/raid1/www/Hosts/bankrupt/TCRLA_Public/071010.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, October 10, 2007, Vol. 8, Issue 201
Headlines
A R G E N T I N A
ABA Y GIAN: Trustee Filing General Report in Court Tomorrow
CHRYSLER LLC: Has Until Today to Close Negotiations with UAW
CHRYSLER LLC: Third Quarter Sales Increase by 10% in 2007
DAK SA: Trustee Filing Individual Reports in Court Tomorrow
EUROMAYOR SA: Fitch Arg Puts BB Rating on US$3,073,200 Notes
DELTA AIR: Court Issues Final Decree Closing 17 Chapter 11 Cases
FIDEICOMISO HIPOTECARIO: Fitch Arg Rates Two Debts at B(arg)
FIDEICOMISO HIPOTECARIO: Fitch Arg Puts CCC(arg) Rtg. on Debt
MADERWIL SA: Proofs of Claim Verification Deadline Is Feb. 5
MEDITERRANEO AUTOMOTORES: Reorganization Proceeding Concluded
RONDINA SRL: Trustee Filing General Report in Court Tomorrow
TELECOM ARGENTINA: Paying in Advance US$150MM of Corporate Debt
WILD CAT: Proofs of Claim Verification Ends on Feb. 11, 2008
* ARGENTINA: To Discuss Club de Paris Debt Restructuring Scheme
B E R M U D A
FOSTER WHEELER: Units Ink Deal for Qatar Petrochemical Complex
GAUDY LTD: Holding Final General Meeting on Oct. 12
INTELSAT LTD: Completes Purchase Pact with Telenor Satellite
REFCO INC: 2nd Circuit Junks Appeal on Sphinx Creditors Deal
WAKEFIELD TOWER: Proofs of Claim Filing Is Until Oct. 12
B R A Z I L
AFFINIA GROUP: Closes Indiana Manufacturing & Packaging Assets
AMRO REAL: Parent Okays Royal Bank Consortium's Takeover Bid
JAPAN AIRLINES: To Book JPY20 Billion in Anticipated Losses
PARANA BANCO: Acquires 3.37 Million Shares in J Malucelli
BANCO NACIONAL: Okays BRL95.4-Million Loan to Nestle Nordeste
COMPANHIA ENERGETICA: S&P Ups Corporate Credit Rating to B
COMPANHIA PARANAENSE: Joining Federal Highway Auction
COMPANHIA SIDERURGICA: In Talks with Pernambuco Over Concession
DELPHI CORP: Disclosure Statement Hearing Moved to Oct. 25
DELPHI CORP: Initiates 707 Adversary Cases Under Seal
GOODYEAR TIRE: Brazilian Unit Working at Full Capacity
HEXCEL CORP: Embarks on US$180-Million Carbon Fiber Expansion
PROPEX INC: High Leverage Prompts Moody's to Cut Rating to Caa1
PROPEX INC: S&P Places B- Corp. Credit Rating on Watch Negative
REALOGY CORPORATION: Signs License Deal with Meredith
SYNIVERSE TECH: Bags Saudi Telecom Anti-Fraud Contract
TELE NORTE: Telemar to Purchase Preferred Shares on Oct. 11
WEIGHT WATCHERS: June 30 Balance Sheet Upside-Down by US$991,266
* BRAZIL: Will Use More Ethanol than Gasoline by 2020
C A Y M A N I S L A N D S
A&Q SELECT (FEEDER): Proofs of Claim Must be Filed by Nov. 1
A&Q SELECT (LIMITED): Proofs of Claim Filing Deadline Is Nov. 1
ADMC ABSOLUTE: Holding Final Shareholders Meeting on Nov. 1
ASTPRELUDE FUND: Last Day To File Proofs of Claim Is Nov. 1
BANK OF AYUDHYA: Will Pay Interest for Debentures on Nov. 4
BANK OF AYUDHYA: Affiliate to Expand to Bancassurance Next Year
BANK OF INDIA: Raises INR155 Crore from Perpetual Debt Issue
BEAR STEARNS: Court Directs Liquidators to Make US$8-Mln Deposit
BEAR STEARNS: Prosecutors Conduct Probe on Funds' Collapse
BELMONT UNITED: Creditors Must File Proofs of Claim by Nov. 1
COLIN LUKE: Proofs of Claim Must be Filed by Nov. 1
COMPASS LTD: Sets Final Shareholders Meeting for Nov. 1
ELYSEE LIMITED: Last Day to File Proofs of Claim Is Nov. 1
LAKEPORT INVESTMENTS: Last Day to File Proofs of Claim Is Nov. 1
MOTHERROCK ENERGY FUND: Final Shareholders Meeting Is on Nov. 1
MOTHERROCK ENERGY MASTER: Final Shareholders Meeting Is Nov. 1
NEST FUNDING: Holding Final Shareholders Meeting on Nov. 1
NF HOLDING: Will Hold Final Shareholders Meeting on Nov. 1
SAILFISH GLOBAL: Proofs of Claim Filing Deadline Is Nov. 1
PINE INTERNATIONAL: Proofs of Claim Filing Deadline Is Nov. 1
PINE INVESTMENTS: Proofs of Claims Must be Filed by Nov. 1
SEAGATE TECHNOLOGY: Teams Up with Ubisoft's Frag Dolls(R)
SMOKY RIVER: Proofs of Claim Filing Ends on Nov. 1
SUPER H. LIMITED: Creditors Must File Proofs of Claim by Nov. 1
C O L O M B I A
KNOLL INC: Moody's Withdraws Ba3 Corporate Family Rating
POLYONE CORP: To Pay US$15.2 Mil. Remediation Charge in 3rd Qtr.
C O S T A R I C A
* COSTA RICA: S&P Affirms Low B Foreign & Local Currency Ratings
D O M I N I C A N R E P U B L I C
ALCATEL-LUCENT: Says It Has 15 Commercial Contracts & 70+ Pilots
ALCATEL-LUCENT: Deploys GPON Solution w/ France's Neuf Cegetel
E L S A L V A D O R
* EL SALVADOR: Antitrust Regulator Dumps Appeal on Fines
G U A T E M A L A
GOODYEAR TIRE: Extends Procurement Outsourcing Deal with ICG
J A M A I C A
SUGAR COMPANY: Five Sugar Factories Incur Almost J$3B in Debt
M E X I C O
ATARI INC: Major Stockholder Removes Five Board Members
BEARINGPOINT INC: Bags US$14.1-Mil. Contract from Calif. Agency
DURA AUTOMOTIVE: Plan Confirmation Hearing Set for Nov. 26
FGX INT'L: S&P Affirms B Corp. Credit Rating with Stable Outlook
INTERTAPE POLYMER: Raises US$62.9MM from Common Shares Offering
MOVIE GALLERY: Prepackaged Chapter 11 Plan Gets Creditors' Okay
OPEN TEXT: Extends Enterprise Records Management with FaceTime
REMY WORLDWIDE: Files Pre-Packaged Bankruptcy in Delaware
REMY WORLDWIDE: Case Summary & 30 Largest Unsecured Creditors
SPANSION INC: Inks Definitive Contract with Saifun Semiconductor
P E R U
BANCO DE CREDITO: Sells PEN483MM in Subordinated Notes Due 2022
P U E R T O R I C O
AVNET INC: Closes Acquisition of Magirus Infrastructure Division
MARGO CARIBE: John Upchurch Replaces Alison Witkovich as CFO
PIER 1: Moody's Removes Caa1 Corporate Family Rating
T R I N I D A D & T O B A G O
MIRANT CORP: District Court Affirms Ruling on Wilson's Fees
MIRANT CORP: Mirant Lovett Emerges from Bankruptcy Protection
V E N E Z U E L A
PEABODY ENEGY: Names Tayeb Tahir as President for China Unit
* Seven LatAm Countries to Inaugurate Banco del Sur on Nov. 3
- - - - -
=================
A R G E N T I N A
=================
ABA Y GIAN: Trustee Filing General Report in Court Tomorrow
-----------------------------------------------------------
Tito Jorge Gargaglione, the court-appointed trustee for Aba y
Gian S.R.L.'s bankruptcy proceeding, will present a general
report containing an audit of the firm's accounting and banking
records the National Commercial Court of First Instance in
Buenos Aires on Oct. 11, 2007.
Mr. Gargaglione verified creditors' proofs of claim until
July 4, 2007. He submitted the validated claims in court as
individual reports on Aug. 30, 2007.
Mr. Gargaglione is also in charge of administering Aba y Gian's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Aba y Gian S.R.L.
Avenida Nazca 560
Buenos Aires, Argentina
The trustee can be reached at:
Tito Jorge Gargaglione
Medrano 833
Buenos Aires, Argentina
CHRYSLER LLC: Has Until Today to Close Negotiations with UAW
------------------------------------------------------------
Chrysler LLC has until 11 a.m. today to close its contract
negotiations with the United Auto Workers union, otherwise
49,000 union members will hold strike against the company,
according to various papers citing people familiar with the
matter.
As reported in yesterday's Troubled Company Reporter-Latin
America, the UAW disclosed a 72-hour notice, on Oct. 6, 2007,
for a potential strike, forcing the carmaker to reach an
agreement with the union after talks intensified over the
weekend.
Sources say that the union will likely defer discussions on an
hourly or daily basis.
Both parties, analysts suggests, may come up with a contract
patterned after General Motors Corp.'s tentative agreement with
the union, although, may call for cost cuts in different places
as Chrysler's needs are distinct from GM's requirements.
Various papers relates that owner Cerberus Capital Management LP
doesn't want to be burdened with the cost of transferring
retiree health care administration to the UAW.
As previously reported, GM and the UAW reached a tentative
agreement on a new national labor contract after more than
73,000 UAW union members throughout the United States went on
strike against GM. The tentative agreement, covering
approximately 74,000 represented employees, includes a
memorandum of understanding to establish an independent retiree
health care trust, as well as other changes to the national
agreement.
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.
* * *
On Oct. 1, 2007, Standard & Poor's Ratings Services placed its
corporate credit ratings on Chrysler LLC and DaimlerChrysler
Financial Services Americas LLC on CreditWatch with positive
implications.
As reported in the Troubled Company Reporter on Aug. 8, 2007,
Standard & Poor's Ratings Services revised its loan and recovery
ratings on Chrysler LLC's (B/Negative/--) US$10 billion senior
secured first-lien term loan facility due 2013, following
various changes to terms and conditions prior to closing. The
US$10 billion first-lien term loan now consists of a US$5
billion "first-out" tranche and a US$5 billion "second-out"
tranche, so the aggregate amount of first-lien debt remains
unchanged.
Accordingly, S&P assigned a 'BB-' rating to the US$5 billion
"first-out" first-lien term loan tranche. This rating, two
notches above the corporate credit rating of 'B' on Chrysler
LLC, and the '1' recovery rating indicate S&P's expectation for
very high recovery in the event of payment default. S&P also
assigned a 'B' rating to the US$5 billion "second-out" first-
lien term loan tranche. This rating, the same as the corporate
credit rating, and the '3' recovery rating indicate S&P's
expectation for a meaningful recovery in the event of payment
default.
Moody's Investors Service has affirmed Chrysler Automotive LLC's
B3 Corporate Family Rating, and the Caa1 rating of the company's
US$2 billion senior secured, second lien term loan in connection
with Monday's closing of DaimlerChrysler AG's sale of a majority
interest of Chrysler Group to Cerberus Capital Management LLC.
CHRYSLER LLC: Third Quarter Sales Increase by 10% in 2007
---------------------------------------------------------
Chrysler LLC has announced an increase of 10 percent compared to
the same period of 2006 in the third quarter of 2007. From July
to September, Chrysler sold 149,800 vehicles outside of the U.S.
Third quarter figures include a 20 percent sales increase
Internationally, outside of North America (62,516 units); a 5.5
percent sales increase in Mexico (30,648 units); and a sales
increase of 2.8 percent in Canada (56,636 units).
Chrysler's worldwide vehicle sales declined 3 percent during the
third quarter of 2007 to 615,530 units (2006: 634,656 units).
Sales increases in select markets were driven by the worldwide
appeal and strong customer interest in Chrysler's new vehicles,
including the Jeep(R) Wrangler, Jeep Compass and Jeep Patriot.
"The North American market will continue to be vital to the
overall growth of Chrysler," said Steven Landry, Executive Vice
President - North American Sales. "Although the U.S. is our
largest market, it is important to note the growing importance
of regions like Canada and Mexico that are contributing more and
more to this Company, as we expand our product portfolio to meet
the needs of our global customer base."
Chrysler's International Markets
Fueled by demand for new Jeep and Dodge models, third quarter
sales for markets outside North America were up 20 percent to
62,516 units during the third quarter (2006: 52,114 units). For
the month of September, sales increased 12.3 percent to 23,016
units, bringing the number of consecutive months for year-over-
year sales improvement to 28.
Many new models have had a significant impact on the recent
increases. Jeep Wrangler sales of 11,650 units in 2007 have
nearly doubled last year's total for the same time period. And
the recently introduced Dodge Nitro was among the top-selling
vehicles Internationally in September.
"The Company is now experiencing the strength of our
International product offensive," said Michael Manley --
Executive Vice President of International Sales, Marketing and
Business Development. "Though we have achieved approximately 20
percent growth this year, we recognize that we are working from
a relatively low base, and continue to have opportunity to grow.
We are however, pleased for our dealers who have worked hard and
had the confidence to invest in us. As we move forward, we will
continue to focus on them and satisfying our customers, as that
is the key to our continued success."
Chrysler Mexico
Posting its best September ever, Chrysler Mexico sales rose 3.2
percent to 10,543 units in September 2007. SUV sales were up
62.4 percent for the month while total trucks advanced 20.6
percent. Also posting an all-time third quarter record, from
July to September, Chrysler Mexico sales rose 5.5 percent to
30,648 units (2006: 29,055 units).
Chrysler Canada
Chrysler Canada recorded another successful month of sales
extending the growth streak to 14 months in a row. Chrysler
Canada September sales of 17,011 vehicles rose 5.1 percent over
the same month last year. During the third quarter, sales also
advanced 2.8 percent in Canada to 56,636 units.
Chrysler's U.S. market
In the highly competitive market environment of the U.S.,
Chrysler sales declined 5.4 percent to 159,799 units in
September 2007, driven by planned fleet reductions of 21
percent. However, Chrysler brand car sales rose 10 percent
year-over-year in September led by the Sebring Sedan and
Convertible. Dodge brand sales, aided by the Ram Pickup and
Nitro, advanced 5 percent from the same period last year. And
the Jeep Wrangler continued to make progress with sales up 71
percent for the month. During the third quarter, sales in the
U.S. declined 6.6 percent to 465,730 units in 2007 (2006:
498,402 units).
The Recovery and Transformation Plan helps facilitate
International growth outside of North America
To help the Company expand globally, a team from the Recovery
and Transformation Plan is working on many fronts to assess new
International growth opportunities and prepare Chrysler for
expansion in select International markets.
The International Growth team aims to identify the right
products and entry strategies to introduce Chrysler, Jeep and
Dodge brands to targeted audiences and develop a more balanced
global footprint. This team is working with Product Strategy to
develop vehicles aimed at International markets.
The recent appointments of Philip Murtaugh as Chief Executive
Officer -- Asia Operations and John Stech as the Head of
Chrysler Russia LLC further underscore Chrysler's commitment to
these markets as they continue to grow and expand.
About Chrysler LLC
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.
* * *
On Oct. 1, 2007, Standard & Poor's Ratings Services placed its
corporate credit ratings on Chrysler LLC and DaimlerChrysler
Financial Services Americas LLC on CreditWatch with positive
implications.
As reported in the Troubled Company Reporter on Aug. 8, 2007,
Standard & Poor's Ratings Services revised its loan and recovery
ratings on Chrysler LLC's (B/Negative/--) US$10 billion senior
secured first-lien term loan facility due 2013, following
various changes to terms and conditions prior to closing. The
US$10 billion first-lien term loan now consists of a US$5
billion "first-out" tranche and a US$5 billion "second-out"
tranche, so the aggregate amount of first-lien debt remains
unchanged.
Accordingly, S&P assigned a 'BB-' rating to the US$5 billion
"first-out" first-lien term loan tranche. This rating, two
notches above the corporate credit rating of 'B' on Chrysler
LLC, and the '1' recovery rating indicate S&P's expectation for
very high recovery in the event of payment default. S&P also
assigned a 'B' rating to the US$5 billion "second-out" first-
lien term loan tranche. This rating, the same as the corporate
credit rating, and the '3' recovery rating indicate S&P's
expectation for a meaningful recovery in the event of payment
default.
Moody's Investors Service has affirmed Chrysler Automotive LLC's
B3 Corporate Family Rating, and the Caa1 rating of the company's
US$2 billion senior secured, second lien term loan in connection
with Monday's closing of DaimlerChrysler AG's sale of a majority
interest of Chrysler Group to Cerberus Capital Management LLC.
DAK SA: Trustee Filing Individual Reports in Court Tomorrow
-----------------------------------------------------------
Roberto Alfredo Mazzarella, the court-appointed trustee for
Dak 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 Oct. 11, 2007.
Mr. Mazzarella verified creditors' proofs of claim until
Aug. 24, 2007. He will also present a general report containing
an audit of Dak's accounting and banking records in court on
Nov. 29, 2007.
Mr. Mazzarella is also in charge of administering Dak's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Roberto Alfredo Mazzarella
Ortega y Gasset 1827
Buenos Aires, Argentina
EUROMAYOR SA: Fitch Arg Puts BB Rating on US$3,073,200 Notes
------------------------------------------------------------
Fitch Argentina assigned a BB rating on Euromayor S.A. de
Inversiones' Obligaciones Negociables Series I for US$3,073,200.
Fitch also placed a BB rating on the company's Obligaciones
Negociables Series II for US$3,078,173.
Euromayor SA de Inversiones --
http://www.euromayor.com/english/empresa.htm-- is controlled by
the ECIPSA Group, a holding company aiming at real estate
developments, which are innovative, different and of high impact
on important Argentine cities.
DELTA AIR: Court Issues Final Decree Closing 17 Chapter 11 Cases
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
issued a final decree closing the Chapter 11 cases of 17 of
Delta Air Lines Inc.'s reorganized debtor-affiliates, effective
Sept. 28, 2007, pursuant to Section 350(a) of the Bankruptcy
Code and Rule 3022 of the Federal Rules of Bankruptcy Procedure.
The cases closed are:
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
As reported in the Troubled Company Reporter on Sept. 27, 2007,
Timothy E. Graulich, Esq., at Davis, Polk & Wardwell, in New
York, told 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. 80; Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or
215/945-7000)
* * *
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.
FIDEICOMISO HIPOTECARIO: Fitch Arg Rates Two Debts at B(arg)
------------------------------------------------------------
Fitch Argentina has rated Fideicomiso Hipotecario BHN II's four
debts:
-- TD Clase A1 VN US$44.554.000 B(arg)
-- TD Clase A2 VN US$51.363.000 B(arg)
-- TD Clase B VN US$3.730.000 B-(arg)
-- CP VN US$6.927.337 CCC(arg)
The rates given show the lack of resolution towards the
pesofication of the titles, which has negatively affected the
amount that the investors would receive, even considering the
pesofication. Today, the amount of the funds kept in the
Fideicomiso BHN II reaches US$12.1 million and US$4.8 million.
The funds are enough to pay the TD Clase A1, A2 and B.
Some holders of TD Clase A1 and A2 presented legal claims at the
Argentine court, which has not been given any result yet.
If considering the pesification, the TD Clase A1, A2 and the BHN
II should have already been paid, though holders asked this not
to happen until the court solves this situation.
The original currency of the titles was dollar.
FIDEICOMISO HIPOTECARIO: Fitch Arg Puts CCC(arg) Rtg. on Debt
-------------------------------------------------------------
Fitch Argentina has rated Fideicomiso Hipotecario BHN III's four
debts:
-- TD Clase A1 VN US$44.554.000 B(arg)
-- TD Clase A2 VN US$51.363.000 B(arg)
-- TD Clase B VN US$3.730.000 B-(arg)
-- CP VN US$6.927.337 CCC(arg)
The rates given show the lack of resolution towards the
pesofication of the titles, which has negatively affected the
amount that the investors would receive, even considering the
pesofication. Today, the amount of the funds kept in the
Fideicomiso BHN III reaches US$12.1 million and US$4.8 million.
The funds are enough to pay the TD Clase A1, A2 and B.
Some holders of TD Clase A1 and A2 presented legal claims at the
Argentine court, which has not been given any result yet.
If considering the pesification, the TD Clase A1, A2 and the BHN
II should have already been paid, though holders asked this not
to happen until the court solves this situation.
The original currency of the titles was dollar.
MADERWIL SA: Proofs of Claim Verification Deadline Is Feb. 5
------------------------------------------------------------
Eduardo Salomon Zalutzky, the court-appointed trustee for
Maderwil SA's bankruptcy proceeding, verifies creditors' proofs
of claim until Feb. 5, 2008.
Mr. Zalutzky will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 7 in Buenos Aires, with the assistance of Clerk
No. 14, 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 Maderwil 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 Maderwil's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Zalutzky is also in charge of administering Maderwil's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Maderwil SA
Juan B. Alberdi 1619
Buenos Aires, Argentina
The trustee can be reached at:
Eduardo Salomon Zalutzky
Lavalle 1523
Buenos Aires, Argentina
MEDITERRANEO AUTOMOTORES: Reorganization Proceeding Concluded
-------------------------------------------------------------
Mediterraneo Automotores S.A.'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 Salta approved the debt agreement signed
between the company and its creditors.
The debtor can be reached at:
Mediterraneo Automotores SA
Avenida Hipolito Yrigoyen 631
Salta, Argentina
Tel: 0387 4310858 / 4215665
E-mail: mediterraneoautomotoressa@yahoo.com.ar
RONDINA SRL: Trustee Filing General Report in Court Tomorrow
------------------------------------------------------------
Ernesto Horacio Garcia, the court-appointed trustee for Rondina
S.R.L.'s bankruptcy proceeding, will file a general report
containing an audit of the firm's accounting and banking records
in the National Commercial Court of First Instance in Buenos
Aires on Oct. 11, 2007.
Mr. Garcia verified creditors' proofs of claim until
June 29, 2007. He presented the validated claims in court as
individual reports on Aug. 29, 2007.
