/raid1/www/Hosts/bankrupt/TCRLA_Public/071022.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
Monday, October 22, 2007, Vol. 8, Issue 209
Headlines
A R G E N T I N A
AVELINO QUIRNO: Proofs of Claim Verification Ends on Dec. 18
BANCO MACRO: Concludes Merger with Nuevo Banco Suquia
BANCO MACRO: Will Issue US$100 Million in Bonds Due 2014
BANCO MACRO: Fitch To Rate US$200-Million Bonds at B+/RR4
BANCO MACRO: Moody's Puts B2 Long-Term Foreign Curr. Debt Rating
BANCO SUPERVIELLE: Moody's Puts Global/Local Currency Ba1 Rating
BELTSCENTER SRL: Proofs of Claim Verification Ends Dec. 12
BERRIES DE LA PENINSULA: Seeks for Reorganization Approval
CHATEAU SA: Proofs of Claim Verification Deadline Is Nov. 22
CONSTRUCTORA MIR: Proofs of Claim Verification Ends Nov. 19
DECOTECNICA SA: Proofs of Claim Verification Ends on Nov. 28
FIDEICOMISO FINANCIERO: Moody's Assigns Ba1 Currency Ratings
MUNDI TOUR: Proofs of Claim Verification Deadline Is Dec. 17
PREMECOL SC: Proofs of Claim Verification Deadline Is Dec. 13
SENACO SRL: Proofs of Claim Verification Is Until Dec. 18
TENNECO INC: Elects Dennis J. Letham to Board of Directors
UTSTARCOM INC: Posts US$54 Million Net Loss for First Quarter
VALMAS SRL: Proofs of Claim Verification Deadline Is Dec. 20
B E R M U D A
ELAN CORP: Third Parties Eye Biogen for Likely Acquisition
ELAN CORPORATION: FDA Extends TYSABRI Review Until Jan. 13, 2008
FOSTER WHEELER: To Hold Earnings Conference Call on November 7
B O L I V I A
INT'L PAPER: Board Oks Amendment of Certificate of Incorporation
B R A Z I L
ACTUANT CORP: Two-for-One Stock Split Takes Effect on Nov. 8
AMR CORP: Earns US$175 Million in Third Quarter Ended Sept. 30
BANCO NACIONAL: New Loans Increase to BRL41.8B in First 9 Mos.
BANCO NACIONAL: Okays BRL252-Million Loan for NatGas Firm CEG
CA INC: Launches US$30 Million Technology Center in India
COMPANHIA SIDERURGICA: Gets Regulator OK for Cia. de Fomento Buy
NET SERVICOS: Broadband Client Base Rose by 71% in Third Quarter
SANYO ELECTRIC: Cancels Sale of Semiconductor Unit
STRATOS GLOBAL: Expects 3rd Quarter Financial Report on Nov. 7
SUN MICROSYSTEMS: Spares Scottish Unit from Worldwide Job Cuts
SUN MICROSYSTEMS: Pushes to Expand Consumer Market, Report Says
C A Y M A N I S L A N D S
BANK RAKYAT: Moody's Ups FC Subordinated Debt Ratings to Ba2
LONGMEADOW CDO: Proofs of Claim Filing Deadline Is Nov. 2
MITRA SEJATI: Proofs of Claim Filing Ends on Nov. 2
MONTANA FINANCE: Proofs of Claim Filing Deadline Is Nov. 2
NIPPON SHINPAN: Proofs of Claim Filing Deadline Is Nov. 2
OCTAGON INVESTMENT: Proofs of Claim Filing Ends on Nov. 2
OSCAR FUNDING: Proofs of Claim Filing Deadline Is Nov. 2
PACIFICA PARTNERS: Proofs of Claim Filing Is Until Nov. 2
PARMALAT SPA: Settles Case Against Banca Ifis for EUR2 Million
PLAZA MIDOUSUJI: Proofs of Claim Filing Ends on Nov. 2
RHOMBUS CDO: Proofs of Claim Filing Is Until Nov. 2
RMB CDO: Proofs of Claim Filing Deadline Is Nov. 2
C H I L E
ANIXTER INT'L: To Report Third Quarter Earnings on October 23
BOSTON SCIENTIFIC: Mulls Restructuring & Sale of Some Businesses
C O S T A R I C A
* COSTA RICA: World Bank To Support DR-CAFTA Implementation
H O N D U R A S
CABLE & WIRELESS: Shortlisted To Bid for Honduras Mobile License
DIGICEL GROUP: Prequalifies To Bid for Honduras Mobile License
J A M A I C A
AIR JAMAICA: President Resigns; First Woman Chairman Appointed
AIR JAMAICA: Postpones Wage Meeting with Bustamante Industrial
M E X I C O
CKE RESTAURANTS: Reports US$90MM Same-Store Sales for Two Units
FEDERAL-MOGUL: Sept. 30 Balance Sheet Upside-Down by US$1.4 Bil.
FIRST DATA: Extends Long-Term Contract with National City Bank
GRUPO IUSACELL: Prequalifies To Bid for Honduras Mobile License
HIPOTECARIA CREDITO: Securitizing MXN600MM in Construction Loans
KANSAS CITY SOUTHERN: Lazaro Terminal Phase 1 Works To End 2008
MCDERMOTT INT'L: Names Dennis Baldwin as Vice President & CAO
MOVIE GALLERY: Receives Nasdaq Delisting Notification
MOVIE GALLERY: U.S. Trustee Appoints Creditors Committee
REMY WORLDWIDE: Selects Shearman & Sterling as Lead Counsel
REMY WORLDWIDE: Wants to Employ YCS&T as Delaware Counsel
RYERSON INC: Shareholders Okay Merger Deal with Platinum Equity
VISTEON CORP: Inks MOU for Sale of Largest UK Operation
N I C A R A G U A
SPECTRUM BRANDS: Postpones Strategic Asset Sale
U R U G U A Y
SENSIENT TECH: Paying US$0.18 Per Share Quarterly Dividend
V E N E Z U E L A
CHRYSLER LLC: Negotiator Urges UAW Leaders to Reject New Pact
PEABODY ENERGY: Paying Dividend of US$0.06 Per Share
PETROLEOS DE VENEZUELA: Continues Talks ConocoPhillips
PETROLEOS DE VENEZUELA: Inks R&D Agreement with Petroecuador
PETROLEOS DE VENEZUELA: Fitch Revises Outlook; Affirms BB- IDR
* VENEZUELA: Inks Economic Cooperation Agreements with Cuba
* VENEZUELA: Fitch Revised Outlook to Neg.; Affirms BB- IDR
* BOND PRICING: For the Week Oct. 15 to Oct. 19
- - - - -
=================
A R G E N T I N A
=================
AVELINO QUIRNO: Proofs of Claim Verification Ends on Dec. 18
------------------------------------------------------------
Hector Jorge Vegetti, the court-appointed trustee for Avelino
Quirino SA's bankruptcy proceeding, verifies creditors' proofs
of claim until Dec. 18, 2007.
Mr. Vegetti will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 2 in Buenos Aires, with the assistance of Clerk No.
4, will determine if the verified claims are admissible, taking
into account the trustee's opinion, and the objections and
challenges that will be raised by Avelino Quirino 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 Avelino Quirino's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Vegetti is also in charge of administering Avelino Quirino's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Oreans SA
Jose A. Ferry 390
Buenos Aires, Argentina
The trustee can be reached at:
Hector Jorge Vegetti
Montevideo 711
Buenos Aires, Argentina
BANCO MACRO: Concludes Merger with Nuevo Banco Suquia
-----------------------------------------------------
Banco Macro SA has completed its merger with Nuevo Banco Suquia,
the Argentine central bank said in a statement.
Business News Americas relates that Banco Macro purchased Nuevo
Banco Suquia in 2004 for US$25 million in the first re-
privatization of the three Argentine banks Credit Agricole
abandoned during the country's 2002 economic and financial
crisis.
About Credit Agricole
Headquartered in Paris, France, Credit Agricole SA is a banking
group that offers a range of banking and insurance services
through a network of regional and local banks. The bank's
principal lines of business include French retail banking,
specialized financial services, asset management, insurance and
private banking, corporate and investment banking, and
international retail banking. Credit Agricole SA owns and
operates subsidiaries in a variety of fields to provide the
regional banks with specialized assistance. Subsidiaries
include LCL, which offers retail banking services for
individual, professional and corporate clients in France, and
Calyon, which specializes in corporate and investment banking in
Europe. The bank's international retail banking operations are
based principally in Europe but are also present worldwide.
About Banco Macro
Headquartered in Buenos Aires, Argentina, Banco Macro --
http://www.macro.com.ar/-- had consolidated assets of ARS16.8
billion (USUS$5.4 billion) and consolidated deposits of ARS11
billion (USUS$3.5 billion) as of March 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 5, 2007, Moody's Investors Service assigned a Ba1 global
local currency rating to Banco Macro S.A.'s USUS$100 million
senior unsecured Argentine peso-linked notes due 2012, issued
under Macro's existing US$400 million Medium-Term Note Program.
BANCO MACRO: Will Issue US$100 Million in Bonds Due 2014
--------------------------------------------------------
Banco Macro S.A. said in a filing with the Argentine stock
exchange that it will issue up to US$100 million in bonds due
2014.
According to Banco Macro's statement, foreign and local
investors are given until the end of this month to subscribe the
bonds. Banco Macro has the option to raise the issue up to
US$200 million.
Headquartered in Buenos Aires, Argentina, Banco Macro --
http://www.macro.com.ar/-- had consolidated assets of ARS16.8
billion (USUS$5.4 billion) and consolidated deposits of ARS11
billion (USUS$3.5 billion) as of March 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 5, 2007, Moody's Investors Service assigned a Ba1 global
local currency rating to Banco Macro S.A.'s USUS$100 million
senior unsecured Argentine peso-linked notes due 2012, issued
under Macro's existing US$400 million Medium-Term Note Program.
BANCO MACRO: Fitch To Rate US$200-Million Bonds at B+/RR4
---------------------------------------------------------
Fitch is expected to assign a 'B+/RR4' Rating to Banco Macro
S.A.'s forthcoming US$200 million unsubordinated bonds due 2014.
Fitch currently rates Macro as:
-- Foreign and local currency long-term Issuer Default Rating
'B+';
-- Short-term 'B';
-- Individual 'D';
-- Support '5';
-- National long-term 'AA(arg)';
-- National short-term 'A1+(arg)'.
The rating outlook is stable.
The final ratings on the issue are contingent upon receipt of
final documentation conforming materially to information already
received.
Macro's ratings reflect its strong franchise and growth
potential, its good overall performance, sound liquidity and
capital base. The ratings also take into account the
improvement in the operating environment, although it remains
potentially volatile.
Headquartered in Buenos Aires, Argentina, Banco Macro --
http://www.macro.com.ar/-- had consolidated assets of ARS16.8
billion (US$5.4 billion) and consolidated deposits of ARS11
billion (US$3.5 billion) as of March 2007.
BANCO MACRO: Moody's Puts B2 Long-Term Foreign Curr. Debt Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a B2 long-term foreign
currency debt rating to the expected issuance of Banco Macro
S.A.'s US$200 million senior notes that are due in 2014. This
debt is issued under the bank's medium-term note program, which
amount has been recently increased to US$ 700 million, from the
initial US$400 million. The outlook on the rating is positive.
These rating was assigned to Banco Macro S.A.:
-- Foreign Currency Senior debt of US$200 million:
-- Long-term foreign currency debt rating: B2, positive outlook
Headquartered in Buenos Aires, Argentina, Banco Macro --
http://www.macro.com.ar/-- had consolidated assets of ARS11.6
billion (US$3.7 billion) and consolidated deposits of ARS6
billion (US$2 million) in deposits as of June 2007.
BANCO SUPERVIELLE: Moody's Puts Global/Local Currency Ba1 Rating
----------------------------------------------------------------
Moody's Latin America has assigned a rating of Aaa.ar (Argentine
National Scale) and Ba1 (Global Scale, Local Currency) to the
Fixed Rate and to the Class A Floating Rate Debt Securities of
Fideicomiso Financiero Supervielle Leasing III.
Moody's also assigned Argentine national scale rating of Aa1.ar
and Global Scale, Local Currency Rating of Ba2 to the Class B
Floating Rate Debt Securities. The Certificates are not rated
by Moody's.
The Debt Securities and the Certificates were issued by Equity
Trust Company (Argentina) S.A. acting solely in its capacity as
Issuer and Trustee.
The ratings assigned are primarily based upon these factors:
-- The initial credit enhancement available in the transaction
provided through 65% initial subordination for the Fixed
Rate and Class A Floating Rate Debt Securities and 20% for
the Class B Floating Rate Debt Securities;
-- The turbo-sequential payment structure;
-- The credit quality of the pool of assets, which includes
lease agreements originated by Banco Supervielle S.A.;
-- The availability of several reserve funds; and,
-- The legal structure of the transaction.
The Securitized Asset Pool
All the rated securities are backed by credit rights under
certain lease agreements originated by Banco Supervielle S.A.
The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of about
555 eligible lease agreements denominated in Argentine pesos,
bearing floating and fixed rates, originated by Banco
Supervielle S.A., in an aggregate principal amount of
ARS110,276,245.
The lessees are small and medium corporations located in
Argentina, which finance the acquisition of equipment related to
their main economic activity, such as heavy load transportation
equipment, medical equipment, construction equipment,
communications and technology, among others.
The assets of the trust include, among others, proceeds related
to principal and interest collections under the lease agreements
described in the Trust Agreement; proceeds related to the
purchase option under the lease agreements; any proceeds
collected after disposing the leased equipment; and proceeds
from physical damage and liability insurance policies.
Ownership of the leased equipment will not be assigned to the
trust.
Structure
Equity Trust Company (Argentina) S.A. (Issuer and Trustee)
issued one class of Fixed Rate Debt Securities (which bear a
fixed interest rate of 14%), two classes of Floating Rate Debt
Securities (Classes A and B) and one class of Certificates, all
denominated in Argentine pesos.
Class A Floating Rate Debt Securities will bear a BADLAR
interest rate plus 600 basis points. Class B Floating Rate Debt
Securities will bear a BADLAR interest rate plus 725 basis
points. Floating Rate Debt Securities' interest rate has a cap
of 24% p.a. and a floor of 14%.
Overall credit enhancement is comprised of: an aggregate 65%
initial subordination for the Fixed Rate and Class A Floating
Rate Debt Securities, 20% initial subordination for the Class B
Floating Rate Debt Securities; various reserve funds; and excess
spread.
Fixed Rate Debt Securities are expected to be paid off in 6
months. The payment of principal on the Class A Floating Rate
Debt Securities has a grace period of 6 months. Class B
Floating Rate Debt Securities will not receive any principal
payments until Fixed Rate and Class A Floating Rate securities
are paid in full. The Certificates are entitled to receive any
remaining cash flow after Fixed Rate and Floating Rate Debt
Securities are paid in full.
Class B Floating Rate Debt Securities will pay interest on a
quarterly basis as long as Fixed Rate and Class A Floating Rate
Debt Securities are still outstanding.
As an additional enhancement, there is a liquidity reserve fund
-- funded at closing from bond proceeds -- for an amount
equivalent to two months of interest payments on the Debt
Securities.
Banco Supervielle
Banco Supervielle is the originator of the equipment leases and
will act as the servicer of the receivables in this transaction.
Supervielle started to originate lease agreements by December
2003. The lease contracts involved in this transaction are
finance leases, in which the lessee rents the equipment for all
or nearly all of the economic life of the equipment and has the
responsibilities of maintaining the equipment in appropriate
condition.
Banco Supervielle is also the servicer in this transaction. On
Apr. 27, 2007, Moody's upgraded Supervielle's national scale
rating for deposits in local currency from Aa3.ar to Aa2.ar.
Supervielle's Bank Financial Strength Rating was also upgraded
to D- from E+.
Rating Action
Originator: Banco Supervielle S.A.
-- ARS16,541,437 in Fixed Rate Debt Securities of "Fideicomiso
Financiero Supervielle Leasing III", rated Aaa.ar (Argentine
National Scale) and Ba1 (Global Scale, Local Currency)
-- ARS22,055,249 in Class A Floating Rate Debt Securities of
"Fideicomiso Financiero Supervielle Leasing III", rated
Aaa.ar and Ba1
-- ARS49,624,310 in Class B Floating Rate Debt Securities of
"Fideicomiso Financiero Supervielle Leasing III", rated
Aa1.ar and Ba2
Issuer: Fideicomiso Financiero Supervielle Leasing III
-- Fixed Rate Debt Securities, Assigned Ba1
-- Class A Floating Rate Debt Securities, Assigned Ba1
-- Class B Floating Rate Debt Securities, Assigned Ba2
Banco Supervielle -- http://www.supervielle.com.ar/-- is owned
by Banco Banex S.A., and together they form the Supervielle
Group, the sixth-largest private banking group in Argentina.
