/raid1/www/Hosts/bankrupt/TCRLA_Public/071101.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
Thursday, November 1, 2007, Vol. 8, Issue 217
Headlines
A R G E N T I N A
BOATING SHOES: Trustee Filing General Report in Court Today
BUEN AYRE: Trustee Filing Individual Reports on Feb. 19
CEREALES SAN JOSE: Trustee Filing General Report Today
COLORIN INDUSTRIA: Moody's Arg Rates US$47-Million Notes at D
EDITORIAL LLAMOSO: Trustee Filing Individual Reports Today
EL RAPIDO: Proofs of Claim Verification Ends on Dec. 26
EMPLOYS SA: Trustee Filing Individual Reports Today
EMPRESA DISTRIBUIDORA: S&P Arg Puts B Rating on US$220-Mln Bond
F Y F: Proofs of Claim Verification Is Until Today
FIDEICOMISO FINANCIERO: Moody's Puts B2 Rating on Securities
FRANCISCO Y JOSE: Proofs of Claim Verification Ends Today
HILADO SA: Reorganization Proceeding Concluded
MASTER PARTS: Proofs of Claim Verification Deadline Is Feb. 28
MPM OBRAS: Trustee Filing Individual Reports on March 13, 2008
PETROBRAS ENERGIA: Bags Apaika Nenke Field Development Contract
POL AMBROSIO: Reorganization Proceeding Concluded
PROTAM SA: Proofs of Claim Verification Deadline Is Feb. 4, 2008
SOLGAS SA: Creditors Voting on Settlement Plan Today
TELECOM ARGENTINA: Allaria Ledesma Upgrades Firm's Shares to Buy
TEXTIL NOROESTE: Reorganization Proceeding Concluded
TOP NUT: Proofs of Claim Verification Ends Today
TOURS & TRAVEL: Proofs of Claim Verification Ends Today
B O L I V I A
* BOLIVIA: Obtains US$15-Million Financing from World Bank
B R A Z I L
BANCO DAYCOVAL: Earns BRL58.7 Million in Third Quarter 2007
BANCO NACIONAL: Board Okays BRL48.5-Million Loan to Lumitrans
BAUSCH & LOMB: Warburg Pincus Unit Completes Buy for US$4.5 Bil.
COMMSCOPE INC: Reports US$1.9 Million Third Quarter Net Income
DELPHI CORP: Amends Chapter 11 Reorganization Plan
DRESER-RAND GROUP: Earns US$21.3 Mil. for Quarter Ended Sept. 30
DRESSER-RAND GROUP: Inks Alliance Agreement with Repsol YPF
ENERGIAS DO BRASIL: Earns BRL130.6 Million in Third Quarter
GENERAL MOTORS: UBS Upgrades Firm's Shares To Buy from Sell
GERDAU SA: Starts Operating Acominas Unit's Second Blast Furnace
LAZARD LTD: Paying US$0.09 Per Share Quarterly Dividend
NOVELIS INC: Realm Communications Completes Rebranding
PERDIGAO SA: Signs Share Purchase Agreement with Eleva Alimentos
RHODIA SA: Halts Paracetamol Production at Roussillon Site
SCO GROUP: Court Approves Berger Singerman as Co-Counsel
SCO GROUP: Gets Court OK to Hire Pachulski Stang as Co-Counsel
* BRAZIL: Petrobras Inks Plant Supply Contract with Petroperu
C A Y M A N I S L A N D S
A&Q SELECT: Proofs of Claim Filing Ends Today
ASTPRELUDE FUND: Proofs of Claim Filing Deadline Is Today
ATLANTIC PACIFIC: Proofs of Claim Filing Is Until Nov. 2
BELMONT UNITED: Proofs of Claim Filing Deadline Is Today
BLACKSTONE PARTNERS: Proofs of Claim Filing Is Until Nov. 7
BLACKSTONE R: Proofs of Claim Filing Ends on Nov. 7
BLACKSTONE W: Proofs of Claim Filing Is Until Nov. 7
BOMBAY CO: Committee Can Hire Forshey & Prostok as Local Counsel
BOMBAY CO: Court Approves Cooley Godward as Panel's Lead Counsel
COLIN LUKE: Proofs of Claim Filing Ends Today
ELYSEE LIMITED: Proofs of Claim Filing Deadline Is Today
FRESH DEL MONTE: Earns US$29.9 Million in Quarter Ended Sept. 28
GALATEA FUND: Proofs of Claim Filing Deadline Is Nov. 14
GFIA-SHK MANAGERS: Proofs of Claim Filing Ends on Nov. 7
GOTTFRIED INT'L: Proofs of Claim Filing Deadline Is Nov. 15
LAKEPORT INVESTMENTS: Proofs of Claim Filing Is Until Today
ML CBO: Proofs of Claim Filing Is Until Today
PINE INVESTMENTS: Proofs of Claims Filing Ends Today
SAILFISH GLOBAL: Proofs of Claim Filing Ends Today
SMOKY RIVER: Proofs of Claim Filing Deadline Is Today
ST. ALBANS: Proofs of Claim Filing Is Until Nov. 15
SUPER H. LIMITED: Proofs of Claim Filing Deadline Is Today
TM PROPERTY: Proofs of Claim Filing Deadline Is Nov. 10
UNICORN GROUP: Proofs of Claim Filing Is Until Nov. 9
C H I L E
AES CORP: Prices Cash Tender Offer for Senior Notes
AES CORP: Seeking Regulators' Approval on 2 Gas Projects
COEUR D'ALENE: U.S. Court of Appeals Rejects Rehearing Request
C O L O M B I A
GOODYEAR TIRE: Earns US$668 Million for Third Quarter 2007
C O S T A R I C A
CAREY INT'L: Moody's Withdraws Ratings After Refinancing
D O M I N I C A N R E P U B L I C
ASHMORE ENERGY: Acquires 84.4% Interest on Jamaica Private
E C U A D O R
* ECUADOR: Awards Apaika Nenke Field Dev't Pact to Petrobras
* ECUADOR: Fitch Affirms & Removes Junk Ratings from Watch Neg.
E L S A L V A D O R
ALCATEL-LUCENT: Dresdner Kleinwort Maintains Buy Rating on Firm
ALCATEL-LUCENT: Pittsburgh Med Center US$277MM Deal on Sched.
G U A T E M A L A
BRITISH AIRWAYS: Ends Franchises with GB Airways & Loganair
TECO ENERGY: Fitch Places BB+ Ratings on Watch Positive
J A M A I C A
AIR JAMAICA: New Board To Discuss Airline's Financial Position
M E X I C O
AMERICAN AXLE: Reports Third Quarter Net Income of US$13.1 Mil.
GLOBAL POWER: Sells Braden's Asset to Prestige for US$575,000
HARMAN INTERNATIONAL: Declares US$0.0125 Per Share Dividend
HERBALIFE LTD: Paying US$0.20 Per Share Cash Dividend on Dec. 14
MOVIE GALLERY: US Trustee Amends Creditors Committee Composition
MOVIE GALLERY: Wants Lease Rejection Procedures Approved
MOVIE GALLERY: Wants to Perform Under Sopris Lock Up Agreement
SANMINA-SCI CORP: Posts US$1.1 Billion Net loss for FY 2007
UNITED STEEL: Paying 20 Cents Per Share Dividend on Dec. 10
P E R U
* PERU: Petroperu Inks Plant Supply Contract with Petrobras
P U E R T O R I C O
HUMANA INC: Teams w/ INSPIRIS To Provide Care in Daytona/Ormond
LIN TV: Inks MetroCast Deal for Broadcast Station Retransmission
STANDARD MOTOR: Earns US$206.2 Million for Third Quarter 2007
SUPERMERCADOS BONANZA: Case Summary & 35 Largest Unsec Creditors
U R U G U A Y
NAVIOS MARITIME: Net Income Up 116% to US$36.5 Mil. in 3rd Qtr.
V E N E Z U E L A
CHRYSLER LLC: Affirms UAW 2007 National Labor Agreement
CHRYSLER LLC: Appoints Douglas Betts as Vice President & CCO
PETROLEOS DE VENEZUELA: Unit Presenting 2008 Spending Plan
- - - - -
=================
A R G E N T I N A
=================
BOATING SHOES: Trustee Filing General Report in Court Today
-----------------------------------------------------------
Estudio Tisocco & Asociados, the court-appointed trustee for
Boating Shoes S.A.'s bankruptcy proceeding, will submit a
general report containing an audit of the company's accounting
and banking records in the National Commercial Court of First
Instance in Buenos Aires on Nov. 1, 2007.
Estudio Tisocco verified creditors' proofs of claim until
Aug. 9, 2007. The trustee presented the validated claims in
court as individual reports on Sept. 20, 2007.
Estudio Tisocco is also in charge of administering Boating
Shoes' assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Estudio Tisocco & Asociados
Viamonte 1570
Buenos Aires, Argentina
BUEN AYRE: Trustee Filing Individual Reports on Feb. 19
-------------------------------------------------------
Graciela Esther Palma, the court-appointed trustee for Buen Ayre
Transportes S.A.'s bankruptcy proceeding, will present the
validated claims as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
Feb. 19, 2008.
Ms. Palma verifies creditors' proofs of claim until
Dec. 3, 2007. She will submit a general report containing an
audit of Buen Ayre's accounting and banking records in court on
April 7, 2008.
Ms. Palma is also in charge of administering Buen Ayre's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Graciela Esther Palma
Avenida Cordoba 1351
Buenos Aires, Argentina
CEREALES SAN JOSE: Trustee Filing General Report Today
------------------------------------------------------
Pedro Rodriguez Oller, the court-appointed trustee for Cereales
San Jose S.A.'s bankruptcy proceeding, will present a general
report containing an audit of the company's accounting and
banking records in the the National Commercial Court of First
Instance in Bahia Blanca, Buenos Aires, on Nov. 1, 2007.
Mr. Oller verified creditors' proofs of claim until
Aug. 7, 2007. He presented the validated claims as individual
reports in court on Sept. 19, 2007.
Mr. Oller is also in charge of administering Cereales San Jose's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Cereales San Jose S.A.
Caronti 15, Bahia Blanca
Buenos Aires, Argentina
The trustee can be reached at:
Pedro Rodriguez Oller
D Orbigny 325, Bahia Blanca
Buenos Aires, Argentina
COLORIN INDUSTRIA: Moody's Arg Rates US$47-Million Notes at D
-------------------------------------------------------------
Moody's Argentina has rated Colorin Industria de Materiales
Sintet's US$47 million Obligaciones Negociables at D.
The rating action is based on the company's financial status at
June 30, 2007.
Colorin Industria de Materiales Sinteticos S.A. produces
industrial and automotive paint in Argentina, and markets its
products to the countries of Mercosur. The Company is a member
of Grupo Bisa.
EDITORIAL LLAMOSO: Trustee Filing Individual Reports Today
----------------------------------------------------------
Norberto Jorge Volpe, the court-appointed trustee for Editorial
Llamoso 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
Nov. 1, 2007.
Mr. Volpe verified creditors' proofs of claim until
Sept. 19, 2007. He will submit a general report containing an
audit of Editorial Llamoso's accounting and banking records in
court on Dec. 13, 2007.
Mr. Volpe is also in charge of administering Editorial Llamoso's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Norberto Jorge Volpe
Maipu 859
Buenos Aires, Argentina
EL RAPIDO: Proofs of Claim Verification Ends on Dec. 26
-------------------------------------------------------
Marcelo Dborkin, the court-appointed trustee for El Rapido SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until
Dec. 26, 2007.
Mr. Dborkin will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 50, 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 El Rapido 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 El Rapido's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Dborkin is also in charge of administering El Rapido's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
El Rapido SRL
Jose Hernandez 1780
Buenos Aires, Argentina
The trustee can be reached at:
Marcelo Dborkin
Avenida Callao 295
Buenos Aires, Argentina
EMPLOYS SA: Trustee Filing Individual Reports Today
---------------------------------------------------
Maria Cristina Agrelo, the court-appointed trustee for Employs
S.A.'s bankruptcy proceeding, will present the validated claims
as individual reports in the National Commercial Court of First
Instance in Buenos Aires on Nov. 1, 2007.
Ms. Agrelo verified creditors' proofs of claim until
Sept. 19, 2007. She will submit a general report containing an
audit of Employs' accounting and banking records in court on
Dec. 13, 2007.
Ms. Agrelo is also in charge of administering Employs' assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Employs S.A.
Lavalle 1570
Buenos Aires, Argentina
The trustee can be reached at:
Maria Cristina Agrelo
Viamonte 1365
Buenos Aires, Argentina
EMPRESA DISTRIBUIDORA: S&P Arg Puts B Rating on US$220-Mln Bond
---------------------------------------------------------------
S&P Argentina has assigned a B rating to Empresa Distribuidora
Norte S.A following the issuance of a bond for US$220 million
with annual fixed interest rate of 10.5% and due 2017.
S&P expects that the company will use the money to pay debt.
Edenor is the first argentine company to have issued debt in the
international market after the crisis.
The outlook is positive, reflecting the improvements done in the
funds of Edenor after an important increase on the rates applied
to clients.
Based in Buenos Aires, Argentina, Edenor is the largest
electricity distribution company in Argentina in terms of number
of customers and volume of energy sold. Edenor commenced
operations in 1992, as a result of the privatization of the
previously state-owned SEGBA. At that time, it was granted a
95-year concession to distribute electricity on an exclusive
basis in its concession area, the greater Buenos Aires
metropolitan area and northern portion of the City of Buenos
Aires. EASA, which is controlled by Dolphin Energia S.A., is
Edenor's holding company.
F Y F: Proofs of Claim Verification Is Until Today
--------------------------------------------------
Guillermo Rosendo Hernandez, the court-appointed trustee for F.
y F. S.R.L.'s bankruptcy proceeding, verifies creditors' proofs
of claim until Nov. 1, 2007.
Mr. Hernandez will present the validated claims in court as
individual reports on Dec. 17, 2007. The National Commercial
Court of First Instance in San Miguel de Tucuman, 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 F. y F. 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 F. y F.'s accounting
and banking records will be submitted in court on March 4, 2008.
Mr. Hernandez is also in charge of administering F. y F.'s
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
F. y F. S.R.L.
Colombia 249, San Miguel de Tucuman
Tucuman, Argentina
The trustee can be reached at:
Guillermo Rosendo Hernandez
Lavalle 971, San Miguel de Tucuman
Tucuman, Argentina
FIDEICOMISO FINANCIERO: Moody's Puts B2 Rating on Securities
------------------------------------------------------------
Moody's Latin America has assigned a rating of A1.ar (Argentine
National Scale) and of B2 (Global Scale, Local Currency) to the
debt securities of Fideicomiso Financiero Aval Rural VI issued
by Banco de Valores S.A. -- acting solely in its capacity as
Issuer and Trustee.
The rated securities are backed by a pool of bills of exchange
signed by agricultural producers in Argentina. The bills of
exchange are guaranteed by Aval Rural S.G.R., which is a
financial guarantor in Argentina. Aval Rural has a rating of
A1.ar (Argentine National Scale) and of B2 (Global Scale, Local
Currency).
The rating assigned to this transaction is primarily based on
the rating of Aval Rural. Therefore, any future change in the
rating of the guarantor may lead to a change in the rating
assigned to this transaction.
Banco de Valores S.A. issued one class of debt securities
denominated in US dollars. The rated securities will bear a
9.75% annual interest rate.
The rated securities will be repaid from cash flow arising from
the assets of the Trust, comprised of a pool of fixed rate bills
of exchange denominated in US dollars, guaranteed by Aval Rural
S.G.R.; and by sales agreements of grain signed between the
producers and the exporter Nidera S.A. The bills of exchange
will bear the same interest rate as the rated securities.
Although the rated securities (and the bills of exchange) are
denominated in US dollars, they are payable in Argentine pesos
at the exchange rate published by Banco de la Nacion Argentina
as of the day prior to the date that the funds are initially
deposited into the Trust account. As a result, the dollar is
used as a currency of reference and not as a mean of payment.
For that reason, the transaction is considered to be denominated
in local currency.
If, eight days before each payment date, the funds on deposit in
the trust account are not sufficient to make payments to
investors, the Trustee is obligated to request Aval Rural to
make payment under the bills of exchange. Aval Rural, in turn,
will have five days to make this payment into the trust account.
Under the terms of the transaction documents, the trustee has up
to two days to distribute interest and principal payments to
investors. Interest on the securities will accrue up to the
date on which the funds are initially deposited by either Aval
Rural, the exporter, or the individual producers into the Trust
account.
US$5,246,500 in Fixed Rate Debt Securities of "Fideicomiso
Financiero Aval Rural VI," rated A1.ar (Argentine National
Scale) and B2 (Global Scale, Local Currency).
FRANCISCO Y JOSE: Proofs of Claim Verification Ends Today
---------------------------------------------------------
Natalio Kinsbrunner, the court-appointed trustee for Francisco y
Jose Mazzotta S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Nov. 1, 2007.
Mr. Kinsbrunner will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 1 in Buenos Aires, with the assistance of Clerk
No. 2, 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 Francisco y Jose 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 Francisco y Jose's
accounting and banking records will be submitted in court.
Infobae didn't say the reports submission deadlines.
Mr. Kinsbrunner is also in charge of administering Francisco y
Jose's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Francisco y Jose Mazzotta Sociedad Anonima
Teniente General Juan Domingo Peron 3350
Buenos Aires, Argentina
The trustee can be reached at:
Natalio Kinsbrunner
Marcelo T. de Alvear 1671
Buenos Aires, Argentina
HILADO SA: Reorganization Proceeding Concluded
----------------------------------------------
Hilado 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 La Rioja approved the debt agreement signed between
the company and its creditors.
MASTER PARTS: Proofs of Claim Verification Deadline Is Feb. 28
--------------------------------------------------------------
Claudio Jorge Haimovich, the court-appointed trustee for Master
Parts S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until Feb. 28, 2008.
Mr. Haimovich will present the validated claims in court as
individual reports on April 16, 2008. The National Commercial
Court of First Instance in Buenos Aires, Argentina, 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 Master Parts 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 Master Parts'
accounting and banking records will be submitted in court on
March 4, 2008.
Mr. Haimovich is also in charge of administering Master Parts'
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Claudio Jorge Haimovich
Maipu 267
Buenos Aires, Argentina
MPM OBRAS: Trustee Filing Individual Reports on March 13, 2008
--------------------------------------------------------------
Marina Fernanda Tynik, the court-appointed trustee for M.P.M.
Obras Civiles S.A.'s bankruptcy proceeding, will present the
validated claims as individual reports in the National
Commercial Court of First Instance in Buenos Aires on
March 13, 2008.
Ms. Tynik verifies creditors' proofs of claim until
Dec. 28, 2007. She will submit a general report containing an
audit of M.P.M. Obras' accounting and banking records in court
on April 29, 2008.
Ms. Tynik is also in charge of administering M.P.M. Obras
Civiles S.A.'s assets under court supervision and will take part
in their disposal to the extent established by law.
The trustee can be reached at:
Marina Fernanda Tynik
Avenida Rivadavia 10.444
Buenos Aires, Argentina
PETROBRAS ENERGIA: Bags Apaika Nenke Field Development Contract
---------------------------------------------------------------
Petrobras Energia SA has been awarded an environmental license
to develop the Apaika Nenke field on block 31 in Ecuador,
Business News Americas reports.
The company said that it is performing economic feasibility
studies on the block in the northeast of Ecuador, the same
report adds.
"The project concept was based on the use of modern exploration
and production techniques, nature preservation and social
aspects in strict compliance with the Ecuadorian regulatory
requirements," Petrobras told BNamericas.
The project is part of Ecuador's Environmental Improvement
Scheme that was approved in December 2006.
Petrobras Energia, S.A. is headquartered in Buenos Aires,
Argentina. Its majority owner, Petrobras, is based in Rio de
Janeiro, Brazil.
* * *
As reported on Oct. 29, 2007, Moody's Investors Service 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.
POL AMBROSIO: Reorganization Proceeding Concluded
-------------------------------------------------
Pol Ambrosio 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 La Rioja approved the debt agreement signed between
the company and its creditors.
PROTAM SA: Proofs of Claim Verification Deadline Is Feb. 4, 2008
----------------------------------------------------------------
Juan Roque Treppo, the court-appointed trustee for Protam SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
Feb. 4, 2008.
Mr. Treppo will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 6 in Buenos Aires, with the assistance of Clerk
No. 12, 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 Protam 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 Protam's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Treppo is also in charge of administering Protam's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Protam SA
Alicia Moreau de Justo 1080
Buenos Aires, Argentina
The trustee can be reached at:
Juan Roque Treppo
Sarmiento 1183
Buenos Aires, Argentina
SOLGAS SA: Creditors Voting on Settlement Plan Today
----------------------------------------------------
Solgas SA's creditors will vote on a settlement plan that the
company will lay on the table on Nov. 1, 2007.
Maria del Carmen Massa, the court-appointed trustee for Solgas'
reorganization proceeding, verified creditors' proofs of claim
until Feb. 23, 2007. She presented the validated claims in a
court in Salta as individual reports on April 10, 2007. She
also submitted a general report containing an audit of Solgas
SA's accounting and banking records on May 23, 2007.
The trustee can be reached at:
Maria del Carmen Massa
Avenida Belgrano 663
Salta, Argentina
TELECOM ARGENTINA: Allaria Ledesma Upgrades Firm's Shares to Buy
----------------------------------------------------------------
Argentine brokerage Allaria Ledesma said in a statement that it
has upgraded Telecom Argentina's shares to buy from hold due to
a recent fall in the company's share price.
Business News Americas relates that Allaria Ledesma has
maintained Telecom Argentina's target price for the end of 2008
at ARS18.
Allaria Ledesma told BNamericas that the mobile sector is still
Telecom Argentina's main business. Telecom Argentina has
recovered the margins in the mobile segment in the last quarter.
Allaria Ledesma analyst Guido Bizzozero commented to BNamericas,
"We expect the company to continue registering increasing
results with higher margins."
Telecom Argentina would concentrate chiefly on increasing Ebitda
by offering more value added services to its clients, rather
than expanding the base in a market that already has high mobile
telephony penetration, BNamericas states, citing Mr. Bizzozero.
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-line
operator for local and long-distance services in northern and
southern Argentina. It also provides cellular and PCS phone
services in Argentina, as well as in Paraguay through a 68%
stake in Nocleo. France Telecom formerly controlled the company
through its Nortel Inversora venture with Telecom Italia.
France Telecom sold most of its stake in 2003 to the Werthein
Group, an Argentine agricultural concern owned in part by vice
chairman Gerardo Werthein. Nortel continues to be Telecom
Argentina's largest shareholder with a 55% stake. Nortel is
owned by Sofora, a consortium owned by Telecom Italia (50%), the
Werthein Group (48%), and France Telecom (2%).
* * *
As reported on Oct 11, 2006, Standard & Poor's Ratings Services
raised Telecom Argentina S.A.'s counterparty credit rating to
B+/Stable/ from B/Stable following the upgrade of the Republic
of Argentina to 'B+' from 'B'.
TEXTIL NOROESTE: Reorganization Proceeding Concluded
----------------------------------------------------
Textil Noroeste 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 La Rioja approved the debt agreement signed
between the company and its creditors.
TOP NUT: Proofs of Claim Verification Ends Today
------------------------------------------------
Ines Etelvina Clos, the court-appointed trustee for Top Nut
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Nov. 1, 2007.
Ms. Clos will present the validated claims in court as
individual reports on Dec. 13, 2007. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Top Nut 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 Top Nut's accounting
and banking records will be submitted in court Feb. 21, 2008.
Ms. Clos is also in charge of administering Top Nut's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Top Nut S.A.
Uruguay 651
Buenos Aires, Argentina
The trustee can be reached at:
Ines Etelvina Clos
Sarmiento 944
Buenos Aires, Argentina
TOURS & TRAVEL: Proofs of Claim Verification Ends Today
-------------------------------------------------------
Alfredo O. Audicio, the court-appointed trustee for Tours &
Travel S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim on Nov. 1, 2007.
Mr. Audicio will present the validated claims in court as
individual reports on Dec. 14, 2007. The National Commercial
Court of First Instance in Mendoza 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 Tours & Travel 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 Tours & Travel's
accounting and banking records will be submitted in court on
March 3, 2008.
