/raid1/www/Hosts/bankrupt/TCRLA_Public/080118.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, January 18, 2008, Vol. 9, Issue 13
Headlines
A R G E N T I N A
ALITALIA SPA: Commences Exclusive Talks with Air France-KLM
DELTA AIR: S&P Says Merger Talks Have No Effect on Ratings
FEDERAL MOGUL: Board Appoints C. Icahn as Non-Executive Chairman
FORD MOTOR: Appoints Mr. Osborne as New President of AU Unit
FRUTEXPORT SRL: Proofs of Claim Verification Is Until Feb. 22
GLOBAL CROSSING: Building A New Facility in Henrietta, New York
QUEBECOR WORLD: Extends Conditions Deadline to Jan. 20
TIMKEN CO: Gets US$2.4 Mil. Advanced Bearing Materials Project
* ARGENTINA: Picks Alstom for Link Construction Project
B A R B A D O S
DIGICEL GROUP: Reports Over Six Million Subscribers in 2007
B E R M U D A
CLAYTON PARTNERS: Proofs of Claim Filing Deadline Is Jan. 21
MAN ETZEL: Proofs of Claim Filing Ends Today
SEA CONTAINERS: Court Extends Plan-Filing Period to February 20
SEA CONTAINERS: Sopris Capital Reports Ownership of SCL Shares
B O L I V I A
PETROBRAS ENERGIA: Carlos de Oliveira To Quit as Director
B R A Z I L
AMR CORP: Posts US$69 Million Net Loss in Fourth Quarter 2007
AMR CORP: Brings In Two New Members to Board of Directors
ASPEN TECH: Reports Preliminary 2008 Second Quarter Results
BANCO NACIONAL: Okays BRL845,000 Loan for Church Restoration
BANCO NACIONAL: Grants BRL845,000 Loan to Fundacao Municipal
DELPHI CORP: Obtains "Broad-Based" Support on Plan
DRESSER-RAND: Taps Kronos for Workforce Management Services
EL PASO: Unit Enters Into Agreements Over Non-Core Properties
FIAT SPA: Buys Back 3.86 Million Ordinary Shares
FIAT SPA: Magneti Unit Forms Joint Venture with Sumi Motherson
HYLAND SOFTWARE: Denali Union Uses OnBase Technology in Policy
JAPAN AIRLINES: May See Operating Profit of JPY48BB for FY08
KENDLE INT'L: Hires Ross Horsburgh to Lead Asia/Pacific Unit
NOBLE GROUP: S&P Revises Outlook; Affirms BB+ Corporate Rating
PARANA BANCO: Completes Acquisition of J Malucelli
SUN MICROSYSTEMS: Expects Up to US$265MM Net Income in 2nd Qtr.
SUN MICROSYSTEMS: Inks Acquisition Pact with MySQL for US$1 Bil.
TEREX CORP: Appoints Four Officers to Senior Executive Roles
UAP HOLDING: Board Declares US$0.225 Per Share Dividend
* BRAZIL: Petrobras' Reserve Reposition Index Is 134.6% in 2007
* BRAZIL: Gets US$176.7MM Loan for Urban Transportation Program
C A Y M A N I S L A N D S
AGILE PARTNERS: Holding Final Shareholders Meeting on Jan. 25
AGILE PARTNERS EXCALIBUR: Final Shareholders Meeting on Jan. 25
AZIMUTH CP: Sets Final Shareholders Meeting for Jan. 25
AZIMUTH CP HEDGE: Final Shareholders Meeting Is on Jan. 25
CENTERRA GOLD: Holding Final Shareholders Meeting on Jan. 25
JLOC VII: To Hold Final Shareholders Meeting on Jan. 25
MOORE TECHNOLOGY: To Hold Final Shareholders Meeting on Jan. 25
OZ YEN: Sets Final Shareholders Meeting for Jan. 25
SHUTO GLOBAL: To Hold Final Shareholders Meeting on Jan. 25
VECTOR REGISTER: Sets Final Shareholders Meeting for Jan. 25
C H I L E
SHAW GROUP: Will Provide Engineering Services for Two Plants
C O L O M B I A
BRIGHTPOINT: Taps Bashar Nejdawi as Mobile Enhancement President
INTERCONEXION ELECTRICA: Buys 999 Shares in Sociedad Proyectos
SOLUTIA INC: Reaches Settlement with Senior Secured Noteholders
* COLOMBIA: Obtains US$830,000 Financing from IDB
C O S T A R I C A
* COSTA RICA: State Telecom Deploying Metro Ethernet This Year
C U B A
* CUBA: Cupet Inks Broad Cooperation Deal with Petrobras
D O M I N I C A N R E P U B L I C
AFFILIATED COMPUTER: Bags Allergan's US$130-Mln Outsourcing Deal
E C U A D O R
PETROECUADOR: Unit Eyes 199,000 Barrels a Day Output by Year-End
G U A T E M A L A
IMAX CORP: Records US$145 Million from Hollywood Films in 2007
J A M A I C A
AIR JAMAICA: Workers Get No National Housing Trust Returns
AIR JAMAICA: Bidder Wants To Rehabilitate Palisadoes Road
NATIONAL COMMERCIAL: Olint Gets Injunction for Account Closing
M E X I C O
DURA AUTOMOTIVE: Gets Lenders Consent To Amend DIP Loan Terms
DURA AUTOMOTIVE: Seeks Okay for 2008 Management Incentive Plan
GRUPO MEXICO: Union Holds Protests Over Labor Ministry's Ruling
ICONIX BRAND: Continues Expansion with Three License Agreements
MOVIE GALLERY: Court Okays Procedures to Determine Cure Amounts
MOVIE GALLERY: Wants CIO Seth Levy's Employment Terms Approved
PORTOLA PACKAGING: Weak Liquidity Prompts S&P To Pare Ratings
P A N A M A
DIGICEL GROUP: Prequalifies To Bid for Panamanian Mobile License
P E R U
QUEBECOR WORLD: Nonpayment of Interest Cues S&P to Cut Ratings
P U E R T O R I C O
TERADYNE INC: FTC OKs Early Termination on Merger Waiting Period
U R U G U A Y
GERDAU SA: Joint Venture w/ Kalyani Getting US$400MM Investments
V E N E Z U E L A
BANESCO BANCO: Fitch Assigns Issuer Default Ratings at B
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: Commences Exclusive Talks with Air France-KLM
-----------------------------------------------------------
Alitalia S.p.A. has commenced exclusive talks with Air France-
KLM S.A. over the sale of the Italian government's 49.9% stake
in the national carrier, Reuters reports citing a spokeswoman
for the French airline.
The carriers have two months to reach an agreement, which would
be approved by the government.
As reported on Jan. 15, 2007, Tommaso Padoa Schioppa, Italy's
finance minister, has delivered a letter to Alitalia S.p.A.
approving the commencement exclusive talks with Air France-KLM.
In its non-binding offer, Air France plans to:
-- acquire 100% of the shares of Alitalia through an
exchange offer;
-- acquire 100% of Alitalia convertible bonds; and
-- immediately inject at least EUR750 million into
Alitalia through a capital increase that will be open to
all shareholders and be fully underwritten by Air France.
Air France CEO Jean-Cyril Spinetta confirmed plans to cut 1,700
jobs and defended plans to downsize Alitalia's operations in
Milan's Malpensa airport.
Mr. Spinetta also revealed that should the French carrier
acquire 100% of Alitalia shares, Air France would list itself in
the Milan bourse.
Mr. Schioppa will represent the Italian government during sale
talks and will evaluate whether to sell to the state's majority
stake in Alitalia, Agenzia Giornalistica Italia says.
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.
DELTA AIR: S&P Says Merger Talks Have No Effect on Ratings
----------------------------------------------------------
Standard and Poor's says media sources reported that Delta Air
Lines Inc. (B/Positive/--) has entered into merger talks with
UAL Corp. (B/Stable/--) and Northwest Airlines Corp.
(B+/Stable/--). Standard & Poor's Ratings Services said that
this report has no effect on its ratings or outlook on Delta,
but that confirmed merger negotiations would result in S&P's
placing ratings of Delta and other airlines involved on
CreditWatch, most likely with developing or negative
implications.
Although Delta has not confirmed the merger discussions, the
head of the airline's pilots' union (which has a seat on Delta's
board of directors) told the pilots in an internal (but widely
reported) letter last week that industry consolidation may be
very close. Delta had stated earlier that it is conducting an
internal review regarding the desirability of pursuing a merger.
Similarly, the CEO of Northwest is reported to have recently
told that airline's employees that the company would carefully
consider any merger proposal, and that the right transaction
could be favorable for Northwest. UAL's CEO has been outspoken
in favor of consolidation since the airline emerged from
bankruptcy in early 2006.
The credit implications of any merger would depend on Standard &
Poor's evaluation of the competitive and operating opportunities
and risks involved, and on how the merger was to be financed.
An all-equity transaction, in which shareholders of one airline
receive shares of the other, would clearly be more favorable, as
it would not involve adding debt. S&P believes that it is
likely that an announced merger agreement between Delta and
either Northwest or UAL would trigger negotiations between the
remaining airline and Continental Airlines Inc. (B/Stable/B-3).
UAL's CEO has in the past stated that he believes a merger of
UAL and Continental would have considerable benefits. At
present, Northwest can block a merger involving Continental in
most circumstances, but if Northwest itself enters into a merger
with another large airline, that blocking right would end.
Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners. Delta flies to
Argentina, Australia and the United Kingdom, among others. The
company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007. On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement. In April 25, 2007, the Court confirmed
the Debtors' plan. That plan became effective on
April 30, 2007. The Court entered a final decree closing 17
cases on Sept. 26, 2007.
As of Sept. 30, 2007, the company's balance sheet showed total
assets of US$32.7 billion and total liabilities of US$23
billion, resulting in a US$9.7 billion stockholders' equity. At
Dec. 31, 2006, deficit was US$13.5 billion.
FEDERAL MOGUL: Board Appoints C. Icahn as Non-Executive Chairman
----------------------------------------------------------------
The Board of Directors of Federal-Mogul Corporation has elected
Carl Icahn as its non-executive Chairman.
The Federal-Mogul Board will be composed of, among others, Mr.
Icahn and three of his associates, the Associated Press reports.
The company's confirmed Plan of Reorganization provides an
affiliate of Mr. Icahn an option to purchase certain shares of
common stock of Reorganized Federal-Mogul held by the Asbestos
Trust. Thornwood Associates is one of Mr. Icahn's affiliates.
Mr. Icahn has a 75.24% stake in the class A common stock of
Federal-Mogul, according to Reuters.
"I am very pleased that a financially strong Federal-Mogul has
finally emerged from the bankruptcy process. Additionally and
most importantly, Federal-Mogul will no longer be hampered by
asbestos litigation. I wish to thank and congratulate all those
who have worked with me throughout the last six years to
accomplish this. I also wish to extend my thanks to Jose Maria
Alapont, our President and CEO, who has so successfully guided
the operations of Federal-Mogul during the last three years,"
Mr. Icahn said in a press release.
Federal-Mogul President and Chief Executive Officer Jos‚ Maria
Alapont said, "We have very positive relations with Carl Icahn
and we welcome him as non-executive Chairman. We remain
committed to our strategy for sustainable global profitable
growth in all areas of our business and to create value for our
customers, shareholders and employees."
Federal-Mogul shares were down 10 cents in recent trading at
US$19.50, AP relates.
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 US$10.15 billion in assets and US$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 Fourth Amended Plan
was confirmed by the Bankruptcy Court on Nov. 8, 2007, and
affirmed by the District Court on Nov. 14.
* * *
As reported in the Troubled Company Reporter on Jan. 10, 2008,
Moody's Investors Service confirmed the ratings of the
reorganized Federal-Mogul Corporation -- Corporate Family
Rating, Ba3; Probability of Default Rating, Ba3; and senior
secured bank credit facilities, Ba2. The outlook is stable.
The financing for the company's emergence from Chapter 11
bankruptcy protection has been funded in line with the structure
originally rated by Moody's in a press release dated
Nov. 28, 2007.
As reported in the Troubled Company Reporter on Jan. 7, 2008,
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Southfield, Michigan-based Federal-Mogul Corp.
following the company's emergence from Chapter 11 on
Dec. 27, 2007. S&P said the outlook is stable.
FORD MOTOR: Appoints Mr. Osborne as New President of AU Unit
------------------------------------------------------------
Ford Motor Australia appoints a new president as it moves to
play a bigger role in the automaker's global operations, the
Australian Associated Press reports.
According to the report, Bill Osborne, who is currently the
chief executive officer of the Ford Motor Company in Canada,
will take over the post as president next month. Former
Australia chief Tom Gorman, who has led the company for almost
four years, is leaving the company to take up other business
opportunities, relates AAP.
The change comes following one of Ford's most turbulent years in
Australia, which included a decision to close its engine plant
in Geelong in 2010, a move that would cut 600 jobs, relates AAP.
Ford believes its decision to close the Geelong facility will
allow it to improve efficiencies and cut costs as it replaces
the locally made engine with one sourced from the United States.
The Geelong plant closure, states AAP, was prompted by a falling
demand for large cars in Australia due to rising cost of fuel.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F)
-- http://www.ford.com/-- manufactures or distributes
automobiles in 200 markets across six continents. With about
260,000 employees and about 100 plants worldwide, the company's
core and affiliated automotive brands include Ford, Jaguar, Land
Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The
company provides financial services through Ford Motor Credit
Company.
The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom. The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 19, 2007, Moody's Investors Service affirmed the long-term
ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured, and B3 probability of
default), but changed the rating outlook to Stable from Negative
and raised the company's Speculative Grade Liquidity rating to
SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit
Company's B1 senior unsecured rating, and changed the outlook to
Stable from Negative. These rating actions follow Ford's
announcement of the details of the newly ratified four-year
labor agreement with the UAW.
FRUTEXPORT SRL: Proofs of Claim Verification Is Until Feb. 22
-------------------------------------------------------------
Eduardo Anibal Main, the court-appointed trustee of Frutexport
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Feb. 22, 2008.
Mr. Main will present the validated claims in court as
individual reports on April 8, 2008. The National Commercial
Court of First Instance in General Roca, Rio Negro, will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that 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 Frutexport 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 Frutexport's
accounting and banking records will be submitted in court on
May 21, 2008.
Mr. Main is also in charge of administering Frutexport's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Frutexport S.R.L.
Uruguay 77, Villa Regina
Rio Negro, Argentina
The trustee can be reached at:
Eduardo Anibal Main
Gadano 744, General Roca
Rio Negro, Argentina
GLOBAL CROSSING: Building A New Facility in Henrietta, New York
---------------------------------------------------------------
Global Crossing Ltd. is building a new 90,000 square-foot
facility in West Henrietta, New York. The new building,
expected to be completed by the spring of 2008, will combine
three of Global Crossing's facilities in the Rochester area and
establish a new collaborative work environment for the company's
employees.
"This new investment reinforces our commitment to stay and grow
in the Rochester area while strengthening our ties with the
local community," said Global Crossing's executive vice
president of strategy and corporate development, Dave Carey.
"The new facility will also create a working environment that
enables the team to drive the company's growth by bringing our
employees into one location, stimulating collaboration and
innovation."
Global Crossing currently employs a staff of approximately 500
professionals in the area, which represents Global Crossing's
largest United States location. This local office is home to
the company's access management, finance, global operations
including information technology and security, human resources,
legal, marketing and sales departments.
Global Crossing and its Rochester employees are active
supporters of the community and have a history of involvement in
local charity work.
"Our employees have always given back to the community, recently
pledging more than US$63,000 in donations to the Greater
Rochester United Way," said executive vice president, enterprise
sales and collaboration services, Dan Wagner. "In addition,
each year, Rochester employees also participate in the JP Morgan
Chase Corporate Challenge."
The new Henrietta site, located at 225 Kenneth Drive, will offer
employees a number of amenities such as an on-site cafeteria,
formal lobby, ample parking and landscaped walking areas. It
will also create 20 percent more growth space, compared to the
three current sites at 1080 and 1120 Pittsford Victor Road in
Pittsford, New York, and 435 West Commercial Street, in East
Rochester. LeFrois Construction Company is building the new
facility.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
(NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, and the United Kingdom. Global Crossing
serves many of the world's largest corporations, providing a
full range of managed data and voice products and services. The
company filed for chapter 11 protection on Jan. 28, 2002 (Bankr.
S.D.N.Y. Case No. 02-40188). When the Debtors filed for
protection from their creditors, they listed US$25,511,000,000
in total assets and US$15,467,000,000 in total debts. Global
Crossing emerged from chapter 11 on Dec. 9, 2003.
* * *
At Dec. 31, 2006, Global Crossing Ltd.'s balance sheet showed a
US$195 million stockholders' deficit, compared to a US$173
million stockholders' deficit at Dec. 31, 2005.
As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Global Crossing Ltd. said in a statement that its
net loss increased 75% to US$89 million in the third quarter
2007, compared to US$51 million in the third quarter 2006.
QUEBECOR WORLD: Extends Conditions Deadline to Jan. 20
------------------------------------------------------
Quebecor World Inc. has extended the deadline for the
satisfaction of certain conditions precedent to the previously
announced CDN$400 million rescue financing agreement with
Quebecor Inc. and Tricap Partners Ltd. Quebecor Inc. and Tricap
Partners Ltd. have indicated that they have made progress on the
satisfaction of these conditions and have requested additional
time to attempt to satisfy them. The deadline for these
conditions has been moved from 9:00 p.m. on Jan. 16, 2008, to
9:00 a.m. on Jan. 20, 2008.
Quebecor World continued to work with Quebecor Inc. and Tricap
Partners Ltd. on the rescue-financing plan and believed that
satisfaction of the conditions of such initiative would be in
the best interests of the company and all its stakeholders.
There is no assurance all the consents and approvals to the
completion of the rescue financing initiative will be received
on a timely basis.
About Quebecor World Inc.
Headquartered in Montreal, Quebec, Canada, Quebecor World Inc.
(TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/--
provides marketing and advertising solutions to leading
retailers, catalogers, branded-goods companies and other
businesses with marketing and advertising activities, as well as
complete, full-service print solutions for publishers. The
company's major product categories include advertising inserts
and circulars, catalogs, direct mail products, magazines, books,
directories, digital premedia, logistics, mail list technologies
and other value-added services. Quebecor World has
approximately 27,500 employees working in more than 120 printing
and related facilities in the United States, Canada, Argentina,
Austria, Belgium, Brazil, Chile, Colombia, Finland, France,
India, Mexico, Peru, Spain, Sweden, Switzerland and the United
Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, Moody's Investors Service has downgraded Quebecor
World Inc.'s corporate family rating by two notches to Caa2.
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Montreal-based printing
company Quebecor World Inc. two notches to 'CCC' from 'B-'.
