/raid1/www/Hosts/bankrupt/TCRLA_Public/080206.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, February 6, 2008, Vol. 9, Issue 26
Headlines
A R G E N T I N A
ALITALIA SPA: Sale Talks Continue Unless New Gov't Takes Over
ALITALIA SPA: AirOne Asks Court to Cancel Air France Talks
ARDILA Y ASOCIADOS: Files for Reorganization in Buenos Aires
DANA CORP: Emerges from Chapter 11 Protection Effective Jan. 31
FIDEICOMISO (MULTIPYME V): Moody's Rates Debt Securities at B1
FIDEICOMISO (SECUPYME XXXII): Moody's Rates Debt Securities at B1
HUDSON HIGHLAND: Board OKs US$15-Mln Common Share Buyback Program
NEVO BANCO: Launches Class 1, ARS90 Mil. Short-Term Debt Issue
NVIDIA CORP: Inks Definitive Deal to Acquire AGEIA Technologies
REBERTCH Y ADP: Proofs of Claim Verification Ends on March 14
TELECOM ARGENTINA: Launching IPTV Technical Tests in June
TURRA HNOS: Trustee Filing Individual Reports on March 28
TYSON FOODS: Board Declares US$0.04 Per Share Quarterly Dividend
* ARGENTINA: Obtains US$603,015 Financing from MIF
B E R M U D A
FIVE BALANCED: Sets Final Shareholders Meeting for February 11
INTELSAT LTD: Parent Closes Equity Acquisition Deal With Serafina
INTELSAT LTD: Proposes 5-1/4% Senior Notes Redemption
TRANS-PACIFIC MANAGEMENT: Proofs of Claim Filing Ends on Feb. 20
B R A Z I L
AAR CORP: Prices Tender Offer on Convertible Notes at US$175-Mln
AAR CORP: S&P Puts BB Rating on US$175-Mln Convertible Sr. Notes
BANCO DO BRASIL: Issuing 350,000 BB Previdencia Cards in 2008
BANCO DO BRASIL: Linux Software Could Bring BRL30 Mil. in Savings
DUERR AG: Indian Unit Posts 50% Increase in Sales
FIDELITY NATIONAL: Inks Online Banking Pact With Digital Insight
FORD MOTOR: January 2008 Sales Decreases 4% at 159,914
FORD MOTOR: Kicks Off 2008 with 9.6% Sales Increase in Canada
FREESCALE SEMI: To Acquire SigmaTel for US$110 Million
GENERAL MOTORS: January 2008 Sales Increased 2.1% to 252,565
HUGHES NETWORK: Indian Unit Inks Broadband Service Deal With Comat
NET SERVICOS: Earns BRL96 Million in 2007 Fourth Quarter
USINAS SIDERURGICAS: Acquires 3 Iron Ore Miners for US$295 Million
* BRAZIL: Petroleo Brasileiro Inks Black Sea Oil Drilling Pact
C A Y M A N I S L A N D S
#1 NDC FUDOSAN: Proofs of Claim Filing Deadline is February 17
ABN AMRO GENERAL: Proofs of Claim Filing is Until February 10
ABN AMRO EMERGING: Proofs of Claim Filing Ends on February 10
ABN AMRO JAPAN: Proofs of Claim Filing Deadline is February 10
BROADWAY FINANCE: Proofs of Claim Filing is Until February 12
CYPRESSTREE INVESTMENT: Proofs of Claim Filing Ends on Feb. 8
CYPRESSTREE INVESTMENT: Final Shareholders Meeting is on Feb. 8
GLEACHER EQUITY: Proofs of Claim Filing Deadline is February 10
KEVIAN CAPITAL: Sets Final Shareholders Meeting for February 8
KEVIAN CAPITAL FUND: Final Shareholders Meeting is on Feb. 8
MAPLES AND CALDER: Proofs of Claim Filing Is Until February 8
SEAGATE TECH: Eyes Dividend Increase of Up to US$0.12 Per Share
STABLE CREST: To Hold Final Shareholders Meeting on February 14
SYSTEMS UNION: To Hold Final Shareholders Meeting on February 15
TREMONT PORTABLE: Proofs of Claim Filing is Until February 11
C H I L E
BOSTON SCIENTIFIC: Posts US$458-Mln. Net Loss in Fourth Qtr. 2007
SHAW GROUP: Unit Bags Environmental Services Pact With Waste Mgt.
C O L O M B I A
BANCOLOMBIA SA: Sets General Shareholders Meeting for March 10
SOLUTIA INC: To Pay US$3.8 Million to Resolve EPA Claim
SOLUTIA INC: Formally Seeks US$2-Bil. Exit Funding From Citigroup
QUEBECOR WORLD: U.S. Trustee Forms Seven-Member Creditors' Panel
QUEBECOR WORLD: May Apply US$1B DIP Facility for LA & Europe Biz
C O S T A R I C A
* COSTA RICA: Power Firm Accepting Bids for El Dique Study
E L S A L V A D O R
ALCATEL-LUCENT SA: Extended Restructuring Sees 400 Job Cuts
G U A T E M A L A
BRITISH AIRWAYS: Fuel Costs Up GBP72 Mln in Third Quarter 2007
BRITISH AIRWAYS: Deutsche Bank Maintains "Buy" Rating on Firm
J A M A I C A
SUGAR CO.: Farmers Group Worried on Angostura Limited's Bid
* JAMAICA: To Meet with Chinese Bidder for Jamaica Railway
* JAMAICA: PM Golding Unveils Plan to Build New Int'l Airport
* JAMAICA: World Bank To Help Nation on Its Public Debt
* JAMAICA: Will Benefit From Int'l Development's Investment Fund
M E X I C O
ADVANCED MICRO: UBS Reiterates Neutral Rating on Firm's Shares
DURA AUTOMOTIVE: Obtains Court OK for $170MM Replacement Loan
KANSAS CITY: Names John Derry as Human Resources Vice President
MOVIE GALLERY: To Close 400 Underperforming Stores
VISTEON CORP: Selling NA Facilities to Centrum Properties' Unit
WENDY'S INT'L: 2007 Income from Operations Up 134% to US$86.6 Mil.
N I C A R A G U A
PERRY ELLIS: Closes C&C and Laundry Acquisition for US$33.1 Mil.
P A N A M A
CHIQUITA BRANDS: Completes Consent Solicitation on 7-1/2% Notes
CHIQUITA BRANDS: Mulls Offer of US$150 Mil. Convertible Sr. Notes
CLOROX CO: Reports US$92 Million Net Income in Second Quarter
P E R U
CUMMINS INC: Extends ISX Deal With Volvo Trucks North America
GRAN TIERRA: Allots US$26.6 Mil. for Capital Expenditure Program
P U E R T O R I C O
PILGRIM'S PRIDE: Board Declares 2-1/4 Cents Per Share Dividend
V E N E Z U E L A
BANCO PROVINCIAL: Parent Cut to "Neutral" by UBS AG
CHRYSLER LLC: Total U.S. Sales Decreased 12% at 137,392 Units
CHRYSLER LLC: Parts Shortage Prompts Closing of Four Facilitie
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: Sale Talks Continue Unless New Gov't Takes Over
-------------------------------------------------------------
Negotiations to sell Italy's 49.9% stake in Alitalia S.p.A. to Air
France-KLM S.A. cannot be stopped unless a new government is
installed, Thomson Financial reports citing transport minister
Alessandro Bianchi.
As previously reported in the TCR-Europe, Prime Minister Romano
Prodi, tendered his resignation on Jan. 24, 2008, after losing a
confidence vote in the Senate. Mr. Prodi earlier lost a majority
in the Italian Senate after the Udeur party left the coalition
government.
President Giorgio Napolitano said he will defer a decision to
accept the resignation pending consultations with all the
political parties in the Parliament. According to Thomson
Financial, Mr. Napolitano may either install an interim government
to make electoral reforms or snap elections.
"If the Prodi government goes to elections nothing stop," Mr.
Prodi told Thomson Financial. "The procedure [for Alitalia] is
fixed and it would be unreasonable to stop it.
Mr. Bianchi added that if an election is called, Mr. Prodi's
government would continue administration of the country, which
would include concluding the Alitalia sale.
"If, instead, there is another government then there is the need
to rediscuss everything," Mr. Bianchi told Thomson Financial.
Alitalia and Air France have until mid-March to present a final
contract.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.
ALITALIA SPA: AirOne Asks Court to Cancel Air France Talks
----------------------------------------------------------
AP Holding S.p.A., investment arm of AirOne S.p.A., has filed an
appeal with the Italian Regional Administration Court of Lazio to
declare null and void a Dec. 28, 2007, decision of Italy's
Ministry of Economy and Finance to commence exclusive talks to
sell the Italian government's 49.9% stake to Air France-KLM SA,
Alitalia S.p.A. confirms.
"The appeal ... is the only instrument we have to know the reasons
why there weren't more transparent and non-discriminatory
criteria," AP Holding said.
AirOne chairman Carlo Toto insisted in mid-January that it
presented more economical offer for Alitalia, noting that its
business plan for the national carrier is supported by "four
among the world's most important banks that are ready to
formalize their commitment immediately should a private
negotiation be initiated."
"We don't want to halt the talks," a source privy to AP Holding
told Reuters. "We also want to be able to present a binding
offer."
"There are still many questions open so we don't think the game is
over," Corrado Passera, who leads AirOne financial backer Intesa
Sanpaolo S.p.A., told Corriere della Sera. "Everything still has
to be sorted out."
Alitalia and Italy have selected Air France-KLM's non-binding
offer over AirOne's.
As reported in the TCR-Europe on Jan. 17, 2007, Alitalia and
Italy have commenced exclusive sale talks with Air France-KLM.
The carriers have until mid-March to reach an agreement, which
would be approved by the government.
In its non-binding offer, Air France plans to:
-- acquire 100% of the shares of Alitalia through an
exchange offer;
-- acquire 100% of Alitalia convertible bonds; and
-- immediately inject at least EUR750 million into
Alitalia through a capital increase, that will be open to
all shareholders and be fully underwritten by Air France.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.
ARDILA Y ASOCIADOS: Files for Reorganization in Buenos Aires
------------------------------------------------------------
Ardila y Asociados SA has requested for reorganization approval
after failing to pay its liabilities since Nov. 10, 2007.
The reorganization petition, once approved by the court, will
allow Ardila y Asociados to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance No. 24 in Buenos Aires. Clerk No. 47 assists the court
in this case.
The debtor can be reached at:
Ardila y Asociados SA
Basualdo 430
Buenos Aires, Argentina
DANA CORP: Emerges from Chapter 11 Protection Effective Jan. 31
---------------------------------------------------------------
Dana Corporation and its debtor-affiliates have notified the
U.S. Bankruptcy Court for the Southern District of New York that
their Third Amended Joint Plan of Reorganization is deemed
effective as of Jan. 31, 2008, after satisfying or waiving
each of the conditions precedent to the effectiveness of the
Plan, Corine Ball, Esq., at Jones Day, in New York, relates.
Dana Corp., starting on the Effective Date, will operate as Dana
Holding Corporation.
Dana's Statement
Dana Holding Corporation is emerging from Chapter 11
reorganization as a new company positioned to compete vigorously
in the global automotive, commercial vehicle, and off-highway
markets.
Dana's U.S. operations entered Chapter 11 on March 3, 2006.
During a comprehensive, 23-month reorganization, the company and
its stakeholders achieved US$440 million to US$475 million in
annual cost savings and revenue improvements. These annual
savings were achieved primarily from improvements in its
manufacturing footprint, reducing labor costs and benefit changes,
working with labor and retiree groups to create VEBA trusts to
assume ongoing obligations for retiree health and welfare costs,
and further reductions in administrative expenses.
"Fundamental change has been our objective from the outset of this
process," said Mike Burns. "We have achieved this goal through
the persistence and dedication of our employees around the world,
the partnerships with our labor unions, and the ongoing confidence
and support of our customers and suppliers.
Mr. Burns, who served as Dana's Chairman and CEO since 2004 and
will remain with the company for a transition period, added, "I
am proud of our emergence today and what the people of Dana have
accomplished during the restructuring process. Our actions were
necessary for the future of the company. And we achieved our
goal while maintaining a strong focus on taking care of our
customers. This is the right time for a change, and I am
convinced that the company and its new leadership are poised for
success."
John Devine as Chairman and Acting CEO
In conjunction with emergence, Dana's new Board of Directors has
elected John Devine executive chairman and acting CEO. Mr. Devine
is the former vice chairman and chief financial officer of General
Motors Corporation, where he served from 2001 to mid-2006. Prior
to joining GM, Mr. Devine served as chairman and chief executive
officer of Fluid Ventures, LLC. Previously, he spent 32 years at
Ford Motor Company, where he last served as executive vice
president and chief financial officer. Mr. Devine is also a board
member of Amerigon Incorporated.
"I'm pleased to join the Dana team, particularly on this important
day for our company and all of its stakeholders," said Mr. Devine.
"The reorganization achieved by Dana and its people has positioned
us to emerge as a more competitive company. We will be focused on
the goal of returning Dana to a leadership position in our
industry."
Investment Programs
Dana obtained US$2,000,000,000 in exit financing through an effort
led by Citigroup Global Markets Inc., Lehman Brothers Inc., and
Barclays Capital. Despite difficult credit market conditions, the
company was able to secure exit financing. The financing consists
of a US$650 million asset-based revolving credit facility and a
US$1,350 million term loan facility. Proceeds from the facility
will be used by Dana to repay its debtor-in-possession credit
facility, make other payments required upon exit from bankruptcy,
and provide liquidity to fund new product programs and other
investments.
Common Stock Begins Trading on NYSE
Effective Feb. 1, 2008, common stock in the new company will begin
trading on the New York Stock Exchange under the symbol DAN.
Shares of Dana Corporation common stock that had most recently
traded over the counter under the symbol DCNAQ have been canceled
and will no longer trade.
Dana Provides Documents to Lexington Entities
Lexington Dry Ridge Corp., Lexington Elizabethtown 730 Corp.,
Lexington Kalamazoo L.P., Lexington Owensboro Corp., LSAC
Crossvilee, L.P., and Lexington Tennessee Holdings, L.P., owners
of eight properties that are subject to assignment under the
Plan, have previously asked sufficient financial information from
the Debtors so that they may properly and adequately evaluate each
of the assignee's ability to perform all obligations the leases to
be assigned to it.
The Debtors told the Court that they have presented certain
financial information to the Lexington Entities under existing
confidentiality agreements. The Debtors said they intend to
present the information to the Court as evidence of the
Assignees' ability to perform their future obligations under the
Leases.
The Financial Information, however, include confidential and
commercially sensitive data, including balance sheets and
financial projections for certain of the Debtors' subsidiaries,
the Debtors' counsel, Corinne Ball, Esq., at Jones Day, in New
York, said.
The Debtors thus ask the Court's authority to file any of the
Financial Information under seal.
The Lexington Entities filed with the Court a response to the
Debtors' Notice of Service. The response, however, was filed
under seal.
In another filing, a lessor who has objected to the Debtors'
proposed cure amount, Claim Management Services Inc., withdrew
its cure amount objection.
About Dana
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/--
designs and manufactures products for every major vehicle producer
in the world, and supplies drivetrain, chassis, structural, and
engine technologies to those companies. Dana employs 46,000
people in 28 countries. Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle
customers, which collectively produce more than 60 million
vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total assets
and US$7,551,000,000 in total debts resulting in a total
shareholders' deficit of US$673,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represents the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC serves as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on Aug. 31,
2007. On Oct. 23, 2007, the Court approved the adequacy of the
Disclosure Statement explaining their Plan. Judge Burton Lifland
of the U.S. Bankruptcy Court for the Southern District of New York
entered an order confirming the Third Amended Joint Plan of
Reorganization of the Debtors on Dec. 26, 2007. (Dana Corporation
Bankruptcy News, Issue No. 70; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
FIDEICOMISO (MULTIPYME V): Moody's Rates Debt Securities at B1
--------------------------------------------------------------
Moody's Latin America has assigned a national scale rating of
Aa3.ar and a global local currency rating of B1 to the debt
securities of Fideicomiso Financiero MULTIPYME V issued by Bapro
Mandatos y Negocios S.A. -- acting solely in its capacity as
Issuer and Trustee.
The rated securities are backed by a pool of bills of exchange
signed by agricultural producers in Argentina. The bills of
exchange are guaranteed by Garantizar S.G.R., which is a financial
guarantor in Argentina. Garantizar has a local currency national
scale rating of Aa3.ar and global local currency rating of B1.
The rating assigned to this transaction is primarily based on the
rating of Garantizar. Therefore, any future change in the rating
of the guarantor may lead to a change in the rating assigned to
this transaction. The rating addresses the payment of interest
and principal on the legal final maturity date of the securities.
Structure
Bapro Mandatos y Negocios S.A. (Issuer and Trustee) issued one
class of debt securities denominated in Argentine pesos. The
rated securities will bear a 7.5% annual interest rate.
The rated securities will be repaid from cash flow arising from
the assets of the Trust, constituted by a pool of fixed rate bills
of exchange denominated in US dollars signed by agricultural
producers and guaranteed by Garantizar S.G.R. The bills of
exchange will bear the same interest rate as the rated securities.
Although the rated securities are denominated in US dollars, they
are payable in Argentine pesos at the exchange rate published by
Banco de la Nacion Argentina as of the day prior to the date that
the funds are initially deposited into the Trust account. As a
result, the dollar is used as a currency of reference and not as a
mean of payment. For that reason, the transaction is considered
to be denominated in local currency.
If, eight days before each payment date, the funds on deposit in
the trust account are not sufficient to make payments to
investors, the Trustee is obligated to request Garantizar to make
payment under the bills of exchange. Garantizar, in turn, will
have five days to make this payment into the trust account. Under
the terms of the transaction documents, the trustee has up to two
days to distribute interest and principal payments to investors.
Interest on the securities will accrue up to the date on which the
funds are initially deposited by either Garantizar, the exporter,
or the individual producers into the Trust account.
The designated Trustee in this transaction is Bapro Mandatos y
Negocios S.A., which is the Banco de la Provincia de Buenos Aires'
trustee company. Banco Provincia is the second largest bank in
Argentina and it is rated by Moody's on the Ba2/Aa2.ar level for
local currency deposits.
Rating Action:
-- US$4,031,500 in Fixed Rate Debt Securities of "Fideicomiso
Financiero MULTIPYME V", rated Aa3.ar (Argentine National
Scale) and B1 (Global Scale, Local Currency).
Issuer: Fideicomiso Financiero Multipyme V
-- VRD, Assigned B1
FIDEICOMISO (SECUPYME XXXII): Moody's Rates Debt Securities at B1
-----------------------------------------------------------------
Moody's Latin America has assigned a rating of Aa3.ar (Argentine
National Scale) and of B1 (Global Scale, Local Currency) to the
debt securities of Fideicomiso Financiero SECUPYME XXXII issued by
Banco de Valores S.A. -- acting solely in its capacity as Issuer
and Trustee.
The rated securities are backed by a pool of bills of exchange
signed by agricultural producers in Argentina. The bills of
exchange are guaranteed by Garantizar S.G.R., which is a financial
guarantor in Argentina. Garantizar has a rating of Aa3.ar
(Argentine National Scale) and of B1 (Global Scale, Local
Currency).
The rating assigned to this transaction is primarily based on the
rating of Garantizar. Therefore, any future change in the rating
of the guarantor may lead to a change in the rating assigned to
this transaction. The rating addresses the payment of interest
and principal on or before the legal final maturity date of the
securities.
Structure
Banco de Valores S.A. (Issuer and Trustee) issued one class of
debt securities denominated in US dollars. The rated securities
will bear a 7.5% annual interest rate.
The rated securities will be repaid from cash flow arising from
the assets of the Trust, constituted by a pool of fixed rate bills
of exchange denominated in US dollars signed by agricultural
producers and guaranteed by Garantizar S.G.R. The bills of
exchange will bear the same interest rate as the rated securities.
Although the rated securities are denominated in US dollars, they
are payable in Argentine pesos at the exchange rate published by
Banco de la Nacion Argentina as of the day prior to the date that
the funds are initially deposited into the Trust account. As a
result, the dollar is used as a currency of reference and not as a
mean of payment. For that reason, the transaction is considered
to be denominated in local currency.
If, eight days before the final maturity date, the funds on
deposit in the trust account are not sufficient to make payments
to investors, the Trustee is obligated to request Garantizar to
make payment under the bills of exchange. Garantizar, in turn,
will have five days to make this payment into the trust account.
Under the terms of the transaction documents, the trustee has up
to two days to distribute interest and principal payments to
investors. Interest on the securities will accrue up to the date
on which the funds are initially deposited by either Garantizar,
the exporter, or the individual producers into the Trust account.
