/raid1/www/Hosts/bankrupt/TCRLA_Public/071029.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 29, 2007, Vol. 8, Issue 214
Headlines
A R G E N T I N A
BALL CORP: Reports US$60.9 Million Third Quarter Earnings
BELTSCENTER SRL: Trustee Filing Individual Reports on Feb. 28
CERIANI SRL: Proofs of Claim Verification Deadline Is Nov. 21
ECOSISTEMA BIOTICO: Proofs of Claim Verification Ends Nov. 30
EDITORIAL PIATTI: Proofs of Claim Verification Ends on Dec. 3
FREESCALE SEMICONDUCTOR: Expands Operations in China
GRADEA SA: Trustee Filing Individual Reports on Feb. 2
NOHRA TANIOS: Trustee Verifies Proofs of Claim Until Nov. 8
PANAMERICANA LOGISTIC: Concludes Reorganization Proceeding
PETROBRAS ENERGIA: Moody's Assigns Ba1 Local Currency Rating
QUILSER SA: Proofs of Claim Verification Is Until Feb. 4
SENACO SRL: Proofs of Claim Verification Deadline Is Dec. 18
TEXTIL JAVERIM: Proofs of Claim Verification Ends on Nov. 28
B A R B A D O S
INTERPUBLIC GROUP: Mary Guilfoile Joins Board of Directors
B E R M U D A
UNICOM ASSURANCE: Proofs of Claim Filing Deadline Is Nov. 7
UNICOM ASSURANCE: Will Hold Last Shareholders Meeting on Nov. 30
UNIDO INVESTMENTS: Proofs of Claim Filing Ends on Nov. 7
UNIDO INVESTMENTS: Sets Final Shareholders Meeting for Nov. 28
B R A Z I L
BANCO NACIONAL: Okays BRL197-Mln Loan to Companhia de Saneamento
BRASIL TELECOM: Mulls Joining Auctions for 3G Spectrum
BR MALLS: S&P Assigns BB- Rating on Perpetual Notes
DELPHI CORP: Wins Court Approval for US$106 Mil. Interiors Sale
EL PASO: Paying US$0.04 Per Share Quarterly Dividend on Jan. 7
FIDELITY NAT'L: Board Okays Lender Processing Services Spin-Off
FIDELITY NATIONAL: Moody's Reviews Ratings for Likely Downgrade
FIDELITY INT'L: S&P Puts BB Corp. Credit Rating on Watch Neg.
LYONDELL CHEMICAL: Earns US$206 Million for Third Quarter 2007
NAVISTAR INT'L: S&P Holds BB- Corp. Credit Rating Under WatchNeg
SANYO ELECTRIC: Settles Patent Dispute with 3M Co.
TECUMSEH PRODUCTS: Selling Train Operations to Platinum Equity
C A Y M A N I S L A N D S
KIPPERS INT'L: Sets Final Shareholders Meeting for Nov. 2
KONDOR 2001-A: Will Hold Final Shareholders Meeting on Nov. 2
KONDOR 2001-B: Sets Final Shareholders Meeting for Nov. 2
LONGMEADOW CDO: Will Hold Final Shareholders Meeting on Nov. 2
MITRA SEJATI: Holding Final Shareholders Meeting on Nov. 2
MONTANA FINANCE: Sets Final Shareholders Meeting for Nov. 2
NIPPON SHINPAN: Holding Final Shareholders Meeting on Nov. 2
OCTAGON INVESTMENT: Will Hold Last Shareholders Meeting Nov. 2
OSCAR FUNDING: Sets Final Shareholders Meeting for Nov. 2
C H I L E
AES GENER: Earns CLP32.0 Billion in First Nine Months
INGRAM MICRO: Reports US$8.61 Bil. Third Quarter Worldwide Sales
METHANEX CORP: Earns US$23.61 Mil. in Third Qtr. Ended Sept. 30
C O L O M B I A
CUMMINS INC: 2007 Third Quarter Net Income Rises to US$184 Mil.
C O S T A R I C A
SAMSONITE CORP: Closes US$1.7 Billion CVC Capital Merger Deal
US AIRWAYS: Pilots Picket at Philadelphia International Airport
* COSTA RICA: IDB OKs US$500MM Conditional Credit Line to ICE
D O M I N I C A N R E P U B L I C
BANCO INTERCONTINENTAL: R. Camilo Says Court Ruling Complacent
BANCREDITO: Rafael Camilo Says Court Ruling Complacent
SERVICEMASTER CO: S&P Affirms 'B+' Rating on US$2.65-Bil. Loan
E L S A L V A D O R
BANCO AGRICOLA: S&P Affirms BB/B Counterparty Credit Rating
HANESBRANDS INC: Reports US$38.9-Mln Net Income in Third Quarter
M E X I C O
AMERICAN GREETINGS: Acquires CNET's Webshots Online Assets
ATARI INC: BlueBay Buys US$3 Million Guggenheim Debt Facility
AXTEL SA: Earns MXN209 Million in Third Quarter 2007
CEMEX SAB: Net Income Drops 7% to US$780 Mil. in Third Qtr. 2007
COTT CORP: S&P Lowers Corporate Credit Rating to B from B+
EPICOR SOFTWARE: Earns US$8.1 Mil. in 3rd Quarter Ended Sept. 30
GRUPO IUSACELL: Revenues Up 35% to MXN2,637 Million in 3rd Qtr.
GRUPO MEXICO: Drops Cananea Expansion Plans Due to Labor Unrest
HARMAN INT'L: Earns US$36.5 Mil. in First Quarter Ended Sept. 30
HILLMAN COS: Moody's Revises Outlook to Neg.; Affirms B2 CFR
KANSAS CITY: To Build Megamex Terminal at Hidalgo or Edomex
MOVIE GALLERY: Can File Statements & Schedules on Nov. 30
MOVIE GALLERY: Wells Fargo Can File One Master Proof of Claim
MOVIE GALLERY: Court OKs Sale of 508 Leases & Designation Rights
TIMKEN CO: Reports US$41.2-Million Net Income in 2007 Third Qtr.
N I C A R A G U A
XEROX CORP: Moody's Puts Ratings on Review for Possible Upgrade
P A N A M A
SOLO CUP: Fitch Upgrades Senior Sub. Notes Rating to CCC+
P E R U
* PERU: Gets US$1.2-Mln Loan for Water Resources Management Plan
P U E R T O R I C O
ANTONIO CHEVRES: Case Summary & 15 Largest Unsecured Creditors
CELESTICA INC: Reports US$51.5 Mil. Third Quarter Net Earnings
PRG-SCHULTZ: Completes Redemption of 9% Series A Pref. Stock
T R I N I D A D & T O B A G O
BRITISH WEST: Lower Court Ordered To Hasten Patterson Hearing
HILTON HOTELS: Fitch Affirms & Withdraws Ratings Due to Merger
HILTON HOTELS: Moody's Cuts Senior Unsecured Debt Rating to Caa1
HILTON HOTELS: S&P Lifts Ratings on Eight Certificate Classes
HILTON HOTELS: S&P Withdraws Ratings After Blackstone Merger
U R U G U A Y
* URUGUAY: State Power Company Buying Power from Brazilian Firms
V E N E Z U E L A
CHRYSLER LLC: 55% UAW Workers Vote to Accept Tentative Pact
* VENEZUELA: Gets Ready to Face Arbitration with ConocoPhilips
* BOND PRICING: For the Week Oct. 15 to Oct. 19
- - - - -
=================
A R G E N T I N A
=================
BALL CORP: Reports US$60.9 Million Third Quarter Earnings
---------------------------------------------------------
Ball Corporation has reported third quarter earnings of US$60.9
million, or 59 cents per diluted share, on sales of US$1.91
billion, compared to US$107.1 million, or US$1.02 per diluted
share, on sales of US$1.82 billion in the third quarter of 2006.
For the first nine months of 2007, Ball Corp.'s results were
earnings of US$248 million, or US$2.40 per diluted share, on
sales of US$5.63 billion, compared to US$281.3 million, or
US$2.68 per diluted share, on sales of US$5.03 billion in the
same period in 2006.
Both the third quarter and the nine-month results in 2007
include an after-tax charge of US$51.8 million, or 50 cents per
diluted share, related to the settlement of a dispute with a
beverage can customer in the metal beverage packaging, Americas,
segment. The 2006 results include a gain of US$2.8 million
(US$1.7 million after tax, or two cents per diluted share) in
the third quarter and US$76.9 million (US$46.9 million after
tax, or 45 cents per diluted share) in the first nine months for
insurance recovery from a fire at a plant in Germany.
The 2007 results through three quarters do not include an after-
tax charge of approximately US$26 million that will result from
facility closures and related equipment relocation activities
associated with plans the company announced as part of the
continuing consolidation of its food and household products
packaging, Americas, segment. That charge will occur in the
fourth quarter of 2007.
"We had a solid quarter, led by outstanding results in our metal
beverage packaging, Europe/Asia, and our aerospace and
technologies segments," said R. David Hoover, chairman,
president and chief executive officer. "Operating results in
our metal beverage packaging, Americas, segment were slightly
lower than a year ago in the quarter, but for the full year they
remain well above 2006. We announced this week a restructuring
plan to improve results in our metal food and household products
packaging, Americas, segment. We continue to have discussions
with our customer base about the need to improve results there
and in our underperforming plastic packaging, Americas,
segment."
Metal Beverage Packaging, Americas
The 2007 sales and operating earnings for both the quarter and
the first nine months were reduced by the US$85.6 million pre-
tax charge related to the customer settlement. Operating
earnings in the quarter before the customer settlement for the
metal beverage packaging, Americas, segment were US$65 million
on sales of US$728.8 million, compared to US$73 million on sales
of US$659.6 million in the third quarter of 2006. For the first
nine months segment results before the customer settlement were
earnings of US$241.4 million on sales of US$2.2 billion,
compared to US$193.5 million on sales of US$1.99 billion in the
first three quarters of 2006.
"Demand continued to be strong, particularly for specialty size
beverage cans, during the third quarter in the metal beverage
packaging, Americas, segment," Mr. Hoover said. "To help meet
that demand, we plan to install a new 24-ounce can production
line in our Monticello, Ind., facility in time for the 2008
summer sales period."
Metal Beverage Packaging, Europe/Asia
Third quarter earnings in the metal beverage packaging,
Europe/Asia, segment were US$81 million on sales of US$522.4
million, compared to US$66 million, including US$2.8 million in
property insurance gains, on sales of US$425.1 million in the
third quarter of 2006. For the first nine months segment
earnings were US$218.5 million on sales of US$1.45 billion,
compared to US$235.7 million, including US$76.9 million in
property insurance gains, on sales of US$1.16 billion in the
same period in 2006.
"Results in Europe were helped by higher selling prices,
continued cost optimization efforts, and by a full quarter's
contribution from the new lines added in Hassloch and Hermsdorf,
Germany, to replace the capacity lost in the fire last year,"
Mr. Hoover said. "We have announced plans for line speedups and
are looking at possible additional can and end manufacturing
capacity in Europe to meet the continued demand growth there."
Metal Food & Household Products Packaging, Americas
Earnings for the third quarter in the metal food and household
products packaging, Americas, segment were US$14.5 million on
sales of US$349.5 million, compared to US$19.7 million on sales
of US$366 million in the third quarter of 2006. For the first
nine months of 2007, earnings were US$25.4 million on sales of
US$912.3 million, compared to US$25.5 million, including a
US$1.7 million charge for costs to shut down a food can
manufacturing line in Canada, on sales of US$850.5 million.
"Results in our metal food and household products packaging,
Americas, segment remain below acceptable levels," Mr. Hoover
said. "As part of the ongoing process of integrating the assets
we acquired in March 2006 and improving overall performance, we
have announced plans to close two manufacturing plants and exit
the custom and decorative tinplate can business. Although some
manufacturing equipment from the facilities being closed will be
relocated to other Ball facilities, we expect an overall
reduction in manufacturing capacity of approximately 10
production lines. When completed, this restructuring is
expected to yield annualized cost savings in excess of US$15
million."
Plastic Packaging, Americas
Third quarter results in the plastic packaging, Americas,
segment were earnings of US$7.7 million on sales of US$195
million, compared to US$7.9 million on sales of US$201.2 million
in the third quarter of 2006. For the first three quarters of
2007, results were earnings of US$17.1 million on sales of
US$580.3 million, compared to US$18.3 million on sales of
US$521.1 million in the same period in 2006.
"Sales volumes were up slightly from the third quarter of 2006,
due in part to the inclusion of our plastic pail business, which
was transferred to this segment at the beginning of 2007," Mr.
Hoover said. "However, we remain disappointed with the sales of
commodity PET bottles."
Aerospace and Technologies
Earnings in the third quarter for the aerospace and technologies
segment were US$18.3 million on sales of US$196.4 million,
compared to US$15.6 million on sales of US$170.4 million in the
third quarter of 2006. For the first nine months of 2007,
earnings were US$53.5 million on sales of US$596.9 million,
compared to US$33.4 million on sales of US$505.7 million in the
first three quarters of 2006.
"Our aerospace and technologies segment had an excellent quarter
and earnings through three quarters exceed all of 2006 for the
segment," Mr. Hoover said. "The successful launch on Sept. 18
of the WorldView-1 satellite we built for DigitalGlobe marked
another important achievement for Ball Aerospace. This next-
generation imaging satellite and the WorldView-2 spacecraft we
currently have in development will be the most agile commercial
imaging spacecraft ever flown."
Outlook
Raymond J. Seabrook, executive vice president and chief
financial officer, said a lower effective tax rate helped third
quarter results.
"We concluded our negotiations with the Internal Revenue Service
regarding interest expenses incurred on loans under a company-
owned life insurance plan, with the majority of the interest
deductions being upheld," Mr. Seabrook said. "Legislated
reductions in European corporate tax rates and other favorable
tax issues resulted in an overall lower tax rate in the quarter.
"Our adjusted full-year free cash flow is still on track to
exceed US$400 million and our stock buyback is projected at
US$200 million," Mr. Seabrook said.
"We are taking aggressive steps to better position Ball
Corporation for the future," Mr. Hoover said. "We are
determined to make our best businesses even better and to bring
our underperforming businesses to more acceptable levels.
"We have announced plans for expansion in some of the world's
strongest growth markets and are examining other similar
opportunities. We are continuing the process of integrating and
rationalizing assets in the mature metal food and household
products packaging market," Mr. Hoover said.
About Ball Corp.
Headquartered in Broomfield, Colorado, Ball Corp. --
http://www.ball.com/-- is a supplier of high-quality metal and
plastic packaging products. It owns Ball Aerospace &
Technologies Corp. -- a developer of sensors, spacecraft,
systems and components for government and commercial customers.
Ball Corp. reported sales of US$5.7 billion in 2005 and the
company employs about 13,100 people worldwide, including
Argentina, Hong Kong and China.
* * *
As of July 30, 2007, the company holds Moody's Ba1 long-term
corporate family rating, bank loan debt, senior unsecured debt,
and probability of default rating. Moody's said the outlook is
stable.
Standard & Poor's rates the company's long-term foreign and
local issuer credits at BB+ with a stable outlook.
Fitch also rates the company's bank loan debt at BB+ and long-
term issuer default rating and senior unsecured debt at BB.
Fitch said the outlook is stable.
BELTSCENTER SRL: Trustee Filing Individual Reports on Feb. 28
-------------------------------------------------------------
Julio Cesar Capovilla, the court-appointed trustee for
Beltscenter S.R.L.'s bankruptcy proceeding, will present the
validated claims as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
Feb. 28, 2008.
Mr. Capovilla verifies creditors' proofs of claim until
Dec. 12, 2007. She will submit a general report containing an
audit of Beltscenter's accounting and banking records in court
on April 30, 2008.
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 trustee can be reached at:
Julio Cesar Capovilla
Avenida Corrientes 3859
Buenos Aires, Argentina
CERIANI SRL: Proofs of Claim Verification Deadline Is Nov. 21
-------------------------------------------------------------
Antonio Enrique Bearzotti, the court-appointed trustee for
Ceriani S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Nov. 21, 2007.
Mr. Bearzotti 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 Ceriani 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 Ceriani's accounting
and banking records will be submitted in court.
Infobae didn't state the general report submission deadline.
Mr. Bearzotti is also in charge of administering Ceriani's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Ceriani S.R.L.
Lulio Raimundo 3863
Cordoba, Argentina
The trustee can be reached at:
Antonio Enrique Bearzotti
Avenida Colon 377, Ciudad de Cordoba
Cordoba, Argentina
ECOSISTEMA BIOTICO: Proofs of Claim Verification Ends Nov. 30
-------------------------------------------------------------
Ruben Daniel Sarafian, the court-appointed trustee for
Ecosistema Biotico S.A.'s bankruptcy proceeding, verifies
creditors' proofs of claim until Nov. 30, 2007.
Mr. Sarafian will present the validated claims in court as
individual reports on Feb. 25, 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 Ecosistema Biotico 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 Ecosistema Biotico's
accounting and banking records will be submitted in court on
April 14, 2008.
Mr. Sarafian is also in charge of administering Ecosistema
Biotico's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Ecosistema Biotico S.A.
Acoyte 25
Buenos Aires, Argentina
The trustee can be reached at:
Ruben Daniel Sarafian
Viamonte 1337
Buenos Aires, Argentina
EDITORIAL PIATTI: Proofs of Claim Verification Ends on Dec. 3
-------------------------------------------------------------
Elsa Ester Andrade, the court-appointed trustee for Editorial
Piatti S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until Dec. 3, 2007.
Ms. Andrade 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 Editorial
Piatti 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 Editorial Piatti's
accounting and banking records will be submitted in court.
Infobae didn't state the general report submission deadline.
Ms. Andrade is also in charge of administering Editorial
Piatti's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Elsa Ester Andrade
Avenida Callao 449
Buenos Aires, Argentina
FREESCALE SEMICONDUCTOR: Expands Operations in China
----------------------------------------------------
Freescale Semiconductor recently celebrated the opening of a new
design center in Chengdu, China. The opening follows several
recent expansions in the Chinese market, including a thriving
assembly and test operation in Tianjin and a growing operation
in Shanghai, which has tripled in size since opening two years
ago.
"Asia represents the single greatest growth opportunity for our
business," said Michel Mayer, Freescale chairman and CEO. "It
is important that we maintain strategic operations close to our
customers. There is abundant engineering and business talent
here, and we are investing in these resources to serve our
substantial customer base and support our aggressive growth plan
for the region."
Freescale has maintained operations in China since 1992. The
company was the first U.S.-based corporation to establish a
semiconductor manufacturing facility in the nation and the first
company to set up a joint-venture integrated circuit (IC) design
center. Freescale's China operations encompass the entire
semiconductor supply chain -- from IC design, foundry, assembly
and test, to sales and marketing. In addition, the company
operates eight design labs in five design locations -- Beijing,
Tianjin, Shanghai, Suzhou and Chengdu.
China is now the world's top market for semiconductor
consumption and broadband connections and is expected to be the
world's largest automotive market by 2015. The number of mobile
phone users now stands at more than 508 million. Investments in
telecommunication infrastructure have reached $42.5B RMB,
representing a 14.8-percent growth compared to the same period
last year. And two new 3G standards have recently emerged in
addition to the indigenous TD-SCDMA standard.
Chengdu Design Center
Engineers at the new Chengdu Design Center will work with highly
advanced technologies in radio frequency (RF), digital signal
processing (DSP) and communication processing. Expected to
employ 100 engineers by the end of 2009, the center will be the
key driver of Freescale's TD-SCDMA technologies. Work at the
center will also contribute significantly to the creation of
next-generation RF power products, and it will help to advance
microcode technology for Freescale's QUICC Engine(TM)
architecture.
Shanghai Innovation Center
Since its opening in 2005, Freescale's Shanghai Innovation
Center has grown from 80 to more than 280 employees working in
engineering, sales, marketing and Asia corporate operations.
The Shanghai center serves as a strong base of operations for
the company's Asia-Pacific business. It serves major customers
in the region such as Delphi, Continental, ZTE, Lenovo, Huawei
and Alcatel Shanghai Bell.
In addition, Freescale has relocated the headquarters of its
global consumer and industrial business from the United States
to Shanghai. This move places the leadership of the company's
microcontroller, analog and sensors businesses closer to
customers and potential customers in the high-growth Asia-
Pacific region. The Shanghai center is home to four design and
applications labs:
-- Wireless Multimedia Application Design (WMAD) lab focuses
on system-on-chip projects, as well as mobile consumer and
auto applications featuring advanced 90- and 60-nanometer
technologies.
-- The Automotive Lab supports local automakers and their
electronics suppliers in the region by providing total
solutions for powertrain, body control, chassis and safety
applications.
-- The MCU System Design and Application Lab plays a key role
in new product introductions.
-- The RF Applications and Digital Signal Processor
-- Applications Lab supports networking and communication
customers in the region.
Tianjin Final Manufacturing
Also experiencing significant growth is the Tianjin Final
Manufacturing operation, Freescale's back-end manufacturing
facility in Tianjin, China. The Tianjin factory supplies more
than 9 million microcontroller, mixed-signal and radio frequency
devices per week. It is one of two Freescale facilities offering
complete testing and packaging capabilities. The 400,000-
square-foot factory has been in production since 2001. The
Tianjin operation, which has more than 2,500 employees, was
recently awarded the 2006 Best Employer and Best Female Employer
Awards organized by the Central China TV station.
Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.
