/raid1/www/Hosts/bankrupt/TCRLA_Public/071212.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
Wednesday, December 12, 2007, Vol. 8, Issue 246
Headlines
A R G E N T I N A
CHRYSLER LLC: Top Spokesman Quits Spurring Corporate Realignment
CINDIA SA: Seeks for Reorganization Okay in Buenos Aires Court
CUVERA AGROPECUARIA: Seeks for Reorganization Okay in Court
ESTANCIAS NORAFE: Files for Reorganization in Buenos Aires Court
GALVANI SA: Trustee Verifies Proofs of Claim Until Feb. 27, 2008
GUARIBAL SA: Seeks for Reorganization Okay in Buenos Aires Court
I RUBINS: Proofs of Claim Verification Deadline Is Feb. 18, 2008
MAYA-QUINTANA: Trustee Verifies Proofs of Claims Until March 28
TAPIZADOS RAMOS: Proofs of Claim Verification Ends on March 13
VELIDI SA: Seeks for Reorganization Okay in Buenos Aires Court
* ARGENTINA: Inks Foundation Act; Launches Bank of the South
B A R B A D O S
ANDREW CORP: Shareholders Okay CommScope Merger Agreement
B E L I Z E
* BELIZE: S&P Affirms B Sovereign Ratings with a Stable Outlook
B E R M U D A
LIGHT HOUSE: Supreme Court Hearing Wind-Up Petition on Dec. 14
NCB INSURANCE: Supreme Court To Hear Wind-Up Petition on Dec. 14
SENSU LTD: Supreme Court Will Hear Wind-Up Petition on Dec. 14
B O L I V I A
* BOLIVIA: Inks Foundation Act; Launches Bank of the South
B R A Z I L
ADVANCED MICRO: Brings In Mike Uhler as Vice President
BANCO NACIONAL: Extending Credit Line for Dominican Republic
BANCO NACIONAL: Inks Cooperation Pact with Ministry of Health
CHEMTURA CORP: Creates Office of the Chairman
COSAN SA: Closes Down Usina Santa Luiza & Agricola Aquidaban
DELPHI CORP: Noteholders Balk at Revised Disclosure Statement
DELPHI CORP: Disclosure Statement Is Inadequate, Wilmington Says
DELPHI CORP: Revised Plan Disregards ERISA Plaintiffs' Concerns
DELPHI CORP: Inks Purchase Deal with Steering Solutions
EL PASO: Allows Holders of 25% Stakes to Call Special Meetings
GENERAL MOTORS: Canadian Arm to Idle Oshawa Truck Plant in Jan.
GENERAL MOTORS: November 2007 Sales in Canada Down 10.2%
GOL LINHAS: Pares Profit Forecast Due to Airport Delays
MTI GLOBAL: Inks Forbearance Deal with its Principal Lender
MYERS INDUSTRIES: GS Capital Moves Sale Closing Date to April 30
UAL CORP: Board Approves US$250-Mln Distribution to Shareholders
UAL CORP: Unions Furious Over Shareholder Payouts
UNITED AIRLINES: Planned Pay Out Does Not Affect Fitch's Rating
* BRAZIL: Inks Foundation Act; Launches Bank of the South
C A Y M A N I S L A N D S
ANN FUNDING: Sets Final Shareholders Meeting for Dec. 14
ASBT CAYMAN: Holding Final Shareholders Meeting on Dec. 14
ASBT CAYMAN SUB: Final Shareholders Meeting Is on Dec. 14
AVENUE SERIES: Sets Final Shareholders Meeting for Dec. 14
EUROPEAN FINANCIAL: Holds Final Shareholders Meeting on Dec. 14
EUROPEAN FIN'L INVESTMENTS: Shareholders Meeting Is on Dec. 14
FLAGSHIP CLO: Will Hold Final Shareholders Meeting on Dec. 14
GREAT OAK: Will Hold Final Shareholders Meeting on Dec. 14
HIBIYA SEVEN INVESTMENT: Final Shareholders Meeting Is Dec. 14
HIBIYA SEVEN: Will Hold Final Shareholders Meeting on Dec. 14
TRADE LINK: Sets Final Shareholders Meeting for Dec. 14
C H I L E
EASTMAN KODAK: Signs Marketing Deal with PGA TOUR
ELECTRONIC DATA: Bags Bristol-Myers' US$715-Mln IT Services Deal
C O L O M B I A
* COLOMBIA: State Firm Issues 56.4MM New Shares at COP7,076 Each
E C U A D O R
* ECUADOR: Inks Foundation Act; Launches Bank of the South
G U A T E M A L A
IMAX CORP: Inks Deal with AMC to Install 100 IMAX(R) Systems
TECO ENERGY: Completes US$405-Million Sale of TECO Transport
H A I T I
DYNCORP INT'L: Bags US$49-Mln Construction Project from US Army
H O N D U R A S
* HONDURAS: Obtains US$350,000 Financing for Biofuel Programs
J A M A I C A
GOODYEAR TIRE: Forms New Strategic Business Unit
M E X I C O
ACCELLENT INC: Moody's Junks Corporate Family Rating
ADVANCED MARKETING: Third Amended Plan Takes Effect Dec. 4
AMSCAN HOLDINGS: Moody's Junks Rating on US$175-Mln Secured Loan
AVNET INC: Unit Inks European Franchise Deal with Maxim
EL POLLO LOCO: Court Decision Prompts S&P's Negative CreditWatch
EPICORE SOFTWARE: Moody's Ups Ba1 Rating on US$100-Mln Sr. Loan
GRUPO GIGANTE: Selling 206 Stores to Organizacion Soriana
GRUPO GIGANTE: Supplements Earlier US$260 Million Tender Offer
ICONIX BRAND: S&P Assigns BB Rating on US$60 Million Term Loan
KEY ENERGY: Acquires Kings Oil Assets for US$45 Million in Cash
WENDY'S INTERNATIONAL: Hiring for New Chief Marketing Officer
N I C A R A G U A
* NICARAGUA: Gets US$32.7MM Loan for Electricity System Project
* NICARAGUA: President Ortega Wants Oil Import Nationalized
P A R A G U A Y
* PARAGUAY: Inks Foundation Act; Launches Bank of the South
P U E R T O R I C O
BIOVAIL CORP: Lloyd Segal Joins Board of Directors
COMPUSA: Acquired by Gordon Bros.; Winds Down Retail Operations
GENESCO INC: Faces Class Action Suit in Tennessee Dist. Court
MUSICLAND HOLDING: Extends Plan Effective Date Until Jan. 31
OWENS-ILLINOIS INC: Debt Reduction Cues Fitch to Upgrade Ratings
SUNCOM WIRELESS: Shareholders OKs T-Mobile & Tango Merger Plan
UNIVISION COMM: Names Tonia O'Connor as Exec. VP for Marketing
S A I N T V I N C E N T
ST. VINCENT: Moody's Assigns Preliminary B1 Sovereign Ratings
V E N E Z U E L A
NORTHWEST AIR: Won't Complete Midwest Acquisition by January 31
PETROLEOS DE VENEZUELA: Forming Joint Venture for Guara & Diez
* VENEZUELA: Launches Banco del Sur; Inks Foundation Act
* VENEZUELA: Belarus Neft To Operate Three More Oilfields
- - - - -
=================
A R G E N T I N A
=================
CHRYSLER LLC: Top Spokesman Quits Spurring Corporate Realignment
----------------------------------------------------------------
Jason H. Vines, Chrysler LLC's Vice President-Communications has
elected to resign and, therefore, the company is disclosing a
realignment of its Corporate Communications Department.
"Now that Chrysler is an independent company again, we are
taking every opportunity to realign functions in a more holistic
manner that allows us to more effectively drive company
strategy," Bob Nardelli, Chairman and CEO, said. "As part of
this realignment, the corporate communications function will now
report to Nancy Rae, Senior Vice President-Human Resources."
Several executives in the corporate communications department
will report directly to Ms. Rae. David Barnas, who has been in
the corporate communications department for six years, will be
responsible for internal and corporate communications, which
includes dealing with the news media.
Mr. Vines' resignation is effective immediately, although he has
agreed to remain at Chrysler through the end of December to
assist in the transition. "Jason has served Chrysler well, and
we are very grateful for his many contributions over the years,"
Mr. Nardelli said.
Mr. Vines began his career at Chrysler Corporation in 1983,
serving first as an economics researcher in the Labor Relations
Department and later through various assignments in Employee
Communications and Public Relations. He left Chrysler in 1998
and became Vice President-Communications for Nissan North
America. In February 2000, he was appointed Vice President-
Communications for Ford Motor Company. He returned to Chrysler
in 2003 as Vice President-Communications.
"This was a tough decision, considering the many talented,
longtime friends I have throughout the company," Mr. Vines said.
"I wish them all the best and will continue to root for them."
Mike Aberlich, who has served the company as Director, Corporate
and Internal Communications, also announced last week that he
has decided to retire at the end of this year. "We thank Mike
for his dedication and contributions to the company," Mr.
Nardelli added.
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
Dec. 11, 2007, Standard & Poor's Ratings Services revised its
recovery rating on Chrysler's US$2 billion senior secured
second-lien term loan due 2014. The issue-level rating on this
debt remains unchanged at 'B', and the recovery rating was
revised to '3', indicating an expectation for meaningful (50% to
70%) recovery in the event of a payment default, from '4'.
CINDIA SA: Seeks for Reorganization Okay in Buenos Aires Court
--------------------------------------------------------------
Cindia S.A. has requested for reorganization approval after
failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Cindia to negotiate a settlement with its creditors in
order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Cindia S.A.
Ciudad de la Paz 306 P.B. 4
Buenos Aires, Argentina
CUVERA AGROPECUARIA: Seeks for Reorganization Okay in Court
-----------------------------------------------------------
Cuvera Agropecuaria S.A. has requested for reorganization
approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Cuvera Agropecuaria to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Cuvera Agropecuaria S.A.
Tandil 2746
Buenos Aires, Argentina
ESTANCIAS NORAFE: Files for Reorganization in Buenos Aires Court
----------------------------------------------------------------
Estancias Norafe del Salado S.A. has requested for
reorganization approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Estancias Norafe to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Estancias Norafe del Salado S.A.
Ciudad de la Paz 306 P.B. 4
Buenos Aires, Argentina
GALVANI SA: Trustee Verifies Proofs of Claim Until Feb. 27, 2008
----------------------------------------------------------------
Marcela Adriana Mazzoni, the court-appointed trustee for Galvani
S.A.'s reorganization proceeding, verifies creditors' proofs of
claim until Feb. 27, 2008.
Ms. Mazzoni will present the validated claims in court as
individual reports on April 15, 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 Galvani 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 Galvani's accounting
and banking records will be submitted in court on May 28, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly on Nov. 10, 2008.
The trustee can be reached at:
Marcela Adriana Mazzoni
Viamonte 1337
Buenos Aires, Argentina
GUARIBAL SA: Seeks for Reorganization Okay in Buenos Aires Court
----------------------------------------------------------------
Guaribal S.A. has requested for reorganization approval after
failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Guaribal to negotiate a settlement with its creditors in
order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Guaribal S.A.
Ciudad de la Paz 306 P.B. 4
Buenos Aires, Argentina
I RUBINS: Proofs of Claim Verification Deadline Is Feb. 18, 2008
----------------------------------------------------------------
Eduardo Ruben Pronsky, the court-appointed trustee for I. Rubins
S.A.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Feb. 18, 2008.
Mr. Pronsky will present the validated claims in court as
individual reports on April 1, 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 I. Rubins 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 I. Rubins' accounting
and banking records will be submitted in court on May 15, 2008.
Mr. Pronsky is also in charge of administering I. Rubins' assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
I. Rubins S.A.
Jeronimo Salguero 1697
Buenos Aires, Argentina
The trustee can be reached at:
Eduardo Ruben Pronsky
Parana 480
Buenos Aires, Argentina
MAYA-QUINTANA: Trustee Verifies Proofs of Claims Until March 28
---------------------------------------------------------------
Lidia Roxana Martin, the court-appointed trustee for Maya-
Quintana S.A.'s reorganization proceeding, verifies creditors'
proofs of claim until March 28, 2008.
Ms. Martin will present the validated claims in court as
individual reports on May 7, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Maya-Quintana 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 Galvani's accounting
and banking records will be submitted in court on June 19, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly on Dec. 5, 2008.
The debtor can be reached at:
Maya-Quintana S.A.
Coronel Pagola 4170/4172
Buenos Aires, Argentina
The trustee can be reached at:
Lidia Roxana Martin
Avenida Cordoba 1352
Buenos Aires, Argentina
TAPIZADOS RAMOS: Proofs of Claim Verification Ends on March 13
--------------------------------------------------------------
Nestor Raul Rozenberg, the court-appointed trustee for Tapizados
Ramos S.A.'s bankruptcy proceeding, verifies creditors' proofs
of claim until March 13, 2008.
Mr. Rozenberg will present the validated claims in court as
individual reports on April 30, 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 Tapizados Ramos 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 Tapizados Ramos'
accounting and banking records will be submitted in court on
June 12, 2008.
Mr. Rozenberg is also in charge of administering Tapizados
Ramos' assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Nestor Raul Rozenberg
Mansilla 3696
Buenos Aires, Argentina
VELIDI SA: Seeks for Reorganization Okay in Buenos Aires Court
--------------------------------------------------------------
Velidi S.A. has requested for reorganization approval after
failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Velidi to negotiate a settlement with its creditors in
order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Velidi S.A.
Ciudad de la Paz 306 P.B. 4
Buenos Aires, Argentina
* ARGENTINA: Inks Foundation Act; Launches Bank of the South
------------------------------------------------------------
The national leaders of Argentina, Bolivia, Brazil, Ecuador,
Paraguay and Venezuela have launched Sunday the new Banco del
Sur development bank, according to published reports.
The bank's launching was initially set for June 26 but was moved
due to capitalization issues.
According to the Financila Times, the bank has about US$7
billion in capital, which came from the founding members.
Colombia and Chile has not entered the venture.
The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the International
Monetary Fund and the World Bank, on much lower rates and better
financing conditions.
Critics called the bank a waste of effort given the established
presence of the institutions, like the IMF and the Word Bank,
which it wants to compete with.
The finer details of the services that the bank will be
providing still need to be ironed out by the finance ministers
of the countries involved. The ministers have two months to
translate into operations what have been agreed on paper, the FT
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 A R B A D O S
===============
ANDREW CORP: Shareholders Okay CommScope Merger Agreement
---------------------------------------------------------
Andrew Corporation's shareholders, at a special meeting, has
approved the company's merger agreement with CommScope Inc.
Andrew and CommScope now have received all necessary approvals
and clearances to complete the transaction, which was announced
June 27.
Andrew currently expects the merger to close on Dec. 27, subject
to customary closing conditions.
About CommScope
Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV)
-- http://www.commscope.com/-- is into infrastructure solutions
for communication networks. CommScope's structured cabling
systems for business enterprise applications includes
SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands.
It is also the manufacturer of coaxial cable for Hybrid Fiber
Coaxial applications.
About Andrew Corp.
Headquartered in Westchester, Illinois, Andrew Corporation
(NASDAQ: ANDW) -- http://www.andrew.com/-- designs,
manufactures and delivers and essential equipment and solutions
for the global communications infrastructure market. The
company serves operators and original equipment manufacturers
from facilities in 35 countries including China, India, Italy,
Czech Republic, Argentina, Bahamas, Belize, Barbados, Bermuda
and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America
Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its
ratings on Andrew Corp. and removed them from CreditWatch, where
they were placed on June 27, 2007, with negative implications.
S&P also affirmed the 'BB-' corporate credit and 'B'
subordinated debt ratings for the company.
===========
B E L I Z E
===========
* BELIZE: S&P Affirms B Sovereign Ratings with a Stable Outlook
---------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'B' long-
and 'B' short-term sovereign credit ratings on Belize. The
outlook is stable.
According to S&P's credit analyst Olga Kalinina, the ratings on
Belize balance the government's large debt against its improved
amortization and cost profiles. "The debt exchange launched by
the government on Dec. 18, 2006, and concluded on Feb. 20, 2007,
affected 50% of Belize's total public debt," said Ms. Kalinina.
"The participation rate in the restructuring was high, with over
95% of eligible claims exchanged by year-end 2007," she added.
Ms. Kalinina explained that while the restructuring did not
reduce the stock of the government's debt, which stands at 85%
of GDP in 2007, it lengthened its maturity significantly and
decreased debt interest payments. Interest costs dropped to
5.5% of GDP in 2007 from 7% in 2006, and should decrease further
to 4.3% of GDP in 2008. The total savings from the
restructuring are estimated at US$481.5 million between 2007 and
2015.
"The stable outlook reflects S&P's expectation that the
government has the ability to improve its financial position and
reduce debt improved following the debt restructuring," Ms.
Kalinina said. "Specifically, the reduced fiscal and external
liquidity pressures following the debt exchange provided the
government with a favorable time frame to tighten its fiscal
discipline, improve debt management, and enhance the
transparency of its finances," she added.
If the government benefits from this important momentum and
addresses its fiscal weaknesses, the high debt level should
decline. "This positive scenario, however, must be matched by
similar strides in boosting the quality and transparency of
policymaking to ensure the continuity of fiscal discipline and
thereby improve creditworthiness," noted Ms. Kalinina. "On the
other hand, if the government does not capitalize on the
benefits of the current situation and does not improve its
fiscal policies and management, the loss of momentum, especially
amid a more challenging external situation, could negatively
affect the ratings," she concluded.
=============
B E R M U D A
=============
LIGHT HOUSE: Supreme Court Hearing Wind-Up Petition on Dec. 14
--------------------------------------------------------------
The Supreme Court of Bermuda will hear Lighthouse Insurance
Company Limited's wind-up petition on Dec. 14, 2007, at 9:30
a.m.
The Bermuda Monetary Authority filed the wind-up petition on
behalf of Lighthouse Insurance to the Supreme Court on
Nov. 13, 2007.
Any creditor or contributory of Lighthouse Insurance who wants
to support or oppose the making of an order on the wind-up
petition may appear during the hearing by himself or his
counsel. Interested parties were given until 4:00 p.m. at
Dec. 13, 2007, to send to Attride-Stirling & Woloniecki -- the
attorneys to the petitioner -- a notice in writing of his
intention so to do, including his name and address of the
person, or, if a firm, the name and address of the firm, and
must be signed by the person or firm, or his or their attorney.
Attride-Stirling & Woloniecki will supply a copy of the petition
on payment of the regulated charge.
The attorneys for the petitioner can be reached at:
Attride-Stirling & Woloniecki
Crawford House
50 Cedar Avenue, Hamilton HM11
Bermuda
NCB INSURANCE: Supreme Court To Hear Wind-Up Petition on Dec. 14
----------------------------------------------------------------
The Supreme Court of Bermuda will hear NCB Insurance Limited's
wind-up petition on Dec. 14, 2007, at 9:30 a.m.
The Bermuda Monetary Authority filed the wind-up petition on
behalf of NCB Insurance to the Supreme Court on Nov. 13, 2007.
Any creditor or contributory of NCB Insurance who wants to
support or oppose the making of an order on the wind-up petition
may appear during the hearing by himself or his counsel.
Interested parties were given until 4:00 p.m. at Dec. 13, 2007,
to send to Attride-Stirling & Woloniecki -- the attorneys to the
petitioner -- a notice in writing of his intention so to do,
including his name and address of the person, or, if a firm, the
name and address of the firm, and must be signed by the person
or firm, or his or their attorney.
Attride-Stirling & Woloniecki will supply a copy of the petition
on payment of the regulated charge.
The attorneys for the petitioner can be reached at:
Attride-Stirling & Woloniecki
Crawford House
50 Cedar Avenue, Hamilton HM11
Bermuda
SENSU LTD: Supreme Court Will Hear Wind-Up Petition on Dec. 14
--------------------------------------------------------------
The Supreme Court of Bermuda will hear Sensu Ltd.'s wind-up
petition on Dec. 14, 2007, at 9:30 a.m.
The Bermuda Monetary Authority filed the wind-up petition on
behalf of Sensu to the Supreme Court on Nov. 13, 2007.
Any creditor or contributory of Sensu who wants to support or
oppose the making of an order on the wind-up petition may appear
during the hearing by himself or his counsel. Interested
parties were given until 4:00 p.m. at Dec. 13, 2007, to send to
Attride-Stirling & Woloniecki -- the attorneys to the petitioner
-- a notice in writing of his intention so to do, including his
name and address of the person, or, if a firm, the name and
address of the firm, and must be signed by the person or firm,
or his or their attorney.
Attride-Stirling & Woloniecki will supply a copy of the petition
on payment of the regulated charge.
The attorneys for the petitioner can be reached at:
Attride-Stirling & Woloniecki
Crawford House
50 Cedar Avenue, Hamilton HM11
Bermuda
=============
B O L I V I A
=============
* BOLIVIA: Inks Foundation Act; Launches Bank of the South
----------------------------------------------------------
The national leaders of Argentina, Bolivia, Brazil, Ecuador,
Paraguay and Venezuela have launched Sunday the new Banco del
Sur development bank, the Financial Times reports.
The bank's launching was initially set for June 26 but was moved
due to capitalization issues.
According to the FT, the bank has about US$7 billion in capital,
which came from the founding members. Colombia and Chile has
not entered the venture.
The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the International
Monetary Fund and the World Bank, on much lower rates and better
financing conditions.
Critics called the bank a waste of effort given the established
presence of the institutions, like the IMF and the Word Bank,
which it wants to compete with.
The finer details of the services that the bank will be
providing still need to be ironed out by the finance ministers
of the countries involved. The ministers have two months to
translate into operations what have been agreed on paper, the FT
says.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov 6, 2007, Standard & Poor's Ratings Services revised its
outlook on the Republic of Bolivia to stable from negative. S&P
also said that it affirmed its 'B-' long-term and 'C' short-term
credit ratings on the sovereign.
===========
B R A Z I L
===========
ADVANCED MICRO: Brings In Mike Uhler as Vice President
------------------------------------------------------
Advanced Micro Devices Inc. reported that Mike Uhler, former CTO
of MIPS, has joined the company as its first vice president of
Accelerated Computing. Mr. Uhler has extensive experience
developing advanced chip architectures and software for designs
that combine multiple intellectual property blocks, as well as a
deep understanding of customer requirements across a range of
applications.
"We are excited to have Mike join AMD just as chip
architectures, AMD software development and third-party
development of related technologies are converging around our
Accelerated Computing vision," said Phil Hester, senior vice
president and chief technology officer for AMD. "Customers are
asking for design innovations that apply hardware and software
more directly toward a set of workloads, rather than a one-size-
fits-all approach. Mike furthers AMD's design leadership by
applying that philosophy to our Accelerated Computing vision and
I welcome him aboard."
AMD's Accelerated Computing research and development (R&D)
programs focus on accelerating specific computing tasks and
increasing overall platform performance-per-watt through the use
of discrete co-processors and integration of on-chip accelerator
cores.
"There is an important shift occurring in chip hardware and
software to address the simultaneous changes in both the types
of information being processed and the amount of data available
for processing," said Mr. Uhler. "As a technologist, tackling
these fundamental challenges inspires me and I look forward to
working with AMD, its technology partners and its customers to
address them."
AMD's vision for Accelerated Computing, unveiled at the close of
AMD's acquisition of ATI in 2006, calls for the increasing use
of accelerators to offload certain workloads from the CPU and
process them at higher speeds and efficiency levels. This
balancing of workload computation across multiple chips and
cores, allowing each to do what it does best, stands to
dramatically improve overall system performance and energy-
efficiency, while also enabling systems to be highly optimized
for a specific set of tasks based on the unique priorities of
the particular end-user segment.
As vice president of Accelerated Computing at AMD, Uhler will
apply a strong leadership background in a technology career
spanning nearly 30 years. Prior to his role as CTO of MIPS, he
served in various architecture and engineering roles at MIPS, as
Silicon Graphics Inc.'s, director of engineering, and as a
senior consulting engineer at Digital Equipment Corp. Mr. Uhler
has been issued 34 patents in the areas of computer architecture
and design, and holds a M.S. in computer science and a B.S. in
electrical engineering from the University of Arizona.
About Advanced Micro Devices Inc.
Headquartered in Sunnyvale, California, Advanced Micro Devices
Inc. -- http://www.amd.com/-- (NYSE: AMD) designs and
manufactures microprocessors and other semiconductor products.
The company has a facility in Singapore. It has sales offices in
Belgium, France, Germany, the United Kingdom, Mexico and Brazil.
* * *
As reported in the Troubled Company Reporter on Aug. 14, 2007,
Standard & Poor's Ratings Services affirmed its B/Negative/--
corporate credit rating on Sunnyvale, California-based Advanced
Micro Devices Inc. At the same time, S&P assigned its 'B'
rating to the company's US$1.5 billion 5.75% senior convertible
notes due 2012, and raised the rating on the company's existing
senior unsecured debt to 'B' from 'B-', because the company no
longer has secured debt in its capital structure.
As reported in the Troubled Company Reporter on Aug. 13, 2007,
Fitch Ratings has assigned a 'CCC+/RR6' rating to Advanced Micro
Devices Inc.'s private placement of US$1.5 billion 5.75%
convertible senior notes due 2012.
Fitch also affirmed the company's Issuer Default Rating at 'B';
and Senior unsecured debt at 'CCC+/RR6'.
In July 2007, Standard & Poor's Ratings Services affirmed its
'B/Negative/--' corporate credit rating on Sunnyvale,
California-based Advanced Micro Devices Inc. At the same time,
Standard & Poor's lowered the rating on the company's 7.75%
senior notes due 2012 to 'B-' from 'BB-', which is now rated the
same as the company's other senior unsecured notes, reflecting
release of the collateral securing the issue.
BANCO NACIONAL: Extending Credit Line for Dominican Republic
------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social will extend
a credit line for the Dominican Republic for the construction of
infrastructure projects in areas affected by tropical storm
Noel, Dominican Today reports.
Ambassador Ronaldo Edgar Dunlop told Dominican Today that he
received information that Banco Nacional concludes the
proceedings to begin disbursing the US$110-million loan for the
construction of an aqueduct in Samana.
One of Brazilian President Inacio Lula Da Silva's main advisers
said a meeting would be held with the head of Banco Nacional to
negotiate the extension of the line of credit for the Dominican
Republic, Dominican Today relates, citing Ambassador Dunlop.
Ambassador Dunlop commented to Dominican Today, "The first
interested in extending that line of credit are the Brazilian
companies themselves who are operating already in this country,
because the truth is that Dominican Republic's financial
credibility abroad is very good."
Banco Nacional's credits are to Brazilian firms. However,
Dominican President Leonel Fernandez spoke with President Lula
about his interest to access Banco Nacional loans, Dominican
Today says, citing Ambassador Dunlop.
Brazilian firms Andrade Gutierrez and Odebrecht are in the
Dominican Republic constructing projects like the Northwest Line
Aqueduct and the dams at Pinalito and Las Placetas, Ambassador
Dunlop told Dominican Today.
"President Fernandez has always been interested in an
increasingly stronger relation with Brazil," Ambassador Dunlop
commented to Manuel Jimenez at En 1 Hora.
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.
BANCO NACIONAL: Inks Cooperation Pact with Ministry of Health
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's
President, Luciano Coutinho, has signed an agreement for
technical cooperation with the Ministry of Health for the
implementation of measures, programs and studies aimed at the
development of the Industrial Health Complex throughout the
Brazilian territory. The document was signed Dec. 5 during the
launching of PAC da Saude in Brasilia by President Luiz Inacio
Lula da Silva, creating a new policy for the sector.
In September this year, BNDES renewed the Program for Support to
the Development of the Pharmaceutical Productive Chain [Programa
de Apoio ao Desenvolvimento da Cadeia Produtiva Farmaceutica] -
Profarma, renaming it as Program for Support to the Development
of the Industrial Health Complex, with a BRL$3 billion budget
until 2012.
The major differential of the new program in relation to the
previous one is that the current one will promote integration
between Industrial Policies and the National Health Policy. For
this purpose, Profarma foresees joint actions between BNDES and
the Ministry of Health in their subprograms Profarma --
Innovation and Profarma -- Public Producers. The cooperation
agreement between those two institutions will allow
implementation of these actions.
Profarma foresees, in its subprogram Profarma -- Innovation,
support to research and development projects that represent a
considerable technological challenge and are priorities for the
Ministry of Health. BNDES will provide financial support, while
the Ministry of Health will define the list of products
considered a priority for the National Policy in this sector.
The ministry is also analyzing a governmental acquisition
mechanism, which allows the government to acquire products
developed with BNDES support.
The Industrial Health Complex stands out as a target to be
achieved by public sector policies, since it shows market flaws
and for generating products, which are essential for the well-
being of the population, as well as for relying on high
technology and innovative capacity.
BNDES has actively collaborated in the discussion process,
elaboration and the execution of the industrial health complex
structure and the granting of financings through Profarma is
considered one of the pillars for its sustainability.
The cooperation agreement between BNDES and the Ministry of
Health also encompasses the subprogram Profarma Public
Producers, which is structured in two phases. The first one
consists of contracting a study to elaborate a strategic plan
for insertion of public producers into the National Health
System; promoting increased efficiency of public producers
individually and jointly; as well as of the public system for
purchasing and distributing products related to health. For
this purpose, it is foreseen the creation of a mixed work force
between BNDES and the Ministry of Health for definition of the
reference term, contracting and monitoring of the services
provided by the consultancy firm contracted.
The second phase consists of the implementation of the results
obtained in the first phase, including:
-- investments in the productive capacity and adequacy to
regulatory standards;
-- modernization or improvements to the organizational,
administrative, management, commercialization,
distribution and logistics structure of public producers;
-- support to innovative projects and to the innovative
public health infrastructure in the country.
In this phase it is foreseen the participation of the Ministry
of Health in the analysis of projects, and it should pre-approve
all projects submitted to 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 CORP: Creates Office of the Chairman
---------------------------------------------
Chemtura Corporation has formed the Office of the Chairman,
designed to increase organizational focus, speed decision-making
and improve execution. The Office of the Chairman will be
comprised of Chairman and Chief Executive Officer Robert L. Wood
and three direct reports:
-- Stephen Forsyth, who remains in his current position as
executive vice president , chief financial officer and
treasurer, responsible for all financial functions,
Strategy and New Business Development, and Information
Technology;
-- Robert Wedinger, Ph.D., who has been named chief business
officer, responsible for Chemtura's commercial
organization. Chemtura's four businesses - Polymer
Additives, Performance Specialties, Crop and Consumer
Products will report to Wedinger. Mr. Wedinger, who was
serving as group president of Performance Specialties,
will retain his Performance Specialties role in addition
to his new chief business officer responsibilities; and
-- David Dickey, who has been named chief functional and
services officer, responsible for all non-Finance
functions, including logistics and customer care,
strategic manufacturing, human resources, legal and
procurement. The general counsel retains a direct
reporting relationship to the chairman for regulatory and
compliance issues.
"This is a natural progression of the restructuring we announced
in April," said Mr. Wood. "By providing more direct leadership
to the commercial organization and functions, we believe we can
speed decision making and better position ourselves to deliver
results."
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%)
COSAN SA: Closes Down Usina Santa Luiza & Agricola Aquidaban
------------------------------------------------------------
Cosan SA said in a statement that it, along with Sao Martinho
and Santa Cruz, has shut down joint subsidiaries Usina Santa
Luiza and Agricola Aquidaban.
Cosan commented to Business News Americas, "The purpose of the
decision is to maximize operational and managerial synergies for
the controlling groups."
BNamericas notes Sao Martinho, Cosan and Santa Cruz hold 41.6%,
33.3% and 25.0% stakes in the mills respectively.
Cosan told BNamericas that Santa Luiza has crushing capacity of
about 1.8 million tons of sugarcane per harvest. Cane that
Usina Santa Luiza used to process "will be rerouted to the
industrial facilities of the controlling groups proportionate to
their capital interest," as of the 2008-2009 harvest.
Cosan's Bonfim unit will then get about 600,000 tons of cane
that Santa Luiza used to handle. Sao Martinho will receive
750,000 tons of cane at one of its mills, BNamericas relates.
"Aquidaban's land leasing contracts and deals with cane
suppliers will be divided proportionally among the controlling
groups," Cosan, Sao Martinho, and Santa Cruz told BNamericas.
Headquartered in Sao Paulo, Brazil, Cosan S.A. Industria e
Comercio, is the third largest sugar producer in the world. In
2004/2005 it crushed more than 26 million tons of sugar cane in
fourteen mills located in the Central South region of Brazil,
with sugar sales of 2.3 million tons and ethanol sales of 825
million liters.
* * *
As of February 2007, Cosan carries Moody's Ba2 global local
currency and foreign currency ratings and Standard and Poor's BB
corporate credit rating.
DELPHI CORP: Noteholders Balk at Revised Disclosure Statement
-------------------------------------------------------------
Eight holders of Senior Notes in Delphi Corp. asks the United
States Bankruptcy Court for the Southern District of New York to
disapprove the revised Disclosure Statement explaining the
Debtors' Joint Chapter 11 Plan of Reorganization filed on
Dec. 3, 2007.
As reported in the Troubled Company Reporter on Dec. 6, 2007,
the Debtors said it has reached agreements in principle with its
Official Committee of Unsecured Creditors, its Official
Committee of Equity Security Holders, General Motors Corp. and
its Plan Investors on amendments to its Joint Plan of
Reorganization, Global Settlement Agreement and Master
Restructuring Agreement between Delphi and GM, and the
Investment Agreement with Delphi's Plan Investors led by an
affiliate of Appaloosa Management L.P. Delphi filed potential
amendments to all four documents on Monday evening in the United
States Bankruptcy Court for the Southern District of New York as
revisions to the company's Disclosure Statement and appendices
to the company's Disclosure Statement.
Holders of Delphi Corp. Senior Notes:
-- Caspian Capital Advisors, LLC;
-- Castlerigg Master Investments Ltd.;
-- CR Intrinsic Investors, LLC;
-- Davidson Kempner Capital Management LLC;
-- Elliott Associates, L.P.;
-- Everest Capital Limited;
-- Nomura Corporate Research & Asset Management, Inc.;
-- Northeast Investors Trust;
-- Sailfish Capital Partners, LLC; and
-- Whitebox Advisors, LLC,
maintain that the Disclosure Statement should not be approved
because the Joint Plan of Reorganization:
* classifies dissimilar claims in the same class in violation
of Section 1122(a) of the Bankruptcy Code;
* provides different treatment to claims classified together
within a single class in violation of Section 1123(a)(4);
* does not enforce the subordination agreement between the
Senior Notes and TOPrS Claims by lumping the claims in one
class in violation of Section 510(a); and
* is premised on a substantive consolidation of the Debtors,
solely for voting and distribution purposes, that the
Debtors are unable to justify.
"None of these issues have been addressed by the most recent
amendment to the Disclosure Statement filed by the Debtors on
Dec. 3, 2007," Allan S. Brilliant, Esq., at Goodwin Procter LLP,
in New York, contends.
Mr. Brilliant argues that although the Debtors have attempted to
provide a more fulsome disclosure regarding several aspects of
the Plan, the information in the current proposed Disclosure
Statement remains wholly inadequate to enable creditors to make
an informed judgment about the Plan as required by Section 1125.
The Senior Noteholders maintain that the Disclosure Statement
lacks adequate disclosure and information:
-- on the implications of the value of the New Common Stock
and the range of recoveries afforded to General Unsecured
Creditors under the Plan;
-- contained in the valuation analysis;
-- on the economic interests and involvement of the Plan
Investors and General Motors Corp. in "negotiating" the
Plan;
-- on the Plan's proposed treatment of intercreditor rights;
-- on the potential impact to creditors of the Debtors'
present lack of committed exit financing;
-- regarding substantive consolidation;
-- on the GM Claim;
-- on releases under the Plan; and
-- on the Multi-District Litigation Settlements between the
Debtors and plaintiffs in the consolidated Securities
Litigation.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period expires on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan. (Delphi Bankruptcy News, Issue No. 101;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
DELPHI CORP: Disclosure Statement Is Inadequate, Wilmington Says
----------------------------------------------------------------
Wilmington Trust Company, the indenture trustee for US$2 billion
in senior notes and debentures issued by Delphi Corp., asks the
U.S. Bankruptcy Court for the Southern District of New York to
disapprove the revised Disclosure Statement explaining the
Debtors' Joint Chapter 11 Plan of Reorganization filed on
Dec. 3, 2007, unless it is supplemented with adequate
information.
Wilmington Trust further asks the Court to direct the Debtors to
reclassify the Senior Debt and the TOPrS Claims in, and to vote
in, different classes.
Wilmington Trust contends that the Disclosure Statement, as
amended on Dec. 3, 2007, continues to lack "adequate
information" within the meaning of Section 1125(a) of the
Bankruptcy Code regarding issues that are critical to creditors'
ability to make an intelligent and informed evaluation of the
Joint Plan of Reorganization.
The Debtors' statement that "the Plan continues to provide for
full recoveries for unsecured creditors at Plan value" is
misleading, Edward M. Fox, Esq., at Kirkpatrick & Lockhart
Preston Gates Ellis LLP, in New York, asserts. The concept of
"Plan value" is never clearly explained and could lead creditors
to believe that they are being paid in full when, based on
Rothschild's midpoint valuation, they will receive only an 89.2%
recovery, he argues.
In order to avoid any confusion on that issue and other issues,
Wilmington Trust proposes, inter alia, that the Debtors add
after the phrase "for unsecured creditors at Plan Value" this
language:
", a negotiated enterprise value of US$13.3 billion ("Plan
Value") for the Debtors, which is US$600 million higher than
the US$12.7 billion midpoint valuation (the Midpoint
Valuation") of the Debtors' enterprise value as determined by
the Debtors' financial advisors, and which may not be
equivalent to the Debtors' actual enterprise value. At the
Midpoint Valuation, unsecured creditors will receive a
recovery equal to 89.2% of their allowed claims. The Plan
also provides . . . ."
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period expires on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan. (Delphi Bankruptcy News, Issue No. 101;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
DELPHI CORP: Revised Plan Disregards ERISA Plaintiffs' Concerns
---------------------------------------------------------------
The lead plaintiffs in the consolidated securities class action
entitled In re Delphi Corp. Securities Litigation, Master Case
No. 05-md-1725 (GER) (E.D.Mich.) pending before the U.S.
District Court for the Eastern District of Michigan, inform the
Bankruptcy Court that the Dec. 3, 2007 versions of the Debtors'
Disclosure Statement and Joint Plan of Reorganization still do
not address all of their concerns.
The lead plaintiffs, as well as the Employee Retirement Income
Security Act plaintiffs in the Securities Litigation, had agreed
to reduce the allowed amount of the Section 510(b) Note Claims
and the Section 510(b) Equity Claims under the Plan from US$204
million to US$179 million in exchange for the Debtors'
cooperation in the monetization of the Allowed Amount. The lead
plaintiffs are the holders of Section 510(b) Note Claims while
the ERISA plaintiffs are the holders of the Section 510(b)
Equity Claims.
The Lead Plaintiffs agreed that the claim reduction will be
deemed a non-material modification to their Multi-District
Litigation Settlement with the Debtors. The Debtors disclosed
the Claim Reduction in their Dec. 3 Disclosure Statement. On
Dec. 4, 2007, the District Court tentatively approved the
modification of the parties' MDL Settlement subject to certain
notice requirements intended to allow class members the
opportunity to review and take a position on the proposed
modification, Michael S. Etkin, Esq., at Lowenstein Sandler PC,
in New York, informs the Bankruptcy Court.
Nonetheless, the lead plaintiffs and the Debtors have yet to
reach agreement on certain of the Lead Plaintiffs' proposed
revisions to the Disclosure Statement and Plan involving third-
party releases and conditions to the Plan's effectiveness,
Mr. Etkin relates. The lead plaintiffs, he says, have provided
the Debtors with suggested language that will resolve their
dispute and discussions between the parties are continuing.
The lead plaintiffs consist of Teachers' Retirement System of
Oklahoma, Public Employees' Retirement System Of Mississippi,
Raiffeisen Kapitalanlage-Gesellschaft m.b.H., and Stichting
Pensioenfonds ABP.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period expires on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan. (Delphi Bankruptcy News, Issue No. 101;
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
DELPHI CORP: Inks Purchase Deal with Steering Solutions
-------------------------------------------------------
Delphi Corporation has entered into a master sale and purchase
agreement with Steering Solutions Corporation, a wholly owned
entity of Platinum Equity, LLC, for the sale of its global
steering and halfshaft businesses. In addition to the master
sale and purchase agreement, Delphi has simultaneously entered
into a transaction facilitation agreement pursuant to which GM
is making certain commitments to Delphi in connection with the
sale.
Pursuant to the requirements of the Bankruptcy Code, Delphi
filed a motion with the U.S. Bankruptcy Court for the Southern
District of New York seeking approval of the master purchase and
sale agreement and the GM transaction facilitation agreement and
requesting a bidding procedures hearing on Dec. 20, 2007.
Following entry of an order approving bidding procedures,
parties interested in purchasing Delphi's global steering and
halfshaft business would have an opportunity to submit a binding
bid. If Delphi receives any qualified bids for its steering and
halfshaft business, it would conduct an auction and sell the
steering and halfshaft business to the party submitting the
highest or otherwise best bid.
Following the completion of the bidding procedures process, a
final sale hearing is anticipated to occur in February 2008.
The final sale of Delphi's global steering and halfshaft
businesses and the transaction facilitation agreement are
subject to the approval of the U.S. Bankruptcy Court.
As outlined in the court filing, the master sale and purchase
agreement covers the sale of substantially all of Delphi's
global steering and halfshaft businesses, including
manufacturing operations, intellectual property, customer and
supplier contracts, and interests in joint ventures as well as
the transfer of the global employee team to the new company. It
is anticipated that the senior leadership of the global business
will also transfer to the buyer. All parties remain committed
to ensuring a smooth transition for all customers.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period expires on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan.
EL PASO: Allows Holders of 25% Stakes to Call Special Meetings
--------------------------------------------------------------
The board of directors of El Paso Corporation has voted to amend
the company's by-laws to modify the provisions regarding the
calling of special meetings. The amendment permits stockholders
who own at least 25% of El Paso's outstanding common stock to
call a special meeting of stockholders.
Previously, a special meeting of stockholders could be called
only by a majority of the board of directors, the chairman of
the board, the chief executive officer, or the president.
A copy of the amended by-laws and corporate governance
guidelines is available in El Paso's Web site.
Headquartered in Houston, Texas, El Paso Corporation (NYSE: EP)
-- http://www.elpaso.com/-- is an energy company that provides
natural gas and related energy products. The company owns North
America's interstate pipeline system, which has approximately
55,500 miles of pipe. It also owns approximately 470 billion
cubic feet of storage capacity and a liquefied natural gas
import facility with 806 million cubic feet of daily base load
send out capacity. El Paso's exploration and production
business is focused on the exploration for and the acquisition,
development and production of natural gas, oil and natural gas
liquids in the United States, Brazil and Egypt. It operates in
three business segments: Pipelines, Exploration and Production
and Marketing. It also has a Power segment, which holds its
remaining interests in international power plants in Brazil,
Asia and Central America.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2007,
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit ratings on El Paso Corp. and subsidiaries. S&P said the
outlook remains positive.
GENERAL MOTORS: Canadian Arm to Idle Oshawa Truck Plant in Jan.
---------------------------------------------------------------
General Motors of Canada Ltd. disclosed plans of temporarily
shuttering its truck assembly plant in Oshawa, Ontario, for two
weeks in January 2008, cutting roughly 8,800 truck output,
various sources report.
The move is a result of the slow sales of Chevrolet Silverados
and GMC Sierras in the United States.
As reported in the Troubled Company Reporter on Dec. 4, 2007,
after three consecutive monthly increases, General Motors Corp.
dealers in the United States delivered 263,654 vehicles in
November, down 11% compared with a year ago, reflecting
continuing reductions in daily rental sales and softening
industry demand.
About General Motors of Canada
Headquartered in Oshawa Ontario, General Motors of Canada Ltd.
manufactures vehicles, vehicle powertrains, and markets the full
range of General Motors vehicles and related services through
743 dealerships and retailers across Canada. Vehicles sold
through this network include Chevrolet, Buick, Pontiac, GMC,
Saturn, Hummer, Saab and Cadillac. GM of Canada employs more
than 19,000 people nationwide.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter-Latin America 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. In an environment of weakening prospects for US auto
sales GM has announced that it will take a non-cash charge of
US$39 billion for the third quarter of 2007 related to
establishing a valuation allowance against its deferred tax
assets in the US, Canada and Germany.
As reported on Oct. 23, 2007, Standard & Poor's Ratings Services
affirmed its 'B' corporate credit rating and other ratings on
General Motors Corp. and removed them from CreditWatch with
positive implications, where they were placed Sept. 26, 2007,
following agreement on the new labor contract. S&P said the
outlook is stable.
GENERAL MOTORS: November 2007 Sales in Canada Down 10.2%
--------------------------------------------------------
For November 2007, General Motors of Canada Ltd. dealers
delivered a total of 28,071 vehicles, down 10.2% from the same
month last year.
"November was a soft month overall for industry retail sales,"
Marc Comeau, GM of Canada's vice-president of sales, service,
and marketing, said. "At GM we continue to see strength from
our recently launched products like the Saturn Outlook, GMC
Acadia and Buick Enclave crossover utilities and the Cadillac
CTS. The new Chevrolet Malibu and Malibu Hybrid are creating a
lot of buzz with impressive product reviews and strong customer
acceptance.
"We have seen some early success from our year-end Wish & Win
promotion, showing customers that the best value on the
industry's best vehicles can be found at their local GM Canada
dealership."
Sales Highlights
Mid Utilities were up a combined 67.4% driven by the continued
strength of the all-new family of crossovers including the
Saturn Outlook, GMC Acadia and Buick Enclave.
GMs smaller, fuel-efficient cars continue to perform well with
the Chevrolet Aveo and Pontiac Wave up a combined 16.8% and the
Pontiac Vibe posting gains of 31.3%.
Chevrolet Silverado and Sierra Extended Cab pick-ups were up a
combined 4.9%.
Cadillac sales were up 2.9% overall, led by a 38.1% increase for
the award winning Cadillac CTS.
About General Motors of Canada
Headquartered in Oshawa Ontario, General Motors of Canada Ltd.
manufactures vehicles, vehicle powertrains, and markets the full
range of General Motors vehicles and related services through
743 dealerships and retailers across Canada. Vehicles sold
through this network include Chevrolet, Buick, Pontiac, GMC,
Saturn, Hummer, Saab and Cadillac. GM of Canada employs more
than 19,000 people nationwide.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter-Latin America 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. In an environment of weakening prospects for US auto
sales GM has announced that it will take a non-cash charge of
US$39 billion for the third quarter of 2007 related to
establishing a valuation allowance against its deferred tax
assets in the US, Canada and Germany.
As reported 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.
GOL LINHAS: Pares Profit Forecast Due to Airport Delays
-------------------------------------------------------
Gol Linhas Aereas Inteligentes SA has cut down for the sixth
time this year its profit forecast due to delays in the
Congonhas airport, Bloomberg News reports. The company has also
lowered profit expectation in November for the same reason.
According to the company's statement, Gol sees four to five
percent of profit from 2007 revenue. At the start of the year,
the airline saw a 23% operating profit compared to last year.
Fatal accidents in Brazil's airline industry has led the
government to enforce measures that include limiting flights at
Congonhas, causing widespread delays, the same report says.
The airline's controlling shareholder, the Oliveira family-
controlled Fundo de Investimento, wants to take it private after
its share fell 46% as of September.
Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL
Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4)
-- http://www.voegol.com.br-- through its subsidiary, GOL
Transportes Aereos S.A., provides airline services in Brazil,
Argentina, Bolivia, Uruguay, and Paraguay. The company's
services include passenger, cargo, and charter services. As of
March 20, 2006, Gol Linhas provided 440 daily flights to 49
destinations and operated a fleet of 45 Boeing 737 aircraft.
The company was founded in 2001.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 25, 2007, Fitch Ratings has affirmed the 'BB+' foreign and
local currency issuer default ratings of Gol Linhas Aereas
Inteligentes S.A. Fitch has also affirmed the outstanding
US$200 million perpetual bonds and US$200 million of senior
notes due 2017 at 'BB+' as well as the company's 'AA-' (bra)
national scale rating. Fitch said the rating outlook is stable.
MTI GLOBAL: Inks Forbearance Deal with its Principal Lender
-----------------------------------------------------------
MTI Global Inc. has entered into a forbearance agreement with
its principal lender, a Canadian chartered bank. Under the
agreement, the Bank has agreed not to enforce its security prior
to March 31, 2008, subject to MTI satisfying certain conditions.
In addition certain provisions of the credit facilities have
been amended. As reported on Nov. 14, 2007, MTI was notified by
the Bank that it was in breach of a financial covenant in its
credit facility agreement and in the transfer of assets and
financial support of MTI de Baja as at June 30, 2007, and
Sept. 30, 2007.
The conditions to the forbearance include, among others,
-- that guarantees and additional security be provided by
MTI Groendyk and MTI Specialty Silicones;
-- that MTI provide certain additional financial information
to the Bank; and
-- that MTI meet certain agreed upon deliverables at various
dates up to and including March 31, 2008.
The amendments to the credit facilities include:
-- that a US$3 million term facility is now classified as a
current portion of long term debt and therefore repayable
upon demand, the term facility is related to the
acquisition of the silicone division of Mold-Ex on
July 12, 2007;
-- that interest on the operating facility is now payable at
prime plus 2% and on the term facility at prime plus
2.5%; and
-- that MTI comply with certain additional financial
reporting and general covenants on an on-going basis.
MTI is developing a long-term plan, which will include a review
of financial, corporate and operational structures to stabilize
its financial situation. In the shorter term, MTI will:
a) focus specifically on improving and streamlining customer
and sales relationships;
b) implementing more stringent discipline with respect to
processes; and
c) tighter management of working capital including inventory
and overall financial performance.
The restructuring plan is to be submitted to the Bank on or
before Jan. 21, 2008.
Breach of Financial Covenant
Subsequent to the release of the second quarter results, the
company was notified by its Canadian chartered bank that it was
in breach of a financial covenant in its credit facility
agreement as at June 30, 2007. Specifically, the company did
not comply with the debt service coverage ratio of 1.25
calculated on a rolling twelve-month basis. Furthermore, the
company was in breach of a general covenant concerning the
transfer of certain inventory and equipment to the company's
contract manufacturer in Mexico without first receiving the
Bank's prior written consent. The company has received a
written notice of waiver of the June 30, 2007, breaches through
Nov. 30, 2007, and has requested the Bank's written consent for
ongoing transfers of inventory and equipment in compliance with
the terms of its loan agreement.
Due to unfavourable financial results in the third quarter, the
company remains in breach of the same debt service coverage
ratio as at Sept. 30, 2007. Accordingly, the credit facilities
consisting of an operating and term loan with the Bank are in
default and have both been reflected in current liabilities.
The company also expects to be in breach of the debt service
covenant at Dec. 31, 2007.
The company has commenced discussions with the Bank with respect
to the breaches and has requested that the Bank waive the
default for Sept. 30, 2007.
About MTI Global
Headquartered in Mississauga, Ontario, MTI Global Inc. (TSX:
MTI) -- http://www.mtiglobalinc.com/-- designs, develops and
manufactures custom-engineered products using silicone and other
cellular materials. The company serves a variety of specialty
markets focused on three main product categories: Silicone,
Aerospace and Fabricated Products. MTI's Canadian manufacturing
operations are located in Mississauga, Ontario, with
international manufacturing operations located in Richmond and
Buchanan, Virginia; Pensacola, Florida; Bremen, Germany; and a
contract manufacturer venture in Ensenada, Mexico. The company
also has sales operations in England and Sweden, and an
engineering support center in Brazil.
MYERS INDUSTRIES: GS Capital Moves Sale Closing Date to April 30
----------------------------------------------------------------
Myers Industries Inc.'s Board of Directors has announced that GS
Capital Partners has requested more time to complete the
acquisition of the company. In consideration for extending the
closing date of the transaction from Dec. 15, 2007, to
April 30, 2008, GSCP has agreed to make a non-refundable payment
to Myers of the previously agreed upon US$35 million fee. GSCP
has secured an extension of its debt financing commitments from
Goldman Sachs Credit Partners and Key Bank pursuant to which
GSCP has agreed to contribute another US$30 million of equity to
the transaction.
GSCP has acknowledged that there has been no material adverse
change in Myers' business, and that GSCP's deadline extension
request resulted from its desire to further evaluate conditions
in certain industries in which Myers operates.
John C. Orr, Myers Industries' president and chief executive
officer said, "Both sides continue to work closely to complete
this transaction. In light of GSCP's request for an extension,
which we received the evening of December 7, 2007, the Board of
Directors determined that it is in the best interest of Myers'
shareholders to preserve this opportunity."
Board Increases Regular Dividend
Myers Industries' Board also announced that it would increase
the company's regular quarterly dividend from US$0.0525 to
US$0.06 per common share, payable January 2, 2008, to
shareholders of record as of Dec. 20, 2007. As permitted by the
extension agreement, the Board of Directors also approved
payment of a special dividend of US$0.28 per common share, also
payable Jan. 2, 2008, to shareholders of record as of
Dec. 20, 2007.
Merger Agreement Changes
As part of the agreement to extend the closing deadline with
GSCP, Myers Industries will be free to respond to takeover
proposals solicited or received from others during the extension
period and will not be required to pay a termination fee to GSCP
if it enters into an alternative transaction.
Except as modified by the extension agreement, the terms of the
merger agreement remain unchanged, including GSCP's agreement to
acquire all of the outstanding common stock of Myers Industries
for US$22.50 per share in cash.
About Myers Industries
Myers Industries, Inc. -- http://www.myersind.com-- is an
international manufacturer of polymer products for industrial,
agricultural, automotive, commercial, and consumer markets. The
Company is also the largest wholesale distributor of tools,
equipment, and supplies for the tire, wheel, and undervehicle
service industry in the US. The company reported record net
sales from continuing operations of USUS$780.0 million in 2006.
It has operations in Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 19, 2007, Standard & Poor's Ratings Services withdrew all
ratings on Myers Industries Inc. The withdrawal follows the
announcement that private equity sponsor Goldman Sachs Capital
Partners would postpone the closing of its acquisition of Myers
until the fourth quarter.
UAL CORP: Board Approves US$250-Mln Distribution to Shareholders
----------------------------------------------------------------
The UAL Corporation Board of Directors approved a special
distribution of US$2.15 per share to holders of UAL common
stock, or approximately US$250 million. The distribution will
be made on Jan. 23, 2008, to holders of UAL Corporation common
stock outstanding as of Jan. 9, 2008. United also paid down
US$500 million of the term loan under its existing credit
agreement.
Both the distribution and the term loan prepayment follow the
approval by United's lenders of an amendment to the company's
credit agreement. Under the amendment, the company can
undertake an additional US$250 million in shareholder
initiatives without any additional prepayment. In addition, the
amendment provides that the company can carry out further
shareholder initiatives in an amount equal to future term loan
prepayments.
"This shareholder distribution underscores our commitment to
creating value for our investors," said Glenn Tilton, chairman,
president and CEO. "On behalf of our board of directors, we are
pleased to make this decision to provide a distribution to our
shareholders while strengthening our balance sheet and investing
in our business. We compete for shareholders just as we compete
for customers."
"Building a successful, sustainable enterprise, and providing a
return on investment, is what shareholders expect and deserve,"
Mr. Tilton said, reports The Associated Press.
Since exiting bankruptcy, United has reduced its total net debt
by US$2.7 billion through the end of the third quarter. United
has generated more than US$2 billion in operating cash flow in
the first nine months of the year. The company also plans to
invest US$4 billion in its business over the next five years.
For the 5% Senior Convertible Notes due 2021 -- the "O'Hare
Notes"; the 4.5% Senior Limited-Subordination Convertible Notes
due 2021 -- the "Employee Notes"; and the PBGC 2% Convertible
Preferred Stock -- "PBGC Preferred Stock", the conversion price
and the ratios will be adjusted in accordance with their terms.
About UAL Corp.
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest
air carrier. The airline flies to Brazil, Korea and Germany.
The company filed for chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and
Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the
Debtors in their restructuring efforts. Fruman Jacobson, Esq.,
at Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy. Judge
Wedoff confirmed the Debtors' Second Amended Plan on
Jan. 20, 2006. The company emerged from bankruptcy protection
on Feb. 1, 2006.
* * *
As reported in the Troubled Company Reporter on Nov. 29, 2007,
Moody's Investors Service affirmed the ratings of UAL Corp. debt
-- corporate family rating at B2 -- following the company's
announced plans to amend its US$2.055 billion bank credit
facilities (comprising a term loan facility of US$1.8 billion
and a revolving credit facility of US$255 million) to provide
the flexibility to implement up to US$500 million of shareholder
initiatives. This level of shareholder initiatives would likely
be within United's anticipated free cash flow and should still
preserve the company's adequate level of liquidity. Moody's
said the outlook remains stable.
Standard & Poor's Ratings Services meanwhile affirmed its 'B'
corporate credit rating on UAL Corp. and subsidiary United Air
Lines Inc. following disclosure of a proposed amendment to
United's bank credit agreement that would permit UAL to pursue
"shareholder initiatives" (which could include a special
dividend or share repurchases) of up to US$500 million. S&P
said the outlook remains stable.
UAL CORP: Unions Furious Over Shareholder Payouts
-------------------------------------------------
The Air Line Pilots Association, the Association of Flight
Attendants-CWA, and the International Association of Machinists
and Aerospace Workers, representing the overwhelming majority of
union-represented employees, are furious with the UAL
Corporation Board of Directors and management's decision to give
the special shareholder payout to the exclusion of employees.
"In every venue available, we have voiced our opposition to any
'shareholder initiative' that does not equally recognize
employee sacrifices," the leaders of the three largest Unions at
United Airlines, Mark Bathurst, chairman of the United Chapter
of the ALPA; Greg Davidowitch, united master executive council
president of the AFA-CWA; and Randy Canale, president and
directing general chairman of the IAM, District 141, said in a
statement.
"We have warned management that this move is wrong for the
business, wrong for the employees and ultimately wrong for
lenders. These executives have pushed through their personal
agenda while ignoring serious concerns raised by nearly every
stakeholder, industry trends and the company's financial
position. This is being done with utter disregard for the
interests of employees and the long-term success of United
Airlines," the Unions said.
"The best shareholder initiative would be one that invests in
the employees for the long-term success of United Airlines.
Shareholders in the pre-bankrupt UAL were issued new stock in
the same manner as every other constituency, including the
employees, when United emerged from bankruptcy. Today,
employees who lost their pensions and work longer hours for less
pay continue to suffer the affects of the bankruptcy. Not one
penny of employee concessions has been repaid.
The Unions noted that since United Airlines exited Chapter 11,
UAL management has renegotiated excessive executive compensation
packages for themselves and have renegotiated their agreements
with lenders. "If they have the ability to renegotiate their
own compensation packages, if they have the ability to negotiate
with lenders, if they have the ability to negotiate with
shareholders to create another management bonus, then they have
the ability to enter negotiations with us."
According to AFA-CWA, the move undercuts the value of United
Airlines by favoring short-term shareholder returns over a
strong, motivated workforce, an improved customer experience and
the long-term health of the airline.
"The executives at United Airlines are nothing more than
charlatans, sweetening the pot to flip our airline like an
unscrupulous real estate agent," said Mr. Davidowitch in letter
to flight attendants. "This shareholder "initiative" is nothing
more than an executive induced plan to enrich themselves at the
expense of the working women and men of United Airlines. The
best shareholder initiative would be one that invests in the
employees for the long-term success of the airline."
Mr. Davidowitch pointed out that Flight Attendants and other
workers know that any time an employee or shareholder gets a
supposed return on United's success, executives are getting an
even bigger return on top of their renegotiated compensation
packages.
"Workers are fed up. They are fed up with these executives
initiating class warfare instead of making good decisions for
our airline," he said.
Susan Carey of The Wall Street Journal, however, says UAL Corp.
is making good on its pledge to be more mindful of its
investors.
United's management is clearly showing investors it can and will
execute on its promises of shareholder-friendly actions,"
William Greene, airline analyst at Morgan Stanley said in a
research note, reports WSJ.
About UAL Corp.
Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA)
-- http://www.united.com/-- is the holding company for United
Airlines, Inc. United Airlines is the world's second largest
air carrier. The airline flies to Brazil, Korea and Germany.
The company filed for chapter 11 protection on Dec. 9, 2002
(Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen,
Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and
Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the
Debtors in their restructuring efforts. Fruman Jacobson, Esq.,
at Sonnenschein Nath & Rosenthal LLP represented the Official
Committee of Unsecured Creditors before the Committee was
dissolved when the Debtors emerged from bankruptcy. Judge
Wedoff confirmed the Debtors' Second Amended Plan on
Jan. 20, 2006. The company emerged from bankruptcy protection
on Feb. 1, 2006.
* * *
As reported in the Troubled Company Reporter on Nov. 29, 2007,
Moody's Investors Service affirmed the ratings of UAL Corp. debt
-- corporate family rating at B2 -- following the company's
announced plans to amend its US$2.055 billion bank credit
facilities (comprising a term loan facility of US$1.8 billion
and a revolving credit facility of US$255 million) to provide
the flexibility to implement up to US$500 million of shareholder
initiatives. This level of shareholder initiatives would likely
be within United's anticipated free cash flow and should still
preserve the company's adequate level of liquidity. Moody's
said the outlook remains stable.
