/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070928.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 28, 2007, Vol. 8, Issue 193 Headlines A R G E N T I N A ACTIVE ARGENTINA: Seeks for Reorganization Approval AMTRAK CONSTRUCCIONES: Claims Verification Deadline Is Today ARNOLDO JOSE: Reorganization Proceeding Concluded CENTRO TAXI: Trustee Filing Individual Reports on Oct. 1 CRIOLLA SOCIEDAD: Trustee Filing Individual Reports on Feb. 21 DELTA AIR: Wants Final Decree Entered Closing 17 Cases DIXONS SA: Proofs of Claim Verification Deadline Is Oct. 11 EMPRESA CENTRAL: Proofs of Claim Verification Ends Today FERVAZ SRL: Proofs of Claim Verification Is Until Dec. 11 FORD MOTOR: UAW-GM Deal Spurs S&P To Watch Credit Ratings FUNDACION OVIDIO: Proofs of Claim Verification Is Until Today GANADERA DEL SALADO: Proofs of Claim Verification Ends Oct. 1 INTER REDES: Trustee Filing Individual Reports on Oct. 1 LEPICA SRL: Proofs of Claim Verification Ends Oct. 1 MICROCOMP SA: Proofs of Claim Verification Is Until Oct. 1 PINNACLE ENTERTAINMENT: Morgan Joseph Reaffirms Buy Rating OLLEROS MILENNIUM: Proofs of Claim Verification Ends Oct. 1 QUEBECOR MEDIA: S&P Assigns B Rating on US$450-Million Notes QUEBECOR MEDIA: Moody's Rates Sr. Notes at B2 w/ Stable Outlook RED HAT: Promotes Mark Cook & Paul Argiry as Vice Presidents RED HAT: Reports US$18.2 Mil. Net Income in Qtr. Ended Aug. 31 RED HAT: JMP Securities Maintains Market Perform Rating SAN ISIDRO: Proofs of Claim Verification Is Until Oct. 1 UNIVERSAL AVIATION: Final General Meeting Is Today YACOPLAST SA: Proofs of Claim Verification Ends Today B A H A M A S BANK OF BARODA: Opens Representative Office in Australia B E R M U D A ANA SUB: Holds Final General Meeting Today CHATHAM ATLANTIC: Final General Meeting Is Today CHEVRON OVERSEAS: Holding Final General Meeting Today GLASS IIP: Proofs of Claim Must be Filed Today GLASS EQUITY: Proofs of Claim Filing Ends Today GRAPE LIMITED: Holding Final General Meeting Today SAH LIMITED: Proofs of Claim Filing Ends Monday SCOTTISH RE: Names Terry Eleftheriou as Executive VP & CFO UNOCAL BANGLADESH: Final General Meeting Is Today B R A Z I L ACTUANT CORP: Earns US$31.4 Million in 4th Quarter Ended Aug. 31 AMRO REAL: Bradesco Balks at Bank's Proposed Santander Purchase BANCO NACIONAL: Investing BRL1.25 Bil. in Telemar Participacoes FORD MOTOR: Four Firms Still On Track to Buy Jaguar & Land Rover GENERAL MOTORS: Inks Tentative Pact on Labor Contract with UAW GENERAL MOTORS: Canada Plants Reopened Due to Tentative UAW Pact GENERAL MOTORS: Fitch Affirms & Removes IDR & Debt Ratings GP INVESTMENTS: S&P Places B+ Rating on Proposed Bonds GP INVESTMENTS: Fitch Expects B/RR4 Rating on Perpetual Notes JBS SA: Moody's Confirms B1 Senior Unsecured Rating MAGNA INTERNATIONAL: Buys 11.9 Mln Class A Shares for US$1.1 Bln * BRAZIL: Invites Foreign Oil Companies to Explore for Oil * BRAZIL: Won't Renegotiate Pacts with Foreign Oil Companies * BRAZIL: State Firm Says Exxon Mobil May Sell LatAm Assets C A Y M A N I S L A N D S ANTHRACITE BALANCED: Proofs of Claim Filing Deadline Is Oct. 1 ANTHRACITE BALANCED: Sets Final Shareholders Meeting for Oct. 1 ANTHRACITE MASTER: Proofs of Claim Filing Deadline Is Oct. 1 ANTHRACITE MASTER: Final Shareholders Meeting Is Oct. 1 CABLE & WIRELESS: Earns BBD371.2 Mil. in Year Ended March 31 MKP CREDIT (OFFSHORE): Proofs of Claim Filing Deadline Is Oct. 1 MKP CREDIT (MASTER): Proofs of Claim Filing Ends Oct. 1 C H I L E PHELPS DODGE: Strong Earnings Cue Moody's to Revise Outlook C O L O M B I A BANCOLOMBIA: Completes Issuance of Ordinary Notes for COP1.5 Bln ECOPETROL: Completes First Initial Public Offering SOLUTIA INC: Poised to Emerge After Chapter 11 Settlement * COLOMBIA: Telecom Firms File Lawsuit Against Trade Regulator C O S T A R I C A ALCATEL-LUCENT: Partners w/ Telecom to Supply Routing Solution D O M I N I C A N R E P U B L I C GENERAL CABLE: Moody's Puts B1 Rating on US$400MM Proposed Notes GENERAL CABLE: S&P Puts B+ Rating on US$400-Mln Senior Notes E C U A D O R * ECUADOR: Suspending Ascendant Copper's Junin Mining Activity E L S A L V A D O R * EL SALVADOR: State Firm Awarding El Chaparral Project Contract G U A T E M A L A ALCATEL-LUCENT SA: Acquires U.K.-Based Tamblin Limited ALITALIA SPA: Chief to Name Possible Buyers This Month M E X I C O ATARI INCORPORATED: Deloitte & Touche Raises Going Concern Doubt BRAVO! BRANDS: Voluntary Chapter 7 Case Summary CHRYSLER LLC: UAW-GM Deal Prompts S&P To Watch Credit Ratings EMPRESAS ICA: Discloses Share Placement of US$465 Million FOAMEX INT'L: Selling Carpet Cushion Facilities for US$10 Mil. GRUPO MEXICO: Will Shut Down Taxco Mine Due to Labor Problems INTERNATIONAL RECTIFIER: Okays License Pact for DirectFET(R) KANSAS CITY SOUTHERN: Improved Liquidity Cues S&P to Lift Rating MERIDIAN AUTO: Wants Final Decree Entered Closing Ch. 11 Cases MERIDIAN AUTOMOTIVE: Files Final Report on Fees Paid RYERSON INC: S&P Affirms B+ Corporate Credit Rating WENDY'S INTERNATIONAL: Fidelity Joins Three Others in Bidding P E R U FREEPORT-MCMORAN: Strong Earnings Cue Moody's to Revise Outlook P U E R T O R I C O FIRSTBANK PEURTO RICO: Moody's Changes Outlook to Stable NUTRITIONAL SOURCING: Court OKs FTI as Panel's Financial Advisor NUTRITIONAL SOURCING: Court OKs Skadden Arps as Panel's Counsel V E N E Z U E L A PETROLEOS DE VENEZUELA: Orinoco Joint Ventures Not Finalized PETROLEOS DE VENEZUELA: Paradigm to Interpret Data for Cardon II PETROLEOS DE VENEZUELA: Oil Sale to Dominican on Special Terms * VENEZUELA: Carbones del Guasare Lifts Force Majeure on Exports * VENEZUELA: Natural Gas Exports May be Delayed - - - - - ================= A R G E N T I N A ================= ACTIVE ARGENTINA: Seeks for Reorganization Approval --------------------------------------------------- Active Argentina S.A. has requested for reorganization approval after failing to pay its liabilities since August 2006. The reorganization petition, once approved by the court, will allow Active Argentina 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 in Buenos Aires. The debtor can be reached at: Active Argentina S.A. Piedras 77 Buenos Aires, Argentina AMTRAK CONSTRUCCIONES: Claims Verification Deadline Is Today ------------------------------------------------------------ Eduardo Ruben Pronsky, the court-appointed trustee for Amtrak Construcciones S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 28, 2007. Mr. Pronsky will present the validated claims in court as individual reports on Nov. 8, 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 Amtrak Construcciones and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Amtrak Construcciones' accounting and banking records will be submitted in court on Dec. 20, 2007. Mr. Pronsky is also in charge of administering Amtrak Construcciones' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Eduardo Ruben Pronsky Parana 480 Buenos Aires, Argentina ARNOLDO JOSE: Reorganization Proceeding Concluded ------------------------------------------------- Arnoldo Jose Serio e Hijos S.H.'s reorganization proceeding has ended. Data published by Infobae on its Web site indicated that the process was concluded after the National Commercial Court of First Instance in Mar del Plata, Buenos Aires, approved the debt agreement signed between the company and its creditors. CENTRO TAXI: Trustee Filing Individual Reports on Oct. 1 -------------------------------------------------------- The court-appointed trustee for Centro Taxi S.R.L.'s reorganization proceeding, will file the validated proofs of claim as individual reports in the National Commercial Court of First Instance in San Miguel de Tucuman, Tucuman, on Oct. 1, 2007. The court will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Centro Taxi and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Centro Taxi's accounting and banking records will be submitted in court on Jan. 14, 2008. CRIOLLA SOCIEDAD: Trustee Filing Individual Reports on Feb. 21 -------------------------------------------------------------- Maria Luisa Ledesma, the court-appointed trustee for Criolla Sociedad Gerente de Fondos Comunes de Inversion 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. 21, 2008. Ms. Ledesma verifies creditors' proofs of claim until Dec. 5, 2007. She will also submit a general report containing an audit of Criolla Sociedad's accounting and banking records in court on April 4, 2008. Ms. Ledesma is also in charge of administering Criolla Sociedad's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Criolla Sociedad Gerente de Fondos Comunes de Inversion S.A. Sarmiento 334 Buenos Aires, Argentina The trustee can be reached at: Maria Luisa Ledesma Avenida Cordoba 1351 Buenos Aires, Argentina DELTA AIR: Wants Final Decree Entered Closing 17 Cases ------------------------------------------------------ Pursuant to Section 350(a) of the Bankruptcy Code and Rule 3022 of the Federal Rules of Bankruptcy Procedure, Delta Airlines, Inc., asks the U.S. Court to issue a final decree closing the Chapter 11 cases of 17 reorganized debtor-affiliates, effective Sept. 28, 2007: Debtor Case No. ------ -------- ASA Holdings, Inc. 05-17946 Comair Holdings, LLC 05-17931 Comair Services, Inc. 05-17935 Crown Rooms, Inc. 05-17922 DAL Aircraft Trading, Inc. 05-17941 DAL Global Services, LLC 05-17928 DAL Moscow, Inc. 05-17937 Delta Airelite Business Jets, Inc. 05-17942 Delta Benefits Management, Inc. 05-17945 Delta Connection Academy, Inc. 05-17926 Delta Corporate Identity, Inc. 05-17939 Delta Loyalty Management Services, LLC 05-17932 Delta Technology, LLc 05-17927 Delta Ventures III, LLc 05-17936 Epsilon Trading, LLC 05-17943 Kappa Capital Management, Inc. 05-17947 Song, LLC 05-17921 Bankruptcy Rule 3022 provides that after an estate is fully administered in a chapter 11 reorganization case, the court, on its own motion or on motion of a party in interest, shall enter a final decree closing the case. The Advisory Note to Bankruptcy Rule 3022 directs courts to apply six factors to determine whether a bankruptcy case has been "fully administered." Timothy E. Graulich, Esq., at Davis, Polk & Wardwell, in New York, tells the Court that the 17 estates meet each of the six factors: (1) The Court's Order on April 25, 2007 confirming the Reorganized Debtors' Plan is final; notwithstanding it being subjected to a single appeal restricted to the narrow question of the scope of exculpation clauses in the Plan that are applicable to UMB Bank, N.A.; (2) Delta has established reserves of stock that will be distributed to the Creditors of Delta and Comair, Inc. which do not implicate the Fully Administered Cases; (3) Delta has distributed and transferred the cash, stock, notes and other property, to be disbursed following the confirmation of the Plan; (4) Pursuant to the Plan, the Reorganized Debtors have assumed management of the reorganized estates, with the election of a new Board of Directors; (5) One interim distribution to Creditors has been made and one to be contemplated in November 2007. The distributions are not being made out of the assets of the Fully Administered Cases' estates; and (6) All pending motions, contested matters, and adversary proceedings will be resolved using the pools of assets established by the Plan, and will not affect the Fully Administered Cases. Mr. Graulich adds that the 17 reorganized debtor-affiliates' cases are inactive and that the Debtors' bankruptcy cases are substantively limited to Delta and Comair. In addition, the closing will be cost-effective. Since there will be no remaining administration required with respect to the Fully Administered Cases, no U.S. Trustee fees will be incurred. The request is frequently granted in large bankruptcy cases where only a few of the cases need to remain open for purposes of administering the estate, Mr. Graulich notes. Pursuant to 28 U.S.C. Section 1930(a)(6), a debtor in a chapter 11 case must pay the U.S. Trustee a quarterly payment for each bankruptcy case that it administers. Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. As of June 30, 2005, the company's balance sheet showed US$21.5 billion in assets and US$28.5 billion in liabilities. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 2007, the Court confirmed the Debtors' plan. (Delta Bankruptcy News, Issue No. 79; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Sept. 17, 2007, Fitch Ratings upgraded and removed from Rating Watch Positive these classes of Delta Air Lines Enhanced Equipment Trust Certificate transactions: Delta Air Lines Pass Through Certificates, Series 2000-1 -- Class A1 upgraded to 'BBB-' from 'B', removed from Rating Watch Positive; -- Class A2 upgraded to 'BBB-' from 'B', removed from Rating Watch Positive; -- Class B upgraded to 'BB-' from 'CCC', removed from Rating Watch Positive and the Distressed Recovery rating of 'DR1' is also removed. Delta Air Lines Pass Through Certificates, Series 2001-1 -- Class A1 upgraded to 'BBB-' from 'B', removed from Rating Watch Positive; -- Class A2 upgraded to 'BBB-' from 'B', removed from Rating Watch Positive; -- Class B upgraded to 'BB-' from 'CCC', removed from Rating Watch Positive and 'DR1' is also removed. Delta Air Lines European Enhanced Equipment Trust Certificates, Series 2001-2 -- Class A upgraded to 'A+' from 'BBB-', removed from Rating Watch Positive; -- Class B upgraded to 'B+' from 'CCC', removed from Rating Watch Positive and 'DR1' is also removed. Delta Air Lines Pass Through Certificates, Series 2002-1 -- Class C upgraded to 'B+' from 'CC', removed from Rating Watch Positive and 'DR5' is also removed. As reported in the Troubled Company Reporter on July 16, 2007, Fitch Ratings has initiated coverage of Delta Air Lines Inc. with the assignment of these debt ratings: issuer default rating 'B'; First-lien senior secured credit facilities 'BB/RR1'; and Second-lien secured credit facility (Term Loan B) 'B/RR4' As reported in the Troubled Company Reporter on May 2, 2007, Standard & Poor's Ratings Services raised its ratings on Delta Air Lines Inc. (B/Stable/--), including raising the corporate credit rating to 'B', with a stable outlook, from 'D', following the airline's emergence from Chapter 11 bankruptcy proceedings. DIXONS SA: Proofs of Claim Verification Deadline Is Oct. 11 ----------------------------------------------------------- Nelida Haydee Grumblatt de Nobile, the court-appointed trustee for Dixons S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Oct. 11, 2007. Ms. Grumblatt de Nobile will present the validated claims in court as individual reports on Nov. 23, 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 Dixons 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 Dixons' accounting and banking records will be submitted in court on Feb. 11, 2008. Ms. Grumblatt de Nobile is also in charge of administering Dixons' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Dixons S.A. Serrano 505 Buenos Aires, Argentina The trustee can be reached at: Nelida Haydee Grumblatt de Nobile Felipe Vallese 1195 Buenos Aires, Argentina EMPRESA CENTRAL: Proofs of Claim Verification Ends Today -------------------------------------------------------- Elisa Fernanda Nievas, the court-appointed trustee for Empresa Central Alcorta S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim until Sept. 28, 2007. Ms. Nievas will present the validated claims in court as individual reports on Nov. 12, 2007. The National Commercial Court of First Instance in Villa Constitucion, Santa Fe, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Empresa Central 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 Empresa Central's accounting and banking records will be submitted in court on Dec. 31, 2007. The informative assembly will be held on May 7, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The debtor can be reached at: Empresa Central Alcorta S.R.L. 9 de Julio Esquina Alvear, Alcorta Santa Fe, Argentina The trustee can be reached at: Elisa Fernanda Nievas Sarmiento 1069, Villa Constitucion Santa Fe, Argentina FERVAZ SRL: Proofs of Claim Verification Is Until Dec. 11 --------------------------------------------------------- Pablo Arturo Melaragni, the court-appointed trustee for Fervaz S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 11, 2007. Mr. Melaragni will present the validated claims in court as individual reports on Feb. 29, 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 Fervaz 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 Fervaz's accounting and banking records will be submitted in court on April 16, 2008. Mr. Melaragni is also in charge of administering Fervaz's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Pablo Arturo Melaragni Viamonte 783 Buenos Aires, Argentina FORD MOTOR: UAW-GM Deal Spurs S&P To Watch Credit Ratings --------------------------------------------------------- Standard & Poor's Ratings Services has placed its long-term corporate credit ratings on Ford Motor Co. and related entities on CreditWatch with positive implications. The short-term 'B-3' ratings are not on CreditWatch. "The CreditWatch action reflects today's announcement that General Motors Corp. and its main union, the United Auto Workers (UAW), have reached a tentative new labor contract that includes an agreement designed to address the massive postretirement employment benefit obligations associated with GM's UAW population," said Standard & Poor's credit analyst Robert Schulz. For now, there are few details about the specifics of the health care agreement or other important aspects of the contract such as wages, job security, and work rules. The tentative agreement ends the nationwide strike at GM that began earlier this week. The chances of a prolonged and widespread strike at GM, Ford, or Chrysler LLC are now largely averted, although we had always considered such a scenario unlikely because it would be catastrophic to everyone involved. GM's UAW members still need to approve the agreement, and ratification votes should occur this weekend. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. FUNDACION OVIDIO: Proofs of Claim Verification Is Until Today ------------------------------------------------------------- Marcos Javier Driussi, the court-appointed trustee for Fundacion Ovidio Salinas' bankruptcy proceeding, verifies creditors' proofs of claim until Sept. 28, 2007. Mr. Driussi will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Dolores, 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 Fundacion Ovidio 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 Fundacion Ovidio's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. Mr. Driussi is also in charge of administering Fundacion Ovidio's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Fundacion Ovidio Salinas Chiczza 2440, San Bernardo Buenos Aires, Argentina The trustee can be reached at: Marcos Javier Driussi Lara 48, Dolores Buenos Aires, Argentina GANADERA DEL SALADO: Proofs of Claim Verification Ends Oct. 1 ------------------------------------------------------------- Silvia Beatriz Giambone, the court-appointed trustee for Ganadera del Salado S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Oct. 1, 2007. Ms. Giambone will present the validated claims in court as individual reports. The National Commercial Court of First Instance in 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 Ganadera del Salado and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Ganadera del Salado's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. Ms. Giambone is also in charge of administering Ganadera del Salado's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Silvia Beatriz Giambone Roque Saenz Pena 651 Buenos Aires, Argentina INTER REDES: Trustee Filing Individual Reports on Oct. 1 -------------------------------------------------------- Adriana Beatriz Benzer, the court-appointed trustee for Inter Redes S.A.'s reorganization proceeding, will present the validated claims in National Commercial Court of First Instance in Buenos Aires as individual reports on Oct. 1, 2007. Ms. Benzer verifies creditors' proofs of claim until Aug. 20, 2007. The court will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Inter Redes 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 Inter Redes' accounting and banking records will follow on Nov. 12, 2007. On May 14, 2008, Inter Redes' creditors will vote on a settlement plan that the company will lay on the table. The trustee can be reached at: Adriana Beatriz Benzer Suipacha 576 Buenos Aires, Argentina LEPICA SRL: Proofs of Claim Verification Ends Oct. 1 ---------------------------------------------------- Carlos Alberto Llorca, the court-appointed trustee for Lepica S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Oct. 1, 2007. Mr. Llorca will present the validated claims in court as individual reports on Nov. 12, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Lepica 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 Lepica's accounting and banking records will be submitted in court on Nov. 26, 2007. Mr. Llorca is also in charge of administering Lepica's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Carlos Alberto Llorca Carlos Pellegrini 385 Buenos Aires, Argentina MICROCOMP SA: Proofs of Claim Verification Is Until Oct. 1 ---------------------------------------------------------- Norma Elida Fistzen, the court-appointed trustee Microcomp S.A.'s reorganization proceeding, verifies creditors' proofs of claim until Oct. 1, 2007. Ms. Fistzen will present the validated claims in court as individual reports on Nov. 12, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Microcomp 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 Microcomp's accounting and banking records will be submitted in court on Dec. 26, 