/raid1/www/Hosts/bankrupt/TCRLA_Public/071206.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, December 6, 2007, Vol. 8, Issue 242
Headlines
A R G E N T I N A
ALITALIA SPA: Group Net Debt Stands at EUR1.18 Bil. in October
COSTANERA GESTION: Proofs of Claim Verification Ends Feb. 27
CUEROMAX SA: Proofs of Claim Verification Deadline Is March 14
DALAFER SA: Proofs of Claim Verification Is Until Feb. 5, 2008
KONINKLIJKE AHOLD: Completes Tops Market Sale to Morgan Stanley
LOGISTICA Y TRANSPORTE: Seeks for Reorganization Okay in Court
SANTANA SA: Proofs of Claim Verification Deadline Is March 10
* ARGENTINA: Sells Boden 2015 Bonds to Venezuela for US$604 Mil.
B E L I Z E
CONTINENTAL AIRLINES: Names John Slater LatAm Managing Director
B E R M U D A
AIRCASTLE BERMUDA: Holding Final Shareholders Meeting Tomorrow
AIRCASTLE BERMUDA HOLDING: Final Shareholders Meeting Tomorrow
AIRCASTLE BERMUDA (VIII): Final Shareholders Meeting Is Tomorrow
AIRCASTLE BERMUDA (IX): Final Shareholders Meeting Is Dec. 7
ARTISAN EQUITY: Holding Final Shareholders Meeting on Dec. 27
ARTISAN EQUITY: Proofs of Claim Filing Deadline Is Today
ARTISAN VENTURES: Sets Final Shareholders Meeting for Dec. 27
ARROWHEAD LTD: Proofs of Claim Filing Deadline Is Today
ARTISAN VENTURES: Proofs of Claim Filing Ends Today
BD MANAGEMENT: Holding Final Shareholders Meeting Today
CABLECOM LIMITED: Sets Final Shareholders Meeting for Dec. 27
FOUNTAINS FSC: Will Hold Final Shareholders Meeting Tomorrow
MSD LATIN: Final Shareholders Meeting Is Today
OPTIMA SHORT: Holding Final Shareholders Meeting Tomorrow
REGGA INSURANCE: Holding Final Shareholders Meeting Today
ST. AGATHA: Final Shareholders Meeting Is on Dec. 21
STENA CARRON: Holding Final Shareholders Meeting Today
B O L I V I A
COEUR D'ALENE: Palmarejo Shareholders Okay Bolnisi Acquisition
B R A Z I L
AES CORP: Unit To Decrease Concession Area Power Losses To 11.6%
BANCO BRADESCO: Selling Equity Interest in Bolsa de Mercadorias
BANCO NACIONAL: Discloses Portfolio for Sugar & Alcohol Sector
CHEMTURA CORPORATION: Appoints Lynn Schefsky as Secretary
COREL CORP: Partners with ConceptShare for Online Collaboration
GENERAL MOTORS: Bidding for Undisclosed Stake in OAO AvtoVAZ
GREIF INC: Declares US$0.69 Per Share Common Stock Dividends
LAZARD LTD: Picks Rodrigo de Rato as Senior Managing Director
UAP HOLDING: Selling Stake to Agrium Inc. Through Tender Offer
UAP HOLDING: US$2.65-Bln Agrium Deal Cues Moody's Ratings Review
VERIFONE HOLDINGS: Restating Financial Statements in Prior Qtrs.
* BRAZIL: Petrobras Inks Technological Pact with StatoilHydro
C A Y M A N I S L A N D S
PACIFIC STAR: Proofs of Claim Filing Ends on Dec. 14
SHINSEI FUNDING: Proofs of Claim Filing Deadline Is Dec. 14
SHINSEI FUNDING CAYMAN: Proofs of Claim Filing Ends on Dec. 14
SPECIAL SELECT: Proofs of Claim Filing Deadline Is Dec. 14
STAR PASSION: Proofs of Claim Filing Deadline Is Dec. 14
STOCKHORN CDO: Proofs of Claim Filing Is Until Dec. 14
TIGRE CRE: Proofs of Claim Filing Is Until Dec. 14
TOPIARY LIMITED: Proofs of Claim Filing Ends on Dec. 14
TRIPLE ONE: Proofs of Claim Filing Deadline Is Dec. 14
VENEZUELA INVESTMENTS: Proofs of Claim Filing Is Until Dec. 14
C H I L E
REVLON CONSUMER: Moody's Affirms Ratings, Shifts Outlook to Pos.
C O L O M B I A
BANCOLOMBIA SA: Donates COP14.7 Bln, Expects to Get Tax Benefits
KNOLL INC: Paying US$0.12 Per Share Cash Dividend on Dec. 28
SOLUTIA INC: Noteholders To Appeal Ruling on Claim
* COLOMBIA: Forms Power Firm Empresa de Energia for San Andres
D O M I N I C A N R E P U B L I C
GUESS INC: Earns US$58.3 Million in Third Quarter Ended Nov. 3
H O N D U R A S
* HONDURAS: Pres. Names Jorge Rosa as Temporary Hondutel Head
M E X I C O
ARROW ELECTRONICS: Combines Two Units Into US$1-Bln Software Biz
ACXIOM CORPORATION: Inks Strategic Deal with Search Initiatives
CLEAR CHANNEL: Board Declares US$0.1875 Per Share Dividend
CLEAR CHANNEL: Gets Okay for US$1.3-Billion Sale to Newport TV
CLEAR CHANNEL: Provides Update on Bain Capital/THLP Merger
INTERSTATE HOTELS: Closes US$118-Million Buyout of Three Hotels
MAZDA MOTOR: Planned Sales Consolidation Will Not Push Through
WESCO INTERNATIONAL: Acquires Assets of Monti Electric Supply
P E R U
FREEPORT-MCMORAN: Common Stock Dividend Up to US$1.75 Per Share
P U E R T O R I C O
ADELPHIA COMMUNICATIONS: Court Awards Comcast US$9 Million
AFC ENTERPRISES: Board Okays US$50-Mln Share Repurchase Increase
APARTMENT INVESTMENT: Corrects End of Dividend Period to Jan. 15
DORAL FINANCIAL: Sterne Puts Sell Rating on Firm's Shares
SIMMONS BEDDING: Names Steve Fendrich as Chief Operating Officer
V E N E Z U E L A
CHRYSLER LLC: Implements Downsizing Plan, Workers Leave
CMS ENERGY: Ford Deal Termination Won't Affect Fitch Ratings
PETROLEOS DE VENEZUELA: Wants 190 Oil Rigs by End of Next Year
* VENEZUELA: Buying Argentina's Boden 2015 Bonds for US$604 Mil.
* VENEZUELA: Fitch Won't Change Ratings After Referendum
* VENEZUELA: Referendum May Have Long Term Impacts, Moody's Says
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: Group Net Debt Stands at EUR1.18 Bil. in October
--------------------------------------------------------------
Alitalia Group's net debt as of Oct. 31, 2007, amounted to
EUR1.18 billion, showing a slight increase in net indebtedness
of EUR11 million (+0.9%) compared to the situation on
Sept. 30, 2007, announced on Oct. 31, 2007.
The net debt of the parent company Alitalia including short-term
financial credits for subsidiaries on Oct. 31, 2007 (including
short-term financial credits of subsidiaries) amounted to
EUR1.179 billion showing a slight increase of EUR10 million
(+0.9%) compared to net debt as of Sept. 30, 2007.
The Group's cash-to-hand and short-term financial credits as of
Oct. 31, 2007, at the Group level and for Alitalia, amounted to
EUR428 million and EUR431 million respectively.
It should be noted that as of Oct. 31, 2007, there were several
leasing contracts at the Group level whose capital share,
including lease closure value, amounted to EUR97 million. By
comparison, the same figure as of Sept. 30, 2007, amounted to
EUR98 million; the corresponding figures for the parent company
on Sept. 30, 2007, amounted to EUR85 million and EUR10 million
respectively.
It should also be noted that existing debts to banks are almost
entirely backed up by real guarantees (mortgages on aircraft) or
by personal guarantees (mainly guarantees issued by banks for
export credit). The relative financing contracts contain
standard legal clauses relating to withdrawal. None of the
contracts refer to specific requirements regarding assets or
economic/financial aspects, in order to maintain the credit
line.
During October 2007, repayments were made of medium/long-term
financing amounting to about EUR2 million.
Regarding debts of a financial, fiscal and social welfare
nature, there were no outstanding sums or payment irregularities
on Oct. 31, 2007, both for the parent company and
for the other companies in the Group.
As far as debts of a commercial nature are concerned, there were
no outstanding sums or payment irregularities on Oct. 31, 2007,
both for the parent company and for other Group companies,
except for those relating to disputed situations.
Regarding the latter, it should be noted that the controversy
over an outstanding sum owed to one airport management company
for disputed debts (as reported in previous communiques) was
finally settled in November 2007 through a transaction
agreement.
In addition, decisions are still pending for the petitions filed
by Alitalia regarding:
-- an injunction related to supposed different pricing
policies, issued by a carrier for EUR2.6 million;
-- another injunction issued by a supplier of on-board movies
for EUR1.2 million (two decrees);
-- a further injunction has been issued by an IT services
supplier for EUR812,000;
-- an injunction has been issued by an Italian subsidiary of
an air carrier bankruptcy for EUR288,000;
-- another injunction has been issued by a maintenance
services supplier for EUR492,000;
-- an injunction has been issued by the special manager of a
firm for presumed debts relating to air ticket sales, for
EUR3.2 million; and
-- injunctions issued by various suppliers for a total of
EUR119,000 (five decrees).
There are no other injunction orders or executive actions
undertaken by creditors notified as of Oct. 31, 2007, nor are
there any threats by suppliers to suspend operations.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.
COSTANERA GESTION: Proofs of Claim Verification Ends Feb. 27
------------------------------------------------------------
Ricardo Adrogue, the court-appointed trustee for Costanera
Gestion SA's bankruptcy proceeding, verifies creditors' proofs
of claim until Feb. 27, 2008.
Mr. Adrogue will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 11 in Buenos Aires, with the assistance of Clerk
No. 21, 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 Costanera Gestion 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 Costanera Gestion's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Adrogue is also in charge of administering Costanera
Gestion's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Costanera Gestion SA
Lavalle 1454
Buenos Aires, Argentina
The trustee can be reached at:
Ricardo Adrogue
Bouchard 468
Buenos Aires, Argentina
CUEROMAX SA: Proofs of Claim Verification Deadline Is March 14
--------------------------------------------------------------
Rodolfo Fernando Daniel Torella, the court-appointed trustee for
Cueromax S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until March 14, 2008.
Mr. Torella will present the validated claims in court as
individual reports on April 25, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Cueromax 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 Cueromax's accounting
and banking records will be submitted in court on
June 9, 2008.
Mr. Torella is also in charge of administering Cueromax's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Rodolfo Fernando Daniel Torella
Arcos 3726
Buenos Aires, Argentina
DALAFER SA: Proofs of Claim Verification Is Until Feb. 5, 2008
--------------------------------------------------------------
Jorge Basile, the court-appointed trustee for Dalafer S.A.'s
reorganization proceeding, verifies creditors' proofs of claim
until Feb. 5, 2008.
Mr. Basile will present the validated claims in court as
individual reports on March 18, 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 Dalafer 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 Dalafer's accounting
and banking records will be submitted in court on
April 29, 2008.
The trustee can be reached at:
Jorge Basile
J. E. Uriburu 782
Buenos Aires, Argentina
KONINKLIJKE AHOLD: Completes Tops Market Sale to Morgan Stanley
---------------------------------------------------------------
Koninklijke Ahold N.V. has successfully completed the sale of
Tops Markets, LLC, to Morgan Stanley Private Equity.
This follows the agreement announced on Oct. 11, 2007, on a
purchase price of US$310 million. The final purchase price is
subject to customary price adjustments. Closing of the
transaction was subject to the fulfillment of customary
conditions, including anti-trust clearance and a financing
condition.
Capitalized lease obligations will remain with Tops, although
Ahold will retain contingent liability for the majority of these
lease obligations.
The divestment of Tops is part of Ahold's strategy resulting
from its retail review announced in November 2006.
Tops operates stores in western New York, mid-state New York
including the Rochester area, and northwestern Pennsylvania
under the banners of Tops Markets and Martin's Super Food
Stores. Tops currently employs approximately 10,000 full- and
part-time employee
About Ahold
Headquartered in Amsterdam, Koninklijke Ahold N.V. (fka Royal
Ahold) -- http://www.ahold.com/-- retails food through
supermarkets, hypermarkets and discount stores in North and
South America, Europe. It has operations in Argentina. The
company's chain stores include Stop & Shop, Giant, TOPS, Albert
Heijn and Bompreco. Ahold also supplies food to restaurants,
hotels, healthcare institutions, government facilities,
universities, stadiums, and caterers.
* * *
As of Nov. 19, 2007, Koninklijke Ahold carries BB+ Issuer
Default and senior unsecured ratings from Fitch Ratings. Fitch
said the outlook is positive. Its short-term rating is B.
LOGISTICA Y TRANSPORTE: Seeks for Reorganization Okay in Court
--------------------------------------------------------------
Logistica y Transporte SA has requested for reorganization
approval after failing to pay its liabilities since
Sept. 15, 2007.
The reorganization petition, once approved by the court, will
allow Logistica y Transporte to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance No. 7 in Buenos Aires. Clerk No. 13 assist in this
case.
The debtor can be reached at:
Logistica y Transporte SA
Parana 693
Buenos Aires, Argentina
SANTANA SA: Proofs of Claim Verification Deadline Is March 10
-------------------------------------------------------------
Sara Rey de Lavolpe, the court-appointed trustee for Santana
SA's bankruptcy proceeding, verifies creditors' proofs of claim
until March 10, 2008.
Ms. de Lavolpe will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 7 in Buenos Aires, with the assistance of Clerk
No. 14, 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 Santana 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 Santana's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Ms. de Lavolpe is also in charge of administering Santana's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Santana SA
Tucuman 1673
Buenos Aires, Argentina
The trustee can be reached at:
Sara Rey de Lavolpe
Cerrito 1136
Buenos Aires, Argentina
* ARGENTINA: Sells Boden 2015 Bonds to Venezuela for US$604 Mil.
----------------------------------------------------------------
El Universal relates that Argentina has sold Boden 2015 bonds to
Venezuela. The bonds, with a face value of US$604 million, is
part of a last month's deal, which moved to over US$5 billion
the sale of Argentinean securities to the Venezuelan State over
the past three years.
According to the report, the Argentinean government has received
US$500 million after the transaction and added that the money
had entered the Treasury on Nov. 19.
The resolution, which was released on Dec. 4, has disclosed that
the operation would be conducted in the future, El Universal
states.
However, a Minister of Economy spokesman has clarified that it
was the formalization, 12 days after, of an announcement made
last November, Reuters says.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
===========
B E L I Z E
===========
CONTINENTAL AIRLINES: Names John Slater LatAm Managing Director
---------------------------------------------------------------
Continental Airlines Inc. has named John Slater as managing
director, Latin America, effective Jan. 1, 2008.
Formerly Continental's managing director of Distribution
Planning and Electronic Commerce, Mr. Slater replaces Pete
Garcia, who will retire on Dec. 31, 2007, after close to 30
years of outstanding service to the airline. Mr. Slater will
report to Continental's senior vice president worldwide sales,
Dave Hilfman.
"John has the energy, experience and forward-thinking leadership
skills to ensure that Latin America and the Caribbean remain a
top priority for Continental," said Mr. Hilfman. "Like Pete,
John is a dynamic leader who will ensure we continue to expand
our presence and sales throughout Latin America and the
Caribbean, which now comprise more than half of our
international destinations."
Mr. Slater previously managed the development, design and
support for continental.com and formulated the airline's global
distribution strategy. He has held various senior-level
positions in flight operations, customer service, sales and
marketing since he joined the airline in 1986, including senior
director of sales for the Midwest Sales Division in Cleveland,
Ohio.