In addition, Standard & Poor's lowered the senior unsecured debt
rating on the company by three notches to 'CCC-' from 'B-',
reflecting the junior position of the notes in relation to
Quebecor World's US$750 million revolving credit facility
(unrated), which is fully guaranteed and partially secured, and
the high likelihood that the company's debt level will increase
in the near term.
TIMKEN CO: Gets US$2.4 Mil. Advanced Bearing Materials Project
--------------------------------------------------------------
The Timken Company has received a US$2.4 million order in
continued federal funding for ongoing projects related to
improving the performance and affordability of the next-
generation aerospace gas turbine engine. The new order focuses
on development of advanced bearing materials to meet specific
high-performance characteristics under the Versatile Affordable
Advanced Turbine Engine program.
The VAATE program is a joint initiative involving the Department
of Defense, the Department of Energy, NASA and the U.S.
aerospace industry. One of the program's goals is to increase
the affordability of new turbine-propulsion technology over
current designs.
As part of ongoing development for the engine program, Timken
will demonstrate how advanced bearing materials can survive
hotter environments at higher speeds for longer periods of time.
Such technology helps to improve engine performance, resulting
in reductions in fuel consumption, emissions and operating
costs.
"Timken's involvement in this long-term initiative reflects our
technical expertise in creating advanced solutions for the
challenges of next-generation engines," said J. Ron Menning,
president of the company's aerospace, defense and position
control business unit. "We continue to develop innovations that
can improve the performance of aerospace engines and power-
transmission systems, and those technological advances can be
leveraged with broader commercial and defense applications."
Timken offers a comprehensive line of aerospace quality
bearings, along with a select range of turbine engine
components, transmissions and MRO services. Known for
consistent, critical performance and backed by stringent quality
standards, Timken aerospace products are found in aircraft
engines, gearboxes, helicopter transmissions, auxiliary power
units, landing wheels, airframes and instrumentation.
About Timken Co.
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR)
-- http://www.timken.com/-- is a manufacturer of highly
engineered bearings and alloy steels. It also provides related
components and services such as bearing refurbishment for the
aerospace, medical, industrial and railroad industries. The
company has operations in Argentina, Australia, Belgium, Brazil,
Canada, China, Czech Republic, England, France, Germany,
Hungary, India, Italy, Japan, Korea, Mexico, Netherlands,
Poland, Romania, Russia, Singapore, South America, Spain,
Taiwan, Turkey, United States, and Venezuela and employs 27,000
employees.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 15, 2007, Moody's Investors Service affirmed Timken's Ba1
corporate family rating and the Ba1 rating on Timken's US$300
million Medium Term Notes, Series A.
* ARGENTINA: Picks Alstom for Link Construction Project
-------------------------------------------------------
The President of Argentine Republic, Cristina Fernandez
Kirchner, announced on Jan. 16, 2008, that Alstom and its
partners IECSA, Emepa, Isolux Corsan have been awarded the first
very high-speed link project in Latin America, between Buenos
Aires, Rosario and Cordoba. This adjudication is a decisive
step in the project, before the finalization and signature of
the contract, which is scheduled in the next few months.
The line will link Buenos Aires and Cordoba, 710 km apart, in
three hours instead of the 14 hours the journey took on Jan. 17.
It will be served by eight double deck very high-speed trains,
each with a capacity of 500 passengers, operating nine return
trips every day at speeds of up to 320kph.
This turnkey project will involve the construction of the
infrastructure, including 7 stations and 780 kilometers of
tracks, electrification, signalling (ERTMS level 2), the supply
of rolling stock and maintenance. Alstom, the consortium
leader, will undertake the overall management and engineering of
the project, the supply of rolling stock, signaling,
communication systems, electrification and maintenance. The
trains will be manufactured at Alstom's French plants and
assembled at the Alstom site at La Plata, in the province of
Buenos Aires. IECSA will be in charge of civil works with Isolux
Corsan and EMEPA will participate in the construction of the
tracks with Alstom.
"The Buenos Aires-Rosario-Cordoba line constitutes the largest
very high speed rail project since the KTX project in Korea. It
represents an essential component in the economic development of
Argentina," underlines Philippe Mellier, President of Alstom
Transport.
This order confirms Alstom's leadership in very high speed.
Since the launch of the first TGVTM in 1981, Alstom has gained
unrivalled experience: 70% of the trains in service in the world
which travel at more than 300 kph have been built by Alstom.
They have covered over 2.8 billion kilometres (6,500 times the
distance between the earth and the moon), carried 1.6 billion
passengers and achieved two world rail speed records - 515.3 kph
in 1990 and 574.8 kph in 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned B+
long-term sovereign local and foreign currency ratings and B
short-term sovereign local and foreign long-term ratings on
Argentina. Standard & Poor's also placed 4 sovereign foreign
currency recovery rating and a BB transfer and convertibility
assessment rating. Standard & Poor's says the outlook for these
ratings is stable.
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling B+ Aug. 1, 2006
Local Currency
Long Term Issuer B Aug. 1, 2006
Short Term IDR B Dec. 14, 2005
Long Term IDR RD Dec. 14, 2005
===============
B A R B A D O S
===============
DIGICEL GROUP: Reports Over Six Million Subscribers in 2007
-----------------------------------------------------------
Digicel said in a statement that it has over six million clients
in 2007, compared to 4.1 million customers in 2006.
Digicel told Business News Americas that it has recorded a
compound yearly growth rate of over 50% since launching in 2001.
BNamericas notes that Digicel won in December 2007 a license to
operate a GSM network in the British Virgin Islands. It would
initially invest US$15 million for the construction of a network
to provide mobile services in the islands. Digicel also
launched operations in Suriname after an initially investing
US$60 million. Digicel will have a presence in 24 markets.
A Digicel spokesperson commented to BNamericas, "Digicel is on
target to record revenues of US$1.4 billion to US$1.5 billion
for the fiscal year that ends in March."
Digicel Central America Holdings, which is a separate entity to
Digicel Group, is also eying licenses in Panama and Nicaragua,
BNamericas says, citing a spokesperson.
The spokesperson commented to BNamericas, "Since our launch in
the Caribbean in 2001, Digicel has invested US$1.9 billion in
the region, with capital expenditure amounting to about US$360mn
in the current year."
Digicel told BNamericas that it would invest in Honduras this
year to increase mobile penetration in the country to 75% within
the next five years from 38%.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- Proposed US$1.4 billion senior subordinated notes
due 2015 assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings is stable.
=============
B E R M U D A
=============
CLAYTON PARTNERS: Proofs of Claim Filing Deadline Is Jan. 21
------------------------------------------------------------
Clayton Partners Limited's creditors are given until
Jan. 21, 2008, to prove their claims to Peter C.B. Mitchell and
Nigel J.S. Chatterjee, 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.
Clayton Partners' shareholder decided on Dec. 31, 2007, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidators can be reached at:
Peter C.B. Mitchell
Nigel J.S. Chatterjee
PricewaterhouseCoopers Advisory Limited
P.O. Box HM 1171
Hamilton, Bermuda HM EX
MAN ETZEL: Proofs of Claim Filing Ends Today
--------------------------------------------
Man Etzel Limited's creditors are given until Jan. 18, 2008, to
prove their claims to Beverly Mathias, 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.
Man Etzel's shareholders agreed Dec. 27, 2007, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
SEA CONTAINERS: Court Extends Plan-Filing Period to February 20
---------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for
the District of Delaware extended, until Feb. 20, 2008, the
exclusive period wherein Sea Containers Ltd. and its debtor-
affiliates can file a plan of reorganization.
Additionally, Judge Carey fixed April 19, 2008 as the deadline
for the Debtors to solicit acceptances of that plan.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP. In its schedules
filed with the Court, Sea Containers disclosed total assets of
US$62,400,718 and total liabilities of US$1,545,384,083.
The Court gave the Debtors until Feb. 20, 2008 to file a plan of
reorganization. (Sea Containers Bankruptcy News, Issue No. 33;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SEA CONTAINERS: Sopris Capital Reports Ownership of SCL Shares
--------------------------------------------------------------
Sopris Capital Advisors LLC disclosed in a regulatory filing
with the U.S. Securities and Exchange Commission dated
Dec. 6, 2007, that it:
(a) indirectly owns:
-- 503,180 shares of Class A common stock of Sea
Containers Ltd., through mananged accounts;
-- 2,472,800 shares of Class A common stock through a
partnership and managed accounts; and
(b) directly owns 55,000 shares of Class A common stock.
All of the 503,180 shares, which represent 1.9% of the isssued
and outstanding Sea Containers Class A common stock, are owned
by private institutional accounts managed by Aspen Advisors LLC,
a Delaware limited liability company. Aspen Advisors disclaim
any beneficial interest in the securities owned by the Aspen
Managed Accounts. By virtue of Nikos Hecht's position as a
managing member of Aspen Advisors, he may be deemed the
beneficial owner of the securities held by the Aspen Managed
Accounts under Regulation 13D-G under the Exchange Act. Mr.
Hecht disclaims any beneficial interest in the securities owned
by the Aspen Managed Accounts.
Of the 2,472,800 shares that represent 9.5% of the isssued and
outstanding Sea Containers Class A common stock, Sopris Partners
Series A, of Sopris Capital Partners, L.P., a Delaware limited
partnership, owns 1,779,700 shares and private institutional
accounts managed by Sopris Capital Advisors LLC, a Delaware
limited liability company own 693,100 shares. The 1,779,700
shares represent 6.8% of Sea Containers shares outstanding.
Sopris Capital LLC is the general partner of the Sopris
Partnership. The Sopris Partnership and the Sopris General
Partner disclaim any beneficial interest in the securities owned
by the Sopris Managed Accounts, and the Sopris General Partner
disclaims any beneficial interest in the securities owned by the
Sopris Partnership in excess of a 0.70% pecuniary interest,
calculated in accordance with Rules 16(a)-1(a)(2) and (a)(3)
under the Exchange Act. Sopris Advisors disclaims any
beneficial interest in the securities owned by the Sopris
Partnership and the Sopris Managed Accounts.
Mr. Hecht is the sole managing member of the Sopris General
Partner and the managing member of Sopris Advisors. By virtue
of that status, he may be deemed the beneficial owner of the
securities held by the Sopris Partnership and the Sopris Managed
Accounts under Regulation 13D-G under the Exchange Act.
Mr. Hecht disclaims any beneficial interest in the securities
owned by the Sopris Partnership other than a 0.60% pecuniary
interest in the shares, calculated in accordance with rules
16(a)-1(a)(2) and (a)(3). He disclaims any beneficial interest
in the securities owned by the Sopris Managed Accounts.
Mr. Hecht directly owns all of the 55,000 shares. Mr. Hecht
has the sole power to vote or to direct the vote on -- as well
as dispose or direct the disposition of -- the 55,000 shares.
In a separate filing with the Securities and Exchange
Commission, Mr. Hecht disclosed that he owns an aggregate of
3,030,980 shares representing 11.6% of the isssued and
outstanding Sea Containers Class A common stock.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP. In its schedules
filed with the Court, Sea Containers disclosed total assets of
US$62,400,718 and total liabilities of US$1,545,384,083.
The Court gave the Debtors until Feb. 20, 2008 to file a plan of
reorganization. (Sea Containers Bankruptcy News, Issue No. 33;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
=============
B O L I V I A
=============
PETROBRAS ENERGIA: Carlos de Oliveira To Quit as Director
---------------------------------------------------------
Petrobras Energia Participaciones S.A., the controlling company
of Petrobras Energia S.A., disclosed that on a Jan. 14 meeting,
Petrobras Energia S.A.'s Board of Directors approved the
resignation letter of Carlos Alberto Pereira de Oliveira.
The Chairman informed that Mr. Oliveira submitted a letter of
resignation from his position as Director of Exploration and
Production, effective March 1, 2008, since he has been appointed
to hold senior executive positions at Petroleo Brasileiro S.A.,
or Petrobras. Mr. Oliveira was appointed as Director of
Exploration and Production of the company on May 21, 2003, as
evidenced by Board of Directors' Minutes Nbr 2324, transcribed
to the relevant Book.
The Chairman proposed to appoint Gustavo Adolfo Amaral as
Director of Exploration and Production, effective March 1, 2008.
The appointed director will directly report to the Board, being
responsible before the company and third parties for the
performance of his duties under the same terms and conditions as
Directors. Mr. Amaral (51) graduated in Construction
Engineering from the Military Institute of Engineering, Rio de
Janeiro, Brazil. He completed post-graduate courses in Oil
Engineering and attended the Advanced Management Program at the
Wharton Business School - USA. He coordinated international
projects of Petrobras in Latin America, Europe, Africa and the
Middle East. He held several managerial positions at Petrobras
in Brazil and abroad, such as: Petrobras Production and
Operations Manager in the United States and Director of
Petrolera Entre Lomas S.A., in Argentina. He presently performs
as Planning and New Developments Manager of the company's
Exploration and Production business unit. The proposal was
submitted to the consideration of the meeting and the same was
approved by those present thereat. It is also proposed to
expressly evidence the company's recognition for Carlos Alberto
Pereira de Oliveira's successful performance and the excellent
services rendered during his term of office.
The Board unanimously approved the proposal.
Petrobras Energia Participaciones SA (Buenos Aires: PBE,
NYSE:PZE) through its subsidiary, explores, produces, and
refines oil and gas, as well as generates, transmits, and
distributes electricity. It also offers petrochemicals, as well
as markets and transports hydrocarbons. The company conducts
oil and gas exploration and production operations in Argentina,
Venezuela, Peru, Ecuador, and Bolivia.
* * *
In January 2007, Fitch Argentina Calificadora de Riesgo affirmed
these ratings assigned to Petrobras Energia:
-- international currency: B+
-- unsecured senior debt: B+
-- local currency: BB-
===========
B R A Z I L
===========
AMR CORP: Posts US$69 Million Net Loss in Fourth Quarter 2007
-------------------------------------------------------------
AMR Corporation, the parent company of American Airlines, Inc.,
has reported a net loss of US$69 million for the fourth quarter
of 2007, or US$0.28 per share.
The results for the fourth quarter of 2007 include the impact of
several special items that were identified in AMR Corp.'s
Dec. 21, 2007 investor update and amounted to a cumulative
positive impact of approximately US$115 million, or US$0.46
cents per diluted share. These items include: a US$138 million
gain on the sale of the company's stake in ARINC; a US$39
million gain to reflect the positive impact of the previously
announced change to an 18-month expiration of AAdvantage(R)
miles; and a US$63 million charge associated with the retirement
of 24 MD-80 aircraft that previously had been temporarily
stored.
The current quarter results compare to a net profit of US$17
million for the fourth quarter of 2006, or US$0.07 per diluted
share.
For all of 2007, the company posted a net profit of US$504
million, or US$1.78 per diluted share. In addition to the
special items from the fourth quarter, the full-year 2007
results also include the impact of a US$30 million charge,
disclosed in the third quarter, to reflect an adjustment for
additional salary and benefit expense accruals related to years
2003 through 2006.
The company's full-year 2007 results compare to a net profit of
US$231 million net profit, or US$0.98 per diluted share, for all
of 2006.
"Our employees overcame enormous challenges from unprecedented
weather disruptions, air traffic control problems and record
fuel prices to help our company take another important step
forward in 2007. We earned our second straight annual profit,
achieving our first back-to-back profitable years since
1999-2000, and made progress in many areas, including
strengthening our balance sheet, focusing on customers, renewing
our fleet, bolstering our network and investing in products and
services," said AMR Chairperson and Chief Executive Officer,
Gerard Arpey. "While record fuel prices contributed
significantly to our fourth quarter loss -- our first quarterly
loss after six straight profitable quarters -- they are a
reminder of the challenges we must continue to overcome as we
strive for consistent and adequate profitability. As we thank
our employees for their efforts in 2007, it is also clear that
we have more work ahead as we seek to maintain momentum in 2008
and beyond."
Operational Performance
American Airlines' mainline passenger revenue per available seat
mile (unit revenue), excluding special items, increased by 4.5
percent in the fourth quarter compared to the year-ago quarter.
Mainline capacity, or total available seat miles, in the fourth
quarter increased 0.4 percent compared to the same period in
2006. The year-over-year increase in capacity was largely the
result of previously announced aircraft density initiatives,
mitigated somewhat by weather-related cancellations. Fourth
quarter mainline departures declined slightly year over year.
The airline's mainline load factor -- or the percentage of total
seats filled -- was a record 80.2 percent during the fourth
quarter, compared to 78.8 percent in the fourth quarter of 2006.
Its fourth-quarter yield, which represents average fares paid,
excluding special items, increased 2.6 percent compared to the
fourth quarter of 2006, its 11th consecutive quarter of year-
over-year yield increases.
Excluding special items, AMR Corp. reported fourth quarter
consolidated revenues of approximately US$5.6 billion, an
increase of 4.6 percent year over year.
The airline's mainline cost per available seat mile (unit cost)
in the fourth quarter, excluding special items, increased 8.6
percent year over year. The largest contributor to the year-
over-year increase in unit costs was fuel. In the fourth
quarter, American paid US$367 million more than it would have
paid at fourth quarter 2006 fuel prices. Consolidated fuel
expense in the fourth quarter was US$412 million higher than it
would have been at fourth quarter 2006 fuel prices.
Excluding fuel and special items, mainline unit costs in the
fourth quarter increased by 0.6 percent year over year, largely
reflecting a US$44 million accrual in the fourth quarter for a
one-time payment to eligible employees under the company's
broad-based variable compensation plans. For the full year, the
accrual for the one-time payment totalled US$67 million.
Mr. Arpey said the company's Board of Directors had approved the
one-time payment "in recognition of the collective effort of our
employees and the special circumstances that existed in 2007."
Each eligible American Airlines employee is expected to receive
a payment of US$800 under the Customer Service Component of the
company's Annual Incentive Plan (AIP). "This is a tangible way
of saying 'thank you' for all that our employees did for our
company in a challenging year," he added.
Balance Sheet Improvement
AMR Corp. continued to strengthen its balance sheet in the
fourth quarter.
The company ended the fourth quarter with US$5.0 billion in cash
and short-term investments, including a restricted balance of
US$428 million, compared to a balance of US$5.2 billion in cash
and short-term investments, including a restricted balance of
US$468 million, at the end of the fourth quarter of 2006. As
previously disclosed, it paid off US$865 million in debt in the
fourth quarter, including scheduled debt payments and an
unscheduled US$545 million aircraft debt prepayment. Of the
company's US$2.3 billion in debt payments for all of 2007,
approximately US$1 billion of those were prepayments.
The company reduced Total Debt, which it defines as the
aggregate of its long-term debt, capital lease obligations, the
principal amount of airport facility tax-exempt bonds, and the
present value of aircraft operating lease obligations, to
US$15.6 billion at the end of the fourth quarter of 2007,
compared to US$18.4 billion a year earlier. Its reduced Net
Debt, which it defines as Total Debt less unrestricted cash and
short-term investments, from US$13.6 billion at the end of the
fourth quarter of 2006 to US$11.0 billion in the fourth quarter
of 2007.