Standard & Poor's Ratings Services meanwhile affirmed its 'B'
corporate credit rating on UAL Corp. and subsidiary United Air
Lines Inc. following disclosure of a proposed amendment to
United's bank credit agreement that would permit UAL to pursue
"shareholder initiatives" (which could include a special
dividend or share repurchases) of up to US$500 million. S&P
said the outlook remains stable.
UNITED AIRLINES: Planned Pay Out Does Not Affect Fitch's Rating
---------------------------------------------------------------
Following the announcement by United Airlines that it intends to
pay out a special cash distribution of approximately
US$250 million to shareholders while reducing its outstanding
term loan balance by US$500 million, Fitch's ratings on United
and its UAL Corp. parent are unaffected. Fitch's Issuer Default
Rating on both UAL and United is 'B-', and the secured credit
facility is rated 'BB-' with a recovery rating of 'RR1'. The
Rating Outlook for UAL and United is Positive.
Current ratings reflect the substantial progress made toward
balance sheet repair and leverage reduction over the past two
years, offset by management's stated intention to return more
cash to shareholders through the current US$250 million payment,
to be made on January 23, and potential future cash
distributions. The recently negotiated amendment to United's
secured bank credit facility allows for an additional
US$250 million to be paid out to shareholders without further
required reduction of the term loan balance. In addition,
lenders have agreed to allow United to pursue further
shareholder initiatives as long as a corresponding amount of
debt reduction occurs at that time.
The credit facility amendment and the distribution announcement
appear to reflect management's view that a portion of the
carrier's unrestricted cash position (US$4.2 billion as of
Sept. 30, 2007) represents excess liquidity that should be
allocated to the return of cash to shareholders and the pre-
payment of debt. While this will clearly have a positive near-
term effect on leverage, the resulting impact of this action on
the carrier's liquidity position and free cash flow generation
represents a modest credit negative that could limit United's
financial flexibility in a potential industry downturn linked to
a softening domestic demand outlook and very high jet fuel
prices.
United has recently adjusted its domestic mainline capacity
growth plans for 2008 to reduce scheduled available seat miles
by approximately 3%-4% in light of the weaker operating outlook.
Other carriers, including Southwest, Continental and Delta have
announced similar capacity pullbacks this month. Industry
capacity discipline should support domestic unit revenue trends
somewhat for 2008, but United and its competitors are likely to
experience some margin pressure next year. Fitch expects free
cash flow to weaken in 2008, particularly in light of the fact
that cash distributions to shareholders could increase beyond
the announced US$250 million payment. In Fitch's view, proceeds
from any prospective asset divestitures-notably United's
maintenance services business and/or the Mileage Plus loyalty
program-are likely to be allocated toward both shareholder
distributions and debt reduction, but the precise allocation is
contingent upon developments in the industry operating
environment over the next few quarters.
About United Airlines
United Airlines (Nasdaq: UAUA) -- http://www.united.com/-- is a
subsidiary of UAL Corp. It operates more than 3,600 flights a
day on United, United Express and TedSM to more than 200 U.S.
domestic and international destinations from its hubs in Los
Angeles, San Francisco, Denver, Chicago and Washington, D.C.
With key global air rights in the Asia-Pacific region, Europe
and Latin America (Brazil), United is one of the largest
international carriers based in the United States. The airline
is also a founding member of Star Alliance, which provides
connections for our customers to 855 destinations in 155
countries worldwide. The airline's 55,000 employees reside in
every U.S. state and in many countries around the world.
* BRAZIL: Inks Foundation Act; Launches Bank of the South
---------------------------------------------------------
The national leaders of Argentina, Bolivia, Brazil, Ecuador,
Paraguay and Venezuela have launched Sunday the new Banco del
Sur development bank, the Financial Times reports.
The bank's launching was initially set for June 26 but was moved
due to capitalization issues.
According to the FT, the bank has about US$7 billion in
capital, which came from the founding members. Colombia and
Chile has not entered the venture.
The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the International
Monetary Fund and the World Bank, on much lower rates and better
financing conditions.
Critics called the bank a waste of effort given the established
presence of the institutions, like the IMF and the Word Bank,
which it wants to compete with.
The finer details of the services that the bank will be
providing still need to be ironed out by the finance ministers
of the countries involved. The ministers have two months to
translate into operations what have been agreed on paper, the FT
says.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch
said the rating outlook is stable.
===========================
C A Y M A N I S L A N D S
===========================
ANN FUNDING: Sets Final Shareholders Meeting for Dec. 14
--------------------------------------------------------
Ann Funding Two Co., Ltd., will hold its final shareholders
meeting on Dec. 14, 2007, at 11:30 a.m. at the registered office
of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records of
the company for a period of five years from the
dissolution of the company, after which they may be
destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Ann Funding's shareholders agreed on Oct. 29, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
ASBT CAYMAN: Holding Final Shareholders Meeting on Dec. 14
----------------------------------------------------------
ASBT Cayman Sub No. 85 Limited will hold its final shareholders
meeting on Dec. 14, 2007, at 12:30 p.m. at the registered office
of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records of
the company for a period of five years from the
dissolution of the company, after which they may be
destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
ASBT Cayman's shareholders agreed on Nov. 2, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
ASBT CAYMAN SUB: Final Shareholders Meeting Is on Dec. 14
---------------------------------------------------------
ASBT Cayman Sub No. 84 Limited will hold its final shareholders
meeting on Dec. 14, 2007, at 1:00 p.m. at the registered office
of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records of
the company for a period of five years from the
dissolution of the company, after which they may be
destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
ASBT Cayman's shareholders agreed on Nov. 2, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
AVENUE SERIES: Sets Final Shareholders Meeting for Dec. 14
----------------------------------------------------------
Avenue Series 2002-1 Limited will hold its final shareholders
meeting on Dec. 14, 2007, at:
Maples Finance Limited
Boundary Hall, Cricket Square
George Town, Grand Cayman
Cayman Islands`
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Avenue Series' 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:
Chris Marett
Sarah Kennedy
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
EUROPEAN FINANCIAL: Holds Final Shareholders Meeting on Dec. 14
---------------------------------------------------------------
European Financial Investments Fund Limited will hold its final
shareholders meeting on Dec. 14, 2007, at:
Maples Finance Limited
Boundary Hall, Cricket Square
George Town, Grand Cayman
Cayman Islands`
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
European Financial'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 liquidator can be reached at:
Guy Major
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
EUROPEAN FIN'L INVESTMENTS: Shareholders Meeting Is on Dec. 14
--------------------------------------------------------------
European Financial Investments Limited will hold its final
shareholders meeting on Dec. 14, 2007, at:
Maples Finance Limited
Boundary Hall, Cricket Square
George Town, Grand Cayman
Cayman Islands`
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
European Financial'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 liquidator can be reached at:
Guy Major
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
FLAGSHIP CLO: Will Hold Final Shareholders Meeting on Dec. 14
-------------------------------------------------------------
Flagship CLO II will hold its final shareholders meeting on
Dec. 14, 2007, at:
Maples Finance Limited
Boundary Hall, Cricket Square
George Town, Grand Cayman
Cayman Islands`
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Flagship CLO'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
Jan Neveril
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
GREAT OAK: Will Hold Final Shareholders Meeting on Dec. 14
----------------------------------------------------------
Great Oak Investment Limited will hold its final shareholders
meeting on Dec. 14, 2007, at 12:00 p.m. at the registered office
of the company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records of
the company for a period of five years from the
dissolution of the company, after which they may be
destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Great Oak's shareholders agreed on Nov. 2, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
HIBIYA SEVEN INVESTMENT: Final Shareholders Meeting Is Dec. 14
--------------------------------------------------------------
Hibiya Seven Investment Ltd. will hold its final shareholders
meeting on Dec. 14, 2007, at:
Maples Finance Limited
Boundary Hall, Cricket Square
George Town, Grand Cayman
Cayman Islands`
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Hibiya Seven'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 liquidator can be reached at:
Jan Neveril
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
HIBIYA SEVEN: Will Hold Final Shareholders Meeting on Dec. 14
-------------------------------------------------------------
Hibiya Seven Ltd. will hold its final shareholders meeting on
Dec. 14, 2007, at:
Maples Finance Limited
Boundary Hall, Cricket Square
George Town, Grand Cayman
Cayman Islands`
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving any explanation thereof.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Hibiya Seven'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 liquidator can be reached at:
Jan Neveril
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
TRADE LINK: Sets Final Shareholders Meeting for Dec. 14
-------------------------------------------------------
Trade Link Bank will hold its final shareholders meeting on
Dec. 14, 2007, at 9:00 a.m. at the registered office of the
company.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records of
the company for a period of five years from the
dissolution of the company, after which they may be
destroyed.
A member entitled to attend and vote at the meeting will be
allowed to appoint a proxy, who need not be a member, in his
stead.
Trade Link's shareholders agreed on Nov. 9, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Russell Smith
Attention: Sumitra Devi
P.O. Box 2499, George Town
Grand Cayman KY1 - 1104, Cayman Islands
Telephone: (345) 946 0820
Fax: (345) 946 0864
=========
C H I L E
=========
EASTMAN KODAK: Signs Marketing Deal with PGA TOUR
-------------------------------------------------
Eastman Kodak Company has entered into a strategic marketing
partnership with the PGA TOUR. The six-year, multi-million
dollar agreement begins in 2008 and will include corporate
hospitality and season-long tournament branding on scoreboards,
as well as additional sponsorship elements that will be
announced at a later date.
"As Kodak has transformed into a new company, our marketing
strategy has also evolved. We are thrilled to begin a
relationship with the PGA TOUR, which will provide us with a
unique opportunity to directly connect with our customers and to
showcase Kodak's products, innovations, and services," said
Jeffrey Hayzlett, chief business development officer and vice
president, Eastman Kodak Company. "This is a natural fit for
the Kodak brand, which is known the world over for imaging
innovation. We look forward to collaborating with the PGA TOUR
team to enhance the tour experience for golf fans around the
world."
To kick-off the relationship in 2008, Kodak will be featured on
the new digital scoreboards that are in place at virtually all
official PGA TOUR events. One side-panel of the scoreboards
will be redesigned to reflect Kodak's familiar yellow and red
logo. Kodak will also host corporate hospitality and
entertainment venues at selected TOUR events.
"We couldn't be more pleased to announce this new partnership
with Kodak, an incredibly well-known brand with a tremendous
reputation," said Tom Wade, executive vice president and chief
marketing officer, PGA TOUR. "It is important to the TOUR to
continue forging sponsorships with companies like Kodak that are
synonymous with quality and tradition, the same positive values
that we stand for."
The Diamond Vision LED scoreboards, which were phased in
throughout the 2007 PGA TOUR season, will be fully in use
throughout 2008. The digital boards have created a dramatic fan
enhancement as they are situated at strategic locations on the
course at PGA TOUR events, allowing spectators to stay in touch
with the action going on around them. As such, Kodak will have
its brand associated with these new scoreboards, with 11 on site
at a given week's tournament.
Each digital high-resolution scoreboard is capable of showcasing
PGA TOUR players in a new, more-engaging way through video, key
statistics, graphics, logo animation, and other fan enhancements
that are easily visible to spectators on TOUR courses. Each
one-ton board has an active digital display that is more than
7-1/2-feet high by 20-feet long.
About Eastman Kodak
Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK)-- http://www.kodak.com/-- develops, manufactures, and
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.
The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.
As reported in the Troubled Company Reporter-Latin America on
Sept. 14, 2007, Standard & Poor's Ratings Services has affirmed
its 'B+' corporate credit rating on Eastman Kodak Co. and
removed the ratings from CreditWatch, where they had been placed
with negative implications on Aug. 2, 2006. S&P said the
outlook is negative.
ELECTRONIC DATA: Bags Bristol-Myers' US$715-Mln IT Services Deal
----------------------------------------------------------------
Electronic Data System Corp. has been awared a seven-year,
US$715 million information technology services contract to
deliver IT infrastructure services to Bristol-Myers Squibb.
"Leveraging EDS' expertise, scope and scale will allow the
company to improve productivity so Bristol-Myers Squibb can
remain focused on what it does best -- help patients prevail
over serious disease," said Bristol-Myers Squibb vice president
for Information Management Shared Services, Paul von Autenried.
The company will manage Bristol-Myers Squibb's IT environment,
which includes the company's critical operations data at
Bristol-Myers Squibb data centers around the world. The
contract initially covers IT services in the Americas and Asia
Pacific regions, with the opportunity to include Europe, the
Middle East and Africa. Additionally, the company will provide
computer capacity to Bristol-Myers Squibb from its data center
in Auburn Hills, Michigan.
The company will also provide multi-language field-level and
help desk support for the Bristol-Myers Squibb employees'
computing environment. This includes the company's sales,
scientific and SAP systems and employee workstations in a number
of countries around the world.
The agility, flexibility and redundancy of Electronic Data's
Global Services Network offers cost savings while improving
global competitiveness with the ability to operate in a
leveraged and secure global environment. It also provides the
ability to scale up or down based on business needs and
mitigates risk by spreading out computing power to multiple
locations.
"This biopharmaceutical pioneer is a significant addition to
EDS' healthcare customer base. Our goal is to help Bristol-
Myers Squibb's global competitiveness by delivering innovative,
thought-leading IT services," said EDS Americas executive vice
president, Jeff Kelly. "As a leader and important partner in
healthcare transformation, EDS helps healthcare organizations
worldwide address critical business challenges through IT,
allowing companies like Bristol-Myers Squibb to lead in the
fight against disease."
As part of this agreement, EDS Agility Alliance partners EMC,
Microsoft, Oracle and SAP will provide products and services to
Bristol-Myers Squibb, furthering efforts to increase
productivity, mitigate risk and lower costs. The EDS Agility
Alliance is a coalition of companies globally recognized for
their quality, products and value to clients. Its mission is to
innovate, develop and deliver the EDS Agile Enterprise Platform
-- the company' next-generation global delivery system.
Together, the company and its Agility Alliance partners
collaborate to design, build and run a market-leading services
platform and develop technology-based services to deliver
tangible client results. EDS Agility Alliance partners include
Cisco, EMC, Microsoft, Oracle, SAP, Sun Microsystems and Xerox.
About Electronic Data
Based in Plano, Texas, Electronic Data System Corp. (NYSE: EDS)
-- http://www.eds.com/-- is a global technology services
company delivering business solutions to its clients. The
company founded the information technology outsourcing industry
more than 40 years ago. The company delivers a broad portfolio
of information technology and business process outsourcing
services to clients in the manufacturing, financial services,
healthcare, communications, energy, transportation, and consumer
and retail industries and to governments around the world.
EDS has locations in Argentina, Australia, Brazil, China, Chile,
Hong Kong, India, Japan, Malaysia, Mexico, Puerto Rico,
Singapore, Taiwan, Thailand and South Korea.
* * *
Moody's placed EDS Corp.'s senior unsecured debt rating at 'Ba1'
in July 2004, and its probability of default rating at 'Ba1' in
September 2006. Moody's said the outlook is positive. The
ratings still hold to date.
===============
C O L O M B I A
===============
* COLOMBIA: State Firm Issues 56.4MM New Shares at COP7,076 Each
----------------------------------------------------------------
Colombian state-run transmission firm Interconexion Electrica SA
said in a statement that it will issue 56.4 million new shares
at COP7,076 each.
Business News Americas relates that the offering will bring in
up to COP399 billion. Interconexion Electrica received offers
for a total of 178 million in the public offering it launched on
Nov. 16, 2007.
According to BNamericas, Interconexion Electrica initially
wanted to issue 53 million new shares. The firm then raised the
amount by over three million. Interconexion Electrica was
authorized to either increase or lessen the amount 25%.
BNamericas notes that Interconexion Electrica used the "book-
building model for the round in which investors proposed both
the price and amount of shares" they wanted to buy. The firm is
contacting investors to report the number of shares they were
awarded.
An Interconexion Electrica spokesperson told BNamericas that
what the firm will raise will go to its investment plan and
optimization of its capital structure.
The report says that domestic and foreign investors were allowed
to place offers for the shares.
Interconexion Electrica's administration considered a level III
ADR offering in the medium term, the spokesperson told
BNamericas.
* * *
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.
=============
E C U A D O R
=============
* ECUADOR: Inks Foundation Act; Launches Bank of the South
----------------------------------------------------------
The national leaders of Argentina, Bolivia, Brazil, Ecuador,
Paraguay and Venezuela have launched Sunday the new Banco del
Sur development bank, the Financial Times reports.
The bank's launching was initially set for June 26 but was moved
due to capitalization issues.
According to the FT, the bank has about US$7 billion in capital,
which came from the founding members. Colombia and Chile has
not entered the venture.
The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the International
Monetary Fund and the World Bank, on much lower rates and better
financing conditions.
Critics called the bank a waste of effort given the established
presence of the institutions, like the IMF and the Word Bank,
which it wants to compete with.
The finer details of the services that the bank will be
providing still need to be ironed out by the finance ministers
of the countries involved. The ministers have two months to
translate into operations what have been agreed on paper, the FT
says.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 1, 2007, Fitch Ratings affirmed and removed from Rating
Watch Negative the long-term foreign currency Issuer Default
Rating of Ecuador at 'CCC', the country ceiling at 'B-' and the
short-term IDR at 'C'. Fitch said the rating outlook is stable.
In addition, these bond ratings were affirmed:
-- Uncollateralized foreign currency bonds at 'CCC/RR4';
-- Collateralized foreign currency Par and Discount Brady
bonds at 'CCC+/RR3'.
=================
G U A T E M A L A
=================
IMAX CORP: Inks Deal with AMC to Install 100 IMAX(R) Systems
------------------------------------------------------------
IMAX Corporation and AMC Entertainment Inc. enter a joint-
venture agreement to install 100 IMAX(R) digital projection
systems at AMC locations in 33 major U.S. markets. The theatres
will feature IMAX's digital projection system, which is being
developed for the IMAX MPX(R) theatre design. The agreement is
projected to double IMAX's current commercial theatre footprint
in North America and accelerates the momentum behind IMAX and
AMC's transition to digital projection technology.
"We are committed to delivering a premium entertainment
experience by offering a menu of entertainment alternatives
inside our facilities," Peter C. Brown, chairman and chief
executive officer, AMC Entertainment Inc., said. "Our expanded
relationship with IMAX and the deployment of its state-of-the-
art, next-generation digital projection systems is a key part of
our strategy of continuing to broaden and enhance the AMC
experience. It also builds on the successful partnership we
have had with IMAX since June of 2005 and complements our
overall digital plan."
The rollout of the first 50 IMAX digital projection systems will
begin in July 2008 at premier AMC theatre locations in 24 of the
33 selected markets, with an additional 25 scheduled for rollout
in 2009 and 25 more in 2010.
The IMAX theatres are slated to be installed in many of AMC's
top-performing locations in the United States, including: AMC
South Barrington 30, Chicago; AMC Mesquite 30, Dallas; AMC Gulf
Pointe 30, Houston; AMC Century City 15, Los Angeles; AMC Empire
25, New York; AMC Neshaminy 24, Philadelphia; AMC Eastridge 15,
San Francisco; AMC Hoffman Center 22, Washington D.C.
"The agreement cements a partnership between two great brands,"
IMAX co-chairmen and co-CEOs Richard L. Gelfond and Bradley J.
Wechsler, said. "Partnering with AMC in a theatre deal of this
size and scope is a transformational moment for our company from
both a financial and strategic perspective. We couldn't be more
pleased that The IMAX Experience(R) will be more accessible to
consumers in nearly every major market in the United States.
"AMC is unique in the number of successful, stadium-seat
megaplexes in locations that could accommodate this large number
of new IMAX(R) theatres," they continued. "Further, AMC's
confidence in our digital projection system is a terrific
endorsement. We look forward to rolling out our ground-breaking
new technology and delivering the premium experience that
moviegoers have come to expect from the IMAX(R) brand."
In October of this year, IMAX disclosed that it had moved up the
launch date of its digital projection system to mid-2008 from
its anticipated timeframe of the end of 2008 to mid-2009. The
anticipated IMAX digital projection system will further enhance
The IMAX Experience and help to drive profitability for studios,
exhibitors and IMAX theatres by virtually eliminating the need
for film prints, increasing program flexibility and ultimately
increasing the number of movies shown on IMAX screens.
