/raid1/www/Hosts/bankrupt/TCRLA_Public/070921.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 21, 2007, Vol. 8, Issue 188
Headlines
A R G E N T I N A
ALITALIA SPA: Denies Holding Takeover Talks with Air France-KLM
ANTONIO BARRILARO: Proofs of Claim Verification Ends on Nov. 2
ARGENDAI SA: Proofs of Claim Verification Deadline is Nov. 15
CEREALES ZUBILLAGA: Proofs of Claim Verification Ends on Nov. 21
CLEAN BAYRES: Proofs of Claim Verification Deadline is Nov. 22
CORDON AZUL: Trustee Filing Individual Reports on Dec. 17
EDICIONES LATINOAMERICANAS: Claims Verification Ends on Dec. 12
EQUIS SA: Trustee to File General Report on April 24, 2008
EXHIBIT SA: Trustee Filing Individual Reports on Feb. 6, 2008
GASTRO GRB: Proofs of Claim Verification is Until Oct. 15
INSTITUTO NIVEL: Proofs of Claim Verification is Until Oct. 9
ROCHIFARM SRL: Seeks Reorganization Okay in Buenos Aires Court
SKY COMPANY: Proofs of Claim Verification Deadline is Nov. 12
TELCOM ARGENTINA: Investing US$30 Million on Small Firm Services
B A H A M A S
JETBLUE AIRWAYS: Picks Glenn Hipp as VP for Supply Chain & Fuel
METROPOLITAN BANK: Inks Partnership Deals with Reuters, Misys
B E R M U D A
SCOTTISH RE: Paying US$0.4531 Per Share Dividend on Oct. 15
B R A Z I L
AAR CORP: Reports US$306 Million Net Income in First Quarter
ALERIS INT'L: Fitch Corrects Ratings Posted on Sept. 18
AMERICAN AIRLINES: Pay Raises to Depend on Company's Performance
BANCO DAYCOVAL: Capital Research Increases Stake in Bank
BANCO NACIONAL: Launches Financing Package with Banco do Brasil
BANCO NACIONAL: Grants BRL37.0 Bln. Loans in First Eight Months
CONSTRUTORA NORBERTO: Obtains US$200-Mln financing from IDB
GENERAL MOTORS: Labor Talks Slows Down Over Planned VEBA Trust
GERDAU AMERISTEEL: Chaparral Offering Obtains 99.96% Consents
NORTEL NETWORKS: Hires Joel Hackney to Lead Enterprise Solutions
REXAM PLC: FAS Rejects Application for Rostar Acquisition
* BRAZIL: Will Auction Rich Oil Blocks in November
* BRAZIL: Assisting Four Countries on Biofuel Production
C A Y M A N I S L A N D S
GENIE INVESTMENT: Holding Final Shareholders Meeting Today
GLASOR SA: Trustee Stops Verifying Proofs of Claim Today
IASIA ALLIANCE: Holding Final Shareholders Meeting Today
IC MEDIA: Proofs of Claim Filing Ends Today
IC MEDIA: Final Shareholders Meeting is Today
LEHMAN BBT: Final Shareholders Meeting is Today
MACQUARIE AUSTRALIA: Proofs of Claim Filing Deadline is Tomorrow
OHMIYATORO: Final Shareholders Meeting is Today
OPAL: Proofs of Claim Filing Deadline is Today
OPAL: Holding Final Shareholders Meeting Today
PARMALAT SPA: Earns EUR244.3 Million for First Half 2007
PRIMUS JAPAN: Holding Final Shareholders Meeting Today
RABO DUYFKEN: Final Shareholders Meeting is Today
RENAISSANCE J: Holding Final Shareholders Meeting Today
TRIGON ADVISERS: Proofs of Claim Filing Ends Today
TRIGON ADVISERS: Final Shareholders Meeting is Today
TRIGON ASIAN: Holding Final Shareholders Meeting Today
TRIGON ASIAN CREDIT: Holding Final Shareholders Meeting Today
VF CAYMANS I: Holding Final Shareholders Meeting Today
C H I L E
LEVI STRAUSS: Tender Offer for Senior Notes Expires on Oct. 17
C O L O M B I A
BANCOLOMBIA: May Surpass 2006 Earnings, Analysts Say
D O M I N I C A N R E P U B L I C
CLOROX COMPANY: Declares US$0.025 Per Share Quarterly Dividend
* DOMINICAN REPUBLIC: To Produce Biofuel with Brazil & US Aid
E C U A D O R
PETROECUADOR: Assets & Installations Insurance Tender Is Void
* ECUADOR: Eyes New Concession Contracts with Mobile Operators
E L S A L V A D O R
* EL SALVADOR: To Produce Biofuel with Brazil & US Aid
G R E N A D A
* GRENADA: Receiving Oil from Venezuela Next Month
G U A T E M A L A
IMAX CORP: Signs Ten-Theatre Deal with China's Wanda Cinema
H A I T I
* HAITI: To Produce Biofuel with Brazil & US Aid
J A M A I C A
DIGICEL GROUP: St. Lucia Unit Says Phones May be Used as Modem
M E X I C O
BAUSCH & LOMB: Launches Tender Offers for Debt Securities
CKE RESTAURANTS: Reports September Same-Store Sales
CKE RESTAURANTS: Earns US$11.7 Million in Quarter Ended Aug. 13
CHAPARRAL STEEL: Gerdau Gets Consents from 99.99% of Noteholders
DISTRIBUTED ENERGY: Creates Cell Stacks for Hamilton Sundstrand
EMPRESAS ICA: Will Buy 50% Stake in Viabilis
FIRST DATA: Prices Tender Offers for Outstanding Debt Securities
GREAT PANTHER: Hires Charles Brown as Chief Operating Officer
INT'L RECTIFIER: Gets NYSE Notice Due to 10-K Filing Delay
URS CORP: S&P Puts Bank Loan Rating at BB+ on US$2.1 Bil. Notes
WENDY'S INTERNATIONAL: More Buyers Lining Up, WSJ Says
WENDY'S INTERNATIONAL: Franchisees Want Say in Sale Proceedings
P U E R T O R I C O
ADELPHIA COMMS: Wants to Close 7 More Affiliates' Ch. 11 Cases
ADELPHIA COMMS: Reaches US$167.5-Mln Settlement with Deloitte
AVIS BUDGET: Selects Halogen Software to Help Future Growth
GENESCO INC: Shareholders Approve Acquisition by Finish Line
GENESCO INC: UBS Halts Finish Line Deal Pending Additional Info
NUTRITIONAL SOURCING: U.S. Trustee Appoints 7-Member Committee
NUTRITIONAL SOURCING: Committee Wants FTI as Financial Advisor
NUTRITIONAL SOURCING: Wants Nod on Mesirow Fin'l as Consultant
STEWART ENTERPRISES: Board OKs US$25MM Stock Repurchase Program
STEWART ENTERPRISES: Board Declares US$0.025 Per Share Dividend
V E N E Z U E L A
BANCO MERCANTIL: Fitch Affirms Issuer Default Ratings at B+
BANCO OCCIDENTAL: Fitch Affirms Issuer Default Ratings at B-
PETROLEOS DE VENEZUELA: Former Official Frets on Output Decline
PETROLEOS DE VENEZUELA: SCAN Completes Seismic Program with Firm
PETROLEOS DE VENEZUELA: Shipping Oil to Grenada Next Month
* VENEZUELA: Investing US$66.5MM on Scrap Processing Units
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: Denies Holding Takeover Talks with Air France-KLM
---------------------------------------------------------------
Alitalia S.p.A. denied holding talks to sell the Italian
government's 39.9% stake in the airline to Air France-KLM,
Thomson Financial reports.
Alitalia stressed that the relationship between the carriers has
only been the bilateral partnership and within the SkyTeam
alliance, which involves regular meetings between the two
management teams.
Jean-Cyril Spinetta, Air France chairman and CEO, confirmed to
the Financial Times that the parties have not commenced takeover
talks.
As reported in the TCR-Europe on Sept. 14, 2007, Alitalia
chairman Maurizio Prato said 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 the end of September or early October. Mr. Prato said he
will conduct a first selection among potential buyers by the end
of October before starting an evaluation phase.
"If Mr. Prato wants to talk to us, we will listen carefully,"
Mr. Spinetta told FT. "He has a clear mission to sell this
stake, but how he sees this problem I don't know."
"The interest is always the same," Mr. Spinetta added. "The
Italian market is very strong. There are huge business traffic
flows and tourist leisure flows. The potential is very high."
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, EUR168 million in 2005, and
EUR625.6 million in 2006.
ANTONIO BARRILARO: Proofs of Claim Verification Ends on Nov. 2
--------------------------------------------------------------
Martin Stolkiner, the court-appointed trustee for Antonio
Barrilaro SCA's bankruptcy proceeding, verifies creditors'
proofs of claim until Nov. 2, 2007.
Mr. Stolkiner will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 26 in Buenos Aires, with the assistance of Clerk
No. 52, 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 Antonio Barrilaro 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 Antonio Barrilaro's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Stolkiner is also in charge of administering Antonio
Barrilaro's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Antonio Barrilaro SCA
Melgar 38
Buenos Aires, Argentina
The trustee can be reached at:
Martin Stolkiner
Avenida Cordoba 1367
Buenos Aires, Argentina
ARGENDAI SA: Proofs of Claim Verification Deadline is Nov. 15
-------------------------------------------------------------
Andrea Krikorian, the court-appointed trustee for Argendai SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
Nov. 15, 2007.
Ms. Krikorian will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 33, 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 Argendai 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 Argendai's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Ms. Krikorian is also in charge of administering Argendai's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Argendai SA
Peru 263
Buenos Aires, Argentina
The trustee can be reached at:
Andrea Krikorian
Montevideo 711
Buenos Aires, Argentina
CEREALES ZUBILLAGA: Proofs of Claim Verification Ends on Nov. 21
----------------------------------------------------------------
Felipe Florio, the court-appointed trustee for Cereales
Zubillaga SA's reorganization proceeding, verifies creditors'
proofs of claim until Nov. 21, 2007.
Mr. Florio 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.
3, will determine if the verified claims are admissible, taking
into account the trustee's opinion, and the objections and
challenges that will be raised by Cereales Zubillaga and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Cereales Zubillaga'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 Aug. 21, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The debtor can be reached at:
Cereales Zubillaga SA
Juncal 2748
Buenos Aires, Argentina
The trustee can be reached at:
Felipe Florio
Uruguay 618
Buenos Aires, Argentina
CLEAN BAYRES: Proofs of Claim Verification Deadline is Nov. 22
--------------------------------------------------------------
Liliana Beatriz Rodriguez, the court-appointed trustee for Clean
Bayres S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until Nov. 22, 2007.
Ms. Rodriguez 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 Clean Bayres 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 Clean Bayres'
accounting and banking records will be submitted in court on
March 24, 2008.
Ms. Rodriguez is also in charge of administering Clean Bayres'
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Clean Bayres S.A.
Eduardo Acevedo 521
Buenos Aires, Argentina
The trustee can be reached at:
Liliana Beatriz Rodriguez
San Martin 66
Buenos Aires, Argentina
CORDON AZUL: Trustee Filing Individual Reports on Dec. 17
---------------------------------------------------------
Lydia Elsa Albite, the court-appointed trustee for Cordon Azul
S.R.L.'s bankruptcy proceeding, will present the validated
claims as individual reports in the National Commercial Court of
First Instance in Buenos Aires on Dec. 17, 2007.
Ms. Albite verifies creditors' proofs of claim until
Nov. 5, 2007. She will also submit a general report containing
an audit of Cordon Azul's accounting and banking records in
court on March 3, 2008.
Ms. Albite is also in charge of administering Cordon Azul's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Cordon Azul S.R.L.
Avenida Callao 1470
Buenos Aires, Argentina
The trustee can be reached at:
Lydia Albite
Tacuari 119
Buenos Aires, Argentina
EDICIONES LATINOAMERICANAS: Claims Verification Ends on Dec. 12
---------------------------------------------------------------
Benigno Fernandez, the court-appointed trustee for Ediciones
Latinoamericanas SRL's bankruptcy proceeding, verifies
creditors' proofs of claim until Dec. 12, 2007.
Mr. Fernandez will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 21 in Buenos Aires, with the assistance of Clerk
No. 41, 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 Ediciones Latinoamericanas
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 Ediciones
Latinoamericanas' accounting and banking records will be
submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Fernandez is also in charge of administering Ediciones
Latinoamericanas' assets under court supervision and will take
part in their disposal to the extent established by law.
The debtor can be reached at:
Ediciones Latinoamericanas SRL
Avenida San Juan 3928
Buenos Aires, Argentina
The trustee can be reached at:
Benigno Fernandez
Vedia 1624
Buenos Aires, Argentina
EQUIS SA: Trustee to File General Report on April 24, 2008
----------------------------------------------------------
Claudina Beatriz Badino, the court-appointed trustee for Exhibit
S.A.'s bankruptcy proceeding, will present a general report
containing an audit of Equis S.A.'s accounting and banking
records in the National Commercial Court of First Instance in
Mendoza on April 24, 2008.
Ms. Badino verified creditors' proofs of claim and presented the
validated claims as individual reports in court.
Ms. Badino is also in charge of administering Equis' assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Equis S.A.
Sargento Cabral 709, Ciudad de Mendoza
Mendoza, Argentina
The trustee can be reached at:
Claudina Beatriz Badino
Pasaje Gemes 146, Ciudad de Mendoza
Mendoza, Argentina
EXHIBIT SA: Trustee Filing Individual Reports on Feb. 6, 2008
-------------------------------------------------------------
Amalia Mild, the court-appointed trustee for Exhibit S.A.'s
bankruptcy proceeding, will present the validated claims as
individual reports in the National Commercial Court of First
Instance in Buenos Aires on Feb. 6, 2008.
Ms. Mild verifies creditors' proofs of claim until
Nov. 20, 2007. She will also submit a general report containing
an audit of Exhibit's accounting and banking records in court on
March 19, 2008.
Ms. Mild is also in charge of administering Exhibit's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Amalia Mild
Lavalle 2024
Buenos Aires, Argentina
GASTRO GRB: Proofs of Claim Verification is Until Oct. 15
---------------------------------------------------------
Oscar Alberto Vertzman, the court-appointed trustee for Gastro
GRB SA's bankruptcy proceeding, verifies creditors' proofs of
claim until Oct. 15, 2007.
Mr. Vertzman will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 21 in Buenos Aires, with the assistance of Clerk
No. 41, 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 Gastro GRB 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 Gastro GRB's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Vertzman is also in charge of administering Gastro GRB's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Gastro GRB SA
Tucuman 893
Buenos Aires, Argentina
The trustee can be reached at:
Oscar Alberto Vertzman
Bartolome Mitre 3120
Buenos Aires, Argentina
INSTITUTO NIVEL: Proofs of Claim Verification is Until Oct. 9
-------------------------------------------------------------
Carlos Brezinski, the court-appointed trustee for Instituto
Nivel Profesional SRL's bankruptcy proceeding, verifies
creditors' proofs of claim until Oct. 9, 2007.
Mr. Brezinski 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 Instituto Nivel 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 Instituto Nivel's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Brezinski is also in charge of administering Instituto
Nivel's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Instituto Nivel Profesional SRL
Hipolito Yrigoyen 1189
Buenos Aires, Argentina
The trustee can be reached at:
Carlos Brezinski
Lambare 1140
Buenos Aires, Argentina
ROCHIFARM SRL: Seeks Reorganization Okay in Buenos Aires Court
--------------------------------------------------------------
Rochifarm S.R.L. has requested for reorganization approval after
failing to pay its liabilities since August 2006.
The reorganization petition, once approved by the court, will
allow Rochifarm to negotiate a settlement with its creditors in
order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance No. 19 in Buenos Aires. Clerk No. 37 assist in this
case.
The debtor can be reached at:
Rochifarm S.R.L.
Avenida Cabildo 3111
Buenos Aires, Argentina
SKY COMPANY: Proofs of Claim Verification Deadline is Nov. 12
-------------------------------------------------------------
Ruben Scaletta, the court-appointed trustee for Sky Company's
bankruptcy proceeding, verifies creditors' proofs of claim until
Nov. 12, 2007.
Mr. Scaletta will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 33, 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 Sky Company 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 Sky Company's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Scaletta is also in charge of administering Sky Company's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Sky Company SA
Suipacha 967
Buenos Aires, Argentina
The trustee can be reached at:
Ruben Scaletta
Calle Piedras 1077
Buenos Aires, Argentina
TELCOM ARGENTINA: Investing US$30 Million on Small Firm Services
----------------------------------------------------------------
Telecom Argentina has invested some US$30 million on the
launching of services for small and medium-sized enterprises,
Argentine tech news daily Infobae reports.
Business News Americas relates that Telecom Argentina's "Telecom
Business" services include:
-- fixed and mobile telephony,
-- data transmission, and
-- Internet.
According to BNamericas, the new services needed investment in
new infrastructure and expansion of the sales and customer
service staff.
Telecom Argentina residential and small and medium-sized
enterprise unit's director Simone Battiferri commented to
BNamericas, "We are aiming to offer our current clients
solutions that until now were only available to large
corporations, as well as adding new clients."
To Telecom Argentina, the small and medium-sized enterprise is a
growing market that is responsible for 20% of telecom sales in
Argentina, BNamericas notes.
Telecom Argentina has about 4.1 million active lines and over
600,000 Asymmetric Digital Subscriber Lines in the residential
segment, BNamericas states.
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina. It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo. France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake. Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).
* * *
As reported on Oct 11, 2006, Standard & Poor's Ratings Services
raised Telecom Argentina S.A.'s counterparty credit rating to
B+/Stable/ from B/Stable following the upgrade of the Republic
of Argentina to 'B+' from 'B'.
=============
B A H A M A S
=============
JETBLUE AIRWAYS: Picks Glenn Hipp as VP for Supply Chain & Fuel
---------------------------------------------------------------
JetBlue Airways Corp. has appointed Glenn Hipp to the position
of Vice President - Supply Chain and Fuel. Mr. Hipp will be
responsible for company-wide sourcing efforts, corporate
purchasing, as well as JetBlue's fuel procurement strategy. He
will report to John Harvey, JetBlue's Executive Vice President
and Chief Financial Officer.
"We are extremely pleased to announce the appointment of Glenn
Hipp as our new Vice President - Supply Chain and Fuel," said
Mr. Harvey. "Glenn's 20-plus years of procurement, finance and
operations leadership further strengthens JetBlue's low-cost
advantage. He will be a tremendous asset to JetBlue as we
continue to exercise cost discipline throughout the
organization."
Mr. Hipp joins JetBlue from Southwest Airlines in Dallas, where
since 1993 he has held various positions of increasing
responsibility in the Fuel Department, most recently as Director
of Fuel Purchasing and Inventory Management. Prior to
Southwest, Mr. Hipp was the Vice President of Equipment for
Triton Fuel Group in Dallas, responsible for the construction,
procurement, management, and maintenance of a fleet of aviation
refuelers.
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.
METROPOLITAN BANK: Inks Partnership Deals with Reuters, Misys
-------------------------------------------------------------
METROPOLITAN Bank & Trust Company moves to strengthen its
infrastructure by signing up with new partners that will boost
its capabilities in treasury operations and risk management.
Sealing deals with Misys and Reuters, Metrobank is seen to
further upgrade its core treasury system, improve process
automation, and risk controls through top-of-the-line solutions
used globally. The Bank will use Misys Opics Plus and Reuters
Kondor+ systems for its treasury and risk management solutions,
respectively.
Metrobank tapped Reuters to set-up a scalable market risk
management infrastructure that enables the bank to meet
regulatory requirements under the Basel II program. "The risk
management infrastructure will ensure that the bank's market,
liquidity, and structural risks related to its Treasury
activities and balance sheet are measured and properly
monitored. Risk management-related reports as required by the
BSP will also be promptly generated," explained Metrobank Chief
Risk Officer Bernardito Lapuz.
In acquiring Misys Opics Plus, Fernand Antonio Tansingco,
executive vice president of Metrobank commented that, "Our
volumes are growing fast and this tool will give us the
capability to comply with regulations, at the same/ time manage
profitably new products that are introduced in the cash and
derivatives market." Tansingco added further, "The Bank will
also benefit from reduced costs since the system will process
more transactions in a shorter time and manage operational risk
from increased levels of automation."
About Metrobank
Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the
Metrobank Group. Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network. Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.
The bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.
