after fifteen years with McKinsey in Zurich. A Partner since 1999, he led client service teams for several key McKinsey clients. Mr. Bachmann's specialty is providing strategic advice to corporations related to mergers, acquisitions and divestitures. He studied economics and earned a PhD in banking at Zurich University. The opening of the Swiss office is the latest step in Lazard's commitment to invest in its European Financial Advisory business. In early September, Lazard announced plans to hire Ken Costa, formerly of UBS, to serve as Chairman of Lazard International and to lead investment banking for the UK alongside London CEO William Rucker. The firm recently signed a cooperation agreement with Raiffeisen Investment, the M&A advisory business for Austria's largest banking group, strengthening Lazard's footprint across Russia, Central and Eastern Europe. Lazard Ltd. (NYSE:LAZ) -- http://www.lazard.com/-- is a preeminent financial advisory and asset management firms, that operates from 32 cities across 16 countries in North America, Europe, Asia, Australia and South America. With origins dating back to 1848, the firm provides advice on mergers and acquisitions, restructuring and capital raising, well as asset management services to corporations, partnerships, institutions, governments, and individuals. The company has locations in Australia, Brazil, China, France, Germany, India, Japan, Korea and Singapore. The company reported total assets of US$2.6 billion, total liabilities of US$2.8 billion, and minority interest at US$55.7 million, resulting in a total stockholders' deficit of US$206.8 million as of March 31, 2007. RHODIA SA: To Delist Shares in New York Stock Exchange ------------------------------------------------------ Rhodia S.A. provided a written notice to the New York Stock Exchange of its intent to delist and to file a Form 25 with the U.S. Securities and Exchange Commission and the NYSE by Sept. 18, 2007, to effect the delisting. Delisting is expected to be effective 10 days after the filing. The company also intends to file a Form 15F with the SEC to deregister and terminate its reporting obligations under the Exchange Act around Sept. 28, 2007. The deregistration will be effective 90 days after the filing, unless the Form 15F is denied by the SEC. Rhodia intends to maintain its existing American Depositary Receipt facility as a Level I program. As such, Rhodia ADSs will be traded on the U.S. over-the-counter market tier known as International OTCQX. With regard to the conversion to a Level I program, the depositary of Rhodia's ADR facility is being changed to The Bank of New York. Rhodia's shares will continue to trade on Euronext Paris. Rhodia remains committed to developing its communication with North American investors who represent a significant part of its shareholder structure. Rhodia will continue to apply high standards of financial reporting and will maintain strict levels of internal control throughout the Group. About Rhodia Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. The group generated sales of EUR4.8 billion in 2006 and employs around 16,000 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. The company has operations in Brazil. * * * As reported on April 26, 2007, Fitch Ratings affirmed Rhodia S.A.'s Issuer Default Rating at BB- and revised the Outlook to Positive from Stable. Fitch has assigned Rhodia SA's proposed issue of up to EUR595.125 million bonds convertible and/or exchangeable for new and/or existing shares an expected 'BB-' rating. As reported in the TCR-Europe on April 23, 2007, Moody's Investors Service upgraded Rhodia S.A. corporate family rating to Ba3 and assigned Probability-of-Default rating for the group at Ba3; Moody's also upgraded senior secured notes at Rhodia S.A. to B1 and assigned LGD assessment at LGD4 (69%). The proposed convertible notes are rated (P)B1, LGD4 (69%). These ratings are affected: -- Corporate Family Ratings upgraded to Ba3; -- Probability-of-Default assigned at Ba3; -- Rhodia S.A. Senior Unsecured ratings upgraded to B1, LGD4 (69%); and -- Rhodia S.A. Senior convertible notes rated (P)B1, LGD4 (69%). At the same time, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Rhodia to BB- from B+, and its long- term debt rating on the group to B from B-. Standard & Poor's also assigned its B senior unsecured debt rating to Rhodia's proposed new bond, which will be used for refinancing purposes. TRW AUTOMOTIVE: Brings Integrated Safety to Vehicle Markets ----------------------------------------------------------- TRW Automotive Holdings Corp. is demonstrating its success in integrated safety systems by working closely with vehicle manufacturers to bring the benefits of integrated safety technologies to end consumers across a range of vehicle applications. John C. Plant, president and chief executive officer, TRW Automotive said: "TRW's integrated safety concept recognizes that the company can help to provide enhanced safety benefits for drivers and passengers through combining active and passive systems using environmental sensors. Over the previous two years, we've collaborated with vehicle manufacturers to help develop integrated safety functions with an eye toward bringing the advantages to wider vehicle markets such as mid-size to smaller cars." TRW is providing the platform for a range of integrated safety functions on a major European mid-class vehicle model due to start production in 2008. The vehicle features TRW's Electronic Stability Control braking system and Electrically Powered Steering, in addition to video sensing to enable integrated vehicle control systems such as Lane Departure Warning/Lane Guidance and Steering Torque Control. This vehicle is expected to include the first launch of TRW's video camera technology integrated with Electric Power Steering to enable haptic lane feedback and assist with lane keeping. In this system the video camera detects when the vehicle is drifting toward the lane markings and the electric steering then applies the proper torque to assist the driver in keeping the vehicle in its lane. "We believe this vehicle will be one of the most technologically advanced in the world," said Alois Seewald, global director, Research and Development for TRW. "The combination of electronically controlled braking and steering with environmental sensors help give a clear picture of the driving environment and road conditions as well as the driver's intended path." With this information the system functions can work together to support the driver through warnings if a potentially dangerous situation is sensed, 'coach' the driver to steer in the proper direction to restore vehicle control, or brake wheels individually and cut engine torque if necessary. The systems will also enable park assist for automated parallel parking. TRW will also be providing its Active Control Retractor (ACR) seatbelt technology to a major Korean vehicle manufacturer in 2008 which will work in combination with a radar-based Adaptive Cruise Control system. TRW was first to market when it launched the ACR technology with Mercedes on S Class models in 2002. Mr. Seewald continued: "This exciting vehicle launch is an example of active and passive systems working in tandem. The ACR can use sensor information from driver assist systems radar or vision systems to sense when a vehicle is approaching a target too quickly. If this occurs the ACR system removes the seatbelt slack to help better position the occupant in relation to the vehicle's airbag restraint system in case of a crash and resets itself if it is avoided." "Such new vehicles are a landmark in safety integration," summarized Mr. John C. Plant, president and chief executive officer, TRW Automotive. "The combination of active braking, steering, suspension and driver assist systems helps to open a world of possibilities for vehicle safety that is fast becoming a reality in today's vehicle market." About TRW Automotive Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. (NYSE: TRW) -- http://www.trwauto.com/-- is an automotive supplier. Through its subsidiaries, it employs approximately 63,800 people in 26 countries, including Brazil, China, Germany and Italy. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. * * * Fitch assigned a 'BB' on TRW Automotive Holdings Corp.'s LT Issuer Default rating and 'BB-' on its Unsecured Debt rating. Fitch said the outlook is stable. VERINT SYSTEMS: Victor DeMarines Joins Board of Directors --------------------------------------------------------- Verint Systems Inc. has elected Victor A. DeMarines as its new non-executive Chairman of Verint's Board of Directors. Mr. DeMarines has served as an independent director and chairman of Verint's Audit Committee since 2002. Mr. DeMarines will also serve as chairman of Verint's newly created Governance and Nominating Committee. Upon his election, Mr. DeMarines said, "As an independent director, I am happy to take on this new role. It has been a pleasure watching Verint grow over the last five years and I believe these changes to the board will help the company focus on its long-term strategy." Verint also announced that: -- Larry Myers has been elected as the new chairman of Verint's Audit Committee, replacing Mr. DeMarines. Mr. Myers has served an independent director of Verint since 2002. -- Howard Safir will continue to serve as the chairman of Verint's Compensation and Stock Option Committees. Mr. Safir has served as an independent director of Verint since 2002. -- Lauren Wright and Shefali Shah from Comverse have joined Verint's Board of Directors, increasing the Board to 11 members, 5 of whom are Comverse-affiliated Verint directors. About Verint Systems Headquartered in Melville, New York, Verint Systems Inc. (VRNT.PK) -- http://www.verint.com/-- is a provider of analytic software-based solutions for security and business intelligence. Verint software, which is used by over 1,000 organizations in over 50 countries worldwide, generates actionable intelligence through the collection, retention and analysis of voice, fax, video, email, Internet and data transmissions from multiple communications networks. Verint has global offices in France, Brazil and and India. * * * As reported in the Troubled Company Reporter on April 24, 2007, Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Verint Systems Inc. At the same time, we assigned our 'B' bank loan rating, and '3' recovery rating to the company's proposed US$675 million first-lien credit facility, indicating that lenders can expect meaningful (50%- 80%) recovery of principal in the event of payment default," said Standard & Poor's credit analyst David Tsui. S&P said the outlook is developing. * BRAZIL: Reports 5.4% Economic Growth for Second Quarter --------------------------------------------------------- Brazil's economy has increased 5.4% in 2007 second quarter, boosted by the industrial and service sectors, the Associated Press reports, citing government figures released Wednesday. The economy also appears on track to grow nearly 5% overall in 2007 and expanded 3.7% in 2006. The second-quarter increase resulted from: a) The industrial sector with 6.8% increase from the same quarter a year ago. b) The service sector, which expanded 4.8%, and c) The agriculture sector, which rose to 0.2%. According to economists' surveyed by Dow Jones Newswires, gross domestic product growth for Latin America's largest economy in the April-June period came up short of the 5.9% target. In addition, the Brazilian Census Bureau disclosed that the growth edged up 0.8% in the second quarter compared to the first quarter in 2007, AP relates. According to AP, GDP rose 4.8% for the 2007 fiscal year ending in June. Economists surveyed by Brazil's Central Bank has forecasted that GDP, which measures the value of all goods and services produced in South America's largest economy, will increase 4.7% overall this year. Central Bank President Henrique Meirelles asserterd that the result shows that the Brazilian "economy remains on a trajectory of sustained expansion." Analysts has predicted Brazil's 2007 inflation to just shy of 4%, AP adds. Report shows that Finance Minister Guido Mantega is confident in Brazil's economic growth is strong and that inflation is under control, claiming that the nation will maintain monetary policy aimed at producing slow, sustainable growth. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. * BRAZIL: Regulator Rejects Petrobras' Appeal on BRL1.3-Bln Fine ---------------------------------------------------------------- Brazilian hydrocarbons regulator Agencia Nacional do Petroleo's general director Haroldo Lima told the press that the regulator has rejected state-run oil firm Petroleo Brasileiro SA's appeal against the BRL1.3-billion fine for its participation on the Campos basin's Marlim oilfield. According to Business News Americas, Mr. Lima said the fine could be raise to BRL2 billion if the regulator takes into consideration interest and monetary corrections. The regulator imposed the fine after Petroleo Brasileiro allegedly miscalculated the amount to be paid for Marlim. The company missed the deadline to file an appeal against the fine. BNamericas relates that the regulator will hold a meeting on Sept. 17, 2007, to vote on a decision. Petroleo Brasileiro Chief Financial Officer Almir Barbassa told reporters that the firm hasn't been informed of the regulator's decision to reject the appeal. "There is no question Petrobras [Petroleo Brasileiro] will appeal in courts if that is ANP's [the regulator] decision," Mr. Barbassa commented to BNamericas. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported on Nov. 24, 2006, Standard & Poor's Ratings Services revised its outlook on its long-term ratings on the Federative Republic of Brazil to positive from stable. Standard & Poor's also affirmed these ratings on the Republic of Brazil: -- 'BB' for long-term foreign currency credit rating, -- 'BB+' for long-term local currency credit rating, and -- 'B' for short-term currency sovereign credit rating. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. * BRAZIL: Ecuador Deciding on Oilfield Conflict with Nation ----------------------------------------------------------- Ecuadorian oil minister Galo Chiriboga told Reuters that the government will still decide on oilfield ownership dispute with Brazil's state-run oil firm Petroleo Brasileiro. Palo Azul was mistakenly granted to Petroleo Brasileiro as a shared oilfield. The main oil reserve was shared by both the firm and Ecuadorian counterpart Petroecuador, which owned an adjacent block. Ecuadorian President Rafael Correa told Reuters that the government will renegotiate its contract with Petroleo Brasileiro over findings that the company lacked the rights to run the 35,000 barrels-per-day Palo Azul oifield. Minister Chiriboga commented to journalists, "It's impossible for me to make a decision about these opinions, even about the president's version. There is an ongoing investigation about this that will eventually reach the minister." Minister Chiriboga told Reuters that he will reach a decision over the ownership of the field after the investigation. The government will continue with renegotiating a contract to increase the state share of oil revenues, Reuters notes, citing Minister Chiriboga. The government will be launching contract renegotiations with Spain's Repsol YPF and China's Andes Petroleum. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported on Nov. 24, 2006, Standard & Poor's Ratings Services revised its outlook on its long-term ratings on the Federative Republic of Brazil to positive from stable. Standard & Poor's also affirmed these ratings on the Republic of Brazil: -- 'BB' for long-term foreign currency credit rating, -- 'BB+' for long-term local currency credit rating, and -- 'B' for short-term currency sovereign credit rating. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. =========================== C A Y M A N I S L A N D S =========================== ALPHAGEN ABSOLUS: Final Shareholders Meeting Is on Monday --------------------------------------------------------- The Alphagen Absolus Fund Ltd. will hold its final shareholders meeting on Sept. 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 KY1-1102 Tel: (345) 949 8455 Fax: (345) 949 8499 AMB BLACKPINE: Holding Final Shareholders Meeting on Monday ----------------------------------------------------------- AMB Blackpine Ltd. will hold its final shareholders meeting on Sept. 17, 2007, at 10:00 a.m., at: Pier 1, Bay 1 San Francisco, CA 94111 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) 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: Guy F. Jaquier Attention: Nick Robinson P.O. Box 265 George Town, George Town Grand Cayman KY1-9001 Cayman Islands Tel: (345) 914 4216 Fax: (345) 814 8216 AVENIR ASIAN: Final Shareholders Meeting Set for Today ------------------------------------------------------ Avenir Asian Multi-Strategy Fund Ltd. will hold its final shareholders meeting on Sept. 14, 2007, at 9:00 a.m., at the office of the company. These agendas will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) 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 KY1-1102 Tel: (345) 949 8455 BANK OF INDIA: To Raise INR1 Billion from Perpetual Bond Sale ------------------------------------------------------------- The Bank of India plans to raise INR1 billion through the sale of perpetual bonds, Reuters reports, citing an unnamed "merchant banker close to the deal" as source. According to Reuters, the coupon is 10.45%, with a call option after 10 years, which if not exercised rises the coupon to 10.95%. The issue will close on Sept. 25, the banker told the news agency. Headquartered in Mumbai, India, Bank of India -- http://www.bankofindia.com-- 2628 branches in India spread over all states/ union territories, including 93 specialized branches. The bank provides a range of financial products and services, including numerous credit schemes, deposit schemes, cash management services, credit/debit cards, deposit vaults and corporate bonds. It also extends finance to small and medium enterprises and small-scale industries. It provides a variety of loans, such as mortgage loans, educational loans, auto finance loans, holiday loans, personal loans and home loans. The bank offers Internet banking services for both the retail and corporate clients. The bank operates in the Cayman Islands, China, the Channel Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore, the United Kingdom, the United States, and Vietnam. * * * Standard & Poor's Ratings Services assigned on March 26, 2007, its 'BB' issue rating to the bank's Hybrid Tier I notes to be issued by India's Bank of India (BOI; BBB-/Stable/A-3), acting through its Jersey branch. These notes are being issued under the bank's US$1 billion medium-term notes program. RHICON 4XIM: Holding Final Shareholders Meeting on Monday --------------------------------------------------------- The Rhicon 4xim Cmp Fund Ltd. will hold its final shareholders meeting on Sept. 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 KY1-1102 Tel: (345) 949 8455 Fax: (345) 949 8499 WESTROCK LTD: Final Shareholders Meeting Is on Monday ----------------------------------------------------- Westrock Ltd. will hold its final shareholders meeting on Sept. 17, 2007, at 10:00 a.m., at: Pier 1, Bay 1 San Francisco, CA 94111 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) 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: Guy F. Jaquier Attention: Nick Robinson P.O. Box 265 George Town, George Town Grand Cayman KY1-9001 Cayman Islands Tel: (345) 914 4216 Fax: (345) 814 8216 ========= C H I L E ========= EASTMAN KODAK: S&P Affirms B+ Corporate Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'B+' corporate credit rating on Eastman Kodak Co. and removed the ratings from CreditWatch, where they had been placed with negative implications on Aug. 2, 2006. The outlook is negative. At the same time, we raised the ratings on the company's US$1 billion senior secured revolving credit facility to 'BB,' two notches above the corporate credit rating, from 'B+', and revised the recovery rating to '1,' reflecting the expectation of very high (90%-100%) recovery in the event of a payment default, from '2'. The bank loan and recovery rating revision follows an analysis of the collateral pledged to the remaining US$1 billion revolving credit facility. "We have affirmed the ratings," said S&P's credit analyst Tulip Lim, "based on our comfort that still-meaningful cash balances provided by the sale of the Health Group support intermediate- term business reinvestment and liquidity." The negative outlook conveys S&P's continued concerns regarding the overall business, the likelihood of success with respect to management's digital business strategy, and uncertainty that substantial restructuring involving cash payments will soon be over. About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. =============== C O L O M B I A =============== POLYONE: Posts US$5.4 Mil. Net Loss in 2nd Quarter to June 30 ------------------------------------------------------------- PolyOne Corporation reported its unaudited results for the second quarter ended June 30, 2007, and for the first half of 2007. For the second quarter ended June 30, 2007, the company registered a net loss of US$5.4 million compared with the US$42.5-million net income in the same quarter last year. Sales in the second quarter of 2007 reached US$688.8 million, up 5% from the first quarter of 2007 and flat compared with second- quarter 2006 sales. PolyOne reported a US$0.06 per share loss in the quarter. Second quarter 2007 earnings included special items, of which US$0.15 per share were charges associated with the divestment of the Oxy Vinyls, L.P. (OxyVinyls) joint venture, which was sold on July 6, 2007, and the premium costs associated with the redemption of US$100 million of the company's 10.625% Senior Notes due 2010. Adjusting for the above and other special items, the Company earned US$0.10 per share. For the second quarter of 2006, the company earned US$0.46 per share. The year-over-year decline in second quarter 2007 earnings is primarily attributable to: -- The July 6, 2007, strategic divestment of the OxyVinyls joint venture and the redemption of US$100 million of the company's 10.625% Senior Notes due in 2010, which in combination resulted in charges of US$22.3 million; -- Lower income from the Resin and Intermediates (R&I) joint ventures (US$17.0 million) and the Vinyl Business segment (US$6.7 million); -- Non-recurring benefits to second quarter 2006 results that included one-time insurance, legal settlements and adjustments to related reserves of US$8.4 million; and -- A reversal totaling US$14.1 million of a deferred tax allowance associated with domestic earnings when compared to the second quarter of 2006. A marked downward shift in residential building and construction demand drove OxyVinyls earnings down US$40.4 million, dropping from US$41.3 million for the first six months of 2006 to US$0.9 million for same period in 2007. As previously reported, on July 6, 2007, the company divested its OxyVinyls equity interest for US$261 million in cash. With a portion of the net proceeds from the OxyVinyls divestment, the company has called for redemption on Aug. 9, 2007, of the entire outstanding balance of US$141.4 million of its 10.625% Senior Notes due 2010. The cumulative elimination of US$241.4 million of these Senior Notes in the second and third quarters of 2007 will lower annual interest expense by approximately US$25 million in 2008 compared with 2006, with the company realizing an anticipated US$5 million interest expense reduction in the third quarter 2007 compared to the second quarter. "While the downturn in construction and residential housing significantly affected our R&I joint ventures and Vinyl Business in North America, we are encouraged by the operating performance in our non-vinyl businesses," said Stephen D. Newlin, chairman, president and chief executive officer. "Second quarter operating income for the four businesses that comprise the All Other business segment improved 60%, led by increased gross margins realized through specialization efforts. Additionally, in the second quarter, North American Color and Additives turned profitable and our International Color and Engineered Materials segment delivered double-digit sales and earnings growth." For the second quarter of 2007, PolyOne reported operating income of US$12.4 million and gross margin of 12.3%, down from the same period in 2006, primarily due to weakness in the chloro-vinyl businesses. Gross margin in the Vinyl Business segment declined due to continued softness in residential construction demand. Operating income in the aggregate for the Company's non- vinyl operating segments increased 33%, or US$4.8 million, compared to the second quarter of 2006. Reflecting progress from the Company's specialization strategy, aggregate gross margin as a percentage of sales for these businesses improved 1.2 percentage points to 12.7% compared with the same period a year ago. Newlin added, "Although much work remains in our transformation, our strategies are delivering results earlier than anticipated. Moreover, with the divestment of our interest in the OxyVinyls joint venture, we have significantly reduced our exposure to the building and construction end markets, eliminated a major source of earnings volatility and reduced our debt. We now have increased flexibility to explore new value-creating opportunities for the company in support of our strategy." Business Outlook PolyOne anticipates that the overall North American economic environment in the third quarter of 2007 will continue to be challenging and reflect only modest improvement compared with the second quarter of 2007. North American construction and automotive demand are projected to remain weak and below third quarter 2006 levels. Consequently, Vinyl Business sales are expected to be flat sequentially, but decline up to 10% compared with the third quarter of 2006. Aggregate non-Vinyl business sales, on the other hand, are anticipated to grow 6% to 9% compared with the third quarter of 2006. In particular, solid demand is expected in most key international markets, driving continued growth in sales and earnings. Total gross margin is projected to increase year-over-year reflecting early benefits from the company's specialization strategy. SunBelt earnings are anticipated to decline moderately compared with the prior year, but overall chlor-alkali margins are projected to remain relatively strong. After the divestment on July 6, 2007, OxyVinyls results will no longer be reported. In the third quarter of 2006, the company realized US$6.8 million net benefit from legal settlements and adjustments to related reserves. The company does not anticipate realizing a similar benefit this year. The Company anticipates that third quarter "Corporate and eliminations," excluding non-operational charges, should be consistent with the first half 2007 average. The Company projects that interest expense for the third quarter will decline approximately US$5 million sequentially as a result of its planned redemption on Aug. 9, 2007, of the outstanding balance of the 10.625% Senior Notes due 2010. The completion of the OxyVinyls divestiture will result in a US$31.5 million non-recurring tax benefit in the third quarter from the reversal of deferred tax liabilities. Partially offsetting this benefit will be debt premium costs and the write-off of unamortized debt issuance fees associated with the redemption of the US$141.4 million outstanding balance of the Senior Notes as well as other factors that should total approximately US$10.5 million. Consistent with the first and second quarters of this year, the company will record tax expense related to domestic earnings in the third quarter of 2007 in contrast with the same period in 2006. Recording this tax expense will not affect cash flow due to PolyOne's remaining domestic net operating loss carry- forwards. Cash taxes will continue to be associated principally with non-U.S. earnings. As of June 30, 2007, the company's balance sheet shows total assets of US$1.76 million and US$1.16 million of total liabilities, resulting in a shareholders' equity of US$601 thousand. About PolyOne Headquartered in Avon Lake, Ohio, PolyOne Corp. -- http://www.polyone.com/-- is a global compounding and North American distribution company with operations in thermoplastic compounds, specialty polyvinyl chloride (PVC) vinyl resins, specialty polymer formulations, color and additive systems, and thermoplastic resin distribution, with equity investments in manufacturers of PVC resin and its intermediates. The company has 53 manufacturing sites and 14 warehouses in North America, Europe and Asia. The company maintains operations in China, Colombia, Thailand and Singapore. * * * As reported in the Troubled Company Reporter on July 13, 2007, Fitch Ratings upgraded PolyOne Corporation's Issuer Default Rating to 'BB-' from 'B', Senior unsecured debt and debentures to 'BB-' from 'B+/RR3', and rating outlook to stable. =================== C O S T A R I C A =================== ANIXTER INT'L: Promotes Two Officers to Executive Positions ----------------------------------------------------------- Anixter International Inc. has promoted Robert Eck to the newly created position of Executive Vice President -- Chief Operating Officer and Dennis Letham to Executive Vice President -- Finance and Chief Financial Officer position. Mr. Eck has been with the company's operating subsidiary, Anixter Inc., for 17 years in a variety of staff and commercial positions. His most recent position, held since 2004, was Executive Vice President -- Enterprise Cabling and Security Solutions. In this role Eck has overseen annual sales growth specific to this end market of approximately 16 percent, including significant growth from our initiative to develop our security products business. Previous key positions include Senior Vice President -- Physical Security Products and Integrated Supply and Senior Vice President -- Integrated Supply Solutions. Mr. Letham has been with Anixter for the past 14 years and has served as Senior Vice President -- Finance and Chief Financial Officer for the past 12 years. During this time he has overseen the finance, accounting, tax, internal audit and legal activities of the company. Commenting on these appointments, Robert Grubbs, President and Chief Executive Officer, said, "The creation of the Chief Operating Officer position is a result of the Company's rapid growth over the past few years. We feel Bob Eck's strong track record at Anixter has proven that he possesses the qualities and experience necessary to support our continued success. Over the past year, Mr. Letham has taken on added responsibilities outside of the finance and accounting areas, most notably in human resources. His promotion reflects the added duties he has assumed." Sam Zell, Chairman of the Board, said, "Over the past four years sales at Anixter have more than doubled. Included in this growth has been a series of acquisitions in the North American and European OEM Supply marketplace, which now generates in excess of US$1 billion in annual sales for the company. This rapid growth and diversification of end markets has brought new organizational challenges and complexity. These executive management changes reflect the Board's desire to ensure there is sufficient depth and breadth to the management team in order for the Company to continue to execute effectively on all of its growth strategies." About Anixter Anixter International Inc. (NYSE: AXE) -- http://www.anixter.com/-- through its subsidiaries, distributes communications and specialty wire and cable products, fasteners, and small parts in the United States and internationally. Its communications products include voice, data, video, and security products used to connect personal computers, peripheral equipment, mainframe equipment, security equipment, and various networks to each other. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5 million square feet of space. It has operations in Latin American countries including Mexico, Costa Rica, Brazil and Chile. Its Asia-Pacific operations are located in Indonesia, Australia, China, Hong Kong, India, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, and Thailand. It also operates in Europe, particularly in Spain, France and the United Kingdom. * * * Anixter International Inc. carries Moody's Investors Service's Ba2 corporate family rating. Anixter Inc.'s US$200 million guaranteed senior unsecured notes and its 3.25% LYON's notes carry Moody's Ba1 and B1 ratings, respectively. Moody's said the rating outlook is stable. Anixter International Inc. carries Fitch's 'BB+' Issuer Default, senior unsecured notes and senior unsecured bank credit facility Ratings. Similarly, Anixter Inc. carries Fitch's 'BB+' issuer default rating and 'BB-' senior unsecured debt rating. Fitch's action affects about US$700 million of public debt securities. Fitch said the rating outlook is stable. US AIRWAYS: To Hire 350 New Pilots; Move 140 Others to Mainline --------------------------------------------------------------- US Airways Group Inc. will employ more than 350 new pilots and shift 140 others now flying regional routes to its mainline operations, the Associated Press reports. AP relates that the carrier is expecting to fill the positions for the next 12 to 16 months. New workers will fly US Airway's Embraer 190 aircraft, while existing pilots will be transferred to the airlines's Boeing 737 and Airbus A320 fleets. The changes, AP says, are created to fill spots vacated by retired pilots from mainline routes. About U.S. Airways Group Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) -- http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. US Airways has operations in Japan, Australia, China, Costa Rica, Philippines, and Spain, among others. * * * As reported in the Troubled Company Reporter on March 13, 2007, Standard & Poor's Ratings Services assigned its 'B' rating to US Airways Group Inc.'s US$1.6 billion secured credit facility due 2014, currently being syndicated. =================================== D O M I N I C A N R E P U B L I C =================================== ASHMORE ENERGY: Launches Transredes Stake Sale with Bolivia ----------------------------------------------------------- Ashmore Energy International has launched negotiations with the Bolivian hydrocarbons and energy ministry on the sale of the firm's stake in gas transporter Transredes, Business News Americas reports, citing a ministry spokesperson. As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Bolivian hydrocarbons minister Carlos Villegas said that Ashmore Energy planned to continue negotiations with Bolivian President Evo Morales on the sale of its 14% stake in Transredes. BNamericas relates that Ashmore Energy and Anglo-Dutch oil major Shell each own a 25% share in Transredes. Bolivia's state hydrocarbons firm Yacimientos Petroliferos Fiscales Bolivianos and other shareholders control 34% and 16% respectively. According to BNamericas, the government wants to give Yacimientos Petroliferos a majority stake in Transredes as part of President Morales' nationalization decree. The spokesperson told BNamericas that Ashmore Energy officials arrived in La Paz to start the talks. The Bolivian government's planned acquisition of Transredes shares wouldn't affect Transredes' financial and operative obligations, BNamericas says, citing a regional ratings agency Pacific Credit Rating analyst. The rating agency hasn't changed its BAA rating on Transredes bond issues. BNamericas explains that the BAA rating indicates: -- Transredes' position as Bolivia's main hydrocarbons transporter, -- its low revenue volatility, -- favorable gas demand growth perspectives, and -- Bolivia's current gas reserves. Ashmore Energy International Ltd. -- http://www.ashmoreenergy.com-- owns and operates a portfolio of energy infrastructure assets in power generation, transmission, and distribution of natural gas, gas liquids, and electric power. Ashmore Energy's portfolio, directly or indirectly, consists of 19 companies in 14 countries, most of which are located in Latin America. The company's largest asset is Brazilian electric distribution company, Elektro, which represents approximately 43% of EBITDA, and 55.3% of fiscal 2006 consolidated cash flow to parent company Ashmore Energy. The company also operates a power plant in the Dominican Republic. * * * As reported in the Troubled Company Reporter-Latin America on April 3, 2007, Standard & Poor's Ratings Services assigned its 'B+' secured debt rating and '3' recovery rating to Ashmore Energy International's US$105 million synthetic revolving credit facility due in 2012. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating on Ashmore Energy; its 'B+' senior secured debt rating and '3' recovery rating on its US$395 million revolving credit facility due 2012, which was reduced from US$500 million; and its 'B+' senior secured debt rating and '3' recovery rating on Ashmore Energy's US$1 billion term loan due in 2014. AEI Finance Holding LLC is a co-borrower to Ashmore Energy's bank facility. S&P said the outlook was stable. As reported in the Troubled Company Reporter-Latin America on Feb. 27, 2007, Fitch Ratings assigned a BB Issuer Default rating to Ashmore Energy International Ltd. and rated its US$500 million senior revolver credit facility at BB. Also, Moody's Investors Service assigned a Ba3 rating to the senior secured credit facilities. GENERAL CABLE: Inks US$735-Mln Purchase Deal w/ Freeport-McMoran ---------------------------------------------------------------- General Cable Corporation has agreed to acquire the global wire and cable business of Freeport-McMoRan Copper & Gold Inc., which operates as Phelps Dodge International Corporation (PDIC). PDIC was acquired by Freeport as part of the acquisition of Phelps Dodge Corporation in March 2007. The purchase price is approximately US$735 million, subject to adjustment as provided in the Stock Purchase Agreement. In addition to utilizing its available cash, the Company has secured commitments from Merrill Lynch Capital Corporation to provide an increased secured revolving line of credit and an additional secured interim loan necessary to fund the purchase price. On an annual basis, General Cable estimates that the acquisition will contribute approximately US$1.4 billion in revenues at current metal prices and is expected to be accretive to earnings in the first full year by US$0.20 to US$0.30 cents per share based upon 2006 results. The combined companies expect to derive additional benefits over time through cross-selling opportunities, logistics and purchasing synergies, and the implementation of best practices throughout the entire organization. PDIC's performance in the first half of 2007 continued to trend positively. Key Strategic Rationale The acquisition offers General Cable an opportunity to further enhance its global scale and worldwide leadership in the wire and cable industry with critical mass in many emerging markets. PDIC brings a number of very positive characteristics, including: -- Complementary geographic coverage focused on energy infrastructure, construction and industrial cables serving emerging and faster growing markets in Latin America, sub-Saharan Africa, Southeast Asia, as well as India and China. Experienced management team doing business in 45 countries around the world. -- Demonstrated expertise in aerial and buried high-voltage transmission systems. -- Addition of a well-recognized, highly respected brand in the wire and cable industry with more than 50 years of history. -- Shared business philosophies of safety, Lean manufacturing, and a "One Company" approach to internal operations and customers. -- Accretive in year one with significant upside potential. "The acquisition of PDIC is truly a unique opportunity, greatly accelerating our initiative to expand into many of the faster growing emerging economies of the world," said Gregory B. Kenny, President and Chief Executive Officer of General Cable. "We are effectively merging one company principally concentrated in North America, Western Europe and Oceania with one focused in Latin America, sub-Saharan Africa and Southeast Asia. In addition, PDIC shares many of the same philosophies that have defined General Cable over the years which include an emphasis on safety, Lean manufacturing, strong operating systems and a "One Company" approach to internal operations and customers. PDIC has an experienced and disciplined management team led by Mathias Sandoval, President of Phelps Dodge International Corporation," Mr. Kenny continued. "Mr. Sandoval has spent 24 years with PDIC and has developed a reputation for operating effectively in multiple cultures. His strong and sustaining global vision has underpinned superior operating results and exceptional asset utilization. We are delighted that Mr. Sandoval has agreed to continue to lead the PDIC organization post-acquisition, as well as assume additional operating responsibility for certain existing General Cable assets. Mathias' skills will complement the General Cable senior management team who have successfully expanded the geographic footprint and served markets of the Company over the last ten years. We also believe there is an opportunity to utilize capacity within the PDIC organization to support our recent expansion into new markets, utilizing less capital than previously contemplated," Mr. Kenny said. PDIC has manufacturing and distribution facilities around the world with leading market positions in South and Central America, Africa and Southeast Asia. PDIC has approximately 3,000 employees. In addition to 10 majority-owned manufacturing and numerous distribution facilities, PDIC also has equity positions in wire and cable companies in China, Hong Kong, and the Philippines. For the year ended December 31, 2006, PDIC reported revenues of approximately US$1.2 billion and operating earnings of approximately US$77 million. In the first six months of 2007, PDIC's operating performance continued to strengthen as did its revenue base. PDIC has little geographic overlap with General Cable. Sales are primarily focused on energy products for utility, industrial and construction applications. Additionally, PDIC has copper and aluminum rod mills on three continents, a source of competitive advantage in developing regions. Just over half of PDIC's revenues are generated from manufacturing assets located in South and Central America, where leading market positions are held and where General Cable has a minor presence. PDIC brings over US$200 million of revenues in sub-Saharan Africa, where General Cable participates on a much smaller scale. PDIC is a leader in Southeast Asia and India with positions that nicely complement General Cable's current activities in India, China and Oceania. As well, PDIC has equity investments in two companies serving the Chinese energy cable market as well as one in the Philippines. PDIC also has well developed global sales channels for its energy infrastructure products made in Thailand and South America. Based on reported 2006 sales of US$4.8 billion, the combined companies would have approximately 44% of revenues in North America, 27% in Europe and the Middle East, 15% in South and Central America, and 14% in Africa/Asia Pacific. Transaction Details Under the terms of the transaction, which has been unanimously approved by General Cable's Board of Directors, General Cable will acquire 100% of the shares held by Freeport and its subsidiaries in the various entities comprising Freeport's wire and cable business. The purchase price is subject to adjustment to take into account the net effect of any dividends and other distributions made from, and capital contributions made to, the entities being acquired from March 31, 2007. In addition, as part of the transaction, General Cable will be assigned the rights in the "Phelps Dodge International Corporation" and "PDIC" brands well known in the wire and cable industry. Subject to the satisfaction of customary closing conditions and the receipt of clearances or waivers from competition and regulatory authorities in relevant jurisdictions, the transaction is expected to close during the fourth quarter of 2007. Merrill Lynch & Co. acted as exclusive financial advisor and provided a fairness opinion to General Cable in connection with the transaction. Blank Rome LLP and Norton Rose LLP served as General Cable's external legal counsel. Third Quarter Update "The markets are behaving approximately as we anticipated with telecommunications and housing related cable demand remaining soft, offset by energy infrastructure requirements and the continued benefits of our Lean manufacturing initiatives. We continue to expect revenues of approximately US$1.1 billion for the third quarter and earnings of US$0.85 to US$0.90 per share, consistent with our previous guidance," Mr. Kenny concluded. About Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. About General Cable Corporation Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. General Cable has locations in China, Australia, France, Brazil, the Dominican Republic and Spain. * * * As reported in the Troubled Company Reporter on March 13, 2007, Moody's Investors Service assigned a rating of B1 to the US$325 million senior unsecured notes of General Cable Corporation consisting of US$125 million of floating rate notes and US$200 million fixed rate notes. Concurrently, Moody's affirmed all other ratings for this issuer. Moody's said the rating outlook is stable. ============= E C U A D O R ============= FREEPORT-MCMORAN: Selling Wire & Cable Biz for US$735 Million ------------------------------------------------------------- Freeport-McMoRan Copper & Gold Inc. has entered into an agreement to sell its international wire and cable business, operated under the name of Phelps Dodge International Corporation (PDIC), to General Cable Corporation for US$735 million, including the acquisition of minority interests recently acquired by FCX. PDIC operates factories and distribution centers in 19 countries throughout Latin America, Asia and Africa and is engaged in the manufacturing and distribution of engineered products, principally for the global energy sector. Richard C. Adkerson, Chief Executive Officer, said: "The PDIC team has built a strong business serving customers with high quality products in growing international markets. We are pleased to have reached agreement with General Cable to continue this over 50-year tradition of excellence. The transaction will provide FCX with significant cash proceeds and is consistent with our strategy to focus our resources on the exciting opportunities that exist in our mining operations and development projects in the Americas, Indonesia and Africa." Under the terms of the transaction, General Cable will acquire 100 percent of the shares held by FCX and its subsidiaries in the entities comprising the wire and cable business. The purchase price is subject to adjustment to take into account the net effect of dividends from and capital contributions to the entities being acquired since March 31, 2007. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the fourth quarter of 2007. FCX expects to use the net proceeds (estimated to approximate US$620 million after taxes and other transaction related items) to repay debt. The sales price of the PDIC operations will be evaluated in connection with our ongoing allocation of the purchase price of Phelps Dodge to the assets acquired in that transaction on March 19, 2007. The sale of PDIC is not expected to result in any material gain or loss. BlackEagle Advisors LLC acted as financial advisor to FCX in connection with this transaction. About General Cable Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. General Cable has locations in China, Australia, France, Brazil, the Dominican Republic and Spain. About Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. * * * As reported in the Troubled Company Reporter-Latin America on July 19, 2007, Standard & Poor's Rating Services revised its outlooks on Freeport-McMoRan Copper & Gold Inc. and its recently acquired Phelps Dodge Corp. to positive from stable and affirmed all ratings, including the 'BB+' corporate credit ratings. PETROECUADOR: Resumes Biding Process for Marginal Oilfields ----------------------------------------------------------- The Ecuadorian energy and ministry said in a statement that the government has continued the bidding process for state-run oil firm Petroecuador's marginal oilfields. According to the ministry's statement, the fields to be awarded are: -- Armadillo, -- Pucuna, -- Puma, -- Tetete-Tapi-Frontera, and -- Singue. Minister Galo Chiriboga told Business News Americas that Petroecuador's special tenders committee will hold a meeting on Sept. 17, 2007, to award the fields after legal issues were resolved. The announcement of winners for the oilfields was initially set for November 2006. However, it was postponed due to a lack of quorum, BNamericas relates, citing a Petroecuador spokesperson. Investment in the fields will total US$220 million to boost oil production to 10,000 barrels per day next year, the ministry said in a statement. Petroecuador, according to published reports, is faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much-needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. * ECUADOR: Deciding on Oilfield Ownership Dispute with Brazil ------------------------------------------------------------- Ecuadorian oil minister Galo Chiriboga told Reuters that the government will still decide on oilfield ownership dispute with Brazilian state-run oil firm Petroleo Brasileiro. Palo Azul was mistakenly granted to Petroleo Brasileiro as a shared oilfield. The main oil reserve was shared by both the firm and Ecuadorian counterpart Petroecuador, which owned an adjacent block. Ecuadorian President Rafael Correa told Reuters that the government will renegotiate its contract with Petroleo Brasileiro over findings that the company lacked the rights to run the 35,000 barrels-per-day Palo Azul oifield. Minister Chiriboga commented to journalists, "It's impossible for me to make a decision about these opinions, even about the president's version. There is an ongoing investigation about this that will eventually reach the minister." Minister Chiriboga told Reuters that he will reach a decision over the ownership of the field after the investigation. The government will continue with renegotiating a contract to increase the state share of oil revenues, Reuters notes, citing Minister Chiriboga. The government will be launching contract renegotiations with Spain's Repsol YPF and China's Andes Petroleum. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported in the Troubled Company Reporter on Jan. 25, 2007, Fitch Ratings downgraded the long-term foreign currency Issuer Default Rating of Ecuador to 'CCC' from 'B-', indicating that default is a real possibility in the near term. In addition, these ratings were downgraded: -- Uncollateralized foreign currency bonds to 'CCC/RR4' from 'B-/RR4'; -- Collateralized foreign currency Par and Discount Brady bonds to 'CCC+/RR3' from 'B/RR3'; and -- Short-term foreign currency IDR to 'C' from 'B'. Fitch also affirmed the Country ceiling rating at 'B-'. * ECUADOR: Will Launch Oil Contract Renegotiation ------------------------------------------------- The Ecuadorian energy and mines ministry said in a statement that the government will launch a renegotiation of oil agreements. Business News Americas relates that President Rafael Correa formed a "commission to audit oil contracts with a focus on investigating contractual compliance including operational and environmental performance." At team of technicians from state- owned oil firm Petroecuador's oil-contracting unit, lawyers from the ministry and attorney general's office, the comptroller general and financial analysts will be created for the renegotiation. Energy and mines ministry Galo Chiriboga told BNamericas that the negotiations will start with: -- Andes Petroleum, -- Canada Grande, -- Petrooriental, -- Repsol YPF, and Perenco. Minister Chiriboga explained to BNamericas that the companies showed their willingness to start the contract renegotiation process. Minister Chiriboga commented to BNamericas, "The philosophy of this renegotiation is to guarantee legal security for the state as well the contracted companies within a negotiated framework that will benefit the oil companies as well as the Ecuadorian state." According to the ministry's statement, the renegotiated contracts will take effect for five years. * * * As reported in the Troubled Company Reporter on Jan. 25, 2007, Fitch Ratings downgraded the long-term foreign currency Issuer Default Rating of Ecuador to 'CCC' from 'B-', indicating that default is a real possibility in the near term. In addition, these ratings were downgraded: -- Uncollateralized foreign currency bonds to 'CCC/RR4' from 'B-/RR4'; -- Collateralized foreign currency Par and Discount Brady bonds to 'CCC+/RR3' from 'B/RR3'; and -- Short-term foreign currency IDR to 'C' from 'B'. Fitch also affirmed the Country ceiling rating at 'B-'. ================= G U A T E M A L A ================= AFFILIATED COMPUTER: Extends Contract with Hawaii Medicaid ---------------------------------------------------------- Affiliated Computer Services Inc. has extended contract with the Hawaii Department of Human Services' Med-QUEST Division to continue providing fiscal agent and pharmacy benefits management (PBM) services to the state's Medicaid program. The six-month extensions of the two contracts are valued at a combined US$6.4 million. ACS has provided fiscal agent and PBM services to Hawaii's Medicaid program since 2001. "We value our partnership with Med-QUEST and look forward to continuing to serve the needs of Hawaiians across the state," said Christopher T. Deelsnyder, ACS senior vice president and managing director, Government Healthcare Solutions. "ACS is known for listening to our customers, determining their business requirements, and implementing innovative solutions for the recipients, providers, and taxpayers in the states we serve." Fiscal agent services provided include: * mailroom, claims receipt, sorting, screening and imaging; * third party liability; * claims entry, optical character recognition, claims resolution and adjustment; * prior authorization data entry; provider remittance advice and distribution; * claims payment (check and Electronic Funds Transfer) cash control and bank accounts; * provider call center, training, and publications; * Electronic Data Interchange claims submission; * automated PA entry for waiver services; * quality assurance and report card; * Automated Voice Response for eligibility verification; and * ID card processing. PBM services include pharmacy claims processing, automated prior authorizations, call center prior authorizations, drug rebate administration, a Healthcare Common Procedure Coding System (HCPCS) crosswalk table, and help desk services. About Affiliated Computer Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.AffiliatedComputer-inc.com/ -- provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * Affiliated Computer Services currently carries Fitch Ratings' BB Issuer Default Rating. =========== M E X I C O =========== ALASKA AIRLINES: To Acquire Hawaiian Vacations' Assets ------------------------------------------------------ Alaska Airlines has agreed to acquire certain assets of Hawaiian Vacations, Inc., for an undisclosed amount. Other terms of the deal were not disclosed. Alaska Airlines has also said it now directly offers a full line of Alaska-Hawaii vacation packages in conjunction with its daily Anchorage-Honolulu service starting Dec. 9. Reservations for Hawaii travel packages are available at http://www.alaskaair.com or by calling (800) ALASKAAIR. "Hawaiian Vacations has served Alaskan customers well for 25 years, and we're looking forward to continuing that tradition," said Bill MacKay, Alaska Airlines' senior vice president for the state of Alaska. "Our new Hawaii packages offer the flexibility of flying any day of the week and the opportunity to earn or redeem Alaska Airlines Mileage Plan miles for flights." John Hardwick, Hawaiian Vacations' founder and president, said Alaska's acquisition of its current bookings, brand and Web presence will enhance the Hawaii vacation possibilities for Alaskans. "We owe thanks or 'Mahalo' to our employees who have served our customers so well, and know Alaska Airlines Vacations will do an excellent job serving customers in the years ahead," he said. Under the agreement, beginning Jan. 13, 2008, Hawaiian Vacations will no longer market Hawaii vacation packages or charter flights. Customers with Hawaiian Vacations reservations for travel starting Jan. 13 will be contacted by Hawaiian Vacations to arrange a transition to Alaska Airlines flights. Customers with reservations through Jan. 12 will not experience itinerary changes. More information for Hawaiian Vacations customers is available at http://wwww.hawaiianvacations.comor by calling (907) 261-2700 from Anchorage or (800) 770-2700 toll free from other locations. The acquisition is expected to close later this month, while the transition of operations is expected to be completed in February 2008. Alaska Airlines will provide information about airline career opportunities to Hawaiian Vacations' 19 Anchorage-based employees. In May, Alaska Airlines announced daily service starting Dec. 9 between Anchorage and Honolulu. Flights will depart Anchorage at 3:20 p.m. Alaska time and arrive in Honolulu at 8:40 p.m. Hawaii time. Return flights will depart at 10:10 p.m. Hawaii time and arrive at 5:30 a.m. Alaska time. Alaska also will offer daily flights between Seattle and Honolulu beginning Oct. 12 and between Seattle and Lihue on the island of Kauai starting Oct. 28. Seattle, Washington-based Alaska Air Group, Inc. (NYSE: ALK) -- http://alaskaair.com/-- is a holding company with two principal subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc. Alaska operates an all-jet fleet with an average passenger trip length of 1,009 miles. Alaska principally serves destinations in the state of Alaska and North/South service between cities in the Western United States, Canada, and Mexico. Horizon operates jet and turboprop aircraft with average passenger trip of 382 miles. Horizon serves 40 cities in seven states and six cities in Canada. * * * As reported in the Troubled Company Reporter on Nov. 6, 2006, Moody's Investors Service affirmed the corporate family rating of Alaska Air Group, Inc. and the Equipment Trust Certificate rating of Alaska Airlines, Inc. at B1, and changed the outlook to stable from negative. BALLY TOTAL: AGT Crunch, et al. Balk at Modified Plan ----------------------------------------------------- Several creditors filed objections to Bally Total Fitness Holding Corporation and its debtor-affiliates' disclosure statement and accompanying Modified First Amended Joint Prepackaged Plan of Reorganization. A. AGT Crunch Counsel for AGT Crunch Acquisition LLC, Glenn E. Siegel, Esq., at Dechert LLP, in New York, states that the Debtors' proposed Plan is not feasible under Section 1129(a)(11) of the Bankruptcy Code because it does not make adequate allowance for the payment of AGT Crunch's disputed claim. As previously reported, AGT Crunch has a litigation claim in excess of US$10,000,000 against the Debtors. Under the Plan, AGT Crunch's Claim is treated under Class 3 -- Unimpaired Unsecured Claims. Class 3 claimholders are presumed to accept the Plan and are not entitled to vote. Class 3 Claims incurred by the applicable Debtor in the ordinary course of business may be paid in the ordinary course of business in accordance with the terms and conditions of any relating agreements, without further notice to or order of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan. Mr. Siegel notes that in essence, the Plan provides that on the initial distribution date, in full and final satisfaction of the claims, each Holder of an Allowed Class 3 Claim would receive Cash in an amount equal to the Holder's Allowed Class 3 Claim. However, the Plan fails to provide any real reserve for contingent, disputed or liquidate claims, he adds. "In the absence of an adequate reserve, [AGT] Crunch seriously questions whether it will be paid in full, like all other unsecured creditors," Mr. Siegel asks the Court. Moreover, he says, the Plan and its accompanying disclosure statement do not provide any evidence that funds will be available to pay a large litigation judgment. "[A] judgment in the magnitude of AGT Crunch's claim could cause a default under the Debtors' exit financing agreement, Mr. Siegel tells