Freescale Semiconductor became a publicly traded company in July
2004. The company has design, research and development,
manufacturing or sales operations in more than 30 countries. In
Latin America, Freescale Semiconductor has operations in
Argentina, Brazil and Mexico. In Europe, the company has
operations in Czech Republic, France, Germany, Ireland, Italy,
Romania, Turkey and the United Kingdom. Revenues for the 12
months ended March 31, 2007 were US$6.2 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 20, 2007, Standard & Poor's Ratings Services has placed
its 'BB-' corporate credit rating and other ratings on Freescale
Semiconductor Inc. on CreditWatch with negative implications.
As reported in the Troubled Company Reporter-Latin America on
Oct. 26, 2007, Moody's Investors Service has placed the ratings
of Freescale Semiconductor, Inc. under review for possible
downgrade:
-- Corporate Family Rating (New), Ba3
-- Probability of Default Rating, Ba3
-- US$750 Million Senior Secured Revolving Credit Facility
due 2012, Baa3 (LGD-2, 16%)
-- US$3.50 Billion Senior Secured Term Loan B Facility due
2013, Baa3 (LGD-2, 16%)
-- US$2.85 Billion Senior Unsecured Notes due 2014, B1
(LGD-4, 63%)
-- US$1.50 Billion Senior Unsecured Toggle Notes due 2014,
B1 (LGD-4, 63%)
-- US$1.60 Billion Senior Subordinated Unsecured Notes due
2016, B2 (LGD-6, 91%)
GRADEA SA: Trustee Filing Individual Reports on Feb. 2
------------------------------------------------------
Felipe Florio, the court-appointed trustee for Gradea S.A.'s
bankruptcy proceeding, will present creditors' validated claims
as individual reports in the National Commercial Court of First
Instance in Buenos Aires on Feb. 2, 2008.
The court will determine if the verified claims are admissible,
taking into account the trustee's opinion and the objections and
challenges raised by Gradea and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Florio verifies creditors' proofs of claim until
Nov. 28, 2007.
Mr. Florio will also submit to court a general report containing
an audit of Gradea's accounting and banking records on
March 12, 2008.
The trustee can be reached at:
Felipe Florio
Uruguay 618
Buenos Aires, Argentina
NOHRA TANIOS: Trustee Verifies Proofs of Claim Until Nov. 8
-----------------------------------------------------------
Gerardo Pena Critto, the court-appointed trustee for Nohra
Tanios Mikael y Joseph Tanios Saleme S.H.'s reorganization
proceeding, verifies creditors' proofs of claim until
Nov. 8, 2007.
Mr.Critto will present the validated claims in court as
individual reports on Dec. 21, 2007. The National Commercial
Court of First Instance in Concepcion, Tucuman, 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 Nohra Tanios 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 Nohra Tanios'
accounting and banking records will be submitted in court on
March 10, 2008.
The informative assembly will be held on Sept. 17, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly.
PANAMERICANA LOGISTIC: Concludes Reorganization Proceeding
----------------------------------------------------------
Panamericana Logistic S.A.'s reorganization proceeding has
ended. Data published by Infobae on its Web site indicated that
the process was concluded after the National Commercial Court of
First Instance in Buenos Aires approved the debt agreement
signed between the company and its creditors.
The debtor can be reached at:
Panamericana Logistic S.A.
Montevideo 451
Buenos Aires, Argentina
PETROBRAS ENERGIA: Moody's Assigns Ba1 Local Currency Rating
------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 global local
currency issuer rating to Petrobras Energia S.A., and affirmed
its Ba2 foreign currency rating for bonds issued under the
US$2.5 billion Obligaciones Negociables program, and the Baa1
FCBR for the Series S bonds based on a Petrobras standby
purchase agreement. Moody's also assigned a National Scale
Rating of Aa2.Ar to the bonds designated as Series H, I, N, Q
and R; and of Aaa.Ar to the Series S bonds, reflecting Petrobras
support. National scale ratings indicate relative measures of
creditworthiness among debt issuers within a country, enabling
market participants to better differentiate relatives risks.
National scale ratings are not globally comparable to the full
universe of Moody's rated entities, but are only comparable with
other rated entities in the same country. Petrobras Energia's
rating outlook is stable. Petrobras Energia's B2 Corporate
Family Rating is also affirmed with a positive outlook,
reflecting the positive outlook for Argentina's country ceiling.
Petrobras Energia's Ba1 GLCR reflects uplift above its
standalone credit quality based on a high degree of implied and
explicit support from Petroleo Brasileiro S.A. (Petrobras, A2
GLCR), Brazil's major international integrated petroleum
company. Petrobras holds a controlling 67.2% interest in the
company. Petrobras Energia's Ba2 foreign currency bond rating
reflects its Ba1 GLCR, as well as a sizable export profile and
strong track record servicing its foreign currency debt during
the Argentine financial crisis. The Ba2 FCBR also factors in
the high degree of convertibility and transfer risk reflected in
Argentina's B2 long-term foreign currency ceiling and B3 foreign
currency government bond rating.
Petrobras Energia's Ba1 GLCR reflects multi-notch uplift based
on expected parent company support. Petrobras has shown strong
support of Petrobras Energia as a strategic investment conduit
in Argentina, both upstream and downstream, and to a lesser
extent elsewhere in South America. Since it acquired a majority
interest in Petrobras Energia in 2002, Petrobras has increased
its stake to 67.2% via the merger in 2005 of its Argentine
assets with Petrobras Energia's. Petrobras controls a majority
of the Petrobras Energia board and has installed most of the
senior management from the Petrobras ranks in recent years,
setting the company on a new exploration-led strategy to turn
around lagging and high cost upstream operations.
In addition, Petrobras has become active in Petrobras Energia's
liability management. While it does not guarantee the bulk of
Petrobras Energia's debt, it provided US$250 million of
intercompany loans in 2004-2005 to support refinancing of
Petrobras Energia's higher cost more restrictive debt. More
significantly, Petrobras explicitly supported a new Petrobras
Energia bond issue in 2007 for the first time via a standby
purchase agreement, the proceeds of which Petrobras Energia used
to re-finance debt and support capital spending. Moody's
believes this is a strong indication of Petrobras' support of
Petrobras Energia's financing and the likelihood of Petrobras
support in the event of financial distress. In addition,
Petrobras has cross default provisions in some of its own debt
instruments that provide further incentive for it to support
Petrobras Energia, albeit limited to the maturity of those
instruments.
Petrobras Energia's rating reflects a moderately sized energy
company with some benefit from integration and diversification,
but is also constrained by declining reserves, a rising cost
structure, fairly aggressive financial leverage and negative
regulatory impacts. Petrobras Energia ranks as the third
largest oil and gas producer in Argentina, with approximately
527 million BOE reserves (year-end 2006) and BOE production in
the area of 143,000 BOE/day in the first half of 2007. Its
proved developed BOE reserve life at 5.8 years, and 10.2 years
total proved, are largely in line with its peers.
However, its reserves and production have been declining and
unit finding and development and production costs have been
rising. Petrobras Energia's reserves are concentrated in mature
basins in Argentina requiring extensive workover activity, and
are subject to inflationary pressures on oilfield services and
labor costs, as well as the appreciation of the Peso on
domestic-based costs. Wellhead price controls and export taxes
on oil and gas production have also hurt upstream cash
realizations and margins. In addition, Petrobras Energia
remains subject to political risk in areas such as Venezuela,
where large reserves were de-booked following the forced
conversion to mixed companies in 2006, and in development
projects in Ecuador, which remain subject to development delays
due to environmental issues. In response, Petrobras Energia has
been shifting its strategic focus over the past two years,
benefiting from Petrobras's expertise and technology. It is
acquiring new acreage and significantly increasing exploration
spending in Argentina, both onshore and offshore, in Peru, and
in Colombia.
Petrobras Energia derives some modest ratings support and cash
flow stability from operational integration and its diversified
energy operations, which include refining, product distribution,
retail stations, petrochemicals, electric generation, and
investments in gas transmission and electric distribution. The
latter include, respectively, a 25.5% stake in Transportadora de
Gas del Sur and a 27.3% stake in Edesur.
Negative regulatory impacts, however, continue to affect these
operations. Refining and product distribution have been
generating losses at least since 2002, largely as a result of
retail price controls and requirement to import diesel fuel at a
loss to supply the domestic market. While Petrobras Energia has
renegotiated gas and electricity sales agreements with
industrial clients to gradually increase sales prices,
residential electric tariffs and TGF's transportation rates
remain frozen at 2002 levels. Petrochemical operations are
contributing positively to results, albeit subject to economic
cycles and feedstock cost pressures.
Petrobras Energia maintains a fairly elevated leverage position,
as measured by total adjusted debt of US$5.65 per proved
developed BOE. Leverage on the barrel has increased in tandem
with declining proved developed reserves. However, cash flow
from operations has benefited over the past few years from
higher oil and gas prices and improving petrochemical and
electric generation results, allowing Petrobras Energia to fund
capital spending internally and reduce total debt modestly.
Capital spending will be in the area of US$800 million in 2007
and is likely to be at the same level or lower in 2008 and
funded from internal cash flow, keeping debt levels in check.
A stable rating outlook for Petrobras Energia depends both on
its continuing strategic importance to Petrobras, and on Moody's
assessment of Petrobras Energia's standalone credit quality.
Petrobras Energia's ratings would not be affected by an upgrade
in the Argentina foreign currency bond rating or ceiling, which
currently have a positive outlook. Deterioration in Petrobras
Energia's leverage profile or operating performance,
particularly in the upstream, could affect Moody's standalone
credit assessment and, in turn, the Ba1 GLCR and degree of
notching uplift for expected parent company support. A
downgrade in Argentina's foreign currency government bond rating
could also pressure Petrobras Energia's ratings or outlook.
Petrobras Energia, S.A. is headquartered in Buenos Aires,
Argentina. Its majority owner, Petrobras, is based in Rio de
Janeiro, Brazil.
QUILSER SA: Proofs of Claim Verification Is Until Feb. 4
--------------------------------------------------------
Liliana Isabel Quiroga, the court-appointed trustee for Quilser
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Feb. 4, 2008.
Ms. Quiroga 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 Quilser 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 Quilser's accounting
and banking records will be submitted in court.
Infobae didn't state the reports submission deadlines.
Ms. Quiroga is also in charge of administering Quilser's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Liliana Isabel Quiroga
Terrero 1752
Buenos Aires, Argentina
SENACO SRL: Proofs of Claim Verification Deadline Is Dec. 18
------------------------------------------------------------
Jorge Fernando Podhorzer, the court-appointed trustee for Senaco
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Dec. 18, 2007.
Mr. Podhorzer will present the validated claims in court as
individual reports on March 3, 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 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 on
April 14, 2008.
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 trustee can be reached at:
Jorge Fernando Podhorzer
Pasaje del Carmen 716
Buenos Aires, Argentina
TEXTIL JAVERIM: Proofs of Claim Verification Ends on Nov. 28
------------------------------------------------------------
Ricardo Sukiassian, the court-appointed trustee for Textil
Javerim S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Nov. 28, 2007.
Mr. Sukiassian 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 Textil
Javerim 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 Textil Javerim's
accounting and banking records will be submitted in court.
Infobae didn't state the reports submission deadlines.
Mr. Sukiassian is also in charge of administering Textil
Javerim's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Ricardo Sukiassian
San Martin 1009
Buenos Aires, Argentina
===============
B A R B A D O S
===============
INTERPUBLIC GROUP: Mary Guilfoile Joins Board of Directors
----------------------------------------------------------
The Interpublic Group has elected Mary Guilfoile to its Board of
Directors. Ms. Guilfoile, currently Chairman of MG Advisors,
Inc., will join the board immediately and will serve on the
audit committee.
"Mary has a tremendous breadth of knowledge concerning every
aspect of a company's operations," said Michael I. Roth,
Chairman and CEO, Interpublic. "Not only has she been extremely
successful in the field of financial services, she got her start
in high value professional services. Mary also gives of her
time to a great academic institution. We look forward to her
contributions as she brings this wealth of experience to our
Board of Directors."
MG Advisors is a privately owned financial services merger and
acquisitions advisory and consulting firm. Prior to joining MG
Advisors in 2002, Ms. Guilfoile was Executive Vice President and
Chief Administrative Officer at JPMorgan Chase. Her
responsibilities encompassed administrative operations,
strategic planning, marketing communications and special
projects for the Investment Bank group. She also served as
Corporate Treasurer at JPMorgan. In that capacity, she oversaw
the corporate treasury and planning groups, as well as M&A and
pension plan operations. Before her tenure at JPMorgan Chase,
Ms. Guilfoile was Partner, CFO and COO of the Beacon Group, a
private equity, strategic advisory and wealth management
partnership, from 1996 through 2000.
For ten years before joining the Beacon Group, Ms. Guilfoile
held a number of positions at Chemical Banking Corporation,
ultimately serving as Chief Administrative and Strategic
Planning Officer/Managing Director. Her responsibilities
included administrative oversight, compliance, financial control
and risk management for all of the domestic commercial and
investment banking activities in the corporate, real estate and
international merchant banking sectors.
Ms. Guilfoile spent several years early in her career with
Coopers & Lybrand, now PriceWaterhouseCoopers, and Booz Allen &
Hamilton, the strategic consulting firm based in New York. She
holds an M.B.A., Marketing and Finance from Columbia University
and a B.S., Accounting from Boston College. She is a Certified
Public Accountant and is a Member of the Board of Directors of
Valley National Bancorp. She is also Chairman of the Anti-Money
Laundering/BSA Compliance Committee and a member of the
Investment, Wealth Management and Insurance Services, Insurance
Pension/Savings and Investment Trustees and Rick Management
Committees. She is also a Member of the Board of Trustees of
Boston College where she sits on the Finance and Audit
Committee.
About Interpublic Group
New York-based, Interpublic Group of Companies Inc. (NYSE:IPG)
-- http://www.interpublic.com/-- is one of the world's leading
organizations of advertising agencies and marketing services
companies. The Interpublic Group has over 43,000 employees
working in offices in more than 130 countries around the world,
including Argentina, Brazil, Barbados, Belize, Chile, Colombia,
Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala,
Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Puerto
Rico, Peru, Uruguay and Venezuela.
* * *
As reported in the Troubled Company Reporter on May 22, 2007,
Fitch Ratings has upgraded Interpublic Group's Issuer Default
Rating to 'BB-' from 'B'. Approximately US$2.3 billion in total
debt as of March 31, 2007, is affected. Fitch said the rating
outlook is stable.
IPG's ratings are as:
-- Issuer Default Rating (IDR) upgraded to 'BB-' from 'B';
-- Enhanced Liquidity Facility (ELF) upgraded to 'BB-'
from 'B'/'RR4';
-- Senior unsecured notes (including convertibles) upgraded
to 'BB-' from 'B'/'RR4';
-- Cumulative convertible perpetual preferred stock upgraded
to 'B' from 'CCC'/'RR6'.
=============
B E R M U D A
=============
UNICOM ASSURANCE: Proofs of Claim Filing Deadline Is Nov. 7
-----------------------------------------------------------
Unicom Assurance Company Limited's creditors are given until
Nov. 7, 2007, to prove their claims to Robin J. Mayor, 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.
Unicom Assurance's shareholders agreed on Oct. 22, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
UNICOM ASSURANCE: Will Hold Last Shareholders Meeting on Nov. 30
----------------------------------------------------------------
Unicom Assurance Company Limited will hold its final
shareholders meeting on Nov. 30, 2007, at 9:30 a.m., at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that
may be given by the liquidator;
-- determination by resolution the manner in which the
books, accounts and documents of the company and of the
liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
UNIDO INVESTMENTS: Proofs of Claim Filing Ends on Nov. 7
--------------------------------------------------------
Unido Investments Limited's creditors are given until
Nov. 7, 2007, to prove their claims to Robin J. Mayor, 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.
Unido Investments' shareholder agreed on Oct. 19, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
UNIDO INVESTMENTS: Sets Final Shareholders Meeting for Nov. 28
--------------------------------------------------------------
Unido Investments Limited will hold its final shareholders
meeting on Nov. 28, 2007, at 9:30 a.m., at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that
may be given by the liquidator;
-- determination by resolution the manner in which the
books, accounts and documents of the company and of the
liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
===========
B R A Z I L
===========
BANCO NACIONAL: Okays BRL197-Mln Loan to Companhia de Saneamento
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL197 million financing to Companhia de Saneamento
do Parana, aimed at the expansion and optimization of the water
supply and sanitary sewage systems in 28 municipalities of the
State.
The project, which contemplates a counterpart of the company of
BRL49.1 million, will contribute towards the improvement of the
quality of life and health of the population, with the reduction
of the incidence of sanitary diseases, besides benefiting more
than 500 thousand people. The civil construction works that are
part of the Growth Acceleration Program [PAC] will generate 263
new direct job posts in the company, and there is the projection
that more than 5,200 employment opportunities will be created
during the period of the actual constructions.
Sanepar is an open capital, mixed economy company, controlled by
the State of Parana. It is the holder of concessions to operate
water distribution, and sewage collection and treatment in 345
municipalities out of a total of 399 existent in Parana, and one
in the State of Santa Catarina. All the 345 municipalities
count on water services, while 146 of them also have sewage
services.
Operating for 44 years, it is one of the responsibles for having
Parana parade amongst the States with the best social indicators
of the Country, and presents one of the best geographical and
demographic coverage indexes among its congeners, highlighted as
one of those which yield greater earnings.
The project interventions will occur in the following
municipalities: Adrianopolis, Almirante Tamandare, Apucarana,
Arapongas, Arapoti, Assis Chateaubriand, Balsa Nova, Cambe,
Campo Largo, Cianorte, Curitiba, Foz do Iguacu, Francisco
Beltrao, Guarapuava, Guaratatuba, Loanda, Londrina, Mambore,
Mandaguari, Maringa, Missal, Paicandu, Palmas, Ponta Grossa, Rio
Negro, Rondon, Santo Antonio do Sudeste and Siqueira Campos.
Investments on water supply, which sum BRL75.5 million,
contemplate the following purposes:
-- the execution of six water impoundings in the Barigui
River, Verde River, and Guarani Aquifer,
-- five establishments of water mains and
-- the construction of seven reservoirs.
Two water pumping stations will be implemented, plus one sludge
recirculation pumping station, besides two full treatment
stations. The water producer system, with capacity for 1,440
m3/h, will be improved and will undergo re-adaptation.
As regards sanitary sewage, the investments will amount to
BRL170.6 million, and encompass pumping stations, building
connections, collector networks and interceptors, besides the
implementation of a wastewater treatment station and the
expansion of five that are already in place.
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.
BRASIL TELECOM: Mulls Joining Auctions for 3G Spectrum
------------------------------------------------------
Brasil Telecom's finance and investor relations vice president
Paulo Narcelio said in a conference call that the company has
not yet decided if it will participate in the auctions for 3G
spectrum to be awarded on Dec. 18, 2007.
Business News Americas relates that Brazilian telecoms regulator
Anatel published on Oct. 19, 2007, the bidding rules for the
auctions. The rules went on sale on Thursday. Anatel will
auction about 44 licenses in the 1900-megahertz and 2100-
megahertz bands, four for each of Brazil's 11 telecoms operating
areas. The government would get at least BRL2.8 billion from
all the licenses.
Mr. Narceliol told BNamericas that Brasil Telecom believes that
3G is very important when it comes to competition for the
market. However, the firm will decide at a later stage whether
or not to participate. The company hired a consultancy firm to
advise it on whether to participate in the auction process.
BNamericas notes that winning bidders will have to deploy at
least 2G cellular telephony in the 2,000 municipalities with
under 30,000 residents that still have no service by the end of
the second year.
Mr. Narcelio commented to BNamericas, "This will not be a
problem for us. We have an important presence in terms of
coverage in these localities."
The prices of 3G compatible mobile devices are dropping and not
far off those compatible with 2G technologies, BNamericas says,
citing Mr. Narcelio. The arrival of 3G won't require Brasil
Telecom to "invest a lot more than planned in the medium term."
Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA. The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intra-regional long-
distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.
* * *
To date, Brasil Telecom carries Moody's Investors Service's Ba1
senior unsecured and credit default swap ratings.
BR MALLS: S&P Assigns BB- Rating on Perpetual Notes
---------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB-' rating
to BR Malls International Finance Ltd.'s forthcoming perpetual
notes. It is a wholly owned subsidiary of Brazil-based shopping
mall company BR Malls Participacoes S.A.
(BR Malls; BB-/Stable/--). BR Malls and its direct subsidiaries
unconditionally guarantee the perpetual notes.
The rating on BR Malls and the bonds reflect the company's
ambitious growth plans, which are partly funded by incremental
debt leverage and result in a more aggressive financial profile.
They also reflect BR Malls' exposure to increasing competition
from other players in the sector, which are as well capitalized
as BR Malls and are competing to grow through acquisitions. The
ratings also indicate BR Malls' distinguished position in the
Brazilian shopping mall industry as the largest shopping mall
company in the country, asset diversification in different
regions and income segments, and its long track-record in
managing shopping malls. Moreover, the ratings factor in S&P's
expectations that the company will grow primarily by acquiring
established shopping malls rather than building new ones, which
allows the company to immediately benefit from observable, more
stable cash flows.
BR Malls Participacoes SA is an integrated Shopping Mall company
in Brazil. The company has stakes in 11 Shopping Centers, 10 of
them in operation and one under construction, totalizing 505,000
square meters of Gross Commercial Area and 396,900 square meters
of Gross Leaseable Area and approximate 2.2 thousand stores.