* * *
As reported on Nov. 6, 2006, that Moody's Investors Service
revised the outlook of Metropolitan Bank & Trust Co.'s foreign
currency long-term deposit rating of B1 and foreign currency
subordinated debt rating of Ba3 from negative to stable.
The outlooks for Metropolitan Bank's foreign currency Not-Prime
short-term deposit rating and bank financial strength rating of
D remain stable.
On Sept. 21, 2006, Fitch Ratings upgraded Metrobank's Individual
rating to 'D' from 'D/E'. All the bank's other ratings were
affirmed:
* Long-term Issuer Default rating 'BB-' -- with a stable
Outlook,
* Short-term rating 'B,'
* Support rating '3.
On March 3, 2006, Standard and Poor's Rating Service assigned a
CCC+ rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.
=============
B E R M U D A
=============
SCOTTISH RE: Paying US$0.4531 Per Share Dividend on Oct. 15
-----------------------------------------------------------
Scottish Re Group Limited's Board of Directors has declared a
cash dividend of US$0.4531 per Perpetual Preferred Share
outstanding to be paid on Oct. 15, 2007 to Perpetual Preferred
Share shareholders of record as of the close of business on
Sept. 28, 2007.
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.
On June 30, 2007, Scottish Re reported total assets of US$13.6
billion and shareholder's equity of US$1.2 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 27, 2007, Moody's Investors Service affirmed the ratings of
Scottish Re Group Limited, with the outlook changed to stable
from positive, including its Senior unsecured shelf of (P)Ba3;
its subordinate shelf of (P)B1; its junior subordinate shelf of
(P)B1; its preferred stock of B2; and its preferred stock shelf
of (P)B2.
===========
B R A Z I L
===========
AAR CORP: Reports US$306 Million Net Income in First Quarter
------------------------------------------------------------
AAR has reported fiscal 2008 first quarter net sales of US$306.0
million and income from continuing operations of US$15.3
million, or US$0.36 per diluted share. Sales grew 27% from
US$240.2 million last year, and income from continuing
operations increased 25% from US$12.2 million in the prior year.
AAR achieved double-digit sales growth in all four of the
company's operating segments. Sales to commercial customers
increased 26%, and sales to defense customers grew 30%, year-
over-year.
The 26% increase in sales to commercial customers was driven by
strength in supply chain programs and aftermarket parts sales,
increased heavy maintenance activity, including the acquisition
of Reebaire, and continued momentum in the aircraft sales and
leasing business. During the quarter, the company launched an
additional line of heavy maintenance for Southwest Airlines at
its Indianapolis Maintenance Center. In addition, the company
nearly doubled the size of its aircraft fleet through the
acquisition of eighteen 737-400 aircraft and one 747-400
aircraft with joint venture partners.
The 30% growth in sales to defense customers was attributable to
robust demand for mobility systems products, the acquisition of
Brown International in April 2007 and strength in performance-
based logistics programs. AAR was awarded a US$162 million
contract for specialized shipping/storage containers, shelters
and accessories to support several branches of the U.S. military
and federal civilian agencies. In addition, the company
received a US$31 million order to provide specialized shelters
to the U.S. Army and was selected by the U.S. Army to provide 25
cargo handling systems for CH-47 (Chinook) helicopters.
Shipments on these new contracts will commence during the second
quarter.
Gross profit margin was 18.5% for the first quarter compared to
17.9% last year, excluding impairment charges recorded during
the first quarter of fiscal 2007. Selling, general and
administrative expenses increased US$4.8 million year-over-year,
reflecting the impact of acquisitions and increased spending to
support growth, as well as investments in operational
improvement initiatives across the company. Selling, general
and administrative expenses declined to 10.0% of sales from
10.7%. Net interest expense increased US$0.4 million year-over-
year related to investments made in the business, including
acquisitions and aircraft purchases. The effective income tax
rate increased to 34% during the first quarter from 30% a year
ago due to the expiration of certain tax benefits.
"We are pleased with the strong sales growth we generated in the
first quarter, and fiscal 2008 is off to a solid start," said
David P. Storch, Chairman and Chief Executive Officer of AAR
CORP. "We believe that our top line momentum combined with the
margin improvement initiatives underway will contribute to
margin expansion going forward. Further, our banks recognize
the Company's significant achievements and agreed to an increase
in our revolving credit facility from US$140 million to US$250
million as we explore new opportunities for growth, increasing
our market presence and improving our operating results."
AAR will hold its quarterly conference call at 10:30 a.m. CDT on
September 19, 2007. The conference call can be accessed by
calling 866-219-5264 from inside the U.S. or 703-639-1118 from
outside the U.S. A replay of the call will be available by
calling 888-266-2081 from inside the U.S. or 703-925-2533 from
outside the U.S. (access code 1140068) from 2:30 p.m. CDT on
Sept. 19, 2007 until 11:59 p.m. CDT on Sept. 26, 2007.
About AAR
AAR CORP -- http://www.aarcorp.com/-- a Chicago suburb near
O'Hare International Airport, employs approximately 3,500 people
at more than 40 locations around the world. In Latin America,
the company has a sales office in Rio de Janeiro, Brazil.
* * *
As reported in the Troubled Company Reporter on Dec. 4, 2006,
Moody's upgraded ratings of AAR Corporation, corporate family
rating and senior notes to Ba3 from B1, in response to improving
financial performance resulting form the strong commercial and
defense aviation supply and repair environment.
ALERIS INT'L: Fitch Corrects Ratings Posted on Sept. 18
-------------------------------------------------------
Standard & Poor's Ratings Services has revised its outlook on
Aleris International Inc. to negative from stable. At the same
time S&P has affirmed its 'B+' corporate credit rating and the
other ratings on the company. Concurrently, S&P has assigned a
'B-' rating to the company's recent US$105 million 9% senior
notes due 2014, which are an add-on to the company's existing
US$600 million 9% senior notes due 2014.
Pro forma total debt outstanding at June 30, 2007, approximates
US$2.8 billion.
"The outlook revision reflects recent operating weakness in the
company's North American global rolled and extruded products
segment and the expectation that this trend will continue in the
near term," said S&P's credit analyst Marie Shmaruk.
During the three months ended June 30, 2007, volumes in this
segment declined 20% year-over-year, primarily because of weaker
demand for building and construction, distribution, and
transportation products. This, combined with increased debt
balances due to the company's aggressive growth strategy, has
resulted in credit measures that are weak for the rating.
"We could lower the ratings in the near term if the company's
debt levels remain high and performance weakens materially
because of intensified competition or market conditions
deteriorate," Ms. Shmaruk said. "An outlook revision back to
stable would depend on management improving and maintaining a
financial profile more consistent with the rating through
earnings growth and more moderate debt levels."
Headquartered in Beachwood, Ohio, Aleris International Inc.
(NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled
aluminum products and offers aluminum recycling and the
production of specification alloys. The company also
manufactures value-added zinc products that include zinc oxide,
zinc dust and zinc metal. The company operates 42 production
facilities in the United States, Brazil, Germany, Mexico and
Wales, and employs approximately 4,200 employees.
AMERICAN AIRLINES: Pay Raises to Depend on Company's Performance
----------------------------------------------------------------
American Airlines has proposed to the Transport Workers Union
that pay raises for mechanics and other ground employees be
linked to the company's performance, the Associated Press
reports.
According to the AP, the union is analyzing the proposal.
Union President James Little said in a statement posted on the
group's Web site that American Airlines had failed to reward
workers for the improvement in its financial performance,
resulting to the wearing away of cooperation between the airline
and the union.
The AP notes that American Airlines would launch negotiations
with the union for a new contract by April 2008. American
Airlines is in the early stages of talks with pilots. Its
negotiation with flight attendants is expected within the next
several months.
American Airlines should consider immediate and "non-
traditional" compensation to boost labor relations, Mr. Little
said.
Based in Fort Worth, Texas, American Airlines Inc., a wholly
owned subsidiary of AMR Corp., operates the largest scheduled
passenger airline in the world with service throughout North
America, the Caribbean, Latin America, Europe and Asia.
American Airlines flies to Belgium, Brazil, Japan, among others.
* * *
As reported in the Troubled Company Reporter on May 25, 2007,
Standard & Poor's Ratings Services assigned its 'CCC+' rating to
American Airlines Inc.'s (B/Positive/--) US$125 million
Dallas/Fort Worth International Airport special facility revenue
refunding bonds, series 2007, due 2030. The bonds are
guaranteed by American's parent, AMR Corp. (B/Positive/B-2), and
are secured by payments made by American to the airport
authority. Proceeds are being used to refund the outstanding
revenue bonds, series 1992 (rated 'CCC+'), whose rating was
withdrawn.
BANCO DAYCOVAL: Capital Research Increases Stake in Bank
--------------------------------------------------------
Banco Daycoval said in a statement that US investment management
company Capital Research and Management Company has increased
its stake in the bank to 5.17% of preferred shares from 1.86%.
Meanwhile, Banco Daycoval launched an initial public offering in
June 2007 and raised some BRL1.09 billion through the sale of
64.3 million preferred shares, Business News Americas relates.
BNamericas notes that Banco Daycoval's profits, excluding costs
from the initial public offering, increased by 164% to BRL46.5
million in the second quarter 2007, from the same quarter in
2006.
Banco Daycoval's assets totaled BRL5.09 billion as of June 2007,
BNamericas states, citing the Brazilian central bank.
Banco Daycoval, a Brazilian midsize bank, was founded in 1989.
It operates 15 branches concentrated in the south and southeast
of the country. Its main business is commercial lending to
small and medium enterprises, with a diversified portfolio in
agribusiness, automotives, commerce, foods, financial services,
general services, manufacturing, and textiles. Daycoval
established its trade finance department in 1995 to satisfy the
increasing demand for trade finance instruments.
As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Standard & Poor's Ratings Services removed its
long-term counterparty credit rating on Banco Daycoval S.A. from
CreditWatch Positive, where it was placed on June 11, 2007, and
raised the rating to 'BB-'. At the same time, S&P affirmed its
'B' short-term counterparty credit rating on the bank. S&P said
the outlook was stable.
BANCO NACIONAL: Launches Financing Package with Banco do Brasil
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
launched funding package BB Proesco with Brazilian federal bank
Banco do Brasil to encourage reduced power consumption, Business
News Americas reports, citing Banco do Brasil's senior analyst
Maria de Fatima Furst.
Ms. Furst commented to BNamericas, "BB [Banco do Brasil] and
BNDES [Banco Nacional] are united in supporting energy-
efficiency projects. The BB Proesco financing is open to
companies that develop projects to reduce energy consumption and
for commercial and industrial users."
According to BNamericas, Banco Nacional and Banco do Brasil are
offering 72-month loans with a 24-month grace period.
Ms. Furst told BNamericas, "We are financing up to 90% of each
project."
Ordinary Banco Nacional loans have a longer maturity and finance
up to 80% of a project, BNamericas says, citing Ms. Furst.
Banco Nacional and Banco do Brasil are also funding studies and
buying equipment, which includes:
-- solar heaters,
-- air conditioners,
-- pumps, and
-- fans.
"This program is restricted to projects that substitute existing
structures, that is, companies or industries which want to
engage in power saving, not companies implementing new plants,"
Ms. Furst told BNamericas.
About Banco do Brasil
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
About Banco Nacional
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
BANCO NACIONAL: Grants BRL37.0 Bln. Loans in First Eight Months
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it increased the granting of new loans 35.2% to
BRL37.0 billion in the first eight months of 2007, from the same
period in 2006.
Business News Americas relates that Banco Nacional's loan
approvals grew 38.5% year-on-year to BRL55.2 billion in the
first eight months of this year, compared to the same period
last year. Loan requests increased 23.1% to BRL75.6 billion.
New loans for infrastructure projects rose 42.3% to BRL13.2
billion. Loan approvals for that segment increased 132% to
BRL22.7 billion.
According to BNamericas, the loans Banco Nacional granted grew
35% to BRL61.73 billion in the 12 months ended August 2007,
compared to the previous 12-month period. Approvals increased
40% to BRL89.7 billion, while requests rose 27% to BRL120
billion.
The report says that Banco Nacional's loans to the trade and
service sector rose 101% to BRL4.91 billion in the 12 months
ended August 2007, from the previous 12-month period. Lending
for infrastructure projects grew 33% to BRL20.9 billion. The
bank's loans to small and medium-sized enterprises increased 35%
to BRL61.7 billion.
BNamericas notes that Banco Bradesco handled BRL4.25 billion in
Banco Nacional funds in the January-August 2007 period. Banco
do Brasil handled about 3.83 billion of the funds, while
Unibanco handled BRL2.52 billion.
"Financial institutions passed along" BRL23.3 billion in loans
from Banco Nacional in the first eight months of 2007,
BNamericas states.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
CONSTRUTORA NORBERTO: Obtains US$200-Mln financing from IDB
-----------------------------------------------------------
The Inter-American Development Bank has approved a partial
credit guarantee for the American International Group, covering
up to 50 percent of its net exposure to a portfolio of surety
bonds for existing and new eligible projects undertaken by
Construtora Norberto Odebrecht S.A. and its operating
subsidiaries in various IDB borrowing member countries in Latin
America and the Caribbean. CNO is the largest engineering and
construction company in Brazil.
The Bank will provide a partial credit guarantee for an
aggregate amount up to US$200 million to cover 50% of AIG's net
exposure under surety bonds -- such as bid, performance, advance
payment, retention, payment and maintenance bonds -- issued on
behalf of CNO and its subsidiaries.
The surety bond market for Latin America and the Caribbean is
characterized by a relatively small number of players, of which
AIG is a major market participant. Due to consolidation in the
industry and withdrawal of players in recent years, surety-
bonding capacity in the region is scarce and capacity-
constrained, and this affects the competitiveness of Latin
American contractors and their ability to provide the surety
bonds required by project owners.
CNO's active participation in the infrastructure sector in the
region is increasing, as evidenced by its growing backlog of
projects of approximately US$7.8 billion by March 31, 2007.
Gaining access to a reliable source of surety bonding capacity
for its projects would enhance its capacity and competitiveness
as a key player in the regional infrastructure development.
The IDB expects the operation to provide much needed surety-
bonding capacity to CNO for its engineering and construction
contracts in Latin America and the Caribbean. Additionally, the
program will contribute to reduce the "infrastructure gap" in
Latin America and the Caribbean by increasing the execution
capacity of an important regional engineering and construction
contractor.
This transaction is also expected to have a significant
catalytic and demonstration effect, leading to transactions of a
similar nature.
Construtora Norberto Odebrecht S.A. is Brazil's largest
engineering and construction company and a major one in the
region. With approximately US$3.5 billion of total revenues in
2006, it is also the largest exporter of services in Brazil.
AIG is the largest insurance company in the world and a key
player in the surety markets. It has been CNO's leading source
of surety bonds for the last 16 years, issuing more than US$11
billion of surety bonds on its behalf. This will represent the
first time that AIG accesses surety capacity from a multilateral
agency.
The IDB is the leading source of long-term financing for
economic and social development programs in Latin America and
the Caribbean. Its Structured and Corporate Finance Department
is responsible for loans and guarantees made directly to private
businesses.
Construtora Norberto is a leading Latin American engineering and
construction company fully owned by the Odebrecht Group, one of
the 10 largest Brazilian private groups. Construtora Norberto
is the world's largest builder of hydroelectric plants, of
sanitary and storm sewers, water treatment and desalination
plants, transmission lines and aqueducts. The Group's main
businesses are heavy engineering and construction based in Rio
de Janeiro, Brazil, and Braskem S.A., its
chemicals/petrochemicals company, based in Sao Paulo, Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 15, 2007, Fitch Ratings has assigned a 'BB+' foreign and
local currency Issuer Default Rating and 'AA(bra)' long-term
national rating to Construtora Norberto Odebrecht S.A. Fitch
has also assigned 'BB+' to CNO's US$200.4 million perpetual
bonds. The Ratings Outlook for all corporate ratings is Stable.
GENERAL MOTORS: Labor Talks Slows Down Over Planned VEBA Trust
--------------------------------------------------------------
Labor talks between General Motors Corp. and the United Auto
Workers has slowed down as the parties discuss on a proposal to
create a trust that would shoulder more than $90 billion in
health-care benefits GM, Ford Motor Co., and Chrysler LLC
owe to a large number of union retirees, The Wall Street Journal
reports.
Complicated details of the trust -- called a VEBA, for voluntary
employees' beneficiary association -- have derailed the talks,
however, WSJ's sources say GM and the UAW are closer on the
thorny issue of funding such a trust than they were last week.
According to the Journal, questions regarding the issue involve,
among others, what to do if health-care inflation exceeds
expectations, the proper way to estimate the cost of providing
benefits to an individual and whether the auto makers would get
money back if Washington enacts universal health coverage.
GM was picked by the UAW as lead negotiator on a new four-year
labor contract.
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on May 28, 2007,
Standard & Poor's Ratings Services placed General Motors Corp.'s
corporate credit rating at B/Negative/B-3.
At the same time, Moody's Investors Service affirmed GM's B3
Corporate Family Rating and B3 Probability of Default Rating,
and maintained its SGL-3 Speculative Grade Liquidity Rating.
The rating outlook remains negative, according to Moody's.
GERDAU AMERISTEEL: Chaparral Offering Obtains 99.96% Consents
-------------------------------------------------------------
Gerdau Ameristeel Corporation has received consents from the
holders of approximately US$299,885,000 million in aggregate, or
99.96% in aggregate, of Chaparral Steel Company's outstanding
10% Senior Notes due 2013 as of 5:00 p.m., New York City time,
on Sept. 14, 2007, in connection with its tender offer and
consent solicitation for such Notes.
The consents received exceeded the number needed to approve the
adoption of the proposed amendments to the indenture under which
the Notes were issued.
The total consideration for the Notes was determined as of
2:00 p.m., New York City time, on Sept. 14, 2007, using the bid-
side yield on the 3.625% U.S. Treasury Note due July 15, 2009 as
displayed on the Bloomberg Government Pricing Monitor Page PX4
plus 50 basis points, less accrued and unpaid interest to, but
not including, the Early Settlement Date.
The yield on the Reference Security was 4.107% and the tender
offer yield was 4.607%. Accordingly, the total consideration
for each US$1,000 principal amount of Notes validly tendered and
not withdrawn at or prior to 5:00 p.m., New York City time, on
the Early Consent Date is $1,139.25.
The Total Consideration includes a consent payment of US$30 per
US$1,000 principal amount of the Notes, which will be payable
only in respect of the Notes purchased that were validly
tendered and not withdrawn at or prior to the Early Consent
Date.
Holders whose Notes are accepted for payment will also be paid
accrued and unpaid interest from the most recent interest
payment date to, but not including, the applicable Settlement
Date.
Based on the consents received, Chaparral, the guarantors and
the trustee under the indenture governing the Notes have entered
into a supplemental indenture that will, once operative,
eliminate substantially all of the restrictive covenants in the
Note indenture and certain of the events of default, well as
modify certain other provisions contained therein.
The supplemental indenture became operative on Sept. 18,
2007, the Early Settlement Date, which is the date on which the
company will accept for payment and pay for the Notes validly
tendered and not withdrawn on the Early Consent Date.
Holders who have not yet tendered their Notes may tender until
5:00 p.m., New York City time, on Sept. 28, 2007, unless
extended by the company. Such holders will not be eligible to
receive the consent payment and accordingly will only be
eligible to receive an amount equal to the Total Consideration
less the consent payment.
In accordance with the terms of the Offer to Purchase, tendered
Notes may no longer be withdrawn and delivered consents may no
longer be revoked, unless the tender offer is terminated without
any Notes being purchased or the company is required by law to
permit withdrawal or revocation.
The company's offer to purchase the Notes is subject to the
satisfaction or waiver of the various conditions as described in
the Offer to Purchase.
The tender offer is scheduled to expire at 5:00 p.m., New York
City time, Sept. 28, 2007, subject to the company's right to
amend, extend or terminate the tender offer at any time.
J.P. Morgan Securities Inc. is the sole Dealer Manager for the
tender offer and the consent solicitation and can be contacted
at (212) 270-1477 (collect).
Global Bondholder Services Corporation is the Information Agent
and the Depositary for the tender offer and the consent
solicitation and can be contacted at (212) 430-3774 (collect) or
toll free at (866) 952-2200.
