/raid1/www/Hosts/bankrupt/TCRLA_Public/080201.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, February 1, 2008, Vol. 9, Issue 23
Headlines
A R G E N T I N A
ASOCIACION CIVIL: Trustee Filing Individual Reports Tomorrow
DELTA AIR: Merger Talks with Northwest Hit Snag, Source Says
YPF SA: Selling Up to 10% Stake to Four Argentine Provinces
B A H A M A S
BANK OF BARODA: Profit Up 52% in Qtr. Ended December 31
B E R M U D A
SCOTTISH RE: Seth Gardner Joins on Board of Directors
B R A Z I L
BANCO DO BRASIL: Brasilcap's 2007 Revenues Increase to BRL1.90B
BANCO PINE: Net Profits Up 139% to BRL150 Million in 2007
BRASIL TELECOM: Shares Gain After Upping Dividend Payment
BRASIL TELECOM: Gov't Ratifying Telecoms Regulation Revision
COMPANHIA ENERGETICA: Gets 9.72% Rate Reduction from Aneel
FIDELITY NATIONAL: Paying US$0.30 Per Share Dividend on March 27
FLEXTRONICS INTERNATIONAL: Completes Acquisition of Avail
FORD MOTOR: Introducing Edge Brand in Brazil
HERCULES INC: Moody's Reviews Ratings for Possible Upgrade
TELE NORTE: Gov't Ratifying Telecoms Regulation Revision
* BRAZIL: In Talks with Iran for Caspian Sea Exploration
C A Y M A N I S L A N D S
ALTERRA ENTERPRISES: Proofs of Claim Filing Deadline is Feb. 7
BOMBAY COMPANY: Court Approves Sale of Trademarks for US$2 Mil.
ELITEPERFORMANCE SIPS: Proofs of Claim Filing Deadline is Feb. 7
KEVIAN CAPITAL: Proofs of Claim Filing Ends on February 7
KEVIAN CAPITAL FUND: Proofs of Claim Filing is Until Feb. 7
PIMS INTERNATIONAL: Proofs of Claim Filing is Until Feb. 7
PIMS INTERNATIONAL: Sets Final Shareholders Meeting for Feb. 7
PH PROPERTY: Proofs of Claim Filing Deadline is February 7
SOULOR LIMITED: Proofs of Claim Filing Deadline is Feb. 7
SUNTRUST CORE: Proofs of Claim Filing is Until Feb. 7
SUNTRUST CORE CASH: Proofs of Claim Filing Ends on Feb. 7
C H I L E
EASTMAN KODAK: Earns US$92 Million in 2007 Fourth Quarter
C O S T A R I C A
* COSTA RICA: Wants U.S. to Delay Free Trade Deal Effectivity
D O M I N I C A N R E P U B L I C
BASIC ENERGY: Completes Buy of Xterra & Lackey for US$23.3MM
SMART MODULAR: Moody's Upgrades CFR to B1 with Stable Outlook
E C U A D O R
PETROECUADOR: Output at 257,069/day in First 11 Months of 2007
PETROECUADOR: Firms Have 3 Options in Contract Renegotiation
G U A T E M A L A
BRITISH AIRWAYS: Calls for Improved Service Quality Regulations
H A I T I
DYNCORP INT'L: Earns US$38.1 Million in Full Year Ended Dec. 28
J A M A I C A
NAT'L COMMERCIAL: Small Firms Complain of Bank's High Rates
NATIONAL COMMERCIAL: Court Extends Olint's Injunction
M E X I C O
BANCOPPEL SA: Moody's Assigns Preliminary Low-B Ratings
CLEAR CHANNEL: Pending US$19B Buyout Unaffected by Market Frets
DURA AUTOMOTIVE: Wants To Sell 9 Properties to IRG for US$19.2MM
DURA AUTOMOTIVE: Jacksonville Property Buyer Withdraws Offer
HSBC MEXICO: Plans Issue of MXN7 Billion of Bonds
KRONOS INC: Discloses New Trails in Workforce Management
US STEEL: Earnings Drop to $35 Mil. in Quarter Ended December 31
* MEXICO: Updates Tax, Law & Business Briefing in 2008 Edition
P A R A G U A Y
* PARAGUAY: Obtains US$37.58-Million Financing from World Bank
P U E R T O R I C O
ANN TAYLOR: Launches Strategic Restructuring Program
ANN TAYLOR: Moody's Withdraws Ba1 Corporate Family Rating
APARTMENT INVESTMENT: Reports Special Dividend Election Results
MYLAN INC: Paying US$15.53 Per Share Dividend on Feb. 15
PEP BOYS: Teams Up with lanelogic for Easy Car Selling Process
PULTE HOMES: Posts US$453.8-Mln 4Q Pre-Tax Loss from Operations
ROYAL CARIBBEAN: Reports US$603.4-Million Net Income for 2007
T R I N I D A D & T O B A G O
INVACARE CORP: Earns US$7 Milion in 2007 Fourth Quarter
V E N E Z U E L A
NORTHWEST AIRLINES: Net Loss Drops to US$8MM in 2007 4th Quarter
PETROLEOS DE VENEZUELA: Inks Urdaneta Lago Pact with Royal Dutch
- - - - -
=================
A R G E N T I N A
=================
ASOCIACION CIVIL: Trustee Filing Individual Reports Tomorrow
------------------------------------------------------------
Gustavo Ariel Fiszman, the court-appointed trustee for
Asociacion Civil de Propietarios de Taximetros del Partido de
Ezeiza's bankruptcy proceeding, will present the validated
claims in in the National Commercial Court of First Instance in
Buenos Aires as individual reports on Feb. 2, 2008.
Mr. Fiszman verified creditors' proofs of claim until Nov. 23,
2007.
A general report that contains an audit of Asociacion Civil's
accounting and banking records will be submitted in court on
March 12, 2008.
Mr. Fiszman is also in charge of administering Asociacion
Civil's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Gustavo Ariel Fiszman
Tucuman 1295, Banfield
Buenos Aires, Argentina
DELTA AIR: Merger Talks with Northwest Hit Snag, Source Says
------------------------------------------------------------
The ongoing merger talks between Delta Air Lines Inc. and
Northwest Airlines Corp. have stalled over a disagreement with
respect the roles of Northwest CEO Doug Steenland and Delta CEO
Richard Anderson, an unnamed source familiar with the
negotiations disclosed, the Atlanta Journal-Constitution
reports.
In a merged company, as is practiced in many deals, the CEO of
one company keeps his role as CEO while the other CEO is named
non-executive chairman.
Industry analysts and insiders have presumed that Mr. Anderson
wants to be chief executive while Mr. Steenland wants to be
chairman.
However, the paper says, this power-sharing structure could
present problems due to the personal histories of the two
executives.
Mr. Anderson was Mr. Steenland's boss while Mr. Anderson was
serving as Northwest's CEO in the 1990s. Accordingly, Mr.
Anderson may not be too eager to have Mr. Steenland step in as
chairman of the board, as this would give Mr. Steenland
significant power.
The source said there has been little evidence of active
discussions between Delta and UAL Corp.
Commencement of Merger Negotiations
As reported in the Troubled Company Reporter on Jan. 22, 2008
Delta Air obtained approval from its board of directors on
Jan. 11, 2007, to engage in formal merger talks with both
Northwest Airlines and UAL.
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.
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, Issue No. 88; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 21, 2008, Standard and Poor's said that media reports that
Delta Air Lines Inc. (B/Positive/--) entered into merger talks
with UAL Corp. (B/Stable/--) and Northwest Airlines Corp.
(B+/Stable/--) will have no effect on the 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.
YPF SA: Selling Up to 10% Stake to Four Argentine Provinces
-----------------------------------------------------------
Spanish firm Repsol YPF will sell up to a 10% stake in its
Argentine unit YPF SA to the provinces of Chubut, Santa Cruz,
Mendoza and Neuquen for EUR1.02 billion, according to a report
by news agency Telam report.
According to Telam, the provinces have the capital needed for
the purchase.
"The provinces are interested in buying a stake of 5% to 8% in
YPF. It makes perfect sense that the Argentine provinces take a
stake in YPF since they are the ones that grant exploration
licenses and extend them," a Repsol spokesperson commented to
Dow Jones Newswires.
Business News Americas relates that another 20% stake in YPF
will be floated on the Buenos Aires stock exchange in June.
Meanwhile, Reuters notes that Repsol will sell a 25% stake in
YPF to Argentine investor Enrique Eskenazi in a two-stage deal.
The Eskenazi transaction valued YPF as a whole at US$15 billion.
The sales will help Repsol raise funds to increase its expansion
and production projects in other areas, BNamericas states.
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.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 2, 2008, Standard & Poor's Ratings Services placed its
'BB+' local-currency corporate credit rating on YPF S.A. on
CreditWatch with negative implications. Standard & Poor's said
the outlook on the 'BB' foreign-currency rating remains stable.
As reported in the Troubled Company Reporter-Latin America on
Jan. 22, 2008, Fitch Ratings 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. Fitch said
the rating outlook is stable.
Moody's Investors Service also assigned these ratings on YPF SA:
B2 long-term foreign currency corporate family rating; and Ba2
foreign currency senior unsecured rating. Moody's said the
outlook is negative.
=============
B A H A M A S
=============
BANK OF BARODA: Profit Up 52% in Qtr. Ended December 31
-------------------------------------------------------
Bank of Baroda reported a net profit of INR5.01 billion in the
quarter ended Dec. 31, 2007, more than 52% compared to the
INR3.29 billion earned in the same quarter in 2006.
Total income increased to INR36.2 billion from 2006's
INR26.68 billion. The bank reported operating profit of
INR9.32 billion after deducting operating expenses of
INR6.83 billion and interest expenses of INR20.05 billion.
The bank also booked INR1.57 billion as provisions and
contingencies other than tax. Tax for the three-month period
totaled INR2.74 billion.
A copy of the bank's financial results for the quarter ended
Dec. 31, 2007, is available for free at:
http://ResearchArchives.com/t/s?2796
Headquartered in Vadodara, India, Bank of Baroda --
http://www.bankofbaroda.com/-- is a provider of banking
services in India. Bank of Baroda has branches in the Bahamas,
Belgium, the Fiji Islands, Mauritius, Republic of South Africa,
Seychelles, Singapore, Sultanate of Oman, United Arab Emirates,
the United Kingdom, and the United States of America.
* * *
On July 2007, Standard & Poor's assigned its 'BB' issue rating
to Bank of Baroda's US$300 million upper Tier-II subordinated
notes due 2022.
Fitch Ratings, on May 9, 2007, assigned 'BB' ratings to Bank of
Baroda's proposed unsecured subordinated Upper Tier 2 notes
(expected size: US$250 million plus greenshoe option), as well
as the hybrid Tier 1 debt to be issued under its USD1.5 billion
medium-term notes program. Fitch said the outlook on all
ratings is stable.
=============
B E R M U D A
=============
SCOTTISH RE: Seth Gardner Joins on Board of Directors
-----------------------------------------------------
Scottish Re Group Limited has appointed Seth Gardner as a member
of the Board of Directors of Scottish Re Group Limited,
effective Jan. 29, 2008. Mr. Gardner was designated for
election to the Board by MassMutual Capital Partners LLC and
SRGL Acquisition, LLC (an affiliate of Cerberus Capital
Management, LP) per their contractual right as combined majority
shareholders. The Board voted unanimously to appoint Mr.
Gardner to the Board.
"We are pleased to welcome Seth. His knowledge and experience
make him a great addition to the Board and Scottish Re," stated
Jonathan Bloomer, Chairman, Board of Directors.
Mr. Gardner is a Managing Director and Associate General Counsel
at Cerberus Capital Management, LP in New York City. He joined
Cerberus in 2003. From 1995 to 2003, Seth was an associate at
Wachtell, Lipton, Rosen & Katz, a New York City law firm.
Mr. Gardner graduated from Duke University in 1989 with an AB
degree. He also received an MBA degree from the Fuqua School of
Business and a JD degree from the Duke University School of Law
in 1994.
Mr. Gardner will be replacing Lenard Tessler who resigned from
the Board to focus on other business opportunities. "I enjoyed
working with Scottish Re as a member of the Board and will
continue to be involved with the company as an affiliate to an
investor of Scottish Re," stated Lenard Tessler. His
resignation from the Board was effective Jan. 29, 2008.
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Moody's Investors Service has affirmed the
ratings of Scottish Re Group Limited's senior unsecured shelf of
(P)Ba3 and changed the outlook to negative from stable.
===========
B R A Z I L
===========
BANCO DO BRASIL: Brasilcap's 2007 Revenues Increase to BRL1.90B
---------------------------------------------------------------
Banco do Brasil saving bond provider affiliate Brasilcap said in
a statement that it increased revenues 7.8% to BRL1.90 billion
in 2007, compared to 2006.
Brasilcap told Business News Americas that its net profits
totaled BRL87.8 million in 2007, exceeding projections by 10%.
According to BNamericas, Brasilcap's technical reserves dropped
6.81% to BRL2.60 billion at the end of 2007, compared to the end
of 2006.
About Brasilcap
Banco do Brasil controls 49.99% of Brasilcap. Icatu Hartford
and SulAmerica hold 16.7% each, while Alianca da Bahia owns
15.8% of Brasilcap.
About Banco do Brasil
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and over 7,000 points
of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Nov. 6, 2007, Moody's assigned a Ba2 foreign currency deposit
rating to Banco do Brasil. On Aug. 23, 2007, Moody's assigned a
Ba2 long-term bank deposit rating on the bank with a stable
outlook.
As reported on May 22, 2007, Standard & Poor's Ratings Services
raised its long-term foreign currency counterparty credit rating
on Brazilian government-related entity Banco do Brasil to 'BB+'
from 'BB', after Brazil's foreign currency sovereign credit
rating was upgraded to BB+.
BANCO PINE: Net Profits Up 139% to BRL150 Million in 2007
---------------------------------------------------------
Banco Pine said in a statement that its net profits rose 139% to
BRL150 million in 2007, from 2006.
Business News Americas relates that Banco Pine's profits,
excluding costs from March 2007 initial public offering,
increased 165% to BRL166 million in 2007, compared to 2006.
Meanwhile, the bank's return on equity rose to 29.2% from 23.0%.
Banco Pine's lending grew 108% to BRL4.33 billion in 2007, from
2006, BNamericas states.
Headquartered in Sao Paulo, Banco Pine was established in 1997
by the brothers Nelson and Noberto Pinheiro after the sale in
1996 of their participation in another family institution. A
comprehensive corporate and operational restructuring was
implemented and in the first half of 2005 Noberto Pinheiro
became the bank's majority shareholder. In April 2007, Banco
Pine went public by placing non-voting preferred shares at the
Bovespa Level 1 on the New Brazilian Stock Market. These shares
enjoy a tag-along privilege, giving minority shareholders 100%
of the value of the block of controlling shares in the event of
the sale of the institution.
* * *
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 on Banco Pine S.A. to 'BB-'
from 'B+'. The rating was removed from CreditWatch Positive
where it was placed June 11, 2007. S&P said the outlook is
stable.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Fitch Ratings upgraded the National ratings of
Banco Pine S.A. as: Long-term National rating to 'A-(bra)' from
'BBB(bra)'; Short-term National rating to 'F2(bra)' from
'F3(bra)'.
Fitch also affirms the company's: Long-term Foreign Currency
Issuer Default Rating 'B+'; Short-term Foreign Currency rating
'B'; Long-term Local Currency Issuer Default Rating 'B+'; Short-
term Local Currency rating 'B'; Individual 'D'; and Support '5'.
BRASIL TELECOM: Shares Gain After Upping Dividend Payment
---------------------------------------------------------
Brasil Telecom Participacoes' shares gained 3.8% to BRL17.29 on
the Sao Paulo stock exchange after it disclosed plans to up
dividend payment by BRL380 million on top of what has been
previously said, Bloomberg News reports. The company's
shareholders have yet to hear the proposal.
According to the same report, Brasil Telecom's shares have
gained 22% since the announcement it was reported in January
that the company will swap shares with Telemar Norte Leste SA.
"The performance of Brazil Telecom's shares will be driven by
news regarding its acquisition by Oi (fka Telemar)," Bloomberg
adds, citing Brascan Corretora analysts Felipe Cunha and Beatriz
Battelli.
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.
* * *
To date, Brasil Telecom carries Moody's Investors Service's Ba1
senior unsecured and credit default swap ratings.
BRASIL TELECOM: Gov't Ratifying Telecoms Regulation Revision
------------------------------------------------------------
The change in telecoms regulation to allow a merger between
Brasil Telecom and Telemar Norte Leste SA would be authorized
within a month, Business News Americas reports, citing Brazilian
communications minister Helio Costa.
According to BNamericas, the final decision on the change in the
regulation depends on President Luiz Inacio Lula da Silva.
Minister Costa told news daily Correio da Bahia that Brasil
Telecom and Telemar Norte Leste SA have confirmed their merger
talks to the Brazilian communications ministry.
Brazilian telecoms regulator Anatel must ratify any change in
the regulations' text, BNamericas notes.
Minister Costa commented to BNamericas, "We are officially
receiving the information that those companies want to rearrange
their stock composition. This way, the ministry will ask Anatel
to inform which procedure we need to follow for this issue to
proceed."
BNamericas relates that the Anatel board must authorize the
change in the regulation. The board will hold a meeting after
Brazil's Carnaval celebrations from Feb. 4-6. Once Anatel
ratifies the change, the communications ministry will discuss it
with President Lula da Silva.
Meanwhile, mobile telephony firm TIM Participacoes head Mario
Cesar Pereira de Araujo told the press that Brasil Telecom's
merger with Telemar Norte won't affect international mobile
operators' investments in Brazil,.
BNamericas notes that last week Mr. Araujo met with:
-- TIM controller Telecom Italia Chief Executive Officer
Franco Bernaba,
-- Telecom Italia president Gabriele Galateri di Genola,
-- Brazilian President Luiz Inacio Lula da Silva,
-- government representatives,
-- telecoms regulator Anatel, and
-- antitrust authority Cade.
"The government assured us there will be competitive isonomy and
not competitive asymmetry. Our stockholders are confident in
the country's ability to manage this process. The government
affirmed it would continue encouraging private investment in the
Brazilian telecoms market and there will not be any sort of
favoritism or protectionism. Mainly when you have public
reserves going to this deal, such as pension funds and national
bank [BNDES] reserves, there have to be guarantees this new
national company continue being national rather than sold right
after the merger," Mr. Araujo commented to BNamericas.
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.
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.
* * *
To date, Brasil Telecom carries Moody's Investors Service's Ba1
senior unsecured and credit default swap ratings.
COMPANHIA ENERGETICA: Gets 9.72% Rate Reduction from Aneel
----------------------------------------------------------
Brazilian power regulator Aneel said in a statement that it has
proposed a 9.72% rate reduction to Companhia Energetica de Minas
Gerais' unit Cemig Distribuicao.
According to Aneel's statement, it has also offered a 14.0% rate
reduction for CPFL Paulista.
Aneel told Business News Americas that the proposal is
preliminary. It will be available to the public for review
before the final rate is decided. The change in rates would be
implemented on April 8.
BNamericas relates that the rate reduction indicates the two
firms' increased productivity and lower average cost of capital.
About CPFL Paulista
CPFL Paulista is controlled by holding company CPFL Energia. It
distributes power to 3.3 million units in 234 municipalities in
Sao Paulo.
About Cemig Distribuicao
Cemig Distribuicao is a subsidiary of power holding company
Cemig. It distributes power to 6.4 million consuming units in
772 municipalities in Minas Gerais.
About Companhia Energetica
Companhia Energetica de Minas Gerais -- http://www.cemig.com.br/
-- is one of the largest and most important electric energy
utilities in Brazil due to its strategic location, its technical
expertise and its market. Cemig's concession area extends
throughout nearly 96.7% of the State of Minas Gerais, Brazil.
Cemig owns and operates 52 power plants, of which six are in
partnership with private enterprises, relying on a predominantly
hydroelectric energy matrix. Electric energy is produced to
supply more than 17 million people living in the state's 774
municipalities. In addition to those 52 plants, another three
are currently under construction.
Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).
* * *
As reported on March 8, 2007, Moody's Investors Service assigned
corporate family ratings of Ba2 on its global scale and Aa3.br
on its Brazilian national scale to Companhia Energetica de Minas
Gerais aka CEMIG. The rating action triggered the upgrade of
CEMIG's outstanding debentures due in 2009 and 2011, and of the
BRL250 million 2014 senior unsecured guaranteed debentures of
its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from
B1 on the global scale and to Aa3.br from Baa2.br on the
Brazilian national scale, concluding the review process
initiated on Aug. 8, 2006.
FIDELITY NATIONAL: Paying US$0.30 Per Share Dividend on March 27
----------------------------------------------------------------
Fidelity National Financial, Inc. Board of Directors has
declared a quarterly cash dividend of $0.30 per share. The
dividend will be payable March 27, 2008, to stockholders of
record as of March 13, 2008.
Fidelity National Financial, Inc. -- http://www.fnf.com--
(NYSE: FNF), is a provider of title insurance, specialty
insurance and claims management services. FNF is one of the
nation's largest title insurance companies through its title
insurance underwriters - Fidelity National Title, Chicago Title,
Ticor Title, Security Union Title and Alamo Title - that issue
approximately 28 percent of all title insurance policies in the
United States. FNF also provides flood insurance, personal
lines insurance and home warranty insurance through its
specialty insurance business. FNF also is a leading provider of
outsourced claims management services to large corporate and
public sector entities through its minority-owned subsidiary,
Sedgwick CMS.
About Fidelity National
Based in Jacksonville, Florida, Fidelity National Information
Services, Inc. -- http://www.fidelityinfoservices.com/--
provides core processing for financial institutions; card issuer
and transaction processing services; mortgage loan processing
and mortgage related information products; and outsourcing
services to financial institutions, retailers, mortgage lenders
and real estate professionals. FIS has processing and
technology relationships with 35 of the top 50 global banks,
including nine of the top ten. Nearly 50% of all US residential
mortgages are processed using FIS software. FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide, including
Brazil and Japan.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 29, 2007, Standard & Poor's Ratings Services has placed its
ratings, including the 'BB' corporate credit rating, on Fidelity
National Information Services Inc. on CreditWatch with negative
implications.
Moody's Investors Service also placed these ratings on review
for possible downgrade: US$1.6 billion First Lien Senior Secured
Term Loan B Ba1; US$2.1 billion First Lien Senior Secured Term
Loan A Ba1; US$900 million First Lien Senior Revolving Credit
Facility Ba1; US$200 million 4.75% (Certegy) notes due September
2008 Ba1; and Corporate Family Rating Ba1.
FLEXTRONICS INTERNATIONAL: Completes Acquisition of Avail
---------------------------------------------------------
Flextronics International Ltd. has completed its acquisition of
Avail Medical Products Inc.
As a division of the Flextronics Medical segment, Avail will
continue to operate as a stand-alone business. Flextronics
Medical segment is one of the fastest growing Flextronics
segments focused on providing outsourced design, manufacturing
and logistics services to the medical device and equipment
marketplace, including consumer diagnostic devices, lab and life
science equipment, imaging and patient monitoring equipment,
hospital beds, and drug delivery devices. With the combination
of continued strong organic growth and the acquisition of Avail,
Flextronics Medical expects to generate US$850-US$950 million in
revenue in the fiscal year ending March 31, 2009, which
represents a year-over-year expected growth rate of 90%.
"The acquisition of Avail expands our existing global design and
manufacturing capabilities creating a more robust and
competitive offering that now includes a wide range of
disposable medical devices such as catheters, wound management
and drug delivery devices. The addition of Avail establishes
Flextronics as a leading supplier and partner for the medical
industry," said Dan Croteau, president, Flextronics Medical.
"This is a highly strategic acquisition for Flextronics and I am
pleased to welcome the talented Avail staff to our
organization."
About Flextronics
Headquartered in Singapore, Flextronics International Ltd.
(NasdaqGS: FLEX) -- http://www.flextronics.com/-- is an
Electronics Manufacturing Services provider focused on
delivering design, engineering and manufacturing services to
automotive, computing, consumer digital, industrial,
infrastructure, medical and mobile OEMs. Flextronics helps
customers design, build, ship, and service electronics products
through a network of facilities in over 30 countries on four
continents including Brazil, Mexico, Hungary, Sweden, United
Kingdom, among others.
* * *
Flextronics International Ltd. continues to carry Moody's
"Ba1" probability of default and long-term corporate family
ratings with a negative outlook.
The company also carries Standard & Poor's "BB+" long-term
local and foreign issuer credit ratings with a negative
outlook.
FORD MOTOR: Introducing Edge Brand in Brazil
--------------------------------------------
Ford Motor Co. intends to sell Edge, its latest small, sport-
utility vehicle in the Brazilian market later this year, The
Wall Street Journal reports.
The automaker's latest model has sold 130,000 units in North
America, up from the company's original forecast by 30%. Edge
was introduced in the market in December 2006, the same paper
says. Ford would be introducing a subcompact car in 2010 after
the brand will be sold in Europe and Asia also late this year.
According to the Journal, Ford's strategy to expand in Latin
America is in response to Chrysler LLC and Nissan Motor's
decision to sell small cars in the region.
Overall, Ford's Latin American market is expected to post a gain
for the fiscal year 2007, the Journal relates. Sales in the
region was up 72% to US$754 million for the first nine months of
2007.
To meet demand in the region, Ford, the Journal says, will
increase investment by $1 billion in Brazil and $160 million in
Argentina.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
in 200 markets across six continents. With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company
provides financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom. The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 19, 2007, Moody's Investors Service affirmed the long-term
ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured, and B3 probability of
default), but changed the rating outlook to Stable from Negative
and raised the company's Speculative Grade Liquidity rating to
SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit
Company's B1 senior unsecured rating, and changed the outlook to
Stable from Negative. These rating actions follow Ford's
announcement of the details of the newly ratified four-year
labor agreement with the UAW.
HERCULES INC: Moody's Reviews Ratings for Possible Upgrade
----------------------------------------------------------
Moody's Investors Service placed the Ba2 corporate family rating
and other debt ratings Hercules Incorporated on review for
possible upgrade. The reviews reflect the company's successful
efforts at debt reduction in past years and most recently in
2007. The company reduced balance sheet debt by roughly
US$200 million in 2007 (to about US$795 million) and that this
reduction, along with strong cash flows, has caused credit
metrics to improve to levels that are strong relative to the Ba2
rating, Moody' assigned a positive outlook to the company's
ratings in June of 2007 in anticipation of the company's
positive performance. At that time Moody's stated that provided
that capital expenditures remain moderate, there are no large
acquisitions and prospective dividend actions/share repurchases
are prudently sized, the company should be able to generate
retained cash flow to adjusted total debt above 20%, free cash
flow to adjusted total debt of over 10%, and a fixed charge
coverage ratio of over 4.5 times. If these metrics were
realized Moody's indicated it could reassess the appropriateness
of the Ba2 ratings after the end of 2007. The review also
reflects Moody's expectation of further modest debt reduction in
2008 and 2009, after which Moody's expects absolute debt levels
to stabilize. The review, which is expected to be completed by
the end of March of 2008, will focus on several issues. Moody's
will seek to better understand management's ongoing financial
philosophy as it relates to 1) acquisitions; 2) potential
changes in the secured structure of the company's debt along
with incremental debt reduction; and 3) uses of excess cash flow
and the future plans of returning such cash to shareholders. In
addition, Moody's will seek to understand the sustainability of
the company's strong operating performance in the face of a
potentially slowing global economy and review its asbestos
exposures to insure that the positive trends are sustainable.
On Review for Possible Upgrade:
-- Corporate Family Rating: Ba2
-- Probability of Default Rating: Ba2
-- Guaranteed Senior Secured Revolving Credit Facility due
April 2009, Baa3, LGD2, 18%
-- Guaranteed Senior Secured Term Loan B due October 2010,
Baa3, LGD2, 18%
-- 6.60% Guaranteed Senior Secured Putable Notes due 2027,
Baa3, LGD2, 18%
-- 6.75% Guaranteed Senior Subordinated Notes due 2029, Ba3,
LGD4, 61%
-- 8.00% Convertible Subordinated Debentures due 2010, B1,
LGD5, 89%
-- 6.50% Junior Subordinated Deferrable Int Debentures due
2029, B1, LGD5, 89%
-- Multiple Seniority Shelf
Outlook, Changed To Rating Under Review From Positive.
Approximately US$900 million of debt securities affected.
Headquartered in Wilmington, Delaware, Hercules Inc. (NYSE:HPC)
-- http://www.herc.com/-- manufactures and markets chemical
specialties globally for making a variety of products for home,
office and industrial markets. The company has its regional
headquarters in China and Switzerland, and a production facility
in Brazil.
TELE NORTE: Gov't Ratifying Telecoms Regulation Revision
--------------------------------------------------------
The change in telecoms regulation to allow a merger between
Brasil Telecom and Telemar Norte Leste SA would be authorized
within a month, Business News Americas reports, citing Brazilian
communications minister Helio Costa.
According to BNamericas, the final decision on the change in the
regulation depends on President Luiz Inacio Lula da Silva.
Minister Costa told news daily Correio da Bahia that Brasil
Telecom and Telemar Norte Leste SA have confirmed their merger
talks to the Brazilian communications ministry.
Brazilian telecoms regulator Anatel must ratify any change in
the regulations' text, BNamericas notes.
Minister Costa commented to BNamericas, "We are officially
receiving the information that those companies want to rearrange
their stock composition. This way, the ministry will ask Anatel
to inform which procedure we need to follow for this issue to
proceed."
BNamericas relates that the Anatel board must authorize the
change in the regulation. The board will hold a meeting after
Brazil's Carnaval celebrations from Feb. 4-6. Once Anatel
ratifies the change, the communications ministry will discuss it
with President Lula da Silva.
Meanwhile, mobile telephony firm TIM Participacoes head Mario
Cesar Pereira de Araujo told the press that Brasil Telecom's
merger with Telemar Norte won't affect international mobile
operators' investments in Brazil.
BNamericas notes that last week Mr. Araujo met with:
-- TIM controller Telecom Italia Chief Executive Officer
Franco Bernaba,
-- Telecom Italia president Gabriele Galateri di Genola,
-- Brazilian President Luiz Inacio Lula da Silva,
-- government representatives,
-- telecoms regulator Anatel, and
-- antitrust authority Cade.
"The government assured us there will be competitive isonomy and
not competitive asymmetry. Our stockholders are confident in
the country's ability to manage this process. The government
affirmed it would continue encouraging private investment in the
Brazilian telecoms market and there will not be any sort of
favoritism or protectionism. Mainly when you have public
reserves going to this deal, such as pension funds and national
bank [BNDES] reserves, there have to be guarantees this new
national company continue being national rather than sold right
after the merger," Mr. Araujo commented to BNamericas.
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.
* BRAZIL: In Talks with Iran for Caspian Sea Exploration
--------------------------------------------------------
Brazilian state-owned oil firm Petroleo Brasileiro SA aka
Petrobras is negotiating with Iran for the exploration of
deepwater in the Caspian Sea, Iran Daily reports, citing the
National Iranian Oil Company's first deputy head Mohammad Javad
Asemipour.
Iran Daily relates that the Caspian Sea has at least 32 billion
barrels of oil.
Mr. Asmipour commented to Business News Americas, "Brazilians
will become the main contractor of exploration and drilling
operations and development in Caspian oil and gas fields. The
investment in Caspian waters may reach US$400 million to US$500
million."
Iran's will begin its first oil drilling in the Caspian Sea this
week. Iran has been unable to explore fields deeper than 90
meters, Iran Daily states.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, and distributes oil and natural
gas and power to various wholesale customers and retail
distributors in Brazil. Petrobras has operations in China,
India, Japan, and Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.
As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch
said the rating outlook is stable.
===========================
C A Y M A N I S L A N D S
===========================
ALTERRA ENTERPRISES: Proofs of Claim Filing Deadline is Feb. 7
--------------------------------------------------------------
Alterra Enterprises' creditors are given until Feb. 7, 2008, to
prove their claims to Joshua Grant and Richard Gordon, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Alterra Enterprises' shareholder decided on Dec. 13, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Joshua Grant
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
BOMBAY COMPANY: Court Approves Sale of Trademarks for US$2 Mil.
---------------------------------------------------------------
The Hon. Michael Lynn of the U.S. Bankruptcy Court for the
Northern District of Texas approved the sale of Bombay Company's
trademarks, trade names and other intellectual property for
US$2 million and a 25% share of future licensing proceeds to
Bombay Brands LLC, a joint venture of Gordon Brothers Retail
Partners LLC and Hilco Merchant Resources LLC, according to
various reports.
As reported in the Troubled Company Reporter on Dec. 26, 2007,
Hilco Consumer Capital will assume day-to-day brand management
responsibilities and will immediately undertake a strategic
brand rebuilding program designed to leverage the intrinsic
value of the Bombay name. Through licensing strategies with
retailers, wholesalers and franchisees, a broad-range of new
consumer products will be created and marketed internationally.
The initial cash price offer, which was $1.25 million, increased
to US$2 million at an auction with competing bids, Bill Rochelle
of Bloomberg News reports. The buyer also consented to a
capital infusion necessary to exploit the names.
About Hilco Consumer Capital
Hilco Consumer Capital - http://www.hilcocc.com/-- was formed
in 2006 to make private equity investments in consumer brands
and build significant, additional value in them through
innovative product development, creative marketing and licensing
strategies.
HCC is a unit of The Hilco Organization --
http://www.hilcotrading.com/-- a privately-held, diversified
financial services firm specializing in appraising, purchasing,
selling, financing and enhancing the performance of tangible and
intangible business assets through a platform of 22 integrated
business units located in North America and the European Union.
About Gordon Brothers
Gordon Brothers Group -- http://www.gordonbrothers.com/-- is an
advisory, restructuring and investment firm specializing in the
retail, consumer products, real estate and industrial sectors.
Founded in 1903, Gordon Brothers provides asset valuations and
appraisals, dispositions, real estate consulting, lending and
advisory services.
About Bombay Company
Based in Fort Worth, Texas, The Bombay Company Inc., (OTC
Bulletin Board: BBAO) -- http://www.bombaycompany.com/--
designs, sources and markets a unique line of home accessories,
wall decor and furniture through 384 retail outlets and the
Internet in the U.S. and internationally, including Cayman
Islands.
The company and five of its debtor-affiliates filed for Chapter
11 protection on Sept. 20, 2007 (Bankr. N.D. Tex. Lead Case No.
07-44084). Robert D. Albergotti, Esq., John D. Penn, Esq., Ian
T. Peck, Esq., and Jason B. Binford, Esq., at Haynes and Boone,
LLP, represent the Debtors. Attorneys at Cooley, Godward,
Kronish LLP act as counsel for the Official Committee of
Unsecured Creditors. Forshey & Prostok LLP is the Committee's
local counsel. As of May 5, 2007, the Debtors listed total
assets of US$239,400,000 and total debts of US$173,400,000.
ELITEPERFORMANCE SIPS: Proofs of Claim Filing Deadline is Feb. 7
----------------------------------------------------------------
Eliteperformance Sips, Ltd.'s creditors are given until
Feb. 7, 2008, to prove their claims to Stuart K. Sybersma and
Ian A.N. Wight, 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.
Eliteperformance Sips' shareholder decided on Dec. 18, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Stuart K. Sybersma
Ian A.N. Wight
Attention: Jessica Turnbull
Deloitte
P.O. Box 1787, George Town
Grand Cayman, Cayman Islands, B.W.I.
Telephone: (345) 949 7500
Fax: (345) 949 8258
KEVIAN CAPITAL: Proofs of Claim Filing Ends on February 7
---------------------------------------------------------
Kevian Capital Fund II, Ltd. (SPC)'s creditors are given until
Feb. 7, 2008, to prove their claims to dms Corporate Services,
Ltd., the company's liquidator, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Kevian Capital's shareholders agreed on Dec. 27, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
dms Corporate Services, Ltd.
Ansbacher House, 20 Genesis Close
P.O. Box 1344, George Town
Grand Cayman KY1-1108, Cayman Islands
Contact for inquiries:
Mourant du Feu & Jeune
c/o P.O. Box 1348
Grand Cayman KY1-1108, Cayman Islands
Telephone: (+1) 345 949 4123
Fax: (+1) 345 949 4647
KEVIAN CAPITAL FUND: Proofs of Claim Filing is Until Feb. 7
-----------------------------------------------------------
Kevian Capital Fund, Ltd. (SPC)'s creditors are given until
Feb. 7, 2008, to prove their claims to dms Corporate Services,
Ltd., the company's liquidator, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Kevian Capital's shareholders agreed on Dec. 27, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
dms Corporate Services, Ltd.
Ansbacher House, 20 Genesis Close
P.O. Box 1344, George Town
Grand Cayman KY1-1108, Cayman Islands
Contact for inquiries:
Mourant du Feu & Jeune
c/o P.O. Box 1348
Grand Cayman KY1-1108, Cayman Islands
Telephone: (+1) 345 949 4123
Fax: (+1) 345 949 4647
PIMS INTERNATIONAL: Proofs of Claim Filing is Until Feb. 7
----------------------------------------------------------
PIMS International Ltd.'s creditors are given until Feb. 7,
2008, to prove their claims to MBT Trustees Ltd., the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
PIMS International's shareholder decided on Nov. 7, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
MBT Trustees Ltd.
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
Telephone: 945-8859
Fax: 949-9793/4
PIMS INTERNATIONAL: Sets Final Shareholders Meeting for Feb. 7
--------------------------------------------------------------
PIMS International Ltd. will hold its final shareholders meeting
on Feb. 7, 2008, at 12:00 p.m. at:
MBT Trustees Ltd.
3rd Floor, Piccadilly Center
Elgin Avenue, George Town
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records
of the company for a period of five years from the
dissolution of the company, after which they may
be destroyed.
PIMS International's shareholder decided on Nov. 7, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
MBT Trustees Ltd.
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
Telephone: 945-8859
Fax: 949-9793/4
PH PROPERTY: Proofs of Claim Filing Deadline is February 7
----------------------------------------------------------
PH Property Finance Cayman Corp.'s creditors are given until
Feb. 7, 2008, to prove their claims to Carlos Farjallah and
Giles Kerley, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
PH Property's shareholders agreed on Dec. 19, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Carlos Farjallah
Giles Kerley
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
SOULOR LIMITED: Proofs of Claim Filing Deadline is Feb. 7
---------------------------------------------------------
Soulor Limited's creditors are given until Feb. 7, 2008, to
prove their claims to Joshua Grant and Jan Neveril, 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.
Soulor Limited's shareholder decided on Dec. 11, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Joshua Grant
Jan Neveril
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
SUNTRUST CORE: Proofs of Claim Filing is Until Feb. 7
-----------------------------------------------------
Suntrust Core Cash Plus Fund (Cayman), Ltd.'s creditors are
given until Feb. 7, 2008, to prove their claims to Bobby Toor
and Richard Gordon, the company's liquidators, or be excluded
from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Suntrust Core's shareholders agreed on Dec. 21, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Bobby Toor
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
SUNTRUST CORE CASH: Proofs of Claim Filing Ends on Feb. 7
---------------------------------------------------------
Suntrust Core Cash Plus Master Fund's creditors are given until
Feb. 7, 2008, to prove their claims to Bobby Toor and Richard
Gordon, the company's liquidators, or be excluded from receiving
any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Suntrust Core's shareholders agreed on Dec. 21, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Bobby Toor
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
=========
C H I L E
=========
EASTMAN KODAK: Earns US$92 Million in 2007 Fourth Quarter
---------------------------------------------------------
Eastman Kodak Company reported fourth-quarter earnings from
continuing operations of US$92 million on higher year-over-year
revenues, reflecting the emergence of a new, more profitable
company.
Kodak also met or exceeded all of its key financial commitments
and strategic goals for 2007, most notably:
* Delivering an 8% increase in digital revenue
* Achieving digital earnings of US$176 million
* Net Cash Generation of US$333 million
* On a GAAP basis, for the total year, revenue declined by
3% and cash provided by operating activities from
continuing operations was US$352 million
* Aggressive entrance into new markets and product
categories, including the introduction of the KODAK All-
in-One Inkjet Printing System, KODAK digital picture
frames, KODAK InSite enterprise management software, and
the KODAK NEXPRESS S3000 Digital Production Color Press
* Completion of the company's four-year corporate
restructuring program
* Achieving targeted cost model for the year and reducing
full-year Selling, General and Administrative costs from
18.5% to 17.1% of revenue
"I am thrilled with our 2007 performance, as it is powerful
evidence that a new Kodak has emerged and is producing solid,
value-creating growth," said Antonio M. Perez, Chairman and
Chief Executive Officer, Eastman Kodak Company. "We delivered
another strong quarter, and another strong year of earnings
growth, and met or exceeded every important goal that we set for
ourselves."
"In addition, we successfully entered the US$50 billion consumer
inkjet market and exceeded our first-year printer sales goal.
What's more, third-party data indicates that Kodak is enjoying a
30% price premium over the industry average. Clearly, our
value proposition is resonating with consumers and they are
willing to pay a bit more for a Kodak printer because they know
they will save money every time they print. Consumer inkjet is
just one of several new product introductions that are receiving
positive customer response. The more I see of them, the more
optimistic I am about their success."
Kodak's digital revenue grew 15% in the fourth quarter of 2007,
driven by strong year-over-year increases in all key digital
businesses, partially offset by a decline in snapshot printing.
The company achieved US$146 million in digital earnings for the
fourth quarter, driven by an expanded product portfolio,
intellectual property arrangements, and operational
improvements, resulting in strong full-year earnings performance
across the company's digital business units. For the full year,
the company delivered US$176 million in digital earnings, a
US$189 million improvement from the prior year, significantly
outpacing a US$30 million year-over-year decline in traditional
earnings. Earnings from continuing operations before interest,
other income (charges), net, and income taxes were US$130
million for the quarter and a loss of US$230 million for the
year.
On the basis of generally accepted accounting principles, the
company reported fourth-quarter earnings from continuing
operations of US$109 million pre-tax, US$92 million after tax,
or US$0.31 per diluted share, reflecting the impact of 19
million additional shares from contingently convertible
securities. This compares with earnings of US$111 million pre-
tax, and a loss of US$15 million after tax, or US$0.05 per
share, in the year-ago period. Items of net expense impacting
comparability in the fourth quarter of 2007 totaled US$28
million after tax, or US$0.09 per share. The most significant
items were restructuring costs of US$68 million before tax and
US$44 million after tax, or US$0.14 per share, net gains on sale
of property of US$116 million before tax and US$89 million after
tax, or US$0.29 per share, impairment of an investment of US$46
million after tax, or US$0.15 per share, and various other tax-
related items totaling US$25 million, or US$0.08 per share. In
the fourth quarter of 2006, items of net expense impacting
comparability totaled US$158 million after tax, or US$0.55 per
share, primarily reflecting restructuring costs and tax
valuation allowances.
For the fourth quarter of 2007:
* Sales totaled US$3.220 billion, an increase of 4% from
US$3.106 billion in the fourth quarter of 2006. Digital
revenue totaled US$2.262 billion, a 15% increase from
US$1.974 billion in the prior-year quarter. Traditional
revenue totaled US$951 million, a 15% decline from
US$1.117 billion in the fourth quarter of 2006.
* Digital earnings for the fourth quarter improved by
US$5 million, to US$146 million this quarter, from
US$141 million in the year-ago quarter.
Other financial details:
* Gross Profit margin was 24.5% for the quarter, up from
23.8% in the year-ago period, primarily attributable to
lower costs from manufacturing footprint reductions,
intellectual property, and foreign exchange, partially
offset by increased commodity costs and price/mix impacts.
* Selling, General and Administrative expenses increased by
US$48 million from the year-ago quarter, primarily
reflecting the company's investment in advertising to
support new products, including its consumer inkjet
printing system. As a result, SG&A as a percentage of
revenue was 16%, compared with 15% in the year-ago
quarter.
* Net Cash Generation for the fourth quarter was US$1.132
billion, compared with US$905 million in the year-ago
quarter. This corresponds to net cash provided by
operating activities from continuing operations of
US$1.046 billion for the fourth quarter, compared with
US$1.002 billion in the year-ago quarter.
* The company's debt level stood at US$1.597 billion as of
Dec. 31, 2007, a US$1.181 billion reduction from the 2006
year-end debt level of US$2.778 billion.
* Kodak held US$2.947 billion in cash and cash equivalents
as of Dec. 31, 2007, an increase of US$1.478 billion from
the year-ago period.
Fourth-quarter segment sales and results from continuing
operations, before interest, taxes, and other income and charges
(earnings from operations), are as follows:
* Consumer Digital Imaging Group sales for the fourth
quarter were US$1.730 billion, an 8% increase from the
prior-year quarter. Revenues from digital products grew by
17%, driven by growth in Digital Capture and Devices,
kiosks and related media, and consumer inkjet printers.
Earnings from operations improved by US$13 million to
US$76 million, compared with US$63 million in the year-ago
quarter. This improvement was driven by an expanded
product portfolio, intellectual property arrangements, and
operational improvements in the Digital Capture and
Devices business, partially offset by costs associated
with new product introduction activities in the Inkjet
Systems business.
* Graphic Communications Group sales for the fourth quarter
were US$998 million, a 7% increase from the year-ago
quarter. Revenues from digital products grew by 12% to
US$891 million, driven by increased sales of digital
plates, NEXPRESS digital color printing presses, and
digital printing consumables. Earnings from operations
were US$33 million, compared with US$47 million in the
year-ago quarter. This earnings decline was primarily
driven by higher aluminum and other costs, the impact of
an intellectual property licensing settlement, and
decreased sales and gross profit from traditional
products.
* Film Products Group fourth-quarter sales were US$463
million, down from US$559 million in the year-ago quarter,
representing a decrease of 17%. Earnings from operations
were US$40 million, compared with US$83 million in the
year-ago quarter. These results reflect impacts from
volume and mix along with seasonal production slowdowns in
film manufacturing, some initial effects from the writers'
strike, higher silver costs, and the impact associated
with new and renewed film agreements.
Other 2007 Highlights:
* The company's loss from continuing operations for 2007 was
US$205 million, or US$0.71 per share, a US$599 million, or
US$2.09 per share improvement, from the 2006 level. The
favorable year-over-year change reflects a decrease in
restructuring charges, as the company completed the final
year of its corporate restructuring program. It also
reflects greatly improved operational performance across
all of the company's businesses as well as reduced taxes
and SG&A expenses versus the prior year.
* All of Kodak's major businesses showed improvement in
earnings from operations on a full-year basis.
Specifically, CDG earnings from operations improved by
US$148 million from 2006. GCG earnings improved from
US$100 million in the year-ago period to US$116 million in
2007. FPG earnings from operations were US$369 million in
2007, compared with US$368 million in the previous year,
and its operating margin improved to 19% for the year,
from 16% in the prior year, despite a 15% decline in
revenue.
* Net Cash Generation for the full year was US$333 million,
compared with US$365 million in 2006. This corresponds to
net cash provided by operating activities from continuing
operations of US$352 million for 2007, compared with
US$685 million in 2006.
"Our corporate restructuring is now over and Kodak is
revitalized and ready to grow," said Mr. Perez. "We have a
strong market position in a significant number of very promising
digital businesses, a competitive operating structure, a
powerful brand, and extremely valuable intellectual property.
We are a new company with a strong emphasis on sustaining
profitable growth, and the talent and resources necessary to
achieve that goal. This positions us well for strong
performance in 2008 and beyond."
About Eastman Kodak
Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE:
EK)-- http://www.kodak.com/-- develops, manufactures, and
markets digital and traditional imaging products, services, and
solutions to consumers, businesses, the graphic communications
market, the entertainment industry, professionals, healthcare
providers, and other customers.
The company has operations in Argentina, Chile, Denmark, Greece,
Jordan, Yemen, Australia, China among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 14, 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on Eastman Kodak Co. and removed
the ratings from CreditWatch, where they had been placed with
negative implications on Aug. 2, 2006. S&P said the outlook is
negative.
===================
C O S T A R I C A
===================
* COSTA RICA: Wants U.S. to Delay Free Trade Deal Effectivity
-------------------------------------------------------------
Oscar Arias, Costa Rican president has asked the United States
to postpone the start of a free-trade pact to give them a period
to submit the "parallel" laws that has been in the process
through the Legislative Assembly, Inside Costa Rica reports.
During the local leaders meeting, Mr. Arias, has noted that
Costa Rica will be the first country asking for a delay and was
remaining state in the free trade deal with the United States to
decide by popular vote, the same paper says.
Report shows that in order to strengthen state agencies under
competition and protect such items as copyright laws, Costa Rica
was committed to passing a series of laws.
According to Inside Costa Rica, the Legislature has only passed
4 of the 13 laws, a month to go before the March 1 deadline.
Inside Costa Rica states that the trade deal of Dominican
Republic, Guatemala, Honduras, Nicaragua and El Salvador has The
trade deal has been effective.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign local and foreign currency ratings on Costa Rica.
Standard & Poor's also placed a BB long-term sovereign foreign
currency rating on Costa Rica.
===================================
D O M I N I C A N R E P U B L I C
===================================
BASIC ENERGY: Completes Buy of Xterra & Lackey for US$23.3MM
------------------------------------------------------------
Basic Energy Services, Inc. has acquired all of the outstanding
capital stock of Xterra Fishing and Rental Tools Co. and
purchased substantially all of the operating assets of Lackey
Construction LLC for a total combined consideration of
US$23.3 million in cash, excluding working capital acquired.
The acquisitions are anticipated to be accretive to earnings in
2008.
Xterra Fishing located in Odessa, Texas, will further expand
Basic Energy's rental and fishing operations in the Permian
Basin market. The projected first-year revenue for this
acquisition is expected to be approximately US$14 million.
The five well service rigs obtained in the Lackey Construction
acquisition will be added to the existing fleet of workover rigs
in the North Texas portion of Basic Energy's Mid Continent
Region and are expected to add approximately US$4.5 million in
first year revenue.
President and Chief Executive Offcier, Ken Huseman stated, "The
companies acquired are excellent examples of the type of
businesses that we find attractive and continue to be available
throughout our markets. Each has excellent management and
operating personnel, modern and well maintained equipment and a
solid customer base. We look forward to the contribution of
these organizations in expanding our footprint and
capabilities."
About Basic Energy
Headquartered in Texas, USA, Basic Energy Services, Inc.,
provides a range of well site services to oil and gas drilling
and producing companies, including well servicing, fluid
services, drilling and completion services, and well site
construction services. Basic Energy has four segments: well
servicing encompasses a range of services performed with a
mobile well servicing rig; fluid services provides transport,
store and dispose of a variety of fluids; drilling and
completion services provides oil and gas operators with a
package of services, and well site construction services employs
an array of equipment and assets to provide services for the
construction and maintenance of oil and gas production
infrastructure. In March 2007, it acquired JetStar Consolidated
Holdings, Inc.
In the Dominican Republic, Basic Energy controls power companies
Cepm, Cespm and Ege Haina.
As reported on May 1, 2007, Basic Energy head Rolando Gonzalez
Bunster told Business News Americas that the company and its
Dominican Republic affiliates will construct a 35-megawatt
thermo plant in Haiti.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on domestic oilfield services
provider Basic Energy Services Inc. At the same time, Standard
& Poor's assigned its 'BB' debt rating and '1' recovery rating
to the company's proposed US$225 million revolving credit
facility. S&P said the outlook remained positive.
SMART MODULAR: Moody's Upgrades CFR to B1 with Stable Outlook
-------------------------------------------------------------
Moody's Investors Service raised the corporate family rating of
SMART Modular Technologies (WWH), Inc. to B1 from B2 with a
stable ratings outlook.
The rating upgrade reflects Moody's expectations that SMART
Modular will be able to continue its solid execution and
operating performance, which it has demonstrated over the last
two years, particularly in spite of dramatic product price
erosion in its core DRAM memory module segment. Moody's
believes that the company will be able to maintain its good
market position as a leading independent memory module supplier,
and will improve its financial leverage profile. The upgrade
also considers SMART's gross and operating margin improvements
through a more diversified product mix and the company's
emphasis on growing its non-DRAM product segments, modest free
cash flow generation and the maintenance of a good liquidity
profile.
Ratings upgraded include:
-- Corporate Family Rating to B1 from B2
-- Probability of Default Rating to B1 from B2
-- US$81 Million Senior Secured second lien notes to Ba3
(LGD-3, 38%) from B1 (LGD-3, 34%)
Approximately US$81 million of rated debt affected.
The rating upgrade takes into consideration the company's
enhanced credit protection measures and focus on financial
leverage improvements through EBITDA expansion and moderate free
cash flow generation, which Moody's expects will be applied to
debt reduction. As of Nov. 30, 2007, SMART Modular's adjusted
debt of US$95 million relative to its LTM adjusted EBITDA of
US$84 million results in leverage of 1.1 times as compared to
1.5 times in Fiscal Year 2006. Interest coverage, as measured
by adjusted EBITDA to interest expense has improved to 7.6
times, which is comparable to the mean / median interest
coverage level of 6.9 times for Moody's B1-rated technology peer
group. Additionally, SMART's free cash flow relative to debt
was 17.9% for LTM November 2007, which is also strong for the B1
rating range. As of Nov. 30, 2007, the company had US$113
million of cash and cash equivalents.
Moody's notes that SMART is challenged by:
1) a very volatile, cyclical, and competitive industry
characterized by rapid technological changes, short
product life cycles, and wide fluctuations in product
supply and demand;
2) significant customer concentration with its top ten
customers constituting approximately 77% of its Fsical
Year 2007 revenues with Hewlett Packard and Cisco
representing 48% and 13% of 2007 revenues, respectively;
3) above average exposure to downturns in corporate
technology spending; and
4) the potential for further pricing pressure in the
company's core DRAM memory segment resulting in revenues
and gross profit decline.
The stable outlook reflects Moody's expectation that SMART will
be able to continue to effectively execute its manufacturing and
technology roadmap including continued market penetration of its
high-end, higher density DRAM modules, which carry higher ASPs
and could help improve profitability and cash flow.
About SMART Modular
Headquartered in Fremont, California and incorporated in the
Cayman Islands, SMART Modular Technologies (WWH) Inc. (Nasdaq:
SMOD) -- http://www.smartm.com/-- is an independent
manufacturer of specialty and standard DRAM and Flash memory
products, embedded computing subsystems, and TFT-LCD display
products that are sold to OEMs.
The company has design centers in California, South Korea and
Massachusetts. Its manufacturing facilities are located in
California, Malaysia, Brazil, Dominican Republic and Puerto
Rico.
=============
E C U A D O R
=============
PETROECUADOR: Output at 257,069/day in First 11 Months of 2007
--------------------------------------------------------------
Ecuadorian state-run oil firm Petroecuador's average oil
production, excluding shared production with private companies,
averaged 257,069 barrels a day in the first 11 months of 2007,
compared to the same period in 2006, Dow Jones Newswires
reports.
According to Dow Jones, data for Petroecuador include oil output
from oil fields confiscated from US oil firm Occidental
Petroleum Corp.
Ecuador's average oil output declined 5% to 509,119 barrels per
day in the first 11 months of 2007, from 537,949 barrels per day
in the same period in 2006, Dow Jones says, citing the
Ecuadorian central bank.
Dow Jones relates that the nation's total oil production dropped
to 170.05 million barrels in the first 11 months of 2007,
compared to 179.68 million barrels in the same period in 2006.
Private oil firm's production averaged 252,050 barrels a day in
the first 11 months of 2007, Dow Jones states.
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
PETROECUADOR: Firms Have 3 Options in Contract Renegotiation
------------------------------------------------------------
Ecuadorian President Rafael Correa said in a statement that oil
firms have three options they can discuss with the government
for the revision of their contracts with state-run oil firm
Petroecuador.
Business News Americas relates that these are the options:
-- operation under decree 991, which stipulates the firms
to give 99% of extraordinary oil profits to the state;
-- conversion of participation contracts into service
provider contracts through which companies would be paid a
production fee and reimbursed for investment costs; and
-- pulling up stakes and leaving Ecuador.
President Correa commented to BNamericas, "We want to move
toward special service contracts, called service provider deals,
where we pay US$10 for every barrel they have -- which is open
to renegotiation obviously -- and the rest stays with us. How
much have they invested -- US$200 million? They can have their
US$200mn and be on their way. [State oil company] Petroecuador
will exploit the field."
The companies have until March 8 to transfer to service provider
contracts. About 19 oil contracts will expire from 2010-24,
BNamericas states.
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Calls for Improved Service Quality Regulations
---------------------------------------------------------------
British Airways Plc is urging the Civil Aviation Authority to
stop BAA Ltd. delaying the introduction of improved customer
service quality targets at Heathrow by up to two years.
The airline is providing evidence to the CAA at oral hearings on
the current BAA airport charges review that start on Monday,
Jan. 28, 2008.
As part of the current review, the Competition Commission
recommended that the CAA strengthened BAA's service quality
regulations in key areas such as the central security search
area, security control posts and transfer search areas.
BAA wants the delay to enable action plans and measurement
systems to be set up before many of the new targets are
introduced and to fund additional work to deliver acceptable
service standards in these areas.
"It appears that BAA is paying lip service to customers' needs
and will only take real steps to improve service quality when
forced to do so by the regulators. For passengers to continue
to experience the Heathrow Hassle for another two years because
BAA hasn't got its act together is unacceptable," Paul Ellis,
British Airways' general manager airport policy and
infrastructure, said. "Many of the areas identified as needing
better targets affect flight punctuality. Delays at security
control posts mean that, on occasions, catering is late being
loaded on the aircraft and even our flight and cabin crew don't
get to the aircraft on time. Airlines have been highlighting
punctuality problems to BAA for more than two years so it's had
ample time to plan for improved performance levels and invest in
the infrastructure necessary to deliver them. We believe that
the technology exists now to develop measurement systems and
airlines have already made proposals to BAA on ways to reduce
delays."
The CAA as regulator has to decide whether or not to allow BAA
to delay the introduction of new service quality regulations.
"The CAA's role is to create an environment where a monopoly
supplier is forced to act in a competitive way. A competitive
company wouldn't be able to rely on previous failures to invest
as an excuse for not being made accountable for service quality
improvements," Mr. Ellis said.
About BAA
Headquartered in London, United Kingdom, BAA Ltd. (fka BAA plc)
-- http://www.baa.com/-- owns and operates seven airports in
the United Kingdom, including Heathrow, the world's busiest
international airport, and Budapest Airport, serving 700
destinations by around 300 airlines.
In June 2006, BAA was bought by a consortium led by Grupo
Ferrovial SA, the Spanish construction company. Ferrovial is
one of the world's leading construction groups, specializing in
four strategic lines of business - airports, construction,
transport infrastructure and services - throughout Spain, the
U.K., Portugal and nine other countries in Europe and the rest
of the world. The company has around 89,000 employees and a net
revenue of EUR12.4 billion.
About British Airways
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
As of Jan. 2, 2008, British Airways Plc carries a senior
unsecured debt rating of Ba1 from Moody's Investors' Service
with a stable outlook.
=========
H A I T I
=========
DYNCORP INT'L: Earns US$38.1 Million in Full Year Ended Dec. 28
---------------------------------------------------------------
DynCorp International Inc. reported US$11.9 million of net
income for the three months ended Dec. 28, 2007, compared to
US$11.5 million of net income for the same period in 2006.
For the full year ended Dec. 28, 2007, the company earned
US$38.1 million compared to net income of US$8 million in 2006.
Third Quarter 2008 Vs.
Third Quarter 2007 Results
Revenue for the third quarter of fiscal 2008 was US$523.1
million, a 1.1% increase over revenue of US$517.5 million for
the third quarter of fiscal 2007. Revenue for the Government
Services (GS) segment, which represented 65.7% of company
revenue, increased to US$343.6 million for the third quarter of
fiscal 2008, up US$1.4 million or 0.4% from the third quarter of
fiscal 2007. GS revenue grew through additional work supporting
the International Narcotics Air Wing program and peacekeeping
activities in Africa. This was offset by the conclusion of
construction and camp support task orders in Iraq. Revenue for
the Maintenance and Technical Support Services segment, which
represented 34.3% of Company revenue, increased to US$179.5
million for the third quarter of fiscal 2008, up US$4.2 million
or 2.4% from the third quarter of fiscal 2007. MTSS revenue
grew primarily through new business in the aviation and
maintenance business area, partially offset by reduced manning
under the Contract Field Teams program.
Operating income was US$30.8 million or 5.9% of revenue in the
third quarter of fiscal 2008, compared to US$32.3 million or
6.2% of revenue in the third quarter of fiscal 2007. Operating
income decreased primarily due to an increase in selling,
general and administrative expenses. Factors contributing to
the increased SG&A included:
(i) costs incurred in fiscal 2008 related to Sarbanes-Oxley
compliance preparation;
(ii) consulting costs related to proposal activity; and
(iii) general SG&A costs necessary to support the current and
anticipated growth of the company's business.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) in the third quarter of fiscal 2008 decreased 1.3% to
US$44.3 million or 8.5% of revenue, compared to US$44.9 million
or 8.7% of revenue in the third quarter of fiscal 2007. The
decrease is primarily due to the previously discussed decrease
in operating income.
Earnings Per Share increased to US$0.21 in the third quarter of
fiscal 2008 from US$0.20 in the third quarter of fiscal 2007.
EPS in the third quarter of fiscal 2008 includes the favorable
impact of lower interest expense, higher earnings from
affiliates, higher other income and a lower effective income tax
rate, offset by the previously discussed decrease in operating
income.
Year-to-Date Results
Revenue for the first nine months of fiscal 2008 was US$1,566.9
million, a 2.4% increase over revenue of US$1,529.9 million for
the first nine months of fiscal 2007. Revenue for the GS
segment increased to US$1,026.8 million for the first nine
months of fiscal 2008, up US$8.6 million or approximately 1.0%
from the first nine months of fiscal 2007. GS revenue grew
principally as a result of increased work supporting the
International Narcotics Air Wing program, offset by the
conclusion of construction camp support task orders in Iraq and
the conclusion of protective services task orders. Revenue for
the MTSS segment for the first nine months of fiscal 2008
increased to US$540.1 million, up US$28.4 million or 5.5% from
the first nine months of fiscal 2007. MTSS revenue grew through
increased overhauls on engines and propellers performed under
the Life Cycle Contractor Support program, increased logistics
support services provided to the U.S. Air Force C-21 fleet, and
new business in the aviation and maintenance business area.
This was partially offset by reduced manning under the Contract
Field Teams program.
Operating income increased US$26.4 million or 37.4% to US$97.0
million or 6.2% of revenue for the first nine months of fiscal
2008, compared to US$70.6 million or 4.6% of revenue for the
first nine months of fiscal 2007. The increase in operating
income, both in dollars and as a percentage of revenue, was
primarily due to increased revenue volumes, improved contract
performance, lower depreciation and amortization expense and the
elimination of certain one-time costs of US$17.9 million that
were incurred during the first nine months of fiscal 2007.
EBITDA for the first nine months of fiscal 2008 increased
US$27.6 million or 25.6% to US$135.3 million or 8.6% of revenue,
compared to US$107.7 million or 7.0% of revenue for the first
nine months of fiscal 2007. The increase is due to the
previously discussed increase in operating income in fiscal
2008, excluding the decrease in depreciation and amortization
expense.
EPS increased to US$0.67 for the first nine months of fiscal
2008 compared to EPS of US$0.15 for the first nine months of
fiscal 2007. EPS for the first nine months of fiscal 2008
benefited from the previously discussed higher operating income,
higher earnings from affiliates, higher interest income and
lower interest expense, offset by higher weighted average
outstanding shares compared to the first nine months of fiscal
2007 due to the Company's initial public offering in May of
2006. EPS for the first nine months of fiscal 2007, on an after
tax basis, included the unfavorable impact of US$0.22 per share
of non-recurring expenses associated with the company's initial
public offering and US$0.21 per share of the previously
referenced one-time costs.
Cash used by operations was US$49.3 million for the first nine
months of fiscal 2008 compared to cash provided by operations of
US$45.8 million for the first nine months of fiscal 2007. The
cash used by operating activities in the nine months ended
Dec. 28, 2007 was primarily due to unfavorable conditions
relating to working capital, specifically accounts receivable.
The increase in the accounts receivable balance was due to the
temporary delay in cash collections and in receiving executed
contract modifications from the Department of State, primarily
due to accounting, process and system changes within the DoS.
As a point of reference, as of Dec. 28, 2007, approximately 68%
of the company's accounts receivable balance was due from the
DoS. As a consequence, the company's Days Sales Outstanding at
Dec. 28, 2007 was 92 days an increase from 77 days at
Dec. 29, 2006. The company is working diligently with DoS to
correct this problem, but many of the actions necessary are
internal to the customer.
Total debt was US$607.4 million at Dec. 28, 2007, a reduction of
US$23.6 million from March 30, 2007. This reduction is
primarily due to an excess cash flow payment of US$34.6 million
required by the terms of our credit agreement, offset by US$13.5
million borrowed under our revolving credit facility.
Backlog as of Dec. 28, 2007 was US$6.3 billion. Included in this
total is US$3.5 billion from the linguist and translation
services contract awarded by the U.S. Army Intelligence and
Security Command to Global Linguist Solutions LLC, a joint
venture of DynCorp International and McNeil Technologies. The
five-year contract, with a maximum value of US$4.6 billion, was
originally awarded in December 2006. The Army terminated the
contract for convenience after the Government Accountability
Office sustained the incumbent's original protest. INSCOM
requested and received revised proposals and again awarded the
contract to GLS. The incumbent protested this second award and
the Army decided to take corrective action, resulting in
dismissal of the second protest. Currently, the Army is
implementing a corrective action plan which will result in a new
award decision. Our backlog and estimated remaining contract
value metrics may require future adjustment depending on the
outcome of this new award decision.
Fiscal 2008 Guidance
The company is revising its financial guidance for the fiscal
year ending March 28, 2008, based upon current outlook. This
guidance excludes the previously discussed INSCOM contract.
About Dyncorp.
DynCorp International Inc. -- http://www.dyn-intl.com/-- (NYSE:
DCP) through its operating company DynCorp International LLC, is
a provider of specialized mission-critical technical services,
mostly to civilian and military government agencies. It
operates major programs in law enforcement training and support,
security services, base operations, aviation services and
operations, and logistics support worldwide. Headquartered in
Falls Church, Virginia, DynCorp International LLC has
approximately 14,600 employees worldwide including Haiti.
* * *
DynCorp still carries Standard and Poor's BB- rating assigned on
June 15, 2006. S&P said the outlook is stable.
=============
J A M A I C A
=============
NAT'L COMMERCIAL: Small Firms Complain of Bank's High Rates
-----------------------------------------------------------
The Jamaica Gleaner reports that small and medium-sized
enterprises have complained that the National Commercial Bank
Jamaica Limited's high interest rates undermined the viability
of these businesses.
According to The Gleaner, the National Commercial promised to do
something about the problem.
The Gleaner relates that National Commercial's assistant general
manager Bernadette Barrow, who is responsible for the bank's
small and medium enterprise division, explained to the
operators, "You are all familiar with the NIF (National
Insurance Fund) facility that was announced sometime last year.
NCB [National Commercial Bank] will be participating in that
program and we will be able to offer this to our existing
customers."
The facility is the J$1-billion revolving fund, The Gleaner
notes. The National Commercial will use money borrowed from the
NIF to provide small and micro enterprises soft loans -- capped
at J$5 million, with 10% interest over four years.
Ms. Barrow admitted to The Gleaner that the NIF facility is
limited. "We will be looking at introducing a pool of funds at
single-digit Jamaican dollars interest rate," Ms. Barrow told
The Gleaner.
The National Commercial regularly reviewed the rates offered to
its clients. The customers should explore other investment
vehicles that offer higher returns, The Gleaner states, citing
the bank's retail banking regional manager Christopher Denny.
Headquartered in Kingston, Jamaica, the National Commercial Bank
Jamaica Limited -- http://www.jncb.com/-- provides commercial
and retail banking, wealth management services. The company's
services include personal banking, business banking, mortgage
loans, wealth management and insurance services. Founded in
1977, the bank primarily operates in West Indies and the UK.
* * *
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 at 'B+'; short-term
foreign and local currency rating at 'B'; individual at 'D'; and
support at 4.
The rating outlook on the bank's ratings is stable, in line with
Fitch's view of the sovereign's creditworthiness.
NATIONAL COMMERCIAL: Court Extends Olint's Injunction
-----------------------------------------------------
The Supreme Court of Jamaica has granted alternative investment
scheme Olint an extension against the National Commercial Bank
Jamaica Limited, Radio Jamaica reports.
