/raid1/www/Hosts/bankrupt/TCRLA_Public/080122.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
Tuesday, January 22, 2008, Vol. 8, Issue 15
Headlines
A R G E N T I N A
DELTA AIR: Commences Merger Negotiations with Northwest & UAL
LOGISTICA DIGITAL: Trustee Verifies Claims Until March 14
PETROBRAS ENERGIA: Discloses Facts Relating to Fin'l Statements
PIET MONDRIAN: Trustee Verifies Proofs of Claim Until March 14
PROVINCIA SEGUROS: Moody's Changes B2 Rating's Outlook to Pos.
SIDECO AMERICANA: Fitch Confims B+(arg) Rating on US$13.5MM Debt
YPF SA: Fitch Affirms Ratings Over Possible Petersen Purchase
B A H A M A S
HARRAH'S ENTERTAINMENT: Delists Common Stock After Merger Closes
HARRAH'S ENTERTAINMENT: Buyout Cues Fitch To Withdraw Ratings
TEEKAY CORP: Earns US$17 Million in 2007 Third Quarter
B E R M U D A
CONCORD RE: Bank Loan Repayment Prompts S&P's Rating Withdrawal
SEA CONTAINERS: Earns US$10,644,110 in Month Ended November 30
SEA CONTAINERS: SeaCon Services Files November 2007 Report
B R A Z I L
AMERICAN AIRLINES: Names Robert Friedman as Marketing President
FIDC INDUSTRIA: Moody's Assigns (P)Ba1 Global Currency Rating
DELPHI CORP: Gets US$44.2MM Bearing Biz Bid from ND Acquisition
HUGHES NETWORK: Provides Broadband Satellite Services in Brazil
JAPAN AIRLINES: Weighs Business Impact of Boeing Delivery Delay
PARANA BANCO: 2007 Adjusted Net Income Reaches BRL113.5 Million
PARANA BANCO: Gives 4.57 Mil. Non-Voting Shares To Advent Int'l
PROPEX INC: Case Summary & 30 Largest Unsecured Creditors
PROPEX INC: Files Chapter 11 Protection; To Continue Operations
TAM SA: Orders 40 New A320 Aircrafts to be Delivered by 2013
TELE NORTE: Anatel Supports Way TV Acquisition
C A Y M A N I S L A N D S
ARBOR I: Proofs of Claim Filing Is Until Jan. 24
ASIA IG: Proofs of Claim Filing Deadline Is Jan. 24
BEGONIA LIMITED: Sets Final Shareholders Meeting for Jan. 24
BLUEPOINT CORP: Proofs of Claim Filing Is Until Jan. 24
CHIMES FINANCE: Proofs of Claim Filing Deadline Is Jan. 24
FLUTE FINANCE: Proofs of Claim Filing Is Until Jan. 24
IH INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 24
MARNAR FINANCE: Proofs of Claim Filing Is Until Jan. 24
MPJ EQUITY: Sets Final Shareholders Meeting for Jan. 24
OAK CAPITAL: Proofs of Claim Filing Deadline Is Jan. 24
ORICO ARTEMIS: Proofs of Claim Filing Ends on Jan. 24
OTEMACHI EQUITY: Will Hold Final Shareholders Meeting on Jan. 24
PALM CAPITAL: Proofs of Claim Filing Is Until Jan. 24
PARMALAT SPA: Creditors Convert Warrants for 61,626 Shares
PARMALAT SPA: Reaches EUR310,000,000 Settlement Pact with Intesa
RC INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 24
SAKURA LTD: Proofs of Claim Filing Deadline Is Jan. 24
SCHOONER FINANCE: Proofs of Claim Filing Is Until Jan. 24
SEQUIOA CAPITAL: Proofs of Claim Filing Is Until Jan. 24
C H I L E
BANCO DE LA NACION: Fitch Cuts Rating to BB(chl)
INVENSYS PLC: Fitch Upgrades Issuer Default Ratings to BB
QUEBECOR WORLD: Chapter 11 Filing Cues S&P to Cut Rating to D
C O L O M B I A
BANCOLOMBIA: Says Loan Growth to Decelerate to 17.9% This Year
ECOPETROL: Says Tenax-1 Exploratory Well at 12,177 Feet Deep
C O S T A R I C A
SENSIENT TECH: Declares US$0.18 Per Share Quarterly Dividend
G U Y A N A
DIGICEL LTD: Reaches More Than Six Million Customers in 2007
J A M A I C A
NATIONAL COM'L: Cash Plus Investors Picket at Bank's Premises
M E X I C O
ADVANCED MICRO: Posts US$1.772-Bln Net Loss in 2007 4th Quarter
AMERICAN AXLE: 558 UAW Workers Accept Separation Deal
AVNET INC: Works with Xilinx to Build Training Lab in Singapore
BAUSCH & LOMB: Signs Definitive Pact Acquiring eyeonics
BALLY TOTAL: Levine Pursues Common Law Fraud Claims in Illinois
CLEAR CHANNEL: Extends Key Dates for Senior Notes Tender Offer
N E T H E R L A N D S A N T I L L E S
JETBLUE AIRWAYS: Launches New York-St Maarten Daily Flights
N I C A R A G U A
* NICARAGUA: Getting Cuban Generation Units
P U E R T O R I C O
PEP BOYS: Moody's Reviews Ratings for Possible Downgrade
ROYAL CARIBBEAN: Vicki Freed Joins as Sales Sr. Vice President
V E N E Z U E L A
CHRYSLER LLC: Christine Cortez To Quit as Senior Vice President
INDUSTRIAS METALURGICAS: Gets Edelca Tocoma Hydro Contract
PETROLEOS DE VENEZUELA: Restarts Amuay & Cardon Plants
* VENEZUELA: Bringing Cuban Generation Units to Nicaragua
* VENEZUELA: Hugo Chavez Threatens To Seize Private Banks
* Large Companies with Insolvent Balance Sheets
- - - - -
=================
A R G E N T I N A
=================
DELTA AIR: Commences Merger Negotiations with Northwest & UAL
-------------------------------------------------------------
Delta Air Lines Inc. obtained approval from its board of
directors on Jan. 11, 2007, to engage in formal merger talks
with both Northwest Airlines Corp. and UAL Corp., reports The
Wall Street Journal.
WSJ says Delta, which is in the early stages of discussions with
both Northwest and UAL, hopes to reach an agreement with one of
them over the next two weeks.
Delta is anticipating a deal announcement as early as mid-
February following Delta's board meeting scheduled early in the
month, says the report.
"A special committee of the board is working with management to
explore strategic options, including potential consolidation
transactions. However, we are not providing updates, while this
process is ongoing," Delta spokeswoman Betsy Talton, said.
Northwest and UAL declined to comment.
A UAL-Delta or a Northwest-Delta merger, which would likely be a
stock for stock transaction, would make Delta the largest
airline in the world, according to reports.
Experts in the airline industry, however, believe that a
Northwest-Delta merger is more likely as Delta's Chief Executive
Richard Anderson was previously CEO at Northwest, and is already
well acquainted with Northwest's operations.
Senator Johnny Isakson, a Georgia Republican, said that Mr.
Anderson told him in December that if there's a merger or an
acquisition, Delta would keep its name and Atlanta hub,
Bloomberg News reports.
About Delta Air
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.
(Delta Air Lines Bankruptcy News; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in yesterday's Troubled Company Reporter, according
to Standard and Poor's, media reports that Delta Air Lines Inc.
(B/Positive/--) entered into merger talks with UAL Corp.
(B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) 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.
LOGISTICA DIGITAL: Trustee Verifies Claims Until March 14
---------------------------------------------------------
Carlos D. Ayuso, the court-appointed trustee for Logistica
Digital S.A.'s reorganization proceeding, verifies creditors'
proofs of claim until March 14, 2008.
Mr. Ayuso will present the validated claims in court as
individual reports on April 30, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Logistica Digital 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 Logistica Digital's
accounting and banking records will be submitted in court on
June 12, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly on Dec. 2, 2008.
The debtor can be reached at:
Logistica Digital S.A.
Laprida 1728
Buenos Aires, Argentina
The trustee can be reached at:
Carlos D. Ayuso
Tucuman 1445
Buenos Aires, Argentina
PETROBRAS ENERGIA: Discloses Facts Relating to Fin'l Statements
---------------------------------------------------------------
Petrobras Energia Participaciones S.A., controlling company of
Petrobras Energia S.A., reported the following relevant facts
relating to the financial statements as of Dec. 31, 2007:
1) Estimated effects derived from the Amendment to Ecuador's
Hydrocarbons Law
Within the framework of the new legislation that regulates
the exploitation of hydrocarbons in Ecuador, in October
2007 the Ecuadorian Government issued an Amendment to the
Regulations for the Application of Law 42-2006, amendatory
to the Hydrocarbons Law, under which as from Oct. 18, 2007
the State's share in extraordinary revenues from crude oil
price increases was increased to 99% while the oil
companies' share was reduced to 1%.
Given the significant adverse impact derived from the
beforementioned regulatory change, an impairment charge of
approximately ARG750 million is estimated to be recorded
in the financial statements as of Dec. 31, 2007 in order
to adjust the book value of assets in Ecuador to their
recoverable value.
Meetings are currently being held between the company
representatives and Ecuadorian authorities in order to
integrate the Ecuadorian Government's objectives sought
through amendment of Law 42 with an economic profitability
framework for the company's operations.
2) Estimated effects derived from the company's businesses
in Venezuela
Within the framework of migration of operating contracts
to Mixed Companies in Venezuela, in 2006 the company
received from Corporacion Venezolana de Petroleo a non-
bearing interest, divisible and transferable credit for
approximately US$88.5 million, which may be used for the
payment of acquisition bonds within the framework of any
new mixed company project for the development of oil
exploration and production activities or license for
the development of gas exploration and production
operations in Venezuela.
Since to the date hereof no projects have been
materialized as from reception of the beforementioned
credit, efforts made for the transfer thereof to third
parties were not successful and no other applicable
alternative is anticipated, a write-down of approximately
ARG$181 million is estimated to be recorded in the
Financial Statements as of Dec. 31, 2007 in relation to
the above mentioned credit.
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-
PIET MONDRIAN: Trustee Verifies Proofs of Claim Until March 14
--------------------------------------------------------------
The court-appointed trustee for Piet Mondrian S.R.L.'s
reorganization proceeding verifies creditors' proofs of claim
until March 14, 2008.
Infobae didn't state the name of the trustee.
The trustee will present the validated claims in court as
individual reports on April 25, 2008. The National Commercial
Court of First Instance in San Miguel de Tucuman, Tucuman, 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 Piet Mondrian 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 Piet Mondrian's
accounting and banking records will be submitted in court on
June 9, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly on Dec. 19, 2008.
The debtor can be reached at:
Piet Mondrian S.R.L.
San Martin 633, San Miguel de Tucuman
Tucuman, Argentina
PROVINCIA SEGUROS: Moody's Changes B2 Rating's Outlook to Pos.
--------------------------------------------------------------
Moody's Investors Service has affirmed the B2 global local-
currency insurance financial strength rating of Provincia
Seguros S.A. and changed its outlook to positive from stable.
In the same rating action, the rating agency placed Provincia
Seguros' A1.ar IFSR on the Argentine national scale under review
for possible upgrade.
Moody's explained that the affirmation of Provincia Seguros'
global rating reflects several factors:
1) the integration of the company with both Banco Provincia
de Buenos Aires -- the second largest bank in the country
-- and with the Province of Buenos Aires itself;
2) its adequate market position in the Argentine P&C
industry and
3) its access to diversified distribution channels among
other factors.
The rating agency said that the company holds a 3.2% portion of
the domestic P&C market, as well as a 4% share in the highly
competitive motor business. Provincia Seguros distributes its
insurance products through alternative commercial channels,
including banks (mainly Banco Provincia de Buenos Aires), direct
distribution, and local agents. This model has enabled
management to reduce its underwriting expenses to a level lower
than many of its peers. In addition, Moody's believes that the
ownership structure and close integration with its ultimate
shareholders -- Banco Provincia de Buenos Aires and The Province
of Buenos Aires -- is a considerable long-term competitive
advantage.
Moody's said that offsetting these positive factors are the
company's low premium diversification and sustained underwriting
losses. In addition, significant risks to the ratings involve
Provincia Seguros' high exposure to below-investment grade
assets, a weak risk-adjusted capital adequacy, and a significant
country-specific macroeconomic risk.
The positive outlook reflects Moody's favorable opinion about
the positive trends in the company's financial and overall risk
profiles, as seen by its good business growth, its declining
underwriting leverage, and the improvement in profitability
driven by a declining combined ratio. Moody's added that
Provincia Seguros' gross underwriting leverage fell from 7.9 in
2003 to 6.2 as of the latest fiscal year ended June 30, 2007,
whereas many of its peers posted an increase in this metric.
The company also lowered its combined ratio to 111% from 130%
due to a more balanced book of business and better risk
selection.
Given the positive outlook on Provincia Seguros' B2 global local
currency IFS rating, Moody's placed the company's A1.ar national
scale IFS rating on review for possible upgrade since the B2
global local currency rating can be mapped to either an Aa3.ar,
A1.ar, or A2.ar national scale, and the company is currently
viewed as a relatively strong B2 insurer.
The rating agency said that the review for possible upgrade will
focus on these factors:
1) Provincia Seguros's first-half results in terms of
underwriting and financial incomes;
2) its capital surplus/solvency margins;
3) its business diversification compared with peers'; and 4)
its leverage profile and dividend policy.
Based in Buenos Aires, Argentina, Provincia Seguros reported a
net income of ARS7 million during the first quarter of 2007/2008
fiscal year, ended Sept. 30 2007. This income comprised a gain
of ARS3.9 million from underwriting and a ARS6.7 million jump in
net financial investment returns. The company's shareholders'
equity increased to almost ARS192 million, which was up 3.8%
from ARS185 million at the end of the fiscal year on
June 30, 2007.
SIDECO AMERICANA: Fitch Confims B+(arg) Rating on US$13.5MM Debt
----------------------------------------------------------------
Fitch confirmo en la Categoria B+(arg) las Obligaciones
Negociables no Garantizadas emitidas por Sideco Americana S.A.,
por un monto total de US$13.5 millones.
La calificacion asignada se sustenta en el elevado endeudamiento
que presenta Sideco a nivel no consolidado, con relacion a su
limitado flujo de fondos. Dado que la compania no cuenta con
actividad propia, la calificacion contempla la incertidumbre
implicitamente asociada a su generacion de fondos, que esta
determinada por los dividendos que pueda recibir de sus
sociedades vinculadas y/o controladas, y de la venta de activos.
La compania se encuentra en un proceso de reestructuracion de
sus negocios, a partir de la decision de salir del segmento de
construccion y desarrollos inmobiliarios en Argentina mediante
la venta, en marzo'07, de sus participaciones en IECSA y
Creaurban. A esto se le suma la venta reciente de su
participacion en Rodovias das Cataratas, concesionaria de una
autopista en Brasil. Luego de estas ventas, los activos mas
importantes de Sideco se conforman de su participacion en el
negocio de ecologia ambiental en Brasil, asi como en transporte
de energia electrica en Argentina. La nueva estrategia del
grupo se basa en potenciar sus negocios en las areas de
logistica, transporte y servicios, a su vez que se encuentra
analizando nuevos proyectos, algunos de los cuales se darian a
partir de alianzas que esta encarando con empresas chinas. Por
lo tanto, Fitch monitoreara la estrategia de negocios que encare
el grupo y su impacto en el perfil crediticio de Sideco.
Las ventas de IECSA y Creaurban no tuvieron un impacto negativo
en la calificacion de la compania, debido a que el saldo a
cobrar por estas ventas (US$46 million) esta calzado en su mayor
parte con los servicios de deuda que Sideco debe afrontar en el
marco del Acuerdo Preventivo Extrajudicial. El credito por la
venta de IECSA y Creaurban es con Angelo Calcaterra. Si bien la
familia Calcaterra posee otros activos, luego de esta operacion
las empresas adquiridas se encontraran entre sus activos
principales. Al analizar la posibilidad de que el repago del
credito por la venta provengan de los flujos libres que generen
IECSA y Creaurban, Fitch considera volatil la capacidad de
generacion de fondos de estas companias y ajustada su capacidad
de pago.
A su vez, esta operacion significo el cobro al contado de US$ 15
MM que podria destinarse a nuevos negocios. La liquidez de la
compania se incrementara una vez que cobre los fondos por la
venta de Rodovias.
Por su parte, se consideran limitados los flujos que podria
recibir Sideco de sus subsidiarias y/o vinculadas, a partir de
la venta de sus principales activos. A septiembre 2007, la
deuda financiera total en cabeza de Sideco fue de US$65 million
(35% de la deuda consolidada). La misma incluye US$20.6 million
con el Banco Nacion que se encuentran garantizados con titulos
publicos nacionales de calidad autoliquidables. La deuda de
Sideco proviene del APE y cuenta con vencimientos escalonados en
el largo plazo.
Sideco es un conglomerado dedicado a la generacion y
gerenciamiento de negocios en el area de servicios publicos e
infraestructura, principalmente en Brasil y Argentina. Entre sus
principales negocios se encuentran el de ecologia urbana e
industrial, el transporte de energia electrica y actividades
relacionadas con la logistica, el transporte y la prestacion de
servicios. El 99.61% del paquete accionario se encuentra en
manos de Socma Americana S.A., controlada por la familia Macri.
YPF SA: Fitch Affirms Ratings Over Possible Petersen Purchase
-------------------------------------------------------------
Fitch Ratings has affirmed YPF S.A.'s 'BB+' and 'BBB-' foreign-
and local-currency Issuer Default Ratings respectively,
following the announced sale of 14.9% of the company to Petersen
Energia for US$2.235 billion. Fitch has also affirmed its
'AAA(arg)' national scale rating. The rating outlook is stable.
The affirmations are based on the expectation that the
transaction will not result in a significant change in the
managerial direction, operational strategy and leverage of YPF.
While the transaction has the potential to result in pressure to
increase the dividend payout to shareholders to help service the
debt at the Petersen Group used to acquire its stake, YPF will
continue to have the financial flexibility to cope with a more
aggressive dividend policy, its existing investment program and
some small amount of additional debt given its strong financial
profile and a dominant domestic market share. The entrance of a
local shareholder could also be small positive in terms of the
company's relationship with both the local authorities and the
business community.
The company's foreign currency rating 'BB' is rated above the
country ceiling rating of 'B+' due to the combination of the
company's significant exports, low leverage and ownership by
financially strong Repsol YPF. While the rating is above the
country ceiling, the company's foreign currency rating remains
linked to the Republic of Argentina's credit profile as
government interference and political risk continue to be high.
The ratings could be pressured in the event of significant
increase in debt levels without associated increases in EBITDA
over the near term, and a loss of control or implicit support
from Repsol YPF.
Following this initial transaction Repsol YPF (rated BBB+ by
Fitch) will reduce its participation in YPF (currently 99%)
while maintaining a controlling stake. Initially Repsol will
sell 14.9% to Petersen Energia and the Petersen Group will have
an option to acquire an additional 10.1% through another related
company within the next four years. Additionally Petersen
Energia and Repsol have agreed that YPF will make an IPO for
approximately 20% of its equity, after which Repsol's stake in
YPF would be reduced to approximately 51%. Although Repsol will
maintain a controlling stake, YPF debt is non-recourse to Repsol
YPF. Fitch will monitor the ratings as the proposed transaction
is formalized, the new business plan is announced, and its
impact on the operations and financial strategy of YPF is
evaluated.
Headquartered in Buenos Aires, Argentina, YPF S.A. is an
integrated oil and gas company engaged in the exploration,
development and production of oil and gas, natural gas and
electricity-generation activities (upstream), the refining,
marketing, transportation and distribution of oil and a range of
petroleum products, petroleum derivatives, petrochemicals and
liquid petroleum gas (downstream). The company is a subsidiary
of Repsol YPF, S.A., a Spanish company engaged in oil
exploration and refining, which holds 99.04% of its shares. Its
international operations are conducted through its subsidiaries,
YPF International S.A. and YPF Holdings Inc.
=============
B A H A M A S
=============
HARRAH'S ENTERTAINMENT: Delists Common Stock After Merger Closes
----------------------------------------------------------------
Harrah's Entertainment Inc. notified the New York Stock
Exchange, the Philadelphia Stock Exchange and the Chicago Stock
Exchange of its intent to delist its common stock, par value
US$0.10 per share, from the Exchanges immediately following the
consummation of the transactions contemplated by the agreement
and plan of merger dated as of Dec. 19, 2006, by and among
Harrah's Entertainment, Hamlet Holdings LLC and Hamlet Merger
Inc.
At the effective time of the merger, each issued and outstanding
share of Harrah's common stock (other than shares of Harrah's
common stock owned by Hamlet Holdings LLC, Hamlet Merger Inc. or
any subsidiary of Hamlet Holdings LLC or Harrah's or held in the
treasury of Harrah's) shall be canceled and converted into the
right to receive US$90.00 in cash, without interest.
As a result of the merger, Harrah's will cease to be a publicly-
traded company. Subject to customary closing conditions,
Harrah's expects to close the transaction on Jan. 28, 2008.
Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc.
(NYSE: HET) -- http://www.harrahs.com/-- has grown through
development of new properties, expansions and acquisitions, and
now owns or manages casino resorts on four continents and hosts
over 100 million visitors per year. The company's properties
operate under the Harrah's, Caesars and Horseshoe brand names;
Harrah's also owns the London Clubs International family of
casinos and the World Series of Poker. Harrah's also owns the
London Clubs International family of casinos. In January, it
signed a joint venture agreement with Baha Mar Resorts Ltd. to
operate a resort in Bahamas.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Moody's Investor Service has assigned a B2
Corporate FamilyRating and Speculative Grade Liquidity Rating of
SGL-3 to Harrah's Entertainment, Inc. Moody's also assigned
ratings to the following new debt to be issued by Harrah's
Operating Company, Inc.: senior secured guaranteed bank
revolving credit facility at Ba2, senior secured guaranteed term
loans at Ba2, and senior unsecured guaranteed notes at B3.
HARRAH'S ENTERTAINMENT: Buyout Cues Fitch To Withdraw Ratings
-------------------------------------------------------------
Fitch Ratings has withdrawn these ratings for Harrah's
Entertainment, Inc. and Harrah's Operating Co.:
-- HET Issuer Default Rating 'BB+';
-- HOC Issuer Default Rating 'BB+';
-- Senior Unsecured bank credit facilities 'BB+';
-- Senior Unsecured notes 'BB+'
-- Senior Unsecured subordinated notes 'BB-'
Based on publicly available information regarding the proforma
capital structure for the leveraged buyout by Apollo Management
LP and Texas Pacific Group, Fitch believes that HET's IDR would
be rated no higher than 'B' and the existing US$4.6 billion of
unsecured debt that is being rolled over in the transaction
would be rated no higher than 'CCC+'. However, Fitch is
withdrawing its ratings because it believes that disclosure of
financial information is inadequate for Fitch to maintain
ratings or rate the LBO transaction, which is valued at roughly
US$31.2 billion including sponsor equity and rollover debt.
Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc.
(NYSE: HET) -- http://www.harrahs.com/-- has grown through
development of new properties, expansions and acquisitions, and
now owns or manages casino resorts on four continents and hosts
over 100 million visitors per year. The company's properties
operate under the Harrah's, Caesars and Horseshoe brand names;
Harrah's also owns the London Clubs International family of
casinos and the World Series of Poker. Harrah's also owns the
London Clubs International family of casinos. In January, it
signed a joint venture agreement with Baha Mar Resorts Ltd. to
operate a resort in Bahamas.
TEEKAY CORP: Earns US$17 Million in 2007 Third Quarter
------------------------------------------------------
Teekay Corporation reported net income of US$17.0 million on
revenues of US$606.8 million for the quarter ended
Sept. 30, 2007, compared to net income of US$79.8 million on
revenues of US$477.7 million for the quarter ended
Sept. 30, 2006.
Net revenues for the third quarter of 2007 increased to
US$462.3 million from US$344.3 million for the same period in
2006, and income from vessel operations decreased to US$80.6
million from US$105.0 million. Net revenues, defined as
revenues less voyage expenses, is a non-GAAP financial measure
used by certain investors to measure the financial performance
of shipping companies.
Net income for the nine months ended Sept. 30, 2007 was
US$171.8 million, US$201.9 million for the same period last
year. Net revenues for the nine months ended Sept. 30, 2007,
increased to US$1.4 billion from US$1.0 billion for the same
period in 2006, and income from vessel operations increased to
US$323.7 million from US$316.7 million.
Share Repurchase Program
Since Aug. 1, 2007, the company has repurchased 978,400 shares
of its common stock at an average price of US$54.80 per share,
resulting in US$44.3 million remaining under the existing share
repurchase authorization. As at Sept. 30, 2007, the company had
73.3 million common shares issued and outstanding.
OMI Acquisition Update
On Aug. 1, 2007, most of the assets from the joint acquisition
of OMI Corporation were divided equally between Teekay and A/S
Dampskibsselskabet (Torm). Through this acquisition, Teekay
acquired seven Suezmax tankers, four Medium Range product
tankers and four Handysize product tankers. Teekay also assumed
OMI's in-charters of a further six Suezmax tankers and OMI's
third party asset management business, the Gemini pool. Teekay
and Torm will continue to hold two Medium Range product tankers
jointly in OMI, as well as two Handysize product tanker
newbuildings scheduled to deliver in 2009. The parties intend
to divide these remaining assets equally in due course.
Teekay has consolidated the results of the vessels it acquired
from OMI effective Aug. 1, 2007. For the period of July 1 to
July 31, 2007, OMI's results were accounted for using the equity
method of accounting.
At Sept. 30, 2007, the company had total liquidity of US$1.9
billion (excluding debt related to capital commitments),
comprised of US$297 million in cash and cash equivalents and
US$1.6 billion in undrawn credit facilities.
Balance Sheet
At Sept. 30, 2007, the company's consolidated balance sheet
showed US$9.63 billion in total assets, US$6.43 billion in total
liabilities, US$513.6 million in minority interest, and US$2.68
billion in total stockholders' equity.
About Teekay Corp.
Headquartered in Nassau, Bahamas, Teekay Corporation (NYSE: TK)
-- http://www.teekay.com/-- transports more than 10 percent of
the world's seaborne oil, has built a significant presence in
the liquefied natural gas shipping sector through its publicly-
listed subsidiary, Teekay LNG Partners L.P. (NYSE: TGP), and is
further growing its operations in the offshore production,
storage and transportation sector through its publicly-listed
subsidiaries, Teekay Offshore Partners L.P. (NYSE: TOO) and
Teekay Petrojarl ASA (OSE: TPO). With a fleet of over 185
vessels, offices in 17 countries and 6,300 seagoing and shore-
based employees, Teekay provides a comprehensive set of marine
services to the world's leading oil and gas companies, helping
them seamlessly link their upstream energy production to their
downstream processing operations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Moody's Investors Service affirmed its debt
ratings of Teekay Corporation -- Corporate Family of Ba2, senior
unsecured of Ba3 and speculative grade liquidity rating of
SGL-2. Moody's changed the rating outlook to stable from
negative.
=============
B E R M U D A
=============
CONCORD RE: Bank Loan Repayment Prompts S&P's Rating Withdrawal
---------------------------------------------------------------
Standard & Poor's Ratings Services has withdrawn its 'BB+'
rating on Concord Re Ltd.'s US$365 million bank loan. The
company repaid all outstanding amounts and terminated the
facility.
Concord Re is Ltd., is Class 3 Bermuda reinsurance company that
is commonly referred to as a "sidecar." In August 2006, it was
capitalized with US$365 million of senior secured term loans and
US$365 million of common equity and subsequently entered into a
collateralized quota share reinsurance treaty with Lexington
Insurance Company, a subsidiary of American International Group,
Inc., a property-casualty company of New York-based American
International Group, Inc. (NYSE: AIG).
SEA CONTAINERS: Earns US$10,644,110 in Month Ended November 30
--------------------------------------------------------------
Sea Containers, Ltd.
Unaudited Balance Sheet
As of November 30, 2007
Assets
Current Assets
Cash and cash equivalents US$46,979,067
Trade receivables, less allowances
for doubtful accounts 440,764
Due from related parties 678,434
Prepaid expenses and other current assets 1,221,998
------------
Total current assets 49,320,263
Fixed assets, net -
Long-term equipment sales receivable, net -
Investments in group companies 143,546,856
Intercompany receivables -
Investment in equity ownership interests 220,612,336
Other assets 3,669,219
------------
Total assets US$417,148,674
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable US$13,841,321
Accrued expenses 62,601,847
Current portion of long-term debt 173,097,845
Current portion of senior notes 385,407,893
------------
Total current liabilities 634,948,906
Total shareholders' equity (217,800,232)
------------
Total liabilities and shareholders' equity US$417,148,674
Sea Containers, Ltd.
Unaudited Statement of Operations
For the Month Ended November 30, 2007
Revenue US$1,214,000
Costs and expenses:
Operating costs -
Selling, general and admin. expenses (244,792)
Professional fees (4,059,681)
Credits to provide against
intercompany accounts 20,917,753
Impairment of investment in subsidy Co. -
Forgiveness of intercompany debt -
Depreciation and amortization -
------------
Total costs and expenses 16,613,280
------------
Gain or (Loss) on sale of assets (2,025,436)
------------
Operating income (loss) 15,801,844
Other income (expense)
Interest income 588,042
Foreign exchange gains or (losses) (8,225)
Interest expense, net (4,796,551)
------------
Income (Loss) before taxes 11,585,110
Income tax expense (941,000)
------------
Net (Loss) US$10,644,110
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. 34; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
SEA CONTAINERS: SeaCon Services Files November 2007 Report
----------------------------------------------------------
Sea Containers Services
Unaudited Balance Sheet
As of November 30, 2007
Assets
Current Assets
Cash and cash equivalents US$23,113
Trade receivables 4,044
Due from related parties 1,770,249
Prepaid expenses and other current assets 3,074,412
------------
Total current assets 4,871,818
Fixed assets, net 1,512,940
Investments 2,771,549
Intercompany receivables 52,644,890
Other assets -
------------
Total assets US$61,801,197
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable US$1,472,031
Accrued expenses 945,530
Current portion of long-term debt 1,574,542
------------
Total current liabilities 3,992,103
Total shareholders' equity 57,809,094
------------
Total liabilities and shareholders' equity US$61,801,197
Sea Containers Services
Unaudited Statement of Operations
For the Month Ended November 30, 2007
Revenue US$1,043,485
Costs and expenses:
Operating costs -
Selling, general and admin. expenses (726,556)
Professional Fees (127,228)
Other charges -
Depreciation and amortization (95,036)
------------
Total costs and expenses (948,820)
------------
Gains on sale of assets 8,034
------------
Operating income (loss) 102,699
Other income (expense)
Interest income -
Foreign exchange gains (losses) -
Interest expense, net (11,429)
------------
Income (Loss) before taxes 91,270
Income tax credit -
------------
Net Income US$91,270
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. 34; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
===========
B R A Z I L
===========
AMERICAN AIRLINES: Names Robert Friedman as Marketing President
---------------------------------------------------------------
American Airlines has named Robert J. Friedman President of
AAdvantage(R) Marketing Programs. Mr. Friedman, currently the
airline's Managing Director of Reservations, fills a vacancy
created by Kurt Stache, who recently was named Vice President
and General Sales Manager.
"Rob's business knowledge, leadership abilities and customer
insights will be of great value as he assumes his new role,"
said Senior Vice President of Customer Relationship Marketing &
Reservations, Bella Goren. "The AAdvantage program, established
more than 25 years ago, is the world's leading program of its
kind. With 60 million members, it is an enormously important
part of our business and we are excited that an individual of
this caliber will be leading the AAdvantage team."
Mr. Friedman joined the company in 1990 and held positions of
increasing responsibility within the airlines' revenue
management department. He later moved into the interactive
marketing organization, where he played a key role in enhancing
and expanding the reach of AA.com. He has significant customer
relationship management expertise, and most recently led the
airline's largest reservations office.
Mr. Friedman holds a Bachelor's of Science degree in Finance
from the University of Nebraska-Omaha.
About American Airlines
Based in Fort Worth, Texas, American Airlines Inc., a wholly
owned subsidiary of AMR Corp., operates the largest scheduled
passenger airline in the world with service throughout North
America, the Caribbean, Latin America, Europe and Asia.
American Airlines flies to Belgium, Brazil, Japan, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Fitch Ratings affirmed the debt ratings of AMR
Corp. and its principal operating subsidiary American Airlines,
Inc., as:
AMR Corp.
-- Issuer Default Rating at 'B-';
-- Senior unsecured debt at 'CCC'/RR6';
American Airlines
-- Issuer Default Rating at 'B-';
-- Secured bank credit facility at 'BB-/RR1'.
Fitch says the rating outlook for both AMR Corp. and American
has been revised to positive from stable.
FIDC INDUSTRIA: Moody's Assigns (P)Ba1 Global Currency Rating
-------------------------------------------------------------
Moody's America Latina has assigned provisional ratings of
(P)Aa2.br (Brazilian National Scale) and (P)Ba1 (Global Scale,
Local Currency) to the Senior Shares, and (P)Ba2.br (Brazilian
National Scale) and (P)B3 (Global Scale, Local Currency) to the
Subordinated Mezzanine Shares, to be issued by Chemical III --
FIDC Industria Petroquimica, a securitized transaction backed by
a pool of trade receivables originated by three companies of the
Braskem Group (Braskem, Companhia Petroquimica do Sul -- Copesul
and Ipiranga Petroquimica S.A. -- IPQ).