Mr. Garcia is also in charge of administering Rondina's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Ernesto Horacio Garcia
Sarmiento 1587
Buenos Aires, Argentina
TELECOM ARGENTINA: Paying in Advance US$150MM of Corporate Debt
---------------------------------------------------------------
Argentine news daily El Cronista reports that Telecom Argentina
would make a US$150-million advance payment on its corporate
debt on Oct. 16, 2007.
Business News Americas relates that Telecom Argentina initially
planned to make the debt payment in two tranches in April and
October 2008.
According to BNamericas, the advance payment accounts for 7.11%
of the original capital of a bond denominated in euros due 2014
and 7.47% of another bond denominated in dollars due 2011.
Argentine equity fund management company Capital Markets
Argentina said in a report that about 93% of Telecom Argentina's
debt is concentrated in corporate bonds. Telecom Argentina's
consolidated debt includes the debt loads of its mobile units
Telecom Personal and Nucleo.
BNamericas notes that Telecom Argentina's consolidated financial
debt was ARS3.60 billion as of June 2007.
Telecom Argentina has sufficient debt profile as 63.6% of it is
structured in the long term, BNamericas states, citing Capital
Markets.
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina. It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo. France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake. Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).
* * *
As reported on Oct 11, 2006, Standard & Poor's Ratings Services
raised Telecom Argentina S.A.'s counterparty credit rating to
B+/Stable/ from B/Stable following the upgrade of the Republic
of Argentina to 'B+' from 'B'.
WILD CAT: Proofs of Claim Verification Ends on Feb. 11, 2008
------------------------------------------------------------
Alberto Misino, the court-appointed trustee for Wild Cat S.A.'s
bankruptcy proceeding, verifies creditors' proofs of claim until
Feb. 11, 2008.
Mr. Misino will present the validated claims in court as
individual reports on March 26, 2007. The National Commercial
Court of First Instance in Cordoba 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 Wild Cat 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 Wild Cat's accounting
and banking records will be submitted in court on June 18, 2008.
Mr. Misino is also in charge of administering Wild Cat's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Wild Cat S.A.
Humberto Primo 299, Ciudad de Cordoba
Cordoba, Argentina
The trustee can be reached at:
Alberto Misino
Avenida General Paz 108, Ciudad de Cordoba
Cordoba, Argentina
* ARGENTINA: To Discuss Club de Paris Debt Restructuring Scheme
---------------------------------------------------------------
The Argentine government, from October 18 to 22, will discuss a
plan for paying the debt that it has with the Club de Paris in
five years. The debt totals US$6.100 million. The meeting will
be on the next annual assembly of the International Monetary
Fund.
Argentine stopped paying the debt on Dec. 2001. Top creditors
are Germany with 28%, followed by Japan with 17%, Nertherlands
with 16%, and U.S. for 5%, among others.
The government will not intend to mix the payment of the Club de
Paris with the bondholders who did not accept the exchange for
leaving default last two years.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
=============
B E R M U D A
=============
FOSTER WHEELER: Units Ink Deal for Qatar Petrochemical Complex
--------------------------------------------------------------
Foster Wheeler Ltd.'s two subsidiaries in its Global Engineering
and Construction Group have been awarded contracts by Qatar
Intermediate Industries Holding Co. Ltd., a fully owned
subsidiary of Qatar Petroleum, to execute the front-end
engineering design (FEED) and to provide project management and
construction management (PMCM) services for a new grassroots
petrochemical complex to be located at Mesaieed in Qatar. Qatar
Holding is in the process of establishing a joint venture
company for this project with Honam Petrochemical Corporation of
Korea. In addition to the usual FEED scope, Foster Wheeler's
work also includes the procurement of long-lead items.
The Foster Wheeler FEED contract value, which was not disclosed,
will be included in the company's third-quarter 2007 bookings.
A portion of the PMCM contract relating to services to be
provided up to award of engineering, procurement and
construction contracts, will be booked in the fourth quarter of
2007 with the remainder being booked at a later date.
The new complex will include world-scale olefins and aromatics
units, which will supply ethylene, propylene and benzene to the
downstream polypropylene, ethylbenzene, styrene monomer and
polystyrene facilities. The complex, which will also include
ethylene-to-propylene conversion units, is scheduled for
completion in 2011.
"Foster Wheeler has established itself as a key global
contractor in the chemical and petrochemical sector," said Steve
Davies, chairman and chief executive officer, Foster Wheeler
Energy Limited. "We will leverage our extensive experience, in-
depth technical expertise and our proven ability to execute
large, complex projects to help our client meet its objectives
in realizing this major grassroots investment."
Mohammed K. Turki Al-Sobai, managing director and chief
executive officer, Qatar Intermediate Industries Holding Co.
Ltd., expressed his pleasure for selecting Foster Wheeler to
conduct the FEED and PMCM for this very important project for
Qatar Holding.
Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/--
offers a broad range of engineering, procurement, construction,
manufacturing, project development and management, research and
plant operation services. Foster Wheeler serves the refining,
upstream oil and gas, LNG and gas-to-liquids, petrochemical,
chemicals, power, pharmaceuticals, biotechnology and healthcare
industries. The corporation is based in Hamilton, Bermuda, and
its operational headquarters are in Clinton, New Jersey.
* * *
As reported in the Troubled Company Reporter on Dec. 18, 2006,
Standard & Poor's Ratings Services revised its outlook on Foster
Wheeler Ltd. to positive from stable.
At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating and other ratings on the company. The company had
about US$217 million of total debt at Sept. 29, 2006.
GAUDY LTD: Holding Final General Meeting on Oct. 12
---------------------------------------------------
Gaudy Ltd.'s final general meeting is scheduled on
Oct. 12, 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.
INTELSAT LTD: Completes Purchase Pact with Telenor Satellite
------------------------------------------------------------
Intelsat Ltd. and Telenor Satellite Broadcasting have completed
an agreement, for Intelsat to purchase 10 transponders on
Telenor's THOR 6 satellite, due to launch in second quarter of
2009.
Under the contract, Intelsat will gain additional capacity to
expand its growing DTH business within Central and Eastern
Europe. For both Telenor and Intelsat, it paves the way to
continuing combined efforts to further develop 1 degree W as a
leading broadcasting position in this region.
"For Telenor Satellite Broadcasting and Intelsat, this contract
signifies the joint ambition to make 1 degree W the choice
platform for broadcasting services in Central and Eastern
Europe," said Cato Halsaa, CEO of Telenor Satellite
Broadcasting. "We look forward to a fruitful and successful
cooperation."
David McGlade, CEO of Intelsat said, "Central and Eastern Europe
is fast becoming a highly competitive market, placing ever-
increasing demands for quality DTH capacity. This agreement
represents a new phase in growing our long-standing relationship
with Telenor Satellite Broadcasting and enables us to provide
our customers with the capacity required to support their future
expansion plans in this region."
THOR 6 will be based on a Thales Alenia Space Spacebus 4000B2
platform, fitted with 36 Ku-band transponders. Twenty
transponders will be positioned to serve the growing business
demands in Central and Eastern Europe and the satellite will be
launched on either an Ariane 5 or a Soyuz launcher from the
Guiana Space Centre in French Guiana.
About Telenor Satellite
Telenor Satellite Broadcasting -- http://www.telenorsbc.com/--
is part of Telenor Broadcast, one of the three core businesses
of Norway's leading communications operator, Telenor ASA.
Telenor Satellite Broadcasting provides extensive television
broadcasting services for distribution, contribution and
occasional applications to all the Nordic Broadcasters and many
other broadcasters throughout Europe, using its hybrid network
comprised of (three) satellites, terrestrial circuits and earth
stations. Additionally, it provides fixed satellite
communication and uplinking services for data and remote
Internet applications together with VSAT and broadband services
in Europe and the Middle East.
About Intelsat
Intelsat, headquartered in Bermuda, is the largest fixed
satellite service operator in the world and is owned by Apollo
Management, Apax Partners, Madison Dearborn, and Permira.
As reported in the Troubled Company Reporter-Latin America on
June 22, 2007, Moody's Investors placed the long-term debt
ratings of the Intelsat Ltd. group of companies on review for
possible downgrade.
Issuer: Intelsat (Bermuda), Ltd.
-- Senior Unsecured Bank Credit Facility, Placed on Review for
Possible Downgrade, currently B2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently Caa1
Issuer: Intelsat Corporation
-- Senior Secured Bank Credit Facility, Placed on Review for
Possible Downgrade, currently Ba2
-- Senior Secured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently Ba2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently B2
Issuer: Intelsat Holding Corporation
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently Caa1
Issuer: Intelsat Intermediate Holding Company, Ltd.
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently B3
Issuer: Intelsat Subsidiary Holding Co. Ltd.
-- Senior Secured Bank Credit Facility, Placed on Review for
Possible Downgrade, currently Ba2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently B2
Issuer: Intelsat, Ltd.
-- Probability of Default Rating, Placed on Review for
Possible Downgrade, currently B2
-- Corporate Family Rating, Placed on Review for Possible
Downgrade, currently B2
-- Senior Unsecured Regular Bond/Debenture, Placed on Review
for Possible Downgrade, currently Caa1
Outlook Actions:
Issuer: Intelsat, Ltd.
-- Outlook, Changed To Rating Under Review From Stable
As reported in the Troubled Company Reporter-Latin America on
June 22, 2007, Fitch Ratings placed these Intelsat Ltd. ratings
on Rating Watch Negative:
-- Issuer Default Rating 'B';
-- Senior unsecured notes 'CCC/RR6'.
Fitch also placed the ratings of Intelsat's subsidiaries on
Rating Watch Negative.
Fitch placed these ratings of Intelsat subsidiaries on Rating
Watch Negative:
Intelsat (Bermuda), Ltd.
-- Issuer Default Rating 'B';
-- Senior unsecured guaranteed notes 'BB-/RR2';
-- Guaranteed Term Loan 'BB-/RR2';
-- Senior unsecured non-guaranteed notes 'CCC+/RR6'.
Intelsat Intermediate Holding Company, Ltd. (Int Holdco)
-- Issuer Default Rating 'B';
-- Senior unsecured discount notes 'B-/'RR5'.
Intelsat Subsidiary Holding Company, Ltd. (Sub Holdco)
-- Issuer Default Rating 'B';
-- Senior secured credit facilities 'BB/RR1';
-- Senior unsecured notes 'BB-/RR2'.
Intelsat Corporation (f/k/a PanAmSat Corporation)
-- Issuer Default Rating (IDR) 'B';
-- Senior secured credit facilities 'BB/RR1';
-- Senior secured notes 'BB/RR1';
-- Senior unsecured notes 'B/RR4'.
As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Standard & Poor's Ratings Services lowered its
ratings on Pembroke, Bermuda-based Intelsat Ltd. and affiliated
entities, including the corporate credit rating, which was
lowered to 'B+' from 'BB-'. All ratings were immediately placed
on CreditWatch with negative implications.
REFCO INC: 2nd Circuit Junks Appeal on Sphinx Creditors Deal
------------------------------------------------------------
The United States Court of Appeals for the Second Circuit on
Oct. 5 rejected an appeal by certain investors and the Joint
Official Liquidators of SPhinX Managed Futures Fund SPC from a
lower court ruling approving a deal between Refco creditors and
SPhinX.
A three-man panel upheld a November 2006 order of the U.S.
District Court for the Southern District of New York affirming a
ruling of the U.S. Bankruptcy Court for the Southern District of
New York approving the settlement of a preference action
initiated by the Official Committee of Unsecured Creditors on
behalf of Refco Capital Markets, Ltd., against SPhinX.
The Second Circuit held that investors at SPhinX have no
standing to contest the settlement, and that Kenneth M. Krys and
Christopher Stride, the Cayman Islands liquidators for SPhinX,
are precluded from appealing the settlement.
Prior to Refco's collapse in October 2005, directors at SPhinX
had hired PlusFunds Group, Inc., a registered investment
advisor, to manage SPhinX in exchange for management fees. The
Investors alleged that PlusFunds in turn hired Refco Alternative
Investments to oversee Refco-related investments for SPhinX.
According to the Investors, RAI regularly executed trades for
Sphinx, as directed by PlusFunds, and oversaw its margin cash.
The Investors further alleged that RAI, at PlusFunds' direction,
caused SPhinX's excess margin cash to be invested in accounts at
RCM.
On Oct. 10, 2005, Refco Inc., announced it had discovered a
substantial, previously undisclosed liability that caused a
crisis of confidence in RCM's ability to accommodate client
withdrawals. On Oct. 17, 2005, Refco and certain of its
affiliates sought bankruptcy protection.
Five days prior to the bankruptcy filing, US$312,046,266 in
funds were transferred from the SPhinX accounts at RCM to its
affiliate Refco LLC, and ultimately to accounts held on behalf
of the cells at Lehman Brothers.
The Investors alleged that the transfer was made at the behest
of PlusFunds CEO Chris Sugrue, who, the Investors said,
maintained previously undisclosed allegiances to Refco.
On Dec. 16, 2005, the Committee commenced an adversary
proceeding to recover the transfer made to the cells.
SPhinX argued it was inequitable to allow RCM to recover the
entire US$312,000,000 because RCM and its non-debtor affiliates
had abused the bankruptcy process to the detriment of SPhinX.
At the close of discovery in April 2006, and on the eve of an
argument on the Committee's request for summary judgment, the
Committee and SPhinX agreed to settle. SPhinX agreed to return
US$263,000,000 to the RCM estate and waive any claim against RCM
related to the transfer, including any claim pursuant to Section
502(h) of the Bankruptcy Code.
The Investors called the "worse-than-losing" Settlement a result
of an "incestuous relationship" between Refco, PlusFunds, and
SPhinX. The Investors said SPhinX agreed to return all but
about 15% of the purported preference and to abandon any future
claims against the RCM estate arising from the transfer at
issue.
The Committee responded that the settlement was fair given the
weakness of SPhinX's defenses, and the cost, expense, and delay
associated with further litigating the legal and factual issues
in the adversary proceeding.
The Committee justified the inclusion of the Section 502(h)
waiver in the Settlement as reasonable, because: (1) in order to
assert a claim pursuant to Section 502(h), SPhinX would have
been required to repay the full amount of the transfer, which
SPhinX contended it could not do consistent with Cayman law, (2)
Sphinx, unlike other creditors of the RCM estate, would recover
on its related claims against RCM immediately through the
Settlement and did not have to wait for a plan of
reorganization, and (3) even if SPhinX satisfied the requirement
for making a Section 502(h) claim by returning the entire amount
of the transfer, plus interest, other parties may have sought to
equitably subordinate SPhinX's claim against RCM.
Under Section 502(h) of the Bankruptcy Code, a claim of a
transferee of an avoidable transfer will be disallowed if the
transferee does not pay the owed amount or turn over the
property as required under the Bankruptcy Code.
Bankruptcy Judge Robert D. Drain approved the Settlement as
being in the best interests of the Refco Debtors, their estates
and creditors. Judge Drain held that the Investors lacked
standing to object because they were not a "party in interest"
under Section 1109(b). The Bankruptcy Court held as a matter of
law that the Settlement affected the Investors as equity holders
in SPhinX only indirectly.
The District Court agreed, finding that the Investors were "not
directly and adversely affected pecuniarily by the challenged
ruling of the Bankruptcy Court because they do not hold a direct
interest in the Debtor."
On appeal, the Second Circuit said the Investors cannot claim
that they seek to enforce any rights distinct from those of
SPhinX as a creditor and a defendant in an adversary proceeding.
The Second Circuit said SPhinX is a single legal entity, and
that the individual cells are not legally separate entities from
SPhinX. By investing in SPhinX, the Investors placed control of
their funds entirely within the hands of the SPhinX directors or
managers acting on the directors' behalf. Only SPhinX, the
Second Circuit held, not individual Investors, or even Investors
as a group, could assert a claim against the Refco estate, and
only SPhinX was permitted to negotiate a settlement with the
Committee.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives. Refco has
operations in Bermuda.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its direct and indirect subsidiaries,
including Refco Capital Markets Ltd. and Refco F/X Associates
LLC, on Dec. 15, 2006. That Plan became effective on
Dec. 26, 2006.
Refco Commodity's exclusive period to file a chapter 11 plan
expired on Feb. 13, 2007. (Refco Bankruptcy News, Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000)
WAKEFIELD TOWER: Proofs of Claim Filing Is Until Oct. 12
--------------------------------------------------------
Wakefield Tower Investment Fund Ltd.'s creditors are given until
Oct. 12, 2007, to prove their claims to Carolynn D. Hiron, 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.
Wakefield Tower's shareholders agreed on Sept. 12, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Carolynn D. Hiron
Williams House, 20 Reid Street
Hamilton, Bermuda
===========
B R A Z I L
===========
AFFINIA GROUP: Closes Indiana Manufacturing & Packaging Assets
--------------------------------------------------------------
Affinia Group Inc. is closing its chassis products manufacturing
and packaging facility in Mishawaka, Indiana. Production and
packaging will be consolidated into its Oklahoma City facility.
The distribution of the product will continue out of the
McHenry, Illinois master distribution center. The transition
will begin immediately and is expected to be complete by
mid-2008.
"The consolidation of the Mishawaka chassis manufacturing and
packaging into Oklahoma City is another important step in
Affinia's transformation plan," John R. Washbish, president of
Affinia's Under Vehicle Group, said. "The competitive landscape
is constantly changing, and like many companies we continue to
evaluate every aspect of our business to adapt to current market
conditions."
"This closure in no way reflects on the talents or dedication of
the 192 hard-working people of Mishawaka," Mr. Washbish said.
"We deeply regret the impact on the lives of our employees and
their families. We will work closely with them and provide all
the help we can, including the option of transfers to Oklahoma
City, as well as local placement and career assistance wherever
possible."
About Affinia Group
Headquartered in Ann Arbor, Michigan, Affinia Group Inc. --
http://www.affiniagroup.com/-- designs, manufactures and
distributes aftermarket components for passenger cars, sport
utility vehicles, light, medium and heavy trucks and off-highway
vehicles. The company's product range addresses filtration,
brake and chassis markets in North and South America, Europe and
Asia. Its South American operation is located in Brazil.
* * *
In January 2007, Moody's Investors Service placed Affinia Group
Inc.'s long-term corporate family and probability of default
ratings at 'B2', which still hold to date. Moody's said the
outlook is stable.
Standard & Poor's placed the company's foreign and local issuer
credit ratings at 'B' in September 2005, which still hold to
date.
AMRO REAL: Parent Okays Royal Bank Consortium's Takeover Bid
------------------------------------------------------------
A consortium of three banks led by the Royal Bank of Scotland
told Business News Americas that Spain's Santander will walk
away with ABN Amro Real after holders of 86% of Dutch bank ABN
Amro authorized the group's takeover bid.
Once Banco Santander would take control of ABN Amro Real, the
Brazilian unit of the Dutch company, Santander Banespa will
become the biggest private bank in the country, surpassing Banco
Itau Holding Financeira SA.
The deal has already gotten approval from the Dutch finance
minister in September.
According to published reports, the consortium priced the deal
at EUR71.1 billion in May 2007, with Santander paying some EUR12
billion for ABN Amro Real, which accounted for 95% of ABN Amro's
operating income in Latin America.
The consortium told BNamericas that its offer would be made
"unconditional" by Oct. 12, 2007.
About The Royal Bank of Scotland
The Royal Bank of Scotland Group plc is the holding company of
The Royal Bank of Scotland plc and National Westminster Bank
Plc, which are UK-based clearing banks. RBS provides a range of
products and services to personal, commercial and large
corporate and institutional customers. The company's activities
are organized into six business divisions: Corporate Markets
(comprising Global Banking and Markets and UK Corporate
Banking), Retail Markets (comprising Retail Banking and Wealth
Management), Ulster Bank, Citizens, RBS Insurance and
Manufacturing.
About Banco Santander
Banco Santander, S.A., fka Banco Santander Central Hispano,
S.A., is a financial group that offers a range of financial
products. At the primary level, the bank's operating units are
segmented by geographical areas. The Continental Europe segment
covers all banking, wholesale banking and asset management, and
insurance conducted in Europe, with the exception of the
operations of the bank's subsidiary, Abbey National plc (Abbey).
The UK (Abbey) segment includes the operations of Abbey, which
is focused on retail banking and insurance. The Latin America
segment includes financial activities conducted via the bank's
subsidiaries. The primary level of segmentation also includes
the Financial Management and Equity Stakes segment. At the
secondary level, the Bank's operating units are segmented by
various types of business: Retail Banking, Asset Management and
Insurance, and Global Wholesale Banking.
About ABN Amro
Headquartered in Amsterdam, ABN AMRO Holding N.V. is the
ultimate parent company of the ABN AMRO consolidated group of
companies. It provides a range of financial services on a
worldwide basis, including consumer, commercial and investment
banking. Its group structure comprises: seven Client business
units (BUs), three Product Bus, two cross-BU Segments, Group
Functions and Services.
About ABN Amro Real
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.
JAPAN AIRLINES: To Book JPY20 Billion in Anticipated Losses
-----------------------------------------------------------
Japan Airlines International Co., Ltd., expects to book about
JPY20 billion in losses in anticipation of a potentially huge
fine for its apparent involvement in an international airfare
cartel, sources of The Asahi Shimbun revealed.
The Asahi Shimbun writes that this comes after the U.S. Justice
Department fined British Airways Plc and Korean Air Lines Co.
US$300 million each (about JPY36 billion) in August for fixing
the prices of passenger and cargo flights with other airlines to
set fuel surcharges due to oil price hike.
Reportedly, U.S. authorities have indicated that other airlines
could face heavy fines as the investigations are ongoing.
One executive of the Tokyo-based airline said to Asahi Shimbun,
that no provision had been set aside by JAL for anticipated
losses due for the fine because the company was not able to
"even predict the amount involved."
JAL, which has seen a decrease in the number of passengers due
to a string of flight mishaps, said that it will include the
JPY20 billion in losses in its Nov. 6 announcement in its
financial results for the first half of the current fiscal year,
notes Asahi Shimbun. The article conveys that JAL, before
making the announcement, will discuss the details with its
auditing company.
However, according to the report, JAL is projecting a
consolidated net profit of JPY7 billion for the year ending
March 2008 despite the fact that the JPY20 billion in loss will
eat into the projected profit. According to the sources, JAL
officials maintain the company will be able to avoid a downward
revision due to the sale of its assets and other measures that
will counter the losses, states Asahi Shimbun.