About Chaparral Steel Company
Headquartered in Midlothian, Texas, Chaparral Steel Company
(Nasdaq: CHAP) -- http://www.chaparralsteel.com/-- is a
producer of structural steel products in North America. The
company is also a producer of steel bar products. The company
operates two mini-mills located in Midlothian, Texas and
Dinwiddie County, Virginia that together have an annual rated
production capacity of 2.8 million tons of steel. Founded in
July 1973, the company manufactures over 230 different types,
sizes and grades of structural steel and bar products. The
company markets its products throughout the United States,
Canada and Mexico, and to a limited extent in Europe.
About Gerdau Ameristeel Corporation
Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation
(NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a
mini-mill steel producer in North America. Through its
vertically integrated network of 17 mini-mills, 17 scrap
recycling facilities and 52 downstream operations, Gerdau
Ameristeel serves customers throughout North America. The
company's products are sold to steel service centers, steel
fabricators, or directly to original equipment manufactures for
use in a variety of industries, including construction, cellular
and electrical transmission, automotive, mining and equipment
manufacturing. Gerdau Ameristeel is a unit of Brazilin firm
Gerdau SA.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 20, 2007, Standard & Poor's Ratings Services said that its
'BB+' corporate credit and its other ratings on steel maker
Gerdau Ameristeel Corp. remain on CreditWatch with negative
implications. The ratings were placed on CreditWatch on July
11, 2007, following the company's announcement that it was
acquiring Chaparral Steel Co. (B+/Watch Pos/--) for US$4.2
billion in an all-cash transaction. The transaction closed on
Sept. 14, 2007.
NORTEL NETWORKS: Hires Joel Hackney to Lead Enterprise Solutions
----------------------------------------------------------------
Nortel Networks Corporation has appointed Joel Hackney as its
President, Enterprise Solutions, effective immediately. This
appointment reflects Nortel's stated objective of accelerating
the strong momentum in its Enterprise business.
"Joel Hackney is a high-energy, results-oriented leader with a
proven track record of leading and growing businesses. He is
widely recognized for operational excellence and speed of
execution," said the company's President and Chief Executive
Officer Mike Zafirovski Zafirovski. "Joel is absolutely the
right person to further accelerate the momentum in Nortel's
Enterprise business that will be noticeable to customers,
channel partners - and our competition."
"Now is the time for Nortel to take its Enterprise to the next
level, build on our momentum and take a stronger leadership
position in the market. Joel and the team will push the
Enterprise business to new heights by leveraging world-class
partnerships with companies like Microsoft and IBM, as well as
the leading technology innovations that are gaining rapid
traction in the market," said Mr. Zafirovski.
Over the past year, Nortel has built a solid base for its
Enterprise business. As previously reported, second quarter 2007
revenues were US$590 million, representing an increase of 23
percent over the same period last year, and the fourth
consecutive quarter of year-over-year growth.
"The industry is in need of choice in the Enterprise market -
real competition that will drive new innovation and meet rapidly
changing customer needs," said Mr. Hackney. "We will increase
our investments in Enterprise and accelerate our pace of
execution. We will create best-in-class, go-to-market
capability. And we will deliver solutions that make it much
simpler for our customers to seize the opportunities of a
hyperconnected world. Stay tuned!"
In his previous role, Mr. Hackney was Nortel's Senior Vice
President, Global Operations and Quality. In addition to his
Nortel experience, he has 14 years of global leadership
experience at GE, including leadership of a billion dollar
product division with 7,000 employees.
After two decades of service to the Company, Steve Slattery, the
incumbent President of Enterprise Solutions, has decided to
leave the company, effective Oct. 1. The company thanks Mr.
Slattery for his valuable contribution to its CDMA, Wireline and
Enterprise businesses over the years and wishes him much success
in his future endeavors.
New Senior Vice President Global Operations
Joe Flanagan, who was previously the Vice President, Global
Fulfillment, has been appointed Senior Vice President, Global
Operations and will be charged with driving world-class results
in the company's customer satisfaction, supply chain and order
management operations.
"Over the past year, Joe has made important progress simplifying
customer order placement with "touchless" orders, improving
billing timeliness, standardizing process and metrics, and
building a future-state supply chain architecture," said Mr.
Zafirovski. "In his new and expanded role, he will accelerate
the pace of change and make an even stronger contribution to
Nortel's execution capabilities and operational excellence. The
mandate is critical to our turnaround, and the leader we have
chosen a proven results-driven executive."
Messrs. Hackney, Flanagan and the operations organization have
made significant progress advancing Nortel's business
transformation initiatives, including more than 100 Lean Six
Sigma projects, and have spearheaded Nortel's improvements in
quality and responsiveness. With a strong leadership team in
place, Mr. Flanagan will build on the strong progress made to
date and accelerate the pace of progress in Global Operations.
In addition to his accomplishments at Nortel, Flanagan is a
skilled leader with 13 years experience at GE where he held
positions of increasing responsibility, including the General
Manager of Operations for GE Consumer & Industrial in Europe,
Middle East and Africa.
About Nortel Networks
Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel Networks Limited is the principal direct operating
subsidiary of Nortel Networks Corporation.
Nortel does business in more than 150 countries including
Indonesia, the United Kingdom, Denmark, Russia, Norway,
Australia, Brazil, China, Singapore, among others.
* * *
On March 27, 2007, Moody's Investors Service affirmed Nortel
Networks' existing ratings, including its B3 corporate family
rating, and assigned a B3 rating to the proposed US$1 billion
convertible senior unsecured notes offering. Proceeds of the
offering will be used to refinance a portion of the US$1.8
billion in 4.25% convertible notes due in 2008 when they become
payable at par. Moody's said the outlook remains stable.
On March 26, 2007, Standard & Poor's Ratings Services assigned
its 'B-' debt rating to Canada-based Nortel Networks Corp.'s
proposed US$1 billion senior unsecured convertible notes, which
will consist of two tranches of USUS$500 million, maturing in
2012 and 2014, respectively.
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low). DBRS says all trends are stable. DBRS confirmed B (low)
Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B
(low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class
A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A,
Non-Cumulative Redeemable Preferred Shares.
REXAM PLC: FAS Rejects Application for Rostar Acquisition
---------------------------------------------------------
Rexam plc confirmed that it had been informed that its
application for clearance of the proposed acquisition of Russian
beverage can maker Rostar has been rejected by the Russian
Federal Antimonopoly Service.
Rexam is currently reviewing the consequences of this decision
with its advisors and plans to explore opportunities for further
dialogue with the FAS about this matter, including re-filing of
the application. Rexam believes the acquisition would give the
Company less than 15% of the Russian beverage container market.
A further announcement will be made in due course.
On July 4, 2007, Rexam agreed to acquire Rostar from En+ Group
Limited, the parent of Rusal, the Russian aluminium group, for a
total cash consideration of US$297 million (GBP149 million),
including borrowings assumed.
Rostar has two manufacturing facilities: one near Moscow and one
near St. Petersburg. The Moscow plant, which includes an end
making facility, has an annual capacity of some 1.3 billion
beverage cans, while the St. Petersburg plant has a capacity of
1.7 billion beverage cans.
In 2006, Rostar had sales of US$214 million. As Rostar was
part of Rusal, it did not hedge its aluminium exposure and,
in common with the rest of the European beverage can industry,
2006 profits were adversely impacted by aluminium price
volatility. Profits, however, are expected to improve in 2007.
As of Dec. 31, 2006, Rostar had net operating assets of
US$181 million.
Headquartered in London, England, Rexam Plc --
http://www.rexam.com/-- is a global consumer packaging company
and a beverage can maker. Rexam serves the beverage, beauty,
pharmaceuticals and food markets with around 100 manufacturing
operations in more than 20 countries, including Brazil and
Indonesia and generated revenues of GBP3.7 billion.
* * *
In June 2007, Moody's Investors Service assigned a provisional
(P)Ba2 rating to the proposed issuance of capital securities by
Rexam Plc rated Baa3 for senior unsecured debt.
The assigned rating and the basket designation will be subject
to satisfactory final documentation. Moody's said the outlook
for the ratings is stable.
* BRAZIL: Will Auction Rich Oil Blocks in November
--------------------------------------------------
National Petroleum Agency said that Brazil is planning to
auction 152 potentially rich offshore oil blocks in late
November, the Associated Press reports.
According to the agency known as ANP, several of the blocks have
an "elevated potential to hit oil or gas." These blocks, AP
says, are next to recent promising finds in Brazil's Santos
Basin.
AP relates that Petroleo Brasileiro SA and Britain's BG Group
have hit oil in the Santos Basins' Carioca field earlier this
month. In October 2006, the companies saw oil close to Tupi
field.
Various reports state that the Tupi field lies below a water
depth of 2,140 meters (7,060 feet), a 2,000-meter-thick (6,600-
foot-thick) salt layer that itself is under more than 3,000
meters (almost 10,000 feet) of sand and rocks.
In addition, the ANP will auction promising blocks in the oil-
rich Campos and Espirito Santo basins in the next two months.
* * *
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: Assisting Four Countries on Biofuel Production
--------------------------------------------------------
Beata Lockwood at the Caribbean Net News reports that Brazil,
along with the United States, will provide four Latin American
nations it picked to produce biofuel.
Caribbean Net relates that Brazil and the U.S. chose these
nations to produce biofuel:
-- Dominican Republic,
-- El Salvador,
-- Haiti, and
-- St. Kitts.
According to Caribbean Net, the countries reached a biofuel
cooperation accord in March 2007. The U.S. and Brazil agreed to
assist the countries in financing and technical support.
Feasibility studies will also be launched.
Caribbean Net notes that Haiti has abundant native trees that
can be used to produce oil to be used to substitute for diesel
fuel.
The biofuel produced could be used domestically and also
exported, Caribbean Net states.
* * *
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
===========================
GENIE INVESTMENT: Holding Final Shareholders Meeting Today
----------------------------------------------------------
Genie Investment Co. Ltd. will hold its final shareholders
meeting on Sept. 21, 2007, at 11:00 a.m., at the office of the
company.
These matters will be discussed 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 six 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:
Q&H Nominees Ltd.
Attention: Indy Singh
P.O. Box 1348
George Town, Grand Cayman KY1-1108
Cayman Islands
Tel: 949 4123
Fax: 949 4647
GLASOR SA: Trustee Stops Verifying Proofs of Claim Today
--------------------------------------------------------
Graciela Lukawecki, the court-appointed trustee for Glasor
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim on Sept. 21, 2007.
Ms. Lukawecki will present the validated claims in court as
individual reports on Nov. 5, 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 Glasor 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 Glasor's accounting
and banking records will be submitted in court on Dec. 17, 2007.
Ms. Lukawecki is also in charge of administering Glasor's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Graciela Lukawecki
Uruguay 978
Buenos Aires, Argentina
IASIA ALLIANCE: Holding Final Shareholders Meeting Today
--------------------------------------------------------
Iasia Alliance Fund Ltd. will hold its final shareholders
meeting on Sept. 21, 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,
and
2) authorizing the liquidator to retain the records
of the company for a period of six 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:
Richard L. Finlay
Attention: Krysten Lumsden
P.O. Box 2681
George Town, Grand Cayman
Tel: (345) 945 3901
Fax: (345) 945 3902
IC MEDIA: Proofs of Claim Filing Ends Today
-------------------------------------------
IC Media International Corp.'s creditors are given until
Sept. 21, 2007, to prove their claims to Richard L. Finlay, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
IC Media's shareholders agreed on July 18, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Richard L. Finlay
Attention: Krysten Lumsden
P.O. Box 2681
George Town, Grand Cayman
Cayman Islands
Tel: (345) 945 3901
Fax: (345) 945 3902
IC MEDIA: Final Shareholders Meeting is Today
---------------------------------------------
IC Media International Ltd. will hold its final shareholders
meeting on Sept. 21, 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,
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:
Richard L. Finlay
Attention: Krysten Lumsden
P.O. Box 2681
George Town, Grand Cayman
Cayman Islands
Tel: (345) 945 3901
Fax: (345) 945 3902
LEHMAN BBT: Final Shareholders Meeting is Today
-----------------------------------------------
Lehman BBT Fund Ltd. will hold its final shareholders meeting on
Sept. 21, 2007, at 9:30 a.m., at the office of the company.
These matters will be discussed 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 five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
MACQUARIE AUSTRALIA: Proofs of Claim Filing Deadline is Tomorrow
----------------------------------------------------------------
Macquarie Australia Computer Systems Leasing Pty Ltd.'s
creditors are given until Sept. 22, 2007, to prove their claims
to John Cullinane and Derrie Boggess, the company's liquidators,
or be excluded from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Macquarie Australia's shareholders agreed on July 10, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
OHMIYATORO: Final Shareholders Meeting is Today
-----------------------------------------------
Ohmiyatoro will hold its final shareholders meeting on
Sept. 21, 2007, at 10:30 a.m., at the office of the company.
These matters will be discussed 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 five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
OPAL: Proofs of Claim Filing Deadline is Today
----------------------------------------------
Opal's creditors are given until Sept. 21, 2007, to prove their
claims to Richard L. Finlay, the company's liquidator, or be
excluded from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Opal's shareholders agreed on July 17, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Richard L. Finlay
Attention: Krysten Lumsden
P.O. Box 2681
George Town, Grand Cayman
Cayman Islands
Tel: (345) 945 3901
Fax: (345) 945 3902
OPAL: Holding Final Shareholders Meeting Today
----------------------------------------------
Opal will hold its final shareholders meeting on Sept. 21, 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,
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:
Richard L. Finlay
Attention: Krysten Lumsden
P.O. Box 2681
George Town, Grand Cayman
Cayman Islands
Tel: (345) 945 3901
Fax: (345) 945 3902
PARMALAT SPA: Earns EUR244.3 Million for First Half 2007
--------------------------------------------------------
The Parmalat Group posted EUR244.3 million in net profit on
EUR1.81 billion in net revenues for the first half ended
June 30, 2007, compared with EUR17 million in net profit on
EUR1.76 billion in net revenues for the same period ended
June 30, 2006.
The Group's net financial position improved significantly during
the first half of 2007, with the balance moving from
indebtedness of EUR170 million to net financial assets totaling
EUR58.9 million, for a net gain of EUR228.9 million compared
with Dec. 31, 2006.
These developments account for most of this improvement:
-- the cash flow from operations, net of changes in
operating working capital and after capital expenditures
and income tax payments, amounted to EUR39.1 million;
-- cash from litigation settlements totaled EUR237.4
million, which is the net result of legal costs amounting
to EUR40.9 million (related both to 2006 and 2007 years)
and proceeds of EUR278.3 million generated by settlements
reached during the first half of 2007;
-- cash flow from non-recurring transactions totaled
EUR7.1 million. This amount is mainly the net
result of proceeds generated by the disposal of non-
strategic non-current assets (EUR22.8 million), less
outlays of EUR11.2 million for acquisitions of equity
investments (including EUR8.1 million paid by Parmalat
S.p.A. to buy back the interests held by minority
shareholders in two subsidiaries in Russia and Romania);
and
-- the cash flow from financial transactions reflects net
financial income of EUR5.3 million, dividend payments
totaling EUR43.4 million and proceeds of EUR7.0 million
generated by the exercise of warrants. Sundry items
totaled EUR23.6 million net.
Events occurring after June 30, 2007 that had a material impact
on the Group's net financial position included the collection of
EUR187.8 million generated by the sale of the Spanish operations
on July 4, 2007, and the collection of EUR28.7 million generated
by the sale of the business operations of Boschi Luigi & Figli
S.p.A. on July 2, 2007.
Outlook for the Balance of 2007
The outlook results for the first half of 2007 were in line with
expectations, despite a less than positive performance by the
Venezuelan operations, confirming that the growth and
consolidation trend enjoyed by the Parmalat Group is continuing
in terms both of revenues and profitability of EBITDA.
Targets for growth are in line with expectations, despite the
continuous increase in the price of raw milk (both powdered and
liquid), in part offset by an adjustment in pricing policy
excluding the delta perimeter of Boschi and Spain of around
EUR15 million, and the Venezuela effect of around EUR7 million.
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that
can be stored at room temperature for months. It also has about
40 brand product lines, which include yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.
The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than $200 million
in assets and debts. The U.S. Debtors emerged from bankruptcy
on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases.
On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York. In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators. Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey,
Gordon, Herlands Randolph, represent the Finance Companies in
the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.
PRIMUS JAPAN: Holding Final Shareholders Meeting Today
------------------------------------------------------
Primus Japan Funding 04-A Holding Company will hold its final
shareholders meeting on Sept. 21, 2007, at 11:00 a.m., at the
office of the company.
These matters will be discussed 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 five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
RABO DUYFKEN: Final Shareholders Meeting is Today
-------------------------------------------------
Rabo Duyfken Funding Ltd. will hold its final shareholders
meeting on Sept. 21, 2007, at 10:00 a.m., at the office of the
company.
These matters will be discussed 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 five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
RENAISSANCE J: Holding Final Shareholders Meeting Today
-------------------------------------------------------
Renaissance J Corp. will hold its final shareholders meeting on
Sept. 21, 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 five years from
the dissolution of the company, after which they
may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
TRIGON ADVISERS: Proofs of Claim Filing Ends Today
--------------------------------------------------
Trigon Advisers International Ltd.'s creditors are given until
Sept. 21, 2007, to prove their claims to Richard L. Finlay, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Trigon Advisers shareholders agreed on July 24, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Richard L. Finlay
Attention: Krysten Lumsden
P.O. Box 2681
George Town, Grand Cayman
Cayman Islands
Tel: (345) 945 3901
Fax: (345) 945 3902
TRIGON ADVISERS: Final Shareholders Meeting is Today
----------------------------------------------------
Trigon Advisers International Ltd. will hold its final
shareholders meeting on Sept. 21, 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,
and
2) authorizing the liquidator to retain the records
of the company for a period of six 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:
Richard L. Finlay
Attention: Krysten Lumsden
P.O. Box 2681
George Town, Grand Cayman
Cayman Islands
Tel: (345) 945 3901
Fax: (345) 945 3902
TRIGON ASIAN: Holding Final Shareholders Meeting Today
------------------------------------------------------
Trigon Asian Credit Opportunities Fund Ltd. will hold its final
shareholders meeting on Sept. 21, 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,
and
2) authorizing the liquidator to retain the records
of the company for a period of six 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:
Richard L. Finlay
Attention: Krysten Lumsden
P.O. Box 2681
George Town, Grand Cayman
Cayman Islands
Tel: (345) 945 3901
Fax: (345) 945 3902
TRIGON ASIAN CREDIT: Holding Final Shareholders Meeting Today
-------------------------------------------------------------
Trigon Asian Credit Opportunities Fund (Master) Ltd. will hold
its final shareholders meeting on Sept. 21, 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,
and
2) authorizing the liquidator to retain the records
of the company for a period of six 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:
Richard L. Finlay
Attention: Krysten Lumsden
P.O. Box 2681
George Town, Grand Cayman
Tel: (345) 945 3901
Fax: (345) 945 3902
VF CAYMANS I: Holding Final Shareholders Meeting Today
------------------------------------------------------
VF Caymans I will hold its final shareholders meeting on
Sept. 21, 2007, at 10:00 a.m., at:
Fourth Floor, One Capital Place
P.O. Box 847
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,
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Trident Directors (Cayman) Ltd.
Attention: Kimbert Solomon
Tel: (345) 949 0880
Fax: (345) 949 0881
P.O. Box 847
George Town
Grand Cayman KY1-1103
Cayman Islands
=========
C H I L E
=========
LEVI STRAUSS: Tender Offer for Senior Notes Expires on Oct. 17
--------------------------------------------------------------
Levi Strauss & Co. has commenced a cash tender offer for any and
all of its outstanding US$525.0 million aggregate principal
amount of 12.25% Senior Notes due 2012 on the terms and subject
to the conditions set forth in the company's Offer to Purchase
and Consent Solicitation Statement dated Sept. 19, 2007. The
tender offer will expire at 12:00 midnight, New York City time,
on Oct. 17, 2007, unless extended or earlier terminated by the
company. In connection with the cash tender offer, the company
is also soliciting consents to amend the indenture under which
the Notes were issued to eliminate or make less restrictive most
of the restrictive covenants, and certain related events of
default, contained in the indenture. The tender offer documents
more fully set forth the terms of the tender offer and consent
solicitation.