Judge Lifland. B. Messrs. Dwyer and Hillman John W. Dwyer and Lee S. Hillman, former officers of Bally Total Fitness Holding Corporation, states that the Plan with the enhancements provided by Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund L.P. represents a significant advance over the initial plan filed by the Debtors. However, the Plan still falls short of the requirements imposed by the Bankruptcy Code for confirmation of a plan of reorganization in at least four respects, Stephen L. Ascher, Esq., at Jenner & Block LLP, in New York, explains. Specifically, Mr. Ascher says: * the Plan places Messrs. Dwyer and Hillman's indemnification claims in classes consisting of other claims to which they are not substantially similar, contrary to the Bankruptcy Code; * the Plan proposes various amendments to the current and existing Restated Certificate of Incorporation, which is prohibited by Delaware state law, which in turn, governs the affairs of the reorganized company; * Mr. Dwyer's claim for damages arising from the Debtors' failure to honor its obligations under certain options contracts, and Mr. Hillman's claim for damages arising from Bally's failure to maintain a registration statement relating to certain warrants are improperly classified; and * the Plan calls for claims for rejection damages to be placed in a class separate from the Unimpaired Unsecured Claims, contrary to the Bankruptcy Code provisions. Under Bally's amended and restated bylaws, and certain other indemnification agreements, the Debtors agreed to indemnify Messrs. Dwyer and Hillman, Mr. Ascher tells Judge Lifland. When Messrs. Dwyer and Hillman resigned from their positions, their individual separation agreements reaffirmed the Debtors' obligation to indemnify the Former Officers based on their individual acts or omissions during each of their tenure as an officer or director for Bally. Between May 2004 and April 2006, several lawsuits were commenced against the Former Officers relating to their alleged acts or omissions as part of their service as officers or directors of the Debtors. C. Novi Town Center Investors Novi Town Center Investors LLC are parties to an unexpired lease, which the Debtors intend to assume under the Plan. Richard J. Bernard, Esq., at Baker & Hostetler LLP, in New York, states that Novi Town objects to the Debtors' proposed Plan, to the extent that the Plan provides for release by Novi Town of "any claims, demands, debts, rights, causes of Action or liabilities under the Lease which is being assured pursuant to the terms of the Proposed Plan." Mr. Bernard notes that the proposed release improperly fails to contain a similar exclusion and, so, contravenes the requirements of Section 365 of the Bankruptcy Code in respect of cure and adequate assurance of future performance. Novi Town reserves its rights in respect of cure amounts and resolution procedures, Mr. Bernard adds. Novi Town, he explains, has not received payment for the September 2007 rent yet, which constitutes an administrative expense of the Debtors. Novi Town is entitled to payment by the effective date of the Proposed Plan, and would be otherwise required as part of Novi Town's monetary cure. D. Pima County Pima County is a secured creditor in the Debtors' Chapter 11 proceedings asserting US$6,704 for personal property tax, for the year 2007. According to German Yusufov, deputy county attorney for Pima County's civil division, Pima County's Claim continues to accrue interest at a statutory rate of 16% per annum, prorated monthly. Pima County objects to confirmation of the Debtors' proposed Plan because it does not provide for the County's statutory interest rate of 16%, Mr. Yusufov says. E. The Mattone Group The Mattone Group Ltd. and The Mattone Group Jamaica, Co. LLC, are parties to a non-residential real property lease with Jack La Lanne Fitness Centers, Inc., one of the Debtors. The Mattone Group asserts that the Debtors them US$74,296 for basic rent and related expenses under the Lease, which includes fees and expenses incurred by Mattone in connection with the Debtors' Chapter 11 proceedings. The Mattone Group are certain that they will be able to resolve all of their disputes and issues with the Debtors, Andrew I. Silfen, Esq., at Arent Fox LLP, in New York, states. However, in the event a consensual resolution is not achieved, Mattone presents to the Court, their limited objection to the Debtors' proposed Plan. Specifically, The Mattone Group asserts that the Disclosure Statement and the Plan do not indemnify the amounts the Debtors intend to cure on the effective date of the Plan. Thus, even if Mattone were assured that the Debtors intended to assume the Lease, the Plan and the Disclosure Statement provide no mechanism by which Mattone can determine if there is a dispute, and the amount of any discrepancy. If The Mattone Group disputes the cure amount alleged by the Debtors, under the Plan and Disclosure Statement, it could be required to litigate the issue outside the Bankruptcy Court, notes Mr. Silfen. "This is impermissible under the Bankruptcy Code," Mr. Silfen asserts. "It can serve no purpose other than to frustrate the legitimate efforts of Mattone and other landlords to exercise their rights under Section 365 of the Bankruptcy Code." The Mattone Group, therefore, objects to confirmation of the Plan because it would permit the Debtors to avoid their obligations to cure the Lease, if assumed. F. Objecting Landlords Various landlords ask the Court to deny approval of the Debtors' Disclosure Statement, arguing that it doesn't provide adequate information as required under Section 1125 of the Bankruptcy Code. Kevin M. Newman, Esq., at Menter, Rudin & Trivelpiece, PC, in Syracuse, New York, counsel for Inland Commercial Property Management, Inc., states that under the Debtors' proposed Disclosure Statement, the Plan provides that all unexpired leases to which the Debtors are party to, will be deemed assumed on the effective date of the Plan, unless the leases are rejected prior to the Effective Date. Moreover, the Disclosure Statement provides that the Debtors will cure monetary defaults existing under assumed unexpired leases on the Effective Date. However, the Debtors do not identify the amounts they intend to cure in either the Disclosure Statement or the Plan, notes Mr. Newman. "The Disclosure Statement fails to provide the Objecting Landlords with adequate information of the process by which proposed cure amounts will be identified, disputed and paid under the Plan," he says. Mr. Newman also notes that under the Plan, if a dispute exists with respect to any amount necessary to cure the the defaults, the cure amount will be paid upon resolution of the dispute. "Again, there is nothing in the Disclosure Statement or the Plan that identifies the amounts to be paid by the Debtors to cure defaults under assumed leases in order to determine if a dispute exists, nor are any firm deadlines set forth by which disputes must occur," Mr. Newman contends. "Any dispute as to cure amounts to be paid in connection with the assumption of the Leases should be decided by this Court if the parties cannot work out their disputes." Certain Objecting Landlords also object to the Disclosure Statement and Plan to the extent that the Plan restructuring transactions permit the Debtors to assign any of the Leases to non-debtor third parties in a way that eliminates any guarantees that have been executed by the Debtors in connection with the Leases. Dustin P. Branch, Esq., at Katten Muchin Rosenman LLP, in Los Angeles, California, counsel for RREEF USA Funds and West Valley Properties, Inc., contends that the Debtors may not assume the Leases unless there is adequate assurance of future performance, as required by Section 365(b) of the Bankruptcy Code. The Objecting Landlords, and their Leases' cure amounts, if any, are: Objecting Landlords Cure Amounts ------------------- ------------ Inland Commercial Property, managing agent for: Six Corners Shopping Center US$85,576 Park Center Plaza 32,261 Chatham Ridge Shopping Center 22,804 University & Dunlap 176,721 Inland U.S. Management, managing agent for: Towson Circle 56,217 Lincoln Plaza 38,283 Thrifty Payless, Inc. 41,227 PREIT Services LLC, managing agent for: PR North Dartmouth LLC 26,329 PR Prince Georges Plaza LLC - RREEF USA Funds' Deerbrook Shopping Mall 77,000 West Valley Properties Inc.'s The Terraces 5,751 The Taubman Landlords - Sywest Development, asset manager for: Contra Costa Retail Center, LLC 41,472 CLPV, LLC - Hawthorne LP 20,141 Wheaton Plaza Regional Shopping Center LLP 62,362 Centro Property Group - Federal Realty Investment Trust - Simon Property Group Inc. 199,591 Waterways Plaza LLC 185,882 G. High Definition and Waterways High Definition Realty LLC and Waterways Plaza LLC object to the the Debtors' Disclosure Statement and Plan because neither of the two specifically address the effects of a blanket assumption of all leases, and leases in which the Debtors are in default of a non-monetary obligation that cannot be cured. Contrary to the Debtors' assertion that the reorganization process would not affect the landlords of their facilities, the Debtors asked the Court to approve their application to employ Hilco Real Estate LLC as their real estate consultant, notes Mr. Hall. Hilco's employment, he asserts, evidences an intent by the Debtors to utilize the bankruptcy process to affect the rights of the Landlords, and creates doubt that the Debtors intend to comply with Section 365(d)(4) of the Bankruptcy Code. Hence, notes Mr. Hall, the Disclosure Statement does not provide adequate information because it fails to inform creditors that the Debtors have hired a consulting firm whose function is to the change the Debtors' relationship with the Landlords of the Leased properties, even though the Debtors have stated an intent to assume all leases. In addition, High Definition and Waterways Plaza have essentially the same objections to the Disclosure Statement as the Objecting Landlords. Against this backdrop, the High Definition and Waterways Plaza ask the Court to deny: * approval of the Debtors' Disclosure Statement; * confirmation of the Debtors' Plan; and * assumption of the High Definition and Waterways Plaza Lease Agreements. About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre-packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,546 in total liabilities. The Debtors filed their Joint Prepackaged Plan & Disclosure Statement on July 31, 2007. On Aug. 13, 2007, they filed an Amended Joint Prepackaged Plan and on Aug. 17 filed a Modified Amended Prepackaged Plan. The hearing to consider confirmation of the Debtors' prepackaged plan is set for Sept. 17, 2007. (Bally Total Fitness Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) BALLY TOTAL: Files Supplement to Modified First Amended Plan ------------------------------------------------------------ Bally Total Fitness Holding Corporation and its debtor- affiliates delivered to the U.S. Bankruptcy Court for the Southern District of New York in Manhattan a copy of their Liquidation Analysis, to supplement their Modified First Amended Joint Prepackaged Chapter 11 Plan of Reorganization. David S. Heller, Esq., at Latham & Watkins LLP, in Chicago, Illinois, explains that the initial Liquidation Analysis filed on July 31, 2007, inadvertently omitted certain portions. The Debtors' Liquidation Analysis states that the Plan meets the "best interest of creditors" test as set forth in Section 1129(a)(7) of the Bankruptcy Code. The Liquidation Analysis was prepared by the Debtors' management, with the assistance of their professionals, and assumes the case would convert to Chapter 7 soon after initially filing for Chapter 11. The Analysis provides that: * priority unsecured claims are assumed to be paid from the net proceeds available, if any, after the payment of liquidation costs, secured claims, and administrative claims; * Prepetition Senior Notes Claims are assumed to be paid on a pro rata basis from the net proceeds available for all unsecured creditors, plus the pro rata distribution that would be payable with regard to the Prepetition Senior Subordinated Notes Claims absent the subordination provisions in the Prepetition Senior Subordinated Notes Indenture; * although unsecured claims against only Bally Total Fitness Holding Corporation would likely receive a smaller distribution in a liquidation than unsecured claims against the Affiliate Debtors because Bally is a holding company with limited assets, for the purposes of the Liquidation Analysis, it is assumed that all unsecured claims will be paid on a pro rata basis from the net proceeds available for all unsecured creditors; and * no pro rata proceeds are estimated to be available solely for the Prepetition Senior Subordinated Notes Claims. A full-text copy of the Debtors' Liquidation Analysis is available for free at http://researcharchives.com/t/s?234e The Debtors believe the Liquidation Analysis and the conclusions set forth in the Analysis are fair and accurate, and represent management's best judgment with regard to the results of a Chapter 7 liquidation of the Debtors. Bally Board of Directors The Debtors were scheduled to identify the members of their board of directors in a supplemental filing that was supposed to be submitted to the Court on Sept. 7, 2007. However, the Plan Supplement is not yet final, Mr. Heller tells Judge Lifland. The Debtors will file the Plan Supplement as soon as possible, before the confirmation hearing on the Debtors' Plan scheduled for Sept. 17, 2007, Mr. Heller adds. About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre-packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,546 in total liabilities. The Debtors filed their Joint Prepackaged Plan & Disclosure Statement on July 31, 2007. On Aug. 13, 2007, they filed an Amended Joint Prepackaged Plan and on Aug. 17 filed a Modified Amended Prepackaged Plan. The hearing to consider confirmation of the Debtors' prepackaged plan is set for Sept. 17, 2007. (Bally Total Fitness Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) BALLY TOTAL: Asks Court to Deny Prepayment of Premium Claims ------------------------------------------------------------ Last month, the U.S. Bankruptcy Court for the Southern District of New York in Manhattan approved, on a final basis, Bally Total Fitness Holding Corporation and its debtor-affiliates' request to obtain secured postpetition financing for US$292,000,000 from Morgan Stanley Senior Funding Inc. The Court's DIP Order provided the Debtors with authority to enter into a US$292,000,000 DIP financing facility comprised of a US$50,000,000 revolver and a US$242,000,000, pursuant to a superpriority secured DIP financing agreement -- the DIP Credit Agreement. David S. Heller, Esq., at Latham & Watkins LLP, in Chicago, Illinois, states that the DIP Facility has been consummated, and most of the proceeds have been used to repay obligations owed to the Debtors' prepetition secured lenders, under a US$284,000,000 Prepetition Credit Facility. Pursuant to the terms of the DIP Facility, certain Prepetition Secured Lenders that participated in the DIP Facility elected to waive their Prepayment Premium Claims in exchange for the