The bank operates 122 branches and payment centers, which are
mainly concentrated in the provinces of Buenos Aires, Cordoba,
Mendoza, San Luis, and Santa Fe. Banco Supervielle focuses on
individuals and the middle-market clients and corporate segments
in Argentina, including American and European corporations in
the country. It specializes in consumer loans, credit cards,
payroll payments, factoring, trade, leasing, and financial
trustees, and it holds a diversified portfolio in retail, auto
parts, civil construction, agrochemical, manufacturing, and
other industries. Joining IFC's Global Trade Finance Program
will help Banco Supervielle expand, helping serve the trade
finance needs of the country's small and medium enterprises. It
will also help the bank to consolidate its business in other
segments.
BELTSCENTER SRL: Proofs of Claim Verification Ends Dec. 12
----------------------------------------------------------
Julio Cesar Capovilla, the court-appointed trustee for
Beltscenter SRL's bankruptcy proceeding, verifies creditors'
proofs of claim until Dec. 12, 2007.
Mr. Capovilla will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 5 in Buenos Aires, with the assistance of Clerk
No. 9, 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 Beltscenter 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 Beltscenter's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Capovilla is also in charge of administering Beltscenter's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Beltscenter SRL
Batalla del Pari 530
Buenos Aires, Argentina
The trustee can be reached at:
Julio Cesar Capovilla
Corrientes 3859
Buenos Aires, Argentina
BERRIES DE LA PENINSULA: Seeks for Reorganization Approval
----------------------------------------------------------
Berries de la Peninsula S.A. has requested for reorganization
approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Berries de la Peninsula to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance No. 22 in Buenos Aires. Clerk No. 43 assists the court
on this case.
The debtor can be reached at:
Berries de la Peninsula S.A.
Teniente Benjamin Matienzo 1704
Buenos Aires, Argentina
CHATEAU SA: Proofs of Claim Verification Deadline Is Nov. 22
------------------------------------------------------------
Hugo Manuel Ribote, the court-appointed trustee for Chateau
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Nov. 22, 2007.
Mr. Ribote will present the validated claims in court as
individual reports on Feb. 8, 2008. 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 Chateau 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 Chateau's accounting
and banking records will be submitted in court on
March 21, 2008.
Mr. Ribote is also in charge of administering Chateau's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Chateau S.A.
Calle Publica, Chateau Carreras
Ciudad de Cordoba, Cordoba
Argentina
The trustee can be reached at:
Hugo Manuel Ribote
Jujuy 1351, Ciudad de Cordoba
Cordoba, Argentina
CONSTRUCTORA MIR: Proofs of Claim Verification Ends Nov. 19
-----------------------------------------------------------
Monica Graciela Aquim, the court-appointed trustee for
Constructora MIR S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until Nov. 19, 2007.
Ms. Aquim will present the validated claims in court as
individual reports on Dec. 17, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Constructora Mir 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 Constructora Mir's
accounting and banking records will be submitted in court on
March 7, 2008.
Ms. Aquim is also in charge of administering Constructora Mir's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Monica Graciela Aquim
Uruguay 662
Buenos Aires, Argentina
DECOTECNICA SA: Proofs of Claim Verification Ends on Nov. 28
------------------------------------------------------------
Jorge Alberto Arias, the court-appointed trustee for Decotecnica
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Nov. 28, 2007.
Mr. Arias will present the validated claims in court as
individual reports on Feb. 14, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Decotecnica 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 Decotecnica's
accounting and banking records will be submitted in court on
April 1, 2008.
Mr. Arias is also in charge of administering Constructora Mir's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Decotecnica S.A.
Simbron 5180
Buenos Aires, Argentina
The trustee can be reached at:
Jorge Alberto Arias
Avenida Corrientes 1312
Buenos Aires, Argentina
FIDEICOMISO FINANCIERO: Moody's Assigns Ba1 Currency Ratings
------------------------------------------------------------
Moody's Latin America has assigned a rating of Aaa.ar (Argentine
National Scale) and Ba1 (Global Scale, Local Currency) to the
Fixed Rate and to the Class A Floating Rate Debt Securities of
Fideicomiso Financiero Supervielle Leasing III.
Moody's also assigned Argentine national scale rating of Aa1.ar
and Global Scale, Local Currency Rating of Ba2 to the Class B
Floating Rate Debt Securities. The Certificates are not rated
by Moody's.
The Debt Securities and the Certificates were issued by Equity
Trust Company (Argentina) S.A. acting solely in its capacity as
Issuer and Trustee.
The ratings assigned are primarily based upon these factors:
-- The initial credit enhancement available in the transaction
provided through 65% initial subordination for the Fixed
Rate and Class A Floating Rate Debt Securities and 20% for
the Class B Floating Rate Debt Securities;
-- The turbo-sequential payment structure;
-- The credit quality of the pool of assets, which includes
lease agreements originated by Banco Supervielle S.A.;
-- The availability of several reserve funds; and,
-- The legal structure of the transaction.
The Securitized Asset Pool
All the rated securities are backed by credit rights under
certain lease agreements originated by Banco Supervielle S.A.
The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of about
555 eligible lease agreements denominated in Argentine pesos,
bearing floating and fixed rates, originated by Banco
Supervielle S.A., in an aggregate principal amount of
ARS110,276,245.
The lessees are small and medium corporations located in
Argentina, which finance the acquisition of equipment related to
their main economic activity, such as heavy load transportation
equipment, medical equipment, construction equipment,
communications and technology, among others.
The assets of the trust include, among others, proceeds related
to principal and interest collections under the lease agreements
described in the Trust Agreement; proceeds related to the
purchase option under the lease agreements; any proceeds
collected after disposing the leased equipment; and proceeds
from physical damage and liability insurance policies.
Ownership of the leased equipment will not be assigned to the
trust.
Structure
Equity Trust Company (Argentina) S.A. (Issuer and Trustee)
issued one class of Fixed Rate Debt Securities (which bear a
fixed interest rate of 14%), two classes of Floating Rate Debt
Securities (Classes A and B) and one class of Certificates, all
denominated in Argentine pesos.
Class A Floating Rate Debt Securities will bear a BADLAR
interest rate plus 600 basis points. Class B Floating Rate Debt
Securities will bear a BADLAR interest rate plus 725 basis
points. Floating Rate Debt Securities' interest rate has a cap
of 24% p.a. and a floor of 14%.
Overall credit enhancement is comprised of: an aggregate 65%
initial subordination for the Fixed Rate and Class A Floating
Rate Debt Securities, 20% initial subordination for the Class B
Floating Rate Debt Securities; various reserve funds; and excess
spread.
Fixed Rate Debt Securities are expected to be paid off in 6
months. The payment of principal on the Class A Floating Rate
Debt Securities has a grace period of 6 months. Class B
Floating Rate Debt Securities will not receive any principal
payments until Fixed Rate and Class A Floating Rate securities
are paid in full. The Certificates are entitled to receive any
remaining cash flow after Fixed Rate and Floating Rate Debt
Securities are paid in full.
Class B Floating Rate Debt Securities will pay interest on a
quarterly basis as long as Fixed Rate and Class A Floating Rate
Debt Securities are still outstanding.
As an additional enhancement, there is a liquidity reserve fund
-funded at closing from bond proceeds- for an amount equivalent
to two months of interest payments on the Debt Securities.
Banco Supervielle
Banco Supervielle is the originator of the equipment leases and
will act as the servicer of the receivables in this transaction.
Supervielle started to originate lease agreements by December
2003. The lease contracts involved in this transaction are
finance leases, in which the lessee rents the equipment for all
or nearly all of the economic life of the equipment and has the
responsibilities of maintaining the equipment in appropriate
condition.
Banco Supervielle is also the servicer in this transaction. On
Apr. 27, 2007, Moody's upgraded Supervielle's national scale
rating for deposits in local currency from Aa3.ar to Aa2.ar.
Supervielle's Bank Financial Strength Rating was also upgraded
to D- from E+.
Rating Action
Originator: Banco Supervielle S.A.
-- ARS16,541,437 in Fixed Rate Debt Securities of "Fideicomiso
Financiero Supervielle Leasing III", rated Aaa.ar (Argentine
National Scale) and Ba1 (Global Scale, Local Currency)
-- ARS22,055,249 in Class A Floating Rate Debt Securities of
"Fideicomiso Financiero Supervielle Leasing III", rated
Aaa.ar and Ba1
-- ARS49,624,310 in Class B Floating Rate Debt Securities of
"Fideicomiso Financiero Supervielle Leasing III", rated
Aa1.ar and Ba2
Issuer: Fideicomiso Financiero Supervielle Leasing III
-- Fixed Rate Debt Securities, Assigned Ba1
-- Class A Floating Rate Debt Securities, Assigned Ba1
-- Class B Floating Rate Debt Securities, Assigned Ba2
MUNDI TOUR: Proofs of Claim Verification Deadline Is Dec. 17
------------------------------------------------------------
Carlos Daniel Grela, the court-appointed trustee for Mundi Tour
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Dec. 17, 2007.
Mr. Grela will present the validated claims in court as
individual reports on March 4, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Mundi Tour 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 Mundi Tour's
accounting and banking records will be submitted in court on
April 8, 2008.
Mr. Grela is also in charge of administering Mundi Tour's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Carlos Daniel Grela
Tucuman 1585
Buenos Aires, Argentina
PREMECOL SC: Proofs of Claim Verification Deadline Is Dec. 13
-------------------------------------------------------------
Pablo Arturo Melaragni, the court-appointed trustee for Premecol
S.C.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Dec. 13, 2007.
Mr. Melaragni will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Premecol
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 Premecol's accounting
and banking records will be submitted in court.
Infobae didn't state the reports submission deadlines.
Mr. Melaragni is also in charge of administering Premecol's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Pablo Arturo Melaragni
Viamonte 783
Buenos Aires, Argentina
SENACO SRL: Proofs of Claim Verification Is Until Dec. 18
---------------------------------------------------------
Jorge Podhorzer, the court-appointed trustee for Senaco SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until
Dec. 18, 2007.
Mr. Podhorzer will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 12 in Buenos Aires, with the assistance of Clerk
No. 23, 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 Senaco 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 Senaco's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Podhorzer is also in charge of administering Senaco's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Senaco SRL
General Urquiza 885
Buenos Aires, Argentina
The trustee can be reached at:
Jorge Podhorzer
Pasaje del Carmen 716
Buenos Aires, Argentina
TENNECO INC: Elects Dennis J. Letham to Board of Directors
-----------------------------------------------------------
Tenneco Inc. has elected Dennis J. Letham to the company's board
of directors, effective immediately. Mr. Letham is executive
vice president, finance and chief financial officer of Anixter
International Inc., a US$5.5 billion global distributor of
communications products, wire & cable products, fasteners and
other small components for original equipment manufacturers.
"We are pleased to add Dennis Letham to our board with his
extensive financial background and global business experience,"
said Gregg Sherrill, chairman and Chief Executive Officer,
Tenneco. "We look forward to his contributions as we accelerate
our growth globally and capitalize on opportunities to enhance
shareholder value."
Mr. Letham has more than 17 years experience as a chief
financial officer and for the past 12 years, has overseen all of
Anixter International's finance, accounting, tax and internal
audit activities in the 49 countries in which the company
operates.
Prior to assuming his role as chief financial officer in 1995,
Mr. Letham served as executive vice president and chief
financial officer of Anixter, Inc., the principal operating
subsidiary of Anixter International Inc. He joined Anixter
International in 1993. Previously, he had a ten-year
career with National Intergroup Inc., where he held a number of
senior financial management positions including senior vice
president and chief financial officer.
Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) --
http://www.tenneco.com/-- manufactures automotive ride and
emissions control products and systems for both the original
equipment market and aftermarket. Brands include Monroe(R),
Walker(R), Gillet(TM) and Clevite(R) Elastomer brand names.
Among its products are Sensa-Trac(R) and Monroe Reflex(R) shocks
and struts, Rancho(R) shock absorbers, Walker(R) Quiet-Flow(R)
mufflers, Dynomax(R) performance exhaust products, and
Clevite(R)Elastomer noise, vibration and harshness control
components.
The company has operations in Argentina, Japan, and Germany.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 17, 2007, Fitch Ratings has affirmed these ratings of
Tenneco, Inc:
-- Issuer Default Rating at 'BB-';
-- Senior secured revolver at 'BB+';
-- Senior secured term loan A at 'BB+';
-- Senior secured tranche B-1 LC/revolver 'BB+';
-- Senior secured second lien notes 'BB';
-- Senior subordinated notes at 'B'.
Fitch said the rating outlook remains positive.
UTSTARCOM INC: Posts US$54 Million Net Loss for First Quarter
-------------------------------------------------------------
UTStarcom, Inc. has reported net sales for the first quarter
2007 were US$475.9 million. Gross margins for the first quarter
2007 were 15.8% and net loss for the quarter was US$54 million,
or a loss of (US$0.45) per share.
The company also announced it expected to file its financial
results for the second quarter of 2007 as soon as practicable,
at which time the company will host a conference call with
investors to discuss both first and second quarter results.
"Although we are disappointed with our first quarter results, as
we begin to look forward, we are encouraged by the number of new
contracts and new customers we signed recently as well as the
momentum of our core businesses, particularly for IPTV in China
and India," stated Fran Barton, Chief Financial Officer of
UTStarcom, Inc.
Headquartered in Alameda, California, UTStarcom Inc. (Nasdaq:
UTSI) -- http://www.utstar.com/-- provides IP-based, end-to-end
networking solutions and international service and support. The
company sells its broadband, wireless, and handset solutions to
operators in both emerging and established telecommunications
markets around the world. The company maintains operations in
France, Italy, Spain, China, India, Japan, Argentina and Brazil.
* * *
As reported on Jan. 18, 2007, noteholders of UTStarcom Inc.'s
7/8% convertible subordinated notes due 2008 agreed to the
proposed amendments of certain provisions of the indenture
pursuant to which the notes were issued and a waiver of rights
to pursue remedies available under the indenture with respect to
certain default.
Under the terms of the indenture, during the period beginning
Jan. 9, 2007, and ending 5:30 p.m., May 31, 2007, any failure by
the company to comply with certain provisions will not result in
a default or an event of default, and the Notes will accrue an
additional 6.75% per annum in special interest from and after
Jan. 9, 2007, to the maturity date of the Notes, unless the
Notes are earlier repurchased or converted.
VALMAS SRL: Proofs of Claim Verification Deadline Is Dec. 20
------------------------------------------------------------
Maria Alicia Nadales, the court-appointed trustee for Valmax
SRL's bankruptcy proceeding, verifies creditors' proofs of claim
until Dec. 20, 2007.
Ms. Nadales will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 3 in Buenos Aires, with the assistance of Clerk
No. 5, 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 Valmax 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 Valmax's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Ms. Nadales is also in charge of administering Valmax's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Valmax SRL
Doblas 138, PB
Buenos Aires, Argentina
The trustee can be reached at:
Maria Alicia Nadales
Hipolito Yrigoyen 1349
Buenos Aires, Argentina
=============
B E R M U D A
=============
ELAN CORP: Third Parties Eye Biogen for Likely Acquisition
----------------------------------------------------------
Elan Corporation Plc has noted the announcement on
Oct. 12, 2007, by Biogen Idec Inc. that it received expressions
of interest from third parties and that its Board of Directors
has authorized its management to evaluate potential interest in
acquiring the company.
Elan has a 50% interest in the TYSABRI collaboration. TYSABRI
was discovered and largely developed by Elan, and was partnered
with Biogen in 2000 for multiple indications. Under the terms
of the Collaboration Agreement, if a third party acquires
control of Biogen, Elan has several options:
-- the right to acquire for fair value the 50% economic
interest in TYSABRI currently held by Biogen;
-- under certain circumstances, the ability to sell its 50%
economic interest in TYSABRI; or,
-- to continue with the existing agreement.
Elan also may consider restructuring the Collaboration Agreement
in connection with a third party's acquisition of Biogen.
If Biogen's evaluation process results in a change of control,
Elan will evaluate the forgoing options in the best interest of
its shareholders. Elan has engaged Lehman Brothers to assist in
assessing and analyzing all options as appropriate.
About the Company
Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology
company. Elan shares trade on the New York, London and Dublin
Stock Exchanges. Elan has locations in Bermuda and Japan.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 15, 2007, Standard & Poor's Ratings Services revised its
outlook on Elan Corp. PLC to positive from stable and affirmed
the ratings on the company and its subsidiaries, including the
'B' corporate credit rating.
In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the corporate families in the Gaming, Lodging and Leisure,
Manufacturing, and Energy sectors, Moody's Investors Service the
rating agency confirmed its B3 Corporate Family Rating for Elan
Corporation plc and assigned a B2 probability-of-default rating
to the company.
Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.