2007. The informative assembly will be held on June 10, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The debtor can be reached at: Microcomp S.A. Donado 2544 Buenos Aires, Argentina The trustee can be reached at: Norma Elida Fistzen Viamonte 1446 Buenos Aires, Argentina PINNACLE ENTERTAINMENT: Morgan Joseph Reaffirms Buy Rating ---------------------------------------------------------- Morgan Joseph analysts have reaffirmed their "buy" rating on Pinnacle Entertainment Inc.'s shares, Newratings.com reports. According to Newratings.com, the target price for Pinnacle Entertainment's shares was set at US$36. The analysts said in a research note that the decrease at Belterra and Bossier City are offsetting L'Auberge's better- than-expected performance. The analysts told Newratings.com that the estimates for interest expenses were raised on account of a change in the expected timing of some cash outlays for Pinnacle Entertainment's expansion projects. The earnings per share estimates for fiscal year 2007 and fiscal year 2008 were decreased to US$0.81 from US$0.83, and to US$0.75 from US$0.77, respectively, Newratings.com states. Headquartered in Las Vegas, Nevada, Pinnacle Entertainment Inc. (NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates casinos in Nevada, Louisiana, Indiana and Argentina, owns a hotel in Missouri, receives lease income from two card club casinos in The Los Angeles metropolitan area, has been licensed to operate a small casino in the Bahamas, and owns a casino site and has significant insurance claims related to a hurricane- damaged casino previously operated in Biloxi, Mississippi. Pinnacle opened a major casino resort in Lake Charles, Louisiana in May 2005 and a new replacement casino in Neuquen, Argentina in July 2005. * * * As reported in the Troubled Company Reporter on June 4, 2007, Standard & Poor's Ratings Services assigned its 'B-' rating to Pinnacle Entertainment Inc.'s proposed US$350 million senior subordinated notes due 2015. On June 1, 2007, the Troubled Company Reporter related that Fitch Ratings assigned a rating of 'B-/(Recovery Rating) RR5' to the company's US$350 million senior subordinated notes due 2015. The company's credit ratings were: (i) Issuer Default Rating of 'B'; (ii) Bank facility at 'BB/RR1'; (iii) Senior Subordinated notes at 'B-/RR5'. Fitch said the rating outlook was stable. OLLEROS MILENNIUM: Proofs of Claim Verification Ends Oct. 1 ----------------------------------------------------------- Nestor Rodolfo del Potro, the court-appointed trustee for Olleros Milennium S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Oct. 1, 2007. Mr. del Potro will present the validated claims in court as individual reports on Nov. 13, 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 Olleros Milennium 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 Olleros Milennium's accounting and banking records will be submitted in court on Dec. 26, 2007. Mr. del Potro is also in charge of administering Olleros Milennium's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Olleros Milennium S.A. Olleros 1802 Buenos Aires, Argentina The trustee can be reached at: Nestor Rodolfo del Potro Avenida Corrientes 1291 Buenos Aires, Argentina QUEBECOR MEDIA: S&P Assigns B Rating on US$450-Million Notes ------------------------------------------------------------ Standard & Poor's Ratings Services has assigned its 'B' debt rating to Montreal, Que.-based Quebecor Media Inc.'s proposed US$450 million 7.75% senior unsecured notes due 2016. The notes are rated two notches below the 'BB-' long-term corporate credit rating, reflecting their junior position in the company's debt capital structure with debt at wholly owned subsidiaries, Videotron Ltee and Sun Media Corp. (both rated BB-/Stable/--), ranking ahead of the proposed notes. The ratings and outlook on all companies are unchanged. "The proceeds from the notes will be used to refinance the C$420 million bridge loan and related fees to fund the acquisition of Osprey Media Income Fund, a leading publisher of newspapers, magazines, and specialty publications in Ontario," said Standard & Poor's credit analyst Madhav Hari. The debt-financed acquisition closed on Aug. 8, 2007, at C$8.45 per unit, representing an equity value of C$414 million, and a total purchase price of C$576 million, including the assumption of debt outstanding. Although the Osprey acquisition results in weaker credit protection metrics on a pro forma basis, credit measures remain consistent with the rating category given pro forma adjusted debt leverage (debt to EBITDA) of about 4 times. The acquisition of Osprey's 20 daily and 34 nondaily community newspapers will position Quebecor Media as the largest newspaper publisher in Canada and should improve Sun Media's newspaper market position, which consists of eight paid urban dailies, seven free commuter dailies, and 193 community newspapers and specialty publications. Although Osprey participates in the challenging newspaper industry, it is somewhat insulated against economic factors as its revenues are derived from the community newspaper segment. This segment relies less on customer subscriptions and national advertising revenues, which tend to be more volatile than local advertisers. Despite some integration risk from the acquisition, Standard & Poor's expects Quebecor Media will be able to effectively manage the integration process, which should take up to 12 months to complete. The stable outlook reflects our expectation that Quebecor Media's operating assets will maintain their solid market positions, that credit measures will be in line with the ratings in the medium term, and that the company will successfully manage the Osprey integration. S&P could revise the outlook to positive or raise the ratings if Quebecor Media improves its financial risk profile and is able to sustain better operating performance and stronger credit measures. Alternatively, we could revise the outlook to negative if the company fails to meet expectations, resulting in the weakening of Quebecor Media's operating performance and credit measures. Quebecor Media Inc., a subsidiary of Quebecor Inc., owns operating companies in numerous media-related businesses: Videotron Ltd., the largest cable operator in Quebec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, Canada's largest national chain of tabloids and community newspapers; TVA Group Inc., operator of the largest French-language general- interest television network in Quebec, a number of specialty channels, and the English-language general-interest station Sun TV; Canoe Inc., operator of a network of English- and French- language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; companies engaged in book publishing and magazine publishing; and companies engaged in the production, distribution and retailing of cultural products, namely Archambault Group Inc., the largest chain of music stores in eastern Canada, TVA Films, and Le SuperClub Videotron ltee, a chain of video and video game rental and retail stores. Headquartered in Montreal, Canada, the company has global facilities in India, France and Argentina. QUEBECOR MEDIA: Moody's Rates Sr. Notes at B2 w/ Stable Outlook --------------------------------------------------------------- Moody's Investors Service has rated Quebecor Media Inc.'s US$450 million add-on senior unsecured note issue B2. Ratings on the underlying 7.75% senior unsecured notes due in March of 2016 were affirmed at the same B2 level. At the same time, Quebecor Media's Ba3 corporate family rating and stable ratings outlook were affirmed. The rating action was prompted by the Sept. 26 announcement of the new note issue. Proceeds will be used to repay a bridge loan that had been drawn to fund QMI's earlier acquisition of Osprey Media Income Fund, a publicly traded publisher of community newspapers and magazines for an aggregate purchase price of approximately C$575 million (including assumed debt). The new note issue is neutral to the company's consolidated debt profile and had been contemplated in the prevailing Ba3 CFR. Accordingly, the CFR and stable outlook are affirmed. However, the notes issue causes QMI's waterfall of debts to be adjusted and necessitates ratings adjustments on certain existing instruments. Downgrades: Issuer: Quebecor Media, Inc. -- Senior Secured Bank Credit Facility (unchanged at B1), Downgraded to LGD5-74 from LGD4-67 -- Senior Unsecured Regular Bond/Debenture (unchanged at B2), Downgraded to LGD5-89 from LGD5-87 Issuer: Sun Media Corporation -- Senior Secured Bank Credit Facility (unchanged at Baa3), Downgraded to LGD1-07 from LGD1-04 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba2 (LGD3-33) from Ba1 (LGD2-26) Issuer: Videotron Ltee -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba2 (LGD3-33) from Ba1 (LGD2-26) Withdrawals: Issuer: Quebecor Media, Inc. -- Senior Unsecured Regular Bond/Debenture, Withdrawn (cancelled two-tranche issue), previously rated B2 (LGD5-87) Other important rating influences include expectations of continued top-line and cash flow growth resulting from robust activity at Quebecor Media's cable subsidiary Videotron Ltee. In turn, this results from the successful bundled deployment of its cable telephony product, and is expected to be the key driver behind improved cash generation over the next several quarters (subsequently, saturation will cause growth to return to more normal levels). In addition, capital expenditures on new printing presses at QMI's Sun Media Corporation newspaper subsidiary are largely complete. The related cash drain should be replaced by margin gains as cost savings from more efficient presses are internalized. It is also noted that QMI's consolidated operations are strengthened by the diversity contributed by its smaller entertainment, broadcasting and Internet portal operations, particularly TVA Inc., the largest French broadcaster in North America. There are several factors that provide offsetting influences, the first of which is the company's desire to grow more quickly than organic expansion will facilitate. The Osprey transaction is manifestation of this. In addition, Quebecor Media has indicated that it wants to be a consolidator in the newspaper segment and has also discussed being a potential bidder in the pending Canadian radio spectrum auction. Should the company be a successful bidder, even should the CRTC mandate things such as incumbent tower sharing and roaming so as to provide new entrants with the best possible opportunity for success, it is likely that significant cash flow will be required to be allocated for several years in order to build a credible business. In addition, Videotron has ongoing network capital expenditure requirements that will consume cash flow, and income tax is expected to provide meaningful leakage within two years. Lastly, Quebecor Media has shareholders that expect cash returns, and it is expected that cash dividends will be declared should cash flow be available. The confluence of these influences offsets the positive momentum provided by Videotron's results and causes the ratings outlook to remain stable. Quebecor Media Inc., a subsidiary of Quebecor Inc., owns operating companies in numerous media-related businesses: Videotron Ltd., the largest cable operator in Quebec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, Canada's largest national chain of tabloids and community newspapers; TVA Group Inc., operator of the largest French-language general- interest television network in Quebec, a number of specialty channels, and the English-language general-interest station Sun TV; Canoe Inc., operator of a network of English- and French- language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; companies engaged in book publishing and magazine publishing; and companies engaged in the production, distribution and retailing of cultural products, namely Archambault Group Inc., the largest chain of music stores in eastern Canada, TVA Films, and Le SuperClub Videotron ltee, a chain of video and video game rental and retail stores. Headquartered in Montreal, Canada, the company has global facilities in India, France and Argentina. RED HAT: Promotes Mark Cook & Paul Argiry as Vice Presidents ------------------------------------------------------------ Red Hat Inc. has promoted Mark E. Cook to Vice President, Finance and Controller and appointed Paul Argiry as Vice President and Treasurer. Both will report to Executive Vice President and Chief Financial Officer, Charlie Peters. With over 30 years of financial experience, Mr. Cook joined Red Hat as Treasurer in November 2004 and later was promoted to Vice President and Treasurer. Prior to joining Red Hat, Mr. Cook served as Director of Finance at Cluett American Corp., with responsibilities for treasury and other financial functions. Mr. Cook served as Treasurer of the multi-national textile company, Guilford Mills, Inc. Previously, Mr. Cook also held a number of financial positions at Worthington Industries, Inc., Blount International, Inc. and RJR Nabisco, Inc. Mr. Argiry brings over 15 years of diversified financial experience including public accounting, mergers and acquisitions, corporate finance and treasury. He is now responsible for leading Red Hat's treasury function, including corporate treasury, payroll, credit and collections and facilities. Prior to this role, Mr. Argiry was the Senior Director of Corporate Finance and Treasury at Jabil Circuit, Inc., a NYSE-listed electronic manufacturing services company based in St. Petersburg, Florida. Mr. Argiry also served as Director of Finance for Mergers and Acquisitions at Jabil and worked in the audit division and transaction services group with Price Waterhouse Coopers. "We are pleased to have the talents of Mark Cook and Paul Argiry in these very important positions for our Company," said Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. "We are confident that both bring strong experience to our finance organization and will reinforce the financial disciplines and strategies already in place." Headquartered in Raleigh, North Carolina Red Hat, Inc. --http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among others. * * * As reported on Nov. 3, 2006, Standard & Poor's Ratings Services revised its outlook on Raleigh, North Carolina-based operating systems provider Red Hat Inc. to stable from positive, and affirmed its 'B+' corporate credit rating. RED HAT: Reports US$18.2 Mil. Net Income in Qtr. Ended Aug. 31 -------------------------------------------------------------- Red Hat Inc. earned US$18.2 million for the three months ended Aug. 31, 2007, compared to US$16.2 million of net income for the same period last year. Total revenue for the quarter was US$127.3 million, an increase of 28% from the year ago quarter and 7% from the prior quarter. Subscription revenue was US$109.2 million, up 29% year-over-year and 6% sequentially. Other highlights of the quarter included the following: -- Red Hat continued to build its industry-leading ecosystem by surpassing the milestone of more than 3,000 applications certified on Red Hat Enterprise Linux. -- Following three consecutive years of Red Hat being ranked first in value for enterprise software in the CIO Insight survey, Red Hat Japan was ranked the number one technology vendor in Japan that customers intend to conduct business with in the future according to the Nikkei Market Access survey. -- Red Hat released the beta version of the Red Hat Developer Studio, an integrated Eclipse-based set of open source development tools and runtime environment. -- Red Hat released JBoss Enterprise Application Platform 4.2, an enterprise-ready platform on which to migrate legacy applications to an open source architecture. "We are pleased to report another solid quarter of strong revenues. I am particularly pleased with the steady improvement in operating margin and operating cash flow. These performance improvements come at a time when we are continuing to invest heavily in our processes and systems as we scale globally," stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. "We continue to see robust demand for our open source solutions and are encouraged by our market position." In addition, the company announced that its Board of Directors had authorized the continuation of the Company's stock and debenture repurchase program. Under the program, the Company is authorized to repurchase in aggregate up to US$250 million of the company's common stock and in aggregate up to US$75 million of the company's 0.5% Convertible Senior Debentures due 2024. Repurchases of common stock and debentures may be effected, from time to time, either on the open market or in privately negotiated transactions, as applicable. The timing and the amount of any repurchases of common stock and debentures will be determined by the Company's management based on an evaluation of market conditions and other factors. Repurchased common stock will be available for use in connection with the Company's equity compensation plans and for other corporate purposes. Repurchased debentures will be retired and canceled. The repurchase program will be funded using the company's working capital and may be suspended or discontinued at any time. Red Hat had approximately 193.9 million shares of common stock outstanding as of Sept. 21, 2007. Headquartered in Raleigh, North Carolina Red Hat, Inc. --http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among others. * * * As reported on Nov. 3, 2006, Standard & Poor's Ratings Services revised its outlook on Raleigh, North Carolina-based operating systems provider Red Hat Inc. to stable from positive, and affirmed its 'B+' corporate credit rating. RED HAT: JMP Securities Maintains Market Perform Rating ------------------------------------------------------- JMP Securities analyst Denny C. Fish has kept his "market perform" rating on Red Hat Inc.'s shares, Newratings.com reports. Mr. Fish said in a research note that Red Hat reported mixed results for the fiscal second quarter 2008. The firm disclosed that its revenues surpassed consensus, while its earnings per share were in-line with the consensus. JBoss' performance was short of the guidance during the fiscal first half of 2008, Newratings.com says, citing Red Hat. The earnings per share estimate for fiscal year 2008 was decreased to US$0.71 from US$0.72. Meanwhile, the earnings per share estimate for fiscal year 2009 was increased by US$0.85 to US$0.86, Newratings.com states. Headquartered in Raleigh, North Carolina Red Hat, Inc. --http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among others. * * * As reported on Nov. 3, 2006, Standard & Poor's Ratings Services revised its outlook on Raleigh, North Carolina-based operating systems provider Red Hat Inc. to stable from positive, and affirmed its 'B+' corporate credit rating. SAN ISIDRO: Proofs of Claim Verification Is Until Oct. 1 -------------------------------------------------------- Roque Alberto Pepe, the court-appointed trustee for San Isidro Pizza S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Oct. 1, 2007. Mr. Pepe will present the validated claims in court as individual reports on Nov. 13, 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 San Isidro 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 San Isidro's accounting and banking records will be submitted in court on Dec. 26, 2007. Mr. Alberto is also in charge of administering San Isidro's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Roque Alberto Pepe Argentina 5785 Buenos Aires, Argentina UNIVERSAL AVIATION: Final General Meeting Is Today -------------------------------------------------- Universal Aviation & Marine Risks Ltd.'s final general meeting is scheduled on Sept. 28, 2007, at 9:30 a.m., at: Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. YACOPLAST SA: Proofs of Claim Verification Ends Today ----------------------------------------------------- Estudio Carlen, Paulin, Sanzone, Suarez & Asoc., the court- appointed trustee Yacoplast S.A.'s reorganization proceeding, verifies creditors' proofs of claim on Sept. 28, 2007. Estudio Carlen will present the validated claims in court as individual reports on Nov. 12, 2007. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Yacoplast 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 Yacoplast's accounting and banking records will be submitted in court on Dec. 26, 2007. The informative assembly will be held on July 4, 2008. Creditors will vote to ratify the completed settlement plan during the assembly. The trustee can be reached at: Estudio Carlen, Paulin, Sanzone, Suarez & Asoc. Uruguay 782 Buenos Aires, Argentina ============= B A H A M A S ============= BANK OF BARODA: Opens Representative Office in Australia -------------------------------------------------------- Bank of Baroda has opened a representative office in Sydney, Australia. According to myiris.com, the Australian office will provide business advisory services to Indian and Australian corporates, besides assisting Indian expatriates, students and local community to effect remittances to and from India and rest of the world through its 2,800 branches across the globe. "We have to move from cricket to economy as Australia becomes an important bilateral trading partner," The Economic Times quotes Indian Minister of State for Finance Pawan Kumar Bansal as saying. "With many more Indian banks coming here and Australian banks going to India, together we can charter the path of common prosperity." The bank is also planning to obtain a license from the Australian Prudential Regulatory Authority for a full-fledged branch in the future, Bank of Baroda's Chairman and Managing Director Anil K. Khandelwal told The Times, With the opening of the office, the bank overseas offices now total 64, in 22 countries across six continents, worldwide, myiris.com says. Headquartered in Vadodara, India, Bank of Baroda -- http://www.bankofbaroda.com/-- is a provider of banking services in India. The company's solutions includes personal banking, which includes deposits, retail loans, credit cards, debit card, lockers and other services; business banking, which comprises working capital, term finance and traders loans; corporate banking, which includes cash management and remittances, multi-city cheques, appraisals and merchant banking; international business, which includes import finance, international treasury, export finance, correspondent banking and other solutions; treasury banking, which comprises domestic operations and forex operations, and rural banking, which includes retail loan, small businesses and small scale industries. Bank of Baroda has branches in the Bahamas, Belgium, the Fiji Islands, Mauritius, Republic of South Africa, Seychelles, Singapore, Sultanate of Oman, United Arab Emirates, the United Kingdom, and the United States of America. * * * As reported by the Troubled Company Reporter-Asia Pacific on July 11, 2007, Standard & Poor's assigned its 'BB' issue rating to Bank of Baroda's US$300 million upper Tier-II subordinated notes due in 2022. Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of Baroda's proposed unsecured subordinated Upper Tier 2 notes (expected size: USD250 million plus greenshoe option), as well as the hybrid Tier 1 debt to be issued under its USD1.5 billion medium-term notes programme. The agency also affirmed the bank's Individual Rating of 'C/D'. Fitch said the outlook on all ratings is stable. ============= B E R M U D A ============= ANA SUB: Holds Final General Meeting Today ------------------------------------------ Ana Sub One Co. Ltd.'s final general meeting is scheduled on Sept. 28, 2007, at 9:30 a.m., at: Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. CHATHAM ATLANTIC: Final General Meeting Is Today ------------------------------------------------ Chatham Atlantic Re Ltd.'s final general meeting is scheduled on Sept. 28, 2007, at 10:00 a.m., at: Dorchester House, 7 Church Street Hamilton, HM 11, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. CHEVRON OVERSEAS: Holding Final General Meeting Today ----------------------------------------------------- Chevron Overseas (Namibia) Ltd.'s final general meeting is scheduled on Sept. 28, 2007, at 9:30 a.m., at: Chevron House 11 Church Street, Hamilton Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. GLASS IIP: Proofs of Claim Must be Filed Today ---------------------------------------------- Glass IIP Ltd.'s creditors are given until Sept. 28, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Glass IIP's shareholders agreed on Aug. 7, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Tel: (345)-949-5122 Fax: (345)-949-7920 GLASS EQUITY: Proofs of Claim Filing Ends Today ----------------------------------------------- Glass Equity Ltd.'s creditors are given until Sept. 28, 2007, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Glass Equity shareholders agreed on Aug. 7, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Tel: (345)-949-5122 Fax: (345)-949-7920 GRAPE LIMITED: Holding Final General Meeting Today -------------------------------------------------- Grape Ltd.'s final general meeting is scheduled on Sept. 28, 2007, at 9:30 a.m., at: Clarendon House, Church Street Hamilton, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. SAH LIMITED: Proofs of Claim Filing Ends Monday ----------------------------------------------- Sah Ltd.'s creditors are given until Oct. 1, 2007, to prove their claims to Marco Montarsolo, 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. Sah Ltd.'s shareholders agreed to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Marco Montarsolo Sofia House, 1st Floor 48 Church Street Hamilton, Bermuda SCOTTISH RE: Names Terry Eleftheriou as Executive VP & CFO ---------------------------------------------------------- Scottish Re Group Limited has appointed Terry Eleftheriou as Executive Vice President and Chief Financial Officer, effective Nov. 12, 2007. Mr. Eleftheriou will be based at the company's Hamilton, Bermuda headquarters and will join the Company on Oct. 1. He will serve in a transition role until he assumes the CFO position on Nov. 12. Mr. Eleftheriou was most recently a group finance executive with XL Capital where he was responsible for leading a number of strategic global initiatives to transform and integrate finance operations and enhance business processes and related controls. He was also a member of XL's global Finance Executive Council and Executive Management Group and worked closely with XL's executive management team and Board of Directors. Prior to joining XL Capital in November 2003, Terry was the CFO of Sage Insurance Group International and previously was the finance leader for the retirement services segment of American General Financial Group. He also occupied a variety of leadership roles spanning a 15-year career with Ernst & Young where he specialized in providing assurance and advisory services to insurance and financial services companies in North America, Europe, and Asia. Mr. Eleftheriou is a Fellow of the Institute of Chartered Accountants in England and Wales and a member of the Connecticut Society of Certified Public Accountants. He holds a Bachelor of Science in Economics from the City University in London, England. As Scottish Re's Chief Financial Officer, Mr. Eleftheriou will lead the company's global finance function and will be responsible for its financial operations, including accounting and reporting, financial planning and analysis, taxation, audit, and investor and rating agency relations. In welcoming Mr. Eleftheriou to Scottish Re, George Zippel, President and Chief Executive Officer, noted, "Terry is a proven insurance financial executive who has led and managed change in dynamic environments across the globe. He will be a strong business partner for me and the senior leadership team of Scottish Re. I'm confident Terry will have an immediate and positive impact as we work to improve our financial, operating and risk management disciplines and drive profitable growth." Mr. Eleftheriou commented, "I'm excited to be joining Scottish Re at this juncture in its development and look forward to working with George Zippel and the rest of the team in re- establishing the Company as a leader in the global life reinsurance industry. We will build on the existing capabilities of the Company to deliver against the needs and expectations of our various stakeholders in order to grow shareholder value." About Scottish Re 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. UNOCAL BANGLADESH: Final General Meeting Is Today ------------------------------------------------- Unocal Bangladesh Block Five Ltd.'s final general meeting is scheduled on Sept. 28, 2007, at 9:30 a.m., at: Chevron House 11 Church Street, Hamilton Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. =========== B R A Z I L =========== ACTUANT CORP: Earns US$31.4 Million in 4th Quarter Ended Aug. 31 ---------------------------------------------------------------- Actuant Corporation reported fourth quarter fiscal 2007 net earnings and EPS of US$31.4 million and US$1.00, respectively, compared to prior year net earnings and EPS of US$25.2 million and US$0.82, respectively. Fiscal 2007 fourth quarter results include a US$1.1 million charge covering a portion of the Company's previously announced restructuring of its European Electrical business and a US$1.6 million benefit from the utilization of a foreign tax credit. Fiscal 2006 fourth quarter results include a US$4.5 million restructuring charge and a US$5.4 million income tax benefit primarily related to the reversal of a tax valuation allowance for net operating losses. Excluding these items, fourth quarter EPS increased 25% year-over-year from US$0.79 to US$0.99. Net earnings and EPS for the year ended Aug. 31, 2007, were US$105.0 million and US$3.38, respectively, compared to prior year net earnings and EPS of US$92.6 million and US$3.01, respectively. Fiscal 2007 results include a US$4.5 million charge related to European Electrical restructuring and a US$1.6 million benefit (US$0.05 per diluted share) from the utilization of a foreign tax credit. Fiscal 2006 results include a US$4.5 million restructuring charge and an US$8.0 million income tax benefit primarily related to the reversal of a tax valuation allowance for net operating losses. Excluding these special items, full year EPS increased 20% year-over-year from US$2.90 to US$3.47. Robert Arzbaecher, President and CEO of Actuant commented, "We are extremely pleased with our 2007 results, representing the 6th consecutive year of diluted earnings per share improvement in excess of 15%, excluding special items. Our team continues to execute on the Actuant business model, leveraging organic growth opportunities in our diverse, niche businesses. In addition to core growth, we acquired five businesses during the fiscal year and completed a sixth in September, strengthening our existing units. Lastly, with our strong performance in the second half of the year, we generated margin expansion and record cash flow. I am tremendously proud of what the Actuant team has achieved and equally enthusiastic about our future opportunities." Consolidated Results Fourth quarter sales increased 20% to US$390 million from US$325 million in the prior year, reflecting the combination of core growth, business acquisitions and the weaker US dollar. Excluding the impact of foreign currency rate changes (3%) and acquisitions (11%), core sales growth was 6%. All four business segments contributed to the core growth with the Industrial and Engineered Products segments generating double-digit improvement. Operating margins in the fourth quarter improved 50 basis points, to 13.8% from 13.3% in the prior year, excluding restructuring charges. The increase is the result of higher gross profit margins as well as tightly controlled selling, administrative and engineering spending, partially offset by higher acquisition related amortization expense. These results reflect the Company's continuous improvement initiatives including strategic sourcing and Lean Enterprise Across Discipline activities, as well as volume leverage. Sales for the year ended Aug. 31, 2007, were US$1.46 billion, 21% higher than the US$1.20 billion in the comparable prior year period. Core sales increased 6% for the fiscal year, with acquisitions and foreign currency rate changes contributing 11% and 4%, respectively. Fiscal 2007 fourth quarter Electrical segment sales increased 18% to US$132 million, reflecting 3% core sales growth, favorable foreign currency exchange rate changes and the acquisitions of Actown (August 2006) and BH Electronics (July 2007). Electrical segment operating profit margin declined from 8.6% in the fourth quarter of fiscal 2006 to 8.2% in fiscal 2007 resulting from unfavorable sales and acquisition mix. Partially offsetting this was the benefit of higher volumes, most notably in the professional electrical product line, along with the benefit of continuous improvement initiatives across the businesses. The company is on track to substantially complete the previously announced restructuring of its European Electrical operations by the end of the second quarter of fiscal 2008. Actuation Systems fourth quarter fiscal 2007 sales increased 4% to US$104 million. Core sales grew 1% in the quarter as increased demand for the company's recreational vehicle (RV) and truck actuation products outside of North America was partially offset by declines in both the automotive and North American truck markets. The decline in North American truck was anticipated due to the impact of emissions regulation changes, while automotive sales declined due to new platform launches in the prior year. Operating profit margins improved 40 basis points compared to last year due primarily to higher volumes and the benefit of profit improvement actions. Fiscal 2007 fourth quarter Engineered Products segment sales more than doubled to US$33 million reflecting both 15% core sales growth and the acquisition of Maxima in December 2006. Operating profit margins improved 160 basis points to 14.9%, the highest of the year, due to favorable acquisition mix and base business expansion. Financial Position Fiscal year-end net debt (total debt of US$562 million less US$87 million of cash) was US$475 million, a decrease of US$6 million from the beginning of the quarter. Strong cash flow in the quarter more than offset the US$30 million of cash used to finance the BH Electronics acquisition, US$4 million of Senior Notes issuance costs and US$11 million of capital expenditures. Actuant used approximately US$163 million of cash during the 2007 fiscal year to fund acquisitions and US$31 million for capital expenditures. Despite this significant capital deployment, net debt at year-end was only US$20 million higher than the US$455 million at the beginning of the year. Actuant generated cash from operations of US$177 million in fiscal 2007, approximately 45% higher than the prior year, reflecting record earnings and effective working capital management. Outlook The company increased its fiscal year 2008 guidance to reflect the BH Electronics and TK Simplex acquisitions, as well as its current business, economic and foreign exchange rate outlooks. Full year fiscal 2008 EPS is expected to be in the range of US$3.80-3.95 (excluding European Electrical restructuring charges) on sales of US$1.55-1.60 billion. For the first quarter, the Company expects sales to be in the US$390-400 million range, generating EPS of approximately US$0.93-0.97 per diluted share. Mr. Arzbaecher commented, "Actuant's strong positions in niche markets, variable cost structure and ROIC focus, as well as end market and geographic diversification, should continue to reward shareholders in fiscal 2008." About Actuant Corp. Headquartered in Butler, Wis., Actuant Corp. (NYSE: ATU) -- http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries including Australia, China, Italy, United Kingdom, Brazil, among others. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. The company employs a workforce of more than 6,700 worldwide. * * * As reported in the Troubled Company Reporter-Latin America on June 6, 2007, Moody's Investors Service assigned a Ba2 (LGD3, 43%) rating to Actuant Corporation's USUS$250 million senior unsecured notes and affirmed the company's Ba2 Corporate Family Rating. Standard & Poor's Ratings Services assigned its 'BB-' rating to Actuant Corp.'s proposed USUS$250 million senior unsecured notes due 2017. The proceeds from the notes will be principally used to repay a portion of borrowings under the company's senior credit facility due 2009. AMRO REAL: Bradesco Balks at Bank's Proposed Santander Purchase --------------------------------------------------------------- Brazil's largest private sector bank Banco Bradesco will oppose ABN Amro Real parent firm's potential merger with Santander in Brazil with organic growth, financial daily Valor Economico reports. Business News Americas relates that Spanish bank Santander is part of a three-way consortium getting closer to winning the battle for Holland's ABN Amro. BNamericas notes that UK's Barclays is also setting its sight on ABN Amro. Once the merger succeeds, Brazilian units Santander Banespa and ABN Amro Real would become the second largest private sector bank in terms of assets, according to BNamericas. Banco Bradesco Chief Executive Officer told Valor Economico that the bank aims to add 2.5 million new customers in 2007 and launch 150 branches to support the organic growth process to remain on top. About 37 of the planned subsidiaries will be in Rio de Janeiro. ABN Amro Real specializes in commercial banking, capital markets, corporate banking, asset management, and trade finance. Its more than 22,000 employees assist over five million clients throughout five thousand different points of sales. In 1999, the bank merged with Brazil's Banco Real. The regional office for Latin America and the Caribbean is located in Brazil. * * * On Aug. 23, 2007, Moody's Investors Service upgraded Banco ABN AMRO Real S.A.'s long-term foreign currency deposits to Ba2. Moody's said the rating outlook is stable. BANCO NACIONAL: Investing BRL1.25 Bil. in Telemar Participacoes --------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has pledged to invest some BRL1.25 billion in local telecoms holding Telemar Participacoes once the company has difficulty restructuring a recent loan, according to a report by news service Agencia Estado. Banco Nacional holds a 25% stake in Telemar Participacoes. Telemar Participacoes investor relations director Fabio Schvartsman told Agencia Estado that the pledge was "instrumental" in helping the firm get a BRL12.7-billion "bridge loan from various banks, given the recent turbulence" in international markets. Due to market turbulence, the company finds it very difficult to secure the bridge loan from: -- JPMorgan, -- ABN Amro, -- UBS, -- Citibank, and -- Banco do Brasil. According to Business News Americas, the bridge loan is necessary to fund the buyout of preferred shares in Telemar Participacoes unit Tele Norte Leste Participacoes, aka Oi. The buyout tender is set for Oct. 11, 2007. Telemar Participacoes is using the bridge loan to raise its offer for Tele Norte Leste Participacoes shares to BRL45 from BRL35.09. Telemar Participacoes will follow through on the offer once there is at least 66% acceptance. Mr. Schvartsman told BNamericas that without Banco Nacional's cash injection, Telemar Participacoes wouldn't be able to proceed with the buyout offer. Meanwhile, Telemar Participacoes wants to list as a public company and use the initial public offiering proceeds to restructure the bridge loan, BNamericas relates, citing Mr. Schvartsman. Banco Nacional will "act on its guarantee" once Telemar Participacoes has difficulty extending the repayment deadlines. This grants Telemar Participacoes some freedom to wait until market conditions are proper for the initial public offering, Mr. Schvartsman told BNamericas. About Participacoes Telemar Participacoes S.A. is a communications services provider in Region I of Brazil. Through its subsidiaries, it offers an integrated communications product package that includes traditional fixed-line, mobile, broadband/Internet service provider and other services to consumers, small and mid-size business users, and government bodies. It provides its traditional fixed-line business, which includes local, long- distance, public telephone and network services, in Region I pursuant to concessions from the Brazilian government. This business is marketed under its Telemar brand name. The company's mobile telecommunications business is marketed in Region I under its Oi brand name. Its broadband services business is marketed under its Velox brand name. Its operating area, Region I includes the States of Rio de Janeiro, Minas Gerais, Espirito Santo, Bahia, Sergipe, Alagoas, Pernambuco, Paraiba, Rio Grande do Norte, Ceara, Piaui, Maranhao, Para, Amazonas, Roraima and Amapa. 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. FORD MOTOR: Four Firms Still On Track to Buy Jaguar & Land Rover ---------------------------------------------------------------- Ford Motor Co.'s Jaguar and Land Rover still has four potential buyers left after two Indian firms, Mahindra & Mahindra and Cerberus, quit the buying race, Reuters reports, citing sources familiar with the matter. The four remaining suitors, according to Reuters' sources, are One Equity Partners, Ripplewood, Tata Motors and TPG, but these firms are yet to complete the due diligence. The Troubled Company Reporter said June 13, 2007, that Ford employed help from investment banks including Goldman Sachs, HSBC and Morgan Stanley to explore the sale of its two British luxury brands, which had lost US$12.6 billion last year. In August, an International Herald Tribune report said Ford's financial and legal advisers have begun preparing information to facilitate due diligence for potential bidders of the two marques as Ford hopes to reach a tentative deal by the end of September. Ford expects to finalize the sale deal by December or the early stages of Fiscal Year 2008, Lewis Booth, EVP of Ford's European units, said, according to Breaking News.ie. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on July 30, 2007, Moody's Investors Service said that the performance of Ford Motor Company's global automotive operations for the second quarter of 2007 was significantly stronger than the previous year and better than street expectations. However, Moody's explained that the company continues to face significant competitive and financial challenges, and the rating agency expects that Ford's credit metrics and rate of cash consumption will likely remain consistent with no higher than a B3 corporate family rating level into 2008. According to the rating agency, Ford's corporate family rating is currently a B3 with a negative outlook. The rating is pressured by the shift in consumer preference from high margin trucks and SUVs, and by the need for a new 2007 UAW contract that provides meaningful relief from high health care costs and burdensome work rules, Moody's relates. In June 2007, S&P raised the Issue Rating on Ford's senior secured credit facilities to B+ from B. GENERAL MOTORS: Inks Tentative Pact on Labor Contract with UAW -------------------------------------------------------------- General Motors and the United Auto Workers union have reached a tentative agreement on a new national labor contract, covering approximately 74,000 represented employees. The agreement is subject to UAW member ratification. The tentative agreement includes a memorandum of understanding to establish an independent retiree health care trust, as well as other changes to the national agreement. Following ratification, implementation of the memorandum of understanding is subject to approval by the courts, and satisfactory review of accounting treatment with the Securities and Exchange Commission. "There's no question this was one of the most complex and difficult bargaining sessions in the history of the GM/UAW relationship," said Rick Wagoner, GM Chairman and CEO. "I'd like to thank UAW President Ron Gettelfinger, UAW Vice President Cal Rapson and their bargaining team for their leadership and hard work in negotiating the agreement." The national agreement paves the way for GM to significantly improve its manufacturing competitiveness, providing the basis for maintaining and strengthening its core manufacturing base in the United States. "This agreement helps us close the fundamental competitive gaps that exist in our business," Wagoner said. "The projected competitive improvements in this agreement will allow us to maintain a strong manufacturing presence in the United States along with significant future investments." About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world 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. GENERAL MOTORS: Canada Plants Reopened Due to Tentative UAW Pact ---------------------------------------------------------------- General Motors Corp.'s Canada plants reopened Wednesday as a result of the company's tentative agreement with the United Auto Workers union, Reuters reports citing GM Canada public relations director Stew Low. As reported in yesterday's Troubled Company Reporter, the automaker's Car Plant 1 and Car Plant 2 in Oshawa, Ontario closed Tuesday while its transmission plant in Windsor, Ontario closed Monday. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world 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. GENERAL MOTORS: Fitch Affirms & Removes IDR & Debt Ratings ---------------------------------------------------------- Fitch Ratings has affirmed and removed the Issuer Default Rating and debt ratings of General Motors from Rating Watch Negative following the announcement that GM has reached an agreement on a new contract with the United Auto Workers (UAW). Fitch currently rates GM as: -- IDR 'B'; -- Senior secured 'BB/RR1'; -- Senior unsecured 'B-/RR5'. The Rating Outlook is Negative. Fitch will review the terms of the new agreement, but does not anticipate an Outlook revision or rating change as a result of the contract alone. Any change in the Rating Outlook is not expected until a clear path to positive free cash flow is established, and Fitch estimates that the full removal of retiree health care costs will be insufficient in itself to accomplish this. The ability to achieve positive free cash flow will also hinge upon GM's ability to stabilize volume and revenues in North America, and to establish further improvement in its fixed cost structure through restructuring actions and labor outsourcing. The contract has yet to be ratified, which could remain a hurdle. Failure to ratify the contract, which would send the parties back to the negotiating table, would likely result in another Rating Watch Negative placement. Terms of the contract that Fitch will be focusing on include: -- The funding amount, structure and timetable of an independent VEBA trust to remove retiree healthcare liabilities from the balance sheet; -- The terms of any contingent funding requirements for GM related to the VEBA trust; -- Changes to job classifications and wage rates - effectively the establishment of a two-tier wage scale through greater flexibility in labor outsourcing to parts manufacturers and/or other third-party suppliers; -- Changes to health care costs for retirees and existing workers; -- Risks associated with any changes to pension obligations from wage rates, or to pension benefits paid; -- The flexibility to downsize manufacturing and personnel costs in response to cyclical market conditions or product performance; -- Commitments by GM to maintain employment levels (including the terms of any job banks) or product programs at U.S. manufacturing operations; -- The cost of payments to workers for ratification, and the costs of any subsequent buyout packages; -- GM's liquidity position following the financing of VEBA and other costs related to the terms of the contract. A subsequent review of the Rating Outlook or rating will encompass the impact of these contract terms in the context of additional rating factors listed below: -- GM's liquidity buffer and ability to finance large working capital requirements, economic and product cycles and restructuring actions over the next several years; -- Fitch's Recovery Rating analysis estimates that further plant closings and restructuring actions, beyond what is currently contemplated, will be needed to restore North American operations to viable operating margins in the absence of an upturn in revenue performance; -- GM's liquidity over the past several years has been boosted by numerous asset sales that have reduced asset protection for debt holders and GM's earnings capacity. Asset sales have included a controlling interest in GMAC, Allison Transmission, its electro-motive division and shareholdings in Suzuki and Fuji Heavy Industries. Proceeds have been used to finance operating losses, substantial costs related to Delphi, the funding of an independent VEBA related to an earlier healthcare agreement with the UAW, and a price adjustment related to the sale of GMAC, all of which have reduced available liquidity; -- Despite the potential removal of health care liabilities, GM's balance sheet has added significant incremental debt over the past several years, and the potential absence of free cash flow available over the near term will preclude significant debt reduction from existing levels; -- Ongoing heavy costs related to its agreement with Delphi, and any additional costs required to assist in Delphi's emergence from bankruptcy; -- The impact of local labor agreements on GM's fixed cost structure; -- GM's North American revenue performance, which will remain under pressure for at least the next twelve months due to deteriorating economic conditions, the impact of a recessionary housing market on pickup sales, and weak performance across a number of GM's product segments; -- Strong performance of GM's international operations, and the ability of those operations to contribute to the servicing of consolidated liabilities. 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. GP INVESTMENTS: S&P Places B+ Rating on Proposed Bonds ------------------------------------------------------ Standard & Poor's Ratings Services has assigned its 'B+' rating to the proposed additional issuance of perpetual bonds by GP Investments Ltd. (GP; B+/Stable/--). The additional issuance has the same characteristics as the notes issued in January 2007, except for the pledge of the shares of GP Private Equity, Ltd., which were released in June 2007. GP's investment policy includes preference for larger companies, primarily located in Brazil and, to a lesser extent in other Latin American countries. We expect the investment portfolio to have significant concentration in the medium-to-long term. The company has certain policies on maximum concentration; however, this compares unfavorably with global private equity businesses. On the positive side, the investments exclude start-up companies, which reduce uncertainty in the investment process. Liquidity and leverage are potential risk factors to the rating because of the intrinsic risks to the private equity activity, and require close monitoring. GP partially mitigated the liquidity risk by using a coupon-payment reserve to cover an 18- month period of interest on the perpetual notes. GP also intends to keep minimum cash reserves to cover operating expenses during the preoperating phase. We view this as a key feature because recurring revenues were not sufficient to cover fixed costs in 2006, a situation that we expect to improve only after 2007, with the inflow of additional management fees. The stable outlook on GP's rating reflects our expectations that GP will maintain strong investment concentration during the next years, requiring disciplined liquidity management. The outlook also incorporates our expectation that recurring revenues will be sufficient to cover fixed costs after 2007. The rating may be lowered or the outlook revised to negative if the company increases its total debt beyond $250 million or has worse-than- expected liquidity indicators. We expect the company to maintain cash reserves that are sufficient to cover both financial and operational costs. GP Investments - http://www.gpinvestments.com/-- is a leading private equity player in Brazil. The GP Investments' activities consist of its core private equity business and its asset management business, and its mission is to generate higher than average long-term return to its investors and shareholders. Since its inception in 1993, GP Investments raised more than US$1.5 billion from Brazilian and international investors, and acquired more than thirty-five companies in ten different sectors. On May 2006, GP Investments concluded its Initial Public Offering -- IPO, becoming the first listed private equity company in Brazil. GP INVESTMENTS: Fitch Expects B/RR4 Rating on Perpetual Notes ------------------------------------------------------------- Fitch Ratings expects to assign a 'B/RR4' rating to GP Investments Ltd extension of the 2007 senior perpetual notes program. The Rating Outlook is Positive. On July 25, 2007, Fitch revised the Rating Outlook of GP's IDR 'B' and its original US$150 million perpetual notes issuance to Positive from Stable given the significant expected increase in assets under management and its positive effects over GP's recurrent income. Resolution of the Positive Outlook will depend on the ability of GP to sustain the expected increase in recurring income and keep an adequate control of its expenses, while a successful deployment of new investments will also be monitored. The need for a significantly more diversified investment portfolio, a further increase of recurrent income to cover operating expenses, and a more developed valuation methodology, are key to sustain an improvement of GP's rating going forward. The perpetual notes will have no fixed final maturity date and will be repaid only in the event that the Issuer redeems the notes or upon acceleration due to an event of default. The notes will be general unsubordinated obligations of GP and will rank pari passu with the company's unsubordinated indebtedness. The obligations of GP under the notes will be supported by an 18-month coupon payment reserve, which will be deposited in a trustee. The rating of the issuance recognizes the liquidity implicit in the coupon reserve, augmented by substantial cash currently on hand, nevertheless, the concern is that the latter is intended to be used for investments, and its availability at any point during the life of the debt instrument is difficult to predict. GP's ratings are supported by adequate leverage levels, the franchise of the company and the experience of the management team which bodes well for positive prospects going forward. Also, the significant increase in the size of its portfolio of managed investments results in a positive trend on its recurrent income. The ratings are constrained, however, by the concentrated nature of the current and intended investment portfolio (by country and by individual investment size), the uncertainty related to the maturation period of the investment portfolio, and GP's timing and ability to realize investment gains. GP Investments - http://www.gpinvestments.com/-- is a leading private equity player in Brazil. The GP Investments' activities consist of its core private equity business and its asset management business, and its mission is to generate higher than average long-term return to its investors and shareholders. Since its inception in 1993, GP Investments raised more than US$1.5 billion from Brazilian and international investors, and acquired more than thirty-five companies in ten different sectors. On May 2006, GP Investments concluded its Initial Public Offering -- IPO, becoming the first listed private equity company in Brazil. JBS SA: Moody's Confirms B1 Senior Unsecured Rating --------------------------------------------------- Moody's Investors Service has confirmed Brazilian meat processor JBS S.A.'s B1 global local currency corporate family rating and its B1 senior unsecured rating. The rating outlook is negative. This action concludes the review for downgrade Moody's initiated on May 29, 2007, following the company's announced signing of a definitive agreement to acquire US-based meat processor Swift & Company for approximately US$1.4 billion. "The confirmation of JBS's B1 rating with a negative outlook recognizes among other factors the execution and operational challenges JBS will face to turn Swift's beef U.S. operations around, as well as Swift's overall higher and more volatile cost-structure which will result in significantly lower margins for JBS overall", said Moody's AVP-Analyst Soummo Mukherjee. "These risks are, however, partly mitigated by the approximate US$950 million equity contribution to fund this transaction, resulting in a pro-forma leverage (Debt/EBITDA) of 3.7 times, as well as the company's improved scale, geographic diversification of sales and raw materials", added Mr. Mukherjee. After several changes to the financing structure to acquire Swift, JBS ended up contributing a total of USD 950 million in equity to fund the Swift transaction and reducing total Swift debt by approximately US$430 million, bringing the company's Debt/EBITDA to 7.1 times from 10.5 times at the end of FYE 2007 (according to Moody's standard definitions and adjustments). US$155 million came from J&F, a holding controlled by JBS' family members, while another US$583 million was raised in equity and subscribed by Brazilian development bank, BNDES and US$212 million was subscribed by other minority shareholders. Moody's regards as positive the fact that BNDES, rated A1 (global local currency), is now a strategic shareholder in JBS with a 12.95% ownership. BNDES has a track record for supporting its equity investments, a source of cheap financing for local currency debt and considered a lender of last resort to troubled credits in Brazil. Swift is the largest acquisition that JBS has ever made, which poses significant execution challenges in the successful implementation of the turnaround process at Swift by JBS executives. While JBS's management is experienced in the Brazilian and, more recently, in the Argentinean market, JBS has no prior experience operating in the US and Australian markets; nor does it have experience operating in the pork business, which accounts for approximately 22% of Swift's revenues. Given the different protein production and processing dynamics, the differing retail and food service business practices, as well as consumer marketing, taste and purchasing preferences, the current B1 rating does not incorporate a significant improvement in cash flow generation or operating margins at Swift due to JBS' new initiatives aimed at reducing costs. Swift's efficiency and profitability profile is weak. Swift's margins are low, even for a protein processor reflecting the overall industry challenges as well as historically weak operating performance in its US beef business. EBITA margin has fallen consistently since fiscal 2003's modest 2.1%, given the challenges in the beef industry over this time frame. Fiscal 2007 profitability has been impacted by the December 2006 raid on Swift's operations by the U.S. Immigration and Customs Enforcement Agency, which disrupted the company's operations. After a six to seven hour suspension of operations on Dec. 12, Swift resumed production at all facilities, at reduced output levels. Over the near term, beef output levels are expected to be below and operating costs above historical levels -- at least through the summer of 2007 -- due to the fallout from this event. Moody's analyzes JBS's operations in the context of the Rating Methodology for Global Natural Product Processors -- Protein and Agriculture. Using the 22 rating factors cited in this methodology JBS's rating based on the last three years of Swift's and JBS's results yield a B1 rating, the same level as its actual rating. JBS's overall operating margins and cash flow metrics will be negatively impacted by Swift's overall lower margins. JBS's EBITDA margin and FFO/Debt of 18 % and 21%, respectively for last twelve months ended in June 30, 2007, will drop to approximately 4% and 11% with the inclusion of Swift, immediately after the transaction. However, the combined group benefits from higher qualitative scores in terms of improved size, scale, geographic sales and raw materials diversification, as well as improved market share worldwide, help support the B1 rating for JBS after the acquisition of Swift. The negative rating outlook on JBS' ratings reflect the expected significant operating challenges it faces in successfully turning around Swift's US beef operations while keeping the other businesses (Brazil, Argentina, US pork and Australia beef) on track and without disruptions. Furthermore, the negative outlook reflects some concern with the refinancing risk associated with the loan and credit agreements totaling US$750 million at Swift Holdings that mature over the coming 12 months. Outlook Actions: -- Outlook, Changed To Negative From Rating Under Review Confirmations: -- Corporate Family Rating, Confirmed at B1 -- Senior Unsecured Regular Bond/Debenture, Confirmed at B1 Stabilization of the rating outlook would require more stable operating performance at Swift, and require evidence that the transition to its new senior management team has occurred without operational disruptions, loss of market share or negative earnings impact. Quantitatively, it would require last twelve months Debt/EBITDA to be below 3.5 times, EBITA/Interest to be above 1.5 times and RCF / Net Debt above 15%, all on a consistent basis. All credit metrics are according to Moody's standard adjustments and definitions. JBS's ratings could be lowered should operating performance at Swift fail to rebound as expected, should Swift's market share erode, or should the company fail to address its debt maturities in a timely manner and the company's financial flexibility become limited. Quantitatively, negative rating pressure would arise should LTM Debt/EBITDA likely be sustained above 4 times, EBIT/Interest approach 1.0 or RCF/Net Debt fall below 10%. Headquartered in Sao Paulo, Brazil, JBS is the third largest beef company in the world in terms of cattle slaughtering capacity and the largest beef processor and exporter in Brazil, Argentina and Latin America. With operations in Brazil and Argentina, JBS produces, prepares, packages and delivers fresh, chilled and processed beef and beef by-products to customers both in Brazil and abroad. MAGNA INTERNATIONAL: Buys 11.9 Mln Class A Shares for US$1.1 Bln ---------------------------------------------------------------- Magna International Inc. reported final results of its offer to purchase up to US$1,536,600,000 in value of its Class A Subordinate Voting Shares, which expired at 5:00 p.m. (Toronto time) on Sept. 20, 2007. Magna confirmed that it has purchased for cancellation 11,908,944 Class A Subordinate Voting Shares, representing 9.2% of its issued and outstanding Class A Subordinate Voting Shares, at US$91.50 per share for an aggregate purchase price of approximately US$1.1 billion. Payment for these shares was made on Sept. 25, 2007. The purchase was funded from the proceeds of the treasury issuance of 20,000,000 Class A Subordinate Voting Shares pursuant to the plan of arrangement involving Russian Machines, which was completed on Sept. 20, 2007. Any Class A Subordinate Voting Shares which were not validly deposited will be returned as promptly as possible. Headquartered in Ontario, Canada, Magna International Inc. (TSX: MG.A, MG.B; NYSE: MGA) -- http://www.magna.com/-- is a an automotive supplier that designs, develops and manufactures automotive systems, assemblies, modules and components, and engineers and assembles complete vehicles, for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America and Africa. In South America, it has two operations in Brazil. The company's capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; metal body and chassis systems; vision systems; electronic systems; exterior systems; powertrain systems; roof systems; well as complete vehicle engineering and assembly. The company has approximately 83,000 employees in 229 manufacturing operations and 62 product development and engineering centers in 23 countries. * * * As reported in the Troubled Company Reporter on Sept. 24, 2007, Magna International Inc.'s plan of arrangement and agreements relating to the strategic investment in Magna by Open Joint Stock Company Russian Machines became effective on Sept. 20, 2007. * BRAZIL: Invites Foreign Oil Companies to Explore for Oil ---------------------------------------------------------- The Brazilian government is set to become a net oil exporter by offering licenses to foreign oil companies in order to expand production and reserves. Brazil aims to boost production to 2.7 million barrels per day by 2012 from its current level of 1.8 million barrels per day, The Financial Times reports. Nelson Narciso, head of the country's hydrocarbons regulator, told oil executives in London, that investors would find a stable operating environment in his country for long-term development, the FT relates. The November licensing round will offer 98,000 sq. km in 313 areas, the FT says. Mr. Narciso said that about 40% of the new licenses are for areas with high potential. Oil experts, according to the FT, see Brazil as a largely unexplored area with high potential. However, exploration costs in the region would be high and could cause investors to think twice before investing. * * * 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'salso affirmed these ratings on the Republic of Brazil: -- 'BB' for long-term foreign currency credit rating, -- 'BB+' for long-term local currency credit rating, and -- 'B' for short-term currency sovereign credit rating. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. * BRAZIL: Won't Renegotiate Pacts with Foreign Oil Companies ------------------------------------------------------------ Brazil's National Petroleum Agency director Newton Monteiro told Reuters that the government won't renegotiate its oil contracts with foreign companies. Brazil needed foreign investors to increase its oil output in the coming years, Reuters says, citing Mr. Monteiro. According to him, the state-run oil firm Petroleo Brasileiro SA is a large company but it can't handle everything. "So it's necessary to have different companies with more investment and people to get to our reserves and place our country in a comfortable position," Mr. Monteiro commented to Reuters. Mr. Monteiro told Reuters that Brazil wouldn't follow the lead of Venezuelan President Hugo Chavez in renegotiating oil contracts to increase the state's share of oil revenues. He said that President Chavez, who has good relationship with the Brazilian government, is merely a neighbor and that the decision he made "has no reception in Brazil." Meanwhile, Brazil is seeking to auction off 312 oil and gas blocks on from Nov. 27 to Nov. 28, Reuters relates. About 50 energy firms showed some interest, including BP and Exxon, Reuters states, citing Mr. Monteiro. * * * As reported on Nov. 24, 2006, Standard & Poor's Ratings Services revised its outlook on its long-term ratings on the Federative Republic of Brazil to positive from stable. Standard & Poor's also affirmed these ratings on the Republic of Brazil: -- 'BB' for long-term foreign currency credit rating, -- 'BB+' for long-term local currency credit rating, and -- 'B' for short-term currency sovereign credit rating. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. * BRAZIL: State Firm Says Exxon Mobil May Sell LatAm Assets ----------------------------------------------------------- Brazilian state-run oil firm Petroleo Brasileiro SA's international department head Nestor Cervero told Business News Americas that U.S. oil company Exxon Mobil is keen on selling its assets in Mercosur nations as well as in Chile. Mercosur countries include Argentina, Brazil, Paraguay, and Uruguay. As reported in the Troubled Company Reporter-Latin America on Sept. 24, 2007, Exxon Mobil reportedly plans to sell its Argentine assets US$200 million, which include hundreds of service stations and a plant. Exxon Mobil allegedly wants to sell its stake "as Argentine government policies to keep fuel prices down have squeezed profit margins." Petroleo Brasileiro SA is the most likely candidate to purchase Exxon Mobil's Argentine subsidiary Esso. Mr. Cervero didn't confirm to BNamericas whether Petroleo Brasileiro is interested in the Argentine asset. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported on Nov. 24, 2006, Standard & Poor's Ratings Services revised its outlook on its long-term ratings on the Federative Republic of Brazil to positive from stable. Standard & Poor's also affirmed these ratings on the Republic of Brazil: -- 'BB' for long-term foreign currency credit rating, -- 'BB+' for long-term local currency credit rating, and -- 'B' for short-term currency sovereign credit rating. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. =========================== C A Y M A N I S L A N D S =========================== ANTHRACITE BALANCED: Proofs of Claim Filing Deadline Is Oct. 1 -------------------------------------------------------------- Anthracite Balanced Company (14) Ltd.'s creditors are given until Oct. 1, 2007, to prove their claims to Scott Aitken and Connan Hill, 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. Anthracite Balanced shareholders agreed on Aug. 15, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Scott Aitken Connan Hill P.O. Box 1109 George Town, Grand Cayman Cayman Islands Telephone: (345) 949-7755 Fax: (345) 949-7634 ANTHRACITE BALANCED: Sets Final Shareholders Meeting for Oct. 1 --------------------------------------------------------------- Anthracite Balanced Company (14) Ltd. will hold its final shareholders meeting on Oct. 1, 2007, at 10:00 a.m., at: P.O. Box 1109 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) 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: Scott Aitken Connan Hill P.O. Box 1109 George Town, Grand Cayman Cayman Islands Tel: (345) 949-7755 Fax: (345) 949-7634 ANTHRACITE MASTER: Proofs of Claim Filing Deadline Is Oct. 1 ------------------------------------------------------------ Anthracite Master Company (3) Ltd.'s creditors are given until Oct. 1, 2007, to prove their claims to Scott Aitken and Connan Hill, 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. Anthracite Master's shareholders agreed on Aug. 15, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Scott Aitken Connan Hill P.O. Box 1109 George Town, Grand Cayman Cayman Islands Telephone: (345) 949-7755 Fax: (345) 949-7634 ANTHRACITE MASTER: Final Shareholders Meeting Is Oct. 1 ------------------------------------------------------- Anthracite Master Company (3) Ltd. will hold its final shareholders meeting on Oct. 1, 2007, at 10:00 a.m., at: P.O. Box 1109 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) 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: Scott Aitken Connan Hill P.O. Box 1109 George Town, Grand Cayman Cayman Islands Tel: (345) 949-7755 Fax: (345) 949-7634 CABLE & WIRELESS: Earns BBD371.2 Mil. in Year Ended March 31 ------------------------------------------------------------ Cable and Wireless' Barbados unit earned some BBD371.2 million in the 2006/2007 financial year ended March 31, the Caribbean Broadcasting Corp. reports. According to the Caribbean Broadcasting, Cable & Wireless' profit for the 2006/2007 period was about 4% higher compared to the previous year's results, mainly due to a 15% boost in cell phone subscribers and 73% increase in broadband clients. This helped "compensate for the downward trend on the traditional line of business." The breakdown of the revenue indicates that about BBD112 million came from international sources, BBD256 million from domestic operations and BBD2.3 million from information systems activity, Cable & Wireless said in its yearly report. The profit after tax was BBD80.9 million, the Caribbean Broadcasting states. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. * Issuer: Cable & Wireless Plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- 4% Senior Unsecured Conv./Exch. Bond/Debenture Due 2010 B1 LGD4 60% GBP200 million 8.75% Senior Unsecured Regular Bond/Debenture Due 2012 B1 LGD4 60% MKP CREDIT (OFFSHORE): Proofs of Claim Filing Deadline Is Oct. 1 ---------------------------------------------------------------- MKP Credit III Offshore Ltd.'s creditors are given until Oct. 1, 2007, to prove their claims to Peter D. Anderson and William E.J. Walmsley, 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. MKP Credit's shareholders agreed on March 15, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Peter D. Anderson Tel: (345) 949-7576 Fax: (345) 949-8295 P. O. Box 897 George Town, Grand Cayman KY1-1103 Cayman Islands MKP CREDIT (MASTER): Proofs of Claim Filing Ends Oct. 1 ------------------------------------------------------- MKP Credit III Master Fund Ltd.'s creditors are given until Oct. 1, 2007, to prove their claims to Peter D. Anderson and William E.J. Walmsley, 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. MKP Credit's shareholders agreed on Aug. 2, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Peter D. Anderson Tel: (345) 949-7576 Fax: (345) 949-8295 P. O. Box 897 George Town, Grand Cayman KY1-1103 Cayman Islands ========= C H I L E ========= PHELPS DODGE: Strong Earnings Cue Moody's to Revise Outlook ----------------------------------------------------------- Moody's Investors Service has revised Freeport-McMoRan Copper & Gold Inc.'s and Phelps Dodge's outlooks to positive and affirmed all of Freeport's and Phelps Dodge's other ratings. The ratings reflect the overall probability of default of Freeport, to which Moody's assigns a PDR of Ba2. The change in outlook reflects the very strong earnings and cash flow of Freeport in the current metals market, Freeport's use of free cash flow to reduce debt since the acquisition of Phelps Dodge, and Moody's assumption that free cash flow will be sufficient to permit repayment of much of the company's US$2.45 billion Term Loan A over the next two to three quarters. The Ba2 corporate family rating reflects Freeport's high debt level of approximately US$11.3 billion, including Moody's adjustments, the high concentration in copper and resultant variability in earnings and cash flow, significant capital expenditures, and a high level of reliance on the Grasberg mine in Indonesia. The Ba2 rating favorably considers the company's leading positions in copper and molybdenum, a significant amount of gold production, the low cost, long-life reserves at PT-FI, and improved operating and political diversity. Outlook Actions: Ratings affirmed: Issuer: Freeport-McMoRan Copper & Gold Inc. -- Corporate Family Rating: Ba2 -- Probability of Default Rating: Ba2 -- US$0.5 billion Senior Secured Revolving Credit facility, Baa2, LGD1, 2% -- US$1.0 billion Senior Secured Revolving Credit Facility, Baa3, LGD2, 17% -- US$2.45 billion Senior Secured Term Loan A, Baa3, LGD2, 17% -- US$339.7 million 6.875% Senior Secured Notes due 2014, Baa3, LGD2, 17% -- US$6 billion Senior Unsecured Notes: Ba3, LGD5, 80% Issuer: Phelps Dodge Corporation -- US$107.9 million 8.75% Senior Notes due 2011, Ba1, LGD3, 36% -- US$115 million 7.125% Senior Notes due 2027, Ba1, LGD3, 36% -- US$150 million 6.125% Senior Notes due 2034, Ba1, LGD3, 36% -- US$193.8 million 9.50% Senior Notes due 2031, Ba1, LGD3, 36% Moody's last rating action on Freeport was to assign a Baa3 rating to its Term Loan A and upgrade the Phelps Dodge notes to Ba1 in July 2007. Phelps Dodge Corp. (NYSE: PD) http://www.phelpsdodge.com/-- is one of the world's leading producers of copper and molybdenum and is the largest producer of molybdenum-based chemicals and continuous-cast copper rod. The company employs 15,000 people worldwide. Phelps Dodge has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. =============== C O L O M B I A =============== BANCOLOMBIA: Completes Issuance of Ordinary Notes for COP1.5 Bln ---------------------------------------------------------------- Bancolombia S.A. has completed the issuance of Ordinary Notes for an aggregate principal amount of COP400 billion, which is the first of multiple and successive issuances of global Ordinary Notes which are limited to an aggregate principal amount of one trillion five hundred billion pesos (COP1,500,000,000,000). The subscription for today's offering was for COP747.3 billion, equivalent to 1.87 times the size of the offering. The Ordinary Notes are issued in registered form (a la orden) and negotiable in the secondary market and have the following terms: Aggregate Principal Amount Maturity COP (Months) Coupon Rate ---------------- --------- ----------- 139,848,000,000 18 DTF + 1.99% T.A. 91,000,000,000 24 DTF + 2.20% T.A. 107,400,000,000 60 DTF + 2.68% T.A. 61,752,000,000 60 IPC + 6.10% E.A. All of the proceeds from the offering will be used for general corporate purposes of Bancolombia, including all the business and operational transactions available to banking institutions in accordance with the terms and requirements established by applicable law. The Ordinary Notes were rated AAA by Duff & Phelps of Colombia. 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. ECOPETROL: Completes First Initial Public Offering -------------------------------------------------- Colombia's state-owned oil company, Ecopetrol S.A., has raised COP6.6 trilllion (US$3.3 billion) in the first round of its initial public offering, Guillermo Parra-Bernal at Bloomberg News reports. The sale process, the first in a three-round series, was launched by the government in order to raise funds that would help ease the country's deficit and spur investments in exploration and production. Colombia is Latin America's fifth-largest oil exporter with 1.5 billion barrels of proven oil reserves. The first phase is designed to transfer a 10.1% ownership to retired Ecopetrol employees, pension funds, unions, and cooperatives. The second round of the sale process will commence after the sold shares will start trading in November, and still aimed at Colombian investors. Reuters says the next sale would be for 9.9% stake in Ecopetrol. The third round will be for international investors and will be launched by August 2008 in the United States. Response from local investors was high, thrice that of what the company has expected. "It was a positive surprise because it attracted three times more investors than we initially estimated," David Cortes, who oversees about US$120 million in emerging market debt for Bulltick LLC in Miami, told Bloomberg. "This underscores the great degree of investor confidence in Colombia." Colombia's sale of Ecopetrol's stake is modelled after Brazil's Petroleo Brasileiro, where it sold shares a decade ago, a move that made it a net oil exporter, the same report says. "We are bucking a trend in Latin America," Colombian President Alvaro Uribe was quoted by Bloomberg as saying while in New York attending the United Nations General Assembly. "The tendency in Latin America is for state energy monopolies and what we did in Colombia wasn't easy. It's a big achievement." Juan Pablo Cordoba, president of the Colombian Stock Exchange, told Bloomberg in an interview that the IPO signals that the government has chosen "to have more modern markets and mechanisms to redistribute wealth across its citizens in an orderly, market-friendly manner." Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. Ecopetrol produced 385,000 barrels a day of oil and gas in 2006 and has 330,000 barrels a day of refining capacity, according to the company's Web site. In 2005 it produced about 60 percent of Colombia's daily output. * * * As reported in the Troubled Company Reporter-Latin America on June 27, 2007, Fitch Ratings upgraded the foreign currency Issuer Default Ratings of Ecopetrol to 'BB+' from 'BB'. The rating action followed the upgrade of The Republic of Colombia's foreign currency Issuer Default Ratings to 'BB+' from 'BB'. SOLUTIA INC: Poised to Emerge After Chapter 11 Settlement --------------------------------------------------------- Solutia Inc. has secured the support of all of the major constituents in its Chapter 11 cases for a consensual plan of reorganization. "I am extremely pleased to announce that we have reached a comprehensive settlement with all of the major constituents in our bankruptcy case that will form the basis for a revised consensual plan of reorganization that will be filed within the next few days," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. "The revised plan will position Solutia to emerge from bankruptcy by the end of this year as a financially healthy organization well-positioned to create significant value for its stakeholders." "The revised plan will provide for US$250 million of new investment in reorganized Solutia through a backstopped rights offering to certain creditors, as well as a reallocation of the legacy liabilities that Solutia assumed when it was spun off. Importantly, it also will provide for a resolution of all the litigation between the settling parties including a potential appeal by our noteholders, the adversary proceeding filed by our current equity holders against Monsanto and Pharmacia, and related objections to the Monsanto and Pharmacia claims." The settlement and revised plan is supported by the Ad Hoc Committee of Solutia Noteholders, the Official Committee of Equity Security Holders, the Official Committee of Unsecured Creditors, Monsanto Company, Pharmacia Corporation, the Official Committee of Retirees, and the Ad Hoc Committee of Trade Creditors. As part of the settlement, the following parties executed agreements earlier this month in support of the settlement and revised plan of reorganization: Monsanto, noteholders controlling at least US$300.1 million in principal amount of the 2027/2037 notes, the official committee of general unsecured creditors, the official committee of equity security holders, the ad hoc trade committee, and Solutia. The support agreements became effective on Sept. 6, 2007. Solutia will update its disclosure statement and plan of reorganization to reflect the terms of the settlement, and anticipates filing these documents with the U.S. Bankruptcy Court for the Southern District of New York promptly. An Oct. 10, 2007 court date has been set seeking approval of the disclosure statement. Once approved, the disclosure statement will be sent to Solutia's creditors and equity interest holders for voting purposes. Following the voting process, the court will hold a hearing to approve or "confirm" the plan. "Since beginning the chapter 11 process, we have concentrated on the implementation of a reorganization strategy focused on enhancing our financial and operating performance, changing our portfolio so that it consists of high potential businesses, and achieving a reallocation of legacy liabilities. I am pleased to say that the men and women of Solutia have been very successful in executing this strategy and, as a result, we are able to provide enhanced recoveries for all creditor constituencies, including current equity holders," added Quinn. "The revised plan also situates us well to deliver the fourth component of our strategy for rehabilitating our company -- exiting bankruptcy with a competitive capital structure." James M. Sullivan, chief financial officer of Solutia, noted, "Despite the recent turbulence in the debt capital markets, I am confident that Solutia will be able to secure the necessary exit financing package to consummate the revised plan. We have improved our earnings, reduced our risk profile, gained the infusion of new money investment through the rights offering, and will propose a capital structure with moderate leverage. We are moving forward in earnest with the exit financing process and plan to put financing in place consistent with our emergence timeframe." Major Terms Underlying Settlement and Reorganization Plan (1) US$250 Million of New Investment The revised plan will provide for US$250 million of new investment in reorganized Solutia. This investment will be in the form of a rights offering to the noteholders and general unsecured creditors, who will be given the opportunity to purchase shares of the new common stock on a pro rata basis at a 33.3% discount to the implied equity value. The rights offering will be backstopped by a group of Solutia's creditors (i.e. they will purchase any shares not bought by other creditors). For this commitment they will receive a fee of 2.50% and an allocation of 15% of the rights offering. The US$250 million generated as a result of the rights offering will be used as follows: US$175 million will be set aside in a Voluntary Employees' Beneficiary Association Retiree Trust to fund the retiree welfare benefits for those pre-spin retirees whom receive these benefits from Solutia; and US$75 million will be used by Solutia to pay for other legacy liabilities being retained by the company. (2) Relief from Tort Litigation and Environmental Remediation Liabilities Consistent with Solutia and Monsanto's prior agreement, the settlement provides that Monsanto will take on financial responsibilities in the areas of tort litigation and environmental remediation. -- Monsanto will be financially responsible for all current and future tort litigation costs arising from Pharmacia's chemical business prior to the Solutia spinoff. This includes litigation arising from exposure to PCBs and other chemicals. -- Monsanto will accept financial responsibility for environmental remediation and clean-up obligations at all sites for which Solutia was required to assume responsibility at the spinoff but which were never owned or operated by Solutia. Solutia will remain responsible for the environmental liabilities at sites that it presently owns or operates. -- Solutia and Monsanto will share financial responsibility with respect to two sites. Under this cost-sharing arrangement the first US$50 million of post-emergence remediation and cleanup costs will be funded by the proceeds of the rights offering described above. Upon emergence, Solutia would be responsible for the funding of these sites up to an agreed amount. Thereafter, if needed, Monsanto and Solutia would share responsibility equally. (3) Current Equity Holders New Common Stock Purchase Option Under the revised plan, in addition to