About Japan Airlines
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
The Troubled Company Reporter - Asia Pacific reported on
Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed
its 'B+' long-term corporate credit and issue ratings on Japan
Airlines Corp. (B+/Negative/--) following the company's
announcement of its new medium-term management plan. The
outlook on the long-term corporate credit rating is negative.
The TCR-AP reported on Oct. 10, 2006, that Moody's Investors
Service affirmed its Ba3 long-term debt ratings and issuer
ratings for both Japan Airlines International Co., Ltd and Japan
Airlines Domestic Co., Ltd. The rating affirmation is in
response to the planned restructuring of the Japan Airlines
Corporation group on Oct. 1, 2006 with the completion of the
merger of JAL's two operating subsidiaries, JAL International
and Japan Airlines Domestic. JAL International will be the
surviving company. The rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
PARANA BANCO: Acquires 3.37 Million Shares in J Malucelli
---------------------------------------------------------
Parana Banco's investor relations coordinator, Mauricio
Fanganiello, told Business News Americas that the bank has
acquired 3.37 million shares in insurer J Malucelli.
This is the first stage of a share swap with investment fund
Advent International, BNamericas says, citing Mr. Fanganiello.
Mr. Fanganiello told BNamericas that Parana Banco acquired last
week about 800,622 common shares and some 2.57 million preferred
shares in J Maulcelli. The bank is awaiting the insurance
regulator Susep's permission to acquire additional 2.15 million
common shares and 1.64 million preferred shares.
According to BNamericas, Parana Banco will grant Advent
International some 4.57 million in non-voting shares, or 6.60%
of its share capital, in return.
Parana Banco launched an initial public offering in June 2007.
It set up the share swap with Advent International to regain
control of J Malucelli, BNamericas states.
About Advent International
Buyout firm Advent International invests in companies in a
variety of industries in North America and Western Europe.
Target firms use the company's infusions of cash (up to $500
million) for international expansion, restructuring, or to fuel
high-growth sub-sectors. Advent International finances
companies in developing markets such as Central Europe, Brazil,
and Argentina to the tune of US$20 million to US$60 million.
The company also provides venture capital to companies in the
health care and technology fields. An active investor, Advent
usually liquidates its investment through a sale or an IPO after
three to seven years.
About Parana Banco
Parana Banco is a niche bank in the segment of payroll discount
lending, primarily to public-sector employees. The bank's
adjusted total assets of US$375 million as of June 2006
represented less than 1% of total assets in the Brazilian
banking industry. The bank is a relevant part of a broader
conglomerate (J. Malucelli), with operations in different
sectors and concentrated in the South of Brazil. Standard &
Poor's does not assign ratings to any company in the J.
Malucelli group, and the ratings assigned to the bank do not
incorporate potential support from shareholders.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Standard & Poor's Ratings Services raised its
long-term counterparty credit rating and senior unsecured debt
rating on Parana Banco S.A. to 'B+' from 'B'. The ratings were
removed from CreditWatch Positive where they were placed
June 11, 2007. At the same time, S&P affirmed the 'B' short-
term counterparty credit rating on the bank. S&P said the
outlook is stable.
BANCO NACIONAL: Okays BRL95.4-Million Loan to Nestle Nordeste
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
approved a BRL95.4 million financing to Nestle Nordeste
Alimentos e Bebidas Ltda as a complement to investments made by
the company in its industrial unit of Feira de Santana (BA) and
in its distribution center located at BR-324, located 108 km far
from Salvador -- both already in operation since last February.
The plant at Feira de Santana has a 78.3 thousand tons/year
processing capacity, while the distribution center is able to
outflow 70 thousand tons of food products, as flour and cereals,
per year. BNDES financing was approved within the scope of
Programa de Desenvolvimento Regional [Regional Development
Program] [PDR] and corresponds to 71.4% of the total investment,
of BRL133.6 million.
Based on Nestle's business expansion strategy, the project aims
at adjusting company product offer to regional taste
particularities and to family purchase standards in the
Northeastern region of Brazil. On top of that, the new unit has
increased Nestle's competitiveness as a result of logistic
gains.
Installed in the Industrial Center of Subae, the project
occupies 66 thousand square meters of total constructed area, of
which, 18 thousand square meters for the distribution center,
only. The Northeastern plant enabled local product production,
transfer of packing line and integration of company distribution
network. The industrial unit is especially destined for product
lines manufactured or re-packed at Feira de Santana. The
distribution center, on its turn, integrates with the
distribution network already existing in the Northeast.
The project will enable the expansion of other product lines,
thus meeting the rapid food consumption growth in the Northern
and Northeastern regions of the Country, with over 60 million
inhabitants.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
As reported on Nov. 27, 2006, Standard & Poor's Ratings Services
changed the ratings outlook to Positive from Stable on Banco
Nacional de Desenvolvimento Economico e Social SA's BB Foreign
currency counterparty credit rating and BB+ Local currency
counterparty credit rating.
COMPANHIA ENERGETICA: S&P Ups Corporate Credit Rating to B
----------------------------------------------------------
Standard & Poor's Ratings Services has raised its ratings on
electricity generator Companhia Energetica de Sao Paulo,
including its corporate credit rating to 'B' from 'B-'. At the
same time, S&P raised its Brazil national scale ratings on CESP
to 'brBBB-' from 'brBB'. The outlook remains positive on both
scales.
The upgrade mirrors the improvement in the company's debt
structure after a series of Companhia Energetica's financial
transactions during 2007, which resulted in positive advances in
the company's financial risk profile. During 2007, CESP raised
more than BRL2 billion in the national and international capital
markets to refinance several debts, resulting in a much more
adequate debt profile.
The positive outlook reflects S&P's expectation that CESP will
continue to be successful in its liability management effort and
use its stronger free operating cash flow to pay down debt,
gradually improving credit metrics in line with a 'B+' rating.
Although the change of the capital structure has been positive,
cash flow protection measures are still weak due to the
company's high debt and low prices in its energy contract.
From 2008 onwards, S&P expects the company will successfully
manage its maturities by relying on its cash position and free
cash flow generation. Consequently, financial ratios will
continue improving.
Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao
Paulo is the country's third largest power generator, majority
owned by the State of Sao Paulo. CESP operates 6 hydroelectric
plants with total installed capacity of 7,456 MW and reported
net revenues of BRL1,983 million in the last twelve months
through Sept. 30, 2006.
COMPANHIA PARANAENSE: Joining Federal Highway Auction
-----------------------------------------------------
Companhia Paranaense de Energia President Rubens Ghilardi said
in a statement that the firm will present a bid for one of the
seven stretches of federal highways to be offered under
concession in an auction set for Oct. 9, 2007.
Business News Americas relates that Companhia Paranaense is keen
on the BR-116 highway, which links Curitiba and Florianopolis.
According to BNamericas, Companhia Paranaense already disclosed
its plan to bid for the highway to investors on Sept. 14, 2007.
The firm had wanted to bid for three stretches that cross
Parana. However, the decision to bid for only one highway was
made after a feasibility study was completed last week.
Companhia Paranaense's participation on the tollroad bidding
process would indicate a large number of players in the upcoming
auction, Deutsche Bank equity research team said in a statement.
However, Brazilian tollroad concessionaires association head
Moacyr Servilha Duarte commented to BNamericas, "Being a
publicly listed company, Copel [Companhia Paranaense] would not
bid without financial security."
Companhia Paranaense must make sure it has "a decent rate of
return and as such its bid will not be too aggressive so that
would not be a reason for increased competition," Mr. Duarte
explained to BNamericas.
Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Parana and has a generating capacity of nearly 4,600
MW, primarily from hydroelectric plants. COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services. The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitely postponed. In response, COPEL is
re-evaluating its corporate structure. The government of Parana
controls about 59% of COPEL.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 13, 2006, Moody's America Latina upgraded the corporate
family rating of Companhia Paranaense de Energia aka Copel to
Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its
Brazilian national scale. The rating outlook was stable. This
rating action concludes the review process initiated on
July 26, 2006.
Moody's upgraded these ratings:
-- Corporate Family Rating: to Ba2 from Ba3 (Global Local
Currency) and to Aa2.br from A3.br (Brazilian National
Scale);
-- BRL500 million Senior Unsecured Guaranteed Debentures due
2007: to Ba2 from Ba3 (Global Local Currency) and to
Aa2.br from A3.br (Brazilian National Scale); and
-- BRL400 million Senior Secured Guaranteed Debentures due
2009: to Ba1 from Ba2 (Global Local Currency) and to
Aa1.br from A1.br (Brazilian National Scale).
COMPANHIA SIDERURGICA: In Talks with Pernambuco Over Concession
---------------------------------------------------------------
Companhia Siderurgica Nacional met with Pernambuco state
governor Eduardo Campos on Oct. 4, 2007, to discuss the
Transnordestina railway, Business News Americas reports, citing
a source within the state government.
Published reports say that the Brazilian federal government has
threatened Companhia Siderurgica's railway unit Companhia
Ferroviaria do Nordeste with revoking the concession it holds on
Transnordestina, as Companhia Ferroviaria has yet to contract
the executive project for the railway. The government believes
that the project is too important to fall behind schedule.
BNamericas relates that the existing timeline for the railway
indicates that the project was scheduled for completion in 2010.
Transnordestina will stretch 1,800 kilometers from Ceara's Pecem
port and Pernambuco's Suape port to Eliseu Martins, Piaui.
The source told BNamericas that the meeting for Transnordestina
"was productive, but rough."
Companhia Siderurgica and Governor Campos didn't discuss the
possibility of a possible steel project, BNamericas states,
citing the source. Another government official had said that
the firm would discuss plans to install a steel plant in
Pernambuco during the Oct. 4 meeting, BNamericas states.
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate. The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects. The group also operates in Brazil, Portugal and the
U.S.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 26, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based steel
maker Companhia Siderurgica Nacional. S&P said the outlook is
stable.
DELPHI CORP: Disclosure Statement Hearing Moved to Oct. 25
----------------------------------------------------------
The Hon. Robert Drain of the United States Bankruptcy Court for
the Southern District of New York moved the hearing to consider
approval of the disclosure statement explaining Delphi Corp.'s
plan of reorganization to Oct. 25, 2007, The Associated Press
reports.
Delphi asked the Court at a hearing on October 3 to defer ruling
on the adequacy of the disclosure statement to give the company
time to negotiate for financing to fund the plan, AP says.
Delphi Chairman Robert Miller said the company is very close to
securing a financing deal to fund its chapter 11 plan, The Wall
Street Journal reports. Mr. Miller noted that the turmoil in
credit markets that created financing difficulties for the
company appeared to be settling down, the Journal says. "I am
confident that we will get the funding put together very
shortly," Mr. Miller said.
John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, told the Court at a hearing
Wednesday that the funding may be less than the US$7.1 billion
originally sought.
Mr. Butler also told Judge Drain the Plan will undergo
"laser- like, focused amendments" which may affect creditor
recoveries, the Journal says.
Delphi expects to have a financing commitment letter by the end
of the disclosure hearing, Bloomberg News relates.
Mr. Miller expects the company to emerge from bankruptcy by the
end of the year.
About Delphi
Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Mar. 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period expires on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan. (Delphi Bankruptcy News, Issue No. 88
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
DELPHI CORP: Initiates 707 Adversary Cases Under Seal
-----------------------------------------------------
Delphi Corp. has initiated 707 adversary cases against suppliers
and other business contacts before the U.S. Bankruptcy Court for
the Southern District of New York.
Delphi initially filed:
* 440 lawsuits on Sept. 28, 2007,
* 137 lawsuits on Sept. 29, and
* 130 lawsuits on Sept. 30.
All of the adversary complaints have been filed under seal.
The Debtors obtained permission in August to file the lawsuits
secret. The Debtors want to keep the actions secret to avoid
"unnecessarily alarming potential defendants." The Debtors had
pointed out they have worked to preserve and repair their
business relationship with many of the potential defendants and
have negotiated or regained favorable credit terms with many
suppliers and are continuing to do so.
The Debtors had estimated that they may have more than 11,000
potential preference claims arising from transfers totaling
US$5,800,000,000 without taking into account potential defenses.
According to John Wm. Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom LLP, in Chicago, Illinois, the Debtors'
counsel, the constructively fraudulent transfer reach-back
period, made applicable by Section 544(b) of the Bankruptcy Code
and state law, is generally six years under the law of Michigan
and New York. With a company of Delphi's size, there are
literally hundreds of thousands of transactions that occurred
during those constructively fraudulent transfer reach-back
periods, Mr. Butler had said.
Mr. Butler also had noted that the Debtors initially do not
intend to pursue avoidance actions in light of their anticipated
reorganization. However, as a precautionary measure, the
Debtors must preserve the actions in some manner, he said.
The Court had granted a temporary stay of the adversary
proceedings. The stay would continue until the earlier of
service of process and further Court order. During the stay,
the Debtors may amend their complaint, and after notice to the
statutory committees, dismiss it.
The docket for the adversary proceedings have likewise been
sealed.
The Debtors won't pursue any preference action against an entity
if the aggregate value of transfers to, or for the benefit of,
that entity is less than US$250,000 in value. If the preference
action is against an insider or involves a person or transaction
associated with the U.S. Securities and Exchange Commission
investigation of the Debtors, the Debtors may also abandon the
actions after notice to the Statutory Committees. If a
Statutory Committee objects within 10 days after service of the
notice, the Debtors would bring the matter before the Court for
a ruling on whether the proposed abandonment satisfies Section
554(a) of the Bankruptcy Code.
The Debtors may abandon these categories of preference actions:
* payments to parties with a secured or priority interest in
the payments;
* union dues;
* pension plan contributions;
* payments required under the terms of collective bargaining
agreements;
* payments to reimburse employee business expenses;
* ordinary course wages, salaries, and employee benefits;
* payments required by a garnishment to satisfy third-party
judgments and obligations;
* contributions to charitable organizations; and
* payments to foreign suppliers, shippers, insurance
providers, and utilities.
For purposes of identifying and preserving potential fraudulent
transfer claims, the Debtors considered merger and acquisition
deals at or exceeding US$20,000,000; transfers to Delphi's board
of directors or strategy board members other than for
compensation or ordinary-course expense reimbursements; unusual
securities transactions; dividend distributions to 5%
shareholders; and Delphi's financially troubled supplier
program.
About Delphi
Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ) --
http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Mar. 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period expires on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan. (Delphi Bankruptcy News, Issue No. 88
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
GOODYEAR TIRE: Brazilian Unit Working at Full Capacity
------------------------------------------------------
Rubens Campos, Goodyear Tire & Rubber Company's Brazilian unit
Goodyear do Brasil off-road and agricultural equipment tires
product manager, told Business News Americas that the firm is
working at full capacity due to strong demand from the mining
industry.
Mr. Campos explained to the press that demand is very high and
that there has been no idleness in production.
BNamericas relates that Goodyear do Brasil produces an average
of 250 tires a month measuring for mining purposes at its plant
in Americana, Sao Paulo. The firm exports some of the products
to other Latin American nations.
Mr. Campos commented to BNamericas, "We usually work with a rate
of 50:50 in terms of yearly exports and domestic sales, but
local shipments this year could reach 60% to 70%. We are giving
priority to the Brazilian market."
BNamericas notes that Goodyear do Brasil is launching two new
tires:
-- one targeting underground mining activities, and
-- another on equipment for moving containers at
ports.
Goodyear Tire is positive about demand for coming years from the
mining sector, BNamericas states, citing Mr. Campos. Demand for
off-road would be strong by 2010.
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. Goodyear Tire has marketing operations in almost
every country around the world including Brazil, Chile,
Colombia, Guatemala, Jamaica and Peru in Latin America.
Goodyear employs more than 80,000 people worldwide.
* * *
As reported on June 8, 2007, that Standard & Poor's Ratings
Services raised its ratings on the class A-1 and A-2
certificates from the US$46 million Corporate Backed Trust
Certificates Goodyear Tire & Rubber Note-Backed Series 2001-34
Trust to 'B' from 'B-' and removed them from CreditWatch, where
they were placed with positive implications on May 14, 2007.
The rating actions reflect the May 31, 2007, raising of the
rating on the underlying securities, the 7% notes due
March 15, 2028, issued by Goodyear Tire & Rubber Co., and its
removal from CreditWatch positive.
On March 15, 2007, that Fitch Ratings affirmed ratings for The
Goodyear Tire & Rubber Company and revised the Rating Outlook to
Stable from Negative.
-- Issuer Default Rating 'B';
-- US$1.5 billion first lien credit facility 'BB/RR1';
-- US$1.2 billion second lien term loan 'BB/RR1';
-- US$300 million third lien term loan 'B/RR4';
-- US$650 million third lien senior secured notes 'B/RR4';
-- Senior unsecured debt 'CCC+/RR6'.
Goodyear Dunlop Tires Europe B.V.
-- EUR505 million European secured credit facilities 'BB/RR1'
Moody's Investors Service affirmed Goodyear Tire & Rubber
Company's Corporate Family Rating of B1. Ratings on Goodyear's
existing secured and unsecured obligations were also affirmed,
as was the company's Speculative Grade Liquidity rating of
SGL-2. Moody's reverted the outlook to stable from negative.
HEXCEL CORP: Embarks on US$180-Million Carbon Fiber Expansion
-------------------------------------------------------------
Hexcel Corporation will expand its carbon fiber production
capacity through the addition of both new carbon fiber lines and
a new precursor line. The construction will be completed within
two years, increasing Hexcel's carbon fiber production nameplate
capacity by approximately 70% to a total of about 16 million
pounds. The expansion is needed to meet existing customer
forecasts in commercial aerospace, space & defense and strategic
industrial applications such as the recently announced contract
for rotor tubes for the American Centrifuge Plant.
Commenting on the expansion investment, Mr. David E. Berges,
Hexcel's Chairman and Chief Executive Officer said, "We are
excited by the accelerating demand for carbon fiber composites,
driven by market growth and the increasing penetration of these
materials, particularly in commercial aerospace. As a world
leader in advanced structural materials, Hexcel is committed to
supporting this growth through product development and capacity
expansion. The expansion will cost about US$180 million spread
over 2007, 2008 and 2009. Our team has done an outstanding job
on our first expansion, and the knowledge gained has enabled us
to continue to drive down capital costs per pound and shorten
the time for construction and qualification."
Headquartered in Stamford, Connecticut, Hexcel Corporation
(NYSE: HXL) -- http://www.hexcel.com/-- is an advanced
structural materials company. It develops, manufactures and
markets lightweight, high-performance structural materials,
including carbon fibers, reinforcements, prepregs, honeycomb,
matrix systems, adhesives and composite structures, used in
commercial aerospace, space and defense and industrial
applications.
The company has operations in Australia, Brazil, China, France
and Japan, among others.
* * *
As reported in the Troubled Company Reporter on April 5, 2007,
Moody's Investors Service has raised the ratings of Hexcel
Corporation, Corporate Family Rating to Ba3 from B1. The
ratings on Hexcel's senior secured credit facility have been
upgraded to Ba1 from Ba2, while the subordinated notes ratings
were upgraded to B1 from B3. Moody's said the ratings outlook
is stable.
PROPEX INC: High Leverage Prompts Moody's to Cut Rating to Caa1
---------------------------------------------------------------
Moody's Investors Service has downgraded the Corporate Family
Rating of Propex Inc.'s to Caa1 from B2, reflecting very high
leverage in recent quarters and expectations of very weak
internal cash flow generation in relation to debt obligations in
the near term. The outlook for the ratings, which had been
negative since January 2007, is stable.
Moody's took these rating actions:
-- Downgraded the Corporate Family Rating to Caa1 from B2;
-- Downgraded the Probability of Default Rating to Caa1 from
B2;
-- Downgraded to B2 (LGD2, 29%) from Ba3 (LGD 3, 30%) the
senior secured credit facilities consisting of a US$50
million revolver due 2011, and the original US$260 million
term loan due 2012;
-- Downgraded to Caa2 (LGD 5, 81%) from Caa1 (LGD 5, 82%) the
US$150 million senior unsecured notes due 2012;
The ratings outlook is stable.
The stable outlook reflects the high likelihood of a continuing
core level of demand for the company's products, company's
leading position in its markets, indications of progress with
cost cutting efforts and the company's relatively low capital
expenditure requirements in the medium term.
The downgrade reflects Moody's expectation of weak interest
coverage at least through 2008 in line with the Caa1 rating
category and long-term structural industry trends, which include
overcapacity and competitive pressures. The ratings also take
into account the long-term effects of the backward integration
into carpet backing by the larger carpet manufacturers that took
place in 2005 and 2006. These longer-term threats are
exacerbated by cyclical but ongoing weakness in residential
construction and its effect on demand for carpet backing and
other end products, potential for adverse raw material
fluctuations and the need for error-free execution to navigate
this period. Propex's ratings are supported by leadership
positions in its principal markets and aggressive moves to cut
costs.
Notwithstanding the company's likely non-compliance with
financial covenants as of Sept. 30, 2007, Moody's believes that
covenant relief will be provided by the lender group at levels,
which recognize current cyclical weakness in the company's
principal end markets and the temporary nature of some of the
expense drivers. Failure to obtain such relief will result in
an immediate downgrade.
The Speculative Grade Liquidity Rating was also downgraded to
SGL-4 from SGL-2, subject to covenant relief.
Propex Inc., based in Chattanooga, Tennessee is the world's
largest independent producer of primary and secondary carpet
backing and a leading manufacturer and marketer of woven and
nonwoven polypropylene fabrics and fibers used in geosynthetic
applications and a variety of other industrial applications such
as fabric bags/containers, fabric protective coverings and
concrete fiber reinforcement. The company became a stand-alone
company following the acquisition of the BP Fabrics and Fibers
Business of BP p.l.c by The Sterling Group, L.P., Genstar
Capital, L.P., Laminar Direct Capital, L.P., Paribas North
America Inc. and members of management in December 2004. The
company has manufacturing operations in North America, Europe
and Brazil. Sales for the last 12 months ending Sept. 30, 2006,
were US$646 million.
PROPEX INC: S&P Places B- Corp. Credit Rating on Watch Negative
---------------------------------------------------------------
Standard & Poor's Services has placed Propex Inc's 'B-'
corporate credit and its senior secured and senior unsecured
ratings on CreditWatch with negative implications.