The total consideration for each US$1,000 principal amount of
Notes validly tendered and not withdrawn prior to the Consent
Payment Deadline, and accepted for purchase pursuant to the
tender offer, will be determined as specified in the tender
offer documents and will be equal to the present value, minus
accrued interest, on the applicable payment date for the tender
of Notes of (i) US$1,061.25 and (ii) the remaining scheduled
interest payments on such Notes after the payment date for the
tender of Notes to Dec. 15, 2007, in each case determined on the
basis of a yield to the Redemption Date equal to the sum of (A)
the yield on the 4.375% U.S. Treasury note due Dec. 31, 2007, as
calculated by Credit Suisse Securities (USA) LLC, acting as
dealer manager, in accordance with standard market practice,
based on the bid side price for the Reference Treasury Security
on the price determination date, plus (B) a fixed spread of 50
basis points.
Each holder who validly tenders its Notes and delivers consents
on or prior to 5:00 p.m., New York City time, on Oct. 3, 2007
will be entitled to a consent payment, which is included in the
total consideration above, of US$30.00 for each US$1,000
principal amount of Notes tendered by such holder if such Notes
are accepted for purchase pursuant to the tender offer. Holders
who tender Notes after the Consent Payment Deadline, but prior
to the expiration of the tender offer, will not be entitled to
receive the consent payment.
Prior to the expiration of the tender offer, upon satisfaction
or waiver of the conditions to the tender offer, the company
may, at its option, accept and pay for Notes tendered. Subject
to limited conditions, all Notes tendered after the Consent
Payment Deadline for purchase will be accepted and paid for
promptly following the expiration date of the tender offer.
Holders will be paid accrued and unpaid interest up to but not
including the applicable date of payment.
The company's obligation to consummate the tender offer is
conditioned upon the satisfaction of certain conditions,
including:
(i) the company having amended its senior secured revolving
credit facility to increase its line of credit thereunder
by an additional US$200 million to US$750 million, which
shall include a US$250 million tranche that is secured by
the Levi's(R) trademark in the United States, upon terms
and conditions satisfactory to it and
(ii) holders of Notes representing not less than a majority in
principal amount of the outstanding Notes having tendered
their Notes and delivered their consents.
The company has retained Credit Suisse as dealer manager and
solicitation agent in connection with the tender offer and
consent solicitation. Questions about the tender offer and
consent solicitation may be directed to Credit Suisse at 212-
325-4951 (collect). Holders can request documents from D.F.
King & Co., Inc., the information agent and tender agent, at
888-887-0082 (U.S. toll free) or 212-269-5550 (collect).
Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss
& Co. -- http://www.levistrauss.com/-- is one of the world's
largest brand-name apparel marketers with sales in more than 110
countries. The company market-leading apparel products are sold
under the Levi's(R), Dockers(R) and Levi Strauss Signature(R)
brands.
Levi Strauss & Co. is privately held by descendants of the
family of Levi Strauss. Shares of company stock are not
publicly traded. Shares of Levi Strauss Japan K.K., the
company's Japanese affiliate, are publicly traded in Japan.
The company employs a staff of approximately 10,000 worldwide,
including approximately 1,010 at the company's San Francisco,
California headquarters. Levi Strauss Europe is headquartered
in Brussels, Belgium, while Levi's Asia Pacific division is
based in Singapore. Levi's has operations in Brazil, Mexico,
Chile and Peru.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 31, 2007, Standard & Poor's Ratings Services has it raised
its ratings on San Francisco-based apparel company Levi Strauss
& Co. by one notch, including its long-term corporate credit
rating to 'B+' from 'B'. The outlook is stable.
===============
C O L O M B I A
===============
BANCOLOMBIA: May Surpass 2006 Earnings, Analysts Say
----------------------------------------------------
Analysts told Business News Americas that Bancolombia could
surpass 2006 earnings by up to 15% in 2007 due to higher
interest rates and as its strategy of replacing securities with
loans pays off.
BNamericas relates that Bancolombia's consolidated earnings
declined by 20.8% to COP750 billion in 2006, compared to 2005,
mainly due to a COP158-billion financial investment loss in the
second quarter 2006 given the volatility of the international
capital markets. Since then, Bancolombia "has reshuffled its
asset mix, with loans replacing investment securities, mostly
government TES bonds."
According to BNamericas, Bancolombia reduced its investment
securities portfolio by 12.6% to COP3.99 trillion in the 12
months ended August 2007, compared to the same period last year.
Meanwhile, loans increased 29.7% to COP21.0 trillion.
The report says that Bancolombia's unconsolidated profit rose
37.2% to COP505 billion in the first eight months of 2007,
compared to the first eight months of 2006, mainly due to the
"appreciation of its variable rate-denominated portfolio, fueled
by a strong increase in the DTF deposit interest rate."
Colombian brokerage Invercol analyst Jose Fernando Restrepo told
BNamericas that from June 2007 until the first week of this
month, "DTF has increased over 100 basis points." Mr. Restrepo
explained that this was shown in Bancolombia's higher interest
income on loans, which counterbalanced the growht in interest-
earning assets.
BNamericas notes that Bancolombia is "booking high operating
costs." Meanwhile, fee income was lower month-on-month.
Mr. Restrepo commented to BNamericas, "There's a chance this
trend may continue through the rest of the year, given increased
competition."
Colombian ratings agency Duff & Phelps's assistant director
Helena de la Torre is positive that the Bancafe-Davivienda
merger will be "a strong challenge to dominant players in the
Colombian banking market, namely Bancolombia and Banco de
Bogota." The merged bank has leading positions in the consumer
loan and credit card businesses.
Bancolombia could report consolidated earnings of COP900 billion
this year, BNamericas says, citing Ms. De la Torre.
BNamericas states that returns on investment securities
increased to COP175 billion in the first eight months of this
year, compared to the same period in 2006. This helped boost
results for Bancolombia.
Brokerage Promotora Bursatil analyst Edgar Jimenez commented to
BNamericas that "asset quality is at good levels -- 2.64% of
total loans as of Aug. 31, 2007 -- and net charge-offs remained
stable."
BNamericas says that Deutsche Bank analyst Mario Pierry
decreased his net income estimate for Bancolombia this year by
8% to COP967 billion due to lower-than-expected second quarter
2007 results.
Mr. Pierry said in a report, "While we understand part of the
shortfall in second quarter 2007 reflected some nonrecurring
provision charges, we believe provisions were unsustainably low
in first quarter 2007 and thus provision charges in second half
of 2007 should stay stable with first half of 2007."
Bancolombia expects its newly acquired El Salvadorian bank
Banagricola to account for 15% of the balance sheet and profits
from 2008 onwards, BNamericas states.
Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Moody's Investors Service changed the outlook to
positive from stable on its Ba3 long-term foreign currency
deposit ratings and Ba1 long-term foreign currency subordinated
bond rating for Bancolombia, S.A.
As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Fitch Ratings downgraded and removed from Rating
Watch Negative Bancolombia's long-term and short-term local
currency Issuer Default Ratings and Individual rating:
-- Individual rating to 'C/D' from 'C';
-- Local currency long-term IDR to 'BB+' from 'BBB-'; and
-- Local currency short-term rating to 'B' from 'F3';
In addition, Fitch affirmed these ratings:
-- Foreign currency long-term IDR at 'BB+';
-- Foreign currency short-term rating at 'B'; and
-- Support rating at '3'.
Fitch says the rating outlook was stable.
===================================
D O M I N I C A N R E P U B L I C
===================================
CLOROX COMPANY: Declares US$0.025 Per Share Quarterly Dividend
--------------------------------------------------------------
The Clorox Company's board of directors has declared a regular
quarterly dividend of 40 cents per share on the company's common
stock, payable Nov. 15, 2007, to stockholders of record on
Oct. 31, 2007.
Headquartered in Oakland, California, The Clorox Company
(NYSE: CLX) -- http://www.thecloroxcompany.com/-- provides
household cleaning products and reaches beyond bleach. Although
best known for bleach (leader worldwide), Clorox makes laundry
and cleaning items (Formula 409, Pine-Sol, Tilex), cat litter
(Fresh Step), car care products (Armor All, STP), the Brita
water-filtration system (in North America), and charcoal
briquettes (Kingsford).
In Latin America, Clorox has manufacturing facilities in Costa
Rica, Dominican Republic, Panama, Peru and Colombia, among
others.
At Dec. 31, 2006, Clorox's balance sheet showed total assets of
US$3,624 million and total liabilities of US$3,657 million
resulting in a stockholders' deficit of US$33 million. The
company reported a stockholders' deficit of US$156 million at
June 30, 2006.
* DOMINICAN REPUBLIC: To Produce Biofuel with Brazil & US Aid
-------------------------------------------------------------
Beata Lockwood at the Caribbean Net News reports that the United
States and Brazil have picked the Dominican Republic as among
the four nations to produce biofuel.
Caribbean Net relates that the other nations chosen to produce
biofuel were:
-- Haiti,
-- El Salvador, and
-- St. Kitts.
According to Caribbean Net, the countries reached a biofuel
cooperation accord in March 2007. The U.S. and Brazil agreed to
assist the countries in financing and technical support.
Feasibility studies will also be launched.
Caribbean Net notes that the Dominican Republic has abundant
large sugar cane plantations, which can be used to produce
ethanol as well as a native tree that can be used to produce oil
to be used to substitute for diesel fuel.
The report says that the biofuel produced could be used
domestically and also exported.
Biofuel production would attract foreign investment and create
jobs for the Dominican Republic people in the chosen areas,
Caribbean Net states.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Moody's Investors Service upgraded the Dominican
Republic government's foreign- and local-currency bond ratings
to B2 from B3. The Dominican Republic's foreign-currency
country ceiling was upgraded to Ba3 from B1. The country's
ceiling for foreign-currency bank deposits was also upgraded to
B3 from Caa1. Moody's said all ratings have stable outlook.
=============
E C U A D O R
=============
PETROECUADOR: Assets & Installations Insurance Tender Is Void
-------------------------------------------------------------
Ecuadorian state-owned oil firm Petroecuador said in a press
release that it has declared the insurance tender to cover its
assets and installations void for the third time.
Business News Americas relates that Petroecuador had declared
void two previous insurance tenders in December 2006 and June
2007.
According to Petroecuador's press release, the offers from
Panamericana de Seguros and La Union-Bolivar failed to meet the
requirements in the bidding rules as well as those of banking
and insurance regulator Superintendencia de Bancos y Seguros.
Petroecuador chairperson Carlos Pareja told BNamericas that the
tender will move to an emergency phase, which will let the firm
speed up the process.
Hopefully, a contract with a new insurer will be reached in 10
days, BNamericas notes, citing Mr. Pareja.
BNamericas says that these insurers who prequalified to take
part in the tender will be invited to the next tender:
-- Atlas Compania de Seguros,
-- Bolivar,
-- Coopseguros del Ecuador,
-- Interoceanica,
-- La Union,
-- Panamericana del Ecuador,
-- Seguros Rocafuerte, and
-- Colonial.
Petroecuador has an insurance contract with Colonial that will
expire on Oct. 7, 2007, BNamericas states.
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: Eyes New Concession Contracts with Mobile Operators
--------------------------------------------------------------
The Ecuadorian government will negotiate new concession
contracts with mobile operators, local telecoms supervisory body
Suptel said in a statement.
According to Suptel's statement, the government didn't want to
renegotiate certain points of the current contracts.
Business News Americas relates that America Movil's Porta and
Telefonica's Movistar Ecuador will be affected. The firms'
contract with the government will expire at the end of 2008.
The report says that Porta and Movistar Ecuador had begun the
renegotiation process of their concession contracts with the
previous administration. However, current President Rafael
Correa "has taken a much harder line with them," threatening to
expel Porta.
BNamericas notes that Conatel will launch the redrafting process
once it resolves issues on Porta's existing contract next month.
Porta allegedly didn't comply with all service quality
requirements, and failed to pay its taxes.
Telecoms regulator Conatel will attempt to add stricter service
quality criteria and additional means of sanctioning operators
that fail to meet requirements, BNamericas states, citing
Suptel.
* * *
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-'.
=====================
E L S A L V A D O R
=====================
* EL SALVADOR: To Produce Biofuel with Brazil & US Aid
------------------------------------------------------
Beata Lockwood at the Caribbean Net News reports that the United
States and Brazil have picked El Salvador as among the four
nations to produce biofuel.
Caribbean Net relates that the other nations chosen to produce
biofuel were:
-- Dominican Republic,
-- Haiti, and
-- St. Kitts.
According to Caribbean Net, the countries reached a biofuel
cooperation accord in March 2007. The U.S. and Brazil agreed to
assist the countries in financing and technical support.
Feasibility studies will also be launched.
Caribbean Net notes that Haiti has abundant native trees that
can be used to produce oil to be used to substitute for diesel
fuel.
The biofuel produced could be used domestically and also
exported, Caribbean Net states.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 27, 2007, Standard & Poor's Ratings Services affirmed its
'BB+' long- and 'B' short-term sovereign credit ratings on the
Republic of El Salvador. S&P said the outlook remains stable.
=============
G R E N A D A
=============
* GRENADA: Receiving Oil from Venezuela Next Month
--------------------------------------------------
Oil from Venezuela will arrive in Grenada's St. George towards
the end of October 2007, the Jamaica Gleaner reports.
According to the Gleaner, the oil shipment is part of the two
countries' PetroCaribe accord.
The Gleaner notes that the Grenada Electricity Company Limited
will be the first to get the fuel under a three-year pact it
signed with Venezuelan state-run oil firm Petroleos de Venezuela
S.A. Under the agreement, Petroleos de Venezuela will buy from
the Grenada Electricity storage facilities that include three
tanks with a total capacity of 750,000 gallons of fuel.
The report says that the Grenada Electricity's contract to
receive fuel from its current supplier Texaco expires on
Oct. 18, 2007.
The Grenada Electricity's general manager Vernon Lawrence
commented to The Gleaner, "The first shipment of supplies from
PDVSA [Petroleos de Venezuela] is scheduled to arrive sometime
after the 18th of October. The contract with our current
supplier would expire on the 18th of October so we expect within
two weeks of that date the first shipment will arrive."
The Gleaner relates that Mr. Lawrence eyes a slight drop in the
cost of electricity with the arrival of supplies.
Mr. Lawrence explained to The Gleaner, "There is a marginal
difference in the price of fuel coming from Venezuela as against
our traditional suppliers or other suppliers. We are seeing
somewhere in the order of 10 US cents difference per gallon of
fuel so that will be passed on to our customers, but it does not
translate into a significant reduction in electricity prices,
but there will be some reduction."
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 in the Troubled Company Reporter-Latin America on
Aug. 3, 2007, Standard & Poor's Ratings Services raised its
long-term sovereign credit rating on Grenada to 'B-' from
'CCC+', reflecting steps taken by the government to improve
debt-payment management. Standard & Poor's also affirmed its
'C' short-term sovereign credit rating on Grenada. The outlook
remains stable.
=================
G U A T E M A L A
=================
IMAX CORP: Signs Ten-Theatre Deal with China's Wanda Cinema
-----------------------------------------------------------
IMAX Corporation and Wanda Cinema Line Corporation has signed an
agreement to install ten IMAX(R) theatres in The People's
Republic of China, with the first two installations scheduled
for December of this year. The agreement marks IMAX's largest
ever multiple-theatre deal in Asia. Under the terms of the sales
agreement, all of the theatres are to be installed either with
IMAX's MPX(R) theatre system or the company's new digital
projection technology, which is currently in the advanced stages
of development. Wanda Cinema Line Corporation is the top
performing and fastest growing exhibitor in The People's
Republic of China with 121 screens in 15 locations. All ten
IMAX theatres are expected to be installed by the end of 2010
and bring the total number of IMAX theatres scheduled to be open
in The People's Republic of China to 39.
"IMAX is a world-class brand that has been received
exceptionally well across Asia, and we are very excited to
include the IMAX theatre business as an integral part of our
present and future growth," said Mr. Bao Jiazhong, General
Manager of Wanda Cinema Line Corporation. "Moviegoers in
China expect a premium experience when they visit a modern
multiplex and our IMAX theatres will be able to deliver on that
expectation and beyond, with the biggest Hollywood movies
presented in the most engaging and immersive way. IMAX puts you
IN the movie, and no other cinema technology can do that."
"China continues to be a key strategic growth market for IMAX,
and our partnership with Wanda Cinema Line -- an exhibitor AND
property developer -- gives us the opportunity to significantly
expand our audience-base and ultimately drive greater interest
in the region," said IMAX Co-CEO's and Co-Chairmen Richard L.
Gelfond and Bradley J. Wechsler. "This single deal is expected
to increase our presence in China by more than 30 percent. We
are encouraged by the enthusiasm of our new partners and we look
forward to working with them to bring The IMAX Experience(R) to
more people in China."
The first three locations will utilize the IMAX(R) MPX(R)
theatre system, IMAX's latest film projection technology
specifically designed to enable multiplex operators to enter
into the IMAX theatre business. The remaining seven locations
are scheduled to utilize IMAX's digital projection system. The
exhibitor has options to upgrade the three MPX theatre systems
to IMAX digital on pre-negotiated terms, and to opt out of the
final five installations subject to a material penalty.
All ten IMAX theatres are scheduled to be installed as part of
new multiplex constructions. The first two installations are
scheduled to take place in December 2007, in the cities of
Changsha and Changchun. Other identified cities include
Beijing, Chongqing and Wuxi. Each theatre will be capable of
playing digitally re-mastered Hollywood event films, as well as
original IMAX productions, in both 2D and IMAX(R) 3D.
About Wanda Cinema Line Corporation
Wanda Cinema Line Corporation is the fastest growing and most
competive cinema chain in China. Incorporated in 2005, the
company is a full subsidary of Dalian-based Wanda Group. As of
today, Wanda Cinema Line owns and operates 121 screens in 15
multiplexes with an average annual box office at over 100
million RMB. In 2007 alone, the company has scheduled to
construct 10 new multiplexes with 80 screens, bringing its total
number of screens by the end of this year to 200. The company
has plans to add 100 to 150 screens each year between 2008 to
2010. By 2010, the company would expect to own and operate a
total of 600 screens in 70 multiplexes with annual box office to
reach 1.5 billion RMB, taking 30% market share of the entire
country. Wanda Cinema Line will ultilize IMAX theatre systems
as an important means to enter the international high-end cinema
market with plans to build five IMAX theatres each year from
2008 to 2010, and by 2010 the company expects to have 15 to 20
IMAX screens, becoming the biggest IMAX exhibitor outside North
America.
About IMAX Corporation
Headquartered jointly in New York City and Toronto, Canada, IMAX
Corporation -- http://www.imax.com/-- (NASDAQ:IMAX) is one of
the world's leading entertainment technology companies, with
particular emphasis on film and digital imaging technologies
including 3D, post-production and digital projection. IMAX is a
fully-integrated, out-of-home entertainment enterprise with
activities ranging from the design, leasing, marketing,
maintenance, and operation of IMAX(R) theatre systems to film
development, production, post-production and distribution of
large-format films. IMAX also designs and manufactures cameras,
projectors and consistently commits significant funding to
ongoing research and development. IMAX has locations in
Guatemala, India, Italy, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 27, 2007, Standard & Poor's Ratings Services affirmed its
ratings, including the 'CCC+' corporate credit rating, on IMAX
Corp. and removed them from CreditWatch.
The ratings were originally placed on CreditWatch with negative
implications on Apr. 2, 2007, with a revision to developing
implications occurring on July 5, 2007. The rating action
follows the company's filing of its SEC Form 10-Q for the first
quarter of 2007 and its 2006 Form 10-K, which should put the
company in compliance with its filing requirement under its bond
indenture and alleviate the risk of a near-term acceleration.
=========
H A I T I
=========
* HAITI: To Produce Biofuel with Brazil & US Aid
------------------------------------------------
Beata Lockwood at the Caribbean Net News reports that the United
States and Brazil have picked Haiti as among the four nations to
produce biofuel.
Caribbean Net relates that the other nations chosen to produce
biofuel were:
-- Dominican Republic,
-- El Salvador, and
-- St. Kitts.
According to Caribbean Net, the countries reached a biofuel
cooperation accord in March 2007. The U.S. and Brazil agreed to
assist the countries in financing and technical support.
Feasibility studies will also be launched.
Caribbean Net notes that Haiti has abundant native trees that
can be used to produce oil to be used to substitute for diesel
fuel.
The biofuel produced could be used domestically and also
exported, Caribbean Net states.
* * *
Haiti is currently seeking international help to spur economic
development in the country. President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructure will be alleviated with
increased international assistance.