Mr. Audicio is also in charge of administering Tours & Travel's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Alfredo O. Audicio
Ciudad de la Paz 1564
Buenos Aires, Argentina
=============
B O L I V I A
=============
* BOLIVIA: Obtains US$15-Million Financing from World Bank
----------------------------------------------------------
The World Bank's Board of Directors has approved a US$15 million
loan on Bolivia to establish a decentralized land distribution
system that allows organized landless or poor farmers to acquire
agricultural lands and implement investment subprojects that
will help them to improve their income and living standards.
The project will benefit around 2,200 poor rural families, which
represents roughly 20 percent of the total number of families
nationwide which have existing requests for land allocations
with the Government
According to David Tuchschneider, World Bank acting Country
Manager in Bolivia. "The project targets a mostly indigenous
group of extremely poor people in the eastern lowlands, one of
Bolivia's most productive regions"
The Land for Agricultural Development Project contributes to
rural poverty reduction in Bolivia, by improving access to land;
the implementation of productive investment subprojects to help
consolidate the newly acquired farms; and the generation of an
income stream from increased value of agricultural production
sufficient to pay for land and increase living standards.
Specifically, the loan will support Bolivia Government's
objectives by:
The financing of land purchases and potentially loan-term leases
in the future through a line of credit managed by the Productive
Development Bank and executed by local financial institutions.
The provision of matching grants for infrastructure and
productive investments on the acquired lands (US$8.5 million
approximately).
Providing technical assistance, monitoring and evaluation.
This US$15 million is a standard International Development
Association credit with a maturity of 35 years.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
BANCO DAYCOVAL: Earns BRL58.7 Million in Third Quarter 2007
-----------------------------------------------------------
Banco Daycoval said in its earnings release that its net profits
increased 103% to BRL58.7 million in the third quarter 2007,
from the third quarter 2008.
Business News Americas relates that the third quarter result
excludes BRL1.4 million in expenses from Banco Daycoval's
initial public offering earlier this year.
In the first nine months of 2007, Banco Daycoval's net profit
rose 169% to BRL169 million, compared to the same period last
year, BNamericas notes.
According to BNamericas, Banco Daycoval's loan portfolio grew
98.4% to BRL2.83 billion in the 12 months ended September 2007,
from the same period last year.
Banco Daycoval started trading in the Brazilian stock exchange
Bovespa on June 29, 2007, BNamericas states.
Banco Daycoval, a Brazilian midsize bank, was founded in 1989.
It operates 15 branches concentrated in the south and southeast
of the country. Its main business is commercial lending to
small and medium enterprises, with a diversified portfolio in
agribusiness, automotives, commerce, foods, financial services,
general services, manufacturing, and textiles. Banco Daycoval
established its trade finance department in 1995 to satisfy the
increasing demand for trade finance instruments.
As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Standard & Poor's Ratings Services removed its
long-term counterparty credit rating on Banco Daycoval S.A. from
CreditWatch Positive, where it was placed on June 11, 2007, and
raised the rating to 'BB-'. At the same time, S&P affirmed its
'B' short-term counterparty credit rating on the bank. S&P said
the outlook is stable.
BANCO NACIONAL: Board Okays BRL48.5-Million Loan to Lumitrans
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES'
board approved a financing of BRL48.5 million to Lumitrans
Companhia Transmissora de Energia Eletrica. The Bank support
aims at adjusting the substations in Machadinho, State of Rio
Grande do Sul, and Campos Novos, State of Santa Catarina, in
addition to the construction of a 525 kV transmission line, with
an extension of 51 kilometers, interlinking the two substations.
As this is an indirect operation, the funds will be transferred
through a syndicate of banks, headed by Unibanco and including
Itau BBA and Banco Regional de Desenvolvimento do Extremo Sul.
BNDES financing is equivalent to 53.7% from a total investment
of BRL90.4 million.
Lumitrans is a Specific Purpose Enterprise organized for
implementation and operation of a transmission line connecting
the municipalities of Machadinho and Campos Novos. The company
obtained this concession by winning the 2003 auction, sponsored
by Agencia Nacional de Energia Eletrica, and the transmission
line started operating last September. BNDES waited for the
completion of changes in stock control to approve the financing.
The investments generated 209 direct jobs, of which 450 in the
peak of works. The significant effect of the project is mainly
indirect, by means of improvements in the energetic
infrastructure of the regions supplied, which will be an
incentive for the development of new endeavors and,
consequently, for an increase in the offer of jobs and for the
improvement to the conditions of life of the population.
In the areas directly affected by the works, there was a heating
in the local economy, due to an increase in direct and indirect
jobs; to a higher demand of goods and services, through the
development of small establishments, especially at the cities to
be used as work field or logistic support; and to an increase in
municipal tax collections, which will allow new investments by
local city halls.
Since 2003, BNDES has already approved 27 operations to
transmission projects, including STC's, which amount to 9.3
thousand kilometers. The financings totalized BRL5.6 billion,
allowing for a total investments of BRL9.3 billion.
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.
BAUSCH & LOMB: Warburg Pincus Unit Completes Buy for US$4.5 Bil.
----------------------------------------------------------------
Affiliates of Warburg Pincus have completed the acquisition of
Bausch & Lomb Inc. for a total purchase price of approximately
US$4.5 billion, including approximately US$830 million of debt.
"With a strong and supportive partner in Warburg Pincus, we are
well-positioned to create new opportunities for Bausch & Lomb
and advance our leadership in the eye health industry," Ronald
L. Zarrella, chairman and CEO of Bausch & Lomb, said. "Our
customers will continue to receive high levels of service,
product quality and innovation, and our commitment to serving
their needs remains steadfast. On behalf of Bausch & Lomb's
management and Board of Directors, I want to thank our
shareholders and hard-working employees for their support
throughout this process."
"We're delighted to be partners with Bausch & Lomb, a global
leader in vision care, ophthalmic devices and pharmaceuticals,"
Elizabeth H. Weatherman, a Warburg Pincus Managing Director,
said. "We look forward to helping the company build upon its
rich heritage and premier brand in ophthalmology."
Bausch & Lomb stock will cease to trade on the New York Stock
Exchange at market close on October 26 and will be delisted.
Under the terms of the agreement, Bausch & Lomb shareholders are
entitled to receive US$65.00 in cash for each share of Bausch &
Lomb common stock that they hold. Letters of transmittal
allowing Bausch & Lomb shareholders of record to deliver their
shares to the paying agent in exchange for payment of the merger
consideration will be distributed shortly after the closing.
Shareholders of record should be in receipt of the letter of
transmittal before surrendering their shares. Shareholders who
hold shares through a bank or broker will not have to take any
action to have their shares converted into cash, as such
conversions will be handled by the bank or broker.
Morgan Stanley acted as financial advisor to the Special
Committee of the Bausch & Lomb Board of Directors and delivered
a fairness opinion to the Special Committee. Wachtell Lipton
Rosen & Katz acted as legal counsel to the Special Committee in
this transaction. Banc of America, Citi, Credit Suisse and
JPMorgan served as financial advisors to Warburg Pincus and
arranged the debt financing for the transaction, and Cleary
Gottlieb Steen & Hamilton LLP acted as legal advisor to Warburg
Pincus.
About Bausch & Lomb
Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE:
BOL) -- http://www.bausch.com/-- develops, manufactures, and
markets eye health products, including contact lenses, contact
lens care solutions, and ophthalmic surgical and pharmaceutical
products. The company is organized into three geographic
segments: the Americas; Europe, Middle East, and Africa; and
Asia (including operations in India, Australia, China, Hong
Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan
and Thailand). In Latin America, the company has operations in
Brazil and Mexico. In Europe, the company maintains operations
in Austria, Germany, the Netherlands, Spain, and the United
Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 31, 2007, Moody's Investors Service has confirmed and will
withdraw Bausch & Lomb Incorporated's Ba1 Corporate Family
Rating, Ba1 Probability of Default Rating and Ba1 ratings on
certain existing senior unsecured notes. The rating outlook was
revised to stable and will be withdrawn.
COMMSCOPE INC: Reports US$1.9 Million Third Quarter Net Income
--------------------------------------------------------------
CommScope, Inc.has reported sales of US$513.6 million and net
income of US$60.3 million, or US$0.81 per diluted share for the
third quarter of 2007. For the third quarter of 2006, CommScope
reported sales of US$466.1 million and net income of US$43.6
million, or US$0.61 per diluted share. The reported net income
for the third quarter of 2006 included after-tax charges of
US$1.9 million related to restructuring costs. Excluding this
special item, adjusted third quarter 2006 earnings were US$45.5
million, or US$0.64 per diluted share.
"We are pleased to deliver another strong quarter as all of our
operating segments continue to benefit from the global demand
for bandwidth," said CommScope Chairman and Chief Executive
Officer, Frank M. Drendel. "We believe that video, data
intensive applications, mobility and dynamic websites create an
ongoing need for infrastructure solutions for communication
networks. With our acquisition of Andrew Corporation on track to
be completed by the end of this year, we believe that CommScope,
as a global leader in 'last mile' infrastructure solutions, will
be solidly positioned to continue to benefit from these long-
term trends," Mr. Drendel added.
Sales Overview
Sales for the third quarter of 2007 increased 10.2 percent year
over year, primarily driven by increased volume in all three
segments, with particular strength in the Carrier segment.
Enterprise segment sales rose 1.1 percent year over year to
US$240.4 million, primarily due to higher sales volume.
Enterprise revenues grew slightly year over year despite
unusually strong third quarter 2006 sales. Sales in the third
quarter of 2006 had been positively affected by a particularly
strong backlog coming into the year-ago quarter. This backlog
resulted from longer lead times associated with the company's
global manufacturing initiatives and volatile raw material
costs.
CommScope announced price increases on selected Enterprise cable
and apparatus late in the third quarter of 2007 in response to
higher costs. The company expects limited revenue and gross
margin benefit from these price increases during the fourth
quarter of 2007.
Broadband segment sales rose 12.1 percent year over year to
US$161.2 million, primarily due to higher sales volumes,
particularly in the Central and Latin American region, and the
positive impact of the Signal Vision, Inc. acquisition, which
closed on May 1, 2007. Competition between domestic Multiple
System Operators and domestic wireline carriers continues to
drive investment by Multiple System Operators in their networks.
Carrier segment sales increased 32.1 percent year over year to
US$112.3 million. These robust sales result from strong growth
in all Carrier product areas. CommScope's Integrated Cabinet
Solutions increased as large domestic wireline carriers continue
to deploy electronics deeper in their networks to offer higher
bandwidth broadband and video services. Strong international
sales growth of CommScope's Extremeflex(R) smooth wall aluminum
cables to major wireless carriers also drove Carrier
performance.
Total international sales for the third quarter of 2007 rose
19.0 percent year over year to US$168.5 million, or
approximately 32.8 percent of total company sales.
External orders booked in the third quarter of 2007 were
US$482.3 million, up 25.4 percent from the year-ago quarter.
Andrew Acquisition
On June 27, 2007, CommScope and Andrew Corporation (NASDAQ:
ANDW) announced a definitive agreement, unanimously approved by
both companies' respective Boards of Directors, under which
CommScope will acquire all of the outstanding shares of Andrew
for US$15.00 per share, at least 90 percent in cash. The
combined company will be a global leader in infrastructure
solutions for communications networks, including structured
cabling solutions for the business enterprise; broadband cable
and apparatus for cable television applications; and antenna and
cable products, base station subsystems, coverage and capacity
systems, and network solutions for wireless applications.
"As we approach the closing of the Andrew acquisition, we are
increasingly excited about the prospects of combining our
talented work forces and extensive portfolios of 'last mile'
solutions," Mr. Drendel stated. "We continue to believe that
cost reductions, growth opportunities and other synergies
inherent in this combination will drive increased value for our
stockholders. We have been working with our colleagues at
Andrew on integration planning and we believe that once this
transaction is completed, we will be well-prepared to begin
integrating our two industry leading organizations."
The total transaction value is approximately US$2.6 billion,
based on Andrew's estimated 176 million shares outstanding on a
fully diluted basis, which includes shares associated with
Andrew's existing convertible notes. CommScope expects to fund
the cash portion of the purchase price through a combination of
new credit facilities and available cash on hand. CommScope has
obtained customary fully underwritten debt financing commitment
letters from Bank of America and Wachovia Bank, N.A. (and their
respective affiliates). The transaction is not conditioned on
receipt of financing by CommScope.
The transaction is subject to completion of customary closing
conditions, including effectiveness of a registration statement
on Form S-4, approval by Andrew's stockholders, clearance under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, and any other applicable laws or regulations. As
previously announced, on Aug. 16, 2007, CommScope and Andrew
received requests for additional information from the Antitrust
division of the U.S. Department of Justice. CommScope and
Andrew have been cooperating fully with the DOJ. The companies
continue to expect to close the transaction before the end of
2007.
Other Third Quarter Highlights
-- As part of CommScope's continued cost management
initiatives, a vacant 400,000 square foot warehouse along
with 22 acres in Omaha, Nebraska and a vacant 150,000 square
foot manufacturing facility in Scottsboro, Alabama were sold
for approximately US$11 million.
-- CommScope and Axis Communications announced an alliance to
provide converged security solutions for intelligent
buildings. CommScope believes combining the strengths of
its global leadership in Enterprise infrastructure with Axis
Communications' unique expertise and global leadership in
IP-based video surveillance should help deliver customers
exceptional intelligent building solutions.
-- CommScope's Carrier segment extended its product portfolio
through several product introductions, including the new
quieter 52 Universal Cabinet Series designed for residential
applications and the 30EC Modular Battery Cabinet designed
as a reserve power storage system capable of using multiple
vendors' batteries, which supports increased DSL capacity in
previously deployed systems.
-- Gross margin for the third quarter of 2007 was 31.0 percent,
up approximately 100 basis points year over year. The gross
margin improvement was primarily due to higher sales levels
and a more favorable mix.
-- SG&A expense for the third quarter of 2007 was US$69.4
million or 13.5 percent of sales, compared to US$62.8
million or 13.5 percent of sales in the year-ago quarter.
SG&A expense grew primarily due to higher sales levels and
spending to support and expand global sales initiatives.
-- Third quarter 2007 results include US$2.7 million of pretax
equity-based compensation expense in accordance with SFAS
No. 123( R ).
-- Operating income for the third quarter of 2007 increased 25
percent year over year to US$81.4 million, or 15.8 percent
of sales. In the year-ago quarter, operating income was
US$64.9 million, or 13.9 percent of sales. Excluding
restructuring costs in the year ago quarter, operating
income would have been US$67.9 million, or 14.6 percent of
sales.
-- Total depreciation and amortization expense was US$12.4
million for the third quarter of 2007.
-- Net cash provided by operating activities in the third
quarter of 2007 was US$80.7 million. Capital spending in
the quarter was US$7.0 million.
Outlook
CommScope management provided the following guidance for the
fourth quarter, calendar year 2007 and calendar year 2008
without giving effect to the proposed acquisition of Andrew.
Fourth Quarter and Calendar Year 2007
For the fourth quarter of 2007, revenue is expected to be
US$420-US$440 million, up approximately 7 percent to 12 percent
year over year, and operating income should rise by 20 percent
to 40 percent year over year, based on the expected operating
margin of 11.0 percent to 12.0 percent, excluding special items.
"Consistent with historical patterns, we expect lower sequential
sales as we move into the seasonally slower fourth quarter,"
stated CommScope Executive Vice President and Chief Financial
Officer, Jearld Leonhardt. "Again this year, we expect lower
sales of ICS products in the fourth quarter to be followed by a
robust recovery in the first quarter of 2008."
Based on the fourth quarter 2007 financial guidance, sales for
calendar year 2007 are expected to be approximately US$1.89-
US$1.91 billion, up approximately 16 percent to 17 percent year
over year. Operating margin for calendar year 2007 is estimated
to be 14.75 percent to 15.0 percent, excluding special items.
Calendar year 2007 capital spending is expected to be
approximately US$24-US$27 million.
The company's previous calendar year 2007 guidance was sales of
US$1.90 - US$1.94 billion and operating margin of 15.25 percent
to 15.50 percent, excluding special items.
Calendar Year 2008
For calendar year 2008, CommScope expects modest sales and
operating income growth assuming relative stability in the
business environment and raw material costs. The company
intends to provide calendar-year 2008 guidance after it closes
the Andrew transaction and completes its planning for the
combined business. Excluding intangible amortization,
transition and any other nonrecurring items, and including
synergies, the company expects the transaction with Andrew to be
accretive to its 2008 results.
About CommScope
Based in Hickory, North Carolina, CommScope, Inc. (NYSE:CTV)
-- http://www.commscope.com/-- designs and manufactures "last
mile" cable and connectivity solutions for communication
networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R)
Solutions brands CommScope is the global leader in structured
cabling systems for business enterprise applications. It is
also the world's largest manufacturer of coaxial cable for
Hybrid Fiber Coaxial applications. Backed by strong research
and development, CommScope combines technical expertise and
proprietary technology with global manufacturing capability to
provide customers with high-performance wired or wireless
cabling solutions.
CommScope has facilities in Brazil, Australia, China and
Ireland.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 19, 2007, Standard & Poor's Ratings Services has affirmed
its ratings on CommScope Inc. and Andrew Corp. and removed them
from CreditWatch, where they were placed on June 27, 2007, with
negative implications. S&P also affirmed the 'BB-' corporate
credit and 'B' subordinated debt ratings for both companies.
The ratings on Andrew will be withdrawn following its
acquisition and debt refinancing. S&P said outlook is stable.
DELPHI CORP: Amends Chapter 11 Reorganization Plan
--------------------------------------------------
Delphi Corp., on Oct. 30, 2007, filed potential amendments to
its Joint Plan of Reorganization and related Disclosure
Statement with the U.S. Bankruptcy Court for the Southern
District of New York. The notice of potential amendments was
filed in accordance with a timetable established by the
Bankruptcy Court for the resumption on Nov. 8, 2007 of the
Disclosure Statement hearing commenced earlier this month on
Oct. 3, 2007. The filing, which remains subject to further
amendment by the company on Nov. 7, pursuant to the Bankruptcy
Court's scheduling order, also included amendments to the Global
Settlement Agreement and Master Restructuring Agreement between
Delphi and General Motors Corp. and to the Investment Agreement
with Delphi's Plan Investors which are led by an affiliate of
Appaloosa Management L.P.
Delphi also filed a separate motion seeking approval of the
proposed amendment to the Investment Agreement at the
Nov. 8, 2007 hearing. The proposed Investment Agreement
amendment, which has been executed by Appaloosa and a
supermajority of the Plan Investors, is subject to the
satisfaction of various conditions including Appaloosa's
approval of exit financing terms under discussion with the
company's principal lead lenders and execution of the amendment
by one additional plan investor prior to the Nov. 8 hearing.
"Last evening's filings represent further substantial progress
in our Chapter 11 cases in a challenging capital markets
environment," said John Sheehan, Delphi vice president and chief
restructuring officer. "These very focused potential amendments
reflect current market conditions, commensurate changes to our
proposed emergence capital structure and form of plan currency
contemplated for stakeholder distributions, and an effective
reduction of less than five percent in plan value to reflect
macroeconomic and industry conditions and uncertainties."
The potential amendments contemplate an approximate US$2 billion
reduction in the company's net debt at emergence. Further, the
potential amendments reflect reductions in stakeholder
distributions to some junior creditors and interest holders
required to obtain consensus among Delphi's Creditors'
Committee, Plan Investors and settling parties, and changes
required by our Plan Investors and settling parties to obtain
their endorsement of the Plan and Disclosure Statement, the
company's settlements with GM and its US labor unions, the
company's emergence business plan and related agreements.
The potential amendments filed by the company include changes to
the Plan Investors' direct investment and certain stakeholder
recoveries:
Party Original Plan Potential Amendment
----- ------------- -------------------
Plan Direct Investment Direct Investment
Investors
* Purchase US$400MM. * Purchase US$400MM
of preferred stock of preferred stock
convertible at an convertible at an
assumed enterprise assumed enterprise
value of US$11.75B value of US$10.80B
* Purchase US$400MM * Purchase US$400MM
of preferred stock of preferred stock
convertible at an convertible at an
assumed enterprise assumed enterprise
value of US$12.80B value of US$11.80B
* Purchase US$175MM * Purchase US$175MM
of New Common Stock of New Common Stock
at an assumed plan at an assumed plan
value of US$12.8B value of US$11.8B
GM Recovery of US$2.7B Recovery of US$2.7B
* US$2.7B in Cash * US$750MM in Cash
* US$750MM in second
lien note
* US$1.2B in junior
conv. preferred
stock
Unsecured Par + accrued recovery Par + accrued recovery
Creditors at Plan value of US$13.9B at Plan value of
US$13B
* 80% in New Common * 92.4% in New Common
Stock valued stock valued at
at US$45 per share US$41.58 per share
* 20% in Cash * 7.6% through prorata
participation in the
Discount Rights
Offering at
US$34.98 per share
TOPrS Par + accrued recovery Par only recovery at
at Plan value of US$13.9B Plan value of
US$13.0B
* 100% in New Common * 92.4% in New Common
Stock valued at Stock valued at
US$45 per share US$41.58 per share
* 7.6% through prorata
participation in the
Discount Rights
Offering at
US$34.98 per share
Existing Par Value Rights Par Value Rights
Common
Stockholders * Right to acquire * Right to acquire
approx. 12,711,111 approx. 12,711,111
shares of New Common shares of New Common
Stock at a purchase Stock at a purchase
price of US$45.00 price of US$41.58
per share per share
Warrants Warrants
* Warrants to acquire * Warrants to acquire
an additional 5% US$1.0B of New Common
of New Common Stock Stock at US$45.00 per
at US$45.00 per share share exercisable
exercisable for five for six months
years after emergence after emergence
Direct Distribution No provision for
Direct Distribution
* 1,476,000 shares of
New Common Stock
Participation in No Provision for
Discount Participation in
Rights Offering Discount Rights
Offering
* Right to purchase
40,845,016 shares
of New Common Stock
at a purchase price
of US$38.56 per share
Although the potential amendments are supported by the Creditors
Committee, GM and the Plan Investors, Delphi has been advised by
the Equity Committee that it will no longer support the
company's Plan if amended to reduce recoveries to common
stockholders as contemplated in the potential amendments.
Absent a consensual resolution of the Equity Committee's
concerns, the Committee is expected to file objections to the
Disclosure Statement and Plan, seek a further adjournment of the
continued Disclosure Statement hearing and current emergence
timetable, and seek other relief from the Bankruptcy Court.
Delphi will continue to work towards a consensus among its
principal stakeholders, including the Equity Committee, however,
the likelihood of such an outcome was speculative and not
assured.
A full-text copy of the blacklined changed pages to the
Disclosure Statement is available for free at
http://ResearchArchives.com/t/s?24ab
A full-text copy of the blacklined changed pages to the Plan is
available for free at http://ResearchArchives.com/t/s?24ac
A full-text copy of the potential amendments and the Investment
Agreement Amendment Approval Motion and related pleadings can be
obtained at http://www.delphidocket.com/
Adequacy of Disclosure Statement
The hearing to consider the adequacy of the Disclosure Statement
began on Oct. 3, 2007 and is scheduled to continue on
Nov. 8, 2007. The brief adjournment allowed Delphi to continue
to negotiate potential Plan of Reorganization (POR) amendments
with key stakeholders, make appropriate amendments to both the
GM settlement documentation and the Equity Purchase Commitment
Agreement, and continue discussions with potential exit lenders.
Approval of the Disclosure Statement and related voting
solicitation procedures permits the company to solicit
acceptances of the proposed Plan of Reorganization later this
year and seek confirmation of the Joint Plan of Reorganization
by the Bankruptcy Court during the first quarter of 2008.
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 $11,446,000,000
in total assets and $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. 93; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
DRESER-RAND GROUP: Earns US$21.3 Mil. for Quarter Ended Sept. 30
----------------------------------------------------------------
Dresser-Rand Group Inc. has reported net income of US$21.3
million, or US$0.25 per diluted share, for the third quarter
2007. This compares to a net income of US$22.9 million, or
US$0.27 per diluted share, for the third quarter 2006.
Vincent R. Volpe, Jr., President and Chief Executive Officer of
Dresser-Rand, said, "Consistent with the information contained
in our Oct. 3, 2007 news release, there are two items which
affected our third quarter 2007 results. Costs and margin
related to deferred sales associated with the work stoppage at
our Painted Post facility were approximately US$20 million,
which was higher than the originally anticipated range of US$12
to US$18 million. As we continue to hire permanent replacement
workers and extend subcontracting, the associated financial
impact of the strike will continue to be reduced and we believe
will not be of a material nature in 2008."