* Issuer: Elan Finance plc
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- --------
US$300M Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$300M Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$150M Senior Unsecured
Regular Bond/Debenture
Due 2013 B3 LGD4 65%
US$850M 7.75% Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$465M 8.875% Senior Unsecured
Regular Bond/Debenture
Due 2013 B3 LGD4 65%
ELAN CORPORATION: FDA Extends TYSABRI Review Until Jan. 13, 2008
----------------------------------------------------------------
The U.S. Food and Drug Administration informed the Elan
Corporation plc and Biogen Idec that it will extend its
regulatory review of TYSABRI(R) (natalizumab) as a treatment for
Crohn's disease by up to three months.
The companies have been informed by the FDA that the Agency
requires additional time to review information regarding the
proposed TYSABRI risk management plan for Crohn's disease.
Under this revised timeline, the companies anticipate action
from FDA on or before Jan. 13, 2008.
On December 15, 2006, the companies submitted to the FDA a
supplemental Biologics License Application (sBLA) for TYSABRI as
a treatment of moderately to severely active Crohn's disease.
This sBLA includes the results of three randomized, double-
blind, placebo-controlled, multi-center trials of TYSABRI
assessing the safety and efficacy as both an induction and
maintenance therapy -- ENCORE (Efficacy of Natalizumab in
Crohn's Disease Response and Remission), ENACT-1 (Efficacy of
Natalizumab as Active Crohn's Therapy) and ENACT-2 (Evaluation
of Natalizumab As Continuous Therapy). The sBLA includes data
from more than 1,500 Crohn's patients treated with TYSABRI, as
well as proposed labeling and a risk management plan. TYSABRI
is a humanized monoclonal antibody believed to block entry of
inflammatory immune cells into the wall of the intestine,
thus limiting inflammatory damage in Crohn's disease. TYSABRI
is the first potential treatment for Crohn's disease with this
proposed mechanism of action.
About TYSABRI
In the US, TYSABRI is approved as a monotherapy treatment for
relapsing forms of MS. TYSABRI increases the risk of
progressive multifocal leukoencephalopathy, an opportunistic
viral infection of the brain that usually leads to death or
severe disability. Patients should be monitored at regular
intervals for any new or worsening signs or symptoms suggestive
of PML. Because of the increased risk of PML, TYSABRI is
generally recommended for patients who have had an inadequate
response to, or are unable to tolerate, alternate MS therapies.
It is available in the US only through a restricted distribution
program called the TOUCH Prescribing Program.
In the European Union, TYSABRI is indicated as a single disease-
modifying therapy in highly active relapsing-remitting MS
patients. It is for patients with high disease activity despite
treatment with a beta-interferon or in patients with rapidly
evolving severe relapsing-remitting MS.
Serious adverse events that occurred in TYSABRI-treated patients
included hypersensitivity reactions (e.g., anaphylaxis),
infections, depression and gallstones. In MS trials, the
incidence and rate of other serious and common adverse events,
including the overall incidence and rate of infections, were
balanced between treatment groups. Herpes infections were
slightly more common in patients treated with TYSABRI. Serious
opportunistic and other atypical infections have been observed
in TYSABRI-treated patients, some of whom were receiving
concurrent immunosuppressants. Common adverse events reported
in TYSABRI-treated patients includee headache, fatigue, infusion
reactions, urinary tract infections, joint and limb pain, lower
respiratory infections, rash, gastroenteritis, abdominal
discomfort, vaginitis, and diarrhea.
Worldwide, more than 10,000 MS patients are currently receiving
therapy with TYSABRI, either in the commercial setting or in
clinical trials. TYSABRI was discovered by Elan and is co-
developed with Biogen Idec.
About the Company
Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology
company. Elan shares trade on the New York, London and Dublin
Stock Exchanges. The company has locations in Bermuda and
Japan.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 15, 2007, Standard & Poor's Ratings Services revised its
outlook on Elan Corp. PLC to positive from stable and affirmed
the ratings on the company and its subsidiaries, including the
'B' corporate credit rating.
In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the corporate families in the Gaming, Lodging and Leisure,
Manufacturing, and Energy sectors, Moody's Investors Service the
rating agency confirmed its B3 Corporate Family Rating for Elan
Corporation plc and assigned a B2 probability-of-default rating
to the company.
Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.
* Issuer: Elan Finance plc
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- --------
US$300M Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$300M Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$150M Senior Unsecured
Regular Bond/Debenture
Due 2013 B3 LGD4 65%
US$850M 7.75% Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$465M 8.875% Senior Unsecured
Regular Bond/Debenture
Due 2013 B3 LGD4 65%
FOSTER WHEELER: To Hold Earnings Conference Call on November 7
--------------------------------------------------------------
Foster Wheeler Ltd. plans to hold a conference call on
Nov. 7, 2007, at 11:00 a.m. (Eastern) to discuss its financial
results for the third quarter of 2007. The company expects to
release the results the same day, before the market opens.
The call will be accessible to the public by telephone or
webcast, and the company will post an accompanying slide
presentation in the investor relations section of its web site
http://www.fwc.com/ To listen to the call by telephone, dial
973-935-8752 (conference I.D. No. 9357886) approximately ten
minutes before the call.
A replay of the call will be available on the company's web site
as well as by telephone. To listen to the replay by telephone,
dial 973-341-3080 (replay passcode 9357886# required) starting
one hour after the conclusion of the call through 8:00 p.m.
(Eastern) on Dec. 5, 2007. The replay can also be accessed on
the company's web site for four weeks following the call.
About Foster Wheeler
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.
=============
B O L I V I A
=============
INT'L PAPER: Board Oks Amendment of Certificate of Incorporation
----------------------------------------------------------------
International Paper Co.'s Board of Directors has authorized an
amendment to the company's certificate of incorporation to
declassify the board of directors and to provide for the annual
election of directors. The company's proxy statement will
include a proposal to shareholders, recommended by the board, to
approve the amendment at the 2008 annual shareholders' meeting.
The directors of International Paper currently are elected by
class to staggered three-year terms. If the amendment is
approved, declassification will be phased in over a three-year
period. Beginning with the 2011 annual meeting, all directors
will be elected annually for one-year terms. The phased-in
approach allows for a simplified transition under both New York
law and the company's certificate of incorporation, and provides
needed continuity throughout the company's transformation plan.
"Our board of directors has reviewed these issues carefully and
decided to begin instituting this change," said John Faraci,
International Paper chairman and chief executive officer. "Over
the past several years, the company considered the issue of
annual director elections, and with the transformation plan well
underway, we believe the timing is right to move forward."
Separately, the board of directors also unanimously authorized
an amendment to the company's certificate of incorporation to
provide for the election of directors by majority vote,
following a 2007 shareholder proposal, endorsed by the board, in
favor of the change. The company's proxy statement will include
a proposal to shareholders, recommended by the board, to approve
this amendment at the 2008 annual shareholders' meeting.
Details of these actions will be provided in the company's proxy
statement, which will be sent to all shareholders in advance of
the 2008 annual meeting.
About International Paper
Based in Stamford, Connecticut, International Paper Co. (NYSE:
IP) -- http://www.internationalpaper.com/-- is in the forest
products industry for more than 100 years. The company is
currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the U.S., Europe, South America and Asia.
Its South American operations include, among others, facilities
in Argentina, Brazil, Bolivia, and Venezuela. These businesses
are complemented by an extensive North American merchant
distribution system. International Paper is committed to
environmental, economic and social sustainability, and has a
long-standing policy of using no wood from endangered forests.
* * *
International Paper Co. carries Moody's Investors Service's Ba1
senior subordinate rating and Ba2 Preferred Stock rating.
In December 2005, Moody's Investors Service placed International
Paper Co.'s senior subordinate rating at 'Ba1'. The rating
still holds to date with a stable outlook.
===========
B R A Z I L
===========
ACTUANT CORP: Two-for-One Stock Split Takes Effect on Nov. 8
------------------------------------------------------------
Actuant Corporation's Board of Directors has approved a two-for-
one split of its Class A common stock payable on Nov. 8, 2007,
to shareholders of record on Oct. 29, 2007. The stock split
will be in the form of a stock dividend.
Bob Arzbaecher, Chief Executive Officer of Actuant, said "This
stock split, our second in four years, recognizes Actuant's
consistent growth in sales, earnings and cash flows. Since the
spin-off of APW, Ltd in August of 2000, Actuant's stock value
has appreciated from US$7.65 per share to approximately US$68
per share, a compounded average annual growth rate of over 35%.
We believe that Actuant's business model of core sales growth
plus acquisitions, combined with margin improvement from our
LEAD (Lean Enterprise Across Disciplines) and AIM (Acquisition
Integration Model) processes and our Return on Invested Capital
(ROIC) focus will continue to drive our future success."
About Actuant Corp.
Headquartered in Butler, Wis., Actuant Corp. (NYSE: ATU) --
http://www.actuant.com/-- is a diversified industrial company
with operations in more than 30 countries including Australia,
China, Italy, United Kingdom, Brazil, among others. The Actuant
businesses are market leaders in highly engineered position and
motion control systems and branded hydraulic and electrical
tools and supplies. The company employs a workforce of more
than 6,700 worldwide.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 6, 2007, Moody's Investors Service assigned a Ba2 (LGD3,
43%) rating to Actuant Corporation's USUS$250 million senior
unsecured notes and affirmed the company's Ba2 Corporate Family
Rating.
Standard & Poor's Ratings Services assigned its 'BB-' rating to
Actuant Corp.'s proposed USUS$250 million senior unsecured notes
due 2017. The proceeds from the notes will be principally used
to repay a portion of borrowings under the company's senior
credit facility due 2009.
AMR CORP: Earns US$175 Million in Third Quarter Ended Sept. 30
--------------------------------------------------------------
AMR Corporation, the parent company of American Airlines Inc.,
disclosed Wednesday a net profit of US$175 million for the third
quarter of 2007. The results for the third quarter of 2007
include the impact of a US$40 million charge to reflect an
adjustment for additional salary and benefit expense accruals
related to years 2003 through 2006 and the first six months of
2007.
The current quarter results compare to a net profit of US$15
million for the third quarter of 2006. The year-ago results
included a US$99 million non-cash charge in Other Income to
reduce the book value of certain outstanding fuel hedge
contracts.
AMR reported third quarter consolidated revenues of
approximately US$5.9 billion, an increase of 1.7% year over
year. Other revenues, including sales from such sources as
confirmed flight changes, purchased upgrades, Buy-on-Board food
services and third-party maintenance work, increased 5.7% year
over year to US$352 million in the third quarter.
"While record fuel prices in the third quarter were a reminder
of the external challenges that we continue to face, we again
demonstrated our ongoing progress by posting our sixth straight
profitable quarter and our largest net profit in any third
quarter since 2000," said AMR chairman and chief executive
officer Gerard Arpey. "We continued to improve our balance
sheet while investing in key customer service initiatives,
including taking steps to renew our fleet, add new routes, and
enhance several products and services. However, we must step up
our continued focus on managing costs, work to improve our
profit margins and continue our momentum throughout 2007 and
beyond."
Operational Performance
American's mainline passenger revenue per available seat mile
increased by 5.0% in the third quarter compared to the year-ago
quarter.
Mainline capacity, or total available seat miles, in the third
quarter decreased 2.8% compared to the same period in 2006, as
the company continued to flatten its schedule to more
efficiently utilize its fleet and other resources.
American's mainline load factor -- or the percentage of total
seats filled -- was a record 83.9% during the third quarter,
compared to 81.7% in the third quarter of 2006. American's
third-quarter yield, which represents average fares paid,
increased 2.3% compared to the third quarter of 2006, its 10th
consecutive quarter of year-over-year yield increases.
American's mainline cost per available seat mile in the third
quarter increased 3.9% year over year, which was 0.8 percentage
points higher than it would have been as a result of the
US$40 million charge to adjust salary and benefit expense
accruals from prior periods. A pproximately US$30 million of
the charge is attributable to years 2003 through 2006 and
approximately US$10 million is attributable to the first half of
2007.
Third quarter unit costs were also negatively affected by
factors such as accelerated depreciation on assets being
replaced through planned aircraft cabin refurbishment projects;
certain investments to improve the customer experience; higher
revenue-related expenses such as food and beverage and credit
card fees; and weather cancellations in July.
Excluding fuel and the charge, mainline unit costs in the third
quarter increased by 4.0% year over year. Arpey said that the
company continues working to achieve US$300 million in targeted
cost savings for 2007 and continues to focus on cost
containment. Among recent examples, American earlier this month
announced a consolidation of its reservations offices that will
affect the Cincinnati Reservations Office, effective September
2008. While all of the CRO employees have been offered jobs
within American's Reservations group, by consolidating its
reservations operations American is able to reduce costs.
Balance Sheet Improvement
AMR continued to strengthen its balance sheet in the third
quarter by further reducing debt and improving its liquidity
position. AMR ended the third quarter with US$5.8 billion in
cash and short-term investments, including a restricted balance
of US$447 million, compared to a balance of US$5.5 billion in
cash and short-term investments, including a restricted balance
of US$464 million, at the end of the third quarter of 2006.
AMR reduced Total Debt, which it defines as the aggregate of its
long-term debt, capital lease obligations, the principal amount
of airport facility tax-exempt bonds and the present value of
aircraft operating lease obligations, to US$16.6 billion at the
end of the third quarter of 2007, compared to US$19 billion a
year earlier. AMR reduced Net Debt, which it defines as Total
Debt less unrestricted cash and short-term investments, from
US$14 billion at the end of the third quarter of 2006 to
US$11.2 billion in the third quarter of 2007.
As a result of scheduled principal payments as well as
incremental efforts to strengthen its balance sheet, AMR's net
interest expense for the first nine months of 2007 was US$133
million lower than in the same period in 2006, a 23% reduction.
AMR contributed US$200 million to its defined benefit pension
plans in the third quarter, as the company continues to meet
this important commitment to its employees. With the third
quarter contribution, the company has contributed US$380 million
to these plans in 2007, meeting its projected commitment for the
year. The company has contributed nearly US$2 billion to these
plans since 2002.
About AMR Corporation
Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:
AMR) operates with its principal subsidiary, American Airlines
Inc. -- http://www.aa.com/-- a worldwide scheduled passenger
airline. At the end of 2006, American provided scheduled jet
service to about 150 destinations throughout North America, the
Caribbean, Latin America, Europe and Asia, including Belgium,
Brazil, Japan, among others. American is also a scheduled
airfreight carrier, providing freight and mail services
to shippers throughout its system.
Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle." American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.
* * *
As reported in the Troubled Company Reporter on June 21, 2007,
Moody's Investors Service assigned a rating of Caa1 to the
Chicago O'Hare International Airport Special Facility Revenue
Refunding Bonds, Series 2007 (American Airlines Inc. Project).
Moody's affirmed all ratings of AMR Corporation and its
subsidiaries, corporate family rating at B2, and the outlook
remained stable.
BANCO NACIONAL: New Loans Increase to BRL41.8B in First 9 Mos.
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that the new loans it granted increased by 34.1% to
BRL41.8 billion in the first nine months of 2007, compared to
the same period last year.
Business News Americas relates that Banco Nacional loan
approvals rose 32.4% to BRL60.5 billion in 2007, from 2006.
Loan requests grew 25.6% to BRL86.3 billion.
According to BNamericas, loans to small and medium-sized
enterprises increased 42% to BRL11.0 BILLION in the first nine
months of this year, from the same period last year.
Banco Nacional granted BRL62.6 billion in new loans in the 12
months ended September 2007, about 32% higher compared to the
previous 12 months. Loan approvals rose 37% to BRL89.1 billion.
Loan requests grew 30% to BRL124 billion, BNamericas states.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's, and a BB+ long-term foreign issuer
credit rating from Standards and Poor's. The ratings were
assigned in August and May 2007, respectively.
BANCO NACIONAL: Okays BRL252-Million Loan for NatGas Firm CEG
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social said in a
statement that it has authorized a BRL252-million loan for Rio
de Janeiro natural gas distributor CEG-Distribuidora de Gas Rio
De Janeiro.
Banco Nacional told Business News Americas that Spain's Gas
Natural subsidiary CEG will use the loan on the development,
replacement and upgrade of the firm's natural gas distribution
network in the conversion from liquefied petroleum gas to
natural gas.
The BRL252-million loan accounts for 66% of the project's total
cost, which is BRL385 million, BNamericas states.
About CEG-Distribuidora
CEG-Distribuidora de Gas Rio De Janeiro -- manufactures,
distributes and operates gas facilities in the state of Rio de
Janeiro. It also provides related by-products to residential,
commercial and industrial consumers. It has 65 distributing
channels in the municipals of Rio de Janeiro.
About Banco Nacional
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's, and a BB+ long-term foreign issuer
credit rating from Standards and Poor's. The ratings were
assigned in August and May 2007, respectively.
CA INC: Launches US$30 Million Technology Center in India
---------------------------------------------------------
CA Inc. has opened its India Technology Center in Hyderabad at a
ribbon-cutting ceremony hosted by CA President and Chief
Executive Officer John Swainson.
The state-of-the-art campus, which cost US$30 million to build,
reflects the substantial investment CA has made in staffing the
ITC's research and development operations and sales departments.