The ratings are based on these factors, among others:
-- Overcollateralization ratio ranging from a minimum of 110%
to a maximum of 115% for the benefit of the Senior Shares
outstanding, which mitigates expected receivable losses,
the effects of dilution and potential interest rate
mismatch, and transaction costs;
-- Overcollateralization ratio ranging from a minimum of
102.041% to a maximum of 102.881% for the benefit of the
Subordinated Mezzanine Shares outstanding, which mitigates
expected receivable losses, the effects of dilution and
potential interest rate mismatch, and transaction costs;
-- The eligibility parameters of the trade receivables to be
acquired by the issuer, which include concentration limits
by client, delinquency by client, and maximum term of the
trade receivables;
-- The ability of Banco Bradesco S.A. (A1 Long-term Bank
Deposit Rating in the Global Local Currency Scale & Aaa.br
in the Brazilian National Scale) to act as master and
back-up servicer for the transaction; and
-- The legal structure of the transaction, including the
bankruptcy remoteness of the issuer.
The originator is a group of operating companies controlled by
the Braskem Group, all of which are producers of petrochemical
products.
The transfer of receivables from the originators to the issuer
is structured as a true sale and a definitive assignment of the
contracts as set forth in the assignment of transferred credits
under the Brazilian civil code.
The Chemical III -- FIDC will have a tree-year tenor, with
Senior Shares being amortized in 6 monthly payments after a 30-
month grace period, and Subordinated Mezzanine Shares being
amortized in a balloon payment at maturity. Interest on both
Senior Shares and Subordinated Mezzanine Shares will be paid in
five semiannual installments during the initial period of 30
months. During the final period of 6 months interest payments
will be made in six monthly and consecutive installments.
Proceeds from the issuance of Fund shares will be used to make
revolving purchases of trade receivables originated by (i)
Braskem S.A. (Aa2.br Brazilian National Scale & Ba1 Global Local
Currency Scale), (ii) Companhia Petroquimica do Sul - Copesul,
and (iii) Ipiranga Petroquimica S.A. -- IPQ.
The complete rating action is:
FIDC Senior Shares:
-- (P)Aa2.br (National Scale) & (P)Ba1 (Global Scale, Local
Currency).
FIDC Subordinated Mezzanine Shares:
-- (P)Ba2.br (National Scale) & (P)B3 (Global Scale, Local
Currency).
DELPHI CORP: Gets US$44.2MM Bearing Biz Bid from ND Acquisition
---------------------------------------------------------------
Delphi Automotive Systems LLC and Delphi Technologies, Inc.,
debtor-subsidiaries of Delphi Corp., intend to sell their global
bearings business to ND Acquisition Corp., or to another party
submitting a higher and better offer for the business.
ND Acquisition, a wholly owned subsidiary of private equity
investment firm Resilience Capital Partners LLC, has agreed to
submit a stalking horse bid of US$44,200,000, subject to
adjustments, for the Bearings Business.
The Bearings Business produces both wheel bearings and roller
clutch product lines. It is the leading producer of Gen III
wheel bearings in North America and the primary North American
supplier of those parts to General Motors. The Bearings
Business occupies a 1.3-million square foot plant set on 133
acres in Sandusky, Ohio.
The Debtors have invested more than US$140,000,000 in new
tooling and refurbishment for older equipment and new state-of-
the-art machinery and equipment since 2000. The Bearings
Business employs approximately 1,000 people, including
approximately 775 Hourly Employees. The hourly workforce is
represented by the International Union, United Automobile,
Aerospace and Agricultural Implement Workers of America.
Marketing Efforts for Non-Core Businesses
As previously reported, to achieve the necessary cost savings
and operational effectiveness envisioned in its transformation
plan, Delphi is streamlining its product portfolio to capitalize
on its world-class technology and market strengths and make the
necessary manufacturing realignment consistent with its new
focus. As part of the company's transformation plan, the
company identified the Bearings Business as a non-core business
subject to disposition.
The Debtors believe that as a standalone business, the Bearings
Business could become more profitable and competitive, and thus,
have determined that the value of the Bearings Business would be
maximized through its divestiture, relates John Wm. Butler, Jr.,
Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago,
Illinois.
The Debtors, according to Mr. Butler, have actively marketed the
Bearings Business since February 2007. After evaluating
proposals submitted by potential buyers, the Debtors concluded
that ND Acquisition offered the most advantageous terms and the
greatest economic benefit.
Pursuant to a Sale and Purchase Agreement, entered into on
Jan. 15, 2008, the Debtors have agreed to sell the Bearings
Business to ND Acquisition for US$44,200,000, subject to certain
adjustments, and subject to higher or otherwise better offers.
Bidding Procedures
The Debtors will accept and consider competing bids for the
Bearings Business. The proposed Bidding Procedures provide, in
relevant part:
(a) Participation Requirements: To ensure that only bidders
with financial ability and a serious interest in the
purchase of the Acquired Assets participate in the
Bidding Process, the Bidding Procedures provide for
certain requirements for a potential bidder to become a
"Qualified Bidder", including the submission of certain
financial assurances.
(b) Due Diligence: All Qualified Bidders would be afforded an
opportunity to participate in the diligence process.
(c) Bid Deadline: All bids would have to be received not
later than 11:00 a.m. prevailing Eastern time, by
Feb. 11, 2008. The Debtors would provide the UAW with
notice of all Qualified Bidders and their contact
information.
(d) Bid Requirements: All bids would be required to include
certain documents, including a good-faith deposit of
US$750,000.
(e) Qualified Bids: To be deemed a "Qualified Bid," a bid
would be required to be received by the Bid Deadline and,
among other things, (i) be on terms and conditions that
are substantially similar to, and are not materially more
burdensome or conditional to the Debtors than, those
contained in the Agreement, (ii) have a value of the
Purchase Price plus the amount of the US$1,500,000 Break-
Up Fee and the Expense Reimbursement, plus US$500,000 in
the case of an initial Qualified Bid, plus US$250,000 in
the case of any subsequent Qualified Bids over the
immediately preceding highest Qualified Bid.
(f) Conduct Of Auction: If the Debtors receive at least one
Qualified Bid in addition to that of ND Acquisition, they
would conduct an auction of the Acquired Assets at 10:00
a.m. (prevailing Eastern time) on Feb. 13, 2008, or at
a later date.
(g) Selection Of Successful Bid: After the conclusion of the
Auction, the Debtors, in consultation with their
advisors, would review each Qualified Bid and identify
the highest or otherwise best offer for the Acquired
Assets and the bidder making the bid. The Debtors would
sell the Acquired Assets for the highest or otherwise
best bid to the Successful Bidder upon the approval of
the Court after the sale hearing.
(h) Sale Hearing: The Debtors request that the hearing to
consider the sale to ND Acquisition, or the winning
bidder, be scheduled for Feb. 21, 2008, at 10:00 a.m.,
prevailing Eastern time. If the highest bidder fails to
consummate the sale for specified reasons, then the
second highest bid would be deemed to be the successful
bid.
About Delphi Corp.
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)
HUGHES NETWORK: Provides Broadband Satellite Services in Brazil
---------------------------------------------------------------
Hughes Network Systems, LLC has been selected by Rede Smart, a
Martins Group company, to provide HughesNet(R) broadband
satellite managed network services to Rede Smart's 930 grocery
stores throughout Brazil.
Rede Smart management selected Hughes Network over other telecom
operators in Brazil after a tender process and thorough
assessment of all proposed solutions.
"We selected Hughes because they put together three fundamental
elements for us. It is a renowned company using recognized,
reliable technology; it offers national coverage, as the
HughesNet service is available anywhere in the country; and it
is a very cost-effective solution that our member stores can
afford," said Rede Smart managing director, Luiz Henrique
Abrantes Escobar.
The first phase of the project will connect 300 stores via the
nationwide Hughes Network satellite service, enabling rapid
processing of online debit and credit card transactions. A key
benefit of fast credit card processing is reduced queuing time
at the cashiers, a benefit small stores will now enjoy that
previously was available only to larger retailers in Brazil.
"The technology solution being implemented at the Rede Smart
stores will benefit all the members -- it is very affordable
even for small member retailers and allows the integration of
all member stores in the chain," added Mr. Escobar.
In the second phase of the project, the remaining stores will be
connected through HughesNet and additional value-added
applications will be supported, including distance learning for
store employees, live video distribution throughout the entire
network, and back-office systems.
Mr. Escobar said that Rede Smart has invested heavily in
logistics technology and infrastructure to enable small
retailers to be competitive. Prior to this satellite project,
each store was responsible for fulfilling its communications
needs on its own and dial-up, point-of-sale solutions were used
for debit and credit card transactions. The HughesNet service
will provide a unified telecommunications network for all
stores, with the same technology platform and level of service
throughout Brazil. Rede Smart plans to integrate all 930 stores
during 2008.
Mr. Escobar believes the project offers specific benefits to
small retailers. "The small retailer has difficulty affording
the large investment often necessary to obtain the latest
technology, as standalone store technology can be expensive.
However, being part of a large network gives retailers greater
purchasing power and advanced technology becomes affordable," he
explained.
Hughes Brazil's marketing director, Rafael Guimaraes said, "We
are proud to have been selected by Rede Smart, extending Hughes
leadership in providing broadband satellite services in Brazil
to the retail industry. The services to be implemented will add
significant value to all the Rede Smart retailers and to their
customers."
About Martins Group
What began in 1953 as a small grocery store is recognized as the
largest wholesale distributor in Latin America. With
diversified operations, the Martins Group sells consumer goods
ranging from food to electro-electronics to civil construction,
and veterinary and pharmaceutical products, resulting in annual
revenues of over US$1.1 billion.
Rede Smart
Rede Smart is the largest affiliation grocery store chain in
Brazil. The Martins Group developed this concept as an
evolution of "loyalty programs." Based on a membership concept,
Rede Smart creates a standard brand for member stores. The
stores are identified as belonging to the chain, but are
independently owned and managed.
The services made available to Rede Smart members include
improved negotiation with suppliers for the entire group,
standardization of the technology infrastructure, improvement in
the store's layout, training of staff, and support of commercial
operation management. Rede Smart also provides a help desk that
is available to all member stores to answer questions and meet
daily demands.
About Hughes Network Systems
Headquartered in Germantown, Maryland, Hughes Network Systems
LLC (NASDAQ:HUGH) -- http://www.hughes.com/-- a wholly owned
subsidiary of Hughes Communications Inc., provides broadband
satellite networks and services for large enterprises,
governments, small businesses, and consumers. Hughes offers
complete turnkey solutions, including program management,
installation, training, maintenance and support-for professional
and rapid deployment anywhere, worldwide. The company owns and
operates a global base of HughesNet shared hub services
throughout the United States, Brazil, China, Europe, and India.
In Europe, Hughes maintains operations facilities and/or sales
offices in Germany, U.K., Italy, Czech Republic, and Russia.
* * *
Moody's Investors Service assigned a B1 rating to Hughes Network
Systems LLC's proposed US$115 million senior unsecured term
loan, due 2014.
In addition, the ratings agency also affirmed the B1 corporate
family rating, the B1 rating on the existing US$450 million
senior notes due 2014 and the Ba1 rating on the US$50 million
senior secured revolving credit facility. The proceeds of the
new term loan will be used primarily to fund capital
expenditures and for general corporate purposes.
JAPAN AIRLINES: Weighs Business Impact of Boeing Delivery Delay
---------------------------------------------------------------
The Wall Street Journal reports that Japan Airlines
International Company is weighing the potential impact that
Boeing Co.'s delivery delay would bring to its business.
According to Japan Times, Japan Airlines and rival All Nippon
Airways Co. are scheduled to be the first recipients of the new
Boeing 787 Dreamliner. Boeing, the report says, won't start
delivering the B787 until early 2009 after suppliers failed to
complete production work on time.
Japan Airlines spokesman Atsushi Abe told Japan Times that the
carrier may seek compensation from the U.S. plane maker after
the second delay in the aircraft's delivery.
WSJ notes that Japan Airlines, which has 35 orders for the B787,
with an option to buy 20 additional planes, said it is still
looking into the delivery schedule with Boeing.
ANA, on the other hand, will examine the effect the delay will
have on its expansion plans before making a decision, the Times
cites ANA spokesman Rob Henderson as saying.
WSJ points out that Boeing's latest delay, which is by about
three months, comes as airlines around the world step up efforts
to modernize their fleets to boost fuel and operating
efficiencies as they deal with high fuel prices. This, WSJ
says, has put pressure on aircraft makers to come up with
advanced models that combine the best in engine performance with
environmentally friendly technology.
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.
PARANA BANCO: 2007 Adjusted Net Income Reaches BRL113.5 Million
---------------------------------------------------------------
Parana Banco has announced its results for the fourth quarter of
2007. Adjusted Net Income reached BRL113.5 million in 2007,
excluding IPO expenses and including deferred commissions booked
directly under shareholders' equity. This result is 117.7%
higher compared to 2006. In the fourth quarter, net income was
BRL36.1 million, 169% higher than in the same quarter of 2006.
Total loan portfolio on Dec. 31, 2007, was BRL1.2 billion, 88.1%
up on the BRL623.2 million recorded at the close of 2006. At
the end of 2007, Parana Banco had 715 agreements for payroll-
deduction loans.
Origination of total loan operations reached BRL1.01 billion in
2007. Origination of payroll-deduction loans came to BRL873.7
million, 40% up on the BRL624.9 million reported in 2006. The
Bank also acquired credits totaling BRL76.4 million from other
institutions throughout the year.
Franchises
Created in march 2007, the Franchise Channel achieved a
consolidated status as one of the main distribution channels of
Parana Banco -- in addition to the traditional broker channel
-- and reached the mark of 60 units in operation at the end of
2007. The channel was already responsible for 14% of Payroll
Loan origination in the fourth quarter. The goal for 2008 is to
reach 210 units in operation.
Insurance Company
On Jan. 15, 2008, the incorporation of 100% of J. Malucelli
Seguradora by Parana Banco was concluded, as described in the
IPO prospectus and disclosed to the market on Jan. 7, 2008.
J. Malucelli Seguradora is the absolute leader in the Surety
Bond segment in Brazil with 50% market share, according to SUSEP
(Brazil's private insurance overseer).
About Parana Banco
Parana Banco -- http://www.paranabanco.com.br/ir-- 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.
PARANA BANCO: Gives 4.57 Mil. Non-Voting Shares To Advent Int'l
---------------------------------------------------------------
Parana Banco told Business News Americas that its shareholders
agreed to give US private equity firm Advent International 4.57
million non-voting shares as the second and final stage in
purchasing back 100% of insurer J Malucelli.
As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2008, Parana Banco completed the acquisition of 100% of
insurance division J Malucelli as laid out in its initial public
offering prospectus in 2007. 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.
Filings with securities regulator Comissao de Valores
Mobiliarios say that Advent International now owns 6.60% of
Parana Banco after the share swap in exchange for insurer J
Malucelli.
According to BNamericas, the share swap increases Parana Banco's
capital by BRL64.0 million to BRL764 million.
Parana Banco transferred some 7.33 million preferred shares to
Advent International in October 2007 at the first stage in
purchasing. Advent now owns 14.5% of Parana Banco's preferred
shares, BNamericas states.
About Advent International
Buyout firm Advent International invests in later-stage
companies in a variety of industries in North America and
Western Europe. Target firms use the company's infusions of
cash (up to US$500 million) for international expansion,
restructuring, or to fuel growth. Advent International finances
companies in developing markets such as Central Europe, Brazil,
Mexico, and Argentina to the tune of US$20 million to US$60
million. The company also invests venture capital in companies
in the health care and technology fields. Advent International
has offices in more than a dozen countries.
About Parana Banco
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.
PROPEX INC: Case Summary & 30 Largest Unsecured Creditors
---------------------------------------------------------
Lead Debtor: Propex, Inc.
6025 Lee Highway, Suite 425
Chattanooga, TN 37421
aka Propex Fabrics, Inc.
aka Propex Geosolutions Corporation
aka SI Geosolutions Exchange, L.L.C.
aka SI Concrete Exchange, L.L.C.
aka SI Concrete Holdings, L.L.C.
Bankruptcy Case No.: 08-10249
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Propex Holdings, Inc. 08-10250
Propex Concrete Systems Corp. 08-10252
Propex Fabrics International Holdings I, 08-10253
Inc.
Propex Fabrics International Holdings II, 08-10254
Inc.
Type of Business: The Debtor produces geosynthetic, concrete,
furnishing and industrial fabrics and fiber.
It creator the following brands: Pyramat,
Actionbac, Fibermesh, Duon and CURV. See
http://www.propexinc.com/
Chapter 11 Petition Date: January 18, 2008
Court: Eastern District of Tennessee (Chattanooga)
Judge: John C. Cook
Debtor's Counsel: Edward L. Ripley, Esq.
Henry J. Kaim, Esq.
Mark W. Wege, Esq.
King & Spalding
1100 Louisiana, Suite 4000
Houston, TX 77002
Tel: (713) 751-3200
-- and --
Shelley D. Rucker, Esq.
Miller & Martin, L.L.P.
Volunteer Building, Suite 1000
832 Georgia Avenue
Chattanooga, TN 37402-2289
Tel: (423) 756-6600
Consolidated Financial Condition as September 30, 2007:
Total Assets: US$585,700,000
Total Debts: US$527,400,000
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
B.P. Amoco Chemical Holding note US$31,258,333
Co.
