/raid1/www/Hosts/bankrupt/TCRLA_Public/071102.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, November 2, 2007, Vol. 8, Issue 218
Headlines
A R G E N T I N A
ALITALIA SPA: TPG Capital Unable to Form Italian Consortium
ASOCIACION CIVIL: Proofs of Claim Verification Ends on Nov. 23
BUNGE LIMITED: Mulls Public Offering of Preference Shares
CLIFA SA: Proofs of Claim Verification Deadline Is Nov. 26
DREMVER SRL: Files for Reorganization Petition in Buenos Aires
EDITORIAL PIATTI: Proofs of Claim Verification Is Until Dec. 3
EL SUPER: Reorganization Proceeding Concluded
KENDLE INT'L: Earns US$3.8 Million for Third Quarter 2007
INSUMOS INTEGRALES: Proofs of Claim Verification Is Dec. 20
MAYA-QUINTANA: Files for Reorganization Okay in Buenos Aires
SER SALUD: Trustee Filing Individual Reports in Court on Feb. 26
SOISA SA: Proofs of Claim Verification Is Until Dec. 20
SWEET GARDEN: Proofs of Claim Verification Deadline Is Dec. 12
TRANSPORTES D: Trustee To File Individual Reports on March 10
TRESGE ARGENTINA: Reorganization Proceeding Concluded
VIRGINIO VILONI: Proofs of Claim Verification Ends on Nov. 23
B A H A M A S
ISLE OF CAPRI: Names Donn Mitchell as Senior VP of UK Operations
TEEKAY CORP: Reports US$17-Mln Net Income in Qtr. Ended Sept. 30
B E R M U D A
ASPEN INSURANCE: Liaquat Ahamed Joins Board of Directors
ELAN CORP: Posts US$87.4 Million Net Loss in 3rd Quarter
B R A Z I L
AMERICAN AXLE: Robert W. Baird Rates Shares at Underperform
BANCO MERCANTIL: S&P Puts B Rating on US$100-Mil. Senior MTNs
CHEMTURA CORP: Sells Optical Monomers Business to Acomon AG
GENERAL CABLE: Freeport-McMoran Completes Phelps Dodge Biz Sale
MRS LOGISTICA: Earns BRL144 Million in Third Quarter 2007
NAVISTAR INT'L: Unit Bags US$68.8-Mln Deal from Marine Corps
PERNOD RICARD: LatAm Net Sales Up 34.1% in First Quarter
SCO GROUP: Taps Boies Schiller as Special Litigation Counsel
SCO GROUP: Selects Dorsey & Whitney as Special Corporate Counsel
SENSATA TECH: Third Quarter Net Revenue Up 24.4% to US$357.4MM
TAM SA: Signs Compensation Payment Method Agreement with ABAV
* BRAZIL: Petrobras Cuts Rio de Janeiro & Sao Paulo Gas Supplies
* BRAZIL: Petroleo Brasileiro Restarts P-25 Platform in Albacora
C A Y M A N I S L A N D S
BANK OF AYUDHYA: Phanporn Kongyingyong Quits Post as Director
BJK INC: Proofs of Claim Filing Deadline Is Nov. 14
BLACKSTONE PARTNERS: Proofs of Claim Filing Is Until Nov. 16
BLACKSTONE R OFFSHORE: Proofs of Claim Filing Ends on Nov. 16
BLACKSTONE W: Sets Final Shareholders Meeting for Nov. 16
BOMBAY CO: Committee Taps Lang Michener as Canadian Counsel
CHIEN KUO: Proofs of Claim Filing Ends on Nov. 16
CLARION OFFSHORE: To Hold Final Shareholders Meeting on Nov. 16
GOTTFRIED INT'L: Sets Final Shareholders Meeting for Nov. 16
JUST ONE: Proofs of Claim Filing Ends on Nov. 17
KED INVESTMENTS: Proofs of Claim Filing Deadline Is Nov. 15
KED INVESTMENTS: Sets Final Shareholders Meeting for Nov. 16
MCP LIMITED: Proofs of Claim Filing Deadline Is Nov. 17
SHORELINE GROUP: Proofs of Claim Filing Ends on Nov. 14
C H I L E
ANIXTER INT'L: Fitch Affirms Issuer Default Rating at BB+
IRON MOUNTAIN: Earns US$51 Million in Third Quarter 2007
C O L O M B I A
SOLUTIA INC: Receives US$2 Billion Exit Loan Commitment
SOLUTIA INC: Court Urges Resolution of Bank of New York Dispute
C U B A
* CUBA: Gets Support at UN Assembly on Ending U.S. Blockade
D O M I N I C A N R E P U B L I C
ASHMORE ENERGY: To Purchase Interest in Chilquinta & Luz del Sur
CAP CANA: Moody's Rates Proposed US$500 Mil. Senior Notes at B3
GENERAL CABLE: Earns US$61.1 Million in 2007 Third Quarter
E C U A D O R
FREEPORT-MCMORAN: Closes Phelps Dodge Biz Sale for US$735 Mil.
PETROECUADOR: Foreign Oil Firms Want Contract Extension
PETROECUADOR: Launching Biofuels Admixture Program for Vehicles
E L S A L V A D O R
HANESBRANDS INC: Inks Ten-Year Strategic Deal with Walt Disney
G U A T E M A L A
AFFILIATED COMPUTER: Names Ron Gillette as Sr. Managing Director
H A I T I
DYNCORP INT'L: Earns US$13.9 Mil. in Second Qtr. Ended Sept. 28
H O N D U R A S
INTERPUBLIC GROUP: Acquires Translation Consulting
J A M A I C A
CENTURY ALUMINUM: Earns US$7.5-Mln in 3rd Quarter Ended Sept. 30
NATIONAL WATER: Says Heavy Rains Disrupt Water Supply
M E X I C O
ACXIOM CORP: Board Okays US$75-Mil. Stock Repurchase Program
ACXIOM CORP: Annual Stockholders Meeting Scheduled on Dec. 21
BEARINGPOINT INC: Sarah Beardsley to Lead Comm & Media Practices
GLOBAL POWER: Court Approves Disclosure Statement
GLOBAL POWER: Plan Confirmation Hearing Scheduled on December 20
ICONIX BRAND: 3rd Qtr. Net Income Climbs to US$17 Mil. in 2007
KANSAS CITY: Board Declares US$0.25 Per Share Cash Dividend
MAXCOM TELECOM: Posts MXN7.6 Million Net Loss in 2007 Third Qtr.
MOVIE GALLERY: Wants to Approve De Minimis Asset Sale Procedures
MOVIE GALLERY: Wants to Reject 70 Unexpired Store Leases
WILLIAMS SCOTSMAN: S&P Withdraws BB- Long-Term Corporate Rating
U.S. STEEL: Acquires & Renames Stelco as U.S. Steel Canada Inc.
U.S. STEEL: Earns US$269 Million in Quarter Ended Sept. 30
P A N A M A
CLOROX COMPANY: Acquiring Burt's Bees for US$925 Million
* PANAMA: World Bank Grants Up to US$465-Mil. Partnership Funds
P E R U
HARMONY GOLD: Fitch Affirms Issuer Default Rating at BB+
P U E R T O R I C O
ADVANCE AUTO: Third Qtr. Net Income Rises to US$59 Mil. in 2007
DEVELOPERS DIVERSIFIED: Earns US$32.7 Mln in Qtr. Ended Sept. 30
T R I N I D A D & T O B A G O
DIGICEL GROUP: Inks Interconnection Agreement with Telecur
V E N E Z U E L A
ALCATEL-LUCENT: Announces Management Changes & Forms Committee
FREEPORT-MCMORAN: Names Richards McMillan as Senior Vice Pres.
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: TPG Capital Unable to Form Italian Consortium
-----------------------------------------------------------
TPG Capital informed financial advisor Citi that, at the moment,
they are unable to finalize an Italian-led consortium, but will
continue to follow the evolution of the Alitalia S.p.A. dossier
with interest, should an opportunity or new elements arise.
The Italian government had been holding talks with TPG Capital
over a possible re-bid by the private equity firm for Italy's
49.9% stake in Alitalia.
A consortium of TPG Capital, MatlinPatterson Global Advisers LLC
and Mediobanca S.p.A. had withdrawn its bid for the national
carrier during the previous tender to sell Alitalia, saying it
was not "in a position to comply with all of the requirements."
The consortium described the requirements as "too complex and
cryptic." TPG Capital told the Italian government it may rejoin
the bidding process if the rules of the process were changed.
As reported in the TCR-Europe on Oct. 23, 2007, Alitalia will
choose the buyer for Italy's stake on Nov. 10, 2007. Alitalia
chairman Maurizio Prato told the Italian parliament that he will
recommend an industrial buyer for Italy's stake within the first
ten days of November, Agenzia Giornalistica Italia relates. The
government will then decide how to finalize the sale of its
stake.
Alitalia opened talks, through the financial advisor Citi and
industrial advisor Roland Berger, with:
-- OAO Aeroflot,
-- Air France-KLM,
-- AP Holding S.p.A.,
-- Cordata Baldassarre,
-- Deutsche Lufthansa AG,
-- TPG Capital.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
ASOCIACION CIVIL: Proofs of Claim Verification Ends on Nov. 23
--------------------------------------------------------------
Gustavo Ariel Fiszman, the court-appointed trustee for
Asociacion Civil de Propietarios de Taximetros del Partido de
Ezeiza's bankruptcy proceeding, verifies creditors' proofs of
claim until Nov. 23, 2007.
Mr. Fiszman will present the validated claims in court as
individual reports on Feb. 2, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Asociacion Civil 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 Asociacion Civil's
accounting and banking records will be submitted in court on
March 12, 2008.
Mr. Fiszman is also in charge of administering Asociacion
Civil's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Gustavo Ariel Fiszman
Tucuman 1295, Banfield
Buenos Aires, Argentina
BUNGE LIMITED: Mulls Public Offering of Preference Shares
---------------------------------------------------------
Bunge Limited is planning to make a public offering of
cumulative mandatory convertible preference shares. The
offering will be made pursuant to a registration statement filed
with the U.S. Securities and Exchange Commission. The gross
proceeds from the offering, before deducting commissions and
expenses, are expected to be approximately US$750.0 million.
Bunge also intends to grant the underwriter a 30-day option to
purchase a maximum of US$112.5 million in additional cumulative
mandatory convertible preference shares to cover over-
allotments.
Bunge intends to use the net proceeds of this offering to repay
indebtedness and for general corporate purposes.
Citi will serve as the sole manager for the offering.
About Bunge
Headquartered in White Plains, New York, Bunge is a global
agribusiness company with operations primarily in commodity
grain processing and fertilizer production. It has operations
in Argentina.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 12, 2006, Moody's Investors Service confirmed the Baa2
senior unsecured ratings for Bunge Limited and guaranteed
subsidiaries.
Moody's also assigned a Ba1 rating to a new US$690 million issue
by Bunge Limited of perpetual preferred stock.
The outlook on all ratings is negative.
Ratings assigned and confirmed:
* Bunge Limited
-- US$690 million perpetual preferred stock at Ba1
* Bunge Limited Finance Corp.
-- Senior unsecured at Baa2 under full guarantee of Bunge Ltd
* Bunge Master Trust
-- Senior unsecured at Baa2 under full guarantee of Bunge Ltd
CLIFA SA: Proofs of Claim Verification Deadline Is Nov. 26
----------------------------------------------------------
The court-appointed trustee for Clifa S.A.'s bankruptcy
proceeding verifies creditors' proofs of claim until
Nov. 26, 2007.
Infobae didn't state the name of the trustee.
The trustee will present the validated claims in court as
individual reports on Feb. 13, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Clifa 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 Clifa's accounting
and banking records will be submitted in court on March 26,
2008.
The trustee is also in charge of administering Clifa's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Clifa S.A.
Avenida Ricardo Balbin 3981
Buenos Aires, Argentina
DREMVER SRL: Files for Reorganization Petition in Buenos Aires
--------------------------------------------------------------
Dremver S.R.L. has requested for reorganization approval after
failing to pay its liabilities since August 2006.
The reorganization petition, once approved by the court, will
allow Dremver to negotiate a settlement with its creditors in
order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Dremver S.R.L.
Amenabar 2122
Buenos Aires, Argentina
EDITORIAL PIATTI: Proofs of Claim Verification Is Until Dec. 3
--------------------------------------------------------------
Elsa Andrade, the court-appointed trustee for Editorial Piatti
SA's bankruptcy proceeding, verifies creditors' proofs of claim
until Dec. 3, 2007.
Ms. Andrade will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 13 in Buenos Aires, with the assistance of Clerk
No. 26, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Editorial Piatti and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Editorial Piatti's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Ms. Andrade is also in charge of administering Editorial
Piatti's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Editorial Piatti SA
Lavalle 1392
Buenos Aires, Argentina
The trustee can be reached at:
Elsa Andrade
Avenida Callao 449
Buenos Aires, Argentina
EL SUPER: Reorganization Proceeding Concluded
---------------------------------------------
El Super de la Construccion S.R.L.'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 Santa Fe approved the debt agreement
signed between the company and its creditors.
KENDLE INT'L: Earns US$3.8 Million for Third Quarter 2007
---------------------------------------------------------
Kendle International Inc. has reported net service revenues for
third quarter 2007 were US$100.1 million, an increase of 33
percent over net service revenues of US$75.2 million for third
quarter 2006. Net income per diluted share of US$0.25 for third
quarter 2007 includes a charge for amortization of acquired
intangibles related to the August 2006 acquisition of the Phase
II-IV clinical services business of Charles River Laboratories
International, Inc. as well as a charge for the write-off of
deferred financing costs related to the company's term debt,
which was paid off in the third quarter of 2007. Excluding
these items, which are detailed in the Condensed Consolidated
Statements of Income, earnings per share for third quarter 2007
was US$0.48 per diluted share. Interest expense in the third
quarter 2007 was approximately US$3.3 million, primarily related
to debt incurred to finance the Charles River acquisition,
compared to interest expense of US$2.3 million in third quarter
2006. EPS for third quarter 2006 was US$0.27 per diluted share,
including amortization of acquired intangibles. Excluding the
amortization of acquired intangibles, EPS for third quarter 2006
was US$0.30 per diluted share.
The company's effective tax rate for the quarter was
approximately 25 percent due to the reversal of approximately
US$833,000 of tax liabilities as required by FIN 48, "Accounting
for Uncertainty in Income Taxes." The liabilities were
established as of Jan. 1, 2007, as part of the initial adoption
of FIN 48. During third quarter 2007, the time period for
assessing tax on these items expired, necessitating the
reversal.
Income from operations for third quarter 2007 was approximately
US$14.2 million, or 14.2 percent of net services revenues. Net
income was approximately US$3.8 million in third quarter 2007
compared to US$4.0 million in the third quarter of 2006. Net
service revenues by geographic region for the third quarter were
51 percent in North America, 41 percent in Europe, 5 percent in
Latin America and 3 percent in the Asia/Pacific region. The top
five customers based on net service revenues accounted for 24
percent of net service revenues for third quarter 2007 compared
to 30 percent of net service revenues for third quarter 2006.
"We are particularly pleased with the strong increase in our
operating margin," noted Candace Kendle, PharmD, Chairman and
Chief Executive Officer. "We look forward to building on this
momentum to deliver improved value for our shareholders."
New business awards were a record US$175 million for third
quarter 2007, which represents an 18 percent increase over the
same quarter last year. Contract cancellations for the quarter
were approximately US$7 million. Total business authorizations
totaled US$831 million at Sept. 30, 2007, up 10 percent from
June 30, 2007, and an all-time company high.
Reimbursable out-of-pocket revenues and expenses were US$42.4
million for third quarter 2007 compared to US$21.5 million in
the same quarter a year ago.
Cash flow from operations for the quarter was a positive US$13.7
million. Cash and marketable securities totaled US$29.1
million, including US$1.2 million of restricted cash. Days
sales outstanding in accounts receivable were 40 and capital
expenditures for third quarter 2007 totaled US$3.4 million.
On July 16, 2007, the company issued US$200.0 million in
principal amount of 3.375% Convertible Senior Notes due 2012.
The notes pay interest semiannually. Approximately US$174
million of the net proceeds of the Notes offering was used to
pay down the company's term loan.
Nine-Month Results
Net service revenues for the nine months ended Sept. 30, 2007,
were US$293.3 million, an increase of 49 percent over net
service revenues of US$197.1 million for the nine months ended
Sept. 30, 2006. Net income per diluted share of US$0.83 for the
nine months ended Sept. 30, 2007, includes a charge for
amortization of acquired intangibles related to the August 2006
acquisition of Charles River as well as a charge for the write-
off of deferred financing costs related to the company's term
debt, which was paid off in the third quarter of 2007.
Excluding these items, which are detailed in the Condensed
Consolidated Statements of Income, EPS for the nine months ended
Sept. 30, 2007, was US$1.14 per diluted share. Interest expense
in the nine months ended Sept. 30, 2007, was approximately
US$12.0 million, primarily related to debt incurred to finance
the Charles River acquisition, compared to interest expense of
US$2.4 million in the first nine months of 2006. EPS for the
nine months ended Sept. 30, 2006, was US$0.89 per diluted share.
Excluding the amortization of acquired intangibles, EPS for the
first nine months of 2006 was US$0.92 per diluted share.
The company's year-to-date effective tax rate was approximately
32 percent, reflecting the effect of the FIN 48 adjustment in
the third quarter.
Income from operations for the nine months ended Sept. 30, 2007,
was approximately US$37.6 million, or 12.8 percent of net
service revenues. Excluding the amortization charge referenced
above, proforma income from operations was approximately US$40.7
million, or 13.9 percent of net service revenues. Income from
operations for the nine months ended Sept. 30, 2006, was
approximately US$21.8 million. Excluding the amortization
charge in the nine months ended Sept. 30, 2006, proforma income
from operations was US$22.5 million, or 11.4 percent of net
service revenues. Net income for the first nine months of 2007
was approximately US$12.3 million compared to net income of
US$13.2 million in the first nine months of 2006. Excluding the
amortization of acquired intangibles and the write-off of
deferred financing costs, net income for the first nine months
of 2007 was US$16.9 million, or US$1.14 per diluted share.
Excluding the amortization of acquired intangibles in the first
nine months of 2006, net income was US$13.6 million, or US$0.92
per diluted share.
Net service revenues by geographic region for the nine months
ended Sept. 30, 2007, were 50 percent in North America, 42
percent in Europe, 5 percent in Latin America and 3 percent in
the Asia/Pacific region. The top five customers based on net
service revenues accounted for 25 percent of net service
revenues for the first nine months of 2007 compared to 29
percent of net service revenues for the first nine months of
2006.
Cash flow from operations for the nine months ended
Sept. 30, 2007, was a positive US$38.1 million. Capital
expenditures for the nine-month period totaled US$10.8 million.
Updated Full-Year 2007 Guidance
Kendle also updated full-year 2007 guidance. Net service
revenue guidance for the full year 2007 is now projected to be
in a range of US$390-US$400 million. Operating margin on both a
GAAP and proforma basis remains unchanged from the previous
guidance and is expected to be between 12 and 14 percent and 13
and 15 percent, respectively. Kendle now expects GAAP EPS in the
range of US$1.25 to US$1.35 and projects proforma EPS to be in
the range of US$1.60 to US$1.70.
About Kendle
Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL)
-- http://www.kendle.com/-- is a global clinical research
organization and provides Phase II-IV clinical development
services worldwide. The company's global clinical development
business is focused on five regions - North America, Europe,
Asia/Pacific, Africa and Latin America including Brazil.
* * *
As of July 3, 2007, the company carried Moody's B1 long-term
corporate family rating, B1 bank loan debt, and B2 probability
of default rating. Moody's said the outlook is stable.
In addition, the company also carried Standard & Poor's B+ long-
term foreign and local issuer credits. S&P said the outlook is
stable.
INSUMOS INTEGRALES: Proofs of Claim Verification Is Dec. 20
-----------------------------------------------------------
Alicia Orinov, the court-appointed trustee for Insumos
Integrales de Oficina S.R.L.'s bankruptcy proceeding, verifies
creditors' proofs of claim until Dec. 20, 2007.
Ms. Orinov will present the validated claims in court as
individual reports on March 7, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Insumos Integrales 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 Insumos Integrales'
accounting and banking records will be submitted in court on
April 21, 2008.
Ms. Orinov is also in charge of administering Insumos
Integrales' assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Alicia Orinov
Oliden 3688
Buenos Aires, Argentina
MAYA-QUINTANA: Files for Reorganization Okay in Buenos Aires
------------------------------------------------------------
Maya - Quintana S.A. has requested for reorganization approval
after failing to pay its liabilities since August 2006.
The reorganization petition, once approved by the court, will
allow Maya - Quintana to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Maya - Quintana S.A.
Coronel Pagola 4170/4172
Buenos Aires, Argentina
SER SALUD: Trustee Filing Individual Reports in Court on Feb. 26
----------------------------------------------------------------
Jorge Daniel Alvarez, the court-appointed trustee for Ser Salud
S.R.L.'s bankruptcy proceeding, will present the validated
claims as individual reports in the National Commercial Court of
First Instance in Buenos Aires on Feb. 26, 2008.
Mr. Alvarez verifies creditors' proofs of claim until
Dec. 10, 2007. He will submit a general report containing an
audit of Ser Salud's accounting and banking records in court on
April 14, 2008.
Mr. Alvarez is also in charge of administering Ser Salud's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Jorge Daniel Alvarez
Bartolome Mitre 1738
Buenos Aires, Argentina
SOISA SA: Proofs of Claim Verification Is Until Dec. 20
-------------------------------------------------------
Mirta Susana Polistina, the court-appointed trustee for Soisa
SA's bankruptcy proceeding, verifies creditors' proofs of claim
until Dec. 20, 2007.
Ms. Polistina will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 5 in Buenos Aires, with the assistance of Clerk
No. 10, 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 Soisa 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 Soisa's accounting
and banking records will be submitted in court.
Ms. Polistina is also in charge of administering Soisa's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Soisa SA
El Salvador 3910
Buenos Aires, Argentina
The trustee can be reached at:
Mirta Susana Polistina
Avenida Cramer 2175
Buenos Aires, Argentina
SWEET GARDEN: Proofs of Claim Verification Deadline Is Dec. 12
--------------------------------------------------------------
Angel Miragaya, the court-appointed trustee for Sweet Garden
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Dec. 12, 2007.
Ms. Miragaya will present the validated claims in court as
individual reports on Feb. 28, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Sweet Garden 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 Sweet Garden's
accounting and banking records will be submitted in court on
April 14, 2008.
Ms. Miragaya is also in charge of administering Sweet Garden's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Angel Miragaya
Lavalle 1718
Buenos Aires, Argentina
TRANSPORTES D: Trustee To File Individual Reports on March 10
-------------------------------------------------------------
Luis Hugo Di Cesare, the court-appointed trustee for Transportes
D Marco 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
March 10, 2008.
Mr. Di Cesare verifies creditors' proofs of claim until
Dec. 26, 2007. He will submit a general report containing an
audit of Transportes D's accounting and banking records in court
on April 25, 2008.
Mr. Di Cesare is also in charge of administering Transportes D's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Transportes D Marco S.R.L.
Catamarca 732
Buenos Aires, Argentina
The trustee can be reached at:
Luis Hugo Di Cesare
Viamonte 1336
Buenos Aires, Argentina
TRESGE ARGENTINA: Reorganization Proceeding Concluded
-----------------------------------------------------
Tresge Argentina S.R.L.'s reorganization proceeding has ended.
Data published by Infobae on its Web site indicated that the
process was concluded after the National Commercial Court of
First Instance in Buenos Aires approved the debt agreement
signed between the company and its creditors.
VIRGINIO VILONI: Proofs of Claim Verification Ends on Nov. 23
-------------------------------------------------------------
Juan Jorge Bovio, the court-appointed trustee for Virginio
Viloni e Hijos S.R.L.'s bankruptcy proceeding, verifies
creditors' proofs of claim until Nov. 23, 2007.
Mr. Bovio will present the validated claims in court as
individual reports on Feb. 12, 2008. The National Commercial
Court of First Instance in Mar del Plata, 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 Virginio Viloni 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 Virginio Viloni's
accounting and banking records will be submitted in court on
March 27, 2008.
Mr. Bovio is also in charge of administering Virginio Viloni's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Virginio Viloni e Hijos S.R.L.
Juan B. Justo 3168, Mar del Plata
Buenos Aires, Argentina
The trustee can be reached at:
Juan Jorge Bovio
14 de Julio 2182, Mar del Plata
Buenos Aires, Argentina
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B A H A M A S
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ISLE OF CAPRI: Names Donn Mitchell as Senior VP of UK Operations
----------------------------------------------------------------
Isle of Capri Casinos, Inc., has named Donn Mitchell senior vice
president of United Kingdom operations, pending regulatory
approval. Mr. Mitchell currently serves as the company's senior
vice president, chief financial officer and treasurer, and will
remain in this position until his successor is named.