"The CreditWatch listing reflects ongoing concerns that
difficult operating conditions are likely to forestall Propex's
ability to meaningfully improve its highly leveraged financial
profile," said S&P's credit analyst Henry Fukuchi.
Recent operating challenges at a key production facility, weak
residential construction activity and the possibility for
further declines in the domestic housing markets could cause
earnings and cash flow to deteriorate to a level inconsistent
with the current ratings. In addition, Propex announced that it
is unlikely to be in compliance with the financial covenants
contained within its credit agreement as of the reporting date
for its Sept. 30, 2007, quarter end. While Propex's liquidity
position is bolstered by decent cash balances and credit
facility availability, the probably of a covenant violation is a
concern.
"We expect that Propex will take steps to negotiate relief so
that it will preserve acceptable liquidity while it implements
plans to restore operating results to acceptable levels," Mr.
Fukuchi said. "We will resolve the CreditWatch upon indication
that the risk of covenant violations has been addressed and
after reviewing the company's prospects for improving its subpar
financial profile. Further indication that weak operating
results will extend into 2008 or failure to obtain covenant
relief could result in a downgrade this year."
Propex Inc., based in Chattanooga, Tennessee is the world's
largest independent producer of primary and secondary carpet
backing and a leading manufacturer and marketer of woven and
nonwoven polypropylene fabrics and fibers used in geosynthetic
applications and a variety of other industrial applications such
as fabric bags/containers, fabric protective coverings and
concrete fiber reinforcement. The company became a stand-alone
company following the acquisition of the BP Fabrics and Fibers
Business of BP p.l.c by The Sterling Group, L.P., Genstar
Capital, L.P., Laminar Direct Capital, L.P., Paribas North
America Inc. and members of management in December 2004. The
company has manufacturing operations in North America, Europe
and Brazil. Sales for the last 12 months ending Sept. 30, 2006,
were US$646 million.
REALOGY CORPORATION: Signs License Deal with Meredith
-----------------------------------------------------
Realogy Corporation has entered into a long-term agreement to
license the Better Homes and Gardens(R) Real Estate brand from
Meredith Corporation, one of the nation's leading media and
marketing companies. Realogy intends to build a new
international residential real estate franchise company using
the Better Homes and Gardens(R) Real Estate brand name.
"We are very pleased to add Better Homes and Gardens Real Estate
to our family of real estate companies, and we are equally proud
to be entrusted by Meredith with the stewardship of this well-
known and respected brand that is so deeply tied to the concept
of owning and improving one's home," said Richard A. Smith,
Realogy's vice chairman and president. "Looking more broadly,
this agreement demonstrates our confidence in the long-term
strength of the housing market, particularly in the U.S., and
the favorable demographic factors that will continue to drive
homeownership and household growth during the years and decades
to come."
The licensing agreement between Realogy and Meredith is for a
50-year term, with a renewal option for another 50 years.
Financial terms of the transaction were not disclosed, and the
transaction is not expected to have an immediate material impact
on Realogy's financial results. Meredith will receive ongoing
license fees based upon the royalties that Realogy earns from
franchising the Better Homes and Gardens Real Estate brand.
Meredith, owner of an 85-million name consumer database, will
offer Realogy selected database services.
Realogy plans a July 1, 2008 launch of the Better Homes and
Gardens Real Estate franchise system and will engage in various
pre-launch activities in the interim.
"This is a tremendous opportunity to capitalize on the power of
America's leading consumer magazine brand on behalf of the
world's most successful real estate franchise company," said
Meredith President and Chief Executive Officer Stephen M. Lacy.
"It fits extremely well with our strategic objective to further
diversify our business by providing Meredith with significant
sources of revenue not dependent on traditional advertising."
"Better Homes and Gardens Real Estate is a highly strategic
addition to Realogy's premier portfolio of real estate franchise
holdings, a brand that comes with well-established equity and
one that we expect will compete well in the marketplace," added
Mr. Smith.
The Better Homes and Gardens name has been a staple in American
life ever since 1924 when Meredith first published the magazine
under that masthead. Today, the magazine boasts a circulation
of 7.6 million and a readership of nearly 40 million. In 1978,
Meredith launched the former Better Homes and Gardens Real
Estate service, which it owned and operated for 20 years, and
grew the business into a highly respected name in the real
estate industry. Meredith sold its real estate business in 1998
while retaining ownership of the Better Homes and Gardens Real
Estate brand name.
Better Homes and Gardens Real Estate will become Realogy's fifth
residential real estate franchise brand and sixth overall.
Today, Realogy owns the CENTURY 21(R), Coldwell Banker(R) and
ERA(R) residential real estate brands, along with a commercial
real estate franchise system in Coldwell Banker Commercial(R).
Realogy also has a similar long-term licensing agreement with
Sotheby's Holdings, Inc. to license the Sotheby's International
Realty(R) name, a relationship that began in February 2004 and
has grown to approximately 400 franchise and company-owned
offices globally with more than 8,000 agents around the world.
"We have more than a decade of experience in managing world-
class real estate brands that compete successfully in the local
marketplace, and we also recognize that there is ample room for
continued growth in the industry," said Alex Perriello,
president and CEO of the Realogy Franchise Group. "We believe
that there are substantial domestic and international growth
opportunities in real estate franchising, and Better Homes and
Gardens Real Estate will help us accelerate that growth."
The National Association of Realtors(R) (NAR) 2006 Profile of
Real Estate Firms reported that 77% of residential real estate
brokerages and 45% of real estate agents are unaffiliated with
any franchise. Furthermore, the same NAR survey showed the
value of franchising in that 88% of real estate firms reported
that their franchise affiliation improved their name
recognition; 83% reported a beneficial impact on their ability
to acquire listings; and 72% reported that their franchise
affiliation contributed to an increase in profits.
About Meredith Corp.
Meredith Corporation -- http://www.meredith.com/-- is one of
the nation's leading media and marketing companies with
businesses centering on magazine and book publishing, television
broadcasting, integrated marketing and interactive media. The
Meredith Publishing Group features 25 subscription magazines --
including Better Homes and Gardens, Ladies' Home Journal, Family
Circle, Parents, American Baby, Fitness and More -- and
publishes more than 200 special interest publications under
approximately 80 titles. Meredith has more than 400 books in
print. Meredith owns 13 television stations, including
properties in top-25 markets Atlanta, Phoenix and Portland, OR.
Meredith has an extensive online presence that includes more
than 40 Web sites and two broadband channels - Better.tv and
Parents.tv.
About Realogy Corp.
Headquartered in Parsippany, N.J., Realogy Corporation
(NYSE: H)-- http://www.realogy.com/-- is real estate franchisor
and a member of the S&P 500. The company has a diversified
business model that also includes real estate brokerage,
relocation, and title services. Realogy's world-renowned brands
and business units include CENTURY 21(R), Coldwell Banker(R),
Coldwell Banker Commercial(R), ERA(R), Sotheby's International
Realty(R), NRT Incorporated, Cartus, and Title Resource Group.
Realogy has more than 15,000 employees worldwide. The company
operates in Australia, Brazil and France.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 13, 2007, Standard & Poor's Ratings Services lowered and
removed from CreditWatch Negative its issue-level rating on
Realogy Corp.'s previously senior unsecured notes that were part
of the company's capital structure prior to the April 2007 going
private acquisition of the company by Apollo Management L.P.
SYNIVERSE TECH: Bags Saudi Telecom Anti-Fraud Contract
------------------------------------------------------
Syniverse Technologies disclosed that Saudi Telecom Company will
implement the most advanced roaming fraud protection available
almost a year ahead of a GSM Association's (GSMA) October 2008
deadline for member companies.
STC will deploy Syniverse DataNet, a solution developed in
conformance with the GSMA's Near Real-Time Roaming Data Exchange
initiative, to ensure data records that track subscriber roaming
activity are exchanged more rapidly between home and visited
operators. Replacing the existing, outmoded High Usage Reports
system with the NRTRDE standard reduces data record exchange
time from 36 to 4 hours, enabling operators to spot fraudulent
activity much more rapidly and reduce potential fraud losses by
up to an estimated 90 percent.
"STC plays a leading role in the growing Middle Eastern mobile
market, and we have been proactive in providing the most secure
roaming environment that we can for subscribers," said Mohamed
Alageel, General Manager of Information Technology at Saudi
Telecom, Aljawal, STC. "Syniverse was the clear choice for this
vital project because it has the necessary roaming systems
experience coupled with an outstanding roaming fraud solution
developed to be the new benchmark for anti-fraud excellence."
The NRTRDE standard was developed by the GSMA to effectively
combat the growing threat of International Revenue Share Fraud
and to help operators the world over benefit from a far more
accurate and timely view of how their networks are performing
against fraud. With NRTRDE, the visited (roaming) network will
be required to forward call data records to the subscriber's
home operator within four hours of the call end time, closing
the roaming fraud window that currently is open on operator
networks that use HUR. If the visited operator is unable to get
this information to the home operator in time, the visited
operator will be liable for any fraud associated with those
calls.
Eugene Bergen, Executive Vice President, EMEA, Syniverse, said
reducing revenue lost due to roaming fraud leads to
corresponding one-to-one increases in operator profitability for
STC and, equally important, a more secure roaming environment
for its subscribers. STC, which has been a Syniverse customer
since 2004, chose Syniverse due to its technology leadership,
commitment to customer service and understanding of operators'
business needs.
"STC clearly understands that time matters when it comes to
combating roaming fraud, and that the sooner an NRTRDE solution
is implemented, the better protected both STC and subscribers
will be when they are roaming," Mr. Bergen said. "We see other
GSM operators globally are quickly following STC's lead and
implementing NRTRDE in accordance with the GSMA's guidelines to
remain competitive as other operators worldwide upgrade their
fraud detection capabilities."
Syniverse, whose DataNet NRTRDE solution ensures operators are
in full compliance with the new GSMA standard, has played a
leading role in the creation of industry standards for fraud
prevention. Syniverse chairs both the GSMA Transferred Account
Data Interchange Group (TADIG), which is responsible for NRTRDE
technical specifications, and the NRTRDE Interworking Group
(NRTIG), which is responsible for NRTRDE interworking procedures
between vendors. Syniverse is the official author and editor of
TD.35, a key technical specification that ensures NRTRDE data
can be quickly and easily actioned by operators who are eager to
reduce fraud.
STC also relies on Syniverse's:
-- ACCESS S&E(R) GSM Clearinghouse Services to ensure all
data records are cleared between STC and its many roaming
partners in a rapid, accurate and cost-effective manner;
-- MMS Interworking Gateway (MMS-IG) Hubbing Service, which
allows STC to increase its multimedia messaging service
(MMS) revenues by solving business and technical issues
associated with delivering MMS off-network and between
operators; and
-- INPackSM, Syniverse's GRX network solution that allows STC
subscribers seamless access to their data network while
roaming nationally and internationally.
About STC
Saudi Telecom Company -- http://www.stc.com.sa/-- is the
largest mobile operator in MENA and is the incumbent telecom
provider in Saudi Arabia. STC has more than 15 million mobile
customers and more than 400 global roaming relations. Roaming
services include postpaid, prepaid, GPRS, MMS and 3G services.
Other services provided by STC are PSTN, broadband and ISP
services.
About Syniverse
Syniverse Technologies Inc. in Tampa, Florida (NYSE: SVR)
-- http://www.syniverse.com/-- provides technology services for
wireless telecommunications companies. Its integrated suite of
services include technology interoperability services, which
enable the invoicing and settlement of domestic and
international wireless roaming telephone calls and wireless data
events; SMS and MMS routing and translation services between
carriers; and interactive video and mobile broadband solutions,
prepaid applications, and roaming services. Celebrating its
20th anniversary in 2007, Syniverse has offices in major cities
around the globe. Syniverse is ISO 9001:2000 certified and TL
9000 approved, adhering to the principles of customer focus and
quality improvement practices. The company has offices in the
Netherlands, Brazil and China.
* * *
As reported in the Troubled Company Reporter on June 29, 2007,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating, along with its stable outlook, and its 'B' senior
subordinated debt rating on Tampa, Florida-based Syniverse
Technologies Inc. At the same time, Standard & Poor's assigned
its 'BB' bank loan rating and '2' recovery rating to Syniverse's
proposed US$489 million senior secured bank facility. The bank
loan rating, which is one notch above the corporate credit
rating, along with the '2' recovery rating, reflect our
expectation for substantial (70%-90%) recovery of principal by
creditors in the event of a payment default.
TELE NORTE: Telemar to Purchase Preferred Shares on Oct. 11
-----------------------------------------------------------
Telemar Participacoes S.A. -- TmarPart, offers to purchase any
and all outstanding preferred shares, including those
represented by American Depositary Shares of Tele Norte Leste
Participacoes S.A.
In a filing with the U.S. Securities and Exchange Commission,
TmarPart will buy the shares at BRL45 per piece through an
"auction" on the Sao Paulo Stock Exchange (Bolsa de Valores de
Sao Paulo) on Oct. 11 at 1:15 p.m., Brasilia time.
American Depositary Shares holders can participate in the tender
offer by:
i) transmitting their ADS to The Bank of New York, as
receiving agent, and instructing the receiving agent to
tender the preferred shares underlying those ADSs in the
tender offer on their behalf or
ii) surrendering their ADSs to The Bank of New York, as ADS
depositary, withdrawing the preferred shares underlying
the ADSs from the ADS program and participating directly
in the tender offer as holders of preferred shares, in
which case holders need to allow sufficient time to
complete all required steps described in this amended
offer to purchase.
This tender offer can be accepted and tendered shares can be
withdrawn by holders of ADSs through The Bank of New York by
10:00 a.m., New York City time, and holders of preferred shares
tendering directly must qualify their preferred shares for the
Auction by 6:00 p.m., Brasilia time -- in each case on
Oct. 10, 2007.
Funding
TmarPart needs BRL11,463,651,000 to purchase all of Tele Norte's
preferred shares based on the exchange rate on Sept. 19, 2007,
the filing said.
According to Agencia Estado, Brazil's national development bank,
Banco Nacional de Desenvolvimento Economico e Social, has
pledged to invest BRL1.25 billion in TmarPart. The bank will
act on its pledge if TmarPart will have trouble extending the
bridge loan's repayment deadline.
Banco Nacional owns 25% of TmarPart.
The bank's commitment has helped TmarPart to obtain a BRL12.7
billion bridge loan from JPMorgan, ABN Amro, UBS, Citibank and
Banco do Brasil, Agencia Estado relates.
TmarPart IR director Fabio Schvartsman told Agencia Estado that
the capital injection from Banco Nacional is necessary to carry
out the buyout offer. After the tender offer is completed,
TmarPart will offer its shares in an initial public offering,
the proceeds of which will be used to restructure the bridge
loan.
Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America. The
company markets its services under its Telemar brand name. Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.
As reported on April 27, 2007, Standard & Poor's placed on
CreditWatch with negative implications the 'BB+' corporate
credit rating on Tele Norte Leste Participacoes S.A. The
creditwatch resulted from TmarPart's decision to buy out its
holding company's preferred shares.
WEIGHT WATCHERS: June 30 Balance Sheet Upside-Down by US$991,266
----------------------------------------------------------------
Weight Watchers International Inc.'s consolidated balance sheet
at June 30, 2007, showed US$1.04 billion in total assets and
US$2.04 billion in total liabilities, resulting in a US$991,266
total stockholders' deficit.
The company's consolidated balance sheet at June 30, 2007,
further showed strained liquidity with US$202.1 million in total
current assets available to pay US$2.04 billion in total current
liabilities.
The company reported net income of US$58.0 million in the second
quarter ended June 30, 2007, versus US$57.9 million in the
second quarter of 2006. During the first quarter of 2007, the
company increased its debt level primarily to finance its self-
tender and repurchase of 19.1 million shares. Accordingly,
interest expense in the second quarter of 2007 was US$29.0
million, up from US$11.5 million in the second quarter of 2006,
while fully diluted shares of the company decreased to 79.4
million shares from 100.2 million shares in the second quarter
of 2006.
For the second quarter of 2007, net revenues increased 20% or
US$65.2 million to US$386.3 million, up from US$321.1 million in
the second quarter of 2006. Fully diluted earnings per share
were US$0.73 in the second quarter of 2007 versus US$0.58 in the
prior year period, up 26%. During the second quarter of 2006,
the company completed the refinancing of its debt and incurred
an early extinguishment of debt charge of US$0.01 per fully
diluted share. Excluding this non-recurring expense, fully
diluted earnings per share were US$0.59 for the second quarter
of 2006.
First Half 2007 Results
For the first half of 2007, net revenues increased 18.5% or
US$122.6 million to US$785.7 million, up from US$663.1 million
in the first half of 2006. Fully diluted earnings per share
were US$1.36 in the first half of 2007 versus US$1.14 in the
prior year period. Excluding from the first half of 2007 and the
first half of 2006, US$0.02 per share and US$0.01 per share,
respectively, of non-recurring expense associated with the early
extinguishment of debt, fully diluted earnings per share were
US$1.38 for the first half of 2007 as compared to US$1.15 in the
prior year period, up 20%.
During the first half of 2007, net income was US$111.8 million
versus US$114.9 million in the first half of 2006. Interest
expense in the first half of 2007 was US$54.3 million, up from
US$22.8 million in the first half of 2006, while average fully
diluted shares of the company decreased.
Commenting on results, David Kirchhoff, president and chief
executive officer, said, "I am pleased with our strong second
quarter results which benefited from the continued positive
impact of our Monthly Pass committment plan in North America,
robust product sales around the world and the expanding
awareness of our Weight Watchers Online Internet product. We
are now focused on taking meaningful steps to bring new energy
to the brand with more effective and differentiated marketing,
which we believe will support our continued growth into 2008 and
beyond."
Full-text copies of the company's consolidated financial
statements for the quarter ended June 30, 2007, are available
for free at http://researcharchives.com/t/s?2419
About Weight Watchers
Headquartered in New York City, Weight Watchers International
Inc. (NYSE: WTW) -- http://www.weightwatchersinternational.com/
-- provides weight management services, with a presence in 30
countries around the world, including Brazil, the Netherlands,
and New Zealand. The company serves its customers through
Weight Watchers branded products and services, including
meetings conducted by Weight Watchers International and its
franchisees.
* * *
In August 2001, Moody's Investor Services placed Weight Watchers
International Inc.'s long term corporate family and bank loan
debt ratings at "Ba1". These ratings hold to this date.
* BRAZIL: Will Use More Ethanol than Gasoline by 2020
-----------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA Chief
Executive Officer Jose Sergio Gabrielli told Business News
Americas that the nation will use more ethanol than gasoline by
2020 for the first time.
Mr. Gabrielli commented to BNamericas, "Fuels for light vehicles
in future will come more from agriculture than oil extraction,
production and refining."
According to BNamericas, Mr. Gabrielli is positive that flex-
fuel cars will lead the growth of ethanol use. They will
account for 72% of all light vehicle sales in Brazil by 2020.
Meanwhile, Brazil's 25% mandatory admixture in gasoline will
increase demand, BNamericas states, citing Mr. Gabrielli.
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
===========================
A&Q SELECT (FEEDER): Proofs of Claim Must be Filed by Nov. 1
------------------------------------------------------------
A&Q Select Funds - Opportunistic (Feeder) Limited's creditors
are given until Nov. 1, 2007, to prove their claims to Stuart K.
Sybersma and Ian A. N. Wight at Deloitte, 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.
A&Q Select's sole shareholder decided on Sept. 11, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Stuart Sybersma
Ian A. N. Wight
Deloitte
c/o Mervin Solas
P.O. Box 1787 George Town
Grand Cayman, Cayman Islands
Tel: (345) 949 7500
Fax: (345) 949 8258
A&Q SELECT (LIMITED): Proofs of Claim Filing Deadline Is Nov. 1
---------------------------------------------------------------
A&Q Select Funds - Opportunistic Limited Limited's creditors are
given until Nov. 1, 2007, to prove their claims to Stuart K.
Sybersma and Ian A. N. Wight at Deloitte, 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.
A&Q Select's sole shareholder decided on Sept. 11, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Stuart Sybersma
Ian A. N. Wight
Deloitte
c/o Mervin Solas
P.O. Box 1787 George Town
Grand Cayman, Cayman Islands
Tel: (345) 949 7500
Fax: (345) 949 8258
ADMC ABSOLUTE: Holding Final Shareholders Meeting on Nov. 1
-----------------------------------------------------------
ADMC Absolute Return Strategies Offshore, Ltd. will hold its
final shareholders meeting on Nov. 1, 2007, at 10:00 a.m. at:
Ogier, Attorneys
Queensgate House, South Church Street
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process and how the property
has been disposed of to the date of the final winding-up
on Nov. 1, 2007; and
2) authorizing the liquidator of the company 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 liquidator can be reached at:
Ogier, Attorneys
Attention: Colin J. MacKay
Queensgate House, South Church Street
Grand Cayman, Cayman Islands
Telephone: (345) 949 9876
Fax: (345) 945 8604
ASTPRELUDE FUND: Last Day To File Proofs of Claim Is Nov. 1
-----------------------------------------------------------
Astprelude Fund Ltd.'s creditors are given until Nov. 1, 2007,
to prove their claims to S.L.C. Whicker K.D. Blake at KPMG, 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.
Astprelude's sole shareholder decided on Aug. 31, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
S.L.C. Whicker
K.D. Blake
KPMG
P.O. Box 493
Grand Cayman KY1-1106
Cayman Islands
For inquiries, you may contact:
Gundega Tamane
P.O. Box 493
Grand Cayman KY1-1106
Cayman Islands
Tel: 345-949-4800
Fax: 345-949-7164
BANK OF AYUDHYA: Will Pay Interest for Debentures on Nov. 4
-----------------------------------------------------------
Bank of Ayudhya PCL will make interest payments for its
Subordinated Debentures due 2013 on Nov. 4, 2007, at a rate of
4% per annum for the 92-day period from Aug. 5 until
Nov. 4, 2007.
Only debenture holders of record as of October 22 will be
entitled to receive interest payments on the debentures.
Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of
banking and financial services. The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches. It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.
Bank of Ayudhya's subordinated debts carry Fitch Ratings
Services' BB+ rating.
BANK OF AYUDHYA: Affiliate to Expand to Bancassurance Next Year
---------------------------------------------------------------
Ayudhya Insurance PCL expects to expand into bancassurance and
motor insurance next year to take advantage of Bank of Ayudhya
PCL's branches and GE Capital's presence in auto leasing, the
Bangkok Post reports.