Attention: Mike Kapelinski
4010 Winfield Road
Warrenville, IL 60666
Tel: (630) 821-3130
S.S.B.&T. Co. bond holder US$30,294,000
Attention: Paul Desharnais
1776 Heritage Drive
North Quincy, MA 02171
Tel: (617) 985-2880
Fax: (617) 537-6608
Bear Stearn bond holder US$23,916,000
Attention: Vincent Marzella
One Metrotech Center North,
4th Floor
Brooklyn, NY 11201-3862
Morgan Stanley bond holder US$13,500,000
Attention: Michelle Ford
901 South Bond Street,
6th Floor
Baltimore, MD 21231
Tel: (410) 563-7074
Fax: (410) 534-1420
First Clear bond holder US$10,349,000
Attention: Heidi Richnafsky
10700 Wheat First Drive,
Suite WS 1023
Glen Allen, VA 23060
Tel: (804) 398-4931
Raymond bond holder US$8,072,000
Attention: Mike Dillard
880 Carilion Parkway
P.O. Box 12749
St. Petersberg, FL 33716
Tel: (727) 567-3206
Fax: (727) 567-8837
J.P. Morgan Chase Bank, N.A. bond holder US$7,848,000
Attention: Sanjay Ghuliani
Wing B, Mindspace, Malad West
Floor 6
Mumbai, India 400 064
Tel: (469) 477-2140
Fax: (912) 2665069745
Mitsub U.F.J. bond holder US$7,450,000
Attention: Richard Wenshoski
420 Fifth Avenue, 6th Floor
New York, NY 10018
Tel: (212) 307-3461
Northern Trust bond holder US$5,900,000
Attention: Robert Valentin
801 South Canal Street
Chicago, IL 60607
Tel: (312) 557-8666
Goldman bond holder US$5,870,000
Attention: Gloria
30 Hudson Street
Jersey City, NJ 07302
Tel: (212) 902-1973
Fax: (212) 428-1521
Nat City B bond holder US$5,842,000
Attention: Halle Staskey
4100 West 150th Street
Cleveland, OH 44135
Tel: (216) 257-4546
Fax: (216) 257-5941
Pershing Securities Corp. bond holder US$5,051,000
Attention: Al Hernandez
1 Pershing Plaza
Jersey City, NJ 07399
Tel: (201) 413-3090
Fax: (201) 413-5263
Bank of New York bond holder US$4,786,000
Attention: Mitchel Sobel
One Wall Street, 6th Floor
New York, NY 10286
Tel: (212) 635-6206
Fax: (212) 635-6224
Total Petrochemicals, Inc. trade debt US$3,552,739
Atlanta, GA 31193-2437
Tel: (972) 801-2616
Fax: (713) 483-5291
Charles Schwab bond holder US$3,585,000
Attention: Ronnie Fuiava
211 Main Street
San Francisco, CA 94105
Tel: (631) 254-7618
Fax: (631) 254-7400
Wells Bank, N.A. bond holder US$2,118,000
Attention: Lacey Peterson
733 Marquette Avenue, M.A.C.
N9306-057 5th Floor
Minneapolis, MN 55479
Tel: (612) 316-3447
Fax: (612) 667-1947
Wells, L.L.C. bond holder US$2,073,000
Attention: Margaret Klasen
625 Marquette Avenue,
13th Floor
Minneapolis, MN 55402-2308
Tel: (612) 336-7994
Fax: (612) 336-7814
N.F.S., L.L.C. bond holder US$1,979,000
Attention: Lou Trezza
200 Liberty Street
New York, NY 10281
Tel: (212) 335-5807
Fax: (508) 624-5114
Brown Brothers bond holder US$1,400,000
Attention: Jennifer Payea
525 Washington Boulevard
Jersey City, NJ 07302
Tel: (201) 418-5877
G.S.E. Lining Technology, Inc. trade debt US$1,368,548
19103 Gundle Road
Houston, TX 77073
Tel: (281) 443-8564
Fax: (281) 230-8663
Superior Yarn Technology trade debt US$1,336,178
400 Cross Plains Industrial
Boulevard
Dalton, GA 30719
Tel: (706) 272-7286
Fax: (706) 272-0492
Sterne, A.G. bond holder US$1,316,000
Attention: Maribeth Williams
813 Shades Creek Parkway,
Suite 100-B
Birmingham, AL 35242
Tel: (205) 414-3205
Fax: (205) 414-7237
Wells Fargo bond holder US$1,250,000
Attention: Patrick Giardano
1445 Ross Avenue, 2nd Floor
Dallas, TX 75202
Tel: (214) 740-1573
Fax: (214) 777-4086
Custodial Trustee bond holder US$1,094,000
Attention: Dawn Elke
101 Carnegie Center
Princeton, NJ 08540
Tel: (609) 951-2321
Fax: (609) 951-2327
5th-3rd Bank bond holder US$1,000,000
Attention: Lance Wells
5001 Kingsley Drive
Mail Drop 1MOB2D
Cincinnati, OH 45227
Tel: (513) 358-9798
Fax: (513) 358-8637
Citibank bond holder US$905,000
Attention: Carolyn Trebus
3800 Citibank Center B3-12
Tampa, FL 33610
Tel: (813) 604-1130
Fax: (813) 604-1966
Techmer, P.M., L.L.C. US$789,276
P.O. Box 535064
Atlanta, GA 30353-5064
Tel: (865) 457-6700
Fax: (865) 457-5227
Fibervisions bond holder US$738,655
Department at 40206
Atlanta, GA 31192-0206
Fax: (770) 784-7137
Naue G.M.B.H. & Co. K.G. US$197,226
Gewerbestrasse 2
32339 Espelkamp-Fiestel
Tel: 49 (0) 57 43 / 41-0
Fax: 49 (0) 57 43 / 41-240
Monahan S.F.I., L.L.C. US$163,112
P.O. Box 250
Arcola, IL 61910
PROPEX INC: Files Chapter 11 Protection; To Continue Operations
---------------------------------------------------------------
Propex Inc. said Friday that it has filed for protection under
Chapter 11 of the U.S. Bankruptcy Code in order to right-size
its balance sheet. The company will continue to operate its
facilities and offices in the ordinary course of business while
it restructures. Additionally, Propex has arranged a US$60
million credit facility for which it will be seeking Court
approval. This will provide the company with immediate and
sufficient liquidity to operate its business on an ongoing
basis.
The company also filed for Bankruptcy Court approval of various
First-Day Motions designed to ensure continuation of its
ordinary business operations. Specifically, Propex requested
and expects that the Court will approve the company's new
financing to continue all operations in the normal course,
including maintaining payroll and employee benefits; all
deliveries to customers; and fulfillment of obligations to
critical suppliers. The company anticipates its First-Day
Motions to be approved in the coming days.
"Today's steps are part of an important process to strengthen
Propex," said Joe Dana, President of Propex Inc. "We believe
the financial reorganization will allow us to implement a
restructuring plan that will lower our debt levels and expand
our market leadership in key sectors from a position of
financial strength."
The new financing will provide US$60 million in immediate
liquidity. With this cash infusion, the company can focus on
servicing its customers and improving operations. Upon
completion, the Chapter 11 restructuring is expected to reduce
debt and create additional cash flow that otherwise would be
earmarked for debt service.
"During the past year, our entire industry has been hit hard by
the general economic decline led by the deteriorating housing
market plus the escalating cost of raw materials. I am pleased
we now have a way forward and appreciate the support of our
valued customers, suppliers, lenders and employees," said Mr.
Dana.
The filing impacts Propex's U.S. operations only and does not
impact the company's Latin American and European operations.
The company will provide updates regarding ongoing operations
plans as they become available.
Covenant Default
As reported in the Troubled Company Reporter on Jan.10, 2008,
Propex, at Sept. 30, 2007, said it was not in compliance with
the two leverage ratio covenants under the Second Amendment to a
Credit Agreement dated Jan. 26, 2007. The company is currently
in default under the Credit Agreement and in negotiations with
its lenders in order to resolve the issue of non-compliance. As
of Sept. 30, 2007, the company had US$230.6 million of
borrowings outstanding under the Credit Agreement.
About Propex Inc.
Propex Inc. -- http://www.propexinc.com/-- manufactures primary
and secondary carpet backing. The company also manufactures and
markets woven and non-woven polypropylene fabrics and fibers
used in geosynthetic and a variety of other industrial
applications. The company has manufacturing operations in North
America, Europe and Brazil.
The company disclosed a net loss of US$60.7 million in three
months ended Sept. 30, 2007, compared to a net loss of US$6.5
million in the same period in 2006. At Sept. 30, 2007, the
company's balance sheet showed total assets of US$585.7 million
and total liabilities of US$527.4 million, resulting in a
US$58.3 million stockholders' equity.
* * *
As reported in the Troubled Company Reporter on Jan. 16, 2008,
Moody's Investors Service downgraded its debt ratings of Propex,
Inc.: corporate family and probability of default, each to Caa2
from Caa1, senior secured first lien to B3 from B2 and senior
unsecured to Caa3 from Caa2. Moody's also placed these ratings
on review for further downgrade because of the continuing non-
compliance with the leverage covenants of the senior secured
bank credit facility and the uncertainty of how Propex will
resolve this Event of Default under the Credit Agreement. The
speculative grade liquidity rating is unchanged at SGL-4.
TAM SA: Orders 40 New A320 Aircrafts to be Delivered by 2013
------------------------------------------------------------
TAM Linhas Aereas has firmed up its order for 22 A350 XWBs
models 800 and 900, to be delivered from 2013 onwards. TAM,
Airbus' biggest customer in the southern hemisphere, now has the
largest A350 XWB fleet in this region on order and will be the
first in Latin America to incorporate this aircraft into its
fleet.
TAM also confirmed the acquisition of four A330-200 aircraft
with deliveries from 2010 onwards and of 20 more aircraft from
the A320 family. The A320 family aircraft are in addition to
the firm order signed in 2005 and 2006 for the same models.
According to the price list, the total value
of the 46 aircraft is approximately US$6.9 billion.
With an operating fleet of 109 aircraft, of which 102 are Airbus
aircraft, including 15 A319's, 70 A320's, three A330-200's and
two A340-500's, TAM operates not only the largest Airbus fleet
in Latin America but also maintains the largest number of models
from the European manufacturer in the region. TAM's fleet plan
remains unchanged; it foresees a fleet of 123 aircraft by the
end of this year and 136 aircraft by the end of 2010.
"Airbus aircraft help to build on our excellence standards of
through outstanding passenger comfort. The A350 XWB will
provide state-of-the-art passenger comfort, while assuring
lowest operating costs and low emissions. We add
professionalism and know-how," said TAM President, Captain David
Barioni Neto. "The A350 XWB will allow us to continue the
successful expansion we have already achieved with our A330s and
A320s."
"We are very proud to have TAM, one of the most internationally
renowned airlines, as the launch customer for our new A350XWB
program in South America," said Airbus Chief Operating Officer,
Customers, John Leahy. "This contract is a confirmation of the
trust that TAM puts in our successful partnership. We cannot
value this confidence highly enough, and are certain this repeat
order will also further boost TAM's impressive development. "
The A350 XWB (Xtra Wide-Body) Family is Airbus' response to
widespread market demand for a series of highly efficient
medium-capacity long-range wide-body aircraft. The A350 has the
widest fuselage in its category, offering unprecedented levels
of comfort, the lowest operating costs and lowest seat mile cost
of the aircraft of this market segment. The aircraft is
designed to confront the challenges of high fuel prices, rising
passenger expectations, and environmental concerns.
The A330 has low operating costs, and the largest and most
comfortable passenger's cabin on its category. TAM already
operates 12 A330-200 aircraft in its international long haul
routes. The 88 aircraft from the A320 family in the Company's
fleet are used in Brazilian and other South
America routes.
About TAM SA
TAM SA (Bovespa: TAMM4 and NYSE: TAM) -- http://www.tam.com.br/
-- operates regular flights to 47 destinations throughout
Brazil. It serves 72 different cities in the domestic market
through regional alliances. Additionally, it maintains code-
share agreements with international airline companies that allow
passengers to travel to a large number of destinations
throughout the world. TAM was the first Brazilian airline
company to launch a loyalty program. The program has over 3.3
million subscribers and has awarded more than 3.6 million
tickets.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 27, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based airline
TAM S.A. S&P said the outlook is stable.
TELE NORTE: Anatel Supports Way TV Acquisition
----------------------------------------------
Oi, fka Tele Norte Leste Participacoes, has been granted
approval by Brazilian telecoms regulator Anatel's board for the
acquisition of cable TV provider Way TV, Business News Americas
reports, citing tech magazine Computerworld.
According to the board, the deal has no detection of any unfair
market concentration.
BNamericas relates that Oi will pay US$73 million and offer a
65% premium for Way TV.
Oi was the only bidder in a July 2006 auction in which network
services provider Infovias and Brazilian power company Cemig,
Way TV's current controller, offered the auction to the TV
operator, the same paper states.
Way TV operates in four cities in Minas Gerais state.
About Brasil Telecom
Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA. The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intra-regional long-
distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.
About Telemar Norte
Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America. The
company markets its services under its Telemar brand name. Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.
As reported on April 27, 2007, Standard & Poor's placed on
CreditWatch with negative implications the 'BB+' corporate
credit rating on Tele Norte Leste Participacoes S.A. The
creditwatch resulted from TmarPart's decision to buy out its
holding company's preferred shares.
===========================
C A Y M A N I S L A N D S
===========================
ARBOR I: Proofs of Claim Filing Is Until Jan. 24
------------------------------------------------
Arbor I Ltd.'s creditors are given until Jan. 24, 2008, to prove
their claims to Beverly Bernard and Mitzi D. Smith, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Arbor I's shareholder decided on Dec. 5, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Beverly Bernard
Mitzi D. Smith
P.O. Box 1109
Grand Cayman KY-1102, Cayman Islands
Telephone: 949-7755
Fax: 949-7634
ASIA IG: Proofs of Claim Filing Deadline Is Jan. 24
---------------------------------------------------
Asia IG CDO Limited's creditors are given until Jan. 24, 2008,
to prove their claims to Scott Aitken and Sylvia Lewis, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Asia IG's shareholder decided on Dec. 5, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Scott Aitken
Sylvia Lewis
P.O. Box 1109
Grand Cayman KY-1102, Cayman Islands
Telephone: 949-7755
Fax: 949-7634
BEGONIA LIMITED: Sets Final Shareholders Meeting for Jan. 24
------------------------------------------------------------
Begonia Limited will hold its final shareholders meeting on
Jan. 24, 2008, at:
Cititrust (Cayman) Limited
CIBC Financial Center, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Begonia Limited'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:
Buchanan Limited
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
BLUEPOINT CORP: Proofs of Claim Filing Is Until Jan. 24
-------------------------------------------------------
Bluepoint Corporation Ltd.'s creditors are given until
Jan. 24, 2008, to prove their claims to Wilder Gonzalez Penino,
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.
Bluepoint Corporation's shareholder decided on Dec. 5, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Wilder Gonzalez Penino
c/o P.O. Box 501
Grand Cayman KY1-1106, Cayman Islands
CHIMES FINANCE: Proofs of Claim Filing Deadline Is Jan. 24
----------------------------------------------------------
Chimes Finance Limited's creditors are given until
Jan. 24, 2008, to prove their claims to Cereita Lawrence and
Sylvia Lewis, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Chimes Finance's shareholder decided on Dec. 5, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Cereita Lawrence
Sylvia Lewis
P.O. Box 1109
Grand Cayman KY-1102, Cayman Islands
Telephone: 949-7755
Fax: 949-7634
FLUTE FINANCE: Proofs of Claim Filing Is Until Jan. 24
------------------------------------------------------
Flute Finance Limited's creditors are given until Jan. 24, 2008,
to prove their claims to Cereita Lawrence and Sylvia Lewis, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Flute Finance's shareholder decided on Dec. 5, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Cereita Lawrence
Sylvia Lewis
P.O. Box 1109
Grand Cayman KY-1102, Cayman Islands
Telephone: 949-7755
Fax: 949-7634
IH INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 24
----------------------------------------------------------
IH Investments Ltd.'s creditors are given until Jan. 24, 2008,
to prove their claims to Peter D. Anderson and William Walmsley,
the company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
IH Investments' shareholder decided on Nov. 30, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Peter D. Anderson
William Walmsley
P.O. Box 897
Third Floor, One Capital Place
George Town, Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 7576
Fax: (345) 949 8295
MARNAR FINANCE: Proofs of Claim Filing Is Until Jan. 24
-------------------------------------------------------
Marnar Finance Limited's creditors are given until
Jan. 24, 2008, to prove their claims to Scott Aitken and Sylvia
Lewis, the company's liquidators, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Marnar Finance's shareholder decided on Dec. 5, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Scott Aitken
Sylvia Lewis
P.O. Box 1109
Grand Cayman KY-1102, Cayman Islands
Telephone: 949-7755
Fax: 949-7634
MPJ EQUITY: Sets Final Shareholders Meeting for Jan. 24
-------------------------------------------------------
MPJ Equity Investment Inc. will hold its final shareholders
meeting on Jan. 24, 2008, at:
Maples Finance Limited
Boundary Hall, Cricket Square
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
MPJ Equity'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:
Bobby Toor
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
OAK CAPITAL: Proofs of Claim Filing Deadline Is Jan. 24
-------------------------------------------------------
Oak Capital Ltd.'s creditors are given until Jan. 24, 2008, to
prove their claims to Beverly Bernard and Mitzi D. Smith, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Oak Capital's shareholder decided on Dec. 5, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Beverly Bernard
Mitzi D. Smith
P.O. Box 1109
Grand Cayman KY-1102, Cayman Islands
Telephone: 949-7755
Fax: 949-7634
ORICO ARTEMIS: Proofs of Claim Filing Ends on Jan. 24
-----------------------------------------------------
Orico Artemis Holdings' creditors are given until Jan. 24, 2008,
to prove their claims to Piccadilly Cayman Limited, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Orico Artemis's shareholders agreed on Dec. 10, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Piccadilly Cayman Limited
c/o BNP Paribas Bank & Trust Cayman Limited
P.O. Box 10632 APO, Grand Cayman
Cayman Islands
Telephone: 345 945 9208
Fax: 345 945 9210
Contact for inquiries:
Ellen J. Christian
c/o BNP Paribas Bank & Trust Cayman Limited
3rd Floor Royal Bank House, Shedden Road
George Town, Grand Cayman
Cayman Islands
OTEMACHI EQUITY: Will Hold Final Shareholders Meeting on Jan. 24
----------------------------------------------------------------
Otemachi Equity Investment Inc. will hold its final shareholders
meeting on Jan. 24, 2008, at:
Maples Finance Limited
Boundary Hall, Cricket Square
George Town, Grand Cayman
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Otemachi Equity's shareholders agreed on Dec. 14, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Bobby Toor
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
PALM CAPITAL: Proofs of Claim Filing Is Until Jan. 24
-----------------------------------------------------
Palm Capital Ltd.'s creditors are given until Jan. 24, 2008, to
prove their claims to Beverly Bernard and Mitzi D. Smith, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Palm Capital's shareholder decided on Dec. 5, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Beverly Bernard
Mitzi D. Smith
P.O. Box 1109
Grand Cayman KY-1102, Cayman Islands
Telephone: 949-7755
Fax: 949-7634
PARMALAT SPA: Creditors Convert Warrants for 61,626 Shares
----------------------------------------------------------
Parmalat S.p.A. communicates that, following the allocation of
shares to creditors of the Parmalat Group, the subscribed and
fully paid up share capital has now been increased by 301,768
euros to 1,652,419,845 euros from 1,652,118,077 euros. The
share capital increase is due to the exercise of 61,626 warrants
and to the assignation of 240,142 shares.
[The latest status of the share allotment is]:
* Number 33,811,508 shares representing approximately 2.0%
of the share capital are still in a deposit account c/o
Parmalat S.p.A., of which:
-- 13,476,689 or 0.8% of the share capital, registered in
the name of individually identified commercial
creditors, are still deposited in the intermediary
account of Parmalat S.p.A. centrally managed by Monte
Titoli (compared with 13,481,713 shares as at
November 27, 2007);
-- 20,454,819 or 1.2% of the share capital registered in
the name of the Foundation, called Fondazione
Creditori Parmalat, of which:
(i) 120,000 shares representing the initial share
capital of Parmalat S.p.A. (unchanged);
(ii) 20,334,819 or 1.2% of the share capital that
pertain to currently undisclosed creditors
(compared with 20,585,048 shares as at
November 27, 2007).
About Parmalat S.p.A.
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that
can be stored at room temperature for months. It also has about
40 brand product lines, which include yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.
The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases. On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York. In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted
Parmalat Permanent Injunction.
(Parmalat Bankruptcy News, Issue No. 96; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
PARMALAT SPA: Reaches EUR310,000,000 Settlement Pact with Intesa
----------------------------------------------------------------
Parmalat S.p.A. and Intesa Sanpaolo S.p.A. communicate that
agreement has been reached which settles all reciprocal claims
that led to litigation arising from operations in the period
preceding the insolvency declaration of the Parmalat Group. The
settlement brings all pending revocatory and damages actions and
all reciprocal claims eventually to be filed to an end. Intesa
Sanpaolo Group will pay a total amount of EUR310,000,000.
Furthermore, Parmalat S.p.A. communicates that an agreement has
been reached with Cassa di Risparmio di Parma e Piacenza S.p.A.
which settles all reciprocal claims with the companies under
extraordinary administration procedures and Parmalat on one
hand, and Cariparma on the other hand, with withdrawal of all
pending or possible revocatory and damages actions with payment
by Cariparma of a total amount of EUR83,000,000.
Within the same framework an agreement has been reached for the
settlement of the revocatory actions against Biverbanca S.p.A.,
with withdrawal of all actions and payment of a total amount of
EUR3,000,000.
Similar settlements have been reached between the Intesa
Sanpaolo Group and Cariparma on one side and the Commissioner of
the Extraordinary Administration of the Parmatour Group and of
Parma Associazione Calcio and of the other companies of the
former Parmalat Group still in Extraordinary Administration on
the other side. These agreements establish the withdrawal of
all the pending and potential actions by the Extraordinary
Commissioner and:
* The payment by the Intesa Sanpaolo Group of an amount of
EUR12,500,000 to the Parmatour Group under Extraordinary
Administration and the payment of an amount of
EUR2,500,000 to Parma Associazione Calcio under
Extraordinary Administration and the payment of a total
amount of EUR2,000,000 to the other companies under
Extraordinary Administration;
* The payment by Cariparma of an amount of EUR2,500,000 to
the Parmatour Group under Extraordinary Administration
and the payment of an amount of EUR2,500,000 to Parma
Associazione Calcio under Extraordinary Administration
and the payment of a total amount of EUR2,000,000 to the
other companies under Extraordinary Administration;
Parmalat and Intesa Sanpaolo and the Extraordinary Commissioner
express their satisfaction on the settlement.
About Parmalat S.p.A.
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that
can be stored at room temperature for months. It also has about
40 brand product lines, which include yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.
The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases. On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York. In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted
Parmalat Permanent Injunction.
(Parmalat Bankruptcy News, Issue No. 96; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
RC INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 24
----------------------------------------------------------
RC Investments Ltd.'s creditors are given until Jan. 24, 2008,
to prove their claims to Peter D. Anderson and William Walmsley,
the company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
RC Investments' shareholder decided on Nov. 30, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Peter D. Anderson
William Walmsley
P.O. Box 897
Third Floor, One Capital Place
George Town, Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 7576
Fax: (345) 949 8295
SAKURA LTD: Proofs of Claim Filing Deadline Is Jan. 24
------------------------------------------------------
Sakura Ltd.'s creditors are given until Jan. 24, 2008, to prove
their claims to Beverly Bernard and Mitzi D. Smith, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Sakura Ltd.'s shareholder decided on Dec. 5, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Beverly Bernard
Mitzi D. Smith
P.O. Box 1109
Grand Cayman KY-1102, Cayman Islands
Telephone: 949-7755
Fax: 949-7634
SCHOONER FINANCE: Proofs of Claim Filing Is Until Jan. 24
---------------------------------------------------------
Schooner Finance Limited's creditors are given until
Jan. 24, 2008, to prove their claims to Cereita Lawrence and
Sylvia Lewis, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Schooner Finance's shareholder decided on Dec. 5, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Cereita Lawrence
Sylvia Lewis
P.O. Box 1109
Grand Cayman KY-1102, Cayman Islands
Telephone: 949-7755
Fax: 949-7634
SEQUIOA CAPITAL: Proofs of Claim Filing Is Until Jan. 24
--------------------------------------------------------
Sequioa Capital Ltd.'s creditors are given until Jan. 24, 2008,
to prove their claims to Beverly Bernard and Mitzi D. Smith, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Sequioa Capital's shareholder decided on Dec. 5, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Beverly Bernard
Mitzi D. Smith
P.O. Box 1109
Grand Cayman KY-1102, Cayman Islands
Telephone: 949-7755
Fax: 949-7634
=========
C H I L E
=========
BANCO DE LA NACION: Fitch Cuts Rating to BB(chl)
------------------------------------------------
Fitch Ratings redujo desde 'BB+(chl)' hasta 'BB(chl)' la
clasificacion de largo plazo de la sucursal en Chile de Banco
Nacion Argentina y confirmo en N3 la clasificacion de sus
depositos a menos de un ano. Por su parte, la tendencia de
clasificacion se mantuvo 'Estable'.
La nueva clasificacion de la sucursal refleja el equivalente al
rating de su matriz, recientemente asignado por Fitch y que se
encuentra alineado con la clasificacion de riesgo soberano de la
Republica Argentina, (Local Currency Long Term Issuer Default
Rating de 'B'), la cual serviria como piso de soporte en caso de
que la sucursal presentase dificultades.
El desempeno de la sucursal sigue quedando determinado por
factores estructurales, entre los cuales destacan:
(i) cargo por correccion monetaria del capital -su principal
fuente de fondeo-;
(ii) un balance sobre activado en dolares producto de mantener
al menos 50% de su capital y reservas invertido en dicha
moneda (la volatilidad del tipo de cambio incorpora una
fuente de inestabilidad a sus resultados, debido a su
posicion larga en dolares, no logrando cubrir los costos
operativos indexados en UF);
(iii) escasa inversion comercial y retraso tecnologico
(imposibilidad de entregar una oferta integrada de
servicios transaccionales y competir con otras entidades
de pequeno tamano);
(iv) una alta concentracion de sus ingresos en aquellos
provenientes del spread financiero; (v) deficiente
gestion del balance, limitada por su escala de operacion,
mercado objetivo y las restricciones impuestas por casa
matriz.
Los recursos provenientes del capital financian un 68,5% de su
operacion, en su mayoria invertido en activos de alta liquidez y
de un menor riesgo crediticio, pero ajustado rendimiento. Las
colocaciones, que crecieron un 9,0% real en doce meses
terminados a oct-07 gracias a su estrategia de captura de nuevos
clientes, estan fuertemente concentradas (los principales 10
mayores clientes representan un 86%), el grueso de las mismas
son de corto plazo (menos de un ano) y en entidades financieras
(36,7% de las colocaciones a oct-07). Su pequeno gasto neto
anualizado en provisiones y castigos sobre colocaciones netas de
prestamos interbancarios (0,16% a oct-07) refleja las mejoras en
el perfil crediticio de su cartera que se desarrollan desde
mediados de 2003, representando un 3,92% del margen bruto oct-07
(un 7,47% en dic-04 y 10,81% en dic-05).
Sus niveles de endeudamiento son casi nulos y su principal
fuente de fondeo es el capital que producto de las perdidas
obtenidas entre 2003-2005 estuvo bajo el minimo regulatorio de
UF 800.000, situacion que sera normalizada mediante la inyeccion
de recursos por parte de la matriz por US$$3,700,000 para
cumplir con el requisito legal y mantener una pequena holgura
para su operacion.
La entidad es una sucursal de Banco Nacion Argentina, de
propiedad estatal, el mas importante de dicho pais en activos y
cobertura, orientando sus negocios a todos los segmentos, con
enfasis en agro industria y pymes. Tiene sucursales en Bolivia,
Brasil, Panama, Paraguay, Uruguay, EEUU, Reino Unido y Espana.
Opera en Chile desde 1980 en el financiamiento de capital de
trabajo de pequenas y medianas empresas y de las actividades
ligadas al comercio exterior bilateral. Para sus operaciones
locales cuenta con una oficina y 23 empleados y una base de
colocaciones por US$14.679 millones concentradas en prestamos
interbancarios y contingentes, creditos comerciales de corto
plazo y de comercio exterior, financiadas casi en su integridad
con capital (US$14.953 million), a octubre de 2007.
INVENSYS PLC: Fitch Upgrades Issuer Default Ratings to BB
---------------------------------------------------------
Fitch Ratings has upgraded UK-based Invensys PLC's and Invensys
International Holdings Ltd's Long-term Issuer Default Ratings to
'BB' from 'BB-' and removed them from Rating Watch Positive. A
Stable Outlook is assigned. Fitch has also affirmed the Short-
term IDR at 'B'. Approximately GBP470 million of debt is
affected by today's rating action.
These issue ratings are affected by this action:
Invensys PLC:
-- 9.875% senior notes: upgraded to 'BB' from 'B+'; off
Rating Watch Positive
Invensys International Holdings Ltd:
-- Senior secured rating: upgraded to 'BBB-' from 'BB+'; off
Rating Watch Positive
The upgrade of Invensys's IDR reflects the completion of the
sale of the process equipment and automation solutions business,
APV, to US-based SPX Corporation (rated 'BB+'/Stable) for
GBP250m effective Dec. 31, 2007. The ratings also factor in the
improvement in operating performance and underlying cash flow
generation achieved in Fiscal Year 2007 (ended March 31, 2007)
and H108 (ended Sept. 30, 2007), as well as lower pension and
other legacy liabilities, which have become less of a financial
burden to the group and hence less of a credit constraint on the
ratings. Fitch expects the company to pay down around GBP170
million of outstanding debt -- most likely the 9.875% senior
notes -- with cash proceeds from the APV sale (net of GBP80
million earmarked for pension contributions) during 2008. Fitch
estimates zero net debt on a pro-forma basis, post-APV and Firex
(for US$44 million) sales. Fitch expects the company to
refinance part or all of its outstanding debt during the course
of 2008.
Positive funds from operations and cash flow from operations
have been restored, thanks to operating EBITDAR growth, lower
cash interest payments following the 2006 refinancing and
working capital management. Extensive restructuring to stem the
historical slowdown in growth and decline in profitability,
particularly within the challenging controls business, appears
to be yielding results. The ratings also reflect Invensys's
strengthened capital structure; this improvement has translated
into a more favourable lease-adjusted net debt/EBITDAR ratio of
1.5 at 2007, from 4.4 at 2006.
The Stable Outlook reflects Fitch's expectation that operating
performance and cash flow generation will be stable over the
next 12 to 18 months. Weakness in the US residential market and
the uncertain global economic outlook may offset some of the
restructuring benefits the company expects to achieve. However,
Invensys's stronger financial profile, overall positive margin
and cash flow progression, and the more streamlined business
structure should allay these concerns to some extent.
The upgrade of the issue ratings reflects the substantial de-
leveraging achieved, and hence lower subordination for the
senior noteholders at Invensys plc. This is reinforced by the
expectation that the proceeds from the sale of APV will be
applied to further debt prepayment.
Based in London, United Kingdom, Invensys Plc --
http://www.invensys.com/-- is a global automation, controls and
process solutions Group operating in more than 60 countries
worldwide. The company operates through six units: Controls,
Process Systems, Rail Systems, APV, Wonderware, and Eurotherm.
For the 12 ended March 31, 2006, Invensys had GBP2.5 billion in
total revenues from continuing operations. In Latin America,
the company has operations in Argentina, Brazil, Chile, Mexico
and Venezuela.
QUEBECOR WORLD: Chapter 11 Filing Cues S&P to Cut Rating to D
-------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its ratings on
the remainder of Quebecor World Inc.'s senior unsecured notes to
'D' from 'CC'. The downgrade follows the company's announcement
that its board has unanimously agreed to file for creditor
protection under the Companies' Creditors Arrangement Act in
Canada and under Chapter 11 of the United States Bankruptcy
Code.
On Jan. 16, 2008, S&P's downgraded Quebecor World to 'D' from
'CCC' and lowered the ratings on the company's US$400 million
9.75% senior unsecured notes due 2015 to 'D' from 'CCC-',
following its nonpayment of interest expense on these notes.
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.
===============
C O L O M B I A
===============
BANCOLOMBIA: Says Loan Growth to Decelerate to 17.9% This Year
--------------------------------------------------------------
Bancolombia said in a report that net loan growth in Colombia
would slow down by 17.9% by the end of this year.
Colombia's total lending increased 25.9% to COP108 trillion in
November 2007, from November 2006, Business News Americas
relates, citing figures from financial regulator
Superfinanciera.
Bancolombia told BNamericas that it expected last year to end
with a 24.4% yearly growth rate in lending, while activity would
slow down in all segments.
BNamericas notes that consumer lending "is a more pro-cyclical
portfolio." It absorbs an eventual deceleration in the economy
faster than other segments. Gross growth would drop over 10
percentage points to 21.2% at year-end.
The Colombian central bank implemented in May 2007 measures to
control loan growth in that segment, which was increasing at 40%
plus rates at the time. The bank also wanted to prevent
inflationary pressures.
Bancolombia told BNamericas that corporate lending would "halve"
growth to 12% this year, due to an expected deceleration in
economic activity in the second half of 2008 and higher
comparison base. Meanwhile, mortgage loan growth would decline
15 percentage points to 4.05% by December 2008 due to a higher
comparison base and bigger size of those loans.
Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Moody's Investors Service changed the outlook to
positive from stable on its Ba3 long-term foreign currency
deposit ratings and Ba1 long-term foreign currency subordinated
bond rating for Bancolombia, S.A.
As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Fitch Ratings downgraded and removed from Rating
Watch Negative Bancolombia's long-term and short-term local
currency Issuer Default Ratings and Individual rating:
-- Individual rating to 'C/D' from 'C';
-- Local currency long-term IDR to 'BB+' from 'BBB-'; and
-- Local currency short-term rating to 'B' from 'F3';
In addition, Fitch affirmed these ratings:
-- Foreign currency long-term IDR at 'BB+';
-- Foreign currency short-term rating at 'B'; and
-- Support rating at '3'.
Fitch says the rating outlook is stable.
ECOPETROL: Says Tenax-1 Exploratory Well at 12,177 Feet Deep
------------------------------------------------------------
Colombian state-owned oil firm Ecopetrol said in a statement
that its Tenax-1 exploratory well in the Huila department is
already 12,177 feet deep.
Business News Americas relates that the first drill stem test
produced about 1,920 barrels daily of 36-degree API (American
Petroleum Institute crude grading system) crude oil with no
water shows from the Caballos formation of up to 12,155 feet.
According to Ecopetrol's statement, natural gas was produced at
a rate of 2.2 million cubic feet a day.
Ecopetrol will carry out new tests on Tenax-1 over the next two
months, BNamericas states.
Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government. The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products. Ecopetrol is Latin America's
fourth-largest integrated-oil concern. Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas. Ecopetrol
produced 385,000 barrels a day of oil and gas in 2006 and has
330,000 barrels a day of refining capacity, according to the
company's Web site. In 2005 it produced about 60 percent of
Colombia's daily output.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A.'s foreign
and local currency issuer default ratings at 'BB+' and 'BBB-',
respectively.
===================
C O S T A R I C A
===================
SENSIENT TECH: Declares US$0.18 Per Share Quarterly Dividend
------------------------------------------------------------
Sensient Technologies Corporation's Board of Directors has
declared a regular quarterly cash dividend on its common stock
of US$0.18 per share. The cash dividend will be paid on
March 3, 2008, to shareholders of record on Feb. 8, 2008.
Headquartered in Milwaukee, Wisconsin, Sensient Technologies
Corp. -- http://www.sensient-tech.com/-- manufactures and
markets colors, flavors and fragrances. Sensient also employs
technologies to develop specialty chemicals for inkjet inks,
display imaging systems and other applications. The company's
principal products include flavors, flavor enhancers and
bionutrients; fragrances and aroma chemicals; dehydrated
vegetables and other food ingredients; natural and synthetic
food colors; cosmetic and pharmaceutical additives; inkjet inks,
technical colors, and specialty dyes and pigments, and chemicals
for laser printing and flat screen displays. In Europe,
Sensient maintains operations facilities and/or sales offices in
Belgium, Bosnia, Croatia, Cyprus, Czech Republic, Germany,
United Kingdom, France, Estonia, United Kingdom, Macedonia,
Poland, Romania, Serbia and Montenegro, Turkey, Ukraine, and
Wales. In Latin America, it has operations in Argentina,
Bolivia, Brazil, Colombia, Costa Rica, Chile, Mexico, Peru,
Uruguay and Venezuela.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 23, 2007, Standard & Poor's Ratings Services has revised
its outlook on Milwaukee, Wis.-based Sensient Technologies Corp.
to stable from negative. At the same time, Standard & Poor's
affirmed its 'BB+' corporate credit and senior unsecured debt
ratings on the company. Approximately USUS$508 million of debt
was outstanding as of June 30, 2007.
===========
G U Y A N A
===========
DIGICEL LTD: Reaches More Than Six Million Customers in 2007
------------------------------------------------------------
Digicel Ltd. announced significant year-end growth achievements
in 2007. As the largest GSM operator in the region, Digicel
ended the year with more than six million customers, a total
investment exceeding US$1.9 billion across the region and new
business operations in Suriname, Guyana and El Salvador.
"Digicel's progress in 2007 reinforced our position as the
Caribbean's leading mobile service provider and demonstrated
delivery of sustained growth in our current markets,
strategically expanding operations in new markets and providing
exciting, first-to-market technology innovations to all of our
customers," said Colm Delves, Digicel Group Chief Executive
Officer.
Digicel achieved a number of key milestones in 2007. These
include:
1) Celebrating One-Year Anniversary of Digicel Haiti: Digicel
celebrated its first year of operations in Haiti - gaining
more than 1.8 million Haitian subscribers - and played a
pivotal role in the increase of mobile penetration rates
within this market. When Digicel Haiti launched in May
2006, fixed and mobile penetrations rates were five
percent. In 2007, mobile penetration increased to 35%.
2) Winning Mobile Licenses in New Markets: In December 2007,
Digicel was granted a mobile license to operate a GSM
network in the British Virgin Islands. The British Virgin
Islands will become Digicel's 24th market and the company
has earmarked US$15 million as its initial investment to
build a state-of-the-art network. With a thriving
financial services and tourism industry, the British
Virgin Islands has one of the most prosperous economies in
the Caribbean. In addition, Digicel Central America
Holdings Limited, through its wholly owned subsidiary,
Digicel Honduras S.A. de C.V., won a competitive bid for
a license to operate a GSM mobile network in Honduras.
Significant investment in Honduras is planned to build a
world-class network and operation that is set to stimulate
growth in the mobile market by increasing mobile
penetration within the next five years from approximately
38% to 75%. Honduras has a total population of close to
7.5 million.
4) Expanding the Product Portfolio: Exclusive to Digicel and
called "Coral," the company introduced a sleek, new line
of mobile handsets accessible to consumers across almost
all Digicel markets. The Coral phones reinforced Digicel's
continued efforts to increase mobile penetration in key
markets. Manufactured for Digicel by Vodafone in
collaboration with ZTE, the Coral handsets are among the
least expensive on the market. Digicel also expanded its
products portfolio with new BlackBerry Curve devices and a
new "Digicel Vehicle Tracking" system, a GPS vehicle
tracking device for fleet management companies.
5) Exciting, First-to-Market Technology Innovations: Digicel
is expanding its customer offerings, continuing to roll
out many first-to-market technology innovations such as
its Personal Broadband Service through WiMAX technology.
Pioneering this technology in the Cayman Islands,
Digicel's Personal Broadband Service enables consumers to
access the Internet from anywhere within their coverage
area. Digicel also launched MobileTV in Jamaica, which
allows customers to enjoy all live, local mobile TV
programming.
6) Strategic Partnerships to Bring Greater Value to
Customers: With a new partnership with Vodafone, the
world's largest mobile phone company, Digicel expanded its
capacity to offer its customers a wider range of roaming
services as well as a seamless world-class mobile
experience while traveling abroad on each others'
networks. The companies are working together to jointly
develop innovative products and services, creating cost
benefits, greater value and more solutions for customers.
Digicel also has roaming agreements with 245 partners in
130 countries around the world.
7) Diaspora Services: In 2007, significant inroads were
achieved as the company continued offering services that
allow the Caribbean Diaspora communities living abroad to
send airtime credit and purchase phones for family and
friends in the Caribbean. Digicel's CaribFlex allows the
purchase of airtime credit in the UK, Canada and the US
for prepaid customers in Jamaica, Haiti, Trinidad, Guyana
and OECS markets. Credit is instantly applied to the
prepaid customers account and the beneficiary notified via
text message. To facilitate this service and the sale of
phones for Haiti, Digicel has signed partnership
agreements with leading money transfer companies including
Caribbean Air Mail and UniTransfer.
8) Digicel Pacific Ltd: Significant inroads were made by
Digicel's sister company, Digicel Pacific Ltd in rolling
out a seamless pan Pacific GSM network. Digicel launched
in Papua New Guinea in July 2007, leading to a 0.7% growth
in the nations GDP. The Tonga operator TONFON was
acquired in November while Digicel Samoa continues to
enjoy steady growth. The Governments of Fiji, Vanuatu and
several other countries in the Pacific have committed to
license Digicel Pacific Ltd shortly.
"2007 was a phenomenal year of growth for Digicel", added Mr.
Delves. "As we look ahead to 2008, we are very excited about
further strengthening our presence in current markets,
strategically expanding our business operations in new markets
and continuing to bring new technology innovations and products
to all of our customers."
Subscriber Growth Statistics
Since launching in 2001, Digicel has recorded a compound annual
growth rate of more than 50%.
The company's measurement is based on a highly conservative
approach of asubscriber only being defined as "active" if that
subscriber had a chargeable event in the last 30 days.
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.
=============
J A M A I C A
=============
NATIONAL COM'L: Cash Plus Investors Picket at Bank's Premises
-------------------------------------------------------------
Jamaican informal investment scheme Cash Plus Limited's
investors protested in front of the National Commercial Bank
branch in Half-Way Tree late last week, after the bank rejected
their cheques, The Jamaica Observer reports.
The Observer notes that the Court of Appeal had authorized the
National Commercial to proceed with the closing of 17 Cash Plus
accounts, while it had allowed nine of the investment scheme's
accounts to remain open.
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, the attorneys for Cash Plus sought another
injunction against the National Commercial before the Jamaican
court. The National Commercial's management allegedly
implemented precautionary measures to protect its workers from
angry supporters of alternative investment schemes. The
management instructed the workers not to wear their uniforms to
work. The instruction was reportedly issued on Wednesday when
persons accusing the National Commercial of taking part of a
plot to destroy alternative investment schemes threatened the
bank. Justice Marva McIntosh granted CASH Plus Limited a nine-
day injunction, blocking the National Commercial from closing
the 16 accounts held with the bank. The injunction effectively
prevented the National Commercial from closing Cash Plus'
accounts at its Duke Street and Barry Street unit in Kingston by
Dec. 4. Some of Cash Plus' account with the National Commercial
include:
-- remittance account,
-- foreign currency account,
-- Cash Mart Ltd,
-- Cash Plus Foods Ltd,
-- Atlantic Gas Distributors Ltd,
-- ExMil Security Company Ltd operating and general
accounts, and
-- the Drax Hall Ltd development local and foreign
currency accounts.
Radio Jamaica relates that the investors also gathered outside
Cash Plus' Premier Plaza office, demanding that the company tell
them:
-- how the company would handle the National
Commercial's decision to close its accounts, and
-- how and when they would be paid.
According to Radio Jamaica, attorneys for Cash Plus had failed
to persuade Supreme Court Justice Patrick Brooks to loosen these
conditions attached to the ruling it imposed:
-- that Cash Plus refrain from taking on new clients,
and
-- that Cash Plus won't be able to take any additional
investments from existing customers.
Cash Plus attorneys failed to prove that the conditions imposed
by Justice Brooks would adversely affect the firm's operations,
Radio Jamaica says, citing acting solicitor general Patrick
Foster.
Mr. Foster told Radio Jamaica that he was quite clear in his
submissions. Justice Brooks agreed that the conditions still
allowed Cash Plus to continue to service the needs of existing
clients.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd. S&P said the outlook is stable.
* * *
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
===========
ADVANCED MICRO: Posts US$1.772-Bln Net Loss in 2007 4th Quarter
---------------------------------------------------------------
Advanced Micro Devices Inc. reported Thursday results of its
fourth quarter and year ended Dec. 29, 2007.
In the fourth quarter of 2007, AMD reported net loss of
US$1.772 billion and an operating loss of US$1.678 billion.
Fourth quarter net loss included charges of US$1.675 billion, of
which US$1.669 billion were operating charges. The non-cash
portion of the fourth quarter charges was US$1.606 billion.
Fourth quarter 2007 revenue was US$1.770 billion, an 8% increase
compared to the third quarter of 2007 and flat compared to the
fourth quarter of 2006.
In the third quarter of 2007, AMD reported revenue of
US$1.632 billion, a net loss of US$396.0 million, and an
operating loss of US$226.0 million. In the fourth quarter of
2006, AMD reported revenue of US$1.773 billion, a net loss
US$576.0 million, and an operating loss of US$529.0 million.
For the year ended Dec. 29, 2007, AMD achieved revenue of
US$6.013 billion, a 6% increase from 2006. The fiscal 2007 net
loss was US$3.379 billion. Included in the 2007 net loss were
non-cash charges of US$2.007 billion. AMD reported revenue of
US$5.649 billion and a net loss of US$166.0 million for fiscal
2006.
"We were close to break-even operationally for the quarter,
reducing our fourth quarter non-GAAP operating loss to
US$9.0 million. We improved gross margin by three points
sequentially, driven by increased shipments of new products,
higher average selling prices and cost containment actions,"
said Robert J. Rivet, AMD's chief financial officer. "We
shipped a record number of microprocessor units in the quarter,
including nearly four hundred thousand quad-core processors."
Fourth quarter 2007 gross margin was 44%, compared to 41% in the
third quarter of 2007 and 36% in the fourth quarter of 2006.
Balance Sheet
At Dec. 29, 2007, the company's consolidated balance sheet
showed US$11.550 in total assets, US$8.295 billion in total
liabilities, US$265.0 million in minority interest in
consolidated subsidiaries, and US$2.990 billion in total
stockholders' equity.
About Advanced Micro
Headquartered in Sunnyvale, California, Advanced Micro Devices
Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative
processing solutions in the computing, graphics and consumer
electronics markets. The company has a facility in Singapore.
It has sales offices in Belgium, France, Germany, the United
Kingdom, Mexico and Brazil.
* * *
As reported in the Troubled Company Reporter on Aug. 14, 2007,
Standard & Poor's Ratings Services affirmed its B/Negative/--
corporate credit rating on Advanced Micro Devices Inc. At the
same time, S&P assigned its 'B' rating to the company's
US$1.5 billion 5.75% senior convertible notes due 2012, and
raised the rating on the company's existing senior unsecured
debt to 'B' from 'B-', because the company no longer has secured
debt in its capital structure.
In addition, Fitch Ratings assigned a 'CCC+/RR6' rating to
Advanced Micro Devices Inc.'s private placement of US$1.5
billion 5.75% convertible senior notes due 2012. Fitch also
affirmed the company's Issuer Default Rating at 'B'; and Senior
unsecured debt at 'CCC+/RR6'.
AMERICAN AXLE: 558 UAW Workers Accept Separation Deal
-----------------------------------------------------
American Axle & Manufacturing Holdings Inc. disclosed that 558
UAW represented associates agreed to participate in AAM's
Buffalo Separation Program, a voluntary separation program that
was offered to approximately 650 UAW represented associates at
AAM's Buffalo Gear, Axle & Linkage facility in Buffalo, New
York. Production at this facility was idled in December 2007.
Under this voluntary separation program, AAM offered a range of
retirement incentives and buy-outs to eligible associates
beginning in September 2007. Associates who retired as part of
this program will retain all vested pension and postretirement
benefits. Associates who accepted a buy-out will retain
vested pension benefits, but forfeited other postretirement
benefits.
On Aug. 14, 2007, AAM estimated that it would incur special
charges of as much as US$85 million for the BSP, including
pension and other postretirement benefit curtailments and
special termination benefits.
AAM currently estimates that the total cost of the BSP will
approximate US$56 million.
Headquartered in Detroit, Michigan, American Axle &
Manufacturing Holdings, Inc. (NYSE:AXL) -- http://www.aam.com/
-- and its wholly owned subsidiary, American Axle &
Manufacturing, Inc., manufactures, engineers, designs and
validates driveline and drivetrain systems and related
components and modules, chassis systems and metal-formed
products for light trucks, sport utility vehicles and passenger
cars. In addition to locations in the United States (in
Michigan, New York and Ohio), the company also has offices or
facilities in Brazil, China, Germany, India, Japan, Luxembourg,
Mexico, Poland, South Korea and the United Kingdom.
* * *
Moody's Investors Service recently affirmed American Axle &
Manufacturing Holdings Inc.'s Corporate Family rating of Ba3 as
well as the senior unsecured rating of Ba3 to American Axle &
Manufacturing Inc.'s notes and term loan.
AVNET INC: Works with Xilinx to Build Training Lab in Singapore
---------------------------------------------------------------
Avnet Electronics Marketing, an operating group of the leading
global distributor of electronic components, Avnet, Inc.,
together with Xilinx, Inc., are investing in Singapore education
by providing hands-on experience for engineering students at
Singapore's Republic Polytechnic via a specially designed
training lab.
The lab is funded by Xilinx while Avnet Electronics Marketing is
providing experienced field applications engineers to conduct
all the training including monthly workshops for students as
well as customers. At the lab, students and faculty members
will have the opportunity to undertake training and workshops on
a variety of topics including the development of various end-
user applications as well as embedded system design.
"Avnet recognises that meeting the educational needs of young
people requires more than just providing them with technical
knowledge. It is also important for them to learn to become
innovative problem solvers," commented Avnet Electronics
Marketing Asia senior director of segment marketing and design
service, Andy Wong. "The Republic Polytechnic lab will offer a
unique opportunity for students to better understand the latest
technology innovations in the rapidly changing world of FPGAs
and equip them with the practical knowledge necessary to tackle
design challenges they may encounter when they embark on their
own careers."
"The establishment of the RP Xilinx Programmable Logic Solutions
Lab will provide the necessary infrastructure for both staff and
students to embark on exciting development work in areas such as
digital entertainment systems, portable multimedia devices and
hardware acceleration for human-machine interaction. We aim to
develop this lab into a premier lab in programmable logic
solutions, harnessing capabilities of students, staff and
industry to break new ground in the innovation application of
FPGA solutions," commented Republic Polytechnic's Director of
School of Engineering, Mr. Fong Yew Chan.
"The Republic Polytechnic is geared towards technical education
and together with our strategic partner, Xilinx, we are thrilled
to be able to offer our expertise and help foster the education
of local students," said regional president of Avnet Electronics
Marketing in South Asia, Keith Lam.
"The joint labs will be a perfect complement to the 'problem-
based learning' philosophy practised at Republic Polytechnic.
Students will be able to develop their engineering skills by
using the industry's leading silicon and software tools to
tackle realistic audio and video design projects for digital
entertainment applications" said Xilinx corporate solutions
marketing manager for Xilinx Asia Pacific, Simon Ho. "As the
worldwide leading programmable solution provider, Xilinx is
committed to educating future engineers in Singapore and the
whole Asia market with continuous increasing of programmable
technology requirement."
This latest project between Avnet Electronics Marketing and
Xilinx comes after the successful X-Fest global series of
technical seminars that kicked off in China in 2007 and rolled
out across Asia and on to the United States and Europe.
About Xilinx
Xilinx, Inc. (Nasdaq: XLNX) -- http://www.xilinx.com-- is the
worldwide leader of programmable logic solutions.
About Avnet Electronics Marketing EMEA
Avnet Electronics Marketing EMEA, a part of Avnet Electronics
Marketing, is a group of highly focused distribution business
units (speedboats), concentrating on special market segments,
franchise partners or technology areas. The group includes EBV
Elektronik, Silica, Avnet Memec, Avnet Time, Avnet Israel and
Avnet Kopp. The distribution business units are supported by
Avnet Logistics, which operates warehouses in Poing (Germany)
and Tongeren (Belgium).
About Avnet Electronics Marketing
Avnet Electronics Marketing -- http://www.em.avnet.com/-- is an
operating group of Phoenix-based Avnet, Inc. (NYSE:AVT), a
Fortune 500 company. Avnet Electronics Marketing serves
electronic original equipment manufacturers (EOEMs) and
electronic manufacturing services (EMS) providers in 73
countries, distributing electronic componentsfrom leading
manufacturers and providing associated design-chain and supply-
chain services.
About Avnet Inc.
Headquartered in Phoenix, Arizona, Avnet, Inc. --
http://www.avnet.com/-- distributes electronic components and
computer products, primarily for industrial customers. It has
operations in the following countries: Australia, Belgium,
China, Germany, Hong Kong, India, Indonesia, Italy, Japan,
Malaysia, New Zealand, Philippines, Singapore, and Sweden,
Brazil, Mexico and Puerto Rico.
* * *
Moody's Investors Service affirmed Avnet's Ba1 corporate family
long-term debt ratings in March 2007. Moody's said the outlook
is positive.
BAUSCH & LOMB: Signs Definitive Pact Acquiring eyeonics
-------------------------------------------------------
Bausch & Lomb Inc. has entered into a definitive agreement to
acquire eyeonics, inc., a privately held ophthalmic medical
device company headquartered in Aliso Viejo, Calif. Financial
terms of the transaction, which is expected to close during the
first quarter of 2008 subject to standard regulatory approval,
were not disclosed.
Upon completion of the acquisition, eyeonics' operations will
become part of Bausch & Lomb's surgical business, which offers a
complete line of standard intraocular lenses,
phacoemulsification equipment, vitreoretinal and refractive
products to ophthalmologists worldwide. The U.S. surgical
business will be led by J. Andy Corley, eyeonics' co-founder,
chairman, and chief executive officer.
Accommodation is the eye's method to achieve near-distance
focusing by altering the curvature of the natural crystalline
lens, allowing a person to easily read small type used in books,
restaurant menus, and on computer monitors. As the natural lens
ages, accommodation decreases. This results in a condition
known as presbyopia for most people over age 40, for which
reading glasses are commonly required. Other approved IOLs only
permit focusing at a fixed distances, while the crystalens IOL
mimics the accommodating characteristics of a natural lens.
"This represents our first acquisition since Bausch & Lomb
became a private company in a transaction led by Warburg
Pincus," said Ronald L. Zarrella, chairman and Chief Executive
Officer, Bausch & Lomb. "We are excited to enter a new phase of
growth and innovation, and believe the eyeonics acquisition is
another sign of our commitment to delivering innovative, high-
quality products to ophthalmologists and patients worldwide."
Mr. Zarrella continued, "This acquisition immediately places
Bausch & Lomb into the rapidly expanding premium IOL market.
The crystalens technology complements our existing cataract
surgical business, including our Stellaris(TM) Vision
Enhancement System and our portfolio of monofocal IOLs. The
acquisition also adds leadership depth, as Andy and his team
bring a strong track record of product innovation and growth to
the company. We look forward to their contributions as part of
the Bausch & Lomb family."
The global premium IOL market is growing in excess of 20 percent
annually. This growth rate is fueled by an increasing demand
for technological advancements by cataract patients worldwide.
In 2007, eyeonics generated revenues of approximately US$34
million, an increase of 100 percent over the prior year revenues
of approximately US$17 million. Its crystalens IOL is estimated
to represent approximately 30 percent of the presbyopic IOL
market in the United States.
"We expect that this transaction will lead to accelerated
adoption of the crystalens IOL, given Bausch & Lomb's global
sales and marketing reach and brand equity," said Andy Corley.
"Through the extensive Bausch & Lomb sales and marketing
organization, we expect to quickly and significantly expand the
appreciation for the distinct patient benefits offered by the
crystalens. In addition, the unsurpassed optics R&D expertise
of Bausch & Lomb will help further advance our technology. Our
entire management team is excited about becoming part of the
Bausch & Lomb organization at the outset of its new partnership
with Warburg Pincus. We believe Bausch & Lomb's deepened
commitment to ophthalmology will further drive the crystalens
IOL's market acceptance as well as growth of the entire surgical
product portfolio."
"I've been using the crystalens accommodating IOL for several
years, and continue to be impressed with the positive impact it
makes on my patients' lifestyles and quality of life," said Dr.
Richard Lindstrom, the founder of Minnesota Eye Consultants and
an internationally-recognized ophthalmologist. "Now, with the
crystalens IOL carrying the globally-known Bausch & Lomb brand,
surgeons can be even more confident in presenting this option to
their patients. I fully expect to see even further evolution of
the crystalens IOL and related technologies, considering the
esteemed reputations and innovative cultures of both companies."
The crystalens IOL was approved by the FDA in November 2003.
Financial Metrics
Bausch & Lomb also announced certain preliminary and unaudited
fourth-quarter and full-year 2007 financial metrics. While the
company has not yet finalized its financial close process,
including purchase accounting associated with the recently
completed merger with affiliates of Warburg Pincus, it currently
projects it will report fourth-quarter net sales of between
US$654 million and US$660 million, compared to US$597.6 million
in the same period in 2006. That would represent an increase of
approximately 10 percent, or approximately 4 percent growth
excluding the effects of changes in foreign currency exchange
rates. The company currently projects fourth-quarter Adjusted
EBITDA of between US$120 million and US$126 million, compared to
US$85.7 million in the year-ago period.
For the full year, Bausch & Lomb currently projects it will
report net sales between US$2.513 billion and US$2.519 billion,
compared to US$2.292 billion in 2006. That would represent an
increase of approximately 10 percent, or approximately 6 percent
growth excluding the effects of changes in foreign currency
exchange rates. The company currently projects full-year
Adjusted EBITDA of between US$408 million and US$414 million,
compared to US$338.5 million in 2006.
These selected financial metrics are estimates and subject to
change. Bausch & Lomb has not completed its financial close
processes or allocation of purchase price and its auditors have
not completed their audit procedures for the year ended
Dec. 29, 2007. Therefore, there can be no assurance that final
audited results will not differ from these estimates, including
as a result of year-end closing procedures, purchase accounting
or audit adjustments, and any such changes could be material.
In addition, these estimates should not be viewed as a
substitute for full audited financial statements prepared in
accordance with generally accepted accounting principles or as a
measure of the company's performance. As a result of the
foregoing considerations, investors are cautioned not to place
undue reliance on this preliminary financial information.
EBITDA means earnings before interest expense (net of interest
income), income taxes and depreciation and amortization.
Adjusted EBITDA means EBITDA further adjusted to exclude items
consistent with those that were described in the company's
Current Report on Form 8-K dated Oct. 5, 2007.
These items include:
* non-cash stock compensation expense;
* direct charges associated with the MoistureLoc(R) lens care
solution recall;
* the impact of the 2007 reversal of certain Brazilian tax
reserves based on amnesty granted by the tax authority;
* expenses incurred in connection with brand rebuilding
efforts subsequent to the MoistureLoc recall;
* fees and other costs associated with the merger between the
company and affiliates of Warburg Pincus;
* fees associated with the defense of product liability cases
related to the MoistureLoc recall and shareholder lawsuits,
as well as the cost of actual MoistureLoc claims settled;
* fees related to accounting investigation and enhanced audit
procedures; and
* other adjustments.
Estimated adjustments to EBITDA included in the company's
current projections for the fourth quarter and full-year 2007
totaled approximately US$93 million and US$132 million,
respectively. Such adjustments to EBITDA totaled US$19.4
million and US$98.4 million for the fourth quarter and full-year
2006, respectively.
About eyeonics
eyeonics, founded in 1998, developed and markets the crystalens
intraocular lens, the first and only U.S. Food and Drug
Administration-approved accommodating IOL for the treatment of
cataracts. The crystalens IOL replaces the eye's natural lens
and has been implanted in more than 95,000 eyes worldwide.
About Bausch & Lomb
Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE:
BOL) -- http://www.bausch.com/-- develops, manufactures, and
markets eye health products, including contact lenses, contact
lens care solutions, and ophthalmic surgical and pharmaceutical
products. The company is organized into three geographic
segments: the Americas; Europe, Middle East, and Africa; and
Asia (including operations in India, Australia, China, Hong
Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan
and Thailand). In Latin America, the company has operations in
Brazil and Mexico. In Europe, the company maintains operations
in Austria, Germany, the Netherlands, Spain, and the United
Kingdom.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 31, 2007, Moody's Investors Service has confirmed and will
withdraw Bausch & Lomb Incorporated's Ba1 Corporate Family
Rating, Ba1 Probability of Default Rating and Ba1 ratings on
certain existing senior unsecured notes. The rating outlook was
revised to stable and will be withdrawn.
BALLY TOTAL: Levine Pursues Common Law Fraud Claims in Illinois
---------------------------------------------------------------
Levine's new action in the Circuit Court of Cook County,
Illinois, Case
No. 07 L 4280, asserting only claims for common law fraud and
under the
Illinois Consumer Fraud and Deceptive Practices Act against
Bally Total Fitness Holding Corp. remains pending.
The U.S. District Court for the Northern District of Illinois,
on April 2, 2007, granted without prejudice, the Company's
motion to dismiss an amended complaint filed by the plaintiff
under the lawsuit captioned Levine v. Bally Total Fitness
Holding Corporation, et al., Case No. 06 C 1437.
The plaintiff's complaint alleged violations of Sections 10(b),
18 and 20(a) of the Exchange Act, SEC Rule 10b-5, and the
Illinois Consumer Fraud and Deceptive Practices Act, as well as
common law fraud in connection with the Company's restatement.
The Court found this action related to the consolidated
securities class action filed against the Company and
transferred it to the judge before whom the class action cases
are tried.
The Court, however, granted the Company's motion to dismiss the
class action cases, allowing the plaintiff to file for a motion
to amend its complaint.
On July 19, 2006, the Court denied the plaintiff's motion and
ordered completion of briefings on the defendant's motions to
dismiss on statute of limitations issues.
On Sept. 29, 2006, the Court granted defendant's motion to
dismiss plaintiff's Section 18 claim as untimely, denied the
motion as to Sections 10 (b) and 20(a), dismissed Ernst & Young,
LLP as a defendant and granted the plaintiff's leave to amend
his complaint.
The amended complaint was filed on Nov. 3, 2006. The Company
filed a motion to dismiss the amended complaint on Jan. 5, 2007.
After the Court has granted the dismissal, the plaintiff did not
file a timely Notice of Appeal, but instead filed a new action
in the Circuit Court of Cook County, Ill., Case No. 07 L 4280,
asserting only claims for common law fraud and under the
Illinois Consumer Fraud and Deceptive Practices Act. (Corporate
Litigation Reporter, July 19, 2007)
On April 2, 2007, the Court granted the Company's motion and
dismissed the case with prejudice. Plaintiff did not file a
timely Notice of Appeal of this dismissal, but instead filed a
new action in the Circuit Court of Cook County, Illinois, Case
No. 07 L 4280.
A Notice of Pendency of Cases under Chapter 11 of the Federal
Bankruptcy Code and of Automatic Stay was filed on Aug. 2, 2007.
The Company has not yet answered or otherwise responded to the
complaint, given that the action was stayed prior to the
deadline for the Company's answer or responsive pleading.
Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/--
operates fitness centers in the U.S., with over 375 facilities
located in 26 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Bally Sports
Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and
its affiliates filed for chapter 11 protection on July 31, 2007
(Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite
number of votes in favor of their pre-packaged chapter 11 plan.
Joseph Furst, III, Esq., at Latham & Watkins, L.L.P. represented
the Debtors in their restructuring efforts. As of June 30,
2007, the Debtors had US$408,546,205 in total assets and
US$1,825,941,54627 in total liabilities.
The Debtors filed their Joint Prepackaged Plan & Disclosure
Statement on July 31, 2007. On Aug. 13, 2007, they filed an
Amended Joint Prepackaged Plan and on Aug. 17 filed a Modified
Amended Prepackaged Plan.
CLEAR CHANNEL: Extends Key Dates for Senior Notes Tender Offer
--------------------------------------------------------------
Clear Channel Communications Inc. has extended these dates,
in connection with its tender offer for its outstanding
7.65% Senior Notes due 2010 (CUSIP No. 184502AK8), and Clear
Channel's subsidiary AMFM Operating Inc.'s tender offer for its
outstanding 8% Senior Notes due 2008 (CUSIP No. 158916AL0):
-- the date on which the pricing for the Notes will be
established from 2:00 p.m. New York City time on
Jan. 14, 2008, to 2:00 p.m. New York City time on
Feb. 15, 2008;
-- the date on which the tender offers are scheduled to
expire from 8:00 a.m. New York City time on Jan. 16,
2008, to 8:00 a.m. New York City time on Feb. 20, 2008;
and
-- the consent payment deadline for the Notes from 8:00 a.m.
New York City time on Jan. 16, 2008, to 8:00 a.m. New
York City time on Feb. 20, 2008.
Each of the price determination date, the offer expiration date
and the consent payment deadline is subject to extension by
Clear Channel, with respect to the CCU Notes, and AMFM, with
respect to the AMFM Notes, in their sole discretion.
Clear Channel disclosed on Jan. 2, 2008, that it had received,
pursuant to its tender offer and consent solicitation for the
CCU Notes, the requisite consents to adopt the proposed
amendments to the CCU Notes and the indenture governing the CCU
Notes applicable to the CCU Notes, and that AMFM had received,
pursuant to its tender offer and consent solicitation for the
AMFM Notes, the requisite consents to adopt the proposed
amendments to the AMFM Notes and the indenture governing the
AMFM Notes.
The Clear Channel tender offer and consent solicitation were
made pursuant to the terms and conditions set forth in the Clear
Channel Offer to Purchase and Consent Solicitation Statement for
the CCU Notes dated Dec. 17, 2007, and the related Letter of
Transmittal and Consent.
Clear Channel has retained Citi to act as the lead dealer
manager for the tender offers and lead solicitation agent for
the consent solicitations and Deutsche Bank Securities Inc. and
Morgan Stanley & Co. Incorporated to act as co-dealer managers
for the tender offers and co-solicitation agents for the consent
solicitations. Questions regarding the transaction should be
directed to Citi at (800) 558-3745 (toll-free) or (212) 723-6106
(collect).
Global Bondholder Services Corporation is the Information Agent
for the tender offers and the consent solicitations. Requests
for documentation should be directed to Global Bondholder
Services Corporation at (212) 430-3774 (for banks and brokers
only) or (866) 924-2200 (for all others toll-free).
The tender offers and consent solicitations for the Notes are
being made in connection with the merger with BT Triple Crown
Merger Co. Inc. The completion of the merger and the related
debt financings are not subject to, or conditioned upon, the
completion of the tender offers or the related consent
solicitations or the adoption of the proposed amendments with
respect to the Notes.
The closing of the merger is expected to occur during the first
quarter 2008 and concurrently with the consummation of the
merger, Clear Channel expects to obtain US$18.525 billion of new
senior secured credit facilities, to be available to Clear
Channel and certain of its subsidiaries as borrowers, and to
issue US$2.6 billion of new senior unsecured notes.
Clear Channel and one or more of its subsidiaries would also be
the borrowers under a separate receivables-backed revolving
credit facility with availability of up to US$1 billion. The
closing of the merger is subject to the receipt of regulatory
approvals and conditions.
About Clear Channel Communications
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a media
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers. The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 20, 2007, Standard & Poor's Rating Services has lowered its
issue-level ratings on Clear Channel Communication Inc.'s
roughly US$6.32 billion of existing senior unsecured notes to
'B-', two notches below the corporate credit rating, from 'B+'.
All ratings remain on CreditWatch with negative implications,
where they were originally placed on Oct. 26, 2007, pending the
completion of Clear Channel's LBO.
=======================================
N E T H E R L A N D S A N T I L L E S
=======================================
JETBLUE AIRWAYS: Launches New York-St Maarten Daily Flights
-----------------------------------------------------------
Dominican Today reports that JetBlue Airways has launched
nonstop, daily year-round flights between New York's John F.
Kennedy Airport and St Maarten's Princess Juliana International
Airport in the Netherlands Antilles.
JetBlue Airways is offering a special sale fare each way between
St Maarten and New York if travel is booked by Jan. 24 at 11:59
p.m. Regular one-way fares between New York and St Maarten
begin as low as US$154 each way, Dominican Today relates.
JetBlue Airways Chief Executive Officer Dave Barger commented to
Dominican Today, "We want our customers to travel in style and
comfort, whether it's more legroom in our all-leather seats,
free snacks, complimentary movies or our award-winning personal
and sincere service. They also deserve more affordable flights
from the Northeast to the Caribbean, and we're excited to offer
daily year-round fares that are almost 30% lower than pre-
JetBlue fares from New York to the beautiful island destination
of St Maarten. Lower fares means you have more of your budget
to spend in beautiful St Maarten or one of our 10 other
Caribbean destinations."
Princess Juliana head Eugene Holiday told Dominican Today, "We
are very pleased to welcome JetBlue into our airport family.
The start of the service will bring increased choices and
connections for the traveling public between St Maarten/St.
Martin, the region we serve and the US."
"JetBlue's nonstop, daily year-round service from New York's
John F. Kennedy Airport, will allow greater opportunities for
development of our tourism product. This new flight will mean
easier and more accessible travel to and from St. Maarten and
the Caribbean, as well as provide more options for visitors
wishing to vacation on our beautiful island. We are encouraged
by this new opportunity and look forward to welcoming visitors
from the United States and beyond through this new connection,"
tourism commissioner Roy Marlin commented to Dominican Today.
Headquartered in Forest Hills, New York, JetBlue Airways Corp.
(Nasdaq: JBLU) -- http://www.jetblue.com/-- provides passenger
air transportation services in the United States. As of
Feb. 14, 2007, it operated approximately 502 daily flights
serving 50 destinations in 21 states, Puerto Rico, Mexico, and
the Caribbean; and a fleet of 98 Airbus A320 aircraft and 23
EMBRAER 190 aircraft. The company also provides in-flight
entertainment systems for commercial aircraft, including live
in-seat satellite television, digital satellite radio, wireless
aircraft data link service, and cabin surveillance systems and
Internet services, through its wholly owned subsidiary, LiveTV
LLC.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 15, 2007, Fitch Ratings affirmed the debt ratings of
JetBlue Airways Corp. as:
-- Issuer Default Rating at 'B'
-- Senior unsecured convertible notes at 'CCC' with a recovery
rating of 'RR6'
The senior unsecured rating applies to US$425 million of
outstanding convertible notes.
=================
N I C A R A G U A
=================
* NICARAGUA: Getting Cuban Generation Units
-------------------------------------------
Nicaragua will get new generation units from Cuba, Venezuelan
energy and oil ministry said in a statement.
According to the Venezuelan ministry's statement, Venezuela will
transport generation units to Nicaragua.
Business News Americas relates that the units will bring up to
60 megawatts of power to Nicaragua. They are in addition to the
60 megawatts Venezuela supplied in 2007.
Venezuela will send units for another 120 megawatts this year,
BNamericas states.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
=====================
P U E R T O R I C O
=====================
PEP BOYS: Moody's Reviews Ratings for Possible Downgrade
--------------------------------------------------------
Moody's Investors Service has placed all ratings of Pep Boys
Manny Moe & Jack under review for possible downgrade, including
the corporate family rating of B1. The review was prompted by
the continuing negative comparable store sales trend, the weak
interest coverage, the recent announcement of the departure of
Pep Boys' Chief Financial Officer, and Moody's concern that the
slowdown in consumer spending could prevent it from maintaining
a credit profile consistent with its present ratings.
Ratings placed under review for possible downgrade:
-- Corporate family rating at B1
-- Probability of default rating at B1
-- US$155 million senior secured term loan due 2013 at Ba3
-- US$200 million senior subordinated notes due 2014 at B3.
Ratings withdrawn:
-- US$200 senior secured term loan due 2011 at Ba2
Moody's review will focus on the operating performance, cash
flow generation, the company's ability to improve leverage and
interest coverage metrics as was originally expected. Moody's
will also evaluate the company's new strategic plan to determine
the likelihood of it being able to reverse Pep Boys' negative
comparable store sales trends, improve margins, and restore
credit metrics to more appropriate levels. The company's last
twelve months revenue is approximately US$2.2 billion.
The Pep Boys - Manny, Moe & Jack (NYSE: PBY) --
http://pepboys.com/-- has 593 stores and more than 6,000
service bays in 36 states and Puerto Rico. Along with its
vehicle repair and maintenance capabilities, the Company also
serves the commercial auto parts delivery market and is one of
the leading sellers of replacement tires in the United States.
ROYAL CARIBBEAN: Vicki Freed Joins as Sales Sr. Vice President
--------------------------------------------------------------
Royal Caribbean International has named cruise industry veteran
Vicki Freed as the company's senior vice president of Sales.
Ms. Freed joins the company after 29 years with Carnival Cruise
Lines, where she spent the last 15 years as senior vice
president of Sales and Marketing. Prior to that, Ms. Freed
served in a variety of sales management positions within the
cruise line. From 1998 to 2000, Ms. Freed also served as the
first, and only, female chairperson of the Cruise Line
International Association, the marketing and travel agent
training arm of the North American cruise industry.
"Vicki has an outstanding and proven background within our
industry and we are very pleased to have her join our team,"
said Royal Caribbean International president and chief executive
officer, Adam Goldstein. "Vicki's passionate support of travel
agents has been well chronicled and recognized. She will be a
great asset to our brand as we continue to grow."
In her new role, Ms. Freed will take charge of the company's
345-person sales force, the largest sales team in the cruise
industry. She will also manage the company's Trade Support and
Services division, which includes Reservations, Group Sales,
Customer Service, and Loyalty Programs. Ms. Freed will report
to Goldstein.
Ms. Freed earned a bachelor's degree in business from the
University of Colorado, and holds a Certified Travel Counselor
designation. She also serves as a trustee of the United Way of
Miami-Dade County.
Royal Caribbean International is a brand of Royal Caribbean
Cruises Ltd., with 21 ships in service and one more under
construction.
About Royal Caribbean
Headquartered in Miami, Royal Caribbean Cruises Ltd. (NYSE: RCL)
-- http://www.royalcaribbean.com/-- is a global cruise vacation
company that operates Royal Caribbean International, Celebrity
Cruises and Pullmantur Cruises, Azamara Cruises and CDF
Croisieres de France. The company has a combined total of 35
ships in service and seven under construction. It also offers
unique land-tour vacations in Alaska, Australia, China, Canada,
Europe, Latin America and New Zealand. The company has
operations in Puerto Rico.
* * *
Moody's still carries Royal Caribbean Cruises Ltd.'s 'Ba1' long
term corporate family rating last placed on Feb. 22, 2005.
Moody's said the outlook is stable.
=================
V E N E Z U E L A
=================
CHRYSLER LLC: Christine Cortez To Quit as Senior Vice President
---------------------------------------------------------------
Chrysler LLC has disclosed organizational changes and
appointments in Mopar(R) and Global Alliance Operations. These
moves will take immediate effect following Christine K. Cortez'
announcement of her intent to retire from her position as Senior
Vice President - Global Service and Parts.
"Chrysler is grateful to Chris for her 31 years of dedicated
service and many contributions," said Chrysler Vice Chairman and
President James E. Press. "She leaves with our most sincere
well wishes."
Simon Boag has been appointed as President - Mopar, Global
Service and Parts, reporting to Press. Mr. Boag will be
responsible for Global Service, International Service and Parts,
Global Parts Marketing, Service Contracts and Global Parts
Supply Chain Management. Mr. Boag was recently appointed
Executive Vice President - Global Alliance Operations.
"As a result of Chris' decision to retire, Simon will
immediately assume this critical new role," said Mr. Press.
"Simon's strong background in manufacturing operations and
procurement is a great fit with the needs of Mopar. It's
important that he continue our focus on the customer and this
incredibly strong brand."
Scott R. Garberding replaces Mr. Boag and has been appointed
Vice President - Global Alliance Operations, reporting to
Chrysler Vice Chairman and President Thomas W. LaSorda.
Mr. Garberding will lead the operations side of Chrysler's
automotive alliances designed to expand the company's global
presence. Mr. Garberding will also work closely with Michael
Manley, Executive Vice President - International Sales,
Marketing and Business Development. Mr. Garberding most
recently served as Vice President - Supplier Quality.
Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2007, Standard & Poor's Ratings Services revised its
recovery rating on Chrysler's US$2 billion senior secured
second-lien term loan due 2014. The issue-level rating on this
debt remains unchanged at 'B', and the recovery rating was
revised to '3', indicating an expectation for meaningful (50% to
70%) recovery in the event of a payment default, from '4'.
INDUSTRIAS METALURGICAS: Gets Edelca Tocoma Hydro Contract
----------------------------------------------------------
Industrias Metalurgicas Pescarmona SA has received a contract
from Venezuela's state-run hydro generator Edelca to design,
build and deploy the Tocoma hydro project's turbines, Business
News Americas reports.
Industrias Metalurgicas said in a statement that the contract is
over US$520 million for ten 232-megawatt Kaplan turbines that
will be used in the 2,330-megawatt Tocoma plant on the Caroni
river. The plant will generate a total of 12.1 terra watt-hours
per year.
The International Water Power and Dam Construction relates that
the contract involves the supply of other equipment like:
-- excitation systems,
-- transformers, and
-- cranes.
Industrias Metalurgicas told the International Water that the
procurement process for the equipment started in 2004.
According to BNamericas, the Andean Development Corporation
signed this month a US$600-million loan to partially fund the
project. The corporation had authorized a similar loan of
US$300 million for the complex in 2004.
BNamericas notes that the Inter-American Development Bank is
funding US$750 million of the project.
Investment for the plant would be over US$3 billion. It will be
operational in 2014, BNamericas states.
Industrias Metalurgicas Pescarmona SA aka IMPSA --
http://www.impsa.com.ar/-- is one of the largest worldwide
providers of integrated energy solutions for hydropower and wind
energy projects through the production of capital goods and by
investing in power generation projects. The company has offices
in Malaysia, China, and Argentina.
As reported in the Troubled Company Reporter-Latin America on
Oct. 24, 2007, Standard & Poor's Ratings Services affirmed its
'B' long-term corporate credit rating on Industrias Metalurgicas
Pescarmona S.A.I.C. y F, aka IMPSA. Standard & Poor's said that
the outlook remains stable.
Oct. 16, 2007, Fitch Ratings assigned a 'B' rating to Industrias
Metalurgicas Pescarmona S.A.I.C. Y F proposed US$250 million
amortizing notes due in 2014. These notes were assigned a
Recovery Rating of 'RR4', which is consistent with an
anticipated recovery of 30%-50% in the event of a default.
Fitch maintains a foreign and local currency Issuer Default
Rating of 'B'. Fitch said the rating outlook is stable.
PETROLEOS DE VENEZUELA: Restarts Amuay & Cardon Plants
------------------------------------------------------
Venezuelan state-owned oil firm Petroleos de Venezuela SA has
restarted operations at its Amuay and Cardon plants, Business
News Americas reports.
As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2008, Petroleos de Venezuela SA said that its Amuay
plant in the Paranguana refining complex in Falcon was
temporarily closed down due to power failure. The problem came
from a power unit in Amuay's block 29. Paraguana managers
activated emergency procedures at Amuay.
Reuters relates that Amuay started its restart last Thursday.
On Saturday, the state company PDVSA said the refinery's crude
processing operations were fully back online.
Petroleos de Venezuela said in a statement that operations at
the Amuay refinery has already returned to normal.
The Cardon plant is also operating normally, Petroleos de
Venezuela assured BNamericas. The refinery had suffered an
electrical failure in December 2007.
As reported in the Troubled Company Reporter-Latin America on
Dec. 7, 2007, Petroleos de Venezuela said that its Cardon plant
suffered an electrical failure, resulting to a temporary
shutdown. Petroleos de Venezuela said the failure was due to a
"surge" at Cardon's T-31 substation. No damage occurred from
the electrical failure. Cardon's operations had resumed.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.
* VENEZUELA: Bringing Cuban Generation Units to Nicaragua
---------------------------------------------------------
Venezuelan energy and oil ministry said in a statement that the
country will transport generation units from Cuba to Nicaragua.
Business News Americas relates that the units will bring up to
60 megawatts of power to Nicaragua. They are in addition to the
60 megawatts Venezuela supplied in 2007.
Venezuela will send units for another 120 megawatts this year,
BNamericas states.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at
'B'and the Country Ceiling at 'BB-'. Fitch said the outlook on
the ratings remains stable.
* VENEZUELA: Hugo Chavez Threatens To Seize Private Banks
---------------------------------------------------------
Published reports say that Venezuelan president Hugo Chavez has
threatened that the government would confiscate private banks
who fail to provide low-cost, longer-term credit for the
agriculture sector in line with the recent amendment to the
agricultural law.
According to Business News Americas, the amendment sets a
maximum interest rate of 15%. It extends loan terms for peasant
farmers for up to 20 years.
"Banks that do not comply must be penalized, and this would not
be a small fine, no, banks that do not comply must be seized.
The law must be applied... We cannot permit abuse by
capitalists, in this case, private banks," President Chavez told
the press.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at
'B'and the Country Ceiling at 'BB-'. Fitch said the outlook on
the ratings remains stable.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Shareholders Total
Equity Assets
Company Ticker (US$MM) (US$MM)
------- ------ ------------ -------
Arthur Lange ARLA3 (23.61) 52.76
Kuala ARTE3 (33.57) 11.86
Bombril BOBR3 (472.88) 413.81
Caf Brasilia CAFE3 (876.27) 42.83
Chiarelli SA CCHI3 (63.93) 50.64
Ceper-Inv CEP (7.77) 120.08
Ceper-B CEP/B (7.77) 120.08
Telefonica Hldg CITI (1,481.31) 307.89
Telefonica Hldg CITI5 (1,481.31) 307.89
SOC Comercial PL COME (793.61) 439.83
Marambaia CTPC3 (1.38) 79.73
DTCOM-DIR To Co DTCY3 (14.16) 9.24
Aco Altona ESTR (49.52) 113.90
Estrela SA ESTR3 (62.09) 118.58
Bombril Holding FPXE3 (1,064.31) 41.97
Fabrica Renaux FTRX3 (5.55) 136.60
Cimob Partic SA GAFP3 (63.56) 94.60
Gazola GAZ03 (43.13) 22.28
Haga HAGA3 (114.40) 17.96
Hercules HETA3 (240.65) 37.34
Doc Imbituba IMB13 (20.49) 209.80
IMPSAT Fiber Networks IMPTQ (17.16) 535.01
Minupar MNPR3 (39.46) 154.47
Nova America SA NOVA3 (300.97) 41.80
Recrusul RCSL3 (59.33) 25.19
Telebras-CM RCPT RCTB30 (149.58) 236.49
Rimet REEM3 (219.34) 93.47
Schlosser SCL03 (75.19) 47.05
Semp Toshiba SA SEMP3 (4.68) 153.68
Tecel S Jose SJ0S3 (13.24) 71.56
Sansuy SNSY3 (67.08) 201.64
Teka TEKA3 (331.28) 536.33
Telebras SA TELB3 (149.58) 236.49
Telebras-CM RCPT TELE31 (149.58) 236.49
Telebras SA TLBRON (148.58) 236.49
TECTOY TOYB3 (3.79) 38.65
TEC TOY SA-PREF TOYB5 (3.79) 38.65
TEC TOY SA-PF B TOYB6 (3.79) 38.65
TECTOY SA TOYBON (3.79) 38.65
Texteis Renaux TXRX3 (103.01) 76.93
Varig SA VAGV3 (8,194.58) 2,169.10
FER C Atlant VSPT3 (104.65) 1,975.79
Wiest WISA3 (140.97) 71.37
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Rizande
de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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