Rating Action:
-- US$5,349,000 in Fixed Rate Debt Securities of "Fideicomiso
Financiero SECUPYME XXXII", rated Aa3.ar (Argentine
National Scale) and B1 (Global Scale, Local Currency)
Issuer: Fideicomiso Financiero SECUPYME XXXII
-- VRD, Assigned B1
HUDSON HIGHLAND: Board OKs US$15-Mln Common Share Buyback Program
-----------------------------------------------------------------
Hudson Highland Group Inc.'s Board of Directors has authorized the
repurchase of up to US$15 million of the company's common stock.
The company intends to make purchases from time to time as market
conditions warrant.
Update on Fourth Quarter 2007
The company said it will report fourth quarter 2007 revenue of
US$290.5 million and adjusted EBITDA of US$13.5 million from
continuing operations.
The company's discontinued operations include the Netherlands
Reintegration business it sold in December 2007 and the Energy and
Engineering business it sold on Feb. 5, 2008. For comparison
purposes as set forth including the results of discontinued
operations in the fourth quarter would have resulted in revenue of
US$331.5 million, compared with guidance of US$325 - US$340
million, and adjusted EBITDA of US$14.3 million, compared with
guidance of US$12 - US$14 million.
Restatement of Previously Issued Financial Statements
The company has determined, in consultation with its external
auditors, that a portion of the 2006 and 2007 earn out payments in
connection with a 2005 acquisition that the company originally
recorded as purchase price, should instead be recorded as expense
in the third and fourth quarters of 2006 and the first three
quarters of 2007. A current period amount is recorded in the
fourth quarter. This restatement is unrelated to the company's
accounting matter in the third quarter of 2007. The amounts to be
recorded as expense relate to a 2006 amendment to the original
acquisition agreement. The restatement does not affect the
company's cash flows for those periods.
The company will include the restated financial information for
the applicable periods in a filing with the Securities and
Exchange Commission prior to or in connection with the timely
filing of the company's Form 10-K for the year ended Dec. 31,
2007.
About Hudson Highland
Headquartered in New York, New York, Hudson Highland Group, Inc.
(Nasdaq: HHGP)-- http://www.hhgroup.com/-- provides permanent
recruitment, contract professionals and talent management services
worldwide. From single placements to total outsourced solutions,
Hudson helps clients achieve greater organizational performance by
assessing, recruiting, developing and engaging the best and
brightest people for their businesses. The company employs more
than 3,600 professionals serving clients and candidates in more
than 20 countries including Argentina, Australia, Belgium, Brazil,
and Canada.
* * *
As reported in the Troubled Company Reporter on Nov. 7, 2006,
Moody's Investors Service assigned a Ba2 rating to the company's
US$7,500,000 Income Notes Due 2042.
NEVO BANCO: Launches Class 1, ARS90 Mil. Short-Term Debt Issue
--------------------------------------------------------------
Nuevo Banco Industrial de Azul has launched a class1, ARS90-
million local currency short-term debt issue due in 270 days,
Business News Americas reports.
According to BNamericas, Nuevo Banco has called for qualified
investors to present bids to subscribe to the debt issue.
Nuevo Banco said in a filing with the Argentine stock exchange
that it will be accepting offers from investors until Feb. 8.
BNamericas relates that Citicorp Capital Markets will handle the
issue.
Nuevo Banco Industrial de Azul S.A is headquartered in Buenos
Aires, Argentina, and it had assets of ARS1.8 billion and deposits
for ARS0.8 billion, as of March 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 21, 2007, Moody's Investors Service assigned long- and short-
term global local-currency deposit ratings of Ba3 and Not Prime,
as well as long- and short-term foreign-currency deposit ratings
of Caa1 and Not Prime to Nuevo Banco Industrial de Azul S.A. At
the same time, Moody's assigned a Aa2.ar local-currency deposit
rating and a Ba1.ar foreign currency deposit ratings in the
Argentine national scale.
NVIDIA CORP: Inks Definitive Deal to Acquire AGEIA Technologies
---------------------------------------------------------------
NVIDIA Corporation has signed a definitive agreement to acquire
the privately-held, California-based AGEIA Technologies Inc.
"The AGEIA team is world class, and is passionate about the same
thing we are -- creating the most amazing and captivating game
experiences," stated NVIDIA president and Chief Executive Officer,
Jen-Hsun Huang. "By combining the teams that created the world's
most pervasive GPU and physics engine brands, we can now bring
GeForce(R)-accelerated PhysX to hundreds of millions of gamers
around the world."
"NVIDIA is the perfect fit for us. They have the world's best
parallel computing technology and are the thought leaders in GPUs
and gaming. We are united by a common culture based on a passion
for innovating and driving the consumer experience," said AGEIA
co-founder and CEO, Manju Hegde.
Like graphics, physics processing is made up of millions of
parallel computations. The NVIDIA(R) GeForce(R) 8800GT GPU, with
its 128 processors, can process parallel applications up to two
orders of magnitude faster than a dual or quad-core CPU.
"The computer industry is moving towards a heterogeneous computing
model, combining a flexible CPU and a massively parallel processor
like the GPU to perform computationally intensive applications
like real-time computer graphics," continued Mr. Huang. "NVIDIA's
CUDA(TM) technology, which is rapidly becoming the most pervasive
parallel programming environment in history, broadens the parallel
processing world to hundreds of applications desperate for a giant
step in computational performance. Applications such as physics,
computer vision, and video/image processing are enabled through
CUDA and heterogeneous computing."
The acquisition remains subject to customary closing conditions.
About AGEIA
Headquartered in Santa Clara, California, AGEIA Technologies Inc.
-- http://www.ageia.com-- is a privately-held company which
provides gaming physics technology. AGEIA's PhysX software is
widely adopted with more than 140 PhysX-based games shipping or in
development on Sony Playstation 3, Microsoft XBOX 360, Nintendo
Wii and Gaming PCs. AGEIA physics software is pervasive with over
10,000 registered and active users of the PhysX SDK. The company
is also credited with developing the world's first dedicated
hardware physics processor, the AGEIA PhysX processor.
AGEIA Technologies was founded in 2002 and has offices in Santa
Clara, California; St. Louis, Missouri; Zurich, Switzerland; and
Beijing, China.
About NVIDIA
Headquartered in Santa Clara, California, NVIDIA Corp. (Nasdaq:
NVDA) -- http://www.nvidia.com/-- creates innovative, industry-
changing products for computing, consumer electronics, and mobile
devices. The NVIDIA(R) graphics processing unit and media and
communications processor brands include NVIDIA GeForce(R), NVIDIA
GoForce(R), NVIDIA Quadro(R), and NVIDIA nForce(R). These product
families are transforming visually-rich applications such as video
games, film production, broadcasting, industrial design, space
exploration, and medical imaging. The company has offices
throughout Asia, Europe, and the Americas including Brazil and
Argentina.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 4, 2007, Standard & Poor's Ratings Services revised its
outlook on Nvidia Corp. to positive from stable, following several
quarters of strong operating performance despite the acquisition
of a key competitor by Advanced Micro Devices Inc. The corporate
credit rating is affirmed at 'BB-'.
REBERTCH Y ADP: Proofs of Claim Verification Ends on March 14
-------------------------------------------------------------
Susana Roiter, the court-appointed trustee for Rebertch y ADP SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
March 14, 2008.
Ms. Roiter will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 24 in Buenos Aires, with the assistance of Clerk No.
47, will determine if the verified claims are admissible, taking
into account the trustee's opinion, and the objections and
challenges that will determine if the verified claims are
admissible, taking into account the trustee's opinion, and the
objections and challenges that will be raised by Rebertch y ADP
and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Rebertch y ADP's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Ms. Roiter is also in charge of administering Rebertch y ADP's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Rebertch y ADP SA
Uruguay 239
Buenos Aires, Argentina
The trustee can be reached at:
Susana Roiter
M. T. de Alvear 1430
Buenos Aires, Argentina
TELECOM ARGENTINA: Launching IPTV Technical Tests in June
---------------------------------------------------------
Telecom Argentina would launch technical tests of IPTV services in
June, Argentine news daily El Cronista reports.
Telecom Argentina told El Cronista that it will wait for the
government to allow telecoms to offer broadcasting services before
launching the service.
Business News Americas relates that Telecom Argentina and
Telefonica de Argentina are waiting for government to make
modifications to regulations that prevent them to offer triple
play services.
Telecom Argentina's IPTV project manager Alejandra Rico told El
Cronista that the technical tests will focus on:
-- IPTV platform,
-- content, and
-- operational process.
There is no indication that the government would modify the
regulation this year, as any regulatory change will be slow with
many interests involved, BNamericas states, citing telcoms
consultancy Carrier y Asociados' director Enrique Carrier.
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- is the fixed-
lineoperator for local and long-distance services in northern
andsouthern Argentina. It also provides cellular and PCS
phoneservices in Argentina, as well as in Paraguay through a
68%stake in Nocleo. France Telecom formerly controlled the
companythrough its Nortel Inversora venture with Telecom
Italia.France Telecom sold its part of Telecom Argentina to the
WertheinGroup, an Argentine agricultural concern owned in part by
vicechairman Gerardo Werthein. As of 2007, current approximate
ownership of Telecom Argentina is: * 54.74% by Nortel Inversora
S.A., itself a consortium made up of: -- Werthein Group (48%) --
Telecom Italia -- France Telecom group (2%); * 41.5% publicly
traded; and * 4.21% employee stock ownership program France
Telecom sold its part of Telecom Argentina to the WertheinGroup,
an Argentine agricultural concern owned in part by vicechairman
Gerardo Werthein. As of 2007, current approximate ownership of
Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a
consortium made up of: -- Werthein Group (48%) -- Telecom Italia
group (50%) -- France Telecom group (2%); * 41.5% publicly traded;
and * 4.21% employee stock ownership program.
* * *
On Nov. 9, 2006, Fitch Ratings assigned a B long-term issuer
default rating on Telecom Argentina. Fitch's outlook for that
rating is stable. On Nov. 7, 2007, Fitch assigned an A national
long term rating on Telecom Argentina, with a stable outlook.
On Oct. 11, 2006, Standard & Poor's Ratings Services raised
Telecom Argentina S.A.'s counterparty credit rating to B+/Stable/
from B/Stable following the upgrade of the Republic of Argentina
to 'B+' from 'B'.
TURRA HNOS: Trustee Filing Individual Reports on March 28
---------------------------------------------------------
Lilia Mercedes Morales de Pioli, the court-appointed trustee for
Turra Hnos. Rectificaciones S.R.L.'s reorganization proceeding,
will submit validated claims as individual reports in the National
Commercial Court of First Instance in La Rioja on
March 28, 2008.
Ms. Morales de Pioli verified creditors' proofs of claim until
Dec. 17, 2007.
A general report that contains an audit of Turra Hnos.'s
accounting and banking records will be submitted in court on
May 16, 2008.
The trustee can be reached at:
Lilia Mercedes Morales de Pioli
Hipolito Yrigoyen 240, Ciudad de La Rioja
La Rioja, Argentina
TYSON FOODS: Board Declares US$0.04 Per Share Quarterly Dividend
----------------------------------------------------------------
Tyson Foods Inc.'s Board of Directors, at a meeting on Feb. 1,
2008, declared a quarterly dividend of US$0.04 per share on Class
A common stock and $0.036 per share on Class B common stock,
payable on June 15, 2008, to shareholders of record at the close
of business on June 1, 2008.
Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) --
http://www.tysonfoods.com/-- is a processor and marketer of
chicken, beef, and pork.
Tyson's U.S. beef plants are located in Amarillo, Texas; Dakota
City, Nebraska; Denison, Iowa; Finney County, Kansas; Joslin,
Illinois, Lexington, Nebraska and Pasco, Washington. The
company also has a beef complex in Canada, and is involved in a
vertically integrated beef operation in Argentina.
* * *
Tyson Foods Inc. continues to carry Moody's Ba1 corporate family
rating and Ba2 probability of default rating. The outlook is
negative.
* ARGENTINA: Obtains US$603,015 Financing from MIF
--------------------------------------------------
The Multilateral Investment Fund of the Inter-American Development
Bank has approved a nonreimbursable technical cooperation of
US$603,015 to Argentina to support the growth of the microfinance
industry.
The Funds will enable the development of training and technical
assistance programs for Argentine microfinance institutions in all
segments, they will also be used to create opportunities for
dialogue and dissemination among sector institutions and conduct
studies to detect unmet demand for training among microfinance
institutions.
The program will be executed by Fundacion Andares, a nonprofit
foundation working since 2006 to eliminate poverty and social
exclusion by supporting the development of microfinance in
Argentina. Part of the technical cooperation funds will go to
strengthen Fundacion Andares in its efforts to promote excellence
in management and innovation in the Argentine microfinance sector.
Mrs. Susana Garcia-Robles, Project Team Leader, "expects that the
collaboration between MIF and Fundacion Andares for the
development of the microfinance industry in Argentina will create
a demonstration effect that will serve as a catalyst for other
investors to enter into this industry".
The MIF, an autonomous fund administered by the IDB, promotes
development of micro- and small enterprises in Latin America and
the Caribbean. It has supported the expansion and
professionalization of microfinance in the region since its
creation.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned B+
long-term sovereign local and foreign currency ratings and B
short-term sovereign local and foreign long-term ratings on
Argentina. Standard & Poor's also placed 4 sovereign foreign
currency recovery rating and a BB transfer and convertibility
assessment rating. Standard & Poor's outlook for these ratings is
stable.
=============
B E R M U D A
=============
FIVE BALANCED: Sets Final Shareholders Meeting for February 11
--------------------------------------------------------------
Five Balanced Fund Ltd. will hold its final shareholders meeting
on Feb. 11, 2008, at 10:00 a.m., at:
Canon's Court
22 Victoria Street, Hamilton
Bermuda
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 three years from
the dissolution of the company, after which they
may be destroyed.
Five Balanced's shareholders decided on Dec. 14, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
James Keyes
Canon's Court
22 Victoria Street, P.O. Box HM 1179
Hamilton, Bermuda
INTELSAT LTD: Parent Closes Equity Acquisition Deal With Serafina
-----------------------------------------------------------------
Intelsat Ltd. disclosed in a press statement the successful
closing of the acquisition of all of the primary equity ownership
of its parent, Intelsat Holdings Ltd., by Serafina Holdings,
Limited, an entity formed by funds advised by BC Partners, Silver
Lake and certain other equity investors.
Under the transaction, the equity of Intelsat Holdings was valued
at approximately US$5.0 billion. Of the current shareholders of
Intelsat Holdings, the funds advised by or associated with Apax
Partners Worldwide LLP, Apax Partners, L.P., Apollo Management V,
L.P., Madison Dearborn Partners, LLC and Permira Advisers LLC,
will sell 100 percent of their interests in the company.
Following the closing, Intelsat's current executives will remain
in place and have an equity interest in Serafina Holdings, which
is expected to be renamed Intelsat Global, Ltd.
Immediately following the consummation of the transaction,
Intelsat (Bermuda), Ltd. assumed certain debt obligations entered
into by Serafina Holdings to effect the transaction and refinance
certain existing debt of Intelsat. The assumed debt includes a
bridge financing comprised of two tranches, a US$2.805 billion
cash pay senior unsecured bridge loan and a US$2.155 billion PIK
election bridge loan.
"This transaction closes at a time when Intelsat is seeing strong
momentum. We have improved the operating profile of our company,
based on initiatives such as our fleet management program and the
introduction of new services. Speaking on behalf of Intelsat's
management, we are looking forward to working with BC Partners and
Silver Lake as we continue to execute our growth strategy," said
Dave McGlade, the Chief Executive Officer of Intelsat.
Raymond Svider, a Managing Partner at BC Partners, added,
"Intelsat is a rare investment opportunity, providing revenue
diversity, stability and global presence combined with attractive
growth potential. We are proud to become associated with this
world class management team and are looking forward to
supporting them in taking the business to its next stage of
development."
Credit Suisse acted as financial advisor to Intelsat, Ltd. in
connection with the transaction. Intelsat's legal advisors
included Wachtell Lipton Rosen & Katz, Milbank, Tweed, Hadley and
McCoy LLP, Wiley Rein LLP, and Paul, Weiss, Rifkind, Wharton &
Garrison LLP. Merrill Lynch & Co. and Perella Weinberg Partners LP
acted as financial advisors, Latham & Watkins LLP as legal advisor
and PricewaterhouseCoopers LLP as accounting and tax advisor to
the acquiror.
About BC Partners
BC Partners is a leading international private equity firm,
operating through integrated teams based in Geneva, Hamburg,
London, Milan, New York and Paris. The latest fund, BCEC VIII,
closed in May 2005 with EUR5.9 billion of commitments. For over
20 years, the firm has developed a long track record of
successfully acquiring and developing businesses in partnership
with management, investing in 65 acquisitions with a combined
enterprise value of EUR49 billion. Recent investments include
Brenntag, Amadeus, Dometic, Picard, SEAT Pagine Gialle and Unity
Media.
About Silver Lake
Silver Lake -- http://www.silverlake.com/-- is a leader in large
private investments in technology, technology-enabled, and related
growth industries. Silver Lake seeks to achieve superior
financial returns by investing with the strategic and operating
insights of an experienced industry participant. Silver Lake's
mission is to function as a value-added partner to the management
teams of the world's leading technology franchises. Its portfolio
includes or has included technology industry leaders such as
Ameritrade, Avago, Avaya, Business Objects, Flextronics, Gartner,
Gerson Lehrman Group, Instinet, IPC Systems, MCI, NASDAQ,
NetScout, NXP, Sabre Holdings, Seagate Technology, Serena
Software, SunGard Data Systems, Thomson and UGS.
About Intelsat
Headquartered in Bermuda, Intelsat, is the largest fixed
satellite service operator in the world and is owned by Apollo
Management, Apax Partners, Madison Dearborn, and Permira.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2008, Moody's Investors Service downgraded Intelsat
Ltd.'s corporate family rating by two notches to Caa1.
INTELSAT LTD: Proposes 5-1/4% Senior Notes Redemption
-----------------------------------------------------
Intelsat Ltd., in connection with the successful closing of its
acquisition by BC Partners Holdings Limited and Silver Lake, has
intended to redeem all of its outstanding US$400 million 5-1/4%
Senior Notes due 2008.
Intelsat, Ltd. has issued a notice of redemption pursuant to the
indenture for the Notes stating that it intended to redeem all of
such Notes on March 5, 2008. The redemption price for the Notes
will be determined in accordance with the indenture plus accrued
and unpaid interest thereon to the Redemption Date.
About Intelsat
Headquartered in Bermuda, Intelsat, is the largest fixed
satellite service operator in the world and is owned by Apollo
Management, Apax Partners, Madison Dearborn, and Permira.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2008, Moody's Investors Service downgraded Intelsat
Ltd.'s corporate family rating by two notches to Caa1.
TRANS-PACIFIC MANAGEMENT: Proofs of Claim Filing Ends on Feb. 20
----------------------------------------------------------------
Trans-Pacific Management International Limited's creditors are
given until Feb. 20, 2008, to prove their claims to Ian Pilgrim,
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.
Trans-Pacific Management's shareholders agreed on Feb. 1, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Ian Pilgrim
c/o Mayflower Management Services Limited
Bamboo Gate, 11 Harbor Road
Paget PG01, Bermuda
===========
B R A Z I L
===========
AAR CORP: Prices Tender Offer on Convertible Notes at US$175-Mln
----------------------------------------------------------------
On Feb. 4, 2008, AAR CORP. said it will offer US$175 million in
aggregate principal amount of convertible senior notes in a
private offering to qualified institutional buyers under Rule 144A
of the Securities Act of 1933, as amended, subject to market and
other conditions, in two equal tranches of US$87.5 million
aggregate principal amount of Notes due 2014, and US$87.5 million
aggregate principal amount of Notes due 2016.
Upon conversion, holders will receive cash up to the principal
amount, and any excess conversion value will be delivered, at the
election of the company, in cash, common stock or a combination of
cash and common stock. The company may sell up to an additional
aggregate US$25 million of Notes upon exercise of an over-
allotment option that the company expects to grant to the initial
purchasers in connection with the offering.
In addition, the company expects to enter into separate
convertible note hedge and warrant transactions with an
affiliate of one of the initial purchasers of the Notes. These
transactions are intended to reduce potential dilution to the
company's common stock upon potential future conversion of the
Notes and generally have the effect on the company of increasing
the conversion price of the Notes. In connection with these
transactions, the hedge counterparty has advised the company that
it or its affiliates may enter into various derivative
transactions with respect to the company's common stock
concurrently with or shortly following pricing of the Notes.
These activities could have the effect of increasing or preventing
a decline in the price of the company's common stock concurrently
with or following the pricing of the Notes. In addition, the
hedge counterparty or its affiliates may from time to time,
following the pricing of the Notes, enter into or unwind various
derivative transactions with respect to the
company's common stock and/or purchase or sell the company's
common stock in secondary market transactions. These activities
could have the effect of decreasing the price of the company's
common stock and could affect the price of the Notes.
