/raid1/www/Hosts/bankrupt/TCRLA_Public/080102.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, January 2, 2008, Vol. 9, Issue 1
Headlines
A R G E N T I N A
4DATALINK LATIN: Files for Reorganization in Buenos Aires Court
ALITALIA SPA: Board Selects Air France-KLM as Preferred Buyer
BANCO SANTANDER RIO: Fitch Affirms D Individual Rating
CLUB ATLETICO: Trustee Filing Individual Reports on Feb. 25
EMSEL SRL: Proofs of Claim Verification Deadline Is Feb. 26
EQUITAS MEDICA: Files for Reorganization in Buenos Aires Court
EVOLUCION TEXTIL: Proofs of Claim Verification Ends on March 20
HIPERTECH SA: Trustee Verifies Proofs of Claim Until March 13
LOFTY SA: Proofs of Claim Verification Is Until Feb. 29
PREVENCION Y SEGURIDAD: Files for Reorganization in Buenos Aires
PROFILO SRL: Proofs of Claim Verification Deadline Is March 12
PROYECTOS AUSTRALES: Files for Reorganization in Buenos Aires
RED HAT: Says LatAm Ops Account for Up to 5% of Global Revenues
UDA SA: Proofs of Claim Verification Is Until Feb. 26
XALEX SRL: Files for Reorganization in Buenos Aires Court
YPF SA: S&P Puts BB+ Local Cur. Corp. Rating on CreditWatch
B A H A M A S
ANDREW CORP: CommScope Completes Acquisition for US$2.65 Billion
B E R M U D A
GEORGE FISCHER: Proofs of Claim Filing Is Until Jan. 4
MAGNA RE: Proofs of Claim Filing Deadline Is Jan. 22
MAGNA RE: Sets Final Shareholders Meeting for Jan. 31
MSD SOMERSET: Proofs of Claim Filing Ends on Jan. 4
NAUTILUS LEASING: Proofs of Claim Filing Deadline Is Jan. 11
B O L I V I A
INTERMEC TECH: Names David Jones as VP for Global Services
B R A Z I L
AMAZONIA CELULAR: Moody's Holds B2 Rating on US$120-Mil. Notes
BANCO GMAC: Moody's Downgrades Currency Deposit Ratings to Ba3
BANCO NACIONAL: Investment Prospects Are BRL1.2 Trillion
BANCO NACIONAL: Okays BRL7.79 Bil. in Loans to 13 Hydro Plants
COMMSCOPE INC: Completes Andrew Acquisition for US$2.65 Billion
COMPANHIA ENERGETICA: Closes BRL400MM Non-Convertible Bonds Sale
EVEN CONSTRUTORA: Fitch Puts B+ Issuer Default Ratings
GOL LINHAS: Closes Purchase Option for 121 Boeing Aircraft
RHODIA SA: Restructures Acetow Business in Germany
RHODIA SA: Names Gerard Collette as President of Acetow Arm
SANYO ELECTRIC: Amends Non-Consolidated Results from FY2000-2005
SANYO ELECTRIC: Admits Illegally Paying JPY28-Bil. Dividends
SANYO ELECTRIC: May Be Faced with Fines & Delisting
TELEMIG CELULAR: Moody's Keeps B2 Cur. Rating on US$120MM Notes
* BRAZIL: Petrobras Grants Interest Distribution on Net Equity
C A Y M A N I S L A N D S
ANNOTEC LIMITED: Will Hold Final Meeting Today
ANRO VENTURES: Proofs of Claim Filing Is Until Jan. 8
ASIA PRINTING: Final Shareholders Meeting Is on Jan. 7
EASYJET HAMBURG: Holding Final Shareholders Meeting on Jan. 7
ELKA FUNDING: Holding Final Shareholders Meeting on Jan. 4
FEY INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 8
FEY INVESTMENTS: Holding Final Shareholders Meeting on Jan. 9
HARRIS MCLEAN: Proofs of Claim Filing Deadline Is Jan. 7
MCT RUSSIAN: Proofs of Claim Filing Ends on Jan. 9
MCT RUSSIAN: Sets Final Shareholders Meeting for Jan. 9
PARMALAT SPA: Receives EUR396 Million in Settlement with Banks
C H I L E
FREEPORT-MCMORAN: Declares Dividends on Preferred, Common Stocks
C O L O M B I A
INTERCONEXION ELECTRICA: Buys Betania Substation for COP38 Bil.
D O M I N I C A N R E P U B L I C
GENERAL CABLE: Gregory Kenny Steps Down as President & CEO
E C U A D O R
PETROECUADOR: Armed Forces To Safeguard Hydrocarbons Facilities
PETROECUADOR: Awards Three Fields to Pegaso & Amazonico
G U A T E M A L A
BRITISH AIRWAYS: Finalizes US$4.4-Billion Contract with Boeing
J A M A I C A
CENVEO INC: Inks Definitive Pact to Acquire Rex Corporation
M E X I C O
CINRAM INT'L: Implements Changes to Internal Debt Structure
CINRAM INT'L: Paying December 2007 Distributions on January 15
FEDERAL-MOGUL: Emerges from Bankruptcy Protection in Delaware
HARMAN INT'L: Gary Steel to Serve on Board of Directors
GRUPO MEXICO: Cananea Protest To Last Into First Quarter 2008
UNITED RENTALS: S&P Affirms BB- Corporate Credit Rating
P A R A G U A Y
TELECOM PERSONAL: Launches 3G Services to Five Argentine Cities
P U E R T O R I C O
AVNET INC: Operating Unit Signs Distribution Deal with Zarlink
CARROLS CORP: Sept. 30 Balance Sheet Upside-Down by US$13 Mil.
T R I N I D A D A N D T O B A G O
HERCULES OFFSHORE: Concludes Sale of Assets to Petrex Sudamerica
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Prices Cash Tender Offer for Bonds
PETROLEOS DE VENEZUELA: Reports 26.5B Barrels of Oil in Junin 1
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A R G E N T I N A
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4DATALINK LATIN: Files for Reorganization in Buenos Aires Court
---------------------------------------------------------------
4Datalink Latin America S.R.L. has requested for reorganization
approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow 4Datalink Latin America 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:
4Datalink Latin America S.R.L.
Junin 1596
Buenos Aires, Argentina
ALITALIA SPA: Board Selects Air France-KLM as Preferred Buyer
-------------------------------------------------------------
The Board of Directors of Alitalia S.p.A. met to identify the
party with whom to start exclusive negotiations.
In this context, on the basis of the assessment of the non
binding proposals received on the Dec. 6, 2007, and having
considered the advisors' final recommendations -- Citi as
financial advisor, Roland Berger as industrial advisor and
Grimaldi & Associati as legal advisor -- duly integrated with
the additional information and clarifications subsequently
received by the bidders, the Board of Directors has unanimously
resolved:
* to select the Air France-KLM non binding proposal as the
one that offers to the Company, given its current critical
financial conditions, and having also considered the
implementation of the Transition / Survival Plan, the
appropriate solution to preserve the Company's assets and
to promote its quick and permanent restructuring, thanks
to the benefit of synergies arising from the integration
in a major international group of the airline industry.
Such proposal, in fact:
-- provides adequate and reliable financial and industrial
assurances to successfully carry out the restructuring,
development and re-launching of Alitalia, while
stating, within this context, the interest and
willingness to acquire control of the Company;
-- is more convenient from an economic point of view for
the shareholders; and
-- is perceived to be adequately aligned with the
expectations stated by the shareholder Ministry of
Economy and Finance through the press release
issued on July 31, 2007, as it envisages to
satisfactorily safeguard the general interests
considered to be essential by the Government in terms
of continuity and adequateness of aviation services in
Italy.
* to submit a communication to the Ministry of Economy and
Finance, asking it to express its position in relation to
the Air France-KLM proposal within a timetable not
significantly different from the one proposed by the
Government in its press release of Dec. 20, 2007, also in
light of the critical financial conditions of the Company
and of a macro scenario increasingly challenging; and
* to mandate, within this framework, its Chairman to define
the terms of the exclusive negotiation to be started with
Air France-KLM.
On Sept. 7, 2007, the Board of Directors approved a
"Survival/Transition Plan," which highlights that:
* it is economically and industrially unsustainable to
attempt to develop a network based on two hubs;
* the productivity objectives and increased efficiency of
the cost structure are indispensable pre-requisites,
which, however, do not improve the structural weakness
of the Company's competitive positioning; and
* being part of an international alliance is an essential
element to serve the market and to compete for the high
yield traffic segments, but it is not sufficient to
generate the amount of synergies required to avoid a
progressive imbalance of the financial structure.
The Company also recognized and noted that:
* the scenario and the competitive environment of the
aviation sector favor the acceleration of consolidation
trends towards a very limited number of hub carriers,
which enable economies of scale and the creation of
significant synergies;
* it is extremely difficult to close the existing gap
through a new attempt to position the Company as a
standalone player at the same level of a European hub
carrier;
* there is the need to inject new financial resources by
means of a substantial capital increase, to be carried out
in the coming months, ideally in connection with the
project to dispose of the controlling stake of the
Company, unless critical issues arise in the
implementation of the Survival/Transition Plan.
The proposals received have been assessed in light of the
mentioned issues and have been subject to further assessment
with the parties involved to understand all the aspects, in
order to finalize and evaluation based on these criteria:
* the industrial and financial quality of the bidder;
* the strategic sustainability and the industrial and
financial solidity of the proposal submitted;
* its adequateness to answer to the needs of the Company and
to the issues identified in the Company's Plan, bearing in
mind the aim to maintain Italy's access to an advanced
aviation system;
* the ability of the partnership proposal to generate
appropriate synergies in favor of Alitalia, sustaining the
possible re-launch in the medium-long term.
The Board of Directors decision towards the non-binding proposal
submitted by Air France-KLM has matured as a result of several
elements contained in the proposal and summarized as:
* Air France-KLM has considerable experience and offers a
high degree of industrial credibility
-- Air France-KLM is the largest airline in the world and
one of the most financially and industrially sound
(with a turnover of EUR23 billion, a market
capitalization of around EUR7.2 billion, a fleet of
601 aircraft, 240 destinations served, more than
73 million passengers carried, EUR4.1 billion of cash
and cash equivalents as of Sept. 30, 2007, a net result
of EUR891 million for the fiscal year 2006/2007,
further improving in the current year);
-- it has an excellent track record of integrations on
medium and large scales, successfully completed, also
through industrial restructuring;
-- it operates a multi-hub network with the best market
performance in the world; and
-- it is the leader of the SkyTeam alliance, created in
2000 and gradually expanded to include 11 members.
* The business plan put forward by AirFrance-KLM has been
considered highly credible and adequate to address the
strategic, industrial and financial issues of Alitalia,
having also considered the competitive environment in
which the Company operates.
Briefly, the plan:
-- creates an advantageous situation for all the parties
involved:
* for Alitalia, which will regain the ability to grow
and achieve economic soundness;
* for Italy, which will have access to an advanced and
highly competitive aviation system for passengers and
goods on a global scale;
* for AirFrance-KLM, who will reinforce its multi-hub
system by acquiring an additional platform, with a
role generating value within the whole system, also
through clear growth upsides.
-- moderates the "vacuum cleane"" effect from Northern
Italy, especially in Milan, to the large European hubs,
being Air France-KLM currently one of the carriers that
applies the model most effectively. In this respect,
through competitive transport solution provided by
Alitalia network and by its Fiumicino hub, together
with the improvement of the ability to attract high
yield traffic, the current issues will transform in
opportunities through which create value;
-- consistently with the repositioning indicated in
Alitalia's Survival/Transition Plan, speeds up the
removal of the causes which create the Company's
current losses, creating the prospect of new and more
solid growth by realigning the cost structure and
levels of overall efficiency, including an initial
reduction of the fleet and of certain destinations and
flight frequencies;
-- highlights the ability to generate sufficient cash
flows to sustain the Company's debt levels which,
through the envisaged capital increase, are aligned
with those typical of the industry;
-- foresees the renewal of the fleet (in particular, the
complete replacement of the MD80s by 2017 and of B767)
and the progressive, constant growth over time starting
from 2011 (with overall investments of EUR6.5 billion);
-- envisages improving the quality of customer services
and of the operational performance in terms of on-time
performance and reliability, through considerable
investment in on-board services and cabin layouts, as
well as services for passengers, in order to re-launch
and strengthen Alitalia's competitive position,
enhancing the value of its brand name o offers the
chance to take part in the North Atlantic joint venture
with certain SkyTeam members including Delta;
-- positions Rome as a valuable hub, expanding its offer
to the passengers, in particular those traveling
from/to Italy, while providing access to the multi-hub
network of AirFrance-KLM. It defines for Fiumicino a
clear and unique role in the overall network design in
the new group for Central-South, South-Eastern Europe,
as well as for North Africa; the new group thanks to
the presence in a hub located in the southern part of
Europe, will gain a competitive edge compared to the
other main European network which already operates hubs
to the south of Paris and Amsterdam;
-- envisages an important role for the airport system of
Milan: Linate will see its role as a city airport
confirmed and strengthened, focusing on business
traffic, within the limits set by the existing
regulations. Malpensa will maintain the three main
intercontinental routes for North and South America and
Asia and will update the scheduling of the
international routes so as to improve the service for
Italian business travelers, as envisaged by the
Alitalia's Plan;
-- complementing the strategy adopted to serve the
Northern Italy market, the proposal confirms the
willigness to support the development of Volareweb,
taking advantage of the skills acquired in the
successful experiences of Transavia and Transavia
France;
-- envisages the integration of Alitalia cargo activities
with Air France-KLM cargo, maintaining the brand name
and the operational base; this will reinforce the
position as the leading global operator, which will
also become the market leader in Italy, thereby
benefiting from significant economies of scale (cost as
well as the portfolio of products and services)
-- regarding Alitalia Servizi, the guidelines of
Alitalia's Survival/Transition Plan are confirmed.
* the Air France-KLM proposal is expected to generate
significant synergies in favor of Alitalia, allowing for a
sustainable re-launch in the long term.
In particular, it acknowledges that the most important
business instrument for generating significant and
sustainable synergies over a period of time is the
"network overlap." In fact, the integration of two
overlapping networks and the consequent creation of an
extended network based on several hubs multiplies
exponentially the ability to attract traffic and generate
increased revenues: a system of integrated networks offers
to its customers several travel solutions, both as
possible itineraries and as fare combinations.
* from the economic point of view, the Air France-KLM
non-binding proposal offers the best terms for the
Ministry of Economy and Finance and for minority
shareholders, and is sustained by the high degree of
certainty on the availability of the financial resources
for Alitalia:
On Sept. 30, 2007, Air France-KLM had cash and cash
equivalents of EUR4.1 billion. Furthermore, Air
France-KLM undertakes to guarantee the whole amount
indicated for the capital increase (EUR750 million).
* the Air France-KLM non binding proposal clearly states the
willingness to undertake a number of commitments towards
the Italian State on these topics:
-- the safeguarding and valorization of the Alitalia
brand, logo and livery, with an equal standing to the
two other group companies;
-- the preservation of an adequate coverage of the Italian
market as well as an adequate level of services
offered; with regards to the national network, it has
been specifically stated that it will remain
substantially unchanged from the one envisaged by the
Alitalia's Survival/Transition Plan that it will
provide an offer capable to satisfy a high percentage
of the demand from/to Rome and Milan;
-- international and intercontinental destinations will be
covered through the airports of Rome and Milan; with
regards to this topic, Air France-KLM has indicated
that it does not intend to use Alitalia as a feeder to
the hubs of Paris and Amsterdam, but rather to
strengthen Alitalia as a key European carrier.
* the Air France-KLM proposal includes labor
considerations on the levels of employment in line with
Alitalia's Survival/Transition Plan. Air France-KLM
indicates the intention to consider measures to involve
employees with profit sharing schemes based on economic
results.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.
BANCO SANTANDER RIO: Fitch Affirms D Individual Rating
------------------------------------------------------
Fitch Ratings has affirmed Banco Santander Rio's Individual and
Support Ratings at 'D' and '5', respectively.
Santander Rio's long and short-term national ratings of
'AA(arg)' and 'A1+(arg)' were affirmed on Dec. 14, 2007. The
rating outlook is stable.
The ratings of Santander Rio reflect its good franchise in
Argentina, its improved profitability and its sound asset
quality. Also, they take into account ownership by Spain's
Banco Santander (Santander, rated 'AA'), as well as the fact
that the operating environment in Argentina has improved
considerably but remains potentially volatile.
Santander Rio's profitability has significantly improved, based
on strong revenue generation and excellent cost-efficiency
ratios. Fitch Ratings expects its operating revenues to
continue growing, in line with larger business volumes, and its
profitability to remain sound, although in Q307 it fell somewhat
due to lower results from its securities portfolio.
Lending to the private sector has grown steadily and accounted
for 56.2% of assets at end-Q307. As with most of its peers,
Santander Rio's asset quality has significantly improved since
2002. Non-performing loans were only 0.63% of the total at end-
September 2007, at historically low levels. Loan loss reserve
coverage was sound, at 241.9%. As with most of its peers,
Santander Rio's loan growth has been very rapid, and is expected
to continue apace, raising the challenge of maintaining asset
quality as the portfolio seasons.
Santander Rio has significantly reduced its public sector
exposure. This represented 12.5% of assets at end-Q307 and was
entirely marked to market. This exposure is still considerable
and represented 160% of the bank's equity, but should continue
falling as growth from the private sector continues. Santander
Rio's liquidity remains adequate and its funding was comprised
primarily of deposits, which grew by 19% at end- September 2007,
year-on-year.
Santander Rio's capital base is adequate and has been supported
by the capitalization of subordinated debt with Santander and
its improving profitability. Its equity/assets ratio was 7.7%
at end-Q307.
Santander Rio is 99.30% owned by Santander. It is a universal
bank, offering a wide range of financial services through its
223 branches. It was Argentina's fourth-largest bank by
deposits at end-September 2007.
Fitch's National Ratings provide a relative measure of
creditworthiness for rated entities in countries where the
sovereign's foreign and local currency ratings are below 'AAA'.
National ratings are not internationally comparable since the
best relative risk within a country is rated 'AAA' and other
credits are rated only relative to this risk. They are
signified by the addition of an identifier, for the country
concerned, such as 'AAA (arg)' for national ratings in
Argentina.
CLUB ATLETICO: Trustee Filing Individual Reports on Feb. 25
-----------------------------------------------------------
Luis Alberto Reinoso, the court-appointed trustee for Club
Atletico Chabas Mutual Social y Cultural's bankruptcy
proceeding, will present the validated claims as individual
reports in the National Commercial Court of First Instance in
Casilda, Santa Fe, on Feb. 25, 2008.
Mr. Reinoso verified creditors' proofs of claim until
Dec. 10, 2007.
A general report that contains an audit of Club Atletico's
accounting and banking records will be submitted in court on
April 10, 2008.
Mr. Reinoso is also in charge of administering Club Atletico's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Club Atletico Chabas Mutual Social y Cultural
San Martin 1650, Chabas, Departamento Caseros
Santa Fe, Argentina
The trustee can be reached at:
Luis Alberto Reinoso
Espana 2038, Casilda
Santa Fe, Argentina
EMSEL SRL: Proofs of Claim Verification Deadline Is Feb. 26
-----------------------------------------------------------
Leandro La Falce Jaufret, the court-appointed trustee for Emsel
S.R.L.'s reorganization proceeding, verifies creditors' proofs
of claim until Feb. 26, 2008.
Mr. Jaufret will present the validated claims in court as
individual reports on April 8, 2008. The National Commercial
Court of First Instance in Lomas de Zamora, 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 Emsel 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 Emsel's accounting
and banking records will be submitted in court on May 23, 2008.
The debtor can be reached at:
Emsel S.R.L.
Oliden 813, Lomas de Zamora
Buenos Aires, Argentina
The trustee can be reached at:
Leandro La Falce Jaufret
Rodriguez Pena 296, Banfield
Buenos Aires, Argentina
EQUITAS MEDICA: Files for Reorganization in Buenos Aires Court
--------------------------------------------------------------
Equitas Medica S.A. has requested for reorganization approval
after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Equitas Medica 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:
Equitas Medica S.A.
Avenida Las Heras 2126 Piso 4
Buenos Aires, Argentina
EVOLUCION TEXTIL: Proofs of Claim Verification Ends on March 20
---------------------------------------------------------------
Jorge Alberto Vazquez, the court-appointed trustee for Evolucion
Textil S.R.L.'s reorganization proceeding, verifies creditors'
proofs of claim until March 20, 2008.
Mr. Vazquez 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 Evolucion Textil 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 Evolucion Textil's
accounting and banking records will be submitted in court on
June 19, 2008.
The debtor can be reached at:
Evolucion Textil S.R.L.
Yerbal 3150/52
Buenos Aires, Argentina
The trustee can be reached at:
Jorge Alberto Vazquez
Bartolome Mitre 2593
Buenos Aires, Argentina
HIPERTECH SA: Trustee Verifies Proofs of Claim Until March 13
-------------------------------------------------------------
Beatriz Custodio, the court-appointed trustee for Hipertech
S.A.'s reorganization proceeding, verifies creditors' proofs of
claim until March 13, 2008.
Ms. Custodio will present the validated claims in court as
individual reports on April 29, 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 Hipertech 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 Hipertech's
accounting and banking records will be submitted in court on
June 18, 2008.
The debtor can be reached at:
Hipertech S.A.
Deheza 1651
Buenos Aires, Argentina
The trustee can be reached at:
Beatriz Custodio
Uruguay 229
Buenos Aires, Argentina
LOFTY SA: Proofs of Claim Verification Is Until Feb. 29
-------------------------------------------------------
Oscar Paez, the court-appointed trustee for Lofty SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
Feb. 29, 2008.
Mr. Paez will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 10 in Buenos Aires, with the assistance of Clerk
No. 20, 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 Lofty 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 Lofty's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Paez is also in charge of administering Lofty's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Lofty SA
San Martin 933
Buenos Aires, Argentina
The trustee can be reached at:
Oscar Paez
Juana Manso 1666
Buenos Aires, Argentina
PREVENCION Y SEGURIDAD: Files for Reorganization in Buenos Aires
----------------------------------------------------------------
Prevencion y Seguridad Total S.R.L. has requested for
reorganization approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Prevencion y Seguridad 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:
Prevencion y Seguridad Total S.R.L.
Paraguay 754
Buenos Aires, Argentina
PROFILO SRL: Proofs of Claim Verification Deadline Is March 12
--------------------------------------------------------------
Jose Tsanis, the court-appointed trustee for Profilo SRL's
bankruptcy proceeding, verifies creditors' proofs of claim until
March 12, 2008.
Mr. Tsanis will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 49, 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 Profilo 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 Profilo's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Tsanis is also in charge of administering Profilo's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Profilo SRL
Santa Fe 966
Buenos Aires, Argentina
The trustee can be reached at:
Jose Tsanis
Teniente General Juan Domingo Peron 1410
Buenos Aires, Argentina
PROYECTOS AUSTRALES: Files for Reorganization in Buenos Aires
-------------------------------------------------------------
Proyectos Australes SRL has requested for reorganization
approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Proyectos Australes to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance No. 24 in Buenos Aires, with the assistance of Clerk
No. 48.
The debtor can be reached at:
Proyectos Australes SRL
San Martin 1009
Buenos Aires, Argentina
RED HAT: Says LatAm Ops Account for Up to 5% of Global Revenues
---------------------------------------------------------------
Red Hat Inc.'s executive vice president and chief financial
officer Charles Peters said in a conference call that the
company's Latin American operations would represent up to 5% of
the firm's global revenues in the third quarter of fiscal year
2008, ended Nov. 30.
As reported in the Troubled Company Reporter on Dec. 28, 2007,
Red Hat Inc. reported US$20.3 million of net income for the
third fiscal quarter ended Nov. 30, 2007, compared with US$18.2
million for the prior quarter and US$14.6 million for the same
period in 2006. Red Hat's current fiscal year will end Feb. 29,
2008.
Business News Americas relates that Red Hat's third quarter 2008
global revenues were US$135 million.
Mr. Peters told BNamericas that Latin America had very strong
sales in the third quarter 2008 and in the previous year,
especially considering Red Hat launched direct operations in the
region almost a year ago.
BNamericas notes that "Latin America saw Red Hat's first US$1-
million deal in the Americas as a whole, helping a large energy
company move from a free Linux environment" without any help to
a platform where the firm pays for and gets support from Red Hat
for "its mission-critical infrastructure."
Mr. Peters commented to BNamericas, "We are pleased with the
traction we are seeing in Latin America, which grew 52%
sequentially [in terms of new contracts]. We have a solid
management team there recruiting seasoned talent for the
organization, beginning penetration in large enterprise accounts
and the public sector with a full range of our solutions,
setting the foundation for this to be 3 to 5% of our overall
business."
Headquartered in Raleigh, North Carolina Red Hat, Inc. --
http://www.redhat.com/-- is an open source and Linux provider.
Red Hat provides operating system software along with
middleware, applications and management solutions. Red Hat also
offers support, training, and consulting services to its
customers worldwide and through top-tier partnerships.
The company has offices in Singapore, Germany, and Argentina,
among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 19, 2007, Standard & Poor's Ratings Services has revised
its outlook on Red Hat Inc. to positive from stable and affirmed
the ratings, including the 'B+' corporate credit rating.
UDA SA: Proofs of Claim Verification Is Until Feb. 26
-----------------------------------------------------
Jorge Basile, the court-appointed trustee for Uda S.A.'s
reorganization proceeding, verifies creditors' proofs of claim
until Feb. 26, 2008.
Mr. Basile 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 Uda 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 Uda's accounting and
banking records will be submitted in court on June 24, 2008.
The debtor can be reached at:
Uda S.A.
Avenida Cordoba 5393
Buenos Aires, Argentina
The trustee can be reached at:
Jorge Basile
J. E. Uriburu 782
Buenos Aires, Argentina
XALEX SRL: Files for Reorganization in Buenos Aires Court
---------------------------------------------------------
Xalex S.R.L. has requested for reorganization approval after
failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Xalex 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:
Xalex S.R.L.
Avenida Belgrano 766
Buenos Aires, Argentina
YPF SA: S&P Puts BB+ Local Cur. Corp. Rating on CreditWatch
-----------------------------------------------------------
Standard & Poor's Ratings Services has placed its 'BB+' local-
currency corporate credit rating on YPF S.A. on CreditWatch with
negative implications. The outlook on the 'BB' foreign-currency
rating remains stable.
The CreditWatch placement follows YPF's parent company Repsol-
YPF S.A.'s (Repsol; BBB/Stable/A-2) recent announcement that it
has reached an agreement with Argentina-based Petersen Group to
sell a 14.9% stake in YPF for US$2.2 billion. The Petersen
Group will also have an option to purchase an additional 10.1%
in the next four years. In addition, the agreement contemplates
that Repsol would make a public offer for an additional 20% of
YPF's share capital in secondary markets including the Buenos
Aires stock exchange.
"According to public information, the Petersen Group will
finance the acquisition with sizable amounts of debt at the
holding company level, which would add certain pressure on YPF
to maintain its current aggressive dividend policy. This
becomes particularly relevant in light of YPF's capital
expenditure needs to maintain an adequate reserve base," said
Standard & Poor's credit analyst Luciano Gremone.
To avoid increasing its business risk profile, YPF would have to
increase capital expenditures (particularly if that involves
riskier offshore exploratory upstream operations) to strengthen
its upstream business. Although Standard and Poor's recognizes
that YPF is currently underleveraged and could raise debt while
maintaining strong credit ratios, the effect of persistent high
dividend payments, challenging field performance, and reserve-
base maintenance could result in a one-notch downgrade.
Standard and Poor's expects to resolve the CreditWatch during
the next 90 days, incorporating the above-mentioned factors,
YPF's business plan and expected financial policy with a new
partner (Repsol plans to announce its strategic plan during
first-quarter 2008), and our perception of Repsol's incentives
to support its subsidiary.
The ratings on YPF S.A. reflect YPF's strategic importance to
its parent, Repsol, a still-conservative financial profile, and
an adequate business position. The ratings also reflect the
challenges of operating in the highly uncertain and rapidly
changing Argentine regulatory environment, some vulnerability to
highly volatile international prices, a geographically
concentrated reserve base, and low reserve-replacement ratios.