The company provides management, consulting and leasing services
for 37 Shopping Centers, Commercial and Business Centers,
totalizing 981,000 square meters of GCA, with approximate 4,100
stores. The company's portfolio of shopping centers has been
strategically diversified in its geographic positioning and in
its penetration of income segments. The company's principal
subsidiaries consist of ECISA Engenharia and ECISA
Participacoes, Egec, Dacom, Sisa, Egec Par and GS, Nattca, SPE
Indianapolis, Deico and other companies.
DELPHI CORP: Wins Court Approval for US$106 Mil. Interiors Sale
---------------------------------------------------------------
Delphi Corporation and its affiliates have obtained the U.S.
Bankruptcy Court of the Southern District of New York's approval
to sell their global Interiors and Closures businesses for
approximately US$106 million to a wholly owned subsidiary of The
Renco Group, Inc., barring a higher offer at an auction,
Bloomberg News reports.
The U.S. Bankruptcy Court-approved master sale and purchase
agreement contemplates a divestiture of Delphi's Interiors and
Closures Businesses to Inteva Products LLC, for a preliminary
purchase price of US$80 million, subject to certain adjustments,
and post-closing payments of approximately US$26 million.
The sale protocol outlined by Delphi contemplates an auction on
Dec. 6, 2007, with bids due Nov. 26, 2007. A final sale hearing
is anticipated to be set for Jan. 8, 2008. Inteva will receive
a break-up fee of not more than US$2.4 million in the event
Delphi consummates a sale transaction with another party. The
final sale of Delphi's Interiors and Closures business is
subject to the approval of the U.S. Bankruptcy Court and other
constituencies in the U.S. and abroad.
The master sale and purchase agreement involves the entire
global Interiors and Closures business line, including: book of
business, manufacturing operations, intellectual property,
personnel, supplier contracts and share of joint ventures.
Delphi's Interiors and Closures business operates manufacturing
facilities in:
-- Gadsden, Alabama
-- Cottondale, Alabama
-- North Kansas City, Missouri
-- Orion, Michigan
-- Adrian, Michigan
-- Woerth, Germany
-- Matamoros, Mexico
-- SDADS Joint Venture (Shanghai, China)
-- KDS Joint Venture (Daegu, Korea)
-- Other contracted manufacturing locations
About Delphi
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Mar. 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period expires on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan. (Delphi Bankruptcy News, Issue No. 88;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
EL PASO: Paying US$0.04 Per Share Quarterly Dividend on Jan. 7
--------------------------------------------------------------
The board of directors of El Paso Corporation has declared a
quarterly dividend of US$0.04 per share on the company's
outstanding common stock. The dividend will be payable
Jan. 7, 2008 to shareholders of record as of the close of
business on Dec. 7, 2007. Outstanding shares of common stock
entitled to receive dividends as of Sept. 30, 2007, were
702,026,833.
Headquartered in Houston, Texas, El Paso Corporation (NYSE: EP)
-- http://www.elpaso.com/-- is an energy company that provides
natural gas and related energy products. The company owns North
America's interstate pipeline system, which has approximately
55,500 miles of pipe. It also owns approximately 470 billion
cubic feet of storage capacity and a liquefied natural gas
import facility with 806 million cubic feet of daily base load
send out capacity. El Paso's exploration and production
business is focused on the exploration for and the acquisition,
development and production of natural gas, oil and natural gas
liquids in the United States, Brazil and Egypt. It operates in
three business segments: Pipelines, Exploration and Production
and Marketing. It also has a Power segment, which holds its
remaining interests in international power plants in Brazil,
Asia and Central America.
* * *
Moody's Investor Services placed El Paso Corporation's
probability default and long term corporate family ratings at
"Ba3" in March 2007, which still holds to date. Moody's said
the outlook is positive.
As reported in the Troubled Company Reporter-Latin America on
June 15, 2007, Fitch Ratings affirmed the ratings of El Paso
Corporation and its core pipeline subsidiaries, and assigned a
senior unsecured rating of 'BB+' to the company's proposed
offering of US$1.275 billion of senior unsecured notes due in
2014 and 2017. Fitch said the rating outlook is stable.
FIDELITY NAT'L: Board Okays Lender Processing Services Spin-Off
---------------------------------------------------------------
Fidelity National Information Services, Inc.'s Board of
Directors has approved pursuing a plan to spin-off its Lender
Processing Services division into a separate publicly traded
company.
As currently contemplated, the company will contribute the
assets of lender division into a newly formed subsidiary (Newco)
in exchange for 100% of Newco common stock and approximately
US$1.6 billion of Newco debt securities. Following receipt of
necessary Securities and Exchange Commission approvals and a
tax-free ruling from the Internal Revenue Service, FIS will
distribute 100% of Newco common stock to FIS shareholders in a
tax-free spin off. Immediately following the spin-off, FIS will
exchange the Newco debt securities it owns for a like amount of
existing FIS debt through a debt-for-debt exchange that is tax-
free to FIS. FIS would then retire the FIS debt that is
exchanged for the Newco debt securities. Completion of the
possible spin-off is expected to occur in mid-2008. Management
and directors of FIS and Newco have not yet been determined.
FIS' Transaction Processing Services business is a leading
global provider of core processing, e-payments, item processing
and card processing solutions to financial institutions. On a
pro forma basis, including the recently acquired eFunds,
Transaction Processing Services generated revenue of US$3.3
billion over the last 12 months. FIS' Lender Processing
Services business is the nation's leading provider of integrated
data, servicing and technology solutions to large-scale mortgage
lenders. Lender processing services' end-to-end mortgage
services include origination, automated title and settlement,
processing, default, valuation, risk management, tax, flood and
collateral protection solutions. More than 50 percent of
mortgage loans in the United States are processed using the
lender division's industry leading Mortgage Servicing Package.
Lender Processing Services generated US$1.7 billion in revenue
over the last 12 months.
"Transaction Processing Services and Lender Processing Services
each have strong competitive positions, robust organic growth
track records and excellent potential for future growth.
However, they are distinct and unique businesses that serve
different customers, operate in different markets, and attract
different investors," stated William P. Foley, II, executive
chairman of FIS. "We believe the proposed separation will
provide more company flexibility and dedicated management focus
with respect to product development, capital investment and
strategic initiatives, which should ultimately drive higher
value to our customers and shareholders."
FIS expects to file a ruling request with the IRS regarding the
tax-free nature of the lender division spin-off within
approximately 60 days and a preliminary Form 10 Registration
Statement with the SEC in the first quarter of 2008. Completion
of the spin-off is contingent upon the satisfaction or waiver of
a variety of conditions, including final FIS Board of Directors
approval.
About Fidelity National
Based in Jacksonville, Florida, Fidelity National Information
Services, Inc. -- http://www.fidelityinfoservices.com/--
provides core processing for financial institutions; card issuer
and transaction processing services; mortgage loan processing
and mortgage related information products; and outsourcing
services to financial institutions, retailers, mortgage lenders
and real estate professionals. FIS has processing and
technology relationships with 35 of the top 50 global banks,
including nine of the top ten. Nearly 50% of all US residential
mortgages are processed using FIS software. FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide, including
Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 26, 2007, Moody's Investors Service has confirmed the Ba1
corporate family rating for Fidelity National Information
Services, concluding a review for possible downgrade initiated
in June 2007. At the same time, Moody's has assigned a Ba1
rating to the company's US$900 million first lien senior secured
revolving credit facility, US$2.1 billion first lien senior
secured term loan A, and US$1.6 billion first lien senior
secured term loan B. In addition, Moody's upgraded Fidelity's
notes rating (Certegy notes due September 2008) to Ba1 from Ba2
as the notes will become equally and ratably secured upon
issuance of the US$1.6 billion term loan. Concurrently, Moody's
downgraded the company's speculative grade liquidity rating to
SGL-2 from SGL-1, due to reduced free cash flow as a result of
the additional debt associated with the current transaction.
Nevertheless, Moody's believes FIS maintains sufficient
liquidity overall. Moody's said the rating outlook is stable.
FIDELITY NATIONAL: Moody's Reviews Ratings for Likely Downgrade
---------------------------------------------------------------
Moody's Investors Service has placed the ratings of Fidelity
National Information Services on review for possible downgrade,
following the company's announcement that its Board has approved
pursuing a plan to spin off its Lender Processing Services
division into a separate publicly traded company. Completion of
the spin-off is contingent upon certain approvals, including FIS
final Board approval and a tax-free ruling from the Internal
Revenue Service. Completion of the possible spin-off is
expected to occur in mid-2008.
The review will focus on the debt allocation between the two
companies and their availability of internal and external
liquidity sources, if the separation is approved. The review
will also focus on business growth and diversification prospects
at the two companies, including the potential for further
acquisitions. The separation, were it to occur, would result in
less business diversification for FIS. Nevertheless, in the
event the separation occurs and financial leverage, as measured
by debt to EBITDA, remains consistent with current FIS leverage
pre-spin off, the corporate family rating of FIS would likely be
confirmed. The ratings of the individual FIS securities will
depend on the ultimate capital structure of the company post
spin-off. Moody's expects to conclude its review once FIS
obtains regulatory and Board approvals and its capital structure
has been finalized.
The potential separation plan, as currently contemplated, calls
for FIS to contribute the assets of Lender Processing Services
into a newly formed subsidiary (Newco) in exchange for 100% of
Newco common stock and approximately US$1.6 billion of Newco
debt securities. Following receipt of SEC approvals and a tax-
free ruling from the Internal Revenue Service, FIS will
distribute 100% of Newco common stock to FIS shareholders in a
tax-free spin off. Immediately following the spin-off, FIS will
exchange the Newco debt securities it owns for a like amount of
existing FIS debt through a debt-for-debt exchange that is tax-
free to FIS. The executive management and board composition of
FIS and Newco have not yet been determined.
FIS ratings on review for possible downgrade:
-- US$1.6 billion First Lien Senior Secured Term Loan B Ba1
-- US$2.1 billion First Lien Senior Secured Term Loan A Ba1
-- US$900 million First Lien Senior Revolving Credit Facility
Ba1
-- US$200 million 4.75% (Certegy) notes due September 2008 Ba1
-- Corporate Family Rating Ba1
Based in Jacksonville, Florida, Fidelity National Information
Services, Inc. -- http://www.fidelityinfoservices.com/--
provides core processing for financial institutions; card issuer
and transaction processing services; mortgage loan processing
and mortgage related information products; and outsourcing
services to financial institutions, retailers, mortgage lenders
and real estate professionals. FIS has processing and
technology relationships with 35 of the top 50 global banks,
including nine of the top ten. Nearly 50% of all US residential
mortgages are processed using FIS software. FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide, including
Brazil.
FIDELITY INT'L: S&P Puts BB Corp. Credit Rating on Watch Neg.
-------------------------------------------------------------
Standard & Poor's Ratings Services has placed its ratings,
including the 'BB' corporate credit rating, on Fidelity National
Information Services Inc. on CreditWatch with negative
implications.
The CreditWatch listing follows Fidelity National's announcement
that it plans to spin-off its lender processing division into a
separate, public company. Fidelity National will contribute the
unit's assets into a new subsidiary in exchange for all of its
common stock and about US$1.6 billion of debt securities.
Following regulatory approval, Fidelity National will distribute
all of the new company's common stock to Fidelity National
shareholders in a tax-free spin-off. Completion of the possible
spin-off is expected to occur in mid-2008.
The spin-off will reduce both business diversity and cash flow,
as the mortgage processing business accounted for about 40% of
consolidated EBITDA.
"We will review the financial terms and the company's capital
structure following the proposed transaction, and will evaluate
its business strategies, the sustainability of current operating
trends, and its financial policy, prior to resolving the
CreditWatch listing," said S&P's credit analyst Phil Schrank.
Based in Jacksonville, Florida, Fidelity National Information
Services, Inc. -- http://www.fidelityinfoservices.com/--
provides core processing for financial institutions; card issuer
and transaction processing services; mortgage loan processing
and mortgage related information products; and outsourcing
services to financial institutions, retailers, mortgage lenders
and real estate professionals. FIS has processing and
technology relationships with 35 of the top 50 global banks,
including nine of the top ten. Nearly 50% of all US residential
mortgages are processed using FIS software. FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide, including
Brazil.
LYONDELL CHEMICAL: Earns US$206 Million for Third Quarter 2007
--------------------------------------------------------------
Lyondell Chemical Company has announced income for the third
quarter 2007 of US$206 million, or 78 cents per share on a fully
diluted basis. For the first nine months of 2007, income from
continuing operations was US$483 million, or US$1.83 per share
on a fully diluted basis.
Third-quarter 2007 results from continuing operations declined
versus the second quarter 2007 primarily due to lower refining
segment results. Following a record second quarter, third-
quarter refining results remained good; however, industry
margins narrowed earlier than expected, ahead of the typical
Labor Day pattern. Ethylene segment results were relatively
unchanged as significant product price increases were only
sufficient to offset raw material cost increases, which finished
the quarter at record levels. In the propylene oxide segment,
both chemical and fuel product (MTBE/ETBE) results were
relatively unchanged versus the second quarter.
"Results across our ethylene and propylene oxide segments were
unchanged versus the second quarter as raw material cost
increases offset the benefits of product price increases," said
Dan F. Smith, chairman, president and Chief Executive Officer of
Lyondell Chemical. "Entering the quarter, we and many others in
the industry expected that crude oil and ethane costs would
plateau at then- current levels; however, they continued to
escalate. As a result, significant price increases were
required just to offset the cost increases, and margins did not
expand to levels that we believe reflect the supply/demand
balance. Refining results, while solid, reflected the fact that
industry spreads declined from very strong early-summer levels
earlier than usual. This occurred despite record low gasoline
and distillate inventories as measured by days of inventory."
"Unfortunately, crude oil and ethane prices have increased
steadily throughout the year, and a certain amount of time is
needed to pass increases of this magnitude through the chemical
and polymer markets. As a consequence, year-to-date results
have not fully reflected existing industry operating rates.
Despite these industry trends, we have generated strong
results."
Thus far in the fourth quarter, both crude oil and ethane price
increases have accelerated, setting new highs. Quarter to date,
our refining spreads are slightly less than the third-quarter
average as our heavy crude advantage has partially offset
declines in base refining margins. In the ethylene, co-
products and derivatives segment, record high raw material costs
are offsetting the benefit of recent price increases,
necessitating further pricing initiatives. In our propylene
oxide and related products segment, oxygenated fuel margins have
declined following typical seasonal patterns.
Cash Distributions and Debt Reduction
Equistar Chemicals, LP to Lyondell Chemical Company and
Millennium Chemicals Inc. -- There were no distributions during
the quarter.
Millennium to Lyondell Chemical Company (LCC) -- There were no
dividends paid by Millennium to LCC during the third quarter.
Debt Reduction -- During the third quarter, debt repayment,
including scheduled amortization of term loans, totaled US$512
million, all at LCC. LCC repaid the US$500 million of debt
called in July 2007.
Receivable Facilities Utilization -- As of Sept. 30, 2007,
Lyondell's receivable facility was unutilized and Equistar's
receivable facility was utilized by US$40 million.
About Lyondell Chemical
Headquartered in Houston, Texas, Lyondell Chemical Company
(NYSE: LYO) -- http://www.lyondell.com-- is North America's
third-largest independent, publicly traded chemical company.
Lyondell manufacturers basic chemicals and derivatives including
ethylene, propylene, titanium dioxide, styrene, polyethylene,
propylene oxide and acetyls. It also refines heavy, high-sulfur
crude oil and produces gasoline-blending components. It
operates on five continents and employs approximately 11,000
people worldwide.
The company also has locations in Austria, France, Italy, The
Netherlands, Belgium, Germany, Spain, United Kingdom, Brazil,
China, Japan, Taiwan, India and Singapore.
* * *
As reported on July 23, 2007, Moody's Investors Service placed
the ratings of Lyondell Chemical Company, Equistar Chemical
Company LP and Millennium Chemicals Inc. (Corporate Family
Ratings of Ba3) under review for possible downgrade following
the announcement that Lyondell has agreed to be acquired by
Basell AF SCA (Ba3 CFR under review for possible downgrade) in a
transaction worth roughly US$19 billion including the assumption
of debt.
Moody's also affirmed Lyondell's speculative grade liquidity
rating at SGL-1. However, the financing of this potential
transaction, could result in a change to the SGL rating as well.
On Jul 23, 2007, Fitch Ratings has placed Lyondell, Equistar and
Millennium on Rating Watch Negative following the announcement
that Lyondell has agreed to be acquired by Basell for US$12.66
billion, or US$48 per share. The transaction is valued at US$19
billion including the consolidated debt outstanding at Lyondell.
Fitch has placed these ratings on Rating Watch Negative:
Lyondell:
-- Issuer Default Rating 'BB-';
-- Senior secured credit facility and term loan 'BB+';
-- Senior secured notes 'BB+';
-- Senior unsecured notes 'BB-';
-- Debentures 'BB-'.
NAVISTAR INT'L: S&P Holds BB- Corp. Credit Rating Under WatchNeg
----------------------------------------------------------------
Standard & Poor's Ratings Services' BB- corporate credit ratings
on Navistar International Corp. and subsidiary Navistar
Financial Corp. remain on CreditWatch with negative
implications, where they were placed on Jan. 17, 2006. S&P
placed the ratings on CreditWatch due to delays in the company's
filing of audited financial statements.
The CreditWatch update follows a number of developments at
Navistar, notably:
A strike by the United Auto Workers at nine Navistar plants; the
company's announcement that it is in talks to acquire General
Motors Corp.'s (GM; B/Stable/B-3) medium-duty truck business;
and the company's release of preliminary unaudited restated
results for fiscal 2003-2005 and operating measures for its
fiscal third quarter ended July 31, 2007.
While Navistar carries out its restatement process and attempts
to address its internal control material weaknesses, S&P will
continue to monitor the company's liquidity and other
developments -- including the commercial truck downturn, UAW
strike, and potential GM acquisition -- and will evaluate their
impact on the ratings.
"We expect that the ratings will remain on CreditWatch until
Navistar is current with all SEC financial reporting
requirements," said S&P's credit analyst Gregg Lemos Stein. "We
expect to affirm the ratings once this occurs and if Navistar's
prospects are not materially different from expectations.
However, we could lower the ratings if new accounting issues
come to light that hurt Navistar's liquidity or differ from our
expectations, or if financial results deteriorate materially as
a result of an extended downturn in the commercial truck
market."
Based in Warrenville, Illinois, Navistar International Corp.
(NYSE:NAV) -- http://www.nav-international.com/-- is the parent
company of Navistar Financial Corp. and International Truck and
Engine Corp. The company produces International brand
commercial trucks, mid-range diesel engines and IC brand school
buses, Workhorse brand chassis for motor homes and step vans,
and is a private label designer and manufacturer of diesel
engines for the pickup truck, van and SUV market. The company
also provides truck and diesel engine parts and service sold
under the International brand. A wholly owned subsidiary offers
financing services. The company has operations in Brazil,
Iceland and India.
SANYO ELECTRIC: Settles Patent Dispute with 3M Co.
--------------------------------------------------
3M Co. has reached a settlement agreement with Sanyo Electric
Co., Ltd., regarding a patent for lithium ion battery
components, Marie Connor writes for the St. Paul Business
Journal.
According to Ms. Connor, 3M filed the suit against Sanyo and
other companies in March with the Minnesota District Court and
the United States International Trade Commission.
Among the terms of the settlement, writes Ms. Connor, is that
Japan-based Sanyo is licensed under 3M's patents covering
particular cathode materials. The financial terms of the deal
were not revealed.
Lithium ion batteries, notes Ms. Connor, are used and are a
preferred source of power in consumer electronics products such
as laptop computers, cell phones and portable electronic
devices.
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.
TECUMSEH PRODUCTS: Selling Train Operations to Platinum Equity
--------------------------------------------------------------
Tecumseh Products Company has signed an agreement to sell its
Engine & Power Train business operations to affiliates of
Platinum Equity LLC for US$51 million in cash, subject to
customary adjustments at closing.
The operations to be sold encompass Tecumseh's gasoline engine
and transmission manufacturing capabilities for snow throwers,
generators, and other lawn and garden, industrial, and
agricultural applications.
Locations affected include facilities in Grafton, Wisconsin,
Salem, Indiana, Dunlap, Tennessee, well as locations in the
United Kingdom and the Czech Republic.
TMT Motoco, the engine facility in Brazil that is currently
idled and undergoing a judicial restructuring, is not included
in this transaction.
Tecumseh will use the proceeds of the transaction to pay off the
remainder of the balance under its outstanding First Lien Credit
Agreement, effectively eliminating all of the company's domestic
debt.
"This agreement marks the achievement of another important step
in our ongoing efforts to re-focus on our core business
operations," Ed Buker, Tecumseh's president and chief executive
officer, said. "The complete elimination of our domestic debt
substantially strengthens our balance sheet, and enables the
Company to target our strategic initiatives on our Compressor
operations and improving our financial performance."
Completion of the transaction, which is subject to customary
closing conditions, is currently expected to occur during the
fourth quarter of 2007.
Rothschild Inc. served as financial advisor to Tecumseh.
About Tecumseh Products Company
Headquartered in Tecumseh, Michigan, Tecumseh Products Company
(Nasdaq: TECUA, TECUB) -- http://www.tecumseh.com/--
manufactures hermetic compressors for air conditioning and
refrigeration products, gasoline engines and power train
components for lawn and garden applications, submersible pumps,
and small electric motors. The company has offices in Italy,
United Kingdom, Brazil, France, and India.