other considerations, current equity holders that own at least a specified number of shares of Solutia common stock will receive rights to purchase, at the time of the company's emergence from bankruptcy, a pro rata share of up to 17% of the new common stock for US$175 million which is at a discount from the implied equity value under the revised plan. The proceeds from the sale of this equity will fund a cash payment to Monsanto of up to US$175 million. Any portion of the 17% of the new common stock that is not purchased by current equity holders will be distributed to Monsanto under the revised plan. (4) Settlement of Litigation and Claims Objection Each of the settling parties has agreed to stay all pending litigation relating to Solutia's chapter 11 cases until the effective date of the plan, at which time this litigation will be dismissed. This includes objections to the disclosure statement and plan of reorganization filed by the noteholders and the equity security holders, the adversary proceeding filed by the equity security holders against Monsanto and Pharmacia, objections to the claims filed in the case by Monsanto and Pharmacia, and the noteholders' appeal of the decision in the litigation related to the secured or unsecured nature of their claims. (5) Composition of Board of Directors Under the revised plan, reorganized Solutia's Board of Directors will be comprised of nine members, including: Jeffry N. Quinn, Solutia's chairman, president and chief executive officer; J. Patrick Mulcahy, a current director of Solutia; one director designated by each of Monsanto, the general unsecured creditors and the noteholders; and four directors designated by a five- person search committee consisting of Mr. Quinn, two representatives from the noteholders and one representative each from the general unsecured creditors and the ad hoc trade creditors. Solutia has engaged the services of Spencer Stuart, a global search firm, to begin the process of helping identify and recommend highly qualified board candidates. (6) Anticipated Creditor Recoveries and Equity Ownership Assuming full subscription to the rights offering by the participating parties (including the backstop parties), a full exercise of the new common stock purchase option, and an estimated general unsecured claims pool of US$342 million, the following creditors and equity security holders will receive the following distributions: -- General Unsecured Creditors will receive their pro rata share of 31.4% of the new common stock, resulting in a recovery of 80.6 cents on the dollar. -- Noteholders will receive their pro rata share of 43.8% of the new common stock, resulting in a recovery of 88.4 cents on the dollar. -- Monsanto will receive up to US$175 million in cash. Any shares of new common stock not purchased by current equity holders pursuant to the new common stock purchase option will be distributed to Monsanto and the cash distribution reduced accordingly. -- Equity Security Holders will receive their pro rate share of 1% of the new common stock and pursuant to the new common stock purchase option, holders that own at least a specified number of shares of Solutia common stock will receive rights to purchase a pro rata share of up to 17% of the new common stock. Assuming the new common stock purchase option is fully exercised, current equity security holders will own up to 18% of the new common stock. Additionally, current equity security holders will have the following rights: i) holders who own at least a specified number of shares of Solutia common stock will receive their pro rata share of five-year warrants to purchase 7.5% of the common stock; and ii) holders who own at least a specified number of shares of Solutia common stock will receive the right to participate in a buy out for cash of general unsecured claims of less than US$100,000 for an amount equal to 52.35% of the allowed amount of such claims, subject to election of each general unsecured creditor to sell their claim. -- Retirees will receive the benefits provided for under the terms of the settlement between Solutia and its retirees, which was previously announced and is not being altered by the settlement currently announced. In accordance with that settlement, the retirees, as a class, will receive 2% of the new common stock. This stock will be deposited into a VEBA trust that will be used to pay retiree welfare benefits. This is in addition to the US$175 million from the rights offering that will also be deposited into the VEBA trust. -- Backstop Parties (the backstoppers of the rights offering) will own 4.7% of the new common stock. General Plan Assumptions Solutia will be an independent, publicly traded company listed on a national exchange. The enterprise value of reorganized Solutia is currently estimated to be approximately US$2.85 billion, with corresponding implied reorganization equity value of approximately US$1.2 billion. In total, 59.75 million common shares will be issued and allocated upon emergence, exclusive of an anticipated management incentive plan to be approved as part of the revised plan of reorganization. "This settlement is the result of difficult negotiations that lead to compromise. A tremendous amount of hard work by all of the various constituents has gone into this reorganization process and I want to thank everyone who has been involved," stated Mr. Quinn. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. Saflex is a registered trademark of Solutia Inc. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Disclosure Statement hearing began on July 10, 2007, and is set to continue on Oct. 10, 2007. * COLOMBIA: Telecom Firms File Lawsuit Against Trade Regulator -------------------------------------------------------------- Published reports say that 10 fixed line operators have sued Colombian trade and industry regulator Superintendencia de Industria y Comercio for failing to intervene in 1998 when complaints were made that fixed to mobile rates were being unfairly charged. Municipally owned firms EPM UNE and ETB and small private companies demand that the regulator be held responsible for losses they suffered due to unreasonable interconnection rates mobile companies were charging their fixed line counterparts, the press says, citing a document filed with the Cundinamarca department's state tribunal. According to the reports, the fixed line telecom companies claimed that they have informed the telecoms regulator Comision de Regulacion de Telecomunicaciones of the situation since November 1998. Comision de Regulacion then asked Superintendencia de Industria to conduct a probe on the claims, reporters state. However, the trade and industry regulator failed to do so. As reported in the Troubled Company Reporter-Latin America on June 15, 2007, Standard & Poor's Ratings Services assigned its 'BB+' long-term senior unsecured rating to the Republic of Colombia's proposed 2027 Global Titulos de Tesoreria bond, a bond denominated in Colombian pesos but payable in US dollars =================== C O S T A R I C A =================== ALCATEL-LUCENT: Partners w/ Telecom to Supply Routing Solution -------------------------------------------------------------- Alcatel-Lucent signed MOU with Telecom Corporation of New Zealand to supply IP/MPLS switching and routing products to support Telecom's delivery of next-generation residential services. The Alcatel-Lucent 7750 Service Router was selected as it offers flexible delivery of multi-service residential services, and integrates seamlessly with Telecom's existing operational support systems via Alcatel-Lucent's Connected Partner Program. This program facilitates interworking between Alcatel-Lucent and third-party software vendors, which simplifies the integration process and eliminates the need for local customization. The 7750 SR complements Telecom New Zealand's deployment of 7450 Ethernet Service Switch over the last 18 months. "With Alcatel-Lucent's converged, all-IP, multi-service residential infrastructure, Telecom New Zealand can continue to enhance broadband experiences for its customers," said Greg Patchell, Group Technology Officer, Telecom New Zealand. Telecom's migration to an open standards DHCP/IP based network is aimed at increasing the functionality, resilience and capacity for its Next Generation Telecom initiative, delivering advanced residential services to wholesale and retail customers throughout New Zealand. The solution will also give Telecom operational flexibility; providing Telecom with several network structure options, to adapt easily to the changing market dynamics of the New Zealand telecommunications environment. Network management will be handled by the Alcatel-Lucent 5620 Service Aware Manager, which automates tasks while supporting the introduction and administration of new services. "Alcatel-Lucent is the leader in triple play solutions and this win reinforces the strength of our end-to-end offering. Our solution gives Telecom New Zealand the service flexibility, continuity and richness that are critical to delivering customer satisfaction," said Frederic Rose, President of Alcatel-Lucent's activities in Asia Pacific. Over 180 service providers in more than 70 countries around the world have selected the Alcatel-Lucent IP portfolio as key elements of their IP transformation, including massive, multi- year projects at AT&T, BT, Cable & Wireless, Telef�nica and Telstra. According to Ovum-RHK, Alcatel-Lucent was #2 in the IP/MPLS Edge market segment in Q2 2007, with 21% market share. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their merger transaction, and began operations as a communication solutions provider under the name Alcatel-Lucent on Dec. 1, 2006. * * * As reported on Sep. 19, 2007, that Standard & Poor's Ratings Services revised its outlook on international equipment supplier Alcatel-Lucent and related entity Lucent Technologies Inc. to stable from positive. At the same time, the 'BB-' long-term corporate credit ratings on the group were affirmed. The 'B' short-term corporate credit rating on Alcatel-Lucent and 'B-1' short-term rating on Lucent Technologies were also affirmed. As reported on April 13, 2007, Fitch Ratings affirmed Alcatel- Lucent's ratings at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn them. As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. =================================== D O M I N I C A N R E P U B L I C =================================== GENERAL CABLE: Moody's Puts B1 Rating on US$400MM Proposed Notes ---------------------------------------------------------------- Moody's Investors Service has assigned a rating of B1 to the proposed US$400 million senior unsecured convertible notes of General Cable Corporation. Concurrently, Moody's confirmed all other ratings for this issuer, concluding a review initiated on Sept. 12, 2007. Following this rating action, the rating outlook is stable. The proceeds of the new US$400 million senior unsecured convertible notes together with a draw under the company's asset-based revolver and cash on hand will be utilized to acquire the capital stock of Phelps Dodge International Corporation, a division of Phelps Dodge Corporation, from Freeport-McMoRan Copper & Gold Inc. Moody's took these rating actions: Assigned these ratings: -- US$400 million senior unsecured convertible notes due 2012, at B1 (LGD4, 64%) Confirmed ratings: -- US$355 million senior unsecured convertible notes due 2013, at B1 (to LGD4, 64% from LGD4, 63%) -- US$125 million senior unsecured floating rate notes due 2015, B1 (to LGD4, 64% from LGD4, 63%) -- US$200 million senior unsecured notes due 2017, B1 (to LGD4, 64% from LGD4, 63%) -- Corporate Family Rating, at Ba3 -- Probability of Default Rating, at Ba3 -- The outlook is stable. The assignment of a B1 rating to the proposed senior unsecured convertible notes and the confirmation of the Corporate Family Rating at Ba3 continues to reflect the company's moderate leverage; good interest coverage; low cost operations; leading market position in the wire & cable industry and highly diversified end markets and customer base after giving effect to the acquisition of PDIC. For the year ended Dec. 31, 2006, PDIC reported revenues of approximately US$1.2 billion and operating earnings of roughly US$68 million. The combined entity is considered to be strongly positioned in the Ba3 rating category. The stable outlook reflects Moody's expectation that the company will continue to grow volume, particularly in the electric utility and electrical infrastructure segments as a result of strong demand for its products. Moody's also anticipates that the company will reduce leverage to pre-acquisition levels well before the end of 2009. The ratings could come under upward rating pressure if total debt to EBITDA fall below 2.5 times on a sustained basis or if demand for the company's products lead to a sustained level of free cash flow to total debt in excess of 10%. Downgrade pressure could occur if the company incurs major integration problems with respect to the PDIC acquisition. The ratings could also be impaired if total debt to EBITDA increases above 3.7 times or if EBIT to interest expense declines below 2.3 times on a sustained basis. Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. General Cable has locations in China, Australia, France, Brazil, the Dominican Republic and Spain. GENERAL CABLE: S&P Puts B+ Rating on US$400-Mln Senior Notes ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B+' senior unsecured debt rating to Highland Heights, Ky.-based General Cable Corp.'s proposed US$400 million offering of senior convertible notes due 2012. The rating agency also affirmed the 'BB-' corporate credit rating. The outlook is stable. The funds will be used to partially fund the acquisition of the global wire and cable business of Freeport-McMoRan Copper & Gold Inc. (which operates as Phelps Dodge International Corp.) for US$735 million, subject to certain adjustments. "The ratings on General Cable reflect a cyclical operating profile, driven by fluctuating market demand and volatility in raw material pricing that can affect working capital requirements and cash flow," said Standard & Poor's credit analyst Bruce Hyman. "These factors are offset somewhat by the company's leading position in a global market for wire and cables -- especially in the energy transmission and distribution market -- and leverage that is moderate for the rating." The proposed acquisition will contribute approximately US$1.4 billion in revenues at current metal prices and is expected to be accretive to earnings in the first full year. Standard & Poor's estimates that the acquired business generated approximately US$90 million in EBITDA in 2006, or about 6.4% of sales. Pro forma for the increased debt levels used to fund the acquisition, debt to EBITDA rises somewhat, but is still moderate for the rating, at less than 3.5. Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power transmission products); and communications (wire for low-voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. General Cable has locations in China, Australia, France, Brazil, the Dominican Republic and Spain. ============= E C U A D O R ============= * ECUADOR: Suspending Ascendant Copper's Junin Mining Activity -------------------------------------------------------------- Ecuadorian Oil and Mines Minister Galo Chiriboga has ordered Ascendant Copper to cease mining activity at its Junin project, Reuters reports. According to Reuters, Ascendant Copper is exploring for copper at the Junin project, which includes three concessions in northern Ecuador. Reuters relates that the suspension could lead to the termination of Ascendant Copper's concessions. Ascendant Copper breached mining regulations, Reuters says, citing Minister Chiriboga. According to him, the government is reviewing other mine projects for similar irregularities. Minister Chiriboga commented to the press, "We will see how the facts evolve, but eventually this could lead to a revocation." Authorities asked the firm in 2006 to suspend mining activity in the area to prevent conflict with anti-mining activists who argue the project is an environmental hazard, Reuters relates. However, the suspension could be lifted once Ascendant Copper renegotiates its project plans with local communities and authorities, Reuters notes, citing Minister Chiriboga. Minister Chiriboga told Reuters, "For those concessions that have violated legal and constitutional regulations... we will apply the law and that will be our mining industry policy." A group of academics reviewing concessions will issue a report next week on their findings, Reuters states, citing Minister Chiriboga. * * * 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: State Firm Awarding El Chaparral Project Contract ---------------------------------------------------------------- A spokesperson of El Salvador's state-owned power firm CEL told Business News Americas that the company would award in November a contract for the construction of the 65.7-megawatt El Chaparral hydro project. According to BNamericas, the contract includes the construction of power plant and dam in the lower zone of the Torola river basin spanning these municipalities: -- San Luis de La Reina, -- Carolina, and -- San Antonio del Mosco in San Miguel department. BNamericas relates that the Constructor Chaparral consortium and Italian company Astaldi presented proposals for the US$140- million project in May 2007. The official told BNamericas that CEL is still analyzing offers. Contract signing will be in November. BNamericas notes that the Central American Bank for Economic Integration will help fund the Chaparral project. The project will help lessen CO2 emissions by 116,000 tons per year by substituting thermo turbines, BNamericas states, citing CEL. * * * 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 U A T E M A L A ================= ALCATEL-LUCENT SA: Acquires U.K.-Based Tamblin Limited ------------------------------------------------------ Alcatel-Lucent S.A. has acquired U.K.-based Tamblin Limited, a privately held software company that provides applications and tool kits that will enhance Alcatel-Lucent's solution for enabling IPTV users to easily find, connect and interact with brands and entertainment they care about. As the traction of IPTV services continues to take hold in all regions, service providers are looking for ways to differentiate their service packages, add revenue generating applications, increase the stickiness of the services and get more value out of their IP based network infrastructure. Service providers can use Alcatel-Lucent's interactive TV applications, now enhanced by the Tamblin software with their existing IPTV middleware to offer their subscribers a unique TV experience that lets them interact with their favorite brands and entertainment services. The Tamblin solutions have been recognized for the ease with which brands and broadcasters can develop interactive TV advertising campaigns and track usage. Broadcasters can create one campaign that runs across multiple operators. "Interactivity is doubly attractive to brands and advertisers because it is based on an action of some kind that can provide a metric on which to measure advertising", as Eden Zoller and Vincent Poulbere, Principal Analysts at Ovum, wrote in their recent report "Interactive Mobile Services." Tamblin's 13 person staff will join Alcatel-Lucent's convergence business activities within its multimedia and payment team. "The experienced and talented team at Tamblin have developed a powerful set of applications and tools that are being used by clients such as the BBC, BskyB, ITV, Channel Five and Central Office of Information. We look forward to leveraging their expertise and integrating them into a wider team dedicated to identifying ways to help IPTV service providers deliver a unique, interactive TV experience for their subscribers," said Marc Rouanne, President of Alcatel-Lucent's convergence business activities. "We are delighted to join Alcatel-Lucent," said Stuart Waite, CEO of Tamblin. "We have the opportunity to bring our media and broadcast clients together with the outstanding Alcatel-Lucent IPTV operator customers to deliver leading interactive TV services to the market." About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported on April 13, 2007, Fitch Ratings affirmed Alcatel- Lucent's ratings at Issuer Default 'BB' with a Stable Outlook, senior unsecured 'BB' and Short-term 'F2' and simultaneously withdrawn them. As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. ALITALIA SPA: Chief to Name Possible Buyers This Month ------------------------------------------------------ Alitalia S.p.A. Chairman Maurizio Prato will name possible bidders for the Italian government's 49.9& stake in the national carrier by the end of September, Alessandro Torello writes for Bloomberg News, citing Lombardy region chief Roberto Formigoni. Mr. Formigoni said that by the end of the month, Mr. Prato "will have defined with certainty the relations with potential buyers." As reported in the TCR-Europe on Sept. 13, 2007, Mr. Prato plans to complete the sale of Italy's stake in the troubled carrier by December 2007. Mr. Prato told Il Sole 24 Ore that advisor Citigroup has initiated contacts with parties that had participated in the failed auction for Italy's stake in Alitalia and with Asian firms. The chairman expects the first rounds of meeting to be complete by end of September or early October, Il Sole relates. Mr. Prato said he will conduct a first selection among potential buyers by the end of October before starting an evaluation phase. Meanwhile, Italian deputy prime minister Francesco Rutelli called on local investors to form a consortium to prevent foreign firms from acquiring Alitalia, La Stampa reports. Mr. Rutelli expressed support to a possible bid by Italian airline AirOne S.p.A., saying it was the most sensible solution for the flag carrier, La Stampa relates. Pierluigi Bersani, Italy's economic development minister, also expressed support to an Italian acquisition, but noted that the final decision lies on Alitalia's owners and prime minister Romano Prodi, who is reportedly backing Air France-KLM, La Stampa adds. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, and EUR168 million in 2005. =========== M E X I C O =========== ATARI INCORPORATED: Deloitte & Touche Raises Going Concern Doubt ---------------------------------------------------------------- New York-based Deloitte & Touche LLP expressed substantial doubt about Atari Incorporated's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2007. The auditing firm pointed to the company's significant operating losses. The company posted a US$69,711,000 net loss on US$122,285,000 of total revenues for the year ended March 31, 2007, as compared with a US$68,986,000 net loss on US$206,796,000 of total revenue in the prior year. The company also posted an operating loss of US$77,644,000 in fiscal 2007 as compared to a US$62,977,000 in the prior year. At March 31, 2007, the company's balance sheet showed US$42,819,000 in total assets and US$39,725,000 in total liabilities, resulting in a US$3,094,000 stockholders' equity. During fiscal 2006 and 2007, the company sold a number of intellectual properties and development facilities in order to obtain cash to fund its operations. During 2007, the company raised approximately US$35,000,000 through the sale of the rights to its Driver games and certain other intellectual property, and the sale of its Reflections and Shiny studios. By the end of fiscal 2007, the company did not own any development studios. The company said that its ability to deliver products on time depends in good part on developers' ability to meet completion schedules. Further, its expected releases in fiscal 2008 are even fewer than its releases in fiscal 2007. In addition, most of the company's releases for fiscal 2008 are focused on the holiday season. As a result its cash needs have become more seasonal and it faces significant cash requirements to fund the working capital needs during the second quarter of its fiscal year. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?239c About Atari Headquartered in New York, Atari Incorporated, (NASDAQ: ATAR) - http://www.atari.com/-- together with its subsidiaries, publishes, develops, and distributes video game software in North America. It offers games for various platforms. Its portfolio of games includes action, adventure, strategy, role- playing, and racing. Atari distributes its video game software in the United States, Canada, and Mexico through mass merchants, retail outlets, online outlets, specialty retailers, and distributors. The company founded in 1992, was formerly known as Infogrames Inc. and GT Interactive Software Corp. It changed its name to Atari Incorporated in 2003 and is a subsidiary of France-based Infogrames Entertainment SA. BRAVO! BRANDS: Voluntary Chapter 7 Case Summary ----------------------------------------------- Debtor: Bravo! Brands, Inc. fka China Peregrine Food Corporation fka China Premium Food Corporation fka Bravo! Foods International Corporation 11300 U.S. Highway 1 Suite 400 North Palm Beach, FL 33408 Bankruptcy Case No.: 07-17840 Type of business: Formerly known as Bravo Foods International Corp., develops, brands, markets, distributes and sells flavored milk products throughout the 50 United States, Mexico and Puerto Rico. See http://www.bravobrands.com Chapter 7 Petition Date: September 21, 2007 Court: Southern District of Florida (West Palm Beach) Judge: Paul G. Hyman, Jr. Debtor's Counsel: Eric A. Rosen, Esq. 2925 P.G.A. Boulevard Suite 103 Palm Beach Gardens, FL 33410 Quarterly Financial Condition as of March 2007: Total Assets: $7,600,000 Total Debts: $50,320,000 The Debtor did not file a list of its largest unsecured creditors. CHRYSLER LLC: UAW-GM Deal Prompts S&P To Watch Credit Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services said today that it placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. "The CreditWatch action reflects today's announcement that General Motors Corp. (GM) and its main union, the United Auto Workers (UAW), have reached a tentative new labor contract that includes an agreement designed to address the massive postretirement employment benefit obligations (OPEB) associated with GM's UAW population," said Standard & Poor's credit analyst Robert Schulz. For now, there are few details about the specifics of the health care agreement or other important aspects of the contract such as wages, job security, and work rules. Today's tentative agreement ends the nationwide strike at GM that began earlier this week. The chances of a prolonged and widespread strike at GM, Chrysler, or Ford Motor Co. are now largely averted, although we had always considered such a scenario unlikely because it would be catastrophic to everyone involved. GM's UAW members still need to approve the agreement, and ratification votes should occur this weekend. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. EMPRESAS ICA: Discloses Share Placement of US$465 Million --------------------------------------------------------- Empresas ICA, S.A. de C.V. announced that the offering price for its shares and Ordinary Participation Certificates was fixed at MXN65.00 per share or CPO. The offering price for the American Depositary Shares (ADSs) is US$23.76 per ADS. Each CPO represents one share; each ADS represents 4 CPOs. Trading of the newly issued ADSs and shares began Sept. 26, 2006, on the New York Stock Exchange and the Mexican Stock Exchange (Bolsa Mexicana de Valores). Closing is expected to take place on Sept. 28, 2007. The registered public offering consisted of 78,260,872 shares, constituting an offer size of approximately US$465 million, excluding the over-allotment option. All the shares have been sold. The international offering, in the United States and outside Mexico, consisted of 46,956,522 shares in the form of CPOs and ADSs. The Mexican offering consisted of 31,304,350 ordinary shares. The underwriters have a thirty-day option to purchase an additional 11,739,128 shares (equivalent to US$70 million) to cover over-allotments. Of this total, 7,043,478 shares were allocated to the international underwriters, and 4,695,650 shares were allocated to the Mexican underwriters. The shares being sold, including those subject to the over-allotment option, total 90 million shares, and represent approximately 18.1% of ICA's total equity, after giving effect to the offering. Citigroup Global Markets, Inc. is the global coordinator and bookrunner for the U.S. and international offering. Acciones y Valores Banamex, S.A. de C.V., Casa de Bolsa, Integrante del Grupo Financiero Banamex (ACCIVAL) and Casa de Bolsa Santander, S.A. de C.V., Integrante de Grupo Financiero Santander, are the joint bookrunners for the Mexican offering. The prospectus for this offering may be obtained by contacting: Citigroup Global Markets, Inc. Brooklyn Army Terminal Attn: Prospectus Delivery Department 140 58 th Street, Brooklyn, NY 11220 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. S&P said the outlook is stable. FOAMEX INT'L: Selling Carpet Cushion Facilities for US$10 Mil. -------------------------------------------------------------- Foamex International Inc. has sold its stand-alone carpet cushion facilities to Future Foam, Inc. for net proceeds of approximately US$10 million. The carpet cushion facilities are located in Fairless Hills, Penn., Dallas, Tex. and Orlando, Fla. Foamex intends to use the proceeds to either reinvest in its business or to pay down debt. Foamex will continue to offer prime polyurethane and rebond carpet cushion and flooring underlay products through its remaining carpet cushion facilities, which are integral components at a number of its foam production facilities in the Midwest and Western United States. Commenting on the transaction, Jack Johnson, President and Chief Executive Officer of Foamex, said: "Today's announcement reflects our continuing effort to strengthen Foamex. The stand- alone carpet cushion facilities are non-core components of our overall portfolio and the sale of these facilities provides better value to our stockholders. We remain committed to the carpet cushion business and will continue to manufacture products for the carpet cushion and flooring underlay market. The remaining capacity can consume all the scrap foam we produce in our other foam operations." About Foamex International Headquartered in Linwood, Pennsylvania, Foamex International Inc. (FMXIQ.PK) -- http://www.foamex.com/-- produces cushioning for bedding, furniture, carpet cushion and automotive markets. The company also manufactures polymers for the industrial, aerospace, defense, electronics and computer industries. Foamex has Asian locations in Malaysia, Thailand and China. The company's Latin American subsidiary is in Mexico. The company and eight affiliates filed for chapter 11 protection on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-12693). Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison LLP, represent the Debtors in their restructuring efforts. Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are advising the ad hoc committee of Senior Secured Noteholders. Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at Lowenstein Sandler PC and Donald J. Detweiler, Esq., at Saul Ewings, LP, represent the Official Committee of Unsecured Creditors. As of July 3, 2005, the Debtors reported US$620,826,000 in total assets and US$744,757,000 in total debts. On Feb. 2, 2007, the Court confirmed the Debtors' Second Amended Joint Plan of Reorganization. The Plan of Reorganization of Foamex International Inc. has become effective and the company has successfully emerged from chapter 11 bankruptcy protection on Feb. 12, 2007. As of July 1, 2007, the company reported total assets of US$566.2 million, total liabilities of US$823.5 million, and total stockholders' deficit of US$257.3 million. GRUPO MEXICO: Will Shut Down Taxco Mine Due to Labor Problems ------------------------------------------------------------- Grupo Mexico SA, de C.V., told Reuters that it will permanently close down its Taxco silver and lead operation due to labor problems and declining reserves. Grupo Mexico SA said in a statement, "The drying up of reserves was accentuated by the union, which since early 2006 has been impeding the entry of contract personnel to prepare new mineral veins." The Taxco mine yielded 14,346 tons of zinc, 995,000 ounces of silver and 2,119 ton of lead in 2006, Reuters says, citing Grupo Mexico. It represents less than 1% of the company's sales. According to Reuters, miners at Grupo Mexico's Cananea copper pit and smaller mines have been on protesting since July 2007. The firm has had troubled relations with the mining union for years. Grupo Mexico is waiting for court rulings on the legality of the strikes, Reuters states. Grupo Mexico SA de C.V. -- http://www.grupomexico.com/-- through its ownership of Asarco and the Southern Peru Copper Company, Grupo Mexico is the world's third largest copper producer, fourth largest silver producer and fifth largest producer of zinc and molybdenum. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 29, 2006, Fitch upgraded the local and foreign currency Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to 'BB+' from 'BB'. Fitch said the rating outlook is stable. INTERNATIONAL RECTIFIER: Okays License Pact for DirectFET(R) ----------------------------------------------------------- International Rectifier, IR(R) diclosed that Infineon Technologies will license from International Rectifier its patented advanced power management packaging technology, DirectFET(R). Designed for use in AC-DC and DC-DC power conversion applications in computers, notebooks, telecommunications and consumer electronics devices, the DirectFET power package is an industry-first surface-mount power MOSFET packaging technology for efficient topside cooling in an SO-8 footprint or smaller. Compared to standard plastic discrete packages, DirectFET's metal can construction enables dual-sided cooling to effectively double the current handling capacity of high frequency DC-DC buck converters. Infineon will deploy the DirectFET power package technology with its OptiMOS(R) 2 and OptiMOS 3 chip technology and expects to sample the OptiMOS 2 in DirectFET packages starting early 2008. Vice President of IR's Enterprise Power business unit, Tim Phillips, said, "By deploying a unique dual-sided cooling design, IR's DirectFET package technology is the preferred solution to reduce energy losses while shrinking the design footprint in advanced computing, consumer and communications applications." "We are continually developing leading-edge technology to save energy and, through licensing agreements, we can broaden the energy-saving impact made possible with such innovations as DirectFET, as well as further expanding our presence in the largest segment of the power management market," he added. "With this agreement, Infineon continues to expand its power semiconductor portfolio. Combining our successful OptiMOS chip technology with various package options suited for a wide range of applications, we enable power supply designers achieve energy and cost-efficient solutions for a given application," said Arunjai Mittal, Senior Vice President and General Manager of the Power Management and Drives business unit at Infineon Technologies. "Providing OptiMOS 2 and OptiMOS 3 devices with their excellent characteristics in a package with double-sided cooling capability will further strengthen Infineon's position in the power conversion market." 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. KANSAS CITY SOUTHERN: Improved Liquidity Cues S&P to Lift Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Kansas City Southern and its related entities, including raising the corporate credit rating to 'B+' from 'B'. The outlook is developing. The rating actions reflect the company's improved financial profile. The Kansas City, Mo.-based freight railroad has about US$2.4 billion in lease-adjusted debt. "The upgrade reflects Kansas City Southern's improved liquidity position and operating performance," said Standard & Poor's credit analyst Lisa Jenkins. Ratings reflect Kansas City Southern's highly leveraged capital structure and challenges associated with its integration of Kansas City Southern de Mexico S. de R.L. de C.V., the Mexican railroad it acquired in April 2005. Offsetting these risks to some extent are the favorable characteristics of the U.S. freight railroad industry and the company's strategically located rail network. Positive industry conditions have enabled Kansas City Southern to strengthen its financial profile and liquidity position over the past year. While the slowing U.S. economy could temper volume gains over the near to intermediate term, the company should still benefit from solid pricing fundamentals and efficiency improvements and, as a result, S&P expects further improvement in operating performance over time. Kansas City Southern is a Class 1 U.S. freight railroad. It is significantly smaller and less diversified than its peers, but operates a very strategically located rail network in the south- central U.S. and in Mexico. The acquisition of KCSM in 2005 bolstered the company's strategic importance. With its north- south orientation, Kansas City Southern is very well positioned to take advantage of NAFTA trade opportunities. Kansas City Southern had previously maintained a 49% voting interest in KCSM. Now that it owns 100% of the company, Kansas City Southern is more fully integrating KCSR's operations with those of KCSM and should achieve increased marketing and cost synergies over time. Although Kansas City Southern now influences the management of day-to-day operations at KCSM, the two companies have retained separate legal identities and are continuing to finance their operations separately. Kansas City Southern's funds from operations to debt (adjusted for operating leases) is now in the upper-teen percentage area (versus 8% in 2005) and adjusted debt to capital is in the mid- 50% area (compared with the low-60% area in 2005). Although debt levels are likely to remain relatively unchanged as a result of ongoing investments in infrastructure and equipment, S&P expect further improvement in operating metrics over the near-to-intermediate term as the company benefits from some new revenue opportunities, a continuing favorable pricing environment, and efficiency gains. If Kansas City Southern continues to bolster its liquidity position and sustains its improved operating performance and financial profile, S&P could raise ratings over the coming year. If liquidity deteriorates, either as a result of operating pressures, investment requirements, or early termination of the credit facility, S&P will likely lower ratings. Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the US, Mexico and Panama. Its primary U.S. holding includes KCSR, serving the central and south central US. Its international holdings include Kansas City Southern de Mexico, serving northeastern and central Mexico and the port cities of Lazaro Cardenas, Tampico and Veracruz, and a 50% interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico. MERIDIAN AUTO: Wants Final Decree Entered Closing Ch. 11 Cases -------------------------------------------------------------- Meridian Automotive Systems-Composites Operations, Inc., and its eight debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to enter a final decree closing their Chapter 11 cases pursuant to Section 350 of the Bankruptcy Code and Rule 3022 of the Federal Rules of Bankruptcy Procedures: Case No. Debtor Entity -------- ------------- 05-11168 Meridian Automotive Systems-Composites Operations, Inc. 05-11169 Meridian Automotive Systems, Inc. 05-11170 Meridian Automotive Systems-Angola Operations, Inc. 05-11171 Meridian Automotive Systems-Construction, Inc. 05-11172 Meridian Automotive Systems-Detroit Operations, Inc. 05-11173 Meridian Automotive Systems-Grand Rapids Operation Inc. 05-11174 Meridian Automotive Systems-Heavy Truck Operations Inc. 05-11175 Meridian Automotive Systems-Shreveport Operations, Inc. 05-11176 Meridian Automotive Systems-Mexico Operations, LLC On Dec. 6, 2006, the Court confirmed the Debtors' Fourth Amended Joint Plan of Reorganization, and the Plan became effective as of Dec. 29, 2006. There are no deposit requirements in the Plan, Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, tells the Court. The property required to be transferred under the Plan has been substantially transferred and the Reorganized Debtors have assumed the management of the property dealt with by the Plan. Distributions to be made pursuant to the Plan will be made by The Meridian Automotive Systems, Inc., Litigation Trust, through Ocean Ridge Capital Advisors, LLC, as litigation trustee, Mr. Morton adds. In addition, the Reorganized Debtors have no remaining motions, contested matters or adversary proceedings before the Court except for the avoidance actions asserted by the Litigation Trustee, an appeal by Plastech Engineered Products, Inc., and a request by the Reorganized Debtors to deem reclamation claims to be general unsecured claims. Mr. Morton asserts that the Reclamation Claims Motion will be heard and determined by the time the Court hears the request to close the Chapter 11 cases. The Avoidance Actions and the Plastech Appeal, on the other hand, will no longer require the Court's intervention, Mr. Morton adds, thus, they should not impede in the closing of the Cases. Mr. Morton further asserts that Court can and should enter a final decree closing the Cases but retain jurisdiction for the limited purpose of adjudicating the Adversary Proceedings and, to the extent necessary, resolving any issues that may arise with respect to the Plastech Appeal. Headquartered in Dearborn, Mich., Meridian Automotive Systems Inc. -- http://www.meridianautosystems.com/-- supplies technologically advanced front and rear end modules, lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers. Meridian operates 22 plants in the United States, Canada and Mexico, supplying Original Equipment Manufacturers and major Tier One parts suppliers. The Company and its debtor-affiliates filed for chapter 11 protection on April 26, 2005 (Bankr. D. Del. Case Nos. 05-11168 through 05-11176). James F. Conlan, Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor, LLP, represent the Debtors in their restructuring efforts. Eric E. Sagerman, Esq., at Winston & Strawn LLP represents the Official Committee of Unsecured Creditors. The Committee also hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an adversary proceeding against Meridian's First Lien Lenders and Second Lien Lenders to invalidate their liens. When the Debtors filed for protection from their creditors, they listed US$530 million in total assets and approximately US$815 million in total liabilities. The Hon. Mary Walrath has confirmed Meridian's Revised Fourth Amended Reorganization Plan on Dec. 6, 2006. The company emerged from chapter 11 protection on Dec. 29, 2006. (Meridian Bankruptcy News, Issue No. 56; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) MERIDIAN AUTOMOTIVE: Files Final Report on Fees Paid ---------------------------------------------------- Reorganized