Ayudhya Insurance is an affiliate of BAY, of which GE Capital is
a major shareholder.
According to the Post, Ayudhya Insurance's president, Adisorn
Tantianankul, said they will work more closely with BAY next
year for the planned venture, and that they are studying joint
direct marketing with their affiliates.
The company expects premiums of THB150 million at this year's
end from bancassurance as a result of its focus on insurance
products, Mr. Adisorn said.
Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of
banking and financial services. The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches. It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.
Bank of Ayudhya's subordinated debts carry Fitch Ratings
Services' BB+ rating.
BANK OF INDIA: Raises INR155 Crore from Perpetual Debt Issue
------------------------------------------------------------
The Bank of India raised INR155 crore by issuing Innovative
Perpetual Debt Instruments (Series 3), the bank informed the
Bombay Stock Exchange.
The bank raised the amount through private placement of the
bonds, which has a face value of INR10,00,000 each.
The bond, callable after 10 years, carries a coupon rate of
10.40% per annum of up to 10 years and 10.90% p.a. after 10
years (if call option not exercised). Interest is paid every
April 1.
The bond is listed in the wholesale debt market segment of
National Stock Exchange of India Ltd.
Headquartered in Mumbai, India, Bank of India --
http://www.bankofindia.com-- 2628 branches in India spread over
all states/ union territories, including 93 specialized
branches. The bank provides a range of financial products and
services, including numerous credit schemes, deposit schemes,
cash management services, credit/debit cards, deposit vaults and
corporate bonds. It also extends finance to small and medium
enterprises and small-scale industries. It provides a variety of
loans, such as mortgage loans, educational loans, auto finance
loans, holiday loans, personal loans and home loans. The bank
offers Internet banking services for both the retail and
corporate clients.
The bank operates in the Cayman Islands, China, the Channel
Islands, France, Hong Kong, Indonesia, Japan, Kenya, Singapore,
the United Kingdom, the United States, and Vietnam.
* * *
Standard & Poor's Ratings Services assigned on March 26, 2007,
its 'BB' issue rating to the bank's Hybrid Tier I notes to be
issued by India's Bank of India (BOI; BBB-/Stable/A-3), acting
through its Jersey branch. These notes are being issued under
the bank's US$1 billion medium-term notes program.
BEAR STEARNS: Court Directs Liquidators to Make US$8-Mln Deposit
----------------------------------------------------------------
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York issued on Sept. 26, 2007, a
written order staying enforcement of an earlier decision denying
the requests of Bear Stearns High-Grade Structured Credit
Strategies Master Fund, Ltd., and Bear Stearns High-Grade
Structured Credit Strategies Enhanced Leverage Master Fund,
Ltd., for protection under Chapter 15 of the Bankruptcy Code,
pending the Funds' appeal from that ruling.
For the stay to take effect, Judge Lifland directed Simon Lovell
Clayton Whicker and Kristen Beighton, the Bear Stearns Funds'
official liquidators, to deposit, with the Court's registry or
in separate bank accounts for each of the Debtors, US$4,000,000
into each Foreign Debtor's depository.
After collection of any proceeds of currently-uncollected
receivables and the liquidation of other assets located in the
United States, Judge Lifland said those U.S. Proceeds will be
deposited into each Funds' Depositories; provided that any
Proceeds (i) from receivables or other assets located outside
the United States or (ii) by operation of the cash management
system of any creditor or financial institution that have only
transitory contact with accounts located in the United States as
an administrative matter or through a clearing process, will not
be required to be deposited in the Depositories.
The Foreign Representatives are not prevented from acting in
their official capacity to pursue and liquidate assets located
in the United States or elsewhere. The Foreign Representatives
may seek modification of the Stay Order, or ask to remove or
withdraw the U.S. Proceeds deposited, or required to be
deposited, in the Depositories.
In the event that Judge Lifland's Decision denying the Funds'
Chapter 15 request is affirmed on appeal, the Foreign
Representatives may remove or withdraw any funds held in the
Depositories.
In the event of any conflict between the terms of the Stay Order
and any order or directive issued by the Grand Court of the
Cayman Islands, the Foreign Representatives will notify the
Bankruptcy Court of any conflict and thereafter submit a
proposal for the coordination of the Bankruptcy Court and the
Grand Cayman Court in resolving any conflict.
Judge Lifland said that the Stay applies in all respects to any
funds deposited in the Depositories.
Grand Cayman, Cayman Islands-based Bear Stearns High-Grade
Structured Credit Strategies Enhanced Leverage Master Fund Ltd.
and Bear Stearns High-Grade Structured Credit Strategies Master
Fund Ltd. are open-ended investment companies, which sought high
income and capital appreciation relative to the London Interbank
Offered Rate, and designed for long-term investors.
On July 30, 2007, the Funds filed winding up petitions under the
Companies Law (2007 Revision) of the Cayman Islands. Simon
Lovell Clayton Whicker and Kristen Beighton at KPMG were
appointed joint provisional liquidators. The joint liquidators
filed for Chapter 15 petitions before the U.S. Bankruptcy Court
for the Southern District of New York the next day.
Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F.
Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent
the liquidators in the United States. The Funds' assets and
debts are estimated to be more than US$100,000,000 each. (Bear
Stearns Funds Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or
215/945-7000)
BEAR STEARNS: Prosecutors Conduct Probe on Funds' Collapse
----------------------------------------------------------
The U.S. Attorney's office in Brooklyn, New York, has launched a
criminal investigation into Bear Stearns High-Grade Structured
Credit Strategies Master Fund, Ltd., and Bear Stearns High-Grade
Structured Credit Strategies Enhanced Leverage Master Fund,
Ltd., The Wall Street Journal said, citing people familiar with
the matter.
The U.S. Attorney's office, according to the Journal, asked for
information related to the Funds, whose collapse cost
approximately US$1,600,000,000. The Journal said the
investigation is still in its early stages and no subpoenas have
been issued yet.
Bear Stearns Cos. is also already under an investigation by the
U.S. Securities and Exchange Commission, the Journal related.
Christopher Clark, Esq., at Dewey & LeBouef, LLP, a defense
attorney not involved in the case, told the Journal that
criminal probes into the trading practices of hedge funds are
rare and cases are difficult to prove.
"It's a tough case to make unless they have turned up some sort
of malfeasance," the Journal quoted Mr. Clark as saying. "The
law assumes the investors are sophisticated and understand the
risks. This was clearly a high-risk investment strategy."
Grand Cayman, Cayman Islands-based Bear Stearns High-Grade
Structured Credit Strategies Enhanced Leverage Master Fund Ltd.
and Bear Stearns High-Grade Structured Credit Strategies Master
Fund Ltd. are open-ended investment companies, which sought high
income and capital appreciation relative to the London Interbank
Offered Rate, and designed for long-term investors.
On July 30, 2007, the Funds filed winding up petitions under the
Companies Law (2007 Revision) of the Cayman Islands. Simon
Lovell Clayton Whicker and Kristen Beighton at KPMG were
appointed joint provisional liquidators. The joint liquidators
filed for Chapter 15 petitions before the U.S. Bankruptcy Court
for the Southern District of New York the next day.
Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F.
Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent
the liquidators in the United States. The Funds' assets and
debts are estimated to be more than US$100,000,000 each. (Bear
Stearns Funds Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or
215/945-7000)
BELMONT UNITED: Creditors Must File Proofs of Claim by Nov. 1
-------------------------------------------------------------
Belmont United Company's creditors are given until Nov. 1, 2007,
to prove their claims to Jose Luis Sucupira, 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.
Belmont United's shareholders decided on Sept. 11, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Jose Luis Sucupira
77 Brickell Ave.
Suite 1100
Miami, FL 33131
Tel: 786-693-8106
Fax: 305-374-2319
COLIN LUKE: Proofs of Claim Must be Filed by Nov. 1
---------------------------------------------------
Colin Luke & Associates (Insurance) Ltd.'s creditors are given
until Nov. 1, 2007, to prove their claims to Nigel Hooper, 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.
Colin Luke's shareholder agreed on Sept. 17, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Colin Luke & Associates (Insurance) Ltd.
c/o Campbells
4th Floor, Scotia Centre
P.O. Box 884 George Town
Grand Cayman
Tel: 345 949 2648
Fax: 345 949 8613
COMPASS LTD: Sets Final Shareholders Meeting for Nov. 1
-------------------------------------------------------
Compass Limited will hold its final shareholders meeting on
Nov. 1, 2007, at 9:00 a.m., at the company's registered office.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Russell Smith
Attention: Sumitra Devi
P.O. Box 2499, George Town
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 946 0820
Fax: (345) 946 0864
ELYSEE LIMITED: Last Day to File Proofs of Claim Is Nov. 1
----------------------------------------------------------
Elysee Limited's creditors are given until Nov. 1, 2007, to
prove their claims to Buchanan Limited, the company's
liquidator, or be excluded from receiving 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.
Pine Investments' shareholders decided on Sept. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
c/o Francine Jennings
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
LAKEPORT INVESTMENTS: Last Day to File Proofs of Claim Is Nov. 1
----------------------------------------------------------------
Lakeport Investments Limited's creditors are given until
Nov. 1, 2007, to prove their claims to Buchanan Limited, the
company's liquidator, or be excluded from receiving 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.
Pine Investments' shareholders decided on Sept. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
c/o Francine Jennings
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
MOTHERROCK ENERGY FUND: Final Shareholders Meeting Is on Nov. 1
---------------------------------------------------------------
Motherrock Energy Fund Limited will hold its final shareholders
meeting on Nov. 1, 2007, at 11:30 a.m. at:
Deloitte
Fourth Floor, Citrus Grove
P.O. Box 1787, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process and how the property
has been disposed of to the date of the final winding-up
on Nov. 1, 2007; and
2) authorizing the liquidator of the company 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 liquidator can be reached at:
Stuart Sybersma
Attention: Mervin Solas
Deloitte
P.O. Box 1787, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 949-7500
Fax: (345) 949-8258
MOTHERROCK ENERGY MASTER: Final Shareholders Meeting Is Nov. 1
--------------------------------------------------------------
Motherrock Energy Master Fund Limited will hold its final
shareholders meeting on Nov. 1, 2007, at 11:00 a.m. at:
Deloitte
Fourth Floor, Citrus Grove
P.O. Box 1787, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process and how the property
has been disposed of to the date of the final winding-up
on Nov. 1, 2007; and
2) authorizing the liquidator of the company 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 liquidator can be reached at:
Stuart Sybersma
Attention: Mervin Solas
Deloitte
P.O. Box 1787, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 949-7500
Fax: (345) 949-8258
NEST FUNDING: Holding Final Shareholders Meeting on Nov. 1
----------------------------------------------------------
Nest Funding Corp. will hold its final shareholders meeting on
Nov. 1, 2007, at:
4-5, Kudanminami 1chome
Chiyada-ku, Tokyo
Japan
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Shinji Arakawa
4-5, Kudanminami 1chome
Chiyada-ku, Tokyo
Japan
NF HOLDING: Will Hold Final Shareholders Meeting on Nov. 1
----------------------------------------------------------
NF Holding Corp. will hold its final shareholders meeting on
Nov. 1, 2007, at:
4-5, Kudanminami 1chome
Chiyada-ku, Tokyo
Japan
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
Shinji Arakawa
4-5, Kudanminami 1chome
Chiyada-ku, Tokyo
Japan
SAILFISH GLOBAL: Proofs of Claim Filing Deadline Is Nov. 1
----------------------------------------------------------
Sailfish Global Equity Master Fund (G3), Ltd.'s creditors are
given until Nov. 1, 2007, to prove their claims to Jan Neveril
and Richard Gordon, 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.
Sailfish Global's shareholders agreed on Aug. 28, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
PINE INTERNATIONAL: Proofs of Claim Filing Deadline Is Nov. 1
-------------------------------------------------------------
Pine International Inc.'s creditors are given until
Nov. 1, 2007, to prove their claims to Jose Luis Sucupira, 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.
Pine International's shareholders decided on Sept. 11, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Jose Luis Sucupira
77 Brickell Ave.
Suite 1100
Miami, FL 33131
Tel: 786-693-8106
Fax: 305-374-2319
PINE INVESTMENTS: Proofs of Claims Must be Filed by Nov. 1
----------------------------------------------------------
Pine Investments Limited's creditors are given until
Nov. 1, 2007, to prove their claims to Buchanan Limited, the
company's liquidator, or be excluded from receiving 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.
Pine Investments' shareholders decided on Sept. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
c/o Francine Jennings
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
SEAGATE TECHNOLOGY: Teams Up with Ubisoft's Frag Dolls(R)
---------------------------------------------------------
Seagate Technology has entered into a yearlong partnership with
Ubisoft's Frag Dolls(R), bringing together the world's best
professional-level female gamers with the world's leading
storage solutions provider. In addition to evangelizing the
thrills of gaming that hard drives enable, the partnership will
include a one-of-a-kind online gaming tournament in which the
winner will take home highly coveted Seagate storage solutions.
"Storage is at the core of the interactive and realistic gaming
experience, especially as gamers download more complex games and
loads of videos, music and game extras," said Rob Pait, director
global consumer electronics marketing at Seagate. "Seagate's
sponsorship with the talented Frag Dolls and Ubisoft proves our
desire to inspire a love of gaming among people of all ages and
genders, as well as to continue to be a force in this market."
As part of the sponsorship, the Frag Dolls will also make guest
appearances at three stops during Seagate's Mall Tour, which
kicks off on October 19 in Minneapolis' Mall of America. The
interactive gaming tour will feature the world's most popular
gaming consoles and Alienware PC gaming kiosks for exciting
tournament play and to showcase the added benefits of using hard
disc drives to achieve the ultimate gaming experience. During
their appearances, the Frag Dolls will meet and greet fans --
before pwning them in some head-to-head tournaments. The
contenders who are skilled enough to avoid getting fragged will
be rewarded with some of Seagate's popular branded products.
"Our years of intense gaming and tech savvy have helped us to
develop a keen appreciation for how good storage solutions can
improve the gaming experience," shared Morgan Romine, Frag Doll
team captain.
"There's nothing more frustrating than having to clear hard
drive space before you can install or download the next hot
game. Partnering with Seagate is the perfect way for us to
support products that are so good at supporting gamers."
The Frag Dolls, a team of nine dedicated female gamers assembled
by game publisher Ubisoft, are recognized as some of the best
players in the world and as advocates for the growing presence
of females in the video game industry. In addition to the
online gaming tournament and appearances at Seagate Mall Tour
stops, members of the elite gaming team will post monthly
columns on the Frag Dolls website, participate in podcasts and
video interviews, and post Blogs with tips and trends on Seagate
storage solutions and the gaming world.
As gamers demand more and more entertainment features from their
PC and console systems, Seagate is there to provide the vital
capacity and horsepower. Hard drive storage delivers the ideal
capacity and multi-stream capability needed to enable features
expected in today's gaming world.
Stay tuned for more information on the online gaming tournament
and the dates and locations of the Frag Doll appearances.
About Ubisoft
Ubisoft -- http://www.ubisoftgroup.com--is a leading producer,
publisher and distributor of interactive entertainment products
worldwide and has grown considerably through a strong and
diversified line-up of products and partnerships. Ubisoft has
offices in 23 countries and sales in more than 55 countries
around the globe. It is committed to delivering high-quality,
cutting-edge video game titles to consumers. Ubisoft generated
sales of 680 million Euros for the 2006-07 fiscal year.
About Frag Dolls
The Frag Dolls are a team of gamers recruited by Ubisoft to
represent their video games and promote the presence of women in
the gaming industry. Started in 2004 by an open call for female
gamers, the Frag Dolls immediately rocketed to the spotlight
after winning the Rainbow Six 3: Black Arrow tournament in a
shut-out at their debut appearance. The Frag Dolls are known
not only for being skilled gamers in multiple titles but for
their advocacy of female gamers -- http://www.fragdolls.com.
About Seagate Technology
Headquartered in Scotts Valley, California, and registered in
Cayman Islands, Seagate Technology (NYSE: STX) --
http://www.seagate.com/-- designs, manufactures and markets
hard disc drives, and provides products for a wide-range of
Enterprise, Desktop, Mobile Computing, and Consumer Electronics
applications.
* * *
Moody's Investors Service has confirmed on July 17, 2006, the
ratings of Seagate Technology HDD Holdings and upgraded the
ratings of Maxtor Corp., now a wholly owned subsidiary of
Seagate Technology US Holdings, following the completion of its
acquisition on May 19, 2006, and subsequent guaranteeing of
Maxtor's debt by Seagate. This concludes the review initiated
by Moody's on Dec. 21, 2005. The review was prompted by the
company's announcement of its intention to acquire Maxtor in an
all-stock transaction for approximately US$1.9 billion. The
ratings outlook is stable.
Moody's confirmed these ratings:
-- Corporate Family Rating: Ba1; and
-- SGL Rating of 1.
Moody's upgraded these ratings:
Seagate Technology HDD Holdings:
-- US$400 million senior notes 8%, due 2009: to Ba1
SMOKY RIVER: Proofs of Claim Filing Ends on Nov. 1
--------------------------------------------------
Smoky River CDO G.P. Co., Ltd.'s creditors are given until
Nov. 1, 2007, to prove their claims to Hugh Thompson and Richard
Gordon, 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.
Smoky River's shareholders agreed on Sept. 20, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Hugh Thompson
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
SUPER H. LIMITED: Creditors Must File Proofs of Claim by Nov. 1
---------------------------------------------------------------
Super H. Limited's creditors are given until Nov. 1, 2007, to
prove their claims to Buchanan Limited, the company's
liquidator, or be excluded from receiving 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.
Super H. Limited's shareholders decided on Sept. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
c/o Francine Jennings
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
===============
C O L O M B I A
===============
KNOLL INC: Moody's Withdraws Ba3 Corporate Family Rating
--------------------------------------------------------
Moody's has withdrawn the ratings of Knoll, Inc. for business
reasons, because Knoll has no rated debt outstanding.
This rating was withdrawn:
-- Corporate family rating of Ba3
Headquartered in East Greenville, Pennsylvania, Knoll Inc.
(NYSE: KNL) -- http://www.knoll.com/-- designs and manufactures
branded office furniture products and textiles, serves clients
worldwide. It distributes its products through a network of
more than 300 dealerships and 100 showrooms and regional
offices. The company has locations in Argentina, Australia,
Bahamas, Cayman Islands, China, Colombia, Denmark, Finland,
Greece, Hong Kong, India, Indonesia, Japan, Korea, Malaysia,
Philippines, Poland, Portugal and Singapore, among others.
POLYONE CORP: To Pay US$15.2 Mil. Remediation Charge in 3rd Qtr.
----------------------------------------------------------------
PolyOne Corporation said Friday that it will take a special
charge in the third quarter of 2007 for remediation costs at a
site located in Calvert City, Kentucky.
PolyOne has been informed of rulings by the United States
District Court for the Western District of Kentucky on several
pending motions in the case of Westlake Vinyls Inc. v. Goodrich
Corporation, et al., which has been pending since 2003. The
Court held that third-party defendant PolyOne must pay the
remediation costs at the former Goodrich Corporation (now
Westlake Vinyls, Inc.) Calvert City facility, together with
certain defense costs of Goodrich Corporation. The rulings also
provided that PolyOne can seek indemnification for contamination
attributable to Westlake.
The environmental obligation at the site arose as a result of an
agreement by PolyOne's predecessor, the Geon Company, at the
time of its spin-off from Goodrich Corporation in 1993, to
indemnify Goodrich for environmental costs at the site. Neither
PolyOne nor the Geon Company ever owned or operated the
facility. Subject to the indemnification and other potential
recovery rights discussed below, PolyOne will make a good faith
payment of certain past remediation invoices. PolyOne currently
estimates that the negative impact on third-quarter 2007 net
income for this payment will be a special charge of
approximately US$15.2 million.
In addition, as a result of the rulings in the litigation, in
accordance with U.S. generally accepted accounting principles,
PolyOne will adjust its environmental reserve from US$59.0
million at June 30, 2007, a portion of which already relates to
the Calvert City site. The uncertainty associated with the
litigation does not make it possible to conclusively determine
what PolyOne's environmental reserve will be upon resolution of
the case, but PolyOne will increase the reserve in the third
quarter of 2007, resulting in a charge of approximately US$18.7
million (after tax) in the third quarter for remediation costs.
Should the rulings stand, PolyOne expects that the annual
additional cash cost for this remediation will be approximately
US$1.5 million to US$2.0 million.
PolyOne retains the right to appeal the decisions in this case,
will vigorously pursue insurance proceeds and reimbursement for
costs incurred to the extent attributable to actions or inaction
by Westlake and will challenge amounts that PolyOne believes
were improperly invoiced by Goodrich Corporation. PolyOne
intends to decrease the environmental reserve in future periods
upon receipt of recoveries from Westlake, applicable insurance
policies or other sources.
About PolyOne Corp.
Headquartered in northeast Ohio, PolyOne Corporation (NYSE: POL)
-- http://www.polyone.com/ -- is a leading global provider of
specialized polymer materials, services and solutions. PolyOne
has operations in North America, Europe, Asia and Australia, and
joint ventures in North America and South America. The company
maintains operations in China, Colombia, Thailand and Singapore.
* * *
As reported in the Troubled Company Reporter on July 13, 2007,
Fitch Ratings upgraded PolyOne Corporation's Issuer Default
Rating to 'BB-' from 'B', Senior unsecured debt and debentures
to 'BB-' from 'B+/RR3', and rating outlook to stable.
===================
C O S T A R I C A
===================
* COSTA RICA: S&P Affirms Low B Foreign & Local Currency Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB' foreign
and 'BB+' local currency long-term credit ratings on the
Republic of Costa Rica.
At the same time, S&P has affirmed its 'B' short-term local and
foreign currency ratings on the Republic.
The outlook on the long-term ratings is stable.
"The recent approval of the DR-CAFTA trade agreement by the
Costa Rican electorate sends a positive signal to the market,
enhancing the country's long-term growth prospects," said
sovereign credit analyst Joydeep Mukherji. "Better and
sustained GDP growth, along with a strengthening of the tax
base, would accelerate the gradual, ongoing improvement in the
sovereign's fiscal and debt profile, potentially strengthening
the sovereign's credit standing."