In March of 2007, the company's Brazilian engine subsidiary, TMT
Motoco, was granted permission by the Brazilian courts to pursue
a judicial restructuring, similar to a U.S. filing for Chapter
11 bankruptcy protection. The TMT Motoco filing in
Brazil constituted an event of default with our domestic
lenders. On April 9, 2007, the company obtained amendments to
its First and Second Lien Credit Agreements that cured the
cross-default provisions triggered by the filing in Brazil.
===========================
C A Y M A N I S L A N D S
===========================
KIPPERS INT'L: Sets Final Shareholders Meeting for Nov. 2
---------------------------------------------------------
Kippers International Limited will hold its final shareholders
meeting on Nov. 2, 2007, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process of the company; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
David Dyer
P.O. Box 1984
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 949-8244
Fax: (345) 949-5223
KONDOR 2001-A: Will Hold Final Shareholders Meeting on Nov. 2
-------------------------------------------------------------
Kondor 2001-A Limited will hold its final shareholders meeting
on Nov. 2, 2007, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process of the company; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
David Dyer
P.O. Box 1984
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 949-8244
Fax: (345) 949-5223
KONDOR 2001-B: Sets Final Shareholders Meeting for Nov. 2
---------------------------------------------------------
Kondor 2001-B Limited will hold its final shareholders meeting
on Nov. 2, 2007, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process of the company; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
David Dyer
P.O. Box 1984
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 949-8244
Fax: (345) 949-5223
LONGMEADOW CDO: Will Hold Final Shareholders Meeting on Nov. 2
--------------------------------------------------------------
Longmeadow CDO Debt Fund I, Limited, will hold its final
shareholders meeting on Nov. 2, 2007, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process of the company; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
David Dyer
P.O. Box 1984
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 949-8244
Fax: (345) 949-5223
MITRA SEJATI: Holding Final Shareholders Meeting on Nov. 2
----------------------------------------------------------
Mitra Sejati International Ltd. will hold its final shareholders
meeting on Nov. 2, 2007, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process of the company; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
David Dyer
P.O. Box 1984
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 949-8244
Fax: (345) 949-5223
MONTANA FINANCE: Sets Final Shareholders Meeting for Nov. 2
-----------------------------------------------------------
Montana Finance Limited will hold its final shareholders meeting
on Nov. 2, 2007, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process of the company; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
David Dyer
P.O. Box 1984
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 949-8244
Fax: (345) 949-5223
NIPPON SHINPAN: Holding Final Shareholders Meeting on Nov. 2
------------------------------------------------------------
Nippon Shinpan Asset Funding Corporation will hold its final
shareholders meeting on Nov. 2, 2007, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process of the company; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
David Dyer
P.O. Box 1984
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 949-8244
Fax: (345) 949-5223
OCTAGON INVESTMENT: Will Hold Last Shareholders Meeting Nov. 2
--------------------------------------------------------------
Octagon Investment Partners III Ltd. will hold its final
shareholders meeting on Nov. 2, 2007, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process of the company; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
David Dyer
P.O. Box 1984
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 949-8244
Fax: (345) 949-5223
OSCAR FUNDING: Sets Final Shareholders Meeting for Nov. 2
---------------------------------------------------------
Oscar Funding Corp. XI will hold its final shareholders meeting
on Nov. 2, 2007, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process of the company; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
The liquidator can be reached at:
David Dyer
P.O. Box 1984
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 949-8244
Fax: (345) 949-5223
=========
C H I L E
=========
AES GENER: Earns CLP32.0 Billion in First Nine Months
-----------------------------------------------------
AES Gener said in a statement that its net profit decreased 43%
to CLP32.0 billion in the first nine months of 2007, compared to
the same period in 2006.
Business News Americas relates that AES Gener's operating profit
dropped 26% to CLP65.7 billion in the first nine months of 2007,
compared to the same period last year. Its Ebitda declined 26%
to CLP109 billion.
According to AES Gener's statement, Argentine natural gas
restrictions were the main cause for the profit decline as both
fuel and prices for power on the spot market rose substantially.
AES Gener's Colombian operations underwent unusually dry
hydrology as well as a raise in the nation's yearly equity tax,
BNamericas notes. Meanwhile, Colombian reductions were
partially offset by higher power sales revenue.
AES Gener said in a statement that the boost in Chilean node
prices for power made a positive contribution to earnings.
AES Gener units provided 22% of the power generated in Chile's
central SIC grid and 26% of the power generated in the northern
SING, BNamericas states.
AES Gener is the second-largest electricity generation group in
Chile in terms of generating capacity (20% market share) with an
installed capacity of 2,428 megawatts. Gener serves both the
Central Interconnected System or SIC and the Northern
Interconnected System or SING through various subsidiaries and
related companies, including affiliate Guacolda and the
TermoAndes subsidiary. TermoAndes has a generation capacity of
642.8 megawatts, which while located in Argentina serves Chile's
SING via InterAndes transmission line. Gener also participates
in electricity generation in Colombia through Chivor
hydroelectric plant of 1,000 megawatts, and a 25% participation
in Itabo's facilities in the Dominican Republic (432.5
megawatts). Gener is 91.2% owned by AES (IDR rated 'B+' by
Fitch).
* * *
To date, AES Gener carries Moody's Ba2 long-term foreign bank
deposit rating with a stable outlook. The firm also carries
Standard & Poor's BB+ long-term foreign issuer credit rating
with a positive outlook.
INGRAM MICRO: Reports US$8.61 Bil. Third Quarter Worldwide Sales
----------------------------------------------------------------
Ingram Micro Inc. has announced worldwide sales for the third
quarter were US$8.61 billion, a 15% increase over the US$7.51
billion posted in the year-ago period and an all-time record for
the third quarter of 2007, which ended Sept. 29, 2007.
The translation impact of the relatively stronger foreign
currencies had an approximate five percentage-point positive
effect on comparisons to the prior year.
Third-quarter net income increased 24 percent to US$72.4
million, or US$0.41 per diluted share, compared with US$58.5
million, or US$0.34 per diluted share, in the prior-year period.
"We're pleased to deliver another record-breaking quarter," said
Gregory M. Spierkel, chief executive officer, Ingram Micro Inc.
"Our record sales were driven primarily by robust growth in
Asia-Pacific and Europe. Both regions achieved third-quarter
records in sales and operating income. In Asia-Pacific, strong
economies and our proactive business improvements helped us
generate 81-percent operating income growth on a 36-percent
sales increase. European demand was firm throughout the
quarter, fueled by a strong back-to- school season in many
countries. North America and Latin America operations both
posted meaningful revenue growth, consistent with investments in
expansion initiatives. Our global portfolio of operations
continues to drive financial performance, allowing us to exceed
our guidance range and analysts' estimates for sales and
earnings per share."
Gross Margin
Gross margin in the 2007 third quarter was 5.52 percent, an
increase of 12 basis points versus the prior-year quarter,
driven primarily by the positive impact from the net reporting
of warranty contract sales discussed previously. Sequentially,
gross margin improved 11 basis points versus the second quarter
of 2007.
Operating Expenses
Total operating expenses were US$364.0 million, or 4.23 percent
of revenues, versus US$311.9 million, or 4.15 percent of
revenues, in the year-ago quarter. In the current quarter, the
net reporting of warranty sales, as described above, had an
unfavorable impact on operating expenses as a percentage of
revenues of approximately seven basis points.
Operating Income
Worldwide operating income was US$111.0 million, or 1.29 percent
of revenues, as compared to US$93.8 million or 1.25 percent of
revenues in the year-ago quarter.
-- North American operating income was US$55.4 million, or
1.58 percent of revenues, versus US$55.3 million, or 1.64
percent of revenues, in the year-ago quarter.
-- EMEA operating income was US$29.0 million, or 1.01 percent
of revenues, versus US$23.6 million, or 0.97 percent of
revenues, in the year-ago quarter.
-- Asia-Pacific operating income was US$30.6 million, or 1.65
percent of revenues, versus US$16.9 million, or 1.24
percent of revenues, in the year-ago quarter.
-- Latin American operating income was US$4.4 million, or 1.15
percent of revenues, versus US$4.6 million, or 1.31 percent
of revenues in the year-ago quarter.
-- Stock-based compensation expense, which amounted to US$8.4
million in the current quarter and US$6.5 million in the
prior-year quarter, is presented as a separate reconciling
amount in the company's segment reporting in both periods.
As such, these expenses are not included in the regional
operating results, but are included in the worldwide
operating results.
Balance Sheet
* The cash balance at the end of the quarter was US$580
million, an increase of US$246 million versus the end of
2006. Total debt was US$625 million, an increase of US$115
million from year-end. Debt-to-capitalization was 16
percent, compared with 15 percent at year-end.
* Inventory was US$2.73 billion or 30 days on hand compared
with US$2.68 billion or 29 days on hand at the end of the
year. The increase in inventory days was due to product
purchases as the company prepares for the seasonally active
fourth quarter, as well as the impact on revenue and cost
of sales from the reclassification of warranty sales, as
described above.
* Working capital days were 24, an increase of 2 days from
year-end 2006, but flat sequentially.
"We've made excellent progress toward developing four
profitable, solidly performing businesses throughout the world,"
said William D. Humes, executive vice president and chief
financial officer, Ingram Micro Inc. "Looking forward, our
focus is on further improvement. We haven't yet fully leveraged
some of our diversification efforts and infrastructure
investments. Working capital increased in preparation for a
seasonally stronger fourth quarter and from a greater mix of
retail business from our consumer electronic initiatives. While
we're pleased with our double-digit growth in sales and profits,
we are intently focused on opportunities to enhance our results
-- both in our core business and through expansion -- which will
drive even greater strength in the future."
Nine-Month Period
For the nine months ended Sept. 29, 2007, worldwide sales were
US$25.04 billion, an 11 percent increase over the US$22.50
billion reported a year ago. Regional sales were US$10.09
billion for North America (a 2 percent increase versus the
prior-year period, with the warranty reclassification
unfavorably impacting comparisons by four percentage points);
US$8.69 billion for Europe, (an increase of 16 percent, to which
the translation impact of stronger European currencies had an
approximate nine percentage-point positive effect on comparisons
to the prior year); US$5.19 billion for Asia-Pacific (an
increase of 29 percent); and US$1.07 billion for Latin America
(an increase of 3 percent).
Worldwide operating income for the nine-month period was
US$270.4 million, or 1.08 percent of revenues, which included
the previously disclosed first- quarter charge of approximately
US$33.8 million (approximately 0.13 percent of revenues) for
Brazilian commercial taxes and a second-quarter charge of US$15
million (approximately 0.06 percent of revenues) for an SEC-
related matter. In the year-ago period, operating income was
US$280.8 million, or 1.25 percent of revenues.
Nine-month net income was US$161.8 million, or US$0.92 per
diluted share, which included the first-quarter charge for
commercial taxes in Brazil of US$33.8 million after tax or
US$0.19 per diluted share and the second-quarter charge for the
SEC matter of US$9.2 million after tax or US$0.05 per diluted
share. These charges totaled US$43.0 million after tax or
US$0.24 per diluted share for the nine-month period. In the
year-ago period, net income was US$174.0 million, or US$1.03 per
diluted share.
Outlook for the Fourth Quarter
The following statements are based on the company's current
expectations and internal forecasts. These statements are
forward-looking and actual results may differ materially, as
outlined in the company's periodic filings with the Securities
and Exchange Commission.
According to the company's guidance for the fourth quarter
ending Dec. 29, 2007:
* Sales are expected to range from US$9.70 billion to US$9.95
billion.
* Net income is expected to range from US$103 million to
US$108 million, or US$0.58 to US$0.61 per diluted share.
* The weighted average shares outstanding is expected to be
approximately 178 million and an effective tax rate of
approximately 27% is estimated for the fourth quarter.
"Fourth-quarter sales are expected to reach the highest
quarterly levels in company history," said Mr. Spierkel. "We
expect solid top-line growth in every region, with worldwide net
income growth of up to 18 percent compared to the year-ago
period. Sales in Asia-Pacific and Europe should remain robust,
with more modest growth in the Americas. Technology deployment
continues to be a key business enabler, particularly in the
small to medium business markets we serve. We feel good about
our ability to tap that demand throughout the world, and we plan
to stay ahead of the market through innovation, diversification
and continuous improvement."
About Ingram Micro Inc.
Headquartered in Santa Ana, California, Ingram Micro Inc. (NYSE:
IM) -- http://www.ingrammicro.com/-- together with its
subsidiaries, distributes information technology products and
supply chain solutions worldwide. Its IT products include
peripherals, networking, software, and systems. The company has
Latin America operations in Brazil, Chile and Mexico.
* * *
Ingram Micro Inc. continues to carry Moody's Ba1 long-term
corporate family and probability-of-default ratings.
METHANEX CORP: Earns US$23.61 Mil. in Third Qtr. Ended Sept. 30
---------------------------------------------------------------
For the third quarter of 2007, Methanex Corp. realized net
income of US$23.61 million, as compared with a net income of
US$113.23 million for the third quarter of 2006. Revenues for
the third quarter ended Sept. 30, 2007, and 2006, were US$395.11
million and US$519.58 million, respectively. For the third
quarter of 2007, realized adjusted EBITDA of US$68.6 million, as
compared with Adjusted EBITDA of US$76.5 million for the second
quarter of 2007.
As of Sept. 30, 2007, the company's balance sheet showed total
assets of US$2.46 billion total liabilities of US$1.25 billion
and total stockholders' equity of US$1.21 billion.
Bruce Aitken, president and chief executive officer of Methanex,
commented, "With lower production and a slightly lower methanol
price environment, we realized similar Adjusted EBITDA in the
third quarter compared to the second quarter. Prices have
recently increased significantly. A large number of outages in
the industry during the quarter, including our own facility in
Chile, combined with continuing strong demand, caused a severe
shortage of methanol to occur near the end of the quarter.
Contract methanol prices have risen sharply in October and our
average non-discounted prices for October are approximately
US$550/tonne."
Mr. Aitken continued, "Our biggest area of disappointment during
the quarter was the continued curtailment of Argentinean natural
gas supply to our plants in Chile. Our expectation was that
natural gas supply from Argentina would be restored during the
third quarter as cold winter conditions ended and gas demand in
Argentina was reduced; however, this has not yet occurred and we
continue to be limited to operating only one plant in Chile. We
are in continuing discussions with our Argentinean natural gas
suppliers and various governmental authorities to resolve the
situation, and continue to be optimistic that we will have some
natural gas supply restored from Argentina which will enable us
to increase production in Chile and provide much needed product
to the market."
Mr. Aitken added, "Developments regarding incremental natural
gas supply from Chile have been positive. Our natural gas
suppliers in Chile, ENAP and GeoPark, have recently increased
natural gas deliveries to our plant and both have announced
commercial discoveries of natural gas near our plants as a
result of their ongoing exploration activities. In addition,
the Chilean government just announced that it has received
fourteen bids for nine natural gas exploration blocks near our
plants and that the blocks will be awarded in mid-November."
Mr. Aitken concluded, "With US$132 million in cash flow from
operations after changes non-cash working capital generated
during the third quarter, we continue to be in a very strong
financial position to meet the financial requirements related to
our methanol project in Egypt, pursue opportunities to
accelerate natural gas development in southern Chile, pursue
other strategic growth initiatives, and continue to deliver on
our commitment to return excess cash to shareholders."
Liquidity and Capital Resources
Cash flows from operating activities before changes in non-cash
working capital in the third quarter of 2007 were US$60 million
compared with US$162 million for the same period in 2006. This
decrease was primarily due to lower earnings. During the third
quarter of 2007, our non-cash working capital decreased and this
increased its cash flow from operating activities by US$73
million. The decrease in its non-cash working capital was
primarily due to lower inventory levels and lower trade
receivables.
At Oct. 24, 2007, the company had 99,167,479 common shares
issued and outstanding and stock options exercisable for
1,057,891 additional common shares.
During the third quarter of 2007, the company repurchased for
cancellation a total of 1.7 million common shares at an average
price of US$24.02 per share, totaling US$41 million, under a
normal course issuer bid that expires May 16, 2008. At
Sept. 30, 2007, the company has repurchased a total of 2.9
million common shares of the maximum allowable under this bid of
8.7 million common shares.
During the third quarter of 2007 the company paid a quarterly
dividend of US$0.14 per share, or US$14 million.
About Methanex
Vancouver-based Methanex Corp. (Toronto: MX) (NASDAQGM: MEOH) --
http://www.methanex.com/-- produces and markets methanol
worldwide. The company's stock also trate on foreign securities
market of the Santiago Stock Exchange in Chile under the trading
symbol "Methanex". The company has locations in Belgium, Chile,
China, Japan, Trinidad and the United Kingdom, among others.
* * *
Moody's Investor Services' credit ratings for the company's
unsecured notes at Sept. 30, 2007, is Ba1. Moody's said the
outlook is stable.
===============
C O L O M B I A
===============
CUMMINS INC: 2007 Third Quarter Net Income Rises to US$184 Mil.
---------------------------------------------------------------
Cummins Inc. reported record revenues and higher earnings for
the third quarter, led by quarterly best sales in three of its
four business segments.
Sales grew 20% to US$3.37 billion, from US$2.81 billion during
the same period in 2006, eclipsing the company's previous high
mark set in the second quarter of 2007. Net income for the
third quarter increased 7.6 percent to US$184 million from
US$171 million in the third quarter last year.
Earnings Before Interest and Taxes rose 3.4% to US$306 million,
or 9.1% of sales, from US$296 million, or 10.5% of sales, in the
same period in 2006. Earnings growth was moderated by a
downturn at some OEM customers, and the expected higher costs
associated with the introduction of new emissions-related
products.
"We continue to experience significant growth in most of our
markets around the world, and are well-positioned to take
advantage of many opportunities for future growth," said Cummins
Chairman and Chief Executive Officer Tim Solso. "Our technology
leadership has resulted in a sustainable competitive advantage
for Cummins, and we remain focused on producing profitable
growth for all our stakeholders."
In the Company's Engine business, gains in many markets - most
notably in the light-duty automotive, medium-duty truck,
construction and mining markets - propelled the segment to a 17%
sales increase compared to the same period last year. That
increase came despite continued weakness in the North America
heavy-duty truck engine market related to emission regulation
changes. The industry forecast for trucks in that market is now
approximately 180,000 units for the full year 2007, down almost
50% from 2006.
Even though this market is down significantly from the prior
year, the company continues to gain market share, reflecting
customer preference for Cummins' emissions-compliant products.
Through August, the company held a market-leading 36% share of
the North America Class 8 truck engine market, compared to 27%
at the end of 2006.
The company's Power Generation business reported record sales of
US$776 million in the quarter, a 24% increase from the third
quarter of 2006, and saw Segment EBIT jump 46% over the same
period, on strong volumes and improved pricing.
The Distribution Business reported record sales and Segment EBIT
in the third quarter, with sales increasing 14% to US$395
million and Segment EBIT growing 21% from the third quarter of
2006.
The Components segment -- which includes the filtration, exhaust
aftertreatment, turbocharger and fuel systems businesses -
reported significantly improved profitability and higher sales
compared to the third quarter of 2006. Segment sales increased
31% from 2006, while segment EBIT increased 79% over last year.
Gross margins for the segment were affected by the costs
associated with the introduction of new emissions-compliant
products, but emphasis on cost reduction across the segment
resulted in stronger EBIT performance.
The company's strong performance and improved working capital
management resulted in increased cash flow from operations in
the third quarter, compared to both the previous quarter and the
same period in 2006. Cummins purchased 1.5 million shares of
its common stock at a cost of US$174 million as part of the
stock repurchase program authorized by the Company in July 2006.
Cummins also continued to invest in growth opportunities during
the third quarter and expects to spend US$320 million to US$340
million on capital projects in 2007.
The company shared its growth message and financial targets at a
conference for financial analysts in September at the company's
Jamestown (N.Y.) Engine Plant. During that conference, the
company outlined its plans to achieve continued profitable
growth over the next several years, with an overall revenue
growth target of 12& and EBIT target of 10% of sales.
The company also expects to spend US$2.5 billion on capital
expenditures in the next five years to meet the demand for
current and future products, and with its partners, invest
another US$1 billion into growing joint venture operations
around the world.
Also, this month J.D. Power and Associates gave Cummins its
highest award for customer satisfaction in the vocational truck
engine category. The Cummins ISX and ISM heavy-duty engines,
manufactured at the Jamestown Engine Plant, comprise almost all
the Cummins models in this market segment.
Third Quarter Details
Engine Segment
Sales rose 17% to a record US$2.15 billion. Segment EBIT of
US$155 million, or 7.2% of sales, was 15% lower than US$183
million (9.9% of sales) for the same period in 2006. Segment
EBIT was negatively affected by higher material costs and
warranty costs for new emissions-compliant engines.
Shipments to the light-duty automotive markets grew 38% for the
quarter, while global medium-duty truck engines shipments
increased 23%. Joint venture income related to engine sales
also increased, due to strength at Dongfeng Cummins Engine Co.
in China.
Power Generation Segment
The segment continued its extremely strong performance in the
third quarter, with sales increasing 24% from a year ago to a
record US$776 million. Segment EBIT rose 46% to US$83 million,
or 10.7% of sales, compared to US$57 million, or 9.1% of sales.