According to Radio Jamaica, the injunction prevents the National
Commercial from closing Olint's accounts.
Radio Jamaica notes that High Court Judge Roy Jones extended the
injunction until Feb. 15. Olint took out an injunction against
the National Commercial on Jan. 11.
The National Commercial had decided to close Olint's accounts,
alleging that the investment scheme is an unregulated company
operating in breach of the Securities Act.
The National Commercial's legal representative Dave Garcia told
RJR News that the bank will heed to the court's ruling.
Headquartered in Kingston, Jamaica, the National Commercial Bank
Jamaica Limited -- http://www.jncb.com/-- provides commercial
and retail banking, wealth management services. The company's
services include personal banking, business banking, mortgage
loans, wealth management and insurance services. Founded in
1977, the bank primarily operates in West Indies and the UK.
* * *
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 at 'B+'; short-term
foreign and local currency rating at 'B'; individual at 'D'; and
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
===========
BANCOPPEL SA: Moody's Assigns Preliminary Low-B Ratings
-------------------------------------------------------
Moody's Investors Service has assigned a bank financial strength
rating of E+ to BanCoppel S.A. At the same time, Moody's
assigned a long- and short-term global local currency deposit
ratings of Ba2/Not Prime, respectively. The bank was also
assigned a foreign currency deposit rating of Ba2/Not Prime.
Moody's also assigned long- and short-term Mexican National
Scale ratings of A2.mx / MX-2, respectively. All these ratings
have stable outlooks.
According to Moody's, the BFSR of E+ reflects the challenges
inherent to a recently created bank -- Bancoppel was established
in May 2007. Those include the developing banking business and
the operating losses common to a start up, as well as the still
seasoning credit underwriting and risk management practices.
The bank is challenged to generate sustainable high-quality
earnings and to further establish its market position, both in
deposits and loans, and particularly in credit cards, which is
the bank's main targeted product.
Moody's also noted the bank's closely-held, family-based
ownership structure and its limited business scope as important
credit challenges. The high competition on BanCoppel's core
product -- credit cards -- also challenges its developing
franchise and thus the BFSR.
The bank's Ba2 GLC deposit rating incorporates the benefits
drawn from being part of Grupo Coppel -- which ranks among
Mexico's largest department store chains catering to low and
medium income demographics with an integrated consumer finance
offering. These benefits stem from the group's strong brand
name as well as its broad client base, infrastructure, and
expertise in lending to the low income segment of the
population. In Moody's view, BanCoppel complements the group's
business strategy as a provider of a broad array of financial
products while leveraging Grupo Coppel's existing network.
These ratings were assigned:
-- Bank Financial Strength Rating: E+
-- Global Local Currency Deposits, long term: Ba2
-- Global Local Currency Deposits, short term: Not Prime
-- Foreign Currency deposits, long term: Ba2
-- Foreign Currency deposits, short term: Not Prime
-- Mexican National Scale rating, long term: A2.mx
-- Mexican National Scale rating, short term: MX-2
Outlook: Stable
BanCoppel SA is headquartered in Mexico City. As of November
2007, the bank reported MXN464 million in assets.
CLEAR CHANNEL: Pending US$19B Buyout Unaffected by Market Frets
---------------------------------------------------------------
Private investment firms, Thomas H. Lee Partners LP and Bain
Capital Partners LLC, remained undaunted in their plans to buy
Clear Channel Communications Inc. for $39.20 per share amid
market's worries, various reports relate.
Days before, investors were stirred when the buyers refused to
comment on the pending buyout deal worth around $19.5 billion
that led to speculation that deal will not push through, reports
say.
THL co-president Anthony DiNovi cleared out the issue at
Tuesday's conference by explaining he would violate Securities
and Exchange Commission rules if he commented on the pending
deal, reports reveal.
Some news disclose that the buyout firms provided personnel to
Clear Channel to help execute steps to reduce expenses. This
report led investors to believe that the would-be buyers have
not given up, according to the report.
Clear Channel told reporters Tuesday that the pending deal will
be completed by March 2008, as previously planned.
FCC Publication on the Sale Deal
The Federal Communications Commission published in its Web site
that Clear Channel Communications Inc., Thomas H. Lee Equity
Fund VI LP and Bain Capital (CC) IX LP have jointly submitted
applications to the Commission. The applications seek consent
to transfer control of certain subsidiaries of Clear Channel
that are the holders of various Commission licenses and other
authorizations. Clear Channel, through its subsidiaries,
controls 1172 broadcast radio stations and 35 broadcast
television stations. The applications seek Commission consent
to the proposed transfer of control of Clear Channel from its
shareholders to the Transferees. After the transfer, the
company would continue to operate under the name "Clear Channel
Communications Inc." under the control of the Transferees.
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
Jan. 30, 2008, Standard & Poor's Ratings Services said its
ratings on Clear Channel Communications Inc., including the 'B+'
corporate credit rating, remain on CreditWatch with negative
implications. S&P originally placed them on CreditWatch on
Oct. 26, 2006, following the company's announcement that it was
exploring strategic alternatives to enhance shareholder value.
DURA AUTOMOTIVE: Wants To Sell 9 Properties to IRG for US$19.2MM
----------------------------------------------------------------
Dura Automotive Systems Inc. and its debtor-affiliates ask
permission from the U.S. Bankruptcy Court for the District of
Delaware to sell to Industrial Realty Group, LLC, real property
located at:
-- 9444 Florida Mining Boulevard East, Jacksonville, Florida
32257,
-- 617 Douro Street, Stratford, Ontario, Canada,
-- 322 East Bridge Street, Brownstown, Indiana,
-- 800 North College Street, Fulton, Kentucky,
-- 132 Ferro Road, Pikeville, Tennessee,
-- 1775 East U,S, 20, LaGrange, Indiana,
-- 5 Industrial Loop, Hannibal, Missouri,
-- 345 Ecclestone Road, Bracebridge, Ontario, Canada, and
-- 445 Helm Street, Brookfield, Missouri,
Dura Operating Corp. and its affiliates seek to sell the
Property Portfolio to IRG free and clear of all liens, claims,
encumbrances, and other interests.
The Debtors also seek the Court's permission to pay broker fees
in connection with the Sale.
Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, relates that over a period of
three years, each of the properties in the Property Portfolio
was individually marketed by the Debtors and Colliers
International, the Debtors' exclusive real estate broker for the
properties, including listing on national multi-listing sites,
municipal and regional economic development Web sites, and
through direct canvassing by local brokers of local businesses,
investors and developers within a radius of approximately 100
miles of each property.
Starting May 2007, the Debtors and Colliers International
marketed the Property Portfolio as a whole to certain developers
and investors who had previously expressed interest in
purchasing similar rural industrial properties. IRG was one of
the parties contacted by Colliers International, on the Debtors'
behalf, and was the only party to submit an offer for the
Property Portfolio.
Between August and December 2007, the Debtors conducted arm's-
length negotiations with IRG. As a result of the negotiations,
IRG agreed to material improvements in the lease terms under the
purchase and sale agreements, resulting in an additional benefit
to the Debtors' estates of approximately US$900,000.
IRG submitted a written offer on Sept. 7, 2007. When DSN
Holdings, Inc., the original purchaser of the Jacksonville
Property, determined not to proceed to closing, the Debtors
offered to sell the property to IRG for the same purchase price
of US$8,400,000 and on substantially similar terms.
The Debtors believe the purchase price offered by IRG for the
Property Portfolio is both fair and favorable to their estates
based on:
(a) appraisal information provided by Gordon Schreur,
director of AlixPartners, LLP;
(b) the willingness of IRG to lease certain of the facilities
to the Debtors on a short-term basis at a competitive
rate to the Debtors while the Debtors wind down remaining
operations at those locations; and
(c) the fact that IRG is willing to purchase all of the
properties in a single transaction, which will reduce the
costs associated with selling the Property Portfolio.
The material terms of the Purchase and Sale Agreements signed by
the parties are:
Term Description
---- -----------
Purchase Price US$19,200,000 -- US$8,400,000 for the
Jacksonville Property, and US$10,800,000
for the remainder of the Property
Portfolio.
Escrow Deposit US$100,000 for the Jacksonville
Property, and US$300,000 for the
remainder of the Property Portfolio.
Seller Customary representations and warranties
Representations for an "as is" sale.
and Warranties
Inspection Period 45 days.
Purchaser's Satisfactory completion of due
Conditions diligence.
Precedent to
Closing
Mutual Conditions Entry of Bankruptcy Court order
Precedent to approving Sale.
Closing
Timing of Closing 30 days after the end of the inspection
period.
Interim Short-term leases of property at 800
Short-Term Leases North College Street, Fulton, Kentucky,
322 East Bridge Street, Brownstown,
Indiana, and Jacksonville Property.
About DURA Automotive
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan and
Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities. (Dura Automotive
Bankruptcy News, Issue No. 44; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
DURA AUTOMOTIVE: Jacksonville Property Buyer Withdraws Offer
------------------------------------------------------------
Dura Automotive Systems Inc. and its debtor-affiliates have
withdrawn their request to sell property located at 9444 Florida
Mining Boulevard East, in Jacksonville, Florida, to DSN
Holdings, Inc.
Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, relates that DSN determined not
to proceed to closing.
The Debtors now intend to sell the Jacksonville Property at the
same purchase price of US$8,400,000 to Industrial Realty Group,
LLC.
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan and
Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of
July 2, 2006, the Debtor had US$1,993,178,000 in total assets
and US$1,730,758,000 in total liabilities. (Dura Automotive
Bankruptcy News, Issue No. 44; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
HSBC MEXICO: Plans Issue of MXN7 Billion of Bonds
-------------------------------------------------
Bloomberg News reports that HSBC Mexico SA, the local unit of
HSBC Holdings Plc, has plans to sell up to MXN7 billion (US$645
million) of bonds.
The same report adds that the company's plan incorporates
repackaging loan payments from French company Dexia SA.
Proceeds from the sale will be used to purchase the rights to
securitize the Dexia loan and the right to receive payments on
the debt, Bloomberg explains.
HSBC Mexico, the fourth largest banking franchise in Mexico, had
total assets of around US$23.8 billion at March 2006.
* * *
To date, HSBC Mexico carries Moody's B1 issuer default rating
and long-term corporate rating.
KRONOS INC: Discloses New Trails in Workforce Management
--------------------------------------------------------
Kronos(R) Incorporated is redefining how organizations large and
small manage their workforce. Organizations across a broad
spectrum of industries are choosing Kronos for its proven
ability to reduce costs, increase productivity, improve employee
satisfaction, and ultimately enhance the level of service they
provide.
According to a report published this month by AMR Research,
"After streamlining and automating ERP and the supply chain, one
of the last major business process frontiers left for
optimization is the lifecycle of employee engagement. Many
organizations are realizing their people are the source of the
innovation they seek for competitive advantage, yet they have
neglected and isolated the procedures, policies, and processes
to attract and retain them."
As testament to the potential of this major business process
frontier, during the first quarter of Fiscal 2008, Kronos
secured and/or renewed contracts with organizations around the
world such as:
* Aramark China, provider of food, hospitality, facility
management services, and high-quality uniform and work
apparel
* Cardinal Health System, a regional integrated network
providing a full range of health services
* Costco, the largest wholesale club operator in the U.S.
* George Weston Foods, one of Australia's largest food
manufacturers
* The Golden Nugget, a luxury casino and resort on Fremont
Street in Las Vegas
* Gottschalks, a regional department store chain in
California
* Gundersen Lutheran Health System, one of the campuses for
the University of Wisconsin-Madison Medical School and
School of Nursing
* Hortimax, a leading provider of solutions for professional
greenhouse companies worldwide
* IKEA, leading home furnishing retailer
* Jamba Juice, leader in healthy blended beverages, juices,
and good-for-you snacks
* Northwestern University, one of the leading universities
in the U.S.
* Sheetz, one of the U.S.'s fastest-growing family-owned and
operated convenience store chains
* Wesley Mission Brisbane, provider of innovative and
quality aged care services in Australia
* Winegardner & Hammons, a full-service hotel management
company
Once again extending its impressive record of revenue growth and
profitability, first quarter Fiscal 2008 revenues grew to
US$165.2 million. Earnings before interest, tax, and
amortization rose 22 percent to US$23.3 million. Kronos' first
quarter Fiscal 2008 results mark the company's 112th consecutive
quarter of year-over-year revenue growth and 83rd consecutive
quarter of EBITA profitability.
"Organizations choose Kronos because of our deep-rooted
expertise in managing the workforce. With tens of thousands of
customers, we have more experience solving workforce-related
challenges than many other vendors combined. In fact, during
the quarter, we celebrated our 30th anniversary in business,"
said Aron Ain, Kronos chief executive officer.
"But we're not resting on our laurels. This year, we will build
upon our undisputed market leadership in workforce management.
We're off to a great start, having already shipped nearly three
million Workforce Central(R) 6 employee licenses since
the suite became available in June. This year, in the area of
talent management, we will help organizations with a high
concentration of field-based employees to recruit and retain a
high-quality workforce. To that end, we extended our
market-leading position in the first quarter by acquiring Deploy
Solutions. Our third strategic goal is to continue our global
expansion by targeting new markets and serving the workforce
management needs of multinational organizations. We're pleased
to report that our first quarter international sales reached an
all-time high."
Headquartered in Chelmsford, Mass., Kronos Inc. --
http://www.kronos.com/-- provides a suite of solutions that
automate employee-centric processes, as well as tools to
optimize the workforce. It provides workforce management
software, including time and attendance software and talent
management (recruiting) software. The company offers its
products primarily in the United States, Canada, Mexico, the
United Kingdom, Australia, and New Zealand.
The company posts about US$617 million of revenues for the
twelve months ended March 31, 2007.
As reported in the Troubled Company Reporter-Latin America on
May 18, 2007, Moody's Investors Service assigned Kronos, Inc. a
first time B2 corporate family rating and a stable rating
outlook. Moody's also assigned a first time Ba3 rating to the
company's:
-- first lien credit facilities (US$665 million term loan,
due 2014, and US$60 million revolving credit facility,
expires 2013); and
-- a Caa1 rating to its US$390 million second lien term loan,
due 2015.
US STEEL: Earnings Drop to $35 Mil. in Quarter Ended December 31
----------------------------------------------------------------
U.S. Steel Corporation reported net income of US$35 million in
fourth quarter 2007, compared to third quarter 2007 net income
of US$269 million and fourth quarter 2006 net income of US$297
million.
Fourth quarter 2007 net income was reduced by US$117 million due
to inventory transition effects and a workforce reduction
charge.
For full-year 2007, U.S. Steel reported a net income of
US$879 million, which was reduced by US$158 million, from
inventory transition effects, a workforce reduction charge,
early debt redemption expense and several discrete tax charges.
Full-year 2006 net income was US$1.374 billion.
"This past year was an important period of growth for our
company as we completed major acquisitions in both our flat-
rolled and tubular businesses and commissioned our new
automotive galvanizing line in Europe," John P. Surma, U.S.
Steel Chairman and CEO, said. "We are making steady progress
with integration activities on both acquisitions, and we still
expect to achieve the anticipated synergies."
The company reported fourth quarter 2007 income from operations
of US$116 million, compared with income from operations of
US$360 million in the third quarter of 2007 and US$341 million
in the fourth quarter of 2006. For the year 2007, income from
operations was US$1,213 million versus income from operations of
US$1,785 million for the year 2006.
Other items not allocated to segments in the fourth quarter of
2007 consisted of a US$69 million pre-tax charge related to
inventory transition effects after the two major acquisitions
and a US$57 million pre-tax charge resulting from a voluntary
early retirement program at U. S. Steel Kosice. These items
decreased fourth quarter 2007 net income by US$117 million.
In the third quarter of 2007, a US$27 million pre-tax charge
related to inventory acquired in the Lone Star acquisition was
not allocated to segments, and the tax provision included
several discrete charges totaling US$11 million. These items
reduced third quarter 2007 net income by US$28 million.
In the fourth quarter of 2006, net interest and other financial
costs included a US$32 million pre-tax charge related to the
early redemption of debt. This item and other items not
allocated to segments decreased net income by US$33 million.
Additional Fourth Quarter 2007 Items
In December 2007, U. S. Steel and the United Steelworkers
agreed that U. S. Steel will provide health care and life
insurance benefits to certain former National Steel employees
and their eligible dependents under a U. S. Steel insurance
plan, using funds that had been accrued based on a provision of
the 2003 Basic Labor Agreement. Funds totaling US$468 million
were contributed to the company's trust for retiree health care
and life insurance in December.
As a result of this agreement, its other postretirement benefits
obligation increased by US$314 million. While a funding
obligation continues through the Aug. 31, 2008, expiration of
the 2003 Basic Labor Agreement, the profit-based expense has
been eliminated beginning with the fourth quarter of 2007 as
reflected in "retiree benefit expenses."
Net interest and other financial costs increased by US$22
million in the fourth quarter of 2007 compared to the third
quarter, mainly reflecting interest expense resulting from debt
incurred to fund the Stelco acquisition.
The company's effective tax rate for the year was higher than
projected at the end of the third quarter as a result of the
inclusion of USSC and a change in the profile of global
earnings. As a result, the tax provision in the fourth quarter
included approximately US$20 million to apply this higher tax
rate to income for the prior three quarters.