The company expects to use the net proceeds of the offering to
repay short-term indebtedness under its revolving credit facility,
to pay the net cost of the above-described convertible note hedge
and warrant transactions and for general corporate purposes. The
Notes have not been registered under the Securities Act or any
state securities laws and, unless so registered, may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
About AAR Corp.
AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides
products and value-added services to the worldwide
aviation/aerospace industry. With facilities and sales locations
around the world, AAR uses its lose-to-the-customer business model
to serve airline and defense customers through Aviation Supply
Chain; Maintenance, Repair and Overhaul; Structures and Systems
and Aircraft Sales and Leasing. In Asia Pacific, the company has
offices in Singapore, China, Japan and Australia. In Latin
America, the company has a sales office in
Rio de Janeiro, Brazil.
* * *
AAR Corporation continues to carry Moody's Investors Service's
'Ba3' long-term corporate family rating, which was assigned on
November 2006.
AAR CORP: S&P Puts BB Rating on US$175-Mln Convertible Sr. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB' rating to
AAR Corp.'s proposed US$175 million of convertible senior
unsecured notes to be issued in two equal tranches: US$87.5
million notes due 2014 and US$87.5 million notes due 2016. At the
same time, S&P affirmed its ratings, including the 'BB' corporate
credit rating, on the company. The outlook is stable.
The notes are offered under Rule 144A with registration rights.
Proceeds of the notes are expected to be used to repay about
US$125 million of borrowings under the company's revolving credit
facility and for other purposes.
"The ratings on AAR reflect the risks associated with its primary
market, the highly cyclical and competitive airline industry, and
increasing financing requirements to support growth initiatives,"
said S&P's credit analyst Roman Szuper. "These factors are offset
in part by AAR's established business position, currently
generally favorable market conditions, and an overall appropriate
financial profile."
The commercial aviation market should remain fairly strong in
2008, although global flying hours are likely to increase at a
lower rate than in recent years because of a slower economy.
This, coupled with the expanding jetliner fleet in service and
outsourcing trends, should continue to benefit the company's
aftermarket parts and services operations, despite high oil prices
that constrained gains at many airlines. In addition, the
company's extensive cost-reductions, strength in its defense-
related manufacturing and logistics business (about 30% of
revenues, mostly in the United States), a diversified customer
base, and an expansion of operations in Asia and Europe have
helped the company rebound from its weak financial performance
during the industry downturn in 2001-2003. As a result, operating
margins and return on capital have increased, but both remain
relatively modest, at about 12%. Although S&P expects further
revenue and earnings gains, the highly competitive operating
environment could limit profitability improvement. Moreover, cash
generation has been limited by the growth of the business in the
past two years.
Generally favorable conditions in the airline and defense
industries and expected further gains in the company's
profitability should support the its growth initiatives and allow
it to maintain a financial profile consistent with the rating. If
there is a material improvement in financial performance, S&P
could revise the outlook to positive. An outlook revision to
negative is a less likely scenario, but S&P would consider this
action if renewed problems in the airline industry cause the
company's revenue and earnings growth to stall.
Wood Dale, Illinois-based AAR Corp. (NYSE: AIR) --
http://www.aarcorp.com/-- is a major independent provider of
aviation support services, operating in four groups: the aviation
supply chain (45%-50% of revenues); maintenance, repair, and
overhaul (20%-25%); structures and systems (about 25%); and
aircraft sales and leasing (about 5%). North America is the
company's largest market, accounting for 70%-75% of sales. In
Asia Pacific, the company has offices in Singapore, China, Japan
and Australia. In Latin America, the company has a sales office
in Rio de Janeiro, Brazil.
BANCO DO BRASIL: Issuing 350,000 BB Previdencia Cards in 2008
-------------------------------------------------------------
Banco do Brasil said in a press statement that it plans to issue
350,000 of its BB Previdencia Social plastic cards in 2008.
Banco do Brasil told Business News Americas that the BB
Previdencia card was the first in a family of cards it plans to
launch for Instituto Nacional do Seguro Social pension system
beneficiaries. The cards can be used to make pension benefit
withdrawals and credit and debit card purchases.
According to Banco do Brasil's press statement, the BB Previdencia
card will be issued to people who sign up to get their INSS
payments through Banco do Brasil. However, it is not necessary to
open a checking account to get the new card.
The INSS has some 19 million beneficiaries. About six million of
those beneficiaries get their pension benefits through Banco do
Brasil, BNamericas states, citing 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.
In May 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 DO BRASIL: Linux Software Could Bring BRL30 Mil. in Savings
-----------------------------------------------------------------
Banco do Brasil would save BRL30 million by 2010 from its software
migration to Linux, Computerworld Brazil reports.
According to Computerworld Brazil, Banco do Brasil already had
BRL60 million cost savings since it started migrating to Linux
from Microsoft in 2003. Last year, about 75% of Banco do Brasil's
technological park operated with the GNU/Linux system.
Banco do Brasil allotted BRL1.5 billion to information technology
in 2007, Computerworld Brazil states.
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+.
DUERR AG: Indian Unit Posts 50% Increase in Sales
-------------------------------------------------
The Duerr mechanical and plant engineering group is benefiting
from the automotive industry's strong expansion in India. In
2007, new orders from business in India rose by 20% to over
EUR130 million, and sales revenue increased by 50%.
The company is currently building the paint shop for the widely
publicized Nano subcompact from Tata. Duerr's new LeanLine
painting concept is being used there, which allows good paint
quality to be achieved despite low capital investment costs. Duerr
is also supplying LeanLine equipment for other paint shop projects
in India, for example, at the VW plant in Pune and for Tata in
Lucknow. In January 2008, Duerr has already received two orders
from Ford and the Mahindra Group in India. Other interesting
projects are coming up during the year and will contribute to
Duerr's growth in India.
Because of the growth, Duerr is greatly expanding its capacities
in India. In the past year, the number of employees there
increased by 90% to over 300. At its Chennai site, the company
furthermore plans to set up an engineering center where about 60
engineers will design paint shops and assembly lines in proximity
to customers.
"India is one of the fastest-growing markets for us. We are
benefiting there from our good contacts with both domestic and
foreign automakers," Ralf Dieter, CEO of Duerr AG. "Experts
expect that production of passenger cars and light trucks on the
subcontinent will double in the next five years to about 3.7
million units. The automotive industry's buildup of additional
production capacities makes profitable growth in India possible
for us."
About Duerr
Headquartered in Stuttgard, Germany, The Duerr Group
-- http://www.durr.com/en/-- supplies products, systems, and
services for automobile manufacturing. Duerr designs and builds
paint shops and final assembly plants.
The Duerr Group also operates in Czech Republic, France, U.K.,
Italy, Netherlands, Poland, Russia, Slovakia, Spain, Turkey,
Australia, Brazil, China, India, Japan, Mexico, South Africa,
South Korea and the U.S.A.
* * *
As of Nov. 19, 2007, Duerr AG carries B2 Corporate Family, B2
Probability of Default and Caa1 Senior Subordinate ratings from
Moody's Investor Service. Moody's said the outlook is stable.
The company also carries B Long-Term Foreign Issuer Credit and
Local Issuer Credit ratings from Standard & Poor's. S&P said
the Outlook is Stable.
FIDELITY NATIONAL: Inks Online Banking Pact With Digital Insight
----------------------------------------------------------------
Fidelity National Information Services Inc. has entered into a new
strategic relationship with Digital Insight, a leading provider of
online banking services to midmarket banks and credit unions in
the United States. Under terms of this agreement, Digital Insight
will offer Fidelity's Premium Bill Pay and Presentment solution to
its clients.
"Our companies have a strong, mutually beneficial relationship
that helps deliver market-leading online banking technologies to
our clients," said Digital Insight vice president and general
manager of Consumer Solutions, Robb Gaynor. "Adding FIS' solution
to our existing bill payment offerings provides Digital Insight
financial institutions with yet another product that can help them
become the center of their customers' financial lives."
"We are very pleased to partner with an industry leader such as
Digital Insight to provide a highly competitive, comprehensive
online banking and bill payment product offering," said Fidelity's
Integrated Financial Solutions division executive vice president,
Anthony Jabbour. "Digital Insight's broad network of online
banking relationships will enable FIS to further expand our
presence in the financial services industry."
A large and rapidly growing number of banks and credit unions in
the U.S. provide FIS' Premium Bill Pay and Presentment as part of
their Internet banking offering. FIS' Premium Bill Pay provides
consumers with a flexible, intuitive and convenient bill payment
service. The product offers market- leading features such as
variable recurring payments; robust user-driven alerts that
provide time-critical bill pay activity information and deter
fraud; payment authorizations via e-mail; multiple payment account
options; secure messaging; real-time funds movement; and access to
bill information directly from a huge network of electronic
billers.
About Intuit Inc./Digital Insight
Digital Insight was acquired by Intuit Inc. --
ttp://www.intuit.com -- in February 2007. Intuit Inc. is a
leading provider of business and financial management solutions
for small and midsized businesses; financial institutions,
including banks and credit unions; consumers and accounting
professionals. Its flagship products and services, including
QuickBooks(R), Quicken(R) and TurboTax(R) software, simplify
small-business management and payroll processing, personal
finance, and tax preparation and filing. ProSeries(R) and
Lacerte(R) are Intuit's leading tax preparation software suites
for professional accountants. The company's Financial
Institutions division, anchored by Digital Insight, provides on-
demand banking services to help banks and credit unions serve
businesses and consumers with innovative solutions.
Founded in 1983, Intuit had annual revenue of US$2.67 billion in
its fiscal year 2007. The company has approximately 8,000
employees and major offices in the United States, Canada, the
United Kingdom and other locations.
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.
FORD MOTOR: January 2008 Sales Decreases 4% at 159,914
------------------------------------------------------
Total Ford Motor Company sales in January, including Jaguar, Land
Rover, and Volvo, were 159,914, down 4%.
Demand for Ford's crossovers remained strong in January. Sales
for the Ford Edge were 95% higher than a year ago and the Lincoln
MKX was up 78%.
Retail demand for Ford, Lincoln and Mercury cars also was strong
in January, especially for the new Focus. Sales for the Focus
were up 44% compared with a year ago, with retail sales up 33%.
Combined retail sales for the Ford Fusion, Mercury Milan, and
Lincoln MKZ also were higher than a year ago.
"We're very pleased with this result," Jim Farley, Ford's group
vice president, Marketing and Communications, said. "Our dealers
really delivered this month, despite a challenging economic and
competitive environment.
"It's not going to get any easier -- at least for awhile," Mr.
Farley said. "Recent monetary actions and the proposed stimulus
package may help the economy later this year, but we're not
pinning our hopes on that. Our plan is based on restructuring our
business to be profitable at lower demand and changed mix while
also accelerating the development of new products people want to
buy."
The next wave of new Ford products will arrive this summer -- the
distinctively designed Ford Flex crossover and the elegant Lincoln
MKS sedan. A new Ford F-150 pickup truck will debut later in the
fall.
Ford, Lincoln and Mercury sales totaled 148,355, down 4% compared
with a year ago.
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.
FORD MOTOR: Kicks Off 2008 with 9.6% Sales Increase in Canada
-------------------------------------------------------------
Ford Motor Company of Canada Ltd. rang in the New Year with an
overall sales increase of 9.6%. Ford trucks led the charge with a
14.8% rise over last year's totals for the month. And while Ford
car sales slipped 5.1%, sales of the redesigned Ford Focus were up
22% and Ford Mustang marked a 6.5% increase in January.
"Canadian vehicle shoppers look for quality, versatility and
style. We've listened carefully to our customers and we are
delivering the kinds of vehicles they want to drive," Barry Engle,
who was recently named president and CEO, Ford of Canada, said.
"Now we have a strong start to 2008, and with new products like
the break-through Ford Flex crossover and the new 2009 Ford F-150
coming this year, we'll have even more to offer Canadians."
Last month, Ford of Canada's overall sales increased 9.6% to
12,733 units. Total truck sales were up 14.8% at 9,871 units and
total car sales of 2,862 units mark a 5.1% decline compared to
last January.
January Highlights:
* Ford Edge sales increase 151%;
* Ford Escape sales rise 60%, marking its best January ever;
* Ford Ranger saw a 56% sales jump;
* Ford Taurus X sales increase 36%;
* Ford Explorer up 31%;
* Ford Expedition sales rise 18%; and
* Lincoln MKX up 29%.
January 2008 Vehicle Sales
January 2008 2007 % Change
------- ---- ---- --------
Total Vehicles 12,733 11,614 9.6%
Total Cars 2,862 3,015 -5.1%
Total Trucks 9,871 8,599 14.8%
About Ford
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.
FREESCALE SEMI: To Acquire SigmaTel for US$110 Million
------------------------------------------------------
Freescale Semiconductor and SigmaTel Inc. have entered into a
definitive agreement for Freescale to acquire SigmaTel. SigmaTel
is a leading provider of analog intensive, mixed-signal integrated
circuits for the digital multimedia market.
Under the terms of the agreement, Freescale will pay US$3 per
outstanding share of SigmaTel stock representing approximately
US$110 million in cash. The agreement is subject to various
customary closing conditions, including all necessary shareholder
and regulatory approvals, and is expected to close in the second
quarter of fiscal year 2008.
"The SigmaTel acquisition enhances the long-term, strategic value
we can deliver to our customers," said Lynelle McKay, senior vice
president and general manager of Freescale's Networking and
Multimedia Group. "Freescale's proven strengths in the high-
performance multimedia and general purpose markets are
complemented by SigmaTel's strong analog and mixed-signal
expertise in the portable media player and consumer audio
markets."
"The increased demand for feature rich, always-connected consumer
electronics devices is driving manufacturers to look for platform-
based solutions that will accelerate time to market," said Phil
Pompa, president and Chief Executive Officer of SigmaTel. "With
the addition of SigmaTel, Freescale is the obvious choice for
these next-generation devices."
Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.
Freescale Semiconductor became a publicly traded company in July
2004. The company has design, research and development,
manufacturing or sales operations in more than 30 countries. In
Latin America, the company has operations in Argentina, Brazil
and Mexico. In Europe, the company has operations in Czech
Republic, France, Germany, Ireland, Italy, Romania, Turkey and
the United Kingdom. Revenues for the 12 months ended
Mar. 31, 2007, were US$6.2 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Moody's Investors Service lowered Freescale
Semiconductor Inc.'s ratings, including its Corporate Family
Rating to B1 from Ba3 and Probability of Default Rating to B1 from
Ba3.
GENERAL MOTORS: January 2008 Sales Increased 2.1% to 252,565
------------------------------------------------------------
General Motors Corp. dealers in the United States delivered
252,565 vehicles in January, an increase of 2.1%, compared with
the same month last year. The company continued its efforts to
focus on improved retail sales, showing an increase of more than
11%.
Very strong retail sales of 186,187 vehicles were driven by a more
than 31% surge in retail car sales. GM retail share in the U.S.
has remained essentially stable for the past two and one-half
years. Total truck sales of 148,191 were up more than 3% compared
with a year ago.
"January's performance strongly indicates that, along with our
great market position in trucks and crossovers, GM is back in the
car business," Mark LaNeve, vice president, GM North American
Vehicle Sales, Service and Marketing, said. "Our new launch
vehicles, including the award-winning Chevrolet Malibu and
Cadillac CTS had a sensational month, as did the Chevrolet Cobalt,
Pontiac G5 and G6, Saturn AURA, Buick Lacrosse and Cadillac STS.
Overall, we've had year-over-year retail sales increases in four
of the past five months."
Chevrolet Malibu retail sales were up 198%, while total sales
climbed 58%, compared with a year ago. Chevrolet retail car sales
were up 62% compared with a year ago. Cadillac CTS deliveries
were up 95% total and 104% retail compared to last January.
GM's fuel-efficient small cars saw substantial total and retail
growth. Chevrolet Aveo total sales were up 40%, while retail
sales were up 65%; Cobalt was up 33% total and 65% retail; Pontiac
G5 was up 50% total and 71% retail, while Vibe was up 10% total
and 58% retail when compared with January 2007.
The Buick Enclave, GMC Acadia and Saturn OUTLOOK together
accounted for more than 12,200 retail vehicle sales in the month.
The mid-utility crossover segment grew retail sales by 144%
compared with year-ago January levels. Total sales of GM's mid-
utility crossovers were up 134% to more than 12,600 vehicles
compared with a year ago.
Small crossover utilities, led by the Saturn VUE, Chevrolet
Equinox and Pontiac Torrent pushed up GM's total sales in that
segment by 51%, while retail volume rose 38% compared with last
year.
"Our retail increase helped move our mix of retail sales as a
percentage of total sales up by 6 points," Mr. LaNeve added. "We
are improving our quality of share while offering vehicles that
have industry-leading value, great fuel economy and the best
warranty coverage of any full-line automaker."
Chevrolet retail sales were up 13%, Pontiac was up 17%, Buick was
up 13%, GMC was up 15%, Cadillac was up 11% and Saturn retail
sales were up 5% compared with a year ago.
Certified Used Vehicles
January 2008 sales for all certified GM brands, including GM
Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles,
Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned
Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 37,669
vehicles, down 13% from last January.
"January sales for GM Certified Used Vehicles were up 10 percent
from the previous month, but down 11% from the brand's best
January sales month ever in 2007," Mr. LaNeve said. "We're
optimistic about growing sales in the first quarter as consumers
opt for financing similar to new vehicles on some of our most
popular models and as more highly equipped off-rent vehicles work
their way into GM Certified inventory in coming months."
GM North America
In January, GM North America produced 297,000 vehicles (106,000
cars and 191,000 trucks). This is down 16,000 units or 5%
compared to January 2007 when the region produced 313,000 vehicles
(135,000 cars and 178,000 trucks). (Production totals include
joint venture production of 13,000 vehicles in January 2008 and
15,000 vehicles in January 2007.)
The region's 2008 first-quarter production forecast is revised at
965,000 vehicles (357,000 cars and 608,000 trucks), up 15,000
units or 2% from last month's guidance.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2006, nearly 9.1 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is
the industry leader in vehicle safety, security and information
services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service affirmed its rating for
General Motors Corporation (B3 Corporate Family Rating, Ba3 senior
secured, Caa1 senior unsecured and SGL-1 Speculative Grade
Liquidity rating) but changed the outlook to Stable from Positive.
In an environment of weakening prospects for US auto sales GM has
announced that it will take a non-cash charge of US$39 billion for
the third quarter of 2007 related to establishing a valuation
allowance against its deferred tax assets (DTAs) in the US, Canada
and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
HUGHES NETWORK: Indian Unit Inks Broadband Service Deal With Comat
------------------------------------------------------------------
Hughes Network Systems LLC's Hughes India has signed a contract
with Comat Technologies to supply ten thousand broadband satellite
terminals, together with its nationwide HughesNet satellite
services and applications to be delivered at rural business
centers across multiple states in India.
Comat is the premier e-governance organization in India, having
more than a decade of experience working with government, public,
private and multi-lateral organizations, and Hughes has been the
world leader in broadband satellite networks and services for over
20 years.
Speaking about the agreement with Hughes, Comat President Sriram
Raghavan stated, "Having strong experience in delivering e-
governance solutions and services in partnership with various
states, Comat has established a unique blend of content and
delivery that has allowed the concept of a community services
center (CSC) to be become a reality. Together with Hughes, the
company is now gearing up to deploy these CSC's throughout India's
rural regions."
Hughes Network President and CEO, Pradman Kaul added that "this
agreement demonstrates our collective ability to close the so-
called digital divide in rural India, combining our advanced
equipment technology, HughesNet satellite broadband services, and
Comat's e-governance applications. Customers everywhere will soon
enjoy high-speed internet access, and a growing range of e-
governance and other value-added applications such as distance
learning on an affordable, pay as you go basis."
Hughes India and Comat consortium won the right to roll out the
kiosks in Sikkim, Tripura and various parts of Uttar Pradesh,
Haryana and Uttaranchal through a competitive bidding process for
the Government of India's Community Services Centers. Hughes
India President and CEO, Pranav Roach said, "Hughes and Comat have
been working together through numerous initiatives to bring the
benefits of broadband to people in rural and semi urban areas.
Two thousand of the 10 thousand terminals have already been
delivered, and we are working closely with Comat to ensure smooth
deployment of the HughesNet Fusion Services at these rural centers
in the five states."
About Comat
Based in Bangalore, India, Comat Technologies --
http://www.comat.com-- is a Social Enterprise leader in rural e-
governance solution providers for over a decade in the emerging
economies. The company has an enviable record of deploying ICT
(Information and Communication Technologies) in rural and semi-
urban areas. Its expertise lies in understanding customer needs
and defining robust solutions, which stems from its experience
over the years in serving many government departments and
successfully executing projects for multi-lateral agencies.
Through its e-governance & rural empowerment solutions powered by
public-private-partnership models, Comat enables governments and
private enterprises to reach citizens with a host of services and
products, under a single window. Comat is a private equity and
venture capital funded profitable company.