Sales in the Company's Commercial business - the segment's
largest - rose 34%, with North America, Latin America and Europe
driving the growth. Alternator sales grew 40%, led by sales in
Europe, China and India. The company's consumer business grew
by 10%, driven by strength in portable generator sets to
international markets and gains in marine and commercial mobile
sales.
Distribution Segment
Sales increased 14% from the same period in 2006 to US$395
million. Segment EBIT of US$46 million, or 11.6% of sales, was
a quarterly record and a 21.1% increase from US$38 million, or
11% of sales, for the same period in 2006. Power generation
sales in the Middle East, engine and parts sales in Europe and
strong growth at the Company's North American distributor joint
ventures were key drivers of the business' performance in the
quarter.
Components Segment
Sales grew 31% from the same period in 2006 to US$741 million,
with Turbo Technologies increasing 46%, Emission Solutions
increasing 220% and Filtration reporting an 8% increase in
sales, compared to the third quarter of 2006.
Segment EBIT rose 79% to US$34 million, or 4.6% of
sales, compared to US$19 million, or 3.4% of sales last year.
About Cummins
Headquartered in Columbus, Indiana, Cummins Inc. (NYSE: CMI)
-- http://www.cummins.com/-- designs, manufactures, distributes
and services engines and related technologies, including fuel
systems, controls, air handling, filtration, emission solutions
and electrical power generation systems.
Cummins has Latin-American operations, particularly in
Venezuela, Brazil, Peru, Colombia, and Argentina. Its
operations in the Asia-Pacific are found in China, Japan and
Korea. Its also has facilities in Europe, particularly in the
United Kingdom.
* * *
Cummins' Junior Convertible Subordinated Debentures carry
Fitch's 'BB' rating with a stable outlook.
Moody's Investors Service raised Cummins' convertible preferred
stock rating to Ba1 from Ba2 and withdrew the company's SGL-1
Speculative Grade Liquidity rating and its Ba1 Corporate Family
Rating.
===================
C O S T A R I C A
===================
SAMSONITE CORP: Closes US$1.7 Billion CVC Capital Merger Deal
--------------------------------------------------------------
Samsonite Corporation has completed its merger with an affiliate
of funds managed and advised by CVC Capital Partners, a global
private equity firm.
On July 5, 2007, an affiliate of funds managed and advised by
CVC entered into a merger agreement with Samsonite to acquire
Samsonite for a transaction value of approximately US$1.7
billion. Under the terms of the agreement, Samsonite's
stockholders are entitled to receive US$1.49 in cash,
without interest, for each share of Samsonite's common stock.
The transaction was unanimously approved by the Board of
Directors of Samsonite. Entities controlled by Ares Management
LLC, Bain Capital Partners, LLC and Teachers' Private Capital,
the private investment arm of Ontario Teachers' Pension Plan,
who collectively own approximately 85% of Samsonite's common
stock, approved the transaction pursuant to a written
consent and voting agreement with CVC.
As a result of the transaction, Samsonite's common stock will
cease to be quoted or traded on Nasdaq's Over The Counter
Bulletin Board or other over-the-counter markets.
Samsonite's stockholders who hold shares of Samsonite's common
stock through a bank or broker will not have to take any action
to have their shares converted into cash, since these
conversions will be handled by the bank or broker. As soon as
practicable, Computershare Inc., the paying agent appointed for
the transaction, will send information to all Samsonite
stockholders of record, explaining how they can surrender their
shares of Samsonite's common stock in exchange for US$1.49 per
share in cash, without interest. Stockholders of record should
wait to receive this information before surrendering their
shares.
Marcello Bottoli, Chief Executive Officer of Samsonite, said:
"I am excited to continue Samsonite's successful journey to
create the world's leading travel lifestyle brand together with
CVC Capital Partners."
Hardy McLain and Luigi Lanari of CVC stated, "CVC Capital
Partners is very pleased to have completed the acquisition of
Samsonite, the world's leading travel lifestyle brand. We look
forward to working with Marcello Bottoli and his team to realize
the full potential of the business."
About CVC Capital Partners
CVC Capital Partners is a leading global private equity and
investment advisory firm founded in 1981, with a network of 18
Offices and 175 employees throughout Europe, Asia and the United
States. CVC is currently investing from CVC Fund IV, CVC Asia
II and CVC Tandem Fund with an aggregate of US$15bn in equity
capital. The CVC team's local knowledge and extensive contacts
underpin a 26-year proven track record of investment success.
CVC has the ability to bring an enormous amount of cross-border
resource together quickly to focus on winning transactions. The
current European portfolio totals 38 investments and includes:
Formula One, the world's leading motorsport rights management
business; AA/Saga, a leading affinity brand business; Cortefiel,
one of the largest specialized clothing retailers in Spain;
Debenhams, Britain's leading department store group; and Seat
Pagine Gialle, the leading directories business in Italy. The
current Asian portfolio totals 14 investments and includes PBL
Media, Australia's largest diversified media group (including
Channel Nine and NineMSN) and DCA, Australia's leading
healthcare company.
About Samsonite
Samsonite is a leading manufacturer, marketer and distributor of
luggage and travel-related products. The company's owned and
licensed brands, which include Samsonite, American Tourister,
Sammies, Lacoste and Timberland, are sold globally through
external retailers and 284 company-owned stores. Net sales for
the 12-month period ended Apr. 30, 2007, approached USUS$1.1
billion. Executive offices are located in London, England.
The company has global locations in Aruba, Australia, Costa
Rica, Indonesia, India, Japan, and the United States among
others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 9, 2007, Standard & Poor's Ratings Services' ratings on
luggage manufacturer Samsonite Corp., including the 'BB-'
corporate credit rating, would remain on CreditWatch with
negative implications, pending completion of the company's
acquisition by CVC Capital Partners, which is expected to close
in the fourth quarter of calendar 2007. Samsonite had reported
debt outstanding of about US$553 million at July 31, 2007.
US AIRWAYS: Pilots Picket at Philadelphia International Airport
---------------------------------------------------------------
Shortly after US Airways Group Inc. management disclosed the
airline's seventh consecutive profitable quarter, US Airways
East pilots conducted informational picketing at the
Philadelphia International Airport and expressed their
frustration with management's refusal to adjust their
bankruptcy-era wages to the level of US Airways West pilots.
Both pilot groups are represented by the Air Line Pilots
Association, Intl.
US Airways East pilots each committed, on average, US$1 million
-- including the total loss of their pension -- to US Airways'
successful restructuring, which has paved the way to the
company's profitability. These pilots continue to work under a
contract negotiated during bankruptcy that pays them less than
pilots at every other major airline and gives management the
power to schedule them to work more hours and days, resulting in
fatigue.
"Our pilots are outraged that US Airways CEO Doug Parker, who
just reported a third quarter net profit of US$177 million, is
still side-stepping the pay parity issue two years after US
Airways and America West merged. He publicly touts a parity
offer he made that will tie seniority integration issues to
parity, which he knows would never be acceptable to union
leaders or ratifiable by the rank and file pilots. In addition,
along with lucrative management compensation, the entire US
Airways workforce is benefiting from 'profit sharing' that is
partly being subsidized by the US Airways East pilots being paid
the lowest pilot wages of any major airline. The result of this
work environment is an unmotivated pilot group and an airline
with the industry's worst consumer rating. How long can we
continue like this?" said US Airways Master Executive Council
Chairman Jack Stephan.
More than two years after US Airways and America West Airlines
merged, US Airways is still struggling to combine its labor
workforce. Management insists that this issue does not affect
its operations; however, since the merger, US Airways
consistently ranks near the bottom in customer service
rankings and in on-time statistics, a sobering change from the
airline's top rankings just a few short years ago.
"Even management has acknowledged that you can't run a bad
operation for a long period of time," said Captain Stephan.
"Our pilots want to restore the once-proud reputation of our
company, but we need management to recognize that there are more
ways to produce profits than to squeeze and hold every available
nickel from its employees."
About US Airways
Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) -
http://www.usairways.com/-- primary business activity is the
ownership of the common stock of US Airways, Inc., Allegheny
Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc.,
MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc.,
Material Services Company, Inc., and Airways Assurance Limited,
LLC.
US Airways has operations in Japan, Australia, China, Costa
Rica, Philippines, and Spain, among others.
Under a Chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for US$240 million infusion of new capital.
US Airways and its subsidiaries filed another chapter 11
petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820).
Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J.
Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken,
Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent
the Debtors in their restructuring efforts. In the Company's
second bankruptcy filing, it lists US$8,805,972,000 in total
assets and US$8,702,437,000 in total debts.
The Debtors' Chapter 11 plan for its second bankruptcy filing
became effective on Sept. 27, 2005. The Debtors completed their
merger with America West on the same date.
* * *
US Airways Group Inc.'s US$1.6 billion secured credit facility
due 2014, currently being syndicated, carries Standard & Poor's
Ratings Services 'B' rating. That rating was assigned in March
2007.
* COSTA RICA: IDB OKs US$500MM Conditional Credit Line to ICE
-------------------------------------------------------------
The Inter-American Development Bank said in a statement that it
has authorized a US$500-million conditional credit line to
support Costa Rican state-run power firm Instituto Costarricense
de Electricidad's 2008-2014 investment program.
Costa Rica, with demand expected to increase at 5.4% per year,
will have to double its generation capacity every 15 years,
according to the IDB's statement. Instituto Costarricense will
have to invest about US$4 billion in generation, transmission
and distribution over the next eight years.
Business News Americas relates that Instituto Costarricense will
use the funding to conduct preliminary studies for:
-- new hydro and geothermal generation projects,
-- Rao Macho hydro plant upgrade, and
-- a program to dredge and restore the reservoirs of
six hydro plants.
The report says that funds will also be used to boost
transmission and support the Central American regional power
market like:
-- 230kV circuit construction,
-- transformer and substation upgrades,
-- metering equipment acquisition, and
-- Instituto Costarricense's energy control center.
The program will strengthen the urban power grid, adding 600
kilometers to the rural distribution grid. Instituto
Costarricense will buy photovoltaic equipment to serve isolated
communities and energy-efficiency initiatives undertaken,
BNamericas states. Local counterpart funds for the investments
would be US$120 million.
* * *
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.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO INTERCONTINENTAL: R. Camilo Says Court Ruling Complacent
--------------------------------------------------------------
The ruling of the Dominican Republic's National District Court
in the Banco Intercontinental fraud case were "complacent,"
Dominican Today reports, citing banks superintendent Rafael
Camilo.
Mr. Camilo said in a statement that it was "inadmissible" the
fact that former Banco Intercontinental head Ramon Baez Figueroa
was cleared of money-laundering and breach of trust charges,
while financier Luis Alvarez Renta was convicted of the same
accusation.
Dominican Today relates that Mr. Camilo denied accusations that
the practices in Banco Intercontinental also occurred in other
failed banks.
"Only in Baninter [Banco Intercontinental] practices such as
double accounting took place, by means of which the registry of
information around illegal operations was hidden such as the
purchase of media with money from that banking organization,"
Mr. Camilo commented to Dominican Today.
Located in Dominican Republic, Banco Intercontinental aka
Baninter collapsed in 2003 as a result of a massive fraud and a
resulting deficit of US$2.2 billion. As a consequence, all of
its branches were closed. The bank's current and savings
accounts holders were transferred to the bank's new owner --
Scotiabank. The bankruptcy of Baninter was considered the
largest in world history, in relation to the Dominican
Republic's Gross Domestic Product. The resulting deficit was
equal to 12% to 15% of the country's national GDP. It costs
Dominican taxpayers DOP55 billion and resulted to the country's
worst economic crisis.
BANCREDITO: Rafael Camilo Says Court Ruling Complacent
------------------------------------------------------
The ruling of the Dominican Republic's National District Court
in the Bancredito fraud case were "complacent," Dominican Today
reports, citing banks superintendent Rafael Camilo.
The Bancredito ruling was more complacent compared to that of
Banco Intercontinental. Judge Alina Mora "committed the error
of considering that the case on which Manuel Arturo Pellerano
and Juan Felipe Mendoza Gomez were sentenced to three years,
justified dropping the charges filed by the state for the 23
billion peso fraud it was subjected to, when in fact it's two
different cases."
Dominican Today relates that Mr. Camilo also warned that Marino
Vinicio Castillo, the presidency's adviser on drug topics, must
stop running rumors on Scotiabank and another Dominican bank,
"as the Monetary and Financial Law establishes penalties against
that practice."
The financial system now has the credibility and confidence it
never had due to efforts to ensure Dominicans will no longer be
in the run on banks that led to the worst economy crisis in the
Dominican Republic, Dominican Today states, citing Mr. Camilo.
Bancredito is a subsidiary of Banco Intercontinental, which
collapsed in 2003 as a result of massive fraud that drained it
of about US$657 million. As a consequence, all of its branches
were closed. The bank's current and savings accounts holders
were transferred to the bank's new owner -- Scotiabank. The
bankruptcy of Baninter was considered the largest in world
history, in relation to the Dominican Republic's Gross Domestic
Product. The resulting deficit was equal to 12% to 15% of the
country's national GDP. It costs Dominican taxpayers DOP55
billion and resulted to the country's worst economic crisis.
SERVICEMASTER CO: S&P Affirms 'B+' Rating on US$2.65-Bil. Loan
--------------------------------------------------------------
Standard & Poor's affirmed its 'B+' bank loan rating on Memphis,
Tennessee-based The ServiceMaster Co.'s US$2.65 billion term
loan. The rating was removed from CreditWatch, where it was
originally placed with developing implications on Aug. 3, 2007,
following the company's execution of an amendment to its new
US$3.3 billion senior secured credit agreement. The facility is
rated one notch above the corporate credit rating on
ServiceMaster, with a recovery rating of '2', indicating the
expectation for substantial (70%-90%) recovery in the event of a
payment default.
"The amendment provided the holders of the bank loan the right
to parcel the existing US$2.65 billion term loan into two
tranches, up to 90 days from the closing date," said Standard &
Poor's credit analyst Jean Stout. "The 90-day period has
expired and the term loan remains intact."
At the same time, Standard & Poor's affirmed its other ratings
on ServiceMaster, including its 'B' corporate credit rating. The
rating outlook is negative.
ServiceMaster provides a variety of outsourcing services to both
residential and commercial customers, with major segments
including lawn care, pest control, and home warranties.
"The ratings on ServiceMaster reflect its very highly leveraged
financial profile following its acquisition by an investment
group led by Clayton, Dubilier & Rice Inc.," said Ms. Stout.
"Ratings support is provided by ServiceMaster's good business
positions in its fragmented and competitive end markets, which
have historically translated into good cash flow generation from
a fairly diverse portfolio of services."
ServiceMaster Co. -- http://www.servicemaster.com/-- (NYSE:SVM)
currently serves residential and commercial customers through a
network of over 5,500 company-owned locations and franchised
licenses. The company's brands include TruGreen, TruGreen
LandCare, Terminix, American Home Shield, InStar Services Group,
ServiceMaster Clean, Merry Maids, Furniture Medic, and
AmeriSpec. The core services of the company include lawn care
and landscape maintenance, termite and pest control, home
warranties, disaster response and reconstruction, cleaning and
disaster restoration, house cleaning, furniture repair, and home
inspection. The company has operations in Australia, Chile,
China, Dominican Republic, Hong Kong, Indonesia, Japan, and the
United Kingdom, among others.
=====================
E L S A L V A D O R
=====================
BANCO AGRICOLA: S&P Affirms BB/B Counterparty Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB/B'
counterparty credit rating on Banco Agricola S.A. The outlook
is positive.
"The ratings on Banco Agricola S.A. are constrained by an
important amount of restructured loans, significant competition,
and the relatively small size and limited diversification of El
Salvador's economy," said S&P's credit analyst Leonardo Bravo.
"The ratings are supported by Agricola's leading market position
in El Salvador, its diversified loan portfolio, improving
profitability, and broad base of retail deposits. The bank has
better efficiency ratios, lower funding costs, and lower
concentrations in its client base than those of its peers."
Banco Agricola remains El Salvador's largest bank with a market
share of almost 30% of deposits and loans. Banco Agricola has
always focused on the mass market and is consolidating its local
leadership by emphasizing retail deposits, loans to small and
midsize entities, and cross-selling other products. S&P expects
Banco Agricola to maintain a leading position in all its
business lines and to maintain an important exposure to El
Salvador's economy.
The positive outlook reflects the bank's strategies, and
adequate operations should maintain current profitability and
improve the bank's asset quality. The ratings could be raised
if NPAs advance toward Latin American standards, if economic
growth in El Salvador continues to recover, and if the bank
continues to grow its loan portfolio while maintaining asset
quality. However, deterioration of the bank's overall
performance could put negative pressure on the rating.
Banco Agricola is El Salvador's largest bank, with a deposit and
asset market share of 28% at end-June 2006, and is part of one
of the largest financial groups in Central America. IFBA owns a
92% stake in Banco Agricola and majority stakes in subsidiaries
in the insurance, stockbrokerage and pension fund management
sectors. In turn, Banco Agricola's subsidiaries are credit card
issuer Credibac and the leasing company Arrendadora Financiera.
At end-June 2006, Banco Agricola had US$3.1 billion in assets
and a nation-wide network of 61 branches and 342 ATMs, but has
an additional presence of 178 domestic points-of-sale plus 24
agencies in the United States to handle remittances.
HANESBRANDS INC: Reports US$38.9-Mln Net Income in Third Quarter
----------------------------------------------------------------
Hanesbrands Inc. earned US$38.9 million for the three months
ended Sept. 29, 2007, compared to US$50.3 million of net income
for the same period in 2006.
Total net sales increased by 3.1% to US$1.15 billion, and
earnings per diluted share decreased to US$0.40 primarily as a
result of higher interest expense associated with the company's
independent structure following its spinoff in September 2006.
"We delivered solid performance in the quarter," said
Hanesbrands Chief Executive Officer Richard A. Noll. "We
increased sales in a mixed retail market, we executed well
against our initiatives, and we generated strong cash flow that
we used to prepay debt and repurchase shares."
Financial Highlights
"We are pleased that our year-to-date operating profit margin
excluding actions has edged higher than last year," Mr. Noll
said. "Our cost-reduction efforts are slightly ahead of
schedule, which has allowed us to exceed our goal of offsetting
the increased costs we have as a standalone company."
Hanesbrands used its continued strong cash flow from operations
to prepay long-term debt in the quarter by US$75 million and
repurchase US$29 million of company stock.
Other Highlights
Hanesbrands continues to invest in its brands and product
marketing, focusing on its largest and strongest brands. On
Sept. 3, Playtex launched its "Girl Talk" advertising and
marketing campaign, which takes a fun, honest and irreverent
approach to women's everyday bra-fitting challenges. A video of
outtakes from the filming of the Playtex television commercial
was watched by more than 4 million visitors on YouTube.com, one
of the highest 24-hour view rates for a roadblock ad ever
recorded on the video Web site.
The latest "Look Who" Hanes advertising for ComfortSoft men's
underwear featuring Michael Jordan and Cuba Gooding Jr. and for
the All-Over Comfort Bra featuring Jennifer Love Hewitt continue
to perform well with consumers.
Hanesbrands has continued to reach key milestones in its global
supply chain strategy of improving competitiveness by operating
fewer, bigger facilities and moving production to lower-cost
countries. In August, Hanesbrands acquired its second offshore
textile plant, the 1,300-employee textile manufacturing
operations of Industrias Duraflex, S.A. de C.V., in San Juan
Opico, El Salvador. Hanesbrands has also selected Nanjing,
China, as the site to build a textile production plant, which
will be the first company-owned textile production facility in
Asia.
During the third quarter, Hanesbrands substantially completed
the separation of its pension plan assets and liabilities from
the company's former parent. As a result, Hanesbrands' pension
plans in total are approximately 97 percent funded.
"Since our spinoff, we have increased sales, expanded our
margins, and strengthened our balance sheet," Mr. Noll said.
"Our strategic initiatives of investing in our brands, reducing
costs and driving cash generation are creating value and
positioning us to achieve our long-term growth goals."
Hanesbrands Inc.
Hanesbrands Inc. -- http://www.hanesbrands.com/-- markets
innerwear, outerwear and hosiery apparel under consumer brands,
including Hanes, Champion, Playtex, Bali, Just My Size, barely
there and Wonderbra. The company designs, manufactures, sources
and sells T-shirts, bras, panties, men's underwear, children's
underwear, socks, hosiery, casual wear and active wear.
Hanesbrands has approximately 50,000 employees in 24 countries,
Including Dominican Republic, El Salvador, Mexico, Puerto Rico,
India and China.
* * *
Standard & Poor's Ratings Services affirmed Hanesbrands Inc.'s
B+ corporate family rating on December 2006.
===========
M E X I C O
===========
AMERICAN GREETINGS: Acquires CNET's Webshots Online Assets
----------------------------------------------------------
American Greetings Corporation has acquired the online assets of
the Webshots brand from CNET Networks, Inc. The purchase price
was approximately US$45 million and is subject to customary post
closing adjustments.
Webshots is one of the largest online photo and video sharing
sites on the Internet with more than 7 million unique monthly
United States visitors as measured by The Nielsen Company, a
leading global Internet information provider, and with more than
400 million digital photos stored. Webshots offers both free
and premium memberships with a variety of features. Users of
Webshots can easily manage their photos online, share their
photos, order prints, and order custom photo gifts.