Mr. Slater began his airline career with People Express Airlines
in 1982 and assisted with the merger with Continental in 1986.
"Pete Garcia did a fantastic job leading our Latin American
expansion and has had a very distinguished career here at
Continental," said chairperson and Chief Executive Officer,
Larry Kellner. "We're proud of his many accomplishments and
wish him well."
Mr. Garcia is starting a consulting practice, which will focus
on increasing business opportunities among countries throughout
the Americas and Continental will be his first client.
Continental was named "Best Airline to Latin America" in Latin
Trade Magazine's "Best of Latin America" Readers Choice Poll of
2007.
Continental's Latinization services include bilingual flight
attendants on many flights to Latin America; and bilingual
airport personnel, reservations agents and signage. Spanish-
language functions on the continental.com website include flight
booking, check-in, seat selection, flight and gate information,
and OnePass frequent flyer program enrollment. Passengers also
may make reservations in Spanish at 1-800-537-9222.
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 3,100 daily departures throughout Belize, Mexico, Europe
and Asia, serving 154 domestic and 138 international
destinations including Honduras and Bonaire. More than 400
additional points are served via SkyTeam alliance airlines.
With more than 44,000 employees, Continental has hubs serving
New York, Houston, Cleveland and Guam, and together with
Continental Express, carries about 67 million passengers per
year.
* * *
As of March 2007, Continental Airlines carries Moody's Investors
Service's B2 corporate family rating. The company also carries
Moody's B3 senior unsecured rating and Caa1 preferred stock
rating.
=============
B E R M U D A
=============
AIRCASTLE BERMUDA: Holding Final Shareholders Meeting Tomorrow
--------------------------------------------------------------
Aircastle Bermuda Holding VI Limited will hold its final
shareholders meeting on Dec. 7, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
AIRCASTLE BERMUDA HOLDING: Final Shareholders Meeting Tomorrow
--------------------------------------------------------------
Aircastle Bermuda Holding VII Limited will hold its final
shareholders meeting on Dec. 7, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
AIRCASTLE BERMUDA (VIII): Final Shareholders Meeting Is Tomorrow
----------------------------------------------------------------
Aircastle Bermuda Holding VIII Limited will hold its final
shareholders meeting on Dec. 7, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
AIRCASTLE BERMUDA (IX): Final Shareholders Meeting Is Dec. 7
------------------------------------------------------------
Aircastle Bermuda Holding IX Limited will hold its final
shareholders meeting on Dec. 7, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
ARTISAN EQUITY: Holding Final Shareholders Meeting on Dec. 27
-------------------------------------------------------------
Artisan Equity Limited will hold its final shareholders meeting
on Dec. 27, 2007, at 10:00 a.m. at:
Cox Hallett Wilkinson
Milner House, 18 Parliament Street
Hamilton HM12, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in which
the books, accounts and documents of the company
and of the liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
ARTISAN EQUITY: Proofs of Claim Filing Deadline Is Today
--------------------------------------------------------
Artisan Equity Limited's creditors are given until Dec. 6, 2007,
to prove their claims to Ernest A. Morrison, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Artisan Equity's shareholder decided on Nov. 13, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Ernest A. Morrison
Milner House, 18 Parliament Street
Hamilton, Bermuda
ARTISAN VENTURES: Sets Final Shareholders Meeting for Dec. 27
-------------------------------------------------------------
Artisan Ventures Limited will hold its final shareholders
meeting on Dec. 27, 2007, at 10:00 a.m. at:
Cox Hallett Wilkinson
Milner House, 18 Parliament Street
Hamilton HM12, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
ARROWHEAD LTD: Proofs of Claim Filing Deadline Is Today
-------------------------------------------------------
Arrowhead Ltd.'s creditors are given until Dec. 6, 2007, to
prove their claims to Ernest A. Morrison, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Arrowhead's shareholder decided on Nov. 16, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Ernest A. Morrison
Milner House, 18 Parliament Street
Hamilton, Bermuda
ARTISAN VENTURES: Proofs of Claim Filing Ends Today
---------------------------------------------------
Artisan Ventures Limited's creditors are given until
Dec. 6, 2007, to prove their claims to Ernest A. Morrison, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Artisan Ventures' shareholder decided on Nov. 13, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Ernest A. Morrison
Milner House, 18 Parliament Street
Hamilton, Bermuda
BD MANAGEMENT: Holding Final Shareholders Meeting Today
-------------------------------------------------------
BD Limited will hold its final shareholders meeting on
Dec. 6, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
CABLECOM LIMITED: Sets Final Shareholders Meeting for Dec. 27
-------------------------------------------------------------
Cablecom Limited will hold its final shareholders meeting on
Dec. 27, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
FOUNTAINS FSC: Will Hold Final Shareholders Meeting Tomorrow
------------------------------------------------------------
Fountains FSC Ltd. will hold its final shareholders meeting on
Dec. 7, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
MSD LATIN: Final Shareholders Meeting Is Today
----------------------------------------------
MSD Latin America Services Ltd. will hold its final shareholders
meeting on Dec. 6, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
OPTIMA SHORT: Holding Final Shareholders Meeting Tomorrow
---------------------------------------------------------
The Optima Short Fund Limited will hold its final shareholders
meeting on Dec. 7, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
REGGA INSURANCE: Holding Final Shareholders Meeting Today
---------------------------------------------------------
Regga Insurance Limited will hold its final shareholders meeting
on Dec. 6, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
ST. AGATHA: Final Shareholders Meeting Is on Dec. 21
----------------------------------------------------
St. Agatha Re Ltd. will hold its final shareholders meeting on
Dec. 21, 2007, at 10:00 a.m. at:
KPMG Advisory Limited
Crown House, 4 Par-la-Ville Road
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in which
the books, accounts and documents of the company
and of the liquidator shall be disposed; and
-- passing of a resolution dissolving the company.
STENA CARRON: Holding Final Shareholders Meeting Today
------------------------------------------------------
Stena Carron Limited will hold its final shareholders meeting on
Dec. 6, 2007, at 9:30 a.m. at:
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
=============
B O L I V I A
=============
COEUR D'ALENE: Palmarejo Shareholders Okay Bolnisi Acquisition
--------------------------------------------------------------
Palmarejo Silver and Gold Corporation shareholders has approved
a plan of arrangement pursuant to which, among other things,
Coeur d'Alene Mines Corporation will acquire all of the
outstanding shares of Palmarejo held by shareholders other than
Bolnisi and, through its acquisition of Bolnisi Gold NL, all of
the Palmarejo shares held by Bolnisi, as more particularly
described in the Palmarejo Notice and Management Information
Circular dated Oct. 31, 2007.
At a meeting of Palmarejo shareholders held earlier today, the
arrangement was approved by over 99.99% of the votes cast, and
99.99% of the "minority" votes, excluding those votes required
to be excluded by applicable securities laws. Approximately
90.2% of the total eligible Palmarejo shares were voted at the
meeting. Under the terms of the arrangement, Palmarejo
shareholders will receive 2.715 Coeur shares and US$0.004 for
each Palmarejo share.
"Today's overwhelming vote in favor of this arrangement
demonstrates that our shareholders support Palmarejo joining
forces with Coeur," said James Crombie, President and Chief
Executive Officer of Palmarejo. "The new Coeur, with the
addition of Palmarejo's projects, will enjoy an excellent
profile in the industry."
On Dec. 4, 2007, Bolnisi shareholders also voted in favor of the
resolution to allow the offer by Coeur to acquire all of the
shares of Bolnisi by way of a scheme of arrangement to be
implemented in accordance with the Merger Implementation
Agreement between Bolnisi and Coeur. Under the scheme of
arrangement, Bolnisi shareholders will receive 0.682 of a Coeur
share and A$0.004 in cash for each Bolnisi share.
Coeur announced on Dec. 3, 2007 that it has adjourned its
special meeting of shareholders to vote on the amendment of its
charter and the issuance of its shares in connection with its
proposed acquisition of Bolnisi and Palmarejo to Dec. 7, 2007,
at 4:00 p.m. (PST). Coeur has received overwhelming support for
the proposals related to the acquisition with in excess of 91%
of the votes submitted having voted in favor. Proxies are
continuing to be received and votes representing an additional
1.7% of the outstanding shares are needed to achieve quorum and
enable the matters to be put to a vote at the meeting. The
adjournment will allow Coeur to receive the necessary additional
proxies.
Palmarejo's application to the Ontario Superior Court of Justice
to obtain the final court order approving the arrangement is
scheduled for Dec. 5, 2007.
Completion of the transaction remains subject to satisfaction of
certain conditions set out in the plan of arrangement and the
Merger Implementation Agreement between Palmarejo and Coeur.
About Palmarejo Silver
Palmarejo Silver And Gold Corporation is a silver/gold
exploration company listed on the TSX Venture Exchange under the
symbol "PJO". Palmarejo's principal activity is to explore and
develop gold and silver properties located in the Temoris
District of Chihuahua, Mexico within the Sierra Madre Occidental
mountain range. Additional information is available on SEDAR
and on the Company's website.
About Coeur d'Alene
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's B- rating.
===========
B R A Z I L
===========
AES CORP: Unit To Decrease Concession Area Power Losses To 11.6%
----------------------------------------------------------------
AES Eletropaulo's corporate revenue manager Charles Capdeville
told Business News Americas that power losses in the firm's
concession area will decrease to 11.6% of overall distribution
in 2007, from 12.0% in 2006.
AES Eletropaulo wants to reduce the "rate," planning to bring
down power losses in its concession area by 0.4 percentage
points a year to 9.7% or 9.8% in the next five years, BNamericas
says, citing AES Eletropaulo's loss reduction manager Jose
Cavaretti.
Mr. Capdeville told BNamericas.com that AES Eletropaulo
decreased by a third energy consumption in Paraisopolis, one of
Sao Paulo's poorest neighborhoods.
BNamericas relates that consumption declined partly due to AES
Eletropaulo's Paraisopolis clients, who began paying for power.
Mr. Capdeville commented to BNamericas, "We had a 100% loss rate
in Paraisopolis. After a major and thorough community awareness
program, we were able to reduce power losses to 65% of all
consumption."
According to BNamericas, Paraisopolis has about 4,365 power-
consuming units:
-- 80% are residential customers,
-- 10% are commercial users, and
-- 10% are a mix of residential and commercial
clients.
Mr. Cavaretti told BNamericas that the firm was able to catalog
power users in the community through door-to-door visits,
conducting mini-audits in over 4,000 homes and 70 shops. The
firm distributed about 9,600 efficient light bulbs and some 500
new refrigerators in the community in an effort to encourage
conservation.
"After a user migrates to our client database, it is hard for
them to become delinquent again as we connected Paraisopolis
slum to the system with state-of-the-art cables, which make
illegal connections more difficult," Mr. Capdeville commented to
BNamericas.
BNamericas notes that polling institute Ibope 's director Silvia
Penteado Cervellini said during a conference in Sao Paulo that a
market study by the institute indicated that 62% of Paraisopolis
residents accept Eletropaulo's program. Ms. Cervellini
explained that the approval rating was taken from interviews
with 400 power users. When the institute only considers users
who were given brand new refrigerators, this increases to 88%.
The residents were positive that the program can lessen the risk
of fire and boost efficiency.
Paraisopolis was chosen as it is among the poorest areas in AES
Eletropaulo's concession area. It also has a mix of residential
and commercial users, BNamericas states, citing Mr. Capdeville.
About AES Eletropaulo
AES Eletropaulo is a power distributor in Sao Paulo. It has 4.6
million clients and serves an estimated 14 million people in its
4,526sq km concession area. In terms of revenues, it is the
largest electricity distributor in Latin America.
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.
BANCO BRADESCO: Selling Equity Interest in Bolsa de Mercadorias
--------------------------------------------------------------
The Bradesco Organization has sold part of its interest in the
Capital Stock in Bolsa de Mercadorias & Futuros -- BM&F S.A.,
within the scope of the Initial Public Offering, generating a
pre-tax profit of BRL227 million, informing its shareholders and
the market in general.
The remaining direct and indirect interest of 2.52%, corresponds
to BRL454 million at the price of BRL20.00 per share determined
in the bookbuilding procedure.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE:
BBD) -- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management. Bradesco has branches throughout Brazil as
well as one in New York, and Japan. Bradesco offers Internet
banking, insurance, pension plans, annuities, credit card
services (including football-club affinity cards for the soccer-
mad population), and Internet access for customers. The bank
also provides personal and commercial loans, along with leasing
services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2006, Standard & Poor's Ratings Services maintained the
'BB+' ratings on both of Banco Bradesco SA's foreign and local
currency counterparty credit rating, however it changed the
ratings outlook to positive from stable on both ratings:
-- Foreign currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Local currency counterparty credit rating
* to BB+/Positive/B from BB+/Stable/B
-- Brazil national scale rating
* to brAA+/Positive/brA-1 from brAA+/Stable/brA-
BANCO NACIONAL: Discloses Portfolio for Sugar & Alcohol Sector
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social Vice
President, Armando Mariante, reported on Dec. 3, the portfolio
of biofuels, which will add up to Bank financings in the amount
of BRL19.7 billion. Mr. Mariante, who was present at the
interview with the superintendent of the Industrial area, Jorge
Kalache, the head of Biofuels Department (DEBIO), Carlos Eduardo
de Siqueira Cavalcanti, and the manager, Paulo Faveret, call the
attention to the trend in the worldwide market to replace oil by
other energy sources, more environmentally favorable, as the
ethanol.
The recent creation of DEBIO, according to Mr. Kalache, shows
the importance this matter has been gaining within the Bank.
This year, disbursements to this sector should reach BRL3.2
billion. Until October, BRL2.9 billion were liberated,
equivalent to 5.1% of total BNDES disbursements. In 2004, the
Bank liberated BRL605 million to this same segment, 1.2% of the
total.
"Ethanol production is predominant in new projects. Companies
are born with focus on the external market. In previous years
these were half in the production of sugar and another half in
ethanol," added Mr. Kalache. Carlos Eduardo Siqueira informed
that companies have been signaling projects, which may reach
over 4 million tons of sugar cane.
Another focus of BNDES action in the sector, according to him,
is the support to company globalization and technology. The
Bank has been monitoring this process and has already started
investigating the intentions to invest and export machines and
equipment, both to Latin America and Africa.
Paulo Faveret emphasized that the grinding increase forecast for
the biennium 2008 to 2010, around 100 million tons of sugar
cane, is equivalent to a 26% increase as compared to 2005 and
2006 harvest. The 47 ongoing co-generation projects will
generate 1.4 thousand MW, throughout the next two years.
The biofuel portfolio, comprising all BNDES lines adds up to
BRL19,7 billion financings. Out of this total, BRL15.4 billion
correspond to projects for the production of sugar and alcohol,
BRL2.3 billion for co-generation, BRL1.8 billion for sugar cane
cultivation and BRL142.5 million for research and development in
the sector. These figures include all Bank lines addressed to
the sector, including those carried out by means of indirect
operations. That is, via financial agents.
The new DEBIO, created in September this year by the Directors
of the Bank and exclusively dedicated to sugar and alcohol
projects, already relies on a portfolio comprising 77
operations. These projects will demand BRL12.1 billion
financings, equivalent to BRL17.3 billion investments, and will
represent grinding of 100 million tons of sugar cane.
The creation of DEBIO was motivated by the increased number of
mill projects addressed to sugar and alcohol production and
reveals the priority given by BNDES administration to support a
sector which became strategic for the Country, for its
competitiveness and the technology developed for the production
of ethanol.
The investment in sugar cane productive chain started to offer
more dynamism since the participation of flex-fuel (biofuels)
vehicles in the Brazilian fleet increased. Currently, the volume
of flex-fuel cars already represents around 90% of the total
sold in the Country. Alcohol is a clean and renewable source
fuel, which is added to the mix with gas (anhydrous alcohol), or
used in pure (hydrated alcohol) in flex-fuel cars.