"Additionally, we expected a stronger recovery in aftermarket
bookings and shipments than experienced. This shortfall is
principally due to a delay attributable to changes in the
procurement and budgeting processes of certain national oil
company clients. The impact of this shortfall on bookings in
the first nine months of 2007, which we believe was one of
timing rather than lost market share, was approximately US$43
million compared to the corresponding nine month period in 2006.
Excluding the specific national oil companies involved, the rest
of the aftermarket bookings have grown from US$531.5 million in
2006 to US$574.4 million in 2007 or 8.1%. We do see signs of
recovery with one national oil company with which we are
presently negotiating a three year blanket purchase agreement
initially valued at approximately US$50 million in aftermarket
parts and services. This agreement would essentially pre-
approve the operating budget and, thereby, shorten the approval
process. We expect this agreement to be signed in the fourth
quarter of this year. In light of the above, we believe that
the year-to-date aftermarket sales shortfall will be at least
partially recovered in the fourth quarter."
Market conditions remain strong in both new unit and aftermarket
business segments. In the third quarter 2007, total revenues
increased 25.5%, bookings increased 2.7% and backlog grew 48.0%
over the prior year period.
Total revenues for the third quarter 2007 of US$389.3 million
increased US$79.0 million or 25.5% compared to US$310.3 million
for the third quarter 2006. Total revenues for the nine months
ended Sept. 30, 2007, of US$1,144.9 million increased US$119.1
million or 11.6% compared to revenues of US$1,025.8 million for
the corresponding period in 2006.
Operating income for the third quarter 2007 was US$36.4 million.
This compares to operating income of US$48.4 million for the
third quarter 2006. Third quarter 2007 operating income
decreased from the year ago quarter primarily due to the adverse
impact of a work stoppage at the company's Painted Post facility
in New York State. The company estimates the work stoppage
reduced its operating income for the third quarter 2007 by
approximately US$20 million, which includes approximately US$10
million higher costs principally for temporary workers and US$10
million for margin related to deferred sales.
Operating income for the nine months ended Sept. 30, 2007, was
US$119.4 million. This compares to operating income of US$105.8
million for the corresponding period in 2006. Operating income
increased from the year ago nine-month period primarily due to
higher sales which was partially offset by the work stoppage at
the Painted Post facility.
Bookings for the third quarter 2007 were US$496.2 million, which
was US$12.9 million or 2.7% higher than the third quarter 2006.
Bookings for the nine and twelve months ended Sept. 30, 2007, of
US$1,581.0 million and US$2,137.2 million, respectively, were
23.3% and 26.2% higher than the bookings for the corresponding
periods ended Sept. 30, 2006.
The backlog at the end of September 2007, was US$1,750.8 million
or 48.0% higher than the backlog at the end of September 2006 of
US$1,183.0 million.
New Units Segment
New unit revenues for the third quarter 2007 of US$194.0 million
compared to US$113.7 for the third quarter 2006. New unit
revenues for the nine months ended Sept. 30, 2007, of US$540.6
million compared to US$501.0 million for the corresponding
period in 2006. Overall demand for rotating equipment remains
strong in all key markets.
New unit operating income was US$12.0 million for the third
quarter 2007 compared to operating income of US$11.4 million for
the third quarter 2006. This segment's operating margin was
6.2% compared to 10.0% for the third quarter 2006. The decrease
in this segment's operating results was primarily attributable
to the work stoppage at the Painted Post facility. The company
estimates the work stoppage reduced this segment's third quarter
2007 operating income by approximately US$8 to US$9 million and
its operating margin by approximately 300 to 350 basis points.
New unit operating income was US$34.0 million for the nine
months ended Sept. 30, 2007, compared to operating income of
US$24.7 million for the corresponding period in 2006. This
segment's operating margin for the nine months ended
Sept. 30, 2007, was 6.3% compared to 4.9% for the corresponding
nine month period in 2006. The increases from the corresponding
periods in 2006 were attributable to higher sales partially
offset by the the work stoppage at the Painted Post facility.
The company estimates the work stoppage reduced this segment's
operating margin by approximately 100 to 150 basis points for
the nine months ended Sept. 30, 2007.
Bookings for the three months ended Sept. 30, 2007, of US$285.1
million were 2.8% higher than bookings for the corresponding
period in 2006. New unit bookings included a US$33.5 million
order for four reciprocating compressors, two centrifugal
compressors, and two steam turbines for Valero's refinery
expansion projects.
Bookings for the nine and twelve months ended Sept. 30, 2007, of
US$973.0 million and US$1,300.4 million, respectively, were
44.2% and 46.4% higher than the bookings for the corresponding
periods ended Sept. 30, 2006.
The backlog at Sept. 30, 2007, of US$1,456.7 million was 61.8%
above the US$900.3 million backlog at Sept. 30, 2006. This
increase was due to continuing strong worldwide demand for
rotating equipment.
Aftermarket Parts and Services Segment
Aftermarket parts and services revenues for the third quarter
2007 of US$195.3 million compared to US$196.6 for the third
quarter 2006. Aftermarket parts and services revenues for the
nine months ended Sept. 30, 2007, of US$604.3 million compared
to US$524.8 for the corresponding period in 2006. While the
market overall continues to be strong, revenues in 2007 have
been affected adversely, but the company believes temporarily,
by changes in the procurement process and a delay in budget
appropriations for certain of the company's national oil company
clients.
Aftermarket operating income for the third quarter 2007 of
US$43.1 million compared to US$51.9 million for the third
quarter 2006. This segment's operating margin for the third
quarter of 2007 of approximately 22.1% compared to 26.4% for the
third quarter 2006. The decrease in this segment's operating
results was principally due to the work stoppage at the Painted
Post facility. The company estimates the work stoppage reduced
this segment's third quarter 2007 operating income by
approximately US$11 to 12 million and its operating margin by
approximately 400 to 450 basis points.
Aftermarket operating income for the nine months ended
Sept. 30, 2007, of US$143.2 million compared to US$131.8 million
for the corresponding period in 2006. The increase in operating
income from the corresponding nine-month period in 2006 was
attributable to higher sales for parts and services partially
offset by the adverse impact of the work stoppage at the Painted
Post facility. This segment's operating margin of approximately
23.7% compared to 25.1% for the corresponding period in 2006.
The company estimates the work stoppage reduced this segment's
operating margin by approximately 100 to 150 basis points for
the nine months ended Sept. 30, 2007.
Bookings for the three months ended Sept. 30, 2007, of US$211.1
million were 2.5% above bookings for the corresponding period in
2006 of US$206.0 million. Bookings for the nine and twelve
months ended Sept. 30, 2007 of US$608.0 million and US$836.8
million, respectively, compared to bookings of US$607.8 million
and US$804.4 million, respectively, for the corresponding
periods ended Sept. 30, 2006. Bookings have been affected
adversely, but the company believes temporarily, by changes in
the procurement process and a delay in budget appropriations for
certain of the company's national oil company clients.
The backlog at Sept. 30, 2007, of US$294.1 million compared to
the backlog of US$282.7 million at Sept. 30, 2006.
Liquidity and Capital Resources
As of Sept. 30, 2007, cash and cash equivalents totaled US$184.0
million and borrowing availability under the company's US$500
million senior secured credit facility was US$306.6 million, as
US$193.4 million was used for outstanding letters of credit.
In the first nine months of 2007, cash provided by operating
activities was US$187.7 million compared to US$92.1 million for
the corresponding period in 2006. The increase of US$95.6
million in net cash provided by operating activities was
principally from changes in working capital and improved
operating performance. In the first nine months of 2007, capital
expenditures totaled US$15.0 million and the company prepaid
US$137.1 million of its outstanding indebtedness under its
senior secured credit facility. As of Sept. 30, 2007, total
debt was US$370.0 million and total debt net of cash and cash
equivalents was approximately US$186.0 million.
In August 2007, the company amended its senior secured credit
facility. The amended credit facility is a five year, US$500
million revolving credit facility. The amendment increased the
size of the facility by US$150 million, lowered borrowing costs
50 basis points to LIBOR plus 150 basis points at present
leverage and extended the maturity date from Oct. 29, 2009 to
Aug. 30, 2012. The amendment also reduced the commitment fee
from 37.5 basis points to 30.0 basis points.
Painted Post Labor Agreement
The labor agreement covering approximately 400 represented
employees at the company's Painted Post facility in New York
expired Aug. 3, 2007. There was no agreement reached resulting
in a continuing work stoppage. The company implemented a
multiphase contingency plan that has been designed to allow for
uninterrupted service to its clients. The company estimates the
work stoppage reduced its operating income for three and nine
months ended Sept. 30, 2007, by approximately US$20 million,
which includes approximately US$10 million in higher costs,
principally for temporary workers, and US$10 million for margin
related to deferred sales. While the work stoppage has resulted
in higher costs and deferred sales, the company maintains its
commitment to the long-term improvement of its operations and
believes any short-term adverse impacts to its business are
worth incurring for whatever period necessary to meet its long-
term objectives.
Contingency plan update:
1. Approximately 180 temporary replacement workers have been
contracted since the first week of the work stoppage.
Temporary workers will be reduced as the company continues
recruiting permanent replacement workers and extends
subcontracting.
2. The company has begun the process of operating with a
permanent workforce in Painted Post, which currently stands
at 75 employees. This total includes both recently hired
permanent workers and bargaining unit employees who have
chosen to return to work.
3. Additionally, another twenty-five applicants have been
offered employment and are expected to begin training in
early November, bringing the total in-plant permanent
workforce to approximately 100.
4. Subcontracting has grown to approximately 35% of Painted
Post's labor hours and will continue, replacing the work of
approximately 150 people by year-end 2007.
5. Quality products continue to be shipped starting with the
second week of the work stoppage.
6. Production capacity will continue to ramp-up due to the
above planned actions.
Outlook
Demand for rotating equipment and aftermarket parts and services
continues to be strong but aftermarket bookings and revenues
continue to be adversely, but the company believes temporarily,
impacted by changes in the procurement process approval cycle
and a delay in the budget appropriations for certain of its
national oil company clients. The backlog of orders has
continued to increase to record levels. At Sept. 30, 2007,
72.4% of the backlog of US$1,750.8 million is scheduled to ship
in 2008 and beyond.
The company believes that its 2007 operating income will be in
the range of US$205 million to US$225 million, including a
potential FAS 106 non-cash curtailment gain related to the work
stoppage of approximately US$8 million to US$12 million.
About Dresser-Rand Group
Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries. It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 7, 2007, Standard & Poor's Ratings Services assigned its
bank loan and recovery ratings to the US$500 million senior
secured revolving credit facility due 2012 of Dresser-Rand Group
Inc. (BB-/Stable/--).
DRESSER-RAND GROUP: Inks Alliance Agreement with Repsol YPF
-----------------------------------------------------------
Dresser-Rand Group Inc. has signed an alliance agreement with
Repsol YPF. The agreement covers sales of all Dresser-Rand
products and services. Dresser-Rand estimates the value of the
alliance agreement to be approximately US$100 million for
products and services over the next two years.
One steam turbine project for the Tarragona (Spain) refinery
valued at approximately US$13 million was secured in August
2007. Subsequently, in the month of October, two projects for
the Petronor Refinery (Bilbao, Spain) have been awarded with a
total value of approximately US$20 million. Dresser-Rand will
supply one process reciprocating compressor, one DATUM
centrifugal compressor and associated services.
"We're appreciative of the confidence that Repsol has placed in
Dresser- Rand," said Vincent R. Volpe, Jr., president and Chief
Executive Officer of Dresser-Rand. "As a new alliance partner,
we look forward to working with Repsol to provide value- adding
solutions through lowest life cycle cost for new equipment and
minimal emissions. We're also pleased to supply equipment to
the planned refinery expansions reflecting the continued
strength of this market segment, particularly as it relates to
expansion in the European market."
Repsol-YPF's decision to enter into an alliance with Dresser-
Rand was primarily based on the company's technical capability
as well as its proposal to reduce Repsol's total cost of
ownership of their assets. Repsol-YPF will be able to realize
considerable saving by not utilizing an EPC contractor for the
final design stages and procurement (after FEED) based on
Dresser-Rand's proprietary Corporate Product Configurator and
its Price Book e-tools.
About Repsol YPF
Repsol YPF, S.A. (IBEX: REP) is an integrated Spanish oil and
gas company with operations in 29 countries, the bulk of its
assets are located in Spain and Argentina. Repsol S.A. is one
of the world's ten largest private oil enterprises, employing
over 30,000 people worldwide. Repsol YPF operates five
refineries in Spain and four in Latin America and produces
chemicals, plastics, and polymers. It sells gas under the brands
Campsa, Petronor, and Repsol at more than 6,900 service stations
in Europe and Latin America. It is one of Spain's largest
sellers of liquefied petroleum gas.
About Dresser-Rand Group
Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries. It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 7, 2007, Standard & Poor's Ratings Services assigned its
bank loan and recovery ratings to the US$500 million senior
secured revolving credit facility due 2012 of Dresser-Rand Group
Inc. (BB-/Stable/--).
ENERGIAS DO BRASIL: Earns BRL130.6 Million in Third Quarter
-----------------------------------------------------------
Energias Do Brasil S.A. announces its results for the third
quarter and the first nine months of 2007. The information is
presented on a consolidated basis in accordance with Brazilian
Corporate Law and is based on reviewed financial information.
The independent auditors did not review the operating
information.
-- Energy volumes distributed in 3Q07 totaled 6,190 GWh, 3.7%
more than recorded in 3Q06. Volumes were boosted by a
growth in demand in residential and commercial customers,
notably in Bandeirante and Escelsa's concession areas.
-- Enertrade's commercialization business reported a growth of
17.1% in 3Q07 when compared to 3Q06, driven by a growth of
23.3% in the volume of sales to free consumers, which offset
the end of Enerpeixe's contract.
-- The volume of energy sold in 3Q07 was 1,433 GWh, a 7.0% hike
from the same quarter in 2006, reflecting sales from the 4th
generating unit at the Mascarenhas Hydro Power Plant and
from the Sao Joao Small Hydro Power Plant.
-- Net operating revenue in 3Q07 was BRL1,166.4 million, 16.1%
more than in 3Q06. This performance resulted mainly from
the increase in generation capacity, as well as the growth
in distributed and commercialized energy volumes and also
tariff hikes in the distribution and generation businesses.
-- In 3Q07, EBITDA reached BRL317.0 million, a decrease of 6.6%
when compared to 3Q06. Both 3Q07 and 3Q06 EBITDAs were
affected by non-recurring effects. Adjusting the figures,
3Q07 EBITDA would amount to BRL338.9 million while 3Q06
EBITDA would reach BRL304.9 million, which would imply an
11.2% increase from yoy.
-- Net income amounted BRL130.6 million, a 14.6% growth over
3Q06 earnings, boosted by the improvement in better
financial results in 3Q07.
-- Capital expenditures amounted to BRL173.8 million in 3Q07, a
reduction of 29.3% when compared to 3Q06, mainly a
reflection of the conclusion of construction work at Peixe
Angical.
-- On Aug. 06, 2007, Aneel approved Escelsa's tariff revision.
Considering financial adjustments, the effective average
tariff readjustment was -9.62%.
-- On Aug. 29, 2007, Enersul received a Notification Term from
Aneel regarding a decision to reassess the company's
Regulatory Asset Base, as defined in its 2003 Tariff Review.
On Sept. 21, Enersul submitted an appeal to Aneel and is
currently awaiting for the regulator's decision on that
matter.
-- On Oct. 16, 2007, the energy from Pecem thermal power plant
(UTE) was sold in the A-5 new energy auction. UTE Pecem, a
projected developed in partnership with MPX Mineracao &
Energia, will have an installed capacity of 700MW. When
concluded, UTE Pecem will imply an approximate growth of 33%
over Energias do Brasil's current installed capacity.
-- On Oct. 22, 2007, Aneel approved Bandeirante's tariff
revision. Considering financial adjustments, the effective
average tariff readjustment was -12.47%.
Energias do Brasil is an integrated utility group controlled by
Energias de Portugal, with activities in generation,
distribution and commercialization of electricity. Its power
distribution subsdiaries Bandeirante, Escelsa and Enersul
represent altogether some 64% of consolidated total assets,
while the power generation assets represent some 31%. EDB
reported consolidated net revenues of BRL4,112 million (US$1.90
billion) in the last twelve months ended Mar. 31, 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 21, 2007, Moody's America Latina assigned a senior unsecured
corporate family rating of Ba2 on its global scale and Aa3.br on
its Brazilian national scale to EDP- Energias do Brasil S.A.
Moody's said the outlook of the ratings is stable.
GENERAL MOTORS: UBS Upgrades Firm's Shares To Buy from Sell
-----------------------------------------------------------
UBS analysts have upgraded General Motors' shares to "buy" from
"sell," Newratings.com reports.
According to Newratings.com, the one-year target price for
General Motors' shares was increased to US$48 from US$24.
The analysts said in a research note that under the United Auto
Workers contract, General Motors' Tier 2 employees would earn
almost 50% less than the Tier 1 workers, while new core
employees would get total compensation in-line with that at
Toyota.
The analysts told Newratings.com that this year's contract
decreased "the number of skilled jobs, which would encourage
senior workers to accept buyouts." General Motors would be
"transformed" by 2010.
The contract accounts for US$3-billion potential cost savings,
Newratings.com notes, citing UBS.
This year's earnings per share estimate was decreased to US$2.75
from US$4.00, Newratings.com states.
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. S&P says the outlook is stable.
GERDAU SA: Starts Operating Acominas Unit's Second Blast Furnace
----------------------------------------------------------------
Gerdau SA said in a statement that it has started operating the
second blast furnace at its Acominas unit in Minas Gerais.
Business News Americas relates that the blast furnace's startup
is part of an expansion project at the mill in Ouro Branco to
4.5 million tons per year from 3.0 million tons a year, with
investments totaling US$1.50 billion.
Gerdau SA Chief Executive Officer Andre Gerdau Johannpeter said
in a statement, "The expansion of Gerdau Acominas is the biggest
investment of Grupo Gerdau's history in Brazil. With this
project, we are preparing ourselves to meet the increasing local
and global demand for steel products."
Headquartered in Porto Alegre, Brazil, Gerdau SA --
http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.
As reported on Oct. 1, 2007, Moody's Investors Service confirmed
the Ba1 corporate family ratings of Gerdau S.A. and Gerdau
Ameristeel Corporation. The ratings agency also confirmed the
Ba1 corporate family rating of the Brazilian operations of
Gerdau, represented by Gerdau Acominas S.A., Gerdau Acos Longos
S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos
S.A. Meanwhile, the ratings for Chaparral Steel Company were
withdrawn as all its rated debt will be retired. Moody's said
the outlook for all ratings is stable.
LAZARD LTD: Paying US$0.09 Per Share Quarterly Dividend
-------------------------------------------------------
Lazard Ltd.'s Board of Directors has declared a quarterly
dividend of US$0.09 per share on its outstanding Class A common
stock, payable on Nov. 30, 2007, to stockholders of record on
Nov. 9, 2007.
Lazard Ltd. (NYSE:LAZ) -- http://www.lazard.com/-- is a
preeminent financial advisory and asset management firms, that
operates from 32 cities across 16 countries in North America,
Europe, Asia, Australia and South America. With origins dating
back to 1848, the firm provides advice on mergers and
acquisitions, restructuring and capital raising, well as asset
management services to corporations, partnerships, institutions,
governments, and individuals. The company has locations in
Australia, Brazil, China, France, Germany, India, Japan, Korea
and Singapore.
The company reported total assets of US$2.6 billion, total
liabilities of US$2.8 billion, and minority interest at
US$55.7 million, resulting in a total stockholders' deficit of
US$206.8 million as of March 31, 2007.
NOVELIS INC: Realm Communications Completes Rebranding
------------------------------------------------------
Realm Communications has announced the completion of its
rebranding initiative for Novelis Inc., newly acquired by
Mumbai-based Hindalco Industries Limited, the flagship company
of the multinational conglomerate Aditya Birla Group. The
biggest Indian acquisition of a U.S.-based company, Hindalco,
with Novelis, is now the world's largest aluminum rolled
products company and recycler of aluminum cans, as well as one
of the largest producers of primary aluminum in Asia and of
copper in India.
A landmark transaction for Aditya Birla and further evidence of
India's expanding global business presence, Realm capitalized on
the reputations and collaboration of these two giants in the
metals industry by combining the best of both worlds, yet
remaining sensitive to accommodating two cultures, both from a
corporate and ethnic perspective, under one brand.
"When you're rebranding a multicultural corporation, especially
in light of an acquisition, you have to take a 360-degree view,
respecting what has come before and balancing that with
established identities," said Michael Stewart, Realm's Creative
Director. "In this particular case we had to marry the brand
promise and graphic identity of an Indian parent company with a
North American subsidiary with locations in 11 countries. We
believe the result not only affirms their complementary
capabilities, but also anticipates their future possibilities."
In developing the new brand message, Realm chose a direction
that would better support the Novelis vision -- "To make the
world a lighter, brighter and better place" -- and ensure that
it underscores a consistent and stable message for the corporate
transition. With that as the goal, "Brighter ideas with
aluminum" is the new Novelis tag line. The brand message
clearly defines Novelis' business and reinforces their
commitment to be a commodity provider as well as an industry
innovator.
Brand applications such as websites, collateral, vehicles and
workwear are due to be fully implemented by the end of the year.
Exterior signage will be completed by July 2008.
About Realm Communications
REALM Communications Group, Inc. -- http://www.rcgoptic.com/--
is a manufacturer, a value added reseller, a systems integrator
and distributor of fiber optic equipment, communication
products, and fiber optic cables. The company specializes in
developing and marketing unique fiber optic solutions. Founded
in 1987, REALM has taken a leading role in supplying state of
the art technologies and integrated solutions in voice, data,
video, and SCADA fields.
About Novelis
Based in Atlanta, Georgia, Novelis Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- is the global provider of aluminum
rolled products and aluminum can recycling. The company
operates in 11 countries and has approximately 12,900 employees.
Novelis has the capability to provide its customers with a
regional supply of technologically sophisticated rolled aluminum
products throughout Asia, Europe, North America and South
America. Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.
Novelis South America operates two rolling plants and primary
production facilities in Brazil in the Latin American region.
Novelis also has operations in Germany, Switzerland and Korea.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 26, 2007, Fitch Ratings has affirmed the Issuer Default
Rating for Novelis, Inc. and Novelis, Corp. at 'B' and assigned
a Negative Rating Outlook. The company's previous senior
secured bank debt ratings have been withdrawn. Ratings for the
new credit facility of 'BB' were assigned and the senior
unsecured debt ratings have been affirmed as:
Novelis, Inc.
-- IDR 'B';
-- Senior secured asset-based revolver 'BB/RR1';
-- Senior secured term loan B 'BB/RR1';
-- Senior unsecured notes 'B/RR4'.
Novelis, Corp.
-- IDR 'B';
-- Senior secured asset-based revolver 'BB/RR1';
-- Senior secured term loan B 'BB/RR1'.
PERDIGAO SA: Signs Share Purchase Agreement with Eleva Alimentos
----------------------------------------------------------------
Perdigao S.A. and Eleva Alimentos S.A. have signed a share
purchase and other covenants. Under the agreements:
(a) the controlling shareholders of Eleva undertake to sell
to Perdigao 23,170,146 shares of Eleva representative
of 46.23% of the stake in the company held by them and
corresponding to 35.74% of the voting and total capital
of Eleva at the price of BRL25.8162443 per share, to be
paid on or before Dec. 30, 2007; and
(b) through the incorporation of the shares of Eleva by
Perdigao (Incorporation of Shares), it is established
that Perdigao will take ownership of the remaining
stake of 53.77% held by the controlling shareholders,
representing 41.57% of the voting and total capital of
Eleva in such a manner that the controlling
shareholders will receive 15,463,349 shares of Perdigao
as a consequence of the Incorporation of Shares.
With the conclusion of these transactions, Perdigao will take
shareholding control of Eleva, the latter becoming a wholly
owned subsidiary of Perdigao.
1. Stages of the Transaction
(i) With the purpose of financing the acquisition of the
shares of Eleva, which shall be paid in cash,
pursuant to item (a) above, Perdigao shall make a
public offering comprising a primary distribution of
its common shares in Brazil (Primary Offering), the
request for registration of which has been approved on
Oct. 30, 2007 by Perdigao's Board of Directors and
shall be filed with the CVM on the same date.
(ii) The Common Shares will not be registered with the U.S.
Securities and Exchange Commission and thus may only
be offered and sold in the United States of America on
the basis of exemption or in transactions not subject
to registration with the SEC.