Zev Weiss, Chief Executive Officer said, "The acquisition of
Webshots gives us the opportunity to expand our current product
offering of online social expressions into the adjacent area of
online photo sharing. The online photo market has grown
dramatically over the past few years as consumers purchase and
use digital cameras, share and print their photos through
Internet sites, and look for ways to incorporate their photos on
personalized products, including greeting cards."
Josef Mandelbaum, CEO of AG Intellectual Properties, one of
American Greetings segments, stated, "This acquisition is a
natural extension of our interactive business, which is already
a leading provider of electronic social expression content. The
combination of Webshots, along with our existing business, makes
us a top 50 U.S. Web site."
Mr. Weiss added, "At this time, the transaction is anticipated
to be mildly dilutive to fiscal 2008 earnings. However, we
still expect to achieve our previously announced estimate of
earnings per share from continuing operations for fiscal 2008 of
US$1.35 to US$1.55 per share."
About American Greeting Corp.
Cleveland, Ohio-based American Greetings Corporation (NYSE: AM)
-- http://corporate.americangreetings.com/-- manufactures
social expression products. American Greetings also
manufactures and sells greeting cards, giftwrap, party goods,
candles, balloons, stationery and giftware throughout the world,
primarily in Canada, the United Kingdom, Mexico, Australia, New
Zealand and South Africa.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 18, 2007, Moody's Investors Service affirmed American
Greetings Corporation's ratings, but revised its ratings outlook
to stable from negative.
Ratings Affirmed:
-- Corporate family rating at Ba1;
-- Probability-of-default rating at Ba1;
-- US$350 million guaranteed senior secured revolving credit
facility due 2011 at Baa3 (LGD2, 21%);
-- US$100 million guaranteed senior secured delay draw term
loan facility due 2013 at Baa3 (LGD2, 21%);
-- US$200 million senior unsecured notes due 2016 at Ba2
(LGD5, 75%);
-- US$22.7 million senior unsecured notes due 2028 at Ba2
(LGD5, 75%).
ATARI INC: BlueBay Buys US$3 Million Guggenheim Debt Facility
-------------------------------------------------------------
Funds affiliated with BlueBay Asset Management plc had purchased
all of the US$3 million of loans outstanding under Atari Inc.'s
Credit Facility with Guggenheim Corporate Funding LLC and that
it had entered into a Senior Secured Credit Facility with
BlueBay High Yield Investments (Luxembourg) S.A.R.L., as the
successor administrative agent.
BlueBay Asset is a significant shareholder of Infogrames
Entertainment S.A., Atari's majority stockholder.
The Senior Secured Credit Facility:
-- waives and amends certain provisions of the Guggenheim
Credit Facility;
-- increases the availability to US$10 million;
-- eliminates the borrowing base requirements and certain
prepayment fees; and
-- extends the maturity of the outstanding borrowings to
Dec. 31, 2009.
The two year US$10 million Senior Secured Credit Facility is a
first step in securing financing to build inventory for the 2007
calendar holiday season and for day-to-day working capital
needs. The US$10 million does not fully satisfy Atari's funding
requirements and additional financing is being sought.
"This revised Credit Facility is a major step in addressing
Atari's liquidity needs and providing financing to support its
near term business plan," Curt G. Solsvig III, chief
restructuring officer of Atari, said.
The Senior Secured Credit Facility raises the borrowing
availability which was limited by a letter agreement entered
into on Oct. 1, 2007, with Guggenheim waiving non-compliance or
potential non-compliance with certain representations and
covenants and limiting the aggregate revolving commitment under
the credit facility to no more than US$3 million.
About Atari Inc.
Headquartered in New York, Atari Incorporated, (NASDAQ: ATAR)
-- http://www.atari.com/-- together with its subsidiaries,
publishes, develops, and distributes video game software in
North America. It offers games for various platforms. Its
portfolio of games includes action, adventure, strategy, role-
playing, and racing. Atari distributes its video game software
in the United States, Canada, and Mexico through mass merchants,
retail outlets, online outlets, specialty retailers, and
distributors. The company, founded in 1992, was formerly known
as Infogrames Inc. and GT Interactive Software Corp. It changed
its name to Atari Incorporated in 2003 and is a subsidiary of
Infogrames Entertainment SA.
Going Concern Doubt
New York-based Deloitte & Touche LLP expressed substantial doubt
about Atari's ability to continue as a going concern after
auditing the company's consolidated financial statements for the
year ended March 31, 2007. The auditing firm pointed to the
company's significant operating losses.
AXTEL SA: Earns MXN209 Million in Third Quarter 2007
----------------------------------------------------
Axtel said in a statement that its profit increased by 83% to
MXN209 million in the third quarter 2007, from BRL114 million in
the same quarter in 2006.
Business News Americas relates that Axtel's revenues grew 95% to
MXN3.035 billion in the third quarter 2007, compared to the same
period in 2006. Its revenue for the nine months was MXN9.065
billion.
According to BNamericas, Axtel's operating profits increased
138% to MXN399 million in this year's third quarter, from MXN168
million in last year's third quarter.
The report says that Axtel's lines in service rose 20% to
879,000 in the third quarter 2007, compared to the third quarter
of 2006. Its Internet subscribers grew 75% to 107,000. Income
from the data and networks increased 705% to MXN636 million,
from MXN79 million.
Axtel will invest some US$25 million in Reynosa and about US$20
million in Ciudad Victoria over the next five years. It had
expanded services in San Juan del Rio, Queretaro. It would
launch operations in one more city in 2007, BNamericas states.
Headquartered in Monterrey, Mexico, Axtel S.A.B. de C.V. was
formerly known as Axtel SA DE CV. The company's principal
activity is providing local and long-distance domestic and
international telephony, data and Internet services, virtual
private networks and value added services. Services include
different access technologies such as fixed wireless telephony,
point-to-point and point-to-multi point radio links, and copper
and fiber optic connections. Basic services are divided into 5
categories such as voice, conference call, data, Internet and
bundles. It offers basic telecommunications infrastructure in
Mexico through an intelligent network that provides extensive
coverage to all markets. It currently operates in Mexico City,
Monterrey, Guadalajara, Puebla, Leon, Toluca, Queretaro, San
Luis Potosi, Aguascalientes, Saltillo, Ciudad Juarez, Tijuana,
La Laguna, Veracruz and Chihuahua.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 16, 2007, Standard & Poor's ratings services said that it
revised its outlook on Axtel S.A.B. de C.V. to stable from
negative. At the same time, affirmed 'BB-' corporate credit and
senior unsecured debt ratings on Axtel and its notes due 2013
and 2017.
CEMEX SAB: Net Income Drops 7% to US$780 Mil. in Third Qtr. 2007
----------------------------------------------------------------
CEMEX S.A.B. de C.V. has disclosed that consolidated net sales
increased 31% in the third quarter of 2007 to US$6.1 billion
versus the comparable period in 2006. EBITDA grew 23% in the
third quarter of 2007 to US$1.4 billion versus the same period
of 2006.
During the third quarter of 2007, majority net income decreased
7% to US$780 million from US$836 million in the third quarter of
2006. The recognition of an extraordinary gain of close to
US$100 million from the sale of our stake in the Indonesian
cement company Semen Gresik in the third quarter last year, as
well as higher financial expenses in the quarter due to the
Rinker acquisition, contributed to the decrease.
Net debt at the end of the third quarter was US$19.2 billion,
representing an increase of approximately US$15.1 billion during
the quarter, due to the Rinker acquisition. The net-debt-to-
EBITDA ratio increased to 3.6 times from 1.0 time at the end of
the second quarter of 2007. Interest coverage reached 6.9 times
during the quarter, down from 8.3 times a year ago.
Hector Medina, Executive Vice President of Planning and Finance,
said: "CEMEX delivered solid growth in net sales and operating
income in the third quarter. Despite the ongoing slowdown in
the residential sector in the United States, we continue to
increase sales and improve efficiency across our operations.
The addition of Rinker's operations in the quarter further
solidifies our position in the building materials industry. The
integration of Rinker began on July 1 and we are now halfway
through the post-merger integration process. We remain focused
on paying down debt and continue delivering solid returns for
our shareholders."
Main markets Third Quarter Highlights
Net sales in our operations in Mexico increased 6% during the
third quarter of 2007 to US$950 million, compared with US$899
million in the same period of 2006. EBITDA increased 3% to
US$336 million versus the same period of last year. Cement,
ready-mix, and aggregates volumes increased 5%, 8% and 50%,
respectively, during the quarter versus the same period last
year.
CEMEX's operations in the United States reported net sales of
US$1.7 billion in the third quarter of 2007, up 57% from the
same period in 2006. EBITDA increased 25% to US$420 million,
from US$336 million in the third quarter of 2006. Domestic
cement volume decreased 1% versus the same quarter in 2006.
Ready-mix and aggregates volumes increased 54% and 173%,
respectively, versus the same period last year. These results
include the impact of Rinker's operations. Building materials
dynamics in the U.S. continued to be driven by the ongoing
downturn in the residential sector.
In our operations in Spain, net sales for the quarter were
US$502 million, up 16% from the third quarter of 2006, while
EBITDA increased 12% to US$149 million. Cement, ready-mix, and
aggregates volumes decreased 6%, 5% and 3%, respectively, during
the quarter compared with the third quarter of 2006.
Our operations in the United Kingdom experienced a 10% increase
in net sales, to US$550 million, when compared with the same
quarter of 2006. EBITDA decreased 18% to US$34 million in the
third quarter from US$41 million in the comparable period in
2006.
Net sales in the Rest of Europe region increased 14% during the
third quarter of 2007 versus the comparable period in the
previous year, reaching US$1.1 billion. EBITDA was US$167
million for the region, 13% higher compared to the same quarter
of 2006.
CEMEX's operations in South/Central America and the Caribbean
reported net sales of US$526 million during the third quarter of
2007, representing an increase of 28% over the same period of
2006. EBITDA increased 37% for the quarter to US$184 million
versus the same period in 2006.
Net sales in the Africa and the Middle East region were US$198
million, up 8% from the same quarter of 2006. EBITDA increased
4% to US$50 million versus the comparable period in 2006.
Operations in Asia and Australia reported a 515% increase in net
sales, to US$509 million, versus the third quarter of 2006, and
EBITDA was US$89 million, up 369% from the same period in the
previous year. The increase is mainly due to the integration of
Rinker operations.
CEMEX SA -- http://www.CEMEX.com/-- is a growing global
building solutions company that provides high quality products
and reliable service to customers and communities in more than
50 countries throughout the world. Commemorating its 100th
anniversary in 2006, CEMEX has a rich history of improving the
well-being of those it serves through its efforts to pursue
innovative industry solutions and efficiency advancements and
to promote a sustainable future.
* * *
On May 30, 2005, Moody's Investors Service revised the
ratings outlook on Cemex S.A. de C.V.'s Ba1 ratings to positive
from stable. Ratings affected include the company's Ba1 ratings
on approximately US$110 million in senior unsecured Euro notes
and its senior implied rating.
COTT CORP: S&P Lowers Corporate Credit Rating to B from B+
----------------------------------------------------------
Standard & Poor's Ratings Services has lowered its ratings on
Cott Corp. by one notch, including its long-term corporate
credit rating to 'B' from 'B+'. At the same time, S&P removed
the ratings from CreditWatch with negative implications, where
they were placed Oct. 2, 2007. The outlook is negative.
"The downgrade reflects Cott's weakened financial performance
for the third quarter and year-to-date 2007, which was below our
expectations," said S&P's credit analyst Lori Harris. "This
poor performance included a material decline in gross margin and
operating profit, volume declines in key carbonated soft drink
markets, higher raw material costs, inefficient operations, and
weakened credit protection measures," Ms. Harris added.
Cott's gross margin dropped to 11.6% for the nine months ended
Sept. 30, 2007, from 13.6% for the same period the previous
year. Similarly, the operating margin declined to 7.0% for the
nine months ended Sept. 30, 2007, from 8.4% for the same period
in 2006. Although reported revenue declined 1% in the nine
months ended Sept. 30, 2007, it was down 3% excluding the impact
of foreign exchange, primarily due to carbonated soft drink
softness in North America. In addition, Cott faces other
challenges, including execution problems related to new product
manufacturing and the expectation that raw material costs,
including aluminum, sweeteners, and resin, will remain elevated
in 2008. Given the magnitude of these issues, S&P believes that
Cott will remain under pressure for some time.
The ratings on Cott Corp. reflect its vulnerable business risk
profile stemming from the company's internal challenges, narrow
product portfolio, customer concentration, and small size in a
sector dominated by companies with substantially greater
financial resources and market presence. Furthermore, Cott
Corp.'s weak operating performance has led to an ongoing decline
in operating margin since 2003. These factors are partially
offset by Cott's adequate credit protection measures for the
ratings and solid market position as the leading private label
manufacturer and marketer of take-home carbonated soft drinks in
the U.S., the U.K., and Canada. Cott Corp. competes in the
mature and highly competitive carbonated soft drink market by
securing a strong private label share. Despite this defensive
operating strategy, the company is vulnerable to pricing and
market share actions by its primary competitors.
The negative outlook reflects S&P's concerns about the
challenges the company faces given its weak operating
performance. S&P could lower the ratings if Cott Corp.'s
operations, credit protection measures, or financial flexibility
continue to deteriorate. Alternatively, S&P could revise the
outlook to stable if the company improves its operating
performance.
Headquartered in Toronto, Ontario, Cott Corporation (NYSE: COT;
TSX: BCB) -- http://www.cott.com/-- is a non-alcoholic beverage
company and a retailer brand beverage supplier. The company
commercializes its business in over 60 countries worldwide, with
its principal markets being the United States, Canada, the
United Kingdom and Mexico. Cott markets or supplies over 200
retailer and licensed brands, and company-owned brands including
Cott, Royal Crown, Vintage, Vess and So Clear. Its products
include carbonated soft drinks, sparkling and flavoured mineral
waters, energy drinks, juices, juice drinks and smoothies,
ready-to-drink teas, and other non-carbonated beverages.
EPICOR SOFTWARE: Earns US$8.1 Mil. in 3rd Quarter Ended Sept. 30
----------------------------------------------------------------
Epicor Software Corporation reported Tuesday preliminary
financial results for its third quarter ended Sept. 30, 2007.
This year's third quarter GAAP net income increased 49% to
US$8.1 million, compared to US$5.4 million in the 2006 third
quarter. The 2007 third quarter tax rate was 36.4%. The
company's actual cash tax rate for the 2007 third quarter was
approximately 10%.
Total 2007 third quarter revenues were US$103.1 million, an
increase of approximately 8% when compared to total revenues of
US$95.7 million in the 2006 third quarter.
2007 third quarter non-GAAP net income increased approximately
19% to US$12.7 million, compared to non-GAAP net income of
US$10.7 million in the 2006 third quarter. In addition to
excluding amortization and stock-based compensation expense,
non-GAAP earnings for the 2007 third quarter also excludes
restructuring charges resulting from the company's reduction in
operating costs as announced in July 2007, all net of tax.
Epicor chairman and chief executive officer George Klaus
commented, "We had a solid overall quarter, with GAAP and non-
GAAP EPS landing within the ranges of our previously provided
guidance and our consulting and maintenance organizations
continuing to post record quarterly revenues. Additionally, we
continued to drive strong cash flow from operations of more than
US$20 million in the third quarter, which brings our total cash
flow from operations for the first nine months of 2007 to more
than US$40 million. We also began to deliver on our adjusted
EBITDA improvement expectations, with third quarter adjusted
EBITDA of 17.6% increasing 330 basis points over first half 2007
adjusted EBITDA of 14.3%. These positive results were somewhat
offset by software revenues that did not meet our previously
provided expectations for year-over-year growth, as well as
additional volatility in our low margin hardware business.
"Having grown software revenues organically by approximately 20%
in last year's third quarter, we knew we were faced with a very
difficult year-over-year comparison," Klaus said. "The
continuing strong growth in our worldwide pipelines firmly
supported our expectations for 2007 third quarter software
revenue growth of 10% to 13%, as provided in July, however, we
did not close the deals forecasted to reach this goal and
software license revenue grew year-over-year by approximately
1%."
At Sept. 30, 2007, the company's consolidated balance sheet
showed US$604.8 million in total assets, US$367.4 million in
total liabilities, and US$237.4 million in total shareholders'
equity.
Liquidity and Long-term Debt
The company's balance sheet at Sept. 30, 2007, included cash and
cash equivalents and short-term investments of US$217.0 million,
which benefited from strong cash flow from operations of more
than US$20 million during the quarter. The company's total
long-term debt balance as of Sept. 30, 2007 was US$230.4
million, consisting primarily of the US$230 million obligation
to holders of the company's convertible bonds.
2007 Fourth Quarter and Full-Year Guidance
Based on resetting its expectations on the timing of larger
orders closing, the company is providing the following financial
guidance for its 2007 fourth quarter: Specifically, total
revenue for the 2007 fourth quarter is expected to be in the
range of US$110 to US$112 million. Software license revenue for
the 2007 fourth quarter is expected to be in the range of US$30
to US$31 million. Hardware revenue for the 2007 fourth quarter
is expected to be approximately US$5 million. The company
expects its 2007 fourth quarter GAAP net income to be in the
range of US$10 to US$11 million.
The company's current 2007 fourth quarter revenue expectations
equate to expectations for 2007 full-year revenue of $420 to
US$422 million, an increase of 9% to 10% over 2006 full-year
revenues of US$384.1 million.
Full-Year 2008 Guidance
Total revenues for the 2008 year are expected to be US$458 to
US$468 million, an increase of 9% to 11% over total expected
2007 full-year revenues. Full-year 2008 GAAP net income is
expected to increase approximately 36% to 39% over expected
full-year 2007 GAAP net income. Software license revenue for
the 2008 full-year is expected to increase 8% to 10% over
expected 2007 full-year software license revenue.
About Epicor Software Corporation
Headquartered in Irvine, California, Epicor Software Corporation
-- http://www.epicor.com/www/-- is a provider of enterprise
resource planning, customer relationship management, and supply
chain management software and solutions to mid-market companies
worldwide. Epicor Software has worldwide locations in China,
Australia, Canada, Germany, Hong Kong, Indonesia, Italy, Japan,
Korea, Malaysia, Mexico, Singapore, Taiwan, and the United
Kingdom, among others.
* * *
Epicor Software continues to carry Standard & Poor's Rating
Services' 'BB-' corporate credit rating.
GRUPO IUSACELL: Revenues Up 35% to MXN2,637 Million in 3rd Qtr.
---------------------------------------------------------------
Grupo Iusacell, S.A.B. de C.V. has reported net revenue of
MXN2,637 million for the third quarter of 2007, a 35% rise
compared with MXN1,957 million in the same period of 2006.
"The increasing preference for our technologically superior
services further strengthened the solid sales trend," said
Gustavo Guzman, Chief Executive Officer of Grupo Iusacell. "An
increasing number of users are acquiring the BAM service --
unique wireless 3G broadband product in Mexico -- are using
unparalleled multimedia applications in the market, and enter
into our far-reaching subscribers' communities; which translates
into an additional top line boost. The greater sales were
fundamental for the EBITDA growth, and a larger expansion of our
profitability margin."
"On the strategic front, during the quarter we advanced even
more on the development of synergies and operating efficiencies,
which result from the merger of the company with Unefon
Holdings; generating solid perspectives of income and
profitability," added Mr. Guzman.
Net Revenue
Net revenue during the quarter was MXN2,637 million, a 35% rise
compared with MXN1,957 million in the same period of 2006.
Growth derives mainly from: i) an increase in roaming incoming
revenues, ii) growth in air time and rents, iii) revenue from
the Nationwide Calling Party Pays service -- which did not exist
in the third quarter of 2006 -- and iv) increase in value added
services.
Subscribers Base
As of Sept. 30, 2007, Grupo Iusacell had 4 million subscribers,
double compared with the prior year. The increase was driven by
the incorporation of the important users' base of Unefon, and by
new subscribers.
Costs and Expenses
Costs were MXN1,532 million, compared with MXN1,151 million in
the same period a year ago. The rise in costs was primarily the
result of: i) payments connected to expansion related activities
and increased network coverage, partially compensated by gains
in operating efficiency, ii) an increase in handset subsidy, and
iii) interconnection costs associated with the Nationwide
Calling Party Pays service, not present last year.
Operating expenses totaled MXN631 million, compared with MXN466
million in the third quarter last year. Growth is mainly due to
i) increase in advertising expenses, as a result of the launch
of important campaigns to promote new products and services that
are unique in the country, and ii) increased personnel expenses
as a consequence of the significant increase in the company's
dimensions.
EBITDA and Net Income
As a result of a larger increase in sales, compared with the
growth in costs and expenses, EBITDA for the quarter was MXN474
million, a 39% rise from MXN340 million in the same period last
year. EBITDA margin was 18%, above the 17% in the third quarter
last year.
Below EBITDA, financing costs were MXN293 million, compared with
gains of MXN318 million in the same period last year. The
change is mainly attributed to an exchange loss of MXN106
million in the period, compared with an exchange gain of MXN399
million a year ago. The exchange loss this quarter is the
result of a 1% peso depreciation against the dollar, together
with a dollar liability monetary position in the period. In
addition, the gain in monetary position was reduced by MXN78
million.
The tax provision during the quarter was MXN140 million, in line
with the tax rate applicable to the company.
During the third quarter of 2006, there was an extraordinary
benefit of MXN4,066 million as a result of the debt
restructuring, which was not present this quarter. As a
consequence, during the third quarter of 2006 there was a net
income of MXN4,345 million, compared with a MXN499 million net
loss this period.