=============
J A M A I C A
=============
DIGICEL GROUP: St. Lucia Unit Says Phones May be Used as Modem
--------------------------------------------------------------
Digicel's St. Lucia unti product executive Clarence Francis told
CaribbeanPressReleases.com that customers can use their mobile
phones as a modem.
Subscribers can hook up the phones to their personal computers
to be able to browse the Internet, CaribbeanPressReleases.com
says, citing Mr. Francis. They would first have to go to the
nearest Digicel unit to have their phones signed on for GPRS
before accessing the net.
CaribbeanPressReleases.com notes that postpaid clients can sign
on for an XCD85.00 monthly package where they get unlimited
access to the net. Pre-paid subscribers would pay one cent per
kilobyte used.
Subscribers would incur no dial up charges for the service,
CaribbeanPressReleases.com states.
Digicel Group Limited -- http://www.digicelgroup.com/-- is a
wireless services provider in the Caribbean region. The company
is a newly created Bermuda incorporated company formed by Mr.
Denis O'Brien, who previously owned 78% of the shares of Digicel
Limited on a fully diluted basis. The company started
operations in Jamaica in April 2001 and now offers GSM mobile
services in 22 markets primarily in the Caribbean including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Cayman, Curacao, Martinique, Guadeloupe, Trinidad and Tobago and
Haiti among others.
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- US$1.4 billion senior subordinated notes due 2015
assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings was stable.
===========
M E X I C O
===========
BAUSCH & LOMB: Launches Tender Offers for Debt Securities
---------------------------------------------------------
Bausch & Lomb Inc. has commenced cash tender offers and consent
solicitations for four series of outstanding debt securities and
two series of outstanding convertible debt securities. These
tender offers and consent solicitations are being conducted as
part of the financing described in the previously filed proxy
materials associated with the proposed merger between the
Company and an affiliate of Warburg Pincus LLC. Completion of
the tender offers and consent solicitations is not a condition
to completion of the Merger. However, each tender offer and
consent solicitation is itself subject to the satisfaction of
certain conditions, including:
(1) closing of the Merger;
(2) receipt of consents sufficient to approve the proposed
amendments; and
(3) certain other customary conditions.
The consent solicitation with respect to each series of
securities is not conditioned upon receipt by the Company of the
requisite consent for any other series of securities.
Debt Securities
The tender offers and consent solicitations with respect to each
series of outstanding debt securities will expire at 8:00 a.m.,
New York City time, on Oct. 19 2007, unless extended or earlier
terminated by the company. In order to be eligible to receive
the purchase price, which includes the consent payment, holders
must validly tender, and not validly withdraw, their Debt
Securities prior to 5:00 p.m., New York City time on Oct. 3,
2007, unless extended or earlier terminated by the company.
Holders tendering their Debt Securities after the applicable
Consent Payment Deadline but prior to the applicable Expiration
Date will be eligible to receive an amount equal to the purchase
price less the consent payment. Debt Securities purchased in
the tender offers will be paid for on the applicable settlement
date for each tender offer, which, assuming the tender offers
are not extended, is expected to be as soon as practicable after
the applicable expiration date.
Holders tendering their Debt Securities will be required to
consent to the proposed amendments to the indentures governing
the Debt Securities, which would eliminate or make less
restrictive substantially all of the restrictive covenants, as
well as certain events of default and related provisions in the
indentures. The tender offers and consent solicitations are
being made pursuant to the terms and conditions set forth in the
Offer to Purchase and Consent Solicitation Statement dated
Sept. 19, 2007 for the Debt Securities and the related Letter of
Transmittal and Consent.
Convertible Debt Securities
Concurrent with the tender offers and consent solicitations for
the Debt Securities, the company is separately commencing cash
tender offers and consent solicitations with respect to its 2004
Senior Convertible Securities due 2023 and its Floating Rate
Convertible Senior Notes due 2023.
The tender offer and consent solicitation with respect to each
series of Convertible Securities will expire at 8:00 a.m., New
York City time, on Oct. 19, 2007, unless extended or earlier
terminated by the company.
The purchase price for each US$1,000 principal amount of
Convertible Securities validly tendered and not validly
withdrawn pursuant to the tender offers and consent
solicitations is US$1,216.14 for the 2004 Senior Convertible
Securities due 2023 and $1,216.14 for the Floating Rate
Convertible Senior Notes due 2023, plus, in each case, accrued
and unpaid interest to, but not including, the settlement date
with respect to each series, which is expected to be as soon as
practicable after the applicable expiration date. Holders
tendering their Convertible Securities will be required to
consent to the proposed amendments to the indentures governing
the Convertible Securities, which would eliminate or make less
restrictive substantially all of the restrictive covenants, as
well as certain events of default and related provisions, in the
indentures. The tender offers and consent solicitations are
being made pursuant to the terms and conditions set forth in the
Offer to Purchase and Consent Solicitation Statement dated
Sept. 19, 2007 for the Convertible Securities and the related
Letter of Transmittal and Consent.
Citigroup Global Markets Inc., Banc of America Securities LLC,
Credit Suisse Securities (USA) LLC and J.P. Morgan Securities
Inc. are acting as dealer managers for the tender offers and
consent solicitations. Questions regarding the transaction and
the procedures for consenting may be directed to Citigroup
Global Markets Inc. by telephone at (800) 558-3745 (toll-free),
Banc of America Securities LLC by telephone at (888) 292-0070
(toll-free) for the Debt Securities and (888) 583-8900 x2200
(toll-free) for the Convertible Securities, Credit Suisse
Securities (USA) LLC by telephone at (212) 325-7596 (collect) or
J.P. Morgan Securities Inc. by telephone at (212) 270-1477
(collect).
Global Bondholder Services is the information agent for the
tender offers and consent solicitations. Requests for
documentation should be directed to Global Bondholder Services
at (866) 540-1500 (toll-free).
Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE:
BOL) -- http://www.bausch.com/-- develops, manufactures, and
markets eye health products, including contact lenses, contact
lens care solutions, and ophthalmic surgical and pharmaceutical
products. The company is organized into three geographic
segments: the Americas; Europe, Middle East, and Africa; and
Asia (including operations in India, Australia, China, Hong
Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan
and Thailand). In Latin America, the company has operations in
Brazil and Mexico. "In Europe, the company maintains operations
in Austria, Germany, the Netherlands, Spain, and the United
Kingdom.
* * *
As reported in the Troubled Company Reporter on July 12, 2007,
Standard & Poor's Ratings Services said its 'BB+' corporate
credit and senior secured ratings on Bausch & Lomb Inc. remain
on CreditWatch with negative implications in light of the
July 5, 2007 acquisition bid by Advanced Medical Optics Inc.
As reported in the Troubled Company Reporter on May 18, 2007,
Moody's Investors Service stated that it will continue its
review of Bausch & Lomb Incorporated's ratings for possible
downgrade following the announcement that the company has
entered into a definitive merger agreement with affiliates of
Warburg Pincus.
Ratings subject to review for possible downgrade include the
company's Ba1 Corporate Family rating and Ba1 Probability of
Default rating.
In addition, the Warburg Pincus deal prompted Fitch to maintain
its Negative Rating Watch on the company. Fitch also warned
that the transaction would significantly increase leverage and
likely result in a multiple-notch downgrade, including an Issuer
Default Rating of no higher than 'BB-'.
CKE RESTAURANTS: Reports September Same-Store Sales
---------------------------------------------------
CKE Restaurants, Inc. has announced period eight same-store
sales for the four weeks ended Sept. 10, 2007, for Carl's Jr.(R)
and Hardee's(R).
Commenting on the company's performance, Andrew F. Puzder,
president and chief executive officer, said, "We are pleased to
report positive blended same-store sales of 2.3 percent for
period eight. In particular, we are very pleased to report the
23rd consecutive period of positive same-store sales for
Hardee's, despite a difficult prior-year comparison and the lack
of a new lunch/dinner product during the period. On a two-year
cumulative basis, both brands have recorded same-store sales
increases in excess of nine percent."
"We believe this positive performance is the result of our
constant focus on innovative premium products, cutting-edge
advertising and superior customer service. We will continue to
focus on these initiatives over the coming periods, as well as
remodel and dual-branding programs."
"Carl's Jr. introduced the Patty Melt Burger on Aug. 22, and
media support for the product was in place for the final two
weeks of the period. Featuring a charbroiled beef patty topped
with grilled onions and melted American cheese between two
slices of grilled rye bread, the Patty Melt offers guests an
authentic version of a classic American burger. Carl's Jr. also
promoted the latest flavor of its Hand-Scooped Ice Cream Shakes
& Malts(TM) lineup -- Orangesicle(TM)," said Mr. Puzder. "In
addition, Carl's Jr. featured the Breakfast Club Sandwich(TM)
during the breakfast daypart. Average unit volume for period
eight was higher than any comparable period eight ever."
Revenue for period eight from company-operated Carl's Jr.
restaurants (exclusive of franchise-related revenue and
royalties) was approximately US$45.9 million.
"Hardee's continued to promote the Patty Melt Thickburger(TM)
and the Orange Cream Hand-Scooped Ice Cream Shakes and Malts
during period eight. The chain also promoted a Blueberry
Biscuit during the breakfast daypart," Mr. Puzder continued.
"Hardee's period eight average unit volume was higher than any
comparable period eight since 1994, which is as far back as we
can check." Revenue for period eight from company-operated
Hardee's restaurants (exclusive of franchise-related revenue and
royalties) was approximately US$46.2 million.
For period eight, consolidated revenue from company-operated
restaurants (exclusive of all franchise-related revenue and
royalties) was approximately as:
Carl's Jr. US$ 45.9 million
Hardee's US$ 46.2 million
Total US$ 92.1 million
Same-store sales results for period nine of fiscal year 2008,
ending Oct. 8, 2007, will be reported on or about Oct. 17, 2007.
As of the end of its fiscal 2008 second quarter, CKE
Restaurants, Inc., through its subsidiaries, had a total of
3,036 franchised, licensed or company-operated restaurants in 42
states and in 13 countries, including 1,111 Carl's Jr.
restaurants and 1,909 Hardee's restaurants.
About CKE Restaurants
Based in Carpinteria, Calif., CKE Restaurants, Inc. (NYSE: CKR)
-- http://www.ckr.com-- through its subsidiaries, franchisees
and licensees, operates some of the most popular U.S. regional
brands in quick-service and fast-casual dining, including the
Carl's Jr.(R), Hardee's(R), La Salsa Fresh Mexican Grill(R) and
Green Burrito(R) restaurant brands. The company operates 3,131
franchised, licensed or company-operated restaurants in 43
states and in 13 countries -- including Mexico and Singapore.
* * *
As reported in the Troubled Company Reporter on Sept. 10, 2007,
Standard & Poor's Ratings Services has revised its outlook on
Carpenteria, California-based CKE Restaurants Inc. to negative
from stable. At the same time, S&P's has affirmed all the
ratings, including the 'BB-' corporate credit rating, on the
company.
CKE RESTAURANTS: Earns US$11.7 Million in Quarter Ended Aug. 13
---------------------------------------------------------------
CKE Restaurants Inc. has announced second quarter results and
the filing of its Report on Form 10-Q with the U.S. Securities
and Exchange Commission for the twelve weeks ended Aug. 13,
2007.
Second Quarter Highlights
-- Same-store sales increased 2.0 percent at Carl's Jr.(R) and
2.9 percent at Hardee's(R) company-operated restaurants,
compared to the prior year quarter.
-- Average unit volumes for the trailing thirteen periods
increased to US$1,481,000 and US$934,000 at company-
operated Carl's Jr. and Hardee's restaurants, respectively.
-- Consolidated revenue for the current year quarter was
US$363.1 million, a 0.4 percent decrease from the prior
year quarter. Company-operated restaurants revenue for the
current year quarter was US$287.8 million, a 0.5 percent
decrease from the prior year quarter. Both consolidated
revenue and company-operated restaurants revenue
comparisons have been negatively impacted by the
refranchising of our Oklahoma Carl's Jr. market during the
prior year quarter and by the refranchising of 46 Hardee's
restaurants during the current fiscal year.
-- Second quarter operating income was US$23.4 million versus
US$33.9 million in the prior year quarter. The US$10.5
million decrease in operating income was attributable to a
number of factors.
1) Food and packaging costs increased by 130 basis points (or
approximately US$3.7 million), primarily due to increased
commodity prices for beef, cheese, pork and oil products
and an increase in soft drink syrup prices.
2) Occupancy and other restaurant operating costs increased by
110 basis points (or approximately US$3.1 million),
primarily due to increased rent and depreciation and
amortization expense. Rent expense increased due mainly to
rental rate increases resulting from Consumer Price Index
and fair market value adjustments and the refranchising of
our Oklahoma Carl's Jr. market during the prior year
quarter. Depreciation and amortization expense increased
due mainly to the rollout of new point-of-sale software and
related hardware, as well as increased restaurant remodel
activity.
3) Royalty revenue decreased by US$1.8 million, primarily due
to substantial collections, during the prior year quarter,
of previously unrecognized royalties from delinquent
franchisees that did not recur to the same extent in the
current year quarter.
4) Workers' compensation expense increased by US$1.4 million,
as a result of a US$2.5 million charge to increase our
liability for self-insured claim losses associated with a
1982 injury claim, partially offset by a US$1.1 million
reduction related to our workers' compensation expense for
all other self-insured claims.
5) Labor, advertising and share-based compensation expense
increased by an aggregate of US$1.5 million.
6) Facility action charges, net decreased by US$1.3 million.
-- Second quarter income before income taxes and discontinued
operations was US$19.5 million versus US$26.4 million in
the prior year quarter. This year's income before income
taxes and discontinued operations decreased as a result of
the factors discussed above, the impact of which was
partially offset by a decrease of US$3.6 million in
conversion inducement expense.
-- Second quarter income from continuing operations was
US$11.7 million or US$0.18 per diluted share versus US$14.7
million or US$0.21 per diluted share in the prior year
quarter.
-- Restaurant operating costs at Carl's Jr. company-operated
restaurants increased 380 basis points, compared to the
prior year quarter, to 79.6 percent of company-operated
restaurants revenue. The increase was primarily due to
higher food and packaging costs (50 basis points) and
higher rent and depreciation and amortization expense (140
basis points), as well as higher payroll and employee
benefits expense (150 basis points) due to an unfavorable
workers' compensation reserve adjustment associated with a
1982 workers' compensation claim.
-- Restaurant operating costs at Hardee's company-operated
restaurants increased 220 basis points, compared to the
prior year quarter, to 83.2 percent of company-operated
restaurants revenue. The increase was primarily due to
higher food and packaging costs (200 basis points).
-- For the twenty-eight weeks ended Aug. 13, 2007, the Company
generated earnings before interest, income taxes,
depreciation and amortization, facility action charges and
share-based compensation expense ("Adjusted EBITDA") of
US$92.7 million, versus US$104.1 million in the comparable
prior year period. For the trailing-13 periods ended Aug.
13, 2007, the company generated Adjusted EBITDA of US$169.8
million.
-- The company repurchased 4,022,300 shares of common stock
during the quarter at a total cost of US$70.3 million.
-- Since the end of the second quarter, the company has
repurchased an additional 2,056,500 shares at a total cost
of US$35.5 million.
-- Fully diluted shares outstanding for the twelve and twenty-
eight weeks ended Aug. 13, 2007, were 65.3 million and 68.0
million, respectively.
Executive Commentary
Andrew F. Puzder, president and chief executive officer, said:
"Second quarter operating income was US$23.4 million versus
US$33.9 million in the prior year quarter. This US$10.5 million
decrease in operating income from last year's very favorable
quarter was primarily due to commodity pressures, increased rent
and depreciation and amortization expense and increased workers'
compensation expense. While our restaurant operating costs are
still among the lowest in the industry, we are not satisfied
with this decline. We have taken and will continue to take
steps to reverse this trend."
Carl's Jr.
"Same-store sales at company-operated Carl's Jr. restaurants
increased 2.0 percent during the second quarter. On a two-year
cumulative basis, Carl's Jr. same-store sales were up 6.8
percent for the second quarter. Revenues at company-operated
Carl's Jr. restaurants increased US$0.5 million, or 0.4 percent,
over the prior year quarter and were impacted by the
refranchising of our Oklahoma market during the prior year
quarter," continued Mr. Puzder. "During the quarter, Carl's Jr.
debuted the Teriyaki Burger(TM), and introduced the latest
flavor of its Hand-Scooped Ice Cream Shakes and Malts(TM) --
OrangeSicle(TM). Average unit volume at company-operated Carl's
Jr. restaurants increased to US$1,481,000 -- a US$41,000
increase since the end of fiscal 2007, and an all-time high for
the brand."
"Carl's Jr. restaurant operating costs at its company-operated
restaurants increased by 380 basis points over the prior year
quarter, to 79.6 percent of company-operated restaurants
revenue. The increase was due primarily to higher food and
packaging costs, higher occupancy costs and higher payroll and
employee benefits costs resulting from an unfavorable adjustment
to our worker's compensation claims reserves. Carl's Jr.
generated US$15.1 million of operating income during the second
quarter, compared to US$21.0 million in the prior year quarter."
"In general, we have experienced favorable adjustments to our
workers' compensation claim reserves at Carl's Jr. in recent
years. However, during the second quarter, we were required to
record a US$2.5 million increase to the reserves associated with
an injury claim that occurred in 1982. This US$2.5 million
unfavorable reserve adjustment was partially offset by a US$0.6
million favorable adjustment to our workers' compensation claims
reserves for all other claims and therefore, on a net basis,
Carl's Jr. workers' compensation costs were US$1.9 million above
the prior year quarter. This obviously had a negative impact on
Carl's Jr. payroll and employee benefits expense. We certainly
view this as an unusual event given that this claim occurred in
1982. If this claim had occurred within the past decade, it
would have been covered by our current workers' compensation
insurance program."
Hardee's
"Same-store sales at company-operated Hardee's restaurants
increased 2.9 percent during the second quarter. On a two-year
cumulative basis, Hardee's same-store sales were up almost six
percent for the second quarter," added Mr. Puzder. "Revenue
from company-operated Hardee's restaurants decreased US$1.8
million, or 1.2 percent, from the prior year quarter. This
decrease is due to our refranchising of 46 Hardee's restaurants
during the first half of fiscal 2008. Hardee's featured the
Patty Melt Thickburger(TM) during the quarter. Hardee's also
introduced the Orange Cream flavor of its Hand-Scooped Ice Cream
Shakes & Malts and debuted Blueberry Biscuits during the
breakfast daypart. Hardee's company-operated restaurants
average unit volume increased to US$934,000, a ten-year high for
the brand."
"Hardee's restaurant operating costs at its company-operated
restaurants increased 220 basis points over the prior year
quarter, to 83.2 percent of company-operated restaurants
revenue. The increase was primarily due to a 200 basis point
increase in food and packaging costs. A favorable adjustment to
our workers' compensation claims reserves and menu price
increases more than offset the impact of federal and state
minimum wage increases resulting in a 20 basis point decrease in
labor costs versus the prior year quarter. For the second
quarter, Hardee's generated operating income of US$8.3 million,
compared to US$12.8 million in the prior year quarter."
"With respect to our restaurant operations, we will continue to
focus on the fundamentals of our business, including our premium
product strategy, superior customer service, and effective,
cutting edge advertising. However, as noted above, we are also
very focused on addressing the increase in restaurant operating
costs, particularly with respect to the portion of that increase
driven by increased food and packaging costs."
"During the second quarter, we also took a number of steps to
better position our company for future profitability and growth
while returning capital to our shareholders."
"We returned approximately US$74.0 million to our shareholders
through stock repurchases and cash dividends during the quarter,
including the repurchase of 4,022,300 shares at a total cost of
US$70.3 million. Since the end of the second quarter, we have
repurchased an additional 2,056,500
shares at a total cost of US$35.5 million. For fiscal year 2008
to date, we have repurchased 10,458,820 shares at a total cost
of US$189.2 million. Subsequent to the end of the quarter, we
announced a US$100 million increase in our term loan, and our
lenders approved an amendment to our revolving credit facility
permitting us greater financial flexibility to repurchase shares
and pay cash dividends going forward."
"We also continued with our strategic refranchising of
approximately 200 Hardee's restaurants originally announced in
April. To date, we have completed the refranchising of 80
Hardee's restaurants in the Midwest and Southeast. In addition,
we completed the sale of La Salsa Fresh Mexican Grill(TM). Both
of these actions will allow us to focus our resources more
efficiently on growing our Carl's Jr. and Hardee's brands."