Mr. Mitchell joined Isle of Capri Casinos, Inc. in 1996 as
Director of Financial Analysis, and served in a variety of other
financial positions with the company. He was promoted to his
current role in 2005, at which time he was instrumental in the
relocation of the corporate office from Biloxi, Mississippi to
St. Louis, Missouri. Mr. Mitchell recently led Isle of Capri
Casinos through a refinancing resulting in the company entering
into a new US$1.35 billion senior secured credit facility.
Prior to joining the company, Mr. Mitchell served as audit
manager for Arthur Anderson LLP in New Orleans, Louisiana. He
holds a bachelor's degree in business administration from the
University of Southern Mississippi and is a certified public
accountant. In 2002, Mr. Mitchell was recognized by the Biloxi
Sun Herald as one of coastal Mississippi's Top Ten Under Forty
business leaders.
Virginia McDowell, president and chief operating officer of Isle
of Capri Casinos, Inc. said, "Donn will be charged with
maximizing the potential of our gaming operations in the United
Kingdom, and his history with the company and financial
background will serve as a valuable skill set as he moves into
this important operational role leading our UK team. As we
continue to define our strategic opportunities, enhance our
marketing programs and streamline our cost structure, Donn's
familiarity with our properties and markets will be a
significant asset."
Based in Biloxi, Mississippi and founded in 1992, Isle of Capri
Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns
and operates casinos in Biloxi, Lula and Natchez, Mississippi;
Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and
Waterloo, Iowa; Boonville, Caruthersville and Kansas City,
Missouri and a casino and harness track in Pompano Beach,
Florida. The company also operates and has a 57.0% ownership
interest in two casinos in Black Hawk, Colorado. Isle of Capri
Casinos' international gaming interests include a casino that it
operates in Freeport, Grand Bahama, a casino in Coventry,
England, and a two-thirds ownership interest in casinos in
Dudley and Wolverhampton, England.
* * *
As reported in the Troubled Company Reporter on June 21, 2007,
Standard & Poor's Ratings Services revised its rating outlook on
Isle of Capri Casinos Inc. to negative from stable. Ratings on
the company, including the 'BB-' corporate credit rating, were
affirmed.
TEEKAY CORP: Reports US$17-Mln Net Income in Qtr. Ended Sept. 30
----------------------------------------------------------------
Teekay Corporation reported net income of US$17.0 million for
the quarter ended Sept. 30, 2007, compared to net income of
US$79.8 millionfor the same period in 2006. The results for the
quarters ended Sept. 30, 2007 and 2006 included a number of
specific items that had the net effect of decreasing net income
by US$5.9 million, or US$0.08 per share, and increasing net
income by US$2.0 million, or US$0.03 per share, respectively, as
detailed in Appendix A to this release. Net revenues for the
third quarter of 2007 increased to US$462.3 million from
US$344.3 million for the same period in 2006, and income from
vessel operations decreased to US$80.6 million from US$105.0
million.
Share Repurchase Program
Since Aug. 1, 2007, the previous date the company reported the
status of its share repurchase program, the company has
repurchased 978,400 shares of its common stock at an average
price of US$54.80 per share, resulting in US$44.3 million
remaining under the existing share repurchase authorization.
As at Sept. 30, 2007, the company had 73.3 million common shares
issued and outstanding.
OMI Acquisition Update
On Aug. 1, 2007, most of the assets from the joint acquisition
of OMI Corporation were divided equally between Teekay and A/S
Dampskibsselskabet (Torm). Through this acquisition, Teekay
acquired seven Suezmax tankers, four Medium Range product
tankers and four Handysize product tankers. Teekay also assumed
OMI's in-charters of a further six Suezmax tankers and OMI's
third party asset management business, the Gemini pool. Teekay
and Torm will continue to hold two Medium Range product tankers
jointly in OMI, as well as two Handysize product tanker
newbuildings scheduled to deliver in 2009. The parties intend
to divide these remaining assets equally in due course.
Teekay has consolidated the results of the vessels it acquired
from OMI effective Aug. 1, 2007. For the period of July 1 to
July 31, 2007, OMI's results were accounted for using the equity
method of accounting.
Headquartered in Nassau, Bahamas, Teekay Corporation (NYSE: TK)
-- http://www.teekay.com/-- transports more than 10.0% of the
world's seaborne oil, has expanded into the liquefied natural
gas shipping sector through its publicly-listed subsidiary,
Teekay LNG Partners L.P., and is further growing its operations
in the offshore production, storage and transportation sector
through its publicly-listed subsidiary, Teekay Offshore Partners
L.P. With a fleet of over 180 vessels, offices in 17 countries
and 6,300 seagoing and shore-based employees, Teekay provides a
comprehensive set of marine services to the world's leading oil
and gas companies, helping them seamlessly link their upstream
energy production to their downstream processing operations. It
has location in Nassau, The Bahamas.
* * *
As reported in the Troubled Company Reporter on July 10, 2007,
Standard & Poor's Ratings Services affirmed the ratings,
including the 'BB+' long-term corporate credit rating, on
Vancouver, British Columbia-based Teekay Corporation. At the
same time, Standard & Poor's removed the ratings from
CreditWatch with negative implications, where they were placed
Sept. 1, 2006. S&P said the outlook is negative.
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B E R M U D A
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ASPEN INSURANCE: Liaquat Ahamed Joins Board of Directors
--------------------------------------------------------
Aspen Insurance Holdings Limited has appointed Liaquat Ahamed to
the Board as a non-executive director with immediate effect.
Mr. Ahamed has also joined the Board's Investment and Risk
Committees.
Mr. Ahamed has a distinguished background in investment
management with leadership roles that include heading the World
Bank's investment division, and Chief Executive Officer of
Fischer Francis Trees & Watts, Inc., a subsidiary of BNP Paribas
specializing in institutional single and multi-currency fixed
income investment portfolios. He is currently an adviser to the
Rock Creek Group, an investment firm based in Washington D.C., a
Board Member of the Rohatyn Group, and a member of the Board of
Trustees at the Brookings Institution.
Mr. Ahamed holds an undergraduate degree from Trinity College,
Cambridge University and an M.A. in Economics from Harvard
University.
In addition to his business experience, Mr. Ahamed has written
extensively on economics and finance issues, and his most recent
work entitled, "Lords of Finance -- a history of economic
policies of the 1920s leading to the Great Depression," is
scheduled for publication in 2008.
Glyn Jones, Chairman of the Board of Aspen, commented: "I am
very pleased that Liaquat, with his extensive expertise in fixed
income securities, has joined our Board. As Aspen's investment
portfolio has grown, it has taken on an increasingly important
role in Aspen's business and future success. I look forward to
Liaquat's strategic contribution to Aspen's investment direction
and the Company in general."
Headquartered in Hamilton, Bermuda, Aspen Insurance Holdings
Limited (NYSE: AHL) (BSX: AHL BH) is the holding company of the
Aspen Group the principal operating entities of which are Aspen
Insurance UK Limited and Aspen Insurance Limited, both rated A2
for insurance financial strength. At the end of September 2006,
Aspen Group reported net income of US$259 million and
shareholders' equity of US$2.3 billion.
* * *
As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba1 rating to the US$200
million Perpetual Non-Cumulative Preference Shares issued by
Aspen Insurance Holdings Limited, the existing perpetual "PIERS"
of which were rated Ba1 by Moody's.
ELAN CORP: Posts US$87.4 Million Net Loss in 3rd Quarter
--------------------------------------------------------
Elan Corporation plc released its third quarter 2007 financial
results and provided a business update.
Net Loss
The net loss for the third quarter of 2007 decreased by 25% to
US$87.4 million from US$117 million in the third quarter of
2006. The decrease reflects a 43% increase in revenues and
improved operating margins as total operating expenses increased
by 13%. Revenue growth was driven by Tysabri(R), with worldwide
in-market sales approaching US$100 million for the quarter.
Elan's share of Tysabri revenues in the quarter was US$63.5
million. The gross margin fell from 62% in the third quarter of
2006 to 52% in the third quarter of 2007, reflecting the impact
of sales of Tysabri, which have a lower gross margin due to the
collaboration agreement with Biogen Idec Inc. In addition,
selling, general and administrative (SG&A) and research and
development expenses in the third quarter 2007 were 3% lower in
aggregate than in the third quarter 2006.
Adjusted EBITDA
Adjusted EBITDA losses for the third quarter of 2007 decreased
by 66% to US$14.1 million, compared to US$41.7 million in the
same period of 2006. This improvement primarily reflects an
increase of 43% in revenues, principally related to Tysabri, and
reduced SG&A costs.
Revenue
Total revenue for the third quarter of 2007 increased 43% to
US$176.6 million from US$123.3 million in the same period of
2006.
Gross Profit
The gross profit margin on revenue was 52% in the third quarter
of 2007, compared to 62% in the same period of 2006. The
decrease is due principally to the change in the mix of product
sales, including the impact of Tysabri and the reduced price of
Maxipime as a result of the entry of a generic competitor. The
Tysabri gross profit margin of 33% is impacted by the profit
sharing and operational arrangements in place with Biogen Idec,
and reflects Elan's gross margin on US sales of approximately
36%, offset by the inclusion in cost of sales of royalties
payable by Elan on sales of Tysabri outside of the United
States. These royalties are payable by Elan but reimbursed by
the collaboration.
"During the quarter we continued to make tangible progress
within our pipeline and gaining momentum for Tysabri. Continued
focus on advancing our science and realizing the full potential
of our shared asset, Tysabri, in MS and additional indications
will enable us to create value, diversify risk and position us
for growth as we accelerate into the future," Kelly Martin,
president and chief executive officer of Elan, said.
"We are very pleased to report that revenues increased by 43%
and Adjusted EBITDA losses were reduced by two thirds over last
year, continuing the trend of the last couple of quarters. The
increase in revenues was driven principally by the accelerating
uptake of Tysabri, which generated in-market sales of nearly
US$100 million on a worldwide basis this quarter. We were
particularly pleased that during the quarter we exceeded the
15,000 patient target, which we need for Tysabri to breakeven in
the commercial setting for the MS indication. At the end of the
quarter, there were about 17,000 patients on therapy, including
about 1,000 in clinical trials. We continued to carefully
manage our cost base, with aggregate SG&A and R&D costs down on
last year contributing to a reduction in net losses of 25%,"
Shane Cooke, executive vice president and chief financial
officer of Elan, said.
"We are optimistic that we will better our previous target of
reporting Adjusted EBITDA losses of about US$50 million for the
full year. In the longer term, the continued growth in revenue
from Tysabri will drive our return to profitability and, with
Biogen Idec, we are targeting to have 100,000 patients on
therapy by the end of 2010," Mr. Cooke added.
At Sept. 30, 2007, Elan's unaudited consolidated US GAAP balance
sheet showed US$1.8 billion in total assets, US$1.7 billion in
total liabilities and US$179.9 million in total shareholders'
equity.
About the Company
Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology
company. Elan shares trade on the New York, London and Dublin
Stock Exchanges. The company has locations in Bermuda and
Japan.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 15, 2007, Standard & Poor's Ratings Services revised its
outlook on Elan Corp. PLC to positive from stable and affirmed
the ratings on the company and its subsidiaries, including the
'B' corporate credit rating.
In April 2007, in connection with the implementation of its new
Probability-of-Default and Loss-Given-Default rating methodology
for the corporate families in the Gaming, Lodging and Leisure,
Manufacturing, and Energy sectors, Moody's Investors Service the
rating agency confirmed its B3 Corporate Family Rating for Elan
Corporation plc and assigned a B2 probability-of-default rating
to the company.
Debt ratings remain unchanged in conjunction with the
implementation of Moody's Loss Given Default and Probability of
Default rating methodology for existing non-financial
speculative-grade corporate issuers in Europe, Middle East and
Africa.
* Issuer: Elan Finance plc
Projected
Debt LGD Loss-Given
Debt Issue Rating Rating Default
---------- ------- ------- --------
US$300M Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$300M Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$150M Senior Unsecured
Regular Bond/Debenture
Due 2013 B3 LGD4 65%
US$850M 7.75% Senior Unsecured
Regular Bond/Debenture
Due 2011 B3 LGD4 65%
US$465M 8.875% Senior Unsecured
Regular Bond/Debenture
Due 2013 B3 LGD4 65%
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B R A Z I L
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AMERICAN AXLE: Robert W. Baird Rates Shares at Underperform
-----------------------------------------------------------
Robert W. Baird analysts have kept their "underperform" rating
on American Axle & Manufacturing's shares, Newratings.com
reports.
Newratings.com relates that the target price for American Axle's
shares was increased to US$25 from US$24.
The analysts said in a research note that American Axle released
its third quarter 2007 adjusted earnings per share ahead of the
estimates.
Robert W. Baird told Newratings.com that American Axle generated
10% year-over-year revenue growth ahead of the estimates, "on
account of an increase in light truck production." The firm
still has "high exposure to light trucks and its capacity is
underutilized."
The earnings per share estimate for American Axle this year was
increased to US$1.45 from US$1.40, Newratings.com states.
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) -\u2013
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.
BANCO MERCANTIL: S&P Puts B Rating on US$100-Mil. Senior MTNs
-------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'B' long-
term senior unsecured debt rating to Banco Mercantil Do Brasil
S.A.'s US$100 million senior unsecured MTNs with final maturity
in November 2010.
The rating reflects the challenges of a midsize bank operating
in Brazil's competitive middle-market and retail segments, and
Banco Mercantil's low profitability compared with that of
industry peers. The bank's large and costly operational
structure and small scale negatively affect profitability.
These risk factors are partially offset by Banco Mercantil's
long track record and knowledge of operating in its regional
market, mainly the state of Minas Gerais, which translates into
good regional market share and brand-name recognition. It also
acknowledges Banco Mercantil's diversified operation and its
adequate funding profile.
Banco Mercantil is a midsize private bank with a track record of
more than 60 years operating in the Brazilian competitive
market. Despite Banco Mercantil's small market share in terms
of assets and loans, the bank's operations are more focused on
specific segments in which it has long track record and
knowledge: lower-income individuals and midsize companies with a
regional focus on Minas Gerais, the third-largest Brazilian
state. Although competition has increased in recent years,
Banco Mercantil's long track record in these markets translated
into adequate regional market share and brand-name recognition.
Banco Mercantil do Brasil is headquartered in Belo Horizonte,
Brazil and had BRL5.6 billion (US$2.6 billion) in total assets
and BRL567 million (US$269 million) in shareholders' equity as
of December 2006.
CHEMTURA CORP: Sells Optical Monomers Business to Acomon AG
-----------------------------------------------------------
Chemtura Corporation, in order to place greater focus on its
core businesses, has sold its optical monomers business to
Acomon AG, an affiliate of Munich-based Auctus Management GmbH &
Co. KG in an all-cash transaction for an undisclosed amount.
Included in the transaction is Chemtura's Ravenna, Italy
manufacturing facility. Proceeds from the sale will be used
primarily for debt reduction.
"This sale represents continued progress in our portfolio
refinement and footprint optimization initiatives," said
Chemtura Chairman and CEO Robert L. Wood. "Optical monomers is
a very good business that just doesn't fit our portfolio at this
time. We are pleased to be transferring the business to a buyer
who is interested in growing it, which should benefit both
customers and employees," Mr. Wood concluded.
Optical monomers are used in a variety of applications,
including lenses for eyewear; protection sheets for welding
masks and screens; photographic filters; and lab equipment. The
optical monomers business being sold had revenues for 2006 of
approximately US$35 million and employs approximately 45 people,
the majority of whom work in its Ravenna, Italy facility.
About Acomon AG
Acomon AG, based in Zug, Switzerland, was formed to operate
Chemtura's former optical monomers business. Acomon is an
affiliate of Auctus Management GmbH & Co. KG, a Munich-based
private equity firm.
About Chemtura Corp.
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE:CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection, and pool, spa and home care products. The company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries. The company has facilities
in Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany,
Mexico, and The United Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Moody's Investors Service lowered Chemtura
Corporation's ratings:
-- Corporate Family Rating: Ba2 from Ba1
-- Senior notes, USUS$500 million due 2016: Ba2 from Ba1;
LGD4 (53%)
-- Senior Unsecured Notes, USUS$150 million due 2026: Ba2
from Ba1; LGD4 (53%)
-- Senior Unsecured Notes, USUS$400 million due 2009: Ba2
from Ba1; LGD4 (53%)
GENERAL CABLE: Freeport-McMoran Completes Phelps Dodge Biz Sale
---------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. has completed the sale of
its international wire and cable business, operated in the name
of Phelps Dodge International Corporation, to General Cable
Corporation for US$735 million. FCX expects to use the proceeds
estimated to approximate US$620 million, net of taxes and other
transaction costs, to repay debt.
General Cable acquired 100% of the shares held by FCX and its
subsidiaries in the entities comprising the wire and cable
business. PDIC operates factories and distribution centers in
19 countries throughout Latin America, Asia and Africa and is
engaged in the manufacturing and distribution of engineered
products, principally for the global energy sector.
FCX expects to record charges of up to approximately US$20
million (US$12 million to net income) for transaction and
related costs associated with the disposition.
About Freeport-McMoran
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) --
http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
About General Cable
Headquartered in Highland Heights, Kentucky, General Cable
Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes
aluminum, copper, and fiber-optic wire and cable products. It
has three operating segments: industrial and specialty (wire and
cable products conduct electrical current for industrial and
commercial power and control applications); energy (cables used
for low-, medium- and high-voltage power distribution and power
transmission products); and communications (wire for low-voltage
signals for voice, data, video, and control applications).
Brand names include Carol and Brand Rex. It also produces power
cables, automotive wire, mining cables, and custom-designed
cables for medical equipment and other products. General Cable
has locations in China, Australia, France, Brazil, the Dominican
Republic and Spain.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 1, 2007, Moody's Investors Service has assigned a rating of
B1 to the proposed USUS$400 million senior unsecured convertible
notes of General Cable Corporation.
As reported in the Troubled Company Reporter on Sept. 19, 2007,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on General Cable Corp. S&P said the outlook is
stable.
MRS LOGISTICA: Earns BRL144 Million in Third Quarter 2007
---------------------------------------------------------
MRS Logistica told Business News Americas that its net profit
decreased by 19.3% to BRL144 million in the third quarter 2007,
compared to the same period last year.
According to BNamericas, MRS Logistica's third quarter 2007 net
profit was 3.8% higher compared to that of the second quarter
2007.
BNamericas notes that MRS Logistica's third quarter 2007 result
was affected by net costs of BRL15 million, which was 250% more
than the second quarter 2007. Operational costs increased 17.6%
to BRL255 million in the third quarter 2007, from the third
quarter 2006.
MRS Logistica's revenues rose 3.04% year-over-year to BRL573
million in the third quarter 2007, BNamericas says. For the
January-September 2007 period, total revenue grew 10.2% to
BRL1.59 billion, from the same period last year.
MRS Logistica's transport volume in the third quarter 2007
increased 9.38% to 33.8 million tons, compared to the same
period last year. In August 2007, the firm had the best monthly
movement result with 11.7 million tons of cargo transported, due
to the increase in the transport of pig iron and corn during the
third quarter 2007, BNamericas relates.
MRS Logistica completed the purchase of 549 more wagons in the
third quarter 2007, BNamericas states.
The MRS consortium is a railway freight transport company
established in 1996 to operate approximately 1,700 kilometers of
track in the states of Minas Gerais, Rio de Janeiro e Sao Paulo.
MRS's rail network is also linked to the Central Atlantic,
Vitoria-Minas and Sao Paulo Railroads, offering intramodal
transportation options to the other parts of the country. The
company mainly transports cargo for its principle shareholders.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 24, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based railroad
company MRS Logistica S.A. S&P revised the outlook to positive
from stable.
NAVISTAR INT'L: Unit Bags US$68.8-Mln Deal from Marine Corps
------------------------------------------------------------
Navistar International Corporation's military affiliate,
International Military and Government, LLC, has won a contract
from the U.S. Marine Corps for US$68.8 million to provide field
service support for the Marine Corps' International(R)
MaxxPro(TM) mine-resistant ambush protected (MRAP) vehicles.
The contract builds on a US$71.5 million contract awarded in
September to provide parts support for the Marine Corps'
International(R) MaxxPro(TM) MRAP vehicles. Navistar has been
awarded more than US$1 billion in total contracts for Navistar
to deliver 2,971 MaxxPro units to the Marine Corps and already
has more than a dozen people on the ground in the Iraq theater
to provide training and field support. The MaxxPro is designed
to protect troops from roadside bombs, improvised explosive
devices and other threats.
"This contract award is another example of our track record for
providing parts to support our military vehicles," said Daniel
C. Ustian, Navistar's chairman, president and chief executive
officer.
In addition to its parts and service contracts, Navistar has
established dealerships in Iraq and Afghanistan.
Archie Massicotte, president of International Military and
Government, LLC said: "Providing solid support after delivery is
essential - just as we do for our commercial business. We have
the expertise, infrastructure and global supply network to keep
the MaxxPro(TM) vehicles mission ready."
Based in Warrenville, Illinois, Navistar International Corp.
(NYSE:NAV) -- http://www.nav-international.com/-- is the parent
company of Navistar Financial Corp. and International Truck and
Engine Corp. The company produces International brand
commercial trucks, mid-range diesel engines and IC brand school
buses, Workhorse brand chassis for motor homes and step vans,
and is a private label designer and manufacturer of diesel
engines for the pickup truck, van and SUV market. The company
also provides truck and diesel engine parts and service sold
under the International brand. A wholly owned subsidiary offers
financing services. The company has operations in Brazil,
Iceland and India.
* * *
As reported in the Troubled Company Reporter on Oct. 29, 2007,
Standard & Poor's Ratings Services said that its 'BB-' corporate
credit ratings on North American truck and diesel engine
producer Navistar International Corp. and subsidiary Navistar
Financial Corp. remain on CreditWatch with negative
implications, where they were placed on Jan. 17, 2006.
PERNOD RICARD: LatAm Net Sales Up 34.1% in First Quarter
--------------------------------------------------------
Pernod Ricard S.A.'s consolidated net sales, excluding duties
and taxes, for the period July 1 to Sept. 30, 2007, increased
+6.9% to EUR1.6 billion, compared to EUR1.5 billion in the same
period a year ago. Organic growth was +11.6%, with foreign
exchange and group structure impacts of -1.9% and -2.4%,
respectively.
Over the full 2007/08 financial year, the Group structure effect
is estimated at a negative of around EUR110 million on sales,
and a negative of around EUR10 million on operating profit from
ordinary activities. In addition, the foreign exchange effect
on operating profit from ordinary activities may be estimated
between a negative EUR60 to EUR70 million at current exchange
rates.
The spirits business recorded growth of +13.4%*, due to good
performance by all geographic regions. The wines business
improved by +3.3%*.
The development of the Group's luxury brands remains one of the
leading growth drivers (premium brands +23 %***). In total,
the growth by all 15 strategic brands reached +9% in volume and
+16%* in value. Nine of them recorded double-digit growth rates
in value*: Martell (+39%), Jameson (+24%), Ballantine's (+22%),
Havana Club (+22%), Chivas Regal (+19%), Mumm (+19%), Malibu
(+13%), The Glenlivet (+13%) and Jacob's Creek (+10%).
Other Group spirits brands registered growth overall, in
particular with the success of premium and ultra premium brands
(Aberlour and Royal Salute) and standard premium brands (Ararat,
Something Special, Wyborowa and Olmeca) and this, in spite of
difficulties encountered by 100 Pipers (Thailand), Montilla
(Brazil) and Hiram Walker Liqueurs (US).
The wines business excluding champagne posted growth, focusing
on the fast-growing premium brand portfolio and featuring a
decline in secondary brands.
All geographic regions contributed to organic growth:
Asia/Rest of World: EUR498 million
(+12.4%, being organic growth +13%)
Again, China showed great strength, posting net sales organic
growth of +30%, in particular due to Martell and Ballantine's
superior qualities, and this, in spite of slower growth observed
in the whisky category.
India also recorded very strong growth due to its Indian whisky
portfolio, including Royal Stag, Imperial Blue and Blenders
Pride, and to the success of imported whisky brands, especially
Chivas Regal and Ballantine's.
Starting from a lower sales level, most other markets also
posted strong double-digit growth: Taiwan, Malaysia, Indonesia,
Vietnam, whereas Thailand slowed down its decline.
South Africa, where Jameson continued to make its breakthrough,
registered further strong growth.
Asian Duty Free was also dynamic with Chivas Regal, Ballantine's
and Martell.
The Pacific Region (Australia and New Zealand) declined
following strong price increases, which especially affected wine
brands.
* Organic growth
** Country with a GNP/capita < US$10,000
*** Brands of an equal or superior quality to Chivas Regal
12 yo and Martell VS.
Americas: EUR393 million
(-3.1%, organic growth +11%)
North America (organic growth: +7.1%)
Jameson, Malibu, The Glenlivet and Wild Turkey continued to
expand rapidly in the U.S. Chivas Regal sales increased
slightly, whereas Martell and Mumm declined following the price
increases. Kahlua and Beefeater sales decreased again.
The wine and champagne portfolio grew strongly (Perrier-Jouet,
Mumm Napa, Jacob's Creek, Montana, Campo Viejo). Growth
remained strong over the quarter in Canada and Mexico.