Capex
During the quarter, the company's capex was US$24 million.
Capital expenditures were primarily allocated to the expansion
of coverage and network capacity of Grupo Iusacell's 3-G network
and EV-DO services.
Debt
Total debt as of Sept. 30, 2007 was US$943 million, of which
US$596 million is denominated in dollars and the rest is in
Mexican pesos. Total debt matures, on average, in 2011.
Stockholders' Equity
As of Sept. 30, 2007, the company's stockholder's equity was
MXN2,888 million, compared with MXN717 million of 2006. The
increase reflects the positive effects on the equity, resulting
from Grupo Iusacell's debt restructuring-which was previously
announced -- and capital additions from the merger with Unefon
Holdings.
Nine-Month Results
Net revenue for the first nine months was MXN7,175 million, a
24% increase from MXN5,793 million in the same period a year
ago. EBITDA was MXN1,267 million, up 34% from MXN943 million in
the same period in 2006. Net loss was MXN1,608 million,
compared with net income of MXN2,920 million in the first nine
months of last year.
About Iusacell
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.
GRUPO MEXICO: Drops Cananea Expansion Plans Due to Labor Unrest
---------------------------------------------------------------
Grupo Mexico SA, de C.V., told The Houston Chronicle that it
abandoned plans to expand the Cananea copper mine due to
protests.
The Chronicle relates that workers at Cananea and two other
Grupo Mexico mines have been on strike since July 2007.
Grupo Mexico said it will spend some US$2.1 billion on projects
in Peru, The Chronicle notes.
Grupo Mexico admitted to The Chronicle that it suspended
indefinitely a planned three-year investment of US$2.3 billion
at Cananea "due to the lack of labor stability."
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'. Fitch said the rating outlook is stable.
HARMAN INT'L: Earns US$36.5 Mil. in First Quarter Ended Sept. 30
----------------------------------------------------------------
Harman International Industries, Incorporated reported net
income of US$36.5 million for the three months ended
Sept. 30, 2007, compared to net income of US$56.6 million for
the same period in 2006.
Net sales for the three months were US$947.0 million, a 15%
increase compared to US$825.5 million for the same period last
year.
All three divisions reported double-digit sales growth for the
first quarter. Automotive net sales for the three months were
US$682.3 million compared to US$601.0 million last year, an
increase of 14%. Consumer net sales increased 28% from US$93.1
million a year ago to US$119.4 million this quarter.
Professional net sales were US$145.2 million compared to
US$131.4 million last year, an increase of 11%.
Dr. Sidney Harman, Executive Chairman, and Dinesh Paliwal, Vice
Chairman and Chief Executive Officer, commented:
"We achieved good results during the first quarter of fiscal
2008. Sales growth was strong due to the ramp up of an
infotainment system for Chrysler and robust sales of personal
navigation devices in Europe. Our initiative to develop cost
saving strategies is underway and we expect to gain procurement,
engineering and manufacturing efficiencies that will improve
margins over the course of this fiscal year."
Headquartered in Washington, D.C., Harman International
Industries Inc. (NYSE: HAR) -- http://www.harman.com/-- makes
audio systems through auto manufacturers, including
DaimlerChrysler, Toyota/Lexus, and General Motors. Also the
company makes audio equipment, like studio monitors, amplifiers,
microphones, and mixing consoles for recording studios, cinemas,
touring performers, and others. Harman Int'l has operations in
Japan, Mexico and France.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 26, 2007, Standard & Poor's Ratings Services revised its
CreditWatch implications for the 'BB-' corporate credit rating
on Harman International Industries Inc. to positive from
developing.
HILLMAN COS: Moody's Revises Outlook to Neg.; Affirms B2 CFR
-------------------------------------------------------------
Moody's Investors Service has downgraded the speculative grade
liquidity rating of Hillman Companies Inc. to SGL 3 from SGL 2
and revised the company's rating outlook to negative, based on
concerns that Hillman may breech a financial covenant over the
next year if its operating performance were to moderate. At the
same time, all of Hillman's other ratings, including its B2
corporate family rating, were affirmed.
"The SGL downgrade and negative outlook principally reflects
Moody's concern that the contractual tightening of a financial
covenant coupled with the lack of meaningful improvement in
operating profitability may necessitate a need for the company
to seek revisions to its senior secured credit facility and
amend its covenants" said Kevin Cassidy Vice President/Senior
Credit Officer at Moody's Investors Service. "While we expect
that the company will comply with its covenants in the third
quarter, the step down in its required leverage covenant to 4.0
from 4.25, has increased the likelihood that the company may
need to amend its credit facility" said Mr. Cassidy.
Hillman's ratings are supported by its leading market share in
fasteners and keys/key accessories, stable industry demand, its
generally stable operating performance, and its extensive
distribution network, all of which help buffer against its high
leverage, modest interest coverage and its modest size with
revenues less than US$500 million.
This rating was downgraded:
-- Speculative grade liquidity rating to SGL 3 from SGL 2;
These ratings were affirmed:
-- Corporate family rating at B2;
-- Probability of default rating at B2;
-- US$40 million senior secured revolving credit facility at
Ba3 (LGD 2, 23%) due 2012
-- US$235 million senior secured term loan Ba3 (LGD 2, 23%)
due 2013
The Hillman Companies, Inc. -- http://www.hillmangroup.com--
manufactures key making equipment and distributes key blank,
fasteners, signage and other small hardware components. The
company sells and markets to hardware stores, home centers and
mass merchants in the United States, Canada, Mexico and South
America.
KANSAS CITY: To Build Megamex Terminal at Hidalgo or Edomex
-----------------------------------------------------------
Kansas City Southern Mexico's corporate affairs vice president
David Eaton told Business News Americas that the firm is working
with the governments of Edomex and Hidalgo to find a location in
either of the states for the construction of its its Megamex
intermodal terminal.
The terminal would handle railway cargo destined for Mexico City
and the US along Kansas City's corridor extending from the
Lazaro Cardenas port, in Michoacan, to Texas City Laredo,
BNamericas notes, citing Mr. Eaton.
Mr. Eaton commented to BNamericas that the terminal would handle
cargo along three trade routes:
-- one for cargo from Asia to the DF (arriving in Mexico at
Lazaro Cardenas),
-- one for cargo from Asia through the DF and on to the US,
and
-- one for Mexican cargo headed to the US via the DF.
Interest from Edomex and Hidalgo in hosting the facility comes
from the fact that "a large, intermodal facility like this tends
to be an economic juggernaut that creates jobs and prosperity,"
BNamericas states, citing Mr. Eaton.
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.
MOVIE GALLERY: Can File Statements & Schedules on Nov. 30
---------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Virginia
extended, until Nov. 30, 2007, the deadline in which Movie
Gallery, Inc. and its debtor-affiliates can file their financial
statements and schedules with the Court.
Pursuant to Section 521 of the Bankruptcy Code, a Chapter 11
debtor must file, no later than 15 days after its petition date,
a list of creditors, its schedules of assets and liabilities, a
schedule of current income and expenditures, a schedule of
executory contracts and unexpired leases and a statement of
financial affairs.
The Debtors reasoned that because of the size and complexity of
the Debtors' operations, and the time required to compile the
needed information, an extension of time to file the statements
and schedules is necessary and appropriate.
William C. Kosturos, managing director at Alvarez & Marsal North
America LLC, and chief restructuring officer of Movie Gallery,
Inc., reminds the Court that the Debtors are the second largest
North American home entertainment specialty retailer. According
to Mr. Kosturos, the Debtors estimate they have more than
100,000 creditors and other parties-in-interest, and preparing
their statements and schedules accurately will require
significant attention from the Debtors' personnel and advisors.
Moreover, Mr. Kosturos maintains that without an extension of
time, preparation of the statements and schedules will distract
attention from the Debtors' business operations, at a critical
time when the business can ill afford any disturbance.
The Court also authorizes the U.S. Trustee to schedule the
meeting with creditors, pursuant to Section 341, more than 40
days following the date of bankruptcy filing, notwithstanding
Bankruptcy Rule 2003(a) and (b), to the extent necessary.
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. 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. The U.S. Trustee for Region 4 appointed an Official
Committee of Unsecured Creditors in the Debtors' bankruptcy
proceedings on October 18.
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. 3; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Wells Fargo Can File One Master Proof of Claim
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Virginia
authorized Wells Fargo Bank, N.A., as successor administrative
agent and collateral agent under the Second Lien Credit and
Guaranty Agreement, to file one master proof of claim on behalf
of each of the lenders pursuant to the Second Lien Credit
Agreement.
This is pursuant to the claims bar date order on Oct. 18, 2007,
wherein all creditors holding claims against Movie Gallery, Inc.
and its debtor-affiliates must file their proofs of claim on or
before Jan. 25, 2008.
The Court clarified, "The filing of a Master Proof of Claim are
intended solely for the purpose of administrative convenience
and shall not affect the right of any Existing Second Lien
Lender to vote separately on any plan or plans of reorganization
proposed in the chapter 11 cases of the Debtors or the right of
any party in interest to request further information."
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. 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. The U.S. Trustee for Region 4 appointed an Official
Committee of Unsecured Creditors in the Debtors' bankruptcy
proceedings on October 18.
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. 3; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Court OKs Sale of 508 Leases & Designation Rights
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Virginia
gave authority to Movie Gallery, Inc. and its debtor-affiliates
to auction off 508 store leases and lease designation rights
associated with those leases.
The Court also approved competitive bidding procedures for the
disposition of the Debtors' interests in the leases.
On Sept. 25, 2007, the Debtors announced the closure of roughly
520 store locations. Each of the Phase 1 Locations is subject
to lease agreements with varying terms and varying durations.
The Debtors are currently conducting store closing sales at
these locations to liquidate inventory, fixtures and equipment,
and they do not intend to conduct any business at the Phase 1
Locations following the store closing sales.
The Debtors have examined the costs associated with their
obligation to pay rent at the Phase 1 Locations, and estimate
that the annual rental cost of the Phase 1 Locations is roughly
US$69,400,000 per year. In addition to their obligations to pay
rent at the Phase 1 Locations, the Debtors are also obligated to
pay certain real estate taxes, utilities, insurance and other
related charges associated with such Leases.
In their reasonable business judgment, the Debtors determined
that the costs, with the concomitant costs of operating the
locations, constitute an unnecessary drain on their resources.
The Debtors do not intend to sell off 12 of the Leases
associated with the Phase 1 Locations as they have no
significant value, particularly when compared with the costs the
Leases would impose on the Debtors' estates. The Debtors are
seeking to reject the 12 Leases in a separate request filed with
the Court.
The Designation Rights will consist of the right to compel the
Debtors to assume and assign one or more of the Leases to a
party designated by the holder of a Designation Right.
Any potential bidder must submit a written bid and other
required bid documents, including a check deposit equal to 10%
of the bid amount or US$5,000 for each lease the bidder seeks to
acquire. All bids are due Nov. 12, 2007. The Bid Deadline may
be extended by the Debtors in their sole discretion.
The Debtors will hold the auction Nov. 15, 2007. The Auction
may be adjourned from time to time.
The Debtors will enter into sale agreements with non-Landlords
who will be chosen as having submitted the highest or otherwise
best bid for a Lease or group of Leases. The Debtors will enter
into lease termination agreements with with Landlords that will
win the bidding for a Lease or group of Leases.
The Debtors intend to reject (a) any or all of the Leases that,
in their reasonable business judgment, are unlikely to realize
any value at the Auction and (b) those Leases that are not
actually sold pursuant to the Auction.
The Court will convene a hearing Nov. 28, 2007, at 10:00 a.m.
(prevailing Eastern Time), to consider approval of any sale
agreements, the sale of designation rights, or any lease
termination agreements. Objections, if any, are due
Nov. 26, 2007.
The Debtors will serve notice to the Landlords of the potential
disposition of the Leases. The Notice of Disposition will
identify, among other things, the Debtors' proposed cost to cure
any defaults under the Leases. Any objection to the proposed
Cure Amounts must be filed by Nov. 2, 2007.
The Debtors will undertake substantial marketing efforts prior
to the Auction with the assistance of their advisors, Keen
Consultants, the real estate division of KPMG Corporate Finance
Realty LLC.
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. 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. The U.S. Trustee for Region 4 appointed an Official
Committee of Unsecured Creditors in the Debtors' bankruptcy
proceedings on October 18.
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. 3; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
TIMKEN CO: Reports US$41.2-Million Net Income in 2007 Third Qtr.
----------------------------------------------------------------
The Timken Company reported sales of US$1.26 billion in the
third quarter of 2007, an increase of 6% over the same period a
year ago. Strong sales in industrial markets were partially
offset by the strategic divestment of the company's automotive
steering and European steel tube manufacturing operations in
prior periods. The company achieved third-quarter income from
continuing operations of US$41.2 million, up from US$38.7
million in last year's third quarter.
Excluding special items, income from continuing operations per
diluted share was US$0.51 during the third quarter of 2007,
compared to US$0.49 in the prior-year quarter. Third-quarter
special items included restructuring, rationalization and
impairment charges totaling US$17.2 million of pretax expense,
compared to US$7.1 million of similar charges in the third
quarter of 2006.
"While Timken's third-quarter performance exceeded what we
achieved last year, our results still fell short of what we had
expected to deliver," said James W. Griffith, Timken's president
and chief executive officer. "As we move forward with our
strategic initiatives, we have intensified our efforts to drive
better execution across the company during a period of strong
demand in multiple market sectors."
During the quarter, the company:
-- made progress on its restructuring initiatives and Project
O.N.E., a program designed to improve business processes
and systems;
-- realigned operations under two major business groups, the
Steel Group and the Bearings and Power Transmission Group,
taking advantage of the Project O.N.E. capabilities to
drive improvement in operational performance.
-- will report its financial results using different
segmentation beginning with the fourth quarter of 2007;
-- and announced the acquisition of the assets of The Purdy
Corp. for US$200 million, which was completed on Oct. 22,
expanding the range of power-transmission products and
capabilities Timken provides to the aerospace sector.
Total debt was US$601.4 million as of Sept. 30, 2007, or 25.5
percent of capital. Net debt at Sept. 30, 2007, was US$513.6
million, or 22.6% of capital, compared to US$496.8 million, or
25.2%, as of Dec. 31, 2006. Year-to-date, the increase in net
debt was primarily due to higher working capital requirements,
driven by strong demand, and increased capital expenditures in
support of growth initiatives.
Industrial Group Results
The Industrial Group had third-quarter sales of US$556.8
million, up 11 percent from US$501.8 million for the same period
last year. The increase resulted from favorable pricing,
currency and strong demand across all market sectors, especially
from heavy industry and aerospace.
The Industrial Group's earnings before interest and taxes (EBIT)
in the third quarter were US$55.4 million, compared to US$48.2
million for the same period last year. EBIT performance in the
quarter benefited from strong volume and pricing, which were
partially offset by higher raw-material costs. The group also
experienced higher manufacturing and logistics costs primarily
associated with capacity additions and managing strong demand
through constrained facilities, compared to the year-ago period.
Outlook
Timken anticipates strong global industrial demand, while
automotive demand is expected to remain stable. The combination
of strong industrial markets, capacity additions and operating
improvements is expected to drive stronger performance.
The company anticipates earnings per diluted share for 2007 from
continuing operations, excluding special items, to be US$2.40 to
US$2.50, compared to US$2.13 for 2006.
About Timken Co.
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered
bearings and alloy steels. It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries. The company has
operations in Argentina, Australia, Belgium, Brazil, Canada,
China, Czech Republic, England, France, Germany, Hungary, India,
Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania,
Russia, Singapore, South America, Spain, Taiwan, Turkey, United
States, and Venezuela and employs 27,000 employees.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 15, 2007, Moody's Investors Service affirmed Timken's Ba1
corporate family rating and the Ba1 rating on Timken's USUS$300
million Medium Term Notes, Series A.
=================
N I C A R A G U A
=================
XEROX CORP: Moody's Puts Ratings on Review for Possible Upgrade
---------------------------------------------------------------
Moody's Investors Service has placed the ratings of Xerox
Corporation and supported subsidiaries under review for possible
upgrade. Overall, Moody's believes that the combination of
consistent business execution, secured debt reduction, and
positive operating trends warrant the consideration of a rating
upgrade.
Ratings under review for possible upgrade:
Xerox Corporation:
-- Senior unsecured at Baa3
-- Subordinated at Ba1
Xerox Credit Corporation:
-- Senior unsecured at Baa3 (support agreement from Xerox
Corp.)
The rating review will focus on the prospects for:
(1) continued steady business execution, that includes
equipment installation growth that provides the basis for
ongoing post sale revenue streams,
(2) overall modest revenue growth,
(3) consistent operating profitability in the 8-9% range,
(4) ongoing strong annual cash flow from operations (Moody's
adjusted) in excess of US$1.5 billion,
(5) the maintenance of solid liquidity and continued
discipline with respect to share repurchase activity which
should be contained within free cash flow generation.
Since Moody's changed the ratings outlook to positive in
November 2006, Xerox has continued to demonstrate good
installation growth throughout its product offering and, with a
good product lineup, Moody's believes that Xerox is well
positioned to maintain or grow its installed base over the
intermediate term. Consistent and well-managed operating
expenses have contributed to operating margins remaining in the
8% to 9% range. Importantly, the company has consistently
reduced the level of secured debt in its capital structure and
accelerated that process recently such that secured debt is less
than US$500 million, down from over US$2 billion at December
2006.
Liquidity remains solid, with cash balances of US$848 million at
September 2007 plus access to a US$2.0 billion unsecured
revolving credit facility, for which covenant room is expected
to remain ample. Combined with Moody's expectations of stable
to improving annual free cash flow (US$1.7 billion for the
latest twelve months ended June 2007), Xerox is well positioned
to meet (1) aggregate public debt maturities of approximately
US$626 million through 2008, as well as (2) potential calls on
liquidity related to outstanding shareholder litigation.
Headquartered in Stamford, Connecticut, Xerox Corp. --
http://www.xerox.com/-- develops, manufactures, markets,
services and finances a range of document equipment, software,
solutions and services. Xerox operates in over 160 countries
worldwide and distributes products in the Western Hemisphere
through divisions, wholly owned subsidiaries and third-party
distributors. The company maintains operations in France,
Japan, Italy, Nicaragua, among others.
===========
P A N A M A
===========
SOLO CUP: Fitch Upgrades Senior Sub. Notes Rating to CCC+
---------------------------------------------------------
Fitch Ratings has upgraded Solo Cup Company's bank debt and
subordinated notes ratings:
-- affirmed Issuer default rating affirmed at 'B-';
-- Senior secured first lien term loan upgraded to 'BB-/RR1'
from 'B+/RR2';
-- Senior secured revolving credit facility upgraded to
'BB-/RR1' from 'B+/RR2';
-- Senior subordinated notes upgraded to 'CCC+/RR5' from
'CCC/RR6'.
The rating outlook is revised to stable from negative.
Approximately US$820 million of debt is covered by the ratings.
The company's Canadian bank debt is excluded from the ratings.
The ratings upgrades within the capital structure reflect
improved expected recoveries in a distressed scenario driven by
the company's substantial reduction in funded debt since the
beginning of the year. Including the recent sale of the paper
plate assets, the Hoffmaster business line, and pro-forma for
the Japanese subsidiaries, Solo will have paid down over US$370
million of senior secured debt so far this year. As a result,
the senior leverage ratio test contained in the bank credit
agreement has been eliminated which gives the company further
financial flexibility. The meaningful debt reduction has
improved estimated recoveries for the bank debt class (term loan
and revolver) to the 'RR1' band (91%-100%) and for the
subordinated notes to the 'RR5' band (11%-30%). As a result,
the ratings have been upgraded one notch for each obligation.
The outlook revision reflects the company's demonstrated ability
to execute asset sales to materially reduce leverage, and the
improving operating trend resulting from the ongoing performance
improvement program. The company is benefiting from a fully
staffed and seasoned management team as its turn-around
progresses.
The ratings recognize Solo's leading market share across its
product categories; strong brand recognition; diversified raw
materials mix; diverse, stable customer base; and modest near-
term debt maturities. Concerns remain about the company's weak,
although improving, cash flows; high leverage; margin pressure
due to intense competition and higher resin and energy prices;
and low unit volume growth. There are also a few outstanding
material weaknesses in accounting controls. Higher raw materials
prices are likely to be an ongoing headwind for Solo, but the
company is seeking to mitigate this risk through its resin
sourcing and product mix management, as well as continuing
efforts to improve pricing relative to costs. A few issues
pertaining to the Sweetheart acquisition remain outstanding, but
clear progress has been made. This along with the overall
operational gains should continue to have a positive impact on
financial results.
Fitch expects fewer asset sales going forward but operating and
free cash flows should continue to improve, making additional
deleveraging possible through earnings growth, if not through
large additional debt repayments over the next few quarters.
Fitch expects the company will be able to meet tightening
consolidated leverage ratio requirements over the same
timeframe. While some earnings potential will be lost due to
the asset sales, improved efficiencies and better product mix
management are likely to more than offset these losses. Certain
cash expenses will increase in the near term stemming from asset
sales, facility realignments, and management compensation.
Fitch anticipates improved profitability over the near term, and
credit metrics could show substantial improvement over the next
one to three quarters as cash flows are expected to trend
higher, LTM earnings benefit from the roll-off of an unusually
weak 1Q07, and consulting fees are reduced or eliminated.