About Hughes Network Systems
Headquartered in Germantown, Maryland, Hughes Network Systems LLC
(NASDAQ:HUGH) -- http://www.hughes.com/-- a wholly owned
subsidiary of Hughes Communications Inc., provides broadband
satellite networks and services for large enterprises,
governments, small businesses, and consumers. Hughes offers
complete turnkey solutions, including program management,
installation, training, maintenance and support-for professional
and rapid deployment anywhere, worldwide. The company owns and
operates a global base of HughesNet shared hub services throughout
the United States, Brazil, China, Europe, and India. In Europe,
Hughes maintains operations facilities and/or sales offices in
Germany, U.K., Italy, Czech Republic, and Russia.
* * *
Moody's Investors Service assigned a B1 rating to Hughes Network
Systems LLC's proposed US$115 million senior unsecured term loan,
due 2014.
In addition, the ratings agency affirmed the B1 corporate family
rating, the B1 rating on the existing US$450 million senior notes
due 2014 and the Ba1 rating on the US$50 million senior secured
revolving credit facility. The proceeds of the new term loan will
be used primarily to fund capital expenditures and for general
corporate purposes.
NET SERVICOS: Earns BRL96 Million in 2007 Fourth Quarter
--------------------------------------------------------
Net Servicos de Comunicacao S.A. reported net earnings of
BRL96 million for the fourth quarter of 2007, an increase of
243.3%, compared to net earnings of BRL28 million for the same
quarter of 2006. Net income in fiscal year 2007 grew by 150.5% to
BRL207.8 million, compared with the BRL82.9 million reported a
year earlier.
For the full year of 2007, net Revenue climbed by 28.0% to
BRL2,901.9 million, compared with BRL2,266.7 million in 2006.
Average Revenue per User grew 9% in the year to BRL131.34, from
BRL120.51 in 2006. The main drivers of these increases were the
growth in the subscriber base and the Company's ability to sell to
its clients not only more products, but also products with higher
value added. Operating Costs in 2007 stood at BRL1,379.7 million,
growing by 30.7% in relation the BRL1,056.0 million recorded the
year before. Programming Costs increased by 20.1% in the year,
mainly due to the higher number of Pay TV subscribers, while Other
Operating Costs, comprised mainly of costs with the call center
and the contracting of bandwidth for Internet service (link), rose
by 75.9% in the period.
The pay TV subscriber base reached 2,475,000 at the end of 2007,
expanding by 16% from 2,142,000 subscribers in the previous year;
the broadband subscriber base increased to 1,424,000, growing by
65% from 864,000; and the voice subscriber base totaled 567,000,
expanding by 212% (all figures in relation to yearend 2006).
Selling, general and administrative expenses totaled
BRL735.6 million in 2007, 35.9% higher than the BRL541.4 million
recorded in 2006. Selling Expenses were up 23.5%, driven by
higher expenses with sales commissions because of the higher sales
volume in the year, as well as higher expenses with advertising
campaigns. General and Administrative Expenses increased by
17.4%.
Consolidated EBITDA was BRL804.3 million in 2007, up 25.9% in
relation to the BRL638.7 million reported in 2006. EBITDA margin
remained stable at 28%, within the range considered adequate by
the company, given the Company's execution of a strategy of strong
organic growth in a highly competitive scenario.
Headquartered in Sao Paulo, Brazil, Net Servicos de Comunicacao
SA -- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1
-- is the largest cable company in Latin America with
approximately 2.4 million Pay TV subscribers as of Sept. 30,
2007. The company also offers bidirectional broadband Internet
access through its Virtua franchise and voice services through
Net Fone via Embratel. The acquisition of BIGTV will add 107
thousand and 56 thousand pay-TV and broadband subscribers,
respectively, to Net's subscriber base.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 21, 2008, Moody's Investors Service assigned a Ba2 foreign
currency rating to the proposed up to US$200 million guaranteed
long term senior unsecured notes to be issued by Net Servicos de
Comunicacao S.A. The rating outlook is stable.
USINAS SIDERURGICAS: Acquires 3 Iron Ore Miners for US$295 Million
------------------------------------------------------------------
Usinas Siderurgicas de Minas Gerais SA said in a statement that it
has acquired 100% of Minas Gerais iron ore miners J Mendes,
Somisa, and Global Mineracao for an initial total of
US$925 million.
According to Usinas Siderurgicas' statement, the acquisition of
the miners "are in line with [the company's] long-term strategy,
in keeping with the plan of expansion of its plants and its full
payment capacity." Usinas Siderurgicas could make further
payments for the takeover depending on the results of drilling
over the next two years.
The purchase of the miners is a definitive transaction in terms of
the ongoing consolidation of the iron ore supply market in Minas
Gerais, Business News Americas relates.
Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de
Minas Gerais SA is among the world's 20 largest steel
manufacturing complexes, with a production capacity of
approximately 10 million tons of steel. Usiminas System
companies produces galvanized and non-coated flat steel products
for the automotive, small and large diameter pipe, civil
construction, hydro-electronic, rerolling, agriculture, and road
machinery industries. Brazil consumes 80% of its products and
the company's largest export markets are the US and Latin
America. The company also sells in China and Japan.
* * *
As reported on Feb. 1, 2008, Moody's assigned a Ba1 local currency
rating and an Aa1.br rating on its Brazilian national scale to the
BRL500 million subordinated debentures due 2013 to be issued by
Usinas Siderurgicas de Minas Gerais S.A.
As reported in the Troubled Company Reporter-Latin America on
July 23, 2007, Moody's Investors Service upgraded the foreign
currency debt ratings of Usinas Siderurgicas de Minas Gerais
S.A. -- USIMINAS, and Companhia Siderurgica Paulista -- COSIPA,
to Ba1 from Ba2, and assigned a corporate family rating of Ba1
on its global scale and Aa1.br rating on the Brazilian national
scale. Moody's said the ratings outlook is positive.
* BRAZIL: Petroleo Brasileiro Inks Black Sea Oil Drilling Pact
--------------------------------------------------------------
Petroleo Brasileiro SA and Turkiye Petrolleri AO agreed to begin
drilling for oil in 2010 in the Black Sea, according to a Referans
report cited by Ayla Jean Yackley of Bloomberg News.
Both oil companies, Bloomberg says, have 50 percent stakes in two
Black Sea blocks.
Turkiye Petrolleri Chief Executive Officer Mehmet Uysal told
Referans that the oil reserve at the site is "big" enough to cover
Turkish consumption but declined to specify the size of the
reserves, Bloomberg News relates.
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
===========================
#1 NDC FUDOSAN: Proofs of Claim Filing Deadline is February 17
--------------------------------------------------------------
#1 NDC Fudosan Fund Co. Ltd.'s creditors are given until
Feb. 17, 2008, to prove their claims to John Cullinane and Derrie
Boggess, 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.
#1 NDC Fudosan's shareholder decided on Jan. 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:
John Cullinane and Derrie Boggess
c/o Walkers SPV Limited,
Walker House, 87 Mary Street, George Town,
Grand Cayman KY1-9002, Cayman Islands
Telephone: (345) 914-6305
ABN AMRO GENERAL: Proofs of Claim Filing is Until February 10
-------------------------------------------------------------
ABN Amro General Partner III Inc.'s creditors are given until
Feb. 10, 2008, to prove their claims to John Cullinane and Derrie
Boggess, 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.
ABN Amro General's 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:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
ABN AMRO EMERGING: Proofs of Claim Filing Ends on February 10
-------------------------------------------------------------
ABN Amro Emerging Markets Debt Hedge Fund Inc.'s creditors are
given until Feb. 10, 2008, to prove their claims to John Cullinane
and Derrie Boggess, 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.
ABN Amro Emerging's shareholder decided 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:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
ABN AMRO JAPAN: Proofs of Claim Filing Deadline is February 10
--------------------------------------------------------------
ABN Amro Japan Equity Long Short Fund Inc.'s creditors are given
until Feb. 10, 2008, to prove their claims to John Cullinane and
Derrie Boggess, 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.
ABN Amro Japan's shareholder decided on Dec. 12, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
BROADWAY FINANCE: Proofs of Claim Filing is Until February 12
-------------------------------------------------------------
Broadway Finance Limited's creditors are given until Feb. 12,
2008, to prove their claims to Westport 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.
Broadway Finance's shareholder decided on Jan. 23, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Westport Services Ltd.
Attention: Evania Ebanks
Paget-Brown Trust Company Ltd.
Boundary Hall, Cricket Square
P.O. Box 1111, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
CYPRESSTREE INVESTMENT: Proofs of Claim Filing Ends on Feb. 8
-------------------------------------------------------------
Cypresstree Investment Partners I, Ltd.'s creditors are given
until Feb. 8, 2008, to prove their claims to David Dyer, 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.
Cypresstree Investment'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 liquidator can be reached at:
David Dyer
Deutsche Bank (Cayman) Limited
P.O. Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
George Town, Grand Cayman KY1-1104
Cayman Islands
CYPRESSTREE INVESTMENT: Final Shareholders Meeting is on Feb. 8
---------------------------------------------------------------
Cypresstree Investment Partners I, Ltd., will hold its final
shareholders meeting on Feb. 8, 2008, at:
Deutsche Bank (Cayman) Limited
Boundary Hall, Cricket Square
171 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) giving explanation thereof.
Cypresstree Investment's shareholders decided on Dec. 21, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
David Dyer
P.O. Box 1984, Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 949 8244
Fax: (345) 949 5223
GLEACHER EQUITY: Proofs of Claim Filing Deadline is February 10
---------------------------------------------------------------
Gleacher Equity Opportunity Fund Ltd.'s creditors are given until
Feb. 10, 2008, to prove their claims to John Banks and Gleacher
Equity Opportunity Fund 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.
Gleacher Equity's shareholder decided on Jan. 3, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Banks
Gleacher Equity Opportunity Fund Ltd.
c/o Gleacher Fund Advisors LP
60 Arch Street, Greenwich
Connecticut, USA
Contact for inquiries:
Walkers
Attention: Matthew Goucke
c/o Walkers, Walker House
87 Mary Street, George Town
Grand Cayman KY1-9001, Cayman Islands
Phone: 345 914 6332
Fax: 345 814 8332
E-mail:matthew.goucke@walkersglobal.com
KEVIAN CAPITAL: Sets Final Shareholders Meeting for February 8
--------------------------------------------------------------
Kevian Capital Fund II, Ltd., will hold its final shareholders
meeting on Feb. 8, 2008, at 9:00 a.m. at:
dms Corporate Services Ltd.
Ansbacher House, 20 Genesis Close
P.O. Box 1344 George Town, Grand Cayman KY1-1108
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process;
2) determining the manner in which the books, accounts
and documentation of the company and of the
liquidator should be maintained and subsequently
disposed; and
3) giving explanation thereof.
Kevian Capital's shareholders decided on Dec. 28, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
dms Corporate Services Ltd.
Ansbacher House, 20 Genesis Close
P.O. Box 1344, George Town
Grand Cayman KY1-1108, Cayman Islands
KEVIAN CAPITAL FUND: Final Shareholders Meeting is on Feb. 8
------------------------------------------------------------
Kevian Capital Fund, Ltd., (SPC) will hold its final shareholders
meeting on Feb. 8, 2008, at 10:00 a.m. at:
dms Corporate Services Ltd.
Ansbacher House, 20 Genesis Close
P.O. Box 1344 George Town, Grand Cayman KY1-1108
Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the winding-up process;
2) determining the manner in which the books, accounts
and documentation of the company and of the
liquidator should be maintained and subsequently
disposed; and
3) giving explanation thereof.
Kevian Capital's shareholders decided on Dec. 28, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
dms Corporate Services Ltd.
Ansbacher House, 20 Genesis Close
P.O. Box 1344, George Town
Grand Cayman KY1-1108, Cayman Islands
MAPLES AND CALDER: Proofs of Claim Filing Is Until February 8
-------------------------------------------------------------
Maples and Calder Systems Union Group Offshore Limited's creditors
are given until Feb. 8, 2008, to prove their claims to Linburgh
Martin and Jeff Arkley, 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.
Maples and Calder's shareholders agreed on Dec. 14, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Linburgh Martin
Jeff Arkley
Attention: Neil Gray
Close Brothers (Cayman) Limited
Fourth Floor, Harbor Place
P.O. Box 1034, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 949 8455
Fax: (345) 949 8499
SEAGATE TECH: Eyes Dividend Increase of Up to US$0.12 Per Share
---------------------------------------------------------------
Seagate Technology's Board of Directors has approved an increase
in its quarterly dividend from US$0.10 to US$0.12 per share,
effective with the dividend expected to be paid to shareholders
after the conclusion of the company's third fiscal quarter of
2008.
Additionally, the Board of Directors has authorized the company to
repurchase up to an additional US$2.5 billion of its outstanding
common shares over the next 24 months. This new share repurchase
authorization continues our commitment to enhancing shareholder
value.
The company expects to fund the share repurchase through a
combination of cash on hand, future cash flow from operations and
potential alternative sources of financing. Share repurchases
under this program may be made through a variety of methods, which
may include open market purchases, privately negotiated
transactions, block trades, accelerated share repurchase
transactions or otherwise, or by any combination of such methods.
The timing and actual number of shares repurchased will depend on
a variety of factors including the common share price, corporate
and regulatory requirements and other market and economic
conditions. The share repurchase program may be suspended or
discontinued at any time.
Based in Scotts Valley, California, and registered in Cayman
Islands, Seagate Technology (NYSE: STX) -- http://www.seagate.com/
-- designs, manufactures and markets hard disc drives, and
provides products for a wide-range of Enterprise, Desktop, Mobile
Computing, and Consumer Electronics applications.
* * *
On July 17, 2006, Moody's Investors Service confirmed the "Ba1"
Corporate Family Rating of Seagate Technology HDD Holdings.
STABLE CREST: To Hold Final Shareholders Meeting on February 14
---------------------------------------------------------------
Stable Crest Company will hold its final shareholders meeting
on Feb. 14, 2008, at 10:00 a.m., at:
2907 Two Houston Center,
909 Fannin Street,
Houston, TX 77010
These agendas will be taken during the meeting:
1) Having an account laid before the members showing the
manner in which the winding-up has been conducted and
the property of the company disposed of, and of hearing
any explanation that may be given by the liquidator; and
2) Determining the manner in which the books, accounts and
documentation of the company, and of the liquidator
should be disposed of.
Stable Crest's shareholders decided on Dec. 17, 2007, to
place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Robert M. Hopson II
Voluntary Liquidator
c/o Fayez Sarofim & Co
Suite 2907, Two Houston Centre
Houston, TX 77010
Telephone: 713 308 2734
Fax: 713 308 2991
SYSTEMS UNION: To Hold Final Shareholders Meeting on February 15
----------------------------------------------------------------
Systems Union Group Offshore Limited will hold its final
shareholders meeting on Feb. 15, 2008, at 10:00 a.m., at the
offices of Close Brothers (Cayman) Limited, 4th Floor Harbour
Place, in George Town, Grand Cayman.
These agendas will be taken during the meeting:
1) To lay accounts before the meeting, showing how
the winding up has been conducted and how the
property has been disposed of, as at final winding
up on the 15th February, 2008; and
2) To authorise the liquidator to retain the records
of the company for a period of six years from the
dissolution of the company, after which they may be
destroyed.
Systems Union's shareholders decided on Dec. 19, 2007, to
place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Linburgh Martin
Attn: Neil Gray
Joint Voluntary Liquidator
Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034
George Town, Grand Cayman
Telephone: (345) 949 8455
Fax: (345) 949 8499
TREMONT PORTABLE: Proofs of Claim Filing is Until February 11
-------------------------------------------------------------
Tremont Portable Alpha 500 Portfolio Limited's creditors are given
until Feb. 11, 2008, to prove their claims to John Cullinane and
Derrie Boggess, 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.
Tremont Portable's shareholder decided on Jan. 11, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
=========
C H I L E
=========
BOSTON SCIENTIFIC: Posts US$458-Mln. Net Loss in Fourth Qtr. 2007
-----------------------------------------------------------------
Boston Scientific Corporation has disclosed its financial results
for the fourth quarter and full year ended Dec. 31, 2007, as well
as guidance for net sales for the first quarter of 2008.
Fourth quarter highlights:
-- Achieved record net sales of US$2.152 billion, both
exceeding most recently issued guidance
-- Grew cardiac rhythm management (CRM) sales 11 percent
-- Achieved 10 percent overall sales growth in product lines
excluding drug-eluting stents and CRM
-- Maintained leading position in the worldwide drug-eluting
stents market
-- Launched restructuring program to reduce expenses and head
count
-- Received CE Mark approvals for the use of the TAXUS(R)
Liberte(TM) stent system in diabetic patients, the
CONFIENT(TM) ICD and the LIVIAN(TM) CRT-D
"The turn that began last quarter continued this quarter, with
strong adjusted earnings and record sales," said Boston Scientific
President and Chief Executive Officer, Jim Tobin. "For the year,
we made substantial progress toward our goals of increasing
shareholder value, restoring profitable sales growth and
strengthening Boston Scientific for the future. We implemented a
series of initiatives designed to focus and simplify our business,
including expense and head count reductions and the sale of non-
strategic assets. We reported record sales, and we achieved the
leadership position in the global stent market. Perhaps our most
meaningful progress came in quality, where we revolutionized our
approach and changed our culture. Many of the steps we took in
2007 will help position us for the challenges and opportunities of
2008 and beyond. In 2008, those opportunities are expected to
include the introduction of a number of important new CRM
products, the lifting of the Corporate Warning Letter, the
approval of the TAXUS Liberte and PROMUS(TM) stent systems by the
FDA, and the launch of profitable new products across our
businesses."
Fourth Quarter 2007
Net sales for the fourth quarter of 2007 were US$2.152 billion, as
compared to US$2.065 billion for the fourth quarter of 2006.
Worldwide sales of the company's drug-eluting coronary stent
systems were US$435 million, as compared to US$506 million.
United States sales of drug-eluting coronary stent systems were
US$224 million, as compared to US$329 million. International
sales of drug-eluting coronary stent systems were US$211 million,
as compared to US$177 million. Worldwide sales of coronary stent
systems were US$496 million, as compared to US$550 million. U.S.
sales of coronary stent systems were US$250 million, as compared
to US$347 million. International sales of coronary stent systems
were US$246 million, as compared to US$203 million.
Worldwide sales of the company's CRM business for the fourth
quarter of 2007 were US$544 million, which included US$396 million
of implantable cardioverter defibrillator (ICD) sales, as compared
to worldwide CRM sales of US$489 million for the fourth quarter of
2006, which included US$356 million of ICD sales. U.S. CRM sales
were US$347 million, which included US$266 million of ICD sales,
as compared to US$320 million, which included US$250 million of
ICD sales. International CRM sales were US$197 million, which
included US$130 million of ICD sales, as compared to US$169
million, which included US$106 million of ICD sales.
Reported net loss for the fourth quarter of 2007 was US$458
million. Reported results included acquisition, divestiture,
litigation and restructuring-related charges and amortization
expense (pre-tax) of US$939 million, which consisted of:
-- US$208 million, primarily non-cash, associated with the
write down of goodwill in connection with business
divestitures;
-- US$8 million of other net acquisition-related charges;
-- US$365 million attributable to estimated potential losses
associated with patent litigation involving the company's
Interventional Cardiology business;
-- US$184 million of restructuring charges associated with
the company's expense and head count reduction
initiatives; and
-- US$174 million of amortization expense.
Adjusted net income for the quarter, excluding these charges and
amortization expense, was US$355 million.
Reported net income for the fourth quarter of 2006 was US$277
million. Reported results included charges associated with the
company's 2006 acquisition of Guidant Corporation and amortization
expense (pre-tax) of US$197 million. Adjusted net income for the
fourth quarter of 2006, excluding these charges and amortization
expense, was US$442 million.
Full Year 2007
Net sales for the full year 2007 were US$8.357 billion, as
compared to US$7.821 billion in 2006. Worldwide sales of the
company's drug-eluting coronary stent systems were US$1.788
billion, as compared to US$2.358 billion. U.S. sales of drug-
eluting coronary stent systems were US$1.006 billion, as compared
to US$1.561 billion. International sales of drug-eluting coronary
stent systems were US$782 million, as compared to US$797 million.
Worldwide sales of coronary stent systems were US$2.027 billion,
as compared to US$2.506 billion. U.S. sales of coronary stent
systems were US$1.110 billion, as compared to US$1.613 billion.
International sales of coronary stent systems were US$917 million,
as compared to US$893 million.
Worldwide sales of the company's CRM business in 2007 were
US$2.124 billion, which included US$1.542 billion of ICD sales, as
compared to US$1.371 billion in 2006, which included US$988
million of ICD sales. On a pro forma basis for 2006 -- as though
the company had acquired Guidant on Jan. 1, 2006 -- CRM sales were
US$2.026 billion, which included US$1.473 billion of ICD sales.
U.S. CRM sales in 2007 were US$1.371 billion, which included
US$1.053 billion of ICD sales, as compared to U.S. CRM sales of
US$908 million, which included US$696 million of ICD sales. Pro
forma U.S. CRM sales were US$1.358 billion, which included
US$1.053 billion of ICD sales. International CRM sales in 2007
were US$753 million, which included US$489 million of ICD sales,
as compared to international CRM sales of US$463 million, which
included US$292 million of ICD sales. Pro forma international CRM
sales were US$668 million, which included US$420 million of ICD
sales.
Reported net loss for 2007 was US$495 million. Reported results
for 2007 included acquisition, divestiture, litigation and
restructuring-related charges, and amortization expense (pre-tax)
of US$1.9 billion, which consisted of:
-- US$560 million, primarily non-cash, associated with the
write down of goodwill in connection with business
divestitures;
-- US$85 million in-process research and development write
offs, related primarily to the company's acquisition of
Remon Medical Technologies, Inc.;
-- US$37 million related to the company's acquisition of
Guidant;
-- US$365 million attributable to estimated potential losses
associated with patent litigation involving the company's
Interventional Cardiology business;
-- US$184 million of restructuring charges associated with
the company's expense and head count reduction
initiatives; and
-- US$641 million of amortization expense.
Adjusted net income for 2007, excluding these charges and
amortization expense, was US$1.2 billion.
Reported net loss for 2006 was US$3.6 billion. Reported results
for 2006 included acquisition-related charges and amortization
expense (pre-tax) of US$5.2 billion. Adjusted net income for
2006, excluding these charges and amortization expense, was US$1.4
billion.
Guidance for First Quarter 2008
The company estimates net sales for the first quarter of 2008 of
between US$1.96 billion and US$2.08 billion. Adjusted earnings,
excluding acquisition, divestiture, litigation and restructuring-
related charges, and amortization expense, are estimated to range
between US$0.15 and US$0.20 per share. The company estimates net
income on a GAAP basis of between US$0.13 and US$0.18 per share.
Full-year 2008 sales guidance will be provided during the
company's conference call with analysts today, Feb. 6, 2008.
About Boston Scientific
Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a broad
range of interventional medical specialties. The company has
offices in Argentina, Chile, France, Germany, and Japan,
among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 11, 2008, Boston Scientific's corporate credit rating is
rated 'BB+' with a negative outlook by Standard and Poor's
Ratings Services.
SHAW GROUP: Unit Bags Environmental Services Pact With Waste Mgt.
-----------------------------------------------------------------
The Shaw Group Inc. disclosed that Shaw LFG Specialties LLC, a
subsidiary of its Environmental & Infrastructure Group, has been
awarded an environmental services contract by Waste Management of
Michigan, Inc. for work at the Northern Oaks Landfill in Harrison,
Mich.
Shaw LFG Specialties, an original equipment manufacturer, will
provide the patented Leachate Evaporator (E-Vap(R)) System, a
submerged combustion process that acts to integrate the
destruction of landfill gas with leachate volume reduction. Shaw
LFG Specialties also will provide a complete design package,
startup and commissioning support, and foundation, construction,
mechanical and electrical installation oversight. The value of
Shaw's contract, which was included in the company's previously
announced backlog, was not disclosed.
Shaw's second award is a task order under a master service
agreement contract for the Bulova Corporation to construct a
bioremediation system at a formerly owned site in Jackson Heights,
N.Y. The system will include a series of 48 extraction wells, 33
injection wells, seven monitoring wells and a remedial system
enclosure that will effectively treat the site contaminants.
Construction is expected to be complete by May 2008. This task
order follows due diligence, environmental investigation and
remediation services performed for the Bulova Corporation. The
value of the contract, which was included in the company's
previously announced backlog, was not disclosed.
"Shaw LFG Specialties has become a major service provider to the
landfill gas industry in just 20 years of operation. We are proud
to support the state of Michigan and to provide the latest in
leachate evaporation technology," said Ronald W. Oakley, president
of Shaw's Environmental and Infrastructure Group. "Additionally,
we look forward to providing innovative remediation and technology
services to the Bulova Corporation. With the in-situ process
quickly becoming the preferred approach, Shaw's expertise in
bioremediation provides cost-effective solutions to our clients'
challenges."
About Shaw Group
Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR)
-- http://www.shawgrp.com/-- provides services to the
environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers. It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries. The
company segregates its business activities into four operating
segments: Environmental & Infrastructure; Energy & Chemicals;
Maintenance, and Fabrication, Manufacturing & Distribution. In
January 2005, the company sold substantially all of the assets
of its Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.
The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.
* * *
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on The Shaw Group Inc. and removed it from
CreditWatch, where it was placed with negative implications in
October 2006. S&P said the outlook is stable.
In addition, 'BB' senior secured debt rating was affirmed after
the US$100 million increase to the company's revolving credit
facility.
===============
C O L O M B I A
===============
BANCOLOMBIA SA: Sets General Shareholders Meeting for March 10
--------------------------------------------------------------
Bancolombia S.A.'s Board of Directors, in a meeting held Feb. 4,
agreed to call for a General Shareholders' Meeting on March 10,
2008, at 10:00 am in the Metropolitan Theater (Teatro
Metropolitano) located in the city of Medellin at the following
address: Calle 41 No. 57-30.
Profit Distribution Project
The Board also decided to propose at the General Shareholders'
Meeting, in regards to profits obtained in 2007, an approval of
dividends equivalent to COP142 per share and per quarter, which
will be payable from the first business day of each calendar
quarter (April 1, July 1 and Oct. 1 of 2008, and Jan. 2 of 2009),
amounting to COP568 per year, which represents an increase of 6.8%
of the dividends paid in 2007. Concerning the Bank's growth in
2008, the Board also proposes to appropriate COP370,227 million
more in order to increase the legal reserve.
About Bancolombia
Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Moody's Investors Service changed the outlook to
positive from stable on its Ba3 long-term foreign currency
deposit ratings and Ba1 long-term foreign currency subordinated
bond rating for Bancolombia, S.A.
As reported in the Troubled Company Reporter-Latin America on
May 4, 2007, Fitch Ratings downgraded Bancolombia's Individual
rating to 'C/D' from 'C', Local currency long-term IDR to 'BB+'
from 'BBB-' and Local currency short-term rating to 'B' from 'F3'.
The rating outlook is stable.
SOLUTIA INC: To Pay US$3.8 Million to Resolve EPA Claim
-------------------------------------------------------
Solutia Inc. and the United States Environmental Protection
Agency have reached an agreement to settle a US$9,800,000
environmental claim -- Claim No. 11276 -- asserting contamination
charges of an industrial site on Ferry Street in St. Louis,
Missouri.
If approved by the U.S. Bankruptcy Court for the Southern District
of New York, federal environmental regulators will have an allowed
Class 13 General Unsecured Claim against Solutia for US$3,600,000.
The Allowed EPA Claim and its remaining portions will be treated
in accordance with Solutia's Consensual Plan of Reorganization, as
confirmed on Nov. 29, 2007.
The EPA filed on Oct. 8, 2002, a cause of action in the United
States District Court for the Eastern District of Missouri -
Eastern Division, captioned United States v. Mallinckrodt Inc.,
et al, Civil Action No. 4:02CV2599-ERW.
EPA named Solutia as defendant in the Suit as an alleged
successor to the liability of Solutia's parent company, Monsanto
Company, pursuant to Section 107 of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980,
42 U.S.C. Section 9607, as amended.
EPA subsequently filed Claim No. 11276 asserting a claim for,
among other things, reimbursement from Solutia for all response
costs incurred in connection with the release or threatened
release of hazardous substances at the Great Lakes Container
Corporation Site in St. Louis. Solutia adopted the contamination
from Monsanto, which allegedly shipped dirty chemical barrels for
reconditioning to the site.
In accordance with the terms of the Settlement, the EPA lodged on
Jan. 28, 2008, a notice of consent decree with the Missouri
District Court. For 30 days after the publication of the Notice,
the Department of Justice will receive comments relating to the
Consent Decree. Comments should be addressed to the Assistant
Attorney General at Environment and Natural Resources Division.
Moreover, the proposed consent decree may be examined at the
office of the United States Attorney, and at the EPA Region VII
Office in Kansas City.
The Settlement is not, and will not be, construed as an admission
of liability with respect to the claims asserted or any other
claim.
The Settlement is subject to bankruptcy and federal court
approvals.
About Solutia Inc.
Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in the
manufacture and sale of chemical-based materials, which are used
in consumer and industrial applications worldwide. Solutia has
operations in Malaysia, China, Singapore, Belgium, and Colombia.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949).
When the Debtors filed for protection from their creditors, they
listed US$2,854,000,000 in assets and US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP,
in New York, as lead bankruptcy counsel, and David A. Warfield,
Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St.
Louis Missouri, as special counsel. Trumbull Group LLC is the
Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira
S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss
Hauer & Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice. The Official Committee of Retirees of Solutia, Inc., et
al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke,
Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne,
LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E.
Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter
Young & Rediker, LLC, in Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007,
the Debtor re-filed a Consensual Plan & Disclosure Statement and
on Nov. 29, 2007, the Court confirmed the Debtors' Consensual
Plan. (Solutia Bankruptcy News, Issue No. 116; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Standard & Poor's Ratings Services assigned its
'B+' loan rating to Solutia Inc.'s (D/--/--) proposed
US$1.2 billion senior secured term loan and a '3' recovery rating,
indicating the likelihood of a meaningful (50%-70%) recovery of
principal in the event of a payment default. The ratings are
based on preliminary terms and conditions. S&P also assigned its
'B-' rating to the company's proposed US$400 million unsecured
notes.
Standard & Poor's expects to assign its 'B+' corporate credit
rating to Solutia if the company and its subsidiaries emerge from
Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P
expect the outlook to be stable.
SOLUTIA INC: Formally Seeks US$2-Bil. Exit Funding From Citigroup
-----------------------------------------------------------------
Solutia Inc. has provided a formal demand of its US$2,000,000,000
exit facility commitment letter to the lead arrangers -- Citigroup
Global Markets Inc., and certain of its affiliates, Goldman Sachs
Credit Partners LP, Deutsche Bank Trust Company Americas and
Deutsche Bank Securities Inc. -- to close and fund their
respective commitments until today, Feb. 6, 2008.
Solutia said in a statement last week that it could not emerge
from Chapter 11 on Jan. 25, 2008, as planned, because the
Commitment Parties were unable to syndicate new financing.
Rosemary L. Klein, Solutia Inc.'s senior vice president, general
counsel and secretary, relates in a regulatory filing with the
Securities and Exchange Commission that, in their January 30
response, the Commitment Parties reiterated their previously
stated position that there has been an adverse change since the
date of the commitment letter -- Oct. 25, 2007 -- in the loan
syndication, financial or capital markets that, in their
reasonable judgment materially impairs syndication of the loan
facilities that they committed to fund. Definitive documentation
for the senior bridge facility component of the commitment also
needs to be finalized prior to closing.
According to Ms. Klein, Solutia believes that the Commitment
Parties are required to fund their commitments on February 6,
2008, pursuant to Solutia's demand and that the Commitment
Parties have breached their obligations under the commitment
letter in refusing to do so.
The Commitment Letter expires Feb. 29, 2008.
"We're still hopeful that we will be able to work through
matters" with these banks, said Solutia spokesman Dan Jenkins,
according to STLtoday.com. "At the same time, we're exploring
other alternatives."
About Solutia Inc.
Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- and its subsidiaries, engage in the
manufacture and sale of chemical-based materials, which are used
in consumer and industrial applications worldwide. Solutia has
operations in Malaysia, China, Singapore, Belgium, and Colombia.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949).
When the Debtors filed for protection from their creditors, they
listed US$2,854,000,000 in assets and US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP,
in New York, as lead bankruptcy counsel, and David A. Warfield,
Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St.
Louis Missouri, as special counsel. Trumbull Group LLC is the
Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira
S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss
Hauer & Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice. The Official Committee of Retirees of Solutia, Inc., et
al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke,
Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne,
LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E.
Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter
Young & Rediker, LLC, in Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007,
the Debtor re-filed a Consensual Plan & Disclosure Statement and
on Nov. 29, 2007, the Court confirmed the Debtors' Consensual
Plan. (Solutia Bankruptcy News, Issue No. 116; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Standard & Poor's Ratings Services assigned its
'B+' loan rating to Solutia Inc.'s (D/--/--) proposed
US$1.2 billion senior secured term loan and a '3' recovery rating,
indicating the likelihood of a meaningful (50%-70%) recovery of
principal in the event of a payment default. The ratings are
based on preliminary terms and conditions. S&P also assigned its
'B-' rating to the company's proposed US$400 million unsecured
notes.
Standard & Poor's expects to assign its 'B+' corporate credit
rating to Solutia if the company and its subsidiaries emerge from
Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P
expect the outlook to be stable.
QUEBECOR WORLD: U.S. Trustee Forms Seven-Member Creditors' Panel
----------------------------------------------------------------
Pursuant to Section 1102(a) and (b) of the Bankruptcy Code, Diana
G. Adams, the United States Trustee for Region 2, appointed seven
parties to the Official Committee of Unsecured Creditors in the
Chapter 11 cases of Quebecor World (USA) Inc. and its debtor-
affiliates.
The Creditors Committee consists of:
(1) Wilmington Trust Company
520 Madison Avenue, 33d floor
New York, NY 10022
Tel No: (212) 415-0500
Attn: Suzanne Macdonald
(2) Pension Benefit Guaranty Corp.
1200 K Street, NW
Washington, DC 20005
Tel No: (202) 326-4070 x 6367
Attn: Suzanne Kelly
(3) The Bank of New York Mellon
101 Barclay Street - 8 West
New York, NY 10286
Tel No: (212) 815-5650
Attn: David M. Kerr
(4) MEGTEC Systems Inc.
830 Prosper Rd.
De Pere, WI 54115
Tel: (920) 337-1568
Attn: Gregory R. Linn
(5) Abitibi-Consolidated Inc.
1155 Metcalfe Street, Suite 800
Montreal, Quebec
H3B 5H2 CANADA
Tel No: (514) 394-3638
Attn: Madeleine Fequiere
(6) International Paper Company
6285 Tri-Ridge Blvd.
Loveland, OH 45140
Tel No: (513) 965-2943
Attn: Steve K. Dunn
(7) Cellmark Paper, Inc.
300 Atlantic Street
Stamford, CT 06901
Tel No: (203) 251-9026
Attn: Dominick J. Merole
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well as
print solutions to retailers, branded goods companies, catalogers
and to publishers of magazines, books and other printed media. It
has 127 printing and related facilities located in North America,
Europe, Latin America and Asia. In the United States, it has 82
facilities in 30 states, and is engaged in the printing of books,
magazines, directories, retail inserts, catalogs and direct mail.
In Canada it has 17 facilities in five provinces, through which it
offers a mix of printed products and related value-added services
to the Canadian market and internationally.
Quebecor World has approximately 27,500 employees working in
more than 120 printing and related facilities in the United
States, Canada, Argentina, Austria, Belgium, Brazil, Chile,
Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden,
Switzerland and the United Kingdom.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In March 2007,
it sold its facility in Lille, France. Quebecor World (USA) Inc.
is its wholly owned subsidiary.
Quebecor World and its debtor-affiliates filed for chapter 11
bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-
10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Debtors listed total assets of US$5,554,900,000 and total debts of
US$4,140,700,000 when they filed for bankruptcy.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000. (Quebecor World Bankruptcy News, Issue No. 4;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
QUEBECOR WORLD: May Apply US$1B DIP Facility for LA & Europe Biz
----------------------------------------------------------------
The Honorable Justice Robert Mongeon at the Superior Court of
Justice (Commercial Division), for the Province of Quebec,
overseeing Quebecor World Inc.'s insolvency proceedings under the
Canadian Creditors' Companies Arrangement Act, directs that the
Applicants may use any proceeds from the US$1,000,000,000 DIP
Facility or any of their property to refinance the existing third-
party credit facilities supporting their European and Latin
American operations, subject to reasonable prior notice to, and
prior consultation with, PricewaterhouseCoopers, financial advisor
to the DIP Lenders, and Houlihan Lokey Howard & Zukin, financial
advisor to holders of public notes issued by the Applicants.
Mr. Justice Mongeon also authorizes the Applicants to:
(a) make intercompany loans up to a maximum of
CAUS$25,000,000 in the aggregate to pay non-Applicants'
prepetition payables that relate to their European
operations; and
(b) make intercompany loans up to a maximum of
CAUS$10,000,000 in the aggregate to pay non-Applicants'
prepetition payables that relate to their Latin American
operations.
The Administration Charge, the DIP Lenders Charge, and the
Directors and Officers Charge will rank in priority to any
mortgages, liens, trusts, security interests, priorities,
conditional sale agreements, financial leases, charges,
encumbrances or security affecting the property of Applicant
Quebecor World Inc., other than the valid and perfected
Encumbrances currently held pursuant to the prepetition credit
agreements with each of the Royal Bank of Canada and Societe
Generale (Canada), subject to an aggregate limit of US$170,000,000
on amounts recoverable under the prepetition Credit Agreements.
* * *
Shearman & Sterling is representing Credit Suisse and Morgan
Stanley Senior Funding, Inc., as Joint Lead Arrangers and Co-
Bookrunners, and Credit Suisse, as Administrative Agent, in
connection with the US$1,000,000,000 DIP Loan.
Attorneys include partners Douglas P. Bartner (NY-BR), Michael
Zinder (NY-FG), Andrew V. Tenzer (NY-BR), Michael S. Baker (NY-
FG) and Don J. Lonczak (NY-TX), counsel Matthew M. Donaher (NY-
FG) and Jeffrey L. Salinger (NY-PR), associates Justin C. Hewitt
(NY-BR), Gloria L. Huang (NY-BR), Danielle Kalish (NY-FG), Sung
Ho (Danny) Choi (NY-BR), Courtney Lemli (NY-FG), Eva A. Rasmussen
(NY-ECEB) and Maruti R. Narayan (DC-TX). Legal assistant Ilona
Logvinova (NY-FG) is assisting.
Credit Suisse US$1 Bil. DIP Fund
As reported in the Troubled Company Reporter on Jan. 24, 2008, the
Debtors formally sought the Bankruptcy Court's authority to enter
into a US$1,000,000,000 senior secured superpriority DIP credit
agreement from a syndicate of lenders led by Credit Suisse
Securities (USA), LLC, as administrative and collateral agent,
and Morgan Stanley Senior Funding Inc.
As previously reported, the US$1,000,000,000 DIP Facility
comprises of a US$600,000,000 term loan and a US$400,000,000
revolving credit facility. The Revolving Credit Facility also
includes a US$100,000,000 letter of credit subfacility and a
US$25,000,000 swing line subfacility.
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well as
print solutions to retailers, branded goods companies, catalogers
and to publishers of magazines, books and other printed media. It
has 127 printing and related facilities located in North America,
Europe, Latin America and Asia. In the United States, it has 82
facilities in 30 states, and is engaged in the printing of books,
magazines, directories, retail inserts, catalogs and direct mail.
In Canada it has 17 facilities in five provinces, through which it
offers a mix of printed products and related value-added services
to the Canadian market and internationally.
Quebecor World has approximately 27,500 employees working in
more than 120 printing and related facilities in the United
States, Canada, Argentina, Austria, Belgium, Brazil, Chile,
Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden,
Switzerland and the United Kingdom.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In March 2007,
it sold its facility in Lille, France. Quebecor World (USA) Inc.
is its wholly owned subsidiary.
Quebecor World and its debtor-affiliates filed for chapter 11
bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-
10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Debtors listed total assets of US$5,554,900,000 and total debts of
US$4,140,700,000 when they filed for bankruptcy.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000. (Quebecor World Bankruptcy News, Issue No. 4;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
===================
C O S T A R I C A
===================
* COSTA RICA: Power Firm Accepting Bids for El Dique Study
----------------------------------------------------------
Costa Rican state-run power firm Instituto Costarricense de
Electricidad will accept proposals from US companies through
March 25 to conduct a financial feasibility study for the
631-megawatt El Diquas hydro project, the US Federal Business
Opportunities posted on its Web site.
Business News Americas relates that the dam will be constructed on
the General Superior river near Buenos Aires. The 179-meter high
dam will flood 6,002 hectares, displace some 1,068 people and
affect about 108 archeological sites. The project will cost some
US$979 million. It will generate an average of 3.05 terra watt-
hours per year. Water will flow through a 13.2-kilometer tunnel
to the machine house.
Instituto Costarricense signed agreements with the US Trade &
Development Agency in 2007, pledging to finance project
geotechnical and financial studies, BNamericas notes.
* * *
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.
=====================
E L S A L V A D O R
=====================
ALCATEL-LUCENT SA: Extended Restructuring Sees 400 Job Cuts
-----------------------------------------------------------
Alcatel-Lucent S.A. presented to its social partners an extension
of the voluntary-based restructuring program, which was initiated
in 2007. The extension is part of the global cost reduction
program announced on Oct. 31, 2007 designed to align the company's
resources to the realities of the telecom industry's difficult
environment.
This extension could result in the loss of some 400 positions, all
of which will be done on a voluntary basis. The plan does not
call for the closing of any Alcatel-Lucent locations in France.
France remains one of the major research locations for Alcatel-
Lucent for next-generation advanced technologies, with notably a
strengthening of teams for the development of 4G mobile networks
and WiMAX. Alcatel-Lucent has research activities in the Paris
metropolitan area, as well as in Brittany and Alsace, and is a
leading player of the French competitiveness clusters initiative.
France also hosts one of the main Bell Labs research centers in
Villarceaux, located in the Paris metropolitan area.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2
the Corporate Family Rating of Alcatel-Lucent. The ratings for
senior debt of the group were equally lowered to Ba3 from Ba2 and
the trust preferred notes of Lucent Technologies Capital Trust I
have been downgraded to B2 from B1. At the same time, Moody's
affirmed its Not-Prime rating for short-term debt of Alcatel-
Lucent. Moody's said the outlook for the ratings is stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Fuel Costs Up GBP72 Mln in Third Quarter 2007
--------------------------------------------------------------
British Airways Plc has presented its interim management statement
for the nine months ended December 31, 2007.
Period highlights:
* operating profit of GBP734 million (2006: GBP571 million)
up 28.5%
* operating margin 11.1 % (2006: 8.7 %)
* profit before tax of GBP788 million (2006: GBP584 million)
up 34.9%
* fuel costs up GBP72 million in third quarter
* OpenSkies EU US airline launched
* Terminal 5 - less than eight weeks to opening
* New London City New York services to be launched
"This is another good set of results despite soaring fuel costs
and difficulties in the market. Revenue up some 1% and a strong
cost performance has led to an operating profit up 28.5%. While
fuel costs in the first six months were down GBP36 million, they
have soared GBP72 million in the third quarter," Willie Walsh,
chief executive of British Airways, said.
The opening of Terminal 5 is now less than two months away and the
public trials and previews for our Executive Club members have
been very successful. When it opens in March our passengers will
be able to enjoy a calm and effortless experience. The suite of
lounges will be the largest and most luxurious in the world and
will allow our passengers to work or relax in comfort.
We have also launched our new airline OpenSkies as a result of the
new transatlantic air treaty. It will operate initially with one
Boeing 757 non-stop between Europe and New York and offer
business, premium economy and economy class. It will complement
our business not compete with it.
We will also launch a new all business class niche service in
2009, linking the two largest financial centres of the world with
flights from London City to New York on Airbus A318 aircraft. We
are confident it will be a success as London City airport is only
a short distance from the heart of London's financial district."
Financial Review
Revenue was up by 0.9%. Excluding exchange, revenue was up
3.2%.
Passenger revenue at GBP5.7 billion was up 1.7% on capacity up
0.8%. Seat factor was down 0.6 points to 77%. Yields were up
1.5% mainly due to more premium passengers traveling, although the
gains were partially neutralized by exchange rates, mainly the US
dollar.
Club World and First performed strongly, driving its overall
4.2% increase in premium traffic. Shorthaul premium traffic has
weakened and non-premium traffic on the North Atlantic remains
soft.
Cargo performance is improving. Strong volumes from the Americas,
U.K. and Middle East South Asia, resulted in a 1.6% improvement in
cargo-ton-kilometers. Revenue fell GBP20 million to GBP453
million primarily due to exchange rate movements.
Cost performance continues to be strong, helped by the weak US
dollar. Total costs were down GBP101 million with unit costs down
1.5%. Employee costs fell by 6.9% to almost GBP1.6 billion
because of reduced pensions costs and lower severance costs. Fuel
was up 2.4% due to the higher oil prices, only partially offset by
hedging and the weak US dollar. Aircraft lease costs were down
16.4% as a result of fewer aircraft on operating leases and
renegotiation of existing leases. Engineering costs were up 11%
because of higher freighter costs, price rises in maintenance and
higher volumes. Handling charges, and other operating costs have
risen by 3.4% because of the cost of dealing with baggage issues
earlier this year.
The financial position of the company remains strong. In quarter
three it raised a 15 year US$1.7 billion aircraft financing
facility and other financing facilities totaling US$1.6 billion.
Cash at the end of December was GBP1.7 billion, GBP631 million
lower than at March 2007 but within its target range. Net debt
was GBP1.4 billion, up GBP457 million since the year end. Cash
and net debt were affected by payments into the New Airways
Pension Scheme and to the US Department of Justice for anti-
competitive activity.
Capital expenditure at GBP519 million was higher than last year
because the company took delivery of four new Airbus A321 aircraft
and two new Airbus A320 aircraft. It also continues to invest in
the new Club World cabin and Terminal 5.
The tax rate for the nine months was 21%. It benefited from a
one-off credit because of the reduction in the U.K. corporation
tax from 30% to 28%, effective from April 1, 2008. Excluding the
one-off credit, the tax rate for the period would have been 30%.
Business Review
The airline continues to win awards including the World's Leading
Airline at the World Traveller Awards, first prize for the new
Club World seat at the International Design Awards in the US, Best
Airline, Best Shorthaul, Best Economy Class and Best Frequent
Flyer Programme at the Business Traveller Awards and Conde Naste
Traveller magazine Best Leisure Shorthaul Airline.
Following the incident at Heathrow in January involving one of its
Boeing 777s, the aircraft has been written off by underwriters and
the insurance claim agreed in full. There will be no material
effect in the results. The flight and cabin crew and all staff
involved were praised for their outstanding performance in the
incident.
Bringing Terminal 5 Alive
The company's key business objectives focus on four themes, the
first of which is Bringing Terminal 5 Alive. T5 will open on
time and on budget. Trials of all the new processes and equipment
continue to ensure T5 will be a flagship for the U.K.
Basics and Brilliance
The company's second theme redefines its customer promise under
the banner of BA Basics and Brilliance -- ensuring consistent high
quality service 24 /7 and brilliance where it counts. Punctuality
and baggage performance remain a challenge at Heathrow where
facilities are old and overstretched. Heathrow was designed to
handle 45 million passengers but today looks after 67 million
passengers per year. Both these key areas will be improved
significantly when the company moves to its new home in T5 but, in
the meantime, it remains focused on improving its current
performance.
In the air the company has completed the new Club World fit of its
fleet of 57 Boeing 747s.
Investing in Growth
The company's longhaul fleet order is fundamental to its third
theme of Investing in Growth. It has now formally signed the
contracts for 12 Airbus A380 aircraft and 24 Boeing 787 aircraft
and options for a further seven A380s and 18 B787s. The order
allows for replacement of older aircraft and sustainable,
profitable growth. A key factor in its choice of these aircraft
was their environmental performance and they score highly on every
measure. They are cleaner, quieter and more fuel efficient.
The company has ordered two Airbus A318 aircraft to operate its
planned business only services from London City airport to New
York in 2009.
It is always looking for opportunities to increase its slot
portfolio at Heathrow and it has acquired seven daily slot pairs
during the nine months. Its share of slots at Heathrow is 41%.
During 2007 it formed a consortium with TPG to explore a bid for
Iberia. As a consequence of the recent decision taken by Iberia's
core shareholders to sell their shares to Caja Madrid, the
consortium withdrew its indication of interest for the company.
It has retained its 10% stake in Iberia.
By March the company's franchise agreement in the U.K. with GB
Airways will end but it will be launching services on some of the
routes previously served by GB Airways. Its agreement with
Loganair ends in October. Although historically successful, the
franchise model has outlived its purpose in the U.K. This
decision does not affect its overseas franchisees who continue to
provide valuable feed traffic and brand exposure in areas it
cannot serve.
Achieving a Competitive Cost Base
The company's final and most enduring theme in recent years has
been achieving a competitive cost base. Improving cost efficiency
and eliminating waste in its business is key to delivering its
target of a 10% operating margin, which it is on track to achieve
by March 2008.
The Civil Aviation Authority published its draft final
consultation on the BAA Quinquennial (Q5) review of airport
charges. The final decision on the price cap will be before the
end of March with the new charges to be implemented on April 1,
2008. The CAA has proposed that, at Heathrow, there is a 15.6%
increase in year one of Q5. In the other four years of the
charging period, the CAA proposes a rise of inflation (RPI) + 7.5%
each year.
The CAA has said that the increases reflect the increased costs of
security operations, cost of recent capital projects and
allowances for significant additional expenditure. However, the
company believes investment should be in the interests of the
customer and the right controls should be in place to ensure
greatly improved levels of service, following the Competition
Commission's public interest finding against BAA's performance.
The company is sure this could be achieved without the excessive
price hike that the CAA is proposing compared with the detailed
recommendations from the Competition Commission.
Corporate Responsibility
The Government launched its three-month consultation on a third
runway and mixed-mode for Heathrow in November last year. The
company is very strongly in favor of increasing runway capacity at
Heathrow which it believes would generate GBP7 billion a year in
national economic benefits. Mixed mode would generate an
additional GBP2.5 billion a year.
By the time a third runway could open, aviation's carbon emissions
will be capped under the EU Emissions Trading Scheme. This means
that any growth in aviation emissions resulting from extra flights
at Heathrow or any other European airport must be matched by
equivalent emissions reductions elsewhere. So there will be no
increase in overall emissions as a result of a third runway.
The EU Environment Council endorsed the Commission's plan to
impose the ETS on foreign airlines flying into and out of the EU
from 2012. This means a one-year delay to the start of the scheme
and the loss of the opportunity to begin emissions trading on an
intra-EU basis only.
The company is concerned that the revised approach may provoke
significant international opposition and so lead to further delays
in implementation. Nonetheless the council's agreement does
preserve a number of the features of the commission's original
proposal, and is a more balanced and reasonable position than that
recently adopted by the European Parliament.
The company has taken climate change very seriously for a long
time. More than a decade ago it was the first airline to set a
target for improving fuel efficiency and it led the way in
advocating carbon trading.
The company has set a new target to improve its aircraft fuel
efficiency by 25% by 2025 and it has relaunched its online
passenger carbon offset scheme on ba.com to make it simpler and
easier to use. On waste minimization it aims to recycle half of
its waste and phase out use of landfill by 2010.
In readiness for the move to Terminal 5, it has taken delivery of
38 new airport buses, which comply with the latest Euro 5 exhaust
emission standards.
Trading Outlook
The company's revenue guidance for the full year continues at 3 to
3.5% in spite of weakness in shorthaul premium and some non-
premium markets.
Longhaul premium traffic continues to be strong, supporting its
decision to make more premium capacity available. It has seen
some fall in non-premium bookings in the January booking period
compared to last year.
The company's fuel costs will continue to rise and are now
expected to be up more than GBP100 million on last year. This
year's increase will be offset by reductions in other operating
costs but its ability to mitigate rising fuel costs next year will
be challenging.
The company continues to focus its efforts on achieving a 10%
operating margin for this financial year.
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.
BRITISH AIRWAYS: Deutsche Bank Maintains "Buy" Rating on Firm
-------------------------------------------------------------
Deutsche Bank analyst Chris Reid has kept his "buy" rating on
British Airways Plc's shares, Newratings.com reports.
Newratings.com relates that the target price for British Airways'
shares was decreased to 458 pounds from 461 pounds.
According to Newratings.com, Mr. Reid said in a research note that
British Airways' third quarter results were in-line with the
expectations.
British Airways' new flat bed is helping attract and keep clients,
"in view of the continued steady improvement in yields," Mr. Reid
told Newratings.com.
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.
=============
J A M A I C A
=============
SUGAR CO.: Farmers Group Worried on Angostura Limited's Bid
-----------------------------------------------------------
The All-Island Jamaica Cane Farmers Association is worried that
Angostura Limited's bid for shares in Lascelles deMercado could
result in a duplication of some of the bids for the sale of the
Sugar Company of Jamaica Limited's sugar factories, Radio Jamaica
reports.
Angostura and Lascelles deMercado are bidders for the sugar
factories. The possibility of one entity having two bids is cause
for concern, All-Island Jamaica chairperson Allan Rickards
explained to Radio Jamaica.
The association had been assured that this wouldn't happen.
However, the group will keep an eye on the situation to ensure
that it does not, Radio Jamaica states, citing Mr. Rickards.
The Sugar Company of Jamaica Limited aka SCJ was formed in
November 1993 by a consortium made up of J. Wray & Nephew Limited,
Manufacturers Investments Limited and Booker Tate Limited. The
three companies each held 17% equity in SCJ, with the remaining
49% being held by the government of Jamaica. In 1998, the
government became the sole shareholder of SCJ by acquiring the
interests of the members of the consortium. Its stated goal was to
maximise efficiency, productivity and
profitability of the three sugar factories, within three years.
The principal activities of the company are the cultivation of
cane and the manufacture and sale of sugar and molasses.
The Sugar Company of Jamaica Limited registered a net loss of
almost US$1.1 billion for the financial year ended Sept. 30, 2005,
80% higher than the US$600 million reported in the previous
financial year. Sugar Company blamed its financial
deterioration to the reduction in sugar cane production.
According to published reports, the Jamaican government has
taken responsibility for the payment of the firm's debts. Radio
Jamaica has said that to date, the five sugar factories have
incurred J$3 billion in debts. The government is now selling the
factories.
* JAMAICA: To Meet with Chinese Bidder for Jamaica Railway
----------------------------------------------------------
The Jamaican government will be meeting with a Chinese bidder for
the sale of state-run Jamaica Railway Corp., Radio Jamaica
reports, citing transport minister Mike Henry.
Radio Jamaica didn't disclose the identity of the Chinese bidder.
Minister Henry told Radio Jamaica that the government is going
through its options in identifying an investor to acquire the
assets of the Jamaica Railway.
Matters relating to the Jamaica Railway are high on the agenda of
the transport ministry's retreat, which is now in progress, RJR
News relates, citing Minister Henry.
In January, Minister Henry met with a Belgian investors interested
in acquiring the Kingston to Port Antonio leg of the Jamaica
Railway, Radio Jamaica states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2008, Moody's Investors Service said that Jamaica's B1
foreign currency government bond rating reflects the government's
strong willingness to service obligations, a proven ability to
respond to exogenous shocks and a commitment to fiscal discipline.
Constraints to Jamaica's ratings include low growth and a large
public debt burden that allows very little room to absorb shocks.
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 Jamaica. Standard & Poor's said the outlook for all
the ratings is stable.
As reported on Oct. 16, 2007, Fitch Ratings affirmed Jamaica's
'B+' Foreign and local currency Issuer Default Ratings, 'BB-'
Country ceiling rating and 'B+/RR4' Bond obligations rating.
The Outlook is Stable.
* JAMAICA: PM Golding Unveils Plan to Build New Int'l Airport
-------------------------------------------------------------
A new international airport will be built in Jamaica as the
country moves to further improve its tourism industry, Prime
Minister Bruce Golding said last week at a Real Estate Symposium
hosted by the Realtors Association of Jamaica at the Knustford
Court Hotel in Kingston, Carribean360 reports.
The facility, which will be constructed at Duckenfield in
Portland, will be complete with customs and immigration services.
The Urban Development Corporation and Civil Aviation Authority are
expected to conduct feasibility studies pursuant to the
construction of the airport, while the National Works Agency will
look at upgrading and realigning existing roadways
where necessary, Carribean360 further cited Mr. Golding as saying.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2008, Moody's Investors Service said that Jamaica's B1
foreign currency government bond rating reflects the government's
strong willingness to service obligations, a proven ability to
respond to exogenous shocks and a commitment to fiscal discipline.
Constraints to Jamaica's ratings include low growth and a large
public debt burden that allows very little room to absorb shocks.
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 Jamaica. Standard & Poor's said the outlook for all
the ratings is stable.
As reported on Oct. 16, 2007, Fitch Ratings affirmed Jamaica's
'B+' Foreign and local currency Issuer Default Ratings, 'BB-'
Country ceiling rating and 'B+/RR4' Bond obligations rating.
The Outlook is Stable.
* JAMAICA: World Bank To Help Nation on Its Public Debt
-------------------------------------------------------
The World Bank will send financial specialists to Jamaica to help
the country deal with its almost J$1 trillion public debt, Radio
Jamaica reports.
Radio Jamaica relates that Jamaica's Prime Minister Bruce Golding,
Finance Minister Audley Shaw, and other government officials had
met with World Bank delegation headed by its Latin American and
Caribbean vice president Pamela Cox. During the meeting, the
World Bank delegation said Jamaica's needs are tremendous and
expressed its willingness to help the country.
The financial specialists will examine and discuss new approaches
to Jamaica's debt challenges, Radio Jamaica states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2008, Moody's Investors Service said that Jamaica's B1
foreign currency government bond rating reflects the government's
strong willingness to service obligations, a proven ability to
respond to exogenous shocks and a commitment to fiscal discipline.
Constraints to Jamaica's ratings include low growth and a large
public debt burden that allows very little room to absorb shocks.
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 Jamaica. Standard & Poor's said the outlook for all
the ratings is stable.
As reported on Oct. 16, 2007, Fitch Ratings affirmed Jamaica's
'B+' Foreign and local currency Issuer Default Ratings, 'BB-'
Country ceiling rating and 'B+/RR4' Bond obligations rating.
The Outlook is Stable.
* JAMAICA: Will Benefit From Int'l Development's Investment Fund
----------------------------------------------------------------
Jamaica will benefit a US$1.9 million aid from the Multilateral
Investment Fund, an autonomous fund administered by the
International Development Bank Radio Jamaica reports.
Radio Jamaica relates that the US$1.9 million is allotted for the
development of the Caribbean's micro-finance industry. The
International Development wants to implement a capacity-building
project that will let Caribbean micro-finance institutions boost
financial performance and outreach.
According to Radio Jamaica, these countries will also benefit from
the fund:
-- Bahamas,
-- Belize,
-- Barbados,
-- Trinidad & Tobago,
-- Suriname,
-- Guyana, and
-- the Organization of Eastern Caribbean States.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2008, Moody's Investors Service said that Jamaica's B1
foreign currency government bond rating reflects the government's
strong willingness to service obligations, a proven ability to
respond to exogenous shocks and a commitment to fiscal discipline.
Constraints to Jamaica's ratings include low growth and a large
public debt burden that allows very little room to absorb shocks.
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 Jamaica. Standard & Poor's said the outlook for all
the ratings is stable.
As reported on Oct. 16, 2007, Fitch Ratings affirmed Jamaica's
'B+' Foreign and local currency Issuer Default Ratings, 'BB-'
Country ceiling rating and 'B+/RR4' Bond obligations rating.
The Outlook is Stable.
===========
M E X I C O
===========
ADVANCED MICRO: UBS Reiterates Neutral Rating on Firm's Shares
--------------------------------------------------------------
UBS analysts have reiterated their "neutral" rating on Advanced
Micro Devices' shares, Newratings.com reports.
Newratings.com relates that the one-year target price for Advanced
Micro's shares was decreased to US$8.50 from US$10.
According to Newratings.com, UBS said in a research note that
Advanced Mirco has high consumer exposure in graphics and personal
computers, which would make it sensitive to the expected consumer
decine.
UBS told Newratings.com that there would be "lower ASP growth this
year than was earlier anticipated, with the global GDP estimate
being reduced from 4.3% to 3.6%."
Earnings per share estimates for 2008 and 2009 were dropped from
-US$0.63 to -US$0.80 and from US$0.31 to US$0.12, respectively.
Headquartered in Sunnyvale, California, Advanced Micro Devices
Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative
processing solutions in the computing, graphics and consumer
electronics markets. The company has a facility in Singapore.
It has sales offices in Belgium, France, Germany, the United
Kingdom, Mexico and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 28, 2008, Fitch downgraded Advanced Micro Devices Inc.'s
Issuer Default Rating to 'B-' from 'B' and Senior unsecured debt
to 'CCC'/RR6 from 'CCC+/RR6'. Fitch's rating outlook remains
negative.
DURA AUTOMOTIVE: Obtains Court OK for $170MM Replacement Loan
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware granted
DURA Automotive Systems, Inc., and its debtor-affiliates
permission to obtain up to US$170,000,000 in replacement financing
and amend their US$300,000,000 existing postpetition financing
facility.
The Debtors obtained commitments from Ableco Finance LLC on
Jan. 21, 2008, for a Replacement Term Loan DIP Facility, which
would:
(i) extend the maturity date of DIP loans by six months to
July 31, 2008, and
(ii) would allow the Debtors to enter into a replacement
facility in order borrow US$170,000,000 to pay off
US$104,500,000 due under the existing term loan facility,
and pay outstanding balance under its DIP revolver and
pay fees and expenses associated with the replacement
term loan facility.
Immediately after seeking for Chapter 11 protection, and in order
to fund their operations while in bankruptcy, the Debtors obtained
Court permission to enter into with Goldman Sachs Capital Partners
L.P., General Electric Capital Corporation, and other lender
parties:
-- up to US$130,000,000 asset based revolving credit
facility, subject to borrowing base and availability
terms, with a US$5 million sublimit for letters of credit;
and
-- up to US$170,000,000 Fixed Asset Facilities consisting of:
* up to US$150,000,000 tranche B term loan; and
* up to US$20,000,000 pre-funded synthetic letter of
credit facility.
Due to their failure to obtain confirmation of their Joint Plan of
Reorganization by their mid-December 2007 target, the Debtors had
obtained an extension of their Existing DIP Facilities until
Jan. 31, 2008. The Debtors missed their target mainly because of
its failure to obtain full syndication of its US$425,000,000 exit
financing, due to tighter credit conditions.
Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A.,
in Wilmington, Delaware, said the Debtors have been working with a
number of potential replacement DIP lenders to solicit proposals
for potential replacement DIP facilities. These efforts
culminated in the Debtors obtaining a commitment letter from
Ableco Finance on Jan. 21, 2008 for the Replacement Term Loan DIP
Facility.
The parties are negotiating and finalizing a form of the
Replacement Term Loan DIP Facility based on the existing Term Loan
DIP Facility, i.e., premised substantially on "stepping into the
shoes" of the lenders under the existing Term Loan DIP Facility,
along with the pledge of 100% of the stock of the Debtors' foreign
non-debtor subsidiaries, an increase from the existing pledge of
66% under the existing Term Loan DIP Facility.
The material terms of the Revolver DIP Amendments are:
Term Description
---- -----------
Aggregate
Commitments Reduced to US$90 million.
New Maturity Date July 31, 2008.
Interest Rate Subject to pending negotiations.
New Collateral Enhanced Foreign Stock Pledge.
Other Terms Certain additional terms, including
Revolver DIP Facility covenants, are
being negotiated and finalized.
Carve-out Subject to pending negotiations.
The salient terms of the Replacement Term Loan DIP Facility are:
Term Description
---- -----------
Fees US$1,275,000 commitment fee,
US$1,275,000 closing fee, and reasonable
out-of-pocket fees and expenses incurred
by Ableco, including already-paid
US$175,000 advance expense deposit.
Interest Rate The Term Loan will bear interest at the
rate per annum equal to (i) the
Reference Rate plus 7% of which 3% will
be paid-in-kind or (ii) the 30-, 60- or
90-day LIBOR plus 10% of which 3% will
be paid-in-kind. Interest will be
payable monthly in arrears.
"Reference Rate" means the rate of
interest publicly announced from time to
time by JPMorgan Chase in New York, New
York as its reference rate, base rate or
prime rate, provided that at no time
will the Reference Rate be less than
6.75% "LIBOR" means the London Interbank
Rate, provided that at no time will the
LIBOR rate referred to above be less
than 3.75%. All interest and fees will
be computed on the basis of a year of
360 days for the actual days elapsed.
If any Event of Default occurs and is
continuing, interest will accrue at a
rate per annum equal to 2% above the
rate previously applicable to the
obligation, payable on demand.
Total Facility US$170,000,000 -- approximately
US$105,000,000 to replace existing Term
Loan DIP Facility, approximately
US$45,000,000 additional term loan
financing for paying down the Revolver
DIP Facility, and a US$20,000,000
synthetic letter of credit facility.
Interim Facility Same as total facility.
New Maturity Date July 31, 2008
Use of Proceeds To (i) repay the Debtors' existing
debtor-in-possession term loan of
approximately US$104,500,000 and replace
the existing debtor-in-possession
synthetic letter of credit facility;
(ii) fund general corporate needs,
including working capital needs; and
(iii) pay fees and expenses related to
this transaction and the Chapter 11
cases.
New Collateral Enhanced Foreign Stock Pledge.
Covenants Customary covenants.
Events of Default Customary events of default.
Curve-out Subject to pending negotiations.
Mr. DeFranceschi stated that the credit market conditions in
which the Debtors are seeking to extend and amend postpetition
secured financing facilities have deteriorated markedly since
November 2006, when the Court entered the Final DIP Order. As a
result, the cost of obtaining DIP financing has increased
substantially, he avers.
Mr. DeFranceschi added that the Debtors will suffer immediate and
irreparable harm if the Court does not authorize them to enter
into the Replacement Term Loan DIP Facility on an interim basis
prior to the Jan. 31, 2008, maturity date of the existing DIP Term
Loan Facility. On Jan. 31, the Debtors' obligations under the
existing DIP Term Loan Facility would become immediately due and
payable, and the existing DIP Term Loan lenders would be entitled
to exercise all remedies available to them under the Final DIP
Order.
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. 45; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
KANSAS CITY: Names John Derry as Human Resources Vice President
---------------------------------------------------------------
Kansas City Southern has appointed John E. Derry as its vice
president human resources. As the holding company's head of human
resources, Mr. Derry will direct the human resources functions for
The Kansas City Southern Railway Company and will advise Kansas
City Southern de Mexico, S.A. de C.V. on its human resources
functions. Mr. Derry will report to KCS chairman and chief
executive officer Michael R. Haverty.
"John is a seasoned human resources professional with hands-on
experience in transportation and production management," said Mr.
Haverty. "His organizational change management and talent
development expertise will be important as we pursue our vision of
being a strong, independent transportation company, delivering
exceptional service to customers, challenging careers to employees
and increasing value to our shareholders."
Mr. Derry joins KCS from YRCW-Yellow Transportation, where most
recently, he served as vice president human resources. He has
also held a variety of human resources and operations positions
with Edy's-Dreyer's Grand Ice Cream and General Mills, Inc. Mr.
Derry holds a master of science in organizational development from
Bowling Green State University and a bachelor of arts in
leadership and management from Judson College. He is also
certified as a Senior Professional in Human Resources from the
Human Resource Certification Institute.
Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the US,
Mexico and Panama. Its primary U.S. holding includes KCSR,
serving the central and south central U.S. Its international
holdings include Kansas City Southern de Mexico, serving
northeastern and central Mexico and the port cities of Lazaro
Cardenas, Tampico and Veracruz, and a 50% interest in
Panama Canal Railway Company, providing ocean-to-ocean freight
and passenger service along the Panama Canal. KCS' North
American rail holdings and strategic alliances are primary
components of a NAFTA Railway system, linking the commercial and
industrial centers of the U.S., Canada and Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 17, 2007, Fitch Ratings assigned a 'B+' foreign currency
rating and a Recovery Rating of 'RR4' to the US$165 million
senior notes due 2014 to be issued by Kansas City Southern de
Mexico, S.A. de C.V. The new notes rank pari passu with KCSM's
existing senior unsecured obligations.
Fitch also maintained 'B+' foreign currency ratings and 'RR4'
recovery ratings on KCSM's other outstanding notes:
-- US$178 million 12.50% senior notes due 2012;
-- US$460 million 9.375% senior notes due 2012;
-- US$175 million 7.625% senior notes due 2013.
The proceeds of the proposed new issuance will be used primarily
to pay off the company's outstanding US$178 million 12.50% notes
due 2012.
In addition, Fitch maintained a 'B+' foreign and local currency
Issuer Default Rating for KCSM. Fitch said the rating outlook for
these ratings is stable.
MOVIE GALLERY: To Close 400 Underperforming Stores
--------------------------------------------------
Movie Gallery, Inc., plans to close approximately 400
underperforming and unprofitable Movie Gallery and Hollywood Video
stores. This consolidation of store operations is in addition to
the closures previously announced on September 25, 2007.
Joe Malugen, Chairman, President and Chief Executive Officer of
Movie Gallery, said, "The decision to close stores is always
difficult, but we are confident that we are taking the right steps
to emerge from bankruptcy as a stronger company, better positioned
for long-term success. We have made significant progress in
restructuring Movie Gallery and this action will allow us to
further focus our resources on those stores with the strongest
operating performance and best prospects for future growth."
"We will work with customers at affected stores to transfer their
accounts to other nearby Movie Gallery and Hollywood Video
locations where possible," Mr. Malugen added. "I would also like
to thank our many associates and partners for their dedication to
the Company and outstanding customer service. As always, we
remain committed to treating all affected employees fairly and
providing the necessary assistance to make this transition as
smooth as possible."
Movie Gallery once again has retained the Great American Group, an
outside professional services firm, to assist it in conducting
sales of the inventory at the stores scheduled for closure.
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. The company owns and operates 4,600 retail
stores that rent and sell DVDs, videocassettes and video games.
It operates over 4,600 stores in the United States, Canada, and
Mexico under the Movie Gallery, Hollywood Entertainment, Game
Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, is the Debtors' local counsel. The Debtors'
claims & balloting agent is Kutzman Carson Consultants LLC.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000.
The Official Committee of Unsecured Creditors has selected
Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B.
Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl &
Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at
Miles & Stockbridge PC, as its local counsel.
The Debtors' spokeswoman Meaghan Repko said that the company
does not expect to exit bankruptcy protection before the second
quarter of 2008. The Debtors have until June 13, 2008 to file
their plan of reorganization. (Movie Gallery Bankruptcy News
Issue No. 16; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
VISTEON CORP: Selling NA Facilities to Centrum Properties' Unit
---------------------------------------------------------------
Visteon Corporation has sold its non-core North American-based
aftermarket underhood and remanufacturing facilities to Centrum
Equities XV LLC, an affiliate of Centrum Properties Inc. The
operations sold include a manufacturing plant in Sparta,
Tennessee, and two plants in Reynosa, Mexico.
Specific terms of the transaction were not disclosed. The sale
does not include aftermarket mobile electronics products, which
Visteon maintains as part of its electronics group.
"This transaction is another step in our plan to restructure,
improve and grow our business by focusing on strategic product
lines, including advanced climate, interiors and electronics
products," Donald J. Stebbins, Visteon president and chief
operating officer, said.
"We are pleased to be acquiring this business as part of our
growth strategy," Terry Howard, chief executive officer of Centrum
Equities XV LLC, said. "We are excited about this investment and
look forward to future growth opportunities across the automotive
aftermarket."
Visteon's Sparta, Tennessee, facility known as LTD Parts,
manufactures starters and alternators for aftermarket customers.
The two Reynosa, Mexico, facilities manufacture aftermarket
climate products -- including radiators, compressors and
condensers -- and also remanufacture steering pumps and gears.
About Centrum Properties Inc.
Headquartered in Chicago, Illinois, Centrum Properties Inc. --
http://www.centrumproperties.com/-- is a 25-year-old full service
real estate firm that specializes in the development of
distinctive residential and commercial properties.
About Visteon Corporation
Based in Van Buren Township, Michigan, Visteon Corp. (NYSE: VC) --
http://www.visteon.com/-- is a global automotive supplier that
designs, engineers and manufactures innovative climate, interior,
electronic, and lighting products for vehicle manufacturers, and
also provides a range of products and services to aftermarket
customers. The company has facilities in 26 countries and employs
approximately 43,000 people.
With corporate offices in the Michigan (U.S.); Shanghai, China;
and Kerpen, Germany; the company has more than 170 facilities in
24 countries, including Mexico and India, and employs
approximately 50,000 people.
* * *
Moody's Investor Service placed Visteon Corp.'s long term
corporate family and probability of default ratings at 'B3' in
November 2006. The ratings still hold to date with a negative
outlook.
WENDY'S INT'L: 2007 Income from Operations Up 134% to US$86.6 Mil.
------------------------------------------------------------------
Wendy's International Inc. disclosed its preliminary, unaudited
financial results for the full year and fourth quarter of 2007,
reflecting same-store sales increases for the year, cost controls
and improving restaurant margins.
Including full-year pre-tax expenses related to the Board of
Director's Special Committee of US$24.7 million and US$9.8 million
of pre-tax restructuring charges, the company reported for the
full year of 2007:
-- Income from continuing operations of US$86.6 million, up
134% compared to US$37 million in 2006;
-- Earnings before interest, taxes, depreciation and
amortization from continuing operations of US$270.9
million, up 65.2% from US$164 million in 2006.
Excluding 2007 expenses related to the Board's Special
Committee and restructuring charges and excluding 2006
restructuring charges, incremental advertising expenses
and lost joint venture income, the company reported for
the full year of 2007:
-- Adjusted income from continuing operations of US$108
million, up 50% from US$72 million in 2006;
-- Adjusted diluted EPS from continuing operations of
US$1.20, up 93.5% from US$0.62 per share in 2006; and
-- Adjusted EBITDA from continuing operations of US$305.4
million, up 38.4% from US$220.7 million in 2006.
The company met its revised 2007 full-year EBITDA guidance of
US$295 million to US$315 million, and its revised 2007 full-year
EPS guidance of US$1.09 to US$1.23, which excluded expenses
related to the Board's Special Committee and restructuring
charges.
2007 Full-Year Highlights
U.S. EBITDA store margins up 210 basis points:
-- U.S. company-operated restaurant EBITDA margins improved
210 basis points to 11% in 2007, reflecting slightly
positive full-year sales, improved menu management and
labor efficiencies. The 210 basis point improvement was
achieved despite higher commodity costs which negatively
impacted United States margins by 90 basis points.
-- Total company-operated restaurant EBITDA margins improved
180 basis points to 10.7% in 2007, compared to 8.9% one
year ago. This includes U.S., Canada and International
operations.
-- As previously announced, annual same-store sales at U.S.
franchise restaurants increased 1.4%, compared to a 0.6%
increase in 2006. Wendy's franchisees have produced
seven consecutive quarters of positive same-store sales.
Annual same-store sales at U.S. company-operated
restaurants increased 0.9%, compared to a 0.8% increase
in 2006.
-- The total number of system-wide Wendy's(R) restaurants as
of Dec. 30, 2007, was 6,645, compared to 6,673 at year-
end 2006. This reflects the opening of 92 restaurants
and the closure of 120 restaurants.
Management Statements
"I am proud of our restaurant crews, franchisees and company
employees for what we accomplished in 2007," said Chief Executive
Officer and President, Kerrii Anderson. "We executed our
strategic plan, implemented many initiatives to drive the business
and made tough decisions to position Wendy's for future growth.
"We produced significantly improved company store operating
margins and earnings growth in the face of an incredibly
challenging environment, with rising commodities and the
distraction of the Special Committee process. Our goal was
to deliver EBITDA in the range of US$295-US$315 million for the
year, and we achieved that objective with EBITDA of US$305
million, up 38% over the previous year," Ms. Anderson said.
Chief Financial Officer, Jay Fitzsimmons said: "Our improved
financial performance reflected modest same-store sales growth,
higher average check and excellent expense control by our
employees. There is no question that our business is stronger
today than a year ago."
Strategic Plan -- Phase 2
The company recently launched Phase 2 of its strategic plan, which
focuses on further growth in same-store sales and earnings in
2008.
"We have a powerful brand, and our objective in 2008 is to re-
ignite sales growth and drive quality and innovation throughout
our business," Ms. Anderson said. "In addition to a strong new
product lineup for 2008 and a re-energized focus on restaurant
operations, we are excited about our new advertising that
highlights Wendy's unique competitive advantage of quality.
Today, Feb. 4, 2008, we are launching our 'Waaaay Better'
campaign, and the hero of our new advertising will be our quality
food."
The company's evolution of its advertising approach is based on
extensive consumer research over the last eight months, working in
close collaboration with its agency partners and franchise
advertising committee.
"Our new campaign leverages Wendy's red-hair iconography, but does
so in a way that is more genuine and true to our brand," said Ms.
Anderson. "Each television spot opens and closes with an animated
version of our familiar logo -- the enduring image of Wendy, a
red-headed, little girl. Our Wendy icon stands for wholesome
authenticity and honest quality. It's one of the most powerful,
under-used assets in the consumer world today."
2007 4th Quarter Financial Highlights
U.S. EBITDA store margins up 120 basis points:
Including fourth-quarter pre-tax expenses related to the Board's
Special Committee of US$6.5 million and US$0.4 million of pre-tax
restructuring charges, the company reported for the fourth-quarter
of 2007:
-- Income from continuing operations of US$14.1 million, up
42.4% from US$9.9 million in the fourth quarter of 2006;
-- EBITDA from continuing operations of US$50.1 million, up
64.3% from US$30.5 million in the fourth quarter of 2006.
Excluding expenses related to the Board's Special
Committee and restructuring charges, the company reported
for the fourth-quarter of 2007:
-- Adjusted income from continuing operations of
US$18.4 million, up 24.3% from US$14.8 million in the
fourth quarter of 2006;
-- Adjusted EBITDA from continuing operations of
US$57 million, up 48.4% from US$38.4 million in the fourth
quarter of 2006. U.S. company-operated restaurant
EBITDA margins improved 120 basis points to 10.1% in the
fourth quarter of 2007, compared to 8.9% a year ago.
The 120 basis point improvement was achieved despite
higher commodity costs which negatively impacted U.S.
margins by 180 basis points.
Company-operated restaurant EBITDA margins improved 140 basis
points to 9.8% in the fourth quarter of 2007, compared to 8.4% in
the fourth quarter of 2006. This includes U.S., Canada and
International operations.
As previously announced, fourth-quarter same-store sales at U.S.
franchise restaurants increased 0.2%, compared to an increase of
2.7% a year ago, and fourth-quarter same-store sales at U.S.
company-operated restaurants decreased 0.8%, compared to an
increase of 3.1% in the fourth quarter of 2006.
Board OKs 120th Consecutive Quarterly Dividend
The Board of Directors approved a quarterly dividend of 12.5 cents
per share, payable Feb. 29, 2008, to shareholders of record as of
Feb. 14, 2008. The dividend payment will represent the company's
120th consecutive quarterly dividend.
About Wendy's International
Headquartered in Dublin, Ohio, Wendy's International Inc.
(NYSE:WEN) -- http://www.wendysintl.com/-- and its subsidiaries
operate, develop, and franchise a system of quick service and fast
casual restaurants in the United States, Canada, Mexico,
Argentina, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Moody's Investors Service lowered all ratings of
Wendy's International Inc. and placed all ratings on review for
further possible downgrade. Affected ratings include the
company's Ba2 corporate family rating, which was lowered to Ba3.
Additionally, Standard & Poor's Ratings Services lowered its
corporate credit and senior unsecured debt ratings on Wendy's
International Inc. to 'BB-' from 'BB+'.
=================
N I C A R A G U A
=================
PERRY ELLIS: Closes C&C and Laundry Acquisition for US$33.1 Mil.
----------------------------------------------------------------
Perry Ellis International has completed its previously announced
acquisition of C&C California and Laundry brands from Liz
Claiborne. The transaction is valued at US$33.1 million,
including approximately US$10.1 million in inventory at closing.
The company funded the acquisition with funds from its credit
line.
Both brands are ideally positioned to address the fastest growing
segment within women's apparel: contemporary. C&C California
developed a celebrity following for its buttery soft cottons and
flattering fits, leading women around the world to stack their
closets with easy layering pieces exemplifying California chic.
Laundry's unique point of view places it among the most exciting
and sought after collections in the contemporary market, and is a
reigning go-to source for flirty, sophisticated dresses. Both
brands sell in luxury retail stores and high-end specialty
boutiques; C&C California is also available online at
http://www.candccalifornia.com/
Together they will join the Original Penguin brand to form the
company's new Contemporary Business Platform.
"Contemporary women's represents a great opportunity for us, and
we are pleased to have acquired two brands that are so well
positioned to take advantage of the current momentum in the
segment," said George Feldenkreis, Perry Ellis International
chairman and Chief Executive Officer. "We will be aggressively
pursuing the opportunities that this new avenue of growth presents
to us, and continue to expect the acquisition to be accretive to
fiscal 2009 results," Mr. Feldenkreis concluded.
"This acquisition marks our entry into contemporary women's
sportswear with two great brands poised for expansion. We are
excited not only about the potential for product extensions and
synergies throughout our existing business platforms, but for the
significant talent that this new team brings to the Perry Ellis
International family," said Oscar Feldenkreis, president and COO.
Perry Ellis International expects total revenues for C&C
California and Laundry during Fiscal 2009 to be approximately flat
to those of fiscal 2008.
About Perry Ellis
Perry Ellis International Inc., based in Miami, Florida,
designs, sources, markets and licenses a portfolio of brands
including Perry Ellis, Jantzen, John Henry, Cubavera,
Munsingwear, Original Penguin and Farah. The company also
operates 38 retail locations including 3 Original Penguin
locations. The company has sourcing offices in Indonesia,
India, Korea, Thailand, Peru, Nicaragua, and El Salvador.
* * *
In October 2006, Moody's Investors Service's confirmed its B1
Corporate Family Rating for Perry Ellis International, Inc., and
its B3 rating on the company's USUSUS$150 million senior
subordinated notes.
Additionally, Moody's assigned an LGD5 rating to those bonds,
suggesting noteholders will experience a 78% loss in the event
of a default.
===========
P A N A M A
===========
CHIQUITA BRANDS: Completes Consent Solicitation on 7-1/2% Notes
---------------------------------------------------------------
Chiquita Brands International Inc. disclosed that as of 5:00 p.m.,
New York City time, on Feb. 4, 2008, the requisite number of
consents had been received from the holders of its 7-1/2% senior
notes due 2014 to amend provisions in the indenture governing the
Notes regarding the company's ability to incur certain liens, as
more fully described in the consent solicitation statement dated
Jan. 28, 2008. The consent solicitation was undertaken in
connection with a proposed refinancing of the company's senior
credit facility which is intended to lower interest expense,
extend maturities and add additional covenant flexibility.