IMAX has already secured important parts of its film slate for
2008, 2009 and 2010 through agreements with major Hollywood
studios including: The Spiderwick Chronicles (February 2008),
Shine A Light (April 2008), Kung Fu Panda (June 2008), The Dark
Knight (July 2008), Deep Sea-quel 3D (working title, February
2009), Monsters vs. Aliens 3D (March 2009), How to Train Your
Dragon 3D (November 2009), Hubble 3D (working title, February
2010) and Shrek Goes Forth 3D (May 2010).
"An agreement of this magnitude significantly jumpstarts our
joint venture initiative, which we expect will generate
increased recurring revenues for IMAX going forward," added
Messrs. Gelfond and Wechsler. "AMC's decision to enter into
this agreement will accelerate the growth of our theatre network
in North America and should help power the digital transition
underway at our company, which we believe will help drive our
operating and financial performance for years to come."
AMC's initial 50 IMAX digital locations will include:
MARKET AMC THEATRE
------ -----------
Atlanta AMC Barrett Commons 24
AMC Southlake Pavilion 24
Baltimore AMC Columbia Mall 14
AMC Loews White Marsh 16
Boston AMC Loews Boston Common 19
Charlotte AMC Concord Mills 24
Chicago AMC South Barrington 30
AMC Loews Crestwood 18
Cincinnati AMC Newport on the Levee 20
Dallas AMC Mesquite 30
Denver AMC Highlands Ranch 24
AMC Orchards 12
AMC Westminister Promenade 24
Houston AMC First Colony 24
AMC Gulf Pointe 30
Jacksonville AMC Orange Park 24
AMC Regency Square 24
Kansas City AMC BarryWoods 24
AMC Independence Commons 20
Los Angeles AMC Burbank 16
AMC Century City 15
AMC Del Amo 18
AMC Promenade 16
AMC Puente Hills 20
AMC Santa Anita 16
Miami AMC Aventura 24
AMC Sunset Place 24
New Orleans AMC Elmwood Place 20
New York AMC Loews 34Th Street 14
AMC Empire 25
AMC Loews Kips Bay 15
AMC Rockaway 16
AMC Loews Stony Brook 17
AMC Loews Monmouth Mall 15
Norfolk AMC Lynnhaven 18
Orlando AMC Altamonte Mall 18
Philadelphia AMC Loews Cherry Hill 24
AMC Hamilton 24
AMC Neshaminy 24
Pittsburg AMC Loews Waterfront 22
San Diego AMC Palm Promenade 24
San Francisco AMC Bay Street 16
AMC Eastridge 15
AMC Mercado 20
Seattle AMC Loews Alderwood 16
AMC Southcenter 16
Tampa AMC Veterans Expressway 24
Washington D.C. AMC Hoffman Center 22
AMC Potomac Mills 18
AMC Tysons Corner 16
About AMC Entertainment Inc.
Headquartered in Kansas City, Missouri, AMC Entertainment Inc.
-- http://www.amctheatres.com/-- is an innovative theatrical
exhibition company. Established in 1920, the company serves
more than 230 million guests annually through interests in 358
theatres with 5,128 screens in six countries.
About IMAX Corporation
Based in New York City and Toronto, Canada, IMAX Corporation
(NASDAQ:IMAX) -- http://www.imax.com/-- is an entertainment
technology company, with emphasis on film and digital imaging
technologies including 3D, post-production and digital
projection. IMAX is a fully-integrated, out-of-home
entertainment enterprise with activities ranging from the
design, leasing, marketing, maintenance, and operation of
IMAX(R) theatre systems to film development, production, post-
production and distribution of large-format films. IMAX also
designs and manufactures cameras, projectors and consistently
commits significant funding to ongoing research and development.
IMAX has locations in Guatemala, India, Italy, among others.
* * *
Moody's Investor Services placed IMAX Corporation's long term
corporate family and probability of default ratings at 'Caa1' in
July 2007. The ratings still hold to date with a positive
outlook.
TECO ENERGY: Completes US$405-Million Sale of TECO Transport
------------------------------------------------------------
TECO Energy has closed the sale of TECO Transport Corporation to
an investment group led by an affiliate of Greenstreet Equity
Partners L.P., for US$405 million, subject to the final
adjustment of net working capital.
Net proceeds from the sale, taking into consideration estimated
transaction-related costs and state and federal taxes, are
expected to be approximately US$375 million. TECO Energy
expects US$235 million and US$245 million, excluding previously
recognized transaction costs.
"This outcome is a very positive event for TECO Energy," said
Sherrill Hudson, chairman and CEO. "It allows us to continue
our debt retirement plans, including the cash tender offer.
These actions will strengthen our balance sheet and solidify our
focus on TECO Energy's utility businesses. In addition, we hope
the completion of this sale will continue to accelerate
improvement of TECO Energy's credit ratings."
"Our thanks to the entire TECO Transport team for their many
years of dedicated service as part of the TECO Energy family of
companies," John Ramil, president and COO, said. "Their
commitment and professionalism have never wavered, especially
during the past few months of transition. We wish them much
success as they enter this new era in their long history as a
world-class waterborne transportation business."
TECO Energy was the guarantor of three TECO Transport vessel
leases. The first lease will terminate on Dec. 30, 2007, and
the agreement with the purchaser requires it to cause TECO
Transport to make the US$44.6 million termination payment on
that date. Releases with respect to the two other guaranties
were obtained at closing, and payments for those releases were
included in the net proceeds.
About Greenstreet Equity Partners
Headquartetered in Miami, Florida, Greenstreet Equity Partners
L.P., is a private equity firm founded by Steven Green, the
former U.S. Ambassador to Singapore, and Jeffrey Safchik.
About TECO Energy
Headquartered in Tampa, Florida, TECO Energy Inc. (NYSE:TE)
-- http://www.tecoenergy.com/-- is an integrated energy-related
holding company with regulated utility businesses, complemented
by a family of unregulated businesses. Its principal
subsidiary, Tampa Electric Company, is a regulated utility with
both electric and gas divisions (Tampa Electric and Peoples Gas
System). Other subsidiaries are engaged in waterborne
transportation, coal and synthetic fuel production and electric
generation and distribution in Guatemala.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 22, 2007, Fitch Ratings has assigned these ratings to TECO
Finance, Inc., a wholly owned finance subsidiary of TECO Energy,
Inc.:
-- Issuer Default Rating 'BB+';
-- Senior unsecured 'BB+'.
=========
H A I T I
=========
DYNCORP INT'L: Bags US$49-Mln Construction Project from US Army
---------------------------------------------------------------
DynCorp International has been awarded by the U.S. Army Corps of
Engineers a US$49 million construction project for a new Afghan
National Army Garrison in Jalalabad. The new garrison in
eastern Afghanistan near the Pakistani border will accommodate
up to 4,000 Afghan troops.
At full build-out, the 160-acre site will support 50 buildings
such as dormitories, dining facilities, training rooms, offices,
maintenance and security structures, and a full complement of
water, sewer, power, and telecommunication systems.
"We are pleased to have been chosen for this project, which has
strategic importance in the global war on terror. In addition,
the award demonstrates our ability to win construction projects
against well-established regional competitors, and our
performance will provide a sound base for future projects and
business growth," said DynCorp International Chief Executive
Officer Herb Lanese.
About Dyncorp.
DynCorp International Inc. -- http://www.dyn-intl.com/-- (NYSE:
DCP) through its operating company DynCorp International LLC, is
a provider of specialized mission-critical technical services,
mostly to civilian and military government agencies. It
operates major programs in law enforcement training and support,
security services, base operations, aviation services and
operations, and logistics support worldwide. Headquartered in
Falls Church, Virginia, DynCorp International LLC has
approximately 14,600 employees worldwide including Haiti.
* * *
DynCorp still carries Standard and Poor's BB- rating assigned on
June 15, 2006. S&P said the outlook is stable.
===============
H O N D U R A S
===============
* HONDURAS: Obtains US$350,000 Financing for Biofuel Programs
-------------------------------------------------------------
The Inter-American Development Bank has approved a US$350,000
grant from its Fund for Special Operations to support energy
efficiency and biofuel programs in Honduras, as part of the
Bank's Sustainable Energy and Climate Change Initiative.
The grant will support preparation of investment plans and loans
for energy efficiency measures and the development of technical
studies, including those related to the implementation of a
national program to produce and promote biofuels in Honduras.
The funding will help the Honduran government continue various
initiatives, such as IDB-supported preliminary studies on the
fiscal implications of national biofuel plans. The project
includes pilot programs to improve socioeconomic and
environmental conditions in Honduras and boost the
competitiveness of the country's energy-consuming productive
sectors, as well as the agroindustry in an effort to promote
rural development.
The State Secretariat of the Presidency of Honduras, in
coordination with the Natural Resources and Environment
Secretariat, will carry out the program.
The IDB in Mesoamerica
This grant is part of the IDB's support to help the Mesoamerican
region cope with the energy crisis caused by high oil prices.
Other countries in the region, such as Costa Rica, the Dominican
Republic, El Salvador, Guatemala and Haiti, are working with the
IDB to prepare biofuel development and other sustainable energy
programs. These include a series of technical, economic,
fiscal, agricultural, social and environmental studies that will
help devise a solid framework for well-informed decision-making
to strengthen regional production of biofuels.
The IDB has been a key promoter of sustainable energy in the
Mesoamerican region. At the first Energy Fair organized by
Guatemala's Ministry of Energy and Mines from Nov. 12-15, 2007,
the IDB worked with the MEM to organize the Central American
Ministers Forum, analyzing challenges faced by the energy sector
and reviewing IDB programs and facilities for financing.
The IDB also organized the Fourth Meeting of the Mesoamerican
Biofuels Group and the Vinasse Seminar (vinasse is an ethanol by
product) in close association with the MEM, the General
Secretariat of the Central American Integration System (SG/SICA)
and the Subregional Headquarters of the Economic Commission for
Latin America and the Caribbean in Mexico. These events brought
together private-sector groups involved in producing ethanol and
government institutions.
The meetings included presentations of final reports on biofuels
at the regional level, financed by the IDB through its
Sustainable Energy and Climate Change Initiative, with funding
from the IDB/Germany Strategic Partnership Agreement on
Sustainable Energy.
* * *
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
=============
J A M A I C A
=============
GOODYEAR TIRE: Forms New Strategic Business Unit
------------------------------------------------
The Goodyear Tire & Rubber Company has disclosed the formation
of a new strategic business unit, combining the former regions
of European Union and Eastern Europe, Middle East and Africa.
The new region of Europe, Middle East and Africa will be
Goodyear's largest in terms of geography and second largest,
after North America, in terms of annual sales revenue. Annual
combined sales revenue for the two regions in 2006 was $6.5
billion. The change becomes effective Feb. 1, 2008.
"While the two former regions are different in terms of approach
to the market there are also many similarities which are
increasing, especially with the introduction of the new EU
member states," Goodyear Chairman and Chief Executive Officer
Robert J. Keegan, said. "This new organization is structured to
accelerate growth and maximize earnings through simplicity,
speed and an intense focus on our customers and markets."
Mr. Keegan disclosed the appointment of Arthur de Bok, formerly
president, EU, as the president of the new SBU. Mr. De Bok will
report to Mr. Keegan. In addition he reported the appointment
of Michel Rzonzef, formerly vice president sales and marketing,
EEMEA, as president of the EEMEA countries. Mr. Rzonzef will
report to Mr. de Bok.
Mr. Keegan also announced the retirement, for family reasons, of
Jarro Kaplan, president, EEMEA, after a career spanning more
than 38 years. He praised the contribution of Mr. Kaplan who
had joined the region in 2001 and had steered the business unit
to outstanding increases in turnover and profit. "Jarro has
been one of the most successful business leaders in our
company's history," Mr. Keegan said. "We will miss his
contributions and wish him all the best in the next era of his
life."
Mr. De Bok was appointed to his position in September 2005,
having joined the company after a 13-year career with Procter &
Gamble. Mr. De Bok has Bachelor's and Master's degrees in law
from Erasmus University in the Netherlands. "Since becoming
president of the EU organization, Arthur has led a successful
market driven approach to our businesses and has simplified the
organization," Mr. Keegan said. "His proven leadership
capabilities will be invaluable as he leads this newly
integrated business into the future."
Mr. Rzonzef was appointed to his current position in December
2002. He received a degree in electro-mechanical engineering
from Liege University in Belgium in 1987 and joined Goodyear
Luxembourg shortly afterwards. After positions in the Goodyear
Technical Center he held various roles in sales and marketing
before becoming general manager in central Europe in 2001.
"Michel has been one of the driving forces behind the success of
the EEMEA region and has been responsible for the tremendous
growth of the business," Mr. De Bok said. "His knowledge,
people skills and experience will be invaluable as we integrate
our businesses focusing intensely on our customers and our
markets."
"I have seen both Arthur and Michel develop rapidly over these
past few years into outstanding businessmen and leaders," Mr.
Keegan said. "I am confident the new opportunities for both
will continue their personal and professional development."
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company. The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries. Goodyear's operations are located in Argentina,
Austria, Chile, Colombia, France, Italy, Guatemala, Jamaica,
Peru, Russia, among others. Goodyear employs more than 80,000
people worldwide.
* * *
In June 2007, Standard & Poor's Ratings Services raised its
ratings on Goodyear Tire & Rubber Co., including its corporate
credit rating to 'BB-' from 'B+'. These ratings still apply as
of Dec. 4, 2007.
===========
M E X I C O
===========
ACCELLENT INC: Moody's Junks Corporate Family Rating
----------------------------------------------------
Moody's Investors Service has downgraded Accellent Inc.'s
Corporate Family Rating to Caa1 from B3 and assigned a negative
outlook. At the same time, Moody's changed the company's
speculative grade liquidity rating to an SGL-4 from an SGL-3
rating.
The downgrades are based primarily on very tight headroom under
recently amended covenants creating impaired liquidity,
continued weakness in top-line growth, and negative free cash
flow generation -- which has continued to worsen since our
January 2007 downgrade.
Moody's Senior Credit Officer, Diana Lee, commented,
"Accellent's new senior management team must quickly take steps
to shore up weak liquidity." The company will need to increase
margins or see higher sales from improvements in its end-users'
markets to reverse negative operating trends.
The negative outlook reflects Moody's belief that tight
covenants and weak cash flow generation limit the company's
ability to draw under its revolver over the near term. Further,
Moody's believes the likelihood of a covenant violation is
relatively high even absent any additional draws.
Accellent Inc.
Ratings downgraded:
-- Corporate family rating to Caa1 from B3
-- Secured revolver to B2 (LGD2, 29%) from B1 (LGD2, 29%)
-- Secured term loan to B2 (LGD2, 29%) from B1 (LGD2, 29%)
-- Senior subordinated notes to Caa3 (LGD5, 83%) from Caa2
(LGD5, 83%)
-- Probability of Default Rating to Caa1 from B3
-- Speculative grade liquidity rating to SGL-4 from SGL-3
Accellent Inc., headquartered in Wilmington, Massachusetts, --
http://www.accellent.com/--provides fully integrated outsourced
manufacturing and engineering services to the medical device
industry in the cardiology, endoscopy and orthopaedic markets.
Accellent has broad capabilities in design & engineering
services, precision component fabrication, finished device
assembly and complete supply chain management. These
capabilities enhance customers' speed to market and return on
investment by allowing companies to refocus internal resources
more efficiently. The company generated revenues of US$487
million for the twelve months ended Sept. 30, 2006. The company
has offices in Mexico.
ADVANCED MARKETING: Third Amended Plan Takes Effect Dec. 4
----------------------------------------------------------
Advanced Marketing Services Inc., Publishers Group Incorporated
and Publishers Group West Incorporated formally emerged from
Chapter 11 upon declaration of the U.S. Bankruptcy Court for the
District of Delaware the effectiveness of their Third Amended
Joint Plan of Liquidation on Dec. 4, 2007.
The Liquidating Plan, which was co-filed by the Official
Committee of Unsecured Creditors in the Debtors' Chapter 11
cases, was confirmed by the Court on Nov. 15, finding that it
satisfies all the requirements under Section 1129(a) of the
Bankruptcy Code and complies with other applicable provisions.
Curtis R. Smith, the newly appointed Plan Administrator pursuant
to the Confirmation Order, states that creditors holding claims
against the Debtors' estates will be entitled to receive
distributions in accordance with the terms of the Plan, to the
extent that the claims are allowed.
Any request for allowance of Administrative Claims will be filed
no later than Jan. 3, 2008, with objections to be filed on or
before February 4. In addition, all professional fee requests
must be filed and served on the Debtors' counsel for final
allowance and reimbursement on or before January 18.
Furthermore, any entity asserting a claim against the Debtors'
estates arising from the rejection of the entity's executory
contract or unexpired lease with the Debtors must file a proof
of claim by Jan. 3, to be sent to Epiq Bankruptcy Solutions,
LLC, 757 Third Avenue, 3rd Floor, in New York. Unless otherwise
ordered by the Court, all Claims arising from the rejection of
executory contracts or unexpired leases will be treated as
Unsecured Claims against the Reorganized Debtors, as the case
may be under the Plan.
On the Effective Date, the Creditors Committee will dissolve
automatically, and its members will be deemed relieved of all of
their prospective duties and obligations in connection with the
Reorganized Debtors' cases or the Plan and its implementation.
In addition, the Creditors Committee will be reconstituted as
the Post-Confirmation Committee, with these members:
* Random House, Inc.,
* Hachette Book Group USA, Inc.,
* Harper Collins Publishers,
* Penguin Group, and
* Workman Publishing Co.
The bylaws and and the fiduciary duties adopted by the Creditors
Committee before the Effective Date will apply to the Post-
Confirmation Committee. Also, the new committee will have the
right to terminate the Plan Administrator with or without cause
and to then appoint a successor Plan Administrator.
About Advanced Marketing
Based in San Diego, Calif., Advanced Marketing Services, Inc.
-- http://www.advmkt.com/-- provides customized merchandising,
wholesaling, distribution and publishing services, currently
primarily to the book industry. The company has operations in
the U.S., Mexico, the United Kingdom and Australia and employs
approximately 1,200 people Worldwide.
The company and its two affiliates, Publishers Group
Incorporated and Publishers Group West Incorporated filed for
chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos.
06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K.
Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers,
LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq.,
Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards,
Layton & Finger, P.A., represent the Debtors as Local Counsel.
Lowenstein Sandler PC represents the Official Committee of
Unsecured Creditors. In schedules filed with the Court,
Advanced Marketing disclosed total assets of US$213,384,791 and
total debts of US$216,608,357. Publishers Group West disclosed
total assets of US$39,699,451 and total debts of US$83,272,493.
Publishers Group Inc. disclosed zero assets but US$41,514,348 in
liabilities.
On Aug. 24, 2007, the Debtors' exclusive period to file a
chapter 11 plan expired. On the same date, the Debtors and
Creditors Committee filed a Plan & Disclosure Statement. On
September 26, the Court approved the adequacy of the Disclosure
Statement explaining the Second Amended Plan. On Nov. 13, 2007,
the Debtors filed a Third Amended Plan and the Court confirmed
that plan on Nov. 15. (Advanced Marketing Bankruptcy News,
Issue No. 25; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
AMSCAN HOLDINGS: Moody's Junks Rating on US$175-Mln Secured Loan
----------------------------------------------------------------
Moody's Investors Service has confirmed the ratings on Amscan
Holdings, Inc's secured revolving credit facility at Ba3 (LGD 2,
29%), secured term loan at B1 (LGD 3, 35%), the 8.75% senior
subordinated notes (2014) at Caa1 (LGD 5, 87%), and the
corporate family rating at B2. Review of the ratings was
prompted by the pending purchase of Factory Card & Party Outlet
for total consideration of US$83 million. The revolving credit
facility was upsized to US$250 million from US$200 million as
part of financing the transaction. The confirmation of the
rating reflects Moody's opinion that the company will quickly
obtain meaningful post-merger operating efficiencies at the
newly-acquired stores and that the expected modest deterioration
in credit metrics will be a temporary phenomenon. This rating
action concludes the review that commenced on Sept. 24, 2007.
Ratings confirmed are:
-- US$250 million secured revolving credit facility at Ba3
(LGD 2, 29%);
-- US$375 million secured term loan at B1 (LGD 3, 35%).
-- US$175 million 8.75% senior subordinated notes (2014) at
Caa1 (LGD 5, 87%);
-- Corporate family rating at B2;
-- Probability of default rating at B2.
Moody's does not rate the US$50 million bank loan of Party City
Franchise Group LLC.