As a result of scheduled principal payments as well as
prepayments, refinancing and other efforts to strengthen its
balance sheet, the company's net interest expense for 2007 was
US$174 million lower than in 2006, a 23.2 percent reduction.
As announced in October, the company met its projected 2007
commitment to fund its defined benefit pension plans for
employees by contributing US$380 million to these plans through
the first three quarters of the year. AMR Corp. has contributed
nearly US$2 billion to these plans since 2002, as the company
continues to meet this important commitment to employees. The
company's 2007 pension contributions, along with strong
investment returns, higher market discount rates and legislative
changes to the mandatory pilot retirement age, helped to improve
the accumulated benefit obligation funded status of its pension
plans to 96 percent, up from 84 percent at the end
of 2006.
Highlights
Fourth Quarter 2007 and Recent
-- Since providing a fleet renewal update in October,
American Airlines has increased the number of additional
Boeing 737-800s that will be delivered in 2009 by 10
aircraft. Six of the 10 737s are part of its announced
plan to accelerate the deliveries of 47 previously
ordered 737s into the 2009-2012 timeframe, while the
other four 737s are incremental to the 47 aircraft.
Including the 10 737s cited, the airline so far has
scheduled delivery of a total of 23 737s throughout 2009
(representing 18 of the initial 47 aircraft and five
incremental aircraft).
-- The airline announced that it is offering complimentary
Wi-Fi service powered by T-Mobile to Admirals Club
members and One-Day pass guests visiting club locations
in the United States and Puerto Rico. The complimentary
in-club service is part of its continuing focus on
enhancing the value of the Admirals Club membership, and
it allows members a way to remain easily connected to
work, home or elsewhere when travelling.
-- The company announced plans to divest American Eagle, its
wholly-owned regional airline. AMR said that the
divestiture of American Eagle is intended to provide it
with the structure, incentives and opportunities to win
new business and provide new opportunities for its
employees. It also said that it believes that the
divestiture will enable American Airlines to focus on its
mainline business, while ensuring its continued access to
cost-competitive regional feed.
-- The airlines announced that it will begin non-stop
service from Chicago's O'Hare International Airport to
Moscow's Domodedovo International Airport on
June 2, 2008. From Chicago, American Airlines is -- or
soon will be -- providing links to the world's key
developing economies in Russia, China, and India as well
as the established markets of Japan, Europe, and Latin
America.
-- The airline launched its inaugural nonstop service
between New York's John F. Kennedy International Airport
and London's Stansted Airport. Its second daily round
trip between JFK and Stansted, to be added in April 2008,
will give customers the choice of an early or late
evening departure from New York to Stansted and a morning
or late afternoon departure from Stansted to New York.
-- American Airlines launched new service from South
Florida, including: Miami-Barranquilla, Colombia; Ft.
Lauderdale-Santo Domingo, Dominican Republic; and Ft.
Lauderdale-San Jose, Costa Rica. It also launched:
Chicago-Buenos Aires, Argentina; DFW-Panama City, Panama;
and DFW-Providenciales, Turks & Caicos.
Third Quarter 2007
-- The airlines introduced DealFinder, a downloadable,
computer desktop tool that offers customers exclusive,
targeted, discounted fares to locations throughout its
network. The tool, available at
http://www.aa.com/dealfinder,searches for the lowest
fares, allowing customers to spend less time planning
travel.
-- The airline continued to grow and enhance its New York
service into Europe, announcing that it will begin two
new routes early in 2008 to Milan, Italy, and Barcelona,
Spain, from JFK, as well as a second daily roundtrip
between JFK and London's Stansted Airport. It also
unveiled its state-of-the-art, US$1.3 billion terminal at
JFK as part of its continuing commitment to become the
airline of choice in the New York market.
-- American Airlines, American Eagle and Texas Aero Engine
Services Limited (TAESL), an affiliated engine repair
facility, received the coveted Federal Aviation
Administration's Diamond Award for excellence in
training their Aviation Maintenance Technicians.
Second Quarter 2007
-- Overhaul & Maintenance Magazine honored American and the
Transport Workers Union (TWU) with its Outstanding
Achievement Award for their work together as partners to
transform the airline's Maintenance & Engineering
organization from a cost center to a profit center.
-- The airline announced plans to make upgrades on its
entire fleet of 124 Boeing 757 aircraft, including
installation of new seats, new cabin interiors and
updated in-flight entertainment systems.
-- The company continued to improve its balance sheet by
refinancing the US$442 million floating rate term loan
portion of its credit facility, refinancing US$586
million in airport facility bonds and prepaying US$48
million in aircraft debt.
-- The airline announced and implemented a significant
upgrade to AA.com that offers customers a faster and
easier way to shop for and purchase travel. The new
shopping and ticket purchase functionality on AA.com
empowers customers to quickly evaluate flight options by
providing a convenient display of schedule, price and
levels of service combinations.
First Quarter 2007
-- The company improved its balance sheet by paying down the
US$285 million balance on its revolving credit facility
and by prepaying US$79 million in aircraft debt.
-- AMR Corp. was honored by PLANSPONSOR Magazine as
Corporate Plan Sponsor of the Year for the company's
efforts to protect and preserve its employees' defined
benefit pension plans.
-- American Airlines launched a new booking tool on AA.com
that makes it easier and more convenient for Aadvantage
program members to redeem earned miles for travel.
Guidance
Mainline and Consolidated Capacity
The company expects its full-year mainline capacity to increase
by 1.0 percent in 2008 compared to 2007, with a 0.4 percent
reduction in domestic capacity and a 3.3 percent increase in
international capacity. On a consolidated basis, AMR expects
full-year capacity to increase by 0.9 percent in 2008 compared
to 2007. Given that weather cancellations caused American to
significantly under-fly its 2007 schedule, 2008 mainline
capacity is expected to be roughly flat with 2007 levels on a
schedule-to-schedule basis.
The company expects mainline capacity in the first quarter of
2008 to increase 0.9 percent year over year. It expects
consolidated capacity to increase 0.8 percent in the first
quarter of 2008 compared to the prior-year period. However,
mainline capacity and consolidated capacity in the first quarter
of 2008 are expected to decline year over year on a schedule-to-
schedule basis due to under-flying related to weather impact in
the first quarter of 2007.
Fuel Expense and Hedging
While the cost of jet fuel remains volatile, as of now the
company is planning for an average system price of US$2.64 per
gallon in the first quarter of 2008 and US$2.65 per gallon for
all of 2008. It has 35 percent of its anticipated first quarter
2008 fuel consumption capped at an average crude equivalent of
US$77 per barrel (jet fuel equivalent of US$2.21 per gallon),
with 24 percent of its anticipated full-year consumption capped
at an average crude equivalent of US$79 per barrel (jet fuel
equivalent of US$2.31 per gallon). Consolidated consumption for
the first quarter is expected to be 771 million gallons of jet
fuel.
Mainline and Consolidated Unit Costs
For the first quarter of 2008, mainline unit costs are expected
to increase 13.1 percent compared to the first quarter of 2007,
while first quarter consolidated unit costs are expected to
increase 12.9 percent compared to the first quarter of 2007.
In the first quarter of 2008, mainline unit costs excluding fuel
are expected to increase 1.8 percent year over year while
consolidated unit costs excluding fuel are expected to increase
1.7 percent from the first quarter of 2007.
Full-year mainline unit costs are expected to increase 8.6
percent in 2008 compared to 2007, while full-year consolidated
unit costs are expected to increase 8.4 percent in 2008 compared
to 2007.
The company expects mainline unit costs excluding fuel to be 1.5
percent higher in 2008 versus 2007 while 2008 consolidated unit
costs excluding fuel are expected to increase 1.4 percent year
over year.
About AMR Corp.
Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR)
operates with its principal subsidiary, American Airlines Inc. -
- http://www.aa.com/-- a worldwide scheduled passenger airline.
At the end of 2006, American provided scheduled jet service to
about 150 destinations throughout North America, the Caribbean,
Latin America, Europe and Asia, including Belgium, Brazil,
Japan, among others. American is also a scheduled airfreight
carrier, providing freight and mail services to shippers
throughout its system.
Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle." American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 30, 2007, following the announcement by AMR Corp. that it
intends to divest its American Eagle Holding Corp. subsidiary in
2008, Fitch expects no near-term impact on the debt ratings of
AMR and its principal operating subsidiary, American Airlines
Inc. Fitch affirmed both entities' Issuer Default Ratings at
'B-' on Nov. 13, 2007, while revising the Rating Outlook for AMR
to Positive.
AMR CORP: Brings In Two New Members to Board of Directors
---------------------------------------------------------
Rajat K. Gupta, Senior Partner Emeritus of McKinsey & Company,
and Alberto Ibarguen, former newspaper publisher and now the
President and Chief Executive Officer of the John S. and James
L. Knight Foundation, have been elected to the Boards of
Directors of AMR Corporation and American Airlines, Inc. AMR
Corp. is the parent company of American Airlines and American
Eagle, Inc.
"We are fortunate to bring Rajat's and Alberto's vast experience
in business and broad community involvement to the Boards of AMR
and American Airlines," said AMR and American Airlines,
Chairperson and CEO, Gerard J. Arpey. "They bring to our Boards
the necessary diverse points of view and personal qualities that
will help strengthen both AMR and American now and in the years
to come."
Rajat K. Gupta
Born in India and now a United States citizen residing in
Connecticut, Mr. Gupta joined McKinsey's New York office in
1973, assumed the leadership of its Scandinavian offices in
1981, and then its Chicago office in 1989. He served as the
Managing Director Worldwide of McKinsey from 1994-2003.
In his 34-year career in consulting, Mr. Gupta has served many
leading companies on a broad set of topics related to strategy,
organization and operations. He also is active in many non-
profit institutions with a particular focus on education, health
and development. He served as the United Nations Secretary-
General's Special Advisor on United Nations Reform, serves as a
director of Goldman Sachs, Procter & Gamble, Qatar Financial
Centre, and is the Chairperson of the Board of Genpact and New
Silk Route Private Equity.
Mr. Gupta is also on the Board of Rockefeller Foundation and
contributes to the work of the Board of the Indian School of
Business; Chairperson of Pan IIT Alumni Association; the Board
of Associates of the Harvard Business School; the Advisory Board
of the Kellogg School of Management; the Dean's Advisory Board
for the School of Economics and Management at Tsinghua
University; the Yale President's Council; and the Board of
Business Higher Education Forum. He also is Chairperson of the
Advisory Board of the Bill & Melinda Gates Foundation; co-Chair
of the American India Foundation; and serves on the boards of
the India Education Initiative, World Economic Forum, and
Millennium Promise.
Mr. Gupta holds a Bachelor's of Technology degree in Mechanical
Engineering from the Indian Institute of Technology and an M.B.A
from Harvard Business School.
Alberto Ibarguen
A resident of Miami, Mr. Ibarguen has served as CEO and
President of the John S. and James L. Knight Foundation since
2005 and is the former publisher of The Miami Herald and of El
Nuevo Herald. During his tenure at the newspapers, The Miami
Herald won three Pulitzer Prizes and El Nuevo Herald won Spain's
Ortega y Gasset Prize for excellence in journalism. Knight
Foundation promotes excellence in journalism worldwide and
invests in the vitality of 26 U.S. communities.
Mr. Ibarguen graduated from Wesleyan University and the
University of Pennsylvania Law School. Between Wesleyan and
Penn, he served in the Peace Corps in Venezuela's Amazon
Territory and in Colombia. He practiced law in Hartford,
Connecticut, until he joined The Hartford Courant. Following
his career at The Hartford Courant he moved to Newsday in New
York before moving to Miami and The Miami Herald.
Mr. Ibarguen is chairperson of the board of the Newseum in
Washington, D.C., a museum dedicated to free speech and free
press. He is a member of the board of PepsiCo and of the
Council on Foreign Relations, is a former board member of NCL
Corporation Ltd., is on the Trustees' Council of the National
Gallery of Art, and serves as a Senior Advisor on the
International Advisory Board of the School of Journalism and
Communication at Tsinghua University. Over the years, he also
has served on the boards for the Lincoln Center for the
Performing Arts, the Committee to Protect Journalists, Wesleyan
University and Smith College, and was the national board chair
of the Public Broadcasting System.
For his work to protect journalists in Latin America as part of
the Inter American Press Association, Mr. Ibarguen received a
Maria Moors Cabot citation from Columbia University and George
Washington University awarded him an honorary Doctor of Letters.
About AMR Corporation
Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR)
operates with its principal subsidiary, American Airlines Inc. -
- http://www.aa.com/-- a worldwide scheduled passenger airline.
At the end of 2006, American provided scheduled jet service to
about 150 destinations throughout North America, the Caribbean,
Latin America, Europe and Asia, including Belgium, Brazil,
Japan, among others. American is also a scheduled airfreight
carrier, providing freight and mail services to shippers
throughout its system.
Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle." American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 30, 2007, following the announcement by AMR Corp. that it
intends to divest its American Eagle Holding Corp. subsidiary in
2008, Fitch expects no near-term impact on the debt ratings of
AMR and its principal operating subsidiary, American Airlines
Inc. Fitch affirmed both entities' Issuer Default Ratings at
'B-' on Nov. 13, 2007, while revising the Rating Outlook for AMR
to Positive.
ASPEN TECH: Reports Preliminary 2008 Second Quarter Results
-----------------------------------------------------------
Aspen Technology Inc. has disclosed selected preliminary
financial results for the second quarter of fiscal 2008.
The company reported license bookings of approximately US$66
million during the second quarter of fiscal 2008, with license
bookings defined as the total net present value of all license
contracts signed in the quarter. This represents an increase of
approximately 10% compared to license bookings of approximately
US$60 million in the second quarter of fiscal 2007.
For the first six months of fiscal 2008, ending Dec. 31, 2007,
the Company generated license bookings of approximately US$102
million, representing an increase of over 20% compared to the
same time period in fiscal 2007.
The company ended Dec. 31, 2007, with US$131 million in cash and
cash equivalents, which is an increase from the end of the prior
quarter primarily due to strong license bookings and continued
focus on managing costs and expenses, offset by a previously
disclosed US$4 million payment the company elected to make in
December to satisfy the remaining balances of a loan agreement.
The company continues to have full access to its installments
receivable financing facilities. However, the company elected
to reduce the level of cash proceeds from sales of installments
receivable by approximately 30%, or US$20 million, compared to
the first six months of fiscal 2007 during a period that license
bookings increased by over 20%.
Mark Fusco, the company's Chief Executive Officer, said, "While
the company's finance organization is working diligently to
bring the company's financial statements up-to-date, the focus
and execution of our customer facing operations remains at a
high level. Combined with continued strength in market demand
and interest for our aspenONE suite, this has enabled the
company to generate over 20% growth in license bookings on a
fiscal year-to-date basis. We continue to be optimistic about
the long-term fundamental outlook for the Company based on our
industry leading domain expertise, unique suite of aspenONE
solutions and solid demand we continue to see in our core
markets."
The company also announced that Deloitte & Touche LLP, the
company's independent registered public accounting firm, is
declining to stand for re-appointment for the fiscal 2008 audit.
There is no disagreement between the company and Deloitte on any
matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure.
AspenTech's Audit Committee has begun the process of selecting a
successor independent registered public accounting firm, and it
will make an announcement when this process concludes.
Deloitte's decision does not impact their engagement to complete
the audit of AspenTech's financial statements as of
June 30, 2006 and 2007 and for each of the three years in the
period ending June 30, 2007. In addition, Deloitte has agreed
to be engaged for the review of the company's interim
consolidated financial statements included in its Quarterly
Report on Form 10-Q for the quarter ended Sept. 30, 2007. While
substantial progress has been made in these efforts, the company
has requested from the Nasdaq Listings Qualification Panel an
additional extension to February 8 to file the above financial
statements and related reports with the SEC and comply with
Nasdaq listing requirements. There can be no assurance that the
Nasdaq Listing Qualifications panel will grant the company's
request, and failure to grant the request would likely result in
the company's securities being delisted from the Nasdaq Global
Market.
Brad Miller, Aspen's Chief Financial Officer, said "We believe
we are in the final stages of completing our work on the
accounting positions related to income taxes. Once completed,
this would bring to close the previously disclosed detailed
review of our financial accounting and put the company in a
position to become current in its filings."
About Aspen Technology
Based in Cambridge, Massachusetts, Aspen Technology Inc.
(Nasdaq: AZPN) -- http://www.aspentech.com/-- provides software
and professional services that help process companies improve
efficiency and profitability by enabling them to model, manage
and control their operations. The company has operations in
Brazil, Malaysia and France.
* * *
Aspen Technology carries Moody's B2 long-term corporate family
rating and Caa1 equity linked rating. Moody's said the outlook
is stable.
The company carries Standard & Poor's B long-term foreign and
local issuer credit ratings, with negative outlook.
BANCO NACIONAL: Okays BRL845,000 Loan for Church Restoration
------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's board of
directors of has approved support of BRL845,000 under the
Rouanet Law ambit, to Instituto Dom Helder Camara [Dom Helder
Camara Institute] - IDHeC, for the restoration of the entire
architectonic complex of church Nossa Senhora de Assuncao das
Fronteiras, located in the city of Recife [State of Pernambuco].
Besides giving back to the community the space for religious and
social celebrations, the church will host a memorial in its
facilities, bringing together the entire document and
bibliographical collection of the archbishop.
BNDES participation is equivalent to 86.5% of the project's
total investment of BRL977,400. The resources will be invested
both on the external portion, with the construction of a square,
a side garden, a large patio in front of the temple and the
widening of the sidewalk; and on the internal part, with the
restoration of the physical structure of the construction,
which includes the walls, covers, part of the window frames and
iron fittings and trimmings, flooring, electric and hydraulic
installations, besides the painting. The original
characteristics of the altar, carved in wood, will also be
maintained. During the restoration works, approximately 25
direct and indirect jobs will be created.
The memorial will be installed in the side corridors of the
church, which will host a permanent exhibition of the
archbishop's collection of books and objects. The house in
which he lived and died will also be prepared to receive the
visitation of the general public, besides working as an
information and research center.
The Dom Helder Camara Institute is a non-profit association
founded by Dom Helder after his retirement as the archbishop of
Olinda and Recife in 1984. The entity purposes the
dissemination of the ideas that remarked the pastoral life and
the institutional and social thoughts of the archbishop,
who would have celebrated his one hundredth birthday on
Feb. 7, 2009.
The Nossa Senhora de Assuncao das Fronteiras church of Henrique
Dias Estate, found under government trust by Instituto Nacional
do Patrimonio Historico Nacional [National Institute of National
Historic Patrimony] in 1949 possesses the baroque style
architecture of the 17th century. The place where Igreja das
Fronteiras, as it is known, was built is an important link
to the history of the Dutch invasion of Pernambuco. The
monument remains as the only historical testimony of the estate
granted on Sept. 26, 1656 to Henrique Dias for his participation
in the Pernambucana Restoration.