At Dec. 31, 2007, the company's balance sheet showed total
assets of US$15.6 billion, total liabilities of US$10.07 billion
and total stockholders' equity of US$5.53 billion.
Common Stock Repurchase Program/Dividend Payment
The company repurchased 295,000 shares of U. S. Steel common
stock for US$30 million during the fourth quarter, bringing
total repurchases to 14.3 million shares for US$812 million
since the repurchase program was originally authorized in July
2005. As of Dec. 31, 2007, 6.5 million shares remained
authorized for repurchase under its stock repurchase program.
The board of directors declared a dividend of 25 cents per share
on U. S. Steel Common Stock, an increase of 5 cents per share.
The dividend is payable March 10, 2008, to stockholders of
record at the close of business Feb. 13, 2008.
About United States Steel Corporation
Headquartered in Pittsburgh, Pennsylvania, United States Steel
Corporation (NYSE: X) -- http://www.ussteel.com/-- manufactures
a wide variety of steel sheet, tubular and tin products; coke,
and taconite pellets; and has a worldwide annual raw steel
capability of 26.8 million net tons. U.S. Steel's domestic
primary steel operations are: Gary Works in Gary, Indiana; Great
Lakes Works in Ecorse and River Rouge, Michigan; Mon Valley
Works, which includes the Edgar Thomson and Irvin plants, near
Pittsburgh and Fairless Works near Philadelphia, Pennsylvania;
Granite City Works in Granite City, Illinois; Fairfield Works
near Birmingham, Alabama; Midwest Plant in Portage, Indiana; and
East Chicago Tin in East Chicago, Indiana. The company also
operates two seamless tubular mills, Lorain Tubular Operations
in Lorain, Ohio; and Fairfield Tubular Operations near
Birmingham, Alabama.
U. S. Steel produces coke at Clairton Works near Pittsburgh, at
Gary Works and Granite City Works. On Northern Minnesota's
Mesabi Iron Range, U.S. Steel's iron ore mining and taconite
pellet operations, Minnesota Taconite and Keewatin Taconite,
support the steelmaking effort, and its subsidiary ProCoil
Company provides steel distribution and processing services.
U.S. Steel's steelmaking subsidiaries U.S. Steel Kosice, s.r.o.,
in Kosice, Slovakia and U.S. Steel Serbia, d.o.o, in Sabac and
Smederevo, Serbia. Acero Prime, the company's joint venture
with Feralloy Mexico, S.R.L. de C.V. and Intacero de Mexico,
S.A. de C.V., provides Mexico's automotive and appliance
manufacturers with total supply chain management services
through its slitting and warehousing facility in San Luis Potosi
and its warehouse in Ramos Arizpe.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2007, Standard & Poor's Ratings Services assigned its
'BB+' senior unsecured rating to the proposed offering of up to
US$400 million in senior unsecured notes due Feb. 1, 2018, of
United States Steel Corp. (BB+/Negative/--). These notes are
being issued under the company's unlimited shelf registration
filed on March 5, 2007.
* MEXICO: Updates Tax, Law & Business Briefing in 2008 Edition
--------------------------------------------------------------
WorldTrade Executive Inc. announced the publication of the
newly-updated 2008 edition of MEXICO TAX, LAW AND BUSINESS
BRIEFING. The 512-page report details important changes in
Mexico's tax and finance laws, as well as new case studies and
analysis from leading practitioners.
One of the hot issues is Mexico's new flat tax (IETU tax), which
became effective on January 1, 2008. One of the key issues is
whether the new tax will be creditable in other countries. For
example, the United States Internal Revenue Service has issued
Notice 2008-3, in which it said that it had not determined
whether the IETU is qualified as an income tax under Article
24(1) of the US-Mexico Tax Treaty and is thus creditable, and
that the agency was going to study the new tax in order to make
a determination. In the meanwhile, the IRS agreed that the tax
would be creditable while the IRS undertakes its study.
The Mexican government has reached an agreement with various
other countries with respect to whether or not the IETU will be
creditable, including: the United Kingdom, Italy, India, South
Africa and the Bahamas.
The Briefing also discusses determinations made by the Canadian
tax authority as to whether the new Mexican flat tax will be
recognized as an "income tax" for the purposes of the Canadian
foreign tax credit.
Other coverage in the Briefing includes:
-- Details on Mexico's New Flat Tax
-- Mexico Tax Amendments for 2008
-- FIN 48 for Operations in Mexico
-- Tax Considerations for Doing Business in Mexico
-- Transfer Pricing Rules in Mexico
-- Mexican Thin Capitalization Rules
-- A Private Equity Investor Primer on Mexican Grupos
-- Foreign Investment Mechanisms
-- Intellectual Property Issues
-- Labor Regulation
-- Issues Involving Foreign Investors Buying Mexican Real
Estate
Contributors to the book include members of many of the leading
law and accounting firms and senior executives operating in the
region.
WorldTrade Executive, Inc. also publishes the authoritative
Latin American Law & Business Report and Practical Mexican Tax
Strategies and Practical Latin American Tax Strategies.
More information on Mexico Tax, Law And Business Briefing is
available at http://www.wtexecutive.comor by contacting Jay
Stanley at WorldTrade Executive, Inc. 978-287-0302, or at 2250
Main St., Concord, Massachusetts, 01742. USA.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 21, 2006, in connection with Moody's Investors Service
published rating results of the application of the joint default
analysis or JDA methodology for non-U.S. regional and local
governments or RLGs in the Americas, the rating agency upgraded
the State of Mexico's issuer rating to Ba3 from B3 and to
Baa1.mx from Ba3.mx, with a stable outlook.
===============
P A R A G U A Y
===============
* PARAGUAY: Obtains US$37.58-Million Financing from World Bank
--------------------------------------------------------------
The World Bank has approved a US$37.58 million loan to support
the Sustainable Agriculture and Rural Development project in
Paraguay. The project aims to improve the quality of life of
small-scale farmers and indigenous communities in the
departments of San Pedro and Caaguazu, in the eastern region of
the country.
The initiative that will increase in agricultural productivity
in these regions will also support community organization and
self-governance; in order to improve natural resources
management; and enhance the socio-economic condition of the
population.
"The project will support small-scale farmers and indigenous
communities to actively participate in the planning and
implementation of sustainable agriculture and rural development
activities at the farm and community levels," said Pedro Alba,
World Bank Country Director forParaguay, Argentina, Chile and
Uruguay.
The project contemplates extensive social participation in
planning how to use natural resources and in identifying
priorities towards rural development. Expected results for the
project are:
* Increase agricultural productivity of small-scale farmers
through technology adaptation, diversification and
production systems improvement.
* Deepen the rural roads network, including improved
maintenance;
* Provide water supply and sanitation;
* Support vulnerable indigenous communities;
* Improve livestock health and husbandry management through
focused infrastructure and institutional capacity
building.
* Enhance the level and quality of social participation in
project implementation.
"We will cover 39 municipalities in the poorest departments of
the country's Eastern Region, Caaguazu and San Pedro. We
estimate that some 17,000 small-scale farmers in 600 communities
and 2,000 indigenous families in 73 communities will be
reached," said Gerardo Segura, World Bank Task Manager for the
project.
Implemented by the Ministry of Agriculture the initiative has
high standards of transparency incorporated in it. In order to
guarantee the accomplishments of its objectives, the governance
framework of the project emphasized institutional development of
the implementation units as well as high social participation.
The loan for US$37.5 million has a 23-year maturity and a five
year grace period. The Government of Paraguay will provide the
remaining financing of US$3.86 million. In addition, the
project will be partially blended with a GEF grant of
US$4.5.million approved by GEF Council in November 2007 and
scheduled to be appraised and negotiated in early 2008.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned B
long- and short-term sovereign local and foreign currency
ratings on Paraguay.
Moody's meanwhile assigned these ratings on Paraguay: CC LT
Foreign Bank Deposit, Caa2; CC LT Foreign Currency Debt, Caa1;
CC ST Foreign Bank Deposit, NP; CC ST Foreign Currency Debt, NP;
and LC Currency Issue. Moody's have placed the rating under
review for likely upgrade.
=====================
P U E R T O R I C O
=====================
ANN TAYLOR: Launches Strategic Restructuring Program
----------------------------------------------------
Ann Taylor Stores Corporation has announced a multi-year
restructuring program that is designed to enhance profitability
and improve overall effectiveness, following the company's
comprehensive review of its SG&A cost structure. The company
also announced that, in light of the ongoing macroeconomic
weakness and uncertainty in the retail sector, it is taking a
conservative approach to new store growth in fiscal 2008.
The key elements of the restructuring program include:
-- The optimization of the company's store portfolio,
including the closure of 117 underperforming stores over
the 2008-2010 period;
-- An organizational streamlining, primarily involving the
downsizing of the company's headquarters staff by
approximately 13%; and
-- A broad-based productivity initiative, including the
strategic procurement of non-merchandise goods and
services, to improve efficiencies and effectiveness
across the organization and store base.
Commenting on the announcement, Ann Taylor President and Chief
Executive Officer Kay Krill stated, "Following a very thorough
review of our entire business and cost structure, we are taking
actions to enhance our overall effectiveness and improve our
profitability, and we believe that doing so will increase our
operating margin by more than 200 basis points over the next
three years. This restructuring is designed to position us as a
stronger, leaner company that can be more agile in responding to
economic realities and marketplace opportunities, and we are
confident that this program will not only improve our bottom
line, but also enable us to reinvest in our business to drive
more profitable growth in the future. I firmly believe we are
better positioned today to successfully execute a program of
this nature than at any time in our history."
"For 2008, in light of the current macro environment and retail
slowdown, we are taking a very measured approach to capital
spending for new store growth, including opening fewer Ann
Taylor and LOFT stores and delaying the test of our new concept
until 2009. At the same time, we are planning to aggressively
invest in factory channel expansion. We believe that this
approach mitigates business and financial risk during this
period of economic uncertainty and, in concert with the
restructuring program, positions the company to accelerate our
growth plans as the economy and consumer spending improve," Ms.
Krill stated.
Restructuring Program Details
The restructuring program is expected to result in ongoing
annualized pre-tax savings of approximately US$50 million
by fiscal 2010, with the benefit to fiscal 2008 expected to
total approximately US$20-25 million. The total pre-tax
cost to implement the program is expected to be approximately
US$40-45 million, with US$29 million, or approximately US$0.29
per diluted share, to be incurred in fiscal 2007. Excluding
these expenses, the company indicated that it remains
comfortable with its previous outlook for diluted EPS of
US$1.80-US$1.85 for fiscal 2007.
The company indicated that approximately US$40 million of the
expected US$50 million in ongoing annualized savings are cash
savings, primarily stemming from the strategic procurement of
non-merchandise goods and services, the reduced corporate
headcount and other productivity initiatives.
The anticipated total program cost of US$40-45 million includes
approximately US$25 million in non-cash expenses, primarily
associated with the write-down of assets related to store
closures. The balance of approximately US$15-20 million in
expenses are cash charges and relate primarily to severance and
various other costs to implement the restructuring.
Commenting on the program, Ms. Krill stated, "On a cash basis,
this restructuring program is expected to yield the company
approximately US$40 million in ongoing annualized savings, at a
cost of approximately US$15-20 million. This expected return is
very compelling, and we believe the program delivers real value
to our shareholders and positions us for success in the years
ahead."
The company indicated that the fiscal 2007 costs of US$29
million primarily reflect the non-cash write-down of assets, as
well as severance and other expenses. Program costs expected to
be incurred in fiscal 2008 total approximately US$7-10 million
and are largely cash expenses. The balance of the program
costs, to be incurred over the 2009-2010 period, total
approximately US$4-6 million and are largely cash charges.
The store optimization component of the restructuring involves
the closure of 117 underperforming stores and the related non-
cash write-off of assets associated with this decision. The
company plans to close 64 of the 117 stores during fiscal 2008,
with the balance to be closed over the fiscal 2009-2010 period.
The company conducted a careful review of options with respect
to the method and timing of closing the underperforming stores
and determined that the staged approach over the 2008-2010
period was the most cost-effective option. The sales
contribution in fiscal 2007 of the 117 stores slated for closure
is estimated at approximately US$210 million, with minimal
operating income impact.
By division, the company is planning to close 25 Ann Taylor
stores in fiscal 2008, with an additional 14 stores slated for
closure in fiscal 2009-2010. For LOFT, 39 stores are expected
to be closed in fiscal 2008, with 39 additional stores slated
for closure in fiscal 2009-2010. The company indicated that, in
addition to the restructuring program, it expects to continue to
close stores over the 2009-2010 period, as part of its normal
business process.
The organizational streamlining involves the elimination of 180
positions, or 13% of the company's corporate workforce, and is
designed to increase span of control and improve efficiency and
effectiveness.
The broad-based productivity initiative involves the strategic
procurement of non-merchandise goods and services in all areas
of the company's SG&A cost structure. These efforts involve the
internal consolidation of all purchasing activities under a
centralized strategic procurement organization to leverage
scale, as well as the outsourcing of various activities where
cost efficiencies can be achieved without sacrificing quality.
In addition, this initiative involves the optimization of all
aspects of store productivity and effectiveness.
2008 New Store Openings
The company also indicated that, for fiscal 2008, it has
conservatively planned its core business performance,
particularly in the first half, due to the anticipation of
continued weakness in the economy and consumer spending. The
company continues to believe that it will enter fiscal 2008 in a
healthy inventory position and will be focused throughout the
year on keeping its inventories under control.
In terms of new store openings for fiscal 2008, the company
currently plans to open four Ann Taylor stores, 15 LOFT stores
and 20-25 Ann Taylor Factory stores. In addition, the company
is proceeding with its rollout of LOFT Outlet and plans to open
10 LOFT Outlet stores in fiscal 2008.
"We continue to believe that our company has tremendous untapped
growth potential in all of our retail concepts as well as our
Internet channel. We also remain very optimistic about our new
concept and the consumer it will ultimately serve. However, for
2008, we are focusing our resources on implementing our
restructuring program and ensuring our core businesses are
strong, healthy and more profitable. In all, the plans we are
pursuing are designed to enable us to weather the expected
downturn in 2008, while positioning the company for aggressively
pursuing growth as the economy recovers," stated Ms. Krill.
Headquartered in New York City, Ann Taylor Stores Corporation,
through its wholly owned subsidiary, AnnTaylor Inc. --
http://www.anntaylor.com/and http://www.anntaylorLOFT.com/--
is a retailer of women's apparel, operating 878 stores in 46
states, the District of Columbia and Puerto Rico.
ANN TAYLOR: Moody's Withdraws Ba1 Corporate Family Rating
---------------------------------------------------------
This rating of Ann Taylor Stores Corporation has been withdrawn:
-- Corporate family rating of Ba1.
AnnTaylor's senior secured revolving credit facility does not
have a Moody's rating.
Moody's has withdrawn these ratings for business reasons.
Moody's added that the ratings were withdrawn because this
issuer has no rated debt outstanding.
Headquartered in New York City, Ann Taylor Stores Corporation,
through its wholly owned subsidiary, AnnTaylor Inc. --
http://www.anntaylor.com/and http://www.anntaylorLOFT.com/--
is a retailer of women's apparel, operating 878 stores in 46
states, the District of Columbia and Puerto Rico.
APARTMENT INVESTMENT: Reports Special Dividend Election Results
---------------------------------------------------------------
Apartment Investment and Management Company has announced the
results of the stockholders' elections relating to the company's
special dividend declared by its Board of Directors on Dec. 21,
2007, to holders of its outstanding shares of Class A Common
Stock on Dec. 31, 2007. The special dividend of US$2.51 per
share, or approximately US$232 million in the aggregate, is
payable Jan. 30, 2008.
A portion of the special dividend in the amount of US$0.60 per
share represents an accelerated payment of the dividend for the
quarter ended Dec. 31, 2007, and a portion represents an
additional dividend payment in the amount of US$1.91 as a result
of taxable gains arising from property dispositions during 2007.
The terms of the special dividend, including the ability of
shareholders to elect to receive the special distribution in the
form of cash and/or shares of the company's Class A Common
Stock, and a limitation on the aggregate amount of cash to be
included in the special dividend, were described in detail in
the prospectus filed with the Securities and Exchange Commission
on Jan. 2, 2008.
Based on stockholder elections, the company expects the special
dividend to consist of approximately 4.6 million shares of its
Class A Common Stock, and approximately US$55 million in cash.
The number of shares included in the special distribution is
calculated based on the US$38.71 average closing price per share
of its Class A Common Stock on the New York Stock Exchange on
Jan. 23 and 24, 2008.
The company's Class A Common Stock began trading "ex-dividend"
for the special dividend on Dec. 27, 2007.
About Apartment Invenstment
Headquartered in Denver, Colorado, Apartment Investment &
Management Company, aka. Aimco (NYSE: AIV) is a real estate
investment trust that owns and operates a geographically
diversified portfolio of apartment communities through 19
regional operating centers. Aimco, through its subsidiaries,
operates 1,320 properties, including approximately 230,000
apartment units, and serves approximately one million residents
each year. Aimco's properties are located in 47 states, the
District of Columbia and Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2007, Moody's Investors Service has assigned a Ba1
corporate family rating to Apartment Investment and Management
Company, and affirmed the REIT's preferred equity rating at Ba3.