The corporate family rating of B2 balances certain strong
qualitative rating drivers with important quantitative
attributes that are solidly non-investment grade. In
particular, driving down the ratings are the high leverage, low
fixed charge coverage, and limited free cash flow. Also
constraining the ratings are the company's relatively small size
and aggressive financial policy, in which a considerable portion
of discretionary cash flow is invested in growth. Partially
offsetting these risks are Moody's expectation that going
forward the company will use some discretionary cash flow to
repay debt ahead of schedule, Amscan's leading position in the
narrow market of decorative party goods, and the diversity of
wholesale and retail revenue. Amscan Holdings and Party City
are financed separately without cross-guarantees between the
two. Moody's does not rate the US$50 million bank loan of Party
City, but for analytic purposes Moody's considers it as
effectively part of Amscan.
Headquartered in Elmsford, New York, Amscan Holdings Inc. makes
more than 400 specially designed ensembles of party accessories
and novelties, including balloons, invitations, pinatas,
stationery, and tableware. Amscan sells to more than 40,000
retail outlets worldwide, mainly party goods superstores, mass
merchandisers, and other distributors. Party City accounted for
about 13% of sales before the firm bought it in 2005. Amscan
itself makes party items (which bring in about 60% of sales) and
buys the rest from other manufacturers, primarily in Asia. It
has production and distribution facilities in Asia, Australia,
Europe, and North America. Berkshire Partners and Weston
Presidio are Amscan's principal owners. The company has a
wholly owned metallic balloon distribution operations located in
Mexico.
AVNET INC: Unit Inks European Franchise Deal with Maxim
-------------------------------------------------------
Avnet Electronics Marketing EMEA, a part of Avnet, Inc., has
signed a pan-European franchise agreement with Maxim Integrated
Products, one of the World's leading manufacturers of analog
components. The agreement is an extension of an existing
relationship between Maxim and Avnet Memec and is effective
immediately.
To capitalise on the full strength of the Avnet distribution
network in Europe, Maxim has granted Avnet a twin franchise
agreement for Avnet Memec and for Silica to cover the entire
breadth of the distribution market and Avnet's service
offerings, from design chain to supply chain management.
As part of the global agreement, Maxim anticipates some
reorganization and consolidation of its existing distribution
network in North America as well as in Europe. However, Avnet
Electronics Marketing, more specifically two of its business
units -- Avnet Memec and Silica -- are allowed to start trading
as of now. Avnet Memec, who already has a distribution agreement
with Maxim in parts of Europe, will start trading on the
expanded franchise immediately, and Silica will commence trading
Maxim products by the beginning of February 2008.
Walter Sangalli, Managing Director of Maxim Integrated Products
in Europe, said: "Sharing our franchise between the highly
design-driven specialist distributor Avnet Memec and the
broadline semiconductor specialist Silica is in our eyes the
best solution to fully penetrate the European analog market and
win more analog sockets and mass market opportunities."
Patrick Zammit, President of Avnet Electronics Marketing EMEA,
commented: "With Maxim, Silica will complement its analog
product offering and Avnet Memec will add to its line card a
worldwide leader in Analog products. Maxim technologies and
products will strengthen the quality of Silica and Avnet Memec
analog solution offering to customers' design engineers."
Miguel Fernandez, President of Silica, concluded that, "Silica
and Avnet Memec are very complementary in their approach to the
market. Silica will bring to Maxim a strong sales force across
Europe with specialised engineering know-how in analog
application. Our strength is that of a specialised broadliner
with enough critical mass to also drive additional volume
business with standard analog products."
Steve Haynes, President of Avnet Memec, commented: "In our
existing relationship with Maxim in Southern Europe, we have
gained vast technical and commercial experience with the line
and its extremely competitive and innovative technologies. As
we are predominantly design-driven, our focus will be to create
new sockets for Maxim products in our strong application areas.
Our technically oriented sales force and our field application
team will make sure that our customers will benefit clearly from
this world leading supplier."
The analog components market in Europe is huge, and the
distribution part according to DMASS is in excess of 1.3 Billion
Euro. As a major player in that market, Maxim offers a multi-
million Euro opportunity. Avnet EM EMEA is one of the biggest
players in that market and has franchise agreement with most of
the major manufacturers. Patrick Zammit: "We regard Maxim as a
complement to our vast portfolio of analog components and a
great opportunity for our customers to choose leading technology
from a renowned supplier."
About Avnet Electronics Marketing EMEA
Avnet Electronics Marketing EMEA, a part of Avnet Electronics
Marketing, is a group of highly focused distribution business
units (speedboats), concentrating on special market segments,
franchise partners or technology areas. The group includes EBV
Elektronik, Silica, Avnet Memec, Avnet Time, Avnet Israel and
Avnet Kopp. The distribution business units are supported by
Avnet Logistics, which operates warehouses in Poing (Germany)
and Tongeren (Belgium).
About Avnet Electronics Marketing
Avnet Electronics Marketing -- http://www.em.avnet.com/-- is an
operating group of Phoenix-based Avnet, Inc. (NYSE:AVT), a
Fortune 500 company. Avnet Electronics Marketing serves
electronic original equipment manufacturers (EOEMs) and
electronic manufacturing services (EMS) providers in 73
countries, distributing electronic components from leading
manufacturers and providing associated design-chain and supply-
chain services.
About Silica
SILICA -- http://www.silica.com./-- a division of Avnet
Electronics Marketing EMEA (Europe, Middle-East, Africa), is a
highly specialised semiconductor distributor. SILICA operates
37 branch offices throughout Europe and provides customers with
a broad portfolio of semiconductor products from 23 leading
vendors along with in-depth technical support and the full set
of logistics and value added services.
About Avnet Memec
Avnet Memec -- http://www.avnet-memec.eu/-- an independent
business unit of Avnet Electronics Marketing EMEA, is a highly
specialised semiconductor distributor, operating on a pan-
European basis and employing a significant number of engineers
to support customers' design efforts. Avnet Memec specialises in
highly innovative suppliers and technologies, which will help a
variety of customers to differentiate their designs. Its area
of specialisation extends from Analog and Microcontrollers to
RF, Datacom and Networking. The business unit operates out of
30 offices in 17 European countries and represents major
semiconductor franchises on a pan-European basis. Its many major
supplier partners include Cirrus Logic, Lattice, Marvell, NEC,
Silicon Laboratories.
About Avnet Inc.
Headquartered in Phoenix, Arizona, Avnet, Inc.
-- http://www.avnet.com/-- distributes electronic components
and computer products, primarily for industrial customers. It
has operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, and Sweden,
Brazil, Mexico and Puerto Rico.
* * *
Moody's Investors Service affirmed Avnet's Ba1 corporate family
long-term debt ratings in March 2007. Moody's said the outlook
is positive.
EL POLLO LOCO: Court Decision Prompts S&P's Negative CreditWatch
----------------------------------------------------------------
Standard & Poor's Ratings Services has placed its ratings on the
El Pollo Loco Inc., including the 'B-' corporate credit rating,
on CreditWatch with negative implications.
This action follows a decision by the United States District
Court in Texas in the trademark dispute between El Pollo Loco
S.A. de C.V. (El Pollo Loco-Mexico) and El Pollo Loco Inc. in
which the court awarded El Pollo Loco-Mexico damages of US$20.3
million. El Pollo Loco announced its intentions to appeal the
ruling, but the company would likely have to post collateral for
bond to the approximate amount of the damages during the appeal
process, which could greatly limit its liquidity position. At
the end of the company's third quarter on Sept. 30, 2007, El
Pollo Loco had US$6.1 million in cash and US$17.4 million of
available borrowings on its US$25 million revolving credit
facility. This facility also has a US$15 million LOC sub-limit
and as of Sept. 30, 2007, available LOC was US$7.4 million.
"Therefore, if El Pollo Loco needed to post a LOC as collateral,
it would need to procure alternative forms of financing in the
very near term," said S&P's credit analyst Charles Pinson-Rose.
El Pollo Loco -- http://www.elpolloloco.com/-- pronounced "L
Po-yo Lo-co" and Spanish for "The Crazy Chicken," is the United
States' leading quick-service restaurant chain specializing in
flame-grilled chicken and Mexican-inspired entrees. Founded in
Guasave, Mexico, in 1975, El Pollo Loco's long-term success
stems from the unique preparation of its award-winning "pollo"
-- fresh chicken marinated in a special recipe of herbs, spices
and citrus juices passed down from the founding family.
EPICORE SOFTWARE: Moody's Ups Ba1 Rating on US$100-Mln Sr. Loan
---------------------------------------------------------------
Moody's Investors Service has affirmed Epicor Software
Corporation's B1 corporate family rating, SGL-1 liquidity
assessment, and stable outlook. Additionally, Moody's upgraded
the company's US$100 million senior secured revolving credit
facility to Ba1 from Ba3. The upgrade to the individual debt
rating was determined using Moody's Loss Given Default
Methodology and reflects the company's capital structure post
the unrated US$230 million 2.375% convertible senior unsecured
note offering. A portion of the proceeds from the convertible
note offering were utilized to repay the remaining balance on
the company's US$100 million senior secured term loan.
Ratings affirmed:
-- Corporate Family Rating at B1
-- SGL-1
Ratings upgraded:
-- Probability of Default Rating to B1 from B2
-- US$100 million Senior Secured Revolving Credit Facility due
2009 to Ba1, LGD1 (8%) from Ba3, LGD2 (27%)
Ratings withdrawn:
-- US$100 million Senior Secured First Lien due 2012 rated
Ba3, LGD2 (27%)
The outlook is stable.
Epicor Software's B1 corporate family rating was first assigned
in March 2006 in conjunction with the company's efforts to
refinance its acquisition of CRS Retail Systems, Inc., its
largest acquisition to date. Since that time, the company has
successfully integrated CRS Retail, significantly grown Moody's
adjusted cash from operations and free cash flow levels to US$64
million and US$49 million respectively (for last twelve months
as of Sept. 30, 2007), and experienced double digit, organic
software growth rates on average over the past six quarters.
The B1 rating reflects the company's strong market position
within several key mid-market vertical markets, reasonably
strong credit metrics and stable revenue and cash generating
capabilities. Although the company's aggregate performance
since the CRS acquisition may suggest a higher rating, the
company's rating is constrained by management's potential
acquisition appetite, potential cyclicality of the business,
flattening license revenues in the second and third quarter of
2007, and continued competition from much larger, well
capitalized software firms such as SAP and Oracle.
The company's recent convertible debt offering and subsequent
refinancing of its bank term loan moderately increased leverage
to greater than 3.0 Moody's adjusted debt to EBITDA for last
twelve months as of Sept. 30, 2007. On a net debt basis
however, leverage was less than 1.0. The remaining proceeds of
the convertible offering post the refinancing of the bank term
loan contributed to cash balances of approximately US$215
million at end of the third quarter. These funds are likely to
be utilized by management to finance acquisitions.
Headquartered in Irvine, California, Epicor Software Corporation
-- http://www.epicor.com/www/-- is a provider of enterprise
resource planning, customer relationship management, and supply
chain management software and solutions to mid-market companies
worldwide. Epicor Software has worldwide locations in China,
Australia, Canada, Germany, Hong Kong, Indonesia, Italy, Japan,
Korea, Malaysia, Mexico, Singapore, Taiwan, and the United
Kingdom, among others.
GRUPO GIGANTE: Selling 206 Stores to Organizacion Soriana
---------------------------------------------------------
Grupo Gigante would sell its 199 Mexican stores and seven Los
Angeles units to Mexican retailer Organizacion Soriana SAB, The
Associated Press reports, citing Organizacion Soriana.
Reuters relates that Grupo Gigante had recently disclosed that
it wanted to sell some of its business.
The AP notes that the stores Grupo Gigante would be selling
operate under these names:
-- Gigante,
-- Bodega Gigante,
-- Super G, and
-- Gigante USA.
Organizacion Soriana told Reuters that it had an accord to
acquire the operations of the stores, which are about 75% of
Grupo Gigante's existing stores.
According to the AP, the planned sale caused the Mexican Stock
Exchange suspended the trading in Grupo Gigante's shares last
week until the company disclosed information on the accord with
Organizacion Soriana.
An agreement between Grupo Gigante and Organizacion Soriana
needs authorization from the Federal Competition Commission of
Mexico, the AP says.
Organizacion Soriana said in a filing with the Mexican Stock
Exchange that once approval is secured, the agreement would
include:
-- 12 distribution centers,
-- software,
-- information technology systems, and
-- the Grupo Gigante stores' inventory.
Organizacion Soriana told the AP that its agreement with Grupo
Gigante would grant it full access to the Mexican market, where
Grupo Gigante has 47 stores. The accord would also let it
increase its "floor space" by 47%.
About Organizacion Soriana
Organizacion Soriana S.A. de C.V. operates multi-format stores,
selling food items, clothing, general merchandise, healthcare
products and basic services on a wholesale and retail basis.
The company has 234 stores located in 112 major cities across 29
states in Mexico, it has seven distribution centers and is
headquartered in the city of Monterrey, Nuevo Leon. It offers a
Customer Loyalty Program, which has enabled Soriana to set up
databases to support its Customer Relations Management program,
which is designed to better understand its customers' needs and
target its promotional offers. It offers services, such as
funds transfer from the United States to Mexico, consumer credit
for customers without bank accounts, a store credit card with
special benefits for holders, electronic food coupons to replace
the traditional paper ones, Monedero del Aprecio to accumulate
discounts and home shopping delivery.
About Grupo Gigante
With over 600 units in Mexico, Grupo Gigante, S.A. de C.V., is a
public Mexican trade company, which operates in the Mexican
Stock Market -- Bolsa Mexicana de Valores. Through its
subsidiaries, Gigante has developed leading chains of
supermarkets, family restaurants, and specialized commerce, for
43 years. Its saubsidiaries include 'Gigante', which contains
formats including: 'Gigante' (Hypermarkets), 'Super Gigante'
(Supermarkets), 'Super Maz' and 'Bodega' (Warehouses), all of
them supermarket chains, as well as 'Cafeterias Toks, S.A. de
C.V.,' a specialized family restaurant chain. With its
partners, Grupo Gigante has also established joint ventures,
developing Office Depot de Mexico, S.A. de C.V., a Mexican
leader chain store of office and school supplies, and Radio
Shack de Mexico, S.A. de C.V., an exclusive format with presence
throughout the Mexican Republic, that offers a wide assortment
of electronic equipment and accessories.
* * *
As reported on July 13, 2007, Fitch Ratings affirmed the 'BB'
foreign and local currency Issuer Default Ratings of Grupo
Gigante S.A.B. de C.V., as well as the 'BB' rating of Gigante's
US$260 million Senior Notes due 2016. Fitch said the rating
outlook is stable.
GRUPO GIGANTE: Supplements Earlier US$260 Million Tender Offer
--------------------------------------------------------------
Grupo Gigante, S.A.B. de C.V. has announced, in connection with
the previously cash tender offer and consent solicitation for
its outstanding US$260 million 8.75% Senior Notes due 2016, that
it has distributed a Supplement to the Offer to Purchase and
Consent Solicitation Statement dated Nov. 28, 2007. The
Supplement provides additional information on the strategic
transaction that will result in the discontinuation of the
company's supermarket retail business, as well as amends and
provides additional information on how the purchase price for
the Notes will be determined.
Citi is acting as a Dealer Manager for the tender offer and the
consent solicitation. The Depositary and the Information Agent
is Global Bondholder Services Corporation.
Requests for documentation should be directed to Global
Bondholder Services Corporation at (866) 794-2200. Questions
regarding the tender offer and the consent solicitation should
be directed to the Dealer Manager at (800) 558-3745 (toll-free)
or (212) 723-6108 (collect).
About Grupo Gigante
With over 600 units in Mexico, Grupo Gigante, S.A. de C.V., is a
public Mexican trade company, which operates in the Mexican
Stock Market -- Bolsa Mexicana de Valores. Through its
subsidiaries, Gigante has developed leading chains of
supermarkets, family restaurants, and specialized commerce, for
43 years. Its saubsidiaries include 'Gigante', which contains
formats including: 'Gigante' (Hypermarkets), 'Super Gigante'
(Supermarkets), 'Super Maz' and 'Bodega' (Warehouses), all of
them supermarket chains, as well as 'Cafeterias Toks, S.A. de
C.V.,' a specialized family restaurant chain. With its
partners, Grupo Gigante has also established joint ventures,
developing Office Depot de Mexico, S.A. de C.V., a Mexican
leader chain store of office and school supplies, and Radio
Shack de Mexico, S.A. de C.V., an exclusive format with presence
throughout the Mexican Republic, that offers a wide assortment
of electronic equipment and accessories.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Standard & Poor's Ratings Services has placed its
'BB' long-term corporate credit rating on Grupo Gigante S.A.B.
de C.V. and its 'BB' rating on the company's US$260 million
senior notes on CreditWatch with negative implications. Total
debt outstanding was about US$485 million as of Sept. 30, 2007,
on a lease-adjusted basis.
ICONIX BRAND: S&P Assigns BB Rating on US$60 Million Term Loan
--------------------------------------------------------------
Standard & Poor's Ratings Service has assigned its bank loan and
recovery ratings to apparel brand manager and licensor Iconix
Brand Group Inc.'s proposed US$60 million add-on term loan
facility. The add-on was rated 'BB', two notches above the
corporate credit rating, with a '1' recovery rating, indicating
the expectation of very high (90%-100%) recovery in the event of
a default.
At the same time, S&P raised the rating on the existing US$212.5
million loan facility to 'BB', from 'BB-', and revised the
recovery rating to '1' from '2'. "The ratings revision is based
on the additional royalty income stream resulting from the
additional collateral, namely the Royal Velvet, Cannon,
Fieldcrest, Charisma, Mossimo and (pending) Starter brands,"
said S&P's credit analyst Susan Ding.
At the same time, S&P affirmed the 'B+' corporate credit rating
on the company. The outlook is negative. The group had about
US$642.2 million in debt at Sept. 30, 2007.
The ratings on Iconix Brand reflect its participation in the
highly competitive and volatile fashion apparel industry, a high
degree of licensing contract renewal risk, an aggressive
acquisition strategy, and ownership of some brands that require
revitalization. The ratings also incorporate the lack of track
record under its relatively new royalty-based business model.
Partially offsetting these factors is the diversity and strong
recognition of the brands, and the company's high margin, high
cash flow, and royalty income-based business model.
Based in New York City, Iconix Brand Group Inc. (Nasdaq: ICON)
-- http://www.iconixbrand.com/-- owns fashion brands to retail
distribution from the luxury market. The company licenses its
brands to retailers and manufacturers worldwide. The group has
international licenses in Mexico, Japan and the United Kingdom.
KEY ENERGY: Acquires Kings Oil Assets for US$45 Million in Cash
---------------------------------------------------------------
Key Energy Services, Inc. has acquired the well service assets
of Kings Oil Tools. The acquired assets, which are located in
California, include 36 marketed well service rigs, 10 stacked
well service rigs and related support equipment. Management
anticipates that the acquired assets will contribute revenue of
approximately US$36 million in 2008. Total consideration paid
for the transaction was approximately US$45 million in cash.
Commenting on the acquisition, Key Energy Chairperson and Chief
Executive Officer, Dick Alario stated, "We are excited to expand
our presence in California, which today is Key's best performing
division. The region is essentially all oil production and
thus, has been stable for the last several years. We believe
the acquired well service rig assets will allow us to better
meet the needs of our California customer base."
Key Energy Services, Inc. (NYSE: KEG) is the world's largest
rig-based well service company. The company provides oilfield
services including well servicing, pressure pumping, fishing and
rental tools, electric wireline and other oilfield services.
The company has operations in all major onshore oil and gas
producing regions of the continental United States and
internationally in Argentina and Mexico.
* * *
As reported in the Troubled Company Reporter on Nov. 7, 2007,
Standard & Poor's Ratings Services assigned its 'B+' corporate
credit rating and stable outlook to well-servicing company Key
Energy Services Inc. At the same time, S&P assigned a 'B'
rating to the company's proposed US$400 million senior notes due
2017.
WENDY'S INTERNATIONAL: Hiring for New Chief Marketing Officer
-------------------------------------------------------------
Wendy's International Inc. is conducting an aggressive national
search for a new Chief Marketing Officer to replace Ian Rowden,
who is resigning as CMO to return to his native Australia for
personal reasons.
Over the past six months, Wendy's has accelerated its focus on
improving brand recognition, particularly among younger
consumers, with its "That's Right" campaign featuring its iconic
red wig.
Moving forward, the company intends to capitalize on the
momentum generated from the campaign to accelerate same-store
sales and further improve profits at every restaurant in the
Wendy's system.
"Ian was instrumental in re-awakening the Wendy's brand and
driving innovation, and he has agreed to work with me to help
transition marketing as we search for our next CMO," said Chief
Executive Officer and President Kerrii Anderson. "We wish Ian
and his family well in the future."