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: Grants BRL845,000 Loan to Fundacao Municipal
------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social's board of
directors has approved financing for BRL684,000 to Fundacao
Municipal de Patrimonio Historico [Local Historical Patrimony
Foundation] for the restoration and adaptation of the real
estate located in the Historical Center of Sao Luis, in which a
school of music will be established for students of the
municipality.
BNDES' participation will be of 91% of the project's total
budget, of BRL751,000, amount approved by the Department of
Culture. The investments will be mainly applied to the recovery
of the edification's structure, which currently is found in
terrible conservation conditions.
Fundacao Municipal de Patrimonio Historico purposes the
execution of a protection and preservation policy of the
cultural patrimony of the city of Sao Luis, through restoration,
maintenance, divulgation and revitalization actions of tangible
and intangible assets and properties, such as edifications, the
city's history, the archeological patrimony and the techniques
and arts relevant to cultural interest.
The restoration works will be carried out with the goal to
preserve the original characteristics of the construction. In
order to accomplish that, flooring, walls, roof, ceiling,
electric, hydraulics and sanitary installations, besides
furniture and dishware will be changed. The most delicate work
will be the restoration of the tile facade.
The real estate is part of the Architectonic and Landscape
Complex of the city of Sao Luis, which is kept under federal
government trust since 1974 and is inserted in UNESCO's World
Patrimonies' list. It is a two-story house built in the
beginning of the 19th Century with style known as pombalina
architecture, reference to Marques de Pombal and to the
architecture practiced in Portugal of that period.
The Local Education Office will be responsible for the real
estate after its restoration. With the creation of the school,
the band "Amadeus Mozart" created fifteen years ago by students
from the local public school district will be directly assisted
with adequate room for students and training.
Subsequently, the actions of the Local Music School will be
decentralized to other local schools. The population assisted
by the local public school district of Sao Luis is of
approximately 100 thousand students divided into elementary
education, high school education, special education and
education of young adults and adults. Initially, 50 students
from two schools will be assisted.
The Historical Center of Sao Luis presents extreme historical,
architectonic and artistic relevance, being enormous de
potential and the role that the architectonic complex will play
within the development context of the cultural tourism
activities in the region.
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.
DELPHI CORP: Obtains "Broad-Based" Support on Plan
--------------------------------------------------
Delphi Corp. reported the voting results for its First Amended
Joint Plan of Reorganization to the U.S. Bankruptcy Court for
the Southern District of New York. Voting by classes of
creditors and holders of interests, including shareholders,
entitled to vote on the Plan illustrates broad-based support for
the Plan, the company said in a news release.
Of the more than 4,000 ballots cast by general unsecured
creditors voting on the Plan, 3,329 or 81% of all voting
creditors aggregated across classes voted to accept the Plan --
excluding ballots cast by GM, plaintiffs in the multi-district
litigation and holders of interests. Of the total amount voted
by all general unsecured creditor classes, 78% or
US$2,083,647,859.13 voted to accept the Plan. 100% of the
ballots cast in the GM and MDL classes voted to accept the Plan
in the respective amounts of US$2.57 billion and US$57.2
million. Of the approximately 217,000,000 shares voted by
shareholders, 78% or 170,297,851 shares voted to accept the
Plan.
The broad-based support expressed by creditors and shareholders
of Delphi Corporation and its principal subsidiaries holding its
US and global businesses was reflected in the votes of each of
the principal segments of the general unsecured creditor class
of the Delphi-DAS Debtors (Class 1C). More than 70% of the
ballots cast and 70% of the total dollar amount voted by
Delphi's senior note claims, TOPrS claims, and all other claims,
including trade claims, segments each voted separately to accept
the Plan. The company noted that one of the classes in one of
the subsidiary debtors (Delphi Diesel Systems Corp. - Class 6C)
rejected the Plan because less than two-thirds in amount of the
ballots cast supported the Plan. In addition, depending on
whether the
Bankruptcy Court allows certain other contested ballots to be
counted, one additional class in each of two additional
subsidiary debtors (Connection System Debtors - Class 3C and
Delco Electronics Overseas Corporation - Class 5C) will have
rejected the Plan based on a reduction in the percentage of
dollar amounts voted in favor of the Plan below the statutory
threshold.
Although no assurances can be made, Delphi believes that the
Plan satisfies the requirements of the Bankruptcy Code and is
confirmable notwithstanding the rejection of the Plan by certain
classes. A confirmation hearing on the Plan is scheduled to
begin on Jan. 17, 2008.
Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of
vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than 75
million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on
Dec. 20, 2007. The Court will convene the hearing to consider
confirmation of the Plan on Jan. 17, 2008.
(Delphi Bankruptcy News, Issue No. 107; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
DRESSER-RAND: Taps Kronos for Workforce Management Services
-----------------------------------------------------------
Dresser-Rand Group Inc. has selected Kronos for Manufacturing
from Kronos(R) Incorporated in France, Germany, and the United
States. By providing visibility into multi-site global
operations, Kronos is enabling Dresser Rand to effectively
manage its workforce to improve efficiencies, reduce costs, and
manage compliance with labor regulations.
"We selected Kronos because it has the best capabilities for
managing a global workforce," said Jenine Bogrand, IT manager at
Dresser-Rand. "We see great value in Kronos' workforce
management expertise, flexible product offering, global business
know-how, and understanding of the unique needs of the
manufacturing industry."
Prior to Kronos, Dresser-Rand suffered from a lack of
consistency with timekeeping systems around the world.
Multiple, redundant paper-based spreadsheets resulted in
inaccuracies, and an inability to effectively track operator
labor activities and production on the shop floor. By
automating with an integrated solution from Kronos, Dresser-Rand
is now able to accurately report overtime and flex time,
consistently deliver operational metrics, and uniformly apply
pay rules.
"With hundreds of unions and potentially thousands of unique pay
rules to accommodate, standardizing time and attendance is
seemingly an insurmountable challenge for global manufacturers,"
said Gregg Gordon, global practice leader for manufacturing at
Kronos. "Leading global manufacturers such as Dresser-Rand
realize that the benefits outweigh the challenge. These
organizations are standardizing on Kronos for their global
workforces."
About Dresser-Rand
Dresser-Rand Group Inc. (NYSE: DRC) is among the largest
suppliers of rotating equipment solutions to the worldwide oil,
gas, petrochemical, and process industries. It operates
manufacturing facilities in the United States, France, Germany,
Norway, India, and Brazil, and maintains a network of 24 service
and support centers covering 105 countries.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 7, 2007, Standard & Poor's Ratings Services assigned its
bank loan and recovery ratings to the US$500 million senior
secured revolving credit facility due 2012 of Dresser-Rand Group
Inc. (BB-/Stable/--)
EL PASO: Unit Enters Into Agreements Over Non-Core Properties
-------------------------------------------------------------
El Paso Corporation's wholly owned subsidiary, El Paso
Exploration & Production Company, has entered into three
purchase and sale agreements for the sale of non-core properties
in its Onshore and Texas Gulf Coast regions. The aggregate
sales price for the properties is US$517 million, subject to
customary adjustments. As of Dec. 31, 2007, the company had an
estimated 191 billion cubic feet equivalent (Bcfe) of proved
reserves associated with the properties, with roughly half
coming from each region. The December 2007 average production
for Texas Gulf Coast properties was 39 MMcfe/D, while the
Onshore properties produced 17 MMcfe/D.
"We are pleased to complete another important step in the high
grading of our portfolio," said El Paso Exploration & Production
Co. president, Brent Smolik. "We expect these sales, together
with our 2007 acquisitions, to meaningfully improve the
efficiency of our operations, the depth of our inventory, and
our future growth potential. They will create greater
geographic focus within our Onshore and Texas Gulf Coast
operating regions and remove a number of relatively high-cost
properties."
Closing of each of the transactions is subject to customary
conditions and is expected to occur during the first quarter
2008. Proceeds will be used to repay debt incurred with the
acquisition of Peoples Energy Production Company in September
2007. El Paso is also negotiating with prospective bidders for
the sale of selected non-core Gulf of Mexico properties.
Jefferies Randall & Dewey acted as financial advisor to El Paso
Corp.
About El Paso Corp.
Headquartered in Houston, Texas, El Paso Corporation (NYSE: EP)
-- http://www.elpaso.com/-- is an energy company that provides
natural gas and related energy products. The company owns North
America's interstate pipeline system, which has approximately
55,500 miles of pipe. It also owns approximately 470 billion
cubic feet of storage capacity and a liquefied natural gas
import facility with 806 million cubic feet of daily base load
send out capacity. El Paso's exploration and production
business is focused on the exploration for and the acquisition,
development and production of natural gas, oil and natural gas
liquids in the United States, Brazil and Egypt. It operates in
three business segments: Pipelines, Exploration and Production
and Marketing. It also has a Power segment, which holds its
remaining interests in international power plants in Brazil,
Asia and Central America.
Southern Natural Gas Company's business consists of the
interstate transportation and storage of natural gas and LNG
terminal operations.
Colorado Interstate Gas Company's business consists of the
interstate transportation, storage and processing of natural
gas.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 20, 2007, Standard & Poor's Ratings Services affirmed its
'BB' corporate credit ratings on El Paso Corp. and subsidiaries.
S&P said the outlook remains positive.
FIAT SPA: Buys Back 3.86 Million Ordinary Shares
------------------------------------------------
Fiat S.p.A. purchased 38,609 Fiat ordinary shares at the average
price of EUR16.4254 including fees on Jan. 11, 2008, within the
frame of the buy back program announced on April 5, 2007.
On Jan. 10, 2008, the company bought 3.851 million Fiat ordinary
shares at the average price of EUR16.1705 including fees.
From the start of the buy back program on April 24, 2007, the
total number of shares purchased by Fiat amounts to 31.54
million for a total invested amount of EUR603.4 million.
Share Repurchase Program
At a stockholders meeting on April 5, 2007, Fiat authorized the
purchase of treasury shares from the aggregate three classes of
stock, which shall not exceed in the aggregate 10% of the
capital stock and maximum amount of EUR1.4 billion. The
authorization will last 18 months from April 5, 2007, and will
therefore expire on Oct. 5, 2008. The buy back will be carried
out on the regulated markets as:
-- it will end on April 30, 2008, or once the maximum amount
of EUR1.4 billion or a number of shares equal to 10% of
the capital stock is reached;
-- the maximum purchase price will not exceed 10% of the
reference price reported on the stock exchange on the day
before the purchase is made; and
-- the maximum number of shares purchased daily will not
exceed 20% of the total daily trading volume for each
class of shares.
About Fiat S.p.A.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment. It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems. Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
As of Dec. 10, 2007, Fiat S.p.A. Carries Moody's long-term
corporate family rating of Ba1 and probability of default rating
of Ba1 with positive outlook.
The company also carries Standard & Poor's BB+ on long-term
foreign issuer credit rating, BB+ on long-term local issuer
credit rating, B on short-term foreign issuer and local issuer
credit ratings.
FIAT SPA: Magneti Unit Forms Joint Venture with Sumi Motherson
--------------------------------------------------------------
Fiat S.p.A.'s Magneti Marelli S.p.A. and Sumi Motherson Group
have signed an agreement for the creation of a joint venture in
India aimed at the production of automotive components in the
area of lighting and engine control systems.
According to the provisions of the agreement, Magneti Marelli
Holding and Sumi Motherson Group, through its holding company
Samvardhana Motherson Finance Limited, will each own a 50%
interest in the joint venture.
The industrial facilities will be located in the areas of New
Delhi and Pune and will concentrate on the production and
assembly of intake manifolds for engines and headlamps and rear
lamps for automobiles.
The joint venture's activities will target the Indian market and
the local and international carmakers operating in the
territory.
"The joint venture with Sumi Motherson Group represents our
second important agreement signed in India within a few months,
and it confirms our strategy to be directly present on the
automotive markets featuring a high growth rate, at the service
of our global automotive clients and of local companies,"
Eugenio Razelli Magneti Marelli CEO disclosed.
"Thanks to a solid partner like Sumi Motherson, in addition to
further expanding our offer in the powertrain sector, we will
also be able to play an important role in India in the area of
lighting systems for motor vehicle. Shared investments with
local partnerships facilitate rapid growth in fast developing
markets. In those markets, that are becoming more and more
global, the need for technology is growing rapidly," Mr. Razelli
added.
"The joint venture with Magneti Marelli will further strengthen
our existing relations in the Automotive Industry. We are
continuously exploring new areas and niches where we can add
value by acquiring new technologies. We firmly believe that we
will be able to provide the latest and world class products to
our customers in the areas of lighting and engine control
systems. This joint venture will further enhance our philosophy
of creating more value per car," V.C. Sehgal Sumi Motherson
chairman disclosed.
Magneti Marelli, a company belonging to the Fiat Group, designs,
produces and markets advanced systems and components for motor
vehicles. It has 45 production facilities and 25,000 employees
and a turnover of EUR4.5 billion in 2006.
About Fiat S.p.A.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- manufactures and sells automobiles,
commercial vehicles, and agricultural and construction
equipment. It also manufactures, for use by the company's
automotive sectors and for sale to third parties, other
automotive-related products and systems, principally power
trains (engines and transmissions), components, metallurgical
products and production systems. Fiat's creditors include Banca
Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del
Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
As of Dec. 10, 2007, Fiat S.p.A. Carries Moody's long-term
corporate family rating of Ba1 and probability of default rating
of Ba1 with positive outlook.
The company also carries Standard & Poor's BB+ on long-term
foreign issuer credit rating, BB+ on long-term local issuer
credit rating, B on short-term foreign issuer and local issuer
credit ratings.
HYLAND SOFTWARE: Denali Union Uses OnBase Technology in Policy
--------------------------------------------------------------
Hyland Software Inc. has disclosed that Denali Alaskan Federal
Credit Union is using OnBase to facilitate image capture and
remote delivery of deposits in accordance with Check 21 policy.
The use of OnBase has also saved the credit union more than
US$96,000 per year for check encoding and transportation.
Denali Alaskan Federal Credit Union, a not-for-profit financial
institution based in Anchorage, Alaska, with more than US$360
million in assets and serving more than 50,000 members in 13
branches, serves the largest state in the union. With
geographically disbursed branches, it was difficult to manually
process checks in a timely manner. Previously, the
transportation of checks from a branch to the nearest Federal
Reserve Bank could take up to a week or more.
"The old process was laborious, time-consuming, and inefficient
-- there's no two ways about it," said Denali Alaskan Federal
Credit Union vice president of system operations, John Layton.
"By using OnBase's branch capture module, we have been able to
increase our income, which allows 96 percent of deposits to be
available the next morning and experience a 6-month ROI without
having to increase our database space or personnel."
Denali has implemented OnBase in its back office operations,
with plans to expand the implementation to include merchant
capture, ATM deposits and branch kiosks.
"Most vendors require credit unions to work around software
limitations," added Layton. "OnBase is different because the
software can grow with a credit union to create a truly
individualized solution. There's no 'one size fits all'
mentality."
"OnBase's unique architecture allows credit unions to tailor
capture functionality to individual business processes across
their enterprise," said Hyland Software's director of Financial
Services, Jason King. "Additionally, OnBase's branch capture
solution enables better float management and earlier exception
handling, reduces dependence on couriers from branch or
depositor to processing centers and provides increased security
by reducing risk of lost or stolen paper by digitally storing
items."
About Denali Alaskan Federal Credit Union
Denali Alaskan Federal Credit Union -- http://www.denalifcu.org
-- is a member-owned, not-for-profit financial cooperative.
Headquartered in Anchorage, Denali Alaskan is the state's third
largest Credit Union, with over US$360 million in assets and
50,000 members. The credit union's 13 branches are located in
Anchorage, Eagle River, Fairbanks, Juneau and Wasilla; member
services are also provided via telephone and Internet access
points across the globe.
About Hyland Software
Headquartered in Westlake, Ohio, Hyland Software, Inc. is a
provider of enterprise content management software, focusing on
mid-tier organizations, as well as divisions of large
organizations. The company generated revenues of US$89 million
for the LTM ended June 30, 2007.
Hyland markets OnBase throughout North America, Brazil, Europe
and Japan.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 7, 2007, Standard & Poor's Rating Services has raised its
corporate credit rating on Westlake, Ohio-based Hyland Software
Inc. to 'B+' from 'B', following the close of the company's
secured credit facilities, reflecting revised and reduced debt
levels. S&P said the outlook is stable.
JAPAN AIRLINES: May See Operating Profit of JPY48BB for FY08
------------------------------------------------------------
Japan Airlines International Co., Ltd. posted an operating
profit of JPY54.5 billion for the April-November period, against
last year's loss of JPY14.8 billion, Jiji Press reports.
Despite the impact of higher fuel prices, JAL countered these
with a reduction in personnel costs an the closing of
unprofitable routes, relates Jiji Press.
According to Jiji Press, the strong eight-month performance
consolidates the path for the struggling group to swing into the
black in its 9-month period ended December 30, 2007, the first
profit in three years for the same period.
JAL, states the report, is close to achieving its forecast of a
consolidated operating profit of JPY48 billion for the full
business year to March 2008.
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
As reported on Feb. 9, 2007, that Standard & Poor's Ratings
Services affirmed its 'B+' long-term corporate credit and issue
ratings on Japan Airlines Corp. (B+/Negative/--) following the
company's announcement of its new medium-term management plan.
S&P said the outlook on the long-term corporate credit rating is
negative.
As reported on Oct. 10, 2006, that Moody's Investors Service
affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd and Japan Airlines
Domestic Co., Ltd. The rating affirmation is in response to the
planned restructuring of the Japan Airlines Corporation group on
Oct. 1, 2006 with the completion of the merger of JAL's two
operating subsidiaries, JAL International and Japan Airlines
Domestic. JAL International will be the surviving company.
Moody's said the rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
KENDLE INT'L: Hires Ross Horsburgh to Lead Asia/Pacific Unit
------------------------------------------------------------
Dr. Ross J. Horsburgh has joined the Kendle International Inc.
as Vice President, Global Clinical Development - Asia/Pacific.
In this role, he will lead the company's overall expansion in
Asia/Pacific and will provide strategic oversight for its Phase
II-III operations in the region, including Melbourne and Sydney,
Australia; New Delhi, India; and Beijing, China. In all, Dr.
Horsburgh brings 20 years of CRO and pharmaceutical industry
experience to the company.
"With a population base of nearly 4.0 billion and R&D spending
expected to reach US$20 billion by 2013, Asia/Pacific is
recognized by our customers as one of the more dynamic regions
in which to conduct clinical trials," said Dr. Kendle. "Dr.
Horsburgh's extensive clinical development experience and
familiarity with the Asia/Pacific region will benefit both our
customers and Kendle as we execute on our growth strategy for
this pivotal market."