CA's workforce in India now exceeds 1,600. The ITC team will
take a lead role in advancing CA's Enterprise IT Management
vision of unifying and simplifying IT management.
"The ITC underscores CA's commitment to India, both as a source
of an exceptionally high-quality workforce with expertise across
the full range of leading-edge IT disciplines and as a rapidly
growing and dynamic IT market," said Swainson. "India is now
home to nearly 30 percent of our global R&D staff-further
demonstrating the importance of our operations here in our
overall business strategy."
Led by senior vice president and general manager Lokesh Jindal,
ITC software engineers will work on multiple high-profile CA
product lines that will help customers govern, manage and secure
IT more effectively and cost-efficiently-enabling them to adapt
dynamically to changing business demands and optimize returns on
their technology investments. The ITC team will also work
closely with a number of India's top-tier systems integrators to
help them with both their in-house IT needs and those of private
and public sector customers around the world.
Jindal, who is also a member of CA's global Senior Leadership
Team, is responsible for strategic leadership of the ITC and
oversight of all major business functions, including product
development and management, human resources, facilities and
finance. Before taking on the role, Jindal was vice president
of product management and strategy for CA's Business Service
Optimization business unit. Prior to joining the Company in
2002, Jindal was a principal with the McKenna Group, a leading
technology market strategy firm. Earlier, he worked as an
entrepreneur in consumer marketing and people development and as
a regional marketing manager for HCL Hewlett-Packard.
Built in the Nanakramguda Village area of the Serilingampally
Municipality, the ITC is a leading edge, 260,672 square-foot IT
facility that includes recreational facilities, a cafeteria and
a 600-seat amphitheater.
About CA
Headquartered in Islandia, New York, CA Inc. (NYSE:CA) --
http://www.ca.com/-- is an information technology management
software company that unifies and simplifies the management
ofenterprise-wide IT. Founded in 1976, CA serves customers in
more than 140 countries. The company has operations in Brazil,
Indonesia, Luxembourg, Philippines and Thailand.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 7, 2007, Standard & Poor's Rating Services affirmed its
'BB' corporate credit and senior unsecured debt ratings on
Islandia, New York-based CA Inc. S&P revised the outlook to
stable from negative.
As reported in the Troubled Company Reporter-Latin America on
May 31, 2007, Fitch has affirmed these ratings for CA, Inc.:
-- Issuer Default Rating at 'BB+';
-- Senior unsecured revolving credit facility expiring 2008
at 'BB+';
-- Senior unsecured debt at 'BB+'.
COMPANHIA SIDERURGICA: Gets Regulator OK for Cia. de Fomento Buy
----------------------------------------------------------------
Companhia Siderurgica Nacional has received authorization from
the Brazilian antitrust authority Cade for its mining unit
Namisa's purchase of iron ore miner Companhia de Fomento
Mineral, Business News Americas reports, citing a Cade
spokesperson.
As reported in the Troubled Company Reporter-Latin America on
July 26, 2007, Companhia Siderurgica said that Namisa acquired
Companhia de Fomento, which operates in Minas Gerais.
"The acquisition was approved on Oct. 10 with no restrictions,"
the spokesperson told BNamericas.
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.
NET SERVICOS: Broadband Client Base Rose by 71% in Third Quarter
----------------------------------------------------------------
NET Servicos de Comunicacao disclosed net revenue totaled
BRL744.5 million, 28.2% higher than the BRL580.9 million
recorded in the 2007 third quarter as a result of the base
growth, illustrating the company's commitment to seeing its
organic growth reflected in revenue.
The pay TV subscriber base came to 2,402,000, up by 17% on the
2007 third quarter's 2,050,000; the broadband subscriber base
reached 1,288,000, up by 71% on the 2007 third quarter's
751,000; and the voice subscriber base totaled 469,000, up by
308% on the 2007 third quarter.
Operating costs stood at BRL363.7 million, climbing by 35.8%
over the BRL267.7 million recorded in the 2007 third quarter.
The main items behind this increase were the Internet link and
the call center as a result of the client base expansion.
However, it is important to point out that the increase in link
expenses is also driven by the more widespread use of higher
speed connections, which has played a major role in this
product's growth. As for the call center, there is also another
factor that justifies the increase in expenses: the company's
constant concern about service quality. The center was thus
resized and reorganized into a model that fits the complexity of
the new products and services.
Selling, general and administrative expenses totaled BRL168.2
million, 14.4% higher than the BRL147.1 million recorded in the
2007 third quarter, thanks mainly to higher sales commissions as
a result of higher volumes and to an increase in salary
following the expansion in the number of employees, especially
in the sales area.
Consolidated EBITDA closed the quarter at BRL203.2 million,
rising 28.4% over the BRL158.2 million reported in the 2007
third quarter, with EBITDA margin stable at 27%. This result
shows that the accelerated organic growth has been led so as to
generate profitability levels compatible with the strategy
designed by the company.
Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao
-- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1--
is a subscriber TV multi-operator in Brazil, as it operates the
NET brand in major cities, including operations in the 4 largest
cities: Sao Paulo, Rio de Janeiro, Belo Horizonte and Porto
Alegre. NET also offers Broadband Internet services through its
NET VIRTUA brand name.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 23, 2007, Moody's Investors Service upgraded Net Servicos
de Comunicacao S.A.'s corporate family rating to Ba2 from B1 on
its global local currency scale and to Aa3.br from Baa2.br on
its Brazilian national scale rating. Moody's said the rating
outlook is stable. This rating action concludes the review
process initiated on Oct. 17, 2006.
SANYO ELECTRIC: Cancels Sale of Semiconductor Unit
--------------------------------------------------
Sanyo Electric Co., Ltd., withdraws plans to sell its chip unit
to Advantage Partners LLP, fueling concern that its
reorganization efforts will be delayed, Pavel Alpeyev writes for
Bloomberg News.
Mr. Alpeyev conveys that Sanyo, through an issued statement,
decided to keep Sanyo Semiconductor Co. rather than sell it
below book value, which stands at slightly less than
JPY100 billion.
Sanyo spokesman Akihiko Oiwa claims that it is company policy
not to sell assets below the "appropriate price" and declined to
further elaborate on the matter.
Nikkei Daily, according to the Bloomberg article, reported that
Advantage Partners, the investment firm that agreed to buy the
chipmaking unit for JPY110 billion, failed to raise funds from
financial institutions amid tightening credit because of the
subprime mortgage crisis.
An Advantage spokeswoman, who refused not to be identified,
declined to comment on the matter, states Mr. Alpeyev.
Osaka-based Sanyo, and its biggest shareholders, Goldman and
Daiwa Securities SMBC Co., will have to revise their
reorganization plan and plot a new strategy for the chip unit,
relates Bloomberg.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd.
-- http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.
* * *
In March 2, 2007, Fitch Ratings placed Sanyo Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.
STRATOS GLOBAL: Expects 3rd Quarter Financial Report on Nov. 7
--------------------------------------------------------------
Stratos Global Corp. will report third quarter 2007 results on
Nov. 7, 2007, following the close of the Toronto Stock Exchange.
Jim Parm, president and chief executive officer, and Paula
Sturge, chief financial officer, will conduct a conference call
with analysts to discuss these results at 8:30 a.m. EST,
Nov. 8, 2007.
Stratos Global Corporation -- http://www.stratosglobal.com/
-- is a provider of a range of advanced mobile and fixed-site
remote telecommunications solutions for users operating beyond
the reach of traditional networks. The Company serves the voice
and high-speed data connectivity requirements of a diverse array
of markets, including government, military, energy, industrial,
maritime, aeronautical, enterprise, media and recreational users
throughout the world. Stratos operates in two segments: Mobile
Satellite Services, which provides mobile telecommunications
services, primarily over the Inmarsat plc satellite system, and
Broadband Services, which provides very small aperture terminal
services, sourced on a wholesale basis from a number of the
fixed satellite system operators.
The company has offices the following regions: Europe -- Italy,
Germany, Norway, Spain, United Kingdom Asia-Pacific -- India,
Hong Kong, Singapore, Australia and Japan Latin America --
Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 9, 2007, Moody's Investors Service confirmed Stratos Global
Corporation's B1 corporate family, Ba2 senior secured and B3
senior unsecured ratings and lowered the company's speculative
grade liquidity rating to SGL-4 from SGL-3. Moody's said the
outlook is negative. The long term ratings reflect a B1
probability of default and loss-given default assessments of
LGD 2, 24% on the senior secured debt and LGD 5, 77% on the
senior unsecured notes.
SUN MICROSYSTEMS: Spares Scottish Unit from Worldwide Job Cuts
--------------------------------------------------------------
Sun Microsystems Inc. has confirmed that there will be no job
cuts at its Scottish unit in Linlithgow, amid plans to eliminate
approximately 1,500 jobs across the US, Canada, Europe and Asia,
Mark Smith writes for the Herald.
"I can assure you that the number of jobs to be lost at
Linlithgow is zero. I personally sent a letter to staff just
the other day confirming that was the case," Hugh Aitken, who
heads the Scottish unit at Linlithgow, West Lothian, was quoted
by the Herald as saying. "There may be one or maybe two sales
or marketing people who are part of the UK-wide operation and
are based at Linlithgow, and they may be part of the cuts. But
as far as our workers go, the cuts will be zero."
Mr. Aitken told the paper around 90 of the cuts would come from
UK Sun.
According to a company spokeswoman, Sun "is executing against a
restructuring plan to better align the company's resources with
its strategic business objectives."
Sun has invested a total of US$300 million at its Linlithgow
plant, which employs 620 full-time staff, the Herald relates.
About Sun Microsystems Inc.
Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services. It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.
Sun Microsystems conducts business in 100 countries around the
globe, including Brazil, Argentina, India, Hungary, United
Kingdom, among others.
* * *
Sun Microsystems Inc. carries Moody's "Ba1" probability of
default and long-term corporate family ratings with a stable
outlook. The ratings were placed on Sept. 22, 2006, and
Sept. 22, 2005, respectively.
Sun Microsystems also carries Standard & Poor's "BB+" long-term
foreign and local issuer credit ratings, which were placed on
March 5, 2004, with a stable outlook.
SUN MICROSYSTEMS: Pushes to Expand Consumer Market, Report Says
---------------------------------------------------------------
Social networking, financial services and the telecommunications
and cable industries are the computer industry's new growth
engines, The Korea Herald cites Sun Microsystems Inc.'s found
and chairman, Scott McNealy, as saying at a news conference in
Seoul.
The report relates that Mr. McNealy is in Korea attending the
2007 Korea Electronics Show.
According to The Herald, Mr. McNealy pointed out that user-
generated content is becoming the fastest-growing marketing tool
in the industry and that Sun Microsystems has increased its
investment in the areas of computing networks.
Mr. McNealy believes that Korea's strong technical expertise and
service capabilities have brought phenomenal growth to the local
market, the report notes. "We grew 14 percent in the last
fiscal year in Asia, beating our growth goal of 10 percent," he
said.
"Korea has the technical expertise that can value and
participate in R&D opportunities in the community. It is a huge
advantage," he added.
The company's focus on sharing open source applications, its
eco-responsible management, new partnerships and new growth
engines mean a bullish outlook for the next five to 10 years,
Mr. McNealy further told reporters.
"Java is run in almost all consumer electronics products. If it
is proven technology which is open and run in all Java-based
devices, our strategy will allow us to participate more
aggressively in the consumer market," he said.
Sun Microsystems, The Herald recounts, relocated its Asia-
Pacific strategic marketing headquarters to Seoul from Singapore
in June. Since its establishment in 2005, its Java Research
Center in Korea has focused on developing Java platform-based
software technologies and enabling energy-efficient computing.
Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services. It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.
* * *
Sun Microsystems Inc. carries Moody's "Ba1" probability of
default and long-term corporate family ratings with a stable
outlook. The ratings were placed on Sept. 22, 2006, and
Sept. 22, 2005, respectively.
Sun Microsystems also carries Standard & Poor's "BB+" long-term
foreign and local issuer credit ratings, which were placed on
March 5, 2004, with a stable outlook.
===========================
C A Y M A N I S L A N D S
===========================
BANK RAKYAT: Moody's Ups FC Subordinated Debt Ratings to Ba2
------------------------------------------------------------
Moody's Investors Service has raised the foreign currency long-
term debt and foreign currency long-term deposit ratings of Bank
Rakyat Indonesia.
The Not-Prime short-term deposit and bank financial strength
ratings of all 11 banks are unaffected.
"This action follows a similar action taken on Indonesia's
sovereign ratings on Oct. 18, 2007, and concludes the review
initiated on Aug. 1, 2007," says Beatrice Woo, a Moody's
VP/Senior Credit Officer.
The detailed ratings are:
-- The foreign currency subordinated debt rating was raised
to Ba2 from Ba3 and foreign currency long-term deposit
rating to B1 from B2.
-- The Not Prime foreign currency short-term deposit rating,
Baa2 global local currency deposit rating and D+ BFSR were
unaffected.
All ratings carry a stable outlook
About Bank Rakyat
Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- services comprise
Savings, Credits and Syariah. In addition, the bank divides its
financial and business services into three groups: Business
Services, consisting of bank guarantees, bank clearance,
automatic teller machines and safe deposit boxes; Financial
Services, consisting of bill payments, CEPEBRI, INKASO, deposit
acceptance, online transactions and transfers, and Other
Services, consisting of tax and fine payments, donations,
Western Union and zakat contributions. During the year ended
Dec. 31, 2005, the bank had one branch office in Cayman Islands
and two representative offices in New York and Hong Kong,
respectively.
LONGMEADOW CDO: Proofs of Claim Filing Deadline Is Nov. 2
---------------------------------------------------------
Longmeadow CDO Debt Fund I, Limited's creditors are given until
Nov. 2, 2007, to prove their claims to David Dyer, 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.
Longmeadow CDO's shareholders agreed on Sept. 17, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, Grand Cayman KY1-1104
Cayman Islands
MITRA SEJATI: Proofs of Claim Filing Ends on Nov. 2
---------------------------------------------------
Mitra Sejati International Ltd.'s creditors are given until
Nov. 2, 2007, to prove their claims to David Dyer, 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.
Mitra Sejati's shareholders agreed on Sept. 17, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, Grand Cayman KY1-1104
Cayman Islands
MONTANA FINANCE: Proofs of Claim Filing Deadline Is Nov. 2
----------------------------------------------------------
Montana Finance Limited's creditors are given until
Nov. 2, 2007, to prove their claims to David Dyer, 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.
Montana Finance's shareholders agreed on Sept. 17, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, Grand Cayman KY1-1104
Cayman Islands
NIPPON SHINPAN: Proofs of Claim Filing Deadline Is Nov. 2
---------------------------------------------------------
Nippon Shinpan Asset Funding Corporation's creditors are given
until Nov. 2, 2007, to prove their claims to David Dyer, 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.
Nippon Shinpan's shareholders agreed on Sept. 17, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, Grand Cayman KY1-1104
Cayman Islands
OCTAGON INVESTMENT: Proofs of Claim Filing Ends on Nov. 2
---------------------------------------------------------
Octagon Investment Partners III Ltd.'s creditors are given until
Nov. 2, 2007, to prove their claims to David Dyer, 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.
Octagon Investment's shareholders agreed on Sept. 17, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, Grand Cayman KY1-1104
Cayman Islands
OSCAR FUNDING: Proofs of Claim Filing Deadline Is Nov. 2
--------------------------------------------------------
Oscar Funding Corp. XI's creditors are given until Nov. 2, 2007,
to prove their claims to David Dyer, 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.
Oscar Funding's shareholders agreed on Sept. 17, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, Grand Cayman KY1-1104
Cayman Islands
PACIFICA PARTNERS: Proofs of Claim Filing Is Until Nov. 2
---------------------------------------------------------
Pacifica Partners I G.P. Co., Ltd.'s creditors are given until
Nov. 2, 2007, to prove their claims to David Dyer, 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.
Pacifica Partners' shareholders agreed on Sept. 17, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, Grand Cayman KY1-1104
Cayman Islands
PARMALAT SPA: Settles Case Against Banca Ifis for EUR2 Million
--------------------------------------------------------------
Parmalat S.p.A communicates that a settlement has been reached
with Banca Ifis S.p.A. whereby all current and potential claims
by the parties originating from dealings that took place in the
period prior to Parmalat being placed into Extraordinary
Administration, have been amicably resolved.
Parmalat communicates, accordingly, that its revocatory action
against Banca Ifis has been settled with restitution by Banca
Ifis of an amount of EUR2 million and its agreement not to file
the unsecured claim arising from the returned payment in the
list of Parmalat's creditors.
About Parmalat
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that
can be stored at room temperature for months. It also has about
40 brand product lines, which include yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.
The Company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases. On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York. In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases.
PLAZA MIDOUSUJI: Proofs of Claim Filing Ends on Nov. 2
------------------------------------------------------
Plaza Midousuji Holding Co., Ltd.'s creditors are given until
Nov. 2, 2007, to prove their claims to David Dyer, 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.