(iii) As soon as the requirements under the provisions in
articles 224 and successive articles thereafter of
Law 6,404/76 and in CVM Instruction 319/99, both as
amended have been complied with, the managements of
Perdigao and Eleva shall convene a general meeting of
their shareholders to decide on the Incorporation of
Shares, including the approval of experts hired to
prepare the reports required for the realization of
the Incorporation of Shares, these reports, as with
the other documents required under said legislation,
to be made available to the shareholders of the
companies, parties to the transaction.
(iv) Following the payment of the shares to be acquired for
cash from the controlling shareholders of Eleva,
pursuant to item (a) above, Perdigao shall hold a
public offering for the acquisition of the shares of
the minority shareholders of Eleva, pursuant to
article 254-A of Law 6,404/76, at the same price and
under the same conditions of acquisition as the other
shares held by Eleva's controlling shareholder (Tag
Along Offering), that is, through payment in cash for
46.23% of the shares held by the minority shareholders
at the price of BRL25.8162443 per share, and the issue
and delivery to these shareholders of shares of
Perdigao, as a result of the Incorporation of Shares,
for the remaining 53.77% of the shares held by the
minority shareholders, in the proportion of 1 share
issued by Perdigao for 1.74308855 shares issued by
Eleva.
2. Reasons for the Transaction. The managements of Perdigao
and Eleva believe that the transaction will create
shareholder value for both companies.
The operation should also additionally allow the capture of
financial and commercial synergies in addition to the tax
benefits generated from the amortization of the goodwill
resulting from the acquisition.
3. Exchange Ratio for the Incorporation of Shares. For the
purposes of establishing the exchange ratio of the shares
issued by Eleva for shares issued by Perdigao, Eleva and
Perdigao were evaluated by Banco de Investimentos Credit
Suisse (Brasil) S.A according to the same criterion, that of
economic value, using the discounted cash flow method.
Based on this evaluation, Eleva's shareholders shall
receive, on the Incorporation of Shares, 1 share of Perdigao
for each 1.74308855 shares of Eleva in their ownership.
4. Right of Withdrawal. The approval of the decisions with
respect to the Incorporation of Shares described herein
shall not give right of withdrawal to the shareholders of
Perdigao, pursuant to article 137, subsection II of Law
6,404/76. The minority shareholders of Eleva shall have the
right of withdrawal pursuant to Law 6,404/76.
5. Valuation Criteria of the Shares of Eleva and Treatment of
Subsequent Variations in Asset Value. The shares to be
incorporated by Perdigao shall be evaluated on the basis of
their economic value as at the baseline date of
Sept. 30, 2007. Banco de Investimentos Credit Suisse S.A.
shall prepare Eleva's valuation report for the purposes of
the increase in capital of Perdigao. Variations in value that
occur in Eleva's assets between the baseline date of the
valuation report and the date of the shareholders' meeting
that approves the resolution for the Incorporation of Shares
shall be absorbed by Perdigao through equity adjustment.
6. Increase in Perdigao's Capital. The increase in capital,
through the issue of new shares, shall be effected within
the limits of the authorized capital, pursuant to the
resolution of the General Shareholders' Meeting. The shares
to be issued by Perdigao in the light of the Incorporation
of Shares shall be entitled to the same rights attributed to
the other shares issued by Perdigao as from the date the
Incorporation of Shares becomes effective.
7. Valuation Institutions. Banco de Investimentos Credit Suisse
(Brasil) S.A. has been hired to prepare the economic reports
of Perdigao and Eleva for the purposes of determining the
exchange ratio of the shares of Eleva for shares of Perdigao
and to verify the value of the increase of capital of
Perdigao resulting from the Incorporation of Shares.
Planconsult Planejamento e Consultoria Ltda has been hired
to prepare the valuation of shareholders' equity of Perdigao
and Eleva at market prices. The hiring of these
institutions is subject to ratification by the general
shareholders' meetings of the companies which shall
deliberate on the Incorporation of Shares. Banco de
Investimentos Credit Suisse (Brasil) S.A. and Planconsult
Planejamento e Consultoria Ltda. have declared, each one in
relation to itself, that there is no conflict or community
of interests, current or potential, with the controlling
shareholders of Perdigao or Eleva or with their respective
minority shareholders, or with their partners or involving
the operation itself.
8. Brazilian Anti-Trust System. The transaction will be
submitted to the Brazilian anti-trust authorities
(Administrative Council of Economic Defense - CADE,
Secretariat of Economic Law - SDE and the Secretariat of
Economic Monitoring - SEAE).
9. Additional Information. Additional information on the
Incorporation of Shares required pursuant to CVM Instruction
319/99 shall be the subject of a further announcement of a
material fact to be published as soon as all the terms and
conditions of the Incorporation of Shares have been approved
and the valuation reports finalized.
The documents relative to the Incorporation of Shares shall be
made available to the shareholders of the companies involved as
from the date of publication of the convening notices to the
said general shareholders' meetings at the following addresses
between 9:00 a.m. and 5:00 p.m. upon submission of the statement
showing the shareholder's position, issued no less than 2 (two)
days previously. Further information may be obtained by calling
Ms. Edina Biava on (55 11)3718-5465, 3718-5301 e 3718-5306 or
Mr. Alexandre Torrano on (55 51)3371-7491.
About Perdigao
Headquartered in Sao Paulo, Brazil, Perdigao S.A. is one of the
largest food processors in Brazil, with a focus on poultry,
pork, beef, milk and processed products including dairy. With
revenues of BRL6 billion for the last twelve months eding in
June 30, 2007, Perdigao is one of the leaders in the domestic
market and exports 42% of its sales to over 100 countries and
850 customers around the world.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 26, 2007, Moody's Investors Service has assigned a first-
time Ba1 global local currency corporate family rating to
Perdigao S.A. Moody's said the rating outlook is stable.
RHODIA SA: Halts Paracetamol Production at Roussillon Site
----------------------------------------------------------
Rhodia S.A. presented plans to discontinue the paracetamol
activity on its Roussillon site at the work's council meeting on
Oct. 26, 2007.
According to the company, the ending of these production
activities, which should be effective by the end of 2008, forms
part of the strategy to refocus Rhodia Organics' business
portfolio.
The economic analysis of this market revealed a difficult
competitive situation. The considerable efforts made to cut
costs have failed to prevent a decline in this business activity
and to restore its competitiveness.
Plans to discontinue the paracetamol activity on the Roussillon
site will have a direct impact on 43 jobs. Rhodia said it will
do its best to facilitate the redeployment of its employees.
Rhodia Organics brings together Rhodia's expertise in fine
organics chemistry dedicated to the Flavors & Fragrances market,
Pharmaceuticals, coatings and industrial paints, Agrochemicals
and industrial intermediates.
About Rhodia
Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA)
-- http://www.rhodia.com/-- is a global specialty chemicals
company partnering with major players in the automotive,
electronics, pharmaceuticals, agrochemicals, consumer care,
tires, and paints and coatings markets. Rhodia offers tailor-
made solutions combining original molecules and technologies to
respond to customers' needs. The group generated sales of
EUR4.8 billion in 2006 and employs around 16,000 people
worldwide.
Rhodia is listed on Euronext Paris and the New York Stock
Exchange. The company has operations in Brazil.
* * *
As reported on April 26, 2007, Fitch Ratings affirmed Rhodia
S.A.'s Issuer Default Rating at BB- and revised the Outlook to
Positive from Stable. Fitch has assigned Rhodia SA's proposed
issue of up to EUR595.125 million bonds convertible and/or
exchangeable for new and/or existing shares an expected 'BB-'
rating.
As reported on April 23, 2007, Moody's Investors Service
upgraded Rhodia S.A. corporate family rating to Ba3 and assigned
Probability-of-Default rating for the group at Ba3; Moody's also
upgraded senior secured notes at Rhodia S.A. to B1 and assigned
LGD assessment at LGD4 (69%). The proposed convertible notes
are rated (P)B1, LGD4 (69%).
These ratings are affected:
-- Corporate Family Ratings upgraded to Ba3;
-- Probability-of-Default assigned at Ba3;
-- Rhodia S.A. Senior Unsecured ratings upgraded to B1, LGD4
(69%); and
-- Rhodia S.A. Senior convertible notes rated (P)B1, LGD4
(69%).
At the same time, Standard & Poor's Ratings Services raised its
long-term corporate credit rating on Rhodia to BB- from B+, and
its long- term debt rating on the group to B from B-. Standard
& Poor's also assigned its B senior unsecured debt rating to
Rhodia's proposed new bond, which will be used for refinancing
purposes.
SCO GROUP: Court Approves Berger Singerman as Co-Counsel
--------------------------------------------------------
The SCO Group Inc. and SCO Operations Inc. obtained permission
from the United States Bankruptcy Court for the District of
Delaware to employ Berger Singerman P.A. as their co-counsel,
nunc pro tunc to Sept. 14, 2007.
Berger Singerman will:
a) advise the Debtors with respect to its powers and duties
as debtors-in-possession and the continued management of
their business operations;
b) advise the Debtors with respect to their responsibilities
in complying with the United States Trustee's Operating
Guidelines and Reporting requirements and with the rules
of the Court;
c) prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents necessary
in the administration of the cases;
d) protect the interests of the Debtors in all matters
pending before the Court; and
e) represent the Debtors in negotiations with their creditors
and in the preparation of a plan.
The firm's professionals will bill at these rates:
Professional Hourly Rate
------------ -----------
Paul Steven Singerman, Esq. US$475
Arthur J. Spector, Esq. US$450
Associate Attorneys US$250 - US$370
Legal Assistants/Paralegals US$75 - US$160
The firm disclosed that on Sept. 4, 2007, and Sept. 12, 2007,
Berger Singerman received retainers of US$50,000 and US$375,000,
respectively, in connection with Debtors' chapter 11 cases.
Arthur J. Spector, Esq., a shareholder of the firm, assures the
Court that the firm does not hold any interest adverse to the
Debtors and their estate, and that the firm is a "disinterested
person" as that term is defined under Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Paul Steven Singerman, Esq.
Arthur J. Spector, Esq.
Berger Singerman P.A.
350 E. Las Olas Boulevard, Suite 1000
Fort Lauderdale, FL 33301
Tel.: (954) 713-7511
http://www.bergersingerman.com/
Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
fka Caldera International Inc. -- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.
The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
SCO GROUP: Gets Court OK to Hire Pachulski Stang as Co-Counsel
--------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
authorized The SCO Group Inc. and SCO Operations Inc. to employ
Pachulski Stang Ziehl & Jones LLP as their bankruptcy co-
counsel, nunc pro tunc to Sept. 14, 2007.
Pachulski Stang will:
a) provide legal advise with respect to the Debtors' powers
and duties as debtors in possession in the continued
operation of their business and management of their
property;
b) prepare on behalf of the Debtors necessary applications,
motions, answers, orders, reports, and other legal papers;
c) appear in Court on behalf of the Debtors and in order to
protect the interests of the Debtors before the Court;
d) prepare and pursue confirmation of a plan and approval of
a disclosure statement; and
e) perform all other legal services for the Debtors that may
be necessary and proper in these proceedings.
The firm's professionals and their billing rates per hour are:
Professional Rate
------------ ----
Laura Davis Jones, Esq. US$750
James E. O'Neill, Esq. US$475
Rachel L. Werkheiser, Esq. US$375
Lynzy Oberholzer US$175
Laura Davis Jones, Esq. an attorney of the firm, assures the
Court that the firm does not hold any interest adverse to the
Debtors and their estate, and that the firm is a "disinterested
person" as that term is defined under Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Laura Davis Jones, Esq.
Pachulski Stang Ziehl & Jones LLP
919 North Market Street, 17th Floor
P.O. Box 8705
Wilmington, DE 19899-8705
Tel.: (302) 652-4100
Fax.: (302) 652-4400
http://www.pszjlaw.com/
Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
fka Caldera International Inc. -- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.
The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
* BRAZIL: Petrobras Inks Plant Supply Contract with Petroperu
-------------------------------------------------------------
Peru's Petroperu and Brazil's Petroleo Brasileiro SA have signed
an accord involving supply for the Iquitos refinery aimed at
reducing costs, Business News Americas reports.
Under the agreement, Petroleo Brasileiro will begin supplying
Iquitos with cracked naphta from its Reman refinery in Manaus,
taking over from Petroperu, which needs to transport the product
from its Talara refinery on the Pacific, the same report adds.
Petroperu's delivery of 10,500 barrels per day of the high-
octane gasoline component takes 30 to 40 days. Petroleo
Brasileiro will only take 8 to 9 days to make the delivery,
BNamericas says.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch
said the rating outlook is stable.
===========================
C A Y M A N I S L A N D S
===========================
A&Q SELECT: Proofs of Claim Filing Ends Today
---------------------------------------------
A&Q Select Funds - Opportunistic Limited Limited's creditors are
given until Nov. 1, 2007, to prove their claims to Stuart K.
Sybersma and Ian A. N. Wight at Deloitte, the company's
liquidators, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
A&Q Select's sole shareholder decided on Sept. 11, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Stuart Sybersma
Ian A. N. Wight
Deloitte
c/o Mervin Solas
P.O. Box 1787 George Town
Grand Cayman, Cayman Islands
Tel: (345) 949 7500
Fax: (345) 949 8258
ASTPRELUDE FUND: Proofs of Claim Filing Deadline Is Today
---------------------------------------------------------
Astprelude Fund Ltd.'s creditors are given until Nov. 1, 2007,
to prove their claims to S.L.C. Whicker K.D. Blake at KPMG, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Astprelude's sole shareholder decided on Aug. 31, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
S.L.C. Whicker
K.D. Blake
KPMG
P.O. Box 493
Grand Cayman KY1-1106
Cayman Islands
For inquiries, you may contact:
Gundega Tamane
P.O. Box 493
Grand Cayman KY1-1106
Cayman Islands
Tel: 345-949-4800
Fax: 345-949-7164
ATLANTIC PACIFIC: Proofs of Claim Filing Is Until Nov. 2
--------------------------------------------------------
Atlantic Pacific Cellular's creditors are required to submit
proofs of claim by Nov. 2, 2007, to Marne Elizabeth Martin, 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.
Atlantic Pacific's shareholders agreed on Oct. 12, 2007, to
place the company into voluntary liquidation under The Cayman
Islands' Companies Law (2007 Revision).
The liquidator can be reached at:
Marne Elizabeth Martin
1684 East Gude Drive
3rd Floor, Rockville
Maryland 20850, USA
BELMONT UNITED: Proofs of Claim Filing Deadline Is Today
--------------------------------------------------------
Belmont United Company's creditors are given until Nov. 1, 2007,
to prove their claims to Jose Luis Sucupira, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Belmont United's shareholders decided on Sept. 11, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Jose Luis Sucupira
77 Brickell Ave.
Suite 1100
Miami, FL 33131
Tel: 786-693-8106
Fax: 305-374-2319
BLACKSTONE PARTNERS: Proofs of Claim Filing Is Until Nov. 7
-----------------------------------------------------------
Blackstone Partners Nontaxable Offshore Sterling Fund Ltd.'s
creditors are required to submit proofs of claim by
Nov. 7, 2007, to Scott Long, 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.
Blackstone Partners' shareholder agreed on Oct. 17, 2007, to
place the company into voluntary liquidation under The Cayman
Islands' Companies Law (2007 Revision).
The liquidator can be reached at:
Scott Long
345 Park Avenue
New York, New York 10154
U.S.A.
BLACKSTONE R: Proofs of Claim Filing Ends on Nov. 7
---------------------------------------------------
Blackstone R Offshore Fund Ltd.'s creditors are required to
submit proofs of claim by Nov. 7, 2007, to Scott Long, 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.
Blackstone R's shareholder agreed on Oct. 17, 2007, to place the
company into voluntary liquidation under The Cayman Islands'
Companies Law (2007 Revision).
The liquidator can be reached at:
Scott Long
345 Park Avenue
New York, New York 10154
U.S.A.
BLACKSTONE W: Proofs of Claim Filing Is Until Nov. 7
----------------------------------------------------
Blackstone W Offshore Fund Ltd.'s creditors are required to
submit proofs of claim by Nov. 7, 2007, to Scott Long, 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.
Blackstone W's shareholder agreed on Oct. 17, 2007, to place the
company into voluntary liquidation under The Cayman Islands'
Companies Law (2007 Revision).
The liquidator can be reached at:
Scott Long
345 Park Avenue
New York, New York 10154
U.S.A.
BOMBAY CO: Committee Can Hire Forshey & Prostok as Local Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of The Bombay
Company Inc. obtained authority from the U.S. Bankruptcy Court
for the Northern District of Texas, to employ Forshey & Prostok
LLP as their local counsel effective Sept. 24, 2007.
Forshey & Prostok is expected to:
(a) advice and consult with the Committee concerning (i)
legal questions arising in administering the Debtors'
estates; and (ii) unsecured creditors' rights and
remedies in connection with the estates;
(b) analyze the Debtors' assets and liabilities, including
present and historical matters and inter-company
relationships;
(c) work with the Debtors concerning the administration
of the Chapter 11 cases;
(d) preserve, protect and maximize the value of the
Debtors' assets;
(e) prepare pleadings, motions, answers, notices, orders,
and reports that are necessary or required for the
protection of the Committee's interests and the
orderly administration of the Debtors' estates;
(f) formulate, prepare and confirm a Chapter 11 plan of
reorganization for the Debtors' which maximizes the
value to creditors;
(g) protect and maximize the value of the Debtors' assets
and business for the benefit of the Debtors'
creditors; and
(h) perform any and other legal services for the Committee
that are relevant to Chapter 11 cases.
Jeff P. Prostok, Esq., a partner at Forshey and Prostok, tells
the Court that the firm's professionals hourly rates are:
Professionals Designation Hourly Rate
------------- ----------- -----------
Jeff P. Prostok, Esq. Partner US$450
J. Robert Forshey, Esq. Partner US$450
Lynda L. Lankford, Esq. Associate US$285
Matt Maben, Esq. Associate US$250
Linda Breedlove Paralegal US$125
Mr. Prostok assures the Court that the firm holds no adverse
interest with the Debtors and their estates and is disinterested
as that term is defined in Section 101(14) of the Bankruptcy
Code.
Mr. Prostok can be reached at:
Jeff P. Prostok, Esq.
Forshey & Prostok LLP
Suite 1290, 777 Main Street
Fort Worth, TX 76102
Tel: (817) 877-8855
http://www.forsheyprostok.com/
Headquartered in Fort Worth, Texas, The Bombay Company Inc.,
(OTC Bulletin Board: BBAO) -- http://www.bombaycompany.com/--
designs, sources and markets a unique line of home
accessories, wall decor and furniture through 384 retail outlets
and the Internet in the U.S. and internationally, including
Cayman Islands. The company and five of its debtor-affiliates
filed for Chapter 11 protection on Sept. 20, 2007 (Bankr. N.D.
Tex. Lead Case No. 07-44084). Jason B. Binford, Esq., and
Robert Dew Albergotti, Esq., at Haynes & Boone, L.L.P.,
represent the Debtors. Jeff P. Prostok, Esq., at Forshey &
Prostok, LLP, represents the Official Committee of Unsecured
Creditors. As of May 5, 2007, the Debtors listed total assets
of US$239,400,000 and total debts of US$173,400,000.
Bombay's Canadian operations also sought protection under the
Companies' Creditors Arrangement Act in Canada.
BOMBAY CO: Court Approves Cooley Godward as Panel's Lead Counsel
----------------------------------------------------------------
The United States Bankruptcy Court for the Northern District of
Texas gave the Official Committee of Unsecured Creditors in
Bombay Company Inc. and its debtor-affiliates' bankruptcy cases,
authority to retain Cooley Godward Kronish LLP as its lead
counsel, nunc pro tunc to Sept. 24, 2007.
The Committee tells the Court that it selected the firm as its
lead counsel because of the firm's extensive experience in
representing committees in similar matters and because it
believes that the firm is well qualified to represent the
committee in conjunction with said matters.
As the Committee's lead counsel, Cooley Godward is expected to:
a) attend the meetings of the Committee;
b) review financial information furnished by the Debtors to
the Committee;
c) review and investigate the liens of purported secured
parties;
d) confer with the Debtors' management and counsel;
e) coordinate efforts to sell assets of the Debtors in a
matter that maximizes the value for unsecured creditors;
f) review the Debtor's schedules, statement of affairs and
business plan;
g) advise the Committee as to the ramifications regarding all
of the Debtors' activities and motions before the Court;
h) file appropriate pleadings on behalf of the Committee;
i) review and analyze financial advisor's work product and
reports to the Committee;
j) provide the Committee with legal advice in relation to the
cases;
k) prepare various applications and memoranda of law submitted
to the Court for consideration and handle all other matters
relating to the representation of the Committee that may
arise;
l) assist the Committee in negotiations with the Debtors' and
other parties in interest on an exit strategy for these
cases; and
m) perform such other legal services for the Committee as may
be necessary or proper in these proceeding.
The compensation rates of the firm's professionals are:
Attorney Designation Hourly Rate
-------- ----------- -----------
Jay Indyke, Esq. Partner US$680
Ronald R. Sussman, Esq. Partner US$655
Cathy Hershcopf, Esq. Partner US$605
Gregory G. Plotko, Esq. Associate US$480
Jeffrey L. Cohen, Esq. Associate US$475
Michael A. Klein, Esq. Associate US$320
Brian Byun, Esq. Associate US$265
Jay R. Indyke, Esq., a partner of CGK, assured the Court that
the firm does not hold any interest adverse to the Committee,
the Debtors, or its estates.
Mr. Indyke can be reached at:
Jay R. Indyke, Esq.
Cooley, Godward, Kronish LLP
1114 Ave of the Americas
New York, N.Y. 10036
Tel: (212) 479-6080
Fax: (212) 479-6275
http://www.cooley.com/
Headquartered in Fort Worth, Texas, The Bombay Company Inc.,
(OTC Bulletin Board: BBAO) -- http://www.bombaycompany.com/--
designs, sources and markets a unique line of home
accessories, wall decor and furniture through 384 retail outlets
and the Internet in the U.S. and internationally, including
Cayman Islands. The company and five of its debtor-affiliates
filed for Chapter 11 protection on Sept. 20, 2007 (Bankr. N.D.
Tex. Lead Case No. 07-44084). Jason B. Binford, Esq., and
Robert Dew Albergotti, Esq., at Haynes & Boone, L.L.P.,
represent the Debtors. Jeff P. Prostok, Esq., at Forshey &
Prostok, LLP, represents the Official Committee of Unsecured
Creditors. As of May 5, 2007, the Debtors listed total assets
of US$239,400,000 and total debts of US$173,400,000.
Bombay's Canadian operations also sought protection under the
Companies' Creditors Arrangement Act in Canada.
COLIN LUKE: Proofs of Claim Filing Ends Today
---------------------------------------------
Colin Luke & Associates (Insurance) Ltd.'s creditors are given
until Nov. 1, 2007, to prove their claims to Nigel Hooper, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Colin Luke's shareholder agreed on Sept. 17, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Colin Luke & Associates (Insurance) Ltd.
c/o Campbells
4th Floor, Scotia Center
P.O. Box 884 George Town
Grand Cayman
Tel: 345 949 2648
Fax: 345 949 8613
ELYSEE LIMITED: Proofs of Claim Filing Deadline Is Today
--------------------------------------------------------
Elysee Limited's creditors are given until Nov. 1, 2007, to
prove their claims to Buchanan Limited, the company's
liquidator, or be excluded from receiving distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Pine Investments' shareholders decided on Sept. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
c/o Francine Jennings
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
FRESH DEL MONTE: Earns US$29.9 Million in Quarter Ended Sept. 28
----------------------------------------------------------------
Fresh Del Monte Produce Inc. reported net income of US$29.9
million for the three months ended Sept. 28, 2007, compared to a
net loss of US$82.9 million for the same period last year.
Net sales for the third quarter of 2007 increased to US$757.1
million, compared with US$729.6 million in the same period a
year ago. The increase in net sales was due to stronger banana
sales, primarily due to planned volume reductions and higher
worldwide banana selling prices; improved performance in the
Company's Prepared Food business segment, resulting from lower
industry supply of canned pineapple products in Europe; and
favorable foreign currency exchange rates in Europe.
Gross profit for the third quarter of 2007 was US$67.8 million,
compared with adjusted gross profit of US$32.7 million in 2006,
which excludes US$40.8 million for charges associated with the
previously announced closing of the company's operations in
Hawaii and the Kenya product withdrawal and disposal program.