"Finally, we have continued to implement our capital plan
particularly with respect to our remodel and dual branding
initiatives. The results continue to be positive. Going
forward, we will continue to reinvest capital in our brands and
return capital to our shareholders," Mr. Puzder concluded.
As of the end of its fiscal 2008 second quarter, CKE
Restaurants, Inc., through its subsidiaries, had a total of
3,036 franchised, licensed or company-operated restaurants in 42
states and in 13 countries, including 1,111 Carl's Jr.
restaurants and 1,909 Hardee's restaurants.
About CKE Restaurants
Based in Carpinteria, Calif., CKE Restaurants, Inc. (NYSE: CKR)
-- http://www.ckr.com-- through its subsidiaries, franchisees
and licensees, operates some of the most popular U.S. regional
brands in quick-service and fast-casual dining, including the
Carl's Jr.(R), Hardee's(R), La Salsa Fresh Mexican Grill(R) and
Green Burrito(R) restaurant brands. The company operates 3,131
franchised, licensed or company-operated restaurants in 43
states and in 13 countries -- including Mexico and Singapore.
* * *
As reported in the Troubled Company Reporter on Sept. 10, 2007,
Standard & Poor's Ratings Services has revised its outlook on
Carpenteria, California-based CKE Restaurants Inc. to negative
from stable. At the same time, S&P's has affirmed all the
ratings, including the 'BB-' corporate credit rating, on the
company.
CHAPARRAL STEEL: Gerdau Gets Consents from 99.99% of Noteholders
----------------------------------------------------------------
Gerdau Ameristeel Corporation has received consents from the
holders of approximately US$299,885,000 million in aggregate, or
99.96% in aggregate, of Chaparral Steel Company's outstanding
10% Senior Notes due 2013 as of 5:00 p.m., New York City time,
on Sept. 14, 2007, in connection with its tender offer and
consent solicitation for such Notes.
The consents received exceeded the number needed to approve the
adoption of the proposed amendments to the indenture under which
the Notes were issued.
The total consideration for the Notes was determined as of
2:00 p.m., New York City time, on Sept. 14, 2007, using the bid-
side yield on the 3.625% U.S. Treasury Note due July 15, 2009 as
displayed on the Bloomberg Government Pricing Monitor Page PX4
plus 50 basis points, less accrued and unpaid interest to, but
not including, the Early Settlement Date.
The yield on the Reference Security was 4.107% and the tender
offer yield was 4.607%. Accordingly, the total consideration
for each US$1,000 principal amount of Notes validly tendered and
not withdrawn at or prior to 5:00 p.m., New York City time, on
the Early Consent Date is $1,139.25.
The Total Consideration includes a consent payment of US$30 per
US$1,000 principal amount of the Notes, which will be payable
only in respect of the Notes purchased that were validly
tendered and not withdrawn at or prior to the Early Consent
Date.
Holders whose Notes are accepted for payment will also be paid
accrued and unpaid interest from the most recent interest
payment date to, but not including, the applicable Settlement
Date.
Based on the consents received, Chaparral, the guarantors and
the trustee under the indenture governing the Notes have entered
into a supplemental indenture that will, once operative,
eliminate substantially all of the restrictive covenants in the
Note indenture and certain of the events of default, well as
modify certain other provisions contained therein.
The supplemental indenture became operative on Sept. 18, 2007,
the Early Settlement Date, which is the date on which the
company will accept for payment and pay for the Notes validly
tendered and not withdrawn on the Early Consent Date.
Holders who have not yet tendered their Notes may tender until
5:00 p.m., New York City time, on Sept. 28, 2007, unless
extended by the company. Such holders will not be eligible to
receive the consent payment and accordingly will only be
eligible to receive an amount equal to the Total Consideration
less the consent payment.
In accordance with the terms of the Offer to Purchase, tendered
Notes may no longer be withdrawn and delivered consents may no
longer be revoked, unless the tender offer is terminated without
any Notes being purchased or the company is required by law to
permit withdrawal or revocation.
The company's offer to purchase the Notes is subject to the
satisfaction or waiver of the various conditions as described in
the Offer to Purchase.
The tender offer is scheduled to expire at 5:00 p.m., New York
City time, Sept. 28, 2007, subject to the company's right to
amend, extend or terminate the tender offer at any time.
J.P. Morgan Securities Inc. is the sole Dealer Manager for the
tender offer and the consent solicitation and can be contacted
at (212) 270-1477 (collect).
Global Bondholder Services Corporation is the Information Agent
and the Depositary for the tender offer and the consent
solicitation and can be contacted at (212) 430-3774 (collect) or
toll free at (866) 952-2200.
About Gerdau Ameristeel Corporation
Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation
(NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a
mini-mill steel producer in North America. Through its
vertically integrated network of 17 mini-mills, 17 scrap
recycling facilities and 52 downstream operations, Gerdau
Ameristeel serves customers throughout North America. The
company's products are sold to steel service centers, steel
fabricators, or directly to original quipment manufactures for
use in a variety of industries, including construction, cellular
and electrical transmission, automotive, mining and equipment
manufacturing.
About Chaparral Steel Company
Headquartered in Midlothian, Texas, Chaparral Steel Company
(Nasdaq: CHAP)-- http://www.chaparralsteel.com/-- is a producer
of structural steel products in North America. The company is
also a producer of steel bar products. The company operates two
mini-mills located in Midlothian, Texas and Dinwiddie County,
Virginia that together have an annual rated production capacity
of 2.8 million tons of steel. Founded in July 1973, the company
manufactures over 230 different types, sizes and grades of
structural steel and bar products. The company markets its
products throughout the United States, Canada and Mexico, and to
a limited extent in Europe.
* * *
Mood'y Investor Services placed Chaparral Steel Company's
probability of default and long term corporate family ratings at
"Ba3" on in July 2007.
DISTRIBUTED ENERGY: Creates Cell Stacks for Hamilton Sundstrand
---------------------------------------------------------------
Distributed Energy Systems' hydrogen generation business was
selected by Hamilton Sundstrand, a subsidiary of United
Technologies Corporation, to develop and supply electrolysis
cell stacks that produce breathable oxygen within nuclear
submarines. As a first step in this relationship, the
parties have entered into a contract for cooperative development
of a cell stack suitable for the next generation U.S. and
British Navy submarines. The contract, which extends through
fall of 2008, involves development work valued in excess of US$1
million.
Distributed Energy Systems' cell stacks will enable the water
electrolysis-based oxygen generation systems to split water into
its hydrogen and oxygen elements. Once these new cell stacks
are successfully developed, Hamilton Sundstrand anticipates
Distributed Energy Systems will supply production versions to
Hamilton Sundstrand for use in new nuclear submarine programs
for which Hamilton Sundstrand oxygen generating systems may be
selected.
Hamilton Sundstrand Space, Land & Sea, a business unit of
Hamilton Sundstrand, designs and manufactures oxygen generating
systems, atmosphere monitoring instruments, and propulsion
systems for the U.S. Navy and international navies. This
undersea expertise complements its extensive space heritage in
space suits, life support, power management and distribution,
actuation, and thermal management systems provided to NASA and
their international partners for human and launch systems since
the Apollo era.
"We selected Distributed Energy Systems as our supplier for this
key military equipment as a result of their advanced technical
capability in electrolysis, their manufacturing expertise and
the proven reliability of their equipment," said Larry McNamara,
director of Strategy and Development for Hamilton Sundstrand
Space, Land & Sea. "We believe this relationship will provide a
long term benefit for Hamilton Sundstrand's advanced life
support systems and technologies for our Navy customers."
"Continuing to work with Hamilton Sundstrand on this important
defense industry project is a vote of confidence in our
technology and the people who have developed and continue to
refine it," said Robert Friedland, senior vice president of
Distributed Energy Systems and head of its hydrogen business.
"Moving forward with this program, we expect to achieve long-
term benefits for our nation's defense, as well as for our
company and Hamilton Sundstrand."
With 2006 revenues of US$5 billion, Hamilton Sundstrand employs
approximately 18,000 people worldwide and is headquartered in
Windsor Locks, Connecticut. Among the world's largest suppliers
of technologically advanced aerospace and industrial products,
the company designs, manufactures and services aerospace systems
and provides integrated system solutions for commercial,
regional, corporate and military aircraft. It also is a major
supplier for international space programs. United Technologies
provides a broad range of high-technology products and support
services to the aerospace and building systems industries.
About Distributed Energy Systems
Based in Wallingford, Connecticut, Distributed Energy Systems
Corp. (Nasdaq: DESC) -- http://www.distributed-energy.com/--
creates and delivers products and solutions to the emerging
decentralized energy marketplace, giving users greater control
over their energy cost, quality and reliability. The company
delivers a combination of practical, ready-today energy
solutions and the solid business platforms for capitalizing on
the changing energy landscape. The company has operations in
Mexico.
Going Concern Doubt
As reported in the Troubled Company Reporter on Mar. 22, 2007,
PricewaterhouseCoopers LLP expressed substantial doubt about
Distributed Energy Systems Corp.'s ability to continue as a
going concern after auditing the company's financial statements
for the year ended Dec. 31, 2006. The auditing firm points to
the company's recurring operating losses and cash outflows from
operations.
* * *
As reported in the Troubled Company Reporter on May 16, 2007,
Distributed Energy Systems Corp. reported a net loss of US$14.6
million for the first quarter ended Mar. 31, 2007, compared with
a net loss of US$7.3 million for the same period in 2006. For
the first quarter ended Mar. 31, 2007, revenues increased to
US$8.4 million from US$7.6 million in the same period of 2006.
EMPRESAS ICA: Will Buy 50% Stake in Viabilis
--------------------------------------------
Empresas ICA S.A.B. de C.V. told Business News Americas that it
will purchase a 50% shareholding in infrastructure firm
Viabilis.
BNamericas relates that Viabilis has a contract for the
construction and financing of the 25.5-kilometer, six-lane Rio
de los Remedios-Ecatepec tollroad in Mexico. The project would
cost MXN5.2 billion. It includes covering the Rio de los
Remedios canal, which forms part of a long-term plan for
improving water quality in the Valley of Mexico. Construction
for the project will last for 34 months. It will be completed
in the fourth quarter 2010.
Empresas ICA didn't tell BNamericas the price for the stake.
Empresas ICA -- http://www.ica.com.mx/-- the largest
engineering, construction, and procurement company in Mexico,
was founded in 1947. ICA has completed construction and
engineering projects in 21 countries. ICA's principal business
units include civil construction and industrial construction.
Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.
As reported in the Troubled Company Reporter-Latin America on
Sept. 20, 2007, Standard & Poor's Ratings Services affirmed its
'BB-' long-term corporate credit rating on Empresas ICA S.A.B.
de C.V. The outlook was stable.
FIRST DATA: Prices Tender Offers for Outstanding Debt Securities
----------------------------------------------------------------
First Data Corporation has determined the total consideration
and tender offer consideration to be paid pursuant to its cash
tender offers and related consent solicitations in respect of an
aggregate of approximately US$2.2 billion of its outstanding
unsecured debt securities, which we refer to as the "Notes."
The total consideration for the Notes, which will be payable in
respect of Notes accepted for payment that were validly tendered
with consents and not withdrawn at or prior to 5:00 p.m., New
York City time, on Aug. 16, 2007, will be an amount equal to the
total consideration for each US$1,000 principal amount of Notes.
The tender offer consideration for the Notes, which will be
payable in respect of Notes accepted for payment that are
validly tendered subsequent to 5:00 p.m., New York City time, on
Aug. 16, 2007 but at or prior to 8:00 a.m., New York City time,
on Sept. 24, 2007, will be an amount equal to the total
consideration minus the applicable consent payment. In each
case, holders whose Notes are accepted for payment in the tender
offers will receive accrued and unpaid interest in respect of
such purchased Notes from the last interest payment date to, but
not including, the payment date for Notes purchased in the
tender offers.
The tender offers and the related consent solicitations relating
to the Notes are made upon the terms and conditions set forth in
the company's Offer to Purchase and Consent Solicitation
Statement dated Aug. 3, 2007, and the related Consent and Letter
of Transmittal, as amended. The tender offers and consent
solicitations are subject to the satisfaction of certain
conditions, including the merger of First Data with an affiliate
of Kohlberg Kravis Roberts & Co. pursuant to the previously
announced merger agreement having occurred, or the Merger
occurring substantially concurrent with the Offer Expiration
Date.
First Data has retained Citigroup Global Markets Inc. to act as
the lead dealer manager for the tender offers and lead
solicitation agent for the consent solicitations, and they can
be contacted at 800-558-3745 (toll-free) or 212-723-6106
(collect). First Data has also retained Credit Suisse
Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC
Securities (USA) Inc. and Lehman Brothers Inc. to act as co-
dealer managers for the tender offers and co-solicitation agents
for the consent solicitations. Deutsche Bank Luxembourg SA has
been appointed Luxembourg Tender Agent for the Offers and may be
contacted at:
Deutsche Bank Luxembourg SA
Trust & Securities Services
2 BLD Konrad Adenauer
L-1115 Luxembourg
Tel: 00352-421-22-460
Fax: 00352-421-22-426
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).
About First Data
First Data Corp. (NYSE: FDC) -- http://www.firstdata.com/--
provides electronic commerce and payment solutions for
businesses worldwide, including those in New Zealand, the
Netherlands and Mexico. The company's portfolio of services and
solutions includes merchant transaction processing services;
credit, debit, private-label, gift, payroll and other prepaid
card offerings; fraud protection and authentication solutions;
receivables management solutions; electronic check acceptance
services through TeleCheck; as well as Internet commerce and
mobile payment solutions. The company's STAR Network offers
PIN-secured debit acceptance at 2 million ATM and retail
locations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 19, 2007, Moody's Investors Service has assigned these
ratings:
-- Corporate Family Rating - B2
-- US$2 billion senior secured revolving credit facility
(expires 2013) - Ba3, LGD2 (27%)
-- US$13 billion senior secured Term Loan B (due 2014) - Ba3,
LGD2 (27%)
GREAT PANTHER: Hires Charles Brown as Chief Operating Officer
-------------------------------------------------------------
Great Panther Resources Limited disclosed last week the
appointment of Mr. Charles Brown to the position of chief
operating officer of the company.
The company said that Mr. Charles Brown has more than 30 years
experience successfully operating and developing mines in Canada
and internationally. Having graduated from Nottingham
University, U.K. with an honours degree in Mining Engineering,
his experience ranges from operating small gold mines in Ontario
and Venezuela to being Managing Director of Tara Mines Ltd. in
Ireland, where he was responsible for one of the world's largest
underground zinc mines. Most recently, he was the project
manager for Newgold Inc. during its underground exploration and
development program at the Afton Mine in British Columbia,
leading to the completion of a positive feasibility study.
"With production increasing at both our Topia and Guanajuato
Mines, we are focusing on improving efficiencies to better
reflect the outstanding potential of these two operations, and
we believe that Charlie will be instrumental in achieving our
goals. We are extremely pleased to have Charlie join Great
Panther, particularly in the current competitive environment for
qualified mining engineers", said Bob Archer, the company's
president & chief executive officer.
The company also disclosed that it has granted stock options to
two senior officers, including Mr. Brown, and to three employees
to purchase an aggregate of up to 550,000 shares.
About Great Panther
Headquartered in Vancouver, Canada, Great Panther Resources
Limited (TSX: GPR) -- http://www.greatpanther.com/-- is a
mining and exploration company. The company's current
activities are focused on the mining of precious and base metals
from its wholly owned properties in Mexico. In addition, Great
Panther is also involved in the acquisition, exploration and
development of other properties in Mexico.
Going Concern Doubt
KPMG LLP, in Vancouver, Canada, expressed substantial doubt
about Great Panther Resources Ltd.'s ability to continue as a
going concern after auditing the company's consolidated
financial statements for the year ended Dec. 31, 2006, and 2005.
The auditing firm pointed to the company's recurring losses and
operating cash flow deficiencies.
INT'L RECTIFIER: Gets NYSE Notice Due to 10-K Filing Delay
----------------------------------------------------------
International Rectifier Corporation has received, as expected, a
notice from the NYSE indicating that International Rectifier is
not in compliance with the NYSE listed company manual Section
802.01E due to a delay in the filing of the company's annual
report on Form 10-K for the fiscal year ended June 30, 2007.
As reported in the Troubled Company Reporter-Latin America on
Sept. 17, 2007, the company has filed with the U.S. Securities
and Exchange Commission saying that it will be unable to timely
file its Annual Report on Form 10-K for the fiscal year ended
June 30, 2007.
The delay arises from the previously disclosed investigation
being conducted by the Audit Committee of the Board of the
Directors, and the reconstruction and restatement of financial
statements and other matters described in the company's public
filings with the Securities and Exchange Commission.
The company plans to file its Form 10-K for the fiscal year
ended June 30, 2007 as promptly as practicable following
completion of these matters.
The company's shares remain listed on the NYSE and the company
intends to cooperate with the procedures communicated to the
company by the NYSE.
International Rectifier Corporation -- http://www.irf.com/--
(NYSE:IRF) is a world leader in power management technology.
IR's analog, digital, and mixed signal ICs, and other advanced
power management products, enable high performance computing and
save energy in a wide variety of business and consumer
applications. Leading manufacturers of computers, energy
efficient appliances, lighting, automobiles, satellites,
aircraft, and defense systems rely on IR's power management
solutions to power their next generation products. The company
has manufacturing facilities in the U.S., Mexico, United
Kingdom, Germany and Italy; and has subsidiaries in Japan and
Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 14, 2007, Standard & Poor's Ratings Services said that its
'BB' corporate credit rating on International Rectifier Corp.
remains on CreditWatch with negative implications.
URS CORP: S&P Puts Bank Loan Rating at BB+ on US$2.1 Bil. Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB+' bank
loan rating and '2' recovery rating to URS Corp.'s proposed
US$2.1 billion senior secured credit facilities, indicating
expectations of substantial (70%-90%) recovery in the event of a
payment default. The facilities are rated the same as the
corporate credit rating on the company.
The facilities are expected to consist of:
-- A five-year, US$700 million revolving credit facility, all
of which is available for LOCs;
-- A five-year, US$1.1 billion term loan A facility; and
-- A 5.5-year, US$300 million term loan B facility.
The company also has the option to add a synthetic LOC facility
of up to US$500 million at any time within four years of the
closing date.
Headquartered in San Francisco, California, URS Corporation
(NYSE:URS) -- http://www.urscorp.com/-- offers a comprehensive
range of professional planning and design, systems engineering
and technical assistance, program and construction management,
and operations and maintenance services for transportation,
facilities, environmental, water/wastewater, industrial
infrastructure and process, homeland security, installations and
logistics, and defense systems. The company operates in more
than 20 countries with approximately 29,500 employees providing
engineering and technical services to federal, state and local
governmental agencies as well as private clients in the
chemical, pharmaceutical, oil and gas, power, manufacturing,
mining and forest products industries. The company also has
offices in Argentina, Australia, Belgium, China, France,
Germany, and Mexico, among others.
WENDY'S INTERNATIONAL: More Buyers Lining Up, WSJ Says
------------------------------------------------------
The sale of Wendy's International Inc. has drawn interests from
more than a dozen parties, including some private-equity firms,
who recently signed confidentiality agreements with regards to
the sale, The Wall Street Journal reports, citing a person
familiar with the situation.
To date however, only Triarc Companies Inc. has publicly stated
its interest to purchase the company.
As reported in the Troubled Company Reporter on Aug. 1, 2007,
Triarc chairman Nelson Peltz sent a letter asking the Wendy's
International's special committee working on the sale to
consider his company's purchase offer. In his letter, Mr. Peltz
dislosed that Triarc's offer could range from US$37.00 to
US$41.00 per share, which could increase further depending on
due diligence results.
Mr. Peltz also noted that Triarc, as a natural, strategic buyer
for Wendy's, should be encouraged to participate in the sale
process.
Headquartered in Dublin, Ohio, Wendy's International Inc. (NYSE:
WEN) -- http://www.wendysintl.com/-- and its subsidiaries
operate, develop, and franchise a system of quick service and
fast casual restaurants in the United States, Canada, Mexico,
Argentina, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Moody's Investors Service lowered all ratings of
Wendy's International, Inc. and placed all ratings on review for
further possible downgrade. Affected ratings include the
company's Ba2 corporate family rating which was lowered to Ba3
and its (P)B1 preferred stock shelf rating which was lowered to
(P)B2.