Plaza Midousuji's shareholders agreed on Sept. 17, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, Grand Cayman KY1-1104
Cayman Islands
RHOMBUS CDO: Proofs of Claim Filing Is Until Nov. 2
---------------------------------------------------
Rhombus CDO Limited's creditors are given until Nov. 2, 2007, to
prove their claims to David Dyer, 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.
Rhombus CDO's shareholders agreed on Sept. 17, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, Grand Cayman KY1-1104
Cayman Islands
RMB CDO: Proofs of Claim Filing Deadline Is Nov. 2
--------------------------------------------------
RMB CDO I Limited's creditors are given until Nov. 2, 2007, to
prove their claims to David Dyer, 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.
RMB CDO's shareholders agreed on Sept. 17, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, Grand Cayman KY1-1104
Cayman Islands
=========
C H I L E
=========
ANIXTER INT'L: To Report Third Quarter Earnings on October 23
-------------------------------------------------------------
Anixter International Inc. will report final results for the
third quarter of 2007 on Oct. 23, 2007, and broadcast a
conference call to discuss these results at 9:30 a.m., central
time.
The call will be via Webcast by CCBN and can be accessed at
Anixter's Website at http://www.anixter.com/webcasts/ The
Webcast also will be available over CCBN's Investor Distribution
Network to both institutional and individual investors.
Individual investors can listen to the call through CCBN's
individual investor center at http://www.companyboardroom.comor
by visiting any of the investor sites in CCBN's Individual
Investor Network.
About Anixter
Anixter International Inc. -- http://www.anixter.com/-- is the
world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts ("C" class
inventory components) to original equipment manufacturers.
The company has nearly US$725 million in inventory of more than
325,000 products, logistics network of 197 warehouses with more
than 5 million square feet of space. It has operations in Latin
American countries including Mexico, Costa Rica, Brazil and
Chile.
* * *
Anixter International Inc. carries Moody's Investors Service's
Ba2 corporate family rating. Anixter Inc.'s US$200 million
guaranteed senior unsecured notes and its 3.25% LYON's notes
carry Moody's Ba1 and B1 ratings, respectively. Moody's said
the rating outlook is stable.
Anixter International Inc. carries Fitch's 'BB+' Issuer Default,
senior unsecured notes and senior unsecured bank credit facility
Ratings. Similarly, Anixter Inc. carries Fitch's 'BB+' issuer
default rating and 'BB-' senior unsecured debt rating. Fitch's
action affects about US$700 million of public debt securities.
Fitch said the rating outlook is stable.
BOSTON SCIENTIFIC: Mulls Restructuring & Sale of Some Businesses
----------------------------------------------------------------
Boston Scientific Corporation has announced several new
initiatives designed to enhance short- and long-term shareholder
value, including the restructuring or sale of several business
units, as well as substantial expense and head count reductions
intended to bring expenses in line with revenues. The company
also said it is making good progress toward the execution of its
previously announced plans to sell non-strategic assets and
monetize the majority of its public and private investment
portfolio. The company said these initiatives will help provide
better focus on core businesses and priorities, which will
strengthen Boston Scientific for the future and lead to
increased, sustainable and profitable sales growth.
The company plans to reduce its operating expenses against a
2007 baseline of approximately US$4.1 billion by an estimated
US$475 million to US$525 million in 2008, representing a
reduction of 12 to 13 percent, with a further reduction of an
estimated US$25 million to US$50 million in 2009.
The company plans to eliminate approximately 2,300 positions
worldwide, or approximately 13 percent of an 18,000-person, non-
direct labor workforce baseline as of June 30, 2007. Eligible
employees affected by the head count reductions will be offered
severance packages, outplacement services and other appropriate
assistance and support. The reduction activities will be
initiated this month and are expected to be substantially
completed worldwide by the end of 2008. Reductions outside the
United States will be initiated following completion of
information sharing and consultations with required bodies. In
addition, another approximately 2,000 employees are expected to
leave the company in connection with the previously announced
business divestitures.
The reductions will result in total pre-tax charges of
approximately US$450 million to US$475 million, or US$0.20 to
US$0.22 per diluted share. These mostly cash charges will be
recorded primarily as restructuring expenses, with a portion
recorded through other lines of the income statement.
Approximately US$275 million to US$300 million will be recorded
in the fourth quarter of 2007 with the remainder expected to be
recorded throughout 2008 and 2009.
The company plans to restructure several businesses and product
franchises in order to leverage resources, strengthen
competitive positions, and create a more simplified and
efficient business model. Key components of the business
restructuring plan include:
-- The Peripheral Interventions and Interventional Cardiology
businesses will be combined under a single management
structure to help create a more integrated business focused
on interventional specialists, while enhancing technology
and management efficiencies.
-- The Electrophysiology business will be integrated with the
Cardiac Rhythm Management business to better serve the
needs of electrophysiologists by creating a more efficient
organization.
-- The Oncology business and its four franchises will be
restructured. Three will be integrated into other
businesses within Boston Scientific, and the Oncology
Venous Access franchise will be combined with the Fluid
Management business.
-- The Company is actively seeking buyers for the combined
Fluid Management/Oncology Venous Access business, as well
as its Cardiac Surgery and Vascular Surgery businesses.
The Company has announced it has entered into a definitive
agreement to sell its Auditory business. Collectively,
these businesses represent approximately US$550 million in
2007 sales for Boston Scientific.
-- The International group will be consolidated from three
regions to two. The existing three regions are: Europe,
Asia Pacific/Japan, and Inter-Continental; the two new
regions will be: Europe/Middle East/Africa, and
Canada/Latin America/Asia Pacific/Japan.
"The expense and head count reductions we are announcing today
are intended to bring our expenses back in line with our
revenues, while preserving our ability to make investments in
quality, R&D, capital and our people that are essential to our
long-term success," said Jim Tobin, Boston Scientific President
and Chief Executive Officer. "While difficult, these reductions
are in the best interest of the Company and will create greater
value for our customers and their patients, as well as for our
employees and shareholders. These actions will enable us to
institute meaningful change that will create lasting benefits."
"We understand the impact these reductions will have on our
employees, and we are committed to helping ease the transition,"
said Mr. Tobin. "We will treat everyone with respect and
dignity, and we will provide support to affected employees."
Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties. The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.
* * *
As reported in the Troubled Company Reporter on Aug. 28, 2007,
Standard & Poor's Ratings Services said that its ratings on
Boston Scientific Corp., including the 'BB+' corporate credit
rating, remain on CreditWatch with negative implications, where
they were placed Aug. 3, 2007.
===================
C O S T A R I C A
===================
* COSTA RICA: World Bank To Support DR-CAFTA Implementation
-----------------------------------------------------------
World Bank President Robert B. Zoellick pledged the Bank's
support to Costa Rica as it moves to participate in the
Dominican Republic-Central America Free Trade Agreement
(DR-CAFTA).
Following the country's recent vote endorsing DR-CAFTA, Mr.
Zoellick congratulated Costa Rican President and Nobel Peace
Prize winner Oscar Arias and the people of Costa Rica in a
letter. He said:
"I personally witnessed the key role you played Mr.
President, since the early stages of the DR-CAFTA- process.
We are ready to support your government with the
implementation and full use of the accord for the benefit of
all Costa Ricans. I have asked my colleagues to actively
follow up with your implementation team."
According to World Bank research, regional trade agreements can
make important contributions to a country's efforts to achieve
economic growth and overcome poverty. Costa Rica is well placed
to benefit from more open trade because of its strong
institutions and high level of education.
Mr. Zoellick, who played an active role in launching and
negotiating DR-CAFTA in the past, will meet with Costa Rican
Finance Minister Guillermo Zuniga and other Central American
finance ministers to discuss implementation during the Annual
Meetings of the World Bank and the IMF this weekend.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 10, 2007, 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.
As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa
Rica's country ceiling to BB+ from BB.
===============
H O N D U R A S
===============
CABLE & WIRELESS: Shortlisted To Bid for Honduras Mobile License
----------------------------------------------------------------
Cable & Wireless has been prequalified to bid for a mobile
license in Honduras, Business News Americas reports, citing a
source at Honduran telecoms regulator Conatel.
The source told BNamericas that other firms who prequalified
include:
-- Spain's Telefonica,
-- Jamaican group Digicel, and
-- Mexico's Grupo Iusacell.
According to BNamericas, the source said that Conatel is
offering spectrum in the up to 1890 megahertz and 1970 megahertz
bands. The regulator refers to the license as a "PCS
concession."
The auction for the mobile license will be held on
Dec. 19, 2007, BNamericas says, citing the source. The auction
needs congressional authorization to confirm the winner. The
winning bidder would start operating in Honduras in next year's
first quarter.
BNamericas relates that the minimum bidding price for the
license is US$10 million. The winner will be given nine months
to set up operations.
BNamericas states that these two firms currently operate in
Honduras:
-- Tigo, owned by Luxembourg's Millicom International
Cellular; and
-- America Movil unit.
Headquartered in London, Cable & Wireless Plc --
http://www.cw.com/new/-- provides voice, data and IP (Internet
Protocol) services to business and residential customers, as
well as services to other telecoms carriers, mobile operators
and providers of content, applications and Internet services.
The company has operations are in the United Kingdom, India,
China, the Cayman Islands and the Middle East.
* * *
In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the corporate families in the Telecommunications, Media and
technology sector, Moody's Investors Service confirmed its Ba3
Corporate Family Rating for Cable & Wireless Plc.
Moody's also assigned a Ba3 Probability-of-Default rating to the
company.
* Issuer: Cable & Wireless Plc
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- --------
4% Senior Unsecured
Conv./Exch.
Bond/Debenture
Due 2010 B1 LGD4 60%
GBP200 million
8.75% Senior
Unsecured Regular
Bond/Debenture
Due 2012 B1 LGD4 60%
DIGICEL GROUP: Prequalifies To Bid for Honduras Mobile License
--------------------------------------------------------------
Digicel has been prequalified to bid for a mobile license in
Honduras, Business News Americas reports, citing a source at
Honduran telecoms regulator Conatel.
The source told BNamericas that other firms who prequalified
include:
-- Spain's Telefonica,
-- UK's Cable & Wireless, and
-- Mexico's Grupo Iusacell.
According to BNamericas, the source said that Conatel is
offering spectrum in the up to 1890 megahertz and 1970 megahertz
bands. The regulator refers to the license as a "PCS
concession."
The auction for the mobile license will be held on
Dec. 19, 2007, BNamericas says, citing the source. The auction
needs congressional authorization to confirm the winner. The
winning bidder would start operating in Honduras in next year's
first quarter.
BNamericas relates that the minimum bidding price for the
license is US$10 million. The winner will be given nine months
to set up operations.
BNamericas states that these two firms currently operate in
Honduras:
-- Tigo, owned by Luxembourg's Millicom International
Cellular; and
-- America Movil unit.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- Proposed US$1.4 billion senior subordinated notes
due 2015 assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings is stable.
=============
J A M A I C A
=============
AIR JAMAICA: President Resigns; First Woman Chairman Appointed
--------------------------------------------------------------
Mike Conway, appointed president in 2005, has resigned from Air
Jamaica, a decision that shocked the airline's staff, the
Jamaica Gleaner reports.
The resignation came a day after former opposition spokeswoman
on commerce, Shirley Williams, was appointed as the airline
company's new chairman of the board. Ms. Williams takes over
from O.K. Melhado to become Air Jamaica's first ever woman to
head the airline, Radio Jamaica says.
Resignation Upsets Workers
A well-admired person, Mr. Conway's sudden and immediate
resignation sparked a walk out at the Sangster International
airport in protest of the president's resignation, the Gleaner
relates.
As a result of his leaving, the airline's board met Friday Mr.
Conway, and delegates from the National Workers' Union and the
Union of Clerical, Administrative and Supervisory Employees,
according to the Gleaner. The meeting's results are not
yet disclosed.
Granville Valentine, the NWU's senior negotiating officer, told
the Gleaner when asked, that the Union believes Mr. Conway was
forced to resign. He, however, requested workers not to be
hasty and let the surprising news cloud their judgments, leading
to the neglect of their services to the airline's customers.
"I spoke with Conway earlier today (Thursday) and there was
absolutely no decision (on his part) to resign. We are of the
view that Mr. Conway was asked to resign. The union at this
time is quite upset as to this sudden change for Mr. Conway to
leave," Mr. Valentine was quoted by the Gleaner as saying.
Ms. Williams on the Mr. Conway's Resignation
The Gleaner notes that the new chairperson was tight-lipped when
asked why Mr. Conway resigned.
"Mr. Conway has resigned and I have accepted his resignation. It
would be unfortunate if the workers would jeopardize the smooth
operations of the airline because Mr. Conway has tendered his
resignation. I am sure they are misguided if they have done
so," the former senator was quoted by the Gleaner as saying.
New Board
Meanwhile, Ms. William's appointment came with the naming of new
board directors who were approved by the Cabinet.
According to the Caribbean Broadcasting Corporation, the new
board includes representatives from the Jamaica Tourist
Board and Jamaica Hotel and Tourism Association. Other board
members are:
-- Professor Rex Nettleford, Vice Chancellor Emeritus of the
University of the West Indies;
-- Kingsley Cooper, chairman of the modelling agency Pulse
Entertainment Group.
Ms. Williams and the new board of directors are tasked to came
up with a plan to halt the airline's losses.
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private
in 1994. The Jamaican government does not plan to on Air
Jamaica permanently.
* * *
On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest
payments.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.
AIR JAMAICA: Postpones Wage Meeting with Bustamante Industrial
--------------------------------------------------------------
Air Jamaica has cancelled a wage meeting with the Bustamante
Industrial Trade Union, which represents the airline's 400
flight attendants, Radio Jamaica reports.
According to Radio Jamaica, the meeting was initially set for
Oct. 17, 2007. Cancellation of the meeting angered Bustamante
Industrial officials.
The meeting was agreed to start wage talks, Radio Jamaica notes,
citing Bustamante Industrial Assistant General Secretary Kavon
Gayle.
"We are very, very disappointed in terms of that cancellation
and we don't know how our membership will treat it once they
have been apprised of that situation. That would have been the
clarification meeting, we sent in the claim as far back as July
and this meeting was to clarify the claim and it was surprising
that you would have cancelled, not postponed, but cancelled that
clarification meeting," Mr. Gayle told Radio Jamaica.
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private
in 1994. The Jamaican government does not plan to on Air
Jamaica permanently.
* * *
On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest
payments.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.
===========
M E X I C O
===========
CKE RESTAURANTS: Reports US$90MM Same-Store Sales for Two Units
---------------------------------------------------------------
CKE Restaurants, Inc. has announced same-store sales for the
four weeks ended Oct. 8, 2007, for Carl's Jr.(R) and
Hardee's(R).
For period nine, consolidated revenue from company-operated
restaurants (exclusive of all franchise-related revenue and
royalties) was approximately as:
Carl's Jr. US$ 44.5 million
Hardee's US$ 46.0 million
Total US$ 90.5 million
Same-store sales results for period 10 of fiscal year 2008,
ending Nov. 5, 2007, will be reported on or about Nov. 14, 2007.
Commenting on the company's performance, Andrew F. Puzder,
president and chief executive officer, said, "We are pleased to
report positive blended same store sales for Hardee's and Carl's
Jr. for the fifth consecutive period. We are also pleased to
report a 1.3 percent increase in same-store sales for Hardee's
-- the chain's 24th consecutive period of positive same-store
sales. Blended same-store sales for period nine were up 0.1
percent against a very strong 7.4 percent increase in the prior
year period. We believe that our continued strategy of offering
innovative, premium products and superior customer service
combined with our ongoing remodel and dual-branding programs
should contribute to sales in the near- and long-term."
"As we indicated in our second quarter earnings conference call,
we are taking actions to offset commodity and other cost
increases we are experiencing. Among other things, we
implemented a price increase at both Carl's Jr. and Hardee's at
the start of period 10, the final period of our
third fiscal quarter. We intend to provide additional comments
on our third quarter cost trends in our period 10 same-store
sales release."
"During period nine, Carl's Jr. featured the Patty Melt burger.
The chain's authentic version of an American burger classic
features a charbroiled beef patty topped with grilled onions and
melted American cheese between two slices of grilled rye bread.
Carl's Jr. also introduced the Strawberry-Banana Smoothie Shake
during the period," said Mr. Puzder.
"Strong same-store sales results in the prior year at Carl's Jr.
resulted in a modest dip in same-store sales of 1.1 percent in
period nine of this year. However, those strong prior year
results were enough to fuel a same-store sales increase of
approximately six percent on a two-year cumulative basis."
Revenue for period nine from company-operated Carl's Jr.
restaurants (exclusive of franchise-related revenue and
royalties) was approximately US$44.5 million.