payment of a lender participation fee equal to 0.125% of the greater of their prepetition loan obligations or their financing commitments under the DIP Facility. However, as reflected in the Court's DIP Order, the other Prepetition Secured Lenders retained their right to assert their Prepayment Premium Claims, and the Debtors reserved their right to dispute any of the claims. Accordingly, the Debtors object to the allowance of any Prepetition Premium Claims that may be asserted by a Non-Waiving Prepetition Secured Lender, and ask the Court to deny the payment of the Prepayment Premium Claims. To avoid delay in the refinancing of the Prepetition Credit Facility, the Debtors and JPMorgan Chase Bank, N.A. -- the Prepetition Agent -- on behalf of the Non-Waiving Prepetition Secured Lenders, have agreed to escrow the aggregate amount at issue. Pursuant to the DIP Order, the Parties also agree that: * on or before Sept. 12, 2007, any Non-Waiving Prepetition Secured Lender wishing to assert a Prepayment Premium Claim must file a response to the Debtors' Objection; and * any Non-Waiving Prepetition Secured Lender which fails to file a timely response will be barred from asserting and deemed to have waived its Prepayment Premium Claim. The Court will convene a hearing on Sept. 17, 2007, to determine the allowability of the Prepayment Premium Claims asserted by the Non-Waiving Prepetition Secured Lenders that filed timely responses to the Debtors' Objection. About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre-packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,546 in total liabilities. The Debtors filed their Joint Prepackaged Plan & Disclosure Statement on July 31, 2007. On Aug. 13, 2007, they filed an Amended Joint Prepackaged Plan and on Aug. 17 filed a Modified Amended Prepackaged Plan. The hearing to consider confirmation of the Debtors' prepackaged plan is set for Sept. 17, 2007. (Bally Total Fitness Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) BLOCKBUSTER INC: Names Tom Casey as VP & Chief Financial Officer ---------------------------------------------------------------- Blockbuster Inc. has appointed Thomas M. Casey as the company's new Executive Vice President and Chief Financial Officer. Most recently a managing director for Deutsche Bank Securities, Inc., Mr. Casey was responsible for the bank's retail industry relationships in North America and, in that capacity over the course of the past nine years, served as a strategic financial advisor to some of the world's largest companies in the retail entertainment, food and drug, convenience store, food wholesale and foodservice industries. Prior to Deutsche Bank, Mr. Casey held investment banking positions with Citigroup, Merrill Lynch, and Dillon Read & Co. "Throughout his more than 20-year career, Tom has been instrumental in helping some of the world's largest companies successfully formulate their financial and strategic business plans for the future," said Jim Keyes, Blockbuster Chairman and Chief Executive Officer "We are very excited to have Tom join our executive team and believe he will contribute significantly to our efforts to pursue the profitable transformation of Blockbuster from a video retailer into a completely convenient source for media entertainment." In his new position, Mr. Casey will have responsibility for Blockbuster's financial, accounting and internal audit functions. Mr. Casey earned a Bachelor of Science degree from the U.S. Naval Academy, served as an officer in the U.S. Navy and received his MBA from Harvard Business School. As of the end of September, Larry Zine, Executive Vice President, Chief Financial Officer and Chief Administrative Officer, who has been with the company since 1999, will be retiring from Blockbuster. "We appreciate Larry's leadership and his many contributions to Blockbuster over the past eight years," said Mr. Keyes. About Blockbuster Inc. Headquartered in Dallas, Texas, Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.blockbuster.com/-- provides in-home movie and game entertainment, with more than 9,000 stores throughout the Americas, Europe, Asia and Australia. The company maintains operations in Brazil, Mexico, Denmark, Italy, Taiwan, Australia, among others. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2007, Moody's Investors Service downgraded Blockbuster Inc.'s corporate family rating to Caa1, its senior secured credit facilities to B3, and speculative grade liquidity rating to SGL-4. In addition, Moody's affirmed the senior subordinated notes rating at Caa2. Moody's said the rating outlook remains negative. INT'L RECTIFIER: S&P Holds BB Corporate Rating on CreditWatch ------------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB' corporate credit rating on International Rectifier Corp. remains on CreditWatch with negative implications. The company has stated that it cannot timely file its form 10-K for the June 30, 2007 fiscal year, because of an ongoing investigation, led by International Rectifier's audit committee, into the company's financial reporting at a foreign subsidiary and related material weaknesses in internal controls. As a result of the investigation, as well as accounting issues related to restructuring costs and tax matters, the company will need to restate prior years' financial statements. "The ratings originally were placed on CreditWatch on April 9, 2007, when the matter was first disclosed; subsequently, the company extended the period of time during which its financial results were not to be relied upon, extending back to fiscal 2002," said S&P's credit analyst Bruce Hyman. Additionally, the company's chief financial officer and certain sales executives have left the company, and the Chief Executive Officer has been placed on leave. The company has further found that cash tax liabilities may exceed US$75 million, while its cash outlays related to the investigation have been substantial. While the quality of both accounting and corporate governance remain analytical concerns, the company is believed to have sufficient operating liquidity (net cash was over US$500 million at Dec. 31, 2006, the last-filed financial statement date) and has no debt, which should cushion the downside risk to the corporate credit rating. S&P's will continue to monitor events to assess the effect on our ratings on International Rectifier. Headquartered in El Segundo, California, International Rectifier Corporation (NYSE:IRF) -- http://www.irf.com/-- provides enabling technologies for products that work smarter, run cooler, and raise the world's productivity-per-watt. It has manufacturing facilities in the U.S., Mexico, United Kingdom, Germany and Italy; and has subsidiaries in Japan and Singapore. ================= N I C A R A G U A ================= XEROX CORPORATION: To Acquire Advectis for US$32 Million -------------------------------------------------------- Xerox Corporation plans to buy Advectis(R), Inc. for US$32 million. Advectis is the provider of one of the mortgage industry's most widely-used solutions for electronic document collaboration. Xerox's expertise in document outsourcing and services led the company to Advectis, a privately-owned business based in Atlanta. In a predominately paper-based industry, Advectis' Web-based BlitzDocs Collaboration Suite helps lenders, brokers and investors manage the process needed to underwrite, audit, collaborate, deliver and archive loan documents electronically. Taking paper out of the process, the BlitzDocs(R) patented technology helps users reduce costs associated with the lending process, deliver better service, decrease credit risk by improving documentation processes and build a competitive advantage in capturing new loan applications. "Anyone who has ever bought a home knows that the mortgage business is dependent on paper. Filling out an extensive number of forms is time and labor-intensive work," said John Kelly, president, Xerox Global Services North America. "We're looking to help clients reduce costs and transform their business by offering a better experience for both end-users and operations. Xerox's expertise in automating document processes is an ideal fit with Advectis' BlitzDocs paperless solution for mortgages. In an industry that is ripe for change, Advectis offers technology that improves productivity for its users while giving lenders better control of their processes." According to Craig Focardi, research area director for the retail banking practice of research firm TowerGroup, "Enterprise content management systems are reducing the great paper chase in loan origination, where a lender controls the paper loan file and manually redistributes documents multiple times to multiple parties. Lenders are increasingly adopting document imaging and electronic content management as a major area of cost savings, faster loan processing and improved customer service." The amount of paper associated with this industry leads to inefficient processes which, best case, are productivity drains and, worst case, can lead to a loss of control in the quality of the loans. TowerGroup estimates document management costs in loan origination totaled US$3.2 billion last year. A BlitzDocs electronic loan folder mirrors the paper loan folder used today but improves efficiencies in the loan cycle, allowing mortgage participants to view and process online documents anytime, anywhere. Clients benefit from a network with more than 35,000 broker shops, the top seven mortgage insurance companies and four of the top due diligence providers. "With this acquisition, Advectis is positioned to create even stronger offerings, services and technologies for our clients," said Greg Smith, co-founder and chief executive officer of Advectis. "Partnering with Xerox makes perfect sense for the future of our business. Our combined expertise and resources means increased collaboration and decreased loan processing costs for BlitzDocs users." Advectis was founded in 2000 and currently employs about 41 people, most of whom are based at the company's headquarters in Atlanta. Upon completion of the acquisition, all employees are expected to join Xerox. Smith will remain head of the organization, reporting to Kelly. Xerox's all-cash purchase of Advectis also includes an additional performance-based supplement to the sale price. The acquisition is expected to close in the next 30 days, subject to customary closing conditions. Xerox's industry-leading document technology and services portfolio includes consulting and outsourcing services, records management, digital imaging, e-discovery for litigation support and managed services in more than 160 countries. Through its acquisition strategy, Xerox is identifying successful companies whose offerings align with Xerox's commitment to innovation and reducing the complexity of document management. Last year, Xerox acquired Amici LLC, a leading provider of electronic-discovery services, primarily supporting litigation and regulatory compliance, and XMPie, which provides variable information software for the graphic arts and marketing industries. About Xerox Corp. Headquartered in Stamford, Connecticut, Xerox Corp. -- http://www.xerox.com/-- develops, manufactures, markets, services and finances a range of document equipment, software, solutions and services. Xerox operates in over 160 countries worldwide and distributes products in the Western Hemisphere through divisions, wholly owned subsidiaries and third-party distributors. The company maintains operations in France, Japan, Italy, Nicaragua, among others. * * * As reported in the Troubled Company Reporter-Latin America on April 4, 2007, Fitch Ratings has affirmed Xerox Corp.'s and its subsidiary's ratings: Xerox Corp. -- Trust preferred securities at 'BB'; -- Issuer Default Rating at 'BBB-'; -- Unsecured credit facility at 'BBB-'; and -- Senior unsecured debt at 'BBB-'. Xerox Credit Corp. -- Issuer Default Rating at 'BBB-'; and -- Senior unsecured debt at 'BBB-'. As reported in the Troubled Company Reporter-Latin America on April 4, 2007, Standard & Poor's Ratings Services placed its ratings on Xerox Corp., including the 'BB+' corporate credit rating, on CreditWatch with positive implications. The CreditWatch placement reflects the company's announcement that it has reached an agreement in principle to acquire Global Imaging Systems Inc. for approximately US$1.5 billion in cash. =========== P A N A M A =========== CHIQUITA BRANDS: Eyes Higher Operating Expenses in Third Quarter ---------------------------------------------------------------- Chiquita Brands International expects its operating expenses to increase US$30 million in the third quarter 2007, from the third quarter of 2006, due to higher costs, the Business Courier of Cincinnati reports. Chiquita Brands told the Business Courier that the costs include expenses for: -- new product introductions, -- brand support, -- merchandising, and -- food safety. Higher banana prices in most of its markets wouldn't offset increased expenses in the third quarter 2007, the Business Courier says, citing Chiquita Brands. According to Chiquita Brands' news release, no further charges will be filed on the company's protection payments to Colombian terrorist groups. The Business Courier notes that these are increases in banana prices: -- 5% in North American markets, -- 17% on a US dollar basis in core European markets, -- 12% in Asia Pacific and the Middle East, and -- 43% in trading markets, which include European and Mediterranean nations not belonging to the European Union. Chiquita Brands Chief Executive Officer and Chairperson Fernando Aguirre said in a news release, "Despite the near-term issues, we believe we are on the right track and expect to report a greater level of year-on-year improvement in the fourth quarter, which would continue the positive year-on-year trend." Chiquita Brands told the Business Courier that hurricanes Dean and Felix "minimally affected" its banana supplies. Meanwhile, "European supplies suffered significant damage, which will produce more favorable pricing." 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 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. ===================== P U E R T O R I C O ===================== ALLIED WASTE: Inks Exclusive Contract with PSSI Stadium ------------------------------------------------------- Allied Waste Industries has been awarded an exclusive contract by PSSI Stadium Corporation-Heinz Field to manage waste services at the stadium, which is the home of the Pittsburgh Steelers and the University of Pittsburgh Panthers football teams. As part of the waste services contract, which extends through 2014, Allied Waste will provide Heinz Field with reliable, efficient waste removal services. In conjunction with the six-year service contract, Allied Waste will become an advertising partner at Heinz Field, giving the company the ability to extend its brand to concourses and certain other areas of the facility. Heinz Field has 65,050 seats, approximately 7,300 club seats and 1,544 seats within 129 suites, as well as 47 concession locations. "Allied Waste is proud to have been awarded this contract and we look forward to exceeding the expectations of the Pittsburgh Steelers organization and fans alike in managing the waste generated at this dynamic public facility," said Gus Lee, District Manager of Allied Waste. "As part of our commitment to the Pittsburgh Steelers organization, which is well known and respected for the close attention and care it pays to all aspects of their operations, we will be focused not only on delivering exceptional operational service and expertise to ensure an enhanced fan experience at Heinz Field, but also will seek to recycle the highest possible percentage of the waste generated by the facility." As part of the start up activities under this service contract, Allied Waste will conduct a recycling audit to determine how to maximize the volume of material that can be recycled out of the facility. Headquartered in Scottsdale, Arizona, Allied Waste Industries Inc. -- http://www.alliedwaste.com/and http://www.disposal.com/ -- (NYSE: AW) provides waste collection, transfer, recycling, and disposal services for residential, commercial, and industrial customers in over 100 major markets spanning 37 states and Puerto Rico. The company has 24,000 employees. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings has upgraded the following ratings on Allied Waste Industries Inc. (NYSE: AW) and its Allied Waste North America and Browning-Ferris Industries subsidiaries, as: Allied Waste Industries Inc. -- Issuer Default Rating to 'B+' from 'B'. Allied Waste North America -- IDR to 'B+' from 'B'; -- Secured credit facility rating to 'BB+/RR1' from 'BB/RR1'; -- Senior secured notes rating to 'BB/RR2' from 'B+/RR3'. Browning-Ferris Industries -- Senior secured notes rating to 'BB/RR2' from 'B+/RR3'. FOOT LOCKER: S&P Holds BB+ Corporate Rating on CreditWatch ---------------------------------------------------------- Standard & Poor's Ratings Services said that its 'BB+' corporate credit rating, on New York City-based specialty footwear retailer Foot Locker Inc. will remain on CreditWatch with negative implications, where they were placed on Aug. 18, 2006. This statement follows the company's announcement that it may not remain in compliance with its fixed-charge coverage ratio based on actual second-quarter and anticipated second-half performance. "We expect that Foot Locker will be able to obtain a waiver or amendment for the fixed-charge coverage ratio, but we will monitor developments as they occur," said S&P's credit analyst David Kuntz. Additionally, the company's restricted payment provision may prohibit dividend payments at current levels. Headquartered in New York City, Foot Locker, Inc. (NYSE: FL) -- http://www.footlocker-inc.com/-- retails athletic footwear and apparel. The company operates approximately 3,900 athletic retail stores in 17 countries in North America, The Netherlands and Australia under the brand names Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, and Champs Sports. The company also has about 350 Footaction stores in the US and Puerto Rico, which sell footwear and apparel to young urbanites. ================================= T R I N I D A D & T O B A G O ================================= HILTON HOTELS: Launches Cash Tender Offers for US$1.8-Bil. Debt --------------------------------------------------------------- Hilton Hotels Corporation has commenced cash tender offers for approximately US$1.8 billion of its outstanding unsecured debt securities. The Securities comprise the 8.000% Quarterly Interest Bonds due 2031 and the 7.430% Chilean Inflation-Indexed (UF) Notes due 2009. The tender offer for each series of Securities is being conducted concurrently with a related consent solicitation to amend the terms of such Securities and the indenture pursuant to which the Securities were issued. The tender offers and consent solicitations are being conducted in connection with the previously announced merger agreement that provides for the acquisition of Hilton by BH Hotels LLC, an entity controlled by investment funds affiliated with The Blackstone Group L.P. The completion of the tender offers and consent solicitations is not a condition to completion of the Merger. The offer for each issue of Securities will expire at 8:00 a.m., New York City time, on Oct. 11, 2007, unless extended or earlier terminated by Hilton. Holders who wish to receive the total consideration for the Securities referred to below must validly tender and not validly withdraw their Securities at or prior to 5:00 p.m., New York City time, on Sept. 25, 2007, unless extended or earlier terminated. Holders tendering their Securities will be required to consent to proposed amendments to the Securities, the Indenture and the related officers' certificates, which would eliminate substantially all of the restrictive covenants contained in the Securities, the Indenture and the related officers' certificates, eliminate certain events of default, modify or eliminate covenants regarding consolidations, mergers and sale of assets and company reports and modify or eliminate certain other provisions, including, without limitation, certain provisions relating to defeasance contained in the Securities, the Indenture and the related officers' certificates. Holders may not tender their Securities without also delivering consents and may not deliver consents without also tendering their Securities. The total consideration for each US$1,000 principal amount of Notes validly tendered and not validly withdrawn pursuant to each tender offer is the price (calculated as described in the Offer to Purchase referred to below) equal to (i) the sum of (a) the present value, determined in accordance with standard market practice, on the Scheduled Payment Date (as defined in the Offer to Purchase referred to below) of US$1,000 on the applicable maturity date for the Notes specified in the table below plus (b) the present value on the Scheduled Payment Date of the interest that would be payable on, or accrue from, the last interest payment date prior to the Scheduled Payment Date until the applicable maturity date for such Notes, in each case determined on the basis of a yield to such maturity date equal to the sum of (A) the yield to maturity on the applicable benchmark security, as calculated by Bear, Stearns & Co. Inc. in accordance with standard market practice, based on the bid-side price of such reference security as of 11:00 a.m., New York City time, on Oct. 5, 2007, unless modified by Hilton in its sole discretion, as displayed on the page of the Bloomberg Government Pricing Monitor plus (B) the Applicable Spread (as shown in the table below), minus (ii) accrued and unpaid interest to, but not including, the Scheduled Payment Date. The total consideration for each US$25.00 principal amount of Bonds validly tendered and not validly withdrawn pursuant to the tender offer for the Bonds is US$25.125. The total consideration for each CLP50,000 original principal amount of CLP Notes validly tendered and not validly withdrawn pursuant to the tender offer for the CLP Notes is US$119.53. The total consideration for each CLP50,000 original principal amount of CLP Notes represents a price of approximately US$1,028.72 per US$1,000 Adjusted Principal Amount, converted at the Observed Exchange Rate (as defined in the CLP Notes) on Sept. 11, 2007. The foregoing translation is solely for the convenience of the holders of CLP Notes; the CLP Notes Total Consideration is fixed and will not be adjusted for exchange rate movements or changes in the Adjusted Principal Amount during the pendency of the Offer for such CLP Notes. The total consideration for the Securities described above includes a consent payment of US$30.00 per US$1,000 principal amount of Notes, US$1.00 per US$25.00 principal amount of Bonds and US$3.00 per CLP50,000 original principal amount of CLP Notes. Subject to the terms and conditions of the tender offers and the consent solicitations, the consent payment will be made on the payment date in respect of Securities validly tendered and not validly withdrawn and as to which consents to the proposed amendments are delivered at or prior to the Consent Payment Deadline. Holders of the Securities must validly tender and not validly withdraw Securities at or prior to the Consent Payment Deadline in order to be eligible to receive the applicable total consideration (which includes the applicable consent payment described in the foregoing sentence) for such Securities purchased in the tender offers. Holders who validly tender their Securities after the Consent Payment Deadline and at or prior to the Offer Expiration Date will be eligible to receive the tender offer consideration which is an amount, paid in cash, equal to the applicable total consideration less the applicable consent payment. In each case, holders whose Securities are accepted for payment in the tender offers will receive accrued and unpaid interest in respect of such purchased Securities from the last interest payment date preceding the payment date to, but not including, such payment date. Each tender offer and consent solicitation is being made independently of the other tender offers and consent solicitations and Hilton reserves the right to terminate, withdraw or amend each tender offer and consent solicitation independently of the other tender offers and consent solicitations at any time and from time to time. The tender offers and consent solicitations relating to the Securities are made upon the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated Sept. 12, 2007, and the related Consent and Letter of Transmittal. The tender offers and consent solicitations are subject to the satisfaction of certain conditions, including receipt of consents sufficient to approve the proposed amendments and the Merger having occurred, or such Merger occurring substantially concurrent with the Offer Expiration Date. Further details about the terms and conditions of the tender offers and the consent solicitations are set forth in the Offer to Purchase. Hilton has retained Bear, Stearns & Co. Inc. and UBS Investment Bank to act as the lead Dealer Managers for the tender offers and lead Solicitation Agents for the consent solicitations, and they can be contacted at (877) 696-BEAR (toll-free) ((212) 272- 5112 (collect)) and (888) 719-4210 (toll-free) ((203) 719-4210 (collect)), respectively. Banc of America Securities LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. Incorporated are also acting as Dealer Managers and Solicitation Agents in connection with the tender offers and the consent solicitations. The Offer to Purchase and other documents relating to the tender offers and consent solicitations are expected to be distributed to holders beginning today. Requests for documentation may be directed to Global Bondholder Services Corporation, the Information Agent, which can be contacted at (212) 430-3774 (for banks and brokers only) or (866) 924-2200 (for all others toll- free). Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's announcement that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. Standard & Poor's rating upgrade for Hilton Hotels in March 2007 incorporated the expectation that the company would sell a meaningful level of additional assets over the near term, which would likely lead to additional debt reduction. Still, Standard & Poor's is encouraged by the expected transaction multiple related to today's announcement. If the lodging transaction market remains strong, enabling Hilton Hotels to generate substantial proceeds from remaining asset sales, if these proceeds are used for debt reduction, and if the lodging environment remains strong, an outlook revision to positive could be considered as 2007 progresses. Any movement signaling the potential for a higher rating will depend on Hilton Hotels's commitment to maintaining credit measures aligned with higher ratings over the lodging cycle. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. ================= V E N E Z U E L A ================= CMS ENERGY: Earns US$33 Million in Second Quarter Ended June 30 --------------------------------------------------------------- CMS Energy Corp. reported net income of US$33.0 million for the second quarter of 2007, compared to net income of US$72.0 million in the same quarter of 2006. The company's adjusted second quarter net income, which excludes net earnings or losses primarily associated with businesses sold, was US$18.0 million, compared to net income of US$45.0 million for the second quarter of 2006. The lower quarterly earnings reflect the fact that certain tax benefits that occurred in 2006 did not repeat in 2007. For the first six months of 2007, CMS Energy reported a net loss of US$182.0 million, compared to net income of US$45.0 million for the first half of 2006. The 2007 six-month results include losses of US$292.0 million, primarily linked to sales of the company's international businesses, including discontinued operations. On an adjusted basis, the company had net income of US$110.0 million for the first half of 2007, compared to net income of US$11.0 million for the first six months of 2006. David Joos, CMS Energy's president and chief executive officer, said the company completed asset sales with about US$1.60 billion of gross proceeds during the second quarter, and it continues to implement its strategy of selling non-strategic businesses and focusing on its Michigan utility, Consumers Energy. "We continue to have excellent operational performance at Consumers Energy and our remaining non-utility businesses. We closed this week on the last major asset sale in our international portfolio and expect to complete our international sales plan by the end of the year. The proceeds from these sales have allowed us to achieve our capital structure goal at the utility and improvements in our credit ratings," Joos said. At June 30, 2007, the company's consolidated balance sheet showed US$14.69 billion in total assets, US$2.47 billion in current liabilities, US$3.85 billion in non-current liabilities, US$54 million in minority interests, US$5.58 billion in long- term debt, US$232 million in non-current portion of capital and finance lease obligations, US$294 million in preferred stock, and US$2.20 billion in common stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free at http://researcharchives.com/t/s?2340 About CMS Energy Headquartered in Jackson, Michigan, CMS Energy Corp. (NYSE: CMS) -- http://www.cmsenergy.com/-- is a company that has an electric and natural gas utility, Consumers Energy, as its primary business and also owns and operates independent power generation businesses. The company has offices in Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2007, Fitch placed the ratings of CMS Energy Corp. and Consumers Energy Co., including CMS Energy Corp.'s 'BB-' Issuer Default Rating and Consumer Energy Co.'s 'BB+' Issuer Default Rating, on Rating Watch Positive. The Rating Watch Positive reflects the continuing reduction of business risk that resulted from the substantial completion of the asset sale and restructuring program and the company's plan to reduce parent debt by US$650 million using a portion of the US$1.60 billion of proceeds from non-strategic asset sales that closed in 2007. HARVEST NATURAL: Signs Conversion Deal w/ Corporacion Venezolana ---------------------------------------------------------------- Harvest Natural Resources, Inc. has signed the conversion contract with Corporacion Venezolana del Petroleo S.A. (CVP) relating to the formation of Petrodelta, S.A. in Venezuela. Pursuant to the conversion contract, Harvest Vinccler, S.C.A. (HVSCA), an 80-percent-owned Harvest affiliate, will transfer all of its rights under its operating service agreement and its operating assets to Petrodelta upon the formation of Petrodelta and the receipt of a transfer decree. The transfer decree establishes the right to develop the Uracoa, Tucupita and Bombal fields, operated by HVSCA since 1992, and the Isleno, Temblador and El Salto fields recently assigned to Petrodelta. HNR Finance B.V., an 80-percent-owned Harvest affiliate, will own 40 percent of Petrodelta and CVP, a 100-percent-owned PDVSA affiliate, will own the remaining 60 percent. Petrodelta will operate the fields under a 20-year grant from the Venezuelan government. Harvest President and Chief Executive Officer, James A. Edmiston, said, "Upon receipt of the transfer decree when signed by President Chavez, the conversion process will be complete. Subsequently, Petrodelta will invoice PDVSA for oil and gas delivered from April 1, 2006 through June 30, 2007. Net of a one-third royalty, estimated revenue for the oil and gas delivered is approximately US$275 million. After providing for operating expenses and taxes since April 2006 and providing for working capital to fund future operational and capital costs, we expect Petrodelta to distribute the balance of funds to Harvest and CVP." Corporacion Venezolano del Petroleo's President and PDVSA Director, Eulogio Del Pino, said, "Petrodelta is a key mixed company with substantial growth potential. The addition of the Isleno, Temblador and El Salto fields provides Petrodelta with an asset base to significantly increase production over the next three to four years." Harvest Natural Resources, Inc. -- http://www.harvestnr.com/-- is an international oil and gas company that seeks and develops large resources in countries that others may perceive to be challenging. Its producing operations are conducted principally through the company's 80% owned Venezuelan subsidiary, Harvest Vinccler, California, which operates the South Monagas Unit in Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on May 7, 2007, Harvest Natural Resources said in a statement that it incurred a US$6.5-million loss in the first quarter 2007, compared to US$13.9-million earnings in the first quarter 2006. On Dec. 7, 2004, Standard & Poor's Ratings Services withdrew its single-B ratings on Harvest Natural Resources Inc. Following the redemption of the remaining US$85 million of its 2007, the company has no rated obligations. NORTHWEST AIRLINES: Court Rejects US$4.2MM Bonuses for Attorneys ---------------------------------------------------------------- Judge Allan Gropper of the the U.S. Bankruptcy Court for the Southern District of New York denied requests filed by Northwest Airlines Corp.'s lead law firm, Cadwalader, Wickersham & Taft LLP, for payment of a US$3,500,000 bonus, according to The Associated Press. Judge Gropper held that for the lawyers to deserve a so-called fee enhancement, their work should have a remarkable result that couldn't be expected from lawyers being paid their regular fees, the AP says. The judge said average hourly rates of US$500 already provided adequate compensation. According to the report, the Court further denied payment of a US$700,000 bonus to Otterbourg, Steindler, Houston & Rosen, P.C., a firm representing creditors. However, Cadwalader and Otterbourg, with 22 other law firms and advisers in Northwest's Chapter 11 cases obtained approval for their regular fees aggregating US$118,800,000 and expenses totaling US$5,400,000. Judge Gropper directed Northwest to pay Cadwalader US$35,400,000 in fees and US$2,200,000 in expenses; and Otterbourg, US$7,000,000 in fees and US$210,231 in expenses. Gropper has not yet ruled on FTI Consulting Inc.'s request for payment of US$1,000,000, on top of US$6,000,000 in fees, and Lazard Freres & Co.'s request for US$3,500,000 on top of US$5,200,000 in fees, the AP says. Lazard has argued that a bonus had been negotiated at the start of the case. About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' Plan. The Plan took effect May 31, 2007. * * * As reported in the Troubled Company Reporter on June 4, 2007, Standard & Poor's Ratings Services raised its ratings on Northwest Airlines Corp. and its Northwest Airlines Inc. subsidiary, including raising the long-term corporate credit ratings on both entities to 'B+' from 'D', following their emergence from Chapter 11 bankruptcy proceedings. S&P said the rating outlook is stable. In addition, S&P assigned a 'BB-' bank loan rating, one notch above the corporate credit rating, with a '1' recovery rating, to Northwest Airlines Inc.'s $1.225 billion bankruptcy exit financing, based on S&P's expectation of a full recovery of principal in the event of a second Northwest bankruptcy. That bank facility converted from a debtor-in-possession credit facility; S&P withdrew the 'BBB-' rating on the DIP facility. PETROLEOS DE VENEZUELA: Former Officials Criticize Firm ------------------------------------------------------- Venezuelan state-owned oil firm Petroleos de Venezuela SA's former executives have criticized the company's current leadership at Gente del Petroleo opposition group's forum in Caracas, Business News Americas reports. BNamericas relates that leadership in Petroleos de Venezuela changed drastically after President Hugo Chavez accused the then-company officials of leading a shortly lived coup in April 2002. Former Petroleos de Venezuela chief and former oil and energy minister Humberto Calderon Berti told BNamericas that a recent nationwide marketing campaign couldn't conceal the firm's problems. Mr. Calderon commented to reporters, "The refineries are in bad shape, thousands of wells capable of production are closed and there is no planning going on for the goal to increase daily production to 5.8 million barrels per day by 2012. If they had used the plans we developed in 1999, Venezuela would already be producing 5.8 million barrels per day." Former Petroleos de Venezuela director and current Gente del Petroleo group head Eddie Ramirez told BNamericas that the state-oil company "bordered mid-term bankruptcy." Mr. Ramirez explained to BNamericas, "If President Hugo Chavez stays in power, PDVSA [Petroleos de Venezuela] will go bankrupt in four or five years. The current situation within the company is not sustainable." Almost all of Petroleos de Venezuela's widely disclosed plans wouldn't materialize, BNamericas notes, Alberto Quiros Corradi, industry analyst and former Shell Venezuela chief. Mr. Corradi commented to BNamericas, "The plans for the Gasoducto del Sur pipeline, the refineries to be built abroad, the idea that Venezuela could export gas in the mid-term, they're all empty promises." Meanwhile, a former Petroleos de Venezuela director admitted to BNamericas that the situation may not be that bad. He explained to BNamericas, "I do not think PDVSA will go bankrupt. Remember, as Rockefeller said, the best business is a well-run oil company and the second best is a badly-managed oil company." According to BNamericas, Petroleos de Venezuela has increased its participation in joint ventures operating in the Orinoco heavy crude belt. President Chavez is also trying to pass constitutional reforms that give the government more control in the natural gas sector. The report says that several current operators in Venezuela admitted that increased state participation is fair. A company head commented to BNamericas, "There have been changes in the economic terms, but that is happening around the world. The new JV [joint venture] terms are very competitive with the few comparable countries with these types of reserves." 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. PETROLEOS DE VENEZUELA: Exxon Files for Arbitration with ICSID -------------------------------------------------------------- Exxon Mobil Corp. has filed for arbitration with the International Centre for Settlement of Investment Disputes to resolve a conflict over its seized assets in Venezuela's Orinoco oil belt. According to published reports, the Texas-based oil company's 41.67% stake at Cerro Negro heavy-crude project had a net-book value of about US$750 million before Petroleos de Venezuela, the state-owned oil company, expropriated Exxon's assets in June. Exxon is one of the two oil majors that walked away from Venezuela's offer of a minority stake in the heavy-crude projects as a result of the nationalization of the sector. Petroleos de Venezuela is to have at least 60% in each of the four Orinoco projects. Other operators like Chevron Corp., BP Plc and Total SA, have all signed joint ventures with the state firm, giving up their former majority in the fields. Previous compensation talks for the expropriated assets with Venezuelan authorities came to an end without reaching an agreement that is desirable to both parties. "I'm glad to see them do it," Don Hodges, who manages the US$700 million Hodges Fund in Dallas, which holds shares of both Exxon Mobil and ConocoPhillips, told Bloomberg News. "You don't know what the outcome will be, but you'd rather see them resist it than just lay down and say, `Help yourself to it.'" An analyst interviewed by Bloomberg said that for Exxon to get compensation from the Venezuelan government could be difficult. The arbitration request with ICSID can take several years before it could be resolved. About ExxonMobil Exxon Mobil Corporation operates as a petroleum and petrochemicals company. It primarily engages in the exploration, production, and sale of crude oil and natural gas; and manufacture, transportation, and sale of petroleum products. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on 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. PETROLEOS DE VENEZUELA: Nat'l Assembly OKs Joint Venture Pacts -------------------------------------------------------------- The Venezuelan national assembly said in a statement that it has authorized the legislation regulating the conversion of Orinoco heavy-crude belt service operating accords into state-controlled joint ventures with state-run oil firm Petroleos de Venezuela SA. Business News Americas relates that the law will be finalized when it is signed by Venezuelan President Hugo Chavez and published in the official gazette. Petroleos de Venezuela will have an 80% share in all Orinoco projects upon final authorization. BNamericas says that the new joint ventures covered by the new law are: -- Petro Anzoategui (Petrozuata), -- Petro Cedeno (Sincor), -- Petro Piar (Ameriven), and -- Petro Monagas (Cerro Negro). According to BNamericas, these firms signed accords transferring assets in the Orinoco belt to joint ventures controlled by Petroleos de Venezuela: -- US oil company Chevron, -- Norway's Statoil, -- France's Total, -- UK's BP, -- Italy's Eni, -- China's Sinopec, and -- Venezuela's Inelectra. BNamericas notes that according to an article of the legislation, all assets of former service agreement operators must be surrendered to Petroleos de Venezuela if private firms fail to reach an agreement with the company. US companies ExxonMobil and ConocoPhillips failed to reach agreements with Petroleos de Venezuela and left the country. President Chavez would determine where to distribute the assets. Talks will soon be finalized with ExxonMobil and ConocoPhillips, BNamericas states, citing oil and energy minister and Petroleos de Venezuela chief Rafael Ramirez. However, he said that firms that don't stay in the country wouldn't be compensated. 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. SUN MICROSYSTEMS: To Buy Cluster File's IP & Business Assets ------------------------------------------------------------ Sun Microsystems, Inc. has announced a definitive agreement pursuant to which Sun will acquire the majority of Cluster File Systems, Inc.'s intellectual property and business assets, including the Lustre File System. By acquiring Cluster File Systems, Inc., the leading parallel file system provider, Sun intends to add support for the Solaris(TM) Operating System on Lustre and plans to continue enhancing Lustre on Linux and Solaris OS across multi vendor hardware platforms. As previously announced in July 2007, Sun also plans to deliver Lustre servers on top of Sun's industry-leading open source Solaris ZFS solution, which is one of the fastest growing storage virtualization technologies in the marketplace. The agreement further extends Sun's momentum in open source and Solaris and complements the company's current direction to provide the industry's most complete end-to-end High Performance Computing (HPC) storage solution. "This acquisition, coupled with the recent announcement of the Sun Constellation System, the most open petascale capable HPC architecture in the industry, shows our long-term commitment to the open source community and leadership in HPC," said John Fowler, executive vice president, Systems Group, Sun Microsystems, Inc. "Adding the Lustre technology to our already broad and innovative product line-up will strengthen our portfolio and enable Sun and our partners to offer customers an even more complete and open HPC solution." "Lustre provides network centric scalability for storage that is well matched with the complete and open Sun Constellation System architecture for petascale levels of performance. This is a clean and extremely scalable approach to provide high bandwidth and low latency access to large amounts of data for HPC applications," says Peter Braam, Chief Executive Officer, Cluster File System, Inc. "Our team is tremendously excited about joining Sun and furthering the mission of extreme scale computing. We have already worked together to deliver several large clusters, for example the fastest supercomputer in Asia at Tokyo Tech and we're now in the process of installing a 500+ TeraFlop and 1.7 PetaByte cluster at Texas Advanced Computing Center." Based on proven, open industry standard technologies, Sun's HPC solutions can quickly scale to allow for rapid deployment and faster time-to-results than competing HPC solutions. Sun's HPC portfolio provides a complete solution for developing, deploying, running and managing the complete range of applications for HPC, from entry level commercial usages to the largest supercomputers in the world. Sun customers who use Sun's HPC offerings have achieved capital expenditure savings of 30 percent, improved energy consumption by 70 percent, and improved time-to-results by as much as 75 percent. The transaction is subject to customary closing conditions and is expected to be completed in the beginning of Sun's second fiscal quarter, beginning Oct. 1, 2007. The terms of the deal were not disclosed as the transaction is immaterial to Sun's earnings per share. Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Chile, Colombia, Brazil, Argentina, Mexico and Venezuela in Latin America. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande de los Santos, Christian Toledo, and Pamella Rita K. Jala, 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 * * *