Headquartered in Highland Park, Illinois, Solo Cup Company --
http://www.solocup.com/-- manufactures disposable foodservice
products for the consumer and retail, foodservice, packaging,
and international markets. Solo Cup has broad expertise in
plastic, paper, and foam disposables and creates brand name
products under the Solo, Sweetheart, Fonda, and Hoffmaster
names. The company was established in 1936 and has a global
presence with facilities in Asia, Canada, Europe, Mexico, Panama
and the United States.
=======
P E R U
=======
* PERU: Gets US$1.2-Mln Loan for Water Resources Management Plan
----------------------------------------------------------------
The Inter-American Development Bank has approved a US$1.2
million grant technical cooperation for a water resources
management plan for the Maschon and Chonta watersheds in Peru.
"The purpose of this project is to prepare a broadly-supported
Water Resources Management Plan that defines the appropriate
technical, economic, social, environmental, legal and
institutional measures to be taken in the short and medium term
to resolve current water management problems in the Mashcon and
Chonta watersheds," said IDB team leader Annette Killmer.
"Emphasis will be placed on ensuring water availability in the
Paccha, Azufre and R¡o Grande de Chonta sub-basins."
The Mashcon and Chonta watersheds, with a combined area of
approximately 716 km2, are located in the Department of
Cajamarca, northern Peru. The two watersheds contain five sub-
basins: Paccha, Azufre, Rio Grande, Yanatotora and Bajo Chonta
and supply water to local communities as well as agricultural,
industrial and mining activities.
IDB financing will be provided by the Japanese Trust Fund and
the local counterpart funding from the Peru's National Institute
for Natural Resources will total US$300,000.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 2, 2007, Standard & Poor's Ratings Services assigned its
'BB+' foreign currency credit rating to the Republic of Peru's
(BB+/Stable/B foreign, BBB-/Stable/A-3 local currency sovereign
credit ratings) US$1.24 billion global bond due in 2037 issued
as part of a new liability management operation.
=====================
P U E R T O R I C O
=====================
ANTONIO CHEVRES: Case Summary & 15 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Antonio Jose Chevres
P.O. Box 3254
Lajas, PR 00667
Tel: (787) 485-0820
Bankruptcy Case No.: 07-06153
Chapter 11 Petition Date: October 22, 2007
Court: District of Puerto Rico (Old San Juan)
Debtor's Counsel: Carmen D. Conde Torres, Esq.
254 San Jose Street 5th Floor
San Juan, PR 00901-1523
Tel: (787) 729-2900
Fax: (787) 729-2203
Estimated Assets: US$1 Million to US$10 Million
Estimated Debts: US$100,000 to US$500,000
Debtor's list of its 15 Largest Unsecured Creditors:
Entity Claim Amount
----------- ------------
Doral Bank US$52,887
P.O. Box 71394
San Juan, PR 00936
Banco Santander of PR US$30,620
P.O. Box 362589
San Juan, PR 00936-2589
AEE-Vega Alta US$25,454
P.O. Box 363508
San Juan, PR 00936-2598
Westernbank US$12,739
Land & Sea Distributing, Inc. US$9,300
AEE - Villa Clementina US$8,746
AEE - Plaza Alejandrino 8 US$4,352
AEE - Parguera US$3,747
AEE - Plaza Alejandrino US$2,988
Citicard US$1,571
BBVA US$1,486
The Hillman Group, Inc US$1,413
Citimortgage US$1,100
Equip Leasing US$885
AEE - Plaza Alejandrino 7 US$332
CELESTICA INC: Reports US$51.5 Mil. Third Quarter Net Earnings
--------------------------------------------------------------
Celestica Inc. has announced revenue of US$2,081 million for the
third quarter ended Sept. 30, 2007, down 13% from US$2,392
million in the third quarter of 2006.
Net earnings on a GAAP basis for the third quarter were US$51.5
million or US$0.22 per share, compared to GAAP net loss of
(US$42.1) million or (US$0.19) per share for the same period
last year. Included in the third quarter 2007 earnings are
restructuring charges of US$2.7 million compared to
restructuring charges of US$82.4 million in the third quarter
last year.
Adjusted net earnings for the quarter were US$29.3 million or
US$0.13 per share compared to adjusted net earnings of US$40.5
million or US$0.18 per share for the same period last year. The
term adjusted net earnings is defined as net earnings before
amortization of intangible assets, gains or losses on the
repurchase of shares and debt, integration costs related to
acquisitions, option expense, option exchange costs and other
charges, net of tax and significant deferred tax write-offs or
recovery. These results compare with the company's guidance for
the third quarter, announced on July 26, 2007, of revenue in the
range of US$2.0 billion to US$2.2 billion and adjusted net
earnings per share in the range of US$0.04 to US$0.12.
For the nine months ended Sept. 30, 2007, revenue was US$5,860
million compared to US$6,550 million for the same period in
2006. Net loss on a GAAP basis was (US$2.0) million or
(US$0.01) per share compared to net loss of (US$89.8) million or
(US$0.40) per share last year. Adjusted net earnings for the
first nine months of 2007 were US$25.1 million or US$0.11 per
share compared to adjusted net earnings of US$87.0 million or
US$0.38 per share for the same period in 2006.
"Our third quarter results reflect the significant progress we
are making with respect to the turnaround plans we put in place
at the beginning of this year," said Craig Muhlhauser, President
and Chief Executive Officer, Celestica.
"On a sequential basis, revenue grew 7%, operating margins
almost doubled, inventory turns improved to 8.3 and we generated
more than US$200 million in free cash flow. We are encouraged
by our progress to date and believe that significant opportunity
remains throughout the business. Although we continue to manage
through nearer-term volatility as we complete our turnaround
plans, our entire team remains confident in our ability to drive
further improvements as we strive to build a solid foundation
for Celestica's future growth and profitability."
Outlook
For the fourth quarter ending Dec. 31, 2007, the company expects
revenue to be in the range of US$2.0 billion to US$2.15 billion,
and adjusted net earnings per share to range from US$0.10 to
US$0.16.
About Celestica Inc.
Celestica Inc. (NYSE:CLS) -- http://www.celestica.com/--
provides innovative electronics manufacturing services. Its
global manufacturing and supply chain network, the company
delivers competitive advantage to companies in the computing,
communications, consumer, industrial, and aerospace and defense
end markets. Celestica operates a highly sophisticated global
manufacturing network with operations in Brazil, China, Ireland,
Italy, Japan, Malaysia, Philippines, Puerto Rico, and the United
Kingdom, among others.
* * *
As reported in the Troubled Company Reporter on May 4, 2007,
Moody's Investors Service downgraded Celestica Inc.'s corporate
family rating to B1 from Ba3 and the senior subordinated note
ratings to B3 from B2. Simultaneously, Moody's lowered the
company's speculative grade liquidity rating to SGL-2 from
SGL-1.
PRG-SCHULTZ: Completes Redemption of 9% Series A Pref. Stock
------------------------------------------------------------
PRG-Schultz International Inc. has completed the redemption of
its 9% Series A preferred stock, thus concluding the redemption
of all notes and preferred stock issued in the company's
Exchange Offer which closed in March 2006.
In the 2006 Exchange Offer the company offered a bundle of new
securities comprised of 11% Senior Notes due 2011, 10% Senior
Convertible Notes due 2011 and 9% Series A preferred stock in
exchange for US$125 million in principal amount of 4.75%
Convertible Subordinated Notes due November 2006.
The company initiated the redemption of all of the securities
issued in the 2006 Exchange Offer on Sept. 17, 2007. On
Oct. 4, 2007, the redemption date for the Senior Notes and the
Senior Convertible Notes, the company has redeemed all of its
outstanding Senior Notes for an aggregate amount of
approximately US$52.8 million, that all of the company's Senior
Convertible Notes were converted into shares of PRG-Schultz
common stock prior to the redemption date, and that the
remaining Senior Convertible Notes were redeemed for
approximately US$152 thousand.
The redemption date for the Series A preferred stock was
Oct. 19, 2007, and all of the outstanding shares of the
preferred stock were converted into shares of PRG-Schultz common
stock prior to this redemption date. The company redeemed the
remaining outstanding shares of preferred stock that did not
convert for an aggregate of approximately US$44 thousand, which
included dividends accrued on the Series A preferred stock to
the redemption date.
After the completion of the redemption of the Senior Notes, the
Senior Convertible Notes and the Series A preferred stock, the
company has total debt outstanding of US$45 million and has
approximately 21.5 million shares of common stock outstanding.
"The successful turnaround at PRG-Schultz was made possible by
the March 2006 acceptance by our noteholders, whose notes were
then due in November 2006, of our offer to exchange these notes
for a bundle of new securities not due until 2011," James B.
McCurry, the company's chairman, president and chief executive
officer, said. "We are therefore very pleased that the
turnaround which they made possible has allowed us to redeem the
new securities almost three and a half years sooner than
expected."
About PRG-Schultz International Inc.
Headquartered in Atlanta, PRG Schultz International Inc.
(NasdaqGM: PRGX) -- http://www.prgx.com/-- is a recovery audit
firm, providing clients throughout the world with value to
optimize and manage their business transactions. Using
proprietary software and expert audit methodologies, PRG
industry specialists review client purchases and payment
information to identify and recover overpayments.
The company has operations in Brazil, Mexico, and Puerto Rico.
* * *
As of June 30, 2007, the company's balance sheet showed total
assets of $114.4 million, total liabilities of $177.5 million,
and mandatorily redeemable participating preferred stock of
US$8.2 million, resulting in total stockholders' deficit of
US$71.3 million.
=================================
T R I N I D A D & T O B A G O
=================================
BRITISH WEST: Lower Court Ordered To Hasten Patterson Hearing
-------------------------------------------------------------
The Trinidad & Tobago Express reports that the Appeal Court has
ordered the Industrial Court to "fast-track" the hearing of a
case involving former British West Indies Airlines' area manager
Irenia Patterson.
According to The Express, the Industrial Court issued on
Dec. 29, 2006, an injunction to British West, two days before
the airline was closed down, to retain US$3.7 million in assets
after the Allied Communication and Aviation Workers Union filed
a case against the airline. According to the union, the
voluntary separation package that Ms. Patterson had been given
had been calculated based on her previous position as a sales
representative. Ms. Patterson said she was still owed almost
US$2 million in separation payments. After a status hearing of
the conflict in the Industrial Court on Jan. 15, 2007, the case
was moved to the Appeal Court in the same month.
British Airways' legal representatives claimed that the
Essential Services Division chairperson Cecil Bernard, who had
issued the injunction, reneged on his previous position that
British Airways would get a hearing on whether the injunction
should be discharged, The Express notes.
The Express relates that the Appeal Court found that British
West had acted prematurely. A judge said that the court was
satisfied from the "clear and unambiguous terms of the order
(from Bernard)" that the court intended to hear further
arguments from British West.
The case was referred back to the Industrial Court, The Express
says. British West's arguments on the injunction, initially set
for December 2007, be brought forward for hearing in the first
week of November 2007.
The reports says that British West will challenge the
injunction, with these reasons:
-- Ms. Patterson didn't fit the "legal definition" of
an employee, and thus the case could not be
properly considered a trade dispute; and
-- the case should have more appropriately been filed
in Ms. Patterson's home country, Jamaica.
British West Indies aka BWIA was founded in 1940, and for more
than 60 years had been serving the Caribbean islands from
Trinidad and Tobago, the hub of the Americas, linking the twin
island republic and many other Caribbean islands with North
America, South America, the United Kingdom and Europe.
The airline had reportedly been losing US$1 million a week due
to poor operational management. An employee survey revealed
that lack of responsibility by the management was a major issue
in the company. A number of key employees moved to other
companies caused by a deadlock in the airline's negotiation with
its labor union.
The Trinidad & Tobago government, which owns 97.188% of BWIA,
decided to shut down the airline on Dec. 31, 2006, and launch
the Caribbean Airlines.
HILTON HOTELS: Fitch Affirms & Withdraws Ratings Due to Merger
--------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn the debt ratings of
Hilton Hotels Corp. The affected ratings include:
-- Issuer Default Rating 'B'/Withdrawn;
-- Senior credit facility 'BB+'/Withdrawn;
-- Senior notes 'BB+'/Withdrawn;
The negative rating watch has been removed.
These actions are due to the closing of Hilton's merger with
affiliates of The Blackstone Group that was announced
July 3, 2007. Fitch will no longer provide ratings or
analytical coverage of this issuer.
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Australia, Austria, Barbados, Finland, India,
Indonesia, Trinidad and Tobago, Philippines and Vietnam.
HILTON HOTELS: Moody's Cuts Senior Unsecured Debt Rating to Caa1
----------------------------------------------------------------
Moody's Investors Service has downgraded Hilton Corporation's
Corporate Family Rating and senior unsecured ratings to B3 and
Caa1, respectively. All of Hilton's ratings will be withdrawn
due to lack of adequate information to maintain a rating.
Approximately 84% of Hilton's US$1.675 billion senior unsecured
public bonds were tendered for repayment pursuant to the
company's tender offers and consent solicitations. Various
supplemental indentures have been executed whereby substantially
all restrictive covenants, reporting requirements and certain
events of default were eliminated.
The downgrade reflects the closing of the leverage buy-out that
will result in weak credit metrics. Moody's estimates pro-forma
adjusted debt/EBITDA of about 12 times trailing EBITDA, and
EBITDA to interest marginally above 1.0. The rating on the
senior unsecured bonds reflects the application of Moody's Loss
Given default methodology based upon the company's post LBO
capital structure.
Moody's last rating action occurred on July 5, 2007 when the
company's ratings were placed on review for possible downgrade.
Ratings downgraded:
-- Corporate Family rating to B3 from Ba1
-- Probability of default to B3 from Ba1
-- Senior notes to Caa1, LGD 5, 76%
-- Senior bank credit facilities that were repaid to Caa1,
LGD5 76% from Ba1, LGD 4
-- Senior, subordinated and preferred shelf to (P) Caa1, LGD5,
76%, (P) Caa2, LGD6, 97%, (P) Caa2 LGD6, 97%, respectively
from (P) Ba1, LGD4, (P) Ba2, LGD 6, (P) Ba2, LGD 6,
respectively.
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Australia, Austria, Barbados, Finland, India,
Indonesia, Trinidad and Tobago, Philippines and Vietnam.
HILTON HOTELS: S&P Lifts Ratings on Eight Certificate Classes
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on eight
classes of commercial mortgage pass-through certificates from
Hilton Hotels Pool Trust's series 2000-HLT to 'AAA' due to the
full defeasance of a single fixed-rate whole loan.
The fixed-rate whole loan, which serves as trust collateral, was
fully defeased on Oct. 23, 2007. Before the defeasance, the
loan was secured by five cross-collateralized and cross-
defaulted Hilton hotels in San Francisco, California, Chicago,
Illinois, McLean, Virginia, Short Hills, New Jersey, and
Phoenix, Arizona. As part of the defeasance, the real estate
collateral securing the loan was released and replaced with
defeasance collateral. The defeasance collateral will provide a
revenue stream sufficient to pay each scheduled principal and
interest payment when due through Oct. 1, 2010, the maturity
date of the loan.
Ratings Raised
Hilton Hotels Pool Trust Commercial mortgage
pass-through certificates series 2000-HLT
Rating
------
Classes To From
------- -- ----
A-1 AAA AA
A-2 AAA AA
B AAA A
C AAA BBB-
D AAA BB+
E AAA BB
F AAA BB-
X AAA AA
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Australia, Austria, Barbados, Finland, India,
Indonesia, Trinidad and Tobago, Philippines and Vietnam.
HILTON HOTELS: S&P Withdraws Ratings After Blackstone Merger
-------------------------------------------------------------
Standard & Poor's Ratings Services has withdrawn its ratings on
Hilton Hotels Corp., including the 'BB-' corporate credit
rating, following the close of the company's merger with an
affiliate of The Blackstone Group's real estate and corporate
private equity funds. In addition, a significant amount of
Hilton's outstanding rated securities have been tendered
pursuant to its cash tender offers, or are expected to convert
pursuant to a supplemental indenture related to the convertible
securities. S&P's withdrawal of the 'BB+' rating on the
company's senior unsecured issues contemplated the refinancing
of these securities. Hilton does not expect to publicly file
financial statements going forward. Before its withdrawal, the
'BB-' corporate credit rating was on CreditWatch; it would
likely have been lowered to no higher than the 'B' category had
it remained in place.
Headquartered in Beverly Hills, California, Hilton Hotels Corp.
-- http://www.hilton.com/-- together with its subsidiaries,
engages in the ownership, management, and development of hotels,
resorts, and timeshare properties, as well as in the franchising
of lodging properties in the United States and internationally,
including Australia, Austria, Barbados, Finland, India,
Indonesia, Trinidad and Tobago, Philippines and Vietnam.
=============
U R U G U A Y
=============
* URUGUAY: State Power Company Buying Power from Brazilian Firms
----------------------------------------------------------------
Uruguayan state-run power firm UTE said in a statement that it
will buy 72 megawatts of power generated by Brazilian companies.
According to UTE's statement, the energy will flow through the
Rivera-Livramento power conversion unit.
A bidding for power supply was launched for Brazilian public and
private generators and power trading firms. Bids must be
presented tol Brazil's trading board CCEE in Sao Paulo by Nov.
8, 2007, Business News Americas relates.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 31, 2007, Fitch Ratings upgraded Uruguay's foreign currency
sovereign Issuer Default Rating to 'BB-' from 'B+', the local
currency IDR to 'BB' from 'BB-', and its country ceiling to
'BB+' from 'BB'. The Rating Outlook was Stable. Fitch affirmed
the short-term Issuer Default Rating at 'B'.
=================
V E N E Z U E L A
=================
CHRYSLER LLC: 55% UAW Workers Vote to Accept Tentative Pact
-----------------------------------------------------------
Results from four major Chrysler LLC plants in Michigan came in
in favor of a tentative labor contract between the carmaker and
the United Auto Workers union, tilting the ratification scale
towards the approval of the pact, Josee Valcourt and Neal E.
Boudette of the Wall Street Journal report citing people
familiar with the matter. Except for a union local in
Beldivere, Illinois, about 55% of the total vote count from 26
of 27 union locals has accepted the tentative agreement.
As reported in yesterday's Troubled Company Reporter, 78% of the
union members at Chrysler's assembly plant in Warren, Michigan,
accepted the contract, and 86% of workers at a metal stamping
plant in Sterling Heights, Michigan, voted yes. Both plants
have a total of 5,200 workers.
As previously reported, 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.
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.
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.
* VENEZUELA: Gets Ready to Face Arbitration with ConocoPhilips
--------------------------------------------------------------
The Venezuelan Government is willing to resort to international
arbitration with ConocoPhillips over the company's assets that
were seized as a result of the Orinoco's nationalization this
year, but preferring to reach an amicable solution in the short
term, various reports say.
ConocoPhillips Chief Executive Officer Jim Mulva told Reuters
that the company would likely seek arbitration in few weeks over
compensation for oil operations seized as part of President Hugo
Chavez's nationalization drive.
Mr. Mulva explained that to reach an amicable solution is the
main target, the same solution that Venezuelan Energy and
Petroleum Minister Rafael Ramirez wanted. However, Mr. Ramirez
said that in case of an arbitration, his country is ready, El
Universal reports.
Mr. Ramirez told reporters that they have been in discussion
regarding Mr. Mulva's statements about how they can reach an
amicable solution
"We are ready and we hope this situation can be resolved in the
short term," Reuters state, citing Mr. Ramirez.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 22, 2007, Fitch Ratings 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-'.
* 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 64.50
Argnt-Bocon PR13 2.000 3/15/24 ARS 68.03
Arg Boden 2.000 9/30/08 ARS 27.91
Argent-Par 0.630 12/31/38 ARS 43.32
CAYMAN ISLANDS
--------------
Vontobel Cayman 7.450 02/22/08 CHF 70.70
Vontobel Cayman 8.800 12/28/07 CHF 72.73
Vontobel Cayman 10.250 12/28/07 CHF 70.90
Vontobel Cayman 10.400 12/28/07 CHF 58.75
Vontobel Cayman 10.700 12/28/07 CHF 56.00
Vontobel Cayman 11.400 12/28/07 CHF 66.55
Vontobel Cayman 11.400 12/28/07 CHF 64.15
Vontobel Cayman 11.450 12/28/07 CHF 74.70
Vontobel Cayman 11.850 12/28/07 CHF 57.75
Vontobel Cayman 13.050 12/28/07 CHF 59.35
Vontobel Cayman 13.350 12/28/07 CHF 51.80
Vontobel Cayman 13.450 12/28/07 CHF 73.10
Vontobel Cayman 13.500 02/22/08 CHF 54.00
Vontobel Cayman 14.900 12/28/07 CHF 27.50
Vontobel Cayman 16.000 12/28/07 EUR 60.95
Vontobel Cayman 16.450 12/28/07 EUR 65.75
Vontobel Cayman 16.800 12/28/07 CHF 8.65
Vontobel Cayman 22.850 12/28/07 CHF 17.15
COLOMBIA
--------
Colombia Rep of 9.850 06/28/27 COP 9.64
JAMAICA
-------
Jamaica Govt. LRS 7.500 10/06/12 JMD 73.07
VENEZUELA
---------
Petroleos de Ven 5.250 4/12/17 US 73.70
Petroleos de Ven 5.375 4/12/27 US 63.07
Petroleos de Ven 5.500 4/12/37 US 60.92
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, and Pamella Ritah Jala, Editors.
Copyright 2007. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *