/raid1/www/Hosts/bankrupt/TCRLA_Public/071112.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, November 12, 2007, Vol. 8, Issue 224
Headlines
A R G E N T I N A
ALLIANCE ONE: Earns US$18.1 Million in Quarter Ended Sept. 30
BALLY TECHNOLOGIES: Buying Compudigm's Gaming Power & seePOWER
BANCO MACRO: Reports ARS88-Mln Net Income in Qtr. Ended Sept. 30
FERRO CORP: Reports US$5.6-Mln Net Income in Qtr. Ended Sept. 30
EMPRESA DISTRIBUIDORA: Reports ARS69.9MM Net Income for 9 Mos.
B A H A M A S
HARRAH'S ENTERTAINMENT: Earns US$244.4 Million in Third Quarter
HARRAH'S ENTERTAINMENT: Indiana Gaming Agency OKs Apollo Merger
B E R M U D A
JETBLUE AIRWAYS: Ed Barnes Replaces John Harvey as Interim CFO
B R A Z I L
BANCO NACIONAL: Funding 80% of Santo Antonio Plant Through Loans
COMPANHIA ENERGETICA: Bidding in Santo Antonio Plant Auction
COMPANHIA ENERGETICA: Earns BRL1.47 Billion in First Nine Months
COMPANHIA PARANAENSE: Will Focus on Generation Projects
FORD MOTOR: Posts US$380-Million Loss for Third Quarter 2007
FORD MOTOR CREDIT: Earns US$334 Million in Third Quarter
GENERAL MOTORS: Credit Suisse Maintains Neutral Rating on Firm
GENERAL MOTORS: Posts US$39 Billion Net Loss in Third Quarter
GEOKINETICS INC: Closes US$25MM Capital Lease Facility with CIT
IWT TESORO: Court Approves Donlin Recano as Claims Agent
IWT TESORO: Brings In Rader & Coleman as Special Counsel
IWT TESORO: Hires Rattet Pasternak as Bankruptcy Counsel
MYERS INDUSTRIES: Earns US$1.5 Million in Third Quarter of 2007
TAM SA: Gets Third Airbus A321, Increases Fleet to 111 Aircraft
TOWER AUTO: Names New President for International Operations
UNIAO DE BANCOS: Net Income Up 123.3% to BRL2,621 Million in 3Q
XERIUM TECH: Earns US$7.1 Million in Third Qtr. Ended Sept. 30
XERIUM TECH: Paying US$0.1125 Per Share Dividend on Dec. 17
C A Y M A N I S L A N D S
BLUE REEF: Proofs of Claim Filing Deadline Is Nov. 20
BMIT CORP: Sets Final Shareholders Meeting for Nov. 26
CLEAN COLT: Proofs of Claim Verification Deadline Is Dec. 27
DISTRIBUIDORA BANFIELD: Claims Verification Ends Dec. 20
EBS INVESTMENT: Proofs of Claim Filing Deadline Is Nov. 26
FIRST CLUB: Trustee Verifies Proofs of Claim Until Dec. 17
GAMMA GLOBAL: Sets Final Shareholders Meeting for Nov. 20
GAMMA RELATIVITY: Sets Final Shareholders Meeting for Nov. 20
GAMMA RELATIVITY (II): Final Shareholders Meeting Is on Nov. 20
GAMMA RELATIVITY LOW: Sets Last Shareholders Meeting for Nov. 20
GAMMA RELATIVITY (FUND): Last Shareholders Meeting Is on Nov. 20
GAMMA RELATIVITY INT'L: Final Shareholders Meeting on Nov. 20
LOS MIRASOLES: Proofs of Claim Verification Deadline Is Feb. 21
POLIPRODUCTOS ARGENTINOS: Claims Verification Deadline Is Feb. 4
SATELY SA: Trustee Verifies Proofs of Claim Until Dec. 10
C H I L E
NOVA CHEMICALS: Paying CDN0.10 Per Share Quarterly Dividend
C O L O M B I A
BRIGHTPOINT INC: Third Qtr. Net Income Up to US$12.9 Million
CASCADES INC: To Pay US$0.04 Per Share Qtrly Dividend on Dec. 17
GRAN TIERRA: Drilling Works Dominate 2008 Capital Expenditures
C O S T A R I C A
SPECTRUM BRANDS: Incurs US$333-Million Net Loss in Third Quarter
D O M I N I C A N R E P U B L I C
HANESBRANDS INC: Hires William Nictakis as Chief Comm'l Officer
H A I T I
BASIC ENERGY: Reports US$24.4 Million Net Income in Third Qtr.
DYNCORP INT'L: Peter Schoomaker Joins Board of Directors
J A M A I C A
AIR JAMAICA: Launching Partnership Talks with Stanford Financial
M E X I C O
CLEAR CHANNEL: Third Quarter Net Income Rises to US$279.7 Mil.
DESARROLLADORA HOMEX: Shareholders Acquire 6.7MM Common Shares
DURA AUTOMOTIVE: Seeks to Pay Arrangers for US$425MM Exit Loan
DURA AUTOMOTIVE: Wants Plan Confirmation Hearing Moved to Dec. 6
GRUPO MEXICO: Investing US$300MM To Fund Asarco's Chap. 11 Exit
MOVIE GALLERY: Committee Taps Miles & Stockbridge as Co-Counsel
MOVIE GALLERY: Committee Selects Pachulski Stang as Lead Counsel
MOVIE GALLERY: Wants to Employ Ernst & Young as Tax Advisors
REMY: Obtains US$225MM Secured DIP Funding From Barclays Capital
SCO GROUP: Wants to Sell Certain Assets to JGD for US$36,000,000
SCO GROUP: IBM and Novell Balk at Proposed Asset Sale Procedure
SR TELECOM: Posts US$22.2 Million Net Loss in 2007 Third Quarter
P A N A M A
AES CORP: Bear Stearns Upgrades Firm's Shares to Outperform
P E R U
QUEBECOR WORLD: Inks US$341 Million Sell/Merge Deal with RSDB NV
P U E R T O R I C O
DIRECTV GROUP: Earns US$319 Mil. in Third Quarter Ended Sept. 30
V E N E Z U E L A
CITGO PETROLEUM: Selling Two Asphalt Plant & Terminal To NuStar
PETROLEOS DE VENEZUELA: Investing Over US$10B To Boost Output
* BOND PRICING: For the Week Nov. 5 to Nov. 9
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A R G E N T I N A
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ALLIANCE ONE: Earns US$18.1 Million in Quarter Ended Sept. 30
-------------------------------------------------------------
Alliance One International, Inc. has announced results for the
quarter and six months ended Sept. 30, 2007.
Second Quarter Results
For the second quarter ended Sept. 30, 2007, the company
reported net income of US$18.1 million, or US$0.21 per basic
share, compared to net income of US$8.3 million, or US$0.10 per
basic share, in the year ago quarter. For the six months ended
Sept. 30, 2007, the company had net income of US$24.1 million,
or US$0.27 per basic share, compared to net income of US$12.9
million or US$0.15 per basic share for the year ago period.
Robert E. Harrison, Chief Executive Officer, said "Operating
income for the quarter and six months was comparable to the
prior year's same periods. However, the current business
environment remains challenging due to the short African burley
crops and the continued weakening of the US dollar against many
of the foreign currencies where we have a local currency
denominated cost structure. These factors negatively impacted
our underlying results. The impact of short crops in periods of
high demand translated into higher average green prices, higher
through put costs and less volume to sell. In areas not supply
constrained, including Brazil, the continued weakening of the US
dollar has created a challenging pricing environment. Despite
these challenges, we did make further significant progress in
our strategies to reduce long-term debt, manage our cost
structure and execute on the innovation focus of our core
business.
"Since year end at March 31, 2007, long term debt has been
permanently reduced by US$152.1 million, lowering our cash
interest expense as we move forward. Additionally, we continue
to focus on our core business as demonstrated by the post
quarter end sale of the CdF operations in early October --
realizing an additional US$16.2 million dollars of cash
available for further debt reductions.
"Finally, consistent with our mission to provide our customers
with innovative solutions, I am pleased to announce that we have
recently filed for intellectual property protection on four new
reduced alkaloid burley varieties developed at our R&D facility
in Brazil. Applications were filed with the US Department of
Agriculture seeking Plant Variety Protection, and patents are
now pending with the US Patent and Trademark Office. The new
burley varieties, which are the product of a research program
spanning more than eight years, were developed using
conventional plant breeding methods and exhibit lower alkaloid
levels when compared with other standard burley varieties. In
addition, the new varieties retain the desirable leaf quality,
grower yields and smoking characteristics typical of existing
Brazilian burley tobaccos.
"Tobacco varieties with lower alkaloid levels mean lower overall
nicotine levels and intrinsically may produce leaf containing
reduced tobacco specific nitrosamines. We believe this is a
positive development and may compliment the industry's ongoing
research to develop reduced harm products. Limited commercial
production is expected to commence in early 2009.
Mr. Harrison concluded, "In summary, it was a challenging
quarter in which we kept our focus squarely on our strategic
priorities. Our long term debt continues to decline and we're
focused on providing innovative products for the future."
Performance Summary for the Quarter
Sales and other operating revenues
The decrease of 1.2% from US$593.6 million in 2006 to US$586.6
million in 2007 is primarily the result of a 3.2% or 5.6 million
kilo decrease in quantities sold partially offset by a 2.1% or
US$0.07 per kilo increase in average sales prices.
-- Tobacco sales from the South America operating segment
decreased US$3.3 million or 0.9% resulting from a decrease
of US$0.15 per kilo in average sales prices as a result of
product mix, partially offset by an increase in volumes of
3.4 million kilos.
-- Tobacco sales from the Other Regions operating segment
decreased US$3.3 million or 1.4% primarily as a result of a
decrease in volumes of 9.0 million kilos partially offset by
an increase of US$0.33 per kilo in average sales prices.
This dynamic is primarily a result of opportunistic sales
and accelerated shipments in the prior year in the United
States, the exit from the European markets in Greece and
Spain and a shortage of shipping vessels in Tanzania in the
current year.
Gross profit as a percentage of sales
Gross profit decreased US$20.0 million or 19.3% from US$103.8
million in 2006 to US$83.8 million in 2007 and gross profit as a
percentage of sales decreased from 17.5% in 2006 to 14.3% in
2007.
-- Gross profit in the South America operating segment
decreased US$14.5 million primarily as a result of decreased
sales prices coupled with higher costs related to higher
processing costs as a result of a smaller 2007 crop, as well
as the impact of the strengthening Brazilian Real, which
substantially increased both the 2006 and 2007 crop green
and tobacco processing costs.
-- In the Other Regions operating segment, the decrease in
gross profit of US$5.5 million is primarily attributable to
the Africa origins of Malawi and Tanzania. The 2007 Malawi
crop size was reduced as a result of weather conditions and,
when coupled with decreased share due to increased
competition within the Malawi market, both have dramatically
increased the purchase price of the 2007 burley crop. As a
result of these factors, the average auction prices for the
2007 crop tobacco in Malawi have almost doubled in
comparison with the prior year while the per kilo processing
and overhead costs allocated to the 2007 crop increased.
Negotiated sales price increases are insufficient to cover
these cost escalations. These factors will have a material
negative impact on Other Region gross profit as the 2007
Malawi burley crop is sold in future quarters.
Selling, administrative and general expenses decreased US$4.5
million or 11.0% from US$41.0 million in 2006 to US$36.5 million
in 2007. The decrease is primarily due to decreased incentive
compensation costs and professional fees partially offset by
increased travel expenses.
Other income of US$2.2 million in 2007 and US$2.9 million in
2006 relates primarily to fixed asset sales.
Restructuring and asset impairment charges were US$2.4 million
in 2007 and US$20.9 million in 2006 as a result of both employee
severance and asset impairment changes.
Debt retirement expense of US$1.3 million in 2007 relates to
accelerated amortization of debt issuance costs as a result of
debt prepayment during the quarter.
Interest expense decreased US$4.4 million from US$29.6 million
in 2006 to US$25.2 million in 2007 primarily due to lower
average borrowings during the quarter.
Interest income decreased from US$2.8 million in 2006 to US$2.1
million in 2007 primarily due to a lower weighted average return
on cash.
Effective tax rates were an expense of 23.6% in 2007 and 51.4%
in 2006. We forecast the tax rate for the year ended Mar. 31,
2008 will be 29.9% after absorption of discrete items.
Income (loss) from discontinued operations. Discontinued
operations resulted in income of US$0.4 million in 2007 compared
to a loss of US$0.8 million in 2006 as a result of our exit from
the discontinued operations in Italy, Mozambique and wool
operations.
Liquidity and Capital Resources
As of Sept. 30, 2007, available credit lines and cash were
US$686.2 million including US$10.0 million exclusively available
to letters of credit, US$129.2 million of cash, the US$250.0
million unfunded revolver and US$297.0 million in foreign lines.
Total debt net of US$129.2 million in cash decreased to US$797.6
million from US$988.2 million for the prior year quarter end and
US$903.1 million for the quarter ended June 30, 2007 driven by
the pay off of the remaining US$60.0 million under the US$145.0
million term loan B as a result of cash flow from operations and
other available cash. Additionally, from time to time in the
future, the company may elect to redeem, repay, make open market
purchases, retire or cancel indebtedness prior to stated
maturity under its various global bank facilities or outstanding
public notes, as they may permit.
About Alliance One
Based in Morrisville, North Carolina, Alliance One International
Inc. (NYSE: AOI) -- http://www.aointl.com/-- is a leaf tobacco
merchant. The company has worldwide operations in Argentina,
Bangladesh, Brazil, Bulgaria, Canada, China, France,
Philippines, Malaysia, and Singapore.
* * *
Alliance One International Inc. continues to carry Moody's
Investors Service's B2 long-term corporate family rating, B1
bank loan debt rating, B2 senior unsecured debt rating, Caa1
subordinated debt rating, and B2 probability-of-default rating.
Moody's said the ratings outlook is stable.
The company also carries Standard & Poor's B+ long-term foreign
and local issuer credit ratings. S&P said the ratings outlook
is negative.
BALLY TECHNOLOGIES: Buying Compudigm's Gaming Power & seePOWER
--------------------------------------------------------------
Bally Technologies Inc. has signed a contract to acquire the
Gaming Power and seePOWER applications for the gaming industry
from Compudigm International, adding exclusive and powerful data
visualization and business analysis technology to the new Bally
Business Intelligence product line.
Compudigm's integrated solutions will immediately serve as a key
component in Bally's server-gaming strategy and the company's
plans for delivering "The Networked Floor Of The Future."
The acquired Compudigm technology currently monitors, manages
and optimizes data from more than 60,000 gaming positions around
the world that generate $6 billion in annual revenues. Current
customers using this product for marketing and business analysis
include Harrah's Entertainment, Penn National Gaming, Trump
Entertainment Resorts and the Seminole Tribe of Florida, well as
major casinos in New Zealand and Australia.
Bally also launched a comprehensive Business Intelligence
solution that will consist of two distinct and integrated
modules -- its internally developed Data Analysis Dashboard and
Compudigm's Gaming Power and seePower Data Visualization modules
-- both working off one combined Gaming Data Warehouse. This
combination of two best-of-breed solutions will offer the most
powerful and state-of-the-art business intelligence suite for
the gaming industry.
The Data Analysis Dashboard offers more than 650 predefined key
performance indicators, graphical data analysis charts and
graphs, more than 150 predefined reports and ad-hoc reporting
that will bring all essential information required to manage a
casino just a few computer clicks away.
"The Compudigm technology acquisition is consistent with our
commitment to deliver leading, yet useable technology with a
strong return on investment to our Systems footprint of more
than 368,000 devices worldwide," Richard Haddrill, CEO of Bally
Technologies, said. "Our leading business intelligence suite of
products will be a key component in delivering ROI on the
evolving 'networked gaming floor of the future."
The new Bally Business Intelligence product line will feature
multiple pricing and scalable options for the different data
warehousing, business analysis and data visualization solutions.
"When combined with the acquired Compudigm technology, this will
allow for dynamic decision-making that doesn't currently exist
in the industry today and will be the most comprehensive
business intelligence package in the gaming space," Bruce Rowe,
senior vice president of Strategy and Business Development for
Bally," said. "And it's the perfect foundational technology for
both today's networked floor and for the potential created by
server applications."
The Compudigm Gaming Power technology specializes in connecting
customer data with individual game data, providing game and
marketing managers with deep insights into how casino patrons
interact with the gaming floor. seePOWER transforms massive
volumes of transaction and customer data, from any system, into
critical, real-time visual insights from a physical perspective
designed to prompt smarter, faster and more profitable decision-
making.
The Compudigm products Bally is acquiring transform the deluge
of data generated by casino slots, tables and customer loyalty
systems into actionable, visual insights that help casino
managers make the smartest, fastest marketing and game floor
management decisions possible.
"The Bally solution will utilize seePOWER's smart marketing and
predictive engine to unlock real value and to realize the full
potential of a casino's business," Wout van Loon, CEO of
Compudigm International, said. "The seePOWER platform has
provided many gaming customers with an unparalleled competitive
advantage."
The Bally agreement represents Compudigm's business model to
provide solution providers with the seePOWER platform and
application development suite to deliver visualization, customer
profiling, customer segmentation and content-intelligence to the
entertainment, loyalty, financial services, retail,
telecommunications, utilities and health sciences industries.
About Compudigm International
Headquartered in Las Vegas, Nevada, Compudigm International --
http://www.compudigm.com/-- delivers business intelligence
solutions based upon its seePOWER data visualization technology,
which enables enterprises to transform disparate data into
actionable, visual intelligence for significant competitive
advantage. Founded in 1997, the company enables enterprises to
see their business clearly by animating,
illustrating and infusing maps and floor-plans well as product,
engineering and scientific diagrams with comprehensive business
intelligence. Compudigm also delivers visualization, customer
profiling, and content-intelligence as well as advice and
guidance solutions to the gaming, retail, entertainment,
telecommunications, utilities, health sciences and financial
service industries.
About Bally Technologies Inc.
Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide. Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms. Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions. The company also owns and operates
Rainbow Casino in Vicksburg, Miss. The company's South American
operations are located in Argentina. The company also has
operations in Macau, China, and India.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 7, 2007, Standard & Poor's Ratings Services raised its
corporate credit and senior secured debt ratings on Las Vegas-
based Bally Technologies Inc. to 'B+' from 'B-'. Concurrently,
S&P revised the CreditWatch implications to positive from
developing.
BANCO MACRO: Reports ARS88-Mln Net Income in Qtr. Ended Sept. 30
----------------------------------------------------------------
Banco Macro S.A. has announced its results for the three months
ended Sept. 30, 2007. All figures are in Argentine pesos and
have been prepared in accordance with Argentine GAAP.
Highlights
-- The Bank's net income totaled ARS88 million. This result
was 17% or ARS17.7 million lower than 3Q06's ARS105.7
million. The annualized ROAE and ROAA reached 18.4% and
2.6%, respectively. The Bank's equity also increased by
ARS88 million in the quarter.
-- Banco Macro decided not to take the option to value its
portfolio as "investment" or "available for sale" pursuant
to Communications "A" 4698 and 4702 issued by the Central
Bank. The Bank continues to value its securities at market
value.
-- The Bank's net interest income was ARS233 million,
decreasing 0.3% Quarter-over-Quarter. The Bond portfolio
income declined 2.5% due to lower bond prices.
-- Banco Macro's financing to the private sector increased 24%
or ARS1.8 billion and 59% or ARS3.4 billion Year-over-Year.
Personal loans, which represent a strategic product for the
Bank, once again led private loan portfolio growth. This
product grew 27% and 150% Year-over-Year.
-- Total deposits grew 12% or ARS1.5 billion, totalling ARS13.5
billion and represented 78% of the Bank's liabilities. Time
deposits rose 15%.
-- Banco Macro continued to have a strong solvency ratio, with
excess capital of ARS1.9 billion. In addition, the Bank's
liquid assets remained at a high level, reaching 59.7% of
total deposits.
-- The Bank's asset quality improved to more attractive levels.
In Sept. 30, 2007, Banco Macro's PDLs-to-total loans ratio
reached 1.34%, improving from 2Q07's 1.55%. The coverage
ratio reached 157.1%.
About Banco Macro
Headquartered in Buenos Aires, Argentina, Banco Macro --
http://www.macro.com.ar/-- had consolidated assets of 11.6
billion (US$3.7 billion) and consolidated deposits of 6.0
billion (US$2 million) as of June 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 22, 2007, Moody's Investors Service has assigned a B2 long-
term foreign currency debt rating to the expected issuance of
Banco Macro S.A.'s US$200 million senior notes that are due in
2014. This debt is issued under the bank's medium-term note
program, which amount has been recently increased to US$700
million, from the initial US$400 million. Moody's said the
outlook on the rating is positive.
These rating were assigned to Banco Macro S.A.:
-- Foreign Currency Senior debt of US$200 million:
-- Long-term foreign currency debt rating: B2, positive
outlook
FERRO CORP: Reports US$5.6-Mln Net Income in Qtr. Ended Sept. 30
----------------------------------------------------------------
Ferro Corporation has earned US$5.6 million on net sales of
US$551 million for the three months ended Sept. 30, 2007,
compared to net income of US$5.5 million on net sales of US$501
million for the same period in 2006.
Income from continuing operations for the 2007 third quarter was
US$5.6 million, up 2.2 percent compared with US$5.5 million in
the third quarter of 2006. During the quarter, lower selling,
general and administrative expenses and lower interest expense
were largely offset by restructuring charges related to the
consolidation of certain manufacturing operations in Europe and
higher income tax expense. The 2007 third quarter income from
continuing operations included net pre-tax expenses of US$6.5
million primarily related to restructuring costs. The third
quarter 2006 income from continuing operations included net pre-
tax expenses of US$1.3 million primarily related to
manufacturing rationalization activities.
"We delivered strong third-quarter sales that were driven by the
breadth of our international operations," said Chairman,
President and Chief Executive Officer James F. Kirsch. "Our
segment income increased 7 percent, compared with the third
quarter of 2006, despite weakness in a number of U.S. markets
and continued raw material cost increases. While we delivered
improved segment income from the third quarter of 2006, we
remain focused on the opportunities we have identified to
improve overall profitability and deliver enhanced shareholder
value."
Net sales increased in the third quarter primarily as a result
of product price increases and favorable changes in foreign
currency exchange rates. Compared with the third quarter of
2006, sales increased in the Performance Coatings, Color and
Glass Performance Materials, Electronic Materials and Polymer
Additives segments. Sales declined from the prior-year period
in the Specialty Plastics segment. International net sales grew
18 percent compared with the third quarter of 2006, while sales
in the United States were flat.
Gross margins were 18.2 percent of sales for the third quarter,
compared with 19.7 percent of sales in the third quarter of
2006. The Company's 2007 third quarter gross profit was reduced
by US$0.5 million in costs primarily related to accelerated
depreciation and other costs associated with manufacturing
rationalization activities. Gross profit was negatively
impacted by lower volumes, particularly in porcelain enamel and
plastics products, and higher raw material costs. In addition,
gross margin as a percent of sales continued to be negatively
impacted by rising precious metal costs. Precious metal costs
are passed through to customers with minimal contribution to
margins.
Selling, general and administrative (SG&A) expense was US$71.1
million in the third quarter of 2007, or 12.9 percent of sales.
SG&A expense in the third quarter of 2006 was US$74.1 million,
or 14.8 percent of sales, including charges of US$0.4 million
primarily related to organizational initiatives and an
accounting restatement. SG&A expense declined primarily as a
result of expense reduction activities, particularly in the
Specialty Plastics and Electronic Materials segments, lower
incentive compensation accruals and lower audit fees.
Restructuring charges were US$5.8 million for the 2007 third
quarter, primarily as a result of activities related to the
consolidation of Ferro's porcelain enamel manufacturing
operations in Europe. There were no restructuring charges
recorded in the third quarter of 2006.
Interest expense for the 2007 third quarter was US$14.5 million,
compared with US$16.8 million in the year-ago period. Interest
expense declined from the prior-year period largely as a result
of lower borrowing levels resulting from the elimination of cash
deposits on precious metal consignments and lower interest
rates. The elimination of these deposits also resulted in a
decline in interest income during the third quarter compared
with the third quarter of 2006.
The company's tax rate for the third quarter increased to 38.3
percent from 33.0 percent in the 2006 third quarter. The higher
rate was largely the result of the tax effects from the
restructuring charges recorded in the quarter, the mix of income
by country and an increase in the tax cost of foreign current-
year earnings to be repatriated.
Total debt on Sept. 30, 2007 was US$536.4 million, compared with
US$592.4 million at the end of 2006. The company had net
proceeds of US$65.5 million from its U.S. accounts receivable
securitization program as of Sept. 30, 2007, compared with
US$60.6 million at the end of 2006. The company also had
US$51.2 million in net proceeds from similar programs outside
the U.S. at the end of the quarter, compared with US$33.7
million at the end of 2006.
About Ferro Corp.
Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE)
-- http://www.ferro.com/-- is a global producer of an array of
specialty chemicals including coatings, enamels, pigments,
plastic compounds, and specialty chemicals for use in industries
ranging from construction, pharmaceuticals and
telecommunications. Ferro operates through the following five
primary business segments: Performance Coatings, Electronic
Materials, Color and Performance Glass Materials, Polymer
Additives, and Specialty Plastics. Revenues were USUS$2 billion
for the FYE ended Dec. 31, 2006.
Ferro Corp. has global locations in Argentina, Australia,
Belgium, Brazil, China, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Moody's Investors Service assigned a B1 corporate
family rating to Ferro Corporation. Moody's also assigned a B1
rating to the company's USUS$200 million senior secured notes
(issued as unsecured notes in 2001) due in January 2009 and an
SGL-3 speculative grade liquidity rating.
EMPRESA DISTRIBUIDORA: Reports ARS69.9MM Net Income for 9 Mos.
--------------------------------------------------------------
Empresa Distribuidora y Comercializadora Norte S.A. has
announced its results for the nine months ended Sept. 30, 2007.
All figures are stated in Argentine Pesos and have been prepared
in accordance with Argentine GAAP. Solely for the convenience
of the reader, Peso amounts as of and for the nine- month period
ended Sept. 30, 2007, have been translated into U.S. Dollars at
the buying rate for U.S. Dollars quoted by Banco de la Nacion
Argentina on Sept. 30, 2007, of ARS3.15.
Highlights
Net Sales increased 47.0% to ARS1,503.2 million in the nine-
month period ended Sept. 30, 2007, compared to Ps.1,022.9
million in the same period of 2006, mainly due to the
application to our non residential customers of the increase in
our distribution marginfrom Feb. 1, 2007, and the recording of
the retroactive portion of the VAD increase for the period from
Nov. 1, 2005 through Jan. 31, 2007, which totals ARS218.6
million. As of Sept. 30, 2007 we had already invoiced ARS33.5
million of that amount while ARS185.1 million remains unbilled.
Excluding the unbilled amount of retroactive portion of the VAD
increase, net sales in the nine-month period ended
Sept. 30, 2007 would have been ARS1,318.1 million, representing
a 28.9% increase compared to the same period of 2006. This
increase is also driven by an increase in the volume of energy
sold compared to the nine months ended Sept. 30, 2006.
Volume of Energy Sold, increased 9.4% to 13,574.1 GWh in the
first nine months of 2007, compared to 12,408.3 GWh in the same
period of 2006. This increase was due mainly to a 7.6% increase
in average GWh consumption per customer and to a 1.7% increase
in the number of customers.
Gross Margin increased 91.6% to ARS830.6 million in the first
nine months of 2007, compared to ARS433.5 million in the same
period of 2006. This increase is also largely due to the
application of the increase in our distribution margin from
Feb. 1, 2007, the recording of the retroactive portion of this
increase and the increase in volume of energy sold, as described
above. Excluding the unbilled amount of retroactive portion of
the VAD increase, our gross margin would have been ARS645.5
million in the nine-month period ended Sept. 30, 2007,
representing a 48.9% increase when compared with the same period
of 2006.
Net Operating Income increased significantly to ARS350.8 million
for the nine months ended Sept. 30, 2007, compared to ARS30.4
million in the same period of 2006. This increase is also
largely due to the application of the increase in our
distribution margin from Feb. 1, 2007, the recording of the
retroactive portion of this increase and the increase in volume
of energy sold, as described above. Excluding the unbilled
amount of retroactive portion of the VAD increase, net operating
income for the first nine months of 2007 would have amounted to
ARS165.7 million.
Net Income reached ARS69.9 million in the first nine months of
2007, compared to ARS260.0 million in the same period of 2006.
In the nine-month period ended Sept. 30, 2007, net income was
positively affected by the application of the VAD increase, the
increase in volume of energy sold and the recording of the
retroactive portion of the VAD increase, which were partially
offset by the net exchange losses (ARS32.1 million) related to
our financial debt (which is denominated in US dollars), the
adjustment to present value of our financial debt (ARS46.3
million), the adjustment to present value of the retroactive
portion of the VAD increase and certain trade receivables
(ARS32.4 million), and the recording of a tax charge (ARS106.8
million) generated by the reversal of the deferred tax asset
related to the tax loss carryforward due to a significant
increase in our taxable income, which was partially offset by
the tax deduction of ENRE penalties in 2007 fiscal year. In the
same period of 2006, net income was positively affected by the
gain resulting from our debt restructuring, including the
adjustment to present value of the restructured debt (ARS254.7
million) and the recognition of the partial reversal of the
valuation allowance of our net deferred tax assets (ARS72.3
million).
About Edenor
Based in Buenos Aires, Argentina, Edenor is the largest
electricity distribution company in Argentina in terms of number
of customers and volume of energy sold. Edenor commenced
operations in 1992, as a result of the privatization of the
previously state-owned SEGBA. At that time, it was granted a
95-year concession to distribute electricity on an exclusive
basis in its concession area, the greater Buenos Aires
metropolitan area and northern portion of the City of Buenos
Aires. EASA, which is controlled by Dolphin Energia S.A., is
Edenor's holding company.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 1, 2007, Standard and Poor's Argentina Assigns its 'B'
Rating on US$220 Million Bond issued by Empresa Distribuidora y
Comercializadora Norte S.A with annual fixed interest rate of
10.5% Notes due 2017. S&P said the outlook is positive.
=============
B A H A M A S
=============
HARRAH'S ENTERTAINMENT: Earns US$244.4 Million in Third Quarter
---------------------------------------------------------------
Harrah's Entertainment Inc. financial reported results for its
third quarter ended Sept. 30, 2007.
Net income was US$244.4 million, up 37.9% from US$177.2 million
in the 2006 third quarter. On a GAAP basis, third-quarter
income from operations was US$577.2 million, compared with
US$441.9 million in the year-ago quarter. Total revenues
increased 13% to US$2.84 billion from total revenues of US$2.51
billion in the 2006 third quarter.
Property EBITDA rose 15.4% to US$790.4 million from US$684.7
million in 2006. Property EBITDA excludes certain non-recurring
items, including insurance proceeds arising from the 2005
hurricane claims.
Interest expense rose to US$216.1 million from US$165.7 million
in 2006 due to higher debt levels associated with acquisitions,
higher interest rates and a decline of US$25.2 million in the
aggregate fair value of the company's interest-rate swaps.
The effective tax rate, which includes federal and state income
taxes, for the third quarter was 38.4%, compared with 35.1% in
the year-ago period.
Income from discontinued operations, net of tax, of US$23.8
million for the 2007 third quarter compared to a loss from
discontinued operations of US$1.1 million in 2006. Income from
discontinued operations in the 2007 third quarter reflect
insurance proceeds of US$22.5 million, after taxes, that are in
excess of the net book value of the impacted assets and
accumulated costs and expenses expected to be reimbursed under
the company's insurance claims for Harrah's Lake Charles and
Grand Casino Gulfport, both of which were sold in 2006.
Third-quarter highlights
Harrah's Entertainment announced a US$1 billion expansion and
renovation of Caesars Palace in Las Vegas that will include
construction of a 665-room hotel tower and a 263,000-square-foot
meeting and convention center, as well as enhancements to the
resort's 512-room Forum Tower. The project will increase the
room and suite offering at Caesars Palace to 4,013 from 3,348
when completed in 2009.
Harrah's and AEG, developer of entertainment venues such as
STAPLES Center in Los Angeles, unveiled plans for a privately
financed, 20,000-seat, state-of-the-art sports and entertainment
arena on acreage currently owned by Harrah's near the center of
the Las Vegas Strip. The arena is expected to open in 2010.
Harrah's has acquired Macau Orient Golf, an 18-hole golf course
on 175 acres on Cotai directly adjacent to the Lotus Bridge, one
of two border crossings into Macau from China. Harrah's plans
improvements that will make Macau Orient Golf one of the most
authentic links-style courses in the Pearl River Delta.
Balance Sheet
At Sept. 30, 2007, the company's consolidated balance sheet
showed US$23.19 billion in total assets, US$16.48 billion in
total liabilities, US$57.4 million in minority interests, and
US$6.65 million 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?2512
About Harrah's Entertainment
Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc.
(NYSE: HET) -- http://www.harrahs.com/-- has grown through
development of new properties, expansions and acquisitions, and
now owns or manages casino resorts on four continents and hosts
over 100 million visitors per year. The company's properties
operate under the Harrah's, Caesars and Horseshoe brand names;
Harrah's also owns the London Clubs International family of
casinos and the World Series of Poker. Harrah's also owns the
London Clubs International family of casinos. In January, it
signed a joint venture agreement with Baha Mar Resorts Ltd. to
operate a resort in Bahamas.
* * *
Standard & Poor's placed Harrah's Entertainment Inc.'s long term
foreign and local issuer credit ratings at "BB" in December
2006, which still hold to date.
HARRAH'S ENTERTAINMENT: Indiana Gaming Agency OKs Apollo Merger
---------------------------------------------------------------
Harrah's Entertainment, Inc., has received approval from the
Indiana Gaming Commission for its proposed acquisition by
affiliates of Apollo Management, L.P., and TPG Capital. The
transaction remains subject to approval by other jurisdictions
in which Harrah's subsidiaries operate and other conditions to
closing set forth in the agreement and plan of merger entered
Dec. 19, 2006.
About Harrah's Entertainment
Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc.
(NYSE: HET) -- http://www.harrahs.com/-- has grown through
development of new properties, expansions and acquisitions, and
now owns or manages casino resorts on four continents and hosts
over 100 million visitors per year. The company's properties
operate under the Harrah's, Caesars and Horseshoe brand names;
Harrah's also owns the London Clubs International family of
casinos and the World Series of Poker. Harrah's also owns the
London Clubs International family of casinos. In January, it
signed a joint venture agreement with Baha Mar Resorts Ltd. to
operate a resort in Bahamas.
* * *
Standard & Poor's placed Harrah's Entertainment Inc.'s long term
foreign and local issuer credit ratings at "BB" in December
2006, which still hold this date.
=============
B E R M U D A
=============
JETBLUE AIRWAYS: Ed Barnes Replaces John Harvey as Interim CFO
--------------------------------------------------------------
JetBlue Airways has appointed Senior Vice President for Finance
and Principal Accounting Officer Ed Barnes to the position of
interim Chief Financial Officer, effective Nov. 8. John Harvey,
JetBlue's former Executive Vice President-Corporate Services and
CFO, has resigned from the company to pursue other professional
interests.
"We thank John for his many years of service with JetBlue, and
wish him well in his future endeavors," said Dave Barger,
JetBlue's Chief Executive Officer. "We also thank Ed for
stepping in to lead our financial team and strategy while we
implement an executive search for a permanent CFO."
Mr. Barnes has been with JetBlue since 2006 as Vice President-
Finance, and assumed the responsibilities of Principal
Accounting Officer earlier this year, and was promoted to Senior
Vice President-Finance Oct. 1, 2007. Mr. Barnes joined JetBlue
after serving in senior financial leadership roles in a number
of different industries, including Southwest Airlines Co. and
America West Airlines, Inc., with his final position at America
West as Vice President-Controller of The Leisure Company, their
vacation packaging subsidiary. He is a certified public
accountant and a member of the American Institute of Certified
Public Accountants.
About JetBlue Airways Corp.
Headquartered in Forest Hills, New York, JetBlue Airways Corp.
(Nasdaq: JBLU) -- http://www.jetblue.com/-- provides passenger
air transportation services in the United States. As of
Feb. 14, 2007, it operated approximately 502 daily flights
serving 50 destinations in 21 states, Bahamas, Bermuda,
Dominican Republic, Puerto Rico, Mexico, and the Caribbean; and
a fleet of 98 Airbus A320 aircraft and 23 EMBRAER 190 aircraft.
The company also provides in-flight entertainment systems for
commercial aircraft, including live in-seat satellite
television, digital satellite radio, wireless aircraft data link
service, and cabin surveillance systems and Internet services,
through its wholly owned subsidiary, LiveTV LLC.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 15, 2007, Fitch Ratings affirmed the debt ratings of
JetBlue Airways Corp. as:
-- Issuer Default Rating at 'B'
-- Senior unsecured convertible notes at 'CCC' with a recovery
rating of 'RR6'
The senior unsecured rating applies to US$425 million of
outstanding convertible notes.
===========
B R A Z I L
===========
BANCO NACIONAL: Funding 80% of Santo Antonio Plant Through Loans
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA said in
a statement that it will finance up to 80% of the total
investment to construct the 3.15-gigawatt Santo Antonio hydro
plant through 25-year loans.
Banco Nacional told Business News Americas that direct loans
from the bank will be up to 75% of the total project.
BNamericas relates that Banco Nacional's private equity division
BNDESpar could negotiate an up to 20% stake in the consortium
that will win the Santo Antonio plant project.
According to BNamericas, Banco Nacional loans for Santo Antonio
will have a funding cost equal to Brazil's long-term rate TJLP
-- 6.25% per annum -- plus 0.5% a year. "In the indirect loan
category, the conditions will be the same." However, Banco
Nacional will charge 0.8% extra.
On Dec. 10, 2007, the Brazilian government will auction the
right to construct and run the plant, BNamericas notes.
Santo Antonio will begin operating in December 2012. It will
have 44 turbines and require BRL9.5 billion in investments,
BNamericas states, citing federal energy planning company EPE.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's, and a BB+ long-term foreign issuer
credit rating from Standards and Poor's. The ratings were
assigned in August and May 2007, respectively.
COMPANHIA ENERGETICA: Bidding in Santo Antonio Plant Auction
------------------------------------------------------------
Companhia Energetica de Minas Gerais will join federal power
firm Furnas and engineering company Odebrecht in presenting bids
for the 3.15-gigawatt Santo Antonio hydroelectric plant,
Business News Americas reports.
Companhia Energetica head Marcio Araujo de Lacerda said in a Web
cast, "We are trying to confirm our participation in the auction
through Furnas and we see a good chance of that happening. Santo
Ant“nio is a good project."
BNamericas relates that Companhia Energetica would have a 10%
share in the Santo Antonio consortium. The firm's stake could
eventually increase to 12%.
Mr. de Lacerda commented to BNamericas, "There's consensus
between the partners that this 10-12% interest would be adequate
for Cemig [Companhia Energetica."
BNamericas notes that Companhia Energetica could bid for the
3.3-gigawatt Jirau hydro plant next year. The Jirau plant is
part of the Madeira project in the Amazon. Companhia Energetica
will also compete to acquire the 49.99% stake in power holding
firm Brasiliana. Federal development bank BNDES will sell the
49.99% stake in Brasiliana by year-end.
Companhia Energetica head Djalma Morais told BNamericas,
"Bidding for Brasiliana is part of Cemig's growth strategy."
"Brasiliana is probably the most important asset in the power
sector for sale today in Brazil. We are joining a consortium
with [engineering firm] Andrade Gutierrez and perhaps a third
partner, always in compliance with the company's policy on
returns," Ms. Morais commented to BNamericas.
Meanwhile, Companhia Energetica Chief Financial Officer Luiz
Fernando Rolla told BNamericas that the firm could have a hard
time in bidding for the potential sale of a stake in Sao Paulo
state-run generator Cesp.
Mr. Rolla explained to BNamericas that Cesp is a little more
complicated due to a legislation in Sao Paulo that blocks state-
owned firms from other states from bidding for its assets.
Companhia Energetica is seeking for a change in the law.
BNamericas says that the Sao Paulo state government hired
Citibank to analyze and help develop a strategy to sell its
33.37% stake in Cesp.
Companhia Energetica will set aside part of the BRL1.4-billion
allocated for the funding of expansion plans this year,
BNamericas states, citing Mr. Rolla.
Companhia Energetica de Minas Gerais -- http://www.cemig.com.br/
-- is one of the largest and most important electric energy
utilities in Brazil due to its strategic location, its technical
expertise and its market. Cemig's concession area extends
throughout nearly 96.7% of the State of Minas Gerais, Brazil.
Cemig owns and operates 52 power plants, of which six are in
partnership with private enterprises, relying on a predominantly
hydroelectric energy matrix. Electric energy is produced to
supply more than 17 million people living in the state's 774
municipalities. In addition to those 52 plants, another three
are currently under construction.
Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).
* * *
As reported on March 8, 2007, Moody's Investors Service assigned
corporate family ratings of Ba2 on its global scale and Aa3.br
on its Brazilian national scale to Companhia Energetica de Minas
Gerais aka CEMIG. The rating action triggered the upgrade of
CEMIG's outstanding debentures due in 2009 and 2011, and of the
BRL250 million 2014 senior unsecured guaranteed debentures of
its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from
B1 on the global scale and to Aa3.br from Baa2.br on the
Brazilian national scale, concluding the review process
initiated on Aug. 8, 2006.
COMPANHIA ENERGETICA: Earns BRL1.47 Billion in First Nine Months
----------------------------------------------------------------
Companhia Energetica de Minas Gerais told Business News Americas
that its net profits increased 32% to BRL1.47 billion in the
first nine months of this year, compared to BRL1.11 billion in
the same period last year.
BNamericas relates that Companhia Energetica's net profits rose
to BRL547 million in the third quarter 2007, from BRL448 million
in the same period in 2006.
Companhia Energetica told BNamericas that its gross revenues
increased 21% to BRL11.7 billion in the nine first months of
this year, compared to the same period last year. Ebitda grew
43% to BRL3.00 billion.
Companhia Energetica's board president Marcio Araujo de Lacerda
said in a Web cast that the firm's increased profitability
indicates higher income from the RME consortium and reduced
losses at Light, among other factors.
BNamericas notes that in the distribution business, Companhia
Energetica's power sales increased 10% to 32.9 terra watt-hours
in the first nine months of 2007, compared to 29.9 terra watt-
hours in the same period last year.
Companhia Energetica's power sales to residential customers grew
23% to 6.5 terra watt-hours in the first nine months of 2007,
from the first nine months of 2006. Sales to industrial clients
rose 0.7% to 18.1 terra watt-hours and to commercial clients 33%
to 4.1 terra watt-hours, BNamericas states.
Companhia Energetica de Minas Gerais -- http://www.cemig.com.br/
-- is one of the largest and most important electric energy
utilities in Brazil due to its strategic location, its technical
expertise and its market. Cemig's concession area extends
throughout nearly 96.7% of the State of Minas Gerais, Brazil.
Cemig owns and operates 52 power plants, of which six are in
partnership with private enterprises, relying on a predominantly
hydroelectric energy matrix. Electric energy is produced to
supply more than 17 million people living in the state's 774
municipalities. In addition to those 52 plants, another three
are currently under construction.
Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).
* * *
As reported on March 8, 2007, Moody's Investors Service assigned
corporate family ratings of Ba2 on its global scale and Aa3.br
on its Brazilian national scale to Companhia Energetica de Minas
Gerais aka CEMIG. The rating action triggered the upgrade of
CEMIG's outstanding debentures due in 2009 and 2011, and of the
BRL250 million 2014 senior unsecured guaranteed debentures of
its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from
B1 on the global scale and to Aa3.br from Baa2.br on the
Brazilian national scale, concluding the review process
initiated on Aug. 8, 2006.
COMPANHIA PARANAENSE: Will Focus on Generation Projects
-------------------------------------------------------
Companhia Paranaense de Energia's director Jaime Kuhn told the
press that the firm will concentrate on generation projects,
investing BRL7 billion in 2007-16.
About 66% of the BRL7-billion investment will be allocated to
generation, Business News Americas relates, citing Mr. Kuhn.
Mr. Kuhn told BNamericas that the investment excludes Companhia
Paranaense's potential participation in a consortium to bid for
the 3.15-gigawatt Santo Antonio hydro plant and the planned
acquisition of smaller distribution firms in Parana and Rio
Grande do Sul.
Companhia Paranaense won the auction for a 230-kilovolt
transmission line in Parana, published reports say, citing Mr.
Kuhn.
According to BNamericas, Companhia Paranaense has two
substations close to where it will construct the 230-kilovolt
line.
Mr. Kuhn commented to BNamericas, "Copel [Companhia Paranaense]
has infrastructure in Parana state and other companies could not
match our offer."
The transmission line must begin operating in 15 months,
BNamericas says, citing Brazilian power regulator and auction
host Aneel.
Mr. Kuhn admitted to BNamericas, "This schedule is tight for us,
but we can do it."
Companhia Paranaense corpoarate T&D director Raul Munhoz Neto
told Bnamericas that the company will use its own cash to fund
the line. Mr. Neto said the firm has other options, but it will
still use its own cash. It has good knowledge of the location
where the line will be constructed.
Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Parana and has a generating capacity of nearly 4,600
MW, primarily from hydroelectric plants. COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services. The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitely postponed. In response, COPEL is
re-evaluating its corporate structure. The government of Parana
controls about 59% of COPEL.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 13, 2006, Moody's America Latina upgraded the corporate
family rating of Companhia Paranaense de Energia aka Copel to
Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its
Brazilian national scale. Moody's said the rating outlook is
stable. This rating action concludes the review process
initiated on July 26, 2006.
Moody's upgraded these ratings:
-- Corporate Family Rating: to Ba2 from Ba3 (Global Local
Currency) and to Aa2.br from A3.br (Brazilian National
Scale);
-- BRL500 million Senior Unsecured Guaranteed Debentures due
2007: to Ba2 from Ba3 (Global Local Currency) and to
Aa2.br from A3.br (Brazilian National Scale); and
-- BRL400 million Senior Secured Guaranteed Debentures due
2009: to Ba1 from Ba2 (Global Local Currency) and to
Aa1.br from A1.br (Brazilian National Scale).
FORD MOTOR: Posts US$380-Million Loss for Third Quarter 2007
------------------------------------------------------------
Ford Motor Company has reported a net loss of 19 cents per
share, or US$380 million, for the third quarter of 2007. This
compares with a net loss of US$2.79 per share, or US$5.2
billion, in the third quarter of 2006.
Ford's third-quarter revenue was US$41.1 billion, up from
US$37.1 billion a year ago. The increase primarily reflected
higher net pricing, changes in currency exchange rates, and
improved product mix.
Ford's third-quarter loss from continuing operations, excluding
special items, was 1 cent per share, or US$24 million, compared
with a loss of 45 cents per share, or US$850 million, in the
same period a year ago.
Special items reduced pre-tax results by US$350 million in the
third quarter. These were more than explained by costs
associated with our previously announced Trust Preferred
Securities exchange offer, and charges associated with Ford
Europe and Premier Automotive Group personnel reductions and
other restructuring actions. Favorable cost adjustments
associated with Ford North America personnel reduction programs
were a partial offset.
Automotive gross cash, which includes cash and cash equivalents,
net marketable securities, loaned securities and short-term VEBA
assets, was US$35.6 billion at Sept. 30, 2007, an increase of
US$1.7 billion from year-end 2006.
The company continues to explore in greater detail the potential
sale of Jaguar and Land Rover with interested parties and
anticipates these discussions will culminate in an agreement no
later than early next year.
In addition, the company has been conducting a strategic review
of Volvo, and has developed a plan. The first priority of the
plan is to improve financial performance at Volvo. The plan
also includes: enhancing Volvo's position as a global producer
of premium vehicles; establishing appropriate business
arrangements between Volvo and Ford-brand operations to allow
Volvo to operate on a more stand-alone basis in the absence of
the Premier Automotive Group structure; and, continuing to
achieve synergies between Ford-brand operations and Volvo in
areas such as product development and purchasing. The company
plans to disclose Volvo's financial performance beginning with
2008 results.
"Our third quarter performance is very encouraging," said Ford
President and Chief Executive Officer Alan Mulally. "We can see
our plan taking hold with significant improvement continuing in
our core Automotive operations. We remain committed to
executing the four priorities of our plan - restructuring the
business to operate profitably, accelerating the development of
new products that our customers want and value, funding our plan
and improving our balance sheet, and working even more
effectively together as one Ford team, leveraging our global
assets."
Highlights for 2007
-- Tentative agreement reached with the United Auto Workers
(UAW) on a new four-year national labor contract, subject to
ratification by UAW members, which significantly improves
its competitiveness going forward.
-- Strong performance in the 2007 Third Quarter U.S. Global
Quality Research System study.
-- Ford Taurus, Taurus X and Mercury Sable earned Top Safety
Pick ratings from the Insurance Institute for Highway Safety
for achieving the highest possible ratings in frontal, side
and rear crash test performance.
-- The Ford Mustang convertible became the first sports car and
first convertible in history to earn the highest possible
safety ratings from the National Highway Traffic and Safety
Administration. The Mustang convertible earned five star
ratings in all crash test and rollover categories.
-- Ford SYNC - the company's fully integrated, voice-activated
in-car communications and entertainment system developed in
association with Microsoft - won one of 10 Popular
Mechanics' "Breakthrough Awards," which recognize products
that set new benchmarks in design, creativity and
engineering.
-- Ford South America unit sales up 19 percent year to date.
-- Ford Europe records sixth consecutive quarter of year-over-
year profit improvement, and Ford Europe unit sales rose
more than 5 percent in first nine months of 2007.
-- Ford Mondeo joins three other models -- Ford Focus, Galaxy
and S-MAX -- with a five star performance on the Euro NCAP
top 10 list, reinforcing Ford Europe's position as the
manufacturer with the highest number of vehicles in the top
10 for adult occupant protection.
-- Best-ever quarter for Land Rover unit sales.
-- Ford China unit sales up 27 percent in the first nine months
of 2007.
-- Launched operations at new assembly plant in Nanjing, China.
The new plant will produce the latest small-car models from
both Ford and Mazda.
-- Achieved US$1.8 billion in cost savings in first nine months
of 2007, including US$600 million in the third quarter.
-- Continued to align capacity to match demand and improve our
productivity in North America, reducing personnel by 6,800
in the third quarter.
Automotive Sector
On a pre-tax basis, worldwide Automotive sector losses in the
third quarter were US$362 million. This compares with a pre-tax
loss of US$1.9 billion during the same period a year ago. The
improvements were more than explained by higher net pricing,
lower costs, and improved volume and mix, partially offset by
higher interest expense, and unfavorable changes in currency
exchange rates.
Vehicle wholesales in the third quarter were 1,487,000, up from
1,467,000 a year ago. Worldwide Automotive revenue for the third
quarter was US$36.3 billion, up from US$32.5 billion in the same
period last year. The increase primarily reflected higher net
pricing, changes in currency exchange rates, and improved
product mix.
Ford North America
In the third quarter, Ford North America reported a pre-tax loss
of US$1.0 billion, compared with a pre-tax loss of US$2.1
billion a year ago. The improvement primarily reflected higher
net pricing and improved product mix, partially offset by
unfavorable changes in currency exchange rates. Revenue was
US$16.5 billion, up from US$15.4 billion for the same period a
year ago.
Ford South America
Ford South America reported a third-quarter pre-tax profit of
US$386 million, compared with a pre-tax profit of US$201 million
a year ago. The improvement was primarily explained by higher
net pricing and higher volume. Third quarter revenue improved
to US$2.1 billion from US$1.5 billion in 2006.
Ford Europe
Ford Europe's third-quarter pre-tax profit was US$293 million,
compared with a pre-tax loss of US$13 million during the same
period in 2006. The improvement was more than explained by
lower costs and higher net pricing, partially offset by lower
volume and less favorable mix. During the third quarter of
2007, Ford Europe's revenue was US$8.3 billion, compared with
US$7.3 billion during the third quarter of 2006.
Premier Automotive Group
This group reported a pre-tax loss of US$97 million for the
third quarter, compared with a pre-tax loss of US$508 million
for the same period in 2006. The third-quarter 2007 result
reflected a loss at Volvo, partially offset by a small profit at
the combined Jaguar and Land Rover operation. The year-over-
year improvement was primarily explained by cost reductions
across all brands, including the non-recurrence of adverse 2006
adjustments to warranty reserves. Higher volumes and higher net
pricing were partially offset by the effect of the continued
weakening of the U.S. dollar against key European currencies.
Third-quarter 2007 revenue was US$7.4 billion, compared with
US$6.5 billion a year ago.
Ford Asia Pacific and Africa
For the third quarter, Ford Asia Pacific and Africa reported a
pre-tax profit of US$30 million, compared with a pre-tax loss of
US$56 million a year ago. The improvement primarily reflected
cost reductions and higher net pricing, partially offset by
adverse product mix, mainly in Australia. Revenue was US$1.8
billion for the third quarter of 2007, compared with US$1.6
billion in 2006.
Mazda
For the third quarter, Ford earned US$18 million from its
investment in Mazda and associated operations, compared with
US$40 million during the same period a year ago.
Other Automotive: Third-quarter results included a pre-tax
profit of US$29 million, compared with a profit of US$553
million a year ago. The year-over- year deterioration primarily
reflected the non-recurrence of last year's tax- related
interest.
Financial Services Sector
For the third quarter, the Financial Services sector earned a
pre-tax profit of US$556 million, compared with a pre-tax profit
of US$750 million a year ago.
Ford Motor Credit Company: On a pre-tax basis from continuing
operations, Ford Motor Credit Company earned US$546 million in
the third quarter compared with US$730 million in the previous
year. The decrease in earnings was more than explained by the
non-recurrence of prior-year credit loss reserve reductions,
higher depreciation expense for leased vehicles and higher
borrowing costs.
Outlook
The company is ahead of its 2007 plan both on a pre-tax and net
income basis, and anticipates substantial year-over-year
improvement in fourth quarter results. Fourth quarter
Automotive and company pre-tax results are expected to be a
loss, more than explained by North America. Full-year pre-tax
results excluding special items are expected to be in the range
of a small loss to breakeven, which would be a significant
improvement from a year ago.
Excluding gains or losses from future divestitures, special
items for full-year 2007 are expected to be a charge in the
range of US$1 billion to US$2 billion, including a one-time,
non-cash charge estimated to be approximately US$1.4 billion
relating to a proposed change in business practice for offering
and announcing retail variable marketing incentives to our
dealers.
Ford Motor Credit expects to earn US$1.3 billion to US$1.4
billion this year on a pre-tax basis, excluding the impact of
gains and losses related to market valuation adjustments from
derivatives, consistent with the previous estimate.
Looking ahead, the company's progress in 2007 reflects it is on
track to meet its goal of being profitable in North America and
Total Automotive in 2009. The company also is on track to meet
its North American cost reduction target of US$5 billion by 2008
as compared with 2005. Progress is being made on achieving U.S.
market share goals, and the company is ahead of its US$17
billion cash outflow target for the 2007 to 2009 period.
"Our third-quarter and year-to-date performance indicate that
our plan is working," said Mr. Mulally. "Our full-year pre-tax
outlook excluding special items is to be substantially better
than 2006. We remain committed to improving our business and
delivering our plan."
About Ford
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F)
-- http://www.ford.com/-- manufactures or distributes
automobiles in 200 markets across six continents. With about
260,000 employees and about 100 plants worldwide, the company's
core and affiliated automotive brands include Ford, Jaguar, Land
Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The
company provides financial services through Ford Motor Credit
Company.
The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom. The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 7, 2007, Standard & Poor's Ratings Services said its 'B'
long-term corporate credit rating on Ford Motor Co. and Ford
Motor Credit Co. remains on CreditWatch with positive
implications, following the agreement between Ford and the
United Auto Workers of a new labor contract.
FORD MOTOR CREDIT: Earns US$334 Million in Third Quarter
--------------------------------------------------------
Ford Motor Credit Company has reported net income of US$334
million in the third quarter of 2007, down US$118 million from
earnings of US$452 million a year earlier. On a pre-tax basis
from continuing operations, Ford Motor Credit earned US$546
million in the third quarter compared with US$730 million in the
previous year. The decrease in earnings primarily reflected the
non-recurrence of credit loss reserve reductions, higher
depreciation expense for leased vehicles and higher borrowing
costs.
In the third quarters of 2007 and 2006, pre-tax earnings were
US$341 million and US$521 million, excluding the net gains
related to market valuation adjustments from derivatives, which
were US$205 million and US$209 million, respectively.
Ford Motor Credit expects to earn on a pre-tax basis US$1.3
billion to US$1.4 billion this year, excluding the impact of
gains and losses related to market valuation adjustments from
derivatives, consistent with the previous estimate.
"Our sound risk management practices, high-quality portfolio,
strong liquidity and ongoing restructuring continue to produce
solid operating results," said Mike Bannister, chairman and
Chief Executive Offcier. "As we effectively execute the
fundamentals of the business, we remain on track to meet our
earnings outlook."
On Sept. 30, 2007, Ford Motor Credit's on-balance sheet net
receivables totaled US$141 billion, compared with US$135 billion
at year-end 2006. Managed receivables were US$148 billion,
largely unchanged compared with Dec. 31, 2006.
On Sept. 30, 2007, managed leverage was 10.1 to 1.
About Ford Motor Credit
Ford Motor Credit Co. -- http://www.fordcredit.com/-- is an
automotive finance company, which has supported the sale of Ford
products since 1959. With about 14,000 employees, Ford Motor
Credit operates in 36 countries including Brazil and Mexico in
Latin America. Ford Motor Credit is an indirect wholly owned
subsidiary of Ford Motor Company. It provides automotive
financing for Ford, Lincoln, Mercury, Aston Martin, Jaguar, Land
Rover, Mazda and Volvo dealers and customers.
* * *
As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed lowered Ford Motor Credit
Co.'s long-term debt rating to BB(low) from BB, and confirmed
Ford Credit's short-term debt rating at R-3(high).
Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Credit to 'B' from 'B+'. Fitch also lowered Ford Credit's
senior unsecured rating to 'BB-/RR2' from 'BB/RR2'. Fitch said
the rating outlook remains negative.
Standard & Poor's Ratings Services also placed its 'B+' long-
term and 'B-2' short-term ratings on Ford Motor Credit, and
related entities on CreditWatch with negative implications.
As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the senior unsecured rating of
Ford Motor Credit to Ba3 from Ba2. Moody's said the outlook for
the ratings is negative.
GENERAL MOTORS: Credit Suisse Maintains Neutral Rating on Firm
--------------------------------------------------------------
Credit Suisse analyst C. Ceraso has kept his "neutral" rating on
General Motors Corp.'s shares, Newratings.com reports.
Newratings.com relates that the target price for General Motors'
shares was decreased to US$36 from US$43.
Mr. Ceraso said in a research note that General Motors posted
net losses of US$69 per share in the third quarter 2007.
General Motors' "underlying automotive operating results" in the
third quarter 2007 were better compared to the "headline net
losses," Newratings.com notes, citing Mr. Ceraso.
General Motors told Newratings.com that next year would be a
difficult year for the firm due to:
-- increased pension expense,
-- unstable income stream from unit GMAC,
-- a weaker mix,
-- flat or reduced volumes, and
-- no tax shield in the US.
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. S&P said the outlook is stable.
GENERAL MOTORS: Posts US$39 Billion Net Loss in Third Quarter
-------------------------------------------------------------
General Motors Corp. disclosed Wednesday its financial results
for the third quarter of 2007.
GM reported a net loss of US$39 billion, including Allison
Transmission, which is classified as a discontinued operation,
for the third quarter of 2007, compared with a reported net loss
of US$147 million in the year-ago quarter.
Special items included a net non-cash charge of US$38.6 billion
due to a valuation allowance against deferred tax assets related
to operations in the U.S., Canada and Germany as required under
SFAS No. 109, Accounting for Income Taxes. Also included was a
favorable US$3.5 billion after-tax gain on the sale of the
Allison Transmission business in August 2007, for which GM
received US$5.4 billion in proceeds. GM also had special
charges of US$1.6 billion in pension service costs related to
prior labor agreements, US$400 million associated with
restructuring actions and US$400 million related to an
adjustment to the Delphi reserve.
Excluding special items, GM had a 2007 third-quarter adjusted
net loss of US$1.6 billion, compared to net income of US$497
million in the year-ago quarter. The variance was driven
primarily by a significant decline in net income at GMAC, as
well as increased corporate expense related to legacy cost,
foreign exchange and various 2006 tax benefits, partially offset
by improved performance in automotive operations.
"We continue to implement the key elements of our North America
turnaround strategy, and these initiatives are driving steady
improvement in our financial results, despite challenging North
America market conditions. In addition, we are very encouraged
by our performance in emerging markets. Our record third
quarter global sales are strong evidence that our commitment to
great cars and trucks is being embraced by consumers around the
globe." said Rick Wagoner, GM chairman and chief executive
officer.
The company's improved performance in its automotive operations
was more than offset by special charges of US$37.4 billion
related largely to a previously announced valuation allowance
against its deferred tax assets, as well as lower reported GMAC
Financial Services income, down US$630 million versus the year-
ago quarter as a result of continued pressures in the mortgage
industry.
GM Automotive Operations
GM's global automotive operations posted net income of
US$122 million from continuing operations on an adjusted basis
in the third quarter of 2007 (reported net loss of US$40.6
billion), an improvement of US$577 million compared to an
adjusted net loss from continuing operations of US$455 million
(reported net loss of US$401 million) in the same quarter 2006.
Results for GM's automotive operations, specifically GMNA,
exclude Allison Transmission, which was classified as a
discontinued operation as a result of the sale of that business
which was concluded in August 2007.
GM generated record third quarter automotive revenue of
US$43.1 billion. The company also achieved record global third
quarter sales of 2.39 million cars and trucks, up 4% compared to
the third quarter 2006, driven by exceptionally strong demand in
emerging markets and improved performance in developed markets.
GM also set a number of third quarter sales records around the
globe, including a 22% increase in GMLAAM, 16% increase in the
GMAP region, and 15% gain in GME.
"We continue to see solid progress in the fundamentals of our
automotive business. We're very pleased with our strong sales
performance in key markets outside of North America, and growing
retail momentum in the U.S. driven by products like the all-new
Cadillac CTS. We're also very encouraged by the early reactions
to our all-new Chevrolet Malibu and 2008 Chevrolet Tahoe and GMC
Yukon two-mode hybrids -- the world's only full-size hybrid
SUVs," said Wagoner.
GMNA had an adjusted net loss from continuing operations of
US$247 million in the third quarter 2007 (reported net loss from
continuing operations of US$38.2 billion, which includes charges
of approximately US$36.5 billion for a valuation allowance
against its deferred tax assets and US$1.3 billion for pension
service costs related to prior labor agreements), compared to an
adjusted net loss of US$660 million from continuing operations
in the third quarter 2006 (reported net loss from continuing
operations of US$667 million). GMNA's improved adjusted
earnings reflect favorable mix, pricing and better warranty
performance, which were partially offset by lower volume and
increased material cost.
GME posted an adjusted net loss of US$90 million in the third
quarter (reported net loss of US$2.9 billion, which includes
charges of US$2.5 billion for a valuation allowance against
deferred tax assets in Germany and restructuring charges of
US$262 million), compared to US$39 million loss in the third
quarter of 2006 (reported net loss of US$126 million). The
variance in adjusted net income reflects the softness of the
German market and unfavorable currency exchange, which was
partially offset by improved pricing and higher volume.
GME achieved record third quarter sales of about 524,000 units,
aided by continued momentum of GME's multi-brand strategy during
the period. Chevrolet is amongst the fastest growing global
vehicle brands in Europe, posting record third quarter sales of
113,000 vehicles. GM gained further ground in the growing
Russian market, with sales up by 75% over the same quarter 2006,
to a record 65,700 vehicles.
GMAP recorded adjusted net income of US$138 million in the third
quarter (reported net income also US$138 million), compared with
US$57 million in the year ago period (reported net income of
US$205 million, which included US$148 million in favorable tax-
related items). This favorable earnings performance was driven
largely by strong export growth from GM Daewoo, continued strong
sales and profitability in China, and improved earnings in India
and Australia.
GM achieved 16% sales growth in the Asia Pacific region,
resulting in record third quarter sales of 327,500 units. GM
China sold 230,000 vehicles, a 21% increase compared with the
year ago period. GM sales in the region were also aided by the
strong performance of GM Daewoo products, including the
Chevrolet Captiva.
GMLAAM achieved all-time record earnings and quarterly sales in
the third quarter, posting adjusted earnings of US$340 million
(reported net income also US$340 million), up 86% compared with
strong earnings in the year ago period of US$183 million
(reported net income also US$183 million). The earnings
improvement was driven primarily by volume growth, favorable
pricing and vehicle mix.
GMLAAM set a third quarter sales record of over 329,000
vehicles, up almost 22% year-over-year. All-time sales records
were achieved in Brazil, Colombia, Venezuela, Argentina and
Egypt. The successful launch of the Chevrolet Captiva in South
Africa, Venezuela, Colombia and the Middle East helped drive
strong sales in the region.
GMAC
As a standalone company, GMAC Financial Services reported a net
loss of US$1.6 billion for the third quarter 2007, compared to a
net loss of US$173 million in the third quarter 2006. The
reported results for the third quarter of 2007 included a US$455
million goodwill impairment charge at Residential Capital LLC,
while a goodwill impairment charge of US$695 million related to
GMAC Commercial Finance was reflected in results for the third
quarter of 2006.
Results were dominated by the effects of the dislocation in the
mortgage and credit markets on the real estate finance business,
which more than offset the continued strong performance at
GMAC's automotive finance, insurance and other operations.
GM recognized US$757 million of the net loss attributable to
GMAC as a result of its 49% equity interest and accrued
preferred dividends (reported net loss of US$803 million).
Cash and Liquidity
GM continues to have a strong liquidity position. Cash,
marketable securities, and readily-available assets of the
Voluntary Employees' Beneficiary Association trust grew to
US$30 billion as of Sept. 30, 2007, up from US$27.2 billion on
June 30, 2007. The balance includes US$5.4 billion of net cash
proceeds from the completion of the Allison Transmission
transaction in August 2007.
GM had negative adjusted automotive operating cash flow of
US$2.5 billion in the third quarter of 2007, improved from a
negative US$3.9 billion in the third quarter 2006.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. S&P said the outlook is stable.
GEOKINETICS INC: Closes US$25MM Capital Lease Facility with CIT
---------------------------------------------------------------
Geokinetics Inc. has closed a new US$25 million capital lease
facility with CIT Group/Equipment Financing, Inc. This facility
adds US$25 million of additional capacity to the company's
existing capital lease with CIT that closed on July 25, 2006 for
an original amount of US$6 million.
Richard Miles, President and Chief Executive Officer of
Geokinetics, said: "I am happy to report the expansion of our
relationship with CIT. This facility will serve as a major
cornerstone for the future growth of Geokinetics. We have
recently experienced record levels of backlog and that, along
with ever-increasing demand from our customers to deliver world-
class data in some of the world's toughest environments, has
fueled our significant capital investment program for this year.
This facility will help us to finance our equipment on a long-
term basis and support our growth plans going forward."
About Geokinetics Inc.
Headquartered in Houston, Texas, Geokinetics Inc. --
http://www.geokineticsinc.com/-- is a global leader of seismic
acquisition and high-end seismic data processing and
interpretation services to the oil and gas industry.
Geokinetics provides seismic data acquisition services in North
America, Indonesia, Norway and Brazil. Geokinetics operates in
some of the most challenging locations in the world from the
Arctic to mountainous jungles to the transition zone
environments.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 23, 2007, Moody's Investors Service has withdrawn all the
ratings for Geokinetics Inc. following the company's redemption
of all of its rated bonds with the proceeds of an equity
offering. Moody's does not rate any other debt for Geokinetics.
The ratings withdrawn are the B3 corporate family rating and
probability of default rating, the SGL-3 speculative liquidity
rating and the B3, LGD4 (53%) rating on the US$110 million
second priority senior secured floating rate notes due 2012.
IWT TESORO: Court Approves Donlin Recano as Claims Agent
--------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
New York authorized I.W.T Tesoro Corporation and its debtor-
affiliates to employ Donlin, Recano & Company Inc. as their
claims, notice, and balloting agent.
In their application, the Debtors told the Court that they have
over a thousand creditors and other potential parties-in-
interest. The Debtors believe that the bankruptcy clerk's
office is not equipped to distribute notices, process all of the
proofs of claim filed, and assist in the balloting process for
the Debtors' large case, thus the need to hire Donlin Recano.
Specifically, Donlin Recano is expected to:
a. notify all potential creditors of the filing of the
Debtors' bankruptcy petitions and of the setting of the
first meeting of creditors, pursuant to Bankruptcy Code
Section 341(a);
b. maintain an official copy of the Debtors' schedules of
assets and liabilities and statement of financial affairs
listing the Debtors' known creditors and the amounts the
Debtors owe;
c. notify all potential creditors of the existence and
amount of their respective claims, as evidenced by the
Debtors' books and records and as set forth in their
schedules;
d. furnish a notice of the last day for the filing of proofs
of claim and a form for the filing of a proof of claim,
after the notice and the form are approved by the Court;
e. file with the Clerk an affidavit or certificate of
service which includes a copy of the notice, a list of
persons to whom it was mailed (in alphabetical order),
and the date the notice was mailed, within 10 days of
service;
f. docket all claims received, maintain the official cliams
registers for each of the Debtors on behalf of the Clerk,
and provide the Clerk with certified duplicate unofficial
claims registers on a monthly basis, unless otherwise
directed;
g. specify, in the applicable claims register, these
information for each claim docketed:
i. the claim number assigned;
ii. the date received;
iii. the name and address of the claimant and agent, if
applicable, who filed the claim;
iv. the filed amount of the claim, if liquidated; and
v. the classification of the claim according to the
proof of claim;
h. relocate, by messenger, all of the actual proofs of claim
filed to Donlin Recano, not less than weekly;
i. record all transfers of claims and provide any notices of
the transfers required by Bankruptcy Rule 3001;
j. make changes in the claims register pursuant to Court
Order;
k. upon completion of the docketing process for all claims
received to date by the Clerk's Office, turn over to the
Clerk copies of the claims registers for the Clerk's
review;
l. maintain the claims register for public examination
without charge during regular business hours;
m. maintain the official mailing list for each Debtor of all
entities that have filed a proof of claim, which list
will be available upon request by a party-in-interest or
the Clerk;
n. assist with, among other things, solicitation,
calculation, and tabulation of votes and distribution, as
required in furtherance of confirmation of the plan;
o. provide and maintain a Web site where parties can view
claims filed, status of claims, and pleadings or other
documents filed with the Court by the Debtors;
p. in 30 days prior to the close of the cases, an order
dismissing Donlin Recano would be submitted terminating
its services upon completion of its duties and
responsibilities and upon the closing of the case; and
q. at the close of the case, box and transport all original
documents in proper format, as provided by the Clerk's
office, to the Federal Records Center.
In addition, the Debtors may utilize other services of Donlin
Recano like disbursing and related administrative services upon
request.
Donlin Recano's schedule of services and their specific fees
are:
Type of Service Hourly Rate
--------------- -----------
Date Input
Clerical US$35
Admin. Proj. Specialist US$65
Consulting
Bankruptcy Consultant US$130 - US$195
IT Programming Consultant US$115 - US$135
Attorneys/Sr. Consultant US$200 - US$250
The Debtors paid Donlin Recano a US$5,000 retainer.
The Debtors assured the Court that Donlin Recano neither holds
nor represents any interest adverse to the Debtors' respective
estates.
The firm can be reached at:
Donlin Recano & Company, Inc.
419 Park Avenue South
New York, NY 10016
Tel: (212) 481-1411
Fax: (212) 481-1416
http://www.donlinrecano.com/
I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, --
http://www.iwttesoro.com/-- is headquartered in New York City.
The company and its subsidiaries distribute building materials,
specifically hard floor and wall coverings. They are
wholesalers and do not sell directly to any end user. Their
products consist of ceramic, porcelain and natural stone floor,
wall and decorative tile. They import a majority of these
products from suppliers and manufacturers in Europe, South
America (Brazil), and the Near and Far East. Their markets
include the United States and Canada. They also offer private
label programs for branded retail sales customers, buying
groups, large homebuilders and home center store chains.
The Debtor and its debtor-affiliates, International Wholesale
Tile, Inc. and American Gres, Inc., filed for Chapter 11
bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead Case
No. 07-12841). Dawn K. Arnold, Esq. and Jonathan S. Pasternak,
Esq. at Rattet, Pasternak & Gordon-Oliver, L.L.P. represent the
Debtors in their restructuring efforts. Donlin, Recano & Co.,
Inc. serves as the Debtors' claims and noticing agent. An
Official Committee of Unsecured Creditors has been appointed by
the U.S. Trustee for Region 2 on this case. As of
June 30, 2007, the Debtors had total assets of US$39,798,579 and
total debts of US$47,940,983.
IWT TESORO: Brings In Rader & Coleman as Special Counsel
--------------------------------------------------------
I.W.T. Tesoro Corporation and its debtor-affiliates obtained
authority from the U.S. Bankruptcy Court for the Southern
District of New York to employ Rader & Coleman, P.L. as their
special counsel.
Rader & Coleman is expected to perform legal services including:
a. the supervision and assistance with the preparation of
all SEC filings;
b. communication with the SEC on behalf of the Debtors;
c. working with the Debtors' auditors and financial
management to prepare all necessary books and records as
well as certain required filings;
d. aiding the Debtors' counsel, to the extent necessary,
with any negotiations involving the secured lenders and
consult with the Debtors and their counsel with respect
to any corporate governance or structure issues which may
arise.
In the event that the Debtors go forward with a particular
reorganization transaction, Rader & Coleman will assist in
strategy, structure and documentation required for such a
transaction.
The Debtors propose to pay Rader & Coleman its customary hourly
rates that ranges from US$275 to US$350 per hour for attorneys
and US$120 per hour for paraprofessionals. Gayle Coleman, Esq.,
will continue to be primarily responsible for the legal needs of
the Debtors, and will charge the Debtors US$275 per hour.
The Debtors disclosed that Rader & Coleman has represented the
Debtors since June 2002 and was counsel to Debtor, IWT Tesoro
Corporation when it acquired International Wholesale Tile Inc.
The Debtors believe that the retention of Rader & Coleman is
essential to the efficient and successful administration of
their Chapter 11 cases and that it is in the best interests of
the creditors that Rader & Coleman continue to represent the
Debtors.
The firm can be reached at:
Gayle Coleman, Esq.
Rader & Coleman, P.L.
2101 Northwest Boca Raton Boulevard, Suite 1
Boca Raton, Florida 33431
Tel: (561) 368-0545
Fax: (561) 367-1725
http://www.raderandcoleman.com/
I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, --
http://www.iwttesoro.com/-- is headquartered in New York City.
The company and its subsidiaries distribute building materials,
specifically hard floor and wall coverings. They are
wholesalers and do not sell directly to any end user. Their
products consist of ceramic, porcelain and natural stone floor,
wall and decorative tile. They import a majority of these
products from suppliers and manufacturers in Europe, South
America (Brazil), and the Near and Far East. Their markets
include the United States and Canada. They also offer private
label programs for branded retail sales customers, buying
groups, large homebuilders and home center store chains.
The Debtor and its debtor-affiliates, International Wholesale
Tile, Inc. and American Gres, Inc., filed for Chapter 11
bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead Case
No. 07-12841). Dawn K. Arnold, Esq. and Jonathan S. Pasternak,
Esq. at Rattet, Pasternak & Gordon-Oliver, L.L.P. represent the
Debtors in their restructuring efforts. Donlin, Recano & Co.,
Inc. serves as the Debtors' claims and noticing agent. An
Official Committee of Unsecured Creditors has been appointed by
the U.S. Trustee for Region 2 on this case. As of
June 30, 2007, the Debtors had total assets of US$39,798,579 and
total debts of US$47,940,983.
IWT TESORO: Hires Rattet Pasternak as Bankruptcy Counsel
--------------------------------------------------------
I.W.T. Tesoro Corporation and its debtor-affiliates obtained
authority from the U.S. Bankruptcy Court for the Southern
District of New York to hire Rattet, Pasternak & Gordon-Oliver,
L.L.P. as their bankruptcy counsel.
Rattet Pasternak is expected to:
a. advice the Debtors with respect to their powers and
duties as debtors-in-possession and the continued
management of their property and affairs;
b. negotiate with creditors of the Debtors and work out a
plan of reorganization and take the necessary legal steps
in order to effectuate a plan including negotiations with
the creditors and other parties in interest;
c. prepare the necessary answers, orders, reports and other
legal papers required of a Debtor who seeks protection
under Chapter 11;
d. appear before the Court to protect the interest of the
Debtors and to represent the Debtors in all matters
pending before the Court;
e. attend meetings and negotiate with representatives of
creditors and other parties in interest;
f. advise the Debtors in connection with any potential
refinancing of secured debt and any potential sale of the
business;
g. represent the Debtors in connection with obtaining post-
petition financing;
h. take any necessary action to obtain approval of a
disclosure statement and confirmation of a plan of
reorganization;
i. perform all other legal services for the Debtors which
may be necessary for the preservation of the Debtors'
estate and to promote the best interests of the Debtors,
their creditors and its estate.
The Debtors will pay Rattet Pasternak on an hourly basis
according to these rates:
Designation Hourly Rate
----------- -----------
Partners US$415 - US$550
Counsel US$140
Associates US$250 - US$385
Paraprofessionals US$120
To the best of the Debtors' knowledge, the firm is a
disinterested person and does not hold or represent any interest
adverse to the Debtors' estates.
The firm can be reached at:
Rattet, Pasternak & Gordon-Oliver, L.L.P.
550 Mamaroneck Avenue
Harrison, NY 10528
Tel: (914) 381-7400
Fax: (914) 381-7406
I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, --
http://www.iwttesoro.com/-- is headquartered in New York City.
The company and its subsidiaries distribute building materials,
specifically hard floor and wall coverings. They are
wholesalers and do not sell directly to any end user. Their
products consist of ceramic, porcelain and natural stone floor,
wall and decorative tile. They import a majority of these
products from suppliers and manufacturers in Europe, South
America (Brazil), and the Near and Far East. Their markets
include the United States and Canada. They also offer private
label programs for branded retail sales customers, buying
groups, large homebuilders and home center store chains.
The Debtor and its debtor-affiliates, International Wholesale
Tile, Inc. and American Gres, Inc., filed for Chapter 11
bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead Case
No. 07-12841). Dawn K. Arnold, Esq. and Jonathan S. Pasternak,
Esq. at Rattet, Pasternak & Gordon-Oliver, L.L.P. represent the
Debtors in their restructuring efforts. Donlin, Recano & Co.,
Inc. serves as the Debtors' claims and noticing agent. An
Official Committee of Unsecured Creditors has been appointed by
the U.S. Trustee for Region 2 on this case. As of
June 30, 2007, the Debtors had total assets of US$39,798,579 and
total debts of US$47,940,983.
MYERS INDUSTRIES: Earns US$1.5 Million in Third Quarter of 2007
---------------------------------------------------------------
Myers Industries Inc. reported net income of US$1.5 million for
the third quarter ended Sept. 30, 2007, compared to net income
of US$6 million for the same period in 2006.
Net sales from continuing operations for the three months ended
Sept. 30, 2007, increased 15 percent to US$213.9 million, as
compared to net sales from continuing operations of US$185.8
million reported for the third quarter ended Sept.r 30, 2006.
Net sales in the third quarter of 2007 include net sales of
approximately US$29.5 million from the acquisition of ITML
Horticultural Products, which was completed in January 2007, and
net sales of approximately US$8.0 million from the purchase of
material handling product lines and assets from Schoeller Arca
Systems, Inc. North America, which was completed in March 2007.
Net sales from continuing operations, excluding the
acquisitions, decreased by approximately US$9.4 million in the
third quarter of 2007 as compared to the third quarter of 2006.
Net sales in the third quarter 2007 benefited from the ongoing,
strategic integration of the acquisitions, which helped to
offset the softness in industrial, manufacturing, automotive,
heavy truck and tire service markets.
Income before taxes from continuing operations for the third
quarter of 2007 was US$2.5 million compared to US$6.9 million in
the third quarter of 2006. The US$4.4 million decrease in
income before taxes from continuing operations in the third
quarter of 2007 was primarily the result of:
1) restructuring expenses and the impact of purchase
accounting adjustments aggregating approximately US$2.3
million;
2) foreign currency transaction losses of approximately
US$1.3 million related to the increased strength of
Canadian currency compared with U.S. currency; and
3) expenses of approximately US$1.1 million related to the
company's merger transaction.
These special items, combined with decreased volume in the
quarter due to soft market conditions, offset the company's
rigorous application of strategic selling and pricing
initiatives to recover raw material inflation, as well as gains
from cost control, productivity and further streamlining
initiatives directed at long-term growth.
Income from continuing operations for the third quarter of 2007
was US$1.5 million as compared to US$4.2 million in the third
quarter of 2006.
"Third quarter sales and earnings were well within our
expectations given the Company's transformation this year,
despite the challenging conditions in some of the markets we
serve," said President and Chief Executive Officer John C. Orr.
"The most critical factor in our performance is that we continue
to execute our strategic business plan to drive sustainable,
profitable growth. So far this year we have made two key
acquisitions, divested a non-strategic business segment, and are
working through several major plant consolidation and
integration activities. All of these actions, combined with the
Company's strong business fundamentals, put us on track to
optimize our growth."
Summary & Outlook
Results in the Company's 2007 third quarter were mixed but
expected, as seasonality, softness across several markets and
increasing resin prices combined to constrain benefits from
improvements made through product mix, pricing, strategic
selling, acquisition integration and synergy programs throughout
the business segments. The company is cautiously optimistic in
its outlook for the remainder of 2007 and moving into 2008,
given the market conditions. However, within its key business
segments the Company remains focused on its strategic business
plan and growth activities to further insulate against shifts in
the markets and macro-economic conditions. These activities
include new product development, expansion into value-driven
niche markets, customer satisfaction and improved cost
structures through streamlining and productivity enhancements.
Management believes that attention to these actions and other
initiatives will continue to position Myers Industries for
sustainable, profitable growth.
Merger Transaction
The company's acquisition by GS Capital Partners is expected to
close in the fourth quarter of 2007, but no later than
Dec. 15, 2007, as provided for in the Agreement and Plan of
Merger. Both parties continue to work together in preparation
for closing of the transaction.
About Myers Industries
Myers Industries, Inc. -- http://www.myersind.com-- is an
international manufacturer of polymer products for industrial,
agricultural, automotive, commercial, and consumer markets. The
Company is also the largest wholesale distributor of tools,
equipment, and supplies for the tire, wheel, and undervehicle
service industry in the US. The company reported record net
sales from continuing operations of USUS$780.0 million in 2006.
It has operations in Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 19, 2007, Standard & Poor's Ratings Services withdrew all
ratings on Myers Industries Inc. The withdrawal follows the
announcement that private equity sponsor Goldman Sachs Capital
Partners would postpone the closing of its acquisition of Myers
until the fourth quarter.
TAM SA: Gets Third Airbus A321, Increases Fleet to 111 Aircraft
---------------------------------------------------------------
TAM SA has received a new Airbus A321 last week directly from
the Airbus factory in Hamburg (Germany). This is the third A321
incorporated by the company into its operating fleet. The A321
has capacity to transport up to 220 passengers and will be used
by TAM on domestic and South American routes.
With this new aircraft, TAM will have 95 Airbus models (15 A319,
66 A320, 3 A321, 10 A330 and 1 A340), consolidating its position
as the largest Latin American customer of the European aircraft
manufacturer. The A321 is the largest in the A320 family (A318,
A319, A320 and A321) and adequate for high-demand markets for
mid-size airplanes. TAM is the first company in South America
to operate flights using the A321.
TAM already has received 22 aircraft this year - 18 from the
A320 family (including the three A321s), 1 A340 and three MD-
11s. With the new A321, the Company's operating fleet increased
to 111 aircraft -- 95 Airbus models, 13 F-100s and 3 MD-11s.
The company plans to end 2007 with 111 airplanes and has plans
to expand the fleet to 136 airplanes by the end of 2011. The
incorporation of the new Airbus A321 reinforces
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.
TOWER AUTO: Names New President for International Operations
------------------------------------------------------------
Tower Automotive has named Dr. Gyula Meleghy to the newly
created position of President, International Operations.
Effective immediately, Meleghy will lead all Tower businesses in
Europe, South America and Asia. He will report directly to Mark
Malcolm, President and CEO of "Gyula's broad business experience
and his passion for our customers, colleagues, and products make
him the perfect choice to lead our International Operations into
the future," said Malcolm.
Said Dr. Meleghy, "In our highly competitive and rapidly
changing industry, Tower is dedicated to achieving long-term
profitable growth through customer satisfaction. Our local and
cross-regional capabilities make us a formidable global force.
I could not be more excited about Tower's direction and I
welcome the opportunity to contribute to an even brighter future
for Tower customers and team members."
President of Tower's Asia operations since July 2006, Dr. Gyula
Meleghy has more than 20 years of technical and commercial
experience in the automotive supplier industry. Previously, he
held senior leadership positions at Tower including President,
Europe and South America; Chief Operating Officer Europe; and
Vice President, Europe Customer Service.
Before joining Tower Automotive in 2000, Meleghy was president
of The Dr. Meleghy Group, an automotive supplier based in
Bergisch Gladbach, Germany. Dr. Meleghy holds a Ph.D. in
business from the University of Cologne.
Simultaneously, Tower announced that Vincent Pairet, President,
Europe and South America since July 2006, is leaving the
company. "We thank Vincent Pairet for his able leadership and
wish him every success in his future endeavors," Malcolm said.
About Tower Automotives
Headquartered in Grand Rapids, Michigan, Tower Automotive Inc.
-- http://www.towerautomotive.com/-- (OTC Bulletin Board:
TWRAQ) is a global designer and producer of vehicle structural
components and assemblies used by every major automotive
original equipment manufacturer, including BMW, DaimlerChrysler,
Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen
and Volvo. Products include body structures and assemblies,
lower vehicle frames and structures, chassis modules and
systems, and suspension components. The company has operations
in Korea, Spain and Brazil.
The company and 25 of its debtor-affiliates filed voluntary
chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No.
05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan
B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and
Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent
the Debtors in their restructuring efforts. Ira S. Dizengoff,
Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the
Official Committee of Unsecured Creditors. When the Debtors
filed for protection from their creditors, they listed
US$787,948,000 in total assets and US$1,306,949,000 in total
debts.
On May 1, 2007, the Debtors filed their Chapter 11 Plan of
reorganization and Disclosure Statement explaining that plan.
On June 4, 2007, the Debtors submitted an Amended Plan and
Disclosure Statement. The Court approved the adequacy if the
Amended Disclosure Statement on June 5, 2007.
The company and its debtor subsidiaries' First Amended Joint
Plan of Reorganization became effective July 31, 2007.
UNIAO DE BANCOS: Net Income Up 123.3% to BRL2,621 Million in 3Q
----------------------------------------------------------------
Uniao de Bancos Brasileiros S.A.'s net income reached BRL2,621
million in 9M07 and BRL1,199 million in the third quarter of
2007, up 123.3% and 42.6% when compared to E9M06 and second
quarter of 2007, respectively. Excluding the result from non-
recurring events in the third quarter of 2007, net income was
BRL667 million in the quarter, a 17.8% growth from the third
quarter of 2006.
Stockholders' equity was BRL11,593 million on Sept. 30, 2007, up
20.6% from Sept. 30, 2006. Annualized return on average equity
reached 50.2% in the third quarter of 2007 and 33.7% in 9M07.
Excluding the result from non-recurring events, return on
average equity was 26.5% in the third quarter of 2007 and 24.5%
in 9M07.
Unibanco's total assets reached BRL133,925 million, up 31.4%
when compared to Sept. 30, 2006. It is worth mentioning the
BRL12.6 billion increase in total loans.
The loan portfolio reached BRL55,902 million in September 2007,
up 8.2% in the quarter and 29.0% in the past 12 months. Retail
portfolio increased 12.1% in the third quarter of 2007, with
highlight for growth in payroll loans, up 31.2%, car loans,
24.6%, and SMEs, 12.1%. Wholesale portfolio grew 2.7% in the
quarter and 13.7% in the last 12 months, despite the US dollar
depreciation of 4.5% and 15.4% in the respective periods.
The Unibanco's risk management policy, along with an increase in
lower risk portfolios, has provided a continuous asset quality
improvement, reflected on the 13.8% reduction in provision for
loan losses, 9M07 vis-a-vis 9M06, and on the D to H portfolio
ratio reduction, to 4.9% in September 2007 from 6.7% in
September 2006.
Unibanco's total personnel and administrative expenses decreased
1.4% in the third quarter of 2007 vis-a-vis 3Q06 and increased
2.6% in 9M07 from 9M06. This is largely due to efficiency gains
and budgetary discipline.
Unibanco remains satisfied and confident with the ongoing
results and the continuous improvement of its performance.
About Unibanco
Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros
SA -- http://www.unibanco.com/-- is a full-service financial
institution providing a range of financial products and services
to a diversified individual and corporate customer base
throughout Brazil. The company's businesses comprise segments:
Retail, Wholesale, Insurance and Pension Plans and Wealth
Management. Uniao de Bancos and its associated companies
FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas)
offer a network composed of 17,000 points of service. It also
counts on 7,580 automated teller machines and all 30 Hours'
products and services, including the telephone service and the
Internet banking. The company's international network consists
of branches in Nassau and the Cayman Islands; representatives
offices in New York; banking subsidiaries in Luxembourg, the
Cayman Islands and Paraguay; and a brokerage firm in New York --
Unibanco Securities Inc.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 17, 2007, Fitch Ratings upgraded these ratings of Unibanco-
Uniao de Bancos Brasileiros S.A.:
-- Foreign currency IDR upgraded to 'BBB-' from 'BB+'
-- Short-term foreign currency upgraded to 'F3' from 'B'
-- Local currency IDR affirmed at 'BBB-'
-- Short-term local currency affirmed at 'F3'
-- Individual rating affirmed at 'C'
-- Support rating affirmed at '4'
-- National Long-term rating upgraded to 'AA+(bra)'
-- National Short-term rating affirmed at 'F1+(bra)'
Fitch said the outlook is stable.
XERIUM TECH: Earns US$7.1 Million in Third Qtr. Ended Sept. 30
--------------------------------------------------------------
Xerium Technologies Inc. reported financial results for the
third quarter ended Sept. 30, 2007. Net sales for the third
quarter of 2007 were US$153.6 million, a 5.6% increase from
US$145.5 million for the third quarter of 2006.
For the three months ended Sept. 30, 2007, the company recorded
net income of US$7.1 million compared to US$2.2 million for the
third quarter of 2006.
Thomas Gutierrez, President and Chief Executive Officer of
Xerium Technologies, said, "We continue to make meaningful
progress as we work to strengthen our core businesses and
position Xerium for future growth. Our clothing business
demonstrated exceptional, broad-based growth this quarter, with
sales increasing 11.6% over the same period last year. Even
more importantly, as a result of numerous programs we initiated
to drive efficiencies and reduce costs, segment earnings for
clothing grew at almost double the rate of sales growth,
improving 22.5% over the same period."
"As we have described in previous quarters, the roll covers
business continues to face a number of challenges that have
limited our ability to generate sales increases. These factors
led to a decline in roll covers sales of 5.2% for the third
quarter of 2007 compared to the same quarter last year. We
have, however, made progress offsetting the bottom-line impact
of sales declines with programs aimed at reducing costs, and I
am pleased that we were able to generate segment earnings this
quarter in line with the prior year period."
He added, "With our cost structure improvement initiatives well
under way, we are also focusing on initiatives designed to
accelerate growth prospects for Xerium. These efforts include
regional expansion in higher-growth areas of the world,
improving our access to these markets and enabling us to shift
production from higher-cost locations. In clothing, the
expansion of our South American capabilities and building of a
new manufacturing facility in Vietnam remain on track. For our
roll covers business, we continue to expect to establish a
physical presence in China by mid-2008, opening up a larger
market opportunity for Xerium."
Mr. Gutierrez concluded, "We remain cautious about market
conditions as consolidation amongst our customers continues and
the competitive environment, particularly in Western Europe, is
still challenging. We are confident that our strategy clearly
addresses not only these concerns, but also positions us to
capitalize upon the opportunities available to a company with
Xerium's technological leadership, exceptional customer
relationships and strong market position. We believe we have a
solid framework for future growth."
Headquartered in Wesborough, Massachusetts, Xerium Technologies,
Inc. -- http://xerium.com/-- manufactures and supplies two
types of products used primarily in the production of paper:
clothing and roll covers. The company operates under a variety
of brand names and owns a broad portfolio of patented and
proprietary technologies to provide customers with tailored
solutions and products, designed to optimize performance and
reduce operational costs. With 35 manufacturing facilities in
15 countries, including Austria, Brazil and Japan, Xerium
Technologies has approximately 3,900 employees.
* * *
Moody's Investors Service changed the outlook on Xerium
Technologies, Inc.'s ratings to negative from stable, and
affirmed the company's corporate family rating at B1. The
change in outlook to negative reflects Xerium's weaker than
expected operating performance primarily due to production
inefficiencies in North America and delays in achieving benefits
from cost reduction initiatives. Moody's believes the impact of
these issues, coupled with a difficult pricing environment for
roll covers and to a lesser extent clothing products, will
continue to negatively affect operating performance over the
intermediate term.
Affirmed ratings are:
* Corporate family rating; B1
* Guaranteed senior secured term loan B; B1
* Guaranteed senior secured revolving credit facility; B1
XERIUM TECH: Paying US$0.1125 Per Share Dividend on Dec. 17
-----------------------------------------------------------
Xerium Technologies Inc.'s Board of Directors declared a
dividend of US$0.1125 per share of common stock payable on
Dec. 17, 2007, to shareholders of record as of the close of
business on Dec. 5, 2007.
Headquartered in Wesborough, Massachusetts, Xerium Technologies,
Inc. -- http://xerium.com/-- manufactures and supplies two
types of products used primarily in the production of paper:
clothing and roll covers. The company operates under a variety
of brand names and owns a broad portfolio of patented and
proprietary technologies to provide customers with tailored
solutions and products, designed to optimize performance and
reduce operational costs. With 35 manufacturing facilities in
15 countries, including Austria, Brazil and Japan, Xerium
Technologies has approximately 3,900 employees.
* * *
Moody's Investors Service changed the outlook on Xerium
Technologies, Inc.'s ratings to negative from stable, and
affirmed the company's corporate family rating at B1. The
change in outlook to negative reflects Xerium's weaker than
expected operating performance primarily due to production
inefficiencies in North America and delays in achieving benefits
from cost reduction initiatives. Moody's believes the impact of
these issues, coupled with a difficult pricing environment for
roll covers and to a lesser extent clothing products, will
continue to negatively affect operating performance over the
intermediate term.
Affirmed ratings are:
* Corporate family rating; B1
* Guaranteed senior secured term loan B; B1
* Guaranteed senior secured revolving credit facility; B1
===========================
C A Y M A N I S L A N D S
===========================
BLUE REEF: Proofs of Claim Filing Deadline Is Nov. 20
-----------------------------------------------------
Blue Reef Fund, Ltd.'s creditors are given until Nov. 20, 2007,
to prove their claims to Carolina Tepedino de Lima Costa and
Iuri Rapoport, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Blue Reef's shareholder agreed on Oct. 5, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Carolina Tepedino de Lima Costa
Iuri Rapoport
Praia de Botafogo, 501
5th Floor, Rio de Janeiro, RJ
Brazil
Contact for inquiries:
Giorgio Subiotto
c/o Ogier
Queensgate House, South Church Street
P.O. Box 1234, Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 949 9876
Fax: (345) 949 1986
BMIT CORP: Sets Final Shareholders Meeting for Nov. 26
------------------------------------------------------
BMIT Corporation will hold its final shareholders meeting on
Nov. 26, 2007, at 10:00 a.m., at:
5-1, Kita-Aoyama 2-chome
Minato-ku, Tokyo
Japan
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) determining the manner in which the books, accounts and
documentation of the company, and of the liquidator
should be disposed of.
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.
BMIT's shareholders agreed to place the company into voluntary
liquidation under The Cayman Islands' Companies Law 2007
Revision).
The liquidator can be reached at:
Toshio Nakahara
5-1, Kita-Aoyama 2-chome
Minato-ku, Tokyo 107-8077
Japan
Phone: +81 3 3497 7541
Fax: +81 3 3497 3177
CLEAN COLT: Proofs of Claim Verification Deadline Is Dec. 27
------------------------------------------------------------
Manuel Alberto Cibeira, the court-appointed trustee for Clean
Colt S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Dec. 27, 2007.
Mr. Cibeira will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Clean Colt
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 Clean Colt's
accounting and banking records will be submitted in court.
Infobae didn't state the reports submission deadlines.
Mr. Cibeira is also in charge of administering Clean Colt's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Manuel Alberto Cibeira
Avenida Cordoba 1247
Buenos Aires, Argentina
DISTRIBUIDORA BANFIELD: Claims Verification Ends Dec. 20
--------------------------------------------------------
Silvia Amanda Ferrandina, the court-appointed trustee for
Distribuidora Banfield S.R.L.'s bankruptcy proceeding, verifies
creditors' proofs of claim until Dec. 20, 2007.
Ms. Ferrandina 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 Distribuidora Banfield 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 Distribuidora
Banfield's accounting and banking records will be submitted in
court on April 24, 2008.
Ms. Ferrandina is also in charge of administering Distribuidora
Banfield's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Silvia Amanda Ferrandina
Asuncion 4642
Buenos Aires, Argentina
EBS INVESTMENT: Proofs of Claim Filing Deadline Is Nov. 26
----------------------------------------------------------
EBS Investment Company's creditors are given until
Nov. 26, 2007, to prove their claims to S.L.C. Whicker and K.D.
Blake, the company's liquidators, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
EBS Investment's shareholder agreed on Oct. 5, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
S.L.C. Whicker
K.D. Blake
Attention: Dorra Mohammed
KPMG
P.O. Box 493, Grand Cayman KY1-1106
Cayman Islands
Telephone: 345-914-4475
Fax: 345-949-7164
FIRST CLUB: Trustee Verifies Proofs of Claim Until Dec. 17
----------------------------------------------------------
Orlando Juan Prebianca, the court-appointed trustee for First
Club S.A.'s reorganization proceeding, verifies creditors'
proofs of claim until Dec. 17, 2007.
Mr. Prebianca will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by First Club
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 First Club's
accounting and banking records will be submitted in court.
Infobae didn't state the reports submission deadlines.
Creditors will vote to ratify the completed settlement plan
during the assembly on Oct. 3, 2008.
The debtor can be reached at:
First Club S.A.
Franklin 710
Buenos Aires, Argentina
The trustee can be reached at:
Orlando Juan Prebianca
Uriburu 578
Buenos Aires, Argentina
GAMMA GLOBAL: Sets Final Shareholders Meeting for Nov. 20
---------------------------------------------------------
Gamma Global Market Neutral Fund will hold its final
shareholders meeting on Nov. 20, 2007, at:
555 Croton Road
Sutie 111, King of Prussia
PA 19406, USA
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) providing 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.
Gamma Global's shareholders agreed to place the company into
voluntary liquidation under The Cayman Islands' Companies Law
2007 Revision).
The liquidator can be reached at:
Gamma Investors Administrator LLC
Attention: Nicholas Nusbaum
55 Croton Road, Ste. 111
King of Prussia, PA 19406
Telephone: (610) 265-8116
Fax: (610) 265-7245
GAMMA RELATIVITY: Sets Final Shareholders Meeting for Nov. 20
-------------------------------------------------------------
Gamma Relativity International Offshore Fund will hold its final
shareholders meeting on Nov. 20, 2007, at:
555 Croton Road
Sutie 111,, King of Prussia
PA 19406, USA
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) providing 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.
Gamma Relativity's shareholders agreed to place the company into
voluntary liquidation under The Cayman Islands' Companies Law
2007 Revision).
The liquidator can be reached at:
Gamma Investors Administrator LLC
Attention: Nicholas Nusbaum
55 Croton Road, Ste. 111
King of Prussia, PA 19406
Telephone: (610) 265-8116
Fax: (610) 265-7245
GAMMA RELATIVITY (II): Final Shareholders Meeting Is on Nov. 20
---------------------------------------------------------------
Gamma Relativity International Offshore Fund II will hold its
final shareholders meeting on Nov. 20, 2007, at:
555 Croton Road
Sutie 111,, King of Prussia
PA 19406, USA
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) providing 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.
Gamma Relativity's shareholders agreed to place the company into
voluntary liquidation under The Cayman Islands' Companies Law
2007 Revision).
The liquidator can be reached at:
Gamma Investors Administrator LLC
Attention: Nicholas Nusbaum
55 Croton Road, Ste. 111
King of Prussia, PA 19406
Telephone: (610) 265-8116
Fax: (610) 265-7245
GAMMA RELATIVITY LOW: Sets Last Shareholders Meeting for Nov. 20
----------------------------------------------------------------
Gamma Relativity Low Vol Fund will hold its final shareholders
meeting on Nov. 20, 2007, at :
555 Croton Road
Sutie 111,, King of Prussia
PA 19406, USA
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) providing 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.
Gamma Relativity's shareholders agreed to place the company into
voluntary liquidation under The Cayman Islands' Companies Law
2007 Revision).
The liquidator can be reached at:
Gamma Investors Administrator LLC
Attention: Nicholas Nusbaum
55 Croton Road, Ste. 111
King of Prussia, PA 19406
Telephone: (610) 265-8116
Fax: (610) 265-7245
GAMMA RELATIVITY (FUND): Last Shareholders Meeting Is on Nov. 20
----------------------------------------------------------------
Gamma Relativity Low Vol Offshore Fund will hold its final
shareholders meeting on Nov. 20, 2007, at :
555 Croton Road
Sutie 111,, King of Prussia
PA 19406, USA
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) providing 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.
Gamma Relativity's shareholders agreed to place the company into
voluntary liquidation under The Cayman Islands' Companies Law
2007 Revision).
The liquidator can be reached at:
Gamma Investors Administrator LLC
Attention: Nicholas Nusbaum
55 Croton Road, Ste. 111
King of Prussia, PA 19406
Telephone: (610) 265-8116
Fax: (610) 265-7245
GAMMA RELATIVITY INT'L: Final Shareholders Meeting on Nov. 20
-------------------------------------------------------------
Gamma Relativity International Fund will hold its final
shareholders meeting on Nov. 20, 2007, at :
555 Croton Road
Sutie 111,, King of Prussia
PA 19406, USA
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) providing 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.
Gamma Relativity's shareholders agreed to place the company into
voluntary liquidation under The Cayman Islands' Companies Law
2007 Revision).
The liquidator can be reached at:
Gamma Investors Administrator LLC
Attention: Nicholas Nusbaum
55 Croton Road, Ste. 111
King of Prussia, PA 19406
Telephone: (610) 265-8116
Fax: (610) 265-7245
LOS MIRASOLES: Proofs of Claim Verification Deadline Is Feb. 21
---------------------------------------------------------------
Moises Gorelik, the court-appointed trustee for Los Mirasoles
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Feb. 21, 2008.
Mr. Gorelik will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Los
Mirasoles 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 Los Mirasoles'
accounting and banking records will be submitted in court.
Infobae didn't state the reports submission deadlines.
Mr. Gorelik is also in charge of administering Los Mirasoles'
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Moises Gorelik
Lavalle 1675
Buenos Aires, Argentina
POLIPRODUCTOS ARGENTINOS: Claims Verification Deadline Is Feb. 4
----------------------------------------------------------------
Ernesto Garcia, the court-appointed trustee for Poliproductos
Argentinos S.R.L.'s bankruptcy proceeding, verifies creditors'
proofs of claim until Feb. 4, 2008.
Mr. Garcia will present the validated claims in court as
individual reports on March 14, 2008. The National Commercial
Court of First Instance No. 5 in Buenos Aires, with the
assistance of Clerk No. 9, will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by
Poliproductos Argentinos 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 Poliproductos
Argentinos' accounting and banking records will be submitted in
court on April 30, 2008.
Mr. Garcia is also in charge of administering Poliproductos
Argentinos' assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Poliproductos Argentinos SRL
Lavalle 1711
Buenos Aires, Argentina
The trustee can be reached at:
Ernesto Garcia
Sarmiento 1587
Buenos Aires, Argentina
SATELY SA: Trustee Verifies Proofs of Claim Until Dec. 10
---------------------------------------------------------
Clara Susana Auerhan, the court-appointed trustee for Sately
S.A.'s reorganization proceeding, verifies creditors' proofs of
claim until Dec. 10, 2007.
Ms. Auerhan will present the validated claims in court as
individual reports on Feb. 26, 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 Sately 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 Sately's accounting
and banking records will be submitted in court on April 9, 2008.
The trustee can be reached at:
Clara Susana Auerhan
Uruguay 872
Buenos Aires, Argentina
=========
C H I L E
=========
NOVA CHEMICALS: Paying CDN0.10 Per Share Quarterly Dividend
-----------------------------------------------------------
NOVA Chemicals Corporation has declared a quarterly dividend of
CDN0.10 per share on the outstanding common shares of the
Company, payable on Feb. 15, 2008, to shareholders of record at
the close of business on Jan. 31, 2008.
Headquartered in Calgary, Alberta, Canada, Nova Chemicals Co.
(NYSE:NCX) (TSX:NCX) -- http://www.novachem.com/-- is a leading
producer of ethylene, polyethylene, styrene, polystyrene, and
expanded polystyrene. Nova Chemicals' manufacturing sites are
strategically situated throughout Canada, the US and South
America. Its South American operations are located in Chile.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 25, 2007, Moody's Investors Service has confirmed Nova
Chemicals Corporation's Ba3 corporate family rating and senior
unsecured debt ratings following regulatory approval for the
expansion of its styrenics joint venture and the belief that low
olefin feedstock costs could allow the company to meaningfully
reduce debt over the next 12 to 18 months.
===============
C O L O M B I A
===============
BRIGHTPOINT INC: Third Qtr. Net Income Up to US$12.9 Million
------------------------------------------------------------
Brightpoint Inc. reported net income of US$12.9 million for the
three months ended Sept. 30, 2007, compared to net income of
US$8.7 million for the same period in 2006.
"In the third quarter of 2007, we continued to focus on the
execution of our growth strategy including the integration of
the Dangaard and CellStar businesses," stated Robert J. Laikin,
Brightpoint's Chairman of the Board and Chief Executive Officer.
"I am excited about Brightpoint's long term opportunities for
growth in the global wireless industry. In the third quarter,
we handled an all-time company record of 22 million wireless
devices. We feel that with the completion of the Dangaard
transaction along with our current positive momentum in many of
our markets, we are on pace to grow faster than the global
wireless device industry. I currently expect Brightpoint to
handle between 100 million to 115 million wireless devices in
2008 giving Brightpoint an estimated market share of 8 to 9% on
a global basis. Based on the continued strong momentum and
robust demand in Q4, I am estimating the wireless industry's
2008 global unit sell-in to be in the range of 1.25 billion to
1.35 billion units. I also believe that this demand will
continue for the next several years with my new updated 2011
global sell-in estimate of greater than 1.65 billion units."
"During the third quarter of 2007, we made very good progress in
the integration of the Dangaard acquisition," said Tony Boor,
Brightpoint's Chief Financial Officer. "I am very pleased with
the efforts of our Global Finance Team on this initiative over
the past several months. We have successfully converted
Dangaard from International Financial Reporting Standards to US
GAAP, and Brightpoint accounting policies are now being applied
on a consistent basis. I am also very pleased with our strong
operating results and the cash generated from selling through
inventory within our Asia-Pacific division, which contributed to
our positive operating cash flow of US$96.5 million year to
date."
Revenue was US$1.2 billion for the third quarter of 2007, an
increase of 86% from the third quarter of 2006. Excluding the
impact of the Dangaard Telecom acquisition, revenue increased
34%, which was primarily driven by the acquisition of CellStar
as well as growth in our distribution business in Singapore. In
order to conform to Brightpoint accounting policies and US GAAP,
Dangaard Telecom changed its revenue recognition for
arrangements where Dangaard Telecom serves as the "agent" in the
transaction. As a result, revenue from the Dangaard Telecom
operations for the two months ended September 30, 2007 was
approximately US$58.0 million lower under US GAAP than it would
have under International Financial Reporting Standards.
About Brightpoint
Headquartered in Plainfield, Indiana, Brightpoint, Inc. --
http://www.brightpoint.com/-- distributes wireless devices and
accessories, as well as provision of customized logistic
services to the wireless industry. The company primarily
operates in Australia, Colombia, Finland, Germany, India, New
Zealand, Norway, the Philippines, the Slovak Republic, Sweden,
United Arab Emirates and the United States. The company's
customers include mobile operators, mobile virtual network
operators, resellers, retailers and wireless equipment
manufacturers. Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.
* * *
On April 12, 2006, Standard & Poor's placed Brightpoint's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.
CASCADES INC: To Pay US$0.04 Per Share Qtrly Dividend on Dec. 17
----------------------------------------------------------------
The Board of Cascades declared a quarterly dividend of US$0.04
per share to be paid Dec. 17, 2007 to shareholders of record at
the close of business on Dec. 3, 2007. This dividend paid by
Cascades is an 'eligible dividend' as per the proposed changes
to the Income Tax Act (Bill C-28, Canada). Pursuant to its
normal course issuer bid, the company purchased during the third
quarter 65,100 of its common shares at an average price of
US$9.64 for a total of 360,500 shares purchased for the first
nine months of the year.
About Cascades S.A.
Cascades S.A. is a European division of Cascades Inc. It
includes primarily 4 virgin and recycled manufacturing boxboard
mills in France, Germany and Sweden, a sheeting operation in
England and an overall active sales structure in Europe.
Headquartered in Kingsey Falls, Quebec, Cascades Inc. --
http://www.cascades.com/-- produces, transforms, and markets
packaging products, tissue paper and fine papers, composed
mainly of recycled fibres. Cascades employs nearly 15,600 men
and women who work in some 140 modern and flexible production
units located in North America, in Europe and in Asia. The
Cascades shares trade on the Toronto stock exchange under the
ticker symbol CAS. The company has operations in Hong Kong,
Colombia, and the United Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 17, 2007, Moody's Investors Service assigned a Ba3 (LGD5,
72%) rating to Cascades' Inc.'s new CND$100 million senior
unsecured revolving credit facility.
At the same time Moody's affirmed Cascades' Ba2 corporate family
rating, its probability of default rating of Ba2, its Baa3
senior secured ratings, and its Ba3 senior unsecured ratings.
The senior unsecured ratings of Ba3 reflect a loss given default
of LGD-5 (72%) and the senior secured ratings of Baa3 reflect a
loss given default of LGD-2 (18%). Moody's said the rating
outlook is stable.
Rating Assigned:
-- CND$100 million senior unsecured revolver, Ba3, LGD5, 72%
Ratings Affirmed:
-- Corporate Family Rating: Ba2
-- PDR: Ba2
-- CND$675 million Sr. Unsecured Notes due 2013, Ba3, LGD5,
72%
-- CND$250 million 6.75% Sr. Unsecured Notes due 2013, Ba3,
LGD5, 72%
GRAN TIERRA: Drilling Works Dominate 2008 Capital Expenditures
--------------------------------------------------------------
Majority of Gran Tierra Energy's capital expenditures next year
will be from the development of drilling and infrastructure
projects, to handle increasing output, Business News Americas
reports.
Gran Tierra Dana Coffield said in a conference call that the
expenditures "will mark a shift from 2007, when the company was
primarily focused on exploration." Most of the firm's
operations in the third quarter 2007 were in Colombia, where
Gran Tierra is concentrated on the continued testing of the
Costayaco and Juanambu oil discoveries.
BNamericas relates that Gran Tierra eyes initial facility
upgrades in Colombia to handle early production from the testing
program. The firm is also planning for development drilling and
production for the two fields.
According to BNamericas, Gran Tierra completed testing at
Juanambu-1. It presented an application of commerciality to
state-run oil firm Ecopetrol.
Mr. Coffield told BNamericas that the well was closed in pending
approval. Gran Tierra expects that to occur shortly.
The report says that Gran Tierra will build a six-kilometer,
six-inch production line to bring crude to facilities. The line
would be completed by year-end.
BNamericas notes that the testing of the Costayaco-1 well on the
Chaza block in Colombia's Putumayo basin ended in the third
quarter 2007. "Gran Tierra's Costayaco contract is with state
hydrocarbons regulator ANH and does not require an application
of commerciality."
Mr. Coffield told BNamericas that production was expected to be
from a single formation at around 1,000 barrels per day net to
Gran Tierra.
Accoridng to the report, the crude is being trucked. Planning
has started on a 16-kilometer, eight-inch pipeline that will
have a total capacity of 25,000 barrels per day.
Mr. Coffield commented to BNamericas, "The full size and
potential of the Costayaco field remains uncertain. We have
initiated a 70 square kilometers 3D seismic program to determine
the shape of the reservoir."
BNamericas says that the program will be completed by year-end.
Gran Tierra has scheduled the drilling of two delineation wells
on the block. The first of the wells will be drilled this
December.
In the third quarter 2007, Gran Tierra prepared for operations
on its two exploration blocks in Peru. The blocks are adjacent
to a basin where over one billion barrels of recoverable oil has
been discovered, BNamericas notes, citing Mr. Coffield.
Gran Tierra contracted services for an air magnetic survey,
which will be launched this month. The firm will also start a
seismic program next year, BNamericas states.
Gran Tierra Energy Inc. (OTCBB: GTRE.OB) --
http://www.grantierra.com/-- is an international oil and gas
exploration and development company headquartered in Calgary,
Canada, incorporated and traded in the United States and
operating in South America. The company currently holds
interests in producing and prospective properties in Argentina,
Colombia and Peru.
* * *
Management disclosed that the company's ability to continue as a
going concern is dependent upon obtaining the necessary
financing to acquire oil and natural gas interests and
generating profitable operations from its oil and natural gas
interests in the future. The company incurred a net loss of
US$1.9 million for the nine-month period ended
Sept. 30, 2006, and, as of Sept. 30, 2006, had an accumulated
deficit of US$4.1 million.
===================
C O S T A R I C A
===================
SPECTRUM BRANDS: Incurs US$333-Million Net Loss in Third Quarter
----------------------------------------------------------------
Spectrum Brands Inc. posted a net loss of US$333.0 million for
the three months ended Sept. 30, 2007, compared to a net loss of
US$439.4 million for the same period in 2006.
Spectrum Brands' sales for the quarter were US$548.2 million, an
increase of 13 percent, largely attributable to sales volume
increases and the impact of favorable foreign exchange rates.
Segment profit increased 54 percent to US$76.4 million for the
quarter due primarily to increased sales and the impact of the
company's cost restructuring initiatives. On a constant
currency basis, sales increased eight percent and segment profit
increased 48 percent. Adjusted EBITDA, including EBITDA from
Home & Garden, was US$92 million as compared with US$58 million
in the prior year.
Chief Executive Officer Kent Hussey stated, "We are pleased with
the overall improvement in sales, EBITDA and segment
profitability during the quarter. We are particularly pleased
that the improvement represented both sales and profitability
growth in each of our business segments, including our Home &
Garden business. Our fourth quarter performance improvement was
driven by a combination of sales volume growth and the benefits
from the restructuring actions we took over the last two years
to better control our costs. We believe this positive momentum
demonstrates that we are taking the appropriate steps to deliver
sustainable operating profitability improvement and create long-
term shareholder value. We believe these positive trends will
continue in fiscal year 2008."
Gross profit and gross margin for the quarter were US$198.6
million and 36.2 percent, respectively, versus US$168.0 million
and 34.5 percent for the same period last year. Restructuring
and related charges of US$14.6 million were included in the
current quarter's cost of goods sold; cost of goods sold in the
comparable period last year included US$18.0 million in similar
charges. Excluding these restructuring and related charges,
gross margin improved as the positive impact of volume increases
and manufacturing cost efficiencies offset increased raw
material costs.
Spectrum generated fourth quarter operating income of US$7.2
million versus an operating loss of US$415.3 million last year.
The current quarter included US$22.0 million in restructuring
and related charges within operating expenses; last year's
operating expenses included US$3.1 million. Fiscal year 2006
results also included a US$433.0 million non-cash charge related
to the value of certain trade names and goodwill. Absent these
amounts, operating income increased largely due to increased
sales and lower costs as a result of the restructuring
initiatives implemented across the organization.
Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25
retailers and are available in more than one million stores in
120 countries around the world. The company has manufacturing
and distribution facilities in China, Australia and New Zealand,
and sales offices in Melbourne, Shanghai, and Singapore.
The company operates in 13 Latin American nations including El
Salvador, Guatemala, Costa Rica, Colombia and Nicaragua.
* * *
As reported on the Troubled Company Reporter-Latin America on
Oct. 3, 2007, Fitch Ratings has assigned a 'B/RR1' rating to
Spectrum Brand's new four-year, USUS$225 million senior secured
asset-backed loan facility priced at LIBOR +225 basis points.
The new facility will replace the USUS$200 million LIBOR Term
Loan B II that is encompassed within the USUS$1.6 billion six-
year Credit Agreement.
Fitch has also affirmed these ratings:
-- Issuer Default Rating at 'CCC';
-- USUS$1 billion term loan B at 'B/RR1';
-- EUR350 million term loan at 'B/RR1';
-- USUS$700 million 7.4% senior subordinated notes at 'CCC-
/RR5';
-- USUS$2.9 million 8.5% senior subordinated notes at 'CCC-
/RR5';
-- USUS$347 million 11.25% variable rate toggle senior
subordinated notes at 'CCC-/RR5'.
Fitch said the rating outlook is negative.
===================================
D O M I N I C A N R E P U B L I C
===================================
HANESBRANDS INC: Hires William Nictakis as Chief Comm'l Officer
---------------------------------------------------------------
Hanesbrands Inc. has appointed William J. Nictakis to the newly
created position of president, chief commercial officer,
effective Nov. 12, 2007.
Mr. Nictakis who has a wealth of consumer product experience in
executive management, sales, category management, marketing and
product development, will lead Hanesbrands' domestic and
international commercial businesses and support functions to
drive sales growth and profitability. He will report to
Hanesbrands Chief Executive Officer Richard A. Noll.
"Bill Nictakis has a tremendous track record of driving growth
in big organizations with nationally recognized brands," Mr.
Noll said. "We have successfully consolidated the Hanesbrands
organization from several independent operating units to one
company focused on customers and consumers. This is the perfect
time for Bill to join our team to lead our commercial operations
under this new chief commercial officer position.
"Bill has tremendous energy, great consumer products vision and
an unrelenting drive. He will fit in well with our powerful
brands and the passion and experience of our organization."
Mr. Nictakis has more than 25 years of experience at leading
consumer product companies, most recently as president of Sara
Lee Corporation's U.S. fresh bakery unit. Before joining Sara
Lee, Mr. Nictakis was vice president of sales for Frito-Lay,
Inc., leading the company's 20,000-member national sales
organization.
Reporting to Mr. Nictakis will be sales and customer management,
brand marketing, product design and development, and the
strategic commercial business units for intimate apparel, male
underwear, activewear, casualwear, socks and international,
which include customer marketing, merchandising and forecasting
and pricing.
Hanesbrands also announced that it has named Howard Upchurch as
executive vice president and general manager of domestic
innerwear and John Marsh as senior vice president and general
manager of domestic casualwear. Mr. Upchurch, who joined
Hanesbrands in 1987, previously led the company's domestic
intimate apparel business. Mr. Marsh, who joined the company in
1995, has had several assignments before leading the casualwear
business.
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.
=========
H A I T I
=========
BASIC ENERGY: Reports US$24.4 Million Net Income in Third Qtr.
---------------------------------------------------------------
Basic Energy Services, Inc. has reported net income of US$24.4
million, or US$0.59 per diluted share, for the third quarter of
2007 and nine months ended Sept. 30, 2007, compared to US$27.3
million, or US$0.71 per diluted share, in the same period in
2006. Revenues increased 18% to US$229.2 million compared to
US$194.6 million in the same period last year. EBITDA (defined
as net income before interest, taxes, depreciation and
amortization) for the third quarter of 2007 increased 6% to
US$68.8 million, or 30% of revenue, compared to US$64.6 million,
or 33% of revenue, in the same period in 2006.
For the nine-month period, Basic reported net income of US$68.2
million in 2007, or US$1.66 per diluted share, compared to
US$71.5 million, or US$1.86 per diluted share, in the same
period in 2006. Net income in 2006 included an after-tax loss of
US$1.7 million, or US$0.05 per diluted share, associated with
the early extinguishment of debt.
Year-to-date, revenues increased 22% to US$651.4 million in
2007, compared to US$532.7 million in the same period in 2006.
EBITDA rose 15% to US$194.2 million in 2007, or 30% of revenue,
compared to US$168.9 million, or 32% of revenue, during the same
period in 2006.
Ken Huseman, Basic's President and Chief Executive Officer,
stated, "The company achieved a record level of revenue and
EBITDA in the third quarter. The combination of internal growth
initiatives, contribution from acquisitions closed over the last
year and higher pricing in all service lines more than offset
lower year-over-year utilization. Our management team continues
to do an excellent job of controlling costs in a tight labor
market to produce margins, which remain at the upper end of the
historical range in each service segment.
"The current level of profitability in our core services
continues to support investment in new equipment, particularly
by many of our smaller competitors. Some relocation of
equipment from the slower gas markets to the more active oil
markets is underway, further adding to competition for
available work and scarce qualified personnel. We could very
well see increased pressure on utilization, rates and margins
until gas prices increase sufficiently to boost activity in the
higher-cost gas markets or new equipment deliveries abate.
"As for the fourth quarter outlook, the industry typically
experiences a seasonal decline in activity during the period due
to fewer daylight hours, inclement weather and holidays and this
year, fully expended capital budgets for several of our
customers. We expect our fourth quarter revenue levels to be
four to six percent below third quarter results with margins
slightly lower as labor and winter-related costs consume a
larger portion of revenue.
"Given that short term outlook, we are confirming the 2007 full-
year profit guidance provided in our previous quarter's earnings
release but will not provide 2008 guidance at this time.
Uncertainty in the gas markets is causing disruptions and some
suspensions of drilling and workover programs in many of those
markets. While most of our business is oil and production
maintenance-driven, reduced activity in gas markets can cause a
ripple effect in contiguous oil markets due to increased
competition. Reflecting our expectations for a balanced supply
and demand for equipment, as announced in our recent operating
data releases, we have reduced capital spending and expect to
spend approximately US$115 million in 2007 rather than the
US$130 to US$140 million previously projected.
"We continue to find and close acquisitions at reasonable
valuations to build our footprint in the most active oil and gas
markets. Our dominant market position in the Permian Basin of
west Texas and southeastern New Mexico was further strengthened
by our acquisition in late September of two fluid services
companies, which added a total of 25 trucks along with related
support equipment. We believe the current environment will lead
to a larger number of established companies and many of the
financially-sponsored start-ups and roll-ups to look for an
exit, providing numerous acquisition opportunities for us in
2008."
Business Segment Results
Well Servicing
Well servicing revenues increased approximately 13% to US$99.3
million during the third quarter of 2007 compared to US$88.2
million in the same period last year.
During the third quarter of 2007, the company added 17 workover
rigs, including 16 newbuilds and one swab rig, and retired ten
rigs, bringing the workover rig count to 386 as of
Sept. 30, 2007. Revenue per workover rig hour increased 9% to
US$414 during the third quarter of 2007 compared to US$379 in
the same period in 2006. The full-fleet workover rig
utilization rate declined to 78% in the third quarter of 2007
compared to 90% in the same period in 2006.
During the third quarter of 2007, Basic added one medium-depth
drilling rig, increasing the drilling rig count to ten at
Sept. 30, 2007. Revenue per day and operating days were
US$15,700 and 723, respectively, in the third quarter of 2007
compared to US$14,700 and 160, respectively, in the same period
in 2006.
Well servicing operating segment profit in the third quarter of
2007 was US$40.0 million, compared with last year's third
quarter operating segment profit of US$39.8 million. Operating
margins declined to 40% of revenue in the third quarter of 2007
compared to 45% in the same period of 2006, mainly due to lower
utilization, higher personnel costs related to lower utilization
and increased maintenance and repair costs.
Fluid Services
Fluid services revenues in the third quarter of 2007 increased
4% to US$52.7 million compared to US$50.7 million in the same
period in 2006. During the third quarter of 2007, Basic added a
net of seven fluid services trucks, bringing the total number of
fluid services trucks to 666 as of Sept. 30, 2007. Average
revenue per fluid services truck decreased by 2% to US$81,000 in
the third quarter of 2007 compared to US$83,000 in the same
period in 2006. Operating segment profit in the third quarter
of 2007 was US$19.4 million, or 37% of revenue, compared to
US$19.5 million, or 38% of revenue, in the same period in 2006,
due to higher personnel, maintenance and supplies costs.
Completion & Remedial Services
Completion and remedial services revenues during the third
quarter of 2007 increased 57% to US$66.3 million compared to
US$42.1 million in the same period in 2006. Operating segment
profit in the third quarter of 2007 rose to US$31.6 million, or
48% of revenue, compared to US$21.6 million, or 51% of revenue,
in the same period in 2006. The increase in revenue and
operating profit in this segment was the result of several
acquisitions since the third quarter of 2006 including the
acquisition of JetStar in March 2007. As of Sept. 30, 2007,
Basic had 121,000 hydraulic horsepower of pressure pumping
capacity compared to 60,000 hydraulic horsepower as of
Sept. 30, 2006.
Well Site Construction Services
Well site construction services revenues in the third quarter of
2007 declined to US$11.0 million compared to US$13.5 million in
the same period in 2006. Operating segment profit in the third
quarter of 2007 was US$3.4 million, or 31% of revenue, compared
to US$4.1 million, or 30% of revenue, in the same period in
2006.
Capital Expenditures
During the first nine months of 2007, Basic invested US$102
million for capital expenditures, including capital leases and
excluding acquisitions. This amount included US$61 million for
expansion capital expenditures, including US$46 million for the
well servicing segment, US$7 million for the fluid services
segment and US$8 million for the completion and remedial
services segment. Maintenance capital expenditures amounted to
approximately US$28 million, or 4% of revenues, for the first
three quarters of 2007. Other capital expenditures of US$13
million, mainly for facilities and IT infrastructure, comprise
the remainder of capital spending for the first three quarters
of 2007.
About Basic Energy
Headquartered in Texas, USA, Basic Energy Services, Inc.,
provides a range of well site services to oil and gas drilling
and producing companies, including well servicing, fluid
services, drilling and completion services, and well site
construction services. Basic Energy has four segments: well
servicing encompasses a range of services performed with a
mobile well servicing rig; fluid services provides transport,
store and dispose of a variety of fluids; drilling and
completion services provides oil and gas operators with a
package of services, and well site construction services employs
an array of equipment and assets to provide services for the
construction and maintenance of oil and gas production
infrastructure. In March 2007, it acquired JetStar Consolidated
Holdings, Inc.
In the Dominican Republic, Basic Energy controls power companies
Cepm, Cespm and Ege Haina.
As reported on May 1, 2007, Basic Energy head Rolando Gonzalez
Bunster told Business News Americas that the company and its
Dominican Republic affiliates will construct a 35-megawatt
thermo plant in Haiti.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on domestic oilfield services
provider Basic Energy Services Inc. At the same time, Standard
& Poor's assigned its 'BB' debt rating and '1' recovery rating
to the company's proposed US$225 million revolving credit
facility. S&P said the outlook remained positive.
DYNCORP INT'L: Peter Schoomaker Joins Board of Directors
--------------------------------------------------------
DynCorp International Inc. has named General Peter J.
Schoomaker, U.S. Army (Retired) to its board of directors.
Gen. Schoomaker was the U.S. Army's 35th Chief of Staff from
August 2003 to April 2007 and spent 31 years in a variety of
command and staff assignments with both conventional and special
operations forces. He participated in operations including
Desert One in Iran, Urgent Fury in Grenada, Just Cause in
Panama, Desert Shield/Desert Storm in Southwest Asia, and Uphold
Democracy in Haiti. He also supported various worldwide joint
contingency operations, including those in the Balkans,
Afghanistan and Iraq.
"We are extremely fortunate to have someone of Gen. Schoomaker's
experience and caliber joining our board at this time," said
DynCorp International chairman Robert B. McKeon. "Pete's
leadership skills and in-depth knowledge of our nation's
security challenges will be a tremendous contributor to the
continued growth of DynCorp International."
Currently, Gen. Schoomaker serves on the advisory boards of
Camber Corp. and EWA-GSI. He also serves on the board of
directors of CAE USA, the U.S. subsidiary of CAE Canada.
Gen. Schoomaker is also a director of the non-profit
organization Special Operations Warrior Foundation, which
provides free college scholarship grants, financial aid, and
educational counseling to the children of military Special
Operations personnel killed in operational missions or training
accidents.
Gen. Schoomaker's awards and decorations include the Defense
Distinguished Service Medal, two Army Distinguished Service
Medals, four Defense Superior Service Medals, three Legions of
Merit, two Bronze Star Medals, two Defense Meritorious Service
Medals, three Meritorious Service Medals, the Joint Service
Commendation Medal, Joint Service Achievement Medal, Combat
Infantryman Badge, Master Parachutist Badge and HALO Wings, the
Special Forces Tab, and the Ranger Tab.
Gen. Schoomaker is a graduate of the University of Wyoming,
where he received a Bachelor of Science degree in education. He
also holds a Master of Arts Degree in Management from Central
Michigan University and an Honorary Doctorate of Laws from
Hampden-Sydney College.
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.
=============
J A M A I C A
=============
AIR JAMAICA: Launching Partnership Talks with Stanford Financial
---------------------------------------------------------------
The Jamaican government will launch negotiations with
international investment company Stanford Financial Group on a
possible partnership agreement with Air Jamaica, Radio Jamaica
reports.
According to Radio Jamaica, Stanford Financial representatives
would be in Jamaica for talks with the government.
Sources told RJR News that the government also made "overtures
to air carriers LanChile and Hawaiian Airlines" for a
partnership with Air Jamaica.
Radio Jamaica relates that the government disclosed plans to
place Air Jamaica into private sector ownership as early as
possible.
Jamaican Prime Minister Bruce Golding instructed that
ministerial responsibility for Air Jamaica be transferred to the
finance ministry from the transport ministry, Radio Jamaica
notes. The finance ministry was responsible for Air Jamaica
under the former administration.
The new Board of Air Jamaica began streamlining Air Jamaica's
operations by decreasing the management team, RJR News states.
About Stanford Financial
Stanford Financial Group is a privately held, wholly owned
global group of financial services companies led by Chairman and
CEO R. Allen Stanford and founded by his grandfather, Lodis B.
Stanford in 1932. Stanford's core businesses are private wealth
management and investment banking for institutions and emerging
growth companies. Stanford provides private and institutional
investors with global expertise in asset allocation strategies,
investment advisory services, equity research, international
private banking and trust administration, commercial banking,
investment banking, merchant banking, institutional sales and
trading, real estate investment and insurance. Stanford serves
clients from 136 countries on six continents.
About Air Jamaica
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private in
1994. The Jamaican government does not plan to on Air Jamaica
permanently.
* * *
On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest payments.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.
===========
M E X I C O
===========
CLEAR CHANNEL: Third Quarter Net Income Rises to US$279.7 Mil.
--------------------------------------------------------------
Clear Channel Communications Inc. disclosed its financial
results for the third quarter ended Sept. 30, 2007.
The company reported revenues of US$1.7 billion in the third
quarter of 2007, an increase of 5% from the US$1.6 billion
reported for the third quarter of 2006. Included in the
company's revenue is a US$32.4 million increase due to movements
in foreign exchange; excluding the effects of these movements in
foreign exchange, revenue growth would have been 3%.
For the three months ended Sept. 30, 2007, the company had net
income of US$279.7 million compared to net income of US$185.8
million for the same period in 2006.
The company's operating expenses increased 6% to US$1.1 billion
during the third quarter of 2007 compared to 2006. Included in
the Company's 2007 expenses is a US$27.0 million increase due to
movements in foreign exchange; excluding the effects of these
movements in foreign exchange, growth in expenses would have
been 3%.
Mark P. Mays, Chief Executive Officer of Clear Channel
Communications, commented, "Our third quarter revenue and OIBDAN
growth was fueled by another exceptional performance from our
outdoor advertising business, which continues to post consistent
growth on a global basis. Once again, our radio management team
delivered results that outperformed the rest of the industry.
Going forward, we remain committed to strengthening the value
proposition we deliver to our audiences and advertisers as we
continue to prudently invest in our brands, our content and our
multi-channel distribution."
Merger Transaction
The company's shareholders approved the adoption of the merger
agreement, as amended, with a group led by Thomas H. Lee
Partners, L.P. and Bain Capital Partners, LLC on Sept. 25, 2007.
Under the terms of the merger agreement, as amended, the
Company's shareholders will receive US$39.20 in cash for each
share they own plus additional per share consideration, if any,
if the closing of the merger occurs after Dec. 31, 2007. As an
alternative to receiving the US$39.20 per share cash
consideration, the company's unaffiliated shareholders were
offered the opportunity on a purely voluntary basis to exchange
some or all of their shares of Clear Channel common stock on a
one-for-one basis for shares of Class A common stock in the new
corporation formed by the private equity group to acquire the
Company (subject to aggregate and individual caps), plus the
additional per share consideration, if any.
Holders of shares of the company's common stock (including
shares issuable upon conversion of outstanding options) in
excess of the aggregate cap provided in the merger agreement, as
amended, elected to receive the stock consideration. As a
result, unaffiliated shareholders of the Company will own an
aggregate of 30,612,245 shares of CC Media Holdings Inc. Class
A common stock upon consummation of the merger.
The consummation of the merger is subject to antitrust
clearances, FCC approval and other customary closing conditions.
The parties continue to work toward a closing by the end of the
year, but given the uncertainty as to the timing of the
satisfaction of the closing conditions, and the provisions in
the Merger Agreement regarding the Marketing Period; it is
possible that closing could be delayed until the first quarter
of 2008.
Fourth Quarter & 2007 Outlook
Due to the pending merger transaction and the Company not
hosting a teleconference to discuss financial and operating
results, the company is providing the following information
regarding its current information related to 2007 operating
results.
Pacing information presented below reflects revenues booked at a
specific date versus the comparable date in the prior period and
may or may not reflect the actual revenue growth at the end of
the period. The company's revenue pacing information includes
an adjustment to prior periods to include all acquisitions and
exclude all divestitures in both periods presented for
comparative purposes. All pacing metrics exclude the effects of
foreign exchange movements. Except where expressly identified,
the Company's operating expense forecasts are on a reportable
basis excluding non-cash compensation expense, i.e. there is not
an adjustment for acquisitions, divestitures or the effects of
foreign exchange movements.
As of Nov. 2, 2007, revenues for the Radio division are pacing
down 4.7% for the fourth quarter of 2007 as compared to the
fourth quarter of 2006. As of the first week in November, the
Radio division has historically experienced revenues booked of
approximately 85% of the actual revenues recorded for the fourth
quarter. The company's Radio division currently forecasts total
operating expense growth to be flat for the full year 2007 as
compared to the full year 2006.
Also as of Nov. 2, 2007, revenues in the Outdoor division are
pacing up 7.7% overall. The Americas outdoor segment is
slightly below and the International outdoor segment slightly
above the 7.7% pacing for the fourth quarter 2007 as compared to
the fourth quarter of 2006. As of the first week in November,
the Outdoor division has historically experienced revenues
booked of approximately 85% of the actual revenues recorded for
the fourth quarter.
For the full year 2007 as compared to the full year 2006,
current Company forecasts show low-double digit growth in total
operating expenses for the Outdoor division. Excluding the
effects of movements in foreign exchange, which management
currently forecasts at a US$100 to US$110 million increase for
the full year 2007 and excluding Interspace's (acquired by the
Company on July 1, 2006) operating expenses of US$20.2 million
for the first six months of 2007, operating expense growth is
currently forecasted to be in the 7% to 8% range for 2007 as
compared to 2006.
For the consolidated company, current management forecasts show
corporate expenses of US$180 million to US$190 million for the
full year 2007, excluding costs associated with the pending
merger transaction. Non-cash compensation expense (i.e. FAS No.
123 (R): share-based payments) are currently projected to be in
the range of US$40 million to US$45 million for the full year of
2007, excluding any compensation expense associated with future
option or share grants that may or may not occur in 2007 and
excluding any non-cash compensation expense directly associated
with the pending merger transaction.
The company currently forecasts overall capital expenditures for
2007 of US$325 million to US$350 million, excluding any capital
expenditures associated with new contract wins the Company may
have during 2007.
About Clear Channel
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a global media
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers. The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.
* * *
On April 2007, Standard & Poor's Ratings Services lowered its
corporate credit and senior unsecured debt ratings on Clear
Channel Communications Inc. to 'B+' from 'BB+'. The ratings
remain on CreditWatch with negative implications, where they
were placed on Oct. 26, 2006, following the company's
announcement that it was exploring strategic alternatives to
enhance shareholder value.
DESARROLLADORA HOMEX: Shareholders Acquire 6.7MM Common Shares
--------------------------------------------------------------
Desarrolladora Homex, S.A.B de C.V.'s main shareholders led by
Mr. Eustaquio de Nicolas Gutierrez, Chairman of the Board of
Directors of Homex, has acquired in a private transaction, 6.7
million common shares of Homex (representing less than 2.0% of
the company) from EIP Investment Holdings L.L.C., COMM V.A.
After the sale, EIP continues to hold approximately 8.5% of the
company's common stock.
In a letter to the company's management, Mr. de Nicolas
highlights the commitment of the main shareholder group to
Homex. "Actions like this send a clear message of the founders'
and main shareholders' belief in the business, our confidence in
the housing market and in Homex's ability to provide significant
value creation for all its shareholders. I am convinced that
Homex continues to be uniquely positioned to take full advantage
of future opportunities in the Mexican housing industry to
benefit home buyers, our employees and stockholders."
Through this operation, the de Nicolas family holds now 34.8% of
Homex's capital. The public float remains above 56.6%.
About Homex
Desarrolladora Homex -- http://www.homex.com.mx-- is a
vertically integrated home development company focused on
affordable entry-level and middle-income housing in Mexico. It
is one of the most geographically diverse homebuilders in the
country. Homex is the largest homebuilder in Mexico, based on
revenues, number of homes sold and net income.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 19, 2007, Moody's affirmed Desarrolladora Homex's national
scale issuer rating at A3.mx, and global scale local currency
issuer rating at Ba3. Moody's said the rating outlook remains
positive.
DURA AUTOMOTIVE: Seeks to Pay Arrangers for US$425MM Exit Loan
--------------------------------------------------------------
DURA Automotive Systems, Inc., and its debtor-affiliates are
seeking a US$425,000,000 financing to emerge from Chapter 11.
DURA expects US$300,000,000 of the loan to be funded on the
effective date of its Plan of Reorganization.
The Debtors have asked the U.S. Bankruptcy Court for the
District of Delaware to approve an engagement letter and a fee
letter entered into with Goldman Sachs Credit Partners, L.P.,
and Barclays Capital, the investment banking division of
Barclays Bank, PLC.
Pursuant to the Engagement Letter, Goldman Sachs and Barclays,
as arrangers, have offered to syndicate exit financing for Dura
Operating Corp.:
(a) a senior secured revolving credit facility in an amount up
to US$125,000,000;
(b) a senior secured first-lien tranche B term loan facility
in amount up to US$225,000,000; and
(c) a senior secured second-lien term loan facility in an
amount up to US$75,000,000.
Goldman Sachs will be the administrative agent for the First
Lien Term Facility, and Baclays Capital will be administrative
agent for the Revolving Facility.
Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, noted that the Debtors' emergence from
bankruptcy is predicated on funding from two key sources -- the
exit facility and the US$140,000,000 to US$160,000,000 rights
offering backstopped by Pacificor, LLC. The backstop deal with
Pacificor has already been approved by the Court.
The Debtors, with the assistance of their investment banker,
Miller Buckfire & Co., initiated discussions with, and solicited
exit financing proposals from a variety of potential exit
lenders. The Debtors have decided to pursue a joint proposal
from Goldman Sachs and Barclays.
The Debtors are not yet seeking approval of the exit financing.
The documents submitted for the Bankruptcy Court's approval do
not constitute not a commitment, and do not oblige the Barclays
and Goldman Sachs, or their affiliates to provide the exit
facility or any other financing. The Debtors are only seeking
Bankruptcy Judge Kevin Carey's approval to pay fees and
reimburse the expenses of, and to grant indemnification to, the
Arrangers.
The Debtors did not specify the fees to be paid to the Arrangers
or the amount of expenses they will reimburse. The Debtors have
redacted the Fee Letter filed with the Court.
The Debtors said that the indemnification, fees and expense
reimbursements are necessary to compensate the Arrangers for
their time and efforts in soliciting lender interest for the
exit facility and are customary for transactions of similar
nature.
The Debtors have asked the Court hear their proposal on an
expedited basis and have scheduled a November 8 hearing on the
matter. The Debtors' proposal has faced opposition from the
U.S. Trustee.
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
warned that the Debtors may be improperly retaining Barclays, et
al., as estate professionals under Section 327(a) of the
Bankruptcy Code. She said that it appears that Barclays, et
al., have been tasked to act as investment bankers with respect
to the exit facility when the Debtors have employed Miller
Buckfire as their investment bankers.
The U.S. Trustee also disputes the filing of the Fee Letter
under seal on grounds that it stops the public from viewing
certain economic terms of the arrangement.
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan
and Korea. It has locations in Europe and Latin America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.
The Debtors' exclusive plan-filing period expired on
Sept. 30, 2007. On Aug. 22, 2007, the Debtors' filed their Plan
of Reorganization and the Disclosure Statement explaining that
Plan was approved on Oct. 3, 2007. The hearing to consider
confirmation of the plan is set for Nov. 26, 2007. (Dura
Automotive Bankruptcy News, Issue No. 36 Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
DURA AUTOMOTIVE: Wants Plan Confirmation Hearing Moved to Dec. 6
----------------------------------------------------------------
DURA Automotive Systems, Inc., and its debtor-affiliates asked
the U.S. Bankruptcy Court for the District of Delaware to
reschedule the hearing to consider confirmation of their Joint
Plan of Reorganization to December 6, 2007.
The hearing on the Plan, which contemplates a US$425,000,000
exit financing and a US$140,000,000 to US$160,000,000 equity
rights offering to be fully backstopped by Pacificor, LLC, was
originally scheduled for November 26, 2007.
The Debtors will also seek approval at the Confirmation Hearing
to pay administrative claimants and secured lenders in full and
provide 55% recovery to holders of US$418,700,000 in senior
notes and 22% recovery for other general unsecured claimants,
holding an aggregate US$22,300,000. The senior noteholders and
general unsecured claimants will receive cash, but larger
claimants, including Pacificor, will have the option to buy
shares at the rights offering. Holders of subordinated notes
aggregating US$560,700,000 and owners of existing stock of DURA
will not receive any recovery under Plan.
The deadline to file objections to the Plan's confirmation has
also been moved to Nov. 12, 2007, at 4:00 p.m., from the
original Nov. 6 deadline.
Various parties have already filed objections to the Plan. The
objectors include a prior purchaser of the Debtors' assets, the
U.S. Internal Revenue Service, certain subordinated noteholders
and parties to contracts to be assumed or rejected under the
Plan.
Objections to Plan
(a) Atwood
Atwood Acquisition Co. LLC, now known as Atwood Mobile LLC, says
the Plan is not confirmable if the Debtors are unable to pay its
US$35,230,326 administrative claim.
As previously reported, Atwood Acquisition Co. LLC, now known as
Atwood Mobile LLC, purchased the assets of the Debtors' Atwood
division for a US$160,200,000 cash consideration.
Michael G. Busenkell, Esq., at Hunton & Williams, LLP, in
Dallas, Texas, relates that the purchase price under the
parties' asset purchase agreement included a working capital
component, which the parties failed to calculate prior to the
August 2007 closing of the deal. Accordingly, for closing
purposes, the Debtors and Atwood agreed to estimate the working
capital and to calculate the actual working capital after the
closing pursuant to a negotiated procedure set in the APA.
According to Mr. Busenkell, Atwood has calculated the actual
working capital and has determined that it is entitled to a
refund of a portion of the purchase price in the amount of
US$35,230,326.
"While Atwood fully intends to honor the negotiated procedures
set forth in the purchase agreement, the Debtors are moving
forward confirmation and their proposed plan of reorganization
does not provide for payment of the working capital refund to
Atwood," says Mr. Busenkell.
Mr. Busenkell points out that the Working Capital Adjustment
constitutes a postpetition, administrative claim under Section
503(b) of the Bankruptcy Code, and entitled to 100% payment on
the Plan's effective date like other administrative claims.
Without sufficient cash to satisfy Atwood's administrative claim
on the Effective Date, the Plan is not feasible and, thus, not
confirmable, he asserts.
Thus, Atwood Acquisition objects to the Plan to the extent that
it does not demonstrate the Debtors' ability to satisfy Atwood's
administrative claim on the Effective Date. Atwood requests
that any order confirming the Plan be subject to the Debtors'
establishment of a reserve in the amount of US$35,230,326 to
ensure payment of the Working Capital Adjustment.
(b) U.S. Government
The United States Government, on behalf of the Internal Revenue
Service, objects to the Plan's treatment of IRS' priority
claims, specifically, with respect to the Plan's failure to
provide for an adequate rate of interests on the claims.
"The IRS is entitled to an interest at the rate and method
specified in 26 U.S.C. Sections 6621 and 6622," contends Ellen
W. Slights, Esq., Assistant United States Attorney.
IRS has asserted a prepetition claim totaling US$5,178,912 and a
postpetition claim asserting US$487,873 against the Debtors.
(c) Contract Counterparties
The Debtors provided a list of executory contracts and unexpired
leases to be assumed and rejected as part of the Plan.
Toyota Motor Credit Corporation questioned the clarity of the
Plan's list of executory contracts and leases to be assumed and
the cure amounts asserted. Toyota noted that the Debtors listed
only two of their five forklift agreements, and estimated a cure
amount of US$8,086 with no breakdown of how the cure amount was
determined or delineation of which leases are being assumed.
Toyota insists that an additional US$4,497 is due under the
leases on account of late charges.
Oracle Corporation, parties to certain agreements related to the
licensing of Hyperion software and related services with the
Debtors, notes that the Debtors stated that they are assuming
certain contracts between Hyperion and the Debtors, and
indicated a cure amount of US$3,876 due under the contract.
Beyond identifying Hyperion Solutions as a counter-party, the
Plan does not provide any additional identifying information,
including correct name or date, for the three contracts that the
Debtors seek to assume, noted James E. Huggett, Esq., at
Margolis Edelstein, in Wilmington, Delaware. Oracle says that
if the three contracts the Debtors are assume consist of the
Software License Agreement, the subsequent Assignment Agreement
and the Software License and Services Agreement, the proposed
cure amount of US$3,876 is inadequate.
Robert Bosch, LLC, for its part, filed a protective objection to
the inclusion of the Trademark Agreement on the Plan's list of
contracts to be rejected. The Trademark License Agreement is
agreed upon by Bosch and Excel Industries Inc., a company
acquired by the Debtors in 1999. The agreement gives Bosch the
rights to use the trademark "Excel" in return for royalty
payments, Gordon J. Toering, Esq., at Warner, Norcross & Judd,
LLP, in Grand Rapids, Michigan, points out. According to
Mr. Toering, Bosch and the Debtors have had discussions
regarding the Debtors' inclusion of the Agreement among the
contracts to be rejected, and have yet to reach a resolution on
the issue.
Karl Storrie and David Bovee and the Debtors are parties to a
Supplemental Executive Retirement Plan. Michael W. Yurkewicz,
Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers, LLP, in
Wilmington, Delaware says that Messrs. Storrie and Bovee
continue to have obligations under the SERP. The contract
provides that the Messrs. Storrie and Bovee should not compete
with the company, and the Debtors have not released them from
their obligations under the SERP, Mr. Yurkewicz points out.
Furthermore, Yurkewicz asserts that the Plan improperly requests
a retroactive rejection of certain executory contracts,
including the SERP, as of the date of the filing of the
petition. Thus, Messrs. Storrie and Bovee ask the Court that
the rejection should be effective at the earliest as of the date
of the Plan is confirmed.
(d) Noteholders and Other Parties
Douglas Stevens and Raphael Durst, owners of Dura Operating
Corp. Series C/D 9% Senior Subordinated Notes Cusip Number
26632QAh6, object the Debtors' Plan of Reorganization. Raphael
Durst, owner of 100 notes, asserts that the Plan should entail
some or future recovery of these bonds in form of either:
(a) a stock transfer in the present; or
(b) a hold on the Bonds (no interest or maturity payments) for
a certain period and then reexamine the value of Dura to
see if there is value in those bonds.
"[I]t would be unfair if in two years the company would be
profitable and these bonds will have no recovery in the
present," Mr. Durst says.
Envision Graphics, Inc., Class 5A Claim Holder, Autobon Express,
Inc. and Magna Donnelly Corporation also express their objection
to the Debtors Plan of Reorganization.
Autobon Express, Inc., finds it unethical to participate in a
vote where 80% of our claim will be given to the "New Dura" to
operate and continue to build and eventually be a successful and
profitable business.
Magna Donnelly Corporation, a defendant to a patent infringement
lawsuit filed by the Debtors, asserts that the provisions of the
proposed Plan permit the Debtors to pursue the patent case
against Magna, while at the same time, barring it from pursuing
any counter-claims that it is otherwise entitled to raise.
About Dura
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan
and Korea. It has locations in Europe and Latin America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities.
The Debtors' exclusive plan-filing period expired on
Sept. 30, 2007. On Aug. 22, 2007, the Debtors' filed their Plan
of Reorganization and the Disclosure Statement explaining that
Plan was approved on Oct. 3, 2007. The hearing to consider
confirmation of the plan is set for Nov. 26, 2007. (Dura
Automotive Bankruptcy News, Issue No. 36 Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
GRUPO MEXICO: Investing US$300MM To Fund Asarco's Chap. 11 Exit
---------------------------------------------------------------
A Grupo Mexico SA, de C.V., unit in Mexico is keen on investing
some US$300 million to fund subsidiary Asarco LLC's exit from
bankruptcy, the Associated Press reports.
Asarco, who's been in bankruptcy for over two years is under the
control of a three-member board.
Grupo Mexioc's unit is complaining that Asarco is ignoring the
offer, the AP relates. The unit complained in court papers
filed with the U.S. Bankruptcy Court in Corpus Christi, Texas,
that Asarco refused to respond to its funding offer.
Grupo Mexico told the AP that Asarco declines help on
determining the size of its liabilities, including environmental
clean-up costs.
The report says that getting court-approved estimates of
Asarco's liabilities is an important step before the firm can
emerge from Chapter 11.
Grupo Mexico's Mexican unit commented to the AP, "Since Asarco
is unwilling to address the issues raised by the parent
consensually, the parent must request the court's immediate
intervention to prevent an injustice."
The AP notes that Grupo Mexico asked the bankruptcy court for an
emergency hearing on its plea that Asarco get the parent's
permission before agreeing to settlements of over US$10 million.
The request was granted, with the hearing set for Nov. 15.
Asarco is settling claims for environmental damages with the
Arizona federal government and several states, according to the
AP.
The Grupo Mexico unit told the AP that Asarco will still respond
to the request that firms form a "joint task force to estimate
significant categories of claims against Asarco."
Asarco declined to work with the parent "in mediation sessions
aimed at settling asbestos-related claims," the AP states,
citing Grupo Mexico.
"Thus, despite months of attempts at constructive dialogue,
Asarco has refused to provide the parent with its own estimate
of allowed claims or even to provide feedback to the parent's
estimate of such claims," the Grupo Mexico unit told the AP.
About ASARCO LLC
Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/
-- is an integrated copper mining, smelting and refining
company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.
The Company filed for chapter 11 protection on Aug. 9, 2005
(Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq.,
Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker
Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A.
Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden,
Womble & Culbreth, P.C., represent the Debtor in its
restructuring efforts. Lehman Brothers Inc. provides the ASARCO
with financial advisory services and investment banking
services. Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the
Official Committee of Unsecured Creditors and David J. Beckman
at FTI Consulting, Inc., gives financial advisory services to
the Committee. When the Debtor filed for protection from its
creditors, it listed US$600 million in total assets and US$1
billion in total debts.
About Grupo Mexico
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'. Fitch said the rating outlook is stable.
MOVIE GALLERY: Committee Taps Miles & Stockbridge as Co-Counsel
---------------------------------------------------------------
The Official Committee of Unsecured Creditors in Movie Gallery
Inc. and its debtor-affiliates' Chapter 11 cases asks authority
from the U.S. Bankruptcy Court for the Eastern District of
Virginia to retain Miles & Stockbridge P.C. as its co-counsel.
The Committee believes that Miles & Stockbridge is well
qualified to serve as its co-counsel. Brian F. Kenney, Esq.,
will serve as lead attorney. Mr. Kenney is a principal attorney
at the firm and is certified by the American Board of
Certification in business bankruptcy law. He has appeared in
the bankruptcy court on behalf of numerous creditors, debtors,
and creditor committees.
Miles & Stockbridge will represent the Committee as co-counsel
with Pachulski Stang Ziehl & Jones, LLP. Miles & Stockbridge
will also act as conflicts counsel with respect to any matter in
which the Committee is, or may be, adverse to Twentieth Century
Fox Film Corporation.
Mr. Kenney will be paid US$420 per hour. He will be assisted by
other partners, associates and paralegals, but no professional
at the firm will have an hourly rate exceeding US$420.
According to Mr. Kenney, his firm has conducted a conflicts
search utilizing its computerized conflicts system, and
discovered, among other things, that:
a. Miles & Stockbridge is co-counsel with Kirkland & Ellis
for Sun Capital Partners in the Rowe bankruptcy case in
Alexandria. Kirkland & Ellis is counsel for the Debtors
in the Chapter 11 cases.
b. Wachovia Bank, N.A. was the First Lien Collateral Agent
and Documentation Agent under the prepetition First Lien
Credit Agreement with the Debtors. Miles & Stockbridge
represents Wachovia Bank in a completely unrelated matter.
Miles & Stockbridge will not advise Wachovia in any
respect in connection with the Debtors' bankruptcy case,
and Wachovia has its own counsel in the case.
c. The Debtor has employed Keen Consultants, the Real Estate
Division of KPMG Corporate Finance, LLC, as real estate
consultants in their Chapter 11 cases. Miles &
Stockbridge represented KPMG in connection with its
recently-completed acquisition of the assets of Keen
Realty Consultants. As a follow-up thereto, Miles &
Stockbridge assisted KPMG with the preparation of its
application to be employed and its verified statement
under Rule 2014(a) of the Federal Rules of Bankruptcy
Procedure. KPMG has consented to Miles & Stockbridge's
representation of the Committee as co-counsel in the case.
Accordingly, if approved as Committee co-counsel, Miles &
Stockbridge will not be advising KPMG in connection with
the case. Because of the firm's relationship with KPMG
Corporate Finance, the firm has agreed not to become
adverse to KPMG. In the event that the Committee wishes
to take an adverse position to KPMG, the matter will be
handled by the Pachulski Stang firm, or by conflicts
counsel.
d. Oekos Management/Agora Property Corp. is one of the
Debtor's landlords, with a site in Maryland. Miles &
Stockbridge was approached to represent Oekos with respect
to its lease. Little to no work has been done on the
matter, as the Debtor has not announced whether it intends
to assume or reject this Lease. Accordingly, if approved
as co-counsel for the Committee, Miles & Stockbridge will
not represent Oekos in connection with this case.
e. Wells Fargo Bank, N.A. Wells Fargo, N.A., is the First
Lien Collateral Agent and Documentation Agent under the
Pre-Petition First Lien Credit Agreement with the Debtor.
M&S has represented Wells Fargo Bank, N.A., from time to
time in title insurance matters, through its title
insurance company. M&S also has represented Wells Fargo
Equipment Leasing and Finance, Inc., in equipment and
lease finance matters.
Mr. Kenney assures the Court that his firm neither holds nor
represents an interest materially adverse to the interests of
the estate or of any class of creditors or equity security
holders.
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. It operates over 4,600 stores in the United
States, Canada, and Mexico under the Movie Gallery, Hollywood
Entertainment, Game Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, serve as the Debtors' local counsel. The
Debtors' claims & balloting agent is Kutzman Carson Consultants
LLC. The U.S. Trustee for Region 4 appointed an Official
Committee of Unsecured Creditors in the Debtors' bankruptcy
proceedings on Oct. 18, 2007.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000. (Movie Gallery Bankruptcy News, Issue
No. 3; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Committee Selects Pachulski Stang as Lead Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in Movie Gallery
Inc. and its debtor-affiliates' bankruptcy cases seeks
permission from the U.S. Bankruptcy Court for the Eastern
District of Virginia to retain Pachulski Stang Ziehl & Jones LLP
as its lead counsel.
Committee Chairperson William Kaye relates that the firm has
extensive experience representing creditors' committees,
debtors, trustees and others in a wide variety of bankruptcy
cases.
As lead counsel, Pachulski will assist, advise, and represent
the Committee:
* in its consultations with the Debtors regarding the
administration of their Chapter 11 cases;
* in (i) analyzing the Debtors' assets and liabilities,
investigating the extent and validity of liens; and (ii)
participating in, and reviewing any proposed asset sales or
dispositions, financing arrangements, and cash collateral
stipulations or proceedings;
* in any manner relevant to reviewing and determining the
Debtors' rights and obligations under leases and other
executory contracts;
* in investigating the Debtors' acts, conduct, assets,
liabilities, and financial condition, as well as the
Debtors' operations and their desirability of continuance;
* in its participation in negotiation, formulation, and
drafting of a plan of liquidation or reorganization;
* on issues concerning the appointment of a trustee or an
examiner, pursuant to Section 1104 of Bankruptcy Code;
* in understanding its powers and duties under the Bankruptcy
Code and the Bankruptcy Rules, and in performing other
services in the interests of their represented parties; and
* in the evaluation of claims and on any litigation matters,
including avoidance actions.
In a statement filed with the Court, James I. Stang, Esq., a
partner at Pachulski, in Los Angeles California, discloses that
his firm will not represent the Committee with respect to:
-- the Debtors' request regarding Accommodation Agreements
with movie studio suppliers, which is to be represented by
the Committee's conflicts counsel; and
-- any litigation against Twentieth Century Fox Film
Corporation, which Pachulski represents in matters
unrelated to the Debtors' Chapter 11 cases, hence no
actual conflict exists regarding the Pachulski's prior
representation of Fox and its proposed representation of
the Committee.
In addition, Mr. Stang tells the Court that the Committee's
conflicts counsel will take the necessary steps to ensure that
every matter that his firm will not be involved in, will be
identified.
The firm's professionals will be paid based on the firm's hourly
billing rates, ranging from US$795 to US$75. A full-text copy
of the professionals' hourly rates is available at no charge at:
http://researcharchives.com/t/s?2515
Mr. Stang assures the Court that Pachulski is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code. The firm does not represent an interest
adverse to the Debtors' estates.
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. It operates over 4,600 stores in the United
States, Canada, and Mexico under the Movie Gallery, Hollywood
Entertainment, Game Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, serve as the Debtors' local counsel. The
Debtors' claims & balloting agent is Kutzman Carson Consultants
LLC. The U.S. Trustee for Region 4 appointed an Official
Committee of Unsecured Creditors in the Debtors' bankruptcy
proceedings on Oct. 18, 2007.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000. (Movie Gallery Bankruptcy News, Issue
No. 3; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Wants to Employ Ernst & Young as Tax Advisors
------------------------------------------------------------
Movie Gallery Inc. and its debtor-affiliates ask permission from
the U.S. Bankruptcy Court for the Eastern District of Virginia
to employ Ernst & Young LLP as their independent auditors,
accountants and tax advisors in their Chapter 11 cases.
Peter J. Barrett, Esq., at Kirkland & Ellis, LLP, in New York,
relates that prior to the Debtors' bankruptcy filing, the
Debtors have engaged Ernst & Young's auditing, accounting and
tax services. Hence, the firm has garnered considerable
knowledge and familiarity with the Debtors' business affairs,
and is well qualified and able to provide financial-related
services for the Debtors in a cost-effective, efficient, and
timely manner.
Acting on Movie Gallery, Inc.'s behalf, Page Todd, executive
vice president, secretary and general counsel to the Debtors,
entered into an audit services agreement and tax services
agreement with Ernst & Young.
Pursuant to the agreements, Ernst will provide audit and
accounting services, particularly:
(a) annual audit procedures necessary to express an opinion
on the Debtors' consolidated financial statements, and on
the effectiveness of their internal controls over
financial reporting, as of Jan. 6, 2008;
(b) quarterly review services for timely reviews of the
Debtors' consolidated quarterly financial information;
(c) research and consultation regarding financial accounting,
and reporting matters as, and when they arise;
(d) communications with the Audit Committee of the Board of
Directors of Movie Gallery, Inc., as required and
scheduled; and
(e) preparation of management letters to communicate to the
Debtors and the Audit Committee any material weaknesses
or significant deficiencies in internal controls over
financial reporting, if any, as well as suggestions for
improving any other deficiencies that do not rise to the
level of a material weakness or significant deficiency.
The firm will also perform certain tax services, including:
(a) routine on-call tax advice and assistance concerning
issues as requested by Movie Gallery, Inc.'s tax
department, provided that the projects are not covered by
a separate project addendum and do not involve any
significant tax planning or projects; and
(b) consultation related to the Debtors' bankruptcy filing
tax issues, including (i) effect of discharge of
indebtedness, if any, (ii) tax attribution reduction,
(iii) entitlement to refunds, (iv) analysis of Internal
Revenue Service (IRS) proofs of claim, (v) assistance
With advisory proceedings related to tax claims, and
(vi) potential to discharge IRS claims.
Ernst & Young will be paid based on its hourly rates:
Designation Hourly Rate
----------- -----------
Partners, Principals and Directors US$600
Senior Managers US$500
Managers US$400
Seniors US$250 - US$275
Staff US$200
Alvin L. Winterroth, Esq., a partner at Ernst & Young, informs
the Court that the Debtors made pre-bankruptcy payments for
US$521,306 and a retainer fee of approximately US$200,000 to his
firm.
As of the bankruptcy filing, Ernst & Young was owed US$60,645 of
prepetition payments by the Debtors. Upon the Court's approval
of the firm's retention in the Debtors' Chapter 11 Cases, the
firm will waive its right to receive any prepetition fees or
expenses incurred on the Debtors' behalf.
Mr. Winterroth assures the Court that Ernst & Young neither
holds nor represents any interest adverse to the Debtors and
their estates, and the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code, as
modified by Section 1107(b) of the Bankruptcy Code.
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. It operates over 4,600 stores in the United
States, Canada, and Mexico under the Movie Gallery, Hollywood
Entertainment, Game Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, serve as the Debtors' local counsel. The
Debtors' claims & balloting agent is Kutzman Carson Consultants
LLC. The U.S. Trustee for Region 4 appointed an Official
Committee of Unsecured Creditors in the Debtors' bankruptcy
proceedings on Oct. 18, 2007.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000. (Movie Gallery Bankruptcy News, Issue
No. 3; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
REMY: Obtains US$225MM Secured DIP Funding From Barclays Capital
----------------------------------------------------------------
Judge Carey of the U.S. Bankruptcy Court for the District of
Delaware granted Remy Worldwide Holdings, Inc., and its debtor
affiliates final approval to obtain up to US$225,000,000 of
secured postpetition financing from a syndicate of lenders led
by Barclays Capital, the investment division of Barclays Bank
PLC.
The approved DIP Financing consists of a US$120,000,000 Revolver
Credit Agreement and a US$105,000,000 First Lien Credit
Agreement.
Among the DIP Lenders are Barclays Bank PLC, Wachovia Capital
Finance Corporation, General Electric Capital Corporation and
Wells Fargo Foothill, LLC.
All objections not otherwise resolved or withdrawn are
overruled.
"The approval of the final DIP facility is right in line with
our game plan, and keeps us on track to complete our consensual
restructuring and emerge from Chapter 11 in early December as
planned," Remy Chief Executive Officer John Weber said in a
press release. "The DIP facility provides more than adequate
resources to fund our postpetition obligations to suppliers and
employees and our other operating requirements during the plan
confirmation process."
Available financing and advances under the DIP Facility
Agreement will be made only (i) to repay Remy's prepetition
indebtedness aggregating US$158,000,000; (ii) to fund Remy's
ordinary working capital and general corporate needs; and (iii)
to pay other amounts required or allowed to be paid under the
DIP Facility Agreement, the Court ruled.
As consideration for Remy's DIP obligations, the DIP Lenders are
granted superpriority claims, which will be payable from and
have recourse to any of Remy's unencumbered property.
As security for Remy's postpetition indebtedness, Barclays Bank,
as DIP Collateral Agent, is granted DIP Liens.
In the occurrence of an event of default under the DIP Facility,
the DIP Superpriority Claims and DIP Liens will be subject to a
Carve-Out. The Carve-Out refers to the payment of unpaid fees
and disbursements of the professionals of Remy and any official
unsecured creditors committee appointed in Remy's Chapter 11
cases in an aggregate amount not to exceed US$2,500,000, plus
fees payable to the U.S. Trustee pursuant to Section 1930 of the
Judicial Procedures Code.
The Administrative Claim for Remy's Prepetition Lenders is
deemed subordinate to the DIP Superpriority Claim and the Carve-
Out, and will be senior to the Replacement Liens afforded to the
noteholders of the senior floating rate notes due 2009 issued by
Remy.
The DIP Facility will terminate on the earliest of:
(i) six months after the date of the Closing Date,
(ii) the effective date of Remy's plan of reorganization,
or
(iii) the date of termination of the commitments or
acceleration of any outstanding extensions of credit.
Remy is directed, after receipt of a written summary invoice,
reimburse the DIP Lenders for their reasonable costs, fees and
expenses incurred in connection with their Chapter 11 cases.
A full text-copy of the 31-page Remy Final DIP Order is
available at http://bankrupt.com/misc/DIPOrder.pdf
The DIP Financing is vital to avoid irreparable harm to Remyu's
business, properties and estates and to allow the orderly
continuation of Remy's businesses, the Court opined.
Schedules Filing Deadline Extended
Judge Carey also gave Remy until December 7, 2007, to file its
Schedules of Assets and Liabilities and Statements of Financial
Affairs. The Court's ruling is a 30-day interim extension for
Remy to file the required Schedules and Statements.
Remy originally asked for a 45-day extension of the Schedules
filing deadline, asserting that its cases are complex and its
professionals are busy with other bankruptcy-related matters.
Kelly Beaudin Stapleton, the U.S. Trustee for Region 3, however,
opposed Remy's original request. The U.S. Trustee emphasized
that the nature and pace of the Debtors' cases require a prompt
deadline for filing Schedules and Statements, and suggested that
it will not object to a 30-day extension.
In light of the fact that Remy has delivered to the Court a
comprehensive Disclosure Statement and complete creditor matrix
on the Petition Date, the U.S. Trustee also contended that the
bulk of the information necessary for Remy to complete its
Schedules and Statements has already been compiled and should be
readily available.
The Court has yet to rule on Remy's request for a permanent
waiver of the obligation to file Schedules in the event that it
confirms its Plan of Reorganization prior to the expiration of
the extended Schedules filing period.
The U.S. Trustee has complained that by seeking a permanent
waiver of the Schedules filing requirement, Remy is seeking to
dispense with its obligation to advise creditors of its position
as to the extent and nature of the creditors' claims which are
being discharged under the Plan.
A hearing to confirm Remy's prepackaged Plan of Reorganization
is scheduled for Nov. 20, 2007.
About Remy Worldwide
Based in Anderson, Indiana, Remy Worldwide Holdings Inc. acts as
a holding company of all the outstanding capital stock of Remy
International Inc. Remy International --http://www.remyinc.com/
-- manufactures, remanufactures and distributes Delco Remy brand
heavy-duty systems and Remy brand starters and alternators,
locomotive products and hybrid power technology. The company
also provides a worldwide component core-exchange service for
automobiles, light trucks, medium and heavy-duty trucks and
other heavy-duty, off-road and industrial applications. Remy
has operations in the United Kingdom, Mexico and Korea, among
others.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 8, 2007 (Bankr. D. Del. Cases No. 07-11481 to
07-11509). Douglas P. Bartner, Esq., Fredric Sosnick, Esq., and
Michael H. Torkin, Esq., at Shearman & Sterling LLP, represent
the Debtors' in their restructuring efforts. Pauline K. Morgan,
Esq., Edmon L. Morton, Esq., and Kenneth J. Enos, Esq., at Young
Conaway Stargatt & Taylor, LLP, serve as co-counsels to the
Debtors. The Debtors' claims agent is Kurtzman Carson
Consultants LLC and their restructuring advisor is AlixPartners,
LLC. The Debtors' taps Greenbert Traurig, LLP, as special
corporate advisory and litigation counsel and Ernst & Young LLP
as their accountant, auditor and tax services provider.
At Sept. 30, 2006, Remy Worldwide's balance sheet showed total
assets of US$919,736,000 and total liabilities of
US$1,265,648,000. (Remy Bankruptcy News; Issue No. 5,
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SCO GROUP: Wants to Sell Certain Assets to JGD for US$36,000,000
----------------------------------------------------------------
The SCO Group Inc. and SCO Operations Inc. seek authority
from the U.S. Bankruptcy Court for the District of Delaware
to sell certain of their assets to JGD Management Corp. dba York
Capital Management, subject to higher and better offers.
The assets for sale are:
-- the Debtors' Unix operating system;
-- certain related claims in litigation; as well as
-- certain transfer, cross-license and related agreements
pertaining to the Hipcheck product line and Me Inc.
Mobile intellectual property owned by Me Inc., a
non-debtor affiliate.
Pursuant to an asset purchase agreement dated Oct. 22,2007,
JGD offered to buy the assets for US$36,000,000 and agreed to
post an earnest money deposit of US$1,800,000 or 5% of the
purchase price.
To participate in the auction, competing bids must accompany
a good faith cash deposit of not less than US$1,800,000.
In the event a competing bid outbids JGD's offer, JGD will be
entitled to an all cash breakup fee of US$780,000 plus
reimbursement of expenses incurred up to US$300,000.
Court documents did not disclose specific date and place of the
auction.
The Court will convene a hearing on Nov. 16,2007, at 4:00 p.m.
prevailing Eastern time, to consider the Debtors' request.
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). Paul Steven Singerman, Esq. and Arthur J.
Spector, Esq. at Berger Singerman PA and Laura Davis Jones, Esq.
at Pachulski Stang Ziehl & Jones LLP are co-counsels to the
Debtors. 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: IBM and Novell Balk at Proposed Asset Sale Procedure
---------------------------------------------------------------
International Business Machines Corporation and Novell Inc.,
creditors in The SCO Group Inc. and SCO Operations Inc.'s
chapter 11 cases, oppose the Debtors' proposed sale of certain
assets to JGD Management Corp. dba York Capital Management.
IBM tells the U.S. Bankruptcy Court for the District of Delaware
that the Debtors' proposed procedure for the sale is deficient
and that the bidder protections are based on a misleading
characterization of the purchase price.
IBM argues that the sale is improper and itself cannot be
approved because the Debtors propose to sell assets they don't
own.
Additionally, Novell contends that the sale is "ill-advised at
every level."
According to Novell, the Debtors have not "established an
adequate justification for emergency consideration of the
proposed sale on shortened notice, relying instead on
unsubstantiated claims of urgent circumstances allegedly
dictated by" JGD.
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). Paul Steven Singerman, Esq. and Arthur J.
Spector, Esq. at Berger Singerman PA and Laura Davis Jones, Esq.
at Pachulski Stang Ziehl & Jones LLP are co-counsels to the
Debtors. 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.
SR TELECOM: Posts US$22.2 Million Net Loss in 2007 Third Quarter
----------------------------------------------------------------
SR Telecom Inc. reported improved revenues and decreased losses
in its third quarter compared to the same period in 2006;
however, these results remained below management's expectations.
Third quarter revenues were adversely affected by a longer-than-
anticipated sales cycle with several large potential customers.
The company nonetheless remains encouraged by the continuing
interest in its symmetryMX suite of WiMAX solutions from
customers around the world.
The company also announced that, further to the strategic review
initiated on May 10, 2007, its Board of Directors has evaluated
the company's strategic options in the context of SR Telecom's
past and present financial situation, its order backlog, and the
likelihood of future success with its existing structure. The
Board has concluded that it is in the company's best interests
to actively pursue the sale of the company and/or its assets.
SR Telecom has engaged investment bankers Lazard Ltd. to assist
the company in identifying interested parties. The Board has
appointed a special committee in connection with this process,
which will continue to evaluate the company's strategic options.
"To grow and succeed in the global WiMAX market, SR Telecom
needs a strong financial footing, a diversified product
portfolio and the purchasing power to benefit from economies of
scale," said Paul Griswold, Chairman of the Board of SR Telecom.
Added President and CEO Serge Fortin, "While SR Telecom has
taken positive strides in 2007, its past financial performance
and current market perceptions weigh heavily on operations, and
the Company needs to consider alternatives to strengthen itself
other than solely through additional financing options."
Consolidated Third Quarter Results
SR Telecom's third quarter revenue grew 10% to US$18.0 million
from US$16.4 million during the same period in 2006. Revenue in
the third quarter of 2007 was below management's expectations
and was generated mainly through the ongoing implementation of
major legacy contracts in Mexico and Argentina. Operating loss
from continuing operations was US$19.6 million, a significant
decrease from the US$41.5 million operating loss recorded during
the same period one year ago. Net loss and comprehensive loss
was US$22.2 million compared to US$53.5 million in 2006.
A large portion of these improvements are due to the US$21.6
million in restructuring charges that were incurred in 2006.
Nonetheless, the 2007 third quarter showed a US$6.3 million
decline in selling, general and administrative (SG&A) expenses.
The SG&A gains, however, were offset by a US$7.0 million shift
from gross profit to gross loss, due primarily to a US$3.6
million write down of inventory, and to the Company's
symmetryONE product experiencing significant price pressure in
the market.
Backlog at Sept. 30, 2007 stood at US$19.3 million, the majority
of which is expected to be delivered by the end of this year.
This compares with US$45.4 million at the end of 2006 and
US$27.1 million at the end of the second quarter of 2007.
Financial Position
As announced on July 3, 2007, the company entered into an
agreement with a syndicate of lenders comprised of shareholders
providing for a term loan of US$35.0 million, all of which was
drawn at closing. An additional US$10 million term loan could
be available for drawdown, subject to certain conditions being
met, for a period of up to one year from closing. As at
Sept. 30, 2007, management believes the Company had not met all
of the conditions required to drawdown the additional US$10
million.
As at Sept. 30, 2007, the company's consolidated cash, including
restricted cash, was US$27.1 million, up slightly from US$26.2
million at Dec. 31, 2006.
About SR Telecom
Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) --
http://www.srtelecom.com/-- delivers broadband wireless access
(BWA) solutions that enable service providers to deploy voice,
Internet and next-generation services in urban, suburban and
remote areas. The company has offices in Mexico, France and
Thailand.
SR Telecom Inc.'s consolidated balance sheet at June 30, 2007,
showed CDNUS$83.9 million in total assets and CDN$97.9 million
in total liabilities, resulting in a CDN$14.0 million total
stockholders' deficit.
===========
P A N A M A
===========
AES CORP: Bear Stearns Upgrades Firm's Shares to Outperform
-----------------------------------------------------------
Bear Stearns Cos. said in a research report that it has upgraded
its share recommendation for AES Corp.'s Brazilian utility AES
Tiete SA to outperform from peer perform.
Dow Jones relates that Bear Stearns kept its 2008 price target
for AES common shares at BRL88.43.
Bear Stearns told Dow Jones, "Following its strong
underperformance, we are adding AES Tiete to our top picks list
in conjunction with an upgrade to outperform."
About AES Tiete
AES Tiete is controlled by Brasiliana Energia S.A., a holding
company jointly owned by AES Corp. and the Brazilian national
development bank BNDES.
About AES Corp.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Specifically, it also has operations
in India. Generating 44,000 megawatts of electricity through
124 power facilities, the company delivers electricity through
15 distribution companies. The company's Latin America business
group is comprised of generation plants and electric utilities
in Argentina, Brazil, Chile, Colombia, Dominican Republic, El
Salvador, Panama and Venezuela.
As reported in the Troubled Company Reporter-Latin America on
Oct. 12, 2007, Moody's Investors Service affirmed The AES
Corporation's Corporate Family Rating at B1 and the senior
unsecured rating assigned to its new senior unsecured notes
offering at B1 following its upsizing to US$2 billion from
US$500 million. LGD assessments are subject to change pending
the final capital structure.
As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1'
rating to AES Corporation's US$500 million issue of senior
unsecured notes due 2017. AES' long-term Issuer Default Rating
is rated 'B+' by Fitch. Fitch said the rating outlook is
stable.
=======
P E R U
=======
QUEBECOR WORLD: Inks US$341 Million Sell/Merge Deal with RSDB NV
----------------------------------------------------------------
Quebecor World Inc. and RSDB NV have signed a definitive Share
Purchase Agreement and Implementation Agreement to sell/merge
Quebecor World's European operations to RSDB Group. Under the
terms of the Share Purchase Agreement and Implementation
Agreement, RSDB will deliver to Quebecor World, at closing,
cash, a note and shares valued in the aggregate at approximately
240 million Euros or US$341 million, subject to certain post-
closing adjustments.
The aggregate consideration payable by RSDB to Quebecor World
will be paid in cash, shares and through the assumption of
indebtedness by RSDB.
RSDB will buy Quebecor World's European operations and Quebecor
World will retain a 29.9% interest in the merged entity that
will be named "Roto Smeets Quebecor" and will be listed on
Euronext Amsterdam.
Specifically, the consideration payable to Quebecor World will
be comprised of:
-- approximately 150 million Euros or US$213 million in cash;
-- a 35 million Euros or US$50 million note 8-year note
repayable from 2011 to 2015;
-- 1.4 million shares in RSQ representing approximately
29.9% of the issued and outstanding shares of the
combined business post-closing; and
-- assumption of QWE's pension, legal, and other
liabilities.
Completion of the merger is conditional, on the approval of the
shareholders of RSDB and receipt of clearances from the European
Commission. Closing is expected to take place by the end of
2007.
"This transaction is a key element of our 5-Point Transformation
Plan and is expected to deliver several significant benefits to
our shareholders," Wes Lucas, president and CEO Quebecor World,
stated. "The sale/merger will improve our balance sheet, and
will provide additional financial flexibility and strategic
options to create further shareholder value. We believe that it
will also enable us to strategically reposition our company to
focus on growing earnings within our core business in the
Americas, where we are a leader."
"We are pleased that retaining an investment in RSQ may present
an upside opportunity, as Quebecor World will help facilitate
the consolidation of the European print industry and the
creation of the leading printer in Europe, which will benefit
our customers and employees going forward," Mr. Lucas added.
Quebecor World and RSQ will also work together in the future to
serve global customers."
"The combination of Quebecor World's European printing business
with RSDB will enable RSDB, through its increased scale and
broader footprint throughout Europe, to play an important role
in the consolidation of the graphic industry in Europe," John
Caris, chief executive officer of RSDB stated. "We see a great
opportunity to pool the best practices and extensive industry
experience available in the two businesses and to benefit from
an attractive range of potential synergies".
In the event that the transaction is not completed as a result
of a default of one party, the defaulting party is obliged to
pay the other party a break-up fee of 15 million Euros or
US$21 million.
The supervisory board of RSQ will be comprised of five
directors. Two of the five members of the supervisory board
will be nominated by QWI. Resolutions of the supervisory board
are, in general, adopted by an absolute majority.
However upon completion of the sale/merger, Quebecor World and
RSDB have agreed that certain predefined corporate decisions
relating to important strategic matters, such as decisions
relating to mergers and acquisitions, the issuance of new shares
and the change of the dividend policy, will require a four out
of five majority vote.
RSDB's current CEO, John Caris, will lead RSQ. QWE's
experienced senior management team will continue to run the
operations in each European country from which it currently
operates. The key members of QWE's existing senior management
team have indicated their support for the transaction and their
continued involvement with the combined business. Their local
expertise will be a valuable asset of the combination of the
companies.
About RSDB NV
Headquartered in Hilversum, Netherlands, RSDB NV (Euronext:
RSDB) is a European provider of high-value graphic printing
services. RSDB's principal business, Print Productions,
produces full service gravure and offset printing material, with
seven printing facilities in The Netherlands and one printing
facility in Hungary, supported by sales offices in seven
European countries. RSDB's Marketing Communications business
focuses on marketing communications solutions and customer
management processes.
About Quebecor World
Headquartered in Montreal, Quebec, Canada, Quebecor World Inc.
(TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/--
provides marketing and advertising solutions to leading
retailers, catalogers, branded-goods companies and other
businesses with marketing and advertising activities, as well as
complete, full-service print solutions for publishers. The
company's major product categories include advertising inserts
and circulars, catalogs, direct mail products, magazines, books,
directories, digital premedia, logistics, mail list technologies
and other value-added services. Quebecor World has
approximately 27,500 employees working in more than 120 printing
and related facilities in the United States, Canada, Argentina,
Austria, Belgium, Brazil, Chile, Colombia, Finland, France,
India, Mexico, Peru, Spain, Sweden, Switzerland and the United
Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 31, 2007, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating to 'B' from 'B+' ratings on
Quebecor World Inc.
Moody's Investors Service downgraded Quebecor World Inc.'s
corporate family rating to B3 from B2 and the senior unsecured
ratings for subsidiary companies, Quebecor World Capital
Corporation and Quebecor World Capital ULC, also to B3 from B2.
=====================
P U E R T O R I C O
=====================
DIRECTV GROUP: Earns US$319 Mil. in Third Quarter Ended Sept. 30
----------------------------------------------------------------
The DIRECTV Group Inc. reported Wednesday that third quarter
2007 net income of US$319 million and operating profit of US$566
million declined 14% and 10%, respectively, compared with last
year's third quarter. Third quarter revenues increased 18% to
US$4.33 billion and operating profit before depreciation and
amortization increased 12% to US$1.00 billion compared to last
year's third quarter.
"The headline for the third quarter is that significantly
greater sales of high definition and digital video recorder
services to higher quality subscribers are having an extremely
positive impact on the key operating metrics that drive
DIRECTV's value," said Chase Carey, president and chief
executive officer of The DIRECTV Group Inc.
"Starting with subscriber demand in the U.S., net subscriber
additions were up 45% to 240,000 due to strong gross additions
and churn performance. The increase in gross additions to
1,032,000 was fueled by dramatic growth in the demand for
advanced services -- over 50% of new subscribers in the quarter
signed up for HD or DVR services compared to only 28% a year
ago. The increased demand for advanced services was also a
critical factor behind the large reduction in DIRECTV's monthly
churn rate to 1.61% compared to 1.80% last year, representing
one of the largest improvements in our history."
Carey continued, "DIRECTV U.S. also had strong financial
performance as revenues in the quarter were up 14% to
US$3.89 billion and operating profit before depreciation and
amortization increased 11% to US$916 million. The revenue
growth was due to an 8.3% increase in ARPU to US$78.79 and
strong subscriber growth. This ARPU increase represents
DIRECTV's best growth rate in several years and was propelled by
the higher service and equipment fees from new HD and DVR
customers. Of DIRECTV's total subscriber base, just under 40%
now have advanced services compared to less than 30% a year ago.
The increase in customers adding advanced services, as well as
converting to our newer MPEG-4 HD equipment, resulted in higher
upgrade and acquisition costs in the quarter compared to the
prior year. As we've highlighted in the past, customers with
advanced services generate significantly greater cash flows and
superior financial returns."
Carey added, "Our DIRECTV Latin American businesses also had
strong third quarter results. Significantly better gross
additions and churn drove a nearly fourfold increase in net
subscriber additions to 161,000 in the quarter. In addition,
revenues were up 67% to US$442 million and operating profit
before depreciation and amortization -- excluding a US$61
million one-time non-cash gain booked in 2006 -- was over three
times greater than last year's results primarily due to the
merger with Sky Brazil which was completed in August 2006, as
well as strong subscriber growth."
Carey concluded, "Similar to our third quarter results, we're
expecting continued strong operating performance in the coming
quarters as we continue to enhance the nation's already-best HD
service. We currently offer 74 national HD channels - more than
any cable TV provider in the U.S. - and we remain on schedule to
offer up to 100 channels around the end of the year. Consumers
are passionate about HD and DIRECTV is now the clear choice for
any consumer looking for the ultimate HD experience."
Third Quarter Review
In the third quarter of 2007, The DIRECTV Group's revenues of
US$4.33 billion increased 18% over the same period last year
principally due to strong ARPU and subscriber growth at DIRECTV
U.S. and DIRECTV Latin America, as well as the consolidation of
Sky Brazil's financial results subsequent to the merger with
DIRECTV Brazil in August 2006.
The 12% increase in operating profit before depreciation and
amortization to US$1.00 billion was primarily due to the gross
profit associated with the higher revenues, partially offset
by higher acquisition and upgrade costs at DIRECTV U.S. mostly
due to the increased number of new and existing customers adding
HD and DVR services. Operating profit declined 10% to US$566
million and net income fell 14% to US$319 million compared with
the third quarter of last year as the higher operating profit
before depreciation and amortization was more than offset by
higher depreciation and amortization principally due to
increased capitalization of customer equipment under the DIRECTV
U.S. lease program implemented in March 2006 and the
consolidation of Sky Brazil. Also impacting the comparison was
a non-cash pre-tax gain of US$61 million associated with the
DIRECTV Brazil and Sky Brazil merger in the third quarter of
2006.
Year-to-Date Review
In the first nine months of 2007, The DIRECTV Group's revenues
of US$12.37 billion increased 17% over the same period in the
prior year due to strong ARPU and subscriber growth at DIRECTV
U.S. and DIRECTV Latin America, as well as the consolidation of
Sky Brazil's financial results.
Operating profit before depreciation and amortization in the
first nine months of 2007 increased 24% to US$3.07 billion due
to the higher gross profit associated with the higher revenues
and the capitalization of customer equipment under the lease
program implemented in March 2006 at DIRECTV U.S., as well as
the consolidation of Sky Brazil's results. These improvements
were partially offset by higher acquisition and upgrade costs at
DIRECTV U.S. primarily related to the increased number of new
and existing customers adding HD and DVR services. Also
impacting the comparison was a US$57 million pre-tax gain
recorded in the first quarter of 2006 for the completion of
DIRECTV Latin America's Sky Mexico transactions and a pre-tax
gain of US$61 million associated with the DIRECTV Brazil and Sky
Brazil merger in the third quarter of 2006.
Operating profit of US$1.87 billion through September 2007
increased 6% compared with the same period in 2006 as the higher
operating profit before depreciation and amortization was
partially offset by higher depreciation and amortization
resulting primarily from the increased capitalization of
customer equipment under the DIRECTV U.S. lease program, as well
as the merger with Sky Brazil.
Net income increased 4% to US$1.10 billion in the first nine
months of 2007 primarily due to the changes in operating profit
partially offset by higher income tax expense related to the
higher pre-tax income.
Cash Flow
Cash flow before interest and taxes was relatively unchanged at
US$968 million in the first nine months of 2007 as higher
operating profit before depreciation and amortization was offset
by increased capital expenditures. Capital expenditures were
higher primarily at DIRECTV U.S. due to the implementation of
the equipment lease program in March 2006, higher costs for the
increased number of new and existing customers adding HD and DVR
services, and greater infrastructure costs associated with the
rollout of additional HD channels.
Free cash flow declined to US$592 million primarily due to an
increase in capital expenditures plus higher tax payments made
in the first nine months of 2007. Other uses of cash in the
first nine months of 2007 were for share repurchases of US$1.55
billion, the purchase of Darlene's interest in DIRECTV Latin
America for US$325 million and the repayment of US$210 million
of outstanding debt at Sky Brazil.
Balance Sheet
At Sept. 30, 2007, the company's consolidated balance sheet
showed US$14.977 billion in total assets, US$8.602 billion in
total liabilities, US$7 million in minority interests, and
US$6.368 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?2516
About The DIRECTV Group
Headquartered in El Segundo, California, The DIRECTV Group
(NYSE:DTV) -- http://www.directv.com/--, Inc. provides digital
television entertainment in the United States and Latin America.
It has two segments, DIRECTV U.S. and DIRECTV Latin America.
The DIRECTV U.S. segment provides direct-to-home digital
television services in the multichannel video programming
distribution industry in the United States. The DIRECTV Latin
America segment provides digital direct-to-home digital
television services to approximately 1.6 million subscribers in
27 countries, including Brazil, Argentina, Venezuela, and Puerto
Rico.
* * *
In April 2007, Standard & Poor's Ratings Services affirmed the
'BB' corporate credit and 'BB-' senior unsecured debt rating on
The DIRECTV Group Inc. S&P said the outlook is stable.
In addition, Standard & Poor's raised the bank loan rating on
US$2 billion of credit facilities at DIRECTV Holdings LLC, a
wholly owned subsidiary of The DIRECTV Group Inc, to 'BB+' from
'BB' and revised the recovery rating to '1' from '3'.
=================
V E N E Z U E L A
=================
CITGO PETROLEUM: Selling Two Asphalt Plant & Terminal To NuStar
---------------------------------------------------------------
Citgo Petroleum Corporation will sell two asphalt plants and a
terminal to NuStar Asphalt Refining L.L.C., news Web site ABN
reports.
Citgo Petroleum said in a press statement that the refineries
are in Paulsboro, New Jersey, and in Savannah, Georgia. The
terminal is in Wilmington, North Carolina.
According to ABN, the transaction involves the selling of the
assets and inventory of Citgo Petroleum's asphalt division. It
is part of a strategy the firm's main board set up to make it
more efficient and profitable in the long term, concentrating in
its main business.
ABN notes that the Paulsboro plant can process about 70,000
barrels of crude per day. The Savannah refinery can process
about 30,000 barrels of crude per day.
The report says that Citgo Petroleum and NuStar Asphalt would
conclude talks on the deal by year-end.
Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.
Petroleos de Venezuela is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical, and
coal industry, as well as planning, coordinating, supervising,
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 5, 2007, Fitch Ratings affirmed these CITGO Petroleum Corp.
ratings:
-- Issuer Default Ratings at 'BB';
-- US$1.15-billion senior secured credit facility at 'BBB-';
-- US$700-million secured term-loan B at 'BBB-';
-- Fixed-rate industrial revenue bonds at 'BBB-'.
Fitch says the rating outlook for Citgo Petroleum is stable.
* * *
Standard and Poor's Ratings Services assigned a 'BB' rating on
Citgo Petroleum Corp. in Feb. 14, 2006.
PETROLEOS DE VENEZUELA: Investing Over US$10B To Boost Output
-------------------------------------------------------------
Venezuelan energy minister Rafael Ramirez said in a statement
that state-run oil firm Petroleos de Venezuela SA will invest
over US$10 billion in 2008 to raise production to 5.8 million
barrels a day by 2012.
Minister Ramirez told Petroleumworld.com that the investment
plan for this year rose 657% to almost US$10 billion, compared
to last year. Petroleos de Venezuela is also investing:
-- US$3.30 billion in oil production facilities,
-- US$720 million in drilling operations, and
-- US$3.40 billion in gas.
Oil and gas royalties are expected to total US$8.70 billion this
year, Petroleumworld.com states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, US$2 billion notes due 2027, and US$1 billion notes due
2037.
* BOND PRICING: For the Week Nov. 5 to Nov. 9
---------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Argnt-Bocon PR11 2.000 12/3/10 ARS 62.74
Argnt-Bocon PR13 2.000 3/15/24 ARS 68.57
Arg Boden 2.000 9/30/08 ARS 27.89
Argent-Par 0.630 12/31/38 ARS 41.65
BRAZIL
------
CESP 9.750 1/15/15 BRL 61.40
CAYMAN ISLANDS
--------------
Vontobel Cayman 7.050 11/23/07 CHF 68.00
Vontobel Cayman 7.250 3/29/49 CHF 71.00
Vontobel Cayman 7.350 1/25/08 cHF 74.80
Vontobel Cayman 7.450 2/22/08 cHF 62.55
Vontobel Cayman 7.500 1/25/08 cHF 72.40
Vontobel Cayman 7.900 2/22/08 cHF 71.70
Vontobel Cayman 8.300 11/23/07 cHF 74.00
Vontobel Cayman 8.400 12/28/07 cHF 71.30
Vontobel Cayman 8.750 2/22/08 cHF 71.00
Vontobel Cayman 8.800 12/28/07 cHF 68.15
Vontobel Cayman 9.200 12/28/07 cHF 68.15
Vontobel Cayman 9.600 2/22/08 cHF 63.15
Vontobel Cayman 9.950 12/28/07 cHF 67.35
Vontobel Cayman 10.050 1/25/08 CHF 64.75
Vontobel Cayman 10.100 1/25/08 CHF 73.40
Vontobel Cayman 10.250 12/28/07 CHF 72.10
Vontobel Cayman 10.400 12/28/07 CHF 59.55
Vontobel Cayman 10.700 12/28/07 CHF 56.00
Vontobel Cayman 11.000 6/20/08 cHF 72.40
Vontobel Cayman 11.400 12/28/07 CHF 56.00
Vontobel Cayman 11.450 12/28/07 CHF 72.50
Vontobel Cayman 11.500 2/22/08 cHF 73.90
Vontobel Cayman 11.850 12/28/07 CHF 46.60
Vontobel Cayman 13.050 12/28/07 CHF 60.75
Vontobel Cayman 13.350 12/28/07 CHF 57.15
Vontobel Cayman 13.450 12/28/07 CHF 73.50
Vontobel Cayman 13.500 2/22/08 cHF 57.80
Vontobel Cayman 14.900 12/28/07 CHF 17.75
Vontobel Cayman 15.900 12/28/07 USD 60.20
Vontobel Cayman 16.000 12/28/07 EUR 55.40
Vontobel Cayman 16.450 12/28/07 EUR 65.55
Vontobel Cayman 16.800 12/28/07 CHF 4.25
Vontobel Cayman 18.800 12/21/07 USD 73.20
Vontobel Cayman 22.850 12/28/07 CHF 7.55
JAMAICA
-------
Jamaica Govt. LRS 7.500 10/06/12 JMD 73.17
PERU
----
Citigroup Peru 5.844 9/28/08 PEN 6.15
Edelnor S.A. 6.750 8/09/10 PEN 6.25
Luz Del Sur 7.250 2/06/08 PEN 3.50
PUERTO RICO
-----------
Puerto Rico Cons. 6.300 11/01/33 USD 73.50
Puerto Rico Cons. 5.900 4/15/34 USD 75.00
VENEZUELA
---------
Petroleos de Ven 5.250 4/12/17 US 72.87
Petroleos de Ven 5.375 4/12/27 US 61.68
Petroleos de Ven 5.500 4/12/37 US 59.45
***********
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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
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* * * End of Transmission * * *