"Hardee's introduced the Hawaiian Chicken Sandwich on Sept. 17,
and media support for the product was in place for the second
half of the period. Featuring a charbroiled chicken breast
topped with teriyaki sauce, melting Swiss cheese, and a juicy
slice of grilled pineapple, dressed with
red onion, tomato, lettuce and mayonnaise, the sandwich
represents the chain's latest example of bringing sit-down
restaurant quality products to a fast-food environment. In
addition, the brand also featured the unique Breakfast Club
sandwich and Blueberry Biscuits during the breakfast
daypart," Mr. Puzder continued.
"On a two-year cumulative basis, Hardee's same-store sales have
increased almost nine percent. In addition, Hardee's period
nine average unit volume was higher than any comparable period
nine since 1994, which is as far back as we can check." Revenue
for period nine from company-operated Hardee's restaurants
(exclusive of franchise-related revenue and royalties) was
approximately US$46.0 million.
About CKE Restaurants
Based in Carpinteria, Calif., CKE Restaurants, Inc. (NYSE: CKR)
-- http://www.ckr.com-- through its subsidiaries, franchisees
and licensees, operates some of the most popular U.S. regional
brands in quick-service and fast-casual dining, including the
Carl's Jr.(R), Hardee's(R), La Salsa Fresh Mexican Grill(R) and
Green Burrito(R) restaurant brands. The company operates 3,131
franchised, licensed or company-operated restaurants in 43
states and in 13 countries -- including Mexico and Singapore.
* * *
As reported in the Troubled Company Reporter on Sept. 10, 2007,
Standard & Poor's Ratings Services has revised its outlook on
Carpenteria, California-based CKE Restaurants Inc. to negative
from stable. At the same time, S&P's has affirmed all the
ratings, including the 'BB-' corporate credit rating, on the
company.
FEDERAL-MOGUL: Sept. 30 Balance Sheet Upside-Down by US$1.4 Bil.
----------------------------------------------------------------
Federal-Mogul Corporation's balance sheet showed total assets of
US$7.5 billion and total liabilities of US$9 billion, resulting
in a total shareholders' deficit of US$1.4 billion as of
Sept. 30, 2007.
The company earned US$14 million for the quarter ended
Sept. 30, 2007, compared to net income of US$3 million for the
third quarter of 2006. The year-to-date results reflect an 8%
increase in sales, improved gross margin and reduced selling,
general and administrative expenses.
For the three months ended Sept. 30, 2007, the company recorded
net sales of US$1,686 million, an increase of US$137 million, or
9%, compared to the third quarter of 2006. The most significant
factors impacting sales were increased volumes of US$91 million
and favorable foreign currency of US$62 million.
"The Federal-Mogul team is dedicated to our strategy for
sustainable global profitable growth. The results achieved
during the first three quarters of 2007 reflect the Company's
commitment to continuously improve performance while creating
value for our customers through world-class products, services
and innovative technology," said Chairman, President and Chief
Executive Officer Jose Maria Alapont. "We are also hopeful that
our Plan of Reorganization will be confirmed, enabling emergence
from Chapter 11."
About Federal-Mogul
Based in Southfield, Michigan, Federal-Mogul Corporation --
http://www.federal-mogul.com/-- is an automotive parts company
with worldwide revenue of some USUS$6 billion. Federal-Mogul
also has operations in Mexico and the Asia Pacific Region, which
includes, Malaysia, Australia, China, India, Japan, Korea, and
Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts. When the Debtors filed for protection
from their creditors, they listed US$10.15 billion in assets and
US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on
June 6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan. On
July 28, 2004, the District Court approved the Disclosure
Statement. The estimation hearing began on June 14, 2005. The
Debtors submitted a Fourth Amended Plan and Disclosure Statement
on Nov. 21, 2006, and the Bankruptcy Court approved that
Disclosure Statement on Feb. 6, 2007. The confirmation hearing
started on June 18, 2007 and is expected to end on Oct. 1, 2007.
FIRST DATA: Extends Long-Term Contract with National City Bank
--------------------------------------------------------------
First Data Corp. has renewed a long-term contract extension with
National City Bank for its debit and credit card portfolios
currently processed by First Data. First Data will continue to
provide comprehensive processing services for 5.6 million
signature debit card accounts and 3.8 million credit card
accounts. Terms of the contract were not disclosed.
"We're very pleased to extend our relationship with this very
valuable client," said Susan Henricks, president of First Data's
financial institution business. "I think we've demonstrated
over the years that we're committed to investing in the product
and service innovations that help financial institutions like
National City grow and protect their customer relationships."
National City is also a member of First Data's STAR(R) Network,
a coast-to-coast electronic payments network specializing in
secure, real-time purchase and ATM transactions. First Data's
relationship with National City extends back to 1996.
About First Data
First Data Corp. (NYSE: FDC) -- http://www.firstdata.com/--
provides electronic commerce and payment solutions for
businesses worldwide, including those in New Zealand, the
Netherlands and Mexico. The company's portfolio of services and
solutions includes merchant transaction processing services;
credit, debit, private-label, gift, payroll and other prepaid
card offerings; fraud protection and authentication solutions;
receivables management solutions; electronic check acceptance
services through TeleCheck; as well as Internet commerce and
mobile payment solutions. The company's STAR Network offers
PIN-secured debit acceptance at 2 million ATM and retail
locations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 17, 2007, Fitch Ratings has assigned a 'B-' rating to First
Data Corp.'s proposed US$2 billion senior unsecured notes due
2015 offering.
As reported in the Troubled Company Reporter-Latin America on
Sept. 19, 2007, Moody's Investors Service has assigned these
ratings:
-- Corporate Family Rating - B2
-- US$2 billion senior secured revolving credit facility
(expires 2013) - Ba3, LGD2 (27%)
-- US$13 billion senior secured Term Loan B (due 2014) - Ba3,
LGD2 (27%).
GRUPO IUSACELL: Prequalifies To Bid for Honduras Mobile License
---------------------------------------------------------------
Grupo Iusacell has been prequalified to bid for a mobile license
in Honduras, Business News Americas reports, citing a source at
Honduran telecoms regulator Conatel.
The source told BNamericas that other firms who prequalified
include:
-- Spain's Telefonica,
-- Jamaican group Digicel, and
-- UK-owned Cable & Wireless.
According to BNamericas, the source said that Conatel is
offering spectrum in the up to 1890 megahertz and 1970 megahertz
bands. The regulator refers to the license as a "PCS
concession."
The auction for the mobile license will be held on
Dec. 19, 2007, BNamericas says, citing the source. The auction
needs congressional authorization to confirm the winner. The
winning bidder would start operating in Honduras in next year's
first quarter.
BNamericas relates that the minimum bidding price for the
license is US$10 million. The winner will be given nine months
to set up operations.
BNamericas states that these two firms currently operate in
Honduras:
-- Tigo, owned by Luxembourg's Millicom International
Cellular; and
-- America Movil unit.
Headquartered in Mexico City, Mexico, Grupo Iusacell, SA de CV
(BMV: CEL) -- http://www.iusacell.com-- is a wireless cellular
and PCS service provider in Mexico with a national footprint.
Independent of the negotiations towards the restructuring of its
debt, Grupo Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better voice
communication and data services through state-of-the-art
technology, including its new 3G network, throughout all of the
regions in which it operate.
As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit
widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000
at Dec. 31, 2004.
Grupo Iusacell filed for bankruptcy protection on June 18 under
Mexican Law to prevent creditors from disrupting its debt
restructuring talks. On July 14, 2006, Gramercy Emerging
Markets Fund, Pallmall LLC and Kapali LLC, owed an aggregate
amount of US$55,878,000 filed an Involuntary Chapter 11 Case
against Grupo Iusacell's operating subsidiary, Grupo Iusacell
Celular, SA de CV (Bankr. S.D.N.Y. Case No. 06-11599). Alan M.
Field, Esq., at Manatt, Phelps & Phillips, LLP, represents the
petitioners. Iusacell Celular then filed for bankruptcy
protection under Mexican Law on July 18, 2006.
The involuntary petition in the United States was dismissed in
December 2006.
HIPOTECARIA CREDITO: Securitizing MXN600MM in Construction Loans
----------------------------------------------------------------
Hipotecaria Credito y Casa's investor relations head Antonio
Carranza told Business News Americas that the firm will
securitize some MXN600 million in construction loans for
developers of housing projects in October 2007.
Mr. Carranza commented to BNamericas, "We have analyzed market
conditions and there is an opportunity."
According to BNamericas, Mr. Carranza "expects spreads" not to
change compared to Hipotecaria Credito's previous issue.
The report says that Hipotecaria Credito securitized
construction loans in May 2007. It sold some MXN1.4 billion in
bonds in a two-tranche offering:
-- the first, for MXN1.23 billion, was sold with a
coupon of 8.7%, equivalent to a spread of 100 basis
points over Mexican inflation-linked Udibonos;
-- the second, for MXN177 million, was priced with a
spread of 200 basis points, or a coupon of 9.7%.
The upcoming transaction would be Hipotecaria Credito's last
issue for 2007, BNamericas notes, citing Mr. Carranza.
Hipotecaria Credito has tapped the capital markets five times
this year. It placed three issues of residential-mortgage
backed securities for a total of MXN2.2 billion. One issue was
backed by construction loans, raising about MXN650 million in
debt through 3 year-bonds.
Hipotecaria Credito y Casa is a special purpose financial
company, or Sofol, that specializes in low-income mortgage
lending and also provides construction bridge loans for housing
developments. It is based in Culiacan, Sinaloa, Mexico. It
started operations in 1997 as a non-bank financial
institution/Sofol Mortgage Company. Hippotecaria Credito's main
activity consists of extending mortgages financed by monies from
SHF to low income households. As of March 31, 2006, the company
reported assets of MXN19.3 billion and MXN1.3 billion in equity.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 27, 2006, Moody's de Mexico assigned a (P)B1 senior
unsecured debt, and Baa2.mx ratings on the MXN3 billion MTN
programs of Hipotecaria Credito y Casa, S.A. de C.V. Moody's
said the rating outlook is stable.
KANSAS CITY SOUTHERN: Lazaro Terminal Phase 1 Works To End 2008
---------------------------------------------------------------
Kansas City Southern Mexico's corporate affairs vice president
David Eaton told Business News Americas that the firm would
conclude the first phase of expansions at its multimodal
terminal at Michoacan's Lazaro Cardenas port in the middle of
next year.
The expansion works will be the first of three phases,
BNamericas says, citing Mr. Eaton. Kansas City would invest
about US$80 million over five years. However, the investment
could increase depending on the additional container traffic
received at the port as a result of the construction of a new
container terminal.
Hong Kong's port operator Hutchison will launch operations at
the Lazaro terminal on Oct. 26, 2007.
The terminal will get increased volume of cargo on support lines
that Kansas city is constructing, BNamericas relates, citing Mr.
Eaton. Track is already being laid, in addition to the clearing
of brush.
Kansas City would invest over US$12 million in siding extensions
for 2008. This would make transport operations more efficient
by letting longer trains, carrying more cargo, to pass one
another, Mr. Eaton told BNamericas.
Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the US,
Mexico and Panama. Its primary U.S. holding includes KCSR,
serving the central and south central US. Its international
holdings include Kansas City Southern de Mexico, serving
northeastern and central Mexico and the port cities of Lazaro
Cardenas, Tampico and Veracruz, and a 50% interest in
Panama Canal Railway Company, providing ocean-to-ocean freight
and passenger service along the Panama Canal. KCS' North
American rail holdings and strategic alliances are primary
components of a NAFTA Railway system, linking the commercial and
industrial centers of the U.S., Canada and Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 17, 2007, Fitch Ratings assigned a 'B+' foreign currency
rating and a Recovery Rating of 'RR4' to the US$165 million
senior notes due 2014 to be issued by Kansas City Southern de
Mexico, S.A. de C.V. The new notes rank pari passu with KCSM's
existing senior unsecured obligations.
Fitch also maintained 'B+' foreign currency ratings and 'RR4'
recovery ratings on KCSM's other outstanding notes:
-- US$178 million 12.50% senior notes due 2012;
-- US$460 million 9.375% senior notes due 2012;
-- US$175 million 7.625% senior notes due 2013.
The proceeds of the proposed new issuance will be used primarily
to pay off the company's outstanding US$178 million 12.50% notes
due 2012.
Fitch also maintained a 'B+' foreign and local currency Issuer
Default Rating for KCSM. Fitch said the rating outlook for
these ratings is stable.
MCDERMOTT INT'L: Names Dennis Baldwin as Vice President & CAO
-------------------------------------------------------------
McDermott International Inc. has appointed Dennis S. Baldwin as
its Vice President and Chief Accounting Officer. In this role,
Mr. Baldwin replaces Michael S. Taff, who was appointed Senior
Vice President & Chief Financial Officer in April 2007.
With 23 years of financial and accounting experience, Mr.
Baldwin comes to McDermott from Integrated Electrical Services
where he served as Chief Accounting Officer. Prior to
Integrated Electrical Services, Baldwin served as vice president
and corporate controller for two energy service companies,
Veritas DGC, Inc. and Universal Compression Holdings, Inc. In
addition, Mr. Baldwin held a variety of financial and accounting
roles at Cemex, Cooper Industries and Price Waterhouse. Baldwin
holds a Bachelor of Business Administration degree in Accounting
from Sam Houston State University, a Master of Business
Administration degree from the University of Houston, and is a
Certified Public Accountant in Texas.
"We are pleased to welcome Dennis to McDermott," said Mike Taff,
Senior Vice President and Chief Financial Officer of McDermott.
"His background and experience will be a valuable addition to
our financial management team."
McDermott International, Inc. (NYSE:MDR)
-- http://www.mcdermott.com/--is a leading worldwide energy
services company. McDermott's subsidiaries provide engineering,
construction, installation, procurement, research,
manufacturing, environmental systems, project management and
facility management services to a variety of customers in the
energy and power industries, including the U.S. Department of
Energy. The company operates in most major offshore producing
regions throughout the world, including the U.S. Gulf of Mexico,
Mexico, the Middle East, India, the Caspian Sea and Asia
Pacific. Operations in this segment are primarily conducted
through its subsidiary, J. Ray McDermott, S.A.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 5, 2007, Moody's raised MII's Corporate Family Rating to
Ba3 from B1.
Moody's upgraded J. Ray McDermott, S.A.'s CFR to Ba3 from B1,
its Probability of Default Rating to B1 from B2 and its senior
secured bank facility to Ba2 (LGD-2, 22%) from Ba3 (LGD-2, 24%)
and The Babcock & Wilcox Company's senior secured bank facility
rating to Baa3 (LGD-1, 6%) from Ba2 (LGD-2, 19%). The rating
outlook for J. Ray is positive, while the rating outlooks for
MII and B&W are both stable, according to Moody's.
MOVIE GALLERY: Receives Nasdaq Delisting Notification
-----------------------------------------------------
Movie Gallery, Inc., on Oct. 16, 2007, received notification
from The Nasdaq Stock Market indicating that its common stock
will be delisted from the Nasdaq Stock Market due to the
company's filing for protection under Chapter 11 of the U.S.
Bankruptcy Code and concerns about the Company's ability to
sustain compliance with all of Nasdaq's listing requirements.
Trading in the company's common stock will be suspended at the
opening of business on Oct. 25, 2007. The company does not
intend to appeal Nasdaq's delisting decision and expects that
its common stock will continue to trade on the OTC Bulletin
Board or in the "Pink Sheets" following Oct. 25, 2007.
Headquartered in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. The company owns and operates 4,600 retail
stores that rent and sell DVDs, videocassettes and video games.
It operates over 4,600 stores in the United States, Canada, and
Mexico under the Movie Gallery, Hollywood Entertainment, Game
Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, serve as the Debtors' local counsel. The
Debtors' claims & balloting agent is Kutzman Carson Consultants
LLC.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000. (Movie Gallery Bankruptcy News, Issue
No. 4; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: U.S. Trustee Appoints Creditors Committee
--------------------------------------------------------
W. Clarkson McDow, Jr., United States Trustee for Region 4,
appoints seven members to the Official Committee of Unsecured
Creditors in the Chapter 11 cases of Movie Gallery, Inc., and
its debtor-affiliates.
The Creditors Committee members are:
(a) US Bank National Assoc. as Indentured Trustee
Attn: Laura L. Moran, VP
One Federal St., 3rd Floor
Boston, MA 02110
Phone: (617) 603-6429
Fax: (617) 603-6640
(b) Paramount Home Entertainment
Attn: Andi Marygold, SVP
555 Melrose Ave.
Bluhdorn #213
Hollywood, CA 90038
Phone: (323) 956-5489
Fax: (323) 862-1183
(c) The Inland Real Estate Group of Companies, Inc.
Attn: Craig B. Young, Esq.