Headquartered in Buenos Aires, Argentina, YPF S.A. is an
integrated oil and gas company engaged in the exploration,
development and production of oil and gas, natural gas and
electricity-generation activities (upstream), the refining,
marketing, transportation and distribution of oil and a range of
petroleum products, petroleum derivatives, petrochemicals and
liquid petroleum gas (downstream). The company is a subsidiary
of Repsol YPF, S.A., a Spanish company engaged in oil
exploration and refining, which holds 99.04% of its shares. Its
international operations are conducted through its subsidiaries,
YPF International S.A. and YPF Holdings Inc.
=============
B A H A M A S
=============
ANDREW CORP: CommScope Completes Acquisition for US$2.65 Billion
----------------------------------------------------------------
CommScope Inc. has completed its acquisition of Andrew
Corporation for a total purchase price of approximately
US$2.65 billion. As of Dec. 27, Andrew will become a wholly
owned subsidiary of CommScope.
"We are delighted with the closing of the Andrew transaction,
which marks a new chapter in the history of our company," said
Frank M. Drendel, chairman and chief executive officer of
CommScope. "We believe this combination will further enhance
CommScope's position as a worldwide leader in 'last mile'
solutions. Combining our innovative technologies, premier
brands and a top-tier customer base, we expect to expand our
global service model and create an enhanced offering of
communications infrastructure solutions that addresses a broader
spectrum of customer needs. With this acquisition, we are
advancing CommScope's stated global 'last mile' strategy while
creating important cost reduction and growth opportunities that
we believe will drive increased shareholder value.
"We look forward to working with Andrew's talented team to
quickly and smoothly integrate their operations into CommScope.
As we continue to invest in the combined business for profitable
growth, the talented and dedicated employees of both Andrew and
CommScope will continue to play a critical role in the success
of the combined company. CommScope is a proven and successful
integrator of strategic transactions and we expect to begin
realizing the benefits of this combination immediately and enjoy
them fully over the next few years," added Mr. Drendel.
Andrew stockholders will receive, for each Andrew share,
US$13.50 in cash and 0.031543 shares of CommScope common stock.
This fractional share of CommScope common stock was calculated
according to the terms of the merger agreement by dividing
US$1.50 by US$47.554, which was the volume weighted average of
the closing sale prices for a share of CommScope common stock
over the ten consecutive trading days ending on Dec. 24, 2007.
About CommScope
Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV)
-- http://www.commscope.com/-- is a world leader in
infrastructure solutions for communication networks. Through
its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands,
CommScope is the global leader in structured cabling systems for
business enterprise applications. It is also the world's
largest manufacturer of coaxial cable for Hybrid Fiber Coaxial
applications. CommScope has facilities in Brazil, Australia,
China and Ireland.
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 R M U D A
=============
GEORGE FISCHER: Proofs of Claim Filing Is Until Jan. 4
------------------------------------------------------
George Fischer Finance Ltd.'s creditors are given until
Jan. 4, 2008, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
George Fischer's shareholder decided on Dec. 20, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
MAGNA RE: Proofs of Claim Filing Deadline Is Jan. 22
----------------------------------------------------
Magna Re Ltd.'s creditors are given until Jan. 22, 2008, to
prove their claims to Orlando A. Smith, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Magna Re's shareholder decided on Dec. 14, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Orlando A. Smith
Milligan-Whyte & Smith
Mintflower Place, 2nd Floor
8 Par-la-Ville Road
Hamilton, Bermuda HM 08
MAGNA RE: Sets Final Shareholders Meeting for Jan. 31
-----------------------------------------------------
Magna Re Ltd.'s final general meeting will be at 10:00 a.m. on
Jan. 31, 2008, at:
Milligan-Whyte & Smith
Mintflower Place, 2nd Floor
8 Par-la-Ville Road, Hamilton HM 08
Bermuda
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
MSD SOMERSET: Proofs of Claim Filing Ends on Jan. 4
---------------------------------------------------
MSD Somerset Ltd.'s creditors are given until Jan. 4, 2008, to
prove their claims to Robin J. Mayor, the company's liquidator,
or be excluded from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
MSD Somerset's shareholder decided on Dec. 20, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
NAUTILUS LEASING: Proofs of Claim Filing Deadline Is Jan. 11
------------------------------------------------------------
Nautilus Leasing Limited's creditors are given until Jan. 11 to
prove their claims to Liz Bingham and Patrick Brazzill, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Nautilus Leasing's shareholder decided on Dec. 18, 2007, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidators can be reached at:
Liz Bingham
Patrick Brazzill
Ernst and Young LLP
c/o Conyers Dill & Pearman, Liquidations Department
12 Par la Ville Road
Hamilton, Bermuda
=============
B O L I V I A
=============
INTERMEC TECH: Names David Jones as VP for Global Services
----------------------------------------------------------
Intermec Technologies Inc. has appointed David Jones as its Vice
President and General Manager, Global Services.
Mr. Jones is an accomplished executive with 21 years of
critical business leadership and experience in the areas of
global service, network management services and systems
integration.
Mr. Jones was most recently at Motorola, Inc. where he was Vice
President of Global Service Delivery. During his twenty-one
year tenure, he was responsible for Motorola's global service
and support network providing critical repair and optimization
service delivery to thousands of global customers.
"Our Global Service offerings are strategically significant to
accelerating profitable growth and margin expansion," said
Michael A. Wills, SVP of Global Sales and Service. "I'm
confident that Dave will be an outstanding addition to our
management team based on his considerable experience and
tangible proven results."
About Intermec Inc.
Intermec Inc. -- http://www.intermec.com/-- develops,
manufactures and integrates technologies that identify, track
and manage supply chain assets. Core technologies include RFID,
mobile computing and data collection systems, bar code printers
and label media.
The company has locations in Australia, Bolivia, Brazil, China,
France, Hong Kong, Singapore and the United Kingdom.
* * *
Standard & Poor's Rating Services raised its ratings on Everett,
Washington-based Intermec Inc. to 'BB-' from 'B+'. The upgrade
reflects expectations that Intermec will sustain current levels
of profitability and leverage. S&P said the outlook is stable.
===========
B R A Z I L
===========
AMAZONIA CELULAR: Moody's Holds B2 Rating on US$120-Mil. Notes
--------------------------------------------------------------
Moody's B2 foreign currency rating under review for possible
upgrade of the US$120 million senior unsecured notes issued by
Telemig Celuar S.A. and Amazonia Celular S.A. is not affected by
the announcement that Telemar Norte Leste S.A. reached an
agreement to buy control of Amazonia. Moody's also affirmed the
ratings of Telemar Norte Leste S.A. (corporate family rating
Baa2 and national scale rating Aaa.br with a stable outlook).
The rationale for maintaining the B2 rating under review for
possible upgrade is based on Moody's view that Amazonia's credit
profile will benefit from being controlled by Telemar, the
largest integrated telecommunications company with a
significantly stronger credit profile.
The review will focus on the perceived benefits from being
controlled by Telemar as well as the possibility that Amazonia
would receive support from Telemar should it become unable to
make its debt service payments on a timely basis. Additionally,
the review will continue to focus on the company's growth
strategy, expected synergies as a result of this transaction,
ability to generate cash flow and address its near-term
refinancing needs on a timely basis.
The announced transaction refers to Telemar's BRL120-million
acquisition of VIVO Participacoes S.A.'s 51.86% of Tele Norte
Participacoes' voting shares (Amazonia's holding company),
giving Telemar control of Amazonia with a 19.34% economic stake.
The deal is subject to approval from telecom regulator Anatel,
CADE (anti-trust authority) and the shareholders' meetings of
Telemar.
Headquartered in Belem, Brazil, Amazonia Celular is the leading
provider of mobile communications services in a region covering
the states of Maranhao, Para, Amazonas, Amapa and Roraima in the
northern region of Brazil. As of Sept. 30, 2006, Amazonia had
1.27 million subscribers, with a market share of 24% in its
concession area.
BANCO GMAC: Moody's Downgrades Currency Deposit Ratings to Ba3
--------------------------------------------------------------
Moody's Investors Service has downgraded Banco GMAC S.A.'s bank
financial strength rating to D- from D, as well as its global
long-term local and foreign currency deposit ratings to Ba3 from
Ba2. Moody's also downgraded the long-term national scale
deposit rating of Banco GMAC to A2.br from Aa3.br. The negative
outlook on the global deposit ratings of GMAC Brazil remained
unchanged, and the outlook on the national scale ratings changed
to negative from stable. The short-term national scale rating
remains unchanged at BR-1.
These ratings for Banco GMAC S.A. were downgraded:
-- Bank financial strength rating to D- from D, negative
outlook;
-- Global long-term local currency deposit ratings to Ba3
from Ba2, negative outlook;
-- Long-term foreign currency deposit ratings to Ba3 from
Ba2, negative outlook; and
-- Brazil long-term national scale deposit ratings to
A2.br from Aa3.br; negative outlook.
These actions follow Moody's downgrade of General Motors
Acceptance Corporation, LLC (GMAC LLC)'s long-term senior
unsecured debt rating to Ba3 from Ba2, announced on
Dec. 21, 2007.
Moody's recognizes that the Brazilian operation of Banco GMAC is
performing well on the back of positive macro conditions and
resilient credit growth in Brazil, both reflected in the bank's
adequate financial metrics and robust loan expansion. However,
the rating agency noted, the current stress at GMAC LLC's level
exposes the Brazilian subsidiary to uncertainties regarding the
confidence sensitivity of its funding, as well as its capital
adequacy going forward.
Moody's recognizes Banco GMAC's significant business and
strategic integration with its parent company as well as the
effects that a lower-rated parent could have on Banco GMAC's
predominantly wholesale funding base. Higher funding costs
could hurt profitability and affect the bank's business strategy
in the highly competitive car-financing segment in which it
operates.
Moreover, the bank's sound capital levels could be diminished
draining forces from the bank's growth opportunities, if it were
to be required to upstream dividends or repatriate capital to
its parent company. Moody's acknowledges that Banco GMAC has a
track record of adequate capital preservation, achieved through
a conservative earnings retention policy throughout the years,
and consistently superior asset quality relative to peers'.
However, the current capital pressure at the GMAC LLC level may
result in changes in this policy, with negative effects on the
Brazilian subsidiary.
Banco GMAC is headquartered in Sao Paulo, Brazil. As of
September 2007, Banco GMAC reported total assets of BRL5.47
billion and equity of BRL818.28 million.
BANCO NACIONAL: Investment Prospects Are BRL1.2 Trillion
--------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social President
Luciano Coutinho, in a Dec. 20 press conference, disclosed that
the investment cycle in the economy is in its accelerating
phase, that is, the trend is for an even higher economic
expansion in the upcoming years. With basis on studies
conducted by BNDES, Coutinho stressed that investments
projections for the period 2008/2011 are BRL1.2 trillion,
including infrastructure, industry and civil construction
sectors.
This represents an average acceleration of 11.8% a year on the
investment pace, as compared to the 2007/2010 time span, when
the total mapped by the Bank was BRL1.049 billion. "It is a
very significant expansion rate," he emphasized. The highest
rate was recorded in infrastructure at 13.2% a year. According
to Mr. Coutinho, "these results guarantee Country's growth, even
in an eventual scenario of external turbulence."
The president of the Bank mentioned that the Gross Fixed Capital
Formation has been increasing for 20 consecutive quarters, being
that in 15 of these, the investment increase has been higher
than that of the Gross Domestic Product.
BNDES studies show that the industry sector foresees BRL477
billion investments for 2008/2011, with an expansion rate of
12.4% a year, as compared to 2003/2006. For the infrastructure
sector, total investments foreseen are BRL231.7 billion.
However, housing construction is BRL535 billion, with a 10.7%
growth rate per year.
Among the investments identified in the industrial sector, the
highest volume of funds is concentrated in oil and gas, with
BRL202.8 billion in 2008/2011. In the infrastructure segment,
electric power stands out, with investments forecast to be
BRL101 billion and growth rate of 19.8%, when compared to the
period 2003/2006. As for the housing construction segment, the
investment evolution foreseen is stimulated by the improvement
of conditions for housing credit, with decreasing interest rates
and the lengthening of terms; increased workers' income; and
flexibilization of funds from the Brazilian Unemployment
Guarantee Fund.
"This block of investments is very robust, mainly because it
deals with restrained demands," said Mr. Coutinho, making
reference to the lack of investments in the economy in the
recent past, above all in the infrastructure sector.
The president of BNDES took the opportunity to announce the
approval of a BRL2.6 billion financing for the construction of
Estreito hydroelectric power plant, in the State of Tocantins.
This is the largest energy project under implementation included
within the scope of Growth Acceleration Program.
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: Okays BRL7.79 Bil. in Loans to 13 Hydro Plants
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's power
department director Nelson Siffert told the press that the bank
has authorized BRL7.79 billion in loans to 13 hydro plants
included in Brazil's growth acceleration program PAC.
Mr. Siffert told Business News Americas that installed capacity
of the plants with authorized loans total 3.59 gigawatts.
Mr. Siffert commented to BNamericas, "This total excludes the
[3.15 gigawatts] Santo Antonio plant, which is PAC's second
largest hydro project, only smaller than [the 3.3 gigawatts]
Jirau. Financing approval for Santo Antonio will only happen in
2008."
BNamericas relates that investment in the PAC's hydro plants
with authorized loans total BRL11.81 billion.
Six other hydro plants included in PAC -- excluding Jirau and
Santo Antonio -- are under the approval process at Banco
Nacional. The six projects total 854 megawatts in installed
capacity. Funding from Banco Nacional could total BRL1.30
billion, BNamericas states, citing Mr. Siffert.
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.
COMMSCOPE INC: Completes Andrew Acquisition for US$2.65 Billion
---------------------------------------------------------------
CommScope Inc. has completed its acquisition of Andrew
Corporation for a total purchase price of approximately
US$2.65 billion. As of Dec. 27, Andrew will become a wholly
owned subsidiary of CommScope.
"We are delighted with the closing of the Andrew transaction,
which marks a new chapter in the history of our company," said
Frank M. Drendel, chairman and chief executive officer of
CommScope. "We believe this combination will further enhance
CommScope's position as a worldwide leader in 'last mile'
solutions. Combining our innovative technologies, premier
brands and a top- tier customer base, we expect to expand our
global service model and create an enhanced offering of
communications infrastructure solutions that addresses a broader
spectrum of customer needs. With this acquisition, we are
advancing CommScope's stated global 'last mile' strategy while
creating important cost reduction and growth opportunities that
we believe will drive increased shareholder value.
"We look forward to working with Andrew's talented team to
quickly and smoothly integrate their operations into CommScope.
As we continue to invest in the combined business for profitable
growth, the talented and dedicated employees of both Andrew and
CommScope will continue to play a critical role in the success
of the combined company. CommScope is a proven and successful
integrator of strategic transactions and we expect to begin
realizing the benefits of this combination immediately and enjoy
them fully over the next few years," added Mr. Drendel.
Andrew stockholders will receive, for each Andrew share,
US$13.50 in cash and 0.031543 shares of CommScope common stock.
This fractional share of CommScope common stock was calculated
according to the terms of the merger agreement by dividing
US$1.50 by US$47.554, which was the volume weighted average of
the closing sale prices for a share of CommScope common stock
over the ten consecutive trading days ending on Dec. 24, 2007.
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.
About CommScope
Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV)
-- http://www.commscope.com/-- is a world leader in
infrastructure solutions for communication networks. Through
its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands,
CommScope is the global leader in structured cabling systems for
business enterprise applications. It is also the world's
largest manufacturer of coaxial cable for Hybrid Fiber Coaxial
applications. CommScope has facilities in Brazil, Australia,
China and Ireland.
* * *
As reported in the Troubled Company Reporter on Oct. 19, 2007,
Standard & Poor's Ratings Services affirmed its ratings on
CommScope Inc. and Westchester, Illinois-based Andrew Corp. and
removed them from CreditWatch, where they were placed on
June 27, 2007, with negative implications. S&P also affirmed
the 'BB-' corporate credit and 'B' subordinated debt ratings for
both companies. The ratings on Andrew will be withdrawn
following its acquisition and debt refinancing. S&P said the
outlook is stable.
COMPANHIA ENERGETICA: Closes BRL400MM Non-Convertible Bonds Sale
----------------------------------------------------------------
Companhia Energetica de Minas Gerais's distribution unit Cemig
Distribuicao said in a filing with the Brazilian securities
regulator Comissao de Valores Mobiliarios that it has completed
the sale of BRL400 million of non-convertible debentures.
About 40,000 debentures were issued at BRL10,000 each, Business
News Americas relates, citing Companhia Energetica. Investment
and pension funds purchased most of the debentures.
Banco do Brasil's investment arm BB Investimentos handled the
issue.
The debentures will mature in December 2017 and pay 7.96%
interest in real terms. Proceeds will be used to pay down debt,
Companhia Energetica told BNamericas.
Companhia Energetica de Minas Gerais -- http://www.cemig.com.br/
-- is one of the largest and most important electric energy
utilities in Brazil due to its strategic location, its technical
expertise and its market. Cemig's concession area extends
throughout nearly 96.7% of the State of Minas Gerais, Brazil.
Cemig owns and operates 52 power plants, of which six are in
partnership with private enterprises, relying on a predominantly
hydroelectric energy matrix. Electric energy is produced to
supply more than 17 million people living in the state's 774
municipalities. In addition to those 52 plants, another three
are currently under construction.
Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).
* * *
As reported on March 8, 2007, Moody's Investors Service assigned
corporate family ratings of Ba2 on its global scale and Aa3.br
on its Brazilian national scale to Companhia Energetica de Minas
Gerais aka CEMIG. The rating action triggered the upgrade of
CEMIG's outstanding debentures due in 2009 and 2011, and of the
BRL250 million 2014 senior unsecured guaranteed debentures of
its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from
B1 on the global scale and to Aa3.br from Baa2.br on the
Brazilian national scale, concluding the review process
initiated on Aug. 8, 2006.
EVEN CONSTRUTORA: Fitch Puts B+ Issuer Default Ratings
------------------------------------------------------
Fitch Ratings has assigned 'B+' foreign and local currency
Issuer Default Ratings to Even Construtora e Incorporadora S.A.
In addition, Fitch has assigned Even a national long-term debt
rating of 'A-(bra)', which also applies to its first debenture
issuance program in the amount of BRL500 million due 2013. The
proceeds of this issuance will be used for land acquisition, new
project development and working capital needs. The Rating
Outlook for all the ratings is Stable.
Even's ratings reflect the company's currently small but rapidly
growing market position and operations, and moderate financial
position. Even has an ambitious expansion plan in the highly
competitive Brazilian homebuilding sector. The homebuilding
sector is undergoing strong growth and is dependent on the
availability of long-term credit lines and is linked to the
performance of the Brazilian economy, which add to business
risk. The ratings are supported by an adequate capital
structure and a strong cash position related to the IPO in May
2007 and capital injection in April 2006. Low leverage and
solid liquidity are expected to enable Even to expand and
strengthen its business and cash generation going forward,
diversify its geographic business area, maintaining leverage at
a manageable level for the risks connected with its business.
The residential real estate sector in Brazil has experienced
significant growth. The balance of funds allocated to the
housing sector evolved 45%, from BRL28.1 billion to BRL40.7
billion, between end 2005 and September 2007, according to the
statistics of the Brazilian Central Bank. The improvement in
the country's economic fundamentals has resulted in increases in
per capita income, lower interest rates and more flexible
financing conditions to consumers. These factors, coupled with
greater legal protection for the rights of real estate
creditors, have influenced the availability of real estate
credit in Brazil positively, attracted new lenders, and allowed
consumers to purchase homes. The homebuilding industry is
cyclical as the tight correlation between sector fundamentals
and the local economy indicates that an economic slowdown would
be accompanied by lower sales volumes, and increased
delinquencies leading to tighter credit in the system, which
would affect the entire industry.
Even's ambitious growth strategy is focused on monetizing its
existing landbank and realizing its sales potential supported by
the favorable trends in the homebuilding cycle, factors that can
significantly increase the company's future revenues. Even is
aiming to finance this growth with its high cash balances, debt
issuance, and financing from Housing Financial System, without
excessively increasing its indebtedness. Even's strategy is
also based on geographical diversification of its business and
an increase in its landbank with prospects for launching
projects rapidly. At present, Even has a landbank of BRL5.7
billion (75% proprietary), which indicates a total general sales
value close to BRL4.3 billion.
Even's credit measures are adequate for the current rating
category. Fitch expects additional debt required to fund Even's
growth is expected to increase the Total Debt/EBITDA ratio from
3.3 times in September 2007 to around 3.8x in 2008 and 2009.
Adjusting the debt (excluding SFH debt, essentially homebuyers
with pre-approved mortgages), these ratios are expected to be
below 3x and 2x, respectively. Even reported the potential
sales value of its landbank to be BRL1.7 billion at the end of
2006, increasing to BRL4.3 billion at September 2007. The size
of the VGV equates to sales volume sufficient for approximately
two years of operations. In the last four years, its EBITDA
margin has remained stable, close to 16%. Fitch expects an
increase in EBITDA margins close to 20%, reflecting potential
economies of scale gained from the business' expansion.
Even has a robust liquidity position. At September 2007, cash
and marketable securities totaled BRL326.1 million and short-
term debt of BRL28.3 million. Of its total debt of BRL194.7
million, 17% was related to loans from SFH. SFH financing is
repaid or liquidated by Even transferring pre-construction sales
receivables (mortgages) to SFH after Even delivers the housing
unit to the homebuyer. Even's ratings already incorporate its
additional new debt issue needs and a considerable reduction in
cash balances (liquidity) to finance the company's growth;
Even's cash flow is expected to be negative through 2009. The
proceeds from the BRL150 million debenture issue within a total
program of BRL500 million, as well as new SFH resources, will
contribute to the financing of its business expansion.
Even is the result of the merger of two small companies in
November 2002: ABC Construtora e Incorporadora Ltda and Terepins
e Kalili Engenharia e Construcoes Ltda. In March 2006, the
Spinnaker group, based in London, acquired part of the
controlling block of shares, holding a 37.8% participation in
Even's capital. At September 2007, the Spinnaker group had
under its management US$6.9 billion in funds specialized in
emerging markets. In May 2007, Even raised BRL460 million
through an IPO. Traditionally focused on residential projects
for the middle- and upper-middle income public and commercial
projects, in the past three years it has evolved from a small
company to position itself among the five largest developers in
the greater Sao Paulo area.
GOL LINHAS: Closes Purchase Option for 121 Boeing Aircraft
----------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of
Brazil's low-cost airlines GOL Transportes Aereos S.A. and VRG
Linhas Aereas S.A., has exercised firm orders for 34
Boeing 737-800 NGs, completing the purchase option for 121
aircraft negotiated in October 2006, and has signed a new
contract for the acquisition of 40 additional aircraft for
delivery in 2012-2014.
"This new contract will further reduce GOL's costs and enable us
to continue to modernize our fleet with new aircraft," says
Fernando Rockert de Magalhaes, GOL's Technical Vice President.
The agreement, which increases the number of aircraft on order
from 121 to 161, is in line with GOL's policy of reducing
operating costs by operating a standardized fleet.
The Boeing 737-800 NG, with its low operating costs, is a key
part of GOL's strategy. Boeing developed the 737-800 SFP
aircraft with short runway and take-off and landing capabilities
per GOL's specifications.
The 737-800 is larger than the 737-700 and can carry up to 30
percent more passengers. "Increased seat capacity per aircraft
not only reduces the costs of providing passenger
transportation, but also improves our ability to distribute
passengers within our large domestic and growing international
flight networks," adds Mr. Rockert.
The company also announced that it has accelerated its plans for
modernization and renewal of the GOL and VRG fleets.
By the end of 2009, 50 percent of the narrow-body fleet will be
comprised of 737-800SFP aircraft, reducing the average age of
the combined narrow-body fleet to 5.5 years. At the end of
2012, over 75 percent of the narrow-body fleet will be comprised
of 737-800 SFP aircraft, maintaining the average age of the
combined narrow-body fleet at 5.5 years.
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.
RHODIA SA: Restructures Acetow Business in Germany
--------------------------------------------------
Rhodia S.A. launched an extensive program to improve the
competitiveness of its Acetow cellulose acetate business. This
activity, with production site mostly situated in Europe, is
particularly impacted by the weakness in the U.S. dollar.
As a first step, an action plan was announced at the Freiburg
site in Germany. Following an in-depth study, this plan targets
cost savings in all processes through productivity gains in
production, more efficient administration, support services, and
a new orientation to Research & Development activities. As part
of the restructuring program, 129 jobs will be cut, mostly
through early retirement.
"The action plan we are launching aims to improve our margins to
compensate for the unfavorable foreign exchange environment. It
will help ensure the long-term competitiveness of Acetow as part
of Rhodia's core businesses and the sustainability of the
Freiburg site," Gerard Collette, the new president of the Acetow
Enterprise, commented.
Headquartered in Freiburg, Germany, Rhodia Acetow is a
subsidiary of Rhodia S.A. and ranks among the three leaders in
the market of cellulose acetate fibers for cigarette filters.
About Rhodia
Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA)
-- http://www.rhodia.com/-- is a global specialty chemicals
company partnering with major players in the automotive,
electronics, pharmaceuticals, agrochemicals, consumer care,
tires, and paints and coatings markets. Rhodia offers tailor-
made solutions combining original molecules and technologies to
respond to customers' needs. The group generated sales of
EUR4.8 billion in 2006 and employs around 16,000 people
worldwide.
Rhodia is listed on Euronext Paris and the New York Stock
Exchange. The company has operations in Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 28, 2007, Moody's Investors Service affirmed Rhodia S.A.
Corporate Family Rating at Ba3. Moody's said the outlook has
been changed to positive from stable.
RHODIA SA: Names Gerard Collette as President of Acetow Arm
-----------------------------------------------------------
Rhodia S.A. has appointed Gerard Collette as president of
Rhodia's Acetow Enterprise and member of the group's executive
committee.
Mr. Collette holds a degree in engineering from the Ecole
Natinale d'Ing‚nieurs de Metz and a PhD from the Institut
Polytechnique de Lorraine. He began his career with Pechiney in
1980. In 2005, he joined the Novelis Group as global rolling
process technology leader and director technology Europe.
Headquartered in Freiburg, Germany, Rhodia Acetow is a
subsidiary of Rhodia S.A. and ranks among the three leaders in
the market of cellulose acetate fibers for cigarette filters.
About Rhodia
Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA)
-- http://www.rhodia.com/-- is a global specialty chemicals
company partnering with major players in the automotive,
electronics, pharmaceuticals, agrochemicals, consumer care,
tires, and paints and coatings markets. Rhodia offers tailor-
made solutions combining original molecules and technologies to
respond to customers' needs. The group generated sales of
EUR4.8 billion in 2006 and employs around 16,000 people
worldwide.
Rhodia is listed on Euronext Paris and the New York Stock
Exchange. The company has operations in Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 28, 2007, Moody's Investors Service affirmed Rhodia S.A.
Corporate Family Rating at Ba3. Moody's said the outlook has
been changed to positive from stable.
SANYO ELECTRIC: Amends Non-Consolidated Results from FY2000-2005
----------------------------------------------------------------
Sanyo Electric Co., Ltd., has finished its internal
investigation and review of company financial statements for
previous fiscal years. Having reached a decision, Sanyo
disclosed a written report on its investigation and intention to
amend results of marketable securities.
Sanyo, regarding the six fiscal terms from fiscal year 2000
(ending March 2001) to FY2005 (ending March 2006), has amended
its previous fiscal year non-consolidated financial statements
in conformance to practical business guidelines related to
accounting standards and financial commodities accounting. The
amendments were based on and include:
1. Judging the importance of the selection regarding which
subsidiaries and affiliates would be the subject of
investigation for impairment losses; and
2. In addition to conducting a comprehensive review, ensuring
compliance to accounting standards and practical
guidelines in order to decide which subsidiaries and
affiliates will be subject for review for impairment
losses and which companies have the potential of
recoverable performance, particularly in the semiconductor
business which has been subject to market fluctuations.
Sanyo also received an accounting audit for the periods starting
from FY2000 from Grant Thornton Taiyo ASG. The audit also
included the recalculation of impairment losses for
subsidiaries/affiliates and deferred tax assets for each fiscal
year.
The amendments apply to the account processing for the six terms
for losses in investments in subsidiaries and affiliates, and
the total amount amended for the six terms are:
Amendment of losses in investments in subsidiaries and
affiliates:
Before amendment JPY372.6 billion
After amendment JPY378.6 billion (Change: -6 billion yen)
Amendment of deferred tax assets:
Before amendment JPY100.2 billion
After amendment JPY100.2 billion (No change)
The amendments are restricted to the non-consolidated results
for previous fiscal years up to FY2005, which ended on
March 31, 2006. The amendments do not significantly affect the
consolidated results for the mentioned period.