The increase in gross profit for the quarter was driven by the
significant operational improvements in the company's Other
Fresh Produce and Prepared Food business segments, higher
selling prices of bananas, favorable foreign currency exchange
rates, and ongoing operational efficiencies and improvements.
These gains were partially offset by the impact of higher
product procurement and distribution costs.
"It is gratifying to see the actions we took in 2006 to drive
global improvements have had a very favorable impact across all
of our business segments," said Mohammad Abu-Ghazaleh, Fresh Del
Monte's Chairman and Chief Executive Officer. "Our team did an
exceptional job in terms of focusing our sales and marketing
efforts and increasing efficiencies, and these efforts have
resulted in one of the best third quarters in our history,
during what is traditionally our most challenging three-month
period." Mr. Abu-Ghazaleh added, "We continue to face challenges
in our industry and our business related to the high cost of
fuel, raw materials and transportation. As always, we will
remain sharply focused for the balance of 2007 to manage those
challenges and drive performance."
Based in the Cayman Islands, Fresh Del Monte Produce Inc. --
http://www.freshdelmonte.com/-- is one of the world's leading
vertically integrated producers, marketers and distributors of
high-quality fresh and fresh-cut fruit and vegetables, as well
as a leading producer and distributor of prepared fruit and
vegetables, juices, beverages, snacks and desserts in Europe,
the Middle East and Africa. Fresh Del Monte markets its
products worldwide under the Del Monte(R) brand, a symbol of
product quality, freshness and reliability since 1892.
Del Monte Fresh Produce Company has operations in Chile, Brazil,
France, Philippines, and Korea.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 16, 2007, Standard & Poor's Ratings Services assigned its
preliminary 'B' senior unsecured debt, preliminary 'B'
subordinated debt, and preliminary 'B-' preferred stock ratings
to Fresh Del Monte Produce Inc.'s Rule 415 universal shelf
registration for debt securities.
GALATEA FUND: Proofs of Claim Filing Deadline Is Nov. 14
--------------------------------------------------------
Galatea Fund's creditors are given until Nov. 14, 2007, to
submit proofs of claim to Steve Penney, 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.
Galatea Fund's shareholder agreed on Sept. 24, 2007, to place
the company into voluntary liquidation under the Cayman Islands'
Companies Law (2007 Revision).
The liquidator can be reached at:
Steve Penney
37 Fitzwilliam Place
Dublin 2, Ireland
GFIA-SHK MANAGERS: Proofs of Claim Filing Ends on Nov. 7
--------------------------------------------------------
GFIA-SHK Managers Ltd.'s creditors are required to submit proofs
of claim by Nov. 7, 2007, to David A.K. Walker and Lawrence
Edwards, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
GFIA-SHK Managers' shareholders agreed on Sept. 30, 2007, to
place the company into voluntary liquidation under The Cayman
Islands' Companies Law (2007 Revision).
The liquidator can be reached at:
David A.K. Walker
Lawrence Edwards
Attention: Jodi Jones
PwC Corporate Finance & Recovery (Cayman) Limited
P.O. Box 258, Strathvale House
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 945 4237
GOTTFRIED INT'L: Proofs of Claim Filing Deadline Is Nov. 15
-----------------------------------------------------------
Gottfried International's creditors are required to submit
proofs of claim by Nov. 15, 2007, to Jansbert Gadicke, 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.
Opportunities Japan's shareholders agreed to place the company
into voluntary liquidation under The Cayman Islands' Companies
Law (2007 Revision).
The liquidator can be reached at:
Jansbert Gadicke
The John Hancock Tower
200 Clarendon Street, 54th Floor
Boston, Massachusetts 02116
USA
Phone: 617-425-9200
Fax: 617-425-9313
LAKEPORT INVESTMENTS: Proofs of Claim Filing Is Until Today
-----------------------------------------------------------
Lakeport Investments Limited's creditors are given until
Nov. 1, 2007, to prove their claims to Buchanan Limited, the
company's liquidator, or be excluded from receiving distribution
or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Pine Investments' shareholders decided on Sept. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
c/o Francine Jennings
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
ML CBO: Proofs of Claim Filing Is Until Today
---------------------------------------------
ML CBO VII (Cayman) Ltd.'s creditors are given until
Nov. 1, 2007, to prove their claims to Suzan Merren and Richard
Gordon, the company's liquidators, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
ML CBO's shareholder agreed on Sept. 20, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Suzan Merren
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
PINE INVESTMENTS: Proofs of Claims Filing Ends Today
----------------------------------------------------
Pine Investments Limited's creditors are given until
Nov. 1, 2007, to prove their claims to Buchanan Limited, the
company's liquidator, or be excluded from receiving distribution
or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Pine Investments' shareholders decided on Sept. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
c/o Francine Jennings
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
SAILFISH GLOBAL: Proofs of Claim Filing Ends Today
--------------------------------------------------
Sailfish Global Equity Master Fund (G3), Ltd.'s creditors are
given until Nov. 1, 2007, to prove their claims to Jan Neveril
and Richard Gordon, the company's liquidators, or be excluded
from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Sailfish Global's shareholders agreed on Aug. 28, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
SMOKY RIVER: Proofs of Claim Filing Deadline Is Today
-----------------------------------------------------
Smoky River CDO G.P. Co., Ltd.'s creditors are given until
Nov. 1, 2007, to prove their claims to Hugh Thompson and Richard
Gordon, the company's liquidators, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Smoky River's shareholders agreed on Sept. 20, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Hugh Thompson
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
ST. ALBANS: Proofs of Claim Filing Is Until Nov. 15
---------------------------------------------------
St. Albans Partners Ltd.'s creditors are required to submit
proofs of claim by Nov. 15, 2007, to John Cullinane and Derrie
Boggess, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
St. Albans' shareholders agreed on Oct. 15, 2007, to place the
company into voluntary liquidation under The Cayman Islands'
Companies Law (2007 Revision).
The liquidator can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
SUPER H. LIMITED: Proofs of Claim Filing Deadline Is Today
----------------------------------------------------------
Super H. Limited's creditors are given until Nov. 1, 2007, to
prove their claims to Buchanan Limited, the company's
liquidator, or be excluded from receiving distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Super H. Limited's shareholders decided on Sept. 20, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Buchanan Limited
c/o Francine Jennings
P.O. Box 1170
Grand Cayman KY1-1102
Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
TM PROPERTY: Proofs of Claim Filing Deadline Is Nov. 10
-------------------------------------------------------
TM Property Corp.'s creditors are required to submit proofs of
claim by Nov. 10, 2007, to John Cullinane and Derrie Boggess,
the company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
TM Property's shareholder agreed on Oct. 11, 2007, to place the
company into voluntary liquidation under The Cayman Islands'
Companies Law (2007 Revision).
The liquidator can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
UNICORN GROUP: Proofs of Claim Filing Is Until Nov. 9
-----------------------------------------------------
The Unicorn Group's creditors are required to submit proofs of
claim by Nov. 9, 2007, to John Cullinane and Derrie Boggess, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
The Unicorn Group's shareholder agreed on June 6, 2007, to place
the company into voluntary liquidation under The Cayman Islands'
Companies Law (2007 Revision).
The liquidator can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
=========
C H I L E
=========
AES CORP: Prices Cash Tender Offer for Senior Notes
---------------------------------------------------
The AES Corporation has determined the pricing for its
previously announced tender offer to purchase up to US$1.24
billion of certain of its outstanding senior notes in accordance
with the terms and conditions described in its Offer to Purchase
and the related Letter of Transmittal, each dated Oct. 16, 2007.
The total consideration for each series of Notes was determined
as of 2:00 p.m., New York City time, on Oct. 29, 2007, using the
yield of the U.S. Treasury reference security specified below
(the "Reference Security") plus a fixed spread of 50 basis
points.
8.75% Senior Notes due 2008
The yield on the Reference Security for the 2008 Notes was
4.087% and the tender offer yield was 4.587%. Accordingly,
holders whose 2008 Notes that have validly tendered and not
withdrawn prior to 5:00 p.m., New York City time, on
Oct. 29, 2007 and that are accepted for purchase by AES will
receive Total Consideration of US$1,025.27 per US$1,000
principal amount of 2008 Notes tendered, plus any accrued and
unpaid interest from the last interest payment date for the 2008
Notes to, but not including, the early settlement date, which
AES expects will occur tomorrow, Oct. 30, 2007. Holders whose
2008 Notes that are validly tendered after 5:00 p.m., New York
City time, on Oct. 29, 2007 and at or prior to 12:00 midnight,
New York City time, on Nov. 13, 2007 and that are accepted for
purchase by AES will receive the Total Consideration set forth
above minus the Early Tender Premium of US$30.00 per US$1,000
principal amount of 2008 Notes, or the Tender Offer
Consideration, plus any accrued and unpaid interest from the
last interest payment date for the 2008 Notes to, but not
including, the final settlement date, which AES expects will
occur on Nov. 14, 2007.
9.00% Second Priority Senior Secured Notes due 2015
The yield on the Reference Security for the 2015 Notes was
4.123% and the tender offer yield was 4.623%. Accordingly,
holders whose 2015 Notes that have been validly tendered and not
withdrawn prior to 5:00 p.m., New York City time, on
Oct. 29, 2007 and that are accepted for purchase by AES will
receive Total Consideration of US$1,067.01 per US$1,000
principal amount of 2015 Notes tendered, plus any accrued and
unpaid interest from the last interest payment date for the 2015
Notes to, but not including, the early settlement date, which
AES expects will occur on Oct. 30, 2007. Holders whose 2015
Notes that are validly tendered after 5:00 p.m., New York City
time, on Oct. 29, 2007 and at or prior to 12:00 midnight, New
York City time, on November 13, 2007 and that are accepted for
purchase by AES will receive the Total Consideration set forth
above minus the Early Tender Premium of US$30.00 per US$1,000
principal amount of 2015 Notes, or the Tender Offer
Consideration, plus any accrued and unpaid interest from the
last interest payment date for the 2015 Notes to, but not
including, the final settlement date, which AES expects will
occur on Nov. 14, 2007.
8.75% Second Priority Senior Secured Notes due 2013
The yield on the Reference Security for the 2013 Notes was
4.123% and the tender offer yield was 4.623%. Accordingly,
holders whose 2013 Notes that have been validly tendered and not
withdrawn prior to 5:00 p.m., New York City time, on
Oct. 29, 2007 and that are accepted for purchase by AES will
receive Total Consideration of US$1,063.03 per US$1,000
principal amount of 2013 Notes tendered, plus any accrued and
unpaid interest from the last interest payment date for the 2013
Notes to, but not including, the final settlement date, which
AES expects will occur on Nov. 14, 2007. Holders whose 2013
Notes are validly tendered after 5:00 p.m., New York City time,
on Oct. 29, 2007 and at or prior to 12:00 midnight, New York
City time, on Nov. 13, 2007 will receive the Total Consideration
set forth above minus the Early Tender Premium of US$30.00 per
US$1,000 principal amount of 2013 Notes, or the Tender Offer
Consideration, plus any accrued and unpaid interest from the
last interest payment date for the 2013 Notes to, but not
including, the final settlement date.
Rights to withdraw tendered Notes terminated at 5:00 p.m., New
York City time, on Oct. 29, 2007. As of such time,
US$192,501,000 principal amount of 2008 Notes, US$598,000,000
principal amount of 2015 Notes and US$1,188,039,000 principal
amount of 2013 Notes had been validly tendered and not
withdrawn. The tender offer will expire at 12:00 p.m. midnight,
New York City time, on Nov. 13, 2007, unless extended or earlier
terminated by AES. AES may increase or modify the Tender Cap
(in which case, the term Tender Cap will mean such amount as so
increased) without extending withdrawal rights to Holders. If
the aggregate principal amount of Notes validly tendered and not
withdrawn at the Expiration Time exceeds the Tender Cap, the
Company will (subject to the terms and conditions of the offer)
limit the Notes it accepts pursuant to the Tender Cap and in
accordance with the acceptance priority levels as set forth in
the Offer to Purchase. Since the 2008 Notes and the 2015 Notes
have an acceptance priority level of 1 and 2, respectively, and
the aggregate principal amount of the 2008 Notes and the 2015
Notes combined is less than the Tender Cap, neither the 2008
Notes nor the 2015 Notes will be subject to proration; only the
2013 Notes will be subject to proration.
The tender offer is conditioned on the satisfaction of certain
conditions. If any of the conditions is not satisfied, AES is
not obligated to accept for payment, purchase or pay for, and
may delay the acceptance for payment of, any tendered Notes, in
each event, subject to applicable laws, and may even terminate
the tender offer.
Citi is the Dealer Manager for the tender offer. Global
Bondholder Services Corporation is acting as the Information
Agent and Wells Fargo Bank, National Association is acting as
the Depository. The offer is made only by an Offer to Purchase
dated Oct. 16, 2007, and the information in this news release is
qualified by reference to the Offer to Purchase. Persons with
questions regarding the offer should contact the Dealer Manager,
toll-free at 800-558-3745 or collect at (212) 723-6106.
Requests for documentation may be directed to the Information
Agent, toll-free at (866) 294-2200.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Specifically, it also has operations
in India. Generating 44,000 megawatts of electricity through
124 power facilities, the company delivers electricity through
15 distribution companies. The company's Latin America business
group is comprised of generation plants and electric utilities
in Argentina, Brazil, Chile, Colombia, Dominican Republic, El
Salvador, Panama and Venezuela.
As reported in the Troubled Company Reporter-Latin America on
Oct. 12, 2007, Moody's Investors Service affirmed The AES
Corporation's Corporate Family Rating at B1 and the senior
unsecured rating assigned to its new senior unsecured notes
offering at B1 following its upsizing to USUS$2 billion from
USUS$500 million. LGD assessments are subject to change pending
the final capital structure.
As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1'
rating to AES Corporation's USUS$500 million issue of senior
unsecured notes due 2017. AES' long-term Issuer Default Rating
is rated 'B+' by Fitch. Fitch said the rating outlook is
stable.
AES CORP: Seeking Regulators' Approval on 2 Gas Projects
--------------------------------------------------------
The Baltimore Sun reports that the AES Corporation is seeking
the US Federal Energy Regulatory Commission's authorization for
the construction of a liquefied natural gas terminal at the
Sparrows Point shipyard and an 88-mile pipeline into
Pennsylvania.
According to The Sun, the National Association of State Fire
Marshals and federal regulators heeded a request from some
Turners Station residents to consider the approval for liquefied
natural gas projects. The Fire Marshals and regulators will
meet in Washington about the approval process.
O'Rourke of the National Association of State Fire Marshals told
The Sun, "Some folks who, to date, haven't been involved -- who
missed those initial hearings -- wanted to learn about the LNG
[liquefied natural gas] approval process."
The Sun relates that many community leaders and officials have
been opposing the project.
The terminal would be a potential hazard to nearby homes in
Dundalk, especially to those in Turners Station, The Sun says,
citing sources.
Federal officials had notified AES that the State Highway
Administration would not grant the company access to construct
its pipeline along the Baltimore Beltway. They asked the firm
to present a new route for the pipeline, The Sun states.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Specifically, it also has operations
in India. Generating 44,000 megawatts of electricity through
124 power facilities, the company delivers electricity through
15 distribution companies.
As reported in the Troubled Company Reporter-Latin America on
Oct. 12, 2007, Moody's Investors Service affirmed The AES
Corporation's Corporate Family Rating at B1 and the senior
unsecured rating assigned to its new senior unsecured notes
offering at B1 following its upsizing to USUS$2 billion from
USUS$500 million. LGD assessments are subject to change pending
the final capital structure.
As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1'
rating to AES Corporation's USUS$500 million issue of senior
unsecured notes due 2017. AES' long-term Issuer Default Rating
is rated 'B+' by Fitch. Fitch said the rating outlook is
stable.
COEUR D'ALENE: U.S. Court of Appeals Rejects Rehearing Request
--------------------------------------------------------------
Coeur d'Alene Mines Corporation disclosed that a three-judge
panel of the United States Court of Appeals for the Ninth
Circuit has issued a ruling that denies the Petitions for
Rehearing En Banc filed by Coeur Alaska, the State of Alaska and
Goldbelt, Inc. as well the limited Petition for Rehearing filed
by the Department of Justice, representing the U.S. Forest
Service and the U.S. Army Corps of Engineers.
The same Ninth Circuit three-judge panel had previously ruled on
the legal challenge filed by Southeast Conservation Council, the
Sierra Club and Lynn Canal Conservation challenging the
Kensington Section 404 Permit issued by the U.S. Army Corps of
Engineers. The Federal District Court in Alaska had upheld the
permit, and the Plaintiffs appealed that decision to the Ninth
Circuit in August 2006. The Ninth Circuit three-judge panel
reversed the District Court on May 22, 2007. The Department of
Justice, representing the U.S. Forest Service and the U.S. Army
Corps of Engineers, as well as Coeur Alaska, the State of Alaska
and Goldbelt, a native corporation, all asked the Ninth Circuit
Court to reconsider the prior May 22 decision. The order denies
the reconsideration by this Court.
The Company is continuing its discussions with the Plaintiffs to
explore options for the Kensington Mine to begin production as
well as reviewing a possible appeal to the Supreme Court of the
United States.
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's B- rating.
===============
C O L O M B I A
===============
GOODYEAR TIRE: Earns US$668 Million for Third Quarter 2007
----------------------------------------------------------
The Goodyear Tire & Rubber Company has reported record third
quarter sales of US$5.1 billion, up 3 percent from last year,
offsetting lower volumes with higher prices and a richer product
mix.
Improved pricing and product mix in all five business units
drove revenue per tire up 7 percent over the 2006 quarter.
Lower volumes reflect the strategic decision to exit certain
segments of the private label tire business in North America,
along with weak markets.
"Our outstanding third quarter is evidence of the success we are
seeing in marketing our premium product lines while remaining
focused on improving our cost structure," said Robert J. Keegan,
chairman and chief executive officer. "Despite market
challenges, our results are among the best ever achieved by
Goodyear.
"Our product, brand, customer and geographic mix drove margin
expansion," he said. The company achieved a gross margin of 20
percent in the quarter, up from 17.4 percent a year ago.
"North American Tire delivered dramatic earnings improvement
despite lower volumes. This reflects its new product success,
strong marketing initiatives and cost savings efforts."
Each of the five business units achieved double digit or better
percentage growth in segment operating income for the quarter.
The company's three emerging markets businesses increased sales
15 percent and segment operating income 24 percent over last
year.
Mr. Keegan said the company made further progress during the
third quarter on its plan to achieve US$1.8 billion to US$2
billion in gross cost savings by the end of 2009. "We have now
achieved nearly US$900 million in savings and remain on track to
reach our four-year goal."
Third quarter 2007 income from continuing operations was US$159
million (67 cents per share). This compares to a third quarter
2006 loss from continuing operations of US$76 million (43 cents
per share).
Segment operating income benefited from improved pricing and
product mix of US$179 million in the third quarter of 2007,
which more than offset increased raw material costs of US$23
million.
Favorable foreign currency translation positively impacted sales
by US$232 million and segment operating income by US$33 million
in the quarter.
The 2007 third quarter was also impacted by after-tax
rationalization and accelerated depreciation costs of US$6
million (2 cents per share), tax expense related primarily to a
tax law change of US$12 million (5 cents per share) and a gain
on asset sales of US$10 million (4 cents per share).
The third quarter of 2006 included US$132 million (75 cents per
share) in after-tax rationalization and accelerated depreciation
costs.
Goodyear had third quarter 2007 net income of US$668 million
(US$2.75 per share), which includes discontinued operations of
US$509 million (US$2.08 per share). Included in discontinued
operations was an after-tax gain of US$517 million (US$2.12 per
share) on the sale of the company's Engineered Products
business. In the third quarter of 2006, the company had a net
loss of US$48 million (27 cents per share). All per share
amounts are diluted.
Business Segments
Total segment operating income from continuing operations was
US$382 million in the third quarter of 2007, an all-time high
and up 35 percent from the 2006 period.
Asia Pacific Tire, Latin American Tire, European Union Tire, and
Eastern Europe, Middle East and Africa Tire achieved record
sales.
All five business units had higher segment operating income
compared to last year, with Asia Pacific Tire and Eastern
Europe, Middle East and Africa Tire setting records for any
quarter. Segment operating income for European Union Tire and
Latin American Tire set third quarter records.
North American Tire third quarter sales were down 6 percent
compared to the 2006 period, primarily due to lower volume
resulting from the company's exit from certain segments of the
private label tire business as well as weak original equipment
and replacement markets. This was partially offset by market
share gains in Goodyear brand tires and improved pricing and
product mix.
Third quarter segment operating income is the highest since the
third quarter of 2001. It was up 247 percent compared to the
2006 quarter due to improved pricing and product mix of US$60
million, which more than offset increased raw material costs of
US$8 million.
European Union Tire third quarter sales increased 9 percent over
last year as a result of improved pricing and product mix and a
favorable impact from currency translation of US$108 million,
which more than offset lower volume.
Segment operating income for the third quarter increased 11
percent compared to 2006 as pricing and product mix improvements
of US$55 million more than offset US$13 million in higher raw
material costs. Also impacting results were favorable foreign
currency translation of US$7 million, increased conversion costs
and lower unit volume.
Eastern Europe, Middle East and Africa Tire third quarter sales
were up 13 percent compared to 2006. This resulted from improved
pricing and product mix and a favorable impact from currency
translation of US$37 million that more than offset lower unit
volume.
Segment operating income improved 12 percent for the third
quarter due to improved pricing and product mix of US$31 million
that more than offset less than US$2 million in higher raw
material costs. Also impacting results were favorable foreign
currency translation of US$5 million as well as higher
conversion costs, partially the result of a strike in South
Africa, and lower volume.
Latin American Tire sales increased 20 percent from the third
quarter of 2006 due to higher unit volume, improved pricing and
product mix and a favorable impact from currency translation of
US$40 million.
Third quarter 2007 segment operating income increased 29 percent
from last year due to higher unit volume and improved pricing
and product mix of US$20 million, which more than offset higher
raw material costs of US$5 million. Results also benefited from
favorable currency translation of US$18 million. Higher
conversion costs were a partial offset.
Asia Pacific Tire third quarter sales were 12 percent higher
than the 2006 period primarily due to improved pricing and
product mix and a favorable impact from currency translation of
US$40 million, which offset lower volume.
Segment operating income increased 46 percent in the 2007 third
quarter, primarily due to improved pricing and product mix of
US$13 million, reduced raw material costs of US$4 million and
US$3 million of favorable foreign currency translation. Higher
SAG costs were a partial offset.
About Goodyear
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. Goodyear Tire has marketing operations in almost
every country around the world including Chile, Colombia,
Guatemala, Jamaica and Peru in Latin America. Goodyear employs
more than 80,000 people worldwide.
* * *
As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services raised its ratings on
Goodyear Tire & Rubber Co., including its corporate credit
rating to 'BB-' from 'B+'. In addition, the ratings were
removed from CreditWatch where they were placed with positive
implications on May 10, 2007.
===================
C O S T A R I C A
===================
CAREY INT'L: Moody's Withdraws Ratings After Refinancing
--------------------------------------------------------
Moody's has withdrawn the ratings of Carey International, Inc.'s
senior secured credit facilities following the company's recent
refinancing of these facilities. Moody's also withdrew the
company's B3 Corporate Family Rating.
These ratings have been withdrawn:
-- US$35 million senior secured first lien revolving credit
facility due 2010, to B2 (LGD2, 21%);
-- US$80 million senior secured first lien term loan B
facility due 2011, to B2 (LGD2, 21%);
-- US$85 million senior secured second lien term loan facility
due 2012, to Caa3 (LGD5, 74%);
-- Corporate Family Rating, B3; and
-- Probability of Default Rating, Caa2.
Headquartered in Washington, D.C., Carey is a leading provider
of limousine services serving 550 cities in 65 countries. Its
Latin American operations include Bahamas, Barbados, Bermuda,
Brazil, Chile, Costa Rica, Mexico, Peru, Puerto Rico, and
Trinidad and Tobago. Revenues for the year ended May 31, 2007
were about US$253 million.
===================================
D O M I N I C A N R E P U B L I C
===================================
ASHMORE ENERGY: Acquires 84.4% Interest on Jamaica Private
----------------------------------------------------------
AEI fka Ashmore Energy International has acquired 84.4% indirect
interest in Jamaica Private Power Company Ltd. The transaction
was closed today, and terms of the agreement were not disclosed.
JPPC is a 63 MW fuel-fired independent power producer located in
Rockfort, Kingston, Jamaica.