"Costa Rica's entry into DR-CAFTA, along with the growing
prospect of a free trade agreement between Panama and the U.S.,
sets the ground for a free trade area comprising all of North
America," Mr. Mukherji added. "Trade liberalization between the
countries in Central America is likely to boost investment and
specialization within the region, as well as spur governments to
improve the domestic business climate. Externally, the trade
agreement should shelter the region from possible protectionist
pressures in the US in case its economy decelerates more rapidly
than expected, leading to job losses."
The ratings on Costa Rica reflect good economic growth and
rising tax revenues in 2007, modestly reducing the government's
debt burden. Growth could exceed 6%, helping to cut the general
government debt burden to about 36% of GDP in 2007, down from
49% in 2003. The voter approval of the trade agreement raises
prospects for other reforms that could alleviate long-term
spending pressures and provide the government with funds to
recapitalize the central bank to staunch quasi-fiscal losses.
===================================
D O M I N I C A N R E P U B L I C
===================================
ALCATEL-LUCENT: Says It Has 15 Commercial Contracts & 70+ Pilots
----------------------------------------------------------------
Alcatel-Lucent highlighted its commercial leadership and
momentum in the global WiMAX market during the Broadband World
Forum Europe 2007 trade show and exhibition, taking place in
Berlin, Germany, between October 8 and 11.
The company said it has now secured 15 commercial contracts and
more than 70 pilots and field trials in the most advanced WiMAX
standard, IEEE 802.16e-2005 -- more than any other vendor. It
has been converting trials into commercial contracts at a rate
of two per month for the last six months, a rapid pace of
adoption for Alcatel-Lucent's Rev-e solution, which supports
fixed, nomadic and mobile broadband services.
"We are now working on WiMAX deployments with a range of fixed,
mobile and convergence-minded greenfield operators, in both
established and high-growth markets worldwide," said Karim El
Naggar, head of Alcatel-Lucent's WiMAX activities. "This
demonstrates the breadth and maturity of Alcatel-Lucent's WiMAX
portfolio position as a leading player in this arena. Customers
are adopting our WiMAX solution because it offers them
exceptional performance as well as some of the most advanced
technology on the market, including beam forming and MIMO."
Beam forming, a key feature of the 802.16e standard, is designed
to steer and focus radio signals toward end-user terminals
instead of spreading it in all directions, thereby increasing
signal strength and quality. The results, measured on customer
networks, show that beam forming has improved coverage by up to
50 percent and throughput by up to 30 percent. Moreover, all of
these performance increases are independent of the type of
terminal being used.
Alcatel-Lucent also has successfully demonstrated -- on its
commercial equipment -- simultaneous use, in a single sector, of
two MIMO downlink technologies, space-time block coding and
spatial multiplexing. MIMO space-time block coding enables the
establishment of a more robust WiMAX signal by leveraging
spatial diversity, in turn improving the data rate in adverse
radio conditions up to 30 percent. MIMO spatial multiplexing
increases data rates by sending different signals on each of the
two WiMAX base station antennas, doubling throughput.
"The Alcatel-Lucent WiMAX solution has been designed to smartly
address the two biggest issues of any wireless system deployment
-- coverage and capacity. Initial network rollouts are focusing
on coverage, and beam forming is an efficient means to reduce
the number of required sites compared to traditional network
builds. As subscriber traffic grows, the activation of the MIMO
feature also can significantly increase network capacity. The
net result is sizable and operational expense savings for the
operator," Mr. El Naggar added.
Customer premises equipment for these deployments and field
tests has been provided by participants in Alcatel-Lucent's
WiMAX Open CPE Program, a comprehensive, multi-faceted
technology incubation program designed support the creation,
maturation and evolution of a vibrant WiMAX ecosystem. As
Alcatel-Lucent's commercial momentum grows and its position as a
market leader is solidified, the growth of the Open CPE Program
- in terms of the participation of CPE vendors - has accelerated
as well. Open CPE Program participants include chip suppliers
such as Beceem, Intel, Runcom and Sequans as well as end-user
terminal developers such as C-DOT Alcatel Research Center,
Kyocera, Samsung and ZyXEL.
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 Sept. 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.
ALCATEL-LUCENT: Deploys GPON Solution w/ France's Neuf Cegetel
--------------------------------------------------------------
Alcatel-Lucent will deploy Gigabit Passive Optical Networking
solution for very high-speed services for Neuf Cegetel, France's
alternative service provider.
The project includes building an all-fiber access network,
enabling advanced triple play services -- including HDTV on
multiple TV sets, to enrich user experiences via multimedia
services.
Alcatel-Lucent will also be responsible for project management,
installation, and maintenance services and will provide its
innovative 7342 ISAM FTTU (Fiber to the User) solution,
including the new optical network terminal in the home, the
industry's most compact GPON new optical network terminal.
First deployments began this past summer.
"Neuf Cegetel is currently deploying a FTTx network in various
French cities. Part of this network will rely on GPON
technology and Alcatel-Lucent's strong leadership in this field
will support us in offering advanced triple play services to our
customers, " said Francois Paulus, general manager of Neuf
Cegetel's Broadband division. "It is also essential for us to
deploy a mature solution that can support large-scale
deployments of such very high speed services."
"This contract highlights Neuf Cegetel's renewed confidence in
our access solutions and our ability to support the introduction
of advanced applications such as HDTV," said Olivier Picard,
President of Alcatel-Lucent's Europe and South activities."
With our GPON solution, Neuf Cegetel will benefit from the most
innovative access technology on the market."
This FTTU solution is part of Alcatel-Lucent's ISAM family which
is designed for 100% IPTV and NGN / IMS voice convergence in
access. Moreover, it provides an unsurpassed IPTV experience
with a 5 star rating for video support (Current Analysis report
of January 2007), as well as cost effective migration to packet-
based voice. This robust and proven solution extends the
bandwidth potential of fiber from the network core to the
subscriber premise using the latest GPON recommendations of the
Full Service Access Network (FSAN) group.
Alcatel-Lucent has consistently been acknowledged as the market
leader in broadband access. Alcatel-Lucent remains the
uncontested market leader in broadband access with more than 142
million DSL lines shipped and a cumulative market share of 41%,
more than three times that of its nearest competitor. More than
135 customers have adopted the ISAM product family globally -
including 80% of the top 20 DSL operators in the world.
Alcatel-Lucent is also engaged in more than 60 FTTx projects
around the world, more than 30 of which are with GPON.
About Neuf Cegetel
Neuf Cegetel -- http://www.groupeneufcegetel.fr-- is the
leading alternative operator in France. The company operates
its own national network infrastructure, comprising nearly
45,000 kilometres of optical fibres, and has invested heavily in
the rollout of its DSL access network. This means that Neuf
Cegetel is in a position to produce its own broadband services,
control their costs and quality and sell them directly to 70% of
the target population. Neuf Cegetel has a presence in all
market segments, providing a wide range of innovative services
to residential and corporate customers, and to telecoms and
Internet service providers. Neuf Cegetel, whose two key
shareholders are Louis Dreyfus and SFR, reported revenues of
2,897 million euros in 2006.
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 Sept. 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.
=====================
E L S A L V A D O R
=====================
* EL SALVADOR: Antitrust Regulator Dumps Appeal on Fines
--------------------------------------------------------
El Salvador's antitrust regulator Superintendencia de
Competencia has rejected the appeals by power distributors on
the US$247,080 in fines imposed on them for "abusing" their
dominiant positions, Business News Americas reports.
BNamericas relates that the regulator has reviewed Caess,
Clesa, and Delsur's arguments against the fines.
The regulator concluded the companies breached the antitrust law
by forming obstacles to the entry of competitors or the
expansion of existing ones, BNamericas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 27, 2007, Standard & Poor's Ratings Services affirmed its
'BB+' long- and 'B' short-term sovereign credit ratings on the
Republic of El Salvador. S&P said the outlook remains stable.
=================
G U A T E M A L A
=================
GOODYEAR TIRE: Extends Procurement Outsourcing Deal with ICG
------------------------------------------------------------
The Goodyear Tire & Rubber Company has renewed its contract with
ICG Commerce. The extension of this relationship is a result of
ICG Commerce's ability to meet its commitments and deliver
measurable value. Goodyear engaged ICG Commerce in 2005 as part
of the company's focus on driving cost reductions, one of the
seven key drivers in their corporate strategy to build momentum
and maintain profitable growth through improvements in company
performance.
"Extending our contract with ICG Commerce attests to the success
of the relationship to date," said Ted Augustine, Goodyear's
Director of Purchasing - North American Tire. "Over the past
two and a half years, our joint team has delivered on aggressive
targets that directly support company goals."
Under the three-year extension, ICG Commerce will continue to
assist Goodyear with a full scope of procurement business
process outsourcing services: sourcing, category management and
purchase-to-pay transaction processing for major indirect spend
categories within the company's North American Tire business
unit. The program will continue to support Goodyear's cost
reduction goals by delivering realized savings and increased
efficiencies while allowing the company to focus on core
competencies.
"Goodyear's dedication to driving performance improvements and
efficiencies is impressive," said Carl Guarino, CEO of ICG
Commerce. "We are very pleased to be supporting these efforts
and look forward to contributing to Goodyear's continued
success."
This renewal, which follows recent contract expansions signed
with Greif, Cameron International Corporation and a leading
technology company and new contracts signed with Chiquita Brands
International and a global life science company, highlights ICG
Commerce's ability to help leading companies drive measurable
cost savings, improved visibility and greater control through
its comprehensive procurement outsourcing solutions.
According to market expert IDC, the renewed contracts also
demonstrate a maturation of the procurement services industry
and solidify the concept of leading companies' preference for
choosing specialist providers for procurement outsourcing
engagements. "ICG Commerce's relationships with companies such
as Goodyear, Greif and Chiquita are examples of how leading
companies are looking to specialist procurement outsourcing
providers to help them focus on their core competencies and
improve financial results," said David Tapper, Vice President,
Outsourcing Services Research, IDC.
About ICG Commerce
ICG Commerce -- http://www.icgcommerce.com/-- is the leading
procurement outsourcing specialist delivering comprehensive
source-to-pay as well as strategic sourcing services. Results-
driven leaders access ICG Commerce's experienced resources and
market intelligence to better manage procurement and logistics
spend, gaining significant savings and enhanced visibility and
control.
ICG Commerce is a privately held company founded in 1992 and a
member of Internet Capital Group's (NASDAQ: ICGE) network of
partner companies. The company has earned recognition from
Forbes, Fortune, The International Association of Outsourcing
Professionals (IAOP) and leading industry analysts for its
leadership in procurement outsourcing.
About Goodyear
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. Goodyear Tire has marketing operations in almost
every country around the world including Brazil, Chile,
Colombia, Guatemala, Jamaica and Peru in Latin America.
Goodyear employs more than 80,000 people worldwide.
* * *
As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services raised its ratings on
Goodyear Tire & Rubber Co., including its corporate credit
rating to 'BB-' from 'B+'. In addition, the ratings were
removed from CreditWatch where they were placed with positive
implications on May 10, 2007.
=============
J A M A I C A
=============
SUGAR COMPANY: Five Sugar Factories Incur Almost J$3B in Debt
-------------------------------------------------------------
The Sugar Company of Jamaica's five sugar factories have
reportedly accumulated almost J$3 billion in debt, Radio Jamaica
reports.
These five sugar factories are being put up for divestment:
The five sugar factories under consideration for privatisation
-- Monymusk,
-- Bernard Lodge,
-- Frome,
-- Duckenfield, and
-- Long Pond.
As reported in the Troubled Company Reporter-Latin America on
July 4, 2007, the Sugar Company reportedly received 20
expressions of interests from companies for the purchase of its
five sugar factories. The figure accounts for total offers
received by the divestment committee at the deadline set for
investors to submit pre-qualification bids.
Jamaican Agriculture Minister Christopher Tufton told Radio
Jamaica that some US$2.7 billion is required to prepare for the
2007/2008 Sugar Crop. The US$2.7 billion includes US$1.3
billion for retooling and US$1.4 billion to service debt.
The "social and economic fallout" from the factories'
privatization will be addressed, Radio Jamaica states, citing
Minister Tufton. Discussions have begun with trade unions.
Comprehensive development programs for sugar dependent areas
will also be implemented together with the privatization
process.
Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production. According to published
reports, the Jamaican government has taken responsibility for
the payment of the firm's debts. Radio Jamaica has said that to
date, the five sugar factories have incurred J$3 billion in
debts.
===========
M E X I C O
===========
ATARI INC: Major Stockholder Removes Five Board Members
-------------------------------------------------------
Atari, Inc.'s majority stockholder, California U.S. Holdings,
Inc., a wholly owned subsidiary of Infogrames Entertainment,
S.A., has removed James Ackerly, Ronald C. Bernard, Michael G.
Corrigan, Denis Guyennot, and Ann E. Kronen from the Board of
Directors of Atari via written stockholder consent effective as
of Oct. 5, 2007.
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.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2007, 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.
BEARINGPOINT INC: Bags US$14.1-Mil. Contract from Calif. Agency
---------------------------------------------------------------
BearingPoint Inc. has been awarded a US$14.1 million two-year
contract from the California Department of Motor Vehicles (DMV)
to design, implement and support a new Web portal for the
department. The new portal will improve the overall DMV
experience for California residents, and will help the state
address the Real ID Act, a federally-mandated program to
standardize state driver's licensing and other state
identification.
California's DMV is the nation's largest motor vehicle
department, issuing more than eight million drivers' licenses
and identification cards annually. The DMV also sends 90
million pieces of mail, issues or renews more than 33 million
vehicle registrations and fulfills 135 million requests for
information per year. The new DMV online portal will ensure
that constituents have access to information and services online
through an easy-to-use and comprehensive Web site. As an added
benefit to residents, the system will reduce the need to
physically visit DMV locations, reducing crowding and wait
times.
"BearingPoint has had unprecedented success and experience in
the area of integrated government solutions, including top-rated
Web portals for citizen services," said Gary Miglicco, vice
president of BearingPoint's National Motor Vehicle practice.
"This project will help make California's new DMV Web portal a
more secure, intuitive, and time-saving tool for residents."
About BearingPoint
Headquartered in McLean, Virginia, BearingPoint Inc., (NYSE:
BE) -- http://www.BearingPoint.com/-- provides of management
and technology consulting services to Global 2000 companies and
government organizations in 60 countries worldwide. The firm
has approximately 17,500 employees, and major practice areas
focusing on the Public Services, Financial Services and
Commercial Services markets.
BearingPoint has global locations including in Indonesia,
Australia, Austria, China, India, Japan, Mexico, Portugal,
Singapore and Thailand.
The company reported total assets of US$1.9 billion, total
liabilities of US$2.1 billion, and total stockholders deficit of
US$177.3 million as of Dec. 31, 2006.
DURA AUTOMOTIVE: Plan Confirmation Hearing Set for Nov. 26
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware set a
hearing on Nov. 26, 2007, to consider confirmation of the Plan
of Reorganization filed by DURA Automotive Systems Inc. and its
debtor-affiliates.
The Court approved Oct. 3 the adequacy of the Disclosure
Statement explaining the Debtors' Plan.
A full-text copy of the Amended Plan is available for free at:
http://ResearchArchives.com/t/s?2411
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan
and Korea. It has locations in Europe and Latin America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.
The Debtors' exclusive plan-filing period expired on
Sept. 30, 2007. (Dura Automotive Bankruptcy News, Issue No. 31
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
FGX INT'L: S&P Affirms B Corp. Credit Rating with Stable Outlook
----------------------------------------------------------------
Standard & Poor's Ratings Services has revised its ratings
outlook on optical accessories designer and marketer FGX
International Inc. to stable from negative. At the same time,
S&P affirmed its ratings on the company, including the 'B'
corporate credit rating.
"The outlook revision reflects the company's improving operating
trends and credit protection measures," said S&P's credit
analyst Susan Ding. Sales for the six months ended
June 20, 2007, increased by 29%, reflecting growth in both
sunglasses and optical readers. The company is also
benefiting from a better product mix and cost controls,
resulting in improved margins. Leverage has also declined.
Total debt to EBITDA was 4.2, down from a high point of 5.4 at
the end of fiscal 2005.
FGX is the holding company that owns the FosterGrant and
Magnavision businesses. The company enjoys significant market
share in the sunglass and nonprescription reading glass segments
of the mass channel, and is the largest supplier of popular-
priced eyewear (US$30 retail and less). Because both brands are
mature, FGX acquired several other new brands (both owned and
licensed) that will provide entry into the premium-priced
segment of the market through the specialty and department store
channels.
"We expect the company to improve financial measures and reduce
leverage as it grows," said Ms. Ding.
Based in Smithfield, Rhode Island, FGX International Limited --
http://www.fgx.com/-- is a designer and marketer of non-
prescription reading glasses, sunglasses and costume jewelry
with a portfolio of brands including Foster Grant and
Magnivision. The company has international locations in the
United Kingdom, Canada, China and Mexico.
INTERTAPE POLYMER: Raises US$62.9MM from Common Shares Offering
---------------------------------------------------------------
Intertape Polymer Group Inc. raised a total of US$42,165,060 and
CDN$20,620,699 in its rights offering. Based on current
exchange rates, this represents total proceeds of approximately
US$62.9 million.
As a result, Intertape is issuing an aggregate of 17,969,388
common shares, at issue prices of US$3.44 and CDN$3.61 per
share. There are 58,956,328 Intertape common shares issued and
outstanding.
The net proceeds from the rights offering will be used to reduce
its long-term debt.
"We are pleased with the support shown by our shareholders,"
Melbourne F. Yull, Intertape's executive director, stated. "We
believe the success of the rights offering clearly reflects the
support of our shareholders for the policies and priorities we
have outlined. We are committed to enhancing the value of
Intertape for all of its shareholders by executing our business
plan."
Based in Montreal, Quebec and Sarasota/Bradenton, Florida,
Intertape Polymer Group Inc. (NYSE,ITP; TSX: ITP.TO) --
http://www.intertapepolymer.com/-- develops and manufactures
specialized polyolefin plastic and paper-based packaging
products and complementary packaging systems for industrial and
retail use. The company employs approximately 2,100 employees
with operations in 17 locations, including 13 manufacturing
facilities in North America and one in Europe and in Mexico.
* * *
On Sept. 10, 2007, Standard & Poor's placed Intertape Polymer
Group Inc.'s long-term foreign and local issuer credit ratings
at 'B-'.
MOVIE GALLERY: Prepackaged Chapter 11 Plan Gets Creditors' Okay
---------------------------------------------------------------
Movie Gallery Inc. intends to file for bankruptcy protection
this month after reaching an agreement with lead creditors on a
prepackaged plan, Christopher Witkowsky of the Wall Street
Journal reports citing sources familiar with the matter.
Under the pre-negotiated plan, Movie Gallery would convert its
bonds and part of its second-lien debt to stock, various reports
say.
Last month, Movie Gallery planned to close approximately 520
underperforming and unprofitable Movie Gallery and Hollywood
Video stores, as part of its efforts to conserve cash and reduce
the company's cost structure to address the financial and
industry challenges it has been experiencing.
Movie Gallery retained an outside professional services firm,
the Great American Group, to assist it in conducting sales of
the inventory at the closing stores.
Previously, the company decided to defer payment of interest due
Sept. 10, 2007, under the company's Second Lien Credit
Agreement, which action triggered an event of default.
According to a regulatory filing, as of July, the company had
US$1.2 billion in debt, including US$322 million in bonds,
US$175 million in second-lien debt, and US$600 million in first-
lien debt.
The company's balance sheet at July 1, 2007, showed total assets
of US$892.0 million and total liabilities of US$1.45 billion,
resulting in a US$560.3 million total stockholders' deficit.
The company's consolidated balance sheet further showed strained
liquidity with US$291.1 million in total current assets
available to pay US$1.42 billion in total current liabilities.
For the second quarter ended July 1, 2007, the company reported
a US$309.9 million net loss compared to a US$14.9 million net
loss for the second quarter ended July 2, 2006. Total revenues
for the second quarter were US$561.2 million, a 6.7% decrease
from US$601.3 million in the second quarter of 2006. Decline in
revenues was primarily due to a decline in consolidated same-
store sales and a decrease in the number of weighted average
stores operated.
About Movie Gallery Inc.
Headquartered in Dothan, Alabama, Movie Gallery Inc. (Nasdaq:
MOVI) -- http://www.moviegallery.com/-- is a North American
video rental company with more than 4,550 stores located
in all 50 U.S. states and Canada operating under the brands
Movie Gallery, Hollywood Video and Game Crazy. The Game Crazy
brand represents 606 in-store departments and 14 free-standing
stores serving the game market in urban locations across the
Untied States. Since Movie Gallery's initial public offering in
August 1994, the company has grown from 97 stores to its present
size through acquisitions and new store openings. It operates
over 4,600 stores in the United States, Canada, and Mexico under
the Movie Gallery, Hollywood Entertainment, Game Crazy, and VHQ
banners.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 24, 2007, Standard & Poor's Ratings Services lowered its
corporate credit rating on Dothan, Alabama-based Movie Gallery
Inc. to 'D' from 'CC' based on the company not making its
interest payment on its second-lien term loan by the end of the
specified grace period.
At the same time, S&P lowered the rating on the company's
second-lien term loan to 'D' and affirmed the first-lien and
senior unsecured debt rating of 'CC'. The 'CC' rating level
indicates a high vulnerability to nonpayment.
As reported in the Troubled Company Reporter-Latin America on
Sept. 20, 2007, Moody's Investors Service downgraded Movie
Gallery Inc.'s long term credit ratings, including its corporate
family rating to C from Caa3; probability of default rating to D
from Caa2; rating of the company's US$100 million senior secured
revolving credit facility to Caa1 (LGD2, 18%) from B2 (LGD2,
18%); rating of the company's US$25 million synthetic letter of
credit facility to Ca (LGD4, 55%) from Caa2 (LGD4, 55%); rating
of the company's US$600 million first lien term loan to Ca
(LGD4, 55%) from Caa2 (LGD4, 55%); rating of the company's
US$175 million second lien term loan to C (LGD5, 81%) from Caa3
(LGD5, 81%); rating of the company's senior unsecured notes to C
(LGD6, 95%) from Ca (LGD6, 95%). Moody's said the rating
outlook is stable.
OPEN TEXT: Extends Enterprise Records Management with FaceTime
--------------------------------------------------------------
Open Text(TM) Corporation has extended its lead in records
management with new offerings designed to help organizations
better manage content created in real-time communications
applications such as instant messaging (IM) as well as
incorporate the content into records management and compliance
initiatives. Offered in partnership with FaceTime
Communications, these solutions broaden Open Text offerings for
enterprise records management to encompass all types of
electronic communication.