This scenario is reflected in BNDES disbursements for the sugar-
alcohol sector (includes sugar cane cultivation, sugar and
alcohol production and co-generation), which showed impressive
increase in the last three years. In 2004, BRL604 million were
liberated, BRL1 billion in 2005, BRL1.9 billion in 2006, and,
until October 2007, the Bank disbursed BRL2.9 billion to the
sector. In view of this, liberations reached BRL6.4 billion in
the last three years, including direct and indirect operations.
BRL4 billion disbursements for the production of sugar and
alcohol have accounted for most of the accumulated result. In
2004, BRL333.5 million were liberated, which jumped to BRL1.7
billion only in the first nine months of 2007. This performance
represents a result 17% higher than that obtained last year, of
BRL 1.3 billion. BNDES liberations, in the period, exclusively
for sugar cane cultivation were BRL1.2 billion, and for co-
generation, BRL658 million.
Approvals have also significantly increased, reaching BRL5.8
billion from 2004 to September 2007. The total approved in 2006
(BRL1 billion) was almost four times higher than that recorded
in 2004 (BRL323.3 million). During the first nine months this
year, the amount approved (BRL3.3 billion) was 160% higher than
in full last year (BRL 1.2 billion).
Such performance is mainly determined by the increased approval
to sugar and alcohol production projects, which accounted for
BRL4.4 billion out of the total BRL5.8 billion. It is worth
highlighting, however, that since this year, the Bank started
receiving projects for research and development in the sector
and approvals already reach a total BRL74.6 million in the first
nine months of 2007.
Co-Generation
Investments carried out in sugar cane cultivation for sugar and
alcohol production are also, partly destined to co-generation,
from sugar cane bagasse, bringing favorable impacts to
environment. In many cases, such operations replaced the
burning of fossil fuels, as those derivative from oil, by sugar
cane bagasse, a residue of sugar and alcohol production, thus
contributing for reduced carbon emission in the atmosphere.
There are currently 47 projects in the Bank, with potential to
reach 1.4 thousand megawatts of electric power, to be made
available to the national system. To have an idea about the
generation capacity from sugar cane residue, the potential
exceeds the initial target stipulated for those projects based
on Small Hydroelectric Power Plants of Proinfa, the Program for
Incentive to Alternative Electric Power Sources, which was 1.3
thousand MW. Co-generation operations add up to BRL 2.2 billion
financings, BRL1.1 billion of which are already contracted.
Region
The largest investments of the sugar-alcohol sector, that is,
over BRL300 million, are concentrated in South Mato Grosso do
Sul and South Goias, as well as in the Extreme West of Minas
Gerais. This happens as a result of the lower production cost,
above all in view of the low cost of leased land.
Lower investments, however, frequently destined to the expansion
of existing power plants, are concentrated in regions with a
significant industrial park, which major example is Sao Paulo.
In relation to co-generation, the assessment of project regional
distribution shows a significant concentration in the State of
Sao Paulo. This happens as a result of the ample installed
power plant park and the density of the transmission network.
However, new power plant projects are concentrated in Minas
Gerais, Mato Grosso do Sul and Goias, states which comprise the
sector expansion borders.
Disbursements for the Southeastern region have a significant
share, which can be explained by the importance of the power
plant park in operation in the State of Sao Paulo. However,
there is a significant increase in the Midwestern region, mainly
in view of the choice of Goias and Mato Grosso do Sul as
preferential states to receive investments in new power plants.
About BNDES
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.
CHEMTURA CORPORATION: Appoints Lynn Schefsky as Secretary
---------------------------------------------------------
Chemtura Corporation disclosed that Lynn A. Schefsky, has added
the role of secretary to his current position of senior vice
president and general counsel, which he has held since 2004.
Mr. Schefsky was named secretary, effective Dec. 1, following
the recent retirement of Barry J. Shainman, who had served as
secretary since 2000.
"We thank Barry for his 18 years of service with Chemtura and
its predecessor companies and wish him a long and healthy
retirement," said Mr. Schefsky, senior vice president, general
counsel and secretary.
About Chemtura Corp.
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE:CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection, and pool, spa and home care products. The company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries. The company has facilities
in Singapore, Australia, China, Hong Kong, India, Japan, South
Korea, Taiwan, Thailand, Brazil, Belgium, France, Germany,
Mexico, and The United Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Moody's Investors Service lowered Chemtura
Corporation's ratings:
-- Corporate Family Rating: Ba2 from Ba1
-- Senior notes, US$500 million due 2016: Ba2 from Ba1;
LGD4 (53%)
-- Senior Unsecured Notes, US$150 million due 2026: Ba2
from Ba1; LGD4 (53%)
-- Senior Unsecured Notes, US$400 million due 2009: Ba2
from Ba1; LGD4 (53%)
COREL CORP: Partners with ConceptShare for Online Collaboration
---------------------------------------------------------------
Corel Corporation has partnered with ConceptShare Inc., an
emerging leader in online collaboration.
www.CorelDRAWConceptShare.com is launched as the first project
in a five-year partnership between the two companies. This new
online tool enables designers to easily share their work with
other designers, colleagues or clients, providing a more dynamic
and collaborative experience, while accelerating the design
process.
CorelDRAWConceptShare.com helps designers and clients by making
it easier to review concepts, make adjustments and complete
projects faster. By moving consultations online,
CorelDRAWConceptShare.com also saves time and money by
eliminating the need to travel for face-to-face meetings. In
addition, discussions about visual concepts are centralized,
improving information flow and the speed of decision making
between designers and their key stakeholders.
"CorelDRAW(R) has long been recognized as a premier graphics
application that delivers the features and functionality our
users need to be more productive in their day-to-day
activities," said Gerard Metrailler, Director of Product
Management, Graphics for Corel. "We understand the time many
users spend trying to collaborate on designs and feel that
partnering with ConceptShare, an emerging leader in the online
collaboration space, provides our users with the ability to get
the feedback they need on all of their designs in an efficient
and meaningful way."
"We are enthusiastic about our partnership with Corel. The
CorelDRAW version of ConceptShare(TM) provides us immediate
exposure to millions of CorelDRAW users worldwide and will help
to accelerate our growth into international markets," said
Bernie Aho, Product Manager and Co-Founder, ConceptShare. "This
strategic partnership demonstrates a new model for relationships
between web application providers and desktop software
companies."
About ConceptShare Inc.
ConceptShare Inc. -- http://www.conceptshare.com/-- is a world
leader in online design collaboration founded in 2006 in
Sudbury, Ontario, Canada by a team of designers and industry
professionals that understood the pains of the design
collaboration process. The company has developed a web
application that allows users to easily share, discuss and mark-
up designs for review over the web.
About Corel Corp.
Ottawa, Ontario-based Corel Corporation (NASDAQ: CREL) (TSX:
CRE) -- http://www.corel.com/-- is a packaged software company
with an estimated installed base of over 40 million users. The
company provides productivity, graphics and digital imaging
software. Its products are sold in over 75 countries through a
scalable distribution platform comprised of original equipment
manufacturers, Corel's international websites, and a global
network of resellers and retailers. The company's product
portfolio features CorelDRAW(R) Graphics Suite, Corel(R)
WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro,
and Corel Painter(TM).
The company has operations in Germany, Italy, the United
Kingdom, Australia, Japan, Korea, Brazil, and Mexico, among
others.
* * *
As reported Troubled Company Reporter-Latin America on
Nov. 15, 2007, Standard & Poor's Ratings Services has revised
its outlook on Corel Corp. to stable from positive. At the same
time, S&P affirmed the ratings, including the 'B' long-term
corporate credit rating, on the company.
GENERAL MOTORS: Bidding for Undisclosed Stake in OAO AvtoVAZ
------------------------------------------------------------
General Motors Corp. has submitted a formal bid for a stake in
Russian carmaker OAO AvtoVAZ, The Wall Street Journal reports.
GM spokesman Marc Kempe described the offer as "competitive",
without specifying how large a stake the company is bidding or
how much it is willing to pay, WSJ relates.
Mr. Kempe told WSJ that the bid was part of its effort to extend
its presence in Russia, where foreign-brand cars posted a 60%
rise in sales.
GM expects this year's sales to reach 250,000 vehicles, compared
to 132,000 units in 2006, WSJ relates. GM's Chevrolet and Opel
brands are Russia's best-selling foreign and fastest-growing
brands respectively.
WSJ cites some industry analysts as saying that Russia will
become Europe's second-biggest car market by number of new cars
sold as early as the end of 2007.
GM and AvtoVAZ operate a joint venture that manufactures the
Chevrolet Niva and the Chevrolet Viva. The companies'
relationship, however, soured in 2005 after the Russian
government took over AvtoVaz.
GM may face Fiat S.p.A. and Renault S.A. in the bidding process,
WSJ relates. Fiat has an existing memorandum of understanding
with AvtoVaz to explore ways in which the two companies could
share technology, parts and platforms.
"All of these auto makers are building their sales and
production networks [in Russia] organically, but it's not going
quickly enough to meet the targets they've set [for Russia],"
Ivan Bonchev at Ernst & Young Moscow told WSJ.
About AvtoVaz
Headquartered in Toliatti, Russia, AvtoVaz OAO --
http://www.lada-auto.ru/-- manufactures passenger cars under
brand names LADA, VAZ and NIVA. Through its subsidiaries and
associates, the Company manufactures automobile components,
distributes automobiles and spare parts and operates automobile
service centers.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- wmanufactures 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 employs about 280,000
people around the world.
* * *
As reported in the Troubled Company Reporter on Nov. 9, 2007,
Moody's Investors Service affirmed its rating for General Motors
Corporation (B3 Corporate Family Rating, Ba3 senior secured,
Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity
rating) but changed the outlook to Stable from Positive.
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.
GREIF INC: Declares US$0.69 Per Share Common Stock Dividends
------------------------------------------------------------
Greif, Inc. Board of Directors has declared quarterly cash
dividends of US$0.28 per share of Class A Common Stock and
US$0.41 per share of Class B Common Stock.
The dividends are payable on Jan. 1, 2008, to shareholders of
record at close of business on Dec. 17, 2007.
Headquartered in Delaware, Ohio, Greif, Incorporated, (NYSE:
GEF, GEF.B) -- http://www.greif.com/-- is a world leader in
industrial packaging products and services. The company
provides extensive expertise in steel, plastic, fibre,
corrugated and multi-wall containers for a wide range of
industries. Greif also produces containerboard and manages
timber properties in the United States. For fiscal year 2006,
the company generated approximately US$2.6 billion in net sales
and US$326 million in EBITDA. The company has operations in
Australia, Argentina, Brazil, Belgium, China, Malaysia, among
others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 26, 2007, Standard & Poor's Ratings Services assigned its
'BB-' ratings to Greif Inc.'s proposed US$300 million senior
unsecured notes due 2017. The proceeds from the notes will be
used to retire approximately US$248 million in existing senior
subordinated notes due 2012 and for general corporate purposes.
The new senior notes issue is contingent upon consummation of
the tender offer for the senior subordinated notes.
LAZARD LTD: Picks Rodrigo de Rato as Senior Managing Director
-------------------------------------------------------------
Lazard Ltd. has appointed Rodrigo de Rato as its Senior Managing
Director of Investment Banking, effective Feb. 1, 2008. Mr.
Rato was most recently the Managing Director of the
International Monetary Fund and was formerly the Minister of
Economy for the Government of Spain for eight years. He will be
based in Madrid and London.
"Mr. Rato brings an abundance of economic knowledge and
relationships in both the private and public sectors due to his
rich history of high profile finance positions," said Bruce
Wasserstein, Chairman and Chief Executive Officer of Lazard.
"He will serve as a knowledgeable advisor to our clients, and
will play an important strategic role for Lazard on a global
level."
"Lazard has an outstanding reputation as a trusted, independent
advisor known for intellectual rigor, creativity and integrity -
qualities that I value deeply and endorse," said Mr. Rato. "I
am delighted to be joining Lazard, and look forward to working
with the firm's global network of exceptional bankers."
"We have known and admired Rodrigo de Rato over the years, both
from his tenure at the IMF and during his term as Minister of
the Economy for the Government of Spain. We are pleased to
bring such high caliber finance expertise into Lazard for the
benefit of our clients," said Georges Ralli, Chief Executive
Officer of Lazard's European investment banking business.
Mr. Rato served as Managing Director of the IMF from June 2004
until Oct. 31, 2007. Prior to the IMF, he was Vice President
for Economic Affairs and Minister of Economy for the Government
of Spain, a post to which he was appointed in 1996. During that
time he also was Governor for Spain, and served on the Boards of
Governors of the IMF, the World Bank, the Intra-American
Development Bank, the European Investment Bank, and the European
Bank for Reconstruction and Development. He regularly attended
the European Union's Economics and Finance Ministers meetings,
and represented the EU at the Group of Seven Finance Ministers
meeting in 2002. He was a member of Spain's parliament from
1982 to 2004.
Mr. Rato received a law degree at the Complutense University, an
MBA at the University of California, Berkeley, Haas School of
Business and a PhD in economics at the University of Madrid.
About Lazard Ltd.
Lazard Ltd. (NYSE:LAZ) -- http://www.lazard.com/-- is a
preeminent financial advisory and asset management firms, that
operates from 32 cities across 16 countries in North America,
Europe, Asia, Australia and South America. With origins dating
back to 1848, the firm provides advice on mergers and
acquisitions, restructuring and capital raising, well as asset
management services to corporations, partnerships, institutions,
governments, and individuals. The company has locations in
Australia, Brazil, China, France, Germany, India, Japan, Korea
and Singapore.
The company's consolidated balance sheet at Sept. 30, 2007,
showed US$3.51 billion in total assets, US$3.54 billion in total
liabilities, and US$49.0 million minority interest, resulting in
a US$74.5 million total shareholders' deficiency.
UAP HOLDING: Selling Stake to Agrium Inc. Through Tender Offer
--------------------------------------------------------------
UAP Holding Corp. and Agrium Inc. have entered into a definitive
agreement for Agrium to acquire UAP. Under the terms of the
agreement, a subsidiary of Agrium will commence a tender offer
to purchase all of the outstanding common stock of UAP for US$39
per share in cash for an aggregate transaction value of
approximately US$2.65-billion, including an estimated
US$487 million of assumed debt.
The all cash purchase price represents a 27% premium over the
volume weighted-average trading price for UAP shares on the
NASDAQ for the 20 trading days ended Nov. 30, 2007, and a
premium of 30% over the closing price of US$29.91 per share on
that date.
The boards of directors of both companies have unanimously
approved the agreement, and the UAP board of directors has
unanimously recommended that the UAP shareholders accept the
tender offer.
"The addition of UAP's business to our own Retail operations is
an excellent strategic fit for Agrium and a significant step in
our strategy of continuing to grow and transform the company,"
Mike Wilson, president and CEO of Agrium, said. "The
acquisition will significantly expand our geographic base and
our product diversity, and will offer an opportunity to leverage
strengths of both companies."
"We believe the transaction will enable Agrium to capitalize on
the strong outlook for agriculture markets and will allow us to
deliver value to both our shareholders and our customers,"
Mr. Wilson added. "It increases the scale and size of our
business, further enhances stability of our earnings profile and
strengthens Agrium's ability to serve and grow its customer
base. A key factor to our success will be drawing from the
extensive experience of employees from both organizations."
"We anticipate we will be able to generate annual synergies of
approximately US$115-million by 2010, with a majority of this
captured in 2009," Mr. Wilson continued. "We expect that these
synergies will be achieved primarily by improved margins on all
three crop input product groupings, largely through enhanced
purchasing efficiencies. This acquisition is expected to be
slightly accretive on an earnings per share basis in the first
year and significantly accretive thereafter. Agrium has
committed bridge and term loan financing in place to fund the
acquisition and our plan is to arrange financing of US$1.25-
billion in equity, with the balance in public and bank term debt
to replace the bridge loan."
"This transaction represents an extraordinary opportunity for
our shareholders, customers, and employees," Kenny Cordell, CEO
and president of UAP, said. "Agrium is well respected in the
industry and we believe that the combination of the two
organizations will allow for an improved product offering and
new services and technologies to be delivered to a broader range
of customers."
Agrium noted these key benefits of the transaction:
-- creates a retailer of crop inputs and services, with
broader geographic coverage as a result of combining the
complementary footprints of Agrium and UAP;
-- expected annual synergies of approximately US$115-million,
with approximately US$20-million in 2008, approximately
US$80-million in 2009 and approximately US$115-million in
2010 and beyond;
-- combined retail earnings before interest, income taxes,
depreciation and amortization or EBITDA of US$417-million
for the last twelve months excluding synergies, and
approximately US$532-million in Retail EBITDA on a
combined basis for the last twelve months including the
approximately US$115-million in expected annual synergies;
-- supports Agrium's strategy of investing through the value
chain, diversifying geographically and expanding Agrium's
stable earnings base profile;
-- expands Agrium's Retail business model to incorporate a
mid-tier service, higher-volume business;
-- combined total Retail sales of over US$5.2-billion and
combined sales of almost US$8-billion on a company wide
basis on a last twelve month basis;
-- provides Agrium's Retail business with 265 proprietary
and private label brands and more than doubles Agrium's
seed business. Seed sales have grown by over 16% per
year for both Agrium and UAP over the past three years;
-- provides a platform to support Agrium's future growth.
The tender offer is expected to commence no later than
Dec. 10, 2007, and completion of the tender offer is subject to
customary conditions, including that shares representing at
least a majority of the UAP common stock on a fully diluted
basis are validly tendered into the offer, and that customary
regulatory approvals are obtained.
After completion of the tender offer, UAP will engage in a
second-step merger with the subsidiary of Agrium, pursuant to
which each share of outstanding UAP common stock not tendered in
the tender offer will be converted into the right to receive
US$39 in cash. Upon completion of the merger, UAP will become a
wholly-owned subsidiary of Agrium. The parties expect to
complete the transaction in early 2008.
Agrium has engaged RBC Capital Markets as financial advisor and
Blake, Cassels & Graydon LLP and Paul, Weiss, Rifkind, Wharton &
Garrison LLP in connection with the transaction.
UAP has engaged J.P. Morgan Securities Inc. as financial
advisor, which provided a fairness opinion on the transaction,
and Wachtell, Lipton, Rosen & Katz as legal counsel in
connection with the transaction.
About Agrium Inc.
Headquartered in Calgary, Alberta, Agrium Inc. (TSX: AGU) (NYSE:
AGU) -- http://www.agrium.com/-- is a retail supplier of
agricultural products and services in both North and South
America and a producer and marketer of agricultural nutrients
and industrial products. Agrium produces and markets three
primary groups of nutrients: nitrogen, phosphate and potash well
as controlled release fertilizers and micronutrients. Agrium's
strategy is to grow through incremental expansion of its
existing operations and acquisitions as well as the development,
commercialization and marketing of new products and
international opportunities.
About UAP Holding Corp.
Headquartered in Greeley, Colorado, UAP Holdings Corp.
(NASDAQ:UAPH) -- http://www.uap.com/-- is the holding company
of United Agri Products Inc., an independent distributor of
agricultural and non-crop products in the United States and
Canada. The airline flies to Brazil, Korea and Germany.
UAP HOLDING: US$2.65-Bln Agrium Deal Cues Moody's Ratings Review
----------------------------------------------------------------
Moody's Investors Service placed the ratings (Ba3 CFR) of UAP
Holdings Corp.'s subsidiary, UAP Agri Products Inc., under
review for possible upgrade.
At the same time, Moody's placed Agrium Inc.'s Baa2 senior
unsecured rating under review for possible downgrade.
The reviews were prompted by the recent announcement that the
two companies have entered into a definitive agreement, whereby
a wholly-owned subsidiary of Agrium will acquire all of the
outstanding shares of UAP at a price of US$39 per share for an
aggregate acquisition cost of US$2.65 billion, including
US$487 million of debt at UAP. The acquisition will be funded
by a committed bridge financing on an interim basis and a plan
to arrange financing of US$1.25 billion in equity, with the
balance in public and bank term debt. The transaction remains
subject to a number of approvals, including regulatory and
shareholder.
Moody's believes the conclusion of Agrium's review is likely to
result in an affirmation of its Baa2 ratings should the
transaction close on the terms announced. UAP's review for
possible upgrade reflects the potential benefit that is expected
to accrue at UAP as a result of the acquisition. Moody's
believes UAP's debt may be repaid in full, resulting in a
potential ratings withdrawal upon acquisition close in the first
quarter of 2008.
The following factors were considered by Moody's in reaching its
preliminary judgment that the current rating will remain
unchanged if the transaction concludes as expected. The
transaction will improve Agrium's business profile by adding
scale, broader diversification, purchasing power, and stability
to earnings. Despite the initial rise in debt to fund the
acquisition, Moody's expects management will maintain its
historically conservative financial policies and investment
discipline. Specifically, Moody's expects the company to reduce
leverage and that its Adjusted Debt-to-Capital ratio will be
below 40% within the next 12 to 18 months. Moody's notes the
increased reliance on retail sales that results from the
acquisition of UAP will likely weaken EBITDA margin to the low-
to-mid teens. Additional nitrogen fertilizer supply and
volatile natural gas costs could also pressure margins in
Agrium's wholesale business. Moody's, however, still favorably
views the company's selling price advantage in the Pacific
Northwest relative to the vast majority of North American
ammonia producers. In addition, the transaction is consistent
with Agrium's operating strategy and will create the largest
North American agricultural distributor while enhancing margin
stability.
Conversely, the transaction involves substantial execution risk
and a reduction in financial flexibility when other recent
acquisitions are considered on a combined basis. Specifically,
Moody's believes the company will be challenged with blending
different retail business philosophies together. Agrium
operates a value added services business model whereas UAP
manages a low service, high volume model. Furthermore, Moody's
expects weak cash flow generation over the next two years due to
equity capital contributions for the joint venture nitrogen
facility in Egypt. The company will not achieve returns on the
non-recourse financing project until after the completion of the
facility in 2010. With respect to UAP, management has
experienced successive quarters of deteriorating working capital
performance. The agricultural market has undergone product mix
changes as farmers take advantage of ethanol demand by devoting
additional acreage to corn at the expense of other crops, such
as cotton, which require more agricultural chemicals. Moody's
will continue to monitor UAP's working capital trends during the
integration efforts.
The review will focus on the final financing arrangements for
the acquisition, the strategic fit of the two companies,
regulatory approvals, and the level of cash flow that can be
generated to meaningfully reduce debt in a reasonable fashion
given the cyclicality and price volatility of the company's
agricultural products. The timing of the transaction will be
executed in an environment where industry fundamentals are very
favorable. Recent low levels of grain stock have led to an
increase in grain prices. High demand levels due to higher
protein consumption (primarily in Asia), expectations of
increased corn acreage and crop input use, and ethanol demand
represent key drivers for a favorable outlook for both Agrium's
wholesale and retail businesses. Currently, crop yields,
planted acreage, and farm income are at record levels as strong
supply/demand dynamics within Agrium's product lines will help
generate robust credit metrics over the intermediate term. The
company has indicated that it anticipates generating roughly
US$115 million in synergies by 2010. The likelihood of and time
frame in which these synergies can be achieved will also be
considered under the review.
On review for possible downgrade:
Issuer: Agrium, Inc.
-- Senior unsecured notes and debentures at Baa2;
On review for possible upgrade:
Issuer: United Agri Products, Inc. Ba3
-- PDR: Ba3
-- Gtd Sr Sec Revolving Credit Facility due 2011, Ba1 (LGD2,
17%)
-- Gtd Sr Sec Term Loan due 2012, Ba3 (LGD3, 45%)
Agrium Inc., headquartered in Calgary, Alberta, Canada, is a
leading global producer and marketer of agricultural nutrients
and industrial products and a major retail supplier of
agricultural products and services in both North and South
America. Agrium produces and markets three primary groups of
nutrients: nitrogen, phosphate and potash as well as controlled
release fertilizers and micronutrients.
UAP serves over 100,000 customers in major crop producing areas
of North America and is the largest independent distributor of
agricultural inputs in the U.S. and Canada.
VERIFONE HOLDINGS: Restating Financial Statements in Prior Qtrs.
----------------------------------------------------------------
VeriFone Holdings Inc. disclosed Monday that following a review
by and on the recommendation of management, it has concluded
that its unaudited interim consolidated financial statements for
the three months ended Jan. 31, 2007, the three and six months
ended April 30, 2007, and the three and nine months ended
July 31, 2007, should no longer be relied upon, principally due
to errors in accounting related to the valuation of in-transit
inventory and allocation of manufacturing and distribution
overhead to inventory, each of which affects VeriFone's reported
costs of net revenues.
The restatements are anticipated to correct errors that
overstated previously reported inventories in material amounts
as of Jan. 31, 2007, April 30, 2007, and July 31, 2007, and
understated cost of net revenues in material amounts for the
three month periods ended Jan. 31, 2007, April 30, 2007, and
July 31, 2007. Accordingly, the company cautioned investors not
to rely on its historical financial statements and earnings
press releases and similar communications for the periods ended
Jan. 31, 2007, April 30, 2007, and July 31, 2007.
Based on its review to date, management currently anticipates
that the restatement will result in reductions to previously
reported inventories of approximately US$7.7 million, US$16.5
million and US$30.2 million as of Jan. 31, 2007, April 30, 2007,
and July 31, 2007, respectively, and reductions to previously
reported pre tax income of approximately US$8.9 million, US$7.0
million and US$13.8 million for the three month periods ended
Jan. 31, 2007, April 30, 2007, and July 31, 2007, respectively.
VeriFone is currently evaluating the anticipated effect of the
restatement on after-tax income for those periods.
The company said that these estimates include corrections of
other unrelated errors detected in the course of VeriFone's
review to date, are based on currently available information and
are subject to change during the course of the company's
restatement process. While VeriFone is not currently aware of
other accounting errors requiring adjustment to any prior period
financial statements, there can be no assurances that VeriFone
or its independent registered public accounting firm will not
find additional accounting errors requiring further adjustments
in those or earlier periods.
VeriFone today also announced that it expects to report total
revenues for the three and twelve months ended Oct. 31, 2007, of
approximately US$238 million and US$904 million, respectively.
VeriFone's management and the Audit Committee of its Board of
Directors have determined to delay the release of full fourth
quarter 2007 financial results that were scheduled to be
released on Dec. 6, 2007, pending completion of the assessment
of these errors and the restatements.
"I am very disappointed to have to bring you this news and am
committed to ensuring that we promptly and thoroughly remedy
this situation and move forward with the business of delivering
value to our shareholders. I am committed to regaining your
confidence in VeriFone," said Douglas G. Bergeron, chairman and
chief executive officer.
VeriFone concluded that a restatement of its interim unaudited
financial statements is required as a result of an internal
review of in-transit inventory balances conducted in preparation
for VeriFone's fiscal 2007 audit. In reaching the conclusion to
restate its financial results, VeriFone's management and the
Audit Committee discussed the matters described in this press
release with VeriFone's independent registered public accounting
firm.
Upon completion of its assessment of these errors, VeriFone
intends to file amended Quarterly Reports on Form 10-Q for the
periods described above that will restate the previously issued
financial statements included therein. VeriFone currently
estimates that it will file these amended quarterly reports,
together with its Annual Report on Form 10 K for the fiscal year
ended Oct. 31, 2007, in January 2008. However, VeriFone cannot
be certain how much time will ultimately be required for it to
complete the restatement process.
About VeriFone Holdings Inc.
Headquartered in San Jose, Calif., VeriFone Holdings Inc. (NYSE:
PAY) -- http://www.verifone.com/-- provides secure electronic
payment solutions. VeriFone provides expertise, solutions and
services that add value to the point of sale with merchant-
operated, consumer-facing and self-service payment systems for
the financial, retail, hospitality, petroleum, government and
healthcare vertical markets.
The company has operations in Argentina, Australia, Brazil,
China, France, India, Malaysia, Poland, the United Kingdom, the
United States, among others.
* * *
Verifone Holdings Inc. still carries Moody's Moody's Investors
Service 'B1' long term corporate family rating. Moody's said
the rating outlook is stable.
* BRAZIL: Petrobras Inks Technological Pact with StatoilHydro
-------------------------------------------------------------
Petroleo Brasileiro SA aka Petrobras has signed a new
exploration and production technology sharing and development
agreement with Norwegian outfit StatoilHydro. The agreement
will allow both companies to improve their operating techniques
for deepwater production, for oil & gas processing, distance
follow-up using digital means, among others, and will be in
effect for five years.
The two companies are part of the world's deepwater exploration
and production pioneers. They intend to collaborate in
overcoming the increasing hurdles involved this activity, such
as, for example, maritime drilling at great depths and the need
to increase oil reservoir recovery factors, i.e., extracting
more oil and gas from production fields.
The agreement that was signed today gives continuity to the
previous separate ones Petrobras held with Statoil and Norsk
Hydro. After the two companies' merged, in October, Petrobras
continued sharing technologies with the new corporation.
The executive manager for Production Engineering from the
Exploration & Production area, Jose Miranda Formigli; the
general manager for Production Process Technology, Tuerte Amaral
Rolim; and the general manager for Reserves and Reservoirs,
Alberto Sampaio de Almeida, attended the event representing
Petrobras. Meanwhile, StatoilHydro was represented by its vice-
president for E&P for the South Atlantic, Kjetil Baraten
Solbrakke, and by the president of its Brazilian division, Jorge
Camargo.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch
said the rating outlook is stable.
===========================
C A Y M A N I S L A N D S
===========================
PACIFIC STAR: Proofs of Claim Filing Ends on Dec. 14
----------------------------------------------------
Pacific Star Fund Ltd.'s creditors are given until
Dec. 14, 2007, to prove their claims to G. James Cleaver and
Richard E. L Fogerty, 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.
Pacific Star's shareholder decided on Oct. 31, 2007, to place
the company into voluntary liquidation under The Companies Law
2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
G. James Cleaver
Richard E. L Fogerty
Kroll (Cayman) Limited
P.O. Box 1102, George Town
Grand Cayman, KY1-1102, Cayman Islands
Contact for inquiries:
Marc Randall
Kroll (Cayman) Limited
4th Floor, Bermuda House
Dr. Roy's Drive, Grand Cayman
Cayman Islands
Telephone: 1(345) 946-0081
Fax: 1(345) 946-0082
SHINSEI FUNDING: Proofs of Claim Filing Deadline Is Dec. 14
-----------------------------------------------------------
Shinsei Funding Cayman 1's creditors are given until
Dec. 14, 2007, to prove their claims to Martin Couch and Emile
Small, 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.
Shinsei Funding's shareholders agreed on Nov. 1, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Martin Couch
Emile Small
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
SHINSEI FUNDING CAYMAN: Proofs of Claim Filing Ends on Dec. 14
--------------------------------------------------------------
Shinsei Funding Cayman 2's creditors are given until
Dec. 14, 2007, to prove their claims to Martin Couch and Emile
Small, 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.