Measures Taken to Prevent Future Problems
Sanyo established an internal "Investigation Committee for
Previous Financial Results" in May of this year, which included
third party members, such as lawyers and accountants from
outside the company. Following its establishment, the Committee
was entrusted to conduct an investigation to determine the cause
of and how to prevent such problems from recurring and Sanyo
received the report and proposed preventative measures from the
investigation Committee.
The primary causes of the problem:
1. Inadequacy and vulnerability in financial division
accounting system;
2. Lack of independence for the auditors and insufficient
auditing organization;
3. Inadequate governance system and incomplete management
supervisory function and inspection; and
4. Corporate culture and the effects of the company system.
Additionally, as for Sanyo's handling of impairment losses for
subsidiaries and affiliates, while the Committee found the
company's accounting to not be in accordance with accounting
standards and practical guidelines relating to financial
commodities, the Committee reported that these actions were not
done with ill-intent by those in authority during the applicable
terms, and that there was no intentional foul play involved for
the financial results of the applicable terms.
Sanyo has realized the seriousness of the situation requiring
amendments to the previous fiscal years' financial results, and
along with sincerely reflecting the situation, Sanyo will
strengthen its internal control through implementing various
measures thoroughly to prevent further similar instances, based
on the recommendations and report from the third-party
Committee. Sanyo will further focus efforts on strengthening
the company-system by adding to the drastic reforms for
governance that started in March 2006. These efforts include:
1. Have management personnel recognize the important of
suitable financial statements, and develop risk-minded
financial affairs
* Implement training for executive personnel and managers;
* Hold regular meetings between management and auditors;
and
* Share ethics of financial reporting company-wide.
2. Strengthen governance system
* Reform deliberation process used by the board of
directors for measures (implemented);
* Decentralized authority (implemented);
* Strengthen internal control systems (implemented).
-- Establish personnel/nominating committee, compensation
committee, and governance committee
-- Strengthen and establish accounting employee system
-- Create a 'compliance hotline'
3. Strengthen financial affairs and accounting systems/Remove
the barriers of the company-system
* Adopt system for accepting management personnel
(implemented);
* Strengthen management of affiliated companies;
* Adopt standards for management of affiliated companies
(implemented);
* Increase financial affairs personnel from the current
number of 12 (as of April 2007) to 24, or approximately
double the current amount, increasing both quality and
quantity;
* Separate managerial accounting and system accounting;
* Introduce complete structure for thorough compliance to
accounting standards; and
* Establish business planning inspection system.
4. Enable close cooperation and sharing of information
between auditors, standing corporate auditors and
financial affairs headquarters personnel through regularly
held meetings
Management Responsibility and Punishment
The responsibility for the amendments made to the six applicable
terms will be shared by management. Sanyo recognizes the
importance of educating management to be in compliance with
guidelines, and, as such, will not award JPY1.2 billion in
bonuses or retirement to both former and current management, and
pay to seven persons, including the Executive Director &
President, as well as standing corporate auditors.
The Executive Director & President of Sanyo Electric Co., Ltd.,
Seiichiro Sano commented, "SANYO deeply and sincerely regrets
having to go back and amend previous fiscal year financial
results for the past six terms. Hereafter, in order to never
again cause this type of problem, drastic preventative measures
such as maintaining internal structures, reinforcing account
management and checking functions, will be implemented and
thoroughly executed."
He added, "The amendments will be limited to the non-
consolidated financial results of previous terms, and will not
have any significant or noteworthy impact on consolidated
results for the same periods. Also, new measures have already
been applied to previous and current results regarding standards
for losses, and along with receiving approval from the new
auditing firm, there will be absolutely no effects on the
situation of current financial affairs. Sanyo will hereafter
work to regain trust and reputation with its new three-year
'Mid-term Management Plan' set to be put in effect from FY2008
through FY2010, and will guide SANYO to fulfilling its
revitalization."
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd.
-- http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.
* * *
In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.
SANYO ELECTRIC: Admits Illegally Paying JPY28-Bil. Dividends
------------------------------------------------------------
Sanyo Electric Co., Ltd., acknowledged that it made illegal
dividend payments worth about JPY28 billion in five six-month
terms in the past amid a lack of resources, Jiji Press reports.
It was learned by Jiji Press that Sanyo paid JPY3 per share for
the April-September period of fiscal 2002, 2003, and 2004 and
the October-March period of fiscal 2002 and 2003.
Jiji Press relates that according to its sources, Sanyo should
have seen profits in those terms decline sharply and should have
been unable to pay the dividends if it did not defer necessary
accounting steps like the booking of losses on subsidiaries.
In a separate report, Jiji Press said Sanyo will forgo
retirement payments totaling about JPY1.2 billion to executives
and auditors who served during the years in question. "It has
planned to make the payments to 60 such officials including
former Chairman Satoshi Iue after its business recovery," the
report added.
Sanyo President Seiichiro Sano and six other executives will
take additional pay cuts of 10% for six months, the report cited
the company as saying.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.
* * *
In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.
SANYO ELECTRIC: May Be Faced with Fines & Delisting
-----------------------------------------------
Sanyo Electric Co., Ltd., after it adjusted its earnings reports
for the FY2000-FY2005, may face fines from regulators for
accounting irregularities, The Associated Press reports.
Japan's Securities and Exchange Surveillance Commission accused
Sanyo of faking the earnings report for the fiscal half that
ended in September 2005, urging the Financial Services Agency to
fine the company, the AP relates.
The AP states that the SESC demanded that FSA fine Sanyo JPY8.3
billion for the irregularity.
The Tokyo Stock Exchange has given Sanyo shares a special
monitoring status while the bourse reviews the company's
earnings to see if it violated listing rules, says the AP.
Masaki Kondo and Hiroshi Suzuki of Bloomberg News report that
the Tokyo bourse said that Sanyo's shares may be delisted over
the misstated results from April 2000 to March 2006, leading to
erroneous dividend payments.
Hideyuki Ookoshi, who oversees US$35 million at Chiba-Gin Asset
Management Co. expressed to Bloomberg, "Investors who held the
stock on expectations of a business recovery don't like this
news. Still, being placed on the watch list doesn't necessarily
mean the stock is going to be delisted right away."
Bloomberg relates that Sanyo, through a statement filed with the
Tokyo bourse, apologized to shareholders and business partners
and said it will strengthen management.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.
* * *
In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.
TELEMIG CELULAR: Moody's Keeps B2 Cur. Rating on US$120MM Notes
---------------------------------------------------------------
Moody's B2 foreign currency rating under review for possible
upgrade of the US$120 million senior unsecured notes issued by
Telemig Celuar S.A. and Amazonia Celular S.A. is not affected by
the announcement that Telemar Norte Leste S.A. reached an
agreement to buy control of Amazonia. Moody's also affirmed the
ratings of Telemar Norte Leste S.A. (corporate family rating
Baa2 and national scale rating Aaa.br with a stable outlook).
The rationale for maintaining the B2 rating under review for
possible upgrade is based on Moody's view that Amazonia's credit
profile will benefit from being controlled by Telemar, the
largest integrated telecommunications company with a
significantly stronger credit profile.
The review will focus on the perceived benefits from being
controlled by Telemar as well as the possibility that Amazonia
would receive support from Telemar should it become unable to
make its debt service payments on a timely basis. Additionally,
the review will continue to focus on the company's growth
strategy, expected synergies as a result of this transaction,
ability to generate cash flow and address its near-term
refinancing needs on a timely basis.
The announced transaction refers to Telemar's BRL120-million
acquisition of VIVO Participacoes S.A.'s 51.86% of Tele Norte
Participacoes' voting shares (Amazonia's holding company),
giving Telemar control of Amazonia with a 19.34% economic stake.
The deal is subject to approval from telecom regulator Anatel,
CADE (anti-trust authority) and the shareholders' meetings of
Telemar.
Headquartered in Belo Horizonte, Brazil, Telemig Celular is the
leading provider of mobile communications services in the state
of Minas Gerais, Brazil. As of June 30, 2007, Telemig had 3.54
million subscribers, with a market share of 30% in its
concession area. Headquartered in Belem, Brazil, Amazonia
Celular is the leading provider of mobile communications
services in a region covering the states of Maranhao, Para,
Amazonas, Amapa and Roraima in the northern region of Brazil.
As of June 30, 2007, Amazonia had 1.29 million subscribers, with
a market share of 22% in its concession area.
* BRAZIL: Petrobras Grants Interest Distribution on Net Equity
--------------------------------------------------------------
Petroleo Brasileiro SA's Board of Directors has approved
remuneration distribution to shareholders in the form of
interest on net equity, as provided for by article 9 of Law
9.249/95 and Decrees 2.673/98 and 3.381/00.
The value to be distributed, totaling BRL1.316 billion and
corresponding to a gross value of BRL0.30 per ordinary or
preferred share, is being provisioned in the December 31 2007
financial statements and is expected to be paid out by April 30,
2008, based on the shareholding position on Jan. 11 2008.
As of Jan. 14 2008, the shares will start being traded ex-
interest on net equity. Under the terms of decrees 2.673/98 and
3.381/00, on account of the fact the payment will be made after
Dec. 31 2007, the SELIC rate variation will be applied between
December 31 2007 and the actual payment date.
Interest on net equity must be discounted from the remuneration
that is distributed at the end of the 2007 fiscal year and is
subject to 15% withholding tax, except for shareholders who
declare to be immune or exempt of such tax.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.
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
===========================
ANNOTEC LIMITED: Will Hold Final Meeting Today
----------------------------------------------
Annotec Limited will hold its final shareholders meeting on
Jan. 2, 2008, at 10:00 a.m. at:
4th Floor, FirstCaribbean House
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Annotec'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 liquidator can be reached at:
Condor Nominees Limited
c/o Barclays Private Bank & Trust (Cayman) Limited
4th Floor, FirstCaribbean House
25 Main Street, George Town
Grand Cayman, Cayman Islands
ANRO VENTURES: Proofs of Claim Filing Is Until Jan. 8
-----------------------------------------------------
Anro Ventures Ltd.'s creditors are given until Jan. 8, 2008, to
prove their claims to Eagle Holdings Ltd., the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Anro Ventures' shareholders agreed on April 26, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Eagle Holdings Ltd.
c/o Barclays Private Bank & Trust (Cayman) Limited
4th Floor, FirstCaribbean House
P.O. Box 487, George Town
Grand Cayman KY1-1106
ASIA PRINTING: Final Shareholders Meeting Is on Jan. 7
------------------------------------------------------
Asia Printing Holdings Ltd. will hold its final shareholders
meeting on Jan. 7, 2008, at 2:00 p.m. at:
8th Floor, Gloucester Tower
The Landmark, 15 Queen's Road Central
Hong Kong
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving any explanation thereof.
Asia Printing's shareholders agreed on Nov. 26, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Floor, Gloucester Tower
The Landmark, 15 Queen's Road Central
Hong Kong
EASYJET HAMBURG: Holding Final Shareholders Meeting on Jan. 7
-------------------------------------------------------------
Easyjet Hamburg Limited will hold its final shareholders meeting
on Jan. 7, 2008, at 10:00 a.m. at:
Grant Thornton
5th Floor, Bermuda House
Dr. Roy's Drive, Georgetown
Grand Cayman, Cayman Islands
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.
Proxies: Any person who is entitled to attend and vote at this
meeting may appoint a proxy to attend and vote in his stead. A
proxy need not be a member or creditor.
Easyjet Hamburg's shareholders agreed on Nov. 16, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Terry W. Carson
Roy Welsby
P.O. Box 1044, George Town
Georgetown, Grand Cayman
Telephone: (345) 949-8588
Fax: (345) 949-7325
ELKA FUNDING: Holding Final Shareholders Meeting on Jan. 4
----------------------------------------------------------
Elka Funding Limited will hold its final shareholders meeting on
Jan. 4, 2008, at 12:00 p.m. at the company's registered office.
These agenda will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidators 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.
Elka Funding's shareholders agreed on Nov. 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
FEY INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 8
----------------------------------------------------------
Fey Investments Ltd.'s creditors are given until Jan. 8, 2008,
to prove their claims to Condor Nominees Limited, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Fey Investments' shareholders agreed on Nov. 22, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Condor Nominees Limited
c/o Barclays Private Bank & Trust (Cayman) Limited
4th Floor, FirstCaribbean House
P.O. Box 487, George Town
Grand Cayman KY1-1106
FEY INVESTMENTS: Holding Final Shareholders Meeting on Jan. 9
-------------------------------------------------------------
Fey Investments Ltd. will hold its final shareholders meeting on
Jan. 9, 2008, at:
4th Floor, FirstCaribbean House
Grand Cayman, Cayman Islands
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.
Proxies: Any person who is entitled to attend and vote at this
meeting may appoint a proxy to attend and vote in his stead. A
proxy need not be a member or creditor.
Fey Investments' shareholders agreed on Nov. 22, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Condor Nominees Limited
c/o Barclays Private Bank & Trust (Cayman) Limited
4th Floor, FirstCaribbean House
25 Main Street, George Town
Grand Cayman, Cayman Islands
HARRIS MCLEAN: Proofs of Claim Filing Deadline Is Jan. 7
--------------------------------------------------------
Harris Mclean Financial Group's creditors are given until
Jan. 7, 2008, to prove their claims to Jeffrey Parker, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Harris Mclean's shareholders agreed on Nov. 28, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Jeffrey Parker
Chris Johnson Associates Limited
P.O. Box 2499, George Town
Elizabethan Square, Grand Cayman
Cayman Islands
MCT RUSSIAN: Proofs of Claim Filing Ends on Jan. 9
--------------------------------------------------
MCT Russian Telecommunications Limited's creditors are given
until Jan. 9, 2008, to prove their claims to BT Trustees Ltd.,
the company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
MCT Russian's shareholder decided on Oct. 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:
MBT Trustees Ltd.
P.O. Box 30622 S.M.B.