Companies in all industries, as well as government agencies, are
faced with the daunting task of monitoring and managing legal
and compliance risks associated with rapidly proliferating forms
of electronic communications that now include corporate
intranet-based email, Internet email systems such as Hotmail,
various forms of Web-based communications, such as IM and Skype,
as well as Web 2.0 social networking sites such as MySpace,
blogs and Twitter. Most organizations are still working through
the best way to balance the productivity benefits of social
networks and instant messaging with the potential for risk to
the enterprise. IM conversations can be subject to discovery
just like business documents and therefore must be managed
throughout their lifecycle. Open Text and FaceTime have released
a podcast that explores these challenges companies face.
Open Text and FaceTime provide organizations with the ability to
manage electronic communications currently in use and new forms
that are likely to emerge in the coming years. With FaceTime,
enterprises gain a powerful tool for securing, managing and
monitoring public IM and enterprise IM such as Microsoft Live
Communications Server and IBM Lotus Sametime, as well as
protecting against other greynets that can potentially open the
door to hackers and malware. This capability, integrated with
Open Text's Livelink ECM, allows customers to selectively
retain, archive and destroy IM conversations in order to meet
compliance and eDiscovery requirements.
"Open Text is once again leading the market in innovation. In
partnership with FaceTime, we can now enable customers to
enforce a consistent, centralized policy across all environments
including IM and email," said Peter Lipps, Vice President &
General Manager, Enterprise Records Management Business at Open
Text. "This helps companies minimize the cost and complexity of
storing electronic content for legal and business purposes and
offers the protection necessary for favorable outcomes in the
event of litigation or audits."
FaceTime commands the longest track record of any vendor in the
IM and greynet security market and, according to industry
analyst International Data Corp., has led the IM management
vendor segment in market share in each of the past three years.
The company has more than 900 customers (including nine of the
top 10 U.S. banks) spanning nearly 2.5 million seats.
"End users continue to take business communications into their
own hands, downloading and using real-time collaborative
applications often without a complete understanding of the
risks," said Frank Cabri, Vice President of Marketing and
Product Management for FaceTime. "The challenge is finding the
right balance between enabling employee use of these
applications while minimizing risk to the enterprise. This is
best achieved in the context of broader enterprise compliance
and security initiatives. We believe our collaboration with
Open Text gives us the ability to deliver on that promise."
Open Text will be exhibiting at booth #927 at ARMA
International's 52nd Annual Conference & Expo to be held
Oct. 7 to 10 in Baltimore, Maryland.
About FaceTime Communications
FaceTime Communications -- http://www.facetime.com-- enables
the safe and productive use of instant messaging, Web usage and
Unified Communications platforms. Ranked number one by IDC for
four consecutive years, FaceTime's award-winning solutions are
used by more than 900 customers - including nine of the 10
largest U.S. banks - for security, management and compliance of
real-time communications. FaceTime supports or has strategic
partnerships with all leading public and enterprise IM network
providers, including AOL, Google, Microsoft, Yahoo!, Skype, IBM,
Reuters, and Jabber. FaceTime is headquartered in Belmont,
California. For more information visit the company website or
call 888-349-FACE.
About Open Text
Headquartered in Waterloo, Ontario, Open Text Corp. (NASDAQ:
OTEX, TSX: OTC) -- http://www.opentext.com/-- provides
Enterprise Content Management solutions that bring together
people, processes and information in global organizations. The
company supports approximately 20 million seats across 13,000
deployments in 114 countries and 12 languages worldwide. It has
a field office in Mexico.
* * *
As reported in the Troubled Company Reporter on Sept. 18, 2006,
Moody's Investors Service assigned a first-time Ba3 rating to
the senior secured facilities and B1 rating to the corporate
family of Open Text Corp.
REMY WORLDWIDE: Files Pre-Packaged Bankruptcy in Delaware
---------------------------------------------------------
Remy Worldwide Holdings, Inc., on Monday said that in response
to the overwhelming support received for its previously
announced prepackaged plan of reorganization from holders of its
8-5/8% Senior Notes, 9-3/8% Senior Subordinated Notes and 11%
Senior Subordinated Notes, the company has elected to commence
voluntary proceedings for itself and its domestic subsidiaries
under chapter 11 of the U.S. Bankruptcy Code to seek
confirmation of the plan.
The company filed its voluntary chapter 11 petitions and plan of
reorganization in the U.S. Bankruptcy Court for the District of
Delaware in Wilmington.
Specifically, in excess of 99.9% in dollar amount and 98.1% in
number of holders of Senior Notes and 100% in dollar amount and
100% in number of holders of Subordinated Notes that voted on
the prepackaged plan, voted to approve the plan.
"[Mon]day's action enables us to efficiently restructure our
debt and create a capital structure that will provide a
foundation for future profitability," said John Weber, Remy's
Chief Executive Officer. "Over the last several months, we have
worked closely with our stakeholders to develop and now
implement our plan to position Remy to meet the challenges of
our industry."
During the reorganization process, which is expected to conclude
within 60 days, Remy will continue normal business operations.
The company anticipates that it will receive court authority to
pay employee wages and benefits without interruption and
continue to pay trade creditors and suppliers in the ordinary
course of business. Remy's international operations are
excluded from the filing and will not be directly affected.
The key elements of the prepackaged plan include:
-- Repayment of the company's secured creditors in full.
-- Raise US$85 million in preferred equity through a
backstopped rights offering to be made to holders of the
Company's Senior Notes and Senior Subordinated Notes.
-- Total debt reduction of US$360 million through:
* Exchange of the Company's US$145 million of existing
8-5/8% Senior Notes for US$100 million of New Third-
Lien Notes and US$45 million in cash (plus an amount
of cash equal to the accrued but unpaid interest
through the filing date (estimated to be US$10
million) and up to US$2 million of new preferred stock
in respect of postpetition interest). In addition,
these noteholders will receive a US$10 million consent
fee for agreeing to the overall restructuring.
* Reduction of the company's unsecured debt obligations
by US$315 million by converting the 9-3/8% Senior
Subordinated Notes and 11% Senior Subordinated Notes
into 100% of the common equity of the reorganized
company.
-- Cancellation of all of the Company's existing equity
interests.
As previously disclosed, Remy has obtained a binding commitment
from Barclays Capital, the investment banking division of
Barclays Bank PLC, to provide debtor-in-possession financing for
up to US$225 million and up to US$330 million of long-term exit
financing.
"This is excellent news for our customers, suppliers and
employees worldwide because it paves the way for a promising
future for Remy and its long-term viability," said Mr. Weber.
"We are extremely grateful for the support of all of our
constituents and look forward to completing our financial
restructuring in the coming months."
Headquartered in Anderson, Indiana, Remy Worldwide Holdings,
Inc. acts as a holding company of all the outstanding capital
stock of Remy International Inc. Remy International --
http://www.remyinc.com/-- manufactures, remanufactures and
distributes Delco Remy brand heavy-duty systems and Remy brand
starters and alternators, locomotive products and hybrid power
technology. The company also provides a worldwide components
core-exchange service for automobiles, light trucks, medium and
heavy-duty trucks and other heavy-duty, off-road and industrial
applications. Remy has operations in the United Kingdom, Mexico
and Korea, among others.
REMY WORLDWIDE: Case Summary & 30 Largest Unsecured Creditors
-------------------------------------------------------------
Lead Debtor: Remy Worldwide Holdings, Inc.
2902 Enterprise Drive
Anderson, IN 46013
Bankruptcy Case No.: 07-11481
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Ballantrae Corporation 07-11482
HSG I, Inc. 07-11483
HSG II, Inc. 07-11484
International Fuel Systems, Inc. 07-11485
iPower Technologies, Inc. 07-11486
M. & M. Knopf Auto Parts, L.L.C. 07-11487
Marine Corporation of America 07-11488
NABCO, Inc. 07-11489
Power Investments Marine, Inc. 07-11490
Power Investments, Inc. 07-11491
Powrbilt Products, Inc. 07-11492
Publitech, Inc. 07-11493
Reman Holdings, L.L.C. 07-11494
Remy Alternators, Inc. 07-11495
Remy India Holdings, Inc. 07-11496
Remy International, Inc. 07-11497
Remy International Holdings, Inc. 07-11498
Remy Korea Holdings, LLC 07-11499
Remy Logistics, L.L.C. 07-11500
Remy Powertrain, L.P. 07-11501
Remy Reman, L.L.C. 07-11502
Remy Sales, Inc. 07-11503
Remy, Inc. 07-11504
Unit Parts Company 07-11505
Western Reman Industrial , Inc. 07-11506
Western Reman Industrial, LLC 07-11507
World Wide Automotive, L.L.C. 07-11508
World Wide Automotive Distributors, Inc. 07-11509
Type of business: Remy Worldwide acts as a holding company of
all the outstanding capital stock of Remy
International Inc. Remy International
manufactures, remanufactures and distributes
Delco Remy brand heavy-duty systems and Remy
brand starters and alternators, locomotive
products and hybrid power technology. The
company also provides a worldwide components
core-exchange service for automobiles, light
trucks, medium and heavy-duty trucks and other
heavy-duty, off-road and industrial
applications. Remy has operations in the
United Kingdom, Mexico and Korea, among
others. See http://www.remyinc.com/
Chapter 11 Petition Date: October 8, 2007
Court: District of Delaware (Delaware)
Debtors' Counsel: Douglas P. Bartner, Esq.
Fredric Sosnick, Esq.
Michael H. Torkin, Esq.
Shearman & Sterling LLP
599 Lexington Avenue
New York, NY 10022
Tel: (212) 848-4000
Fax: (212) 848-7179
http://www.shearman.com/
Debtors' Co-Counsel: Pauline K. Morgan, Esq.
Edmon L. Morton, Esq.
Kenneth J. Enos, Esq.
Young Conaway Stargatt & Taylor, LLP
The Brandywine Building
1000 West Street, 17th Floor
Wilmington, DE 19801
Tel: (302) 571-6600
Fax: (302) 571-6600
http://www.ycst.com/
Debtors' Claims Agent: Kurtzman Carson Consultants LLC
2335 Alaska Avenue
El Segundo, CA 90245
Tel: (866) 381-9100
Special Corporate Counsel: Greenberg Traurig, LLP
Auditor: Ernst & Young, LLP
Restructuring Advisor: AlixPartners, LLC
At Sept. 30, 2006, Remy International's balance sheet showed:
Total Assets: US$919,736,000
Total Debts: US$1,265,648,000
Debtors' Consolidated List of 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
U.S. Bank N.A. Bond Issuance US$165,000,000
60 Livingston Avenue
St. Paul, MN 55107-2292
Tel: (651) 495-3959
Fax: (651) 495-8100
Attn: Timothy Sandell
U.S. Bank N.A. Bond Issuance US$150,000,000
60 Livingston Avenue
St. Paul, MN 55107-2292
Tel: (651) 495-3959
Fax: (651) 495-8100
Attn: Timothy Sandell
The Bank of New York Bond Issuance US$145,000,000
2 north LaSalle Street
Suite 1020
Chicago, IL 60602
Tel: (312) 827-8548
Fax: (312) 827-8542
Attn: Linda Garcia
U.S. Custom and Border Promissory Note US$7,279,286
Protection
Revenue Division
6650 Telecom Drive
Indianapolis, IN 46278
Attn: Robert B. Hamilton
Director
Bocar S.A. de C.V. Trade US$3,452,641
Cruz Verde NO 169-1A
Mexico City, DF 04330
Tel: (+52) 722 279-6600
Fax: (+52) 555 422-2434
Attn: Raymundo Rodriguez
REA Magnet Wire Inc. Trade US$2,751,713
3600 East Pontiac Street
Ft. Wayne, IN 46803
Tel: (260) 421-7452
Fax: (260) 421-7349
Attn: Mike Hughes
A&E Auto Electric Trade US$2,246,049
P.O. Box 5418
Spartanburg, SC 29304
Tel: (864) 463-3257
Fax: (864) 464-7333
Attn: Nicole Miller
Osar (Italy) Trade US$1,720,719
One Technology Ct.
Turin, Italy 10070
Tel: (390) 1192-41078
Fax: (390) 1192-41097
Attn: Paolo Salvi
Kolektor Group Trade US$1,686,398
Vaolkova 10
5280 Idrija
Idrija 29644
Tel: (412) 279-2980
Fax: (864) 409-8781
Attn: Rok Vodnik
Sankaku (Xiamen) Trade US$1,570,019
Auto Parts
NO 58-26 Wenyuan Road
Xiamen X 361004
Tel: 011-865922044010
Attn: Crystal Hu
Wells Manufacturing Corp. Trade US$1,526,938
26 South Brooke Street
Fond Du Lac, WI 54936-0070
Tel: (920) 929-6263
Fax: (920) 922-3585
Attn: Pedro Vila
Auto Electric Suppliers Trade US$1,514,492
3233 Commerce Parkway
Miramar, FL 33025
Tel: (800) 327-2258
Fax: (954) 435-0028
Attn: Mike Clausman
American Auto Parts Trade US$1,403,171
7007 North Austin Avenue
Niles, IL 60714-4601
Tel: (847) 647-7090
Fax: (847) 647-7581
Attn: Julie O'Reilly
Monopac SD Trade US$1,272,675
17502 Jalan 4
Selangor, Malaysia
Tel: (60-3) 6318-6200
Fax: (60-3) 6138-6206
Attn: Danny Ng
Gary Barut
Electro-Motive Diesel Trade US$1,208,085
P.O. Box 70530
Chicago, IL 60673
Tel: (800) 255-5355
Fax: (708) 387-6626
Attn: Tim Standish
Wetherill Associates Inc. Trade US$1,175,825
P.O. Box 827063
Philadelphia, PA 19182-7063
Tel: (800) 877-3340
Fax: (800) 948-6121
Attn: Sandy Huggens
Actron Technology Corp. Trade US$1,158,502
1F, No 12, Sec2
Nan-Kan Road
Luchu Hsiang
Taoyuan, Taiwan ROC
Tel: (886-3) 311-5555
Fax: (886-3) 311-9977
Attn: Jessie Chen
Lone Star Container Trade US$1,153,997
700 North Wildwood Drive
Irving, TX 75061
Tel: (972) 579-1551
Fax: (972) 554-6081
Attn: Jerry Hardison
Korea Delphi Automotive Trade US$990,981
Systems
408-1 ma Buk-Ri
Guseong-Eup
Youngin-Si
Gyeonggi-Do 449912
Tel: (82-3) 189-98612
Fax: (82-2) 761-9494
Attn: Ws Kang
Industrias Kirkwood Trade US$955,608
Calle 4 Norte No. 100
Ampliacion Parque
Toluca De Lerdo,
Mexico 50200
Tel: (52) 722 265-7564
Fax: (52) 722 265-7569
Attn: Norma Medina
BPS - Allied Parts Trade US$891,300
1122 Milledge Street
East Point, GA 30344
Tel: (404) 559-8571
Fax: (404) 559-8584
Attn: Jerry Boles
Quality Parts Supply Trade US$733,746
15844 South Interstate
Highway 35
Bruceville, TX 76630
Tel: (254) 857-4629
Fax: (254) 857-3527
Attn: Pat Patton
Caterpillar, Inc. Trade US$680,018
100 northeast Adams Street
Peoria, IL 61629
Tel: (309) 675-5592
Fax: (309) 675-9135
Attn: Mary Buck
Swift Transportation Trade US$608,761
2200 South 75th Avenue
Phoenix, AZ 85043
Tel: (602) 269-9700
Fax: (623) 907-7503
Attn: Ginnie Henkels
Hitachi Metals America Trade US$608,009
2101 South Arlington
Heights Road, Suite 116
Arlington Heights, IL 60005
Tel: (847) 364-7200
Fax: (847) 364-7279
Attn: Heather Kozlowski
Industrial Molding Corp. Trade US$603,539
616 East Slaton Road
Lubbock, TX 79404
Tel: (806) 474-1066
Fax: (806) 474-1168
Attn: Paula Olbham
HTG - Tiffin Trade US$603,125
1988 County Road #593
Tiffin, OH 44883
Tel: (419) 447-2221
Fax: (419) 447-2842
Attn: Betty Hall
S&S Enterprises Trade US$584,854
(c/o Simmons)
3rd Floor Froebel Center
90-2
Seoul 135-10
Tel: (822) 501-2848
Fax: (956) 712-1409
Attn: Ben Lee
Andrea Kim
Andra, LLC Promissory Note Not Stated
714 East 8th Street
Anderson, IN 46012
Mobile: (765) 621-1053
Office: (765) 644-2803
Residence: (765) 649-2701
Fax: (765) 644-6675
Attn: William Surbaugh
Eagle I, LLC Promissory Note Not Stated
714 East 8th Street
Anderson, IN 46012
Mobile: (765) 621-1053
Office: (765) 644-2803
Residence: (765) 649-2701
Fax: (765) 644-6675
Attn: William Surbaugh
SPANSION INC: Inks Definitive Contract with Saifun Semiconductor
----------------------------------------------------------------
Spansion Inc. has inked an agreement for the purchase of Saifun
Semiconductors Ltd. This transaction consolidates all
MirrorBit(R) and NROM IP, design and manufacturing expertise
into a single company. As a result, the combination will expand
Spansion's product portfolio, and enable Spansion's immediate
entry into the technology licensing business, significantly
expanding Spansion's market opportunity.
This transaction allows Spansion to:
-- Consolidate Intellectual Property (IP) complementary to
Spansion's MirrorBit technology;
-- Immediately enter the technology licensing business;
-- Drive adoption of MirrorBit beyond the NOR segment, into
new markets including NAND, DRAM, and systems on a chip;
-- Accelerate and diversify Spansion's product roadmap through
the addition of Saifun's world-class engineering team who
are already familiar with MirrorBit technology; and
-- Expand operating margins.
Under the terms of the agreement, each Saifun shareholder will
receive 0.7429 shares of Spansion common stock and approximately
US$5.05 per share in cash for each share of Saifun common stock.
The cash distribution will be funded solely from Saifun's
existing cash on hand concurrently or before the closing of the
transaction. Based on closing stock prices on Oct. 5, the total
consideration values Saifun at US$11.26 per share, for a total
consideration of US$368 million on a fully-diluted basis, or
approximately US$135 million net of cash acquired and cash
distributed to Saifun shareholders. The transaction is subject
to satisfaction of customary closing conditions that include
Israeli court approval, regulatory approvals and the Saifun
shareholders' approval, and is expected to close in the first
quarter of 2008.
"Throughout our long-term partnership with Saifun we have been
impressed with the depth of technology expertise, the quality of
people and the ingenuity of the Saifun organization and look
forward to establishing a team in Israel," said Bertrand Cambou,
president and Chief Executive Officer, Spansion Inc. "We look
forward to collaborating with them to serve Saifun's existing
licensees, and enter new markets with a powerful technology
licensing strategy and a broadened and diversified product
portfolio."
Since 2002, Spansion has been a licensee of Saifun's NROM
intellectual property, which has formed the cornerstone of
Spansion's proprietary MirrorBit technology. MirrorBit
Technology now represents nearly one fourth of the entire NOR
Flash memory segment, and generates revenues at a run rate
approaching US$2 billion per year. As part of this
relationship, Saifun has also provided design services to
Spansion, including the successful development of Spansion's
MirrorBit Quad and SPI product families. By combining the two
companies, Spansion can further accelerate the development of
its next generation product roadmap by directly leveraging over
150 MirrorBit technology and design experts and also eliminate
its own licensing and royalty payments to Saifun.
"Joining forces with Spansion enables us to take our licensing
business to the next level," said Boaz Eitan, CEO of Saifun
Semiconductor. "By combining Spansion MirrorBit expertise with
our successful NROM IP licensing model, we will more rapidly
enable our current and future customers to commercialize new
generations of Flash memory technology. We will continue to
support all of our existing licensees with the same commitment
and dedication as before. We are certain that the addition of
the Spansion IP and manufacturing know-how will only accelerate
all programs."
The boards of directors of both companies have approved the
definitive agreement. Following the close of the transaction,
Dr. Boaz Eitan will become a member of Spansion's Board of
Directors. Dr. Boaz Eitan, who together with his affiliates,
owns approximately 35 percent of Saifun outstanding shares, has
entered into a voting agreement with Spansion and agreed to vote
all of his shares in favor of the transaction. After the
transaction, current Saifun shareholders will hold approximately
15 percent of Spansion's shares.
Citigroup Global Markets Inc. served as financial advisor to
Spansion and Lehman Brothers served as financial advisor to
Saifun. O'Melveny & Myers represented Spansion with Yigal Arnon
& Co., as special Israeli counsel and Morrison & Foerster
represented Saifun with Eitan-Mehulal Law Group as Israeli
counsel.
About Saifun
Saifun Semiconductor -- http://www.spansion.com--(Nasdaq: SFUN)
is a provider of intellectual property (IP) solutions for the
non- volatile memory (NVM) market. The company's innovative
Saifun NROM(R) technology allows semiconductor manufacturers to
deliver high performance, reliable products at a lower cost per
megabit, with greater storage capacity, using a single process
for all NVM applications. Saifun licenses its IP to
semiconductor manufacturers who use this technology to develp
and manufacture a variety of stand-alone and embedded NVM
products. These include Flash memory for the
telecommunications, consumer electronic, networking and
automotive markets. Among the companies currently licensing
Saifun NROM technology are Macronix International, NEC
Electronics, Semiconductor Manufacturing International
Corporation, Sony Corporation, Spansion, and Tower
Semiconductor.
About Spansion
Spansion Inc. -- http://www.spansion.com/-- (Nasdaq: SPSN),
headquartered in Sunnyvale, California, and parent of Spansion
LLC, is a leading provider of flash memory semiconductors that's
after its initial public offering in December 2005, is owned
approximately 38% by Advanced Micro Devices and 25% by Fujitsu
Limited.
The company has European operations in France, Asia-Pacific
facilities in Japan, China, Malaysia and Thailand, as well as
sales offices in Latin American countries including Brazil and
Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Fitch Ratings has assigned a rating of 'B+/RR2' to
Spansion Inc.'s US$550 million senior secured floating- rate
notes due 2013 issued pursuant to Rule 144A, the net proceeds
from which will be used to repay the outstanding obligations
under the company's US$500 million senior secured term loan
facility due 2012. The remainder of net proceeds will be used
for general corporate purposes, including capital expenditures
and working capital.