In June, AEI had announced its intent to purchase 42.3% of JPPC
from CMS Energy. In addition to closing this transaction, AEI
has also purchased an additional 24.1% of JPPC from Atlantic
Power Corporation and 18.0% from Energy Investors Funds, giving
AEI a total 84.4% ownership in the company.
"We are pleased to announce the acquisition of JPPC," said
Emilio Vicens, AEI's Vice President, Business Development.
"JPPC broadens our geographic reach by adding a new country to
our operating platform while leveraging our deep experience in
the Caribbean Basin and Latin America and further strengthening
our position as a key player in the region's energy market."
Ashmore Energy International Ltd. --
http://www.ashmoreenergy.com-- owns and operates a portfolio of
energy infrastructure assets in power generation, transmission,
and distribution of natural gas, gas liquids, and electric
power. Ashmore Energy's portfolio, directly or indirectly,
consists of 19 companies in 14 countries, most of which are
located in Latin America. The company's largest asset is
Brazilian electric distribution company, Elektro, which
represents approximately 43% of EBITDA, and 55.3% of fiscal 2006
consolidated cash flow to parent company Ashmore Energy. The
company also operates a power plant in the Dominican Republic.
* * *
On April 2007, Standard & Poor's Ratings Services assigned its
'B+' secured debt rating and '3' recovery rating to Ashmore
Energy International's US$105 million synthetic revolving credit
facility due in 2012. At the same time, Standard & Poor's
affirmed its 'B+' corporate credit rating on Ashmore Energy; its
'B+' senior secured debt rating and '3' recovery rating on its
US$395 million revolving credit facility due 2012, which was
reduced from US$500 million; and its 'B+' senior secured debt
rating and '3' recovery rating on Ashmore Energy's US$1 billion
term loan due in 2014. AEI Finance Holding LLC is a co-borrower
to Ashmore Energy's bank facility. S&P said the outlook is
stable.
On February 2007, Fitch Ratings assigned a BB Issuer Default
rating to Ashmore Energy International Ltd. and rated its US$500
million senior revolver credit facility at BB.
Also, Moody's Investors Service assigned a Ba3 rating to the
senior secured credit facilities.
=============
E C U A D O R
=============
* ECUADOR: Awards Apaika Nenke Field Dev't Pact to Petrobras
------------------------------------------------------------
Petrobras Energia SA has been awarded an environmental license
to develop the Apaika Nenke field on block 31 in Ecuador,
Business News Americas reports.
The company said that it is performing economic feasibility
studies on the block in the northeast of Ecuador, the same
report adds.
"The project concept was based on the use of modern exploration
and production techniques, nature preservation and social
aspects in strict compliance with the Ecuadorian regulatory
requirements," Petrobras told BNamericas.
The project is part of Ecuador's Environmental Improvement
Scheme that was approved in December 2006.
Petrobras Energia, S.A. is headquartered in Buenos Aires,
Argentina. Its majority owner, Petrobras, is based in Rio de
Janeiro, Brazil.
* * *
As reported in the Troubled Company Reporter on Jan. 25, 2007,
Fitch Ratings downgraded the long-term foreign currency Issuer
Default Rating of Ecuador to 'CCC' from 'B-', indicating that
default is a real possibility in the near term.
In addition, these ratings were downgraded:
-- Uncollateralized foreign currency bonds to
'CCC/RR4' from 'B-/RR4';
-- Collateralized foreign currency Par and Discount
Brady bonds to 'CCC+/RR3' from 'B/RR3'; and
-- Short-term foreign currency IDR to 'C' from 'B'.
Fitch also affirmed the Country ceiling rating at 'B-'.
* ECUADOR: Fitch Affirms & Removes Junk Ratings from Watch Neg.
---------------------------------------------------------------
Fitch Ratings affirms and removes from Rating Watch Negative the
long-term foreign currency Issuer Default Rating of Ecuador at
'CCC', the country ceiling at 'B-' and the short-term IDR at
'C'. The Rating Outlook is Stable. In addition, the following
bond ratings were affirmed:
-- Uncollateralized foreign currency bonds at 'CCC/RR4';
-- Collateralized foreign currency Par and Discount Brady
bonds at 'CCC+/RR3'.
The stable rating outlook reflects a perceived reduction in risk
of a potential distressed debt exchange in the near term.
"While Ecuador's 'CCC' IDR indicates that default is a real
possibility over Fitch's rating horizon, Fitch believes at this
time that the government's manageable financial position
provides a sufficient counterbalance to Ecuador's key credit
weakness, which is its willingness to pay," says Theresa Paiz
Fredel, Senior Director, Sovereigns. This is further
substantiated by the government's public statements that it will
service its debt obligations as long as it does not interfere
with its spending commitments and by the inclusion of debt
service in the 2008 budget.
Oil-related trust accounts, which reached US$1.2 billion at the
end of August 2007, bolster the government's financial position
as these assets have been used to fund capital expenditures and
debt buybacks in the past. Nevertheless, Fitch notes that
financing spending through the use of the oil trusts is not
sustainable and further increases the vulnerability of the
country to fluctuations in the international price of oil. In
addition, government revenues could be positively affected
through the renegotiation of contracts with foreign oil
companies, which could potentially increase its share of extra-
revenues derived from high international prices. Moreover,
Fitch believes that access to CAF funding is likely to continue
over the forecast period. In addition, Venezuela remains a
potential 'lender of last resort' and could replicate the Bono
del Sur mechanism to provide financial resources to Ecuador.
Although liquidity remains tight, at a forecasted US$3.3 billion
in year-end 2007 official reserves, it more than covers 2008
public external debt service of US$1.4 billion. External bond
debt service of US$450 million amounts to about 1.1% of
estimated gross domestic product and total central government
financing requirements are estimated at about 4.9% of GDP in
2008, low when compared to other speculative grade sovereigns.
As willingness to pay remains a key credit concern, Fitch will
monitor the outcome of the government's commission to 'evaluate
the legitimacy of Ecuador's external debt' as well as other
political developments which could potentially affect debt
service. Indications of reduced willingness to service debt or
an announcement of a distressed debt exchange could increase
downward pressures on the sovereign's ratings. Conversely,
evidence of enhanced willingness or strengthened capacity to
service bond debt according to original terms could benefit
creditworthiness.
=====================
E L S A L V A D O R
=====================
ALCATEL-LUCENT: Dresdner Kleinwort Maintains Buy Rating on Firm
---------------------------------------------------------------
Dresdner Kleinwort analyst Per Lindberg has kept his "buy"
rating on Alcatel-Lucent's shares, Newratings.com reports.
According to Newratings.com, the target price for Alcatel-
Lucent's shares was set at EUR8.
Mr. Lindberg said in a research note that Alcatel-Lucent sold
its 12.3% equity stake in Avanex for EUR33 million to Pirelli.
The sale shows Alcatel-Lucent's commitment to building up a cash
reserve to fund additional restructuring requirements,
Newratings.com states, citing Mr. Lindberg.
Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users. Alcatel-Lucent maintains operations in 130 countries,
including, Austria, Germany, Hungary, Italy, Netherlands,
Ireland, Canada, United States, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Peru, Venezuela, Indonesia, China,
Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and
Lucent Technologies Inc. completed their merger transaction, and
began operations as a communication solutions provider under the
name Alcatel-Lucent on Dec. 1, 2006.
* * *
As reported on Sep. 19, 2007, that Standard & Poor's Ratings
Services revised its outlook on international equipment supplier
Alcatel-Lucent and related entity Lucent Technologies Inc. to
stable from positive. At the same time, the 'BB-' long-term
corporate credit ratings on the group were affirmed. The 'B'
short-term corporate credit rating on Alcatel-Lucent and 'B-1'
short-term rating on Lucent Technologies were also affirmed.
As reported on April 13, 2007, Fitch Ratings affirmed Alcatel-
Lucent's ratings at Issuer Default 'BB' with a Stable Outlook,
senior unsecured 'BB' and Short-term 'F2' and simultaneously
withdrawn them.
As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
ALCATEL-LUCENT: Pittsburgh Med Center US$277MM Deal on Sched.
-------------------------------------------------------------
The long-term, US$277 million agreement announced in November of
2006 between Alcatel-Lucent and the University of Pittsburgh
Medical Center is progressing on schedule, as Alcatel-Lucent
hits key milestones.
UPMC's data center expansion projects are well underway; the
optical and IP/MPLS metro backbone will be carrying live
applications at the beginning of December; and the North
American headquarters project for U.S. Steel Tower has been
launched. In addition to moving forward within the scope of the
original contract, Alcatel-Lucent, in conjunction with its new
value-added reseller Johnson Controls, has been awarded an
additional US$11.8 million contract for a voice and data
wireless infrastructure project at the new Lawrenceville campus
for Children's Hospital of Pittsburgh of UPMC.
"A complete transformation of voice, data and video networking
on wired, wireless and optical infrastructures is a significant
undertaking," commented Mark Gilbert, industry analyst. "A
transformation of this type can demonstrate the real impact
communications can have in the advancement of health care
delivery."
In preparation for significant growth, two UPMC data centers
have been enlarged by over 3,000 square feet. Alcatel-Lucent is
currently working with clinical and data center administrative
system managers to design a multiple campus WLAN for mobile
users, and with a variety of third party manufacturers to
provide patient monitoring, nursing management systems, and
other critical applications.
The Alcatel-Lucent optical and IP/MPLS metro backbone, on
schedule for completion in December, will provide UPMC with a
foundation over which health care providers, administrators,
vendors and patients can communicate through various means with
unparalleled security, speed, and reliability, improving both
business efficiency and the quality of patient care.
Work began in September on the installation of voice, video, and
data infrastructure in the U.S. Steel building in Pittsburgh,
PA, which will house the executive headquarters of UPMC.
"With UPMC, Alcatel-Lucent is designing, installing, and
implementing a communications model that merges state-of-the-art
technology with a clear focus on user needs," said Hubert de
Pesquidoux, President of Alcatel-Lucent's Enterprise activities.
"Beyond physical infrastructure, our companies are building a
relationship to develop new technologies and applications that
will improve not only the healthcare industry, but patient care
as well."
"UPMC and Alcatel-Lucent have begun combining world class
healthcare and technology expertise to deliver the innovative
technologies necessary to create unbound healthcare," added Dan
Drawbaugh, Chief Information Officer, UPMC. "Over the next two
years, UPMC and Alcatel-Lucent will lead the way in building one
of the most advanced communications networks within the
healthcare industry underscoring UPMC's mission of enhanced
patient care."
About University of Pittsburgh Medical Center
The University of Pittsburgh Medical Center (UPMC) --
http://www.upmc.com-- is the largest integrated health care
enterprise in Pennsylvania and one of the leading nonprofit
health systems in the country. It has appeared eight times on
the prestigious U.S. News & World Report Honor Roll of
"America's Best Hospitals," most recently earning 13th position
in 2007. Widely recognized for its innovations in patient care,
research, technology and health care management, UPMC has
transformed the economic landscape in western Pennsylvania. The
region's largest employer, with 45,000 employees and nearly US$7
billion in revenue, UPMC comprises 19 tertiary, specialty and
community hospitals, 400 outpatient sites and doctors' offices,
retirement and long-term care facilities, an insurance plan, and
international ventures. Nearly 5,000 physicians are affiliated
with UPMC, including more than 2,300 employed physicians. Since
April 2005, UPMC has signed joint development agreements with
such industry leaders as IBM, Cerner, Alcatel and dbMotion
valued at more than USD 175 million. UPMC and its partners aim
to commercialize innovative technologies and services that will
enhance the safety and efficiency of health care worldwide.
About Alcatel-Lucent in Healthcare
For healthcare providers and patients, Alcatel-Lucent provides a
complete platform that improves the patient's customer
experience and the efficiency of the provider's operations by
integrating communication throughout the healthcare delivery
system. Alcatel-Lucent, ensures the protection of patient data
and HIPAA compliance while also improving the speed of
notification and routing of critical information. Alcatel-
Lucent brings together all of the key infrastructure to create
an end-to-end solution that connects contact centers, wireless
medical devices, patient information systems and other critical
technology.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users. Alcatel-Lucent maintains operations in 130 countries,
including, Austria, Germany, Hungary, Italy, Netherlands,
Ireland, Canada, United States, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Peru, Venezuela, Indonesia, China,
Australia, Brunei and Cambodia. On Nov. 30, 2006, Alcatel and
Lucent Technologies Inc. completed their merger transaction, and
began operations as a communication solutions provider under the
name Alcatel-Lucent on Dec. 1, 2006.
* * *
As reported on Sep. 19, 2007, that Standard & Poor's Ratings
Services revised its outlook on international equipment supplier
Alcatel-Lucent and related entity Lucent Technologies Inc. to
stable from positive. At the same time, the 'BB-' long-term
corporate credit ratings on the group were affirmed. The 'B'
short-term corporate credit rating on Alcatel-Lucent and 'B-1'
short-term rating on Lucent Technologies were also affirmed.
As reported on April 13, 2007, Fitch Ratings affirmed Alcatel-
Lucent's ratings at Issuer Default 'BB' with a Stable Outlook,
senior unsecured 'BB' and Short-term 'F2' and simultaneously
withdrawn them.
As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Ends Franchises with GB Airways & Loganair
-----------------------------------------------------------
British Airways Plc is to end its franchise agreement with GB
Airways from March 2008 and intends to start services on some of
the routes operated under the franchise.
British Airways plans to start services from Heathrow to Faro
and Malaga and from Gatwick to Faro, Gibraltar, Ibiza, Malaga,
Palma and Tunis. The new services will start from
March 30, 2008.
The airline will also end its franchise with Loganair from
Oct. 25, 2008, and begin a codeshare arrangement with the
Scottish carrier.
"UK franchises have outlived their purpose. EasyJet has made an
offer to buy GB Airways and this has enabled us to end the
franchise agreement early. We had an option to buy GB Airways
but we rejected it," British Airways chief executive Willie
Walsh, said. "We have a significant base at Gatwick and our
focus will be on maintaining and developing it as an
integral part of our business."
There will be a transition period until the end of the franchise
agreements. British Airways, GB Airways, easyJet and Loganair
are committed to ensuring a smooth transition for passengers
during this period.
GB Airways will continue to operate as a British Airways'
franchise partner on their existing network to destinations in
Europe and North Africa until March 29, 2008. Loganair will
continue to operate as a franchise partner on Scottish routes
until Oct. 25, 2008.
The deal between GB Airways and easyJet is expected to be
completed within eight weeks. During this period flights will
operate as normal. On completion, passengers can accept to be
rebooked on easyJet or will be entitled to a full refund.
The BMED franchise ended Oct. 27, 2007.
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
As reported on Aug. 16, 2007, Moody's Investors Service upgraded
the senior unsecured rating of British Airways plc to Ba1, one
notch lower than the Corporate Family Rating (upgraded to Baa3,
stable outlook), reflecting the subordination of unsecured debt
to a substantial portion of secured debt.
The debt instruments affected by the rating action are:
-- GBP100 million 10.875% senior unsecured notes due 2008 to
Ba1 from Ba2;
-- GBP250 million 7.25% senior unsecured notes due 2016 to
Ba1 from Ba2;
-- US$115 million 5.25% and US$85 million 7.625% senior
unsecured industrial revenue notes due 2032 to Ba1 from
Ba2;
-- EUR300 million 6.75% perpetual guaranteed preferred
securities to Ba2 from Ba3 issued by British Airways
Finance (Jersey) L.P.
TECO ENERGY: Fitch Places BB+ Ratings on Watch Positive
-------------------------------------------------------
Fitch Ratings has placed these ratings of TECO Energy, Inc. and
its primary operating subsidiary, Tampa Electric Company on
rating watch positive:
TECO Energy, Inc.:
-- Issuer Default Rating 'BB+';
-- Senior Unsecured debt 'BB+'.
Tampa Electric Company
-- IDR 'BBB';
-- Senior unsecured debt 'BBB+'.
Approximately US$3.4 billion of debt is affected by the ratings
actions.
The rating watch positive of TECO Energy reflects Fitch's
expectation that the approximate US$370 to US$380 million of net
proceeds from the sale of TECO Transport Corp. will be used to
repay parent debt and reduce leverage. TECO Energy announced an
agreement to sell the Transport barge operations on
Oct. 29, 2007. Fitch expects to resolve the rating watch
positive status after the US$500 million parent company debt
reduction plan is substantially completed. At this time, Fitch
considers likely a one-notch upgrade of TECO Energy to 'BBB-'.
While the timing of closing of the Transport sale and associated
debt reduction cannot be predicted with certainty, TECO and the
purchaser, an affiliate of Greenstreet Equity Partners, L.P.,
anticipate closing the transaction by Dec. 31, 2007. In an
initial step towards the goal of reducing parent debt by US$500
million by no later than December 2008, TECO retired US$110
million of Dock and Wharf bonds at Transport on the maturity
date in September 2007 using cash on hand.
TECO Energy's liquidity position is considered satisfactory.
Nearly all of TECO Energy's US$200 million committed bank
revolving credit facility is available and Tampa Electric has
limited borrowings under its bank facilities. Cash on hand was
US$220 million as of June 30, 2007. There are nominal debt
maturities in 2008 and 2009.
The sale of Transport will enable TECO Energy to accelerate the
parent level debt reduction effort. Fitch forecasts that
repayment of the aforementioned US$500 million of parent company
debt will drive down the consolidated ratio of debt-to operating
EBITDA to approximately four times in 2008. Moreover, the
divestiture of Transport will lower consolidated business risk
because an increasing proportion of consolidated cash flows will
be generated by lower risk regulated utilities. TECO Energy
repaid approximately US$467 million of holding company debt and
parent guaranteed debt in the first nine months of 2007. TECO
Energy's consolidated ratio of debt to EBITDA was 5.4 for the
twelve months ending June 30, 2007, compared to 5.7 at
Dec. 31, 2006.
The rating watch positive of Tampa Electric reflects the
improvement in TECO Energy's consolidated leverage, lower group
business risk, and strong stand-alone financials. Tampa
Electric's credit ratios are strong for the 'BBB' rating
category with an EBITDA to interest ratio of 4.6 as of
June 30, 2007. Fitch anticipates Tampa Electric will be able to
maintain a strong balance sheet as it funds system growth and
investments necessary to maintain a safe and reliable system.
The cancellation of the proposed Polk IGCC plant will reduce
capital spending at Tampa Electric in the near-term, but will
likely lead to greater reliance on gas-fired peaking and
combined cycle capacity over time.
TECO Energy, Inc. -- http://www.tecoenergy.com/-- is an
integrated energy-related holding company with regulated utility
businesses, complemented by a family of unregulated businesses.
Its principal subsidiary, Tampa Electric Company, is a regulated
utility with both electric and gas divisions (Tampa Electric and
Peoples Gas System). Other subsidiaries are engaged in
waterborne transportation, coal and synthetic fuel production
and electric generation and distribution in Guatemala.
=============
J A M A I C A
=============
AIR JAMAICA: New Board To Discuss Airline's Financial Position
--------------------------------------------------------------
The new Air Jamaica Board will discuss proposals for the
improvement of the airline's financial position on Thursday,
Radio Jamaica reports.
Air Jamaica Executive Chairperson Shirley Williams told Radio
Jamaica that "a comprehensive overhaul of the debt-burdened
airline and the appointment of an interim President are her
primary focus at this time."
Air Jamaica must be completely restructured at all levels to be
restored to viability, Radio Jamaica states, citing Ms.
Williams.
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private in
1994. The Jamaican government does not plan to on Air Jamaica
permanently.
* * *
On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest payments.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.
===========
M E X I C O
===========
AMERICAN AXLE: Reports Third Quarter Net Income of US$13.1 Mil.
---------------------------------------------------------------
American Axle & Manufacturing Holdings, Inc., has reported sales
and earnings for the third quarter of 2007.
Third Quarter 2007 highlights
-- Third quarter sales of US$774.3 million
-- 4% year-over-year increase in total light truck production
volumes as compared to the third quarter of 2006
-- Content-per-vehicle of US$1,303, approximately 8% higher
than the prior year
-- Gross profit of US$80.7 million, or 10.4% of sales
-- Operating income of US$28.7 million, or 3.7% of sales
-- Net earnings of US$13.1 million or US$0.25 per share
-- Net cash provided by operating activities of US$331.6
million year-to-date, more than double the prior year
American Axle's earnings in the third quarter of 2007 were
US$13.1 million or US$0.25 per share. This compares to a net
loss of US$62.9 million or US$1.25 per share in the third
quarter of 2006.
American Axle's earnings in the third quarter of 2007 reflect
the impact of special charges and other non-recurring operating
costs of US$7.8 million, or US$0.13 per share, primarily related
to the redeployment of machinery and equipment and other actions
to rationalize underutilized capacity. Also included in this
total were charges of US$2.7 million, or US$0.04 per share,
associated with a voluntary separation program offered to hourly
associates represented by the UAW at American Axle's Buffalo
Gear, Axle & Linkage facility in Buffalo, New York.
American Axle's earnings in the third quarter of 2007 also
reflect the impact of a work stoppage experienced by our largest
customer, GM, during the last week of September. American Axle
estimates the impact of lost sales and other costs and expenses
related to this work stoppage to be approximately US$2.8
million, or US$0.04 per share, in the third quarter of 2007.
American Axle's earnings in the third quarter of 2006 included a
special charge of US$91.2 million related to the supplemental
unemployment benefits estimated to be payable to UAW associates
who were expected to be permanently idled through the end of the
current contract period in February 2008. American Axle also
recorded a US$1.9 million special charge in the third quarter of
2006 related to estimated postemployment costs for associates at
our European operations.
"In the third quarter of 2007, American Axle continued to
achieve solid gains in productivity and made steady progress on
its ongoing structural cost-reduction initiatives," said
American Axle's Co-Founder, Chairman of the Board & Chief
Executive Officer Richard E. Dauch. "American Axle will
continue to take the necessary actions to achieve sustainable
market cost competitiveness in our global operations. This
includes a strategic emphasis on improving American Axle's
manufacturing capacity utilization and jointly developing new
innovative labor agreements to enhance American Axle's operating
efficiency and flexibility."
Net sales in the third quarter of 2007 were US$774.3 million as
compared to US$701.2 million in the third quarter of 2006.
Customer production volumes for the full-size truck and SUV
programs American Axle currently supports for General Motors and
Chrysler were approximately the same as compared to the prior
year. American Axle estimates that customer production volumes
for its mid-sized truck and SUV programs increased approximately
25% in the quarter on a year-over-year basis. Non-GM sales
represented approximately 24% of American Axle's total sales in
the third quarter of 2007.
American Axle's content-per-vehicle is measured by the dollar
value of its product sales supporting General Motors's North
American truck and SUV platforms and Chrysler's heavy duty Dodge
Ram pickup trucks. In the third quarter of 2007, American
Axle's content-per-vehicle increased approximately 8% to
US$1,303 as compared to US$1,204 in the third quarter of 2006.
Gross margin in the third quarter of 2007 was 10.4% as compared
to a negative 8.8% in the third quarter of 2006. Operating
income was US$28.7 million or 3.7% of sales in the quarter as
compared to an operating loss of US$110.0 million or negative
15.7% of sales in the third quarter of 2006. In
addition to the impact of the special charges and other non-
recurring operating costs described above, American Axle's
improved gross margin and operating income performance in the
third quarter of 2007 primarily reflects the impact of higher
sales, productivity gains and structural cost reductions
resulting from the attrition programs and other ongoing
restructuring actions.
Net sales in the first three quarters of 2007 were US$2.5
billion, as compared to US$2.4 billion in the first three
quarters of 2006. Gross margin was 11.2% in the first three
quarters of 2007 as compared to 3.8% for the first three
quarters of 2006. Operating income for the first three quarters
of 2007 was US$123.5 million or 5.0% of sales as compared to an
operating loss of US$54.5 million or negative 2.3% of sales for
the first three quarters of 2006.
American Axle's SG&A spending in the third quarter of 2007 was
US$52.0 million as compared to US$48.0 million in the third
quarter of 2006. In the first three quarters of 2007, American
Axle's SG&A spending was US$155.1 million or 6.2% of sales as
compared to US$145.9 million or 6.1% of sales in the first three
quarters of 2006. This year-over-year increase in American
Axle's SG&A expense was attributable to higher profit sharing
accruals and higher stock-based compensation expense due to
increased profitability and stock price appreciation. American
Axle's R&D spending in the first three quarters of 2007 was
approximately US$61.9 million as compared to US$60.6 million in
the first three quarters of 2006.