Shinsei Funding's shareholders agreed on Nov. 1, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Martin Couch
Emile Small
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
SPECIAL SELECT: Proofs of Claim Filing Deadline Is Dec. 14
----------------------------------------------------------
The Special Select Fund's creditors are given until
Dec. 14, 2007, to prove their claims to Carrie Bunton and Emile
Small, the company's liquidators, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
The Special Select's shareholders agreed on Nov. 1, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Carrie Bunton
Emile Small
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
STAR PASSION: Proofs of Claim Filing Deadline Is Dec. 14
--------------------------------------------------------
Star Passion SPC's creditors are given until Dec. 14, 2007, to
prove their claims to Jan Neveril and Richard Gordon, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Star Passion's shareholders agreed on Nov. 1, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
STOCKHORN CDO: Proofs of Claim Filing Is Until Dec. 14
------------------------------------------------------
Stockhorn CDO, Limited's creditors are given until
Dec. 14, 2007, to prove their claims to Andrew Dean and Emile
Small, 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.
Stockhorn CDO's shareholders agreed on Nov. 1, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Andrew Dean
Emile Small
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
TIGRE CRE: Proofs of Claim Filing Is Until Dec. 14
--------------------------------------------------
Tigre CRE HG 2007-1. Ltd.'s creditors are given until
Dec. 14, 2007, to prove their claims to Martin Couch and Sarah
Kennedy, 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.
Tigre CRE's shareholders agreed on Oct. 24, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Martin Couch
Sarah Kennedy
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
TOPIARY LIMITED: Proofs of Claim Filing Ends on Dec. 14
-------------------------------------------------------
Topiary Limited's creditors are given until Dec. 14, 2007, to
prove their claims to Hugh Thompson and Sarah Kennedy, 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.
Topiary's shareholders agreed on Oct. 30, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Hugh Thompson
Sarah Kennedy
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
TRIPLE ONE: Proofs of Claim Filing Deadline Is Dec. 14
------------------------------------------------------
Triple One Funding Limited's creditors are given until
Dec. 14, 2007, to prove their claims to Martin Couch and Giles
Kerley, 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.
Triple One's shareholders agreed on Nov. 1, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Martin Couch
Giles Kerley
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
VENEZUELA INVESTMENTS: Proofs of Claim Filing Is Until Dec. 14
--------------------------------------------------------------
Venezuela Investments Limited's creditors are given until
Dec. 14, 2007, to prove their claims to Martin Couch and Giles
Kerley, 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.
Venezuela Investments' shareholders agreed on Nov. 1, 2007, to
place the company into voluntary liquidation under The Companies
Law 2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Martin Couch
Giles Kerley
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
=========
C H I L E
=========
REVLON CONSUMER: Moody's Affirms Ratings, Shifts Outlook to Pos.
----------------------------------------------------------------
Moody's Investors Service has affirmed all of the ratings of
Revlon Consumer Products Corporation but revised the outlook to
positive from negative.
The revision of the outlook to positive reflects the elimination
of a significant near-term maturity following the company's
announcement that it intends to repay in full the US$167.4
million of remaining 8-5/8% senior subordinated notes in a
manner that is neutral to bondholders by retaining a US$170
million senior subordinated term loan from its indirect parent
company, MacAndrews and Forbes. The revised outlook also
reflects Revlon Consumer's success in achieving its financial
targets for the last twelve-month period ending September 2007
and the resulting significant improvement in profitability and
credit metrics.
"While Revlon's financial performance has significantly improved
and market share trends have stabilized over the last twelve
months, the company still needs to demonstrate that these gains
are sustainable while at the same time achieving profitable
growth in its core Revlon and Almay franchises," says Moody's
Vice President Janice Hofferber.
These ratings of Revlon Consumer were affirmed:
-- Corporate family rating at Caa1;
-- Probability of default rating at Caa1;
-- US$160 million senior secured asset based revolving credit
facility due 2012 at B1 (point estimate revised to LGD 2,
12% from LGD 2, 11%);
-- US$840 million senior secured term loan facility due 2012
at B3 (point estimate revised to LGD 3, 37% from LGD 3,
36%);
-- US$387 million 9.5% senior notes due 2011 at Caa2 (point
estimate revised to LGD 4, 63% from LGD 4, 61%);
-- US$167 million 8.625% senior subordinated notes due 2008 at
Caa3 (point estimate revised to LGD 6, 94% from LGD 6,
93%); and
-- Speculative grade liquidity rating of SGL-4
Outlook revised to positive from negative.
Revlon Consumer's Caa1 corporate family rating reflects the weak
free cash flow, high leverage and weak liquidity profile of the
company. The Caa1 rating also incorporates the remaining
refinancing risks that the company faces due to the relatively
short maturity date of the newly provided term loan (matures
Aug. 1, 2009), as well as the ongoing financial and operational
challenges the company continues to face. While Moody's views
MacAndrews & Forbes' agreement to provide Revlon Consumer with a
US$170 million senior subordinated term loan as helpful in the
near term, but notes that the short dated maturity of the term
loan as well as the expiration of MacAndrews & Forbes' existing
US$50 million back-up line of credit at closing will continue to
strain liquidity. Nevertheless, MacAndrews & Forbes'
willingness to provide this critical financing as well as its
track record of supporting Revlon Consumer over the last several
years by backstopping equity rights offerings and by providing
back-up liquidity, is an important ratings factor.
The positive outlook reflects Moody's recognition that the
company has eliminated a significant near-term maturity and that
its credit metrics and financial performance have meaningfully
improved. Accordingly, profitability and cash flow generation
have improved such that EBITA margins are approaching 10% and
free cash flow usage has substantially improved. In addition,
other key credit metrics, while still more consistent with a Caa
issuer, are also stronger -- EBITDA to interest coverage ratios
are in excess of 1.6 times and Debt to EBITDA was 6.7 times for
the last twelve month period ending September 2007.
Nevertheless, Revlon Consumer will need to demonstrate a longer
track record of financial stability and profitable market share
growth given the still leveraged profile, negative free cash
flow and need to refinance the MacAndrews & Forbes term loan by
August 2009. The company's highly leveraged profile and
liquidity constraints remain on-going rating concerns as the
company participates in an industry segment that requires
material upfront brand support, fixture, and product development
expenditures with uncertain consumer receptivity.
Moody's affirmation of Revlon Consumer's speculative grade
liquidity rating of SGL-4 reflects the company's still weak cash
flow from operations and inability to satisfy its basic cash
requirements through internal sources with no additional need
for external financing. In addition, while the agreement with
MacAndrews & Forbes to provide a US$170 million senior
subordinated loan satisfies a critical requirement in its 8 5/8%
senior note indenture in a way that is not detrimental to
bondholders and has a positive impact on liquidity, the short
term maturity date of the term loan will require another
significant financing. The company's resolution of these two
critical factors would likely lead to an upgrade in its
speculative grade liquidity rating.
Revlon, Inc. (NYSE:REV) -- http://www.revloninc.com/-- is a
worldwide cosmetics, skin care, fragrance, and personal care
products company. The company's vision is to deliver the
promise of beauty through creating and developing the most
consumer preferred brands. The company's brands include
Revlon(R), Almay(R), Vital Radiance(R), Ultima(R), Charlie(R),
Flex(R), and Mitchum(R). The company's Latin American
operations are located in Argentina, Brazil, Chile, Mexico and
Venezuela.
Headquartered in New York, Revlon Consumer Products Corp. is a
worldwide cosmetics, skin care, fragrance, and personal care
products company. The company is a wholly owned subsidiary of
Revlon Inc. -- http://www.revloninc.com/-- which in turn is
majority-owned by MacAndrews and Forbes, which is wholly owned
by Ronald O. Perelman. The company's Latin American operations
are located in Argentina, Brazil, Chile, Mexico and Venezuela.
===============
C O L O M B I A
===============
BANCOLOMBIA SA: Donates COP14.7 Bln, Expects to Get Tax Benefits
----------------------------------------------------------------
Bancolombia S.A. has made donations in a total amount of
COP14,722,447,991.85. The donations were duly authorized at the
General Shareholders Meeting and by the Board of Directors of
Bancolombia. Bancolombia expects to obtain tax benefits, in
accordance with the terms of the current Colombian tax
regulations.
The beneficiary entities contributed to the social development,
protection and welfare, culture, civic-mindedness, charity,
health and/or education of Colombia. Bancolombia does not have
any commercial relationship with any of the beneficiaries.
Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Moody's Investors Service changed the outlook to
positive from stable on its Ba3 long-term foreign currency
deposit ratings and Ba1 long-term foreign currency subordinated
bond rating for Bancolombia, S.A.
As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Fitch Ratings downgraded and removed from Rating
Watch Negative Bancolombia's long-term and short-term local
currency Issuer Default Ratings and Individual rating:
-- Individual rating to 'C/D' from 'C';
-- Local currency long-term IDR to 'BB+' from 'BBB-'; and
-- Local currency short-term rating to 'B' from 'F3';
In addition, Fitch affirmed these ratings:
-- Foreign currency long-term IDR at 'BB+';
-- Foreign currency short-term rating at 'B'; and
-- Support rating at '3'.
Fitch says the rating outlook is stable.
KNOLL INC: Paying US$0.12 Per Share Cash Dividend on Dec. 28
------------------------------------------------------------
Knoll, Inc.'s Board of Directors has declared a quarterly cash
dividend of US$0.12 per share payable Dec. 28, 2007, to
stockholders of record on Dec. 14, 2007.
The Board of Directors currently intends to declare and pay
quarterly dividends of US$0.12 per share on Knoll's common
stock. The declaration and payment of dividends is subject to
the discretion of the Board of Directors and depends on various
factors, including the net income, restrictions in the credit
facility, financial position, cash requirements and other
factors deemed relevant by the company's Board of Directors.
Headquartered in East Greenville, Pennsylvania, Knoll Inc.
(NYSE: KNL) -- http://www.knoll.com/-- designs and manufactures
branded office furniture products and textiles, serves clients
worldwide. It distributes its products through a network of
more than 300 dealerships and 100 showrooms and regional
offices. The company has locations in Argentina, Australia,
Bahamas, Cayman Islands, China, Colombia, Denmark, Finland,
Greece, Hong Kong, India, Indonesia, Japan, Korea, Malaysia,
Philippines, Poland, Portugal and Singapore, among others.
* * *
Knoll Inc. carries Moody's Investors Service's B1 Corporate
Family Rating and the company's US$200 million senior secured
revolver and US$250 million senior secured term loan carry
Moody's Ba2. Moody's assigned an LGD2 rating to both loans,
suggesting note holders will experience a 27% loss in the event
of a default.
SOLUTIA INC: Noteholders To Appeal Ruling on Claim
--------------------------------------------------
The Bank of New York, as Indenture Trustee for the 11.25% Senior
Secured Notes due 2009 issued by Solutia Inc. and its
predecessor, takes an appeal to the United States District Court
for the Southern District of New York under 28 U.S.C. Section
158(a) from each and every part of:
(a) the order of the U.S. Bankruptcy Court for the Southern
District of New York denying BNY's request for relief
from the automatic stay, entered Nov. 26, 2007;
(b) Judge Beatty's November 9 memorandum decision on joint
motion for partial summary judgment with respect to Claim
No. 6210, and the Nov. 26 final order granting partial
summary judgment in favor of the Debtors and the Official
Committee of Unsecured Creditors regarding the Debtors'
objection to BNY's Claim No. 6210; and
(c) Judge Beatty's ruling on BNY's emergency motion for
reconsideration of the Memorandum Decision on Joint
Motion for Partial Summary Judgment, issued on Nov. 26.
Bankruptcy Court's Ruling
The Debtors's Consensual Plan provides, among other things, that
the holders of the Debtors' 11.25% senior secured notes will be
paid the allowed amount of their claim in full, in cash on the
effective date.
On Nov. 9, 2007, the Court issued its memorandum decision on
the Debtors', the Official Committee of Unsecured Creditors',
and the 2009 Noteholders' motions for partial summary judgment
with respect to Claim No. 6210, where it concluded, among other
things, that the Claim has a principal balance of
US$187,400,000.
Bank of New York, as indenture trustee for the 11.25% senior
secured notes due 2009 issued by Solutia Inc., or its
predecessor, filed a motion for reconsideration of the Court's
Memorandum Decision, which was denied. The Court entered its
final order granting partial summary judgment in favor of the
Debtors and Creditors Committee regarding the Debtors' objection
to Claim No. 6210 on Nov. 26, 2007.
In the final order, the Court allowed Claim No. 6210, (i) the
original issued amount of the 2009 Notes of US$181,711,550, and
(ii) the accrued prepetition original issue discount of
US$5,666,797. Pursuant to Section 506(b) of the Bankruptcy Code
these interest on Claim No. 6210 will be allowed:
-- US$21,611,958, the accrued original issue discount from
the Petition Date through November 9, 2007; and
-- an amount equal to the number of days from Nov. 9, 2007
to the effective date of Solutia's Plan multiplied by
US$20,158, the daily accrued original issue discount from
the Petition Date from Nov. 9, 2007, through
Jan. 15, 2008; provided that the effective date or the
Plan has not occurred on or before January 15, until the
effective date of Solutia Inc.'s plan will be multiplied
by US$21,735.
The Court also denied Bank of New York's motion to lift stay.
About Solutia Inc.
Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) --
http://www.solutia.com/-- and its subsidiaries, engage in the
manufacture and sale of chemical-based materials, which are used
in consumer and industrial applications worldwide. Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia. The company and 15 debtor-affiliates filed for
chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No.
03-17949). When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on November 29, the Court confirmed the
Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No.
109; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
Solutia carries Moody's Investors Service's B1 Corporate Family
Rating and Probability of Default Rating.
* COLOMBIA: Forms Power Firm Empresa de Energia for San Andres
--------------------------------------------------------------
The Colombian presidential press office said in a statement that
the government has created Empresa de Energia de San Andres to
serve the San Andres area.
Business News Americas relates that Empresa de Energia will
generate and distribute power to almost 16,000 customers.
According to the government's statement, Empresa de Energia was
formed from five firms that belong to the mining ministry, which
include:
-- Urra,
-- Geselca,
-- Electrohulila, and
-- Cedenar.
BNamericas notes that Empresa de Energia has an initial capital
of COP70 billion.
A contract was signed for the production of up to 15% of the
islands' power needs from biogas, BNamericas says.
A four-megawatt plant will be built to produce power from waste
products, the government said in a statement.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 15, 2007, Standard & Poor's Ratings Services assigned its
'BB+' long-term senior unsecured rating to the Republic of
Colombia's proposed 2027 Global Titulos de Tesoreria bond, a
bond denominated in Colombian pesos but payable in US dollars.
===================================
D O M I N I C A N R E P U B L I C
===================================
GUESS INC: Earns US$58.3 Million in Third Quarter Ended Nov. 3
--------------------------------------------------------------
Guess?, Inc. reported financial results for the third quarter of
its 2008 fiscal year, which ended Nov. 3, 2007.
For the third quarter of fiscal 2008, the company reported
record net earnings of US$58.3 million, an increase of 32%
compared to net earnings of US$44.0 million for the recast
quarter ended Oct. 28, 2006. Diluted earnings per share
increased 29% to US$0.62 per share in the current quarter versus
US$0.48 per share in the prior-year quarter.
Paul Marciano, Chief Executive Officer, commented, "We are very
pleased with our solid financial performance this quarter.
These results reflect the global strength of our Guess brand and
our highly diversified business model. The investments we are
making to develop and expand our business in North America,
Europe and Asia are clearly yielding positive results. In the
period, we increased revenues by 43% to US$469.1 million and
operating earnings by 45% to US$95.6 million - all time records
for any quarter in our Company's history. I am particularly
pleased with these results, considering that during the quarter
we made significant investments to support the Company's future
growth."
Mr. Marciano continued, "Once again, all of our business
segments delivered double-digit revenue growth and all
contributed to the increase in our operating earnings. Overall,
this strong performance resulted in a 32% increase in earnings
and marked our 17th consecutive quarter of earnings growth. We
are encouraged by these results, especially in light of today's
challenging retail environment. I believe this success is due
to the great product assortment developed by our teams of
designers, merchants and licensees worldwide. Based on these
results and our recent sales trends, we are confident that we
continue to be well positioned for the holiday selling season."