Prior to joining Kendle, Dr. Horsburgh was Regional Medical
Director, Asia Pacific for AstraZeneca. In this role, he
assembled and led a team of 200 individuals across 13 markets.
He also served as head of AstraZeneca's internal clinical
research organization, responsible for quality assurance, drug
safety, talent management and development, input of the Asian
view into global product design, and ultimately, submissions to
the U.S. Food and Drug Administration and the European Medicines
Agency. Prior to AstraZeneca, Dr. Horsburgh held positions with
Ciba and the Auckland Hospital Board. He earned his medical
degree from the University of Auckland and his master's and
bachelor's degrees from the University of Canterbury.
Dr. Horsburgh will report directly to Dr. Kendle for
Asia/Pacific expansion and to Martha Feller, PhD, Senior Vice
President, Global Clinical Development for Phase II-III
operations. He will be based in Singapore.
About Kendle
Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL)
-- http://www.kendle.com/-- is a global clinical research
organization and provides Phase II-IV clinical development
services worldwide. The company's global clinical development
business is focused on five regions - North America, Europe,
Asia/Pacific, Africa and Latin America including Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2007, Standard & Poor's Rating Services has revised its
outlook on Kendle International Inc. to positive from stable.
S&P also revised its issue rating on the company's amended
US$53.5 million revolver to 'BB' with a recovery rating of '1',
indicating the expectation of very high (90%-100%) recovery of
principal in the event of default. At the same time, S&P
affirmed all existing ratings, including its 'B+' corporate
credit rating, on the company.
NOBLE GROUP: S&P Revises Outlook; Affirms BB+ Corporate Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services has revised the outlook on
the rating on Noble Group Ltd. to positive from stable. At the
same time, it affirmed the 'BB+' long-term corporate credit
rating on the company.
"The rating actions reflect Noble's improving risk management.
Its transformation from largely a commodity-trading operation to
an increasingly vertically integrated business model is gaining
traction and is a positive rating factor," said S&P's credit
analyst Ryan Tsang.
Noble Group has shown its commitment to balancing growth and
managing risk by investing in risk management functions and
resources in the past few years to keep up with its rapid growth
and expansion into new business lines. Its risk functions are
now better integrated with its operations than in the past. The
company's risk management department has expanded outside Hong
Kong to a number of key offices. The company's plans to further
enhance its risk management functions by implementing more
sophisticated tools to measure the risk and returns of its
investments and operations. These developments could further
improve its risk management capability.
Continuous diversification of the company's geographical and
product lines are likely to further reduce its concentration
risk. It has successfully managed its global commodity supply
chain, with a secure feedstock supply, through investments and
equity stakes in upstream fixed assets. It has also continued to
lower its revenue concentration; its revenue from China as a
percentage of total revenue has declined in the past few years.
In addition, the company has diversified its product lines,
including carbon credit trading, to reduce product concentration
and leverage its customer base to cross sell.
Noble Group's strengths are counterbalanced by the inherent
risks of its commodity trading business, with volatility in
commodity prices and low operating margins, as well as financial
and execution risks associated with the company's rapid
expansion.
The company is trying to improve its profit margin by
integrating vertically and creating more profit points in its
commodity supply chain business. The group's entrepreneurial
spirit has inherent risks. The group invests in new businesses,
as well as in plants and upstream assets that have a poor
operating record and are high-risk investments in nature --
albeit with high return potential. The company's satisfactory
track record on investment selections and integration of
acquired operations partly offsets these concerns.
Headquartered in Hong Kong and listed on the Singapore Stock
Exchange, Noble Group Ltd is mainly engaged in the sourcing and
distribution of a wide range of commodity products in
agriculture, energy and metals as well as the logistics
management business. It has over 70 offices in 42 countries
including Argentina, Brazil, Canada, Italy, Portugal, Spain,
Switzerland, Turkey, and the United States.
PARANA BANCO: Completes Acquisition of J Malucelli
--------------------------------------------------
Parana Banco said in a statemet that it has completed the
acquisition of 100% of insurance division J Malucelli as laid
out in its initial public offering prospectus in 2007.
Business News Americas relates that Parana Banco agreed in March
2007 to buy back J Malucelli from private equity company Advent
International through a share swap after the initial public
offering. Advent International had purchased an 85% stake in J
Malucelli in 2004 for BRL45.3 million.
According to BNamericas, the sale of 37.8 million preferred
shares during the initial public offering in June 2007 brought
in BRL529 million to Parana Banco.
BNamericas notes that Parana Banco acquired some 3.37 million
shares in J Malucelli in October 2007, the first stage of the
share swap. It converted this month the preferred shares into
common shares to control 55% of capital in J Malucelli.
The report says that the acquisition of J Malucelli requires
authorization from the Brazilian insurance regulator Susep.
Parana Banco is a niche bank in the segment of payroll discount
lending, primarily to public-sector employees. The bank's
adjusted total assets of US$375 million as of June 2006
represented less than 1% of total assets in the Brazilian
banking industry. The bank is a relevant part of a broader
conglomerate (J. Malucelli), with operations in different
sectors and concentrated in the South of Brazil. Standard &
Poor's does not assign ratings to any company in the J.
Malucelli group, and the ratings assigned to the bank do not
incorporate potential support from shareholders.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Standard & Poor's Ratings Services raised its
long-term counterparty credit rating and senior unsecured debt
rating on Parana Banco S.A. to 'B+' from 'B'. The ratings were
removed from CreditWatch Positive where they were placed
June 11, 2007. At the same time, S&P affirmed the 'B' short-
term counterparty credit rating on the bank. S&P said the
outlook is stable.
SUN MICROSYSTEMS: Expects Up to US$265MM Net Income in 2nd Qtr.
---------------------------------------------------------------
Sun Microsystems Inc. has recorded preliminary results for its
second quarter of fiscal 2008, which ended Dec. 30, 2007.
Sun expects to report revenues for the second quarter of fiscal
2008 of approximately US$3.60 billion, an increase of
approximately 1 percent as compared with US$3.57 billion for the
second quarter of fiscal 2007. Net bookings for the second
quarter of fiscal 2008 were approximately US$3.85 billion, an
increase of approximately 7% year over year.
Total gross margin as a percent of revenues for the second
quarter of fiscal 2008 is expected to be approximately 48%, an
increase of approximately 3.0 percentage points as compared with
the second quarter of fiscal 2007.
Net income for the second quarter of fiscal 2008 on a GAAP basis
is expected to be in the range of US$230 million to US$265
million, or US$0.28 to US$0.32 per share on a diluted basis, as
compared with net income of US$133 million, or US$0.15 per
share, for the second quarter of fiscal 2007.
"Our preliminary results for the second quarter reflect solid
execution and continued operational progress," said Jonathan
Schwartz, Chief Executive Officer and president of Sun
Microsystems. "The future is even brighter today as evidenced
by our agreement to acquire MySQL, one of the fastest growing
players in the $15 billion database market and a key component
of many of the Web's premier properties such as Facebook,
Wikipedia, China Mobile and Baidu. As the market for open
source databases continues its spectacular growth, we look
forward to this acquisition directly contributing to Sun's
growth as the platform of choice for the Web economy."
Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services. It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.
Sun Microsystems conducts business in 100 countries around the
globe, including Brazil, Argentina, India, Hungary, United
Kingdom, among others.
* * *
Sun Microsystems Inc. carries Moody's "Ba1" probability of
default and long-term corporate family ratings with a stable
outlook. The ratings were placed on Sept. 22, 2006, and
Sept. 22, 2005, respectively.
Sun Microsystems also carries Standard & Poor's "BB+" long-term
foreign and local issuer credit ratings, which were placed on
March 5, 2004, with a stable outlook.
SUN MICROSYSTEMS: Inks Acquisition Pact with MySQL for US$1 Bil.
----------------------------------------------------------------
Sun Microsystems Inc. has entered into a definitive agreement to
acquire MySQL AB, an open source icon and developer of one of
the world's fastest growing open source databases for
approximately US$1 billion in total consideration. The
acquisition accelerates Sun's position in enterprise IT to now
include the US$15 billion database market. The announcement
reaffirms Sun's position as the leading provider of platforms
for the Web economy and its role as the largest commercial open
source contributor.
With millions of global deployments including Facebook, Google,
Nokia, Baidu and China Mobile, MySQL will bring synergies to Sun
that will change the landscape of the software industry by
driving new adoption of MySQL's open source database in more
traditional applications and enterprises. The integration with
Sun will greatly extend the commercial appeal of MySQL's
offerings and improve its value proposition with the addition of
Sun's global services organization. MySQL will also gain new
distribution through Sun's channels including its OEM
relationships with Intel, IBM and Dell.
"Today's acquisition reaffirms Sun's position at the center of
the global Web economy. Supporting our overall growth plan,
acquiring MySQL amplifies our investments in the technologies
demanded by those driving extreme growth and efficiency, from
Internet media titans to the world's largest traditional
enterprises," said Jonathan Schwartz, Chief Executive Officer
and president, Sun Microsystems. "MySQL's employees and
culture, along with its near ubiquity across the Web, make it an
ideal fit with Sun's open approach to network innovation. And
most importantly, this announcement boosts our investments into
the communities at the heart of innovation on the Internet and
of enterprises that rely on technology as a competitive weapon."
MySQL's open source database is widely deployed across all major
operating systems, hardware vendors, geographies, industries and
application types. The complementary product line-ups will
extend MySQL's database reach and are expected to bring new
markets for Sun's systems, virtualization, middleware and
storage platforms.
"The combination of MySQL and Sun represents an enormous
opportunity for users and organizations of all sizes seeking
innovation, growth and choice," said Marten Mickos, CEO, MySQL.
"Sun's culture and business model complements MySQL's own by
sharing the same ideals that we have had since our foundation --
software freedom, online innovation and community and partner
participation. We are tremendously excited to work with Sun and
the millions of members of the MySQL open source ecosystem to
continue to deliver the best database for powering the modern
Web economy."
MySQL's open source database is the "M" in LAMP - the software
platform comprised of Linux, Apache, MySQL and PHP/Perl often
viewed as the foundation of the Internet. Sun is committed to
enhancing and optimizing the LAMP stack on GNU/Linux and
Microsoft Windows along with OpenSolaris(TM) and MAC OS X. The
database from MySQL, OpenSolaris and GlassFish(TM), together
with Sun's Java(TM) platform and NetBeans(TM) communities, will
create a powerful Web application platform across a wide range
of customers shifting their applications to the Web.
More than 100 million copies of MySQL's high-performance open
source database software have been downloaded and distributed
and an additional 50,000 copies are downloaded daily. This
broad penetration coupled with MySQL's strength in Web 2.0,
Software as a Service (SaaS), enterprise, telecom and the OEM
embedded market make it an important fit for Sun. With MySQL,
Sun will have the ability to deepen its existing customer
relationships and create new opportunities with companies
seeking the flexibility and ease-of-use of open source systems.
Following completion of the proposed transaction, MySQL will be
integrated into Sun's Software, Sales and Service organizations
and the company's CEO, Marten Mickos, will be joining Sun's
senior executive leadership team. In the interim, a joint team
with representatives from both companies will develop
integration plans that build upon the technical, product and
cultural synergies and the best business and product development
practices of both companies. MySQL is headquartered in
Cupertino, CA and Uppsala, Sweden and has 400 employees in 25
countries.
As part of the transaction, Sun will pay approximately US$800
million in cash in exchange for all MySQL stock and assume
approximately US$200 million in options. The transaction is
expected to close in late Q3 or early Q4 of Sun's fiscal 2008.
Completion of the transaction is subject to regulatory approval
and other customary closing conditions. The deal is expected to
be accretive to FY10 operating income on a GAAP basis.
About MySQL
MySQL AB -- http://www.mysql.com/-- develops and supports a
family of high database products. The company's flagship
offering is 'MySQL Enterprise', a set of production-tested
software, proactive monitoring tools, and premium support
services. MySQL is the world's most popular open source
database software. Many of the world's largest and fastest-
growing organizations use MySQL to save time and money powering
their high-volume Web sites, business-critical systems and
packaged software -- including industry leaders such as Yahoo!,
Alcatel-Lucent, Google, Nokia, YouTube and Booking.com. With
headquarters in the United States and Sweden -- and operations
around the world -- MySQL AB supports both open source values
and corporate customers' needs.
MySQL and the MySQL logo are registered trademarks of MySBL AB
in the United States, the European Union and other countries.
About Sun Microsystems
Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services. It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.
Sun Microsystems conducts business in 100 countries around the
globe, including Brazil, Argentina, India, Hungary, United
Kingdom, among others.
* * *
Sun Microsystems Inc. carries Moody's "Ba1" probability of
default and long-term corporate family ratings with a stable
outlook. The ratings were placed on Sept. 22, 2006, and
Sept. 22, 2005, respectively.
Sun Microsystems also carries Standard & Poor's "BB+" long-term
foreign and local issuer credit ratings, which were placed on
March 5, 2004, with a stable outlook.
TEREX CORP: Appoints Four Officers to Senior Executive Roles
------------------------------------------------------------
Terex Corporation has announced several senior executive
appointments in support of its strategy to increase its market
presence in high growth markets around the globe.
Steve Filipov, who has been President, Terex Cranes, has been
named to the new position of President, Developing Markets and
Strategic Accounts, reporting to Terex President and Chief
Operating Officer Tom Riordan. Mr. Filipov has led the Terex
Cranes team that has dramatically increased business and
profitability in the last three years. Much of this growth has
come from developing markets.
Rick Nichols has been named President, Terex Cranes. He has
been serving as President, Terex Materials Processing & Mining.
He also reports to Mr. Riordan. Mr. Nichols has been successful
in leading the advancement of lean manufacturing capabilities to
improve margins and capacity, overseeing acquisitions, and
changing the business strategy for the Terex mining truck
business.
Harry Bussman has been promoted to run the global Terex Mining
business. He had been General Manager of the Terex O&K large
hydraulic mining shovel business. He will report to Mr. Nichols
on an interim basis while a search is conducted for a President
of the overall Materials Processing & Mining segment. The
Materials Processing business led by Kieran Hegarty will report
to Mr. Riordan on an interim basis.
George Ellis has been appointed Vice President, Manufacturing
Services, reporting to Mr. Riordan. Mr. Ellis currently leads
the Terex Utilities business and will continue to do so until a
replacement is named. Mr. Ellis has responsibility for the
Terex manufacturing strategic plan and assisting business
operations with capital expenditure budgets.
"Steve Filipov is the right person to lead efforts to improve
Terex relationships with our large global customer strategic
accounts and to oversee a more aggressive approach to increasing
our presence in developing markets," Terex President and COO
Riordan said. "Rick Nichols will lead capacity improvement
efforts in our Crane facilities while continuing the
globalization of our business, and we are excited about future
prospects for this rapidly expanding segment."
Mr. Riordan continued, "With these appointments, we are putting
in place the leadership we need to meet the challenging
objectives we have set for Terex, including our ambitious 12 x
12 in '10 goal. We are clearly aiming to grow Terex to have $12
billion of net sales with a 12 percent operating margin in
2010."
About Terex Corporation
Headquartered in Westport, Connecticut, Terex Corporation
(NYSE:TEX) - http://www.terex.com/-- manufactures a broad range
of equipment for use in various industries, including the
construction, infrastructure, quarrying, surface mining,
shipping, transportation, refining, and utility industries.
Terex offers a complete line of financial products and services
to assist in the acquisition of Terex equipment through Terex
Financial Services. The company operates in five business
segments: Aerial Work Platforms, Construction, Cranes, Materials
Processing & Mining, and Roadbuilding, Utility Products and
Other. The company has operations in Australia, Brazil, China,
Japan, Germany, United Kingdom, among others.
* * *
In August 2007, Moody's placed the company's long-term corporate
family rating and probability of default rating at Ba2, bank
loan debt rating at Ba1, and senior subordinate rating at Ba3.
These ratings still hold to date. Moody's said the outlook is
stable.
Standard & Poor's placed the company's long-term foreign and
local issuer credits at BB, which still hold to date. S&P said
the rating's outlook is stable.
UAP HOLDING: Board Declares US$0.225 Per Share Dividend
-------------------------------------------------------
UAP Holding Corp. Board of Directors has declared a quarterly
dividend payment, at the rate of US$0.225 per share, payable on
Feb. 15, 2008, to stockholders of record as of the close of
business on Feb. 1, 2008.
Headquartered in Greeley, Colorado, UAP Holdings Corp.
(NASDAQ:UAPH) -- http://www.uap.com/-- is the holding company
of United Agri Products Inc., an independent distributor of
agricultural and non-crop products in the United States and
Canada. United Agri Products Inc. markets products, including
chemicals, fertilizer, and seed to farmers, commercial growers,
and regional dealers. United Agri Products also provides an
array of value-added services, including crop management,
biotechnology advisory services, custom fertilizer blending,
seed treatment, inventory management, and custom applications of
crop inputs. United Agri Products maintains a network of
approximately 370 distribution and storage facilities and three
formulation plants, located in crop-producing areas throughout
the United States and Canada. The airline flies to Brazil,
Korea and Germany.
* * *
As reported on Sept. 10, 2007, Standard & Poor's Ratings
Services raised its corporate credit rating UAP Holding Corp. to
'BB-' from 'B+'. S&P said the outlook is stable.
* BRAZIL: Petrobras' Reserve Reposition Index Is 134.6% in 2007
---------------------------------------------------------------
Petroleo Brasileiro SA reported its proved oil and natural gas
reserves in Brazil and abroad, in 2007, according to the
criteria of the Society of Petroleum Engineers and of the
Securities and Exchange Commission. Reserve growth in Brazil
was 1.2% as per the SPE criterion, 2.3% based on the SEC's
criterion. The reposition indices were 134.6%, pursuant to the
SEC criterion, and 123.6 % according to the approach used by the
SPE. The reserve/production ratio, according to the SPE's
criterion, is 19.6 years.
During the year, Petrobras notified the National Petroleum,
Natural Gas and Biofuels Agency regarding 53 new onshore and
offshore oil and natural gas discoveries. In addition to those,
another 24 areas were under evaluation during 2007, among which
the Tupi one, which has yet to be declared commercial.
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, and 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.
* BRAZIL: Gets US$176.7MM Loan for Urban Transportation Program
---------------------------------------------------------------
The Inter-American Development Bank has approved a US$176.7
million loan to Brazil for an urban transportation program for
its Federal District, where around 2.8 million commutes are made
each day.
"This initiative will improve the mobility and accessibility for
the population of the district, particularly its low-income
segments, by further integrating its communities through
financing of a modern Bus Rapid Transit System," said IDB team
leader Rosana Brandao. "This will help to improve the
circulation and safety of motorized and non-motorized forms of
transportation."
The program will invest in road and urban infrastructure,
including bus transfer stations, roadway and pedestrian safety,
the construction of ramps at crosswalks, sidewalks and
pedestrian walkways for persons with physical disabilities, the
modernization of the traffic light system, bicycle paths or
lanes, and the strengthening of institutional and management
capacity in the area of transportation. It will also strengthen
governmental initiatives and institutional and management
capacity in the area of transportation.