"We will take the success of our 'That's Right' campaign and
expand it to include more back-to-basics messages that are at
the heart of Wendy's positioning - quality, fresh food,
innovation and a great consumer experience," said Mr. Anderson.
"We will evolve our marketing efforts to drive sales and
resonate more powerfully with our customers, franchisees and
employees."
Wendy's will continue to work with Saatchi and Saatchi and
kirshenbaum bond to develop the evolution of its marketing
campaign. The campaign will continue to be an important element
of the company's strategy to revitalize the Wendy's brand and
build sales and profit momentum.
"There is a great deal of work ahead of us," said Mr. Anderson.
"We've delivered six consecutive quarters of positive same-store
sales and significant profit improvement at the restaurant and
corporate level. That said, our store economics are still not
where they need to be. We have more opportunity to drive sales,
innovate with our superior quality positioning and further
improve restaurant operations. Our strategic plan, which we
launched a year ago, put a strong foundation in place. Phase 2
of our strategic plan, launched this fall, is laser-focused on
Doing What's Right for Our Customers. This will be clearly
articulated in every aspect of our marketing."
Paul Kershisnik, senior vice president of marketing strategy and
innovation, and Bob Holtcamp, vice president of brand
management, will lead Wendy's marketing on an interim basis and
report directly to Mr. Anderson.
Mr. Kershisnik is responsible for research and development,
strategic insights and innovation. His 21-year career includes
positions with some of the world's best-known consumer brands,
including Pizza Hut/PepsiCo, General Mills and Sprint. Most
recently, he served as Vice President of New Product Innovations
and Research & Development for Mrs. Fields Famous Brands in Salt
Lake City. Mr. Kershisnik holds an M.B.A. from Brigham Young
University and a B.S. from the University of Utah.
Mr. Holtcamp will continue to manage Wendy's brand group, our
new product-driven menu strategy and the consumer-driven
restaurant experience. He will also continue to manage the
creative and messaging strategy with our advertising agencies,
and he will oversee field marketing. Before joining Wendy's,
Mr. Holtcamp worked for Aurora Foods' Van de Kamp seafood brand,
Mrs. Paul's Seafood, Miller Brewing Company and held account
executive roles at various advertising agencies. Mr. Holtcamp
holds an M.B.A. from Washington University and a B.A. from
University of Illinois.
About Wendy's International
Headquartered in Dublin, Ohio, Wendy's International Inc.
(NYSE:WEN) -- http://www.wendysintl.com/-- and its subsidiaries
operate, develop, and franchise a system of quick service and
fast casual restaurants in the United States, Canada, Mexico,
Argentina, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Moody's Investors Service lowered all ratings of
Wendy's International, Inc. and placed all ratings on review for
further possible downgrade. Affected ratings include the
company's Ba2 corporate family rating which was lowered to Ba3
and its (P)B1 preferred stock shelf rating which was lowered to
(P)B2.
Additionally, Standard & Poor's Ratings Services lowered its
corporate credit and senior unsecured debt ratings on Wendy's
International Inc. to 'BB-' from 'BB+'. All ratings remain on
CreditWatch with negative implications, where they were placed
on April 26, 2007.
Headquartered in Dublin, Ohio, Wendy's International Inc.
(NYSE:WEN) -- http://www.wendysintl.com/-- and its subsidiaries
operate, develop, and franchise a system of quick service and
fast casual restaurants in the United States, Canada, Mexico,
Argentina, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Moody's Investors Service lowered all ratings of
Wendy's International, Inc. and placed all ratings on review for
further possible downgrade. Affected ratings include the
company's Ba2 corporate family rating which was lowered to Ba3
and its (P)B1 preferred stock shelf rating which was lowered to
(P)B2.
Additionally, Standard & Poor's Ratings Services lowered its
corporate credit and senior unsecured debt ratings on Wendy's
International Inc. to 'BB-' from 'BB+'. All ratings remain on
CreditWatch with negative implications, where they were placed
on April 26, 2007.
=================
N I C A R A G U A
=================
* NICARAGUA: Gets US$32.7MM Loan for Electricity System Project
---------------------------------------------------------------
The Inter-American Development Bank has approved a US$32.7
million loan for a wide-ranging investment program to strengthen
Nicaragua's electricity system.
The IDB financing will be supplemented with loans totaling
US$40.8 million from the Central American Bank for Economic
Integration and the European Investment Bank. Nicaragua will
invest US$4.8 million in the program.
The Nicaraguan Energy and Mines Ministry will execute the
program in coordination with the ENATREL national power
transmission company and the HIDROGESA hydro generation company,
an affiliate of the ENEL national electricity company.
The IDB loan will principally finance investments in power
transmission and transformation needed to ensure service quality
and reliability. It will also support a pilot project involving
cooperation between the public and private sectors to regularize
electricity services in poor neighborhoods, reduce losses and
foster a culture of payment for service.
The IDB could eventually grant US$40.2 million in additional
financing for the program, which will include strengthening and
expanding ENATREL's transmission network and rehabilitating the
Centroamerica-Santa Barbara hydroelectric complex, HIDROGESA's
main generators.
The investments financed under this program will improve the
supply of electricity for residential and commercial clients.
The program will also lay the foundations for the sustainable
development of Nicaragua's electricity sector in the medium
term, creating better conditions and incentives for fresh
investments in power generation.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
* NICARAGUA: President Ortega Wants Oil Import Nationalized
-----------------------------------------------------------
Nicaraguan President Daniel Ortega wants the importation of oil
to be nationalized. Subsequently, the national leader has asked
his Cabinet to come up with a draft on how the process will be
done, the Associated Press reports.
Oil importation in the country is largely handled by Esso
Standard Oil, the local unit of ExxonMobil. The company's
storage terminal was seized in August by the government after a
judge declared that the company owes US$3 million in back taxes.
AP relates that the terminal was eventually returned to Esso
after state-owned company, Petroleos de Nicaragua said it
doesn't have the capacity to store oil from Venezuela.
Nicaragua is facing energy crisis resulting to blackouts.
According to President Ortega, Esso is not cooperating in talks
with the government on how to solve the energy problem, AP says.
The private business sector in the country looks at the
nationalization plan as something negative.
"It makes clear that, at any moment, the government could
nationalize any activity it sees in its interest," Jose Adan
Aguerri, president of the Superior Council for Private Business,
told AP.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
===============
P A R A G U A Y
===============
* PARAGUAY: Inks Foundation Act; Launches Bank of the South
-----------------------------------------------------------
The national leaders of Argentina, Bolivia, Brazil, Ecuador,
Paraguay and Venezuela have launched Sunday the new Banco del
Sur development bank, the Financial Times reports.
The bank's launching was initially set for June 26 but was moved
due to capitalization issues.
According to the FT, the bank has about US$7 billion in capital,
which came from the founding members. Colombia and Chile has
not entered the venture.
The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the International
Monetary Fund and the World Bank, on much lower rates and better
financing conditions.
Critics called the bank a waste of effort given the established
presence of the institutions, like the IMF and the Word Bank,
which it wants to compete with.
The finer details of the services that the bank will be
providing still need to be ironed out by the finance ministers
of the countries involved. The ministers have two months to
translate into operations what have been agreed on paper, the FT
says.
* * *
Moody's assigned these ratings on Paraguay:
-- CC LT Foreign Bank Deposit, Caa2
-- CC LT Foreign Currency Debt, Caa1
-- CC ST Foreign Bank Deposit, NP
-- CC ST Foreign Currency Debt, NP
-- LC Currency Issue
Moody's have placed the rating under review for likely upgrade.
=====================
P U E R T O R I C O
=====================
BIOVAIL CORP: Lloyd Segal Joins Board of Directors
--------------------------------------------------
Biovail Corporation has disclosed that Canadian pharmaceutical
industry veteran Lloyd M. Segal, Chief Executive Officer of
Thallion Pharmaceuticals Inc. of Montreal, has been appointed to
Biovail's Board of Directors.
Mr. Segal's appointment is effective immediately.
"We're delighted to welcome Lloyd Segal to Biovail's Board of
Directors," said Dr. Douglas Squires, Interim Chairman of the
Board and the company's CEO. "Mr. Segal's appointment provides
pharmaceutical industry expertise upon which both the Board, and
the Company's management team, can draw as Biovail moves through
the next phase of its development."
Mr. Segal served as President and CEO of Caprion Pharmaceuticals
of Montreal from 1998 until its merger earlier this year with
Ecopia BioSciences to form Thallion Pharmaceutials, a
biotechnology company focused on the development of new
treatments for underserved markets in the areas of oncology and
infectious disease. He was previously a management consultant
with McKinsey & Co., and President and CEO of Advanced
Bioconcept Ltd., which was sold to NEN Life Sciences (now
Perkin-Elmer) in 1998.
Mr. Segal is currently a member of the Board of Directors at GBC
North American Growth Fund, Inc., one of Canada's leading
growth-oriented mutual funds. He is also a member of the
Brandeis University Science Advisory Council. Previously, Mr.
Segal was a member of the Board of Directors of BIOTECanada,
Canada's national biotechnology industry association. He has
also served on the boards of both TSX and NASDAQ-listed public
companies, and privately held companies in the health-care
industry.
Mr. Segal received his Masters Degree in Business Administration
from Harvard Business School in Cambridge, MA. He also holds a
Bachelor of Arts degree in Politics from Brandeis University in
Waltham.
Biovail Corp. -- http://www.biovail.com/-- is a specialty
pharmaceutical company, engaged in the formulation, clinical
testing, registration, manufacture and commercialization of
pharmaceutical products utilizing advanced drug-delivery
technologies.
Biovail operates R&D, manufacturing and clinical research
facilities in the U.S., Canada, Puerto Rico and Ireland. It
markets its products directly in North American through its
marketing divisions Biovail Pharmaceuticals Inc. and Biovail
Pharmaceuticals Canada.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Standard & Poor's Ratings Services has lowered
its long-term corporate credit rating on Biovail Corp. to 'BB'
from 'BB+'. At the same time, S&P affirmed the 'BBB-' senior
secured debt rating, while the recovery rating remains unchanged
at '1', indicating an expectation of very high (90%-100%)
recovery in the event of a payment default. S&P said the
outlook is stable.
COMPUSA: Acquired by Gordon Bros.; Winds Down Retail Operations
---------------------------------------------------------------
Gordon Brothers Group LLC has acquired CompUSA. Gordon Brothers
will initiate an orderly wind-down of CompUSA's retail store
operations.
The restructuring firm is engaged in discussions with various
parties regarding the sale of certain assets. CompUSA's 103
retail stores will remain open and staffed during the holiday
season, and will offer consumers bargains on computer and
electronic products as part of store closing sales. Terms of
the transaction were not disclosed.
Active discussions are under way to sell select stores in key
markets as well as the company's highly regarded technical
services business, CompUSA TechPro, and its productive Internet
sales operation, CompUSA.com. CompUSA TechPro and CompUSA.com
will be operated by the company as going concerns until any sale
transactions are closed.
CompUSA will be run by Bill Weinstein, a Principal at Gordon
Brothers Group, acting as Interim President, and by Stephen
Gray, Managing Partner at restructuring firm CRG Partners, who
will serve as Chief Restructuring Officer. Current CEO Roman
Ross will continue to serve the company in an executive advisory
capacity during the transition period.
"An orderly and expedited wind-down and asset sale process is
the best option for CompUSA and its creditors at this juncture,"
said Weinstein. "We are focused on assuring that CompUSA's
creditors, landlords and other key constituents are treated
properly during this process. We are working hard to achieve
the maximum recovery possible for the company's constituents
while also minimizing unnecessary expenses. We will actively
communicate with the various parties and their advisors starting
today, and in the days and weeks ahead."
The firm assisted CompUSA with the prior sale of under-
performing stores.
"We worked long and hard with Gordon Brothers Group to achieve a
business solution that maximizes CompUSA's assets," said Roman
Ross. "Gordon Brothers Group has a breadth of knowledge and
expertise in this area and we take great confidence in their
capabilities."
DJM Realty, a Gordon Brothers Group company that specializes in
real estate disposition and valuations, will assist in assessing
the leases for CompUSA's store locations.
Gordon Brothers, through its affiliate Specialty Equity, LLC, is
working with two experienced advisors who are representing
creditors -- Lawrence Gottlieb of Cooley Godward Kronish LLP for
unsecured creditors, and Jim Carr of Kelley Drye & Warren LLP
for landlords.
About Gordon Brothers Group
Founded in 1903, Gordon Brothers Group --
http://www.gordonbrothers.com/-- is an advisory, restructuring
and investment firm specializing in the retail, consumer
products, real estate and industrial sectors. The firm provides
a wide variety of services to companies at times of growth and
restructuring. Gordon Brothers Group's capabilities include
asset valuations, dispositions and appraisals, real estate
consulting and acquisitions, retail store operations, lending,
equity investments, restructuring and advisory services. The
firm has unparalleled expertise in assisting healthy and
distressed companies in maximizing the value of under-performing
assets and expanding operations through new products and
distribution channels. Gordon Brothers Group's resources
include over 200 professionals and 250 field experts, including
former CEOs, CFOs, merchants and executives in offices
worldwide.
During the past three years, Gordon Brothers Group has appraised
over US$100 billion of assets, managed more than 7,000 stores,
sold more than US$10 billion of inventory and restructured or
sold over 120 million square feet of retail space. In addition,
Gordon Brothers Group currently owns over 1,600 stores through
various portfolio companies.
DJM Realty, Gordon Brothers Group's real estate division,
specializes in real estate dispositions, acquisitions, capital
solutions and valuations. DJM Realty services the world's most
recognizable brands such as Big Lots, Borders, CVS, Pep Boys,
Toys R Us, West Marine and Yum Brands.
About CompUSA
Based in Dallas, Texas, CompUSA -- http://www.compusa.com/-- is
one of the nation's leading retailers and resellers of
technology products and services. CompUSA helps customers
utilize technology through a unique blend of products and highly
knowledgeable sales staff as well as technology support and
service. Founded in 1984, CompUSA currently operates 103 stores
in major metropolitan markets across the continental United
States, Hawaii and Puerto Rico.
CompUSA serves consumer retail, small-to-medium businesses,
corporate, government and education customers. CompUSA's retail
Web site offers an assortment of more than 80,000 products and
the ability to schedule technology services and training
sessions. Businesses may order from a catalog containing more
than 220,000 products as well as select from over 100,000 online
products.
GENESCO INC: Faces Class Action Suit in Tennessee Dist. Court
-------------------------------------------------------------
Dreier LLP has commenced a class action lawsuit in the United
States District Court for the Middle District of Tennessee on
behalf of purchasers of Genesco Inc. common stock during the
period from April 20, 2007, through Nov. 26, 2007, inclusive.
The complaint alleges violations of the federal securities laws,
including Sections 10(b) of the Securities Exchange Act of 1934.
The complaint alleges that as a result of defendants'
representations concerning Genesco's purported success, the
company was seen as an attractive acquisition target for Foot
Locker Inc., which ultimately made an offer. Subsequently,
Finish Line and Headwind Inc., a wholly owned subsidiary of
Finish Line, made an increased offer to purchase the Genesco.
Shortly thereafter, Finish Line and Genesco entered into a
merger agreement. However, when the truth about Genesco's
results began to be revealed to the market, Finish Line
indicated that it would no longer pursue the merger. Then, on
Nov. 26, 2007, Genesco received a subpoena from the Office of
the U.S. Attorney for the Southern District of New York, which
sought documents related to its merger agreement and in
connection with alleged violations of federal fraud statutes.
Upon revelation of this news, Genesco common stock declined
almost 16% on heavy volume, from its closing price of $30.17 on
Nov. 26 to US$25.44 on Nov. 27.
Persons who have acquired Genesco common stock and want to
discuss legal rights, may contact:
Dreier LLP
Attn: Daniel B. Scotti
Email classlaw@dreierllp.com
Tel 800-952-8897
About Genesco Inc.
Headquartered in Nashville, Tennessee, Genesco Inc. (NYSE: GCO)
-- http://www.genesco.com/-- is a specialty retailer of
footwear, headwear and accessories in more than 1,900 retail
stores in the U.S. and Canada, principally under the names
Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy,
Underground Station, Hatworld, Lids, Hat Zone, Cap Factory, Head
Quarters and Cap Connection. The company also sells footwear at
wholesale under its Johnston & Murphy brand and under the
licensed Dockers.
Genesco has operations in Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 6, 2007, Moody's Investors Service downgraded Genesco
Inc.'s corporate family and probability of default ratings to B1
from Ba3 and maintained the review for possible downgrade. In
addition, Moody's downgraded the company's convertible senior
subordinated debentures to B2 from B1.
MUSICLAND HOLDING: Extends Plan Effective Date Until Jan. 31
------------------------------------------------------------
Musicland Holding Corp. and its debtor-affiliates, the Official
Committee of Unsecured Creditors and the current members of the
Informal Committee of Secured Trade Vendors agree that the
deadline set under the Debtors' Second Amended Plan of
Liquidation for:
(a) the Confirmation Order to become a Final Order is extended
until Dec. 31, 2007; and
(b) the occurrence of the Effective Date is extended until
Jan. 31, 2008.
In their stipulation, the parties indicated that at the
Nov. 15, 2007 hearing to consider confirmation of the Debtors'
Plan, the U.S. Bankruptcy Court for the Southern District of New
York had found that the Plan has satisfied the feasibility
requirement under Section 1129 of the Bankruptcy Code.
The Court adjourned the confirmation hearing until
Dec. 11, 2007.
Judge Bernstein commenced hearing to confirm the Debtors' Plan
on Nov. 28, 2006. Judge Bernstein found that all confirmation
requirements had been satisfied other than feasibility and left
the confirmation hearing open to allow the Debtors further time
to satisfy the feasibility requirements.
The Debtors, the Creditors' Committee, the Trade Vendors, and
Wachovia Bank, N.A., are negotiating the final terms resolving
Wachovia's objection to the Plan and the order confirming the
Plan will then be submitted to the Court.
As previously reported, Wachovia objected to the Plan claiming
that its alleged indemnification claim against the Debtors'
estates resulting from a lawsuit brought against Wachovia by
current and former secured trade creditors renders the Plan
unconfirmable.
Wachovia asserted that it has an administrative claim,
potentially in excess of US$25,000,000, arising out of the
Debtors' alleged obligation to indemnify Wachovia against the
claims asserted in the Adversary Complaint filed by the Trade
Creditors against Wachovia pertaining to a revolving loan with
Harris Bank N.A.
On Aug. 27, 2007, the Adversary Complaint filed by the Trade
Creditors was dismissed by the Bankruptcy Court, which held that
Wachovia did not tortuously interfere with the Trade Creditors'
contractual rights or participate in the conversion of the Trade
Creditors' collateral, and that Harris Bank N.A was not unjustly
enriched with the repayment of the US$25,000,000 supplemental
Term Loan.
The Trade Creditors have taken an appeal before the U.S.
District Court of the Southern District of New York of the
Bankruptcy Court's decision.
Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products in the United States and Puerto Rico. The Debtor and
14 of its affiliates filed for chapter 11 protection on
Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James
H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the
Debtors in their restructuring efforts. Mark T. Power, Esq.,
at Hahn & Hessen LLP, represents the Official Committee of
Unsecured Creditors. At March 31, 2007, the Debtors disclosed
US$20,121,000 in total assets and US$321,546,000 in total
liabilities.
On May 12, 2006, the Debtors filed their Joint Plan of
Liquidation with the Court. On Sept. 14, 2006, they filed an
amended Plan and a Second Amended Plan on Oct. 13, 2006. The
Court approved the adequacy of the Amended Disclosure Statement
on Oct. 13, 2006. The hearing to consider confirmation of the
Second Amended Joint Plan started on Nov. 28, 2006. (Musicland
Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
OWENS-ILLINOIS INC: Debt Reduction Cues Fitch to Upgrade Ratings
----------------------------------------------------------------
Fitch Ratings has upgraded Owens-Illinois, Inc.'s Issuer Defualt
Rating to 'B+' following the company's improved operating
results year-to-date, and debt reduction after the sale of its
plastics business. Other ratings within the capital structure
have been changed as follows:
Owens-Illinois, Inc.:
-- Issuer Default Rating to 'B+' from 'B';
-- Senior unsecured notes to 'B-/RR6' from 'B-/RR5';
-- Preferred stock to 'B-/RR6' from 'CCC+'/'RR6'.
Owens Brockway Glass Container Inc.
-- IDR to 'B+' from 'B';
-- Senior secured credit facilities to 'BB+/RR1' from
'BB/RR1';
-- Senior unsecured notes to 'BB/RR2' from 'BB-/RR2';
Owens-Illinois European Group, B.V.
-- Senior unsecured notes to 'BB/RR2' from 'BB-/RR2'.