Total net revenue for the third quarter of fiscal 2008 increased
42.7% to US$469.1 million from US$328.8 million in the prior-
year period. The company's retail stores in the U.S. and Canada
generated revenue of US$210.4 million in the third quarter of
fiscal 2008, a 17.7% increase from US$178.8 million in the same
period a year ago. Comparable store sales increased 15.8% for
the quarter ended Nov. 3, 2007, compared to the thirteen weeks
ended Nov. 4, 2006. This represents the 19th consecutive
quarter of same store sales growth in North America. The
company operated 365 retail stores in the U.S. and Canada at the
end of the third quarter of fiscal 2008 versus 332 stores a year
earlier.
Net revenue from the company's wholesale segment, which includes
the company's Asian operations, increased 75.0% to US$76.9
million in the third quarter of fiscal 2008, from US$43.9
million in the prior-year period.
Net revenue from the company's European segment increased 78.8%
to US$159.4 million in the third quarter of fiscal 2008,
compared to US$89.1 million in the prior-year period.
Licensing segment net revenue increased 32.6% to US$22.4 million
in the third quarter of fiscal 2008, from US$16.9 million in the
prior-year period.
Operating earnings for the third quarter of fiscal 2008
increased 44.6% to US$95.6 million from US$66.2 million in the
prior-year period. Operating margin in the third quarter
improved 30 basis points to 20.4%, compared to the prior year's
quarter. This margin expansion was driven by improved leverage
over occupancy costs and leverage over selling and
administrative costs, partially offset by lower product margins.
The company also announced that its Board of Directors has
approved a quarterly cash dividend of US$0.08 per share on the
Company's common stock. The dividend will be payable on
Jan. 4, 2008, to shareholders of record at the close of business
on Dec. 19, 2007.
Guess? Inc. (NYSE: GES) -- http://www.guessinc.com/-- designs,
markets, distributes and licenses a lifestyle collection of
contemporary apparel, accessories and related consumer products.
At May 5, 2007, the company operated 336 retail stores in the
United States and Canada. The company also distributes its
products through better department and specialty stores around
the world, including the Philippines, Hungary and the Dominican
Republic.
* * *
Guess? Inc. still carries Standard & Poor's "BB" long-term
foreign and local issuer credit ratings, which were assigned in
December 2006.
===============
H O N D U R A S
===============
* HONDURAS: Pres. Names Jorge Rosa as Temporary Hondutel Head
-------------------------------------------------------------
Honduran news daily El Financiero reports that President Manuel
Zelaya has appointed economy minister Jorge Rosa as temporary
head of state-run telecom firm Hondutel.
As reported in the Troubled Company Reporter-Latin America on
Nov. 23, 2007, a court hearing on the charges filed against
Honduran state-run telecom firm Hondutel's president Marcelo
Chimirri was set for Dec. 5, 2007. Mr. Chimirri asked Honduras'
President Manuel Zelaya for a one-month leave from the company
to deal with impending trial on espionage and abuse of authority
charges. Hondutel allegedly allowed tapping of calls made by
government officials, including President Zelaya and congress
head Roberto Michelleti. The crime investigation agency DGIC
then raided Hondutel offices in San Pedro Sula and confiscated
equipment. President Zelaya issued the order for the search and
arrest of Mr. Chimirri on Oct. 22, 2007. The police raided Mr.
Chimirri's residence on Nov. 9, 2007. However, Mr. Chimirri was
in La Ceiba for the launch of a cellphone service. Mr.
Chimirri, through his family, sought guarantees that his human
rights would be respected. He also requested asylum in the
Italian consulate, due to his Italian lineage.
According to El Financiero, Minister Rosa is already in
Hondutel's board. He will start as the firm's president for a
month before President Zelaya appoints a definitive replacement
for Mr. Chimirri.
Finance minister Rebeca Santos is also in the Hondutel board,
Business News Americas relates.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
===========
M E X I C O
===========
ARROW ELECTRONICS: Combines Two Units Into US$1-Bln Software Biz
----------------------------------------------------------------
Arrow Electronics, Inc.'s Enterprise Computing Solutions
business has announced that it is transitioning its software
distribution business to Arrow's subsidiary, Alternative
Technology, Inc., creating a software business in excess of US$1
billion.
Through this arrangement, Alternative Technology will gain eight
additional product lines that previously were part of Arrow ECS'
Software Group and will oversee partner relationships and
internal staff for that business. Product lines that will be
transferred to Alternative Tech include Bakbone, BEA, CA,
CommVault, McAfee, Novell, Oracle and Symantec. Arrow ECS'
storage, HP and IBM businesses will not change.
"Arrow ECS is committed to increasing the depth of our offerings
in high- growth sectors, including software and security. In
addition, Arrow ECS is focused on delivering comprehensive
solutions to our partners," said Arrow Enterprise Computing
Solutions president, Kevin Gilroy. "This initiative enables
Arrow ECS to best serve our software suppliers and partners by
providing focused support and dedicated resources to grow their
business."
It is anticipated that the suppliers will be transitioned to
Alternative Technology by the end of Arrow's first quarter in
2008. A team comprising representatives from both Arrow ECS and
ATI will manage the integration process.
"This integration best enables Arrow ECS and ATI to share and
apply best practices within our respective software businesses,"
said Alternative Technology, Inc. president and chief executive
officer, Bill Botti. "Partners will benefit from enhanced
complementary product lines and a full suite of professional
services available through ATI."
About Alternative Technology
Alternative Technology, Inc. represents more than 30 software
and security suppliers, including Citrix and VMware.
Established in 1986, the company provides end-to-end solutions,
presales support, order management and marketing services to
more than 3,000 partners. The company also offers a robust
portfolio of processional services for partners, including
onsite engineering, security assessments and technical call
support.
Alternative Tech is a wholly owned subsidiary of Arrow
Enterprise Computing Solutions, which is a business unit of
Arrow Electronics, Inc.
About Arrow Electronics
Headquartered in Melville, New York, Arrow Electronics Inc.
(NYSE: ARW) -- http://www.arrow.com/-- provides products,
services and solutions to industrial and commercial users of
electronic components and computer products. Arrow serves as a
supply channel partner for nearly 600 suppliers and more than
130,000 original equipment manufacturers, contract manufacturers
and commercial customers through a global network of over 270
locations in 53 countries and territories.
The company operates in France, Spain, Portugal, Denmark,
Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden,
Italy, Germany, Austria, Switzerland, Belgium, the Netherlands,
United Kingdom, Argentina, Brazil, Mexico, Australia, China,
Hong Kong, Korea, Philippines and Singapore.
* * *
Arrow Electronics senior subordinated stock continues to carry
Moody's Investors Service's Ba1 rating. The company's senior
preferred stock is rated at Ba2.
ACXIOM CORPORATION: Inks Strategic Deal with Search Initiatives
---------------------------------------------------------------
Acxiom(R) Corporation has entered into a new strategic
partnership with Nashua, N.H.-based Search Initiatives LLC,
which will provide clients of Acxiom with more detailed business
directory data on small- to medium-sized businesses across the
country.
Acxiom will include data from Search Initiatives' subsidiary,
eLocal Listing, to further enhance its business data listings.
In turn, Search Initiatives will incorporate Acxiom data into
its products, including the company's search and search engine
optimization offerings.
"The U.S. business sector is constantly changing," said Jon
Cohn, Acxiom product leader, "and we are constantly looking for
innovative ways to further improve the quality of our business
data listings. With this agreement, we'll be able to provide
even more detailed business information to our many data
clients."
"We are in the business of speaking to thousands of U.S.
businesses every day," said Tim Judd, chief executive officer of
Search Initiatives. "Through our subsidiary, eLocal Listing, and
our network of call centers, we reach out and touch millions of
SMBs each year. The additional information we discover about
those companies during our process will be incorporated into
Acxiom's core business listing products."
The strategic alliance between the two companies reinforces the
importance of the emerging local online market and the value of
enhanced local contact data.
"The national online market has developed on a largely self-
service basis that doesn't work as well at the local level with
time-starved small businesses," Mr. Judd said. "To be effective
while marketing to the enormous U.S. small business market, you
need accurate, current data supported by the ability to talk to
those customers with a personal touch."
Based in Little Rock, Arkansas, Acxiom(R) Corporation (Nasdaq:
ACXM) -- http://www.acxiom.com/-- integrates data, services and
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world. The core components of Acxiom's
solutions are Customer Data Integration technology, data,
database services, IT outsourcing, consulting and analytics, and
privacy leadership. Founded in 1969, Acxiom has locations
throughout the United States, Europe, Australia and China.
Acxiom has a team of specialists with sales and business
development associates based in the largest Latin American
markets: Brazil, Argentina and Mexico.
* * *
As reported in the Troubled Company Reporter on Oct. 3, 2007,
Standard & Poor's Ratings Services said its 'BB' corporate
credit rating on Little Rock, Arkansas-based Acxiom Corp.
remains on CreditWatch with negative implications, where it was
placed on May 17, 2007. At the same time, S&P also placed the
'BB' senior secured debt ratings on CreditWatch with negative
implications, because the debt will no longer be refinanced as
part of the LBO financing.
CLEAR CHANNEL: Board Declares US$0.1875 Per Share Dividend
----------------------------------------------------------
Clear Channel Communications Inc.'s Board of Directors declared
a quarterly cash dividend of US$0.1875 per share on its Common
Stock. The dividend is payable on or before Jan. 15, 2008, to
shareholders of record at the close of business on
Dec. 31, 2007.
The company also provided an update on the status of its merger
with an affiliate of a private equity group co-led by Bain
Capital Partners, LLC and Thomas H. Lee Partners, L.P. Clear
Channel and the Sponsors continue to actively pursue the
satisfaction of the conditions to closing of the merger. The
remaining material conditions to be satisfied are obtaining the
requisite FCC consent and the expiration or termination of the
waiting period under the Hart Scott Rodino Act.
Clear Channel is confident that the necessary regulatory
conditions will ultimately be satisfied. However, it is not
expected that these conditions can be satisfied in time to allow
for a closing of the merger prior to the end of 2007.
Clear Channel intends to exercise its right to extend the
Termination Date on Dec. 12, 2007 in accordance with the
provisions of the Merger Agreement. Once extended, the new
Termination Date will be June 12, 2008.
Subject to the receipt of the requisite regulatory approvals and
customary closing conditions, Clear Channel expects the closing
of the merger will occur during the first quarter 2008.
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a 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.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 27, 2007, Fitch Ratings said it expects to downgrade Clear
Channel Communications Inc.'s Issuer Default Rating to 'B' from
'BB-'. The rating outlook is expected to be stable. Existing
ratings remain on rating watch negative pending the closing of
the merger transaction and review of final documentation.
CLEAR CHANNEL: Gets Okay for US$1.3-Billion Sale to Newport TV
--------------------------------------------------------------
Clear Channel Communication Inc. received approval from the
Federal Communications Commission to sell 35 television stations
to Newport Television LLC, a private equity firm controlled by
Providence Equity Partners Inc., for US$1.3 billion, various
sources report.
In its order, the FCC denied a petition filed by Buckley
Broadcasting of Monterey, seeking reconsideration of the 2002
Commission decision granting applications to transfer control of
the Ackerley Group Inc. to Clear Channel.
However, the FCC approval comes with certain conditions that
must be met by Newport in six months, including divesting TV
stations in nine markets where it is in violation with FCC
ownership rules. Companies must comply with the numerical
ownership limits of the FCC local television ownership rule.
The nine market areas are Bakersfield, San Francisco, Santa
Barbara, Fresno and Monterey in California; Salt Lake City;
Albany, New York; Jacksonville, Florida, and San Antonio, Texas.
Cross-ownership Rule Violation
Providence has defiled an FCC newspaper-broadcast station cross-
ownership rule in five markets because it owns interests in
Spanish language network Univision Communications Inc. and
Freedom Communications Holdings Inc.
On Oct. 31, 2007, Providence filed a request for more time, in
which it states that it "had intended to comply by way of
redemption of its attributable interest in Freedom," but that
"due to extraordinarily volatile conditions in the credit market
and newspaper industry in general," it has not been able to
obtain the necessary financing. Instead, it proposes to convert
its interest in Freedom into one that is not attributable under
the FCC's rules and, by doing so, come into compliance with the
rule.
About Clear Channel
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a 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.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 27, 2007, Fitch Ratings said it expects to downgrade Clear
Channel Communications Inc.'s Issuer Default Rating to 'B' from
'BB-'. The rating outlook is expected to be stable. Existing
ratings remain on rating watch negative pending the closing of
the merger transaction and review of final documentation.
CLEAR CHANNEL: Provides Update on Bain Capital/THLP Merger
----------------------------------------------------------
Clear Channel Communications, Inc. provided an update on the
status of its merger with an affiliate of a private equity group
co-led by Bain Capital Partners, LLC and Thomas H. Lee Partners,
L.P. Both parties continue to actively pursue the satisfaction
of the conditions to closing of the merger. The remaining
material condition to be satisfied is obtaining the expiration
or termination of the waiting period under the Hart Scott Rodino
Act.
As reported in the Troubled Company Reporter on May 21, 2007,
Clear Channel entered into a second amendment to its merger
agreement with a private equity group co-led by Thomas
H. Lee Partners, L.P. and Bain Capital Partners, LLC. Under the
terms of the merger agreement, as amended, Clear Channel
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. This is an
increase from the previous cash consideration of US$39.00 per
share.
As an alternative to receiving the US$39.20 per share cash
consideration, Clear Channel'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 Clear
Channel (subject to aggregate and individual caps), plus the
additional per share consideration, if any.
Clear Channel is confident that the necessary regulatory
condition will ultimately be satisfied. However, it is not
expected that these conditions can be satisfied in time to allow
for a closing of the merger prior to the end of 2007.
Clear Channel intends to exercise its right to extend the
Termination Date on Dec. 12, 2007, in accordance with the
provisions of the Merger Agreement. Once extended, the new
Termination Date will be June 12, 2008.
Subject to the receipt of the requisite regulatory approval and
customary closing conditions, Clear Channel expects the closing
of the merger will occur during the first quarter 2008.
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a 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.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 27, 2007, Fitch Ratings said it expects to downgrade Clear
Channel Communications Inc.'s Issuer Default Rating to 'B' from
'BB-'. The rating outlook is expected to be stable. Existing
ratings remain on rating watch negative pending the closing of
the merger transaction and review of final documentation.
INTERSTATE HOTELS: Closes US$118-Million Buyout of Three Hotels
---------------------------------------------------------------
Interstate Hotels & Resorts has completed the transaction to
acquire three hotels from affiliates of The Blackstone Group
L.P. for an aggregate price of US$118 million.
Two of the hotels, the 321-room Hilton Seelbach Louisville in
Kentucky and the 226-room Crowne Plaza Madison in Wisconsin,
were acquired through a joint venture partnership with
Investcorp International's U.S.-based Real Estate Group.
Interstate invested approximately US$4.7 million for a 15%
equity interest in these properties, which will continue to be
operated by Interstate under new management agreements.
As part of the overall transaction, Interstate closed on the
acquisition of a 100% interest in the third hotel, the Sheraton
Columbia, for US$46.5 million. The company will immediately
begin a US$12 million comprehensive renovation of the property,
including upgrades to all guest rooms and public spaces. The
renovation is expected to be completed by the end of 2008.
Interstate funded the acquisitions with available cash and
capacity under its senior revolving credit facility.
"This transaction, which includes our seventh wholly owned
property and two additional joint venture properties,
illustrates our continued ability to execute on our growth
strategy," Thomas F. Hewitt, Interstate's chief executive
officer, said. "We know these properties well and are confident
that we can create substantial value for our partners and our
shareholders."
Sheraton Columbia Maryland
The 288-room Sheraton Columbia Hotel is located in Columbia,
Maryland, a 14,000-acre planned community approximately 40 miles
north of Washington, D.C., and 15 miles from Baltimore.