American Axle defines free cash flow to be net cash provided by,
or used in, operating activities less capital expenditures and
dividends paid. Net cash provided by operating activities in
the first three quarters of 2007 more than doubled to US$331.6
million as compared to US$161.7 million in the first three
quarters of 2006. Capital spending in the first three quarters
of 2007 was down US$110.6 million on a year-over-year basis to
US$132.9 million. Reflecting the impact of this activity and
dividend payments of US$23.8 million, American Axle's free cash
flow of US$174.9 million in the first three quarters of 2007
represents an improvement of US$279.9 million as compared to the
first three quarters of 2006.
Recent Developments
On Aug. 14, 2007, American Axle announced it would offer a
voluntary separation program (Buffalo Separation Program or BSP)
to all hourly associates represented by the UAW at its Buffalo
Gear, Axle & Linkage facility in Buffalo, New York. The program
commenced in September 2007 and is related to American Axle's
previously announced plans to idle a portion of its U.S.
production capacity dedicated to the mid-sized light truck
product range. Under the BSP, American Axle has offered a range
of early retirement incentives and buy-outs to approximately 650
eligible hourly associates. American Axle currently expects to
incur special charges of as much as US$85 million for the BSP,
including pension and other postretirement benefit curtailments
and special termination benefits. As discussed above, American
Axle incurred US$2.7 million in charges related to this
voluntary separation program in the third quarter of 2007.
Non-GAAP Financial Information
In addition to the results reported in accordance with
accounting principles generally accepted in the United States of
America (GAAP) included within this press release, American Axle
has provided certain information, which includes non-GAAP
financial measures. Such information is reconciled to its
closest GAAP measure in accordance with the Securities and
Exchange Commission rules and is included in the attached
supplemental data.
Management believes that these non-GAAP financial measures are
useful to both management and its stockholders in their analysis
of the Company's business and operating performance. Management
also uses this information for operational planning and
decision-making purposes.
Non-GAAP financial measures are not and should not be considered
a substitute for any GAAP measure. Additionally, non-GAAP
financial measures as presented by American Axle may not be
comparable to similarly titled measures reported by other
companies.
About American Axle
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) --
http://www.aam.com/-- and its wholly owned subsidiary, American
Axle & Manufacturing, Inc. manufactures, engineers, designs and
validates driveline and drivetrain systems and related
components and modules, chassis systems and metal-formed
products for light trucks, sport utility vehicles and passenger
cars. In addition to locations in the United States (in
Michigan, New York and Ohio), the company also has offices or
facilities in Brazil, China, Germany, India, Japan, Luxembourg,
Mexico, Poland, South Korea and the United Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Standard & Poor's Ratings Services assigned its
'BB' rating to American Axle & Manufacturing Inc.'s proposed
US$250 million senior unsecured term loan due 2012. The parent
company, American Axle & Manufacturing Holdings Inc., is the
guarantor. Proceeds are expected to be used to repay existing
debt.
GLOBAL POWER: Sells Braden's Asset to Prestige for US$575,000
-------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
authorized Global Power Equipment Group Inc. and its debtor-
affiliates to sell certain asset to Prestige Equipment
Corporation for US$575,000, under an asset purchase agreement
dated Oct. 16, 2007.
Under the agreement, the Debtors will sell the boring mill owned
by Braden Manufacturing LLC, its auxiliary power equipment
segment in Tulsa, Oklahoma. The will also provide an insurance
policy of at least US$700,000 to Prestige Equipment for any
damage to the Debtors' property during the removal of the
equipment.
In addition, Prestige Equipment will pay all existing brokerage
claims to Tom Lowkes of Fabricating & Production Machinery in
Spencer, Massachusetts.
At the closing date, Prestige Equipment will immediately pay the
Debtors the entire purchase price by wire transfer.
Headquartered in Oklahoma, Global Power Equipment Group Inc.
(Pink Sheets: GEGQQ) -- http://www.globalpower.com/-- is a
design, engineering and manufacturing firm providing an array of
equipment and services to the energy, power infrastructure and
process industries. The company designs, engineers and
manufactures a comprehensive portfolio of equipment for gas
turbine power plants and power-related equipment for industrial
operations, and has over 40 years of power generation industry
experience. The company's equipment is installed in power
plants and in industrial operations in more than 40 countries on
six continents. In addition, the company provides routine and
specialty maintenance services to nuclear, coal-fired, fossil,
and hydroelectric power plants and other industrial operations.
The company has facilities in Plymouth, Minnesota; Tulsa,
Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey,
Mexico; Shanghai, China; Nanjing, China; and Heerleen, The
Netherlands.
The company filed for chapter 11 protection on Sept. 28, 2006
(Bankr. D. Del. Case No. 06-11045). Thomas E. Lauria, Esq.,
Matthew C. Brown, Esq., Gerard Uzzi, Esq., John Cunningham,
Esq., and Frank Eaton, Esq., at White & Case LLP; and Jeffrey M.
Schlerf, Esq., Eric M. Sutty, Esq., and Mary E. Augustine, Esq.,
at The Bayard Firm, represent the Debtors. Kurtzman Carson
Consultants LLC acts as the Debtors' noticing and claims agent.
At Oct. 31, 2006, Global Power's balance sheet showed total
assets of US$177,758,000 and total debts of US$99,017,000
Jeffrey S. Sabin, Esq., and David M. Hillman, Esq., at Schulte
Roth & Zabel LLP; and Adam G. Landis, Esq., and Kerri K.
Mumford, Esq., at Landis Rath & Cobb LLP, represent the Official
Committee of Unsecured Creditors. The Official Committee of
Equity Security Holders is represented by Howard L. Siegel,
Esq., and Steven D. Pohl, Esq., at Brown Rudnick Berlack Israels
LLP.
HARMAN INTERNATIONAL: Declares US$0.0125 Per Share Dividend
-----------------------------------------------------------
Harman International Industries Incorporated has declared a cash
dividend of US$0.0125 cents per share for the first quarter
ended Sept. 30, 2007.
The quarterly dividend will be paid on Nov. 21, 2007, to each
stockholder of record as of the close of business on
Nov. 8, 2007.
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.
HERBALIFE LTD: Paying US$0.20 Per Share Cash Dividend on Dec. 14
----------------------------------------------------------------
Herbalife Ltd.'s Board of Directors approved a quarterly cash
dividend of US$0.20 per share to shareholders of record
effective Nov. 30, 2007, payable on Dec. 14, 2007.
The company will release its third quarter financial results
after the close of trading on the NYSE on Nov. 6, 2007. The
following day, Nov. 7, 2007 at 8 a.m. PT (11 a.m. ET),
Herbalife's senior management team will host an investor
conference call to discuss its third quarter financial results
and provide an update on current business trends. The company
will provide updated 2007 guidance and, for the first time, 2008
financial guidance.
Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/--
Herbalife, now in its 26th year, conducts business in 62
countries. The company does business with several manufacturers
worldwide and has its own manufacturing facility in Suzhou,
China as well as major distribution centers in Venray,
Netherlands, Japan, Los Angeles, Calif., Memphis, Tenn.,
Guadalajara, Mexico, and El Salvador. The company also has
operations in Venezuela.
* * *
As reported in the Troubled Company Reporter on April 5, 2007,
Standard & Poor's Ratings Services said that its 'BB+' corporate
credit rating on Los Angeles-based Herbalife Ltd. remains on
CreditWatch with negative implications following the company's
announcement that the company's board of directors has rejected
a bid to be acquired by Whitney V L.P. The board indicated that
although it views Whitney's bid as too low, it would consider an
improved offer.
MOVIE GALLERY: US Trustee Amends Creditors Committee Composition
----------------------------------------------------------------
W. Clarkson McDow, Jr., the U.S. Trustee for Region 4, amended
the membership of the Official Committee of Unsecured Creditors
in the Chapter 11 cases of Movie Gallery, Inc., and its debtor-
affiliates.
The U.S. Trustee appointed Universal Studios Home Entertainment
to the Committee, replacing The Bank of New York. In addition,
William Kaye, senior bankruptcy analyst at JLL Consultants,
representing Coca-Cola Enterprises Bottling Companies, is
appointed as the Committee Chairperson.
The Creditors Committee members are:
(a) US Bank National Assoc. as Indentured Trustee
Attn: Laura L. Moran, VP
One Federal St., 3rd Floor
Boston, Massachusetts 02110
Tel: (617) 603-6429
Fax: (617) 603-6640
(b) Paramount Home Entertainment
Attn: Andi Marygold, SVP
555 Melrose Ave.
Bluhdorn #213
Hollywood, California 90038
Tel: (323) 956-5489
Fax: (323) 862-1183
(c) The Inland Real Estate Group of Companies, Inc.
Attn: Craig B. Young, Esq.
Connolly, Bove, Lodge & Hutz, LLP
1875 Eye Street, NW 11th Flr
Washington, DC 20006
Tel: (202) 572-0313
Fax: (202) 293-6229
(d) Coca-Cola Enterprises Bottling Companies
Attn: William Kaye, Senior Bankruptcy Analyst
31 Rose Lane
East Rockaway, New York 11518
Tel: (516) 374-3705
Fax: (516) 569-6531
(e) Southern Development of Mississippi
Attn: Robert N. Graham, President
P.O. Box 1207
Purvis, Mississippi 39475
Tel: (601)-794-2253
Fax: (601) 794-5468
(f) Twentieth Century Fox Home Entertainment
Attn: Al Leonard, Credit Manager
2121 Avenue of the Stars #2500
Los Angeles, California 90067
Tel: (310) 369-7289
Fax: (310) 969-0545
(g) Universal Studios Home Entertainment
Attn: John Roussey, Vice President Credit
10 Universal City Plaza
Universal City, California 91401
Tel: (818) 777-7601
Pursuant to Section 1103 of the Bankruptcy Code, the Creditors
Committee may:
-- consult with the Debtor concerning the administration of
the bankruptcy case;
-- investigate the acts, conduct, assets, liabilities, and
financial condition of the Debtors, the operation of the
Debtors' business and the desirability of the
continuance of the business, and any other matter
relevant to the case or to the formulation of a plan of
reorganization for the Debtors;
-- participate in the formulation of a plan, advise its
constituents regarding the Committee's determinations as
to any plan formulated, and collect and file with the
Court acceptances or rejections of the plan;
-- request the appointment of a trustee or examiner; and
-- perform other services as are in the interest of its
constituents.
The Creditors Committee may retain counsel, accountants, or
other agents, to represent or perform services for the group.
About Movie Gallery
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 Oct. 18, 2007.
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. 6; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Wants Lease Rejection Procedures Approved
--------------------------------------------------------
Movie Gallery, Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Eastern District of Virginia to approve
expedited procedures for rejecting executory contracts and
unexpired non-residential real property leases.
As part of their pre-bankruptcy filing and ongoing restructuring
efforts, the Debtors either ceased or were in the process of
ceasing operations at certain store locations and reviewing
their other operations and assets. The Debtors continue to
evaluate their assets to seek to maximize the value of their
estates. The Debtors believe the proposed rejection procedures
will facilitate this process.
The Debtors will file and serve a written rejection notice
together with the order approving the expedited rejection
procedures by overnight delivery service upon applicable
parties-in-interest.
The Rejection Notice will set forth relevant information related
to each Contract or Lease to be rejected, and inform counter-
parties to the Designated Contracts and Leases and other
parties-in-interest of the applicable procedures to oppose the
rejection.
The Debtors tell the Court that the proposed Rejection
Procedures will streamline their ability to reject Designated
Contracts and Leases that do not provide sufficient benefit to
their estates, which will minimize unnecessary postpetition
obligations, while providing affected parties with adequate
notice of rejection and an opportunity to object within a
reasonable time period.
A full-text copy of the proposed Rejection Procedures is
available for free at http://researcharchives.com/t/s?24a4
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 Oct. 18, 2007.
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. 6; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Wants to Perform Under Sopris Lock Up Agreement
--------------------------------------------------------------
Movie Gallery, Inc. and its debtor-affiliates ask authority from
the U.S. Bankruptcy Court for the Eastern District of Virginia
to perform under the Lock Up Agreement with Sopris Capital
Advisors LLC, and the related restructuring term sheet and
rights offering term sheet.
In addition, the Debtors ask permission to:
(a) pay fees to and reimburse expenses of the Backstop Party;
(b) pay fees and expenses of Sopris' legal and financial
advisors; and
(c) honor their commitments under the Jefferies Engagement
Letter.
To significantly de-leverage their balance sheet and obtain new
capital to compete effectively in the industry, and ultimately
emerge from bankruptcy, Movie Gallery, Inc., and its debtor
affiliates entered into a Lock Up, Voting and Consent Agreement
dated Oct. 14, 2007, with Sopris Capital Advisors LLC, holder
of majority of the Debtors' 11% senior unsecured notes due 2012,
and the lenders holding a majority of the debt under the Second
Lien Credit and Guaranty Agreement.
The Consenting Holders committed to support the Debtors'
restructuring plans, including an agreement to vote to accept a
plan of reorganization consistent with the Plan Term Sheet the
Debtors filed on the Petition Date.
Sopris agreed, among others, to:
(i) convert roughly US$72,000,000, plus accrued interest, in
second lien debt into equity in the reorganized
company; and
(ii) backstop a US$50,000,000 rights offering to be made
available pro rata to the holders of the 11% Senior
Notes, the terms of which are contained in a Rights
Offering Term Sheet.
The commitment of Sopris and certain investment entities
affiliated with Sopris to fully underwrite the Rights Offering
ensures that the Debtors receive the full US$50,000,000,
regardless of whether the Rights Offering is fully subscribed,
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York,
tells the Court.
In exchange for the Backstop Party's commitments, the Debtors
have agreed to pay:
(1) Commitment Fee equal to 2.3% of the US$50 million Rights
Offering amount, upon the Effective Date of the Plan.
The Commitment Fee is to be paid in the form of New MG
Common Stock, and the number of shares is calculated
according to the Plan Term Sheet.
(2) US$2,000,000 Termination Fee, in cash, plus reimbursement
of expenses in the event the Debtors close a merger or
consolidation with another entity.
(3) Expense Reimbursements, including but not limited to, the
fees and expenses of the Backstop Party's attorneys and
financial advisors, provided, however, that the
reimbursement will not include any amounts incurred after
termination of the Lock Up Agreement or the Backstop
Rights Purchase Agreement.
The Debtors have also entered into an engagement letter with
Jefferies & Co., the financial advisor to the Backstop Party,
dated Oct. 25, 2007.
Under the terms of the Jefferies Engagement Letter, the Debtors
have agreed, among other things, to:
-- pay Jefferies a US$125,000 monthly fee;
-- reimburse Jefferies for its reasonable and documented out-
of-pocket expenses;
-- pay Jefferies, under certain circumstances, a US$2,913,854
Transaction Fee; and
-- provide Jefferies with certain indemnification rights.
A full-text copy of the Jefferies Engagement Letter is available
at no charge at http://researcharchives.com/t/s?24a3
Sopris has also hired Sonnenschein Nath & Rosenthal LLP and
Tavenner & Beran, PC to represent it in the Debtors' cases. The
Debtors are agreeing to pay, on a current basis, the reasonable
and documented fees and expenses of Sonnenschein and Tavenner.
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 Oct. 18, 2007.
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. 6; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
SANMINA-SCI CORP: Posts US$1.1 Billion Net loss for FY 2007
-----------------------------------------------------------
Sanmina-SCI Corporation has revenue of US$2.5 billion, compared
to US$2.5 billion in the third quarter ended June 30, 2007 and
US$2.7 billion in the fourth quarter ended Sept. 30, 2006.
Revenue for the year ended Sept. 29, 2007 was US$10.4 billion,
compared to US$11.0 billion in the prior year.
Non-GAAP Financial Results for the Quarter and Fiscal Year
Net income for the fourth quarter 2007 was US$10.2 million,
US$0.02 diluted earnings per share, compared to a net loss of
US$22.8 million, a diluted loss per share of US$0.04 for the
third quarter ended June 30, 2007, and net loss of US$2.1
million, breakeven diluted earnings per share for the fourth
quarter 2006. Net income for fiscal year 2007 was US$22.8
million, US$0.04 diluted earnings per share, compared to
US$102.4 million, US$0.19 diluted earnings per share in the
prior year.
Gross profit was US$134.1 million or 5.4 percent of revenue, a
60 basis point improvement from the prior quarter of US$120.3
million, or 4.8 percent of revenue, and up from US$131.0
million, or 4.8 percent of revenue in the same period a year
ago. Operating income for the quarter was US$42.8 million, up
from US$29.1 million in the prior quarter and up from US$32.1
million for the same period last year. Fiscal 2007 operating
income was US$182.6 million, compared to US$243.7 million in
fiscal 2006 (see Non-GAAP Financial Information).
GAAP Financial Results for the Quarter and Fiscal Year
Fourth quarter GAAP earnings were primarily impacted by a non-
cash impairment charge for goodwill of US$1.1 billion. As a
result of this charge, the company reported a net loss of US$1.1
billion in the fourth quarter of fiscal 2007, compared to a net
loss of US$27.6 million in the prior quarter and a net loss of
US$28.1 million for the same period last year. Diluted loss per
share for the quarter was US$2.10. Net loss for fiscal year
2007 was US$1.1 billion and diluted loss per share was US$2.15.
This charge resulted from the company's annual goodwill
impairment analysis in accordance with Statement of Financial
Accounting Standards No. 142 (SFAS No. 142).
Cash Flow and Balance Sheet Metrics
The company continued to manage its cash flow and balance sheet
metrics, making improvements throughout fiscal 2007.
* Cash flow from operations was US$145 million in fourth
quarter 2007, and US$511 million for fiscal 2007
* Cash and cash equivalents were US$933.4 million, up
US$441.6 million from Q4'06
* Cash cycle days of 29 days represented a 7 day improvement
from Q3'07
* Inventory decreased US$72.7 million, inventory turns
improved to 8.9 in Q4'07
"I am pleased with our gross margin improvement, cash flow
generation and inventory turns during the fourth quarter. We
are confident that we will continue to improve our financial
metrics. We are committed to driving our ROIC above our
weighted cost of capital as we exit fiscal year 2008,"
stated Jure Sola, Chairman and Chief Executive Officer.
"The basis for Sanmina-SCI's operational excellence strategy in
2008 and beyond is to focus on high-end markets that offer the
greatest opportunity for success, invest in leading edge
technology, and provide unparalleled end-to- end manufacturing
solutions to our customers," concluded Mr. Sola.
Personal and Business Computing Division
Consistent with previous announcements made by the company
concerning its personal and business computing business unit,
the company reaffirmed its intentions of separating this
business unit from its core operations either by means of a sale
or other disposition of the business. This business unit
includes the company's personal computing and industry standard
server businesses, their related BTO/CTO operations in Mexico
and Hungary and their associated logistics activities. The
company expect the disposition of this business to occur over
the next twelve months. Accordingly, effective with the first
fiscal quarter 2008, the company expects to account for this
business unit as a discontinued operation in accordance with
SFAS No. 144, Accounting for the Impairment or Disposal of Long-
Lived Assets.
First Quarter Fiscal 2008 Outlook
The following statements are based on current expectations.
These statements are forward-looking and actual results may
differ materially. Please refer to the Risk Factors reported in
the company's annual and quarterly reports on file with the
Securities and Exchange Commission for a description of some of
the factors that could influence the company's ability to
achieve the projected results.
The company provides these guidance with respect to the first
fiscal quarter ending Dec. 29, 2007:
* Revenue is expected to be in the range of US$2.5 billion to
US$2.65 billion
* Non-GAAP diluted earnings per share to be between US$0.02
to US$0.04 Non-GAAP Financial Information
In the commentary set forth above, we present the following non-
GAAP financial measures: gross profit, gross margin, operating
income, operating margin, net income and earnings per share. In
computing each of these non-GAAP financial measures, we exclude
charges or gains relating to: stock-based compensation
expenses, restructuring costs (including employee severance and
benefits costs and charges related to excess facilities and
assets), integration costs (consisting of costs associated with
the integration of acquired businesses into our operations),
impairment charges for goodwill and intangible assets,
amortization expense and other infrequent or unusual items, to
the extent material or which we consider to be of a non-
operational nature in the applicable period.
About Sanmina-SCI
Headquartered in San Jose, California, Sanmina-SCI Corporation
(NasdaqGS: SANM) -- http://www.sanmina-sci.com/-- is a
Electronics Manufacturing Services (EMS) provider focused on
delivering complete end-to-end manufacturing solutions to
technology companies around the world. Service offerings
include product design and engineering, test solutions,
manufacturing, logistics and post-manufacturing repair/warranty
services.
The company has locations in Brazil, China, Ireland, Finland,
Malaysia, Mexico and Singapore, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 27, 2007, Standard & Poor's Ratings Services has revised
its outlook on Sanmina-SCI Corp. to negative from stable, as a
result of continued operating weakness and increasing leverage.
The corporate credit and senior unsecured ratings are affirmed
at 'B+', and the subordinated debt rating is affirmed at 'B-'.
UNITED STEEL: Paying 20 Cents Per Share Dividend on Dec. 10
-----------------------------------------------------------
United States Steel Corporation's Board of Directors has
declared a dividend of 20 cents per share on U.S. Steel Common
Stock. The dividend is payable Dec. 10, 2007, to stockholders
of record at the close of business Nov. 14, 2007.
About U.S. Steel
Headquartered in Pittsburgh, Pennsylvania, United States Steel
Corporation (NYSE: X) -- http://www.ussteel.com/-- manufactures
a wide variety of steel sheet, tubular and tin products; coke,
and taconite pellets; and has a worldwide annual raw steel
capability of 26.8 million net tons. U.S. Steel's domestic
primary steel operations are: Gary Works in Gary, Indiana; Great
Lakes Works in Ecorse and River Rouge, Michigan; Mon Valley
Works, which includes the Edgar Thomson and Irvin plants, near
Pittsburgh and Fairless Works near Philadelphia, Pennsylvania;
Granite City Works in Granite City, Illinois; Fairfield Works
near Birmingham, Alabama; Midwest Plant in Portage, Indiana; and
East Chicago Tin in East Chicago, Indiana. The company also
operates two seamless tubular mills, Lorain Tubular Operations
in Lorain, Ohio; and Fairfield Tubular Operations near
Birmingham, Alabama.
U. S. Steel produces coke at Clairton Works near Pittsburgh, at
Gary Works and Granite City Works. On Northern Minnesota's
Mesabi Iron Range, U.S. Steel's iron ore mining and taconite
pellet operations, Minnesota Taconite and Keewatin Taconite,
support the steelmaking effort, and its subsidiary ProCoil
Company provides steel distribution and processing services.
U.S. Steel's steelmaking subsidiaries U.S. Steel Kosice, s.r.o.,
in Kosice, Slovakia and U.S. Steel Serbia, d.o.o, in Sabac and
Smederevo, Serbia. Acero Prime, the company's joint venture
with Feralloy Mexico, S.R.L. de C.V. and Intacero de Mexico,
S.A. de C.V., provides Mexico's automotive and appliance
manufacturers with total supply chain management services
through its slitting and warehousing facility in San Luis Potosi
and its warehouse in Ramos Arizpe.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 31, 2007, Standard & Poor's Ratings Services has revised
its outlook on Pittsburgh, Pennsylvania-based United States
Steel Corp. to negative from stable and affirmed all ratings for
the steel producer, including its 'BB+' corporate credit rating.
The outlook revision follows the company's recent announcement
that it was acquiring Stelco Inc. (unrated), a Canadian
integrated steel producer, for approximately US$1.9 billion in
cash and assumed debt.
=======
P E R U
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* PERU: Petroperu Inks Plant Supply Contract with Petrobras
-----------------------------------------------------------
Peru's Petroperu and Brazil's Petroleo Brasileiro SA have signed
an accord involving supply for the Iquitos refinery aimed at
reducing costs, Business News Americas reports.
Under the agreement, Petroleo Brasileiro will begin supplying
Iquitos with cracked naphta from its Reman refinery in Manaus,
taking over from Petroperu, which needs to transport the product
from its Talara refinery on the Pacific, the same report adds.
Petroperu's delivery of 10,500 barrels per day of the high-
octane gasoline component takes 30 to 40 days. Petroleo
Brasileiro will only take 8 to 9 days to make the delivery,
BNamericas says.
* * *
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
=====================
HUMANA INC: Teams w/ INSPIRIS To Provide Care in Daytona/Ormond
---------------------------------------------------------------
Humana Inc. has announced a new contract with INSPIRIS to
provide care for eligible enrollees in the Daytona/Ormond Beach
metropolitan area.