Studies have also been conducted with technical and financial
support from the IDB Sustainable Energy and Climate Change
Initiative to determine the possibility of using carbon bonds
and support their development.
The State Transportation Secretariat will carry out the program.
The loan is for a 25-year term, with a 5-year grace period, at
the Libor interest rate. Local counterpart financing totals
93.1 million.
* * *
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
===========================
AGILE PARTNERS: Holding Final Shareholders Meeting on Jan. 25
-------------------------------------------------------------
Agile Partners Excalibur Fund Limited will hold its final
shareholders meeting on Jan. 25, 2008, at 9:45 a.m. at the
office of the company.
These agendas 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.
Agile Partners' shareholders agreed on Dec. 12, 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
AGILE PARTNERS EXCALIBUR: Final Shareholders Meeting on Jan. 25
---------------------------------------------------------------
Agile Partners Excalibur Master Fund Limited will hold its final
shareholders meeting on Jan. 25, 2008, at 10:15 a.m. at the
office of the company.
These agendas 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.
Agile Partners' shareholders agreed on Dec. 12, 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
AZIMUTH CP: Sets Final Shareholders Meeting for Jan. 25
-------------------------------------------------------
Azimuth CP Hedge Fusion Ltd. will hold its final shareholders
meeting on Jan. 25, 2008, at 4:45 p.m. at the office of the
company.
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Azimuth CP's shareholders agreed on Dec. 13, 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
AZIMUTH CP HEDGE: Final Shareholders Meeting Is on Jan. 25
----------------------------------------------------------
Azimuth CP Hedge Ltd. will hold its final shareholders meeting
on Jan. 25, 2008, at 4:15 p.m. at the office of the company.
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Azimuth CP's shareholders agreed on Dec. 13, 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
CENTERRA GOLD: Holding Final Shareholders Meeting on Jan. 25
------------------------------------------------------------
Centerra Gold Investments Inc. will hold its final shareholders
meeting on Jan. 25, 2008, at 9:00 a.m. at the office of the
company.
These agendas 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 six years from
the dissolution of the company, after which they
may be destroyed.
Centerra Gold's shareholders agreed on Dec. 12, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Richard L. Finlay
Attention: Krysten Lumsden
P.O. Box 2681, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 945 3901
Fax: (345) 945 3902
JLOC VII: To Hold Final Shareholders Meeting on Jan. 25
-------------------------------------------------------
JLOC VII Limited will hold its final shareholders meeting on
Jan. 25, 2008, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
Grand Cayman KY1-1104, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
JLOC VII's shareholders agreed on Dec. 13, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
David Dyer
P.O. Box 1984, Grand Cayman KY1-1104
Cayman Islands
Telephone: (345)949-8244
Fax: (345)949-5223
MOORE TECHNOLOGY: To Hold Final Shareholders Meeting on Jan. 25
---------------------------------------------------------------
Moore Technology Venture Fund II, Ltd., will hold its final
shareholders meeting on Jan. 25, 2008, at 11:15 a.m. at the
office of the company.
These agendas 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.
Moore Technology's shareholders agreed on Dec. 13, 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
OZ YEN: Sets Final Shareholders Meeting for Jan. 25
---------------------------------------------------
Oz Yen Receivables Cayman Limited will hold its final
shareholders meeting on Jan. 25, 2008, at 10:45 a.m. at the
office of the company.
These agendas 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.
Oz Yen's shareholders agreed on Dec. 12, 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
SHUTO GLOBAL: To Hold Final Shareholders Meeting on Jan. 25
-----------------------------------------------------------
Shuto Global Incorporated will hold its final shareholders
meeting on Jan. 25, 2008, at 9:15 a.m. at the office of the
company.
These agendas 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.
Shuto Global's shareholders agreed on Dec. 12, 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
VECTOR REGISTER: Sets Final Shareholders Meeting for Jan. 25
------------------------------------------------------------
Vector Register Holdings Limited will hold its final
shareholders meeting on Jan. 25, 2008, at 5:00 p.m. at the
office of the company.
These agendas 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.
Vector Register's shareholders agreed on Dec. 12, 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
=========
C H I L E
=========
SHAW GROUP: Will Provide Engineering Services for Two Plants
------------------------------------------------------------
The Shaw Group Inc.'s Energy & Chemicals Group has been awarded
a contract to provide proprietary technology, engineering and
procurement services for two 200,000 metric tons per annum
acrylonitrile butadiene styrene plants for Tianjin Dagu Chemical
Industry Co., Ltd. The plants will be located in Tianjin
Industrial Park, Lingang Industry Area, in the city of Tianjin.
The value of Shaw's contract, which has been included in the
company's previously announced backlog, was not disclosed.
The contract covers the licensing, process design package,
detailed engineering support, training and commissioning of the
plants as well as procurement of proprietary and critical
equipment. Shaw's agreement with SABIC Innovative Plastics
Technologies, Inc. (formally GE Plastics Global Technology, LLP)
will enable the two Tianjin Dagu plants to utilize the licensed
styrenic emulsion ABS technology.
"We are pleased to be the first company in the world selected by
SABIC Innovative Plastics to license its leading ABS
technology," said J.M. Bernhard Jr., chairman, president and
chief executive officer of Shaw. "We look forward to working
with our long-term client, Tianjin Dagu, on this important
project as we further establish Shaw as a market leader in the
Chinese petrochemicals market."
In 2007, Shaw announced another contract with Tianjin Dagu
Chemical Industry Co., Ltd. to provide technology, basic
engineering and critical equipment procurement services for a
500,000 metric tons per annum ethylbenzene/styrene monomer
(EB/SM) plant also located in Tianjin, China.
Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR)
-- http://www.shawgrp.com/-- provides services to the
environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers. It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries. The
company segregates its business activities into four operating
segments: Environmental & Infrastructure; Energy & Chemicals;
Maintenance, and Fabrication, Manufacturing & Distribution. In
January 2005, the company sold substantially all of the assets
of its Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.
The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.
* * *
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on The Shaw Group Inc. and removed it from
CreditWatch, where it was placed with negative implications in
October 2006. S&P said the outlook is stable.
In addition, 'BB' senior secured debt rating was affirmed after
the US$100 million increase to the company's revolving credit
facility.
===============
C O L O M B I A
===============
BRIGHTPOINT: Taps Bashar Nejdawi as Mobile Enhancement President
----------------------------------------------------------------
Brightpoint Inc. has appointed Bashar Nejdawi as the President
of its newly created Mobile Enhancement business.
"Mr. Nejdawi's appointment is the first step towards the
Company's investment in the exciting high growth Mobile
Enhancement arena. As the mobile devices become more
sophisticated, the need for mobile enhancements increases
significantly," stated Robert J. Laikin, Brightpoint's Chairman
of the Board and Chief Executive Officer.
"Bashar has developed strong international wireless industry
relationships and deep industry knowledge through his
experiences at Motorola," stated Michael Koehn Milland, Co-Chief
Operating Officer of Brightpoint, Inc. and President Brightpoint
International. "I look forward to working with Bashar
to leverage that expertise with our existing operations and to
develop new growth opportunities in the mobile enhancement
area."
Prior to his appointment as the President of the Company's
Mobile Enhancement business, Mr. Nejdawi served as Senior
Director of Global Distribution for Motorola. In this role, he
led a global distributor team responsible for channel
rationalization and optimization, global account
management, alternative channel development, retail online
management tools and pricing and incentives. His previous
experience includes numerous regional and global positions
within Motorola including Customer Solutions, Product Operations
and Director of Sales. He has worked in Europe, Middle East,
Africa, India, South East Asia and the United States over his
extensive career.
About Brightpoint
Headquartered in Plainfield, Indiana, Brightpoint, Inc. --
http://www.brightpoint.com/-- distributes wireless devices and
accessories, as well as provision of customized logistic
services to the wireless industry. The company primarily
operates in Australia, Colombia, Finland, Germany, India, New
Zealand, Norway, the Philippines, the Slovak Republic, Sweden,
United Arab Emirates and the United States. The company's
customers include mobile operators, mobile virtual network
operators, resellers, retailers and wireless equipment
manufacturers. Brightpoint was incorporated in 1989 under the
name Wholesale Cellular USA, Inc. and changed its name to
Brightpoint Inc. in 1995.
* * *
On April 12, 2006, Standard & Poor's placed Brightpoint's long-
term local and foreign issuer credit ratings at BB- with a
stable outlook.
INTERCONEXION ELECTRICA: Buys 999 Shares in Sociedad Proyectos
--------------------------------------------------------------
Colombian state-run transmission firm Interconexion Electrica has
purchased 999 of the 1,000 shares in Peruvian construction
company Sociedad Proyectos de Infraestructura de Peru, Business
News Americas reports, citing Colombian financial regulator
Superfinanciera.
BNamericas relates that Interconexion Electrica's Peruvian unit
is concentrated on transmission lines, power projects and
general construction works.
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.
SOLUTIA INC: Reaches Settlement with Senior Secured Noteholders
---------------------------------------------------------------
Solutia Inc. has reached a settlement with the Bank of New York,
as indenture trustee for Solutia's 11.25% senior secured notes
due 2009, and holders of the 2009 notes representing the
requisite principal amount needed to direct the trustee to enter
into the settlement terms. Under the terms of the settlement,
the noteholders will receive US$220.5 million in cash plus all
accrued but unpaid interest through the effective date of
Solutia's plan of reorganization.
Solutia anticipates the effective date of its plan of
reorganization will be later this month. This settlement is
subject to approval by the U.S. Bankruptcy Court for the
Southern District of New York.
Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in
the manufacture and sale of chemical-based materials, which are
used in consumer and industrial applications worldwide. Solutia
has operations in Malaysia, China, Singapore, Belgium, and
Colombia. The company and 15 debtor-affiliates filed for
chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No.
03-17949). When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on November 29, 2007, the Court
confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy
News; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* COLOMBIA: Obtains US$830,000 Financing from IDB
-------------------------------------------------
The Inter-American Development Bank has approved a US$830,000
grant for expanding innovation, science and technology in
bioenergy in Colombia.
The grant includes US$500,000 from the Knowledge Partnership
Korea Fund for Technology and Innovation and US$330,000 from the
IDB's Fund for Sustainable Energy and Climate Change.
The main objective of this grant is to promote new technological
development and transfer of technology in the area of biofuels.
The expected outcome is to provide a solution to some of the
main technological bottlenecks in the production chain of
biofuels as well as to increase the capacity building and
training at managerial and technical levels in the area of
biofuels.
"Only through the appropriate application and creation of
knowledge will Colombia be able to strengthen the production
chain of biofuels and transform the country from a biofuel
producer to a world biofuel leader," said IDB project team
leader, Christiaan Gischler. "This initiative is part of the
support that the Bank is providing to the Government of Colombia
to promote the sustainable production of biofuels in the areas
of planning, financing and research & development of bioenergy."
This grant will finance the design of a Research, Development
and Innovation Fund for Biofuels (FIDIB, acronym in Spanish)
with the objectives of identifying the most important areas of
research and innovation in the biofuels production chain,
designing and implementing pilot projects for the FIDIB, and
promoting technological transfers and capacity building within
the production chain of biofuels.
This initiative will allow universities, research centers, and
bioenergy developers to join forces and apply to the FIDIB for
funding to provide solution to the main technological barriers
of biofuel production.
This operation will be executed by the Colombian Institute for
the Development of Science and Technology (COLCIENCIAS, acronym
in Spanish).
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services has assigned
BB+ long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Colombia.
As reported in the Troubled Company Reporter-Latin America on
June 15, 2007, Standard & Poor's Ratings Services assigned its
'BB+' long-term senior unsecured rating to the Republic of
Colombia's proposed 2027 Global Titulos de Tesoreria bond, a
bond denominated in Colombian pesos but payable in US dollars.
===================
C O S T A R I C A
===================
* COSTA RICA: State Telecom Deploying Metro Ethernet This Year
--------------------------------------------------------------
Costa Rican state-run telecom Instituto Costarricense de
Electricidad said in a statement that it will install a metro
Ethernet, a local area network architecture, to enhance
communications of its business clients this year.
Instituto Costarricense spokesperson Rosemary Monge told
Business News Americas that Ethernet will be available during
the second quarter 2008.
BNamericas notes that the wide band platform will be used in
Instituto Costarricense's Internet protocol network. It will
offer higher capacity for information transfer for services like
voice, video and data.
Mr. Monge commented to BNamericas, "Metro is a more competitive
network. Offering Ethernet is part of a worldwide trend and it
is better suited for companies, as it supports higher data
transfer rates."
The report says that the project will need a US$5 million
investment and provide access speeds of up to one giga bit per
second.
Instituto Costarricense said in a statement that it will deploy
interfaces with capacity of 100 megabytes per second for clients
to ensure they have the speed they need. The firm has had to
use several interfaces, which boost the risk of network failure,
or deploy a single interface with speeds more superior than what
the subscriber needs to guarantee the connection speed they
want.
According to BNamericas, the network will run principally over
fiber optic infrastructure for subscribers about 50 kilometers
away from the central access point. Speeds of up to 20
megabytes per second will be available up to three kilometers
from the central access point over copper lines.
* * *
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 local and foreign currency ratings on Costa Rica.
Standard & Poor's also placed a BB long-term sovereign foreign
currency rating on Costa Rica.
=======
C U B A
=======
* CUBA: Cupet Inks Broad Cooperation Deal with Petrobras
--------------------------------------------------------
Cuban state-run oil firm Cupet and Brazilian counterpart
Petroleo Brasileiro SA aka Petrobras have entered into a broad
cooperation deal, Petrobras said in a statement.
According to Petrobras' statement, the agreement covers
operations like:
-- exploration,
-- production,
-- downstream, and
-- research and development.
Petrobras told Business News Americas that it has agreed with
Cupet to consider the creation of a joint venture to construct a
lubricants plant in Havana.
Petrobras also committed to study the potential of offshore
blocks in the Cuban side of Gulf of Mexico, BNamericas states.
Moody's assigned these ratings on Cuba:
-- CC LT Foreign Bank Deposit, Caa2
-- CC LT Foreign Currency Debt, Caa1
-- CC ST Foreign Bank Deposit, NP
-- CC ST Foreign Currency Debt, NP
-- Issuer Rating, Caa1
===================================
D O M I N I C A N R E P U B L I C
===================================
AFFILIATED COMPUTER: Bags Allergan's US$130-Mln Outsourcing Deal
----------------------------------------------------------------
Affiliated Computer Services, Inc. has been awarded a seven-
year, US$130 million contract to provide information technology
outsourcing services for Allergan, Inc., a premier, global
multi-specialty healthcare company.
Under the terms of the contract, Affiliated Computer will supply
comprehensive infrastructure services, including data center
operations, network monitoring and management, and end-user
support services. The ACS-designed solution will provide the
scale necessary to meet Allergan's growth, as well as access to
new technology to support its unique industry needs.
"This key relationship further expands our presence in the
pharmaceutical industry and allows us to develop and strengthen
our industry-specific competencies," said ACS Commercial
Solutions group president, Ann Vezina. "Our partnership will
enable Allergan to focus on its global core business operations
as the company grows and help meet Allergan's need for advanced
technological capabilities."
Along with comprehensive information technology outsourcing
services, the company will implement an innovative platform that
utilizes a network connection to store important data online,
provide additional data security, and more reliably restore
backup data. The solution replicates backup data directly to
the disaster recovery site, thereby reducing business recovery
time and incidence of data loss by eliminating off-site data
handling.
Allergan's Chief Information Officer, Sue-Jean Lin said, "With
our many innovative products, we operate in a wide range of
global, high-growth markets. We needed a strategic partner who
could not only support our market-leading positions, but help us
meet the challenges of continued expansion. ACS has the
technology and expertise to meet our growth needs, and their
dedication to quality service makes them a strong cultural fit
as well."
About Allergan
Founded in 1950, Allergan, Inc. (NYSE: AGN), with headquarters
in Irvine, California, is a multi-specialty health care company
that discovers, develops and commercializes innovative
pharmaceuticals, biologics and medical devices that enable
people to live life to its greatest potential -- to see more
clearly, move more freely, express themselves more fully. The
Company employs more than 7,500 people worldwide and operates
state-of-the-art R&D facilities and world-class manufacturing
plants. In addition to its discovery-to-development research
organization, Allergan has global marketing and sales
capabilities with a presence in more than 100 countries.
About Affiliated Computer Services
Headquartered in Dallas, Affiliated Computer Services Inc.
(NYSE: ACS) -- http://www.acs-inc.com/-- provides business
process outsourcing and information technology solutions to
world-class commercial and government clients. The company has
more than 58,000 employees supporting client operations in
nearly 100 countries. The company has global operations in
Brazil, China, Dominican Republic, India, Guatemala, Ireland,
Philippines, Poland, and Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 8, 2008, Standard & Poor's Ratings Services affirmed its
'BB' corporate credit rating on Dallas, Texas-based Affiliated
Computer Services Inc., and removed it from CreditWatch, where
it had been placed with negative implications on March 20, 2007.
S&P said the outlook is negative.
=============
E C U A D O R
=============
PETROECUADOR: Unit Eyes 199,000 Barrels a Day Output by Year-End
----------------------------------------------------------------
Ecuadorian state-owned oil firm Petroecuador production unit
Petroproduccion's head Guillermo Zurita told Business News
Americas that the company would have a total production of
199,000 barrels per day by the end of 2008.
Petroecuador posted on its Web site that output totaled 171,082
barrels per day as of Jan. 15, 2008.
Mr. Zurita said in a statement that Petroecuador will launch up
to four additional drill towers that will drill close to 60
wells.
Mr. Zurita told BNamericas that production from block 15 would
total total 107,000 barrels per day by the end of 2008.
Meanwhile, output from the block was 95,022 barrels per day as
of Jan. 15, 2008. Ecuador cancelled US oil firm Occidental's
contract on block 15 in May 2006, when production averaged
100,000 barrels per day.
Once the finance ministry grants the US$2 billion in investment
that Petroecuador has asked, output will grow in April-May,
BNamericas states, citing Mr. Zurita.
In previous years, Petroecuador, according to published reports,
was 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. In 2008, a new management team was
appointed to turn around the company's operations.
=================
G U A T E M A L A
=================
IMAX CORP: Records US$145 Million from Hollywood Films in 2007
--------------------------------------------------------------
IMAX Corporation continued its impressive box office winning
streak during 2007 by generating US$145 million for Hollywood
releases, which is 56% higher than the US$93 million that the
IMAX(R) theatre network grossed during 2006. Hollywood films
that played in IMAX theatres in 2007 included eight titles from
4 different studios, all of which were converted into The IMAX
Experience(R) using the company's proprietary DMR technology in
both 2D and IMAX(R) 3D.