Situated in Howard County features more than 2,500 businesses,
over 60,000 jobs, 21 million square feet of commercial and
residential space and an array of social, cultural, educational,
entertainment and recreational programs and facilities.
Hilton Seelbach Louisville Kentucky
Since its opening in 1905, Seelbach Hilton Louisville, a 321-
room property offers the atmosphere of a bygone era including
internet access in all guest rooms and meeting rooms. It also is
home to Kentucky's Oak Room restaurant. The hotel is situated
downtown, close to Louisville's attractions.
Crowne Plaza Madison Wisconsin
Located off I-90/94, three miles from the Madison airport, the
226-room Crowne Plaza is situated near Madison's shopping mall,
theater and restaurants, and proximate to the city's convention
center, the University of Wisconsin and the state capitol.
Renovated in 2005, the hotel features an indoor pool, restaurant
and lounge, a business center and more than
6,800 square feet of meeting space.
About Investcorp Real Estate Group
The Investcorp Real Estate Group (LSE: IVC, BSE: INVCORP) --
http://www.investcorp.com/-- is a return-oriented real estate
investor. Investcorp's real estate team, is experienced in the
acquisition, development, financing, leasing, management, and
disposition of a wide variety of property types including
office, retail, hotel, residential, mixed-use, luxury resort and
others. The Investcorp Real Estate Group is part of Investcorp,
a provider and manager of alternative investment products.
Investcorp has offices in New York, London and Bahrain. Founded
in 1982, the firm has five lines of business: private equity,
real estate, hedge funds, venture capital and Gulf growth
capital.
About Interstate Hotels & Resorts Inc.
Headquartered in Arlington, Virginia, Interstate Hotels &
Resorts Inc. (NYSE: IHR)-- http://www.ihrco.com/-- operated
189 hospitality properties with more than 43,000 rooms in
36 states, the District of Columbia, Belgium, Canada, Ireland,
Mexico and Russia, including six wholly-owned properties and
20 properties with a minority ownership interest through 13
separate joint ventures, as of Aug. 31, 2007. In addition,
Interstate Hotels & Resorts has contracts to manage 16
hospitality properties with nearly 4,600 rooms under
development.
* * *
Moody's Investor Services placed Interstate Hotels & Resorts
Inc.'s long term corporate family rating at B1 in January 2007.
Moody's said the outlook is negative.
In August 2004, Standard & Poor's placed the company's long term
foreign and local issuer credit ratings at B. Both ratings
still hold to date.
MAZDA MOTOR: Planned Sales Consolidation Will Not Push Through
--------------------------------------------------------------
Mazda Motor Corp.'s China unit has recently named its chief
operating officer, Noriaki Yamada, as head of its marketing and
sales in China, reports SinoCast China Transportation Watch.
According to the report, Mazda, which planned to consolidate its
sales operations in China into only FAW Mazda Automobile Co.,
Ltd., failed to make the plan come true.
Originally, Mazda China will take charge of the sales operation
in China with two sales networks in FAW Mazda and Chang'an Ford
Mazda Automobile Co., Ltd. in order to support Mazda's plan to
enrich its products portfolio in the country, states the report.
SCTW relates that the plan was Mazda's strategy to sell
Mazda-branded cars that would be made in China in future via FAW
Mazda, Mr. Yamada, former president of FAW Mazda, disclosed when
the Japanese auto giant formed the sales venture in 2005 in
partnership with China FAW Group Corp. and its subsidiary FAW
Car Co., Ltd.
However, Chang'An Auto Group, another Chinese partner of Mazda,
opposed to the proposition. Mazda, its controlling shareholder
Ford Motor Co., joined hands with Chang'An Auto to form Chang'an
Ford Mazda, recalls the report.
After discussions, Chang'an Ford Mazda, Mazda Motor and FAW
reached accord that Mazda 3 and the future models to be made in
Chang'an Ford Mazda would only be available in the new sales arm
of Chang'an Ford Mazda.
About Mazda Motor
Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor
Corporation -- http://www.mazda.co.jp/-- together with its
subsidiaries and associates, is primarily involved in the
manufacture and distribution of automobiles. The company
manufactures passenger cars and commercial vehicles. Mazda
Motor distributes its products in both domestic and overseas
markets. The company has 58 subsidiaries. It has overseas
operations in the United States, Canada, Mexico, Germany,
Belgium, France, the United Kingdom, Switzerland, Portugal,
Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand,
Indonesia and China. The Company has a global network.
* * *
As reported on April 27, 2007, Standard & Poor's Ratings
Services raised Mazda Motor Corp.'s long-term corporate credit
rating and the company's long-term senior unsecured debt to:
* Corporate Credit Rating: BB /Stable/
* Company's Long-term Senior Unsecured Debt: BB+
S&P's rating actions reflect Mazda's improved operational and
financial performance, and financial risk profile. Mazda's
operating and financial performance has been improving over the
past several years due to the success of new products following
a shift in strategy. The company continued to improve operating
and financial performance in the nine months ended
Dec. 31, 2006, owing to an improved sales mix and favorable
foreign exchange rates. Although the EBITDA margin of about 6%
remains lower than most of its Japanese peers, profitability is
steadily improving. Mazda is now focusing on certain segments
instead of attempting to compete as a full-line producer. The
company also has excellent product engineering capabilities.
WESCO INTERNATIONAL: Acquires Assets of Monti Electric Supply
-------------------------------------------------------------
WESCO International, Inc. has acquired the assets of Monti
Electric Supply, Inc. Waveland-Mississippi based Monti Electric
is a construction oriented electrical distributor and has three
branch locations and annual sales of approximately US$20
million.
WESCO's Senior Vice President and Chief Financial and
Administrative Officer, Stephen A. Van Oss stated, "The addition
of Monti Electric will provide WESCO with a broader market
position to benefit from the long-term hurricane-related
reconstruction of the Gulf Coast region. The acquisition should
be immediately accretive to earnings."
Monti Electric Supply President, Joe Monti said, "We are very
eager to join the WESCO team. The combination of Monti Electric
Supply's local market knowledge and customer relationships and
WESCO's large construction project experience and national
resources will enable us to capture a significant share of the
growth forecast for our region."
About WESCO International
Headquartered in Pittsburgh, Pennsylvania, WESCO International,
Inc., (NYSE: WCC) is a publicly traded Fortune 500 holding
company, whose primary operating entity is WESCO Distribution,
Inc. WESCO Distribution is a distributor of electrical
construction products and electrical and industrial maintenance,
repair and operating supplies, and is the nation's largest
provider of integrated supply services. WESCO operates eight
fully automated distribution centers and approximately 370 full-
service branches in North America and selected international
markets including Mexico and Puerto Rico, providing a local
presence for area customers and a global network to serve multi-
location businesses and multi-national corporations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 4, 2007, Moody's has affirmed the ratings of Wesco
International, Inc. and changed the outlook to stable from
positive. Specifically, Moody's affirmed the B1 ratings on both
the guaranteed senior convertible debentures due 2025 and Wesco
Distribution, Inc.'s guaranteed senior subordinated notes due
2017. Moody's also affirmed the company's Ba3 corporate family
rating.
=======
P E R U
=======
FREEPORT-MCMORAN: Common Stock Dividend Up to US$1.75 Per Share
---------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc.'s Board of Directors has
authorized an increase in its annual common stock dividend from
US$1.25 per share to US$1.75 per share. The dividend will be
payable quarterly (US$0.4375 per share) beginning with the
February 2008 dividend payment.
FCX also announced that its Board of Directors approved a new
open market share purchase program authorizing purchases
totaling 20 million shares. The timing of future purchases is
dependent upon many factors including the company's operating
results, cash flow and financial position, the market price of
the common shares and general economic and market conditions.
James R. Moffett, Chairman of the Board of FCX, and Richard C.
Adkerson, FCX's Chief Executive Officer, said, "With the
anticipated repayment of our term debt by year end, we will have
reduced debt by more than $10 billion since our March 2007
acquisition of Phelps Dodge, achieving our debt reduction
objectives 2-3 years sooner than initially targeted. This has
enabled us to take a first step of increasing cash returns to
shareholders through a 40 percent increase in our common
dividend. The Board's authorization of a new share purchase
program will enable us to purchase shares from time to time in
future periods as we generate cash flows in excess of our
capital expenditures and other cash requirements. Our financial
policy will be reviewed on an ongoing basis and will be designed
to maintain a strong balance sheet, enable financial flexibility
to invest in organic growth and provide strong cash returns to
shareholders subject to market conditions."
FCX has approximately 382 million shares of common stock
outstanding and approximately 444 million assuming conversion of
FCX's convertible securities.
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) --
http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
As reported in the Troubled Company Reporter-Latin America on
Oct. 1, 2007, Moody's Investors Service revised Freeport-McMoRan
Copper & Gold Inc.'s outlook to positive and affirmed all of its
other ratings. The ratings reflect the overall probability of
default of Freeport, to which Moody's assigns a PDR of Ba2.
Ratings affirmed:
Issuer: Freeport-McMoRan Copper & Gold Inc.
-- Corporate Family Rating: Ba2;
-- Probability of Default Rating: Ba2;
-- US$0.5 billion Senior Secured Revolving Credit
facility, Baa2, LGD1, 2%;
-- US$1.0 billion Senior Secured Revolving Credit
Facility, Baa3, LGD2, 17%;
-- US$2.45 billion Senior Secured Term Loan A, Baa3,
LGD2, 17%;
-- US$339.7 million 6.875% Senior Secured Notes due
2014, Baa3, LGD2, 17%; and
-- US$6 billion Senior Unsecured Notes: Ba3, LGD5, 80%.
=====================
P U E R T O R I C O
=====================
ADELPHIA COMMUNICATIONS: Court Awards Comcast US$9 Million
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
awarded Comcast Corp. US$9,000,000 in lieu of all distributions
to which Comcast would otherwise have been entitled to under
Reorganized Adelphia Communications Corp.'s First Modified Fifth
Amended Joint Plan of Reorganization on account of:
-- the Retained Claims as defined in the April 20, 2005 Asset
Purchase Agreement, as amended, between Adelphia
Communications Corp. and Comcast; and
-- Comcast's Claim Nos. 16336, 16337, 16342, 16343, 16344,
and 16345 related to three joint ventures between the ACOM
Debtors, on the one hand, and Comcast, TCI Adelphia
Holdings, LLC, and TCI California Holdings, LLC, on the
other hand.
The Comcast Joint Venture Claims will be deemed Allowed
Subsidiary Debtor Other Unsecured Claims under the Plan, the
Court clarifies.
Comcast, along with Time Warner Cable, acquired substantially
all of ACOM's assets in July 2006 for approximately US$12.5
billion in cash and approximately 16% of the equity of Time
Warner's cable subsidiary.
With the exception of any claims under the Comcast APA, the ACOM
Debtors and and the Adelphia Recovery Trust are deemed to have
released any and all claims against the Joint Ventures, TCI
Adelphia Holdings, and TCI California Holdings that arose on or
prior to Nov. 26, 2007.
The Reorganized ACOM Debtors had objected to more than 100
claims filed by Comcast, asserting that the Comcast Claims:
-- are not reflected in their books and records;
-- do not contain adequate information or documentation
supporting the claim amounts; or
-- are duplicative to other claims.
About Adelphia Communications
Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a
cable television company. Adelphia serves customers in 30
states and Puerto Rico, and offers analog and digital video
services, Internet access and other advanced services over its
broadband networks. The company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002. Those cases are jointly
administered under case number 02-41729. Willkie Farr &
Gallagher represents the Debtors in their restructuring efforts.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.
Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family. In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision LLC. The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642). Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates' chapter 11
cases. The Bankruptcy Court confirmed the Debtors' Modified
Fifth Amended Joint Chapter 11 Plan of Reorganization on
Jan. 5, 2007. That plan became effective on Feb. 13, 2007.
(Adelphia Bankruptcy News, Issue No. 180; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
AFC ENTERPRISES: Board Okays US$50-Mln Share Repurchase Increase
----------------------------------------------------------------
AFC Enterprises, Inc. Board of Directors has approved increasing
its share repurchase program by an additional US$50 million,
effective immediately.
The program, which is open-ended, allows the company to
repurchase its shares on the open market from time to time in
accordance with the requirements of the Securities and Exchange
Commission.
During fiscal year 2007 through Nov. 2, 2007, the company has
repurchased more than 2.1 million shares of common stock for
approximately US$35.2 million. This expanded multi-year program
is subject to the limitations of the company's outstanding
credit facility. Under those limitations, the company has the
ability to repurchase approximately US$17.3 million of
additional shares during the remainder of fiscal year 2007. As
of Nov. 2, 2007, approximately 27.7 million shares of the
company's common stock were outstanding.
About AFC Enterprises
Headquartered in Atlanta, Georgia, AFC Enterprises Inc. (Nasdaq:
AFCE) -- http://www.afce.com/-- owns, operates and franchises
Popeyes Chicken & Biscuits quick service restaurants. As of
July 15, 2007, AFC owned and operated 61 restaurants and
franchised 1,817 restaurants in 44 states, the District of
Columbia, Puerto Rico, Guam and 23 foreign countries. The
Popeyes concept features a New Orleans Cajun-style menu, with
regional items such as spicy fried chicken pieces, chicken
sandwiches and strips, fried shrimp, jambalaya and red beans &
rice.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 26, 2007, Moody's Investors Service changed AFC
Enterprises Inc.'s rating outlook to stable from positive.
Concurrently, Moody's affirmed all the debt ratings of AFC,
including its B1 corporate family rating and probability of
default rating at B2, while upgrading the senior secured credit
facilities rating to Ba3 from B1.
APARTMENT INVESTMENT: Corrects End of Dividend Period to Jan. 15
----------------------------------------------------------------
On Dec. 2, 2007, Apartment Investment and Management Company
Board of Directors has declared dividends on shares of its Class
G, T, U, V and Y Cumulative Preferred Stock with dividend
information as:
Class of Beginning of End of Per Share
Preferred Dividend Period Dividend Period Dividend
Stock Declared
9.375% Class G Pref. Oct. 15, 2007 Jan. 14, 2008 US$0.5859375
8.000% Class T Pref. Oct. 15, 2007 Jan. 14, 2008 US$0.50
7.750% Class U Pref. Oct. 15, 2007 Jan. 14, 2008 US$0.484375
8.000% Class V Pref. Oct. 15, 2007 Jan. 14, 2008 US$0.50
7.875% Class Y Pref. Oct. 15, 2007 Jan. 14, 2008 US$0.49219
Dividends on shares of Class G, T, U, V and Y Cumulative
Preferred Stock are payable on Jan. 15, 2008, to shareholders of
record on Jan. 1, 2008.
Headquartered in Denver, Colorado, Aimco (NYSE: AIV) is a real
estate investment trust that owns and operates a geographically
diversified portfolio of apartment communities through 19
regional operating centers. Aimco, through its subsidiaries,
operates 1,320 properties, including approximately 230,000
apartment units, and serves approximately one million residents
each year. Aimco's properties are located in 47 states, the
District of Columbia and Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 26, 2007, Fitch Ratings has affirmed the following ratings
on Apartment Investment & Management Company (AIMCO):
AIMCO
-- Issuer Default Rating at 'BBB-';
-- US$823.5 million preferred stock at 'BB+'.
AIMCO Properties L.P.
-- US$1.125 billion bank credit facility at 'BBB-'.
Fitch said the rating outlook is stable.
DORAL FINANCIAL: Sterne Puts Sell Rating on Firm's Shares
---------------------------------------------------------
Sterne, Agee & Leach has assigned a "sell" recommendation on
Doral Financial's shares, Business News Americas reports.
According to BNamericas, Sterne set US$10 per share target price
for Doral Financial.
Analyst Adam Barkstrom commented to BNamericas, "Given the
myriad of issues at Doral, asset quality especially, there is no
way we can get even close to the current trading price of the
shares."