The ratings outlook is stable, which reflects the company's
improving operations, combined with stable leverage, thin
coverage and laddered debt maturities, all trends Moody's
expects to continue.
MYLAN INC: Paying US$15.53 Per Share Dividend on Feb. 15
--------------------------------------------------------
Mylan Inc., in accordance with its 2.139 million preferred stock
issuance, has declared an initial quarterly dividend of US$15.53
per share (based on the annual dividend rate of 6.5% and a
liquidation preference of US$1,000 per share and the time period
from the date of issuance to Feb. 15, 2008) payable on Feb. 15,
2008, to holders of preferred stock of record as of Feb. 1,
2008.
Mylan Inc., formerly known as Mylan Laboratories Inc. (NYSE:
MYL), -- http://www.mylan.com/-- is a global pharmaceutical
company with market leading positions in generic
pharmaceuticals, transdermal technology and unit dose packaged
products. Mylan operates through three principal subsidiaries:
Mylan Pharmaceuticals, a world leader in generic
pharmaceuticals; Mylan Technologies, the largest producer of
generic and branded transdermal patches for the U.S. market; and
UDL Laboratories, the top U.S.-supplier of unit dose
pharmaceuticals.
Mylan also owns a controlling interest in Matrix Laboratories,
one of the world's premier suppliers of active pharmaceutical
ingredients. Mylan also has a European platform through
Docpharma, a Matrix subsidiary, which is a marketer of branded
generics in Europe. The company also has a production facility
in Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 19, 2007, Moody's Investors Service has assigned B1 ratings
to the new senior secured credit facilities of Mylan Inc. In
addition, Moody's lowered Mylan's Corporate Family Rating to B1
from Ba1, concluding a rating review for possible downgrade
initiated on May 14, 2007 and lowered the speculative grade
liquidity rating to SGL-2 from SGL-1.
As reported in the Troubled Company Reporter-Latin America on
Nov. 16, 2007, Standard & Poor's Ratings Services has lowered
its corporate credit rating on Mylan Inc. (fka Mylan
Laboratories Inc.) to 'BB-' from 'BB+' and lowered its senior
unsecured debt rating to 'B' from 'BB+'. The ratings are
removed from CreditWatch, where they were placed with negative
implications on May 14, 2007, following Mylan's announcement
that it was acquiring the generic drug business of Merck KGaA
for US$6.7 billion. S&P said the outlook is stable.
PEP BOYS: Teams Up with lanelogic for Easy Car Selling Process
--------------------------------------------------------------
The Pep Boys - Manny, Moe & Jack has partnered with lanelogic,
Inc, a strategic investment of Copart, Inc., to facilitate a
convenient, hassle-free alternative for consumers to sell their
cars for cash.
The program will enable consumers to log onto
http://www.caroffer.com,powered by lanelogic, to obtain a cash
offer for their vehicle. Access to caroffer will also be
available to consumers at their local Pep Boys or from
http://www.pepboys.com. The consumer then drops their vehicle
off at a convenient Pep Boys location, where it will be
inspected by service professionals. Once the condition of the
vehicle is verified, the sale is complete and the consumer will
receive a bank draft "on the spot."
The program is to be piloted in the Dallas market, with a
nationwide rollout expected in March.
Pep Boys President & CEO Jeff Rachor said, "Pep Boys is pleased
to partner with lanelogic to offer this new service to our
customers. Entering the ownership segment is consistent with
our long-term strategy of further solidifying Pep Boys'
position as the automotive aftermarket solutions provider of
choice. This unique new service is expected to generate more
revenue from our existing physical plant, while attracting
incremental do-it-for-me sales."
Bruce Thompson, founder and CEO of lanelogic, commented, "It's
exciting to be working with Pep Boys to launch our consumer
application. Pep Boys' national footprint enables us to provide
consumers with a hassle-free way to sell their car in just about
every major market in America. Pep Boys' 87-year-old brand is
among the most recognized and trusted in the automotive space
and it is an honor to partner with their organization."
Benefits of this program include:
* Free online cash offer
* Market's top value for vehicle
* No trade-in hassle or stress at a dealership
* Drop-off at conveniently located Pep Boys
* Complete inspection performed by Pep Boys service experts
About lanelogic
lanelogic, Inc. -- http://www.caroffer.com/-- is the nation's
exclusive online used vehicle market-maker. Launched in
November 2005, the Dallas based privately-held company is the
premier used vehicle inventory management solution for
franchised dealers - both buying and selling. lanelogic offers
participating dealers Puts, exclusive 45-Day Buyback Guarantee,
instant Buy bids and intelligent inventory procurement.
lanelogic's investment team is comprised of Cain Capital,
L.L.C., Dallas, Copart, Inc., Fairfield, Calif., HBK Investments
L.P., Dallas/Hong Kong/London and Bruce Thompson, CEO/founder.
Strategic alliances include American Auto Exchange, Inc., The
Great American Insurance Group, JMN Logistics and SGS Automotive
Services.
About Pep Boys
Headquartered in Philadelphia, The Pep Boys - Manny, Moe & Jack
(NYSE: PBY) -- http://pepboys.com/-- has over 560 stores and
approximately 6,000 service bays in 35 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.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 22, 2008, Moody's Investors Service has placed these
ratings of Pep Boys Manny Moe & Jack 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; and sUS$200 million senior subordinated notes due 2014
at B3.
PULTE HOMES: Posts US$453.8-Mln 4Q Pre-Tax Loss from Operations
---------------------------------------------------------------
Pulte Homes Inc. has announced financial results for its fourth
quarter and year ended Dec. 31, 2007. For the quarter, the
company reported a pre-tax loss from continuing operations of
US$453.8 million, compared with an US$18.1 million pre-tax loss
for the prior year fourth quarter. The fourth quarter 2007 pre-
tax loss included US$543.3 million of charges related to
inventory impairments, other land-related charges and impairment
of goodwill. These charges were equal to US$1.28 per share on
an after-tax basis, before consideration of the valuation
allowance related to the deferred tax assets discussed below.
In the fourth quarter of 2006, these charges totaled US$349.9
million, or US$0.64 per share on an after-tax basis.
An after-tax, non-cash valuation allowance of US$622 million, or
US$2.46 per share, was recorded during the fourth quarter of
2007 by the company related to its deferred tax assets in
accordance with Statement of Financial Accounting Standards No.
109 "Accounting for Income Taxes." This allowance is reflected
as a charge to fourth quarter income tax expense and a reduction
of the company's deferred tax assets as of Dec. 31, 2007.
Including this valuation allowance, the company recorded a loss
from continuing operations of US$893.3 million, or US$3.54 per
share, for the fourth quarter 2007, compared with a loss of
US$8.3 million, or US$0.03 per share, for the prior year fourth
quarter.
Consolidated revenues for the quarter were US$2.9 billion, a
decline of 34% from prior year revenues of US$4.4 billion.
For the full year 2007, Pulte Homes reported consolidated
revenues of US$9.3 billion, a decrease of 35% from the prior
year. The company had a loss from continuing operations of
US$9.02 per share, compared with earnings of US$2.67 per diluted
share in the prior year.
"The challenging market conditions that plagued the homebuilding
industry for the first nine months of 2007 worsened in the
fourth quarter," said Pulte Homes President and Chief Executive
Officer, Richard J. Dugas, Jr. "Levels of new and existing home
inventory remain elevated, buyer demand for new homes continues
to be weak, and mortgage availability is still a problem for
many prospective homebuyers. However, in the midst of this
difficult operating environment, we were able to exceed our goal
of US$1 billion of cash at year-end and exceed our guidance
previously provided related to income from operations of break-
even to US$0.10 per diluted share, exclusive of any impairments
or land-related charges. We were also successful in lowering
overhead spending and improving our house and land inventory
positions. Pulte will continue to focus on generating cash and
strengthening the balance sheet as we navigate through this
ongoing industry downturn."
The company ended the year with US$1.1 billion in cash and no
debt outstanding under its US$1.86 billion revolving credit
facility.
Fourth Quarter Results
Revenues from homebuilding settlements in the fourth quarter
decreased 35% to US$2.8 billion, compared with US$4.3 billion
last year. The change in revenue for the quarter reflects a 31%
decrease in closings to 8,714 homes and a 6% decrease in average
selling price to US$319,000.
Fourth quarter homebuilding pre-tax loss from continuing
operations was US$459.2 million, compared with a US$34.1 million
pre-tax loss for the prior year quarter. The pre-tax loss for
the period reflects a decline in gross margins from 11% to less
than one percent. Homebuilding SG&A expense decreased US$59.3
million, or 19%, compared with the prior year quarter.
Homebuilding pre-tax loss for the fourth quarter 2007 is
inclusive of approximately US$508.9 million of pre-tax charges,
or US$1.18 per share on an after-tax basis, resulting from
adjustments to land inventory and land held for sale, including
the company's investments in unconsolidated joint ventures, and
the write-off of deposits and other related costs associated
with land transactions the company no longer plans to pursue.
In the fourth quarter of 2006, these charges totaled US$349.9
million, or US$0.64 per share on an after-tax basis. The
homebuilding pre-tax loss for the fourth quarter of 2007 also
includes goodwill impairment of US$34.4 million, or US$0.10 per
share on an after-tax basis. An after-tax valuation allowance
of US$622 million, or US$2.46 per share, was recorded during the
quarter associated with the company's deferred tax assets.
Net new home orders for the fourth quarter were 4,562 homes,
valued at US$1.2 billion, which represent declines of 29% and
41%, respectively, from prior year fourth quarter results. Pulte
Homes' ending backlog as of Dec. 31, 2007 was valued at US$2.5
billion (7,890 homes), compared with a value of US$3.6 billion
(10,255 homes) at the end of last year's fourth quarter.
The company's financial services operations reported pre-tax
income of US$10.3 million for the fourth quarter 2007, compared
with US$29.7 million of pre- tax income for the prior year's
quarter. The decrease in fourth quarter 2007 pre-tax income was
primarily due to a 47% decline in mortgage loans originated
during the quarter compared with the prior year's quarter. The
mortgage capture rate for the quarter was approximately 91%,
compared with 93% for the same quarter last year.
Full Year Results
For the year 2007, Pulte Homes' loss from continuing operations
was US$2.3 billion, or US$9.02 per share, compared with prior
year income from continuing operations of US$689.6 million, or
US$2.67 per diluted share. Consolidated revenues for the year
were US$9.3 billion, down from US$14.3 billion for the prior
year.
Revenues from homebuilding settlements for the period were
US$8.9 billion, down 36% from the prior year. Lower revenues
for the year resulted from a 4% decrease in average selling
price to US$322,000, combined with a 34% decrease in the number
of homes closed to 27,540.
Homebuilding pre-tax loss for 2007 was US$2.5 billion, compared
with pre-tax income of approximately US$1 billion for the prior
year. The pre-tax loss reflects a decline in gross margins to -
5% from 17.4% in the prior year. Homebuilding SG&A expense
declined US$75.2 million, or 7%, for the current year compared
with the prior year. Homebuilding pre-tax loss for 2007 is
inclusive of approximately US$2.2 billion of pre-tax charges, or
US$5.48 per share on an after-tax basis, resulting from
adjustments to land inventory and land held for sale, including
the company's investments in unconsolidated joint ventures, and
the write-off of deposits and other related costs associated
with land transactions the company no longer plans to pursue.
For 2006, these charges totaled US$505 million, or US$1.24 per
share on an after-tax basis. Homebuilding pre-tax loss for 2007
also includes goodwill impairment of US$370 million, or US$1.33
per share on an after-tax basis, and a pre-tax restructuring
charge of approximately US$45.7 million, or US$0.11 per share on
an after-tax basis, related to the restructuring plan announced
by the company during its second quarter. An after-tax
valuation allowance of US$622 million, or US$2.47 per share, was
recorded in 2007 associated with the company's deferred tax
assets.
Pulte's financial services operations reported pre-tax income of
US$43 million for 2007, compared with US$115.5 million in the
prior year. The prior year results reflect a first-quarter gain
of approximately US$31.6 million from the sale by Pulte Mortgage
LLC of its investment in a Mexico-based mortgage- banking
company. In addition, lower loan originations for the year,
down 42% to 23,404 mortgages, also contributed to the decline.
First Quarter 2008 Guidance
"Given the ongoing weakness in the homebuilding industry, for
the first quarter of 2008 we are projecting a net loss
from continuing operations in the range from US$0.15 to US$0.30
per share, exclusive of a tax benefit and any additional
impairments or land-related charges," said Mr. Dugas. "This
projection reflects the ongoing tough operating environment for
homebuilding. However, with our focus on inventory and cash
management, we are targeting to end 2008 with a cash position of
US$2 billion to US$2.2 billion, inclusive of an additional
US$650 million to US$850 million generated from operations and a
US$250 million tax refund."
About Pulte Homes
Headquartered in Bloomfield Hills, Michigan, Pulte Homes, Inc.
is one of the country's largest homebuilders, with domestic
operations in 27 states and 52 markets, as well as in Puerto
Rico. Revenues and net income for the trailing twelve-month
period ended June 30, 2007, were approximately US$11.8 billion
and US$411 million, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 6, 2007, Standard & Poor's Ratings Services has lowered its
corporate credit and senior unsecured debt ratings on Pulte
Homes Inc. to 'BB+' from 'BBB-'. The outlook remains negative.
The ratings affect approximately US$3.5 billion of senior
unsecured notes.
ROYAL CARIBBEAN: Reports US$603.4-Million Net Income for 2007
-------------------------------------------------------------
Royal Caribbean Cruises Ltd. disclosed record net income for the
fourth quarter 2007 of US$70.8 million, or US$0.33 per share,
compared to net income of US$46.6 million, or US$0.22 per share,
in 2006. Revenues were better than expected, driven by stronger
close-in bookings, while fuel costs were higher due to rising
fuel prices. Revenues for the fourth quarter 2007 increased to
US$1.5 billion from revenues of US$1.2 billion in the fourth
quarter 2006.
Net income for the full year 2007 was US$603.4 million, or
US$2.82 per share, compared to net income of US$633.9 million,
or US$2.94 per share, for the full year 2006. Revenues for the
full year 2007 increased to US$6.1 billion from revenues of
US$5.2 billion for the full year 2006.
"It is very gratifying to see such a strong performance,
especially in light of the broader consumer and economic
environment," said Chairperson and Chief Executive Officer,
Richard D. Fain. "We are particularly pleased with the solid
yield performance of our brands, which produced such healthy
earnings despite significantly higher fuel costs." Higher fuel
prices increased operating costs by US$45 million in 2007, which
reduced earnings per share by US$0.21.
Mr. Fain continued, "Despite pressures on consumer spending,
yields for the year were consistent with our original
expectations, growing 0.3% on a comparable basis (i.e. excluding
Pullmantur). This is a testament to the strength and momentum
of our products."
Key metrics for the fourth quarter 2007, as compared to the
fourth quarter 2006, were:
-- Net Yields on a comparable basis increased 3.2%; higher
than guidance of an increase in a range around 2%.
Including Pullmantur, Net Yields increased 11.0%.
-- Excluding fuel, Net Cruise Costs per APCD on a comparable
basis increased 3.4%; higher than guidance of an increase
in a range around 2%. Including Pullmantur, Net Cruise
Costs per APCD increased 12.1%.
-- Fuel prices increased 41% versus the fourth quarter of
2006, while fuel costs per APCD increased 19%, benefiting
from energy saving initiatives and hedging. The average
at-the-pump price for the quarter was US$555 per metric
ton versus US$395 per metric ton in 2006.
-- Net Cruise Costs per APCD on a comparable basis increased
5.9%; higher than guidance of an increase in a range
around 2%. Including Pullmantur, Net Cruise Costs per
APCD increased 13.4%.
2008 Outlook
The company expects to have a 5.1% increase in capacity in 2008,
driven primarily by a full year of Liberty of the Seas, the
April delivery of Independence of the Seas, Pullmantur's
purchase of Pacific Star, and the November delivery of Celebrity
Solstice.
"The early indications from the 'wave period' are encouraging,"
said Mr. Fain. "We continue to see healthy booking volumes and
improved pricing over the same time last year. Based on this
improving revenue performance and our focus on controlling
costs, we expect 2008 to be a year of double-digit improvement
in EPS."
The company does not forecast fuel prices and its cost guidance
for fuel is based on current "at-the-pump" prices including any
hedge impacts. Fuel prices remain volatile; however, the
company has taken a number of actions to reduce energy
consumption and fuel expense. The company is 52% and 45% hedged
for the first quarter and full year, respectively. If fuel
prices for 2008 remain at today's level, fuel costs for the
first quarter 2008 would be approximately US$145 million, or
US$492 per metric ton. The corresponding figures for the full
year 2008 would be approximately US$595 million, or US$484 per
metric ton. A 10% change in the market price of fuel would
result in changes of US$8 million and US$35 million in fuel
costs for the first quarter and full year, respectively.
The company expects its first quarter 2008 earnings per share to
be US$0.30 to US$0.35, and expects full year 2008 earnings per
share to be US$3.20 to US$3.40.
As of Dec. 31, 2007, liquidity was US$1.4 billion, comprising
US$0.2 billion in cash and cash equivalents and US$1.2 billion
in available credit on the company's unsecured revolving credit
facility.