Fitch has withdrawn the 'BB-/RR1' rating of the approximately
US$500 million senior secured term loan facility in anticipation
of Spansion's repayment of this tranche of debt. Additionally,
Fitch has downgraded the US$175 million senior secured revolving
credit facility due 2010 to 'B+/RR2' from 'BB-/RR1.' In
conjunction with the refinancing, Fitch has affirmed these
ratings:
-- Issuer Default Rating of 'B-';
-- US$250 million of 11.75% senior unsecured notes due 2016
at 'CCC+/RR5'; and
-- US$207 million of 2.25% convertible senior subordinated
debentures due 2016 at 'CCC/RR6'.
Fitch said the rating outlook remains negative. Approximately
US$1.1 billion of total debt is affected by Fitch's actions.
=======
P E R U
=======
BANCO DE CREDITO: Sells PEN483MM in Subordinated Notes Due 2022
---------------------------------------------------------------
Banco de Credito del Peru said in a filing with Peruvian
securities regulator Conasev that it has sold PEN483 million in
subordinated notes due 2022.
Business News Americas relates that Banco de Credito sold the
securities in a private placement through its Panamanian
offshore banking subsidiary.
According to Banco de Credito's filing, the 15 year-bonds will
pay a 7.17% yearly interest on a six-month basis during the
first 10 years. During the last five years, the securities will
yield a spread of 150 basis points over Peru's 2037 bond.
The securities can be redeemed after 10 years, BNamericas
states.
Banco de Credito del Peru is Peru's largest bank, with a
dominating market share of over 30% of deposits, and boasts
total consolidated assets of US$9.6 billion and equity of US$780
million as of June 30, 2006. It is the principal operating
company within Credicorp, Peru's largest financial services
company, which controls 96.2% of Banco de Credito; Credicorp is
widely held by local and foreign institutional shareholders.
As reported in the Troubled Company Reporter-Latin America on
July 18, 2007, Moody's Investors Service upgraded the long-term
foreign currency deposit rating of Banco de Credito del Peru to
Ba3 from B1, following the same action on the sovereign ceiling
for foreign currency deposits. Moody's also raised its rating
for Banco de Credito del Peru's Panama branch's foreign currency
subordinated notes maturing in 2021 to Ba1 from Ba2, based on
the upgrade of Peru's foreign currency bond ceiling. Both
ratings had been placed on review for upgrade on March 8, 2007.
Both have stable outlooks.
The bank's financial strength rating was not affected by this
action.
These ratings were raised:
Banco de Credito del Peru:
-- Long-term foreign currency deposit rating to Ba3 from B1,
with stable outlook
Banco de Credito del Peru, Panama Branch:
-- Long-term foreign currency subordinated notes to Ba1 from
Ba2, with stable outlook.
=====================
P U E R T O R I C O
=====================
AVNET INC: Closes Acquisition of Magirus Infrastructure Division
----------------------------------------------------------------
Avnet Inc. has completed its acquisition of the Enterprise
Infrastructure Division of Magirus Group. The acquired
business, which has annual revenues of approximately US$500
million, is a value-added distributor of IBM and Hewlett-Packard
enterprise computing products in seven European countries and
Dubai. The acquisition is expected to meet or exceed the
company's stated return-on-capital-employed goal and add
approximately US$0.08 EPS in calendar 2008. The integration of
the acquired business into Avnet's Technology Solutions group in
Europe is expected to be essentially complete by June 2008.
Roy Vallee, Avnet's chairman and chief executive officer,
stated, "This acquisition positions Avnet Technology Solutions
as Europe's largest value-added IT distributor for enterprise
solutions with the broadest capabilities in the market.
Following completion of the recently announced Acal IT Solutions
acquisition, Avnet Technology Solutions will have US$2.5 billion
of annual revenue in the region and possess unique scale and
scope advantages that further enhance Avnet's value proposition
to our trading partners. In support of Avnet Technology
Solutions' strategy to enable complete solutions, we will
continue to pursue value creating acquisitions that expand our
customer base and/or broaden our products and services
portfolio."
Avnet Technology Solutions has now significantly increased its
presence in the two largest European markets, Germany and UK,
while expanding its operations in six additional countries. The
addition of 140 skilled employees and 1,300 value-added-reseller
customers presents additional opportunities for cross selling
and materially expands Technology Solutions' role in the
European IT distribution channel.
"This move strengthens our position as a pan-European value-
added distributor with industry-leading system integration,
marketing, financial and technical services," said Dick
Borsboom, president of Avnet Technology Solutions EMEA. "With
expanded geographic coverage and deep technical resources, we
will address a wider range of solutions and accelerate the
growth of our trading partners."
About Magirus
The Magirus Group -- http://www.magirus.com/-- is an
international IT company, whose core businesses are IT
infrastructure, technology, supply chain, marketing and
financial services. With approx. EUR700 million in revenues and
more than 600 employees, Magirus is one of the leading IT
infrastructure and solutions provider in Europe. Its portfolio
comprises high-end servers, storage systems and network
products, as well as software for system, storage, network,
Internet and security management in addition to middleware,
groupware and applications, virtualization, information
lifecycle management, databases, internet/intranet and e-
business software. With a network of subsidiaries, joint
ventures and offices, the company operates in Europe and the
Middle East. Together with qualified system and software
houses, Magirus supplies companies in all industries, such as
financial service providers, telecommunications and automotive,
as well as public sector clients. The strategic alliance with
Agilysys Inc., Cleveland, Ohio, enables it to support companies
planning to realize projects in the US market.
About Avnet Inc
Headquartered in Phoenix, Arizona, Avnet, Inc.
-- http://www.avnet.com/-- distributes electronic components
and computer products, primarily for industrial customers. It
has operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, and
Sweden, Brazil, Mexico and Puerto Rico.
* * *
Moody's Investors Service affirmed Avnet's Ba1 corporate family
long-term debt ratings in March 2007. Moody's said the outlook
is positive.
MARGO CARIBE: John Upchurch Replaces Alison Witkovich as CFO
------------------------------------------------------------
Alison Witkovich, resigned as Vice President and Chief Financial
Officer of Margo Caribe, Inc., effective Sept. 27, 2007.
John M. Upchurch, was appointed to replace Ms. Witkovich as
Senior Vice President and CFO. Prior to joining the Company, Mr.
Upchurch served as Controller of the James Doran Company, a real
estate investment and development company based in Charleston,
South Carolina, since February 2007. From June 2006 to February
2007, Mr. Upchurch served as Controller of the Montecito
Property Company, a Florida-based property development company
specializing in condominium conversions. From 2004 to 2006, Mr.
Upchurch served in various positions, including Corporate
Controller of Fidelity Information Services, a division of
Fidelity National Financial and a leading provider of core
financial institution processing, card issuer and transaction
processing services, mortgage loan processing and related
information products and outsourcing services to financial
institutions, retailers, mortgage lenders and real estate
professionals. From 1998 to 2004, Mr. Upchurch served in
various positions, including Vice President of Joint Venture
Reporting of Regency Centers Corporation.
Mr. Upchurch is a Certified Public Accountant and holds a
bachelor's degree in Accounting from Florida State University.
Under the terms of his employment agreement, Mr. Upchurch will
be entitled to receive base salary of US$100,000, plus certain
other benefits and is eligible to receive a discretionary bonus.
Mr. Upchurch is also eligible to receive grants of restricted
stock under the Margo Caribe, Inc. 2003 Restricted Stock Plan.
There was no arrangement or understanding between Mr. Upchurch
and any other persons pursuant to which Mr. Upchurch was elected
to his new position and there are no related party transaction
between Mr. Upchurch and the Company.
Headquartered in Vega Alta, Puerto Rico, Margo Caribe, Inc.
-- http://www.MargoCaribe.com-- and its subsidiaries primarily
engage in the production, distribution, and sale of various
tropical plants to the interior and exterior landscapers,
wholesalers, and retailers in Puerto Rico and the Caribbean.
The company also manufactures and distributes a line of planting
media and aggregates; distributes lawn and garden products,
including plastic and terracotta pottery, planting media, and
mulch; and provides landscaping design and installation
services. In addition, Margo Caribe distributes fertilizers,
pesticides, and various outdoor products. The company
manufactures potting soils, professional growing mixes, river
rock, gravel, and related aggregates.
Material Weakness
Deloitte & Touche noted material weaknesses to Margo Caribe's
internal controls after auditing the company's financial reports
for the year ended Dec. 31, 2005. The material weaknesses noted
by Deloitte were the following:
1) Margo Caribe did not maintain a sufficient complement of
personnel to maintain an appropriate accounting and
financial reporting structure commensurate with its
activities;
2) the company's limited number of personnel does not allow
for an appropriate level of segregation of duties;
3) the company does not have an appropriate fraud detection
program to address the risk that the financial statements
may be materially misstated as a result of fraud; and
4) the company did not maintain adequate controls and
procedures to assure the identification and reporting of
certain transactions with related parties.
PIER 1: Moody's Removes Caa1 Corporate Family Rating
----------------------------------------------------
Moody's has withdrawn the ratings of Pier 1 for business
reasons, because Pier 1 has no rated debt outstanding.
This rating was withdrawn:
-- Corporate family rating of Caa1
Based in Fort Worth, Texas, Pier 1 Imports Inc. (NYSE:PIR) --
http://www.pier1.com/-- is a specialty retailer of imported
decorative home furnishings and gifts with Pier 1 Imports(R)
stores in 49 states, Puerto Rico, Canada, and Mexico, and Pier 1
kids(R) stores in the United States.
=================================
T R I N I D A D & T O B A G O
=================================
MIRANT CORP: District Court Affirms Ruling on Wilson's Fees
-----------------------------------------------------------
The Hon. Terry R. Means of the United States District Court for
the Northern District of Texas, Fort Worth Division, has issued
a final judgment affirming an order of the U.S. Bankruptcy Court
for the Northern District of Texas awarding Mirant Corp.
shareholders Frank Smith, Kent Koerper, Bart Engram, Mary
Leight, and L. Matt Wilson a reduced amount of attorneys' fees
and expenses under Section 503(b)(4) of the Bankruptcy Code.
As previously reported, the United States Trustee, in connection
with the 2003 bankruptcy filing of Mirant and 82 of its
subsidiaries, appointed a committee for the unsecured creditors
of Mirant and a committee for the unsecured creditors of Mirant
Americas Generation, LLC. The U.S. Trustee then invited the 50
largest shareholders to form an equity-security-holders
committee. Mr. Wilson was a member of the Equity Committee.
In late 2004, Mirant and the Creditors Committee began to posit
that existing shareholders were not entitled to monetary
recovery, which would suggest that the Equity Committee should
be discharged. Mirant's reorganization plans, which were filed
in early 2005, stated that its value was substantially less than
its outstanding debt, which would leave existing shareholders
with no monetary recovery.
To determine Mirant's value, the Bankruptcy Court scheduled a
valuation hearing. The Wilson Shareholders hired Mr. Wilson to
represent all shareholders at the valuation hearing and later
proceedings in seeking a higher recovery to existing
shareholders.
The Wilson Shareholders' fee agreement with Mr. Wilson provided
that they would be responsible to him only for a 1% contingency
on profits they actually realized in connection with the sale of
their stock. The Wilson Shareholders moved to participate in
the Valuation Hearing. The Bankruptcy Court granted the
request, but limited them to cross-examination. The Wilson
Shareholders, along with five other groups, participated in the
Valuation Hearing.
After the hearing, the Bankruptcy Court ordered that a committee
be formed to recalculate Mirant's value. During the
revaluation, a new reorganization plan was offered that gave
existing shareholders a more favorable recovery. In response to
the new, more favorable reorganization plan, the Bankruptcy
Court suspended the Revaluation Committee. The Wilson
Shareholders filed their objected, but was subsequently
overruled by the Bankruptcy Court. Judge Lynn then entered a
confirmation order effecting Mirant's emergence from Chapter 11
bankruptcy on Jan. 3, 2006.
The Wilson Shareholders filed a fee application under Section
503(b)(4), seeking payment of fees and expenses totaling
US$645,147.
Mirant and the Equity Committee objected to the Fee Application,
arguing that the amounts could not be reimbursed from the estate
because the Wilson Shareholders' duty to pay was contingent on
any future profit they received from the sale of their stock.
Judge Lynn concluded that Section 503(b)(4) allowed Mr. Wilson
to apply directly for payment by the estate even though the
Wilson Shareholders were not obligated to pay his fees.
The Bankruptcy Court then found that Mr. Wilson had made a
substantial contribution, but stated that he "overestimates the
magnitude of the contribution made," and that his contribution
"has not been entirely positive." Thus, Mr. Wilson was awarded
partial payment in the amount of US$15,000 to "defray Wilson's
out-of-pocket costs for attending the Valuation Hearing" and to
ensure that Mr. Wilson was not rewarded "for conduct that should
not be encouraged in chapter 11 cases."
Judge Lynn denied the Wilson Shareholders' Motion to Reconsider.
In December 2006, the Wilson Shareholders filed a notice of
appeal as to the Bankruptcy Court's ruling on the Fee
Application and as to the denial of the Motion to Reconsider.
Mirant filed a cross-appeal as to the Bankruptcy Court's
decision awarding Mr. Wilson any payment.
The District Court has consolidated the two appeals, finding
that oral argument is not needed.
In his seven-page Affirmation Order, Judge Means found that the
compensation award to Mr. Wilson was statutorily authorized and
the reduced award was not an abuse of discretion.
Compelled by the Bankruptcy Court's reasoning, Judge Means holds
that Section 503(b)(4) does not require that the attorneys' fees
and expenses be incurred by the entity.
"Section 503(b)(4) only requires that the attorney represented a
Section 503(b)(3) entity and made a substantial contribution,"
Judge Means stated in the Order. "To engraft a requirement that
the entity must have incurred the expense is at odds with a
natural reading of the statute."
Judge Means maintains that the purpose of Section 503(b) is to
encourage creditor participation.
"As pointed out the by California bankruptcy court, it would be
nonsensical from a policy standpoint to foreclose an attorney's
claim for attorney's fees and expenses, when he made a
substantial contribution and represented a Section 503(b)(3)
entity, merely because the entity is not obligated to pay the
attorney," Judge Means said.
Moreover, Judge Means pointed out that the Bankruptcy Court
obviously looked at the statutory considerations and concluded
that Mr. Wilson's duplication of efforts and misbehavior
justified the reduced award. "These considerations were proper
and support a conclusion that the bankruptcy court did not abuse
its discretion in reducing Mr. Wilson's compensation request,"
the judge said.
Accordingly, the District Court determined that the Bankruptcy
Court was correct to hold that Mr. Wilson's compensation claim
was statutorily authorized.
Judge Means also ruled that all costs will be taxed against the
party that incurred them.
About Mirant Corp.
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.
Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on Jan. 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring. When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts. The
Debtors emerged from bankruptcy on Jan. 3, 2006. On
March 7, 2007, the Court entered a final decree closing 46
Mirant cases.
Mirant NY-Gen LLC, Mirant Bowline LLC, Mirant Lovett LLC, Mirant
New York Inc., and Hudson Valley Gas Corporation, were not
included. On Feb. 15, 2007, Mirant NY-Gen filed its Chapter 11
Plan of Reorganization and on Feb. 22 filed a Disclosure
Statement explaining that Plan. The Court approved the adequacy
of Mirant NY-Gen's Disclosure Statement on March 22, 2007, and
confirmed the Amended Plan on May 7, 2007. Mirant NY-Gen
emerged from chapter 11 on May 7, 2007.
On July 13, 2007, Mirant Lovett filed its Chapter 11 Plan of
Reorganization. The Court confirmed Mirant Lovett's Plan on
Sept. 19, 2007. (Mirant Bankruptcy News, Issue No. 131;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
The ratings of Mirant Corp. (Issuer Default Rating of 'B+') and
its subsidiaries remain on Fitch's Rating Watch Negative
following the company's plans to pursue alternative strategic
options including a possible purchase of Mirant by a third
party.
MIRANT CORP: Mirant Lovett Emerges from Bankruptcy Protection
-------------------------------------------------------------
Mirant Lovett LLC has formally emerged from bankruptcy
protection under Chapter 11.
In a notice filed with the U.S. Bankruptcy Court for the
Northern District of Texas, Jeff P. Prostok, Esq., at Forshey &
Prostok LLP, in Fort Worth, Texas, informed creditors and
parties-in-interest that Mirant Lovett's Plan of Reorganization
became effective on Oct. 2, 2007. The Mirant Lovett Plan was
confirmed Sept. 19.
As of the Effective Date, the terms of the Mirant Lovett Plan
and the Confirmation Order are binding upon:
-- Mirant Lovett;
-- the holders of all impaired or unimpaired claims against
and equity interests in Mirant Lovett;
-- each person acquiring property under the Mirant Lovett
Plan; and
-- any other party-in-interest appearing in Mirant Lovett's
Chapter 11 cases.
To the extent any provision of the Confirmation Order may be
inconsistent with the terms of the Mirant Lovett Plan, the terms
of the Confirmation Order are binding and conclusive, stated Mr.
Prostok.
To facilitate Plan distributions, Mr. Prostok said, a Mirant
Lovett creditor must be responsible for maintaining accurate
address information on file with Epiq Bankruptcy Solutions, LLC.
Failure to maintain that information may result in a forfeiture
of any distributions to which the creditor would otherwise be
entitled.
Mr. Prostok added that all professionals employed under a Court
order must file by November 16 an application for final
allowance of compensation and reimbursement of expenses for
professional services rendered through the Mirant Lovett Plan
Effective Date. Failure to timely file and serve a final fee
application will result in the fee claim being forever barred
and discharged.
About Mirant Corp.
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.
Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on Jan. 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring. When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts. The
Debtors emerged from bankruptcy on Jan. 3, 2006. On
March 7, 2007, the Court entered a final decree closing 46
Mirant cases.
Mirant NY-Gen LLC, Mirant Bowline LLC, Mirant Lovett LLC, Mirant
New York Inc., and Hudson Valley Gas Corporation, were not
included. On Feb. 15, 2007, Mirant NY-Gen filed its Chapter 11
Plan of Reorganization and on Feb. 22 filed a Disclosure
Statement explaining that Plan. The Court approved the adequacy
of Mirant NY-Gen's Disclosure Statement on March 22, 2007, and
confirmed the Amended Plan on May 7, 2007. Mirant NY-Gen
emerged from chapter 11 on May 7, 2007.
On July 13, 2007, Mirant Lovett filed its Chapter 11 Plan of
Reorganization. The Court confirmed Mirant Lovett's Plan on
Sept. 19, 2007. (Mirant Bankruptcy News, Issue No. 131;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
The ratings of Mirant Corp. (Issuer Default Rating of 'B+') and
its subsidiaries remain on Fitch's Rating Watch Negative
following the company's plans to pursue alternative strategic
options including a possible purchase of Mirant by a third
party.
=================
V E N E Z U E L A
=================
PEABODY ENEGY: Names Tayeb Tahir as President for China Unit
------------------------------------------------------------
Peabody Energy has named Tayeb Tahir as President of Peabody
China, reporting to Chief Financial Officer and Executive Vice
President of Corporate Development Richard A. Navarre.
Mr. Tahir will relocate to the company's Beijing office.
Mr. Tahir will oversee Peabody's business development activities
in China and the region and will coordinate the company's Asian
coal marketing and trading efforts. China is the world's
largest and fastest-growing coal-consuming nation. Peabody is
positioning itself to leverage China's significant long-term
growth potential by partnering with local companies on coal-
related projects. The company opened its Beijing office in fall
2005 and began trading activities in China in 2007.
"Tayeb brings more than two decades of energy and business
development experience to Peabody's China initiatives," said Mr.
Navarre. "His high-level of expertise in international business
will add significant value as we work to build partnerships and
increase our commercial presence in the
world's fastest-growing market."
An energy industry veteran, Mr. Tahir joined Peabody in April
2006 as Senior Vice President - International Development. He
has also held a variety of senior business development,
marketing and trading roles at Calpine Corporation, Zeigler
Coal, Consolidated Edison, Inc. and PIRA Energy Group.
Mr. Tahir holds a Bachelor of Engineering degree in Mechanical
Engineering from NED University of Engineering & Technology. He
also earned an MBA from New York University's Stern School of
Business and a Master of Gas Technology from the Illinois
Institute of Technology. He currently serves on the
International Affairs Advisory Committee Board of the University
of Missouri - St. Louis.
Headquartered in St. Louis, Missouri, Peabody Energy Corporation
(NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's
largest private-sector coal company, with 2005 sales of 240
million tons of coal and US$4.6 billion in revenues. Its coal
products fuel 10% of all U.S. and 3% of worldwide electricity.
The company has coal operations in Venezuela.
* * *
As reported in the Troubled Company Reporter on Mar 9, 2007,
Moody's Investors Service reported that, after the adoption of
final guidelines for preferred stock and hybrid securities
notching, it downgraded Peabody Energy Corporation's hybrid
instrument to Ba3. This instrument was placed on review for
downgrade.
* Seven LatAm Countries to Inaugurate Banco del Sur on Nov. 3
-------------------------------------------------------------
Bloomberg News reports that the so-called Banco del Sur will be
formally opened on Nov. 3. The opening was previously set for
June 26 but was put off to iron financing terms.
The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the International
Monetary Fund and the World Bank, on much lower rates and better
financing conditions.
The signing of the "Declaration of Rio de Janeiro" on Oct. 8 by
the finance ministers of Argentina, Brazil, Ecuador, Paraguay,
Uruguay and Venezuela, signals the beginning of "a new financial
architecture in the South," Venezuelan Finance Minister Rodrigo
Cabezas, was quoted by Bloomberg as saying.
Venezuelan leader Hugo Chavez has proposed to use the bank to
counter the influence of the United States in the region.
Meanwhile, Brazil, a non-socialist country and is friendly with
the U.S., has joined the bank to maintain good relations with
Venezuela, according to Jose Botafogo, a former Brazilian
Ambassador and head of Brazil's Foreign relations association in
an interview with Bloomberg.
The bank will not make grants, only interest-bearing loans and
operate only within South America, Guido Mantega, Brazil's
finance minister said at a press conference. He added that the
bank hopes to make its first loan in 2008, Bloomberg relates.
***********
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
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