Additionally, Standard & Poor's Ratings Services lowered its
corporate credit and senior unsecured debt ratings on Wendy's
International Inc. to 'BB-' from 'BB+'. All ratings remain on
CreditWatch with negative implications, where they were placed
on April 26, 2007.
WENDY'S INTERNATIONAL: Franchisees Want Say in Sale Proceedings
---------------------------------------------------------------
Wendy's International Inc.'s franchisees have asked that they be
included in talks regarding the sale of the company, Bloomberg
reports.
Bloomberg relates that in a letter to the company signed by
representatives of more than 1,100 restaurants, the franchisees
asked to be included in discussions and said that ignoring them
could result in "a very public renunciation."
In response, Bloomberg adds, Chairman James Pickett said that
although the franchisees are entitled to their opinions, the
idea that the company is not concerned with them is
"disappointing."
As of July 1, Wendy's had 4,661 franchisee-owned restaurants and
1,297 company-owned locations, Bloomberg says.
Headquartered in Dublin, Ohio, Wendy's International Inc. (NYSE:
WEN) -- http://www.wendysintl.com/-- and its subsidiaries
operate, develop, and franchise a system of quick service and
fast casual restaurants in the United States, Canada, Mexico,
Argentina, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Moody's Investors Service lowered all ratings of
Wendy's International, Inc. and placed all ratings on review for
further possible downgrade. Affected ratings include the
company's Ba2 corporate family rating which was lowered to Ba3
and its (P)B1 preferred stock shelf rating which was lowered to
(P)B2.
Additionally, Standard & Poor's Ratings Services lowered its
corporate credit and senior unsecured debt ratings on Wendy's
International Inc. to 'BB-' from 'BB+'. All ratings remain on
CreditWatch with negative implications, where they were placed
on April 26, 2007.
=====================
P U E R T O R I C O
=====================
ADELPHIA COMMS: Wants to Close 7 More Affiliates' Ch. 11 Cases
--------------------------------------------------------------
Reorganized Adelphia Communications Corporation and its
affiliates ask the U.S. Bankruptcy Court for the Southern
District of New York to further close seven of their affiliates'
bankruptcy cases:
Case No. Debtor
-------- ------
02-41758 Manchester Cablevision, Inc.
02-41782 Mickelson Media, Inc.
02-41785 E. & E. Cable Service, Inc.
02-41787 Star Cable, Inc.
02-41788 Grafton Cable Company
02-41869 Wilderness Cable Company
02-41900 Southeast Florida Cable, Inc.
The Court has already closed more than 100 of the Reorganized
ACOM Debtors' bankruptcy cases at the Debtors' behest.
Shelley C. Chapman, Esq., at Willkie Farr & Gallagher LLP, in
New York, maintains that it is in the best interests of the ACOM
Debtors and their estates to merge, combine, consolidate, or
dissolve the other Debtors.
Objections, if any, to the ACOM Debtors' request must be
electronically filed with the Court and served upon these
parties no later than 4:00 p.m., prevailing Eastern time, on
Sept. 28, 2007:
* Willkie Farr & Gallagher LLP, the Debtors' counsel
* The Office of the U.S. Trustee
* Kasowitz, Benson, Torres & Friedman LLP, counsel to the
Official Committee of Unsecured Creditors
If no objections are timely filed, Judge Gerber may approve the
ACOM Debtors' request without further court order, Ms. Chapman
relates.
As reported in yesterday's Troubled Company Reporter, the
Debtors had asked to Court to close the Chapter 11 cases of 37
more affiliates.
About Adelphia
Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a
cable television company. Adelphia serves customers in 30
states and Puerto Rico, and offers analog and digital video
services, Internet access and other advanced services over its
broadband networks. The company and its more than 200
affiliates filed for Chapter 11 protection on June 25, 2002
(Bankr. S.D.N.Y. Lead Case No. 02-41729). Willkie Farr &
Gallagher represents the Debtors in their restructuring efforts.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.
On Jan. 5, 2007, the Court entered a written confirmation order
for Adelphia Communication's Modified 5th Amended Chapter 11
Plan. The Plan became effective on Feb. 13, 2007.
Century Communications Corporation, Adelphia's wholly owned
indirect subsidiary, filed for Chapter 11 protection on June 10,
2002. Century's case has been jointly administered to Adelphia
Communications proceedings. Century operates cable television
services in Colorado, California and Puerto Rico. Lawyers at
Willkie, Farr & Gallagher represent Century.
Century/ML Cable Venture, a New York joint venture of Century
Communications and ML Media Partners, LP, filed for Chapter 11
protection on Sept. 30, 2002. Century/ML is a holder of the
cable franchise in Leviton, Puerto Rico. Lawyers at Willkie,
Farr & Gallagher represent Century/ML. On Sept. 7, 2005, the
Court confirmed Century/ML's Plan.
Devon Mobile Communications, L.P., which is 49% owned by
Adelphia Communications, filed for Chapter 11 protection on
Aug. 19, 2002 (Bankr. D. Del. Case No. 02-12431). Saul Ewing,
LLP, is represents Devon.
Adelphia Business Solutions, Inc., and its debtor-affiliates
filed for Chapter 11 protection petitions on March 27, 2002.
These debtors' restructurings are jointly administered under
case number 02-11388 and these debtors are represented by
lawyers at Weil, Gotshal & Manges. Adelphia Business is a 2001
spin-out from Adelphia Communications Corporation. In March
2003, ABIZ began doing business as TelCove. The Court confirmed
their 3rd Amended Plan on Dec. 19, 2003 and Adelphia Business
emerged from chapter 11 on April 7, 2004.
Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family. In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC. The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642). Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.
(Adelphia Bankruptcy News, Issue No. 176; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
ADELPHIA COMMS: Reaches US$167.5-Mln Settlement with Deloitte
-------------------------------------------------------------
The Adelphia Recovery Trust stated in a press release that that
it has reached a US$167.5 million settlement of its claims
against Adelphia's former auditor Deloitte & Touche LLP in the
lawsuit entitled Adelphia Communications Corp. v. Deloitte &
Touche LLP, No. 000598 (Pa. Court of Common Pleas, Phila. Cty).
Adelphia's claims against Deloitte & Touche were transferred to
the Trust under the terms of the First Modified Fifth Amended
Joint Chapter 11 Plan for Adelphia Communications Corporation
and Certain of its Affiliated Debtors on Feb. 13, 2007.
Under the terms of the settlement, Deloitte & Touche will
transfer the US$167.5 million settlement payment into an
interest-bearing escrow account for the benefit of the Trust.
The settlement was negotiated under the supervision of the
Honorable Daniel Weinstein (Ret.). The Trust stated through a
spokesperson: "We are pleased with the settlement, which is
among the largest settlements ever reached between a public
accounting firm and its audit client. This settlement does not
resolve the Trust's claims against Adelphia's former lenders and
others who took part in a massive financial fraud perpetrated
against Adelphia, and the Trust will continue to prosecute those
claims vigorously to conclusion."
The Trust in its discretion may retain some or all of the
settlement proceeds for funding its operations, including
expenses incurred to maintain and administer the Trust and
prosecute Trust litigation, all subject to the terms and
conditions of the Plan and the Declaration of Trust. No
decision has been made as to the amount or timing of any
distributions to Trust interest holders.
The Adelphia Recovery Trust is a Delaware Statutory Trust that
was formed pursuant to the First Modified Fifth Amended Joint
Chapter 11 Plan of Reorganization of Adelphia Communications
Corporation and Certain Affiliated Debtors, which became
effective Feb. 13, 2007. The Trust holds certain litigation
claims transferred pursuant to the Plan against various third
parties and exists to prosecute the causes of action transferred
to it for the benefit of holders of Trust interests.
About Adelphia
Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a
cable television company. Adelphia serves customers in 30
states and Puerto Rico, and offers analog and digital video
services, Internet access and other advanced services over its
broadband networks. The company and its more than 200
affiliates filed for Chapter 11 protection on June 25, 2002
(Bankr. S.D.N.Y. Lead Case No. 02-41729). Willkie Farr &
Gallagher represents the Debtors in their restructuring efforts.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.
On Jan. 5, 2007, the Court entered a written confirmation order
for Adelphia Communication's Modified 5th Amended Chapter 11
Plan. The Plan became effective on Feb. 13, 2007.
Century Communications Corporation, Adelphia's wholly owned
indirect subsidiary, filed for Chapter 11 protection on June 10,
2002. Century's case has been jointly administered to Adelphia
Communications proceedings. Century operates cable television
services in Colorado, California and Puerto Rico. Lawyers at
Willkie, Farr & Gallagher represent Century.
Century/ML Cable Venture, a New York joint venture of Century
Communications and ML Media Partners, LP, filed for Chapter 11
protection on Sept. 30, 2002. Century/ML is a holder of the
cable franchise in Leviton, Puerto Rico. Lawyers at Willkie,
Farr & Gallagher represent Century/ML. On Sept. 7, 2005, the
Court confirmed Century/ML's Plan.
Devon Mobile Communications, L.P., which is 49% owned by
Adelphia Communications, filed for Chapter 11 protection on
Aug. 19, 2002 (Bankr. D. Del. Case No. 02-12431). Saul Ewing,
LLP, is represents Devon.
Adelphia Business Solutions, Inc., and its debtor-affiliates
filed for Chapter 11 protection petitions on March 27, 2002.
These debtors' restructurings are jointly administered under
case number 02-11388 and these debtors are represented by
lawyers at Weil, Gotshal & Manges. Adelphia Business is a 2001
spin-out from Adelphia Communications Corporation. In March
2003, ABIZ began doing business as TelCove. The Court confirmed
their 3rd Amended Plan on Dec. 19, 2003 and Adelphia Business
emerged from chapter 11 on April 7, 2004.
Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family. In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC. The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642). Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates chapter 11
cases.
(Adelphia Bankruptcy News, Issue No. 176; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
AVIS BUDGET: Selects Halogen Software to Help Future Growth
-----------------------------------------------------------
Avis Budget Group has selected Halogen eAppraisal and
eSuccession. The international provider of vehicle rental
services is focused on supporting its high performance workforce
and preparing for future growth using talent pool driven
succession planning.
Avis Budget Group will be moving to the Web-based system,
replacing the existing paper-based system over the next few
months. Halogen was selected following a review of available
solutions, with Avis Budget Group opting for a hosted deployment
model. "Security is a key issue for us, and we are satisfied
that Halogen can meet all of our requirements for purchasing a
hosted solution. With this new system we will have the power to
drive talent management to a strategic level and position our
organization for growth, all without placing a strain on IT.
Halogen was very flexible in meeting our specific needs,"
explained Anna Cosentino, Senior Manager Organizational
Development & Loyalty, Avis Budget Group.
The Halogen solution will be used primarily by Avis Budget Group
office staff and managers to execute employee appraisals and
talent-pool based succession planning.
About Halogen Software
With nearly 1000 customers worldwide, Halogen Software Inc. --
http://www.halogensoftware.com-- has established itself as the
leading provider of employee performance and talent management
solutions. Halogen offers powerful, easy-to-use, and affordable
Web-based software that dramatically improves HR and line-
manager productivity.
About Avis Budget
Avis Budget Group, Inc. -- http://www.avisbudgetgroup.com/--
(NYSE:CAR) provides vehicle rental services, with operations in
more than 70 countries. Through its Avis and Budget brands, the
company is the largest general-use vehicle rental company in
each of North America, Australia, New Zealand and certain other
regions. Avis Budget Group is headquartered in Parsippany, New
Jersey, and has more than 30,000 employees.
Avis Budget Group has expanded its electronic toll collection
with new services in Florida, Colorado and Puerto Rico.
* * *
As reported in the Troubled Company Reporter on Feb. 14, 2007,
Standard & Poor's Ratings Services assigned its 'BB+' corporate
credit rating to Avis Budget Group Inc., parent of Avis Budget
Car Rental LLC. According to S&P, the rating assignment follows
after Avis Budget Group's statement that it will guarantee Avis
Budget Car Rental's unsecured notes.
GENESCO INC: Shareholders Approve Acquisition by Finish Line
------------------------------------------------------------
Genesco Inc.'s shareholders voted to approve the merger
agreement providing for the acquisition of Genesco by The Finish
Line, Inc. at a special meeting of shareholders held on
Sept. 17, 2007, at Genesco's executive offices in Nashville,
Tennessee.
Based on the preliminary tally of shares voted, approximately
73% of the shares of Genesco capital stock present and voting at
the special meeting (in person or by proxy) voted in favor of
the proposed merger agreement. The number of shares that voted
to approve the merger agreement represents approximately 72% of
the total number of shares of Genesco capital stock outstanding
and entitled to vote as of Aug. 6, 2007, the record date for the
special meeting. If the merger is completed, the holders of
Genesco common stock will be entitled to receive $54.50 in cash,
without interest, for each share of Genesco common stock owned
by such holders.
Following the vote on the merger agreement, the special meeting
was adjourned due to the lack of a quorum with respect to a
proposal to approve and adopt a charter amendment that would
permit the redemption of Genesco's Employees' Subordinated
Convertible Preferred Stock following the completion of the
merger. The special meeting is expected to be reconvened in
order to take a vote on the charter amendment proposal following
the completion of the merger. The approval and adoption of the
charter amendment is not a condition to the completion of the
merger.
About Finish Line
Headquartered in Indianapolis, Indiana, The Finish Line Inc.
(Nasdaq: FINL) -- http://www.finishline.com/-- is a mall-based
specialty retailer operating under the Finish Line, Man Alive
and Paiva brand names. The company currently operates 697
Finish Line stores in 47 states and online, 95 Man Alive stores
in 19 states and online and 15 Paiva stores in 10 states and
online.
About Genesco Inc.
Based in Nashville, Tennessee, Genesco Inc. (NYSE: GCO) --
http://www.genesco.com/-- is a specialty retailer of footwear,
headwear and accessories in more than 1,900 retail stores in the
U.S. and Canada, including Puerto Rico, principally under the
names Journeys, Journeys Kidz, Shi by Journeys, Johnston &
Murphy, Underground Station, Hatworld, Lids, Hat Zone, Cap
Factory, Head Quarters and Cap Connection. The company also
sells footwear at wholesale under its Johnston & Murphy brand
and under the licensed Dockers.
* * *
As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services said that its ratings on
specialty Genesco Inc. remain on CreditWatch with developing
implications, following the announcement that it has rejected
Foot Locker Inc.'s conditional bid to acquire Genesco for
approximately US$1.3 billion (US$51.00 per share) in cash.
In April 2007, S&P placed its ratings, including the 'BB-'
corporate credit rating, on Genesco Inc. on CreditWatch with
developing implications after Foot Locker launched its bid for
Genesco.
The Foot Locker deal also prompted Moody's Investors Service to
place the ratings of Genesco on review for possible downgrade.
Affected ratings include the company's "Ba3" corporate family
rating.
GENESCO INC: UBS Halts Finish Line Deal Pending Additional Info
---------------------------------------------------------------
The Finish Line Inc. said it has received a request from UBS
Loan Finance LLC and UBS Securities LLC for additional financial
and other information regarding Genesco Inc., and has forwarded
the request to Genesco. As previously announced, UBS provided
The Finish Line with a commitment letter regarding financing for
its proposed acquisition of Genesco.
In a separate communication to The Finish Line, UBS also stated
that it "intends to defer any further work on the remaining
closing documents ... pending the results of its analyses of
Genesco's financial condition and performance." UBS said that
should it "be able to obtain a better understanding of Genesco's
financial condition and performance, UBS believes that if needed
the remaining documents could be completed expeditiously
thereafter."
The Finish Line noted that while it continues to evaluate its
options in accordance with the terms of the merger agreement, it
intends to continue working on the closing documents. The
company does not intend to make further comments at this time.
About Finish Line
Headquartered in Indianapolis, Indiana, The Finish Line Inc.
(Nasdaq: FINL) -- http://www.finishline.com/-- is a mall-based
specialty retailer operating under the Finish Line, Man Alive
and Paiva brand names. The company currently operates 697
Finish Line stores in 47 states and online, 95 Man Alive stores
in 19 states and online and 15 Paiva stores in 10 states and
online.
About Genesco Inc.
Based in Nashville, Tennessee, Genesco Inc. (NYSE: GCO) --
http://www.genesco.com/-- is a specialty retailer of footwear,
headwear and accessories in more than 1,900 retail stores in the
U.S. and Canada, including Puerto Rico, principally under the
names Journeys, Journeys Kidz, Shi by Journeys, Johnston &
Murphy, Underground Station, Hatworld, Lids, Hat Zone, Cap
Factory, Head Quarters and Cap Connection. The company also
sells footwear at wholesale under its Johnston & Murphy brand
and under the licensed Dockers.
* * *
As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services said that its ratings on
specialty Genesco Inc. remain on CreditWatch with developing
implications, following the announcement that it has rejected
Foot Locker Inc.'s conditional bid to acquire Genesco for
approximately US$1.3 billion (US$51.00 per share) in cash.
In April 2007, S&P placed its ratings, including the 'BB-'
corporate credit rating, on Genesco Inc. on CreditWatch with
developing implications after Foot Locker launched its bid for
Genesco.
The Foot Locker deal also prompted Moody's Investors Service to
place the ratings of Genesco on review for possible downgrade.
Affected ratings include the company's "Ba3" corporate family
rating.
NUTRITIONAL SOURCING: U.S. Trustee Appoints 7-Member Committee
--------------------------------------------------------------
Kelly Beaudin Stapleton, United States Trustee for Region 3,
appointed seven members to the Official Committee of Unsecured
Creditors in Nutritional Sourcing Corp.'s Chapter 11 case.
The Creditors Committee members are:
1. Wilmington Trust Company
Attn: James J. McGinley
Rodney Square N., 1100, N. Market St.
Wilmington, DE 19890-0001
Tel: (302) 651-1000
Fax: (302) 636-4145
2. Fidelity Management & Research Company
Attn: Nate VanDuzer
82 Devonshire Street, V13H
Boston, MA 02109
Tel: (617) 392-8129
Fax: (617) 392-1605
3. Everest Capital Inc.
Attn: John Malloy
2061 South Bayshore Dr., Suite 1700
Miami, FL 33133
Tel: (305) 666-1700
Fax: (305) 666-1919
4. Pension Benefit Guaranty Corporation
Attn: Mike Strollo
1200 K Street, Northwest
Washington, D.C. 20005
Tel: (202) 326-4000 ext: 4907
Fax: (202) 326-4112
5. Coca-Cola Puerto Rico Bottlers
d/b/a CCI Limited Partnership
Attn: Roger A. Tovar, Chief Operating Officer
P.O. Box 51895
Toa Baja, PR, 00950-1985
Tel: (787) 288-6400 ext. 3001
Fax: (787) 282-6526
6. Plaza Provision Company
Attn: Robert A. Cimino
P.O. Box 363328
San Juan, PR 00936-3328
Tel: (787) 781-2070
Fax: (787) 781-2210
7. Suiza Dairy Corporation
Attn: Benedicto Marrero
P.O. Box 363207
San Juan, PR 00936-9427
Tel: (787) 792-7300
Fax: (787) 792-9427
Official creditors' committees have the right to employ legal
and accounting professionals and financial advisors, at the
Debtors' expense. They may investigate the Debtors' business
and financial affairs. Importantly, official committees serve
as fiduciaries to the general population of creditors they
represent. Those committees will also attempt to negotiate the
terms of a consensual Chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtors and other core parties-in-interest. If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee. If the
Committee concludes reorganization of the Debtor is impossible,
the Committee will urge the Bankruptcy Court to convert the
Chapter 11 cases to a liquidation proceeding.
Based in Pompano, Florida, Nutritional Sourcing Corp., fdba
Pueblo Xtra International, Inc. -- http://www.puebloxtra.com/--
owns and operates supermarkets and video rental shops in Puerto
Rico and the US Virgin Islands. The company and two affiliates,
Pueblo International, L.L.C., and F.L.B.N., L.L.C., filed for
chapter 11 protection on Aug. 3, 2007 (Bankr. D. Del. Case Nos.
07-11038 through 07-11040). Kay Scholer LLC represents the
Debtors in their restructuring efforts. Pepper Hamilton LLP
serves as their Delaware counsel. When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts between US$1 million and US$100 million.
NUTRITIONAL SOURCING: Committee Wants FTI as Financial Advisor
--------------------------------------------------------------
The Official Committee of Unsecured Creditors of Nutritional
Sourcing Corp. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the District of Delaware for permission to retain FTI
Consulting Inc. as its financial advisors.