Based on current ship orders, projected capital expenditures for
2008, 2009, 2010, and 2011, are estimated to be US$1.9 billion,
US$2.0 billion, US$2.2 billion, and US$1.0 billion,
respectively. Projected capacity increases for the same four
years are estimated at 5.1%, 9.3%, 11.4%, and 6.4%,
respectively.
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.
=================================
T R I N I D A D & T O B A G O
=================================
INVACARE CORP: Earns US$7 Milion in 2007 Fourth Quarter
-------------------------------------------------------
Invacare Corporation reported its financial results for the
fourth quarter and twelve months ended Dec. 31, 2007.
The company earned US$7.0 million of net income for the three
months ended Dec. 31, 2007, compared to a net loss of
US$337.6 million. Adjusted net earnings for the quarter were
US$19.9 million versus US$10.4 million last year. The fourth
quarter 2007 net earnings and adjusted net earnings include an
additional US$.9 million attributable to the one-time tax
benefit associated with new tax laws enacted in Germany which
reduced the company's tax rate and the corresponding German net
deferred tax credits.
Net sales for the quarter increased 10.8% to US$426.8 million
versus US$385.1 million last year. Foreign currency translation
increased net sales by five percentage points. Organic net
sales for the quarter grew 6.0% over the same period last year
driven primarily by European organic net sales growth of 9.8%
and Invacare Supply Group net sales growth of 14.2%. European
net sales growth continues, resulting from volume increases in
most regions. ISG growth continues mainly due to home delivery
program sales to large providers and volume increases in
enterals and diabetic product lines. North America/HME --
NA/HME -- organic net sales increased by 2.8% for the quarter,
the first quarter over quarter increase this year, reflecting
the improved stability and sequential improvement of this
business segment as compared to a revenue decline in the first
nine months of the year of 3.3%.
The company achieved its cost reduction and profit improvement
initiatives established at the beginning of the year. The
benefits achieved from the cost reduction initiatives,
principally related to product sourcing savings, headcount
reductions, and manufacturing consolidation, totaled US$40
million for 2007, which was slightly better than the Company's
expectations. However, as expected, a significant portion of
this benefit was offset by continued pricing pressures and
product mix shift toward lower margin product in the U.S. as a
result of Medicare related reimbursement changes.
Gross margin as a percentage of net sales for the fourth quarter
was higher by 2.9 percentage points compared to last year's
fourth quarter, primarily due to cost reduction activities,
offset by higher volume discounts related to increased sales
to national providers in the Respiratory product line and
continued competitive pricing pressures in the U.S. Margins were
also favorably impacted by 0.8 of a percentage point from
insurance and asset recoveries related to an embezzlement,
which was disclosed earlier this year, at one of the Company's
foreign facilities.
Selling, general and administrative expense (SG&A) decreased
18.3% to US$92.7 million in the quarter compared to US$113.5
million in the fourth quarter last year. Foreign currency
translation increased SG&A expense by three percentage points,
while acquisitions increased SG&A expense by less than one
percentage point. SG&A decreased when compared to the fourth
quarter of last year as a result of recording an incremental
reserve related to accounts receivable of approximately US$26.8
million pre-tax in the prior year. After adjusting for this
item, along with foreign currency translation and acquisitions,
SG&A increased 2.0%. SG&A benefited in the quarter from a one-
time gain of US$4.0 million resulting from debt
cancellation related to a development stage company which the
Company consolidated in accordance with the provisions of FASB
Interpretation No. 46, Consolidation of Variable Interest
Entities (FIN 46). This benefit was offset by an increase in
bonus expense of US$3.0 million, increased bad debt expense of
US$1.4 million, and legal and professional expenses related to
the settlement of the embezzlement noted above of US$1.0
million.
A. Malachi Mixon, III, Chairman and Chief Executive Officer,
stated, "I am extremely proud that our management team met and
exceeded challenging commitments for adjusted earnings per
share, free cash flow, and cost reduction. Invacare's
performance was better than expected as a result of continued
execution of our cost reduction programs totaling $40 million
for the year. We are also encouraged by the improving organic
net sales growth trends. As well, during 2007, two national
accounts have made significant purchases of our HomeFill(R)
oxygen technology. European business continues to perform well
with improved sales and earnings over last year. We also
generated strong free cash flow, totaling $44 million for the
quarter and $73 million for the year, driven by stronger than
expected cash collections on receivables and by inventory
reductions. This enabled the Company to reduce debt in the
quarter by approximately $38 million. Cost reduction and
reducing our debt levels were our top priorities for 2007 and we
were successful in achieving both."
Financial Condition
Total debt outstanding was US$537.9 million at the end of the
year, resulting in a debt-to-total-capitalization ratio of 49.3%
versus 54.1% at the end of 2006, and 53.1% at the end of the
third quarter of this year. The company reduced debt
outstanding by US$38.2 million during the quarter as a result of
significant positive cash flow generation.
The company generated US$44.4 million of free cash flow in the
fourth quarter and US$72.5 million for the year. The improvement
in the fourth quarter free cash flow, as compared to the third
quarter free cash flow of US$29.0 million, was principally due
to increased earnings and improved working capital management
primarily in accounts receivable and inventory.
Days sales outstanding improved by four days to 62 days versus
66 days last year. Inventory turns were 4.9 versus 4.4 at the
end of last year. The company's cash and cash equivalents at
the end of the year were approximately US$62.5 million, down
from US$82.4 million at the end of last year.
Outlook
Cost reduction initiatives were the company's primary focus
during 2007 and will continue to be a priority in 2008. The
successful implementation of the 2007 cost reductions improved
the company's operating margin by approximately US$40 million.
These initiatives included:
* Product line rationalization;
* Expanded outsourcing;
* Rationalization of facilities;
* Supply chain simplification / rationalization; and
* Organization and infrastructure rationalization.
The incremental annualized savings from these initiatives should
improve the company's operating margins in 2008 by approximately
US$15 million. In addition, the company has identified new cost
reduction initiatives which should result in additional savings
in 2008 of at least US$20 million. However, it is anticipated
that the benefit to operating margins realized from these
initiatives will be tempered by continuing reimbursement
uncertainties, primarily the implementation of competitive
bidding in the U.S., and continued global pricing pressures in
the industry.
With these factors in mind, the company is providing the
following guidance:
* Organic growth in net sales of 4% to 5%, excluding the
impact from acquisitions and foreign currency translation
adjustments;
* Effective tax rate on adjusted earnings of 20% to 25%;
* Adjusted earnings per share of US$1.35 to US$1.50; and
* Free cash flow between US$45 million and US$55 million.
Commenting on the company's anticipated results, Mr. Mixon said,
"In 2008, cost reduction and reducing our debt levels will
continue to be our top priorities. We are hopeful that
successful execution will ultimately enable us to return to
unsecured borrowing status. We expect the Company's adjusted
earnings per share, excluding the one time German tax benefit in
2007, to increase significantly due to a continuation of our
cost reduction efforts and modest organic sales growth. Our
European businesses performed well in 2007 with strong top-line
growth and improving profitability, and we expect more of the
same in 2008 from Europe. We remain cautious regarding the
impact of the potential reimbursement changes in the
U.S. market and the continued pricing pressures."
"The Centers for Medicare and Medicaid Services continues to
move forward with the implementation of competitive bidding in
10 Metropolitan Statistical Areas with the bid awards effective
as of July 1, 2008, and an additional 70 MSAs in 2009. There is
discussion in Washington regarding the possibility of proposed
Medicare changes later this year, particularly with regard to
oxygen and power wheelchairs. We continue to work for the
industry and lobby against oxygen reimbursement reductions and
against elimination of the power wheelchair first month purchase
option. We are also lobbying for modification to the
competitive bidding program to ensure small business
participation and consumer access. At this point, it is still
possible oxygen reimbursement cuts will be included in a
Medicare bill, as could the power wheelchair issue. We continue
to believe that should reimbursement reductions occur, new
oxygen technologies such as our HomeFill(R) product will remain
at current reimbursement levels."
"As we enter 2008, we are confident that continued cost
reduction initiatives and modest organic growth should position
us for solid earnings improvement throughout the year."
Headquartered in Elyria, Ohio, Invacare Corporation (NYSE: IVC)
-- http://www.invacare.com/-- manufactures and distributes
innovative home and long-term care medical products. The
company has 5,700 associates and markets its products in 80
countries around the world. In the Caribbean, Invacare products
are distributed in Barbados, the Dominican Republic, and
Trinidad and Tobago.
* * *
Moody's Investor Services rated Invacare Corporation's long-term
corporate family at B1, its probability of default at B1. The
outlook is stable. Standard & Poor's assigned B rating on its
long-term foreign and local issuer credit.
=================
V E N E Z U E L A
=================
NORTHWEST AIRLINES: Net Loss Drops to US$8MM in 2007 4th Quarter
----------------------------------------------------------------
Northwest Airlines Corporation reported a net loss of
US$8 million for the fourth quarter ended Dec. 31, 2007,
compared to net loss of US$267 million for the same period in
the previous year.
Results for the fourth quarter include a US$14 million pre-tax
loss associated with the sale of its remaining equity interest
in Pinnacle Airlines. Excluding this item, Northwest's results
were break-even for the fourth quarter of 2007. In the fourth
quarter of 2006, Northwest reported a US$267 million net loss.
Northwest reported a 2007 pre-tax profit of US$764 million
before reorganization items, a 154% improvement over its 2006
pre-tax income of US$301 million before reorganization items.
"This marks our second consecutive year of profitability and the
third highest pre-tax profit in company history," Doug
Steenland, Northwest Airlines'president and chief executive
officer, said. "Excluding reorganization items, Northwest's
2007 results improved by US$463 million over 2006 and over
US$2.1 billion when compared to 2005. Our 2007 pre-tax margin
of 6.1 percent is also the highest among the network carriers.
I want to recognize the hard work of our employees and
management team for delivering these industry-leading results."
"Our front-line employees and flight crews deserve great credit
for running a very reliable airline during the peak travel
periods in November and December, despite the significant winter
weather challenges," Mr. Steenland added. "As a result of our
employees' efforts and commitment over the course of the year,
the company will have paid out to them US$125 million in profit
sharing, performance incentives and reliability payments. This
will be the highest employee incentives payout in company
history, nearly a 175% improvement over 2006."
Northwest ended the quarter with US$3 billion in unrestricted
cash and US$725 million in restricted cash. This restricted
cash balance includes US$213 million placed in escrow to fund
the pending acquisition of a minority position in Midwest
Airlines. Northwest's 2006 year-end unrestricted cash was US$2.1
billion.
Dave Davis, executive vice president and chief financial officer
said, "The fact that Northwest delivered full-year pre-tax
income of US$764 million, and ended the year with US$3 billion
in unrestricted cash despite the highest fuel prices in history,
illustrates the earnings power of the Northwest Airlines
franchise."
Northwest Highlights
"Northwest continues to establish itself as an industry leader
with investments in our employees, our fleet and the communities
we serve," Mr. Steenland noted. "All of these initiatives
contribute to making Northwest a world-class airline."
A. Employee Investments
* Northwest accrued US$22 million in profit sharing payments
to employees for the fourth quarter and nearly US$80
million for the full year.
* Northwest also accrued US$4 million in performance
incentive plan payouts during the quarter and US$19 million
for the full year.
* Northwest will pay out US$14 million as part of its fourth
quarter holiday reliability plan, of which US$12 million
was accrued in the fourth quarter. Northwest had paid out
US$12 million as part of the summer reliability initiative.
* Northwest made US$127 million in employee pension and
retirement plan payments in 2007.
B. Operational Excellence
* In November, Northwest announced its "20 Point Holiday
Travel Reliability Plan" as part of the airline's
commitment to provide the best possible service to our
customers. For example, during the peak five day
Thanksgiving travel period, the plan helped Northwest
achieve three 100% completion factor days with only three
flight cancellations.
C. New Routes
* Northwest and its joint venture partner KLM Royal Dutch
Airlines will inaugurate six new routes to Europe in the
spring of 2008:
* Portland, Oregon - Amsterdam beginning March 29
* Minneapolis/St. Paul - London Heathrow beginning March 29
* Dallas/Fort Worth - Amsterdam beginning March 30
* Minneapolis/St. Paul - Paris beginning April 8
* Detroit - London Heathrow beginning May 1
* Seattle - London Heathrow beginning June 1
D. Anniversary of Northwest/KLM Joint Venture
* Northwest and its joint venture partner, KLM Royal Dutch
Airlines, celebrated the 10th Anniversary of the joint
venture in the fourth quarter - marking a major milestone
for one of the most successful partnerships in the
history of the airline industry.
E. Fleet renewal
* As part of its US$6 billion re-fleeting program, in the
fourth quarter, Northwest took delivery of its 32nd A330
aircraft. Northwest now operates the world's largest
A330 fleet, the youngest international fleet and youngest
transatlantic fleet of any U.S. carrier.
* Northwest's regional jet fleet also grew in the fourth
quarter with the delivery of six Bombardier CRJ-900s and
five Embraer EMB-175s, bringing the airline\u2019s year-
end total to 13 CRJ-900s and nine EMB-175s.
* In the first quarter 2008, Northwest plans to take
delivery of six additional CRJ-900s and eight more
EMB-175s.
* By the end of 2008, Northwest's scheduled deliveries will
bring its regional jet fleet to 36 EMB-175s and
36 CRJ-900s.
* Northwest's 2008 flying plan includes a reduction of its
DC9 fleet over the course of the year, with the largest
reduction coming after the peak summer travel months. By
the end of 2008, Northwest intends to operate a fleet of
68 DC9 aircraft, including 34 DC9-50s, 12 DC9-40s and
22 DC9-30s.
F. New Environmental Initiatives
* In December 2007, Northwest launched its EarthCares
environmental program with a US$1 million gift on behalf of
the airline's employees and customers to its founding
partner, The Nature Conservancy.
* Later this year, Northwest customers will have the option
of contributing to wildlife and land conservation projects
around Northwest's hubs in Minneapolis/St. Paul, Detroit,
and Memphis well as China\u2019s First National Park.
Customers will also be able to purchase carbon offset
credits when they book their travel online.
* Northwest has reduced its own carbon emissions by 25%
since the year 2000 through its transition to newer, more
fuel-efficient aircraft.
Cash and cash equivalents at Dec. 31, 2007, amounted to
US$2.94 billion, compared to US$1.46 billion at Dec. 31, 2006.
At Dec. 31, 2007, selected balance sheet date showed total
assets US$24.52 billion, total liabilities of US$17.14 billion,
and total common stockholders' equity of US$7.38 billion.
About Northwest Airlines
Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/--
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about
1,400 daily departures. Northwest is a member of SkyTeam, an
airline alliance that offers customers one of the world's most
extensive global networks. Northwest and its travel partners
serve more than 1000 cities in excess of 160 countries on six
continents. Northwest and its travel partners serve more than
1000 cities in excess of 160 countries on six continents,
including Italy, Spain, Japan, China, Venezuela and Argentina.
The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington represent the
Debtors in their restructuring efforts. The Official Committee
of Unsecured Creditors has retained Akin Gump Strauss Hauer &
Feld LLP as its bankruptcy counsel in the Debtors' chapter 11
cases.
When the Debtors filed for bankruptcy, they listed
US$14.4 billion in total assets and US$17.9 billion in total
debts. On Jan. 12, 2007 the Debtors filed with the Court their
Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an
Amended Plan & Disclosure Statement. The Court approved the
adequacy of the Debtors' Disclosure Statement on March 26, 2007.
On May 21, 2007, the Court confirmed the Debtors' Plan. The
Plan took effect May 31, 2007.
* * *
Moody's Investor Services placed Northwest Airlines Corp.'s long
term corporate family and probability of default ratings at 'B1'
in May 2007. The ratings still hold to date with a stable
outlook.
PETROLEOS DE VENEZUELA: Inks Urdaneta Lago Pact with Royal Dutch
----------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA said in
a statement that it has signed a memorandum of understanding
with Anglo-Dutch oil company Royal Dutch Shell for the study of
the exploration and production potential of Urdaneta Lago in
Zulia.
According to Petroleos de Venezuela's statement, the project is
aimed at boosting output in western Venezuela.
Business News Americas relates that Petroregional del Lago, a
60:40 joint venture between Petroleos de Venezuela and Royal
Dutch, operates at the north of the Urdaneta-Oeste block on the
Maracaibo lake.
According to BNamericas, the study will be launched this week.
The study will cover a technical and economic analysis of the
reserves.
Petroleos de Venezuela and Royal Dutch will also study the
present and future infrastructure requirements and the amount of
investment required to implement the plan, BNamericas reports.
About Royal Dutch
Royal Dutch Shell plc is engaged in all principal aspects of the
oil and natural gas industry, and also has interests in
chemicals and additional interests in power generation and
renewable energy (mainly in wind and advanced solar energy).
The company operates in five segments: Exploration & Production,
which searches for and recovers oil and natural gas around the
world and is active in 38 countries; Gas & Power, which
liquefies and transports natural gas, and develops natural gas
markets and related infrastructure; Oil Products, which include
all of the activities necessary to transform crude oil into
petroleum products and deliver these to customers worldwide;
Chemicals, which produces and sells petrochemicals to industrial
customers globally, and Other Industry Segments and Corporate,
which include Renewables and Hydrogen. In May 2007, Rubis
acquired the German liquefied petroleum gas distribution
subsidiary from Shell.
About Petroleos de Venezuela
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
* * *
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.
***********
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
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delos Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
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