INSPIRIS is an expert care and care management company focused
on improving the quality of life for the frail elderly, the
chronically ill and those with disabilities, while reducing the
cost to Medicare Advantage, Medicaid and commercial health
plans. Beginning Nov. 1, INSPIRIS will bring its nurse-
practitioner led teams to serve some 17,000 Humana Medicare
Advantage members in the Daytona/Ormond Beach metropolitan area.
INSPIRIS will provide its nursing home-based services, led by a
registered nurse practitioner in coordination with a physician,
to Humana enrollees in custodial care. Under the long-term care
program, signs and symptoms of declining health status in frail,
elderly patients are recognized early and appropriate
adjustments to therapy are made on a timely basis. The model
has proven to effectively reduce costs, decrease hospital
admissions and utilization of skilled nursing care, improve
outcomes, and to improve patient and family satisfaction.
"Our nurse practitioners visit patients several times a month,
so they can see small changes in a member's condition and adjust
care before they become major health issues," said Mike Tudeen,
INSPIRIS' president and chief executive officer. "This greatly
improves the quality of life for patients who can receive
enhanced care where they live."
Under the contract with Humana, INSPIRIS will also coordinate
care for enrollees in the post-acute care setting for short-term
rehabilitation. Through the program, an INSPIRIS nurse
practitioner visits the patient and makes a clinical assessment,
reviews the therapy plan and coordinates care. The INSPIRIS
team also communicates with the patient's primary care
physician, and works with the patient's family to ensure a
smooth transition from the short-term facility.
"Primary care physicians typically visit their patients in
custodial care once every 60 days, and often coordinate care for
their patients in custodial and skilled nursing care
telephonically," said Steve Lee, MD, chief medical officer,
senior products, for Humana North Central Florida. "The
INSPIRIS nurse practitioner-led model can help detect a
patient's declining health status and coordinate care with the
primary care physician before symptoms become severe. We are
pleased to offer our Daytona-area Humana enrollees this enhanced
care model through our partnership with INSPIRIS."
The need for coordinated, quality care for the frail elderly is
expanding as the first baby boomers reach retirement age.
Between 2005 and 2015, the U.S. Census Bureau projects the over-
65 population to increase by almost 28 percent, while the total
U.S. population increases by just 9 percent. The number of
those over age 85 is expected to increase 16.8 percent over the
same period. About 20 percent of this population is in a long-
term care facility, and about one third report fair or poor
health.
Studies published in the Journal of the American Geriatrics
Society and Gerontologist show that a combination of intense
management by nurse practitioners in the nursing-home setting
can reduce hospitalizations for nursing home residents by 45
percent and emergency room visits by 50 percent. Analysis of
Medicare claims data for an INSPIRIS client population indicated
the INSPIRIS long-term care program reduced hospitalizations by
74 percent and emergency room admissions were reduced by 46
percent.
"The INSPIRIS model emphasizes coordinated, consistent care
focused on prevention, as well as chronic and acute condition
management, delivered in the appropriate setting," Mr. Tudeen
said. "We are delighted that our partnership with Humana will
extend these services to thousands of members in the
Daytona/Ormond Beach market."
About INSPIRIS
INSPIRIS -- http://www.inspiris.com-- is a unique health care
management company focused on improving the quality of life for
the frail elderly, chronically ill and those with disabilities,
while reducing the cost to Medicare Advantage health plans.
INSPIRIS partners with individual health plans to coordinate and
provide care across the diverse settings where members need
care, including post-acute, custodial, assisted living and
hospice.
About Humana Inc.
Humana Inc. (NYSE: HUM), founded in 1961 in Louisville,
Kentucky, is a Fortune 500 company that markets and administers
health benefit consumer services. With a customer base of over
11.5 million in the United States, the company is the largest
Fortune 500 company headquartered in the Commonwealth of
Kentucky, with a market cap of over US$10 billion dollars and
US$21.4 billion in revenue. Humana employs over 22,500
associates nationwide. Humana markets its health benefit
consumer services in all 50 states, D.C., Puerto Rico and has
international business interests in Western Europe. In its
March 2007 issue, Fortune Magazine named Humana one of the Top 5
Most Admired Healthcare Companies in the United States.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 13, 2007, A.M. Best Co. has commented that the financial
strength ratings (B+), issuer credit ratings (BBB) and debt
ratings of Humana Inc. and its insurance and health maintenance
organization subsidiaries remain unchanged. A.M. Best said the
outlook for all ratings is negative.
LIN TV: Inks MetroCast Deal for Broadcast Station Retransmission
----------------------------------------------------------------
LIN TV Corp. has reached an agreement with MetroCast, a cable
provider with approximately 36,000 subscribers in Eastern
Connecticut, for retransmission of its broadcast stations in
both analog and in high-definition.
"We are pleased with the outcome of our negotiations," said
Vincent L. Sadusky, president and chief executive officer of LIN
TV Corp. "Our stations are leaders in their markets and we've
made substantial investments to bring our viewers high
definition digital programming. The agreement reflects fair
value to both parties and is in the best interest of the
consumer."
The agreement with MetroCast will enable subscribers to watch
New Haven's WTNH-TV News Channel 8 and WCTX-TV MyTV9, and their
top-rated local news, along with University of Connecticut's
Mens Football and Basketball games, New York Yankees games, and
other popular programming, such as Jeopardy, Wheel of Fortune
and Judge Judy.
Headquartered in Providence, Rhode Island, LIN Television Corp.
(NYSE: TVL) -- http://www.lintv.com/-- owns and operates 31
television stations in 18 mid-sized markets in the United States
and Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 23, 2007, Standard & Poor's Ratings Services placed its
ratings on LIN TV Corp., including the 'B+' corporate credit
rating, on CreditWatch with negative implications.
STANDARD MOTOR: Earns US$206.2 Million for Third Quarter 2007
-------------------------------------------------------------
Standard Motor Products, Inc. has reported US$206.2 million
consolidated net sales US$206.2 for the three months and nine
months ended Sept. 30, 2007, compared to consolidated net sales
of US$203.8 million during the comparable quarter in 2006.
Earnings from continuing operations for the third quarter of
2007 were US$4.8 million or 26 cents per diluted share, compared
to US$2.6 million or 14 cents per diluted share in the third
quarter of 2006. Excluding restructuring expenses for
previously announced facility moves and a gain from the sale of
our Fort Worth, Texas building, earnings from continuing
operations for the third quarters 2007 and 2006, were US$5.6
million or 30 cents per diluted share and US$2.9 million or 16
cents per diluted share, respectively.
Consolidated net sales for the nine month period ended
Sept. 30, 2007 were US$622.9 million, compared to consolidated
net sales of US$643 million during the comparable period in
2006. The nine-month period in 2006 included US$11.4 million
net sales from the European Temperature Control business that
was divested in December 2006. Earnings from continuing
operations for the nine month period ended Sept. 30, 2007 were
US$13.4 million or 72 cents per diluted share, compared to
US$10.6 million or 58 cents per diluted share in the comparable
period of 2006. Excluding restructuring expenses for previously
announced facility moves and a gain from the sale of our Fort
Worth, Texas building, earnings from continuing operations for
the nine months ended 2007 and 2006, were US$15 million or 80
cents per diluted share and US$11.1 million or 61 cents per
diluted share, respectively.
Commenting on the results, Lawrence I. Sills, Standard Motor
Products' Chairman and Chief Executive Officer, stated, "We are
pleased with our results for the third quarter. Sales, gross
margin, and earnings per share were all ahead of the comparable
quarter in 2006, as the actions we have taken over the past
months have begun to bear fruit.
"Engine Management sales were ahead 2.2% for the quarter, and
Temperature Control reflected slightly improved sales, aided by
a warmer than usual end of summer. Excluding the European
divested Temperature Control sales of US$3.3 million in 2006,
Europe's sales increased US$1.7 million.
"Engine Management gross margin had a substantial increase, a
full four points ahead of the third quarter of 2006, and stands
at 26.7% year to date. We are approaching our previously stated
target of 28-29%.
"Plant relocations are proceeding on schedule. As previously
announced, we have begun transferring operations from Long
Island City and Puerto Rico (Engine Management) and Grapevine,
Texas (Temperature Control) primarily to Reynosa, Mexico. This
will lead to further cost improvements, partially in 2008 and
fully in 2009.
"Annually we have an actuarial valuation performed on our
asbestos liability. The September 2007 adjustment reflects an
unfavorable pre-tax increase to the reserve of US$2.8 million
bringing the total reserve to US$23.8 million. This essentially
reversed a favorable reduction to the reserve
from the comparable period a year ago."
The Board of Directors has approved payment of a quarterly
dividend of nine cents per share on the common stock
outstanding. The dividend will be paid on Dec. 3, 2007 to
stockholders of record Nov. 15, 2007.
About Standard Motor
Headquartered in Long Island City, New York, Standard Motor
Products Inc. (NYSE: SMP) -- http://smpcorp.com/-- manufactures
and distributes replacement parts for motor vehicles in the
automotive aftermarket industry. The company supplies Engine
Management and Temperature Control parts for motor vehicles -
domestic and imported, new as well as older vehicles. Parts are
sold throughout the U.S., Canada, Central and South America,
Europe and Asia, by traditional warehouse distributors and auto
parts stores, as well as major retail stores. Standard Motor
Products Inc has more than 20 factories and distribution centers
throughout the U.S., Puerto Rico, Canada, Europe and the Far
East.
* * *
As reported in the Troubled Company Reporter on July 26, 2007,
Standard & Poor's Ratings Services revised its outlook on
Standard Motor Products Inc. to positive from negative. The
ratings including the 'B-' corporate credit rating, were
affirmed.
SUPERMERCADOS BONANZA: Case Summary & 35 Largest Unsec Creditors
----------------------------------------------------------------
Lead Debtor: Supermercados Bonanza Nieves, Inc.
aka Selectos Nieves, Inc.
Apartado 903
Aguada, PR 00602
Bankruptcy Case No.: 07-06345
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Familia Nieves, Inc. 07-06344
Chapter 11 Petition Date: October 29, 2007
Court: District of Puerto Rico (Old San Juan)
Debtor's Counsel: Winston Vidal-Gambaro, Esq.
P.O. Box 193673
San Juan, PR 00919-3673
Tel: (787) 751-2864
Fax: (787) 763-6114
Estimated Assets Estimated
Debts
---------------- -------------
--
Supermercados Bonanza US$1 Million to US$1
Million to
Nieves, Inc. US$100 Million US$100
Million
Familia Nieves, Inc. US$100,000 to US$1
Million to
US$1 Million US$100
Million
A. Supermercados Bonanza Nieves, Inc's 17 Largest Unsecured
Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Banco Popular De Puerto Rico bank loan US$3,221,114
P.O. Box 362708
Hato Rey, PR 00936-2708
Westernbank Puerto Rico bank loan US$212,929
P.O. Box 1180
Mayaguez, PR 00681-1180
Banco de Santander bank loan US$158,246
P.O. Box 36-2589
San Juan, PR 00936
Autoridad de Energia trade debt US$113,322
Electrica
C.R.I.M. taxes US$60,692
Municipality of Moca taxes US$55,838
Refrigerama trade debt US$53,148
Banco Popular de Puerto Rico automobile leasing US$50,195
San Juan, PR
Hobart Service trade debt US$46,366
Pedro Barba E. Hijos, Inc. trade debt US$34,742
Productos Avicolas del Sur, trade debt US$30,489
Inc.
General Electric trade debt US$24,829
Riviana Puerto Rico, Inc. trade debt US$24,316
V. Suarez & Co., Inc. trade debt US$22,827
Mendez & Co. trade debt US$22,677
Ballester Hermanos, Inc. trade debt US$21,958
Caribbean Produce trade debt US$21,810
B. Familia Nieves, Inc's 18 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Banco Popular de Puerto Rico bank loan US$2,026,143
P.O. Box 362706
Hato Rey, PR 00936-2708
bank overdraft US$15,756
Municipality of Anasco bank loan US$51,000
Apartado 1305
Anasco, PR
B. Fernandez & H.N.O.S., Inc. trade debt US$40,830
P.O. Box 363629
San Juan, PR 00936-3629
V. Suarez & Co., Inc. trade debt US$39,791
Ballester Hermanos, Inc. trade debt US$37,081
Bismark Trading, Inc. trade debt US$30,200
Productos Avicolas del Sur trade debt US$23,843
Kellogg Caribbean Services trade debt US$23,226
Co., Inc.
Suiza Dairy Corp. trade debt US$22,645
Mendez & Co. trade debt US$22,045
Johnny Rivera, Inc. trade debt US$21,332
Plaza Provision Co. trade debt US$20,627
Rovira Foods, Inc. trade debt US$18,928
Eric's Products
Matosantos Comercial Corp. trade debt US$17,633
Pan Pepin, Inc. trade debt US$16,376
Caribbean Produce trade debt US$15,104
Star Meat trade debt US$13,472
Frigorifico Plaza Aguadilla, trade debt US$9,753
Inc.
=============
U R U G U A Y
=============
NAVIOS MARITIME: Net Income Up 116% to US$36.5 Mil. in 3rd Qtr.
---------------------------------------------------------------
Navios Maritime Holdings Inc. has net income grew by 116% to
US$36.5 million from US$16.9 million for the quarter ended
Sept. 30, 2007.
Ms. Angeliki Frangou, Chairman and Chief Executive Officer of
Navios, stated: "In the third quarter, we delivered strong
financial performance, increasing EBITDA by 65%, net income by
116% and revenue by 318%. We also added significantly to the
Navios group fleet by committing to acquire five capesize
vessels, two of which have already been chartered out for five
years, and securing 13 vessels on long-term charter-in
contracts. "
Financial Highlights
Navios grew EBITDA by 65%, to US$57.9 million in the third
quarter of 2007 from US$35.0 million in the third quarter in
2006. Net income grew by 116% to US$36.5 million from US$16.9
million. Revenue grew by 318% to US$212.9 million from US$50.9
million.
Third Quarter 2007 Results (in 000's of US Dollars):
The following table presents consolidated revenue and expense
information for the three month periods ended Sept. 30, 2007 and
2006. This information was derived from the unaudited
consolidated revenue and expense accounts of Navios for the
respective periods.
Revenue: Revenue increased to US$212.9 million for the three
month period ended Sept. 30, 2007 as compared to the US$50.9
million for the same period of 2006. Revenue from vessel
operations increased by approximately US$162.4 million, or 340%,
to US$210.1 million for the three month period ended
Sept. 30, 2007 from US$47.7 million for the same period of 2006.
This increase is mainly attributable to (a) an increase in the
number of operating days, (b) improvement in the market
resulting in higher charter-out daily hire rates in the third
quarter of 2007 as compared to the same period of 2006, and (c)
an increase in the number of Contracts of Affreightment (COAs)
serviced by Navios (acquired as part of the acquisition of
Kleimar).
Revenue from the port terminal decreased by US$0.4 million to
US$2.8 million for the three month period ended Sept. 30, 2007
as compared to US$3.2 million in the same period of 2006. This
is due to port terminal throughput volume decrease of
approximately 13% to 676,000 tons for the three month period
ended Sept. 30, 2007 from 777,000 tons for the same period in
2006.
Gains on FFAs
Income from Forward Freight Agreements decreased by US$5.2
million to a gain of US$10.2 million during the three month
period ended Sept. 30, 2007 as compared to US$16.0 million gain
for the same period in 2006.
EBITDA
EBITDA increased by US$22.9 million to US$57.9 million for the
three month period ended Sept. 30, 2007 as compared to US$35.0
million for the same period of 2006. The increase is mainly
attributable to the increase in Revenue by US$162.0 million from
US$50.9 million in the third quarter of 2006 to US$212.9 million
in the same period of 2007. The above increase was mitigated
mainly by the (a) decrease in FFA gains by US$5.8 million from
US$16.0 million in the third quarter of 2006 to US$10.2 million
in the same period of 2007, (b) increase in time charter and
voyage expenses by US$132.6 million from US$21.8 million in the
third quarter of 2006 to US$154.4 million in the same period of
2007, (c) increase in the direct vessels expenses by US$1.3
million due to the expansion of the owned fleet from 16 vessels
in the third quarter of 2006 to 19 vessels in the same period of
2007, and (d) increase in general and administrative expenses by
US$0.9 million. Other categories (other income/expenses, income
from investments in finance leases, income from affiliate
companies, etc.) reflected a positive variance of US$1.5 million
in the third quarter of 2007 relative to the same period in
2006.
Net Income
Net income for the third quarter ended Sept. 30, 2007, was
US$36.5 million as compared to US$16.9 million for the
comparable period of 2006. The resultant increase of Net income
was primarily due to the US$22.9 million increase in EBITDA
partially mitigated by a US$1.0 million increase in net interest
expense, a US$0.1 increase in amortization of deferred dry dock
and special survey costs and a US$2.2 million increase in
deferred income taxes calculated for Kleimar.
Liquidity
Navios' cash and cash equivalents balance (including restricted
cash) on Sept. 30, 2007 was US$291.6 million. Navios also has
the ability to draw up to US$120 million on its revolving credit
facility.
Navios earns revenue from owned and chartered-in vessels, COAs
and port terminal operations.
Revenue for the nine-month period ended Sept. 30, 2007 was
US$449.9 million as compared to US$153.6 million for the same
period of 2006. Revenue from vessel operations increased by
approximately US$295.8 million or 202% to US$442.2 million for
the nine months ended Sept. 30, 2007 from US$146.4 million for
the same period of 2006. This increase is mainly attributable
to the (a) increase in the operating days, (b) improvement in
the market resulting in higher charter-out daily hire rates in
the first nine months of 2007 as compared to the same period of
2006, and (c) increase in the number of COAs serviced by Navios
(acquired as part of the acquisition of Kleimar).
Revenue from port terminal operations for the nine months ended
Sept. 30, 2007 was US$7.7 million as compared to US$7.2 million
in the same period of 2006. This increase in Revenue is
attributable to increased throughput for the nine months ended
Sept. 30, 2007 of 1.9 million tons as compared to 1.8 million
tons in the same period of 2006.
EBITDA was US$135.1 million for the first nine months ended
Sept. 30, 2007 as compared to US$84.2 million for the same
period of 2006. This US$50.9 million increase in EBITDA is
mainly attributable to the (a) gain in FFA trading of US$20.3
million in the first nine months of 2007 versus a US$19.4
million gain in the same period last year, resulting in a
favorable FFA variance of US$0.9 million and (b) increase in
revenue by US$296.3 million from US$153.6 million in the first
nine months of 2007 to US$449.9 million in the same period of
2007. The above increase was mitigated mainly by the (a)
increase in time charter and voyage expenses by US$239.8 million
from US$65.2 million in the first nine months of 2007 to
US$305.0 million in the same period of 2007, (b) increase in the
direct vessels expenses by US$6.6 million due to the expansion
of the owned fleet from 16 vessels in the first nine months of
2007 to 19 vessels in the same period of 2007, and (c) increase
in general and administrative expenses by US$2.2 million. Other
categories (other income/expenses, income from investments in
finance leases, income from affiliate companies, etc.) reflected
a positive variance of US$2.3 million in the first nine months
of 2007 relative to the same period in 2006.
Net income for the nine-month period ended Sept. 30, 2007, was
US$74.5 million as compared to US$26.8 million for the
comparable period of 2006. The resultant increase of Net income
was primarily due to the US$50.9 million increase in EBITDA and
a US$6.1 million decrease in depreciation and amortization. This
was mitigated by a US$5.0 million increase in net interest
expense, a US$4.0 million increase in deferred income taxes
calculated for Kleimar and a US$0.3 million increase in
amortization of deferred dry dock and special survey costs.
Time Charter Coverage
Navios has extended its long-term fleet employment by recently
agreeing to charter out vessels for periods ranging from three
to ten years. As a result, Navios has currently fixed 100.0%,
91.6%, 54.0% and 32.0% of available days in 2007, 2008, 2009 and
2010, respectively, of its fleet (excluding Kleimar's vessels,
which are primarily utilized to fulfill COAs). This represents
contracted revenue (net of commissions) from the current charter
agreements of US$224.0 million, US$254.0 million, US$170.9
million and US$138.8 million, for 2007, 2008, 2009 and 2010,
respectively. Although these charter payments are based on
contractual charter rates, the contracts are subject to
performance and reflect an estimate of off-hire days for
periodic maintenance.
The average contractual daily charter-out rate for the core
fleet (excluding Kleimar's vessels, which are primarily utilized
to fulfill COAs) is US$21,479, US$24,044, US$25,780 and
US$28,455 for 2007, 2008, 2009 and 2010, respectively. The
average daily charter-in rate for the active long-term
charter-in vessels for the first nine months of 2007 was
US$9,519 (excluding Kleimar's vessels).
Dividend
Navios's board of directors declared a quarterly cash dividend
for the period ended Sept. 30, 2007, of US$.0666 per share,
payable on Dec. 3, 2007, to record holders on Nov. 19, 2007.
About Navios Maritime
Navios Maritime Holdings Inc. (Nasdaq: BULK, BULKU, BULKW)
-- http://www.navios.com/-- is a vertically integrated global
seaborne shipping company, specializing in the worldwide
carriage, trading, storing, and other related logistics of
international dry bulk cargo transportation. The company also
owns and operates a port/storage facility in Uruguay and has in-
house technical ship management expertise. It maintains offices
in Piraeus, Greece, South Norwalk, Connecticut and Montevideo,
Uruguay.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 5, 2007, in connection with Moody's Investors Service's
implementation of its new Probability-of-Default and Loss-Given-
Default rating methodology for the existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa last week, the rating agency confirmed its B1 Corporate
Family Rating for Navios Maritime Holdings Inc.
The implementation of the LGD methodology in EMEA follows the
introduction of the methodology in September 2006. Most of the
rating actions Moody's confirmed relate to senior secured loans.
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Senior Unsecured
Regular Bond/
Debenture Due 2014 B2 B3 LGD5 80%
=================
V E N E Z U E L A
=================
CHRYSLER LLC: Affirms UAW 2007 National Labor Agreement
-------------------------------------------------------
Chrysler LLC has confirmed a new Chrysler-UAW 2007 national
labor agreement, in response to the UAW's ratification results.
Chrysler and the UAW reached a tentative agreement on Oct. 10,
after three months of bargaining.
"We are pleased that our UAW employees recognize that the new
agreement meets the needs of the company and its employees by
providing a framework to improve our long-term manufacturing
competitiveness," said Tom LaSorda, Vice Chairman and President,
Chrysler LLC.
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.
CHRYSLER LLC: Appoints Douglas Betts as Vice President & CCO
------------------------------------------------------------
Chrysler LLC has named 21-year quality assurance veteran Douglas
D. Betts Vice President and Chief Customer Officer. This newly
created role assumes responsibility for corporate quality and
will become a key element in Chrysler's continued effort to
become a truly customer-oriented company.
Mr. Betts will be guided by "the voice of the customer," and
will create the processes, culture, systems and organization to
achieve the highest levels of quality in all of the Company's
products and customer touch points. Mr. Betts will be based in
Auburn Hills, Michigan, and report to Chrysler LLC Vice Chairman
and President Jim Press.
"Now, the customer will define quality at Chrysler," said Mr.
Press. "We are aligning our resources to bring us to world-
class benchmark levels in quality and customer satisfaction, and
this is an important step."
Mr. Press described the CCO -- a first for the auto industry --
as an "advocate for the customer."
Mr. Betts, joins Chrysler from Nissan Americas, where he was
Senior Vice President - Total Customer Satisfaction and before
that, served as Vice President - Manufacturing Quality. He
joined Nissan after holding quality assurance positions with
Toyota, Michelin Tire Corp. and General Motors. Mr. Betts'
appointment is effective immediately.
Stephen M. Walukas, formerly Vice President - Corporate Quality,
returns to the Procurement and Supply organization in a to-be-
announced executive role.
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.
PETROLEOS DE VENEZUELA: Unit Presenting 2008 Spending Plan
----------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA unit
Bariven will present its spending plan for next year to almost
300 Argentine companies in Buenos Aires during an event the
Argentine foreign ministry has organized, Business News Americas
reports.
The Argentine foreign ministry said in a statement that Bariven
will spend about US$4 billion next year and will inform
Argentine companies on how they can register as service
providers for the Venezuelan oil sector. Bariven coordinates
purchasing for Petroleos de Venezuela and is eying drilling
rigs, electrical equipment, well-servicing equipment and tubing.
The meeting confirmed the "strong dynamic" between Venezuela and
Argentina oil sectors, BNamericas states, citing event
organizers, who emphasized the possibility of new joint venture
projects.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, US$2 billion notes due 2027, and US$1 billion notes due
2037.
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