The titles in IMAX's 2007 film slate that contributed to this
record-setting box office performance included 300 (Warner Bros.
Pictures), Spider-Man 3 (Sony), Harry Potter and the Order of
the Phoenix (Warner Bros. Pictures), Transformers (Paramount
Pictures), Beowulf (Paramount Pictures) and I Am Legend (Warner
Bros. Pictures) as well as the early 2007 playoffs of Night at
the Museum (Twentieth Century Fox) and the Polar Express re-
issue (Warner Bros. Pictures).
"This milestone is another testament to strong relationships
IMAX has formed with the Hollywood studios, the filmmaking
community and our exhibitor partners," said IMAX Co-Chairpersons
and Co-Chief Executive Officers, Richard L. Gelfond and Bradley
J. Wechsler. "Last year's box office performance and the strong
IMAX brand makes the timing ideal for the rollout of our new
digital projection system in mid-2008. We look forward to
delivering even more terrific Hollywood content from our studio
partners as the IMAX theatre network continues to grow -- making
The IMAX Experience accessible to consumers in nearly every
major market in the United States and in new IMAX locations
worldwide."
"Our winning streak is particularly gratifying when you consider
that since September 2006, we've released eight "day and date"
theatrical titles from four different studios and each has
opened in the number one spot the weekend they launched, with
IMAX contributing as much as 13%," added IMAX Filmed
Entertainment Chairperson and President, Greg Foster. "Further,
five of the Hollywood titles released in IMAX finished in the
top ten grossing films of 2007, which indicates that IMAX really
has become part of the distribution mind set for tent pole
pictures and part of the movie-going habits of audiences
throughout the world. Our incredible studio partners continue
to deliver amazing content, and we're so pleased that they
recognize the value in making IMAX an important part of their
release strategy."
Looking forward, IMAX Corp. has already secured significant
titles for its film slate for 2008, 2009 and 2010 through
agreements with major Hollywood studios including: The
Spiderwick Chronicles (February 2008), Shine A Light (April
2008), Kung Fu Panda (June 2008), The Dark Knight (July 2008),
Under the Sea 3D (February 2009), Monsters vs. Aliens 3D (March
2009), How to Train Your Dragon 3D (November 2009), Hubble 3D
(working title, February 2010) and Shrek Goes Forth 3D (May
2010).
About IMAX Corp.
Based in New York City and Toronto, Canada, IMAX Corporation
(NASDAQ:IMAX) -- http://www.imax.com/-- is an entertainment
technology company, with emphasis on film and digital imaging
technologies including 3D, post-production and digital
projection. IMAX is a fully-integrated, out-of-home
entertainment enterprise with activities ranging from the
design, leasing, marketing, maintenance, and operation of
IMAX(R) theatre systems to film development, production, post-
production and distribution of large-format films. IMAX also
designs and manufactures cameras, projectors and consistently
commits significant funding to ongoing research and development.
IMAX has locations in Guatemala, India, Italy, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 14, 2008, IMAX Corp.'s consolidated balance sheet at
Sept. 30, 2007, showed US$212.7 million in total assets and
US$289.5 million in total liabilities, resulting in a US$76.8
million total stockholders' deficit.
=============
J A M A I C A
=============
AIR JAMAICA: Workers Get No National Housing Trust Returns
----------------------------------------------------------
Few Air Jamaica employees have complained to Radio Jamaica about
not getting their National Housing Trust returns.
According to Radio Jamaica, the workers claimed that when they
applied for their refund, they were told that there was none.
Radio Jamaica notes that Air Jamaica was reportedly not turning
over statutory deductions to the National Housing Tust.
National Workers Union vice president Granville Valentine
commented to Radio Jamaica, "Wednesday we got a few calls for
workers who say they went to claim their returns and they were
told there is none. We have spoken to one manager at Air
Jamaica and we should be having some serious dialog by tomorrow
afternoon because they had promised us that they would have made
sufficient payments so we are a little bit disappointed at the
present position."
Air Jamaica made an arrangement with the National Housing Trust
for the members to get their refunds, Radio Jamaica says, citing
Mr. Valentine.
"We met with the management of Air Jamaica on Monday and the
issues as it relates to the salary deduction. They gave us the
understanding that they would have sorted out any outstanding
payments to bring the records current. They also showed us a
longstanding agreement with the NHT [National Housing Trustee]
where an arrangement is in place for them to pay installments
for the back payments that occurred for the past ten years. We
are not satisfied with that. We were not aware that workers
were having problems with NHT returns," Mr. Valentine told Radio
Jamaica.
Headquartered in Kingston, Jamaica, Air Jamaica --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government assumed full ownership of the airline after
an investor group turned over its 75% stake in late 2004. The
government had owned 25% of the company after it went private in
1994. The Jamaican government does not plan to on Air Jamaica
permanently.
* * *
On July 21, 2006, Standard & Poor's Rating Services assigned B
long-term foreign issuer credit rating on Air Jamaica Ltd.,
which is equal to the long-term foreign currency sovereign
credit rating on Jamaica, is based on the government's
unconditional guarantee of both principal and interest payments.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 12, 2007, Moody's Investors Service assigned a rating of B1
to Air Jamaica Limited's guaranteed senior unsecured notes.
AIR JAMAICA: Bidder Wants To Rehabilitate Palisadoes Road
---------------------------------------------------------
An unnamed bidder for a majority stake in Air Jamaica has
expressed willingness to finance the rehabilitation and
restructuring of the Palisadoes road, The Jamaica Observer
reports.
According to The Observer, the Palisdoes road is the sole access
route to the Norman Manley International Airport.
As reported in the Troubled Company Reporter-Latin America on
Jan. 14, 2008, one of the four unnamed major airline firms is
selected to take a stake in Air Jamaica within another year.
Don Wehby, minister without portfolio in the Ministry of Finance
said that "the response from potential partners has been
overwhelming, and there are some very serious partners with a
lot of good plans and capital who we are speaking to now."
According to Mr. Wehby, the government sought a partner that
must:
-- be major company with airline experience and had a huge
capital to operate Air Jamaica,
-- present a very clear plan of how they intend to increase
the flow of tourists into Jamaica, and
-- be willing to maintain the Air Jamaica brand on the
aircraft.
A source told The Observer that the bidder, which is a foreign
airline, wanted to lift the Palisadoes road higher than sea
level, which would ease the fears of many that the road, which
is highly susceptible to flooding, could be lost to storms.
The source commented to The Observer, "The bidder is willing to
raise the Palisadoes road and fund it. They are also willing to
invest in infrastructure projects, including the creation of a
free trade zone."
It would take some US$100 million to fix the road in the way the
bidder is proposing, The Observer says, citing the source.
Jamaican transport and works minister Mike Henry told The
Observer that the government had already applied for finances to
fix a section of Palisadoes.
Minister Henry commented to The Observer, "A Cuban firm has
conducted a study on the Palisadoes road and based on that study
we have applied to the Caribbean Development Bank for a loan of
US$25 million to address the Palisadoes road situation. While
our loan application is being considered, we have been riveting
the road which, to date, has come at a cost of J$40 million. We
are now shoring up the harbor side of the road."
The offer to fix the road would give the bidder more attention
when the government launches talks to the airlines that have
made bids to enter a joint venture accord with Air Jamaica, The
Observer states.
NATIONAL COMMERCIAL: Olint Gets Injunction for Account Closing
--------------------------------------------------------------
Paul Henry at The Jamaica Observer reports that Olint
Corporation Ltd. has obtained an interim injunction in the
Jamaican Supreme Court preventing the National Commercial Bank
from closing its accounts.
According to The Observer, the Supreme Court had ruled on
Dec. 25, 2007, that Olint Corporation was illegally trading in
securities and should get proper licenses.
The Observer relates that the National Commercial had informed
Olint Corporation that it would be closing its three accounts at
the Hagley Park Road unit and in other locations across Jamaica.
Olint Corporation was then forced to seek the injunction.
The report says that Olint Corporation is seeking a declaration
from the Supreme Court that the National Commercial:
-- has abused its position of dominance by threatening to
close Olint Corporation's accounts;
-- is in violation of the Fair Competition Act, as it has
refused and threatened to refuse supplying banking
service;
-- intended to injure Olint Corporation, as it acted
unlawfully, in a manner that interfered with the
claimant's business by reason of which the claimant has
suffered loss and damage and stands to suffer injury to
its reputation; and
-- by threatening to close the accounts, the National
Commercial is doing an improper purpose, knowing that by
doing so it would be interfering with, and disrupt the
claimant's contract to provide services to its club
members.
The Oberver states that the injunction Olint Corporation
obtained from the Supreme Court expires on Jan. 25, 2007.
Olint Corporation will face the National Commercial before the
Supreme Court on Jan. 24, 2008, to prove its accusations, The
Observer reports.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica-
based National Commercial Bank Jamaica Limited:
-- long-term foreign and local currency Issuer Default
Ratings (IDR) at 'B+';
-- short-term foreign and local currency rating at
'B';
-- individual at 'D';
-- support at 4.
The rating outlook on the bank's ratings is stable, in line with
Fitch's view of the sovereign's creditworthiness.
===========
M E X I C O
===========
DURA AUTOMOTIVE: Gets Lenders Consent To Amend DIP Loan Terms
-------------------------------------------------------------
DURA Automotive Systems, Inc., said in a filing with the
Securities and Exchange Commission that it received the
necessary consents from its lenders to amend the terms of the
Revolving DIP Credit Agreement and the Term Loan DIP Credit
Agreement to, among other things,
(i) extend their final maturity dates from Dec. 31, 2007 to
Jan. 31, 2008,
(ii) restrict outstandings under the Revolving DIP Credit
Agreement to a maximum amount of US$48 million,
(iii) waive the minimum EBITDA covenant under the Revolving DIP
Credit Agreement during January 2008 and extend the
capital expenditure covenant set forth in the Term Loan
DIP Credit Agreement,
(iv) incorporate a new minimum excess availability covenant in
the Revolving DIP Credit Agreement and
(v) increase the interest rate set forth in the Term Loan DIP
Credit Agreement by 2.00%.
Debtors Obtain Reduction of Carve-Out Cap
Marc Kieselstein, P.C., Esq., at Kirkland & Ellis, LLP, in
Chicago, Illinois, tells the Court that the Amended DIP
Documents contemplate the reduction of the Carve-Out Cap and
provided specific consent of the Postpetition Secured Parties to
the reduction.
Mr. Kieselstein says reduction of the Carve-Out Cap will provide
the Debtors with enhanced access to working capital to fund
ongoing operations.
In this regard, the Debtors submitted an amended Final DIP Order
to add a paragraph implementing the reduction in the Carve-Out
Cap, consistent with the DIP Amendments.
The Court's order approving the request provides that Carve-Out
Cap is reduced from US$10 million to US$5 million.
Copies of the Amendment No. 4 and Waiver with Respect to
Revolving DIP Credit Agreement and Amendment No. 5 and Waiver
with Respect to Term Loan DIP Credit Agreement are available at:
http://ResearchArchives.com/t/s?270f
http://ResearchArchives.com/t/s?2710
The company expects that it will need to obtain additional
amendments to further extend the final maturity dates of the
Revolving DIP Credit Agreement and the Term Loan DIP Agreement
or refinance the Term Loan DIP Agreement.
About DURA
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan and
Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities. (Dura Automotive
Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
DURA AUTOMOTIVE: Seeks Okay for 2008 Management Incentive Plan
--------------------------------------------------------------
Dura Automotive Systems Inc. and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware to approve a
key management incentive plan for the year 2008, which will
cover 220 participants consisting of middle and senior
management positions in North America and globally, including
their chief executive officer.
The 2008 KMIP will be effective for six months, from
Jan. 1, 2008, to June 30, 2008. The KMIP proposes a two three-
month performance measurement and payout periods:
* Threshold pay-out: If the Debtors achieve 90% of adjusted
EBITDA goals, participants will receive 50% of their
individual target bonus opportunities; and
* Maximum pay-out: If the Debtors achieve 120% of adjusted
EBITDA goals, participants will receive 150% of their
individual target bonus opportunities.
Under the 2008 KMIP, participants' target bonus opportunities
range from 5% to 80% of each participant's base salary. Target
bonus opportunities for participants in the previous KMIP were
reduced in the 2008 KMIP to allow greater number of
participants, Daniel J. DeFranceschi, Esq., at Richards, Layton
& Finger, P.A., in Wilmington, Delaware, tells the Court.
The Debtors' CEO will be awarded a US$2.5 million bonus if the
Debtors emerge from Chapter 11 by June 30, 2008. If Debtors do
not emerge from Chapter 11 by July 30, the CEO's bonus will be
reduced by US$250,000 per month through and including Dec. 31.
Furthermore, if the Debtors will not emerge from Chapter 11 by
Dec. 31, 2007, the CEO's bonus will be reduced to zero.
The Debtors anticipate to pay approximately US$6 million at the
achievement of target EBITDA.
The Debtors will make payments on completion of each of the
three-month performance periods, as dictated by the company's
achieved EBITDA at that time and as determined by the company's
board of directors. The CEO's Bonus will be paid on the
Debtors' exit from Chapter 11.
Mr. DeFranceschi says the 2008 KMIP aims to properly incentivize
those key employees who have worked diligently towards -- and
were highly focused on -- the Debtors' exit from Chapter 11 by
Dec. 31, 2007.
Recent developments in the Debtors' bankruptcy cases have
"engendered uncertainty among the Debtors' key employees," he
tells the Court. As previously reported, the Debtors were
unable to get the Court's approval of their plan of
reorganization after they failed to obtain a favorable exit
financing.
"It is important that these key employees remain engaged and
properly incentivized to maximize the Debtors' financial and
operational performance, thereby maximizing the Debtors' value
and creditor recoveries," he further asserts.
Toward this end, the Debtors retained Watson Wyatt Worldwide as
their compensation consultant to craft an appropriate key
employee incentive plan. Mr. DeFranceschi tells the Court that
the 2008 KMIP is fundamental to motivating key employees to
achieve or exceed the Debtors' financial and operational
restructuring goals.
The Debtors' previously Court-approved KIMP expired on
Dec. 31, 2007, and the Debtors' compensation structure continues
to be below the medial level of compensation provided by
comparable companies in the marketplace, he adds.
About DURA
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan and
Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities. (Dura Automotive
Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
GRUPO MEXICO: Union Holds Protests Over Labor Ministry's Ruling
---------------------------------------------------------------
The Mexican national mining-metalworkers union STMMRM told
Business News Americas that it has launched demonstrations
against the labor ministry's declaring a strike at Grupo Mexico
SA, de C.V.'s Cananea copper mine illegal.
According to BNamericas, union representatives said the Mexican
mining industry was shut down.
As reported in the Troubled Company Reporter-Latin America on
Jan. 15, 2008, the Mexican labor board declared that the five-
month strike by workers at Cananea was illegal. The strikers
had obtained in December 2007 authorization from a Mexican court
to continue their protests.
BNamericas notes that the protest was expected to last only for
the first eight-hour shift and employees would return to their
jobs.
A union spokesperson told BNamericas that about 90% of STMMRM's
sections participated in the protest, affecting national and
foreign firms working in Mexico.
A Grupo Mexico spokesperson confirmed to BNamericas that the
rest of the industry was shut down.
Grupo Mexico had said in a statement that it was unaware of any
stoppages at its operations.
Grupo Mexico spokesperson Jeff Wilhoit told BNamericas that
these operations were not affected by the strike:
-- Vancouverite major Goldcorp's San Dimas,
-- Los Filos, and
-- Penasquito.
Mr. Wilhoit commented to BNamericas, "There are some spotty
stoppages, nothing along the lines of anything material. Just
where there is union presence, such as at [Goldcorp's] Nukay
mine."
Meawnwhile, Mexico's Industrias Penoles admitted in a filing
with the Mexico City bourse that its operations were affected by
the strike.
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.
ICONIX BRAND: Continues Expansion with Three License Agreements
---------------------------------------------------------------
Iconix Brand Group, Inc. has entered into license agreements for
its Royal Velvet (R), Badgley Mischka (R), Rocawear (R), London
Fog (R), Op (R) and Rampage (R) brands that expand existing
product categories and open new markets.
Domestically, Iconix Brand has entered into a license agreement
for its newly acquired home brand, Royal Velvet, with Mohawk
Home for bath and scatter rugs. Mohawk Home, a division of
Mohawk Industries, will debut the new Royal Velvet collections
for Spring 2008. Under the terms of the agreement, Mohawk Home
will manufacture and produce bath, scatter and kitchen rugs to
be sold in the United States and Canada in department and
specialty stores as well as online retailers.
Continuing to grow its Badgley Mischka brand's licensing
portfolio, the company announced a long-term license agreement
with Zalemark for Badgley Mischka fine jewelry. The luxurious
jewelry collection will be distributed through high-end retail
stores and will launch for Fall 2008 at the May 2008 Couture
tradeshow.
The company has entered into a license agreement with K&M
Jewelry for its Rocawear brand. K&M will manufacture and
distribute Rocawear costume jewelry and will launch the first
collection for Fall 2008 at the MAGIC tradeshow in February.
Additionally, the company has signed a license agreement with
Synclaire Brands/BCNY to manufacture and distribute London Fog
women's and men's socks and women's hosiery which will be sold
at department stores throughout the United States.
Internationally, the company has signed a long-term master
license agreement with Pena Group to distribute the Rampage
brand exclusively in Thailand. Pena Group is one of the leading
manufacturers and fashion retailers in Thailand, with more than
100 free standing retail stores and 150 shop-in-shops throughout
Thailand and currently holds the license for a variety of
international fashion brands including Nautica, Ecko Unlimited
and Diesel in Thailand. The company has also extended a master
license for its Op brand with MGS for men's, women's and
children's apparel and accessories including bags and backpacks
in Israel.
Iconix Chairperson and Chief Executive Officer, Neil Cole
stated, "We are pleased to welcome our new partners to our
expansive network of over two hundred licensees worldwide.
Iconix continues to grow and we are always excited to pair with
industry leaders as we expand our brands into complete lifestyle
collections in the Unites States and abroad."
Separately, the company is reaffirming its previously stated
guidance for the full years 2007 and 2008. For 2007, the
company is reaffirming revenue and fully diluted EPS at the
higher end of its ranges of US$150 to US$160 million and US$0.96
to US$1.00 respectively. For 2008, the company is reaffirming
its previously stated guidance of revenue between US$240 to
US$250 million and fully diluted EPS between US$1.35 and
US$1.40. As announced earlier, management will be presenting
this afternoon at the 10th Annual ICR XChange Conference. The
audio portion of the presentation will be webcast live. The
presentation materials will be posted at the company's web site.
The webcast can be found in the investor relations section of
the company website.
About Iconix Brand
Based in New York City, Iconix Brand Group Inc. (Nasdaq: ICON)
-- http://www.iconixbrand.com/-- owns fashion brands to retail
distribution from the luxury market. The company licenses its
brands to retailers and manufacturers worldwide. The group has
international licenses in Mexico, Japan and the United Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 12, 2007, Standard & Poor's Ratings Service has assigned
its bank loan and recovery ratings to apparel brand manager and
licensor Iconix Brand Group Inc.'s proposed US$60 million add-on
term loan facility. The add-on was rated 'BB', two notches
above the corporate credit rating, with a '1' recovery rating,
indicating the expectation of very high (90%-100%) recovery in
the event of a default.
At the same time, S&P raised the rating on the existing US$212.5
million loan facility to 'BB', from 'BB-', and revised the
recovery rating to '1' from '2'.
S&P affirmed the 'B+' corporate credit rating on the company.
The outlook is negative. The group had about US$642.2 million
in debt at Sept. 30, 2007.
MOVIE GALLERY: Court Okays Procedures to Determine Cure Amounts
---------------------------------------------------------------
The Honorable Douglas O. Tice of the U.S. Bankruptcy Court for
the Eastern District of Virginia approved Movie Gallery Inc. and
its debtor-affiliates' cure procedures to determine the amounts
that arose under prepetition leases that are not subject to
postpetition audit or adjustment.
The Debtors are allowed, in their sole discretion, to resolve
any disputes related to cure amounts by mutual agreement with
the Lessor and without further Court order.
Furthermore, any party-in-interest that fails to file and serve
a Cure Statement in a timely manner will be forever barred,
estopped and enjoined from asserting, collecting or seeking any
amounts on account of the cure amounts in excess of the amounts
in the Cure Notice. In the same manner, the Debtors will be
forever discharged from any and all related indebtedness or
liability.
Any determination of cure amounts will apply to prepetition
amounts only and will not be deemed to have established the
total applicable default amounts that must be cured or
compensation payable for any resulting pecuniary loss.
"The Order is not deemed to affect the right of any Lessor to
contest the Debtors' statement of postpetition amounts due at
the time of assumption or to object to assumption on other non-
monetary grounds," Judge Tice clarified.
Actions by any party-in-interest taken in accordance with Cure
Procedures will not be deemed as an assumption, adoption,
rejection or termination of any Lease or an acceptance that any
Lease is executory or unexpired.
Moreover, the Debtors explicitly reserve their rights, in their
sole discretion, to reject or assume any Lease pursuant to
Section 365(a) of the Bankruptcy Code.
Judge Tice further ruled that the Order does not:
(i) alter the prepetition nature of the Leases or the
validity, priority or amount a Lessor's against the
Debtors under the Leases;
(ii) create a postpetition contract or agreement; or
(iii) elevate to administrative expense priority any claims of
a Lessor against the Debtors under the Leases.
A full text copy of the Cure Amount Procedures is available for
free at:
http://researcharchives.com/t/s?2706
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. The company owns and operates 4,600 retail
stores that rent and sell DVDs, videocassettes and video games.
It operates over 4,600 stores in the United States, Canada, and
Mexico under the Movie Gallery, Hollywood Entertainment, Game
Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, is the Debtors' local counsel. The Debtors'
claims & balloting agent is Kutzman Carson Consultants LLC.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000.
The Official Committee of Unsecured Creditors has selected
Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B.
Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl &
Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at
Miles & Stockbridge PC, as its local counsel.
The Debtors' spokeswoman Meaghan Repko said that the company
does not expect to exit bankruptcy protection before the second
quarter of 2008. The Debtors have asked the Court to extend
their plan-filing exclusive periods to June 13, 2008. (Movie
Gallery Bankruptcy News, Issue No. 14; Bankruptcy Creditors'
Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Wants CIO Seth Levy's Employment Terms Approved
--------------------------------------------------------------
Movie Gallery Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Eastern District of Virginia to approve
the employment agreement it entered into with Seth Levy as chief
information officer to manage their operations with respect to
information technology.
Upon Court approval, the employment agreement will become
effective and will continue for 12 months with annual one-year
extensions.
Peter J. Barrett, Esq., at Kutak Rock LLP, in Richmond,
Virginia, recounts that the Debtors' chief information officer
resigned in April 2007, and was replaced by John Rossman from
Alvarez & Marsal Business Consulting, LLC, on an interim basis.
Mr. Rossman, however, resigned in October 2007.
The Debtors determined that Mr. Levy's extensive experience in
managing information technology projects for large retail
companies qualifies him to manage the Debtors' related
operations. Notably, Mr. Levy served as senior vice president
for Logistics, chief information officer for Electronic Boutique
Holdings, president of EB Games Online, and director for Systems
and Programming in May Department Stores Company, Mr. Barrett
discloses.
Pursuant to the Agreement, Mr. Levy will perform his duties as
chief information officer, as assigned by the chief executive
officer of Movie Gallery, Inc. He will also receive an annual
salary of US$325,000, and a sign-on bonus of US$75,000.
Additionally, Mr. Levy will be entitled to participate in Movie
Gallery, Inc.'s executive officer bonus program and other
incentives, cash and equity compensation plans as determined by
the Board of Directors.
In the event that Mr. Levy is terminated, he agrees not to
compete with the Debtors for a period of one year from his
termination.
The Debtors and Mr. Levy have also agreed, notwithstanding
anything to the contrary in the Agreement, that Mr. Levy is not
entitled to the severance benefits upon his termination.
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. The company owns and operates 4,600 retail
stores that rent and sell DVDs, videocassettes and video games.
It operates over 4,600 stores in the United States, Canada, and
Mexico under the Movie Gallery, Hollywood Entertainment, Game
Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, is the Debtors' local counsel. The Debtors'
claims & balloting agent is Kutzman Carson Consultants LLC.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000.
The Official Committee of Unsecured Creditors has selected
Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B.
Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl &
Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at
Miles & Stockbridge PC, as its local counsel.
The Debtors' spokeswoman Meaghan Repko said that the company
does not expect to exit bankruptcy protection before the second
quarter of 2008. The Debtors have asked the Court to extend
their plan-filing exclusive periods to June 13, 2008. (Movie
Gallery Bankruptcy News, Issue No. 14; Bankruptcy Creditors'
Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000)
PORTOLA PACKAGING: Weak Liquidity Prompts S&P To Pare Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its ratings on
Portola Packaging Inc., including its corporate credit rating by
two notches to 'CCC' from 'B-'. The outlook is negative.
The downgrade reflects the continuation of weaker-than-expected
operating profitability and cash flow generation during fiscal
year 2007 and the first quarter of 2008, which resulted in
additional deterioration of the company's weak liquidity
position. Liquidity could deteriorate further during upcoming
quarters because of expected cash outlays for debt service and
capital expenditures coupled with challenging business
conditions, including weak market demand for domestic fresh milk
and elevated plastic resin costs related to higher crude oil and
natural gas prices.
"We could lower the ratings again if Portola is unable to
preserve sufficient availability under its secured revolving
credit facility and begin to substantially improve operating
results," said S&P's credit analyst Henry Fukuchi.
The ratings reflect the company's highly leveraged financial
profile, constrained liquidity, modest size of operations, and
narrow product line. Only partially offsetting these negative
factors are defensible niche positions in end markets and
favorable geographic diversity. The San Jose, California-based
company has annual sales of about US$270 million.
Portola Packaging Inc. -- http://www.portpack.com/-- designs,
manufactures and markets tamper evident plastic closures used in
dairy, fruit juice, bottled water, sports drinks, institutional
food products and other non-carbonated beverage products. The
company also produces a wide variety of plastic bottles for use
in the dairy, water and juice industries, including various high
density bottles, as well as five-gallon poly carbonate water
bottles. In addition, the company designs, manufactures and
markets capping equipment for use in high-speed bottling,
filling and packaging production lines. The company is also
engaged in the manufacture and sale of tooling and molds used in
the blow molding industry. The company has locations in China,
Mexico and Belgium.
===========
P A N A M A
===========
DIGICEL GROUP: Prequalifies To Bid for Panamanian Mobile License
----------------------------------------------------------------
Digicel has prequalified in the bidding process for two 20-year
mobile licenses in Panama, public services regulator Asep posted
on its Web site.
According to Asep's Web site, El Salvador's Telemovil and Claro
Panama also prequalified for the bidding.
Asep deputy networks director Horario Hoquee told Business News
Americas that four firms participated in the prequalification
process.
French company Wirefree Services Panama failed to meet the
legal, technical and financial requirements, BNamericas says,
citing Asep.
BNamericas notes that Digicel, Telemovil, and Claro Panama can
now buy bidding rules. They must present economic bids by
April 3. The concessions will be awarded on April 14.
"Panama currently has a market of 2.93 million clients (seven
out of 10 Panamanians have cell phones) that use the services of
the two existing operators and it is hoped that two of the three
prequalified companies will make the market more attractive in
terms of price and service quality," Asep told BNamericas.
Dow Jones Newswires relates that Cable & Wireless Panama and the
local unit of Spain's Telefonica SA are the current mobile
operators in Panama.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid
-- estimated market share of 67% and revenues and EBITDA of
US$478 million and US$155 million, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- Proposed US$1.4 billion senior subordinated notes
due 2015 assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings is stable.
=======
P E R U
=======
QUEBECOR WORLD: Nonpayment of Interest Cues S&P to Cut Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
corporate credit rating on Montreal-based printing company
Quebecor World Inc. to 'D' from 'CCC'. S&P also lowered the
rating on the company's US$400 million 9.75% senior unsecured
notes due 2015 to 'D' from 'CCC-'. In addition, S&P lowered the
rating on the company's other senior unsecured notes to 'CC'
from 'CCC-'. The preferred stock rating remains unchanged at
'D'. With these rating actions, S&P also removed the ratings
from CreditWatch with negative implications, where they were
placed Aug. 9, 2007.
"The downgrade follows Quebecor World's nonpayment of interest
expense on its US$400 million 9.75% senior unsecured notes, due
Jan. 15, 2008," said S&P's credit analyst Lori Harris. "In the
unlikely event that the company makes the payment within the 30-
day cure period, we could raise the ratings," Ms. Harris added.
The interest payments on the company's remaining senior
unsecured notes remain current, hence S&P did not lower the
ratings on these issues to 'D'. However, S&P will lower the
ratings on these issues should the senior unsecured notes go
into default.
Quebecor World is in default on its US$750 million revolving
credit facility because the company was unable to raise the
required US$125 million by Jan. 15, 2008, which was a condition
to the covenant waiver on Dec. 31, 2007. Although the company
had requested an extension from the bank group regarding the
requirement for US$125 million in new funds, it did not receive
it. The non-satisfaction of this condition does not
automatically result in the termination of the bank group's
waiver, an acceleration of the maturity of indebtedness under
the credit facilities, or a cross-default under the company's
other debt obligations. Any such action would require formal
notification from a majority of the bank group to Quebecor
World.
Headquartered in Montreal, Quebec, Canada, Quebecor World Inc.
(TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/--
provides marketing and advertising solutions to leading
retailers, catalogers, branded-goods companies and other
businesses with marketing and advertising activities, as well as
complete, full-service print solutions for publishers. The
company's major product categories include advertising inserts
and circulars, catalogs, direct mail products, magazines, books,
directories, digital premedia, logistics, mail list technologies
and other value-added services. Quebecor World has
approximately 27,500 employees working in more than 120 printing
and related facilities in the United States, Canada, Argentina,
Austria, Belgium, Brazil, Chile, Colombia, Finland, France,
India, Mexico, Peru, Spain, Sweden, Switzerland and the United
Kingdom.
=====================
P U E R T O R I C O
=====================
TERADYNE INC: FTC OKs Early Termination on Merger Waiting Period
----------------------------------------------------------------
The Federal Trade Commission has granted Teradyne Inc. and
Nextest Systems Corporation early termination of the waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended, with respect to Teradyne's tender offer for
the outstanding shares of Nextest Systems Corporation.
As reported in the Troubled Company Reporter on Dec. 21, 2007,
Teradyne Inc. and Nextest Systems Corp. have signed a definitive
agreement under which Teradyne will acquire Nextest for an
aggregate purchase price of approximately $325 million in cash.
NAC Equipment Corporation, a direct subsidiary of Teradyne,
commenced a tender offer to acquire all outstanding shares of
common stock of Nextest, at a price of $20 per share, in cash,
pursuant to a Agreement and Plan of Merger among Teradyne, NAC,
and Nextest dated Dec. 11, 2007.
The tender offer and any withdrawal rights to which Nextest's
stockholders may be entitled will expire at midnight, New York
City time at the end of Jan. 23, 2008, unless the offer is
extended.
About Nextest Systems Corp.
Headquartered in San Jose, California, Nextest Systems Corp.
(NASDAQ:NEXT) -- http://www.nextest.com/-- is a designer and
manufacturer of automatic test equipment for Flash memory and
System-On-Chip semiconductors. Nextest's products address the
demand from manufacturers for ATE with increased throughput,
functionality and reliability, while reducing time to market and
cost of test. Nextest has shipped over 1,900 systems to more
than 70 semiconductor companies worldwide.
About Teradyne Inc.
Headquartered in North Reading, Massachussetts, Teradyne Inc.
(NYSE: TER) -- http://www.teradyne.com/-- is a supplier of
Automatic Test Equipment used to test complex electronics used
in the consumer electronics, automotive, computing,
telecommunications, and aerospace and defense industries.
Teradyne employs about 3,600 people worldwide. The company has
offices in Brazil and Puerto Rico.
* * *
Teradyne Inc. still carries S&P's "B+" long-term foreign issuer
credit and long term local issuer credit ratings which was
placed on Dec. 13, 2002.
=============
U R U G U A Y
=============
GERDAU SA: Joint Venture w/ Kalyani Getting US$400MM Investments
----------------------------------------------------------------
A Gerdau SA press official told Business News Americas that
Kalyani Gerdau, the firm's joint venture with India's Kalyani
Group, will get investments of US$400 million for the expansion
of its liquid steel capacity.
BNamericas relates that Gerdau and Kalyani Group launched the
joint venture in India in June 2007. The firms have a stake of
some 45% each in the project. Other investors hold a 10% stake
in the joint venture.
Kalyani Gerdau can produce up to 275,000 tons of liquid steel
per year, BNamericas notes, citing the Gerdau press official.
Its capacity would increase to one million tons per year by
2010.
About Kalyani Group
Based in India, the Kalyani Group has diverse business interests
in Engineering Steel, Forgings, Auto Components, Non
Conventional Energy & Speciality Chemicals. The group's Annual
Turnover is over US$2.1 billion and has joint ventures with
foreign firms including ArvinMeritor, Carpenter Technology
Corporation, Hayes Lemmerz, and FAW Corporation.
About Gerdau SA
Headquartered in Porto Alegre, Brazil, Gerdau SA
-- http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.
As reported in the Troubled Company Reporter-Latin America on
Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s
Ba1 corporate family rating and stable outlook, following the
announcement of an agreement to acquire the specialty steel
operations of Quanex Corporation, mainly represented by its
MacSteel division for some US$1.46 billion in cash. All other
ratings related to the company were affirmed.
Ratings affirmed are:
Issuer: Gerdau S.A.
-- Ba1 Global Local Currency Corporate Family Rating
-- US$600 million Senior Unsecured Guaranteed Perpetual Notes:
Ba1 Foreign Currency Rating
Issuer: Gerdau Brazil (fictitious entity representing the
Brazilian operations of Gerdau S.A. comprising Gerdau Acominas
S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and
Gerdau Comercial de Acos S.A.).
-- Ba1 Global Local Currency Corporate Family Rating
Issuer: Gerdau Ameristeel Corporation
-- Ba1 Probability of Default Rating
-- Ba1 Corporate Family Rating
-- US$405 million Senior Unsecured Regular Bond: Ba1, LGD4 59%
Issuer: Jacksonville Economic Development Comm.
-- US$23 million Senior Unsecured Revenue Bonds guaranteed by
Gerdau Ameristeel: Ba1, LGD4 59%
Outlook for all ratings: stable
=================
V E N E Z U E L A
=================
BANESCO BANCO: Fitch Assigns Issuer Default Ratings at B
--------------------------------------------------------
Fitch Ratings has affirmed these Venezuela-based Banesco Banco
Universal ratings:
-- Long-term foreign and local currency Issuer Default
Ratings at 'B';
-- Short-term foreign and local currency rating at 'B';
-- Individual at 'D/E';
-- Support at 5.
-- Long-term National rating at 'A-(ven)';
-- Short-term National rating at 'F-2(ven)';
The Support Floor rating is affirmed at 'NF'.
Also, in the same action, Fitch assigned a 'B' Long Term and
short-term local currency IDR.
The Rating Outlook is Negative. Downside risk for Banesco
Banco's ratings would stem from a more severe weakening in the
bank's capitalization ratios, specially its free capital ratio,
a negative seasoning of its loan portfolio and/or additional
government measures that could negatively affect its
performance. The ratings reflect its relative size in
Venezuela, well-established franchise, fair asset quality and
its diversified customer base. A tight capital base, lower
expected profitability and significant government interference
were considered as well.
Aided by its ample client base and commercial efforts, Banesco
Banco's loan portfolio has increased more than five times at
end-June 2007 from end 2004, with consumer loans one of its main
drivers (25% of total loans). Though current impairment level
seem relative low (less than 1% of gross loans during the 2005-
2007 period), past due loans has increased almost four times in
the last 18 months, while the overall reserves ratio has fallen
to a low 1.4% of total loans at June-07, suggesting the possible
need for greater provisioning going forward. Despite the
increased loan portfolio, the bank still holds a large
concentration in government securities including its sizable
participation in the investment funds market, which are
partially recorded as off balance sheet operations. At end June
2007, this exposure reached 4.0 times equity and 1.8 excluding
short-term central bank securities.
The lack of foreign exchange gains, lower spreads and the burden
of relative high overheads have more than offset the advances in
terms of income diversification and low provisions, reducing the
bank's profitability; while a more modest asset growth and
continued pressure on the bank's spreads could affect Banesco
Banco's returns.
Strong asset growth, lower profitability and some cash dividends
have reduced capital ratios, with the equity-to-asset ratio
falling from 11% at end-2005 to 8.4% at end-June 2007, while the
risk-weighted capital ratio felt to 11.4%, slightly below the
current regulatory minimum of 12%, a situation the Banesco Banco
expects to clear in the short term through an issuance of
preference shares, whose equity content is still unclear.
Somewhat high holdings of fixed assets significantly reduce the
bank's free capital ratio to 6.0%, a ratio that has remained
stable despite strong growth.
At end-June 2007 Banesco Banco was Venezuela's largest bank in
terms of funds under management, with a market share of around
13%. Its capital is directly or indirectly controlled by
Banesco Holding (79%), majority owned by Mr. Juan Carlos
Escotet, its founder.
Banesco Banco Universal was established in 1977. It has grown
rapidly during the past 10 years through M&A. The bank offers
loans in several segments including consumer, commercial and
agricultural.
***********
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
publication in any form (including e-mail forwarding, electronic
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Information contained herein is obtained from sources believed
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