Central and South America (organic growth: +34.1%)
Central and South America experienced outstanding growth,
primarily due to Chivas Regal (Venezuela), Ballantine's (Brazil,
Chile) and Havana Club (Chile, Cuba).
Europe: EUR508 million (+10.9%, being organic growth +12%)
Europe recorded a sharp acceleration, especially for the 15
strategic brands whose sales increased by +16%*. Sales growth
was enhanced by favorable comparison bases. Sales increased in
most European countries; Western European countries experienced
the strongest growth overall, whereas Central and Eastern
Europe, notably Russia and Poland, developed rapidly.
France: EUR157 million (organic growth +5%)
First quarter sales held up well in France, with dynamic sales
by most whisky brands, in particular premium brands (Chivas
Regal, Aberlour, The Glenlivet), partly due to strong
promotional activities. Mumm gained market shares and benefited
from price increases in the previous financial year and a
favorable mix effect (vintage and rose). Aniseed product sales
declined, due to bad weather in the summer and in spite of a
marked recovery in September.
"First quarter performance was excellent and again illustrated
the success of our premiumization strategy and development in
emerging countries. These very good results enable the
confirmation, in current market conditions and on a like-for-
like basis*, of guidance of strong growth in sales and operating
profit from ordinary activities for Pernod Ricard in 2007/08,"
Patrick Ricard specified.
A guidance figure for organic growth in operating profit from
ordinary activities will be released at the Annual General
Meeting on Nov. 7, 2007.
* Organic growth
** Change and Group structure
About Pernod Ricard
Headquartered in Paris, France, Pernod Ricard --
http://www.pernod-ricard.com/-- produces and distributes
spirits and wines. The Company operates in Europe, North
America, Brazil, Mexico, and the Asia-Pacific region.
* * *
Pernod Ricard carries Standard & Poor's BB+ ratings on its
5.245% floating rate notes and 4-5/8% unsubordinated notes.
SCO GROUP: Taps Boies Schiller as Special Litigation Counsel
------------------------------------------------------------
The SCO Group Inc. and SCO Operations Inc. ask the United States
Bankruptcy Court for the District of Delaware for authority to
employ Boies, Schiller & flexner LLP as special litigation
counsel, nunc pro tunc to Sept. 14, 2007.
Boies Schiller will assist the Debtors in connection with the
continuation of the SCO Litigation. The SCO Litigation consists
of these pending matters:
-- SCO Group v. International Businesses Machines Corp.
pending in the U.S. District Court for the District of
Utah;
-- SCO Group v. Novell Inc. pending in the U.S. District
Court for the District of Utah;
-- Red Hat Inc. v. SCO Group pending in the U.S. District
Court for the District of Delaware;
-- SCO Group v. Autozone Inc. pending in the U.S. District
Court for the District of Nevada;
-- SCO Group v. DaimlerChrysler Corporation pending in the
State of Michigan, Circuit Court for the County of
Oakland;
-- Gray Litigation: Wayne R. Gray v. Novell, SCO Group and
X/Open Company Ltd. pending in the U.S. District Court for
the Middle District of Florida; and
-- SuSE Linux GmbH v. SCO Group pending before the
International Court of Arbitration.
Specifically, the firm will:
a. give advice to the Debtors with respect to the SCO
Litigation;
b. prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents necessary
in the prosecution, defense or appeal of administration of
the SCO Litigation;
c. represent the Debtors at all trials, hearings or
arbitration proceedings with respect to the SCO
Litigation; and
d. protect the interests of the Debtors with respect to the
SCO Litigation.
Subject to the Court's approval, the Debtors will pay the firm
at its standard hourly rate with respect to the Gray Litigation
and 50% of its standard hourly rates with respect to the SuSE
Arbitration and continue the terms of their pre-bankruptcy
engagement on other SCO Litigation.
The Debtors believe that the employment of the firm is necessary
and in the best interest of the Debtors' estates. To the best
of the Debtors' knowledge, Boies Schiller does not represent or
hold any interest adverse to the Debtors or their estates.
The firm can be reached at:
Stuart H. Singer, Esq.
Boies, Schiller & flexner LLP
333 Main St.
Armonk, NY 10504-1812
Tel: (914) 749-8200
Fax: (914) 749-8300
http://www.bsfllp.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: Selects Dorsey & Whitney as Special Corporate Counsel
----------------------------------------------------------------
The SCO Group Inc. and SCO Operations Inc. ask the United States
Bankruptcy Court for the District of Delaware for authority to
employ Dorsey & Whitney LLP as special corporate and securities
counsel, nunc pro tunc to Sept. 14, 2007.
Dorsey & Whitney will:
a. advise and counsel the Debtors with respect to their
responsibilities in complying with the requirements of
regulatory authorities and general corporate matters;
b. give advice with respect to continued compliance with
securities matters, specifically with respect to the
Debtors' continued compliance with the Securities Act of
1033 and the Securities and Exchange Act of 1934,
including the preparation and filing of quarterly and
annual reports required by federal law that will be
necessary during the pendency of the cases;
c. give advice with respect to general corporate governance,
transactional, finance, labor and employment, and other
related general outside counsel matters; and
d. assist lead bankruptcy counsel as may be needed to protect
the interests of the estates in all matters pending before
the Court.
The Debtors will pay the firm at its standard hourly rate.
Professional Designation Rate
------------ ----------- ----
Nolan S. Taylor, Esq. Partner US$440
Devan Padmanabhan, Esq. Partner US$495
Eric Lopez Schnabel, Esq. Partner US$450
Samuel P. Gardner, Esq. Partner US$330
David Marx Associate US$270
In addition, Dorsey had unbilled fees and expenses owed by the
Debtors totaling US$53,128 and other expenses already billed
totaling US$1,622. Prior to the bankruptcy filing, Dorsey
received a US$100,000 retainer, however Dorsey was not able to
issue an invoice for its unbilled expenses. The Debtors and
Dorsey has requested for authority to apply the unbilled claim
against the retainer and the remainder of the retainer against
fees approved for payment pursuant to Court orders.
The Debtors believe that the employment of Dorsey & Whitney is
necessary and in the best interest of the Debtors' estates.
The firm can be reached at:
Nolan S. Taylor, Esq.
Dorsey & Whitney LLP
170 South Main Street, suite 900
Salt Lake, Utah
http://www.dorsey.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.
SENSATA TECH: Third Quarter Net Revenue Up 24.4% to US$357.4MM
--------------------------------------------------------------
Sensata Technologies B.V. announces Third quarter 2007 net
revenue was US$357.4 million, which represents an increase of
US$70.2 million or 24.4 percent over the third quarter of 2006.
Adjusted EBITDA was US$90.2 million, an increase of US$15.6
million or 20.9 percent over the third quarter of 2006 Adjusted
EBITDA.
For the nine months ended Sept. 30, 2007, net revenue was
US$1,031.0 million, an increase of 17.2 percent from US$879.5
million for the same period in 2006. Adjusted EBITDA increased
to US$264.2 million or 13.0 percent from US$233.9 million in the
same period 2006.
The quarter ending cash balance of US$54.0 million was down from
this year's second quarter balance of US$105.9 million,
primarily due to the US$89.7 million in cash that was used in
connection with the acquisition of Airpax Holdings, Inc.
Tom Wroe, Chairman and Chief Executive Officer said, "We
experienced double-digit percentage growth in net revenue and
Adjusted EBITDA for both the third quarter and the nine months
ended Sept. 30, 2007. This was accomplished mainly through the
expansion of our core sensor base net revenue and the execution
of our acquisition strategy. The outlook for our overall
business remains positive through year end though we will
continue to monitor various trends in the global macroeconomic
environment."
Recent Developments
On July 27, 2007, Sensata Technologies, Inc., the Company's
principal U.S. operating subsidiary, completed the acquisition
of Airpax Holdings, Inc., a leading manufacturer of components
and systems for power protection, sensing and controls
applications. The purchase price was US$277.5 million plus fees
and expenses and the transaction was closed using a combination
of cash and new borrowings. Approximately US$195 million in a
new senior subordinated term loan was issued and the balance was
funded with cash on hand.
Mr. Wroe added, "We have successfully begun the integration of
Airpax Holdings, Inc. into Sensata. We now have a leading market
position in our Controls business segment for the higher-growth
network power and critical, high-reliability mobile power
applications; markets where we did not
previously compete."
About Sensata Technologies B.V.
Headquartered in Attleboro, Massachusetts, Sensata Technologies
-- http://www.sensata.com/-- is a supplier of sensors and
controls across a range of markets and applications. The
company has manufacturing locations in Brazil, Mexico, China,
Japan and the Netherlands. Sensata Technologies employs
approximately 5,400 people worldwide.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 1, 2007, Moody's Investors Service affirmed Sensata
Technologies B.V.'s B2 corporate family rating in response to
the company's issuance of EUR141 million (US$195 million) senior
subordinate term loan and use of cash on hand to acquire Airpax
Holdings, Inc. for US$276 million, including fees and expenses.
TAM SA: Signs Compensation Payment Method Agreement with ABAV
-------------------------------------------------------------
TAM S.A. and the Brazilian Association of Travel Agents -- ABAV
-- signed an agreement to establish a new method for
compensation payment that will result in greater transparency
regarding the service purchased by the end user. As of January,
passengers can expect to have the ticket price and corresponding
travel agent compensation for the purchase specified on the
ticket itself. The agreement will first be implemented in the
Brazilian market and subsequently internationally.
The new procedures agreed to between the company and ABAV,
organization with the greatest representation in Brazil's
tourism sector, with over 50 years of activities, will be
presented to the National Civil Aviation Agency in the next few
days.
According to the agreement, travel agent compensation --
previously known as the "commission" and required as an integral
part of the tariff -- will consist of a service charge of 10% of
the ticket value or BRL30.00, whichever is greater, and will be
levied on domestic tickets, which will be charged separately and
directly to the final client. The amount will be charged by the
travel agent directly to the customer as a service charge. The
new procedure will be put into practice by agencies linked to
ABAV and by TAM at all points of sale, stores and TAM Viagens,
outsourced agencies and call centers, but will exclude
electronic sales, where there is no participation by an actual
representative at the moment of sale.
"The work involved in reaching this final model has been
maturing over the past year between the ABAV and TAM boards,
always with open dialogue and great transparency. To get to
this point, we also looked at what was being adopted
successfully in a number of other locations around the
world," said Wagner Ferreira, TAM Vice President of Sales.
For TAM, the change will lead to a reduction in administrative
and general expenses. Passengers, in turn, will be able to
determine the ticket cost as well as service fee for the
transaction.
Investor Relations Contact: Press Agency Contact:
Phone: (55) (11) 5582-9715 Phone: (55) (11) 5582-8167
Fax: (55) (11) 5582-8149 Fax: (55) (11) 5582-8155
invest@tam.com.br tamimprensa@tam.com.br
http://www.tam.com.br/ri
About TAM SA
TAM SA -- http://www.tam.com.br/-- operates regular flights to
47 destinations throughout Brazil. It serves 72 different
cities in the domestic market through regional alliances.
Additionally, it maintains code-share agreements with
international airline companies that allow passengers to travel
to a large number of destinations throughout the world. TAM was
the first Brazilian airline company to launch a loyalty program.
The program has over 3.3 million subscribers and has awarded
more than 3.6 million tickets.
As reported in the Troubled Company Reporter-Latin America on
Aug. 27, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based airline
TAM S.A. S&P's outlook is stable.
* BRAZIL: Petrobras Cuts Rio de Janeiro & Sao Paulo Gas Supplies
----------------------------------------------------------------
Brazilian state-owned oil company Petroleo Brasileiro SA aka
Petrobras said in a statement that it has temporarily reduced
natural gas supplies to Rio de Janeiro and Sao Paulo.
Business News Americas relates that Petrobras lessened supplies
to meet commitments with power regulator Aneel to fuel
thermoelectric plants. Brazilian increased thermo generation
due to dry season. Petrobras reduced supplies to Rio de Janeiro
natural gas distributor CEG and Sao Paulo distributor Comgas.
Published reports say that the decline in natural gas supplies
led to the decrease of CEG's supplies by 1.3 million cubic
meters per day from 7.6 million cubic meters per day and the
decline of Comgas' supplies by one million cubic meters per day
from 15 million cubic meters per day.
Petrobras told BNamericas that distributors in Rio de Janeiro
and Sao Paulo were getting natural gas above the volume agreed
upon for over a year. CEG and Comgas were aware of the need to
lessen supplies two weeks ago.
CEG was disappointed with Petrobras' decision to lessen
supplies, claiming that the move was "arbitrary" and
"unilateral," BNamericas notes.
CEG said in a statement, "Petrobras' initiative will result in a
substantial decrease in VNG sent to service stations and natural
gas to large industries in Rio de Janeiro."
Meanwhile, Comgas said in a filing with the Brazilian securities
regulator Comissao de Valores Mobiliarios that it has been
negotiating with Petrobras to protect the interests of its
customers and investors.
Comgas told BNamericas that it was asking that large consumers
temporarily switch their fuel from natural gas to fuel oil,
saying that it wants to avoid litigations with Petrobras. It
assured residential consumers and commercial customers that they
won't face problems with natural gas supplies.
According to Reuters, Petrobras had began restoring gas supplies
to Rio de Janeiro in response to a court injunction from the
state.
BNamericas says that a court in Rio de Janeiro issued an
injunction ordering Petrobras to resume natural gas supplies to
the state. The court imposed a BRL500,000 fine per hour on the
firm if it wouldn't respect the ruling.
"If Petrobras keeps on interrupting natural gas supplies, there
is a reasonable fear that cars and taxi fleets will run out of
fuel," Rio de Janeiro judge Natacha Oliveira said in the ruling.
About CEG
CEG is a natural gas, liquefied petroleum gas and manufactured
gas distribution company that serves in Rio de Janeiro. It has
571.447 clients and 2,246 kilometers of pipelines. Spain's Gas
Natural SDG operates it.
About Comgas
Comgas Gas is an oil distribution company in Sao Paulo. It has
over 3,400 kilometers of pipelines and serves over 385,000
clients.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp-
- was founded in 1953. The company explores, produces, refines,
transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch
said the rating outlook is stable.
* BRAZIL: Petroleo Brasileiro Restarts P-25 Platform in Albacora
----------------------------------------------------------------
Brazilian state-run oil firm Petroleo Brasileiro SA aka
Petrobras has restarted operations at its 65,000-barrel-per-day
P-25 platform in the Campos basin's offshore Albacora field,
Business News Americas reports.
According to BNamericas, the P-25 platform suspended its
operations on Oct. 16, 2007, due to problems in the drill pipe
riser.
Petrobras admitted to BNamericas that it lost about 25,000
barrels per day during the platform's shutdown.
BNamericas states that Petrobras' domestic oil production
declined 2.1% in September 2007, from September 2006, due to
operational glitches in the platforms in these Campos fields:
-- Barracuda,
-- Caratinga,
-- Espadarte,
-- Marlim, and
-- Roncador.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp-
- was founded in 1953. The company explores, produces, refines,
transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
* * *
As reported 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
===========================
BANK OF AYUDHYA: Phanporn Kongyingyong Quits Post as Director
-------------------------------------------------------------
Phanporn Kongyingyong has resigned from her post as director of
the Bank of Ayudhya PCL, a disclosure with the Stock Exchange of
Thailand says.
According to the disclosure, the bank's Board of Directors
acknowledged Ms. Phanporn's resignation effective yesterday.
The Board also resolved to amended the list of the bank's
directors that are authorized to sign on BAY's behalf to be as
follows: "Mr. Pongpinit Tejagupta or Mr. Chet Raktakanishta, to
co-sign with any one of Mr. Tan Kong Khoon or Mrs. Janice Rae
Van Ekeren, with the Company's seal affixed".
Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of
banking and financial services. The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches. It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.
Bank of Ayudhya's subordinated debts carry Fitch Ratings
Services' BB+ rating.
Fitch Ratings (Thailand) Limited also assigned a National Long-
term rating of 'A+(tha)' to the debentures of Bank of Ayudhya
Public Company Limited (BAY) Tranche 1 due 2010 and Tranche 2
due 2011 of up to THB15 billion each.
BJK INC: Proofs of Claim Filing Deadline Is Nov. 14
---------------------------------------------------
B.J.K. Inc.'s creditors are required to submit proofs of claim
by Nov. 14, 2007, to Kingsley G. Campbell, 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.
B.J.K.'s shareholders decided on Sept. 21, 2007, to place
the company into voluntary liquidation under the Cayman Islands'
Companies Law (2007 Revision).
The liquidator can be reached at:
Kingsley G. Campbell
103 Ronan Avenue, Toronto
Ontario, Canada M4N 2Y2
Telephone: (416) 481 0455
BLACKSTONE PARTNERS: Proofs of Claim Filing Is Until Nov. 16
------------------------------------------------------------
Blackstone Partners Nontaxable Offshore Sterling Fund Ltd. will
hold its final shareholders meeting on Nov. 16, 2007, at the
offices of the liquidator.
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Blackstone W' shareholders agreed 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, USA
BLACKSTONE R OFFSHORE: Proofs of Claim Filing Ends on Nov. 16
-------------------------------------------------------------
Blackstone R Offshore Fund Ltd. will hold its final shareholders
meeting on Nov. 16, 2007, at the offices of the liquidator.
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Blackstone W' shareholders agreed 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, USA
BLACKSTONE W: Sets Final Shareholders Meeting for Nov. 16
---------------------------------------------------------
Blackstone W Offshore Fund Ltd. will hold its final shareholders
meeting on Nov. 16, 2007, at the offices of the liquidator.
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Blackstone W' shareholders agreed 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, USA
BOMBAY CO: Committee Taps Lang Michener as Canadian Counsel
-----------------------------------------------------------
The Official Committee of Unsecured Creditors of Bombay Company
Inc. and its debtor-affiliates ask the United Bankruptcy Court
for the Northern District of Texas for permission to retain Lang
Michener LLP as its Canadian counsel, nunc pro tunc to
Sept. 26, 2007.
As the Debtors' Canadian counsel, Lang Michener will:
a. represent the Committee at hearings in the Canadian
proceeding and any other related Canadian proceedings;
b. advise the Committee and its United States professionals
advisors on matters involving Canadian law and practice
relevant to the Bankruptcy cases, including without
limitation in relation to sale processes and procedures
and assets dispositions;
c. assist the Committee and its U.S. advisors in considering
the impact of the Canadian sales process and issues
affecting the Debtors and their estates, including,
without limitation, the disposition of assets owned by the
Debtors to facilitate the Canadian sale process;
d. advise the Committee and its U.S. advisors on intercompany
issues as between the Debtors and Bombay Canada impacting
on the Debtors and their estates;
e. assist with the Committee's investigation of the assets,
liabilities and financial condition and operations of the
Debtors and Bombay Canada in Canada;
f. assist the Committee and its U.S. advisors in analyzing,
prospective claims and proving claims of the Debtors
against Bombay Canada;
g. assist the U.S. advisors in their analysis of, and
negotiations with, the Debtors, Bombay Canada and third
parties concerning matters related to, among other things,
the sales processes being undertaken and the processes to
be followed upon completion of the sale of the Debtors'
assets and the assets of Bombay Canada and related issues;
h. review and analyze all financial information, analyses,
memoranda, pleadings, orders, reports and other documents
as may be necessary in furtherance of the Committee's
interest and objectives;
i. prepare on behalf of the Committee any legal analyses,
memoranda, pleadings, orders, reports and other documents
as may be necessary in furtherance of the Committee's
interest and objectives;
j. assist and advise the U.S. advisors with respect to any
other matters that they may request; and
k. perform all other legal services prescribed by the
Committee and its U.S. advisors, which may be necessary
and proper for the Committee to discharge its duties in
these bankruptcy cases.
The firm's professionals standard hourly rates in Canadian
currency are:
Designations Hourly Rate
------------ -----------
Partners CDN$390 - CDN$795
Associates CDN$260 - CDN$550
Summer/Articling Students CDN$170 - CDN$215
Paralegals CDN$75 - CDN$245
Sheryl E. Seigel, Esq., an attorney of the firm, assures the
Court that the firm does not hold any interest adverse to the
Debtors' estate and is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code.
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). Robert D. Albergotti, Esq., John
D. Penn, Esq., Ian T. Peck, Esq., and Jason B. Binford, Esq., at
Haynes and Boone, L.L.P., represent the Debtors. As of
May 5, 2007, the Debtors listed total assets of US$239,400,000
and total debts of US$173,400,000.
Attorneys at Cooley, Godward, Kronish LLP acts as counsel for
the Official Committee of Unsecured Creditors. Forshey &
Prostok LLP is the Committee's local counsel.
CHIEN KUO: Proofs of Claim Filing Ends on Nov. 16
-------------------------------------------------
Chien Kuo Group Holdings Limited's creditors are required to
submit proofs of claim by Nov. 16, 2007, to Richard L. Finlay,
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.
Chien Kuo's shareholders decided 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:
Richard L. Finlay
Attention: Krysten Lumsden
Conyers Dill & Pearman
P.O. Box 2681, Cricket Square
Hutchins Drive, Grand Cayman KY1-1111
Cayman Islands
Telephone: (345) 945 3901
Fax: (345) 945 3902
CLARION OFFSHORE: To Hold Final Shareholders Meeting on Nov. 16
---------------------------------------------------------------
Clarion Offshore Fund, Ltd., will hold its final shareholders
meeting on Nov. 16, 2007, at 9:00 a.m. at the registered office
of the company.
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records of the
company for a period of six years from the dissolution of
the company after which they may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Clarion Offshore's shareholders agreed to place the company into
voluntary liquidation under The Cayman Islands' Companies Law
(2007 Revision).
The liquidator can be reached at:
Russell Smith
Attention: Sumitra Devi
P.O. Box 2499, George Town
Grand Cayman KY1-1104, Cayman Islands
Telephone: (345) 946 0820
Fax: (345) 946 0864
GOTTFRIED INT'L: Sets Final Shareholders Meeting for Nov. 16
------------------------------------------------------------
Gottfried International will hold its final shareholders meeting
on Nov. 16, 2007, at 10:00 a.m. at:
The John Hancock Tower
200 Clarendon Street, 54th Floor
Boston, Massachussets 02116
USA
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Gottfried International's shareholders agreed to place the
company into voluntary liquidation under The Cayman Islands'
Companies Law (2007 Revision).
The liquidator can be reached at:
Ansbert Gadicke
The John Hancock Tower
200 Clarendon Street, 54th Floor
Boston, Massachussets 02116
USA
Phone: 617-425-9234
Fax: 617-425-9313
JUST ONE: Proofs of Claim Filing Ends on Nov. 17
------------------------------------------------
Just One Electronics' creditors are required to submit proofs of
claim by Nov. 17, 2007, to John Cullinane and Derrie Boggess,
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.
Just One's shareholder decided on June 14, 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
KED INVESTMENTS: Proofs of Claim Filing Deadline Is Nov. 15
-----------------------------------------------------------
Ked Investments IV Ltd.'s creditors are required to submit
proofs of claim by Nov. 15, 2007, to Stuarts Corporate Services
Ltd., the company's liquidator, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Ked Investments' sole shareholder decided on Sept. 6, 2007, to
place the company into voluntary liquidation under the Cayman
Islands' Companies Law (2007 Revision).
The liquidator can be reached at:
Stuarts Corporate Services Ltd.
4F, Cayman Financial Center
36A Dr. Roy's Drive, George Town
P.O. Box 2510, Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 949 3344
Fax: (345) 949 2888
KED INVESTMENTS: Sets Final Shareholders Meeting for Nov. 16
------------------------------------------------------------
Ked Investments IV Ltd. will hold its final shareholders meeting
on Nov. 16, 2007, at 9:00 a.m. at the offices of the liquidator.
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) considering and, if thought fit, passing a resolution
pursuant to section 158(1)(b) of the Companies Law
authorizing the liquidator to retain the books, accounts,
papers and documents of the Company for a period of five
years from the dissolution of the company after which
they may be destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Ked Investments' shareholders agreed to place the company into
voluntary liquidation under The Cayman Islands' Companies Law
(2007 Revision).
The liquidator can be reached at:
Stuarts Corporate Services Ltd.
4F, Cayman Financial Center
36A Dr. Roy's Drive, George Town
P.O. Box 2510, Grand Cayman, KY1-1104
Cayman Islands
Telephone: (345) 949 3344
Fax: (345) 949 2888
MCP LIMITED: Proofs of Claim Filing Deadline Is Nov. 17
-------------------------------------------------------
MCP Limited's creditors are required to submit proofs of claim
by Nov. 17, 2007, to John Cullinane and Derrie Boggess, 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.
MCP's shareholder decided on Oct. 18, 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
SHORELINE GROUP: Proofs of Claim Filing Ends on Nov. 14
-------------------------------------------------------
Shoreline Group, Ltd.'s creditors are required to submit proofs
of claim by Nov. 14, 2007, to Global Captive Management, Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Shoreline Group's sole shareholder decided on Sept. 18, 2007, to
place the company into voluntary liquidation under the Cayman
Islands' Companies Law (2007 Revision).
The liquidator can be reached at:
Global Captive Management, Ltd.
Attention: Peter Mackay
Building 3, 2nd Floor
Governors Square, 23 Lime Tree Bay
P.O. Box 1363, Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 949 7966
=========
C H I L E
=========
ANIXTER INT'L: Fitch Affirms Issuer Default Rating at BB+
---------------------------------------------------------
Fitch Ratings has affirmed these ratings for Anixter
International Inc. and its wholly owned operating subsidiary,
Anixter Inc.:
Anixter International Inc.
-- Issuer Default Rating 'BB+';
-- Senior unsecured debt 'BB-'.
Anixter Inc.
-- Issuer Default Rating 'BB+';
-- Senior unsecured notes 'BB+';
-- Senior unsecured bank credit facility at 'BB+'.
Fitch's action affects approximately US$800 million of public
debt securities. The rating outlook is stable.
The ratings and outlook reflect these considerations:
-- Fitch expects Anixter to demonstrate continued strong
organic growth driven by solid end market demand and market
share gains;
-- Fitch believes that, although Anixter is operating near the
peak of a typical business cycle, the company should be able
to maintain its current profitability profile with EBITDA
margins approximately 7% to 8% as additional operating
efficiencies mitigate ongoing pricing pressure;
-- Anixter will likely continue to make small acquisitions to
complement growth in its OEM supply business as well as
potential opportunistic acquisitions in its industrial wire
and enterprise cabling businesses which in the past have
been partially debt financed;
-- Fitch expects Anixter will use free cash flow in excess of
funds needed for acquisitions for additional share
repurchase programs and/or one-time dividends; and
-- Anixter's use of debt financing for acquisitions and other
items is expected to, at times, temporarily increase the
company's leverage ratio but Fitch expects the company to
manage its balance sheet in the long term near its current
leverage ratio (total debt/operating EBITDA) of 2.5 times,
or approximately 3.0 on an adjusted basis (total adjusted
debt/operating EBITDAR) as well as a debt to total
capitalization ratio near 50%.
Anixter ratings are supported by:
-- Strong diversification of products, suppliers, customers and
geographic penetration adds stability to the financial
profile by reducing operating volatility; and
-- Anixter has established itself as a market leader in niche
distribution markets, which has resulted in above average
margins for a distributor.
Rating concerns include:
-- Anixter has historically been highly acquisitive with a
portion of acquisitions being debt financed; and
-- Anixter has a history of shareholder friendly actions
coupled with Fitch's expectations that free cash flow in
excess of investments in internal growth and acquisitions
would be returned to shareholders rather than being used to
reduce debt.
As of Sept. 30, 2007, Fitch believes Anixter's liquidity was
sufficient and consisted of:
i) approximately US$46 million of cash and cash equivalents;
ii) US$450 million five-year revolving credit agreement
maturing April 2012, of which, US$216 million was
available;
iii) various other committed and uncommitted credit facilities
totaling approximately US$80 million with nominal amounts
available; and
iv) US$225 million on-balance-sheet accounts receivable
securitization program expiring September 2008, of which,
approximately US$170 million was available.
Total debt as of Sept. 30, 2007, was US$1.0 billion and included
US$55 million outstanding under Anixter's US$225 million
accounts receivable securitization program, US$234 million
outstanding under the US$450 million revolving credit facility,
US$75 million outstanding under various other credit facilities,
US$200 million in 5.95% senior unsecured notes due February
2015, US$163 million in 3.25% zero-coupon unsecured notes due
July 2033 and US$300 million in 1% convertible unsecured notes
due February 2013. The 3.25% zero coupon notes and the 1%
convertible notes are issued by Anixter International and are
structurally subordinated to the remaining debt which is issued
by Anixter Inc. Anixter Inc. is the operating company under the
parent company of Anixter International.
About Anixter
Anixter International Inc. -- http://www.anixter.com/-- is the
world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts ("C" class
inventory components) to original equipment manufacturers.
The company has nearly US$725 million in inventory of more than
325,000 products, logistics network of 197 warehouses with more
than 5 million square feet of space. It has operations in Latin
American countries including Mexico, Costa Rica, Brazil and
Chile.
IRON MOUNTAIN: Earns US$51 Million in Third Quarter 2007
--------------------------------------------------------
Iron Mountain Incorporated has reported strong revenue growth,
higher operating income and earnings of US$51 million or US$0.25
per diluted share. In a separate release, the company announced
the signing of a definitive agreement to acquire electronic
discovery business, Stratify, Inc.
Iron Mountain posted solid operating income before depreciation
and amortization (OIBDA) growth of 28% in the third quarter
supported by strong revenue growth, gross margin improvement and
continued overhead expense control. Included in OIBDA for the
quarter was a US$5 million gain primarily associated with
proceeds received in connection with the July 2006 warehouse
fire in London. The company had balanced revenue performance
across its North American Physical, International Physical and
Worldwide Digital business segments with overall gains supported
by robust service revenue growth. Acquisitions and favorable
foreign currency fluctuations also contributed about 6% to
overall revenue growth.
"We continue to be pleased with the performance of the business
this year," said Richard Reese, Chairman and Chief Executive
Officer. "We are delivering solid revenue and OIBDA growth
across our portfolio. The business is running well and we are
continuing to invest as we grow, making investments consistent
with our strategy that enhance our ability to provide
comprehensive, end-to-end solutions to our customers' most
complex information management challenges. Our pending
acquisition of Stratify, Inc., announced earlier today, is one
example of how we are investing within that context."
In keeping with its strategy to distribute new services and
extend its leadership position in targeted digital markets, Iron
Mountain announced the signing of a definitive agreement to
acquire Stratify, Inc. for approximately US$158 million in cash.
Stratify, based in Mountain View, California, is a leader in
advanced electronic discovery services for the legal market,
offering in-depth discovery and data investigation solutions for
AmLaw 200 law firms and leading Fortune 500 corporations. This
acquisition is subject to regulatory review and customary
closing conditions and is expected to be completed by the end of
the year.
Key Financial Highlights
Iron Mountain's total consolidated revenues for the quarter grew
18% to US$702 million driven by solid internal growth of 12% and
augmented by several acquisitions, most notably ArchivesOne,
Inc. and RMS Services - USA, Inc. The company's overall revenue
growth was highlighted by continued strength in service revenue
internal growth (16%) led by increased special project revenues
in both North America and Europe and strong recycled paper
revenues. Solid storage (8%) and core service (10%) internal
revenue growth rates were also key factors in the company's
revenue performance for the quarter.
OIBDA for the quarter grew 28% to US$192 million, including the
US$5 million gain, reflecting the impact of the company's robust
revenue performance and solid cost leverage, benefiting from
continued control of overhead spending. Selling, general &
administrative expenses decreased 70 basis points as a
percentage of revenues. Additionally, the company posted a
moderate increase in gross margin resulting primarily from
increased higher margin service revenues. This improvement more
than offset dilutive margin impacts from acquisitions and
increased real estate taxes and property insurance costs. See
Appendix B at the end of this press release for a discussion of
OIBDA and the required reconciliation to the appropriate GAAP
measures.
Operating income increased 33% to US$129 million, indicative of
higher OIBDA and higher depreciation and amortization expense
reflecting the impact of recent acquisitions. Net income for
the quarter was US$51 million, or US$0.25 per diluted share,
including other expense, net of US$9 million, or US$0.03 per
share. The components of other expense, net, including the
impact of foreign currency fluctuations are detailed in the
table below.
Also impacting net income was a decrease in the company's
effective tax rate for the quarter. The 17.0% tax rate reflects
the net positive tax effect of certain foreign currency gains
and losses recorded in different tax jurisdictions and other
discrete items such as tax rate changes in the UK and decreases
to our tax reserves as a result of certain state matters.
Absent the impact of any additional foreign currency rate
fluctuations and other discrete items, the company expects its
effective tax rate to be approximately 37% for the fourth
quarter of 2007. All per share amounts have been adjusted to
reflect the three-for-two stock split effected in the form of a
stock dividend on Dec. 29, 2006.
The company's year to date free cash flow before Acquisitions
and Discretionary Investments for the nine months ended
Sept. 30, 2007, is US$95 million reflecting a 17% increase in
cash flows from operating activities, approximately US$29
million of insurance proceeds related to the July 2006 warehouse
fire in London and controlled capital expenditures. We expect
our full year 2007 capital expenditures to be between US$385
million and US$415 million. See Appendix B at the end of this
press release for a discussion of free cash flow and the
required reconciliation to the appropriate GAAP measures.
Acquisitions
Iron Mountain's acquisition strategy focuses on acquiring
attractive businesses that provide a strong platform for future
growth by expanding the company's geographic footprint and
service offerings while enhancing its existing operations.
Since the end of the second quarter of 2007, the company
completed several important acquisitions, most notably, the
previously announced acquisition of RMS Services - USA, Inc.,
the industry's leading provider of outsourced file room
solutions for hospitals, which closed in September 2007.
Furthering its European expansion strategy, Iron Mountain also
acquired records management businesses in France, the
Netherlands and Ireland, all of which were previously reported.
Financial Performance Outlook
The company is raising its financial performance outlook for the
full year ending Dec. 31, 2007, to reflect its year-to-date
financial performance and updated estimates for Q4 2007 results.
Due to the uncertainty around the timing of the closing of the
Stratify transaction, no updates have been made to the company's
financial outlook with respect to that specific transaction.
About Iron Mountain
Headquartered in Boston, Massachusetts, Iron Mountain
Incorporated is an international provider of information storage
and protection related services. The company offers
comprehensive records management and data protection solutions,
along with the expertise to address complex information
challenges such as rising storage costs, litigation, regulatory
compliance and disaster recovery. Founded in 1951, Iron
Mountain has more than 90,000 corporate clients throughout North
America, Europe, Latin America, and Asia Pacific. Revenue for
the twelve months ended Dec. 31, 2006, was approximately US$2.4
billion. Its Latin American operations are located in Argentina,
Brazil, Chile, Mexico and Peru.
* * *
As reported in the Troubled Company Reporter-Latin America on
Mar. 19, 2007, Moody's Investors Service assigned a Ba2 rating
to the proposed US$800 million senior secured credit facilities
of Iron Mountain Inc. Concurrently, Moody's affirmed other
ratings and changed the outlook for the ratings to positive.
The positive outlook recognizes continued strength in operating
performance, including increases in the rate of growth in
storage revenues in recent quarters, and anticipates improved
covenant cushions under the proposed credit facilities. The
positive outlook also incorporates Moody's expectation that,
given the current market position of the company, the size of
future acquisitions is likely to be smaller on a relative basis
than was the case in prior years. Moody's expects the company
to continue to pursue an acquisitive strategy.
===============
C O L O M B I A
===============
SOLUTIA INC: Receives US$2 Billion Exit Loan Commitment
-----------------------------------------------------
Solutia Inc. has received a fully underwritten commitment for
US$2 billion of exit financing. The company has also arranged
for a fully backstopped rights offering that will raise
US$250 million in new equity capital.
Solutia will use the exit loan funds to pay certain creditors
upon emergence from Chapter 11 pursuant to its plan of
reorganization, and for its ongoing operations after emergence.
Citi, Goldman Sachs, and Deutsche Bank Securities Inc. are
acting as joint lead arrangers and joint bookrunners for the
exit financing.
"With this commitment, we are well on our way to achieving the
fourth and final component of the reorganization strategy we
identified at the outset of our case, which is to put in place
an appropriate capital structure for the company," Jeffry N.
Quinn, chairman, president and chief executive officer of
Solutia Inc., said in a news statement.
The exit financing package includes:
-- a US$400 million senior secured asset-based revolving
credit facility;
-- a US$1.2 billion senior secured term loan facility; and
-- a US$400 million senior unsecured bridge facility.
"Despite the recent turbulence in the debt capital markets, we
have obtained an exit financing package that will position
Solutia for continued success and provide adequate funds to
deliver on our business strategies," James M. Sullivan, senior
vice president and chief financial officer, Solutia Inc., said.
Solutia will use the proceeds of the rights offering to fund
retiree benefits and retained legacy liabilities. The rights
offering is backstopped by Highland Capital Management, UBS
Securities, Longacre Fund Management, Southpaw Asset Management,
Merrill Lynch Pierce Fenner & Smith Incorporated, and others.
The rights offerings will only be open to certain of Solutia's
creditors and holders of Solutia's common stock. A registration
statement relating to these securities has been filed with the
Securities and Exchange Commission but has not yet become
effective. The securities may not be sold nor may offers to buy
be accepted prior to the time the registration statement becomes
effective. A written prospectus, when available, for the rights
offerings may be obtained from:
Financial Balloting Group, LLC
757 Third Avenue, 3rd Floor
New York, NY 10017
http://www.fbgdocuments.com/soi
The exit financing and equity rights offering backstop
commitments require the approval of the United States Bankruptcy
Court for the Southern District of New York.
The court has set a confirmation hearing for Nov. 29, 2007, to
approve Solutia's amended plan of reorganization. Solutia
expects to emerge from bankruptcy by the end of the year.
About Solutia Inc.
Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide. Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia. The company and 15 debtor-affiliates filed for
chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No.
03-17949). When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. A hearing to
consider confirmation of the Debtors' Reorganization Plan is
scheduled for Nov. 29, 2007.
(Solutia Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SOLUTIA INC: Court Urges Resolution of Bank of New York Dispute
---------------------------------------------------------------
"Pigs become hogs and then hogs get slaughtered. And then eaten.
What you're going for is so piggy that you risk getting
nothing," Judge Prudence Beatty at the United States Bankruptcy
Court for the Southern District of New York told a lawyer for
The Bank of New York at an Oct. 31 hearing in Solutia, Inc.'s
case, Bloomberg News reports.
John K. Cunningham, Esq., at White & Case LLP, in New York,
appeared before the Court on behalf of Bank of New York,
regarding a US$223,000,000 claim by the bank on account of the
11.25% Senior Secured Notes due 2009 issued by Solutia Inc. or
its predecessor. Bank of New York serves as indenture trustee
for the Senior Notes.
Mr. Cunningham has argued that under New York law -- which
governs the Indenture and Guaranties entered into by the parties
-- Bank of New York, as the Senior Secured Notes Trustee, has a
direct claim against Solutia and each of the Subsidiary
Guarantors and, if unpaid, could obtain a judgment for the full
US$223,000,000 principal amount of the Senior Secured Notes plus
damages for any defeasance not in accordance with the Indenture.
Mr. Cunningham also has asserted that effectiveness of Solutia's
Plan of Reorganization will trigger a change in control under
the Indenture giving the Senior Secured Noteholders a right to
defeasance and a minimum claim of US$245,300,000. Mr.
Cunningham said the Court has preliminarily recognized that
consummation of the transactions contemplated by the Plan, on
the effective date, will cause a "Change of Control."
According to Mr. Cunningham, each Senior Secured Noteholder has
the contractual right to require Solutia to purchase its Senior
Secured Notes for an amount equal to the Change of Control
Amount. If all of the Senior Secured Noteholders elect to
tender their Senior Secured Notes in exchange for the Change of
Control Amount, that amount at a minimum is US$225,230,000, plus
accrued and unpaid interest.
Solutia and its Official Committee of Unsecured Creditors have
argued that the Noteholders are entitled to a claim for not more
than the principal amount funded on account of the Notes --
US$181,700,000 -- at issuance plus any original issue discount
that accrues through the effective date of the Plan --
US$28,200,000.
They have accused Bank of New York of trying to secure up to
US$50,000,000 in windfall at the expense of junior creditors.
Daniel H. Golden, Esq., at Akin Gump Strauss Hauer & Feld LLP,
in New York, counsel to the Creditors Committee, has pointed out
that the Second Circuit is clear that unamortized original issue
discount is unmatured interest -- not principal. Moreover, Mr.
Golden has said, Section 506(b) of the Bankruptcy Code does not
entitle Noteholders, as oversecured creditors, to recover
interest that is unmatured as of the date of payment of their
claim.
Tiffany Kary at Bloomberg News relates that an OID bond is one
issued at a price below par, with OID being considered a form of
interest. When the US$223,000,000 face amount 2009 notes was
issued, Solutia received only US$181,700,000. The missing
US$41,300,000 was considered unmatured interest, Ms. Kary says.
According to Ms. Kary, Judge Beatty said the bank's claim amount
could be as much as US$60,000,000.
At the hearing, Judge Beatty urged Solutia to settle its dispute
with Bank of New York, noting that the claim was the biggest
hurdle to approval of Solutia's reorganization plan, Ms. Kary
reports.
"There are no cases that I have found which remotely approximate
the application of these principles to a case of this financial
magnitude," Ms. Kary quotes Judge Beatty as saying.
Judge Beatty said if no settlement is reached she will rule on
the matter in about two weeks.
About Solutia Inc.
Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide. Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia. The company and 15 debtor-affiliates filed for
chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No.
03-17949). When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. A hearing to
consider confirmation of the Debtors' Reorganization Plan is
scheduled for Nov. 29, 2007.
(Solutia Bankruptcy News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
=======
C U B A
=======
* CUBA: Gets Support at UN Assembly on Ending U.S. Blockade
-----------------------------------------------------------
Inside Costa Rica relates that Cuban Foreign Minister Felipe
Perez Roque has greeted the UN Assembly with a resolution
demanding an end to the U.S. economic and commercial blockade
against Cuba.
According to Mr. Perez, Cuba had a great victory for receiving
world support at the UN, Inside Costa Rica reports.
Perez Roque made a speech, which was broadcasted by Cuban
Television and National Radio Network. The network also
includes reporting the voting details in favor of Cuba at the UN
headquarters in New York.
Mr. Roque, in a telephone interview, said that the Cuban
delegation has received a lot of supports at the UN General
Assembly, Inside Costa Rica adds. He also warned the U.S.
delegates for pressing other countries to vote against the
resolution.
UN General Assembly supported, Inside Costa Rica says, the
elimination of the U.S. punitive measure against Cuba by a vote
of 184 in favor, four against and one abstention, for the 16th
consecutive time.
Aside from the U.S., Israel, Marshall Islands and Palau have
joined the opposition to the UN resolution, Inside Costa Rica
states, citing Mr. Perez. Micronesia abstained in the voting.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Moody's Investors Service said that Cuba's Caa1
foreign-currency issuer rating reflects the debt moratorium that
has been in place for more than 15 years, leading to the
accumulation of principal and interest arrears.
Moody's assigned these ratings on Cuba:
-- CC LT Foreign Bank Deposit, Caa2
-- CC LT Foreign Currency Debt, Caa1
-- CC ST Foreign Bank Deposit, NP
-- CC ST Foreign Currency Debt, NP
-- Issuer Rating, Caa1
===================================
D O M I N I C A N R E P U B L I C
===================================
ASHMORE ENERGY: To Purchase Interest in Chilquinta & Luz del Sur
----------------------------------------------------------------
AEI fka Ashmore Energy International has entered into an
agreement to purchase a 50.0% indirect interest in Chilquinta
Energia S.A. and a 37.9% indirect interest in Luz del Sur S.A.
from Public Service Enterprise Group for US$685 million. The
acquisition includes, among other associated companies, service
companies that provide management of technical projects and
services, construction work, maintenance and other services to
the utilities.
Chilquinta is the fourth largest power distribution company in
Chile by sales, serving over 541,000 customers in Valparaiso and
the surrounding area. In addition to its power distribution
operations, Chilquinta also owns Energas, a natural gas
distribution business that services over 35,000 customers.
Luz del Sur is the largest electric distribution company by
sales in Peru. Luz del Sur (along with its subsidiaries)
services over 800,000 customers in the southern half of Lima and
Canete, including the capital's key economic areas. Luz del Sur
is listed on the Lima Stock Exchange under the symbol
"LUSURBC1".
"We are very pleased to be able to add these two well-run
companies to our business. They are an immediate fit with our
focus on operational excellence and delivering cost effective
service to our customers," said James Hughes, AEI's Chief
Executive Officer. "This acquisition marks our entry into the
attractive Chilean market and represents a further commitment of
capital to the important Peruvian market, which we first entered
earlier this year. These companies increase our scale in two
core business segments and add the kind of stable cash flows on
which we as a company focus."
The transaction is subject to customary closing conditions,
including the expiration of certain refusal rights permitted to
PSEG's current joint venture partner. The parties expect to
close the transaction by year-end. Upon closing, AEI expects to
treat the transaction as an equity-method investment for
accounting purposes.
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.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 3, 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.
As reported in the Troubled Company Reporter-Latin America on
Feb. 27, 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.
CAP CANA: Moody's Rates Proposed US$500 Mil. Senior Notes at B3
---------------------------------------------------------------
Moody's Investors Service has assigned a B3 rating to Cap Cana,
S.A.'s proposed US$500 million senior secured notes due 2017.
These notes will be secured by a first-priority lien on certain
of the Cap Cana's property, and have a liquidation value of not
less than 150% of the principal amounts of the notes and certain
receivables. An escrow will be created by the trustee to manage
the receivables from clients who are buying property in Cap
Cana. These receivables are to be maintained at 125% of the
issue amount. The notes are senior secured obligations of Cap
Cana, and will rank equally in right of payment with all of the
company's existing and futures senior secured indebtedness. The
notes contain certain covenants, which include restricted
payments and incurrence of debt. In addition, the notes also
include a fully funded six-month debt service reserve for
principal and interest, and a cash flow waterfall and related
accounts to ensure that cash flow generated is used first to
service debt during each payment period.
"These proposed notes are rated a notch lower than Cap Cana's
existing US$250 million senior secured debt, rated B2, because
of differences in the underlying collateral," says Moody's
analyst Philip Kibel. Cap Cana's proposed US$500 million
secured notes are backed with a first priority lien on parcels
of raw land within the project vs. already-sold and partially-
built product, which backs the existing US$250 million notes.
Furthermore, the US$250 million notes are backed by 2.0 orderly
liquidation value, and a higher percentage of actual receivables
from existing sales, while the proposed notes have a lower
collateralization of 1.5, based on orderly liquidation value.
The stable rating outlook reflects Moody's expectation that Cap
Cana will maintain its conservative approach to leverage and
stable earnings, while at least meeting its sales projections.
Positive ratings movement would be difficult in the intermediate
term, and would reflect the success of the maintenance of total
leverage at current levels, and the demand for Cap Cana's
product outpacing budgeted sales and revenues by 30%. A
downgrade would reflect economic difficulties in the Dominican
Republic, a natural disaster or other event that delays or
damages the development, or sales demand for Cap Cana's housing
and related property being less than anticipated by at a least
10%.
Cap Cana, S.A., a privately owned company, is a corporation that
was organized under the laws of the Dominican Republic. Cap
Cana is being developed as a multi-use luxury Caribbean resort
with world-class beaches, championship golf courses, yachting
facilities and similar leisure amenities. The property consists
of over 119.9 square kilometers of land, including an eight-
kilometer coastline and 3.5 kilometers of pristine beach.
Cap Cana is located on the easternmost tip of the Dominican
Republic, and is a few minutes drive from Punta Cana
International Airport, which receives nonstop flights from large
metropolitan centers in Europe, Canada and the USA. When fully
developed, Cap Cana is expected to have six championship golf
courses (three of which will be Nicklaus Signature courses, one
of which was recently completed); one of the largest inland
marinas in the Caribbean; several luxury hotels; over 10,000
housing units, including estate homes, villas and condominiums;
numerous sports facilities, including golf, beach and yacht
clubs; and a variety of high-end shops, restaurants, spas and
entertainment complexes. Plans also include the development of
a large ecological preserve.
GENERAL CABLE: Earns US$61.1 Million in 2007 Third Quarter
----------------------------------------------------------
General Cable Corporation has recorded net income of US$61.1
million for the third quarter of 2007, compared to US$37.0
million in the third quarter of 2006.
Net sales for the third quarter of 2007 were US$1.1 billion, an
increase of US$194.0 million or 20.6% compared to the third
quarter of 2006 on a metal-adjusted basis. Without the impact
of acquisitions, revenue growth was approximately 12.1% in the
third quarter of 2007 compared to 2006. This growth was
principally due to the continuing strength of the company's
global electrical infrastructure and electric utility
businesses, as well as favorable foreign exchange translation,
which together more than offset the impact of declining
telecommunications and residential construction demand. Revenues
from acquired businesses contributed US$80.3 million in the
third quarter.
The average price per pound of copper in the third quarter was
US$3.48, an increase of US$0.02 from the second quarter of 2007,
and a decrease of US$0.06 or 1.7% from the third quarter of
2006. The average price per pound of aluminum in the third
quarter was US$1.19, a decrease of US$0.09, or 7% from the
second quarter of 2007, and equal to the third quarter of 2006.
Third quarter 2007 operating income was US$92.3 million compared
to operating income of US$65.8 million in the third quarter of
2006, an increase of US$26.5 million or 40.3%. Operating margin
was 8.1% in the third quarter of 2007, an increase of
approximately 110 basis points from the operating margin
percentage of 7.0% in the third quarter of 2006 on a metal-
adjusted basis. This improvement was principally due to better
price realization in many of the company's product lines,
operating improvements in acquired businesses, cost improvements
from LEAN initiatives, and approximately US$2.4 million in LIFO
gains from the liquidation of lower cost inventory, all of which
more than offset the impact of lower capacity utilization rates
for certain construction and telecommunications product lines.
Included in the earnings results for the third quarter of 2007
was approximately US$0.08 per share of tax benefits resulting
from prior year tax provision true-ups. In addition, the 2007
estimated full year effective tax rate has been reduced to 36%
as a result of the increasing relative mix of income generated
in lower tax rate countries and the impact of effective tax
planning strategies.
Market Update
In North America, revenues increased 9.7% in the third quarter
compared to 2006 on a metal-adjusted basis. This top line
improvement is net of nearly a 20% drop in metal-adjusted
revenues for telecommunications products sold primarily to
telephone operating companies. Without the impact of
telecommunications products, North American metal-adjusted
revenue grew at 16.1% in the third quarter of 2007 compared to
2006. Operating margin has increased by 190 basis points to
8.7%. With the exception of telecommunications products, all
North American businesses reported increased revenues and
earnings during the third quarter of 2007 compared to the prior
year. The company has continued to benefit from its exposure to
a wide range of strong end markets including electric utility,
electrical infrastructure, networking, and electronics that are
more than offsetting continued telecommunications product
declines and the impact of a weak housing market on certain
utility cable product families. The company is examining its
telecommunications footprint in the context of various demand
scenarios.
European electric utility and electrical infrastructure markets
broadly continue to remain robust with the exception of Spanish
construction. Operating earnings in the Company's European
business grew by 35% to US$36.8 million in the third quarter of
2007 compared to the prior year. Operating margin was 7.5% in
the third quarter, equal to the same period in 2006 on a metal
adjusted basis. Revenues were up 35% in the quarter on a metal-
adjusted basis. Before the impact of acquired businesses and
favorable changes in exchange rates, organic growth was 7.5%,
despite approximately a 20% decline in demand for cables used in
Spanish residential construction since the end of 2006. The
company has initiated growth strategies in other European
markets for these low voltage products including the European
do-it-yourself markets. "The Company's European operations are
showing strong results, particularly from businesses recently
acquired. NSW is actively developing products for submarine
power and long-haul fiber optic communications markets and
Silec's high voltage solid dielectric underground cable systems
continue to gain momentum globally. Both businesses are booking
projects into the 2009 timeframe. At ECN, we are nearing
completion of an important technology transfer, which will allow
ECN to manufacture the company's trapezoidal design hardened
steel core overhead transmission cable. This cable effectively
provides about 75% more capacity compared to a similar sized
cable of a traditional design, perfect for the congested rights
of way in Europe," Gregory B. Kenny, the company's President and
Chief Executive Officer, said.
Completion of Acquisition
The company has completed the acquisition of PDIC from Freeport-
McMoRan Copper & Gold Inc. "This is a transformative
transaction for General Cable and one that accelerates our
globalization plans by many years. The developing economies
that are served by PDIC are continuing to grow much faster than
the developed world. During the planning process for the
integration of this acquisition, the management teams of both
General Cable and PDIC have been encouraged by the level of
common business philosophies and the opportunities this
transaction presents for more efficient utilization of our
combined manufacturing capacity, the ability to enter new
markets, and improvements in raw material and equipment costs,"
Mr. Kenny said.
In connection with the acquisition of PDIC, the Company recently
completed an offering of US$475 million of 1% Senior Convertible
Notes due 2012. Proceeds from this offering were used to
partially fund the acquisition of PDIC. Additionally, as part
of the funding of the acquisition of PDIC, the Company increased
the borrowing capacity of its United States revolving asset
backed loan from US$300 million to US$400 million, effective
Oct. 31, 2007. This increase will provide additional liquidity
to fund future acquisitions and internal growth opportunities.
Management Announcements
The company has announced several management changes effective
Nov. 1, 2007, which will align the company's management
structure along geographic lines. The company welcomes Mathias
Sandoval to General Cable as Executive Vice President and Chief
Executive Officer of our combined operations in Latin America,
Sub-Saharan Africa and the Middle East/Asia Pacific. This
includes the historical General Cable Asia Pacific and Central
and South American businesses of the company, as well as Mexico.
Domingo Goenaga has been promoted to Executive Vice President
and Chief Executive Officer of General Cable Europe and North
Africa and will continue in his current capacity. Gregory
Lampert has been promoted to Executive Vice President and Group
President of the North American Electrical and Communications
Infrastructure Group. This business includes products
supporting data, telephone, industrial power, assemblies and
electronic applications. J. Michael Andrews has been promoted
to Executive Vice President and Group President of the North
American Energy Infrastructure and Technology Group. This
business includes products supporting energy exploration,
production, transmission, and distribution applications. Roddy
Macdonald has been promoted to Executive Vice President of
Global Sales and Business Development. In addition to leading
our North American Sales organization, Mr. Macdonald will work
with our business and sales leaders around the globe to align
our commercial strategies and ensure that we will present one
face to global customers across all regions and businesses.
Each of these individuals will report directly to Mr. Kenny.
"Over the last decade, the General Cable management team has
successfully grown the Company from a U.S. centric business
focused on communications and construction cables, to a truly
international Company with approximately two-thirds of its
projected revenues generated outside of the United States and a
product range and geographic diversity second to none," Mr.
Kenny said. "I expect these leaders to be relentless in their
drive for continuous improvement; have the vision to identify
new markets and business opportunities before they become
popular; and have the strength and wisdom to profitably navigate
the Company into the future through all market conditions. I
believe we have one of the most thoughtful and energetic
management teams in the business that we can continue to
leverage as we expand globally."
Preferred Stock Dividend
In accordance with the terms of the company's 5.75% Series A
Convertible Redeemable Preferred Stock, the Board of Directors
has declared a regular quarterly preferred stock dividend of
approximately US$0.72 per share. The dividend is payable on
Nov. 24, 2007, to preferred stockholders of record as of the
close of business on Oct. 31, 2007. The company expects the
quarterly dividend payment to approximate US$0.1 million
Fourth Quarter 2007 Outlook
The company continues to benefit from strong global demand for
many of our products. The North American Electric Reliability
Corporation recently suggested that many regions in North
America will fall below their target electricity capacity
margins within the next two or three years. Additionally, NERC
suggested that planned transmission projects are significantly
higher than projected a year ago. The Company believes this
assessment supports our view of a continuation of a long-term
upgrade cycle for the aging transmission grid. However, demand
for low voltage utility products in North America will likely
continue to be weak as a result of continued new home
construction weakness with particular impact on low voltage
distribution products. As a result, the company expects growth
in the overall utility segment to moderate. The company will be
lowering production levels of certain utility products in North
America in the fourth quarter in an effort to better align its
production and inventory mix with end market demand, which will
have the benefit of increasing operating cash flows. While this
will result in some short-term inefficiency in certain
manufacturing facilities, overall the Company is expected to
grow operating earnings by 20% or more in the fourth quarter
compared to the prior year before the benefit of PDIC.
Revenues for the fourth quarter without PDIC are expected to be
approximately US$1.05 billion, an increase of 12% from the
fourth quarter of 2006 on a metal adjusted basis. In addition,
PDIC will contribute approximately US$220 million of revenues
for the balance of the fourth quarter. For the fourth quarter,
the Company expects to report earnings per share of
approximately US$0.80 to US$0.85, including estimated
contributions from the PDIC operations, the related financing
impact, and purchase accounting related expenses. "Looking
forward, we are increasing our accretion guidance for 2008
related to the acquisition of PDIC from a range of US$0.20 to
US$0.30 to a range of US$0.40 to US$0.50 due to the continuing
strength of PDIC's end markets," Mr. Kenny concluded.
About General Cable
Headquartered in Highland Heights, Kentucky, General Cable
Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes
aluminum, copper, and fiber-optic wire and cable products. It
has three operating segments: industrial and specialty (wire and
cable products conduct electrical current for industrial and
commercial power and control applications); energy (cables used
for low-, medium- and high-voltage power distribution and power
transmission products); and communications (wire for low-voltage
signals for voice, data, video, and control applications).
Brand names include Carol and Brand Rex. It also produces power
cables, automotive wire, mining cables, and custom-designed
cables for medical equipment and other products. General Cable
has locations in China, Australia, France, Brazil, the Dominican
Republic and Spain.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 1, 2007, Moody's Investors Service has assigned a rating of
B1 to the proposed USUS$400 million senior unsecured convertible
notes of General Cable Corporation.
As reported in the Troubled Company Reporter on Sept. 19, 2007,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on General Cable Corp. S&P said the outlook is
stable.
=============
E C U A D O R
=============
FREEPORT-MCMORAN: Closes Phelps Dodge Biz Sale for US$735 Mil.
--------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. has completed the sale of
its international wire and cable business, operated under
Phelps Dodge International Corporation, to General Cable
Corporation for US$735 million. FCX expects to use the proceeds
estimated to approximate US$620 million, net of taxes and other
transaction costs, to repay debt.
General Cable acquired 100% of the shares held by FCX and its
subsidiaries in the entities comprising the wire and cable
business. PDIC operates factories and distribution centers in
19 countries throughout Latin America, Asia and Africa and is
engaged in the manufacturing and distribution of engineered
products, principally for the global energy sector.
FCX expects to record charges of up to approximately US$20
million (US$12 million to net income) for transaction and
related costs associated with the disposition.
About General Cable
Headquartered in Highland Heights, Kentucky, General Cable
Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes
aluminum, copper, and fiber-optic wire and cable products. It
has three operating segments: industrial and specialty (wire and
cable products conduct electrical current for industrial and
commercial power and control applications); energy (cables used
for low-, medium- and high-voltage power distribution and power
transmission products); and communications (wire for low-voltage
signals for voice, data, video, and control applications).
Brand names include Carol and Brand Rex. It also produces power
cables, automotive wire, mining cables, and custom-designed
cables for medical equipment and other products. General Cable
has locations in China, Australia, France, Brazil, the Dominican
Republic and Spain.
About Freeport-McMoran
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) --
http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
As reported in the Troubled Company Reporter-Latin America on
Oct. 1, 2007, Moody's Investors Service revised Freeport-McMoRan
Copper & Gold Inc.'s outlook to positive and affirmed all of its
other ratings. The ratings reflect the overall probability of
default of Freeport, to which Moody's assigns a PDR of Ba2.
Ratings affirmed:
Issuer: Freeport-McMoRan Copper & Gold Inc.
-- Corporate Family Rating: Ba2;
-- Probability of Default Rating: Ba2;
-- US$0.5 billion Senior Secured Revolving Credit
facility, Baa2, LGD1, 2%;
-- US$1.0 billion Senior Secured Revolving Credit
Facility, Baa3, LGD2, 17%;
-- US$2.45 billion Senior Secured Term Loan A, Baa3,
LGD2, 17%;
-- US$339.7 million 6.875% Senior Secured Notes due
2014, Baa3, LGD2, 17%; and
-- US$6 billion Senior Unsecured Notes: Ba3, LGD5, 80%.
PETROECUADOR: Foreign Oil Firms Want Contract Extension
-------------------------------------------------------
Foreign petroleum companies in Ecuador want extension of the
duration of their contracts with state-owned oil firm
Petroecuador, Alexandra Valencia at Reuters reports, citing the
nation's oil minister Galo Chiriboga.
Reuters relates that Ecuadorian President Rafael Correa had
increased a windfall royalty tax on revenues foreign oil
companies earn over a set contractual oil price as he asks for
more control over the country's energy resources. The oil tax
increase would bring in US$700 million a year in less revenue
for oil firms.
Minister Chiriboga told Reuters that the government wants to
renegotiate deals with the companies.
According to Reuters, the minister considers the proposals as
favorable to the government. They are part of the renegotiation
negotiations in which the government wants firms to switch
contracts to let it keep the oil instead of sharing, while
companies would be paid for services.
Minister Chiriboga commented to Reuters, "These proposals
fulfill the government's expectations and, in general, they seek
to extend the period of extraction to cover their investment."
Firms would accept the proposals from the government, as world
oil prices are increasing at record levels, Reuters states.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
PETROECUADOR: Launching Biofuels Admixture Program for Vehicles
---------------------------------------------------------------
Ecuadorian power and renewable energy minister Alecksey Mosquera
told Business News Americas that the government, through its
state-run oil firm Petroecuador, will launch a program on 10%
admixture of ethanol to gasoline and a 40% biodiesel admixture
in all vehicles.
Minister Mosquera commented to BNamericas, "All we need to do is
start planting."
BNamericas relates that Ecuador's program is a similar
initiative in Brazil. However, gasoline admixtures won't reach
the 23% level in Brazil as there is insufficient farming area to
plant sugarcane.
Minister Mosquera explained to BNamericas that for biodiesel,
the program will use palm oil and Jatropha.
BNamericas notes that private firms have invested in Ecuadorian
biodiesel plants to supply the country's demand.
The report says that Ecuadorian President Rafael Correa had
issued executive decree 146 to form the national biofuels
council, which would define policies and ratify plans, programs
and projects related to the management, industrialization and
marketing of biofuels.
The government hopes that using biofuels would help lessen
Ecuador's hydrocarbons derivatives import bill, which is at
US$2.3 billion and could total US$2.5 billion next year,
BNamericas states.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
=====================
E L S A L V A D O R
=====================
HANESBRANDS INC: Inks Ten-Year Strategic Deal with Walt Disney
--------------------------------------------------------------
Hanesbrands Inc. and The Walt Disney Company have entered into a
10-year strategic alliance that will tap into the marketing and
product expertise of two of the world's most trusted and
recognized lineups of brands.
The alliance includes basic apparel exclusivity for the Hanes
and Champion brands, product co-branding, attraction
sponsorships and other brand visibility and signage at Walt
Disney Parks and Resorts properties.
A giant Hanes concert T-shirt - 12 feet wide and 14 feet long -
was unfurled at Rock 'n' Roller Coaster Starring Aerosmith at
Disney-MGM Studios in Lake Buena Vista, Fla., to commemorate the
occasion. During the event, Hanesbrands Chief Executive Officer
Richard A. Noll explained that Hanes will be the presenting
sponsor of the Rock 'n' Roller Coaster Starring Aerosmith, one
of the park's most popular attractions. Hanes will also have a
customizable apparel venue in Downtown Disney at Walt Disney
World Resort that will enable guests to design and personalize
their own custom T-shirts and other items.
Champion will also have naming rights for the stadium at
Disney's Wide World of Sports Complex, the nation's premier
amateur sports venue. In addition to Champion Stadium, there
will be brand placement and promotional opportunities throughout
the 220-acre complex that attracts more than 1.1 million
visitors and 240,000 athletes every year. The alliance also
includes in-store promotional and brand building opportunities
at ESPN Zone restaurants and stores located in Anaheim, Atlanta,
Baltimore, Chicago, Denver, Las Vegas, New York City and
Washington, D.C.
"This alliance is a key component of our marketing programs to
drive long-term growth and is part of our aggressive approach to
building and investing behind our Hanes and Champion brands,"
said Mr. Noll. "Our alliance with Walt Disney Parks & Resorts,
truly one of the world's greatest brands, is a perfect fit to
maximize the brand strength and equity of both organizations. In
addition to becoming key parts of the consumer experience at
Walt Disney Parks and Resorts properties worldwide, Hanes and
Champion will execute consumer marketing and promotional
outreach in the retail apparel marketplace."
The partnership gives Hanesbrands apparel lines Hanes and
Champion category exclusivity for select apparel at Disneyland
Resort in Anaheim, Calif., Walt Disney World Resort and Disney's
Wide World of Sports Complex Stadium, both in Lake Buena Vista,
Fla., and all eight ESPN Zone stores across the country.
"We have had a long-standing relationship with Hanes and
Champion products and are proud to now have Hanesbrands as our
newest alliance partner," said Meg Crofton, president of Walt
Disney World Resort. "Our alliance with Hanesbrands is a
natural given they are a leader in apparel and like us, look for
strategic, innovative ways to extend their brand into
communities throughout the world."
Much of the apparel will be co-labeled, including Disneyland
Resort by Hanes, Walt Disney World by Hanes, Disney's Wide World
of Sports Complex by Champion and ESPN Zone by Champion. Basic
apparel, under the terms of the agreement, is defined as T-
shirts and tanks and fleece sweatshirts, sweatpants, hoodies and
other family fleece, including infant and toddler items.
"The Walt Disney Parks and Resorts alliance represents the
largest marketing partnership to date for Hanesbrands and for
our two largest brands, Hanes and Champion," said Kevin Hall,
Hanesbrands executive vice president and chief marketing
officer. "Our strategy is to focus on select, large-scale
opportunities that leverage the size, strength and growth trends
of our brands. We will be able to leverage our alliance with
Walt Disney Parks and Resorts to create and develop additional
consumer marketing and promotional programs at retail, including
back-to-school and holiday programs, family vacation contests
and awards, on-package messaging and in-store display. This is
a marketing bonanza for Hanes and Champion."
Walt Disney
Walt Disney Parks and Resorts -- http://www.DisneyParks.com/--
is where dreams come true and magic comes to life. This segment
of The Walt Disney Company encompasses 11 theme parks at five of
the world's leading family vacation destinations - Disneyland
Resort, Walt Disney World Resort, Tokyo Disney Resort,
Disneyland Resort Paris and Hong Kong Disneyland. It also
includes the Disney Cruise Line; Disney Vacation Club;
Adventures by Disney; Disney Regional Entertainment, which
operates the ESPN Zone sports dining and entertainment centers;
World of Disney stores in New York, Lake Buena Vista, Fla. and
Anaheim, Calif.; and Walt Disney Imagineering, which creates and
designs all Disney parks, resorts and attractions. Walt Disney
Parks and Resorts had approximately US$10 billion in revenues in
fiscal 2006.
Hanesbrands Inc.
Hanesbrands Inc. -- http://www.hanesbrands.com/-- markets
innerwear, outerwear and hosiery apparel under consumer brands,
including Hanes, Champion, Playtex, Bali, Just My Size, barely
there and Wonderbra. The company designs, manufactures, sources
and sells T-shirts, bras, panties, men's underwear, children's
underwear, socks, hosiery, casual wear and active wear.
Hanesbrands has approximately 50,000 employees in 24 countries,
Including Dominican Republic, El Salvador, Mexico, Puerto Rico,
India and China.
* * *
Standard & Poor's Ratings Services affirmed Hanesbrands Inc.'s
B+ corporate family rating on December 2006.
=================
G U A T E M A L A
=================
AFFILIATED COMPUTER: Names Ron Gillette as Sr. Managing Director
----------------------------------------------------------------
Affiliated Computer Services, Inc. has appointed Ron Gillette
senior managing director, finance and accounting, to lead and
transform its global F&A outsourcing business. His focus will
be on standardizing the company's F&A processes and management
to enable rapid growth in the expanding F&A outsourcing market.
He reports to Ann Vezina, president of the company's Commercial
Solutions Group.
"F&A outsourcing continues to grow, particularly in Europe, and
taking advantage of these emerging opportunities will be an
important part of our growth strategy," Ms. Vezina said. "Ron
has an exceptional blend of operations, sales, and general
management expertise and more than 18 years of global IT and
business process outsourcing experience. I look forward to
working with him to provide the innovative services and
solutions our clients need as we pursue long-term strategic
growth and success."
Prior to joining ACS, Mr. Gillette was a senior partner with
Accenture, responsible for growing their global business process
outsourcing, including F&A and procurement outsourcing. Before
that, he was a managing partner at Deloitte Consulting, where he
built and led that company's global IT outsourcing, creating a
network of 21 delivery centers that provide applications and
outsourcing services. He was also a partner at Ernst & Young,
spearheading their outsourcing efforts with a focus on
technology, business process, and applications, and served as
managing director for EDS in Russia and Eastern Europe.
Mr. Gillette said, "ACS has a number of innovations and
advantages that separate us from our competition in the F&A
space, including a global delivery model, proprietary software
and technology, and an exceptional team of experienced
professionals dedicated to client service. We have the controls
and processes in place to manage our clients' F&A work as well
or better and at a lower cost, and I am excited about leveraging
our innovations and expertise to grow our F&A business in
markets and industries across the world."
Mr. Gillette has a Bachelor of Science degree from the United
States Military Academy in West Point, New York, and is also a
graduate of the U.S. Army Command & Staff College at Fort
Leavenworth, Kansas. He holds an MBA degree from Marymount
University in Arlington, Virginia.
About Affiliated Computer
Headquartered in Dallas, Affiliated Computer Services Inc.
(NYSE: ACS) -- http://www.AffiliatedComputer-inc.com/ --
provides business process outsourcing and information technology
solutions to world-class commercial and government clients. The
company has more than 58,000 employees supporting client
operations in nearly 100 countries. The company has global
operations in Brazil, China, Dominican Republic, India,
Guatemala, Ireland, Philippines, Poland, and Singapore.
* * *
Affiliated Computer Services currently carries Fitch Ratings' BB
Issuer Default Rating.
=========
H A I T I
=========
DYNCORP INT'L: Earns US$13.9 Mil. in Second Qtr. Ended Sept. 28
---------------------------------------------------------------
DynCorp International Inc. earned US$13.9 million for the three
months ended Sept. 28, 2007, compared to a net loss of US$2.9
million for the same period in 2006.
Revenue for the second quarter of fiscal 2008 was US$495.1
million, a 4.3% increase over revenue of US$474.7 million for
the second quarter of fiscal 2007. Revenue for the Government
Services segment, which represented 65.7% of company revenue,
increased to US$325.1 million for the second quarter of fiscal
2008, up US$8.1 million or 2.6% from the second quarter of
fiscal 2007. GS revenue grew through increased deployment of
international police advisors to the Middle East under the
Civilian Police program, a CIVPOL task order to train Iraqi
border security personnel and additional work supporting the
International Narcotics and Law Enforcement Air Wing program.
Revenue for the Maintenance and Technical Support Services
segment, which represented 34.3% of Company revenue, increased
to US$170.0 million for the second quarter of fiscal 2008, up
US$12.3 million or 7.8% from the second quarter of fiscal 2007.
MTSS revenue grew through increased logistics support services
provided to the U.S. Air Force C-21 fleet and work performed for
the U.S. Army's Threat System Management Office, partially
offset by a reduction of personnel on the Contract Field Teams
program.
Operating income was US$33.9 million in the second quarter of
fiscal 2008 compared to US$9.5 million in the second quarter of
fiscal 2007, a 257% increase, primarily due to the elimination
of US$17.9 million of one-time costs that were incurred during
the second quarter of fiscal 2007. Operating margin was 6.8% in
the second quarter of fiscal 2008, compared to operating margin
of 2.0% in the second quarter of fiscal 2007. Operating margin
increased by 4.8 percentage points primarily due to improved
contract performance and the elimination of certain one-time
costs incurred during the second quarter of fiscal 2007.
Earnings before interest, taxes, depreciation and amortization
in the second quarter of fiscal 2008 increased 113% to US$46.6
million, compared to US$21.9 million in the second quarter of
fiscal 2007.
Cash and cash equivalents totaled US$110.1 million at
Sept. 28, 2007, up US$7.6 million from March 30, 2007. The
company had working capital of US$327.4 million at
Sept. 28, 2007, compared to US$282.9 million at March 30, 2007.
Total debt was US$594.7 million at Sept. 28, 2007, a reduction
of US$36.3 million from March 30, 2007. Of this reduction,
US$34.6 million was due to an excess cash flow payment required
by the terms of our credit agreement. Days Sales Outstanding
increased to 76 days from 67 days primarily due to the timing of
collections from the Department of State.
Backlog as of Sept. 28, 2007, decreased to US$2.7 billion from
US$6.1 billion as of March 30, 2007. The backlog decrease was
due to the exclusion of the previously included US$3.3 billion
from the linguist and translation services contract awarded by
the U.S. Army Intelligence and Security Command to Global
Linguist Solutions LLC, a joint venture of DynCorp International
and McNeil Technologies. The Army terminated the contract for
convenience after the Government Accountability Office sustained
the incumbent's protest. INSCOM requested and received revised
proposals, which are currently under evaluation pending a new
award decision.
DynCorp International Inc. -- http://www.dyn-intl.com/-- (NYSE:
DCP) through its operating company DynCorp International LLC, is
a provider of specialized mission-critical technical services,
mostly to civilian and military government agencies. It
operates major programs in law enforcement training and support,
security services, base operations, aviation services and
operations, and logistics support worldwide. Headquartered in
Falls Church, Virginia, DynCorp International LLC has
approximately 14,600 employees worldwide including Haiti.
* * *
DynCorp still carries Standard and Poor's BB- rating assigned on
June 15, 2006. S&P said the outlook is stable.
===============
H O N D U R A S
===============
INTERPUBLIC GROUP: Acquires Translation Consulting
--------------------------------------------------
Interpublic Group has acquired Translation Consulting + Brand
Imaging, a leading branded entertainment agency. Translation is
known for its ability to create high-visibility promotions for
leading marketers in youth and urban markets. Translation will
operate as a stand-alone unit and will be a shared resource for
all Interpublic companies. The unit will continue to be led by
Steve Stoute, the company's founder and Chief Creative Officer.
The terms of the agreement are not being disclosed.
With approximately 45 employees, Translation, based in New York,
is noted for its strategic marketing aimed at young adults and
promotional programs pairing Fortune 500 companies with
celebrities from the worlds of music, sports, entertainment and
fashion. With a strong focus on the urban and youth markets and
multi-cultural consumers, Translation has built programs for
Reebok and General Motors, and has worked with celebrities like
Beyonce, Justin Timberlake, Jay-Z and Gwen Stefani.
"Translation has a strong track record in delivering the youth
and urban audience to top marketers. In today's world of
fragmented media, niche marketing is more important than ever,"
commented Michael I. Roth, Chairman and CEO of Interpublic.
"All consumers, especially the youth market, have unprecedented
options when it comes to media and how they interact with our
clients. Under Steve's leadership, Translation has built
meaningful engagements between clients' brands and this hard-to-
reach audience."
"We are thrilled to be partnering with Interpublic," said Steve
Stoute. "Both companies will have a better ability to develop
relationships with leading global brands seeking to reach
broader and more diverse audiences. We look forward to bringing
Translation's extensive knowledge and understanding of the
marketplace to Interpublic's vast network of marketing
companies."
About Translation
Translation Consultation + Brand Imaging is a leading brand
marketing firm that creates and implements pioneering marketing
concepts for global consumer brands. The company specializes in
developing innovative promotions between Fortune 500 companies
and superstar celebrities from music, sports, entertainment and
fashion. In addition, Steve Stoute and Translation are actively
involved in developing several entrepreneurial ventures,
including Carol's Daughter, a retailer of exceptional beauty-
care products for men and women.
About Interpublic Group
New York-based, Interpublic Group of Companies Inc. (NYSE:IPG)
-- http://www.interpublic.com/-- is one of the world's leading
organizations of advertising agencies and marketing services
companies. The Interpublic Group has over 43,000 employees
working in offices in more than 130 countries around the world,
including Argentina, Brazil, Barbados, Belize, Chile, Colombia,
Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala,
Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Puerto
Rico, Peru, Uruguay and Venezuela.
* * *
As reported in the Troubled Company Reporter on May 22, 2007,
Fitch Ratings has upgraded Interpublic Group's Issuer Default
Rating to 'BB-' from 'B'. Approximately US$2.3 billion in total
debt as of March 31, 2007, is affected. Fitch said the rating
outlook is stable.
IPG's ratings are as:
-- Issuer Default Rating (IDR) upgraded to 'BB-' from 'B';
-- Enhanced Liquidity Facility (ELF) upgraded to 'BB-'
from 'B'/'RR4';
-- Senior unsecured notes (including convertibles) upgraded
to 'BB-' from 'B'/'RR4';
-- Cumulative convertible perpetual preferred stock upgraded
to 'B' from 'CCC'/'RR6'.
=============
J A M A I C A
=============
CENTURY ALUMINUM: Earns US$7.5-Mln in 3rd Quarter Ended Sept. 30
----------------------------------------------------------------
Century Aluminum Company reported net income of US$7.5 million
for the third quarter of 2007. Reported third quarter results
include an after-tax charge of US$46.2 million for mark-to-
market adjustments on forward contracts that do not qualify for
cash flow hedge accounting.
In the third quarter of 2006, the company reported net income of
US$173.9 million, which included an after-tax gain of US$134.6
million for mark-to-market adjustments on forward contracts that
do not qualify for cash flow hedge accounting.
Sales in the third quarter of 2007 were US$454.4 million,
compared with US$381.3 million in the third quarter of 2006.
Shipments of primary aluminum for the quarter totaled 195,540
tonnes compared with 169,598 tonnes in the third quarter of
2006. The increase reflects additional volume from the
continuing expansion at Grundartangi and the temporary shutdown
of one potline at the Ravenswood, West Virginia smelter in 2006,
which resulted in lost production of approximately 8,000 tonnes
in the year-ago quarter.
Net income for the first nine months of 2007 was US$11.1
million, which includes an after-tax charge of US$172.1 million
for mark-to-market adjustments on forward contracts that do not
qualify for cash flow hedge accounting. Net income for the
first nine months of 2006 was US$78.2 million which included an
after tax charge of US$68.4 million for mark-to-market
adjustments on forward contracts that do not qualify for cash
flow hedge accounting.
Sales in the first nine months of 2007 were US$1.37 billion
compared with US$1.13 billion in the same period of 2006.
Shipments of primary aluminum for the first nine months of 2007
were 568,812 tonnes compared with 498,264 tonnes for the
comparable 2006 period.
"Century achieved solid performance during the third quarter,"
said president and chief executive officer Logan W. Kruger.
"Our plants produced above capacity and operating costs were
within expectations, despite continuing upward pressure on U.S.
power costs. We made significant progress on our growth
projects in Iceland and elsewhere. We expect to complete the
latest 40,000 tonne expansion of the Grundartangi facility later
this year, on schedule and on budget. The positive opinion by
the Icelandic Planning Agency on the Environmental Impact
Assessment for our proposed greenfield smelter at Helguvik is a
significant milestone and we plan to begin preparing the site
for construction by early next year."
At Sept. 30, 2007, the company's consolidated balance sheet
showed US$2.48 billion in total assets, US$1.85 billion in total
liabilities, and US$635.1 million in total shareholders' equity.
About Century Aluminum
Headquartered in Monterey, California, Century Aluminum Company
(NASDAQ: CENX) -- http://www.centuryaluminum.com/-- owns
primary aluminum capacity in the United States and Iceland, as
well as an ownership interest in alumina and bauxite assets in
the United States and Jamaica. Century's corporate offices are
located in Monterey, California.
* * *
Century Aluminum Company carries Moody's Investors Service Ba3
corporate family and probability-of-default ratings, and B1
senior unsecured debt rating. Moody's said the ratings outlook
remains stable.
The company also carries Standard & Poor's BB- long-term foreign
and local issuer credit ratings. S&P said the ratings outlook
remains stable.
NATIONAL WATER: Says Heavy Rains Disrupt Water Supply
-----------------------------------------------------
The National Water Commission told Radio Jamaica that heavy
rains have severely affected some of its systems, causing
disruption of water supply.
Some parts of Jamaica are experiencing disruption in their water
supply due to broken pipelines and broken mains, Radio Jamaica
relates, citing the National Water.
The National Water's communications manager Charles Buchanan
explained to Radio Jamaica that the continuing rain is
preventing the firm from conducting repairs.
Mr. Buchanan commented to Radio Jamaica, "With the spate of
heavy rains over the past few days the National Water Commission
water supply systems are being negatively affected and our
customers are either experiencing unplanned disruptions in their
service or low water pressure. Some of the issues and depending
on the particular case we have to await the natural conditions
changing. Unless and until the muddy inflows change and the
rivers recede, some of the problems relating to high turbidity
cannot be addressed."
* * *
As reported in the Troubled Company Reporter on Feb. 7, 2006,
the National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses. For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion. The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.
===========
M E X I C O
===========
ACXIOM CORP: Board Okays US$75-Mil. Stock Repurchase Program
------------------------------------------------------------
Acxiom(R) Corporation's board of directors has authorized the
repurchase of up to US$75 million of the company's common stock
over the next 12 months in open market or privately negotiated
transactions, depending on prevailing market conditions and
other factors. The repurchase program may be suspended or
discontinued at any time.
Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq:
ACXM) -- http://www.acxiom.com/-- integrates data, services and
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world. The core components of Acxiom's
solutions are Customer Data Integration technology, data,
database services, IT outsourcing, consulting and analytics, and
privacy leadership. Founded in 1969, Acxiom has locations
throughout the United States, Europe, Australia and China.
Acxiom has a team of specialists with sales and business
development associates based in the largest Latin American
markets: Brazil, Argentina and Mexico.
* * *
As reported in the Troubled Company Reporter on Oct. 3, 2007,
Standard & Poor's Ratings Services said its 'BB' corporate
credit rating on Little Rock, Arkansas-based Acxiom Corp.
remains on CreditWatch with negative implications, where it was
placed on May 17, 2007. At the same time, S&P also placed the
'BB' senior secured debt ratings on CreditWatch with negative
implications, because the debt will no longer be refinanced as
part of the LBO financing.
ACXIOM CORP: Annual Stockholders Meeting Scheduled on Dec. 21
-------------------------------------------------------------
The board of directors of Acxiom(R) Corporation has scheduled
the company's Annual Meeting of Stockholders for Dec. 21, 2007,
at 10 a.m. CST. The meeting will be held at the Acxiom River
Market Building, 601 East Third Street in Little Rock, Arkansas.
Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq:
ACXM) -- http://www.acxiom.com/-- integrates data, services and
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world. The core components of Acxiom's
solutions are Customer Data Integration technology, data,
database services, IT outsourcing, consulting and analytics, and
privacy leadership. Founded in 1969, Acxiom has locations
throughout the United States, Europe, Australia and China.
Acxiom has a team of specialists with sales and business
development associates based in the largest Latin American
markets: Brazil, Argentina and Mexico.
* * *
As reported in the Troubled Company Reporter on Oct. 3, 2007,
Standard & Poor's Ratings Services said its 'BB' corporate
credit rating on Little Rock, Arkansas-based Acxiom Corp.
remains on CreditWatch with negative implications, where it was
placed on May 17, 2007. At the same time, S&P also placed the
'BB' senior secured debt ratings on CreditWatch with negative
implications, because the debt will no longer be refinanced as
part of the LBO financing.
BEARINGPOINT INC: Sarah Beardsley to Lead Comm & Media Practices
----------------------------------------------------------------
BearingPoint Inc. has appointed Sarah Beardsley to senior vice
president and leader of its Communications and Media practices.
Ms. Beardsley brings more than 20 years of leadership and
management experience from highly competitive telecom and
technology companies. Her background includes sales, marketing,
business development, customer service, product management and
service delivery for mid-sized and large Fortune 500 companies.
Most recently, Ms. Beardsley was a senior vice president of
VeriSign, where she was responsible for all client-facing
activities for Verisign's communications carrier customers,
including sales, support, customer care, business development
and marketing, as well as the targeting and integration of
strategic acquisitions. Prior to joining VeriSign, Ms.
Beardsley was president of Savvis Communications' startup
enterprise business.
Ms. Beardsley's career also includes a variety of general
management and marketing positions at AT&T and MCI. During her
16 years at MCI, Ms. Beardsley led the company's carrier segment
and oversaw its entrance into competitive local services.
"BearingPoint is proud to appoint Sarah as the leader of its
Communications and Media practices," said Tom McKelvey,
BearingPoint executive vice president. "The communications and
media industries are not only in a period of rapid change and
growth, but constantly dealing with new technologies changing
the marketplace. Sarah's extensive leadership and experience
will enable us to continue providing our customers with the
solutions they need to stay ahead of the game."
Ms. Beardsley graduated summa cum laude with a Bachelor of
Science degree from the University of Illinois. In addition,
she serves on the Executive Committee of the Board of Directors
for non-profit SOS Children's Villages Illinois and as a trustee
for Steppenwolf Theatre.
About BearingPoint
Headquartered in McLean, Virginia, BearingPoint Inc., (NYSE:
BE) -- http://www.BearingPoint.com/-- provides of management
and technology consulting services to Global 2000 companies and
government organizations in 60 countries worldwide. The firm
has approximately 17,500 employees, and major practice areas
focusing on the Public Services, Financial Services and
Commercial Services markets.
BearingPoint has global locations including in Indonesia,
Australia, Austria, China, India, Japan, Mexico, Portugal,
Singapore and Thailand.
The company reported total assets of US$1.9 billion, total
liabilities of US$2.1 billion, and total stockholders deficit of
US$177.3 million as of Dec. 31, 2006.
GLOBAL POWER: Court Approves Disclosure Statement
-------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has
approved Global Power Equipment Group Inc.'s Disclosure
Statement, authorizing the company to begin soliciting votes
from its creditors and shareholders on its amended Chapter 11
Plan of Reorganization.
Pursuant to a Plan Support Agreement approved by the Bankruptcy
Court, the Plan is supported by both of the statutory committees
appointed to represent creditors and stockholders in the chapter
11 cases and by holders the company's senior subordinated notes.
As reported in the Troubled Company Reporter on Sept. 14, 2007,
Global Power's plan includes a rights offering available to
existing equity holders for the issuance of new common stock of
the reorganized company backstopped in an amount up to $90
million by a group of existing equity holders. The timeline
approved by the Court establishes Nov. 6, 2007, as the record
date for voting on the Plan and participating in the rights
offering.
"Since entering into the plan settlement outline in August with
the committees and the noteholders, the company and
representatives of the major constituencies in these cases have
worked hard to finalize the various components of the Plan,
which the company believes maximizes the recovery of all
stakeholders," John Matheson, President and Chief Executive
Officer of Global Power, said. "With the Disclosure Statement
approved and a confirmation hearing scheduled, we now have a
clear timeline for a successful emergence from chapter 11. The
company will emerge from chapter 11 with a strong balance sheet
and capital structure that will ensure continued excellent
service and support for our customers."
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.
GLOBAL POWER: Plan Confirmation Hearing Scheduled on December 20
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware set a
hearing on Dec. 20, 2007, to consider confirmation of the
Amended Chapter 11 Plan of Reorganization filed Global Power
Equipment Group Inc.
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.
ICONIX BRAND: 3rd Qtr. Net Income Climbs to US$17 Mil. in 2007
--------------------------------------------------------------
Iconix Brand Group Inc. has announced US$42.7 million Licensing
revenue for the third quarter and nine months ended
Sept. 30, 2007.
Q3 2007 Results
Licensing revenue for the third quarter of 2007 increased 93% to
approximately US$42.7 million, as compared to approximately
US$22.1 million in the third quarter of 2006. EBITDA for the
third quarter increased 92% to approximately US$30.8 million, as
compared to approximately US$16.1 million in the prior year
quarter and free cash flow for the quarter increased 106% to
approximately US$27.4 million, as compared to approximately
US$13.3 million in the prior year quarter. Net income for the
third quarter increased 114% to approximately US$17.0 million
versus approximately US$7.9 million in the prior year quarter
and fully diluted earnings per share increased to approximately
US$0.28 versus US$0.18 in the prior year quarter. EBITDA and
free cash flow are non-GAAP measures and reconciliation tables
for both are attached to this press release.
Nine months ended Sept. 30, 2007 results:
Licensing revenue for the nine months ended Sept. 30, 2007
increased 109% to approximately US$112.6 million, as compared to
approximately US$53.8 million in the prior year nine-month
period. EBITDA for the nine-month period increased 138% to
approximately US$85.4 million, as compared to approximately
US$35.9 million in the prior year nine-month period, and free
cash flow increased 160% to approximately US$74.5 million, as
compared to approximately US$28.7 million in the prior year nine
month period. Net income as reported on the company's income
statement for the nine month period increased 88% to
approximately US$44.5 million, as compared to approximately
US$23.6 million in the prior year nine month period and fully
diluted earning per share as reported on the company's income
statement was US$0.73 versus US$0.54 in the prior year nine
month period. The company recognized non-cash tax benefits in
the prior year nine-month period and therefore comparing net
income on a tax-effected basis, the company reported net income
of approximately US$44.5 million as compared to approximately
US$17.1 million (tax-effected) in the prior year nine months.
In comparing fully diluted earnings per share on a tax-effected
basis, the company reported fully diluted earnings per share of
US$0.73 in the first nine months of 2007, as compared to US$0.40
(tax-effected) in the prior year nine month period. Tax effected
net income and fully diluted EPS are non-GAAP metrics and a
reconciliation table for both is attached to this press release.
Neil Cole, Chairman and Chief Executive Officer of Iconix,
commented, "I am pleased with our results this quarter as we
increased revenue 93% and net income 114% from the prior year in
what was a very challenging period for retail in general. Our
performance this quarter highlights the unique attributes of our
licensing model where diversification from a portfolio of 15
brands and almost 200 licensees, combined with contractually
guaranteed revenue and no inventory exposure reduces our risk
and volatility in difficult retail environments. Looking ahead
to the remainder of this year and for 2008, I am confident we
will continue to deliver strong increases in both revenue and
profitability and execute our long term growth plan."
2007 Guidance:
The company is projecting that for the full year 2007 it will be
at the high of end of its current revenue guidance of US$150 -
US$160 million as well as its current fully diluted earnings per
share guidance of US$0.96 - US$1.00.
2008 Guidance:
The company is issuing guidance for the full year 2008 of
revenue in a range of US$240 to US$250 million and fully diluted
EPS in a range of US$1.35 to US$1.40.
About Iconix
Based in New York City, Iconix Brand Group Inc. (Nasdaq: ICON) -
- http://www.iconixbrand.com/-- owns fashion brands to retail
distribution from the luxury market. The company licenses its
brands to retailers and manufacturers worldwide. The group has
international licensees in Mexico, Japan and the United Kingdom.
* * *
As reported in the Troubled Company Reporter on June 20, 2007,
Standard & Poor's Ratings Services revised its ratings outlook
on Iconix Brand Group Inc. to negative. At the same time,
Standard & Poor's assigned its 'B-' debt rating to Iconix's then
proposed US$250 million convertible senior subordinated notes
due 2012.
As reported in the Troubled Company Reporter on June 18, 2007,
Moody's Investors Service affirmed Iconix Brand Group Inc.'s
corporate family rating at B1 and assigned a B3 rating to the
company's then proposed US$250 million convertible senior
subordinated note offering.
KANSAS CITY: Board Declares US$0.25 Per Share Cash Dividend
-----------------------------------------------------------
Kansas City Southern's Board of Directors has declared a cash
dividend of US$0.25 per share on the outstanding 4% Non-
Cumulative Preferred Stock. The cash dividend will be payable
Jan. 15, 2008, to shareholders of record at the close of
business on Dec. 31, 2007.
The Board also declared a cash dividend of US$5.3125 per share
on the outstanding 4.25% Redeemable Cumulative Convertible
Perpetual Preferred Stock, Series C. The cash dividend will be
payable on Nov. 15, 2007, to shareholders of record at the close
of business on Nov. 1, 2007.
Finally, the Board declared a cash dividend of US$12.8125 per
share on the outstanding 5.125% Cumulative Convertible Perpetual
Preferred Stock, Series D. The cash dividend will be payable on
Nov. 15, 2007, to shareholders of record at the close of
business on Nov. 1, 2007.
Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the US,
Mexico and Panama. Its primary U.S. holding includes KCSR,
serving the central and south central U.S. Its international
holdings include Kansas City Southern de Mexico, serving
northeastern and central Mexico and the port cities of Lazaro
Cardenas, Tampico and Veracruz, and a 50% interest in
Panama Canal Railway Company, providing ocean-to-ocean freight
and passenger service along the Panama Canal. KCS' North
American rail holdings and strategic alliances are primary
components of a NAFTA Railway system, linking the commercial and
industrial centers of the U.S., Canada and Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 17, 2007, Fitch Ratings assigned a 'B+' foreign currency
rating and a Recovery Rating of 'RR4' to the US$165 million
senior notes due 2014 to be issued by Kansas City Southern de
Mexico, S.A. de C.V. The new notes rank pari passu with KCSM's
existing senior unsecured obligations.
Fitch also maintained 'B+' foreign currency ratings and 'RR4'
recovery ratings on KCSM's other outstanding notes:
-- US$178 million 12.50% senior notes due 2012;
-- US$460 million 9.375% senior notes due 2012;
-- US$175 million 7.625% senior notes due 2013.
The proceeds of the proposed new issuance will be used primarily
to pay off the company's outstanding US$178 million 12.50% notes
due 2012.
Fitch also maintained a 'B+' foreign and local currency Issuer
Default Rating for KCSM. Fitch said the rating outlook for
these ratings is stable.
MAXCOM TELECOM: Posts MXN7.6 Million Net Loss in 2007 Third Qtr.
----------------------------------------------------------------
Maxcom Telecomunicaciones S.A.B. de C.V. announced Third Quarter
2007 Revenue increased 28% to MXN607.6 million.
Lines
The number of voice lines in service at the end of third quarter
2007 increased 26% to 321,003 lines, from 255,174 lines at the
end of third quarter 2006, and 7% when compared to 299,744 lines
in service at the end of second quarter 2007.
During 3Q07, 29,306 new voice lines were installed, 3% above the
28,551 lines installed during 3Q06. When compared to 2Q07, the
number of installations decreased 3% from 30,343 lines.
During the quarter, the monthly churn rate for voice lines was
1.7%, above the 1.6% monthly average churn experienced during
3Q06 and 2Q07.
Data equivalent lines (at 64Kbps) increased 226% to 125,960 at
the end of 3Q07 from 38,640 at the end of 3Q06, and 105% when
compared to 61,586 equivalent lines at the end of 2Q07. The
increase was mainly driven by installations to residential
customers.
During the third quarter, we launched our paid TV service in the
city of Puebla. As of Sept. 30, 2007, we had already installed
3,340 TV sets for 2,755 subscribers.
Net Income
Net income for 3Q07 was negative MXN7.6 million, which compared
favorably to negative MXN27.4 million in 3Q06. Net income
during 2Q07 was even at MXN0.2 million. The main drivers for
the negative net income of this reporting quarter were non-cash
items related to a loss in net monetary position and deferred
taxes in the amount of MXN32.1 million and MXN38.8 million,
respectively.
Customers
The number of total customers (voice, data and TV) grew 23% to
228,605 at the end of 3Q07, from 185,979 at the end of 3Q06, and
10% when compared to 207,309 customers at the end of 2Q07.
Revenues
Revenues during 3Q07 increased 28% to MXN607.6 million, from
MXN476.2 million reported in 3Q06. Voice revenues in the quarter
increased 33% to MXN478.2 million, from MXN359.0 million during
3Q06, and were primarily driven by a 26% increase in voice lines
and a higher average revenue per line. The ARPU increase was
mainly attributed to an increase in public telephony services.
Data revenues in 3Q07 were MXN31.4 million, a 66% increase when
compared to MXN18.9 million in 3Q06, driven by the increase in
data equivalent lines. Wholesale revenues in 3Q07 were even at
MXN98.0 million, when compared to MXN98.2 million recorded in
3Q06.
3Q07 revenues represented a 7% increase from the MXN569.9
million reported in 2Q07. Voice revenues in 3Q07 increased 8%
from MXN442.6 million in 2Q07, while data revenues increased to
MXN31.4 million, and were 23% higher than those reported in 2Q07
at MXN25.5 million. During 3Q07, revenues from Wholesale
customers decreased 4% from MXN101.7 million recorded in 2Q07.
Cost Of Network Operations
Cost of Network Operations in 3Q07 was MXN249.7 million, 27%
above the cost of MXN196.0 million in 3Q06. With outbound
traffic decreasing 15%, the cost per minute increased as a
result of higher operating costs in our public phones due to a
larger number of public phones in service, along with higher
long distance termination charges and higher minutes to cellular
phones.
The MXN53.7 million increase in the Cost of Network Operations
was generated by: (i) MXN48.8 million, or 30% increase in
network operating services, as a result of MXN22.3 million
higher operating costs related to public telephones, MXN15.7
million higher calling party pays interconnection fees, MXN5.4
million higher leases of circuits and ports, MXN4.3 million
higher long distance interconnection fees, MXN1.4 million higher
cost for paid TV operations, and MXN0.2 higher Internet services
costs, partially offset by MXN0.5 million decrease in other
services costs, such as CATV and cellular operations; (ii)
MXN4.2 million, or 14% increase in technical expenses; and,
(iii) MXN0.7 million, or 16%, increase in installation expenses
and cost of disconnected lines.
Cost of Network Operations increased 3% on a quarter-over-
quarter basis when compared to MXN242.2 million in 2Q07. The
MXN7.5 million increase in Cost of Network Operations was
generated by: (i) MXN6.5 million, or 3% increase in Network
operating services, as a result of MXN2.9 million higher leases
of circuits and ports, MXN2.0 million higher cost of operation
of public telephones, MXN1.5 million higher calling party pays
interconnection fees, MXN1.4 million higher cost for paid TV
operations, and MXN0.8 million higher Internet services costs;
partially offset by MXN1.1 million lower long distance
interconnection fees, and MXN1.0 million lower other services
cost, such as CATV and cellular operations; (ii) MXN1.3 million,
or 4%, increase in technical expenses; and, (iii) MXN0.3
million, or 5%, decrease in installation expenses and cost of
disconnected lines.
SG&A
SG&A expenses were MXN181.2 million in 3Q07, 9% above MXN165.9
million in 3Q06. The MXN15.3 million increase was mainly driven
by: (i) higher salaries, wages and benefits of MXN14.3 million
as a result of larger headcount; (ii) MXN7.2 million higher
general and corporate expenses; (iii) MXN1.3 million higher
sales commissions; and, (iv) MXN0.1 million higher compensation
charges related to stock options plans. These increases were
partially offset by: (i) lower external advisors expenses of
MXN4.0 million; (ii) MXN2.4 million lower advertising and
promotion expenses; (iii) lower bad debt reserve of MXN0.9
million; and, (iv) lower maintenance expenses of MXN0.3 million.
When compared to 2Q07, SG&A expenses in 3Q07 increased 8% from
MXN167.9 million. The MXN13.2 million increase was generated
by: (i) higher salaries, wages and benefits of MXN12.6 million;
(ii) higher general and corporate expenses of MXN3.1 million;
(iii) MXN1.4 million higher external advisors expense; (iv)
MXN0.9 million higher sales commissions; and, (v) higher
compensation charges related to stock options plans of MXN0.7
million. These increases were partially offset by: (i) MXN3.5
million decline in advertising and promotion expenses; (ii)
lower bad debt reserve of MXN1.3 million; and, (iii) lower
maintenance expenses of MXN0.7 million.
SG&A expenses in 3Q07, before the effect of the non-cash stock
option compensation charge, were MXN177.0 million, 9% above
MXN161.8 million in 3Q06, and 5% above MXN167.9 million in 2Q07.
Adjusted EBITDA
Adjusted EBITDA for 3Q07 was MXN181.0 million, 53% higher than
MXN118.4 million in 3Q06, and 11% higher than MXN163.3 million
in 2Q07. Adjusted EBITDA, as a percentage of revenues were 30%
for 3Q07, five percentage points higher than the 25% achieved in
3Q06 and one percentage point higher than the 29% in 2Q07.
EBITDA
EBITDA for 3Q07 was MXN176.8 million, 55% higher than MXN114.3
million in 3Q06, and 11% higher than MXN159.8 million in 2Q07.
EBITDA as a percentage of revenues was 29% in 3Q07, five
percentage points higher than 24% in 3Q06 and one percentage
point higher than 28% in 2Q07.
Operating Income
Operating income for 3Q07 was MXN72.4 million, 215% higher than
MXN23.0 million in 3Q06, and 31% higher than MXN55.2 million in
2Q07.
Capital Expenditure
Capital expenditures in 3Q07 totaled MXN252.1 million, 53% above
MXN165.1 million recorded in 3Q06, and 36% below MXN394.5
million spent in 2Q07. Year-to-date capital expenditures as of
September 2007 were MXN861.1 million, 48% above MXN583.0 million
invested during the nine-month period ended September 2006.
Cash Position
Maxcom's cash position at the end of 3Q07 was MXN245.8 million
in cash and temporary investments, including MXN15.0 million in
restricted cash, compared to MXN183.0 million at the end of
3Q06, which included MXN11.0 million in restricted cash. Cash
and temporary investments at the end of 2Q07 were MXN157.9
million, including MXN2.7 million in restricted cash.
Financing
On July 18, 2007, the company obtained an unsecured credit
facility of MXN70.0 million from IXE Banco, S.A., which is
renewable on a monthly basis. The monthly payable interest rate
is estimated using EIIR plus 2.4 percentage points. This
unsecured credit was paid on September 6, 2007. Proceeds were
for working capital.
On Aug. 2, 2007 the company obtained a long-term credit facility
of MXN107.0 million for 5 years from Banco Mercantil del Norte,
S.A. The monthly payable interest rate on this facility is
estimated using EIIR plus 2.0 percentage points. Proceeds were
used to pay our paid TV infrastructure.
On Sept. 5, 2007, Maxcom executed a supplemental offering of its
debt instruments denominated "Senior Secured Notes" in
compliance with Rule 144A and Regulation S of the Securities Act
of 1933, in the amount of US$25,000,000.00. Proceeds were used
for capital expenditures.
Subsequent Events
On Oct. 19, 2007, the company made its global initial public
offering of 14,141,516 American Depositary Shares (ADSs) in the
United States and 19,515,152 Ordinary Participation Certificates
(CPOs) in Mexico (in both cases including the primary and
secondary portions as well as the exercise of the over
allotment). Approximately 14% of the ADSs and the CPOs were
sold by existing Maxcom shareholders. Each ADS represents seven
CPOs, while each CPO represents three Series "A" common shares.
After giving effect to this offering, the company has
789,818,829 Series "A" shares outstanding, and 835,171,473 on a
fully diluted basis.
The ADSs, trading under symbol "MXT" on the New York Stock
Exchange, were initially priced at US$17.50 per ADS. The CPOs,
trading under symbol "MAXCOM CPO" in the Mexican Stock Exchange,
were initially priced at MXN27.10. The over-allotment option was
fully exercised for both the ADSs and CPOs. Maxcom's initial
public offering resulted in gross proceeds of approximately
US$253.8 million.
Morgan Stanley & Co. Incorporated was the sole book-runner and
global coordinator for the initial public offering, while IXE
Casa de Bolsa, S.A. de C.V., IXE Grupo Financiero was the
Mexican lead underwriter for the Mexican tranche of the
offering.
About Maxcom
Headquartered in Mexico City, Mexico, Maxcom Telecomunicaciones,
SA de CV, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory. Maxcom Telecomunicaciones
launched commercial operations in May 1999 and is currently
offering Local, Long Distance and Internet & Data services in
greater metropolitan Mexico City, Puebla and Queretaro.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 29, 2006, Standard & Poor's Ratings Services assigned its
'B' long-term corporate credit rating to Mexico City-based
Maxcom Telecomunicaciones SA de CV.
As reported on Oct. 16, 2007, Standard & Poor's revised its
outlook to positive from stable on Maxcom Telecomunicaciones.
MOVIE GALLERY: Wants to Approve De Minimis Asset Sale Procedures
----------------------------------------------------------------
Movie Gallery, Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Eastern District of Virginia to approve
procedures for the expedited sale of de minimis assets.
The Debtors are currently in possession of certain assets of
insignificant or otherwise minimal value. The Debtors further
anticipate that throughout their Chapter 11 cases, additional
property will be rendered obsolete, unnecessary or burdensome as
a result of operational restructuring initiatives, including
potential lease rejections.
The Debtors expect that they will continue to identify assets of
relatively insignificant or otherwise minimal value, including
owned real property, that are or may become unnecessary to their
future operations. The number of De Minimis Assets will
undoubtedly increase as the Debtors continue to reorganize.
The Debtors have routinely sold or disposed of De Minimis Assets
in the ordinary course of business prior to the Petition Date.
The Debtors also seek authority to abandon De Minimis Assets
under Section 554 of the Bankruptcy Code if they determine in
their sound business judgment that such an abandonment would be
in the best interest of their estates.
The Debtors contend that the proposed Procedures will reduce
administrative expenses that might otherwise eliminate value
available from De Minimis Assets, if any, and facilitate the
Debtors' swift reorganization.
For De Minimis Asset Sales that would realize net proceeds
between US$250,000 and US$1,000,000, the Debtors will serve
parties-in-interest sufficient notice of any potential sale to
give the interested parties an opportunity to object.
For De Minimis Asset Sales that would realize proceeds less than
or equal to US$250,000, the Debtors seek permission to
consummate the transaction without further notice or Court
order.
A full-text copy of the proposed De Minimis Asset Sale and
Abandonment Procedures is available for free at:
http://researcharchives.com/t/s?24aa
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 Kurtzman Carson Consultants
LLC. The U.S. Trustee for Region 4 appointed an Official
Committee of Unsecured Creditors in the Debtors' bankruptcy
proceedings on October 18.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000. (Movie Gallery Bankruptcy News, Issue
No. 6; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Wants to Reject 70 Unexpired Store Leases
--------------------------------------------------------
Movie Gallery, Inc. and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Eastern District of
Virginia to reject 70 unexpired leases and subleases for various
store premises.
The Debtors lease or sublease store premises from numerous
lessors. The terms of the leases range from one month to two
years. Generally, the lease payments for the leases range from
US$28,400 to US$304,250 per year.
The Debtors either have ceased or are in the process of ceasing
operations at a number of store locations as part of their
restructuring efforts.
In considering their options with respect to the leases prior
to, and after, the date of bankruptcy filing, the Debtors
evaluated the possibility of assigning the leases or subleases,
or subleasing certain store locations. The Debtors have
determined that the transactional costs and postpetition
occupancy costs associated with marketing the leases exceed any
marginal benefit received from potential assignments or
subleases.
In addition to their obligation to pay rent under the leases,
the Debtors also are obligated to pay for associated real estate
taxes, utilities, insurance and other charges.
The Debtors have examined the costs associated with their
obligation to pay rent under the Vacant Store Leases and
estimate that the annual net cost to the Debtors is roughly
US$8,100,000 per year. The Debtors have determined in their
business judgment that those costs, with the concomitant costs
of operating the locations, constitute an unnecessary drain on
their resources.
The Debtors believe that the rejection of the leases is in the
best interests of the Debtors, their estates and their
creditors.
A schedule of the leases to be rejected and the proposed
effective rejection dates is available for free at:
http://researcharchives.com/t/s?24a8
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 Kurtzman Carson Consultants
LLC. The U.S. Trustee for Region 4 appointed an Official
Committee of Unsecured Creditors in the Debtors' bankruptcy
proceedings on October 18.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000. (Movie Gallery Bankruptcy News, Issue No.
6; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
WILLIAMS SCOTSMAN: S&P Withdraws BB- Long-Term Corporate Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services has removed its 'BB-' long-
term corporate credit and other ratings on Williams Scotsman
Inc. from CreditWatch with developing implications and withdrew
all ratings on the company. The rating action follows Williams
Scotsman's Oct. 31, 2007 merger with Ristretto Acquisition
Corp., a wholly owned subsidiary of unrated Ristretto Group
S.a.r.l. Williams Scotsman International Inc. will be the
surviving corporation.
Ratings were withdrawn upon the redemption of Williams
Scotsman's outstanding rated debt in conjunction with the
merger.
Headquartered in Baltimore, Maryland, Williams Scotsman
International, Inc. (NASDAQ:WLSC) the parent company of Williams
Scotsman, Inc., provides mobile and modular space solutions for
the construction, education, commercial, healthcare and
government markets. The company serves over 25,000 customers,
operating a fleet of over 100,000 modular space and storage
units that are leased through a network of 86 locations
throughout North America. Williams Scotsman provides delivery,
installation, and other services, and sells new and used mobile
office products. Williams Scotsman also manages large modular
building projects from concept to completion. Williams Scotsman
has operations in the United States, Canada, Mexico, and Spain.
U.S. STEEL: Acquires & Renames Stelco as U.S. Steel Canada Inc.
---------------------------------------------------------------
United States Steel Corporation has completed the acquisition of
Stelco Inc. and has renamed the company as U.S. Steel Canada
Inc.
Commenting on the acquisition, U. S. Steel Chairman and Chief
Executive Officer John Surma said, "We welcome the customers,
employees and communities of Stelco to the U. S. Steel family.
This acquisition expands the footprint of our North American
flat-rolled operations with facilities on both sides of the
Great Lakes to better respond to customer needs, including the
ability to process U. S. Steel Canada slabs at other U. S. Steel
facilities."
In this transaction, each share of Stelco common stock has been
converted into the right to receive CAD38.50 per share, and
warrants to acquire Stelco common stock have been converted into
the right to receive CAD27.50. CIBC Mellon Trust Company has
been appointed Depositary for both common stock and warrants.
Holders of common stock and warrants should submit certificates
for their common stock and warrants together with the required
letter of transmittal to the Depositary. Questions can be
directed to the Depositary at (800) 387-0825.
U. S. Steel has financed the acquisition cost of approximately
US$1.2 billion and the refinancing of approximately US$750
million of existing Stelco debt through a combination of cash on
hand, borrowings under a US$500 million three-year term loan and
a US$400 million one-year term loan, and US$400 million of sales
under a receivables purchase agreement that expires in 2010.
In addition, U. S. Steel named the management team for U. S.
Steel Canada. Douglas R. Matthews has been named president and
general manager-U. S. Steel Canada; William C. Harrison has been
named vice president and chief financial officer -- U. S. Steel
Canada; Charles J. Shuster has been named director-human
resources, U. S. Steel Canada; Scott D. Buckiso has been named
plant manager-Lake Erie Works; and Bryan P. Vaughn has been
named plant manager-Hamilton Works. The changes are effective
immediately.
"The leadership team that will oversee U. S. Steel Canada is
composed of individuals with strong, diverse backgrounds
acquired during years of service at U. S. Steel facilities in
the United States and Central Europe," said Mr. Surma. "Their
experience, coupled with the talents and expertise of the
employees they will work side-by-side with, will help ensure a
smooth transition for the operations and the customers they
serve."
Mr. Matthews arrives in Canada from U. S. Steel Serbia, an
integrated steelmaking operation with annual raw steel
production capability of 2.4 million net tons. As vice
president and general director of U. S. Steel Serbia since May
2006, he has been responsible for overseeing all activities at
facilities in Smederevo, Sabac and Kucevo. Mr. Harrison has
spent the last four years serving as controller at Great Lakes
Works near Detroit, Michigan. Mr. Shuster was recently promoted
to manager of employee relations for Mon Valley Works, which has
facilities near Pittsburgh and Philadelphia, Pennsylvania, after
spending nearly one and a half years in the same role at Great
Lakes Works. Mr. Buckiso has acted as general manager finishing
at U. S. Steel Serbia's Smederevo location since September 2006.
Mr. Vaughn has served as plant manager for the Irvin Plant and
Fairless Plant, Mon Valley Works' finishing facilities located
just outside Pittsburgh and Philadelphia, Pennsylvania,
respectively, since June 2006.
Additional Biographical Information on U. S. Steel Canada
Management Team
Douglas R. Matthews
Douglas R. Matthews, a native of Uniontown, Pennsylvania, joined
U. S. Steel in 1988 as a management associate at the Edgar
Thomson Plant, Mon Valley Works' steelmaking facility near
Pittsburgh, Pennsylvania. He progressed through increasingly
responsible management roles in electrical and caster
maintenance at the Edgar Thomson Plant and the coating
operations at Mon Valley Works' Irvin Plant, a Pittsburgh-area
rolling and finishing facility, before being transferred to PRO-
TEC Coating Company, U. S. Steel's joint venture with Kobe Steel
of Japan located in Leipsic, Ohio, in 1997 to manage the
installation and commissioning of the facility's second
continuous galvanizing line.
From 1998 to 2003, he oversaw iron production at the former
USS/KOBE steelmaking venture in Lorain, Ohio, and at Gary Works
in Gary, Indiana, respectively. He was named division manager
of steelmaking and casting at Gary Works in 2003 and was
promoted to general manager of blast furnace engineering and
technology at the company's Pittsburgh headquarters in 2005. He
was appointed to his most recent position, vice president and
general director of U. S. Steel Serbia, d.o.o., in May 2006.
Mr. Matthews graduated from Pennsylvania State University in
1987 with a bachelor's degree in electrical engineering and
received a master's degree in business administration from
Duquesne University in 1993.
He and his wife, Kimberly, and their two children will relocate
from Serbia to southern Ontario.
William C. Harrison
William C. Harrison started his U. S. Steel career in 1973 as an
inventory control clerk at Mon Valley Works' Irvin Plant near
Pittsburgh. He was accepted into the company's management
training program in 1976 and was assigned to the financial
organization of the former American Bridge Division, where he
steadily advanced through supervisory roles. From 1985 through
1994, Mr. Harrison served as an administrator in USS Real Estate
at corporate headquarters in Pittsburgh and then advanced
through increasingly responsible positions in the plant
accounting department at Mon Valley Works' Fairless Plant near
Philadelphia, Pennsylvania. In 1994, he transferred to Gary
Works in Gary, Indiana, where he spent the next nine years
acting as financial analysis manager and then accounting
services manager. He was promoted to his most recent position,
controller of Great Lakes Works near Detroit, Michigan, in 2003.
Mr. Harrison is a native of Montoursville, Pennsylvania, and
attended Indiana University of Pennsylvania, where he earned a
bachelor's degree in business administration in 1971. He is a
Certified Management Accountant.
Mr. Harrison and his wife, Diane, will reside in southern
Ontario.
Charles (Gus) J. Shuster
Charles (Gus) J. Shuster joined U. S. Steel in 1997 as a
supervisor in the labor relations and productivity improvement
department at Clairton Works, Mon Valley Works' coke making
facility near Pittsburgh, Pennsylvania. Mr. Shuster advanced
through positions in employee and labor relations at Gary Works'
East Chicago Tin in East Chicago, Indiana, and Great Lakes Works
outside Detroit, Michigan, before being named Great Lakes Works'
manager of employee relations in 2005. Mr. Shuster returned to
Pittsburgh in 2007 after being promoted to manager of employee
relations for the entire Mon Valley Works, which includes
Clairton Works, the Edgar Thomson Plant and the Irvin Plant
outside Pittsburgh, and the Fairless Plant near Philadelphia.
Mr. Shuster, a native of Falls Church, Virginia, earned a
Bachelor of Science degree in civil engineering from the
Virginia Military Institute in 1988. After graduating from VMI,
he served five years as an officer in the United States Marine
Corps.
Mr. Shuster plans to live in southern Ontario.
Scott D. Buckiso
Scott D. Buckiso joined U. S. Steel in 1990 as a management
associate at Mon Valley Works' Irvin Plant, a rolling and
finishing facility near his native Pittsburgh, Pennsylvania.
Over the next 13 years, he was promoted through a series of
increasingly responsible positions in finishing operations at
the Irvin Plant, as well as casting at the Edgar Thomson Plant,
Mon Valley Works' iron and steel making operation outside
Pittsburgh.
In 2003, Mr. Buckiso was named senior area manager of finishing
at Great Lakes Works just outside Detroit, Michigan. One year
later, he advanced to division manager of rolling, and in 2005,
he added oversight of Great Lakes Works' finishing operations to
his area of responsibility. Mr. Buckiso began his most recent
assignment, general manager of finishing at U. S. Steel Serbia's
Smederevo facility, in September 2006.
Mr. Buckiso is a 1990 graduate of the University of Maryland
with a degree in Communication and Speech.
He and his wife, Donna, and their two children will move to
souther Ontario.
Bryan P. Vaughn
Bryan P. Vaughn, a native of Denver, Colorado, began his U. S.
Steel career in 1981 as a management associate at the company's
former Geneva Works in Utah. From 1981 through 1995, he
advanced through increasingly responsible positions in
steelmaking at Geneva Works, purchasing at corporate
headquarters in Pittsburgh, Pennsylvania., and casting at Mon
Valley Works' Edgar Thomson Plant outside Pittsburgh. After
working at U. S. Steel's Research and Technology Center near
Pittsburgh as a research consultant, Mr. Vaughn was transferred
to Gary Works, U. S. Steel's largest U.S. facility, in 1997 to
serve as division manager-steel production and casting, south.
Three years later, he was promoted to the same position for
north steel production and casting, and in 2003, he advanced to
division manager of sheet products. He was promoted to his most
recent position, plant manager of Mon Valley Works' Irvin Plant,
in June 2006 and was responsible for overseeing all rolling and
finishing operations at the suburban Pittsburgh facility as well
as the galvanizing line at the Fairless Plant near Philadelphia,
Pennsylvania.
Mr. Vaughn graduated from Colorado School of Mines in 1980 with
a Bachelor of Science degree in metallurgical engineering. He
earned a master's degree in business administration at the
University of Utah in 1991.
He and his wife, Sandy, will make their home in southern
Ontario.
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.
U.S. STEEL: Earns US$269 Million in Quarter Ended Sept. 30
----------------------------------------------------------
United States Steel Corporation reported net income of
US$269 million and net sales of US$4.35 billion for the third
quarter ended Sept. 30, 2007, compared to second quarter 2007
net income of US$302 million and net sales of US$4.23 billion,
and third quarter 2006 net income of US$417 million and net
sales of US$4.11 billion.
Commenting on results, U. S. Steel chairman and chief executive
officer John P. Surma said, "We had a good quarter as each of
our segments effectively responded to diverse challenges,
including general economic concerns that affected our major
markets. We made good progress in implementing a unified
business model for our Tubular segment and are realizing
synergies from the Lone Star acquisition."
The company reported third quarter 2007 income from operations
of US$360 million, compared with income from operations of
US$391 million in the second quarter of 2007 and US$561 million
in the third quarter of 2006.
Other items not allocated to segments in the third quarter of
2007 consisted of a US$27 million pre-tax charge related to
inventory acquired in the Lone Star acquisition. The tax
provision included several discrete charges totaling US$11
million. These charges and the item not allocated to segments
reduced third quarter 2007 net income by US$28 million. In the
second quarter of 2007, net interest and other financial costs
included a US$23 million pre-tax charge related to the early
redemption of the company's 9.75% Senior Notes due 2010. This
charge reduced net income by US$14 million. Other items not
allocated to segments in the third quarter of 2006 reduced net
income by US$21 million, and consisted of employee severance and
benefit charges for a workforce reduction of over 20% at the
company's Serbian operations.
The company repurchased 285,000 shares of common stock for
US$28 million during the third quarter.
At Sept. 30, 2007, the company's consolidated balance sheet
showed US$13.31 billion in total assets, US$7.96 billion in
total liabilities, and US$5.35 billion in total shareholders'
equity.
Full-text copies of the company's consolidated financial
statements for the quarter ended Sept. 30, 2007, are available
for free at http://researcharchives.com/t/s?24a7
Outlook
Commenting on U. S. Steel's outlook, Surma said, "We expect a
decline in overall results for the fourth quarter mainly due to
normal seasonal effects and several scheduled blast furnace
outages. North American flat-rolled inventories and imports are
at relatively low levels and over time the weaker U.S. currency
should favor many of our steel-consuming customers. In Europe,
steel consumption remains healthy; however, high imports,
particularly from China, and high service center inventories are
resulting in some pressure on spot prices and order rates."
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, Ind.; Great
Lakes Works in Ecorse and River Rouge, Mich.; Mon Valley Works,
which includes the Edgar Thomson and Irvin plants, near
Pittsburgh and Fairless Works near Philadelphia, Pa.; Granite
City Works in Granite City, Ill.; Fairfield Works near
Birmingham, Ala.; Midwest Plant in Portage, Ind.; and East
Chicago Tin in East Chicago, Ind. The company also operates two
seamless tubular mills, Lorain Tubular Operations in Lorain,
Ohio; and Fairfield Tubular Operations near Birmingham, Ala.
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 A N A M A
===========
CLOROX COMPANY: Acquiring Burt's Bees for US$925 Million
--------------------------------------------------------
The Clorox Company, as part of its strategy to grow in and
beyond its core in fast-growing, higher-margin consumer-product
categories, will acquire Burt's Bees, a leader in the natural
personal care category.
The highly fragmented U.S. natural personal care market
represents about US$6.4 billion in sales and is currently
growing at about 9% annually. Founded in 1984, the Burt's
Bees(R) brand today is regarded among many consumers who
purchase natural personal care products as the "most natural"
personal care brand and as the leading natural brand in the U.S.
The acquisition of Burt's Bees is strongly aligned with Clorox's
Centennial Strategy to pursue growth in areas aligned with
consumer "megatrends" in health and wellness, sustainability,
convenience and a more multicultural marketplace.
"This acquisition allows us to enter a growing market that's
consistent with consumer megatrends," said Clorox Chairman and
CEO Donald R. Knauss. "With this transaction, we're entering
into a new strategic phase for our company, enabling us to
expand further into the natural/sustainable business platform.
The Burt's Bees(R) brand is well-anchored in sustainability and
health and wellness, and we believe it will benefit from natural
and "green" tailwinds. It's in an economically attractive
category with a margin structure that will be highly accretive
to Clorox. Combined with our new Green Works(TM) line of
natural cleaning products, and Brita(R) water-filtration
products, we can leverage Burt's Bees' extensive capabilities
and credibility to build a robust, higher-growth platform for
Clorox."
Beth Springer, Clorox's executive vice president - Strategy &
Growth, who will oversee the business, said, "Burt's Bees is a
compelling strategic fit for us, and we believe we can expand on
its strong trends over time to build even greater value. Burt's
Bees has a highly effective strategy and plan, strong trade
practices and organizational capabilities, and a robust culture
and esprit de corps that we want to leverage and protect. We
strongly believe Clorox's deep capabilities to drive demand
creation through consumer communication and value-creating
customer capabilities, coupled with Burt's Bees' strong heritage
of innovation to delight consumers, create a right to win.
We're delighted Burt's Bees president and CEO, John Replogle,
will continue to lead the company, which will continue to be
based in North Carolina."
"I'm delighted we're entering into this partnership with Clorox
and that I will be part of this exciting next step for Burt's
Bees," said Mr. Replogle. "The Clorox Company and Burt's Bees
have complementary values, visions and strengths. Together, I
believe Clorox and Burt's Bees can help this business realize
its full potential."
"Burt's Bees' mission 'we make people's lives better every day -
naturally' is a terrific complement to Clorox's mission 'we make
everyday life better, every day,'" Ms. Springer said. "Burt's
Bees' values align strongly with Clorox's and provide a solid
foundation for working together and creating synergies between
our management teams."
Terms Of Deal & Financial Impact
Under the terms of the agreement, Clorox will acquire 100% of
Burt's Bees from its stockholders in a transaction that is
structured as a merger. The company is acquiring Burt's Bees
for US$925 million net of an additional US$25 million payment
for anticipated tax benefits. Clorox will fund the all-cash
transaction through a combination of cash and short-term
borrowings. The transaction, which is expected to close by the
end of this calendar year, is subject to regulatory approval.