Grand Cayman, Cayman Islands
Telephone: 945-8859
Fax: 949-9793/4
MCT RUSSIAN: Sets Final Shareholders Meeting for Jan. 9
-------------------------------------------------------
MCT Russian Telecommunications Limited will hold its final
shareholders meeting on Jan. 9, 2008, at 12:00 p.m. at:
MBT Trustees Ltd
3rd Floor, Piccadilly Center
Elgin Avenue George Town, Grand Cayman
Cayman Islands
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.
Proxies: Any person who is entitled to attend and vote at this
meeting may appoint a proxy to attend and vote in his stead. A
proxy need not be a member or creditor.
MCT Russian's shareholders agreed on Oct. 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:
MBT Trustees Ltd.
P.O. Box 30622 SMB, Grand Cayman
Cayman Islands
Telephone: 945-8859
Fax: 949-9793/4
PARMALAT SPA: Receives EUR396 Million in Settlement with Banks
--------------------------------------------------------------
Parmalat S.p.A. and Intesa Sanpaolo S.p.A. communicate that
agreement has been reached, which settles all reciprocal claims
that led to litigation arising from operations in the period
preceding the insolvency declaration of the Parmalat Group in
December 2003.
The settlement brings all pending revocatory and damages actions
and all reciprocal claims eventually to be filed to an end.
Intesa Sanpaolo Group will pay EUR310 million.]
Furthermore, Parmalat S.p.A. communicates that an agreement has
been reached with Cassa di Risparmio di Parma e Piacenza S.p.A.
which settles all reciprocal claims with the companies under
extraordinary administration procedures and Parmalat on one
hand, and Cariparma on the other hand, with withdrawal of all
pending or possible revocatory and damages actions with payment
by Cariparma of a total amount of EUR83 million.
Within the same framework an agreement has been reached for the
settlement of the revocatory actions against Biverbanca S.p.A.,
with withdrawal of all actions and payment of a total amount of
EUR3 million.
Similar settlements have been reached between the Intesa
Sanpaolo Group and Cariparma on one side and the Commissioner of
the Extraordinary Administration of the Parmatour Group and of
Parma Associazione Calcio and of the other companies of the
former Parmalat Group still in Extraordinary Administration on
the other side.
These agreements establish the withdrawal of all the pending and
potential actions by the Extraordinary Commissioner and:
-- the payment by the Intesa Sanpaolo Group of an amount of
EUR12.5 million to the Parmatour Group under Extraordinary
Administration and the payment of EUR2.5 million to Parma
Associazione Calcio under Extraordinary Administration and
the payment of a total amount of EUR2 million to the other
companies under Extraordinary Administration;
-- the payment by Cariparma of an amount of EUR2.5 million to
the Parmatour Group under Extraordinary Administration and
the payment of EUR2.5 million to Parma Associazione Calcio
under Extraordinary Administration and the payment of
EUR2 million to the other companies under Extraordinary
Administration;
Parmalat and Intesa Sanpaolo and the Extraordinary Commissioner
express their satisfaction on the settlement.
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that
can be stored at room temperature for months. It also has about
40 brand product lines, which include yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.
The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases. On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York. In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted
Parmalat Permanent Injunction.
=========
C H I L E
=========
FREEPORT-MCMORAN: Declares Dividends on Preferred, Common Stocks
----------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. has declared these quarterly
cash dividends payable on Feb. 1, 2008, to holders of record as
of Jan. 15, 2008:
-- US$0.4375 per share of FCX's Common Stock.
-- US$1.6875 per share of FCX's 6_% Mandatory Convertible
Preferred Stock.
-- US$13.75 per share of FCX's 5«% Convertible Perpetual
Preferred Stock.
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
-- http://www.fcx.com/-- is an international mining industry
leader based in North America with large, long-lived,
geographically diverse assets and significant proven and
probable reserves of copper, gold and molybdenum. Freeport-
McMoRan has one of the most dynamic portfolios of operating,
expansion and growth projects in the copper mining industry.
The Grasberg mine in Indonesia, the world's largest copper and
gold mine in terms of reserves, is the company's key asset.
Freeport-McMoRan also operates significant mining operations in
North and South America and is developing the world-class Tenke
Fungurume project in the Democratic Republic of Congo.
The completion of Freeport-McMoran's acquisition further expands
the company's global operations. The former Phelps Dodge Corp.
has mining operations in Chile, Peru, Colombia, Venezuela and
Ecuador, among others.
As reported in the Troubled Company Reporter-Latin America on
Oct. 1, 2007, Moody's Investors Service revised Freeport-McMoRan
Copper & Gold Inc.'s outlook to positive and affirmed all of its
other ratings. The ratings reflect the overall probability of
default of Freeport, to which Moody's assigns a PDR of Ba2.
Ratings affirmed:
Issuer: Freeport-McMoRan Copper & Gold Inc.
-- Corporate Family Rating: Ba2;
-- Probability of Default Rating: Ba2;
-- US$0.5 billion Senior Secured Revolving Credit
facility, Baa2, LGD1, 2%;
-- US$1.0 billion Senior Secured Revolving Credit
Facility, Baa3, LGD2, 17%;
-- US$2.45 billion Senior Secured Term Loan A, Baa3,
LGD2, 17%;
-- US$339.7 million 6.875% Senior Secured Notes due
2014, Baa3, LGD2, 17%; and
-- US$6 billion Senior Unsecured Notes: Ba3, LGD5, 80%.
===============
C O L O M B I A
===============
INTERCONEXION ELECTRICA: Buys Betania Substation for COP38 Bil.
---------------------------------------------------------------
Colombia's state-run transmission firm Interconexion Electrica
SA said in a filing with financial regulator Superfinanciera
that it has purchased the Betania substation at its hydro plant
in Yaguara, Huila.
Business News Americas relates that Colombian company PESA sold
Betania for COP38 billion.
According to BNamericas, Betania uses 230 and 115-volt equipment
to connect to the Colombian national grid through the Betania-
Mirolindo and Betania-Bernardino lines.
Interconexion Electrica said in the filing that it will generate
funds from regulated revenue from the STN national transmission
network and from private connection contracts with power firm
Electrificadota del Huila.
Interconexion Electrica will take over Betania in January 2008,
BNamericas states.
As reported in the Troubled Company Reporter-Latin America on
March 8, 2007, Standard & Poor's Ratings Services raised its
foreign currency long-term corporate credit rating on
Interconexion Electrica S.A. E.S.P. to 'BB+' from 'BB' and
affirmed the 'BBB-' local currency rating on the company. S&P
said the outlook is stable.
==================================
D O M I N I C A N R E P U B L I C
==================================
GENERAL CABLE: Gregory Kenny Steps Down as President & CEO
----------------------------------------------------------
General Cable Corp. disclosed in a regulatory 8-K filing with
the U.S. Securities and Exchange Commission dated Dec. 21, 2007,
that Gregory B. Kenny, president and chief executive officer and
a Director, of the company has terminated his existing
employment agreement and change-in-control agreement with
General Cable effective Dec. 31, 2007.
Mr. Kenny's employment agreement was entered into on
Oct. 18, 1999, with a three-year term subject to one-year
extensions and has been amended since that date principally to
reflect changes in his officer positions and responsibilities.
Mr. Kenny's change-in-control agreement was entered into on
Oct. 18, 1999, and was amended and restated on April 28, 2000.
In addition to terminating Mr. Kenny's employment and change-in-
control agreements, the Termination Agreement provides that
Mr. Kenny will receive salary and incentive compensation as
determined by the Board's Compensation Committee as well as
employee benefits, which similarly situated General Cable
employees are eligible to receive. Mr. Kenny also agreed in the
Termination Agreement to certain noncompetition and
nonsolicitation provisions.
The company further disclosed to the SEC that Robert J. Siverd,
executive vice president, general counsel and secretary,
likewise terminated his existing employment agreement and
change-in-control agreement with General Cable effective
Dec. 31, 2007. In addition to terminating his employment and
change-in-control agreements, the Siverd Termination Agreement
provides that Mr. Siverd will receive a salary and incentive
compensation as determined by the Board's Compensation Committee
as well as employee benefits which similarly situated General
Cable employees are eligible to receive. Mr. Siverd also agreed
in his Termination Agreement to certain noncompetition and
nonsolicitation provisions.
In addition Brian J. Robinson, senior vice president and chief
financial officer, entered into a Novation Agreement with
General Cable effective Dec. 31, 2007, under which Mr. Robinson
releases his right to receive severance payments under his
Letter Agreement of Sept. 14, 2003, in exchange for
participation under the Severance Plan. Mr. Robinson also
agreed in his Novation Agreement to certain noncompetition and
nonsolicitation terms set forth in that Novation Agreement.
About General Cable
Headquartered in Highland Heights, Kentucky, General Cable
Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes
aluminum, copper, and fiber-optic wire and cable products. It
has three operating segments: industrial and specialty (wire and
cable products conduct electrical current for industrial and
commercial power and control applications); energy (cables used
for low-, medium- and high-voltage power distribution and power
transmission products); and communications (wire for low-voltage
signals for voice, data, video, and control applications).
Brand names include Carol and Brand Rex. It also produces power
cables, automotive wire, mining cables, and custom-designed
cables for medical equipment and other products. General Cable
has locations in China, Australia, France, Brazil, the Dominican
Republic and Spain.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 1, 2007, Moody's Investors Service has assigned a rating of
B1 to the proposed US$400 million senior unsecured convertible
notes of General Cable Corporation.
As reported in the Troubled Company Reporter on Sept. 19, 2007,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on General Cable Corp. S&P said the outlook is
stable.
=============
E C U A D O R
=============
PETROECUADOR: Armed Forces To Safeguard Hydrocarbons Facilities
---------------------------------------------------------------
Ecuadorian state-owned oil firm Petroecuador has signed a
cooperation accord with the nation's defense ministry to
authorize the armed forces to safeguard state hydrocarbons
infrastructure, Business News Americas reports.
BNamericas relates that the output of Petroecuador's production
unit Petroproduccion declined by 5,000 barrels per day in
November 2007 due to protests in Orellana. In October 2007,
four days of protests in the Shushufindi area decreased output
by 26,227 barrels.
Petroecuador said in a statement that it will pay the ministry
US$10 million yearly for four years.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
PETROECUADOR: Awards Three Fields to Pegaso & Amazonico
-------------------------------------------------------
Ecuadorian state-run oil firm Petroecuador's special tenders
committee has awarded marginal fields Pucana, Puma and Singue,
Business News Americas reports, citing energy and mines minister
Galo Chiriboga.
The Ecuadorian presidential Web site posted that Puma was
awarded to consortium Petrolero Pegaso, while consortium
Petrolero Amazonico won the fields Pucuna and Singue.
According to BNamericas, Petrolero Pegaso and Petrolero
Amazonico will invest over US$200 million in the next three
years to boost production at the fields.
BNamericas notes that Petroecuador eyes a 10,000-barrel-per-day
increase of output in the fields.
The report says that the Ecuadorian government will still award
these marginal fields:
-- Armadillo,
-- Chanangue,
-- Eno Ron,
-- Frontera-Tapi-Tetete, and
-- Ocano-Pena Blanca.
The fields could be awarded in a new round in January,
BNamericas states, citing Minister Chiriboga.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Finalizes US$4.4-Billion Contract with Boeing
--------------------------------------------------------------
Boeing and London-based British Airways have finalized an order
for eight Boeing 787-8s and 16 787-9s, raising the total number
of 787s ordered worldwide from 766 to 790 and taking the 787
order book past the 787th mark. The order is valued at US$4.4
billion at list prices. British Airways also placed options for
18 787s and purchase rights for an additional 10.
Willie Walsh, British Airways' chief executive, said, "The 787
is a fantastic aircraft and will be a welcome addition to our
fleet. It will provide major environmental improvements in
terms of global emissions, local air quality and noise.
"With lower operating costs and the range to fly to all our
destinations, it will give us more flexibility when planning our
route network and we are confident that our customers will enjoy
flying on the aircraft," Mr. Walsh said.
British Airways first announced its selection of the 787
Dreamliner as a key element of its long-haul fleet renewal last
September. The carrier also announced in September that it will
power its 787s with the Rolls-Royce Trent 1000.
"This order is a vote of confidence from one of the world's
leading global network carriers in the 787's unprecedented
performance," said Marlin Dailey, vice president of Sales for
Europe, Russia and Central Asia, Boeing Commercial Airplanes.
"No other airplane in its category offers British Airways the
superior efficiency, economics and passenger comfort while also
fitting so easily into its medium- and long-haul twin-aisle
fleet."
"Reaching the 787th order is significant for the program, and
it's great that we get to celebrate it with British Airways.
Their leadership in the industry validates our momentum in the
marketplace," said Patrick Shanahan, vice president and general
manager, 787 Program.
The 787 will help British Airways meet aggressive environmental
performance targets. It will reduce CO2 emissions and has a
noise footprint that is more than 60 percent smaller than those
of today's similarly sized airplanes.
Common elements between the 787 and British Airways' 777 flight
deck will allow for 777 pilots to train for 787 certification in
only five days.
The 787 also offers more cargo-revenue capacity than the 767 and
similarly sized airplanes.
With 790 orders in three years, the 787 remains the most
successful airplane launch in aviation history.
Boeing developed the 787 for the mid-sized jetliner market,
estimated at 3,500 aircraft over the next 20 years. The 787
will be more than 50 percent advanced carbon composites which
allow the largest windows in the industry, higher cabin humidity
and a lower cabin altitude that reduces the fatigue often
experienced by passengers.
High-efficiency engines combined with a lighter airframe and
improved aerodynamics mean the 787 will produce seat-mile costs
normally associated with much larger aircraft.
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
British Airways' senior unsecured debt carries Moody's
Investors' Service's Ba1 rating since Aug. 14, 2007, with a
stable outlook. The rating still applies to date.
=============
J A M A I C A
=============
CENVEO INC: Inks Definitive Pact to Acquire Rex Corporation
-----------------------------------------------------------
Cenveo Inc.'s Chairman and Chief Executive Officer Robert G.
Burton, Sr., has signed a definitive agreement to acquire Rex
Corporation, in an all-cash transaction. Rex is one of the
largest independent manufacturers of premium and high-quality
packaging solutions with over 35 years' industry experience.
Rex generates annual revenues of over US$40 million. The
transaction is expected to be completed in the first quarter of
2008 and to be accretive to earnings in 2008. The transaction
is currently expected to be funded using the Company's
revolver. Closing of the transaction is also subject to other
conditions, which were not disclosed.