BNamericas notes that Doral Financial's over US$19 trading price
indicates "a book value multiple of 1.2x reported book but a
full 2.0x Sterne, Agee & Leach adjusted estimate. The latter
does not include adjustments for the lack of adequate coverage
of non-performing loans by loan loss reserves."
"We view the shares as significantly overvalued," Mr. Barkstrom
commented to BNamericas.
Mr. Barkstrom told BNamericas that he doesn't expect a return to
profitability for Doral Financial at least through the end of
2008.
Based in New York City, Doral Financial Corp. (NYSE: DRL) --
http://www.doralfinancial.com/-- is a diversified financial
services company engaged in mortgage banking, banking,
investment banking activities, institutional securities and
insurance agency operations. Its activities are principally
conducted in Puerto Rico and in the New York City metropolitan
area. Doral is the parent company of Doral Bank, a Puerto Rico
based commercial bank, Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm, Doral
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank
based in New York City.
* * *
As reported in the Troubled Company Reporter on Aug. 2, 2007,
Fitch Ratings has placed Doral Financial Corporation's ratings
on Positive Outlook:
Doral Financial Corporation
-- Long-term Issuer Default Rating 'CCC';
-- Senior debt to 'CCC/RR4'';
-- Preferred stock to 'C/RR6';
-- Short-term Issuer Default Rating 'C';
-- Support '5';
-- Support Floor 'NF';
-- Individual 'E'.
Doral Bank
-- Long-term Issuer Default Rating 'B';
-- Long-term deposits B+;
-- Support '5';
-- Support Floor 'NF';
-- Individual 'D';
-- Short-term Issuer 'B';
-- Short-term deposit obligations 'B'.
As reported in the Troubled Company Reporter-Latin America on
July 23, 2007, Moody's Investors Service confirmed the B2 senior
debt rating of Doral Financial Corporation. The rating had been
on review for possible downgrade since Jan. 5, 2007. Moody's
said the rating outlook is stable.
SIMMONS BEDDING: Names Steve Fendrich as Chief Operating Officer
----------------------------------------------------------------
Simmons Bedding Company has appointed that Steve Fendrich as its
president and chief operating officer effective Jan. 1. Mr.
Fendrich will report to Chairman and chief executive officer
Charlie Eitel and is succeeded by Dominick Azevedo, senior vice
president of sales, who will assume the role of executive vice
president of sales. In addition to Mr. Azevedo, Tim Oakhill,
executive vice president of marketing, Rob Burch, executive vice
president of operations, Scott Smalling, president of Simmons'
specialty division, and Paul Bognar, president of Simmons
Canada, will also report to Mr. Fendrich under the new
structure.
"Steve's more than 24 years of experience in the bedding
industry has helped us to gain a deeper understanding of our
retailers' needs, which, in turn, has contributed to record
sales despite a very competitive environment," said Mr. Eitel.
"Steve's vision and motivation have driven us to strive for
excellence in all areas of our business. I could not be more
pleased about this appointment and look forward to continued
success with Steve at the helm."
Under Mr. Fendrich's leadership in sales, Simmons has gained
considerable market share as a result of ten successive quarters
of domestic sales growth. Mr. Fendrich has been instrumental in
devising and overseeing the company's strategy to compete at a
broad range of retail price points, which has been one of the
principal drivers of sales growth.
Since joining Simmons in August 2005, Mr. Fendrich made
significant improvements to the company by realigning its sales
organization to deliver higher service levels to its dealers.
Mr. Fendrich also had a leadership role in the company's
decision to exit retail with the sale of its subsidiary Sleep
Country USA in 2006, and he has been instrumental in the
integration of the company's two most recent acquisitions,
former licensee Simmons Canada in 2006 and specialty sleep
manufacturer ComforPedic earlier this year.
"I am honored to be part of a company that is committed to
world-class service in every area in which it operates," said
Mr. Fendrich. "Since I joined the executive leadership team
over two years ago, I have been consistently impressed with the
caliber of talent across all facets of the organization. I'm
very excited about continuing to work together in my new role to
sustain our positive momentum."
Prior to joining Simmons, Mr. Fendrich was chief executive
officer and president of the company's former Sleep Country USA
retail operations. Before his role at Sleep Country, Mr.
Fendrich was a co-founder and former owner of The Mattress Firm,
one of the nation's largest mattress retailers. From 1986 to
2000, he managed The Mattress Firm's expansion from its original
location in Houston to more than 200 company-owned and
franchised stores across the United States.
Headquartered in Atlanta, Georgia, Simmons Company -
http://www.simmons.com/-- through its indirect subsidiary
Simmons Bedding Company, is one of the world's largest mattress
manufacturers, manufacturing and marketing a broad range of
products including Beautyrest(R), BackCare(R), BackCare Kids(R)
and Deep Sleep(R). Simmons Bedding Company operates 21
conventional bedding manufacturing facilities and two juvenile
bedding manufacturing facilities across the United States,
Canada and Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 24, 2007, Standard & Poor's Ratings Services has raised
its bank loan rating on Simmons Bedding Co.'s US$565 million
senior secured financing to 'BB-' from 'B+'.
=================
V E N E Z U E L A
=================
CHRYSLER LLC: Implements Downsizing Plan, Workers Leave
-------------------------------------------------------
Chrysler LLC's first batch of salaried workers, who opted for
the company's buyout proposals, left Friday. Another batch will
be leaving at the end of the year, various reports stated.
As reported in the Troubled Company Reporter on Nov. 5, 2007,
Chrysler disclosed that it would make volume-related
reductions at several of its North American assembly and
powertrain plants. Shifts will be eliminated at five North
American assembly plants which, combined with other volume-
related manufacturing actions, will lead to a reduction of
8,500-10,000 additional hourly jobs through 2008.
Additional actions include reductions of salaried employment by
1,000 and supplemental (contract) employment by 37%. The
company also plans to eliminate hourly and salaried overtime and
reduce purchased services due to reduction in volume. The
volume-related actions are in addition to 13,000 jobs
eliminated by the three-year Recovery and Transformation Plan
announced in February. The objectives of the RTP remain the
same.
Sources say, citing Chrysler spokesman David Elshoff, that the
first buyout program called the "special incentive program" was
offered to workers who were 62 years old or older with 10 years
(or more) of service. The buyout program presented these white-
collared workers three months' salary and either a vehicle
voucher worth US$20,000 after taxes or a US$20,000 tax-free
contribution to a retirement health care account, in addition to
full pension and retiree health benefits.
Workers ages 53 to 61 with at least 10 years of service who make
less than US$100,000 annually, as well as select workers ages 55
to 61 with 10 years of service who make US$100,000 or more in
salary will be offered Chrysler's second buyout program, which
provides full pension and retiree health care benefits," Eric
Morath of The Detroit News relates. The program is otherwise
known as "the special early retirement program."
About Chrysler
Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 13, 2007, Standard & Poor's Ratings Services affirmed its
'B' corporate credit rating on Chrysler LLC and DaimlerChrysler
Financial Services Americas LLC and removed it from CreditWatch
with positive implications, where it was placed Sept. 26, 2007.
S&P said the outlook is negative.
CMS ENERGY: Ford Deal Termination Won't Affect Fitch Ratings
------------------------------------------------------------
CMS Energy Corp.'s recent announcement that indirect subsidiary,
Dearborn Industrial Generation LLC has reached agreements to
terminate unprofitable electricity sales agreements with Ford
Motor Company and Severstal North America Inc. will not have any
effect on the ratings or Rating Outlook of CMS Energy, according
to Fitch Ratings. Under the terms of the termination
agreements, CMS will make a one-time cash payment of US$275
million to Ford and Severstal. The termination agreement is
conditioned upon the ability of Ford and Severstal to return to
electric service with the Detroit Edison Company. Fitch
currently rates CMS Energy's Issuer Default Rating 'BB+' with a
Stable Outlook.
CMS Energy has sufficient liquidity to withstand the US$275
million payout through its credit facilities. There was
approximately US$296 million available under credit facilities
as of Sept. 30, 2007. The termination of these agreements is
considered favorable and is a factor in Fitch's current ratings
analysis.
Dearborn Industrial entered into the agreements (260 MW) with
Ford and Severstal in 1999 to provide steam and/or electricity
based on a fixed price schedule. The price of natural gas, the
primary fuel used by Dearborn Industrial, is volatile and has
increased substantially in recent years. Because the prices
charged under Dearborn Industrial's contracts do not reflect
current natural gas prices, its financial performance has been
impacted negatively. The long-term contracts have been a drag
on CMS Energy earnings for several years due to higher gas
prices. However, since not all of its 710 mw of capacity is
committed under these contracts, Dearborn Industrial has been
selling portions of its electric capacity and/or energy into the
market at a profit; and engaging in hedging strategies to
minimize its losses. With the termination of the Ford and
Severstal agreements, it is expected that Dearborn Industrial
will post positive cash flows beginning in 2008.
Headquartered in Jackson, Michigan, CMS Energy Corp. (NYSE: CMS)
-- http://www.cmsenergy.com/-- is a company that has an
electric and natural gas utility, Consumers Energy, as its
primary business and also owns and operates independent power
generation businesses. The company has offices in Venezuela.
PETROLEOS DE VENEZUELA: Wants 190 Oil Rigs by End of Next Year
--------------------------------------------------------------
Venezuelan oil and energy minister Rafael Ramirez told Business
News Americas that state-run oil firm Petroleos de Venezuela SA
wants to have about 190 oil rigs running by the end of 2008.
Minister Ramirez said in a statement that with the recent
arrival of two Chinese-made rigs, about 156 rigs are operating
in Venezuela.
BNamericas relates that Venezuela will run 27 Chinese rigs after
Petroleos de Venezuela signed an accord with Chinese counterpart
China National Petroleum Corp. About 13 rigs will be shipped
from China and some 14 will be assembled in Venezuela.
Minister Ramirez said in a statement that Venezuelan technicians
and engineers have been studying how to run the rigs in China.
Minister Ramirez commented to BNamericas, "They are coming back
with the ability to operate our own rigs."
The Venezuelan government wants to begin natural gas production
at offshore wells by the end of next year as part of its Costa
Afuera program, BNamericas says, citing Minister Ramirez. The
Venezuelan officer said in the report that Petroleos de
Venezuela contracted a Singapore-based rig vessel to drill up to
32 natural gas wells.
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 USUS$2 billion notes due
2017, USUS$2 billion notes due 2027, and USUS$1 billion notes
due 2037.
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, USUS$2 billion notes due 2027, and US$1 billion notes due
2037.
* VENEZUELA: Buying Argentina's Boden 2015 Bonds for US$604 Mil.
----------------------------------------------------------------
El Universal relates that Argentina has sold Boden 2015 bonds to
Venezuela. The bonds, with a face value of US$604 million, is
part of a last month's deal, which moved to over US$5 billion
the sale of Argentinean securities to the Venezuelan State over
the past three years.
According to the report, the Argentinean government has received
US$500 million after the transaction and added that the money
had entered the Treasury on Nov. 19.
The resolution, which was released on Dec. 4, has disclosed that
the operation would be conducted in the future, El Universal
states.
However, a Minister of Economy spokesman has clarified that it
was the formalization, 12 days after, of an announcement made
last November, Reuters says.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Fitch Ratings assigned these ratings to the
Bolivarian Republic of Venezuela's bonds under the 'El
Venezolano I' combined offer:
-- US$750 million 30-year Eurobond, 7% coupon 'BB-';
-- VEB806.250 billion 7-year variable coupon bond 'BB-';
-- VEB806.250 billion 8-year, variable coupon bond 'BB-'.
* VENEZUELA: Fitch Won't Change Ratings After Referendum
--------------------------------------------------------
On Dec. 4, 2007, Fitch Ratings said that the outcome of the
referendum on Venezuelan President Hugo Chavez's proposal to
reform the constitution is not likely to have an immediate
impact on the Bolivarian Republic of Venezuela's Issuer Default
Ratings as changes in either the formulation or direction of the
government's economic policies are highly unlikely. The Rating
Outlook on Venezuela is Negative. Additionally, the measured
reaction by political actors has minimized political and social
instability thus far. According to preliminary results provided
by the National Electoral Council, the 'No' option received
50.7% of the votes defeating the 'Yes' vote (49.2%) by a narrow
margin. Abstention was high at an estimated 44%.
"While approval of the constitutional reform would have
institutionalized the increasing role of the state in the
economy and further strengthened the executive, in practice,
this is already occurring," said Fitch's Sovereign group Senior
Director, Theresa Paiz Fredel. "Policy decisions are highly
concentrated in the executive branch, as highlighted by the lack
of central bank independence and autonomy and the discretionary
use of resources by the government," she added.
Moreover, the government is still in a position to advance its
"Socialism of the 21st century" and elements of its reform
proposal through decrees and legislation. The Enabling Law
grants President Chavez the power to rule by decree for
approximately nine more months. In addition, the President can
also count on the unconditional support of virtually all of the
National Assembly members, as evidenced by the its loyal
handling of the President's constituent reform proposal.
Political considerations are likely to continue guiding economic
policy beyond this electoral event. As a result, Venezuela's
creditworthiness will remain constrained by the country's
vulnerability of external and public sector accounts to a
decline in oil prices, an inability to significantly reduce
inflation and a widening of the spread between the official and
parallel market exchange rates.
Expenditure growth under a favorable oil price environment has
steadily increased the break-even price for the Venezuelan
basket. Thus, even a modest fall in international oil prices
could put pressure on fiscal accounts. Fiscal and quasi-fiscal
expansion, coupled with a largely accommodative monetary policy,
will result in Venezuela having the highest inflation rate in
the hemisphere for a third consecutive year. The government's
heterodox response in the form of price controls and subsidies
has not only failed to contain inflation, but has contributed to
shortages and higher black market prices. At the same time, the
official exchange rate remains overvalued relative to the
parallel rate due to the restricted access to dollars under the
capital control regime, as well as speculation over a future
devaluation of the official rate within the context of
Venezuela's increasingly unsustainable macroeconomic framework.
The political and social situation of the country remains calm
as the initial reaction of both the government and anti-reform
forces has been characterized by restraint and the acceptance of
the legitimacy of the referendum outcome. Fitch will continue
to monitor events closely given the high degree of political
polarization present in the country and the potential for
political instability to negatively affect creditworthiness.
However, low debt maturities and a high level of accumulated
assets support Venezuela's ratings at this time.
* VENEZUELA: Referendum May Have Long Term Impacts, Moody's Says
----------------------------------------------------------------
While Dec. 2, 2007's referendum results in Venezuela have had no
immediate impact on the country's credit ratings, their longer-
term effect will depend on how the government and opposition
react to the vote, according to Moody's Investors Service.
"President Chavez has five years remaining in his term of
office, and he retains complete control of the legislature,"
said Moody's Analyst Gabriel Torres. "But his defeat this week
could bolster the formerly demoralized opposition and raise the
profile of the many Chavez supporters who have become
uncomfortable with the government's priorities."
"The results of the referendum were genuinely shocking to both
sides," said Mr. Torres. "If the ultimate result is a
reassessment of some of the current policy stances and improved
policy predictability, this will be a net positive for the
credit over the medium term."
In the referendum, Venezuelans rejected government-proposed
constitutional reforms that would have allowed the indefinite
re-election of President Hugo Chavez and further entrenched the
executive's control over the country's governmental structures.
It was the first loss in a national election for Chavez since he
came to power in 1999.
"Given current and expected high oil prices and sizable, if
opaque, government financial assets, Venezuela's current rating
is constrained by policy and political concerns and not by
doubts about the country's capacity to pay its debt," said Mr.
Torres. "To move the ratings up, Moody's would look for
improvement in the country's policy framework and greater
transparency in the fiscal accounts."
Neither of those scenarios is likely to develop as a direct
consequence of the failed referendum, he said. Moody's will
continue to monitor the reaction of both the government and its
detractors as they strive to better understand the message sent
by Venezuelan voters.
***********
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.
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