Connolly, Bove, Lodge & Hutz, LLP
1875 Eye Street, NW 11th Flr
Washington, DC 20006
Phone: (202) 572-0313
Fax: (202) 293-6229
(d) Coca-Cola Enterprises Bottling Companies
Attn: William Kaye, Senior Bankruptcy Analyst
31 Rose Lane
East Rockaway, NY 11518
Phone: (516) 374-3705
Fax: (516) 569-6531
(e) Southern Development of Mississippi
Attn: Robert N. Graham, President
P.O. Box 1207
Purvis, MS 39475
Phone: (601)-794-2253
Fax: (601) 794-5468
(f) Twentieth Century Fox Home Entertainment
Attn: Al Leonard, Credit Manager
2121 Avenue of the Stars #2500
Los Angeles, CA 90067
Phone: (310) 369-7289
Fax: (310) 969-0545
(g) The Bank of New York Trust Company, NA
c/o The Bank of New York
Attn: Gary Bush, Vice President
101 Barclay Street
Floor 8 West
New York, NY 10286
Phone: (212) 815-2747
Fax: (732) 667-4734
Pursuant to Section 1103 of the Bankruptcy Code, the Creditors
Committee may:
-- consult with the Debtors concerning the administration
of the bankruptcy case;
-- investigate the acts, conduct, assets, liabilities, and
financial condition of the Debtors, the operation of the
Debtors' business and the desirability of the continuance
of the business, and any other matter relevant to the
case or to the formulation of a plan of reorganization
for the Debtors;
-- participate in the formulation of a plan, advise its
constituents regarding the Committee's determinations as
to any plan formulated, and collect and file with the
Court acceptances or rejections of the plan;
-- request the appointment of a trustee or examiner; and
-- perform other services as are in the interest of its
constituents.
The Creditors Committee may retain counsel, accountants, or
other agents, to represent or perform services for the group.
About Movie Gallery Inc.
Headquartered in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. The company owns and operates 4,600 retail
stores that rent and sell DVDs, videocassettes and video games.
It operates over 4,600 stores in the United States, Canada, and
Mexico under the Movie Gallery, Hollywood Entertainment, Game
Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, serve as the Debtors' local counsel. The
Debtors' claims & balloting agent is Kutzman Carson Consultants
LLC.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000. (Movie Gallery Bankruptcy News, Issue
No. 4; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
REMY WORLDWIDE: Selects Shearman & Sterling as Lead Counsel
-----------------------------------------------------------
Remy Worldwide Holdings Inc. and its debtor-affiliates seek the
authority from the U.S. Bankruptcy Court for the District of
Delaware to employ Shearman & Sterling LLP as their lead
bankruptcy counsel, nunc pro tunc to Oct. 8, 2007.
The Debtors selected Shearman & Sterling because the firm
possesses extensive knowledge in the areas of law relevant to
the Debtors' case. Shearman & Sterling has represented debtors,
creditors, creditors' committees, lenders, and various parties-
in-interest in numerous Chapter 11 cases. Shearman & Sterling
has also developed significant knowledge of the Debtors' affairs
and issues, as a result of the firm's prepetition representation
of the Debtors.
As counsel, Shearman & Sterling will:
(a) provide legal advice with respect to the Debtors' duties
in the continued operation of their business and
management of properties;
(b) prepare all necessary applications, motions, answers,
orders, reports and other legal papers on behalf of the
Debtors;
(c) pursue the confirmation of the Debtors' Plan of
Reorganization, or of an alternative Plan, if necessary;
and the approval of corresponding solicitation
procedures and disclosure statements;
(d) attend meetings and negotiations with creditors, equity
holders, prospective investors, acquirers, or other
parties-in-interest
(e) provide general bankruptcy and non-bankruptcy legal
services, as may be requested by Debtors;
(f) appear before the Bankruptcy Court, any appellate
courts, and the U.S. Trustee to protect the Debtors'
interest; and
(g) perform all other legal services to the Debtors, as
deemed proper and necessary.
Shearman & Sterling's standard hourly rates are:
Professional Hourly Rate
------------ -----------
Partner US$695 - US$940
Counsel and Specialist US$500 - US$750
Associate US$325 - US$595
Legal Assistant US$100 - US$235
Shearman & Sterling will also be reimbursed for out-of-pocket,
necessary expenses.
Douglas P. Bartner, Esq., a member at Shearman & Sterling LLP,
in New York, discloses that in the one-year period prior to the
Petition Date, his firm was paid US$6,098,584 by the Debtors on
account of services related to the Debtors' reorganization
efforts, including their bankruptcy filing. The firm also
received a US$750,000 retainer for estimated fees and expenses
from Sept. 27 through Oct. 8.
Mr. Bartner assures the Court that his firm does not represent
any interest adverse to the Debtors' estate or their creditors
in connection with the Chapter 11 case, and is a "disinterested
person," as defined in Section 101(14) of the Bankruptcy Code.
Based 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 component 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.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 8, 2007 (Bankr. D. Del. Cases No. 07-11481 to
07-11509). Douglas P. Bartner, Esq., Fredric Sosnick, Esq., and
Michael H. Torkin, Esq., at Shearman & Sterling LLP, represent
the Debtors' in their restructuring efforts. Pauline K. Morgan,
Esq., Edmon L. Morton, Esq., and Kenneth J. Enos, Esq., at Young
Conaway Stargatt & Taylor, LLP, serve as co-counsels to the
Debtors. The Debtors' claims agent is Kurtzman Carson
Consultants LLC and their restructuring advisor is
AlixPartners, LLC.
At Sept. 30, 2006, Remy Worldwide's balance sheet showed total
assets of US$919,736,000 and total liabilities of
US$1,265,648,000. (Remy Bankruptcy News; Issue No. 3,
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
REMY WORLDWIDE: Wants to Employ YCS&T as Delaware Counsel
---------------------------------------------------------
Remy Worldwide Holdings Inc. and its debtor-affiliates ask
permission from the U.S. Bankruptcy Court for the District of
Delaware to employ Young Conaway Stargatt & Taylor, LLP as their
Delaware counsel.
Pauline K. Morgan, Esq., a partner at Young, Conaway, Stargatt &
Taylor, LLP, in Wilmington, Delaware, informs the Court that, to
avoid duplication of efforts, Young Conaway has discussed the
division of responsibilities with Shearman & Sterling, LLP,
which the Debtors intend to hire as Lead Counsel.
The Debtors maintain that Young Conaway possesses extensive
knowledge and expertise in the debtors' and creditors' rights
and business reorganizations that will enable the firm to work
efficiently and cost-effectively in behalf of the Debtors'
estates.
As co-counsel, Young Conaway will:
(a) provide legal advice to the Debtors in their continued
operation of business and management of properties;
(b) prepare all necessary legal papers on behalf of the
Debtors;
(c) pursue the confirmation Debtors' Reorganization Plan of
or of an alternative Plan, if necessary;
(d) appearing in Court to protect the interests of the
Debtors; and
(e) perform all legal services deemed proper and necessary
in the proceedings.
The principal attorneys and paralegal at Young Conaway who will
provide services to the Debtors -- and their current standard
hourly rates -- are:
Professional Hourly Rate
------------ -----------
Pauline K. Morgan US$510
Edmon L. Morton US$395
Kenneth J. Enos US$275
Patrick A. Jackson US$250
Melissa Bertsch, paralegal US$125
Young Conaway will also be reimbursed for out-of-pocket,
necessary expenses.
Ms. Morgan discloses that her firm received from the Debtors a
US$75,000 retainer in March 2007 and an additional US$30,131
retainer in April 2007, in connection with the planning and
preparation of initial documents and the firm's postpetition
representation of the Debtors.
Ms. Morgan maintains that Young Conaway is a "disinterested
person", as defined in Section 104(14) of the Bankruptcy Code.
The firm does not hold or represent any interests in the
Debtors' estates, Ms. Morgan says.
Based 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 component 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.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 8, 2007 (Bankr. D. Del. Cases No. 07-11481 to
07-11509). Douglas P. Bartner, Esq., Fredric Sosnick, Esq., and
Michael H. Torkin, Esq., at Shearman & Sterling LLP, represent
the Debtors' in their restructuring efforts. Pauline K. Morgan,
Esq., Edmon L. Morton, Esq., and Kenneth J. Enos, Esq., at Young
Conaway Stargatt & Taylor, LLP, serve as co-counsels to the
Debtors. The Debtors' claims agent is Kurtzman Carson
Consultants LLC and their restructuring advisor is
AlixPartners, LLC.
At Sept. 30, 2006, Remy Worldwide's balance sheet showed total
assets of US$919,736,000 and total liabilities of
US$1,265,648,000. (Remy Bankruptcy News; Issue No. 3,
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
RYERSON INC: Shareholders Okay Merger Deal with Platinum Equity
---------------------------------------------------------------
Ryerson Inc. stockholders have approved the merger agreement
providing for the acquisition of Ryerson by affiliates of
Platinum Equity, LLC, at a special stockholders' meeting held on
Oct. 17.
Ryerson also announced that the Canadian Competition Bureau has
provided clearance of the proposed acquisition. The Canadian
Competition Bureau's clearance was received on Oct. 15, 2007.
Subject to the satisfaction or waiver of the remaining closing
conditions, Ryerson expects the transaction to close on or about
Oct. 19, 2007. Upon the closing of the transaction, Ryerson
will become a wholly owned subsidiary of Rhombus Holding
Corporation, and the Company's common stock will no longer be
listed on the New York Stock Exchange. Rhombus Holding
Corporation is owned by a private investment fund or funds
affiliated with Platinum Equity, LLC. In connection with the
closing, Ryerson expects that its shares of common stock will
cease trading on the New York Stock Exchange effective as of the
close of the market on Oct. 18, 2007.
About Ryerson Inc.
Headquartered in Chicago, Illinois, Ryerson Inc. (NYSE: RYI)
-- http://www.ryerson.com/-- is a distributor and processor of
metals in North America. The company services customers through
a network of service centers across the United States and in
Canada, Mexico, India, and China.
* * *
As reported in the Troubled Company Reporter on Sept. 28, 2007,
Standard & Poor's Ratings Services affirmed its ratings on
Ryerson Inc., including its 'B+' corporate credit rating. S&P
removed all ratings from CreditWatch, where they had been placed
with negative implications on July 24, 2007, after the company
after it has agreed to be acquired by Platinum Equity for around
US$2 billion.
VISTEON CORP: Inks MOU for Sale of Largest UK Operation
-------------------------------------------------------
Visteon Corporation has signed a non-binding Memorandum of
Understanding outlining the understanding and status of
discussions regarding the sale of its Swansea, United Kingdom
operation to Linamar Corporation, a Canadian-based auto parts
manufacturer. The proposed sale, which supports Visteon's
three-year improvement plan, is subject to due diligence,
certain third party agreements, definitive documentation, anti-
trust clearance and corporate approvals.
The proposed sale of the Swansea facility, which is Visteon's
largest operation in the UK, will be a significant milestone in
the company's plan to address non-core facilities and improve
its financial performance. Visteon recently disclosed that
Visteon UK Limited lost approximately US$110 million on revenue
of US$540 million during 2006.
"This transaction will represent another major step to achieve
Visteon's profit improvement plan, while continuing to
strengthen our global engineering and manufacturing footprint,"
said Donald J. Stebbins, Visteon president and chief operating
officer. "We are committed to working with our customers,
employees, unions and Linamar to reach final agreements and
bring the transaction to closure as quickly as possible."
This action, which will complete the company's divestiture of
its chassis business, builds on the progress already made in
addressing its performance in the UK. Visteon previously exited
its brake business, successfully transferred unprofitable
business to lower cost countries, and significantly reduced its
salaried workforce in the UK.
As part of the proposed transaction, which is expected to be
completed by year-end, Visteon will transfer the manufacturing
facility and associated assets, as well as contracts and certain
intellectual property rights. The 400 employees currently
employed in the facility are also expected to transfer to the
new owner. Other details of the MOU were not disclosed.
"When finalized, this proposed transaction will provide a viable
alternative to closure for the Swansea facility, while enabling
Visteon to achieve its business objectives," Steve Gawne,
managing director of Visteon's UK operations, said. "The
Swansea plant will be a strong strategic fit within Linamar's
expanding driveline division."
This proposed transaction also builds on Visteon's three-year
improvement plan that was announced in 2006. As part of that
plan, the company is addressing 30 underperforming and non-
strategic operations, improving its base operations in
efficiency and taking a number of steps to grow the business.
The proposed sale of Swansea is the 20th action announced. The
restructuring actions are expected to generate annual savings of
approximately US$400 million.
The company has also achieved a number of other significant
milestones, including addressing two-thirds of its restructuring
items and significantly shifting its manufacturing and
engineering footprints to cost-competitive countries. Nearly
60% of Visteon's hourly manufacturing personnel are now in lower
cost countries, compared with 48% at the end of 2005. By 2009,
Visteon plans to have 75% of its manufacturing personnel and
half of its engineering workforce in cost-competitive countries.
Based in Van Buren Township, Michigan, Visteon Corp. (NYSE: VC)
-- http://www.visteon.com/-- is a global automotive supplier
that designs, engineers and manufactures innovative climate,
interior, electronic, and lighting products for vehicle
manufacturers, and also provides a range of products and
services to aftermarket customers. The company has more than
170 facilities in 24 countries and employs around 50,000 people.
With corporate offices in the Michigan (U.S.); Shanghai, China;
and Kerpen, Germany; the company has more than 170 facilities in
24 countries, including Mexico and India, and employs
approximately 50,000 people.
* * *
Fitch Ratings affirmed its CCC issuer default rating and B
senior secured bank facility rating on Visteon Corp. on April
2007. At the same time, Fitch downgraded its CCC- senior
unsecured rating to CC.
=================
N I C A R A G U A
=================
SPECTRUM BRANDS: Postpones Strategic Asset Sale
-----------------------------------------------
Spectrum Brands Inc. is postponing its strategic asset sale
process due to recent challenging conditions in the credit
markets.
As reported in the Troubled Company Reporter on Oct. 2, 2007,
the company signed a definitive agreement to sell the Canadian
division of its Home & Garden business segment, which operates
under the name Nu-Gro, to a new company formed by RoyCap
Merchant Banking Group and Clarke Inc.
"We are still committed to reducing outstanding indebtedness and
leverage through the sale of assets," Spectrum Brands Chief
Executive Officer Kent Hussey said. "We believe that postponing
the auction process until such time as the credit markets
improve will allow us to achieve a full and fair valuation of
these assets."
As previously reported, Spectrum Brands put in place a
US$225 million asset-based revolving credit facility with
Goldman Sachs Credit Partners L.P. and Wachovia Bank, National
Association. The company reiterated that this facility, which
was undrawn at Sept. 30, 2007, provides sufficient liquidity to
operate its business on an ongoing basis.
Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in
120 countries around the world. The company has manufacturing
and distribution facilities in China, Australia and New Zealand,
and sales offices in Melbourne, Shanghai, and Singapore.
The company operates in 13 Latin American nations including El
Salvador, Guatemala, Costa Rica, Colombia and Nicaragua.
* * *
As reported on the Troubled Company Reporter-Latin America on
Oct. 3, 2007, Fitch Ratings has assigned a 'B/RR1' rating to
Spectrum Brand's new four-year, US$225 million senior secured
asset-backed loan facility priced at LIBOR +225 basis points.
The new facility will replace the US$200 million LIBOR Term Loan
B II that is encompassed within the US$1.6 billion six-year
Credit Agreement.
Fitch has also affirmed these ratings:
-- Issuer Default Rating at 'CCC';
-- US$1 billion term loan B at 'B/RR1';
-- EUR350 million term loan at 'B/RR1';
-- US$700 million 7.4% senior subordinated notes at 'CCC-
/RR5';
-- US$2.9 million 8.5% senior subordinated notes at 'CCC-
/RR5';
-- US$347 million 11.25% variable rate toggle senior
subordinated notes at 'CCC-/RR5'.
Fitch said the rating outlook is negative.
=============
U R U G U A Y
=============
SENSIENT TECH: Paying US$0.18 Per Share Quarterly Dividend
----------------------------------------------------------
Sensient Technologies Corporation's Board of Directors has
declared a regular quarterly cash dividend on its common stock
of US$0.18 per share. The cash dividend will be paid on
Dec. 3, 2007, to shareholders of record on Nov. 8, 2007.
Headquartered in Milwaukee, Wisconsin, Sensient Technologies
Corp. -- http://www.sensient-tech.com/-- manufactures and
markets colors, flavors and fragrances. Sensient also employs
technologies to develop specialty chemicals for inkjet inks,
display imaging systems and other applications. The company's
principal products include flavors, flavor enhancers and
bionutrients; fragrances and aroma chemicals; dehydrated
vegetables and other food ingredients; natural and synthetic
food colors; cosmetic and pharmaceutical additives; inkjet inks,
technical colors, and specialty dyes and pigments, and chemicals
for laser printing and flat screen displays. In Europe,
Sensient maintains operations facilities and/or sales offices in
Belgium, Bosnia, Croatia, Cyprus, Czech Republic, Germany,
United Kingdom, France, Estonia, United Kingdom, Macedonia,
Poland, Romania, Serbia and Montenegro, Turkey, Ukraine, and
Wales. In Latin America, it has operations in Argentina,
Bolivia, Brazil, Colombia, Costa Rica, Chile, Mexico, Peru,
Uruguay and Venezuela.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 23, 2007, Standard & Poor's Ratings Services has revised
its outlook on Milwaukee, Wis.-based Sensient Technologies Corp.
to stable from negative. At the same time, Standard & Poor's
affirmed its 'BB+' corporate credit and senior unsecured debt
ratings on the company. Approximately US$508 million of debt
was outstanding as of June 30, 2007.