Commenting on the transaction, Clorox senior vice president and
CFO Dan Heinrich said, "Burt's Bees is poised to capitalize on
expanded distribution within the U.S. and other countries in
which the Burt's Bees(R) brand is currently marketed. The
business is enjoying strong distribution trends. We believe we
can add value and expand these trends over time through our
strong customer capabilities, while maintaining Burt's Bees'
higher margins. We see potential for expanding the brand into
adjacencies, and we believe international expansion may offer
significant upside potential beyond our valuation."
Based on its current growth trajectory and estimated 2007 net
customer sales of about US$170 million, Burt's Bees is
anticipated to add nearly 2 points of top-line growth to Clorox
in fiscal years 2008 and 2009.
Including estimates of purchase-accounting adjustments and one-
time transaction and integration costs related to the
transaction, the company anticipates that the transaction will
dilute its fiscal year 2008 earnings by about 10-15 cents per
diluted share and that it will be slightly accretive in fiscal
year 2009. Excluding such purchase-accounting adjustments, one-
time transaction and integration costs as well as non-cash
expenses related to the transaction, the earnings per share
impact is anticipated to be neutral in fiscal year 2008 and
solidly accretive in fiscal year 2009.
Lehman Brothers acted as sole financial advisor to The Clorox
Company. Goldman Sachs was financial advisor to Burt's Bees.
About Burt's Bees
Burt's Bees is a leading manufacturer of earth-friendly natural
personal care products. The company manufactures more than 150
products in categories such as lip care, face care, body care,
hair care, men's grooming, baby care and outdoor remedies.
Burt's Bees(R) products are carried in nearly 30,000 retail
outlets, including major grocery and drug store chains in the
U.S., United Kingdom, Ireland, Canada, Hong Kong and Taiwan.
About Clorox Company
Headquartered in Oakland, California, The Clorox Company
(NYSE: CLX) -- http://www.thecloroxcompany.com/-- provides
household cleaning products and reaches beyond bleach. Although
best known for bleach (leader worldwide), Clorox makes laundry
and cleaning items (Formula 409, Pine-Sol, Tilex), cat litter
(Fresh Step), car care products (Armor All, STP), the Brita
water-filtration system (in North America), and charcoal
briquettes (Kingsford).
In Latin America, Clorox has manufacturing facilities in Costa
Rica, Dominican Republic, Panama, Peru and Colombia, among
others.
At Dec. 31, 2006, Clorox's balance sheet showed total assets of
US$3,624 million and total liabilities of US$3,657 million
resulting in a stockholders' deficit of US$33 million. The
company reported a stockholders' deficit of US$156 million at
June 30, 2006.
* PANAMA: World Bank Grants Up to US$465-Mil. Partnership Funds
---------------------------------------------------------------
The World Bank Group's Board of Directors has approved a Country
Partnership Strategy for Panama, the institution's formal
agreement with the Government for 2008 to 2010, which includes a
lending envelop of US$390 to US$465 million. The new strategy
was discussed by the Board as the Bank plans to open the new
office in Panama City Nov. 1, 2007.
"The World Bank is delighted that the new country partnership
strategy is moving forward at the same time as we are opening a
new office in Panama City," explained Jane Armitage, World Bank
Country Director for Central America. "Our aim is to be closer
to our clients, and work closely with other development partners
to ensure the success of the new program," she added.
New financing would be split mainly between Development Policy
Lending and seven new poverty-focused investment projects.
The new strategy aims to provide selective, demand driven
assistance that deepens the Panama-Bank partnership and helps
the Government achieve its poverty and inequality reduction
goals. The CPS supports four objectives which are aligned with
the pillars and goals of Panama's 2004-2009 Strategic Vision,
including:
-- Reducing poverty and inequality among rural the poor,
especial among indigenous groups, through rural
development programs and conditional cash transfer
programs such as Red de Oportunidades which targets the
country's poorest people to break the generational poverty
cycle;
-- Promoting economic growth and employment by helping to
reduce the costs of doing business and improving
competition through streamlined procedures, for example;
-- Assist the government to modernize systems and
institutions by helping the government improve its
financial management systems, for example; and,
-- Improving education, health and nutrition attainment for
poor people through an integrated package of basic
services.
"On this occasion I would like to express my sincere gratitude
for the Bank's decision to open an office in Panama," said
Hector E. Alexander H., Minister for Economy and Finance of
Panama earlier this month upon the announcement of the new Bank
office in Panama. "The announcement is seen as a reflection of
the good relationship between the World Bank and Panama in
recent years. We look forward to the opportunity to receive Mr.
de Dinechin as Country Representative, whom we have known for
his excellent performance," added Minister Alexander.
"The new strategy is designed to track specific milestones and
outcomes that assess the impact of Bank-financed operations,"
said Frederic de Dinechin new Country Representative for Panama.
"I very much look forward to working closely with the Government
and various stakeholders to move the strategy forward over the
next few years," Mr. de Dinechin added.
The International Finance Corporation, the World Bank's private
sector arm, will continue to focus on financial and
infrastructure sectors.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2006, Fitch Ratings affirmed the Republic of Panama's
long-term foreign currency Issuer Default Rating of 'BB+'.
Fitch also affirmed the sovereign's long-term local currency IDR
of 'BB+', the short-term foreign currency IDR of 'B' and the
country ceiling of 'BBB+'. Fitch said the rating outlook is
stable.
=======
P E R U
=======
HARMONY GOLD: Fitch Affirms Issuer Default Rating at BB+
--------------------------------------------------------
Fitch Ratings has affirmed Harmony Gold Mining Company Ltd's
ratings at Long-term Issuer Default Rating 'BB+' and Short-term
IDR 'B', and its South African National ratings at Long-term
'BBB(zaf)' and Short-term 'F3(zaf)'. Harmony's ratings have
been removed from Rating Watch and have been assigned a Negative
Outlook.
The ratings were put on Rating Watch Negative on Aug. 6, 2007
immediately following the trading update announcing losses for
the June 2007 quarter (Q407), and the resignation of Harmony's
then Chief Executive Officer. The removal of the Rating Watch
comes on the back of renewed management stability and realism at
Harmony, with the internal appointment of an acting-CEO and the
appointment of an interim financial director, as well as a
degree of stabilisation reflected in the latest quarterly
results for the three months to Sept. 30, 2007 (Q108).
The affirmation reflects Fitch's expectation of ongoing
improvements in earnings, operating and free cash flow
generation, production volume increases and significant
improvements in working cost per kilogram over the coming years.
In addition, Harmony's current high levels of capital
expenditure are expected to decline materially after the
2007/2008 financial year, also supporting an improvement in
expected free cash flow generation.
The negative outlook in part reflects the expectation that
results for Q208 are likely to be adversely impacted by the
suspension of operations at Elandsrand in early October 2007.
The mine is expected to recommence operations on Nov. 19, 2007,
but will have lost about 1,000kg of production during the
closure period. In addition, Harmony's expected international
bond issue was abandoned in August 2007, and the group has
subsequently secured a bank facility of ZAR2 billion, which is
available to December 2008 pending a reappraisal of a longer
term funding programme in 2008. The current ratings also
reflect this refinance risk.
A number of initiatives are in the pipeline at present, which
afford the prospect of additional cash inflows, mainly the
pending disposal of the Australian operations early in 2008, a
strategy relating to the uranium interests and a possible
partnership in Papua New Guinea. While these are considered by
Fitch to be positive initiatives, Fitch will remain cautious
until there is some clarity or finality, presumably during the
course of the second half of FY08, bolstered by improved
financial results, particularly in the March 2008 and June 2008
quarterlies.
The September quarterlies report a cash operating profit of
ZAR411 million (an increase from ZAR34 million at the end of
Q407). The bottom line shows a net loss of ZAR577 million
(ZAR653 million in the previous quarter), although this includes
a ZAR459 million non-recurring loss from the sale of Gold Fields
shares, and a ZAR92 million loss from discontinued operations
(mainly relating to Australian disposals). The headline loss
for the quarter was ZAR176 million (ZAR531 million for Q407).
Gold production was up 12.8% in the quarter, and cash operating
costs were brought down by 12.5%.
Harmony Gold Mining Company Limited and its subsidiaries and
associates conduct underground and surface gold mining and
related activities, including exploration, processing, smelting,
refining and beneficiation. Harmony's principal mining
operations are located in South Africa and Australia, with
exploration and evaluation programmes in Papua New Guinea and
Peru. During the fiscal year ended June 30, 2006, Harmony
produced 2.4 million ounces of gold, predominantly from its
operations in South Africa. Harmony also owns gold ore
resources, with mineral resources of 537.6 million ounces in
fiscal 2006. In June 2006, the company acquired 37.8% of the
issued share capital of Village Main Reef Gold Mining Company
Limited.
=====================
P U E R T O R I C O
=====================
ADVANCE AUTO: Third Qtr. Net Income Rises to US$59 Mil. in 2007
---------------------------------------------------------------
Advance Auto Parts Inc. has reported US$59 million of net income
on US$1.1 million of net sales for the three months ended
Oct. 6, 2007, compared to US$58.9 million of net income on US$1
million of net sales for the same period in 2006.
"We are pleased to report that we are on track with the
initiatives that we announced at the end of our last quarter.
Although we anticipate it will take time, we believe the results
of those initiatives are beginning to have a positive impact on
our sales, earnings, and return on invested capital," said Jack
Brouillard, Chairman, President and Chief Executive Officer.
Third quarter gross margin was 47.9% of sales, a 28 basis point
decrease compared to last year. The decrease was primarily due
to a less favorable merchandise sales mix as compared to last
year. In addition, fewer discounts were earned as merchandise
purchases were less than year ago levels and the Company had a
greater proportion of commercial sales.
Third quarter selling, general and administrative expenses were
39.3% of sales compared to 38.9% last year. Excluding severance
and asset write-off costs, SG&A expenses were 38.7%, a decrease
of 18 basis points as compared to last year.
Year to date sales increased to US$3.80 billion from US$3.60
billion last year. Year to date comparable-store sales
increased 1.2% comprised of a 0.4% decrease in do-it-yourself
and a 6.2% increase in do-it-for-me. The year to date 1.2%
comparable-store sales increase compares to a 2.3% increase last
year.
Year to date earnings per diluted share were US$1.92, compared
to US$1.82 last year. Year to date gross margin was 48.1% of
sales, a 29 basis point improvement from last year. Year to
date SG&A expenses were 38.8% of sales as compared to 38.4% in
2006, a 41 basis point increase.
Share Repurchases
In the third quarter, the company repurchased 6.2 million shares
at an average price of US$33.26 for a total of US$207 million.
The company currently has US$335 million available under the
share repurchase authorization approved by the Board of
Directors in August 2007.
Store Information
During the third quarter, the company opened 43 new stores, of
which 4 are Autopart International stores. The company also
relocated 5 stores and closed 2 stores.
Year to date, the company has opened 156 new stores, of which 17
are AI stores. The company has also relocated 24 stores and
closed 10 stores.
2007 Guidance
The company forecasts fourth quarter earnings per share in the
range of US$.36 to US$.40 as compared to US$.33 last year, an
increase of 9% to 21%. This guidance is based on comparable
store sales growth of 0 to 2%. Gross margin is expected to be
in line with fourth quarter last year. SG&A expenses are
expected to leverage within the 0 to 2% sales guidance.
The company anticipates full year 2007 earnings per diluted
share to be in the range of US$2.28 to US$2.32. Excluding the
severance costs and asset write-offs of US$.04 per share
incurred in the third quarter, earnings per diluted share for
the year are expected to be US$2.32 to US$2.36 as compared to
US$2.16 last year, an increase of 7% to 9%. The Company expects
free cash flow for the year to be in the range of US$200 to
US$220 million.
About Advance Auto
Headquartered in Roanoke, Va., Advance Auto Parts (NYSE: AAP)
-- http://www.advanceautoparts.com/-- is the second-largest
retailer of automotive aftermarket parts, accessories,
batteries, and maintenance items in the United States, based on
store count and sales. As of April 22, 2006, the Company
operated 2,927 stores in 40 states, Puerto Rico, and the Virgin
Islands. The Company serves both the do-it-yourself and
professional installer markets.
* * *
As reported in the Troubled Company Reporter on April 3, 2007,
Standard & Poor's Ratings Services revised its outlook on auto
parts retailer Advance Auto Parts Inc. to stable from positive,
reflecting soft same-store sales growth and a retrenchment in
capital spending that may slow progress. All ratings on
the company, including the 'BB+' corporate credit rating, were
affirmed.
As reported in the Troubled Company Reporter on Jan. 3, 2007,
Moody's Investors Service downgraded the speculative grade
liquidity rating of Advance Auto Parts, Inc. to SGL-2 from
SGL-1, affirmed its Ba1 corporate family rating, and upgraded
its probability of default rating to Ba1 from Ba2. Moody's says
the outlook on its long-term ratings remains positive.
DEVELOPERS DIVERSIFIED: Earns US$32.7 Mln in Qtr. Ended Sept. 30
----------------------------------------------------------------
Developers Diversified Realty Corporation reported operating
results for the third quarter ended Sept. 30, 2007.
The company reported net income available to common shareholders
of US$32.7 million on revenues of US$234.1 million for the three
months ended Sept. 30, 2007, as compared to US$49.0 million on
revenues of US$194.2 million for the prior-year comparable
period.
For the three months ended Sept. 30, 2007, Funds from Operations
available to common shareholders was US$99.5 million, as
compared to US$91.7 million for the three months ended Sept. 30,
2006, an increase of 8.5%.
Scott Wolstein, DDR's chairman and chief executive officer,
stated, "We are pleased to announce this quarter's financial
results, which reflect the consistent growth of our core
portfolio and the implementation of our investment strategy.
Our leasing team completed a record quarter in terms of volume
and rental spreads on new leases, and our development team
continued to identify and execute on attractive investment
opportunities. Furthermore, we have proactively taken steps to
improve the quality of our portfolio through disposition,
development and acquisition and allocate our capital to where we
expect the best returns. These actions have had the
complementary effect of strengthening our balance sheet and
enhancing our liquidity position."
Nine-Month Results
For the nine months ended Sept. 30, 2007, FFO available to
common shareholders was US$365.0 million, as compared to
US$287.7 million for the nine months ended Sept. 30, 2006, an
increase of 26.9%. Net income available to common shareholders
was US$192.9 million for the nine months ended Sept. 30, 2007,
as compared to US$149.9 million for the prior-year comparable
period. The increase in net income for the nine months ended
Sept. 30, 2007, is primarily related to the merger with IRRETI,
the release of certain valuation reserves and an increase in the
gain on sale of assets including those recognized through the
company's merchant building program and promoted income earned
from certain joint ventures. These increases were partially
offset by a non-cash charge relating to the redemption of
preferred shares, certain integration related costs and a charge
relating to the departure of the company's former president.
Common Share Repurchase Program
During the second quarter of 2007, the company's Board of
Directors authorized a common share repurchase program. Under
the terms of the program, the company may purchase up to a
maximum value of US$500 million of its common shares during the
next two years. Through Oct. 25, 2007, the company repurchased
2.2 million of its common shares in open market transactions at
an aggregate cost of approximately US$105.8 million at a
weighted-average price per share of US$48.42.
At Sept. 30, 2007, the company's consolidated balance sheet
showed US$8.91 billion in total assets, US$5.59 billion in total
liabilities, US$115.7 million in minority interests and US$3.21
billion in total shareholders' equity.
About Developers Diversified
Based in Beachwood, Ohio, Developers Diversified Realty
Corp. (NYSE: DDR) -- http://www.ddr.com/-- owns and manages
over 740 retail operating and development properties in 45
states, plus Puerto Rico, Brazil, Russia and Canada, totaling
over 160 million square feet. Developers Diversified Realty is
a self-administered and self-managed real estate investment
trust operating as a fully integrated real estate company which
acquires, develops, leases and manages shopping centers.
* * *
Developers Diversified Realty Corporation continues to carry
Fitch BB+ preferred stock rating. Fitch said the outlook is
stable.
=================================
T R I N I D A D & T O B A G O
=================================
DIGICEL GROUP: Inks Interconnection Agreement with Telecur
----------------------------------------------------------
Digicel has signed an interconnection accord with Suriname
telecom firm Telesur, after several months of negotiations that
started in April 2007 when the Suriname government awarded the
firm an operators license.
"The people of Suriname have today moved a significant step
forward in receiving the first class mobile service that they
deserve," said Digicel Suriname Chief Executive Officer Philip
van Dalsen. "We are delighted to at last sign this interconnect
agreement with Telesur and applaud the commitment of TAS who
fully supervised the discussion during the past week. The
negotiations were tough, but successful. Both parties have
agreed that Digicel Suriname will order and deliver the
necessary equipment needed to prepare the Telesur network to
establish interconnect. Because of our good relationship with
our suppliers, we are confident that the equipment will arrive
in Suriname within a few days so people don't have to wait any
longer."
With the interconnection agreement in place, Digicel's launch in
Suriname is imminent. The next step is to physically connect
the Digicel and Telesur mobile networks with each other after
which a testing period will start. The testing of all
equipment, needed to establish this technical interconnection,
will take approximately 10 days. This testing will ensure that
calls connect properly from one network to another, as well as
checking call quality and the quantity of calls each network can
handle at one time.
Interconnection allows customers to access services and
individuals on the competitors networks and vice versa.
Landline networks need to be interconnected with mobile networks
so that customers on either network can talk to each other.
"Our staff and dealers are very excited that we have achieved
this milestone," Mr. van Dalsen said. "I'm proud to say that
Digicel has the most experienced customer care staff in the
country ready to serve and the most impressive retail stores
ready to open their doors. Digicel is passionate about
providing the best mobile phone service and value to our
customers and we look forward to competing in the Suriname
market place."
With significant investments made in Suriname in building a
state of the art network and operation, Digicel employs close to
150 Surinamese staff and estimates that an additional 1000 jobs
have been created through its dealerships and partners.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- Proposed US$1.4 billion senior subordinated notes
due 2015 assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings is stable.
=================
V E N E Z U E L A
=================
ALCATEL-LUCENT: Announces Management Changes & Forms Committee
--------------------------------------------------------------
Alcatel-Lucent has named Hubert de Pesquidoux as Chief Financial
Officer, replacing Jean-Pascal Beaufret, who is leaving the
company to pursue other opportunities. Mr. de Pesquidoux
currently leads the Enterprise Group of Alcatel-Lucent.
In addition, the company said as part of its plan to improve
profitability it has streamlined its regional structure and
Chief Executive Officer Patricia Russo has established a seven-
member management committee reporting directly to her to lead
the overall operation of the company, creating a more focused
and efficient operating model.
"I want to thank Jean-Pascal for his considerable contributions
to this company. He has been a valuable member of the team.
His experience and dedication to this new company have helped us
through the difficult, early stages of this complex merger while
dealing with a challenging market," Ms. Russo said. "Prior to
the merger, Jean-Pascal served as CFO of Alcatel during much of
this turbulent decade in the industry, ably helping to guide it
while astutely managing the assets and resources of the company
and was instrumental in the financial turnaround of Alcatel. I
wish him success in the next phase of his career."
Jean-Pascal Beaufret will stay with the company for a period of
time to ensure a smooth transition.
"I am looking forward to working with his successor, Hubert, who
has been a key contributor to the success of our Enterprise
business," Ms. Russo said. "Hubert has a great deal of
experience in both operational and financial roles throughout
his career."
Prior to his position as head of the company's Enterprise
activities, Mr. Pesquidoux held several finance positions. He
was Chief Financial Officer of Alcatel North America, Corporate
Treasurer of Alcatel for four years and spent four years in
investment banking, including two years in New York City. He
also has led Alcatel's North America operations and was a member
of the Alcatel Executive Committee. He joined Alcatel in 1991.
Mr. de Pesquidoux's replacement for his current position will be
named at a later date.
Simplifying Management of Regional Structure
To streamline the company's regional operations two regional
structures will be created, one for the Americas and one that
includes Asia Pacific, Europe, Africa and the Middle East.
Frederic Rose, who currently heads the Asia-Pacific Region, will
assume additional responsibilities for the company's current
Europe & North and Europe & South regions. Cindy Christy, will
lead the Americas Region. Frederic Rose and Cindy Christy will
continue to report directly to Ms. Russo.
Olivier Picard, head of the Europe and South region will
continue to oversee the Europe and South region, reporting to
and serving as deputy to Frederic Rose. Christian Reinaudo,
head of the Europe and North region, will be leaving the company
to pursue other opportunities.
"I would like to thank Christian for his outstanding
contribution during the more than 29 years he has been with this
company," Ms. Russo said. "He has held many leadership
positions within the company and was a key driver for our
optical business, having served as president of Alcatel's
optical activities and its submarine unit. He laid the
foundation for the growing success of our Asia-Pacific Region
and has been a critical player in this first stage of our
integration efforts. I wish him even more success in the
future."
Establishes New Management Committee
The role of this committee encompasses the company's strategy,
organization, corporate policy matters, long term financial
planning and human resources strategy. It is charged with
assuring the execution of the company's plans and business
performance.
The management committee will comprise seven business leaders:
Cindy Christy, Americas Region; Etienne Fouques, who oversees
Research, CTO, Strategy and Corporate Marketing; John Meyer,
head of Services; Claire Pedini, head of Corporate Human
Resources and Communications; Hubert de Pesquidoux, CFO; Michel
Rahier, who leads the Carrier Business Group; and Frederic Rose,
Europe, Middle East, Africa and Asia Pacific. Janet Davidson,
Chief Compliance Officer and head of the Integration and IT,
will serve as secretary for the committee.
"This streamlined management structure enables a more efficient,
more focused company with clear lines of accountability," Ms.
Russo said. "I selected every member of this team, not only
because of his or her area of responsibility, but because they
each bring a great deal of experience in this complex and often
difficult industry and have successfully tackled a range of
challenges throughout their careers. I look forward to their
counsel and guidance as we navigate through this next phase of
our merger, taking on the challenges and seizing on the
opportunities ahead."
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 Sept. 19, 2007, that Standard & Poor's Ratings
Services revised its outlook on international equipment supplier
Alcatel-Lucent and related entity Lucent Technologies Inc. to
stable from positive. At the same time, the 'BB-' long-term
corporate credit ratings on the group were affirmed. The 'B'
short-term corporate credit rating on Alcatel-Lucent and 'B-1'
short-term rating on Lucent Technologies were also affirmed.
As reported on April 13, 2007, Fitch Ratings affirmed Alcatel-
Lucent's ratings at Issuer Default 'BB' with a Stable Outlook,
senior unsecured 'BB' and Short-term 'F2' and simultaneously
withdrawn them.
As of Feb. 7, 2007, Moody's Investor Services put a Ba2 rating
on Alcatel's Corporate Family and Senior Debt rating. Lucent
carries Moody's B1 Senior Debt rating and B2 Subordinated debt &
trust preferred rating.
FREEPORT-MCMORAN: Names Richards McMillan as Senior Vice Pres.
--------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. has hired L. Richards
McMillan, II as its Senior Vice President and General Counsel.
Mr. McMillan joins FCX after a 30-year career with the law firm
of Jones, Walker, Waechter, Poitevent, Carrere & Denegre L.L.P.
He has worked with FCX as a senior corporate and securities law
attorney since 1995.
Mr. McMillan received his undergraduate degree at Washington &
Lee University and his Juris Doctorate from Tulane University
Law School. After serving three years in the Navy JAG Corps, he
received a Master of Laws in Taxation from New York University
Law School. Mr. McMillan served as head of Jones Walker's
corporate and securities section and as a member and chairman of
the firm's executive committee.
Mr. McMillan replaces S. David Colton who is retiring after a
20-year career with Phelps Dodge and has served as FCX General
Counsel since the company's March 2007 acquisition of Phelps
Dodge. Mr. Colton should be congratulated for his successful
career and valued contributions.
Richard C. Adkerson, Chief Executive Officer, said: "We are
pleased to welcome Rick McMillan to our executive team. He has
worked with Freeport as outside counsel for over a decade and
has a strong record of accomplishment. He brings a wealth of
experience on legal and business matters and will be a great
asset to our organization."
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) --
http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
As reported in the Troubled Company Reporter-Latin America on
Oct. 1, 2007, Moody's Investors Service revised Freeport-McMoRan
Copper & Gold Inc.'s outlook to positive and affirmed all of its
other ratings. The ratings reflect the overall probability of
default of Freeport, to which Moody's assigns a PDR of Ba2.
Ratings affirmed:
Issuer: Freeport-McMoRan Copper & Gold Inc.
-- Corporate Family Rating: Ba2;
-- Probability of Default Rating: Ba2;
-- US$0.5 billion Senior Secured Revolving Credit
facility, Baa2, LGD1, 2%;
-- US$1.0 billion Senior Secured Revolving Credit
Facility, Baa3, LGD2, 17%;
-- US$2.45 billion Senior Secured Term Loan A, Baa3,
LGD2, 17%;
-- US$339.7 million 6.875% Senior Secured Notes due
2014, Baa3, LGD2, 17%; and
-- US$6 billion Senior Unsecured Notes: Ba3, LGD5, 80%.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2007. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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* * * End of Transmission * * *