Consents may no longer be revoked,except as set forth in the
Consent Solicitation Statement.
The consent solicitation expired at 5:00 p.m., New York City time,
on Monday, Feb. 4, 2008. The company offered a consent fee of
US$20.00 per US$1,000 principal amount of Notes to each holder of
record as of Friday, Jan. 25, 2008, who delivered and did not
validly revoke a valid consent prior to Feb. 4, 2008. The
company's obligation to pay the consent fee is conditioned, among
other things, on the consummation of a senior unsecured
convertible notes transaction raising gross proceeds of not less
than US$125 million on or before Feb. 15, 2008, and other
conditions, as more fully set forth in the Consent Solicitation
Statement.
The company has also entered into a fully underwritten commitment
with Cooperatieve Centrale Raiffeisen -- Boerenleenbank B.A.,
"Rabobank Nederland," New York branch to refinance the company's
existing US$200 million revolving credit facility and a portion of
the company's existing US$326 million Term Loan C. Pursuant to
the terms of the commitment letter and subject to certain other
conditions, Rabobank committed to provide a six-year US$200
million senior secured revolving credit facility and a six-year
US$200 million senior secured term loan facility to the company.
The ultimate size of the new credit facilities may be less than
the committed amounts.
The agreement governing the new credit facilities would contain
two material financial maintenance covenants, an operating company
leverage ratio and a fixed charge coverage ratio, both of which
will be set at levels that provide significant added flexibility.
The holding company leverage covenant that is part of the existing
senior secured facility would not be part of the new facility.
Funding of the new credit facilities is subject to the issuance of
US$150 million aggregate principal amount of senior unsecured
convertible notes, which would reduce the Term Loan C so that the
remaining balance could be refinanced with the new term loan and
the negotiation, execution and delivery of definitive
documentation for the new credit facilities, among other
conditions.
About Chiquita Brands
Cincinnati, Ohio-based Chiquita Brands International Inc. (NYSE:
CQB) -- http://www.chiquita.com/-- markets and distributes fresh
food products including bananas and nutritious blends of green
salads. The company markets its products under the Chiquita(R)
and Fresh Express(R) premium brands and other related trademarks.
Chiquita employs approximately 25,000 people operating in more
than 70 countries worldwide, including Colombia, Panama and the
Philippines.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2008, Moody's Investors Service affirmed, among others,
Chiquita Brands International Inc.'s B3 Corporate family rating
and B3 Probability of default rating. Moody's rating outlook
remains negative.
CHIQUITA BRANDS: Mulls Offer of US$150 Mil. Convertible Sr. Notes
-----------------------------------------------------------------
Chiquita Brands International Inc. intends to offer, subject to
market and other conditions, a new issue of US$150 million of
Convertible Senior Notes due 2016 under the company's existing
shelf registration statement. The Notes will be unsecured
unsubordinated obligations of the company and will be convertible
under specified circumstances, as described in the prospectus.
The company intends to use the net proceeds from the offering to
repay a portion of the outstanding amounts under the Term Loan C
of the company's senior secured credit facility.
Goldman, Sachs & Co. and Morgan Stanley & Co. are the joint book-
running managers for the offering. A prospectus relating to the
offering may be obtained from:
Goldman, Sachs & Co., Prospectus Department,
85 Broad Street, New York, New York 10004,
fax: 212-902-9316 or
email: prospectus-ny@ny.email.gs.com.
A prospectus may also be obtained from:
Morgan Stanley & Co., Prospectus Department,
180 Varick Street, New York, New York 10014,
telephone number: 1-866-718-1649, or
email: prospectus@morganstanley.com.
Cincinnati, Ohio-based Chiquita Brands International Inc. (NYSE:
CQB) -- http://www.chiquita.com/-- markets and distributes fresh
food products including bananas and nutritious blends of green
salads. The company markets its products under the Chiquita(R)
and Fresh Express(R) premium brands and other related trademarks.
Chiquita employs approximately 25,000 people operating in more
than 70 countries worldwide, including Colombia, Panama and the
Philippines.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2008, Moody's Investors Service affirmed, among others,
Chiquita Brands International Inc.'s B3 Corporate family rating
and B3 Probability of default rating. Moody's rating outlook
remains negative.
CLOROX CO: Reports US$92 Million Net Income in Second Quarter
-------------------------------------------------------------
The Clorox Company reported second-quarter net earnings of
US$92 million, based on weighted average diluted shares
outstanding of 141 million. This compares with US$96 million in
the year-ago quarter, based on weighted average diluted shares
outstanding of 154 million. The year-ago quarter's results
included a tax benefit of US$5 million from discontinued
operations. Contributing to earnings for the current quarter were
strong volume and sales growth, and the benefit of a favorable tax
rate due to the settlement of certain tax matters. Current
quarter earnings were reduced by US$5 million in previously
announced pretax charges, including restructuring-related charges
associated with the consolidation of the company's manufacturing
networks. The Burt's Bees acquisition also reduced pretax
earnings by US$5 million, primarily due to costs associated with
the acquisition.
"I'm delighted with our second-quarter results," said Chairman and
Chief Executive Officer Don Knauss. "Although the commodities
environment remains challenging, we delivered strong top-line
growth and our business is strong across the portfolio. On Nov.
30, we completed the acquisition of Burt's Bees, which is
performing very well. In December, we began shipping the Green
Works(TM) line of natural cleaners, our most exciting launch in
years. There's a lot of enthusiasm across the organization about
these new businesses, the momentum in our base business and our
progress in delivering on our Centennial Strategy."
Second-quarter sales grew 8 percent to US$1.19 billion, compared
with US$1.10 billion in the year-ago quarter. The following
factors each contributed about 1.5 percentage points of sales
growth in the current quarter: December results from the Burt's
Bees acquisition, the bleach businesses acquired in fiscal year
2007 and favorable foreign exchange rates. Volume increased 6
percent compared to the year-ago quarter, including about 1
percentage point of growth from Burt's Bees and about 1 percentage
point of growth from the bleach business acquisition. Volume
growth of 4 percent on the base business was primarily
driven by strong shipments of home-care products, including
Clorox(R) disinfecting wipes, and all-time record shipments of
Fresh Step(R) scoopable cat litter. Sales growth outpaced volume
growth primarily due to the impact of favorable foreign exchange
rates and price increases, partially offset by higher trade
promotion spending in response to competitive activity.
Gross margin in the second quarter decreased 160 basis points to
40.4 percent from 42.0 percent in the year-ago quarter. The
decrease was primarily due to:
-- the impact of unfavorable raw-material costs, primarily
for resin and agricultural commodities;
-- increased promotional spending; and
-- higher manufacturing and logistics costs, which includes
the cost of diesel fuel.
In addition, gross margin was negatively impacted by about 50
basis points, or US$5 million, from a purchase-accounting step-up
in inventory values associated with Burt's Bees. These factors
were partially offset by the benefit of strong cost savings and
price increases.
Net cash provided by operations was US$148 million, compared to
US$122 million in the year-ago quarter. The year-over-year
increase was primarily due to the collection of receivables,
partially offset by higher inventories.
Following is a summary of key second-quarter results by business
segment. All comparisons are with the second quarter of fiscal
year 2007, unless otherwise stated.
Other Announcements
In addition to previously communicated price increases on Hidden
Valley(R) salad dressings, Kingsford(R) charcoal, and Armor All(R)
and STP(R) auto-care products, the company plans to increase
prices an average of 7 percent on Glad(R) trash bags and
GladWare(R) disposable containers in February 2008 to help offset
higher commodity costs.
As previously announced, in August 2007 Clorox entered into an
accelerated share repurchase agreement with two investment banks.
Under the ASR agreement, the company repurchased US$750 million of
its shares, with the banks delivering an initial amount of 10.9
million shares to the company on Aug. 15, 2007. Following
completion of the ASR in January 2008, a final purchase price
adjustment resulted in the receipt of an additional 1.1 million
shares by the company in the third quarter. This adjustment did
not require Clorox to make additional cash or share payments. The
per-share amount paid for all shares purchased under the ASR
agreement was US$62.08. The fiscal-year outlook, updated below,
continues to include about 5 cents diluted EPS benefit from the
ASR agreement.
Updated Fiscal Year 2008 Financial Outlook
For fiscal year 2008, Clorox now anticipated sales growth in the
range of 6-7 percent, including the anticipated benefit of the
bleach business and Burt's Bees acquisitions.
Previously, the company's fiscal year 2008 outlook, before the
impact of the Burt's Bees acquisition, was US$3.33 to US$3.50
diluted EPS. The outlook is being updated to include anticipated
dilution related to the Burt's Bees acquisition, additional
restructuring-related charges associated with the decision to exit
the private label food bag business, and an increase for the
benefit of strong first-half operating results.
Previously, the company anticipated EPS dilution in the range of
10 cents to 15 cents from the Burt's Bees acquisition. The
estimated Burt's Bees dilution includes pretax costs of about US$4
million for amortization of intangible assets, US$19 million for
the purchase-accounting step-up in inventory values, and the
impact of financing the transaction.
As announced previously, the fiscal year 2008 outlook also
includes anticipated charges related to the consolidation of
Clorox's manufacturing networks and other charges the company
decided to take in light of its Centennial Strategy.
Previously, the company anticipated US$49 million to US$58 million
of pretax charges for the fiscal year. These pretax charges are
now anticipated to be about US$58 million to US$60 million --
around the high end of the previous range -- due to the company's
decision to exit the remaining components of its private label
food bags business. Of these charges, approximately US$42 million
to US$44 million are anticipated to be noncash.
In addition, the updated outlook reflects part of the benefit of
strong first-half operating results, including strong top-line
growth across the portfolio and momentum on the company's base
business.
About Clorox Company
Headquartered in Oakland, California, The Clorox Company
(NYSE: CLX) -- http://www.thecloroxcompany.com/-- provides
household cleaning products and reaches beyond bleach. Although
best known for bleach (leader worldwide), Clorox makes laundry
and cleaning items (Formula 409, Pine-Sol, Tilex), cat litter
(Fresh Step), car care products (Armor All, STP), the Brita
water-filtration system (in North America), and charcoal
briquettes (Kingsford).
In Latin America, Clorox has manufacturing facilities in Costa
Rica, Dominican Republic, Panama, Peru and Colombia, among
others.
* * *
At Dec. 31, 2006, Clorox's balance sheet showed total assets of
US$3,624 million and total liabilities of US$3,657 million
resulting in a stockholders' deficit of US$33 million. The
company reported a stockholders' deficit of US$156 million at
June 30, 2006.
=======
P E R U
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CUMMINS INC: Extends ISX Deal With Volvo Trucks North America
-------------------------------------------------------------
Cummins Inc. and Volvo Trucks North America have extended their
agreement for the availability of the Cummins ISX engine in Volvo
VN trucks.
"We're pleased to build on our partnership with Volvo Trucks North
America and offer the 2010 ISX Heavy-Duty engine in the VN truck
lineup," said Jim Kelly, Cummins President - Engine Business.
"Volvo and Cummins have a strong legacy of serving the needs of
our mutual customers in the North American truck market," added Ed
Pence, Cummins Vice President and General Manager - Heavy-Duty
Engine Business, "and this agreement allows us to extend that
legacy well into the future."
"Cummins remains a valued Volvo partner," said Per Carlsson,
President and Chief Executive Officer of Volvo Trucks North
America, "and this agreement allows us to continue to meet the
needs of Volvo customers who choose the ISX engine."
Volvo Trucks North America is based in Greensboro, N.C., and is
part of the Volvo Group of companies, headquartered in Gothenburg,
Sweden.
About Cummins
Headquartered in Columbus, Indiana, Cummins Inc. (NYSE: CMI)
-- http://www.cummins.com/-- designs, manufactures, distributes
and services engines and related technologies, including fuel
systems, controls, air handling, filtration, emission solutions
and electrical power generation systems.
Cummins has Latin-American operations, particularly in Venezuela,
Brazil, Peru, Colombia, and Argentina. Its operations in the
Asia-Pacific are found in China, Japan and Korea. Its also has
facilities in Europe, particularly in the United Kingdom.
* * *
Cummins' Junior Convertible Subordinated Debentures carry
Fitch's 'BB' rating with a stable outlook.
Moody's Investors Service raised Cummins' convertible preferred
stock rating to Ba1 from Ba2 and withdrew the company's SGL-1
Speculative Grade Liquidity rating and its Ba1 Corporate Family
Rating.
GRAN TIERRA: Allots US$26.6 Mil. for Capital Expenditure Program
----------------------------------------------------------------
Gran Tierra Energy said in a statement that it has budgeted
US$26.6 million for its capital expenditure program this year.
According to Gran Tierra's statement, the program includes:
-- three exploration wells,
-- six development wells, and
-- 14 workover wells.
Business News Americas relates that Gran Tierra set aside another
US$20.1 million in contingent expenditures for infrastructure
construction, which could be needed to develop discoveries in
2007.
BNamericas notes that Gran Tierra will finance capex through:
-- cash on hand,
-- cash flow from operations, and
-- an existing credit line.
Gran Tierra's president and chief executive officer Dana Coffield
commented to BNamericas, "Gran Tierra Energy's 2008 oil
development drilling and oil exploration programs continue to gain
momentum in parallel with the satisfaction of conditions for the
pending listing of common shares of Gran Tierra Energy on the
Toronto Stock Exchange."
Gran Tierra Energy Inc. (OTCBB: GTRE.OB) --
http://www.grantierra.com/-- is an international oil and gas
exploration and development company headquartered in Calgary,
Canada, incorporated and traded in the United States and
operating in South America. The company currently holds
interests in producing and prospective properties in Argentina,
Colombia and Peru.
* * *
Management disclosed that the company's ability to continue as a
going concern is dependent upon obtaining the necessary
financing to acquire oil and natural gas interests and
generating profitable operations from its oil and natural gas
interests in the future. The company incurred a net loss of
US$1.9 million for the nine-month period ended Sept. 30, 2006,
and, as of Sept. 30, 2006, had an accumulated deficit of
US$4.1 million.
=====================
P U E R T O R I C O
=====================
PILGRIM'S PRIDE: Board Declares 2-1/4 Cents Per Share Dividend
--------------------------------------------------------------
Pilgrim's Pride Corporation Board of Directors has declared a
quarterly dividend of 2-1/4 cents per share. The quarterly
dividend is payable on March 28, 2008, to shareholders of record
at the close of business on March 14, 2008.
Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the U.S.,
Mexico and in Puerto Rico. Pilgrim's Pride employs about 40,000
people and has major operations in Texas, Alabama, Arkansas,
Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania,
Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with
other facilities in Arizona, Florida, Iowa, Mississippi and
Utah.
* * *
Pilgrim's Pride Corp. carries Moody's Investors Service's B1
senior unsecured credit rating, B2 senior subordinated notes, and
Ba3 corporate family ratings. PPC's planned new US$250 million
senior unsecured notes also bears Moody's B1 rating and its new
US$200 million senior subordinated notes bears Moody's B2 rating.
Moody's said the outlook on all ratings is stable.
Standard & Poor's Ratings Services gave Pilgrim's Pride Corp. a
'BB-' corporate credit rating.
=================
V E N E Z U E L A
=================
BANCO PROVINCIAL: Parent Cut to "Neutral" by UBS AG
---------------------------------------------------
Economic slowdown and worsening earnings outlook in Brazil and
Mexico prompted UBS AG to cut Banco Bilbao Vizcaya Argentaria
SA's shares of stock to "neutral" from "buy," according to
Charles Penty of Bloomberg News.
BBVA is the parent of BBVA Banco Provincial, S.A.
BBVA Banco Provincial, S.A., is a general commercial bank based
in Venezuela. BBVA Banco Provincial offers a range of financial
products and services marketed at both individuals and
businesses. The Bank's products include El Libretazo Club,
credit cards, bankers draughts in dollars for credit cards,
integrated debit cards, checking accounts, saving accounts,
deposit accounts, investment vehicles, mutual funds, mortgages,
credit for vehicles, insurance, financial leasing, international
trading facilities, investment banking, cash management, all
types of financial consultancy and payment services. The Bank
operates the Provinet, Personas, VIP and Empresas brand online
banking services, in addition to banking services via cellular
telephone and landlines.
* * *
BBVA Banco Provincial carries Fitch's "B" short-term IDR
and "B+" long-term IDR with Negative Outlook.
CHRYSLER LLC: Total U.S. Sales Decreased 12% at 137,392 Units
-------------------------------------------------------------
Chrysler LLC's total U.S. sales of 137,392 units were down 12% and
total fleet sales were down 18% in January. This was due to a
planned reduction of daily rental fleet vehicles that is in line
with the company's strategy.
The company opened the new year with strong sales performance from
the Dodge Avenger, Dodge Viper, Dodge Caliber and Dodge Charger,
all contributing to a year-over-year sales increase of 42% (28,457
units) for Dodge brand car sales. This is compared with 20,020
units in January 2007.
Chrysler Aspen sales of 2,570 units represented a 20% increase in
January 2008 versus the same period last year.
Based on strong consumer demand, sales of the redesigned Jeep(R)
Liberty mid-size sport-utility vehicle increased 17% to 8,331
units in January 2008. Sales in January 2007 were 7,141 units.
"As customers become even more thoughtful about the vehicles they
buy, Chrysler is committed to delivering products that meet their
needs-and exceed their expectations," Jim Press, Vice Chairman and
President, said. "While the government works on an economic
stimulus package, we are ready to offer consumers the best value
in the American car market, with vehicles that meet the highest
safety and quality standards. We are pleased to offer products
like the Dodge Journey, Challenger and Ram; and launching soon,
the two new SUV hybrids -- Chrysler Aspen and Dodge Durango.
These products, combined with the best-in-industry Lifetime
Powertrain Warranty, will continue to bring more customers to our
showrooms."
"We're moving fast to earn the trust of dealers and customers and
prove that we are listening," Deborah Meyer, Vice President and
Chief Marketing Officer said. "In the first 60 days after
Chrysler became private, we approved 260 line-item improvements to
our products. With all of the changes, we have the opportunity to
really get back in step with the American public. Our task is to
challenge old perceptions and build a new image that is strong and
relevant to today's consumers-and prove that it really is a New
Day for Chrysler."
The company finished the month with 413,874 units of inventory, or
a 75-day supply. Inventory is down by 15% compared with January
2007 when it was at 488,410 units.
About Chrysler LLC
Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2007, Standard & Poor's Ratings Services revised its
recovery rating on Chrysler's US$2 billion senior secured
second-lien term loan due 2014. The issue-level rating on this
debt remains unchanged at 'B', and the recovery rating was
revised to '3', indicating an expectation for meaningful (50% to
70%) recovery in the event of a payment default, from '4'.
CHRYSLER LLC: Parts Shortage Prompts Closing of Four Facilities
---------------------------------------------------------------
Chrysler LLC, has closed four facilities on Feb. 4, 2008, as the
direct result of a supplier-related parts shortage:
-- Belvidere Assembly Plant - Rockford, Illinois
-- Newark Assembly Plant - Newark, Delaware
-- Sterling Heights Assembly Plant - Sterling Heights,
Michigan
-- Toledo North Assembly Plant - Toledo, Ohio
-- Toledo Supplier Park - Toledo, Ohio (Second shift only
dismissed)
Mike Ramsey and Erik Larson at Bloomberg News reports that
Chrysler temporarily halted production at the four assembly plants
in a dispute with auto-parts supplier Plastech Engineered Products
Inc. Bloomberg says Chrysler closed the plants after following
through Feb. 1 on a threat to revoke contracts with Plastech. The
parts maker filed for Chapter 11 bankruptcy protection hours after
Chrysler canceled orders.
Chrysler's move may result in the closure of all 13 of its North
American assembly plants, according to Messrs. Ramsey and Larson,
unless it finds a way to obtain Plastech parts on an interim
basis.
Employees will be notified directly by their facility or through
local media regarding a return-to-work schedule, Chrysler said in
a statement announcing the plant closures. Skilled trades and
janitorial services personnel will be notified of their work
schedules by their respective plants. All other employees are
advised not to report to work unless notified directly by their
management. Powertrain and Stamping operation employees will be
notified by their local facility as to their work schedule.
These actions are to ensure quality for the company's customers.
The delayed volume will be rescheduled in the near future. The
company are monitoring the situation and will adjust inventory mix
accordingly to ensure its operations resume efficiently and as
quickly as possible.
About Chrysler LLC
Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2007, Standard & Poor's Ratings Services revised its
recovery rating on Chrysler's US$2 billion senior secured
second-lien term loan due 2014. The issue-level rating on this
debt remains unchanged at 'B', and the recovery rating was
revised to '3', indicating an expectation for meaningful (50% to
70%) recovery in the event of a payment default, from '4'.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marie Therese V. Profetana, Sheryl Joy P. Olano,
Rizande delos Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
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