Rex, located in Jacksonville, Fla., is recognized for its
outstanding quality, craftsmanship and high levels of customer
service. Many of the world's premier consumer products
manufacturers depend on Rex Corporation for their "single
source" packaging solution, with design, production, and
distribution all handled from one location. Rex's highly
skilled workforce of 170 employees has won numerous awards for
quality over the years for their work in servicing the
pharmaceutical, healthcare, cosmetics, personal care, food &
beverage and apparel markets.
Mr. Burton stated: "The addition of Rex will strengthen our
position in the specialty packaging marketplace. Rex's
reputation as an outstanding manufacturer of high-quality
packaging will enhance our existing global packaging network
and will provide for sizable synergy opportunities as we
integrate our operations. I look forward to working with
Chipper and his team as we work toward a swift completion of
this transaction."
Y.E. "Chipper" Hall, President of Rex stated: "As an innovative
and lean enterprise in the folding carton industry, the
combination of Rex with Cenveo and Cadmus Whitehall is a natural
progression for our people and our customers. Cenveo and Rex
share many common goals and workflows, which will offer our
customers an unmatched value to support the growth of their
businesses in the future, both domestically and globally. We
look forward to working with the Cenveo and Cadmus Whitehall
team to provide these increased benefits to our customers
and our people."
Cenveo also announced that Gerald S. Armstrong has been
appointed to the company's Board of Directors effective Dec. 31.
Mr. Armstrong is presently an Executive Vice President of
EarthWater Global, LLC, an exploration company. Mr. Armstrong
is also a Managing Director of Arena Capital Partners, LLC, a
private investment firm. Mr. Armstrong served as President and
Chief Operating Officer of PACE Industries, Inc., a holding
company formed at the end of 1983 to effect the purchase,
through a US$1.7 billion leveraged buyout arranged by KKR with
Merrill Lynch Capital Partners, of the manufacturing and
printing assets of City Investing Company, including Rheem
Manufacturing, Co., World Color Press, Inc., UARCO, Inc. and
Hayes International, Inc.
The Company also announced that effective Dec. 31, 2007, Robert
Kittel will be stepping down as a Director of the Company due to
increasing demands on his time and the expanded role he has
assumed at Goodwood, Inc.
Mr. Burton concluded: "I am extremely pleased to announce the
appointment of Jerry Armstrong as a Director of the Company. I
have known him since 1991 and couldn't think of a better fit.
He brings with him great experience in the printing sector with
close to 25 years of knowledge and hands-on experience,
including working with me at World Color during the turnaround
efforts at that company. Jerry will bring an important industry
perspective to the Board, and I want to personally welcome him
to the team."
"I am sad to also announce that Rob Kittel will be stepping down
as Director at year end. Rob played a pivotal role in helping
our team assume leadership and control of Cenveo as well as in
bringing strong financial acumen to the Board. Rob informed me
that he wanted to spend 100% of his time focusing on his full
time job at Goodwood Inc., which has grown substantially since
our arrival at Cenveo, and I support his decision. On behalf of
the entire Board, I want to thank Rob for his hard work, and
look forward to continuing to work with him and the Goodwood
team as they remain a large shareholder."
Cenveo Inc. -- http://www.cenveo.com/-- (NYSE:CVO),
headquartered in Stamford, Connecticut, is a leader in the
management and distribution of print and related products and
services. The company provides its customers with low-cost
solutions within its core business of commercial printing and
packaging, envelope, form, and label manufacturing, and
publisher services; offering one-stop services from design
through fulfillment. With over 10,000 employees worldwide,
Cenveo delivers everyday for its customers through a network of
production, fulfillment, content management, and distribution
facilities across the globe.
Cenveo acquired Cadmus Communications in a merger completed on
March 2007. The company has operations in the US, India and the
Caribbean Rim, particularly in the Bahamas, Cuba, Jamaica,
Haiti, Dominican Republic, Puerto Rico, and Belize.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Standard & Poor's Ratings Services has raised its
ratings on Cenveo Inc. The corporate credit rating was raised
to 'BB-' from 'B+'. S&P said the rating outlook is stable.
===========
M E X I C O
===========
CINRAM INT'L: Implements Changes to Internal Debt Structure
-----------------------------------------------------------
Cinram International Income Fund is implementing changes to its
internal debt structure to address the tax consequences to
taxable U.S. unitholders, which would have otherwise resulted
from the Fund's suspension of distributions.
Background
On Nov. 5, 2007, Cinram disclosed the Fund's intention to
suspend all distribution payments following the distribution for
the month of December 2007. A distribution of CDN$0.1625
(previously CDN$0.2708) per unit was declared for November and
December 2007 to help address the potentially adverse tax
consequences to U.S. unitholders of the suspension of
distributions.
The Fund's distributions to unitholders are funded in part
through interest payments made on an inter-company note. For
U.S. federal income tax purposes, the Fund's unitholders are
treated as the beneficial owners of this inter-company debt. To
the extent that the Fund does not distribute cash equal to the
amount of the interest income, any shortfall is treated as
imputed income to unitholders for U.S. federal income tax
purposes. By maintaining a reduced distribution of CDN$0.1625
for November and December, management estimates that sufficient
cash will be distributed to avoid any imputation of income to
U.S. unitholders under U.S. federal income tax principles for
which there is no corresponding distribution of cash.
Internal Reorganization
To eliminate imputed income, on a going forward basis, for
unitholders subject to U.S. federal income tax, the Fund is
executing an internal reorganization by way of a series of
inter-company transfers. The initial inter-company transfer was
completed as of Dec. 14, 2007, and the balance of the transfers
will occur by year-end. The reorganization will result in
minimal cash tax leakage and a loss of tax basis which may
result in future capital gains; however, it should not have a
material impact on the Fund's 2007 and 2008 free cash flow
projections.
Information for U.S. Unitholders
The Fund recommends that unitholders subject to U.S. federal
income tax consult with their tax advisors to determine if they
are required to file an information return on Internal Revenue
Service Form 926 reporting the transfer of Cinram International
LLC to Cinram International Inc., one of the inter-company
transfers.
About Cinram
Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/
-- an indirect wholly owned subsidiary Cinram International
Income Fund, provides pre-recorded multimedia products and
related logistics services. With facilities in North America
and Europe, Cinram International Inc. manufactures and
distributes pre-recorded DVDs, VHS video cassettes, audio CDs,
audio cassettes and CD-ROMs for motion picture studios, music
labels, publishers and computer software companies around the
world. The company has sales offices in Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Moody's Investors Service affirmed the B1
Corporate Family rating and B1 Senior Secured debt rating of
Cinram International Inc. The rating action follows the
company's recent weaker than expected operating results, which
has caused Moody's to significantly reduce expectations for
Cinram's future profitability. The rating has nonetheless been
affirmed as Moody's believes Cinram's decision to eliminate all
distribution payments to unit holders should enable the company
to generate meaningful levels of free cash flow and maintain key
credit metrics appropriate for its current rating. The long
term ratings reflect a B2 probability of default and loss given
default assessment of LGD 3, 30% for the senior secured credit
facility. Moody's said the outlook remains stable.
CINRAM INT'L: Paying December 2007 Distributions on January 15
--------------------------------------------------------------
Cinram International Income Fund has declared a cash
distribution of CDN$0.1625 per unit for the month of December
2007, payable on Jan. 15, 2008, to unitholders of record at the
close of business on Dec. 31, 2007.
Cinram International Limited Partnership has also declared a
cash distribution of CDN$0.1625 per Class B limited partnership
unit for the month of December 2007, payable on Jan. 15, 2008,
to unitholders of record at the close of business on
Dec. 31, 2007.
On Nov. 5, 2007, the Fund disclosed a change in its distribution
policy based on a revised outlook for the Fund. It is the
Fund's intention to suspend all distribution payments following
the distribution for the month of December 2007.
Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/
-- an indirect wholly owned subsidiary Cinram International
Income Fund, provides pre-recorded multimedia products and
related logistics services. With facilities in North America
and Europe, Cinram International Inc. manufactures and
distributes pre-recorded DVDs, VHS video cassettes, audio CDs,
audio cassettes and CD-ROMs for motion picture studios, music
labels, publishers and computer software companies around the
world. The company has sales offices in Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Moody's Investors Service affirmed the B1
Corporate Family rating and B1 Senior Secured debt rating of
Cinram International Inc. The rating action follows the
company's recent weaker than expected operating results, which
has caused Moody's to significantly reduce expectations for
Cinram's future profitability. The rating has nonetheless been
affirmed as Moody's believes Cinram's decision to eliminate all
distribution payments to unit holders should enable the company
to generate meaningful levels of free cash flow and maintain key
credit metrics appropriate for its current rating. The long-
term ratings reflect a B2 probability of default and loss given
default assessment of LGD 3, 30% for the senior secured credit
facility. Moody's said the outlook remains stable.
FEDERAL-MOGUL: Emerges from Bankruptcy Protection in Delaware
-------------------------------------------------------------
Federal-Mogul Corporation and its debtor affiliates relate that
their Plan of Reorganization became effective on Dec. 27, 2007.
The Plan has been substantially consummated pursuant to Section
1101(2) of the Bankruptcy Code, according to Laura Davis Jones,
Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington
Delaware. All conditions contained in the Plan have been
satisfied or waived.
As reported in the Troubled Company Reporter on Nov. 12, 2007,
the Plan was confirmed by the U.S. Bankruptcy Court for the
District of Delaware on Nov. 8 and affirmed by the U.S. District
Court for the District of Delaware on November 14. The
Confirmation Order relating to the Plan is final and non-
appealable. The record date for holders of allowed claims and
equity interests under the Plan was Nov. 8.
Under the confirmed Plan, all entities are permanently stayed,
restrained and enjoined from taking any action for the purpose
of collecting, recovering or receiving payments or recovery with
respect to any asbestos personal injury claim or demand.
Moreover, all entities -- excluding the Asbestos Trust, the
Asbestos Insurance Companies and Reorganized Federal-Mogul to
the extent permitted or required to pursue claims relating to
the Hercules Policy, any EL Policy, and Asbestos Insurance
Actions and Asbestos Insurance Action Recoveries -- that have
asserted, assert, or may assert any claim or cause of action
against any Asbestos Insurance Company based on any Asbestos
Personal Injury Claim or Demand, are stayed.
"We are delighted to have reached this significant milestone in
Federal-Mogul's 108-year history of serving the global
automotive industry," Federal-Mogul Chairman, President and
Chief Executive Officer Jose Maria Alapont said. "We are
confident about our future and wish to acknowledge the support
and loyalty of our customers, suppliers and employees
worldwide."
"The company's performance reflects the dedication of the
Federal-Mogul team, paving the way toward emergence from Chapter
11," Mr. Alapont added. "We are committed to our global
strategy for sustainable profitable growth, as we remain focused
on creating value for our customers through innovative
technologies, leading products, operational and service
excellence, and best cost optimization in all areas of our
business."
All final requests for compensation or reimbursement of the fees
of any professional employed in the cases of Reorganized
Federal-Mogul, pursuant to Sections 327 or 1103 of the
Bankruptcy Code, must be filed and served on Reorganized
Federal-Mogul and its counsel no later than Feb. 25, 2008.
All requests for payment of an Administrative Claim against any
of the U.S. Debtors must be filed with the Bankruptcy Court and
served on the U.S. Trustee and counsel for Reorganized Federal-
Mogul no later than April 25, 2008.
About Federal-Mogul
Federal-Mogul Corporation -- http://www.federal-mogul.com/
-- (OTCBB: FDMLQ) is a global supplier, serving the world's
foremost original equipment manufacturers of automotive, light
commercial, heavy-duty, agricultural, marine, rail, off-road and
industrial vehicles, as well as the worldwide aftermarket.
Founded in Detroit in 1899, the company is headquartered in
Southfield, Michigan, and employs 45,000 people in 35 countries.
Aside from the U.S., Federal-Mogul also has operations in other
locations which includes, among others, Mexico, Malaysia,
Australia, China, India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed $10.15 billion in assets and $8.86
billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate,
Turner & Newall, is based at Dudley Hill, Bradford. Peter D.
Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D.
Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq.,
at The Bayard Firm represent the Official Committee of Unsecured
Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on
June 6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan. On
July 28, 2004, the District Court approved the Disclosure
Statement. The estimation hearing began on June 14, 2005. The
Debtors submitted a Fourth Amended Plan and Disclosure Statement
on Nov. 21, 2006, and the Bankruptcy Court approved that
Disclosure Statement on Feb. 6, 2007. The Bankruptcy Court
confirmed the Fourth Amended Plan on Nov. 8, 2007.
HARMAN INT'L: Gary Steel to Serve on Board of Directors
-------------------------------------------------------
Harman International Industries Incorporated has appointed Gary
Steel to serve as a member of the Company's Board of Directors.
In connection with this appointment, the Board was expanded from
seven to eight members. Mr. Steel will serve under this
appointment until November 2009, at which time he will stand for
reelection to the Board through the company's normal processes.
Mr. Steel, a Scottish citizen, currently serves as Executive
Committee member responsible for Human Resources at ABB Ltd., a
leading global supplier of power and automation technologies.
Previously, he served in a series of senior management positions
for the Shell group of energy and petrochemical companies. His
professional background includes extensive experience in human
resource development, restructuring, and corporate governance.
"We are delighted to welcome a global executive of Gary Steel's
competence to our Board of Directors," said Dr. Sidney Harman,
Chairman and Dinesh Paliwal, Chief Executive Officer. "Gary's
deep expertise in human resource development, strategic
initiatives and governance will serve as a valuable asset as we
carefully match our company's strategy to evolving global
markets and resources."
Headquartered in Washington, D.C., Harman International
Industries Inc. (NYSE: HAR) -- http://www.harman.com/-- makes
audio systems through auto manufacturers, including
DaimlerChrysler, Toyota/Lexus, and General Motors. Also the
company makes audio equipment, like studio monitors, amplifiers,
microphones, and mixing consoles for recording studios, cinemas,
touring performers, and others. Harman Int'l has operations in
Japan, Mexico and France.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 26, 2007, Standard & Poor's Ratings Services revised its
CreditWatch implications for the 'BB-' corporate credit rating
on Harman International Industries Inc. to positive from
developing.
GRUPO MEXICO: Cananea Protest To Last Into First Quarter 2008
-------------------------------------------------------------
The protest at Grupo Mexico SA, de C.V.'s Cananea copper mine
would continue throughout the first quarter 2008, Business News
Americas reports, citing Rodrigo Heredia, analyst with Mexican
bank IXE.