=================
V E N E Z U E L A
=================
CHRYSLER LLC: Negotiator Urges UAW Leaders to Reject New Pact
-------------------------------------------------------------
Bill Parker, Chair of the 2007 UAW Chrysler National Negotiating
Committee, who voted against the new tentative labor agreement
between Chrysler LLC and the United Auto Workers union, released
a minority report to the members of the UAW Chrysler Council,
urging the Council to reject Chrysler's offer and let the
Committee return to the bargaining table.
As reported in the Troubled Company Reporter on Oct. 16, 2007,
the UAW Chrysler Council, which includes local union leaders
from Chrysler LLC facilities throughout the U.S., voted
overwhelmingly to recommend ratification of the tentative
agreement reached on Oct. 10, 2007.
Mr. Parker, however, disclosed that the National Negotiating
Committee had a split vote on the contract.
GM-UAW Agreement
He enumerates his concerns with the General Motors Corp.
Agreement:
a) The establishment of a two-tier wage and benefit package
for the "entry level" employees. Two tiers of workers
create divisions within the union, pressure to reduce the
top tier in the direction of the second tier and efforts
to drive the second tier even lower.
b) The division of our facilities into core and non-core
jobs. Many of the best jobs in the plants - currently
held by high seniority employees -- will be filled in the
future with entry level employees.
c) The elimination of all janitors throughout the company.
d) The eliminationof any general wage increase throughout
the life of the agreement, along with cost of living
allowance diversions to a degree never seen before. In
the worst years of the 1980s, workers always had at least
one 3% raise. The COLA diversions projected in the
contract will far exceed the sum of all previous COLA
diversions combined.
e) A two-year limitation on receiving job bank funds if an
open job exists anywhere in the company. After that, a
worker could be forced to move anywhere in the country to
the open job, wherever it is.
f) The failure to provide any sort of equality of sacrifice
or to provide for a catch-up if the company turns around
in the future.
Chrysler-UAW Agreement
Aside from the above concerns, Mr. Parker outlines additional
areas of concern:
a) No Commitment Beyond Current Production
Virtually no Chrysler plant received commitment beyond
the scope of their new product, unlike the GM contract
which committed to product past the current lifecycle
being built today. When GM locals seek to negotiate
local agreements, they won't be confronted with the
threat of no new product, because it is locked into their
national agreement. Unbelievably, the Chrysler agreement
does not give workers the same protection.
The GM agreement brought back to the U.S. several
products slated for outsourcing. Yet, the Chrysler
contract failed at that. Several of the next products
will be built in Mexico, Canada or China.
b) Four Facilities To Be 100% Entry Level
The establishment of permanent two-tier relations will be
a threat to the unity and solidarity within the union.
But unlike GM, Chrysler has facilities that are 100%
entry level once traditional employees leave. Those
entry level employees won't have any place to move up for
they will have signed for entry level wages for life.
Under the tentative agreement, Toledo Machining,
Marysville Axle, Chrysler Transport, and all Mopar
facilities are those facilities.
c) Reduced Seniority Opprotunities
Classifications are being totally eliminated from
production jobs on Smart teams. In exchange for a few
pennies per hour, members are giving up any
classification variation for team members.
d) No Roll-Over of Temporaries
The GM agreement rolled over 3,000 temporary employees to
permanent, full-time, traditional status. At Chrysler,
none were rolled-over.
e) Added Costs for Retirees
Pattern for Chrysler in 2007 also means accepting the 2005
concessions made at GM and Ford Motor Co., meaning the
dollar an hour active workers held on to will be eaten
away by future COLA diversions (after the first ten cents
is snatched each quarter). In 2005 and 2006, this Council
insisted that it wanted no health care costs passed on to
retirees.
f) Skilled Trades Issues
The trades avoided many of the issues facing production;
however, retiree pensions and benefits for new hires will
be different than for traditional employees. The effort
to reduce the number of trades will continue through
annual packages -- something not offered to production
workers. New, under this contract, is that skilled trades
employees on layoff or in the job bank can be called to
take open jobs in production, though they will kept their
skilled wages. Although, separate trades are protected
under the "trades consolidation" language, the door is now
open for management to expect one trade to do the work of
other trades.
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 (B/Negative/--), including 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.
PEABODY ENERGY: Paying Dividend of US$0.06 Per Share
----------------------------------------------------
The board of directors of Peabody Energy Corporation on
Oct. 18, 2007, declared a regular quarterly dividend on its
common stock of US$0.06 per share. The dividend is payable on
Nov. 23, 2007, to holders of record on Nov. 1, 2007.
Peabody Energy (NYSE: BTU) is the world's largest private-sector
coal company, with 2006 sales of 248 million tons of coal and
US$5.3 billion in revenues. Its coal products fuel
approximately 10 percent of all U.S. electricity generation and
more than 2 percent of worldwide electricity.
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 Australia and 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. Moody's placed the instrument on review for
downgrade.
PETROLEOS DE VENEZUELA: Continues Talks ConocoPhillips
------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA's
negotiations with ConocoPhillips on compensation deal over the
seizure of the Orinoco Belt assets could take several months,
Reuters reports, citing ConocoPhillips Chief Executive James
Mulva.
Reuters relates that ConocoPhillips opted in June 2007 to
withdraw Orinoco operations and leave Venezuela rather than
agree to Petroleos de Venezuela's taking over the assets.
According to Reuters, ConocoPhillips' stake in the Orinoco was
estimated between a book value of US$4.5 billion and a market
value of US$7 billion.
Talks with Venezuelan officials and Petroleos de Veenzuela were
continuing, the press says, citing Mr. Mulva.
"We continue to discuss our situation in Venezuela with PDVSA
[Petroleos de Venezuela] and [Energy] Minister [Rafael] Ramirez
and expect that to continue over the next several months," Mr.
Mulva told Reuters.
About ConocoPhillips
Headquartered in Houston, Texas, ConocoPhillips is an
international, integrated energy company. The company's
business is organized into six segments. Exploration and
Production segment primarily explores for, produces and markets
crude oil, natural gas and natural gas liquids on a worldwide
basis. Midstream segment gathers, processes and markets natural
gas produced by ConocoPhillips and others, and fractionates and
markets natural gas liquids, primarily in the United States and
Trinidad. Refining and Marketing segment purchases, refines,
markets and transports crude oil and petroleum products, mainly
in the United States, Europe and Asia. LUKOIL Investment
segment consists of its equity investment in the ordinary shares
of OAO LUKOIL. The Chemicals segment manufactures and markets
petrochemicals and plastics on a worldwide basis. Emerging
Businesses segment includes the development of new technologies
and businesses outside the company's normal scope of operations.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, US$2 billion notes due 2027, and US$1 billion notes due
2037.
PETROLEOS DE VENEZUELA: Inks R&D Agreement with Petroecuador
------------------------------------------------------------
Petroleos de Venezuela and Petroecuador have entered into a
Research & Development agreement to ascertain the amount of new
hydrocarbons deposits in Ecuador, El Universal reports, citing
official news agency ABN.
PDVSA Drilling and Development Vice-President Luis Vierma told
Ecuadorian newspaper La Hora that, on the Venezuelan side, PDVSA
delegation would signed the deal, which would head for Ecuador
next weekend.
According to the official, outstanding projects will be
established and implemented based on the outcome of the deal, El
Universal relates.
The ministers of energy of Ecuador, Venezuela and Colombia will
have a meeting to discuss the issue of oil exploration and the
possible addition of Ecuador to the Transoceanic Gas Pipeline,
Mr. Vierma added.
About Petroecuador
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, US$2 billion notes due 2027, and US$1 billion notes due
2037.
PETROLEOS DE VENEZUELA: Fitch Revises Outlook; Affirms BB- IDR
--------------------------------------------------------------
Fitch Ratings has revised Petroleos de Venezuela S.A.'s rating
outlook to Negative from Stable following Fitch's revision of
the Bolivarian Republic of Venezuela's Rating Outlook to
Negative from Stable. Concurrently, Fitch affirms its foreign
and local currency Issuer Default Ratings at 'BB-', and the
National long-term rating at 'AAA(ven)'. This rating action
affects US$7.5 billion of outstanding notes due 2017, 2027 and
2037.
Due to its high dependence on crude oil, decreases in the
Venezuela crude oil basket will adversely affect the broader
economy of Venezuela. Furthermore, Fitch remains concerned with
the long-term challenges faced by Petroleos de Venezuela
regarding the company's ability to extract and develop
hydrocarbons reserves, sufficiently reinvest in its business,
and the potential increase in taxes that hinders the company's
ability to invest in much needed infrastructure.
Petroleos de Venezuela's foreign and local currency IDRs are
constrained by Fitch's 'BB-' foreign currency rating of the
Bolivarian Republic of Venezuela and are strongly linked with
the sovereign's credit profile. The linkage is based on the
company's governance as a state-owned entity, the shareholder's
ultimate ability to influence PDVSA's financial flexibility, and
utilization of Petroleos de Venezuela's financial resources for
quasi-sovereign and fiscal, rather than productive capacity,
uses. Currently, the oil minister and the Petroleos de
Venezuela president are one and the same, further demonstrating
the government's tight control over the strategy and resources
of Petroleos de Venezuela. Fitch remains concerned about
sovereign credit trends in Venezuela, underscored by recent
nationalizations and aggressive stance toward the private
sector, as well as by measures to lower oil prices, buoyant
government spending and a heterodox macro policy framework. The
additional debt incurred by Petroleos de Venezuela raised gross
public and public external debt ratios.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* VENEZUELA: Inks Economic Cooperation Agreements with Cuba
-----------------------------------------------------------
Venezuela's President Hugo Chavez has signed with Cuba's Vice-
President Raul Castro new agreements for economic cooperation at
Havana's Conventions Center, the Cuban News Agency reports.
According to the Cuban News, the accords include:
-- 13 documents,
-- five memoranda of understanding,
-- one cooperation agreement,
-- two joint ventures, and
-- three contracts for oil exploration and
exploitation.
Cuba and Venezuela agreed to launch feasibility studies for the
formation of two joint ventures to construct and run cement
plants in the two countries, the Cuban News says.
The Cuban News relates that the 13 documents made reference to
-- two plants for dry and additive added mortars,
-- petrochemical studies,
-- the design and construction of facilities for the
regasification of liquid natural gas, and
-- a plant to process heavy crude oil in Cuba.
The report says that the two letters of intent were for two
joint ventures:
-- one to develop the state run fishing industry of
Venezuela, and
-- one to develop their fishing fleet in national and
international waters.
The Cuban News notes that Cuba also signed with Venezuela an
agreement on technological cooperation between Cuba's state-run
oil firm CUPET and its Venezuelan counterpart Petroleos de
Venezuela SA.
Two new joint ventures were formed, according to the Cuban News.
One joint firm was created to exploit serpentine nickel
deposits, and another to build and run a hotel in Paredon Grande
Key.
The Cuban News reports that the three Cuban oil exploration and
extraction contracts will concentrate on:
-- inland,
-- shallow waters, and
-- deep waters of Cuba's exclusive economic area.
President Chavez signed a Presidential Decree for the formation
of a state-owned joint venture to deploy, operate and service
the international telecommunication system with Cuba, the Cuban
News states.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'. Fitch said the ratings'
outlook remains stable.
* VENEZUELA: Fitch Revised Outlook to Neg.; Affirms BB- IDR
-----------------------------------------------------------
Fitch Ratings has revised the rating outlook on Venezuela's
long-term foreign and local currency Issuer Default Ratings to
Negative from Stable. At the same time, the agency affirmed the
IDRs at 'BB-', the short-term foreign currency rating at 'B',
and the country ceiling at 'BB-'.
An increasingly unsustainable macroeconomic policy framework,
which has resulted in greater vulnerability of external and
public sector accounts to a decline in oil prices, an inability
to significantly reduce inflation, and a widening of the spread
between the official and parallel market exchange rates,
underpins Fitch's concern with respect to sovereign
creditworthiness. Additionally, Venezuela's external position,
which is cushioned by capital controls, has also shown signs of
weakening.
Although expenditure growth has decelerated significantly this
year, the government has more than doubled fiscal and quasi-
fiscal expenditure since 2004, making the fiscal health of the
country more reliant on the performance of the oil sector.
Fitch estimates that the break-even price of the Venezuelan oil
basket necessary to balance the fiscal accounts has now reached
around US$59 per barrel, highlighting the vulnerability of the
fiscal accounts to even a modest fall in international oil
prices. Venezuela has the highest inflation rate in the
hemisphere and the government's heterodox policy response
through price controls, subsidies and financial repression has
not only failed to address the root of the problem, but has also
discouraged investment necessary to increase production to
levels that match rising domestic demand. Furthermore, the
government's increasing role in 'strategic sectors' has
undermined private investment as well and eroded the non-oil
productive capacity of the economy.
Declining international reserves stemming from transfers to
opaque government-managed funds, double-digit import growth, and
disinvestment related to the nationalization of private
companies will likely erode Venezuela's external liquidity ratio
in forecast years.
'Given Venezuela's oil dependency, which causes an elevated
degree of fiscal and balance of payments volatility relative to
peers, the country should maintain higher levels of liquidity to
support creditworthiness,' said Theresa Paiz Fredel, Senior
Director in Fitch's Sovereign group.
After peaking at 310%, Venezuela's external liquidity ratio will
likely decline to 253% in 2008, significantly below five other
'BB' sovereigns, including oil exporters such as Nigeria (Fitch-
rated IDR of 'BB-'). Fitch expects Venezuela's net external
debt indicators to deteriorate this year due to the decline in
international reserves. Although Venezuela's net external
debt/current external receipts, forecast at 11.6% in 2007,
remains significantly below the median of 23.6% for 'BB' rated
peers, this ratio is expected to rise above the peer median by
2009. In addition, if current trends continue, the public
sector could also become a net external debtor by 2009, while
many 'BB' peers will remain net external creditors.
Both Venezuela's long-term foreign and local currency IDRs were
affirmed at 'BB-', reflecting low debt maturities and a high
level of accumulated assets. However, it appears that political
considerations have guided economic policy choice in recent
years. As such, Fitch is concerned that the trend toward
further centralization of power may tempt the government to
maintain spending on key patronage programs at the expense of
bondholder interests under a severe stress scenario for public
finances.
Venezuela's ratings could be downgraded in the absence of an
appropriate policy response to mounting economic pressures or a
further erosion of the country's external position. Fitch will
closely monitor political developments in Venezuela, as
political instability has directly affected the country's
creditworthiness in the past.
* BOND PRICING: For the Week Oct. 15 to Oct. 19
-----------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Argnt-Bocon PR11 2.000 12/3/10 ARS 65.47
Argnt-Bocon PR13 2.000 3/15/24 ARS 69.29
Arg Boden 2.000 9/30/08 ARS 28.03
Argent-Par 0.630 12/31/38 ARS 43.52
CAYMAN ISLANDS
--------------
Vontobel Cayman 7.450 02/22/08 CHF 70.70
Vontobel Cayman 10.250 12/28/07 CHF 70.30
Vontobel Cayman 10.400 12/28/07 CHF 53.60
Vontobel Cayman 10.700 12/28/07 CHF 56.00
Vontobel Cayman 11.400 12/28/07 CHF 73.30
Vontobel Cayman 11.400 12/28/07 CHF 61.35
Vontobel Cayman 11.650 12/28/07 CHF 70.30
Vontobel Cayman 11.850 12/28/07 CHF 61.35
Vontobel Cayman 13.050 12/28/07 CHF 56.75
Vontobel Cayman 13.150 10/25/07 CHF 65.15
Vontobel Cayman 13.350 12/28/07 CHF 51.20
Vontobel Cayman 13.450 12/28/07 CHF 70.10
Vontobel Cayman 13.500 02/22/08 CHF 54.40
Vontobel Cayman 14.900 12/28/07 CHF 27.50
Vontobel Cayman 16.000 12/28/07 EUR 57.35
Vontobel Cayman 16.800 12/28/07 CHF 8.55
Vontobel Cayman 22.850 12/28/07 CHF 20.90
JAMAICA
-------
Jamaica Govt. LRS 7.500 10/06/12 JMD 72.83
Jamaica Govt. LRS 12.750 6/29/22 JMD 74.72
VENEZUELA
---------
Petroleos de Ven 5.375 4/12/27 US 65.50
Petroleos de Ven 5.500 4/12/37 US 63.50
***********
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.
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