FTI will perform financial advisory services for the committee,
nunc pro tunc to Aug. 13, 2007. Specifically, FTI will:
a. assist the Committee in the review of financial related
disclosures required by the Court, including the schedules
of assets and liabilities, the statement of financial
affairs and monthly operating reports;
b. assist the Committee with information and analyses
required pursuant to the Debtors' debtor-in-possession
financing including, the preparation for hearings
regarding the use of cash collateral and DIP financing;
c. assist with a review of the Debtors' short-term cash
management procedures;
d. assist with a review of critical employee benefit and
vendor programs;
e. assist with a review of the Debtors' performance of
cost/benefit evaluations with respect to the affirmation
or rejection of various executory contracts and leases;
f. assist in the review of financial information distributed
by the Debtors to creditors and others, including cash
flow projections and budgets, cash receipts and
disbursement analysis, analysis of various asset and
liability accounts, and analysis of proposed transactions
for which Court approval is sought;
g. attend meetings and assist in discussions with the
Debtors, potential investors, banks, other secured
lenders, the Committee and any other official committees
organized in the chapter 11 proceedings, the U.S. Trustee,
other parties-in-interest and professionals hired, as
requested;
h. assist in the evaluation of the asset sale process and
bids received;
i. assist in the review and preparation of information and
analysis necessary for the confirmation of a plan in the
chapter 11 proceedings;
j. assist in the evaluation and analysis of avoidance
actions, including fraudulent conveyances and preferential
transfers;
k. render litigation advisory services with respect to
accounting and tax matters, along with expert witness
testimony on case related issues as required by the
Committee; and
l. render other general business consulting or other
assistance as the Committee or its counsel may deem
necessary that are consistent with the role of a financial
advisor and not duplicative of services provided by other
professionals in the proceeding.
The customary hourly rates of FTI are:
Designation Hourly Rate
----------- -----------
Senior Managing Directors US$615 - US$675
Directors/Managing Directors US$450 - US$590
Consultants/Senior Consultants US$225 - US$420
Administration/Paraprofessionals US$95 - US$180
The Committee assures the Court that FTI does not represent any
entity having adverse interest in the case and is therefore
eligible to represent the Committee.
The firm can be reached at:
FTI Consulting Inc.
3 Times Square, 11th Floor
New York, NY 10036
Tel: (212) 247-1010
Fax: (212) 841-9350
http://www.fticonsulting.com/
Based in Pompano, Florida, Nutritional Sourcing Corp., fdba
Pueblo Xtra International, Inc. -- http://www.puebloxtra.com/--
owns and operates supermarkets and video rental shops in Puerto
Rico and the US Virgin Islands. The company and two affiliates,
Pueblo International, L.L.C., and F.L.B.N., L.L.C., filed for
chapter 11 protection on Aug. 3, 2007 (Bankr. D. Del. Case Nos.
07-11038 through 07-11040). Kay Scholer LLC represents the
Debtors in their restructuring efforts. Pepper Hamilton LLP
serves as their Delaware counsel. When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts between US$1 million and US$100 million.
NUTRITIONAL SOURCING: Wants Nod on Mesirow Fin'l as Consultant
--------------------------------------------------------------
Nutritional Sourcing Corp. and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware for authority
to employ Mesirow Financial Consulting, LLC as their consultant,
nunc pro tunc to Aug. 13, 2007.
The Debtors relate to the Court that because their resources and
personnel are focused on consummating a sale of their assets,
they need additional assistance to compile, analyze and prepare
the financial reports and schedules required by the Bankruptcy
Code.
Mesirow will assist the Debtors in the preparation and review of
the reports and filings, including schedule of assets and
liabilities and statements of financial affairs.
The Debtors will pay Mesirow a fixed monthly fee of US$35,000
for the services of one senior vice president, plus
reimbursement of out-of-pocket expenses.
To the best of the Debtors' knowledge, Mesirow is a
"disinterested person" within the meaning of section 101(14) of
the Code, as modified by section 1107(b) of the Code.
The Court scheduled a hearing at 2:00 p.m., on Sept. 24, 2007,
for considering approval of the retention of Mesirow as the
Debtors' financial consultant.
The firm can be reached at:
Thomas J. Allison
Sr. Managing Director
Mesirow Financial Consulting, LLC
350 North Clark Street
Chicago, IL 60610
Tel: (800) 453-0600
http://www.mesirowfinancial.com/
Based in Pompano, Florida, Nutritional Sourcing Corp., fdba
Pueblo Xtra International, Inc. -- http://www.puebloxtra.com/--
owns and operates supermarkets and video rental shops in Puerto
Rico and the US Virgin Islands. The company and two affiliates,
Pueblo International, L.L.C., and F.L.B.N., L.L.C., filed for
chapter 11 protection on Aug. 3, 2007 (Bankr. D. Del. Case Nos.
07-11038 through 07-11040). Kay Scholer LLC represents the
Debtors in their restructuring efforts. Pepper Hamilton LLP
serves as their Delaware counsel. When the Debtors filed for
protection from their creditors, they listed estimated assets
and debts between US$1 million and US$100 million.
STEWART ENTERPRISES: Board OKs US$25MM Stock Repurchase Program
---------------------------------------------------------------
Stewart Enterprises Inc.'s board of directors has authorized a
new US$25 million stock repurchase program.
On June 27, 2007, the company repurchased 7,698,000 shares of
Class A common stock in private transactions in connection with
the issuance of its senior convertible notes.
The company has approximately 98.4 million common shares
outstanding, of which approximately 94.8 million are Class A
shares and 3.6 million are Class B shares. The repurchases will
be limited to the Company's Class A common stock and will be
made in the open market or in privately negotiated transactions
at such times and in such amounts as management deems
appropriate, depending upon market conditions and other factors.
Based in Jefferson, La., Stewart Enterprises Inc. provides
funeral and cemetery products and services in the death care
industry in the U.S. As of Oct. 31, 2006, the Company's
operations included 229 funeral homes and 143
cemeteries in 25 states in the U.S. and Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 25, 2007, Moody's Investors Service affirmed the Ba3
Corporate Family Rating of Stewart Enterprises, Inc. and
assigned a Ba3 rating to the proposed US$250 million convertible
note offering. Concurrently, Moody's raised the ratings on the
US$125 million senior secured revolver to Baa3 from Ba2 and on
the existing 6.25% senior notes to Ba3 from B1. Moody's expects
to withdraw the Ba2 rating assigned to the US$162.8 million term
loan upon the closing of the refinancing. Moody's said the
rating outlook is stable.
STEWART ENTERPRISES: Board Declares US$0.025 Per Share Dividend
---------------------------------------------------------------
Stewart Enterprises Inc.'s Board of Directors has declared a
quarterly cash dividend of US$0.025 per share. The dividend is
payable on Oct. 26, 2007 to holders of record of Class A and
Class B Common Stock as of the close of business on Oct. 12,
2007.
Based in Jefferson, La., Stewart Enterprises Inc. provides
funeral and cemetery products and services in the death care
industry in the U.S. As of Oct. 31, 2006, the Company's
operations included 229 funeral homes and 143
cemeteries in 25 states in the U.S. and Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 25, 2007, Moody's Investors Service affirmed the Ba3
Corporate Family Rating of Stewart Enterprises, Inc. and
assigned a Ba3 rating to the proposed US$250 million convertible
note offering. Concurrently, Moody's raised the ratings on the
US$125 million senior secured revolver to Baa3 from Ba2 and on
the existing 6.25% senior notes to Ba3 from B1. Moody's expects
to withdraw the Ba2 rating assigned to the US$162.8 million term
loan upon the closing of the refinancing. Moody's said the
rating outlook is stable.
=================
V E N E Z U E L A
=================
BANCO MERCANTIL: Fitch Affirms Issuer Default Ratings at B+
-----------------------------------------------------------
Fitch Ratings has affirmed the following Venezuela-based Banco
Mercantil ratings:
--Long-term foreign and local currency Issuer Default Ratings
at 'B+';
--Short-term foreign and local currency rating at 'B';
--Individual at 'D';
--Support at 5;
--Support Floor 'NF';
--Long-term National rating at 'AA(ven)';
--Short-term National rating at 'F-1(ven)';
The Rating Outlook for the long-term issuer default rating is
Negative, similar to the Outlook assigned to the ratings of all
the other Venezuelan banks. Lower capitalization and
profitability could result in future downgrades, while further
government intervention could also trigger negative changes in
all the bank ratings. The constant government intervention in
private sector activities, including the banking sector, has
been patent since 2001. As a result, the system operates under
a complex array of controls in areas such as direct lending,
interest rates floors and ceilings, a tight control over fees
and commissions and a high cash reserve requirement, among other
measures; even further a reform of the banking law is under
discussion, raising the spectra of additional, as yet undefined,
controls.
Banco Mercantil ratings reflect its strong franchise, stable
retail deposit base and adequate performance sustained by an
above-average risk control culture. Banco Mercantil's ratings
are constrained by decreasing capital ratios, lower expected
profitability due to narrowing spreads and the negative effects
of government intervention. Banco Mercantil's privileged
position along all market sectors and its proven expertise in
regards to loan origination and credit risk control have allowed
the bank to rapidly expand its loan portfolio as soon as
economic activity improved in 2004. After two years of more
than 80% growth in the loan portfolio, Banco Mercantil decided
to significantly slow down its loan generation (27% in 2006
compared to the system average of 63%) to control credit risk
under the current credit boom. Thanks to the improvement in the
operating environment and Banco Mercantil's competent credit
risk tools, the past-due-to-total-loans ratio has remained under
1% since year 2004; nevertheless, loan loss reserves have
sustained a negative trend in relation to total loans (3.4% and
2.6% in 2004 and 2006, respectively), a level that, even when
it's higher than the peer average, looks tight given the
unseasoned nature of the recently built-up portfolio, the
significant increase in consumer lending and the inherent
volatility of the Venezuelan operating environment. Despite
this increase in loans, the historic concentration in government
securities remains high, with a total government-debt-to-equity
ratio of 3.7 times, and 1.2 if short-term Central Bank
securities are excluded, below to the market average but still
high considering the relatively low sovereign rating of
Venezuela.
Thanks to adequate income diversification, improved overheads
and the relative low burden of loan loss provisions, Banco
Mercantil was able to improve its operating profits compared to
the previous year (operating profit to average assets ratio:
2.9% and 3.7% in 2005 and 2006, respectively) and partially
compensate the non-recurrent income registered in 2005 due to
the sale of a strategic shareholding position in Bancolombia and
in the absence of foreign exchange gains; nevertheless, return
on average assets still fell to 3.05% in 2006 (4.95% in 2005).
Future profitability expectations could remain limited given a
possible deepening of market competition or government
intervention. Significant asset growth and cash dividends have
reduced Banco Mercantil's capitalization. At end March 2007,
Banco Mercantil's equity-to-assets and total-capital-to-risk-
weighted-assets ratios went down to 8% and 14%, respectively,
levels considered tight given the lower expected profitability
and the volatility of the operating environment.
Headquartered in Caracas, Venezuela, Banco Mercantil C.A. (Banco
Universal) -- http://www.bancomercantil.com-- is a subsidiary
of Mercantil, Venezuela's leading financial services provider
operating in 10 countries in the Americas and Europe. Banco
Mercantil has 299 branches in Venezuela; an agency in Miami and
New York, a branch in Curacao and five representative offices in
Bogota, Lima, Mexico, Sao Paulo and London; Commercebank, N.A.,
a commercial bank in the United States with 10 offices in
southern Florida, a branch in New York, one in Houston and one
loan production office in Tampa; Banco Mercantil (Schweiz) AG;
BM Venezolano in Curacao, Banco del Centro in Panama, BMC Bank &
Trust Limited in the Cayman Islands and Merinvest, C.A.,
investment banking and securities brokerage services in
Venezuela; Seguros Mercantil which provides equity life
insurance and health insurance services, and Mercantil
Inversiones y Valores, a holding for other minority investments.
BANCO OCCIDENTAL: Fitch Affirms Issuer Default Ratings at B-
------------------------------------------------------------
Fitch Ratings has affirmed the following Venezuela-based Banco
Occidental de Descuento (BOD) ratings:
--Long-term foreign and local currency Issuer Default Ratings
at 'B-';
--Short-term foreign and local currency rating at 'B';
--Individual at 'D/E';
--Support at 5;
--Long-term National rating at 'BBB(ven)';
--Short-term National rating at 'F-3(ven)';
The Support Floor rating is affirmed at NF.
The Rating Outlook is Negative, similar to the Outlooks of all
other Venezuelan banks. Lower capitalization and profitability
could result in future downgrades, while further government
intervention could also trigger negative changes in all the bank
ratings. The constant government intervention in private sector
activities, including the banking sector, has been patent since
2001. As a result, the system operates under a complex array of
controls in areas such as direct lending, interest rates floors
and ceilings, a tight control over fees and commissions and a
high cash reserve requirement, among other measures; even
further a reform of the banking law is under discussion, raising
the spectra of additional, as yet undefined, controls.
BOD's ratings reflect its strong regional presence and thorough
knowledge in its area of influence. The bank's ratings are
limited by a weak capital base, volatile asset quality ratios,
relatively lower profitability ratios and the negative effects
of government intervention. The significant loan boom (2006:
+41%, 2005: +23%), the improvement of the operating environment
and the adequate knowledge of BOD in regards of its area of
influence have benefited asset quality ratios, nevertheless, the
current level of impaired loans is still above the market
average. At end-2006 the past due to total loans ratio
decreased to 1.5%, thanks the significant increase of the loan
portfolio; while loan loss coverage decreased as percentage of
past due loans (165% at end-2006) and also in terms of total
loans (2006: 2.5%), a level that looks tight given the
unseasoned nature of the recently build up portfolio, the recent
increase in consumer lending and the inherent volatility of the
Venezuelan operating environment.
BOD's profitability ratios has been undermined by its aggressive
expansion strategy, resulting not only in lower spreads but also
in worse than average efficiency ratios and despite lower than
proportional loan loss provisioning. The higher than
proportional participation of costlier time deposits (including
ceded investments), the higher competition in the retail market
and the recent incursion in the corporate market have eroded BOD
net interest margin (2006: 6.0% and 3.6% if ceded investments
are included), while other operating income is highly reliable
in fixed securities trading, a more volatile source income by
definition. As such, and influenced also by a higher than
average increase in overheads the bank ROAA decreased from 2.5%
in 2005 to 2.0% in 2006 (if ceded investments are included ROAA
for 2006: 1.2% and for 2005:1.5%), while the market average was
above 2.8%. Despite below average cash dividends, BOD's
significant asset growth and relatively high fixed assets
concentration undermines the bank capital ratios. At end-2006,
BOD's equity to assets and total capital to risk-weighted assets
ratios went down to 8.1% and 12.8%, nevertheless, if the bank
sizable participation in the ceded investment market is factored
in, the ratio of equity to assets fell to just 4.9%, while the
goodwill generated by previous M&A activity (albeit decreasing)
and its sizable fixed assets holding results represents more
than 50% of the bank equity base, suggesting the need of a more
conservative capitalization going forward.
BOD was Venezuela's 5th largest bank in terms of funds under
management (assets + ceded investments) at end-2006, with a 7.6%
market share. It holds a leading position in the retail market
but also targets small and medium-sized firms. It has a
privileged market position in Venezuela's leading oil-producing
region (Zulia State), where it holds more than 40% of deposits
and acts as the chief government payment agent in the region,
while the bank as also expanded its footprint nationwide. BOD
is controlled by Cartera de Inversiones de Venezuela (CIV),
which, in turn, is controlled by the bank's President.
PETROLEOS DE VENEZUELA: Former Official Frets on Output Decline
---------------------------------------------------------------
Former Venezuelan state-owned oil firm Petroleos de Venezuela SA
official Luis Giusti told El Universal that the former Federal
Reserve chairperson Alan Greenspan's statements on the country's
oil sector confirmed the "collapse" of the company's production.
As reported in the Troubled Company Reporter-Latin America on
Sept. 19, 2007, Petroleos de Venezuela's board of directors
projected US$100 billion in total revenues this year compared to
last year's US$99.26 billion. The company's consolidated net
profits in 2006 fell short of US$6 billion and the investments
scheduled for 2007 exceed US$10 billion. However, Chief
Executive Officer and Minister of Energy and Petroleum Rafael
Ramirez was unconcerned over the decline, saying that figures so
far this year were all right. According to him, investment
budget, which exceeds US$10 billion, "was executed in a 60%, and
we think it will be fully executed. Further, costs and expenses
are expected to fall, as we had a number of assets, including
more than 4,000 inactive oil wells, that were not adequately
accounted for in financial statements and were causing excess
costs that were wiped out in year 2007."
Mr. Giusti commented to El Universal, "The industry is faced
with a process of drastic deterioration. I wish people only
thought what the collapse of Venezuelan production means. This
is dramatic. Pdvsa [Petroleos de Venezuela] has dropped two
million barrels per day."
Venezuelan President Hugo Chavez's plan to increase domestic oil
production to five million barrels per day by 2011 is
impossible, the country's Union Radio relates, citing Mr.
Giusti. With about 130 planned operational rigs and sustained
investment of up to US$7 billion, output could be boosted by
some 200,000 barrels per day on a yearly basis.
Mr. Giusti told El Universal that goals could be reached through
well-structured efforts and in a company that is "operational
and efficient." Petroleos de Venezuela is "seriously wounded"
and lacks capacity.
"You could take some 15 to 18 years to take output to 3.5
million barrels per day," Mr. Giusti commented to El Universal.
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: SCAN Completes Seismic Program with Firm
----------------------------------------------------------------
OilOnline reports that SCAN Geophysical ASA has concluded its 2D
seismic acquisition program for Venezuelan state-run oil firm
Petroleos de Venezuela SA as scheduled.
According to OilOnline, the M/V SCAN Resolution acquired almost
4,200 kilometers of 2D seismic during the last six weeks using
8,000-meter streamers and "a 4,000 cu. ins. source."
"After a short port call for re-supply, SCAN Resolution will
transit to Venezuela" to work on other seismic projects with
Petroleos de Venezuela, OilOnline states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on 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: Shipping Oil to Grenada Next Month
----------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA will
ship oil to Grenada's St. George towards the end of October
2007, as part of the PetroCaribe accord, the Jamaica Gleaner
reports.
The Gleaner notes that the Grenada Electricity Company Limited
will be the first to get the fuel under a three-year pact it
signed with Venezuelan state-run oil firm Petroleos de Venezuela
S.A. Under the agreement, Petroleos de Venezuela will buy from
the Grenada Electricity storage facilities that include three
tanks with a total capacity of 750,000 gallons of fuel.
The report says that the Grenada Electricity's contract to
receive fuel from its current supplier Texaco expires on
Oct. 18, 2007.
The Grenada Electricity's general manager Vernon Lawrence
commented to The Gleaner, "The first shipment of supplies from
PDVSA [Petroleos de Venezuela] is scheduled to arrive sometime
after the 18th of October. The contract with our current
supplier would expire on the 18th of October so we expect within
two weeks of that date the first shipment will arrive."
The Gleaner relates that Mr. Lawrence eyes a slight drop in the
cost of electricity with the arrival of supplies.
Mr. Lawrence explained to The Gleaner, "There is a marginal
difference in the price of fuel coming from Venezuela as against
our traditional suppliers or other suppliers. We are seeing
somewhere in the order of 10 US cents difference per gallon of
fuel so that will be passed on to our customers, but it does not
translate into a significant reduction in electricity prices,
but there will be some reduction."
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, US$2 billion notes due 2027, and US$1 billion notes due
2037.
* VENEZUELA: Investing US$66.5MM on Scrap Processing Units
----------------------------------------------------------
The Venezuelan mining and basic industries ministry will invest
some US$66.5 million on the construction of eight storage and
processing centers for 70,000 tons per year of ferrous scrap,
Business News Americas reports.
A ministry official told BNamericas that a social production
firm will operate the centers, which will ensure scrap supplies
to local metals fabricators. They will be built in Anzoategui
and Monagas. "The most advanced in getting set up is in Soledad
in Anzoategui," the official commented to BNamericas.
"The idea is also to give a boost to those collecting scrap and
provide material for steel companies," the official explained to
BNamericas.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'. Fitch said the ratings'
outlook remains stable.
***********
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
delos Santos, Christian Toledo and Pamella Ritah Jala, Editors.
Copyright 2007. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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