Fitch has withdrawn this rating:
Owens Brockway Glass Container Inc.
-- Senior secured notes 'BB/RR1'.
The Rating Outlook is Positive. Approximately US$3.6 billion of
debt is affected by the ratings action.
The upgrade of the IDR is based on improved operating
performance year-to-date and the completion of Owens-Illinois'
debt reduction plan, which was executed with the proceeds from
the Plastics divestiture. The company's pricing and operating
initiatives have achieved better than expected results this
year. Profitability has improved with EBITDA margin expansion of
220 basis points from Dec. 31, 2006 to Sept. 30, 2007. Higher
EBITDA has been accompanied by better operating and free cash
flow generation as the company has done a better job of
recovering cost inflation and reducing working capital. Rolling
twelve-month free cash flow has swung US$427 million in three
quarters from a US$64 million loss at Fiscal Year Ended 2006 to
a US$363 million gain LTM Sept. 30, 2007. This is after
unusually high asbestos payments in 2007 with cash payments of
US$226 million so far this year, US$86 million of which were
accelerated payments. The trend in new asbestos claims has not
changed, but the company has sought to accelerate resolution of
existing claims.
The Positive Outlook reflects the improving trend in the
fundamentals of the business, and the company's continued focus
on operating improvements and pricing initiatives, as well as
asset realignment going forward. Further improvement in credit
metrics is likely in 2008 as Fitch anticipates improving cash
flow generation.
Fitch's recovery analysis has been updated to reflect the
reduction of secured debt at Owens Brockway and the reduction in
the estimated asbestos liability factored into the estimated
estate value available for distribution to creditors in a
distressed scenario. The asbestos liability assumption has been
reduced from US$850 million to US$600 million as a result of the
significant payments the company has made and the declining
asbestos liability accounts on the balance sheet. These changes
and the upgrade of the IDR have led to ratings upgrades for the
senior secured bank debt, senior unsecured notes at Owens
Brockway, and the convertible preferred stock. The distribution
of estate value has changed from Fitch's previous analysis, and
leads to recovery estimates consistent with the 'RR2' rating for
the unsecured notes at Owens Brockway and Owens-Illinois
European Group, B.V. and RR6 rating for the senior unsecured
notes at Owens-Illinois, Inc.
The company's ratings continue to be supported by the company's
leading market positions, global footprint, technology
leadership, and long-term customer relationships with large,
stable customers. Ratings concerns remain focused on higher
energy costs, other cost inflation, and to a lesser extent
asbestos liabilities. The company's biggest energy exposure
comes in the form of natural gas. Natural gas prices have been
moderate and less volatile in 2007, but higher prices going
forward are possible. Fuel is another large cost component, as
shipping glass containers is expensive. This cost is likely to
move higher in coming months with the rise in oil prices. The
company's energy risks are somewhat mitigated through the use of
hedging, as well as the global nature of its operations.
Nevertheless, the company faces ongoing inflationary pressures,
which could get worse in 2008.
The company has done a good job in 2007 of emphasizing price
over volume. At some point though, the pricing strategy could
lead to lost volume, a possibility Owens-Illinois fully
anticipates and a sacrifice management is willing to make.
Given the industry's low volume growth this could negatively
affect revenue for the company, accelerating the need for
capacity rationalization.
Owens-Illinois' cash flow is beginning to improve, and if the
company is able to show stabilized operating margins and sustain
the recent trend in better cash generation over the intermediate
term, the current ratings could be reviewed for a possible
upgrade. Credit metrics should continue to improve in 2008, and
further deleveraging is possible through debt reduction and
earnings growth. In 2008, Fitch expects lower cash asbestos
payments, and higher capital spending and other costs as the
company continues certain restructuring initiatives.
The primary ratings constraint in recent years has been limited
or negative free cash flow, coupled with the inability to
recover inflationary costs. With the previous ratings action in
June, Fitch acknowledged the significant debt reduction and
improved balance sheet strength that would result from the
plastics divestiture, as well as management's commitment to
strengthening the balance sheet and credit quality of the firm.
However, cash flows in the core glass operations were not yet
exhibiting the strength expected and Fitch had some concerns
about the EBITDA that would be lost with the sale of the
plastics business (estimated at about US$180 million) although
much of that loss would be offset in cash flows by a reduction
of cash interest expense. However, two additional quarters have
shown material progress on the company's productivity, mix, and
pricing initiatives such that revenues and operating profit lost
with the sale of plastics should largely be made up in the glass
business by the end of 2007, which is much sooner than Fitch
anticipated.
Asbestos litigation remains an ongoing diversion of cash.
Owens-Illinois' strategy in 2007 has been to accelerate
settlement of claims and increase payments (US$226 million YTD
2007 vs. US$163 million Fiscal Year 2006). This is a prudent
use of cash for liability reduction in Fitch's view. Payments
should come down in 2008, but it is possible the company will
direct more cash towards asbestos than funded debt, excluding
current maturities, going forward.
With better operating results, the company's liquidity profile
has strengthened over recent quarters. At Sept. 30, 2007, the
company had over US$1.5 billion of cash and over US$800 million
available under it's revolver. Pro-forma for debt repayments
and discharge in October and November, Fitch estimates the
company's cash and short-term investments would be around US$160
million, with no revolver drawn. Given the company's cash
generation, Fitch estimates year-end cash balances could be
higher than usual, even after additional assumed asbestos
payments of US$90 million in fourth-quarter, and assuming no
additional debt repayments.
Debt repayments due in 2008 consist of about US$250 million of
7.35% notes at the company that mature in May. Amortization of
the company's bank debt has been prepaid through December 2010
and no quarterly payments will be required until 2011. Bank
debt payments consist of: Tranche B (quarterly USD at .25% of
principal); Tranche D (quarterly EUR0.5 million); Tranche A
(AUD3.75 million); and Tranche C (CAD1.725 million). The latter
two tranches were to begin payment in September 2008.
In 2007 the company has paid off US$450 million of 7.75% notes,
due 2011; US$625 million of 8.75% notes, due 2012; and
repurchased or discharged through defeasance US$850 million of
8.875% notes due 2009. These bonds were senior secured
obligations of the Owens-Brockway subsidiary. By year-end,
Owens-Illinois will have about US$3.6 billion of total debt
compared to about US$5.5 billion at Dec. 31, 2006. Fitch
projects a total leverage ratio of about 2.5 by Fiscal Year
Ended 2007 compared to 4.5 at Fiscal Year Ended 2006. EBITDA
interest coverage is expected to improve to around 4.0 by year-
end compared to 2.5 at Fiscal Year Ended 2006.
Based in Perrysburg, Ohio, Owens-Illinois Inc. (NYSE:OI) --
http://www.o-i.com/-- is a manufacturer of packaging products
and glass containers with operations in Europe, North America,
Asia Pacific and South America. The company is also a
manufacturer of healthcare packaging, including plastic
prescription containers and medical devices, and plastic closure
systems, including tamper-evident caps and child-resistant
closures, with operations in the United States, Mexico, Puerto
Rico, Brazil, Hungary, Malaysia and Singapore.
SUNCOM WIRELESS: Shareholders OKs T-Mobile & Tango Merger Plan
--------------------------------------------------------------
SunCom Wireless Holdings, Inc. stockholders have approved, at a
special meeting, the adoption of the Agreement and Plan of
Merger, dated Sept. 16, 2007, by and among SunCom Wireless,
T-Mobile USA, Inc. and Tango Merger Sub, Inc. This proposal
passed with the required majority of the outstanding SunCom
Wireless shares.
Consummation of the merger remains subject to satisfaction of
the conditions contained in the merger agreement, including
without limitation approval of the Federal Communications
Commission, and the merger agreement does not require T-Mobile
to close the transaction before April 15, 2008. The parties are
actively working to obtain the necessary commission approval,
and currently anticipate that the merger will close no later
than April 2008.
About SunCom Wireless
Based in Berwyn, Pennsylvania, SunCom Wireless Holdings Inc.
(NYSE: TPC) (OTC: SWSH.OB) -- http://www.suncom.com/-- offers
digital wireless communications services to more than one
million subscribers in the southeastern United States, Puerto
Rico and the U.S. Virgin Islands. SunCom is committed to
delivering Truth in Wireless by treating customers with respect,
offering simple, straightforward plans and by providing access
to the largest GSM network and the latest technology choices.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 24, 2007, Standard & Poor's Ratings Services has placed
its ratings on SunCom Wireless Holdings Inc., including the 'B-'
corporate credit rating, on CreditWatch with positive
implications.
UNIVISION COMM: Names Tonia O'Connor as Exec. VP for Marketing
--------------------------------------------------------------
Univision Communications Inc. has appointed Tonia O'Connor to
the position of Executive Vice President of Distribution Sales
and Marketing for the Univision Networks, effective
Jan. 2, 2008. In this position, Ms. O'Connor will be
responsible for leading the company's distribution efforts with
cable, satellite and telecommunications operators, and managing
the affiliate relations teams for the Univision and TeleFutura
Network stations and the cable network Galavision. Ms. O'Connor
will be based in New York and report directly to Joe Uva, Chief
Executive Officer of Univision Communications.
"We are delighted to welcome Tonia to the Univision family and
are confident that she will play an integral role in expanding
our relationships with cable, satellite and telco partners
across the country in new and innovative ways," said Mr. Uva.
"She has a keen understanding of the complexities of our
distribution partners' needs, as well as a deep knowledge of the
digital environment and other emerging platforms. Tonia is the
ideal person to help Univision effectively negotiate
retransmission agreements in this rapidly changing industry. I
am confident that her breadth of experience and longstanding
relationships will be invaluable assets to Univision as we build
on our positive momentum and expand our presence as one of the
most powerful forces in the media industry today."
Ms. O'Connor said, "I am thrilled to join Univision and to work
closely with distributors in bringing the country's #1 Spanish-
language media company to their Hispanic customers in creative
and unique ways. Univision has a highly valuable brand and an
unmatched collection of assets with tremendous influence among
its viewers. The Univision audience has a loyalty to the
network like nothing I've ever seen in English-language media.
This loyalty coupled with the fact that the Hispanic population
is the fastest growing segment in the U.S. with rapidly
increasing buying power, unlocks significant opportunity for
Univision and its distribution partners. I look forward to
working with Joe and the talented Univision team to leverage the
Company's uniquely strong position in mutually beneficial ways
with the distribution partners."
Ms. O'Connor joins Univision from Gemstar TV Guide, where she
has spent the past 13 years, most recently as Executive Vice
President, Distribution. Previously, she served as Executive
Vice President, Affiliate Sales and Marketing, and Senior Vice
President of National Accounts. During her tenure at Gemstar TV
Guide she was responsible for negotiating complex technology and
intellectual property agreements as well as programming deals.
She also played an integral role in the growth of Gemstar TV
Guide's networks and defining the strategy of the company. Ms.
O'Connor is a member of Women in Cable and Telecommunications
and enjoys participating in the organization's mentoring program
supporting the advancement of female executives. Ms. O'Connor
graduated as a dual major from Syracuse University with a B.A.
in Broadcast Journalism from the S.I. Newhouse School of Public
Communications and International Relations from the Maxwell
School of Public Citizenship and Affairs.
Headquartered in Los Angeles, Calif., Univision Communications
Inc., (NYSE: UVN) -- http://www.univision.net/-- owns and
operates more than 60 television stations in the U.S. and Puerto
Rico offering a variety of news, sports, and entertainment
programming. The company had about USUS$2.6 billion in debt at
Dec. 31, 2006.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 16, 2007, Fitch Ratings downgrades these ratings:
-- USUS$7.7 billion senior secured bank loans due 2014
'B+/RR3';
-- 3.50% senior secured notes due 2007 to 'B+/RR3' from 'BB';
-- 3.875% senior secured notes due 2008 to 'B+/RR3' from
'BB';
-- 7.85% senior secured notes due 2011 to 'B+/RR3' from 'BB';
-- USUS$500 million second lien term loan due 2009 'B-/RR5';
-- USUS$1.5 billion 9.75%/10.50% senior unsecured notes due
2015 'CCC+/RR6'.
=========================
S A I N T V I N C E N T
=========================
ST. VINCENT: Moody's Assigns Preliminary B1 Sovereign Ratings
-------------------------------------------------------------
Moody's Investors Service has assigned first-ever sovereign
ratings to the eastern Caribbean nation of Saint Vincent and the
Grenadines.
Moody's assigned B1 long-term foreign- and local-currency issuer
ratings to the Government of St. Vincent. The ratings carry a
stable outlook. Short-term sovereign issuer ratings of not
prime were also assigned.
"The ratings balance St. Vincent's relatively heavy debt burden
and highly vulnerable open economy with a history of stable
policy environment and substantial international official
financial support," said Moody's Vice-President/Senior Analyst
Gabriel Torres. "The macroeconomic environment is stable."
He said the government is a member of the Eastern Caribbean
Currency Union, which provides the country with monetary and
external stability and greatly reduces the risk of a confidence
crisis. St. Vincent shares with other Caribbean nations a
history of political stability and general consensus on the
major policy issues.
"Debt has also been falling as a percentage of GDP, but further
reductions would be necessary for the rating to improve," Mr.
Torres said. "The government implemented a new value-added tax
earlier this year, seeking to broaden the tax base, and the
results thus far indicate a boost to revenue."
He said GDP growth this year is expected to average close to 6%,
bolstered by foreign direct investment and general construction
spending. While St. Vincent has had historically low and stable
inflation, the rate has picked up since 2006 and this year
reached 5% due to external price shocks. Remittances from
workers abroad, which, by some estimates, represent over 25% of
GDP, are likely to remain an important supporting factor.
"St. Vincent's geographic position makes it very vulnerable to
hurricanes, which directly impacts tourism and agriculture,
major contributors to the nation's economy," said Mr. Torres.
"Ratings prospects will depend on the government's ability to
improve fiscal flexibility to address inevitable weather-related
shocks."
=================
V E N E Z U E L A
=================
NORTHWEST AIR: Won't Complete Midwest Acquisition by January 31
---------------------------------------------------------------
Northwest Airlines Corp., Midwest Air Group Inc. and TPG Capital
have entered into a timing agreement with the U.S. Department of
Justice, under which the parties have agreed that they will not
close the transaction before Jan. 31, 2008, without the DOJ's
concurrence.
Midwest Air Group anticipates that the actual closing will occur
as soon as practicable consistent with the agreement.
The transaction was approved at a special meeting of Midwest
shareholders on October 30. In addition to anti-trust
approvals, completion of the transaction is subject to
satisfaction of customary closing conditions.
Additionally, Midwest Air Group, parent company of Midwest
Airlines, disclosed that the parties involved in the pending
acquisition of Midwest Air Group by Midwest Air Partners LLC, an
affiliate of TPG Capital, have certified substantial compliance
in response to the request for additional information from the
DOJ under the Hart-Scott-Rodino Antitrust Improvements Act of
1976.
About Midwest Airlines
Midwest Airlines is the subsidiary of Midwest Air Group (AMEX:
MEH)-- http://www.midwestairlines.com/-- features jet service
throughout the United States. Catering to business travelers and
leisure travelers provides passengers with service and onboard
amenities at competitive fares. Both Skyway Airlines Inc. - a
wholly owned subsidiary of Midwest Airlines - and SkyWest
Airlines Inc. operate as Midwest Connect and offer service to
and connections through Midwest Airlines' hubs. Together, the
airlines offer service to more than 50 cities.
About TPG Capital
Headquartered in Fort Worth, Texas, TPG Capital --
http://www.texaspacificgroup.com/-- also known as Texas Pacific
Group, has staked its claim on the buyout frontier. The company
does not get involved in the day-to-day operations of the
companies it invests, it usually holds onto an investment.
Notable holdings include Neiman Marcus, Ducati, Lenovo, SunGard
Data Systems, and Aleris International.
About Northwest Airlines
Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/--
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about
1,400 daily departures. Northwest is a member of SkyTeam, an
airline alliance that offers customers one of the world's most
extensive global networks. Northwest and its travel partners
serve more than 1000 cities in excess of 160 countries on six
continents. Northwest and its travel partners serve more than
1000 cities in excess of 160 countries on six continents,
including Italy, Spain, Japan, China, Venezuela and Argentina.
The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington represent the
Debtors in their restructuring efforts. The Official Committee
of Unsecured Creditors has retained Akin Gump Strauss Hauer &
Feld LLP as its bankruptcy counsel in the Debtors' chapter 11
cases.
When the Debtors filed for bankruptcy, they listed
$14.4 billion in total assets and $17.9 billion in total debts.
On Jan. 12, 2007 the Debtors filed with the Court their
Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an
Amended Plan & Disclosure Statement. The Court approved the
adequacy of the Debtors' Disclosure Statement on March 26, 2007.
On May 21, 2007, the Court confirmed the Debtors' Plan. The
Plan took effect May 31, 2007.
* * *
Moody's Investor Services placed Northwest Airlines Corp.'s long
term corporate family and probability of default ratings at 'B1'
in May 2007. The ratings still hold to date with a stable
outlook.
PETROLEOS DE VENEZUELA: Forming Joint Venture for Guara & Diez
--------------------------------------------------------------
A Venezuelan state-owned oil firm Petroleos de Venezuela SA
spokesperson told Business News Americas that it will form
another joint venture with Belarusian counterpart Belarusneft to
conduct exploration and production on the Guara Este block in
Anzoategui and the Diez Lago Medio block in Zulia.
As reported in the Troubled Company Reporter-Latin America on
Dec. 7, 2007, Petroleos de Venezuela formed a joint venture with
Belarusneft to conduct seismic work throughout Venezuela.
Sesmica Bielovenezolana JV will be Petroleos de Venezuela's
first proprietary seismic company. It will continue the works
that were formerly contracted out to transnational firms.
A Petroleos de Venezuela spokesperson told BNamericas that works
for the project would start within the year.
Venezuelan energy and mining ministry said in a statement that
Petroleos de Venezuela's unit Corporacion Venezolana del
Petroleo will own 60% of the new joint venture, while
Belarusneft will hold 40%. About US$226 million will be
invested in the joint venture.
Petroleos de Venezuela said in a statement that the firm eyes
about 44.6 million barrels of oil that can be extracted from the
Guara Este block in the next 25 years.
The ministry told BNamericas that the 201-square-kilometer Diez
Lago Medio block can produce about 11,200 barrels per day. The
joint venture will be able to produce about 18,000 barrels per
day.
Crude from the joint venture will be transported to plants in
Belarus at terms "favorable" to Venezuela and Belarus,
BNamericas states, citing Petroleos de Venezuela.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, USUS$2 billion notes due 2027, and US$1 billion notes due
2037.
* VENEZUELA: Launches Banco del Sur; Inks Foundation Act
--------------------------------------------------------
The national leaders of Argentina, Bolivia, Brazil, Ecuador,
Paraguay and Venezuela have launched Sunday the new Banco del
Sur development bank, the Financial Times reports.
The bank's launching was initially set for June 26 but was moved
due to capitalization issues.
According to the FT, the bank has about US$7 billion in capital,
which came from the founding members. Colombia and Chile has
not entered the venture.
The bank, advocated by Venezuelan President Hugo Chavez, will be
established to rival the services offered by the International
Monetary Fund and the World Bank, on much lower rates and better
financing conditions.
Critics called the bank a waste of effort given the established
presence of the institutions, like the IMF and the Word Bank,
which it wants to compete with.
The finer details of the services that the bank will be
providing still need to be ironed out by the finance ministers
of the countries involved. The ministers have two months to
translate into operations what have been agreed on paper, the FT
says.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at
'B'and the Country Ceiling at 'BB-'. Fitch said the outlook on
the ratings remains stable.
* VENEZUELA: Belarus Neft To Operate Three More Oilfields
---------------------------------------------------------
The Venezuelan government has given Belarus' state-oil company
approval to operate three more oil blocks in order to produce
50,000 barrels of oil per day, Matthew Walter at Bloomberg News
reports. Petroleos de Venezuela and Belarus Neft are already in
partnership in Junin I block, which requires a US$120-million
investment to drill nine wells.
The bilateral oil pact was inked Thursday by Presidents Hugo
Chavez and Alexander Lukashenko. Other agreements that the two
leaders agreed on involved deepening military and trade ties,
the same report adds.
"The international media dictatorship... calls him 'Europe's
last dictator,' and me the last dictator of Latin America. Here
we are, the last dictators," President Chavez said, laughing,
according to the Associated Press. "They demonize us ...
(because) we're leading a process of liberating our nations,
uniting our nations."
Both leaders are opponents of the U.S. government, which calls
them tyrants and destabilizing factors.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at
'B'and the Country Ceiling at 'BB-'. Fitch said the outlook on
the ratings remains stable.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2007. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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