As reported in the Troubled Company Reporter-Latin America on
Dec. 19, 2007, protesters at the Cananea mine received
authorization from a Mexican court to continue their
demonstrations. Grupo Mexico, at the labor ministry's order,
negotiated with the STMMRM union to try to end a four-month
impasse which has kept operations paralyzed at the firm's
Cananea copper mine, San Martin zinc mine and Taxco silver-lead-
zinc mine. Grupo Mexico however failed to reach any agreement
with STMMRM. Union spokesperson Carlos Pavon Campos said the
protests against Grupo Mexico would continue. The union
demanded, among other things, the enhancement of safety
precautions in the mines as about 65 miners were killed in an
explosion at a Grupo Mexico coalmine last year. Union leaders
claimed that Grupo Mexico refused to consider its
recommendations for the safety of workers at Cananea. Grupo
Mexico alleged that the purpose of the union's protest was to
clear the name of their boss Napoleon Gomez, who escaped to
Canada in 2006 when arrest warrants for corruption charges were
issued against him. The union denied the allegation.
Mr. Heredia told BNamericas that Grupo Mexico's troubled
relationship with the union sparked repeated demonstrations
against the firm.
Mr. Heredia commented to BNamericas, "The conclusion here would
be that until this issue [is resolved] and the miners can
affiliate themselves with a new union, the conflict will
continue."
Mr. Heredia, assuming Cananea is at a standstill for the rest of
the first quarter 2008, expects Grupo Mexico to produce next
year up to 660,000 tons of copper, including output from its
Peruvian operations, BNamericas states.
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'. Fitch said the rating outlook is stable.
UNITED RENTALS: S&P Affirms BB- Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB-'
corporate credit rating on United Rentals Inc. (URI) and its
major operating subsidiary United Rentals (North America) Inc.
and removed all ratings from CreditWatch with negative
implications. The outlook is stable.
This action follows the termination by Greenwich, Connecticut-
based URI of its previously announced merger agreement with
affiliates of Cerberus Capital Management L.P. The implications
for the CreditWatch listing was revised to negative on
July 24, 2007, when URI announced that it was to be acquired by
Cerberus in a leveraged buyout. All ratings assigned to the
proposed transaction have been withdrawn.
At the same time, Standard & Poor's raised the rating on the
company's senior secured facilities to 'BB+', two notches above
the corporate credit rating, from 'BB-' due to a considerable
paydown in the term loan since it was issued and the increased
value of the company's fleet. The recovery rating has been
revised to '1', indicating expectations of very high (90%-100%)
recovery in the event of a payment default, from '2'. The
actions also reflect Standard & Poor's new recovery rating and
issue notching scale effective June 7, 2007.
"The ratings on URI reflect its weak business risk profile based
on its participation in the cyclical, highly competitive and
fragmented equipment rental sector, as well as its aggressive
financial policy," said Standard & Poor's credit analyst John
Sico. Somewhat moderating these risks are its position as the
world's largest provider of equipment rentals and good
geographic, product, and customer diversity. URI is North
America's largest construction equipment rental company, with
more than 690 locations in 48 states, Canada, and Mexico.
United Rentals Inc. -- http://www.unitedrentals.com/-- (NYSE:
URI) is an equipment rental company with an integrated network
of over 690 rental locations in 48 states, 10 Canadian provinces
and one location in Mexico. The company's approximately 11,500
employees serve construction and industrial customers,
utilities, municipalities, homeowners and others. The company
offers for rent over 20,000 classes of rental equipment with a
total original cost of US$4.3 billion.
===============
P A R A G U A Y
===============
TELECOM PERSONAL: Launches 3G Services to Five Argentine Cities
---------------------------------------------------------------
Telecom Personal has launched its 3G services to five coastal
cities, news daily El Cronista reports.
According to El Cronista, the services are now available at:
-- Mar del Plata,
-- Pinamar,
-- Caril,
-- Villa Gesell, and
-- San Bernardo.
Business News Americas relates that the 3G services include:
-- mobile broadband,
-- videoconferencing,
-- multimedia downloads,
-- E-mail, and
-- instant messaging.
BNamericas notes that Telecom Personal launched in May 2007 the
3G services in a limited area of Buenos Aires. The firm
expanded the service to Cordoba and Rosario in August and
October, respectively.
Telecom Personal's marketing director Guillermo Rivaben
previously told BNamericas that the firm eyes about one million
3G subscribers in two years.
Telecom Personal is the wireless provider of Telecom Argentina
SA, providing services in Argentina and Paraguay over a GSM
network. The company has 7.7 million users, with an estimated
30% market share in Argentina and a customer mix of 66% prepaid
and 34% postpaid as of June 30, 2006.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 13, 2006, Fitch Ratings affirmed Telecom Personal SA's
foreign and local currency Issuer Default Rating at 'B', and the
senior unsecured at 'B/RR4', and revised the Rating Outlook of
the international scale IDRs to Positive from Stable.
Approximately US$200 million in debt is affected by the rating
action. Fitch has also upgraded the national scale rating of
Personal to 'A(arg)' from 'BBB+(arg)' with a stable rating
outlook.
=====================
P U E R T O R I C O
=====================
AVNET INC: Operating Unit Signs Distribution Deal with Zarlink
--------------------------------------------------------------
Avnet Inc.'s operating group, Avnet Electronics Marketing, has
entered into a global distribution agreement with Zarlink
Semiconductor Inc.
Under the agreement, Avnet will distribute globally Zarlink's
optical and telecommunications products - including timing and
synchronization and voice processing devices, as well as the
recently acquired Legerity voice enhancement products.
"Avnet has a deep understanding of Zarlink's telecom and optical
product portfolios, backed by a strong technical team and solid
logistical capabilities," said Jeff Crocker, senior vice
president of worldwide sales for Zarlink Semiconductor. "This
translates into design expertise and support that will help
Zarlink's customers successfully develop compelling solutions."
"Avnet is honored to continue growing our relationship with
Zarlink and expanding our semiconductor and supply chain
offerings for both companies on a global basis. Zarlink's
recent acquisition of Legerity voice products further expands
their technical product portfolio, offering designers a
comprehensive line of products for a broad line of access,
residential and enterprise applications," said Ravi Kichloo,
senior vice president of global semiconductor business
development for Avnet Electronics Marketing.
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 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.
CARROLS CORP: Sept. 30 Balance Sheet Upside-Down by US$13 Mil.
--------------------------------------------------------------
Carrols Corp. reported financial results for the third quarter
ended Sept. 30, 2007.
At Sept. 30, 2007, the company's balance sheet total assets of
US$462.7 million and total liabilities of US$475.8 million,
resulting a stockholders' deficit of US$13.1 million. Deficit
at Dec. 31, 2006, was US$25.7 million.
Net income was US$4.9 million in the third quarter of 2007
compared to US$5.1 million in the third quarter of 2006.
Total revenues in the third quarter of 2007 increased 7.3% to
US$203.5 million from US$189.6 million in the third quarter of
2006. Revenues from the company's Hispanic Brand restaurants
increased 7.8% to US$103.8 million in the third quarter of 2007
from US$96.3 million in the third quarter of 2006 and revenues
from the company's Burger King restaurants increased 6.9% to
US$99.7 million in the third quarter of 2007 from US$93.3
million in the third quarter of 2006.
Total restaurant sales at the company's Burger King restaurants
increased US$6.4 million in the third quarter of 2007 due to a
comparable restaurant sales increase of 7.8% driven primarily
from a 6.0% increase in customer traffic, offset in part from
the closure of five Burger King restaurants since the beginning
of the third quarter of 2006.
Nine-Month Results
Net income was US$11.5 million in the first nine months of 2007
compared to US$9.7 million in the first nine months of 2006.
Total restaurant sales for the first nine months of 2007
increased US$29.4 million, or 5.2%, to US$591.2 million from
US$561.7 million in the first nine months of 2006 due to sales
increases at the company's Hispanic Brand restaurants of US$19.8
million, or 6.9%, and a 4.6% sales increase at its comparable
Burger King restaurants. Restaurant sales at the company's
Hispanic Brand restaurants were US$306.1 million in the first
nine months of 2007.
Company Borrowings
At Sept. 30, 2007, US$120.0 million principal amount of term
loan borrowings were outstanding under the term loan A facility
and US$1.2 million of borrowings were outstanding under the
revolving credit facility. After reserving US$16.0 million for
letters of credit guaranteed by the facility, US$47.8 million
was available for borrowings under the revolving credit facility
at Sept. 30, 2007.
About Carrols Corp.
Headquartered in Syracuse, New York, Carrols Corp., a wholly
owned subsidiary of holding company Carrols Restaurant Group,
Inc. (Nasdaq: TAST), operates, as franchisee, 325 quick-service
restaurants under the trade name "Burger King" in 12
Northeastern, Midwestern and Southeastern states. The company
also owns and operates 83 Pollo Tropical restaurants of which 80
were located in Florida and three were located in the New York
City metropolitan area and franchised a total of 27 Pollo
Tropical restaurants, consisting of 23 in Puerto Rico, two in
Ecuador and two on college campuses in Florida. The company
also owns and operates 147 Taco Cabana restaurants located
primarily in Texas and franchised two Taco Cabana restaurants in
New Mexico and one in Georgia.
* * *
As reported in the Troubled Company Reporter on Dec. 27, 2007,
Moody's Investors Service affirmed the B2 corporate family
rating of Carrols Corporation. In addition, Moody's raised the
rating on the company's $180 million guaranteed senior
subordinated notes to B3, 75%, LGD-5 from Caa1, 79%, LGD-5.
Moody's said the outlook is stable.
===================================
T R I N I D A D A N D T O B A G O
===================================
HERCULES OFFSHORE: Concludes Sale of Assets to Petrex Sudamerica
----------------------------------------------------------------
Hercules Offshore, Inc., said in a statement that it has
concluded the sale of its fleet of nine drilling rigs and
related assets to Venezuelan firm Petrex Sudamerica and Brazil's
Saipem Perfuracoes e Construcoes Petroliferas.
Business News Americas relates that Hercules Offshore disclosed
the deal in November 2007 as part of its strategy to concentrate
on shallow-water oilfield services. The assets sold include six
land rigs in Venezuela and one in Trinidad & Tobago. The assets
were sold for US$107 million.
Hercules Offshore had said that it is considering opportunities
on the Mexican side of the Gulf of Mexico, BNamericas states.
Headquartered in Houston, Texas, USA, Hercules Offshore, Inc.
(Nasdaq: HERO) provides shallow-water drilling and lift boat
services to the oil and natural gas exploration and production
industry in the United States Gulf of Mexico and
internationally. It operates a fleet of nine jack-up rigs that
are capable of drilling in maximum water depths ranging from 85
to 250 feet and a fleet of 64 lift boats with leg lengths
ranging from 105 to 260 feet. Its services are organized in
four segments, Domestic Contract Drilling Services,
International Contract Drilling Services, Domestic Marine
Services and International Marine Services. The company's
Domestic Contract Drilling Services and Domestic Marine Services
are conducted in the United States Gulf of Mexico, its
International Contract Drilling Services are conducted offshore
Qatar and India, and its International Marine Services are
conducted in West Africa. The company also has operations in
Venezuela, Trinidad and Mexico.
* * *
On June 2007, Standard and Poor's Ratings Services raised the
corporate credit rating on Hercules Offshore Inc. to 'BB-' from
'B'. The outlook on the long-term issuer credit rating was
stable. At the same time, the ratings on Hercules Offshore were
removed from CreditWatch with positive implications, where they
were placed on March 19, 2007.
Standard & Poor's also assigned its 'BB' rating and '2' recovery
rating to Hercules Offshore's proposed US$1.05 billion bank
facilities.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Prices Cash Tender Offer for Bonds
----------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA said in
a statement that it has disclosed the pricing of its cash tender
offer for outstanding bonds for its Cerro Negro heavy crude
project.
As reported in the Troubled Company Reporter-Latin America on
Dec. 4, 2007, Petroleos de Venezuela commenced, on
Nov. 29, 2007, a cash tender offer for any and all of the
outstanding:
-- 7.33% bonds due 2009 (CUSIP Nos. 156877AA0/G2025MAA9;
ISIN No. USG2025MAA92),
-- 7.90% bonds due 2020 (CUSIP Nos. 156877AB8/G2025MAB7;
ISIN No. USG2025MAB75) and
-- 8.03% bonds due 2028 (CUSIP Nos. 156877AC6/G2025MAC5;
ISIN No. USG2025MAC58) issued by Cerro Negro Finance, Ltd.
in connection with the Cerro Negro extra-heavy crude oil
project in the Orinoco Belt region.
Business News Americas relates that the "applicable purchase
price for each US$1,000 principal amount of each validly
tendered bond" before Dec. 27 and accepted for purchase by
Petroleos de Venezuela will be:
-- US$1,019.19 for the 2009 bonds,
-- US$1,080.00 for the 2020 bonds, and
-- US$1,124.95 for the 2028 bonds.
According to Petroleos de Venezuela's statement, the firm had
received as of Dec. 26 valid tenders and consents from holders
of US$454 million in aggregate principal amount of the bonds,
accounting for 96.7% of the outstanding bonds.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, US$2 billion notes due 2027, and US$1 billion notes due
2037.
PETROLEOS DE VENEZUELA: Reports 26.5B Barrels of Oil in Junin 1
---------------------------------------------------------------
Venezuelan state-owned oil company Petroleos de Venezuela SA
told Rigzone.com that it found 26.5 billion barrels of oil in
bloc Junin 1 at the Orinoco oil belt.
As reported in the Troubled Company Reporter-Latin America on
Dec. 12, 2007, Petroleos de Venezuela and Belarus' state-oil
company Belarus Neft are already in partnership in Junin I
block, which requires a US$120-million investment to drill nine
wells.
"Original onsite oil" increased 30% over the initial estimates
of 20.5 billion barrels of crude oil, which would make a
positive impact on the target of the Orinoco Magna Reserve
Project in the Junin area, Rigzone.com reports.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
As reported on March 28, 2007, Standard & Poor's Ratings
Services assigned its 'BB-' senior unsecured long-term credit
rating to Petroleos de Venezuela S.A.'s US$2 billion notes due
2017, US$2 billion notes due 2027, and US$1 billion notes due
2037.
***********
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 Rita K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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