Meridian Automotive Systems Inc. and its debtor- affiliates filed with the U.S. Bankruptcy Court for the District of Delaware a final report, containing the break-down of the results in their Chapter 11 cases. Matthew K. Paroly, vice president and secretary of Meridian Automotive Systems-Composites Operations, Inc., at al., signed the report. Type of Payment Payment Amount --------------- -------------- Chapter 11 Trustee's Compensation N/A Debtors' Attorneys' Fees Young Conaway Stargatt & Taylor LLP US$1,318,851 Sidley Austin, LLP US$10,340,006 Debtors' Attorneys' Expenses Young Conaway Stargatt & Taylor LLP US$371,740 Sidley Austin, LLP US$350,658 Debtors' Other Professionals' Fees Lazard Freres & Co., LLC US$5,296,210 Gavin Anderson & Company US$165,910 Foley & Lardner, LLP US$226,551 BDO Seidman, LLP US$830,556 Mercer Human Resources Consulting US$237,287 Seyfarth Shaw, LLP US$219,227 PricewaterhouseCoopers, LLP US$102,780 FTI Consulting, Inc. US$6,777,388 Jeffrey J. Stegenga US$191,750 Debtors' Other Professionals' Expenses Lazard Freres & Co., LLC US$96,810 Gavin Anderson & Company US$19,536 Foley & Lardner, LLP US$12,172 Seyfarth Shaw, LLP US$15,917 PricewaterhouseCoopers, LLP US$1,952 FTI Consulting, Inc. US$575,056 Jeffrey J. Stegenga US$13,873 Chapter 11 Trustee's Expenses N/A Chapter 11 Trustee's Attorney's Expenses N/A Official Committee of Unsecured Creditors' Attorneys' Fees Ashby & Geddes, P.A. US$311,700 Ashby & Geddes, P.A. (Avoidance Action) US$337,016 Winston & Strawn, LLP US$1,863,755 Creditors Committee's Attorneys' Expenses Ashby & Geddes, P.A. US$39,594 Ashby & Geddes, P.A. (Avoidance Action) US$32,690 Winston & Strawn, LLP US$48,057 Creditors Committee's Other Professionals' Fees Huron Consulting Services, LLC US$1,386,175 Sanchez Devanny Eseverri, S.C. US$10,812 Peixoto E. Cury Advogados US$13,110 Bifferato Gentilotti & Balick US$7,597 Creditors Committee's Other Professionals' Expenses Huron Consulting Services, LLC US$20,791 Sanchez Devanny Eseverri, S.C. US$699 Peixoto E. Cury Advogados US$301 Creditors Committee US$1,825 Bifferato Gentilotti & Balick US$564 Informal Committee of First Lien Secured Lenders Attorneys' Fees Hennigan Bennett & Dorman, LLP US$417,951 Informal Committee of First Lien Secured Lenders Attorneys' Expenses Hennigan Bennett & Dorman, LLP US$23,375 U.S. Trustee's Fees US$573 Mr. Paroly says that no trustee or examiner was appointed in the Chapter 11 cases, hence no fees were incurred for a trustee or trustee's counsel. Mr. Paroly adds that within 30 days after the date of the hearing on the Reorganized Debtors' request for hearing on their request for final decree closing their Chapter 11 cases, they will have paid all required fees under 28 U.S.C. 1930. Headquartered in Dearborn, Mich., Meridian Automotive Systems Inc. -- http://www.meridianautosystems.com/-- supplies technologically advanced front and rear end modules, lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers. Meridian operates 22 plants in the United States, Canada and Mexico, supplying Original Equipment Manufacturers and major Tier One parts suppliers. The Company and its debtor-affiliates filed for chapter 11 protection on April 26, 2005 (Bankr. D. Del. Case Nos. 05-11168 through 05-11176). James F. Conlan, Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor, LLP, represent the Debtors in their restructuring efforts. Eric E. Sagerman, Esq., at Winston & Strawn LLP represents the Official Committee of Unsecured Creditors. The Committee also hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an adversary proceeding against Meridian's First Lien Lenders and Second Lien Lenders to invalidate their liens. When the Debtors filed for protection from their creditors, they listed US$530 million in total assets and approximately US$815 million in total liabilities. The Hon. Mary Walrath has confirmed Meridian's Revised Fourth Amended Reorganization Plan on Dec. 6, 2006. The company emerged from chapter 11 protection on Dec. 29, 2006. (Meridian Bankruptcy News, Issue No. 56; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) RYERSON INC: S&P Affirms B+ Corporate Credit Rating --------------------------------------------------- Standard & Poor's Ratings Services has affirmed its ratings on Chicago, Ill.-based metals processor and distributor Ryerson Inc., including its 'B+' corporate credit rating. S&P removed all ratings from CreditWatch, where they had been placed with negative implications on July 24, 2007, after the company announced that it had agreed to be acquired by Platinum Equity for around US$2 billion. S&P also assigned its 'B+' senior secured rating and '4' recovery rating to Ryerson's proposed US$575 million senior secured notes, comprised of US$150 million of floating-rate senior secured notes due 2014 and US$425 million senior secured notes due 2015. The recovery rating indicates expectations of average (30% to 50%) recovery in the event of a payment default. The outlook is negative. "The affirmation incorporates the prospects for debt repayment as a result of improved operating results and inventory management, due to a new information system, and further cash generation from tighter inventory management and asset sales," said Standard & Poor's credit analyst Marie Shmaruk. "Still, we remain cautious about the company's heavy debt burden and its ability to continue to generate and sustain further meaningful cash flow from working capital improvement." Pro forma for the transaction, Ryerson will have book debt of around US$1.4 billion. After adjustments for postretirement benefits and operating leases, total debt will approximate US$1.7 billion. Also pro forma for the transaction, the company will have more than US$300 million available under its US$1.35 billion revolving credit facility due 2012 and US$35 million in cash. "The ratings are predicated on the rapid and permanent reduction of debt during the next 12 months to attain credit metrics more in line with the rating, with debt to EBITDA in the 5.0x to 5.5x range," Ms. Shmaruk said. "A downgrade is possible if the company does not make reasonable progress in meeting these objectives or if end markets and operating performance deteriorate. We would change the outlook to stable if the company achieves improved credit metrics that we believe are sustainable for the longer term." About Ryerson Ryerson Inc. (NYSE: RYI) -- http://www.ryerson.com/-- is a distributor and processor of metals in North America, with 2006 revenues of US$5.9 billion. The company services customers through a network of service centers across the United States and in Canada, Mexico, India, and China. On Jan. 1, 2006, the company changed its name from Ryerson Tull Inc. to Ryerson Inc. WENDY'S INTERNATIONAL: Fidelity Joins Three Others in Bidding ------------------------------------------------------------- Fidelity National Financial, Thomas H. Lee Partners LP, Oaktree Capital Management LP, and Ares Management joined to make a bid for Wendy's International Inc., The Wall Street Journal reports, citing a person familiar with the matter. It is not clear how much the Fidelity group has bid, WSJ relates. After Triarc Cos., more than a dozen parties have signed confidentiality agreements and expressed interest in participating in the sale process for Wendy's, another WSJ source said. As reported in the Troubled Company Reporter on Aug. 1, 2007, Triarc chairman Nelson Peltz sent a letter asking the Wendy'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 $37.00 to $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. Franchisees Want Say in Sale Proceedings Wendy's franchisees have asked that they be included in talks regarding the sale of the company, Bloomberg reported. Bloomberg said 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 added, 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 said. About Wendy's International 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 E R U ======= FREEPORT-MCMORAN: Strong Earnings Cue Moody's to Revise Outlook --------------------------------------------------------------- Moody's Investors Service has revised Freeport-McMoRan Copper & Gold Inc.'s and Phelps Dodge's outlooks to positive and affirmed all of Freeport's and Phelps Dodge's other ratings. The ratings reflect the overall probability of default of Freeport, to which Moody's assigns a PDR of Ba2. The change in outlook reflects the very strong earnings and cash flow of Freeport in the current metals market, Freeport's use of free cash flow to reduce debt since the acquisition of Phelps Dodge, and Moody's assumption that free cash flow will be sufficient to permit repayment of much of the company's US$2.45 billion Term Loan A over the next two to three quarters. The Ba2 corporate family rating reflects Freeport's high debt level of approximately US$11.3 billion, including Moody's adjustments, the high concentration in copper and resultant variability in earnings and cash flow, significant capital expenditures, and a high level of reliance on the Grasberg mine in Indonesia. The Ba2 rating favorably considers the company's leading positions in copper and molybdenum, a significant amount of gold production, the low cost, long-life reserves at PT-FI, and improved operating and political diversity. Outlook Actions: Ratings affirmed: Issuer: Freeport-McMoRan Copper & Gold Inc. -- Corporate Family Rating: Ba2 -- Probability of Default Rating: Ba2 -- US$0.5 billion Senior Secured Revolving Credit facility, Baa2, LGD1, 2% -- US$1.0 billion Senior Secured Revolving Credit Facility, Baa3, LGD2, 17% -- US$2.45 billion Senior Secured Term Loan A, Baa3, LGD2, 17% -- US$339.7 million 6.875% Senior Secured Notes due 2014, Baa3, LGD2, 17% -- US$6 billion Senior Unsecured Notes: Ba3, LGD5, 80% Issuer: Phelps Dodge Corporation -- US$107.9 million 8.75% Senior Notes due 2011, Ba1, LGD3, 36% -- US$115 million 7.125% Senior Notes due 2027, Ba1, LGD3, 36% -- US$150 million 6.125% Senior Notes due 2034, Ba1, LGD3, 36% -- US$193.8 million 9.50% Senior Notes due 2031, Ba1, LGD3, 36% Moody's last rating action on Freeport was to assign a Baa3 rating to its Term Loan A and upgrade the Phelps Dodge notes to Ba1 in July 2007. Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. ===================== P U E R T O R I C O ===================== FIRSTBANK PEURTO RICO: Moody's Changes Outlook to Stable -------------------------------------------------------- Moody's Investors Service changed the rating outlook of FirstBank Puerto Rico to stable from negative. The bank is rated D+ for financial strength and Ba1 for long-term deposits. FirstBank is the primary operating subsidiary of First BanCorp Puerto Rico, which is unrated. The outlook change follows the filing of First BanCorp's first and second quarter 10-Qs with the SEC. The filings bring First BanCorp current in its financial reporting requirements and represent another step towards a full recovery from its accounting and related problems. Earlier, it reached an agreement to settle an SEC investigation and shareholder lawsuits, and it also completed the sale of a 10% stake in itself to Scotiabank, which strengthened its capital position. In addition, First BanCorp's corporate governance and internal controls have improved, in Moody's view. Therefore, the likelihood of a negative rating action has significantly declined. Although First BanCorp's management team has successfully navigated a number of challenges, the company continues to operate under two cease-and-desist orders with its banking regulators that will take time to fully resolve. Moreover, like its Puerto Rican banking peers, First BanCorp has experienced significant profitability and asset quality pressures as a result of the island's economic slowdown. Finally, through its FirstBank Florida subsidiary, the company has some exposure to the weakening South Florida commercial real estate markets. Therefore, despite the progress made to date, Moody's does not expect positive rating pressure to emerge until the company's financial fundamentals strengthen as a result of improved performance within the core banking business. FirstBank Puerto Rico, headquartered in San Juan, Puerto Rico, reported total assets of roughly US$19 billion at year-end 2005. It is a subsidiary of First Bancorp. NUTRITIONAL SOURCING: Court OKs FTI as Panel's Financial Advisor ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave the Official Committee of Unsecured Creditors of Nutritional Sourcing Corp. and its debtor-affiliates permission to retain FTI Consulting Inc. as their financial advisors. As reported in the Troubled Company Reporter on Sept. 20, 2007, FTI is expected to: 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 assured 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: Court OKs Skadden Arps as Panel's Counsel --------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware gave the Official Committee of Unsecured Creditors of Nutritional Sourcing Corp. and debtor-affiliates' bankruptcy cases, authority to retain Skadden, Arps, Slate, Meagher & Flom LLP as counsel. The Official Committee of Unsecured Creditors selected Skadden, Arps because of the law firm's familiarity with the Debtors' cases and its extensive knowledge in the field of debtor's and creditor's rights, and in other fields of law that may be involved in Debtors' cases. As the Committee's counsel, the firm is expected to: a) advise the Committee regarding its rights, powers and duties in these cases; b) assist and advise the Committee in its consultations with the Debtors regarding the administration of these cases; c) assist and advise the Committee in its consultations with the Debtors regarding the sale of assets; d) assist the Committee in analyzing claims of the Debtors' creditors and in negotiating with such creditors; e) assist with the Committee's investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors and of the operation of their businesses; f) assist the Committee in its analysis of, and negotiations with, the Debtors or any third party concerning matters related to, among other things, the terms of a chapter 11 plan or plans for the Debtors; g) assist and advise the Committee as to its communications to the general creditor body regarding significant matters in these cases; h) represent the Committee at hearings and proceedings; i) review and analyze applications, orders, statements of operations and schedules filed with the Court and advise the Committee as to their propriety; j) assist the Committee in preparing pleadings and applications as may be necessary in furtherance of the Committee's interest and objectives; and k) perform such other services as may be required and are deemed to be in the interests of the Committee with the Committee's powers and duties as set forth in the Bankruptcy Code. The firm's compensation rates are: Professional Hourly Rate ------------ ----------- Partners US$680 - US$950 Counsel US$640 - US$765 Associates US$340 - US$625 Legal Assistants US$170 - US$265 Support Staff US$170 - US$265 Mr. Mark S. Cheni, Esq., a member of Skadden, Arps assured the Court that his firm does not hold any interest adverse to the Debtors' estate, and ia a "disinterested person" as that term is defined in Sec. 101(14) of the Bankruptcy Code. Mr. Poorman can be reached at: Mark S. Cheni, Esq. Skadden, Arps, Slate, Meagher & Flom LLP One Rodney Square P.O. Box 636 Wilmington, Delaware 19899 Tel: (302) 6512-3000 http://www.skadden.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. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Orinoco Joint Ventures Not Finalized ------------------------------------------------------------ Venezuelan state-run oil firm Petroleos de Venezuela SA's Orinoco joint ventures are far from being finalized, Business News Americas reports, citing former Shell Venezuela head Alberto Quiros. The joint ventures are: -- Petro Anzoategui (Petrozuata), -- Petro Cedeno (Sincor), -- Petro Piar (Ameriven), and -- Petro Monagas (Cerro Negro). BNamericas relates that Petroleos de Venezuela mandated majority control of all projects operating in Orinoco. It now has an 80% average share in the joint ventures. Mr. Quiros told BNamericas that the national assembly already approved the deals. "The contracts are signed, but a lot of operational issues still need to be addressed. The private companies are continuing to operate the blocks and I don't think PDVSA [Petroleos de Venezuela] is in any rush to take over actual operations," Mr. Quiros commented to BNamericas. However, foreign operators aren't content with the situation, Mr. Quiros told BNamericas. Petroleos de Venezuela said it will grant blocks in the Orinoco to many countries, but China, Brazil, Russia and possibly Spain are the ones that have the capacity. According to BNamericas, projects for the extraction and processing of heavy crude need major investment. "Everyone's calculating reserves, but that's it. The Chinese still haven't started to invest much," Mr. Quiros commented to BNamericas. 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: Paradigm to Interpret Data for Cardon II ---------------------------------------------------------------- Hydrocarbons exploration and production software provider Paradigm will process and interpret data acquired for Venezuelan state-run oil firm Petroleos de Venezuela SA's Cardon II exploration project, Business News Americas reports. According to BNamericas, Norwegian company SCAN Geophysical unit SCAN Geofisica awarded the contract to Paradigm. Paradigm said in a statement that the contract includes: -- collection, -- processing, and -- interpretation of 2D and 3D seismic data to assist Petroleos de Venezuela with prospect generation for a previously unexplored 400-square-kilometer area off Venezuela's northwest coast. Paradigm will help with quality assurance and control during the data acquisition onboard SCAN's M/V Scan Resolution survey vessel. The processing and interpretation of the date will be at Paradigm's technical center in Caracas, BNamericas states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. 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: Oil Sale to Dominican on Special Terms -------------------------------------------------------------- The Dominican Republic's Treasury Department Secretary Vicente Bengoa told Prensa Latina that his government will purchase all of its crude needs from Petroleos de Venezuela SA once crude prices would reach US$100 per barrel. In an agreement signed with Petroleos de Venezuela, the Dominican Republic would be able to purchase crude from Venezuela on preferential terms once prices would rise to a hundred dollars. Under the accord, payment for 50% of the purchased oil will be financed up to 25 years, the same report relates. The framework for this agreement is similar for all members of the PetroCaribe initiative. About Petroleos de Venezuela Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. As reported on March 28, 2007, Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured long-term credit rating to Petroleos de Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes due 2027, and US$1 billion notes due 2037. * VENEZUELA: Carbones del Guasare Lifts Force Majeure on Exports ---------------------------------------------------------------- Helcias Benaim -- the head of coal producer Carbones del Guasare, which is controlled by state firm Carbozulia -- told Reuters that the firm has lifted a force majeure on exports. Mr. Benaim explained to Reuters that Carbones del Guasare declared force majeure when transport workers transporting coal launched a strike last week to demand higher pay. The protest lasted two days. However, the firm didn't cancel its force majeure until Sept. 24, 2007. Carbones del Guasare's employees agreed to end a transport strike, Reuters relates, citing Mr. Benaim. Supplies have resumed. "The dispute itself has been resolved, the force majeure lifted and we are operating normally," Mr. Benaim commented to Reuters. About Carbones del Guasare Carbones del Guasare, Venezuela's largest coal producer, is in Zulia. It is controlled by the state company Carbozulia. Peabody Energy and Anglo American are its minority owners. It operates the Diablo mine. * * * 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. * VENEZUELA: Natural Gas Exports May be Delayed ----------------------------------------------- An industry source told Business News Americas that Venezuela wouldn't be able to start exporting natural gas before 2013 or 2014. BNamericas relates that the source said Venezuela would begin importing natural gas from Colombia with the launching of a pipeline connecting the two nations on Oct. 12, 2007. However, but Colombian indigenous groups are continuing to hinder the project's completion. The pipeline will transport some 150 million cubic feet per day from Colombia to Venezuela, BNamericas notes. The line can handle about 450 million cubic feet per day. Flow will be reversed to export natural gas from Venezuela to Colombia. Venezuela wants to boost natural gas production to 11 billion cubic feet a day by 2012, when the nation would start exporting natural gas to Colombia, BNamericas states, citing Venezuelan President Hugo Chavez. * * * As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings affirmed Venezuela's long-term foreign and local currency Issuer Default Ratings at 'BB-'. At the same time, the agency also affirmed the short-term foreign currency IDR at 'B' and the Country Ceiling at 'BB-'. Fitch said the ratings' outlook 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 de los Santos, and Pamella Ritah Jala, Editors. Copyright 2007. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *