/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/080207.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 Thursday, February 7, 2008, Vol. 9, Issue 27 Headlines A R G E N T I N A ALITALIA SPA: Faces EUR1.25 Bln Damages Suit Over Malpensa Plan ALITALIA SPA: To Give up Around 180 Milan Malpeansa Slots CALIMBOY SA: Trustee Verifies Proofs of Claim Until February 29 CHRYSLER LLC: Inks Interim Pact w/ Chrysler; Operations Continue CHRYSLER LLC: Wants Stay Lifted to Recover Tooling from Plastech DAWN FOODS: Files for Reorganization in Buenos Aires Court GALERIA DA VINCI: Files for Reorganization in Buenos Aires Court LANCI IMPRESORES: Files for Reorganization in Buenos Aires Court SANTANDER RIO: Launches Series XLI Gabarino Securitization TRAVE SA: Trustee to File Individual Reports on March 12 TRIAGRO SRL: Proofs of Claim Verification is Until February 18 * ARGENTINA: President Projects 10% Annual Economic Growth B A H A M A S HARRAH'S ENTERTAINMENT: Seth Palansky to Lead Sports Division B E L I Z E CONTINENTAL AIR: Credit Suisse Maintains Firm's Outperform Rating B E R M U D A GLOBAL CROSSING: To Extend IP VPN Network at Superdrug B R A Z I L BAUSCH & LOMB: Raymond Elliott & Richard Wallman Joins Board BENCHMARK ELECTRONICS: Earns US$21 Million in Fourth Quarter 2007 FORD MOTOR: Toyota & Ford Unaffected By Plastech's Bankruptcy GOL LINHAS: Offering Travel Insurance With Sul America SEAGATE TECHNOLOGY: Earns US$403 Million in 2007 Second Quarter SPANSION INC: Posts US$49.5 Mil. Net Loss in 2007 Fourth Quarter TAM SA: Board Grants Acquisition of 4 Million Preferred Shares UAL CORP: Wants American Moulding Held in Contempt UAL CORPORATION: Court Allows Illinois IRS' US$256,562 Tax Claim UAL CORP: Resolves IAA Claims Through US$1 Million Sale of Stock WEIGHT WATCHERS: Inks Joint Venture with Groupe DANONE for China C A Y M A N I S L A N D S ACM HIGH: Proofs of Claim Filing Deadline is February 21 ACM BERNSTEIN: Proofs of Claim Filing Is Until February 21 ACM STRATEGIC: Last Day to File Proofs of Claim is February 21 AMARETE LIMITED: Proofs of Claim Filing Deadline Is February 18 BERNSTEIN OFFSHORE: Proofs of Claim Filing Ends on February 21 CLOUDVIEW OFFSHORE: Proofs of Claim Filing Is Until February 21 GLEACHER EQUITY: Sets Final Shareholders Meeting for February 18 HH DISTRIBUTION: Proofs of Claim Filing Deadline Is February 21 INTERNATIONAL MERCANTILE: Proofs of Claim Filing Ends on Feb. 20 MARCO POLO: Last Day to File Proofs of Claim is February 21 MARKET NEUTRAL: Proofs of Claim Filing Deadline is Feb. 21 MERCURIUS INT'L: Proofs of Claim Filing Deadline Is February 18 MONACH LIMITED: Proofs of Claim Filing Is Until February 21 NAICO INDEMNITY: Proofs of Claim Filing Ends on February 18 UBS PACTUAL: Proofs of Claim Filing Deadline Is February 18 UBS PACTUAL: Last Day to File Proofs of Claim is February 21 C H I L E ELECTRONIC DATA: To Pay US$0.05 Per Share Dividend on March 10 FREEPORT-MCMORAN: Unit Pays Government IDR17 Trillion in 2007 SCIENTIFIC GAMES: Inks Ticket Manufacturing Deal With China Sports C O L O M B I A BANCOLOMBIA SA: C. R. Lopez to Fill Newly Created VP Position BANCOLOMBIA SA: Increasing Dividend by 6.77% to COP142 per Share ECOPETROL: To Produce 425,000 Barrels of Oil Equivalent Daily ECOPETROL: To Drill First Cano Sur Well with Royal Dutch Shell SOLUTIA INC: To Pay DTE US$773,364 to Cure PrePetition Default SOLUTIA INC: Aims to Assume Wal-Mart Deals Under Terms of Plan SOLUTIA INC: Wants to Hire Quinn Emanuel as Conflicts Counsel C O S T A R I C A SIRVA INC: Commences Prepackaged Chapter 11 Case to Pare Debt SIRVA INC: Case Summary & 30 Largest Unsecured Creditors D O M I N I C A N R E P U B L I C BANCO INTERCONTINENTAL: Court To Hear Appeal on Fraud Case GENERAL CABLE: Picks Brian Robinson as EVP, CFO & Treasurer PRC LLC: U.S. Trustee Appoints Seven-Member Creditors Committee PRC LLC: Wants to Hire Philip Goodeve as Chief Financial Officer PRC LLC: Gets Court OK to Hire Epiq as Claims & Noticing Agent G U A T E M A L A TECO ENERGY: Net Profits in Guatemala Will be Lower in 2008 TECO ENERGY: Joining Power Supply Tender in Guatemala M E X I C O BRISTOW GROUP: December 2007 Qtr. Net Income Up 91% to US$20.1MM CALPINE CORP: Closes Blue Spruce's US$90-Mln Loan Refinancing CALPINE CORP: S&P Assigns 'B' Corporate Rating on Chapter 11 Exit DESARROLLODORA HOMEX: Main Shareholders Acquire 5.1% More Shares GMAC LLC: Moody's Drops Senior Unsecured Rating to B1 from Ba3 GREENBRIER COS: Analysts Upgrade Firm's Shares To Outperform HARMAN INT'L: Reports US$43-Mln Net Income in Qtr. Ended Dec. 31 KRONOS INC: Paul Lacy to Quit as President LIBBEY INC: Paying US$0.025 Per Share Cash Dividend on March 4 MOVIE GALLERY: Court Okays CIO Seth Levy's Employment Terms MOVIE GALLERY: Wants Court Nod on Second Amended DIP Credit Pact MOVIE GALLERY: Judge Tice Okays 1st Amended Disclosure Statement PRUDENTIAL BANK: Moody's Assigns Ba2 Currency Deposit Ratings P A N A M A AES CORP: Inks Pact Selling Interests in Power Plant & Coal Mine P E R U QUEBECOR WORLD: U.S. Court Okays Donlin Recano as Claims Agent QUEBECOR WORLD: Justice Mongeon Approves E&Y as CCAA Monitor QUEBECOR WORLD: Court Extends Noteholders' BIA Preference Period QUEBECOR WORLD: Gets Interim OK to Use US$1 Billion DIP Facility P U E R T O R I C O AVNET INC: Operating Unit Signs Global Distribution Deal With Alps DORAL FINANCIAL: Declares Cash Dividend on Preferred Stocks R&G FINANCIAL: Gets Approval to Pay February Preferred Dividends V E N E Z U E L A TIMKEN CO: Board Declares US$0.17 Per Share Quarterly Dividend * VENEZUELA: Workers Union Warns Indefinite Strike Extensio - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Faces EUR1.25 Bln Damages Suit Over Malpensa Plan --------------------------------------------------------------- SEA S.p.A. has filed a EUR1.5 billion damages suit against Alitalia S.p.A. over the carrier's decision to downscale its operations at Milan's Malpensa airport, Thomson Financial reports. "We have decided to act legally against Alitalia to obtain damages for the very serious damage deriving from the behaviour of the airline," SEA chairman Giuseppe Bonomi told Thomson Financial. "The action is a duty under our obligations to our company and its shareholders." Mr. Bononi said Alitalia violated a hub partnership agreement and contracts with SEA and its SEA Handling unit, Thomson Financial relates. Mr. Bononi noted that SEA designed and developed Malpensa as Alitalia required in terms of infrastructures, facilities and organization, Agenzia Giornalistica Italia reports. However, Mr. Bononi added, the investments are rendered useless by Alitalia's downscale plan. According to Mr. Bononi, Alitalia's downscale plan will cut traffic at Malpensa by 6 million passengers and will reduce the airport's results by EUR70 million, Thomson Financial says. The SEA chairman said the airport operator is finding ways to contain its losses in 2008 and 2009. 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: To Give up Around 180 Milan Malpeansa Slots --------------------------------------------------------- Alitalia S.p.A. will release around 180 of its 357 slots at Milan's Malpensa airport as part of its downscale strategy, Thomson Financial reports, citing an official at Italian slot coordinator Assoclearance. Alitalia said the slots are unused ones during the summer season, which starts March 30, 2008, and ends Oct. 25, 2008. The Assoclearance official, however, stressed that the released slots are not for sale. 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. CALIMBOY SA: Trustee Verifies Proofs of Claim Until February 29 --------------------------------------------------------------- Haydee Liliana Villagra, Olga Raquel Amoroso, Mirta Liliana Giles, Oscar A. Colombo y Mabel I -- the court-appointed trustee for Calimboy S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until Feb. 29, 2008. Haydee Liliana will present the validated claims in court as individual reports on April 11, 2008. The National Commercial Court of First Instance in Concepcion del Uruguay, Entre Rios, 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 Calimboy 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 Flower Power's accounting and banking records will be submitted in court on May 26, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Oct. 9, 2008. The debtor can be reached at: Calimboy S.A. San Martin 793 Buenos Aires, Argentina The trustee can be reached at: Haydee Liliana Villagra, Olga Raquel Amoroso Mirta Liliana Giles, Oscar A. Colombo y Mabel I. Alem 55 y Galarza 658 Concepcion del Uruguay Entre Rios, Argentina CHRYSLER LLC: Inks Interim Pact w/ Chrysler; Operations Continue ---------------------------------------------------------------- Chrysler LLC and Plastech Engineered Products Inc. and its debtor- affiliates have reached an agreement that ends the idling of Chrysler plants as a result of a dispute, Terry Kosdrosky of the Wall Street Journal reports. Pursuant to an interim agreement reached yesterday noon, Plastech resumed its shipment of car parts and components to Chrysler, which enabled the auto maker to resume its plant operations. The arrangement will continue until February 15, says WSJ. The temporary disruption was caused by a tooling dispute over the parties, with Chrysler attempting to grab its tooling equipment over at Plastech's plants and transfer them to other suppliers so its operations would not suffer. Chrysler sued Plastech in Court LLC, seeking a declaration that it has the right to immediate possession of a number of tools used by Plastech. The tools are used by Plastech to manufacture component parts it supplies to Chrysler. Chrysler asserts that, pursuant to certain prepetition agreements, it possesses: (a) unconditional and exclusive ownership interest in all the tools Plastech uses in manufacturing component parts for Chrysler; and (b) unconditional right to possess the tools immediately. Michael C. Hammer, Esq., at Dickinson Wright PLLC, in Detroit, Michigan, notes that Plastech is insolvent and is no longer able to meet the production requirements of Chrysler. Mr. Hammer asserts that if Chrysler does not transfer production of its parts to an alternate supplier, the company will lose production of approximately 500 end-item parts resulting to: -- a halt of the production of its entire corporate fleet of vehicles, which amounts to approximately 2,300,000 vehicles; -- idling of at least 14 plants; and -- the lay off of associated workers for an undetermined period of time. Chrysler has been blamed for Plastech's bankruptcy. Frank Merola, Esq., counsel for the second lien lenders in the Debtors' Chapter 11 cases, told the Honorable Phillip Shefferly of the U.S. Bankruptcy Court for the Eastern District of Michigan that Chrysler's "precipitous" actions caused them to file for bankruptcy, WSJ relates. Chrysler strongly denied this assertion. Judge Shefferly, who commented that the agreement was a "sensible thing", has set February 13 to hear the parties' dispute, WSJ reports. About Plastech Engineering Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Chrysler LLC Based 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: Wants Stay Lifted to Recover Tooling from Plastech ---------------------------------------------------------------- Chrysler LLC, Chrysler Motors Company LLC, and Chrysler Canada Inc., ask the U.S. Bankruptcy Court for the Eastern District of Michigan to promptly lift the automatic stay to allow them to recover certain tooling from Plastech Engineered Products, Inc. and its debtor-affiliates, in accordance with the terms of their prior agreements with the Debtors and an order by the Wayne County Circuit Court. Chrysler intends to remove the tooling from certain Plastech plants and transfer production of component parts to alternate suppliers so as to avoid hampering its operations. Michael C. Hammer, Esq., at Dickinson Wright PLLC, in Detroit, Michigan, relates that Plastech provided Chrysler with numerous component parts, including door panels, floor consoles and engine covers. Chrysler utilizes the component parts in its manufacture of virtually all lines of Chrysler, Dodge and Jeep vehicles -- approximately 2,300,000 vehicles per year. The Debtor supplies approximately 500 end item part numbers to Chrysler, with the number becoming even greater if color of parts is separated. Each of those parts has at least one, and usually more, Tools or items of Tooling associated with it. Component parts provided by Plastech are used at Chrysler's assembly plants in the United States, Canada and Mexico. In addition, the Debtor's parts are used in Chrysler's various engine plants and in various vehicle kits that are sent to international locations for assembly. The Debtor utilizes certain specialized tooling in the manufacture of the Parts for Chrysler. Some of this Tooling was manufactured by the Debtor pursuant to tooling purchase orders issued by Chrysler. Other Tooling was provided to the Debtor by Chrysler. The Debtor's supply of the Parts to Chrysler is governed by supply agreements: (a) Chrysler's Production Purchasing General Terms and Conditions, (b) individual Purchase Orders, (c) a Financial Accommodation Agreement dated Feb. 12, 2007, (d) a Second Financial Accommodation Agreement dated January 22, 2008, and (e) an Amended Long Term Productivity Agreement dated Feb. 12, 2007. In early 2007, as a result of the Debtor's ongoing financial struggles, Chrysler and various other customers of the Debtor entered into the Accommodation Agreement, under which they provided the Debtor with financial accommodations totaling US$46,000,000, so that Plastech could continue to operate and supply parts to Chrysler and its other customers. Chrysler and certain of its affiliates provided US$6,900,000 of the financial accommodations to the Debtor. In exchange for the material financial accommodations provided by Chrysler, the Debtor agreed to these terms: -- The Tooling, i.e. all tooling, dies, test and assembly fixtures, jigs, gauges, patterns, casting patterns, cavities, molds, and documentation, together with any accessions, attachments, parts, accessories, substitutions replacements and appurtenances thereto used by Plastech in connection with manufacture of component and service parts for Chrysler is owned by Chrysler. -- Chrysler will have the right to take immediate possession of the Tooling at any time without payment of any kind should it elect to exercise that right. -- In the event of a dispute between the parties over whether any Tooling is owned by Chrysler, the Tooling will be presumed to be owned by Chrysler pending resolution of the dispute. After execution of the Accommodation Agreement, the Debtor advised Chrysler that it was again facing additional financial crises that would cause an interruption in the production of component parts unless Chrysler provided Plastech additional financial accommodations. In order to obtain continued production of Parts from the Debtor, Chrysler and various other customers of the Debtor entered into the Second Accommodation Agreement on Jan. 22, 2008. Under the terms of the Second Agreement, Chrysler agreed to pay the Debtor US$10,700,000 than required by the then existing Supply Agreements. In total, and with the additional financial accommodations provided to the Debtor by Chrysler and other customers, the Debtor received US$40,000,000 in accelerated payments pursuant to the terms of the Second Accommodation Agreement. In return for the financial accommodations provided by Chrysler under the Second Accommodation Agreement, the Debtor agreed to continue to supply component parts to Chrysler in accordance with the POs, and expressly again acknowledged and affirmed all of the terms and conditions of the Accommodation Agreement relating to Tooling. Notwithstanding the material financial accommodations, the Debtor defaulted on its obligations under the Supply Agreements, and made extraordinary economic demands of Chrysler, Mr. Hammer tells the Bankruptcy Court. Accordingly, Chrysler determined that it was necessary to take immediate possession of the Tooling, so as to resource production of component parts used to be manufactured by Plastech. On Feb. 1, 2008, Chrysler terminated its POs, and other relevant contracts with the Debtor and demanded that the Debtor deliver immediate possession of all of the Tooling to Chrysler. The Debtor did not comply with Chrysler's request. Chrysler thus began commencing actions against the Debtor in the various jurisdictions in which the Tooling is located, including Canada, seeking appropriate orders of injunctive relief from the various state courts permitting Chrysler to immediate possession of the Tooling. On Feb. 1, 2008, Chrysler obtained an order of possession from the Wayne County Circuit Court. The Circuit Court Order required the Debtor to allow Chrysler immediate and continuing access to all of its plants at which any of the Tooling was located, so that Chrysler could immediately take possession of the Tooling. Chrysler mobilized teams of trucks on the afternoon of Feb. 1, and sent them to the Debtor's Michigan locations to retrieve Tooling. As the teams were in the process of entering the Debtor's facilities, the Debtor filed sought Chapter 11 protection and advised Chrysler's counsel of that petition. The ongoing prosecution of the State Court Actions and the enforcement of the State Court Orders were each stayed by virtue of the Debtor's Chapter 11 petition, and Chrysler accordingly notified its teams to stand down and leave the Debtor's premises without Chrysler's Tooling. Mr. Hammer avers that the Debtor, now clearly using the automatic stay as a sword, seeks to delay Chrysler from obtaining the Tooling, assumingly in hopes of extracting additional financial accommodations. The Debtor has discontinued production of the Parts, having already breached the Supply Agreements, and Chrysler has no duty or obligation to provide the accommodations, he adds. Chrysler believes that the Debtor will continue to refuse to release the Tooling, while at the same time halting production of the Part, thus creating tremendous jeopardy to Chrysler. Accordingly, it is necessary that Chrysler receive immediate relief from the automatic stay, and that the Court order the Debtor to immediately cooperate with Chrysler in its repossession of Chrysler's Tooling, Mr. Hammer argues. He asserts that immediate relief is required so that Chrysler can gain immediate possession of the Tooling and begin production with alternate suppliers, so as to avoid mounting damage claims. Mr. Hammer explains that Chrysler's damages are existing and ongoing, as two Chrysler assembly plants have already been forced to shut down as a result of the Debtor's failure to provide Parts. Mr. Hammer also notes that the Tooling is, without question, the sole and exclusive property of Chrysler. Accordingly, the automatic stay does not apply, and the Court should order the Debtor to facilitate delivery of the Tooling to Chrysler, he asserts. Even if the automatic stay does apply, "cause" exists to lift the stay, Mr. Hammer contends. "Because the Debtor has no ownership rights in the Tooling one way or the other, by definition, the Debtor has no equity in the Tooling," he asserts. If the automatic stay is not terminated so that Chrysler can complete the process of taking possession of the Tooling, Chrysler will continue to suffer material damage as additional assembly plants close, Mr. Hammer avers. "Such damages will far outweighing any possible detriment to the Debtor." About Plastech Engineering Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Chrysler LLC Based 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'. DAWN FOODS: Files for Reorganization in Buenos Aires Court ---------------------------------------------------------- Dawn Foods Internacional S.R.L. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Dawn Foods to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Dawn Foods Internacional S.R.L. Reconquista 458 Buenos Aires, Argentina GALERIA DA VINCI: Files for Reorganization in Buenos Aires Court ---------------------------------------------------------------- Galeria Da Vinci S.A.C.I.F.I.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Galeria Da Vinci to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Galeria Da Vinci S.A.C.I.F.I.A. Parana 224 Buenos Aires, Argentina LANCI IMPRESORES: Files for Reorganization in Buenos Aires Court ---------------------------------------------------------------- Lanci Impresores S.R.L. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Lanci Impresores to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Lanci Impresores S.R.L. Mom 2862 Buenos Aires, Argentina SANTANDER RIO: Launches Series XLI Gabarino Securitization ---------------------------------------------------------- Banco Santander Rio S.A. has launched its series XLI Garbarino financial securitization for up to ARS101 million, Business News Americas reports. Banco Santander Rio said in a press statement that the subscription period will end on Feb. 8. BNamericas relates that the securitization will be issued in three tranches: -- A series, for up to ARS90.6 million with a 12% coupon due October 2008; -- B, floating rate series for up to ARS3.79 million due December 2008; and -- C series for up to ARS6.63 million maturing July 2010. According to BNamericas, the B securities has Argentina's Badlar interest rate -- -- the average interest rate banks pay for deposits over ARS1 million -- plus 450 basis points. The interest rate on the floating rate debt securities will never be higher than 21% or lower than 16%. The securitization was backed by consumer loans originated by household goods retailer Garbarino and technology shop Compumundo, BNamericas states. Banco Santander Rio S.A. is headquartered in Buenos Aires, Argentina. The bank had ARS$16.2 billion (US$5.3 billion) in total assets and ARS$12.6 billion (US$4.1 billion) in deposits as of December 2006. * * * On Nov. 13, 2007, Moody's said that Banco Santander Rio S.A.'s long term foreign currency deposit rating of Caa1 is limited by the country ceiling for foreign currency deposits. Banco Santander Rio's B2 foreign currency debt program is based on the bank's Ba1 global local currency deposit rating. TRAVE SA: Trustee to File Individual Reports on March 12 -------------------------------------------------------- Horacio Alfredo Larrivey, the court-appointed trustee for Trave S.A.'s bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Gualeguaychu, Entre Rios, on March 12, 2008. Mr. Larrivey verified proofs of claim until Dec. 31, 2007. A general report that contains an audit of Trave's accounting and banking records will be submitted in court on April 25, 2008. Mr. Larrivey is also in charge of administering Trave's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Trave S.A. Urquiza 1957, Gualeguaychu Entre Rios, Argentina The trustee can be reached at: Horacio Alfredo Larrivey Santa Fe 107, Gualeguaychu Entre Rios, Argentina TRIAGRO SRL: Proofs of Claim Verification is Until February 18 -------------------------------------------------------------- Javier Alejandro Abdala, the court-appointed trustee for Triagro S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 18, 2008. Mr. Abdala will present the validated claims in court as individual reports on April 1, 2008. The National Commercial Court of First Instance Parana, Entre Rios, 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 Triagro 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 Triagro's accounting and banking records will be submitted in court. Mr. Abdala is also in charge of administering Triagro's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Triagro S.R.L. 25 de Mayo 450, Edificio Trigal Parana, Entre Rios Argentina The trustee can be reached at: Javier Alejandro Abdala Avenida Echagae 1007, Parana Entre Rios, Argentina * ARGENTINA: President Projects 10% Annual Economic Growth ---------------------------------------------------------- A 10% yearly economic growth is Argentine President Cristina Fernandez's priority during her administration, according to Drew Benson at Dow Jones Newswires. However, Ms. Fernandez, who said she will do everything possible to attain that goal, did not provide details as to what the government plans to do to boost economic growth, Dow Jones relates. Citing the National Statistics Institute, Bill Faries of Bloomberg News relates that Argentina's economy expanded 9.6 percent in November from a year earlier, breaking the 9.2 percent median estimate of eight economists surveyed by Bloomberg. According to Bloomberg News, the pace was a result of increased consumer spending. "Consumption is flying in Argentina. This economy just keeps moving," Santiago Lopez Alfaro, an economist with Delphos Investments in Buenos Aires, told Bloomberg News. Argentina's economy, Bloomberg News says, is in its fifth year of growth averaging more than 8 percent a year, fueled by domestic consumption and record international prices for exports like soy and wheat. * * * 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 rating outlook is stable. ============= B A H A M A S ============= HARRAH'S ENTERTAINMENT: Seth Palansky to Lead Sports Division ------------------------------------------------------------- Harrah's Entertainment Inc. has named Seth Palansky as Communications Director for the World Series of Poker(R) and the company's Sports & Entertainment division. Mr. Palansky, for the past five years, has overseen corporate communications efforts for the NFL Network, the league's owned and operated television channel. Mr. Palansky will replace Gary Thompson, who was named Director of Corporate Communications for Harrah's Entertainment. Mr. Palansky will assume his new role March 3 and report to Jeffrey Pollack, Commissioner of the WSOP and Vice President of Sports & Entertainment for Harrah's. Mr. Thompson will continue to advise Pollack and will lead efforts to re-launch the Poker Hall of Fame. "Seth's extensive sports and entertainment marketing experience and personal network of global media contacts will serve us well as we enter a new and exciting period of growth for poker's No. 1 brand," said Mr. Pollack. "I am looking forward to joining the WSOP team," said Mr. Palansky. "There are a lot of exciting things going on at Harrah's and I can't wait to get started." As official spokesman for the NFL Network and for the league on television and media-policy issues, Mr. Palansky reported directly to NFL President and Chief Executive Officer Steve Bornstein and NFL Senior Vice President Greg Aiello. As the first employee of the NFL Network, Mr. Palansky oversaw the launch of the channel and was responsible for all corporate communications strategy and media relations functions pertaining to distribution, marketing, legal, government affairs, programming, production, talent relations and sales. Prior to that, he managed media relations for News Corporation's cable asset Fox Sports Net, a collection of 15 regional cable networks that owned the television rights to 67 MLB, NBA and NHL teams. Previously, he worked in management positions with various sports and entertainment public relations firms and as director of operations for a wholesale clothing company. Mr. Palansky is the second NFL executive to join the WSOP team. Ty Stewart, Director of Sponsorship and Licensing for the brand, was at the NFL for eight years before assuming his current position at Harrah's. About Harrah's Entertainment Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc. (NYSE: HET) -- http://www.harrahs.com/-- has grown through development of new properties, expansions and acquisitions, and now owns or manages casino resorts on four continents and hosts over 100 million visitors per year. The company's properties operate under the Harrah's, Caesars and Horseshoe brand names; Harrah's also owns the London Clubs International family of casinos and the World Series of Poker. Harrah's also owns the London Clubs International family of casinos. In January, it signed a joint venture agreement with Baha Mar Resorts Ltd. to operate a resort in Bahamas. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Moody's Investor Service assigned a B2 Corporate FamilyRating and Speculative Grade Liquidity Rating of SGL-3 to Harrah's Entertainment Inc. Moody's also assigned ratings to the these new debt to be issued by Harrah's Operating Company Inc.: senior secured guaranteed bank revolving credit facility at Ba2, senior secured guaranteed term loans at Ba2, and senior unsecured guaranteed notes at B3. =========== B E L I Z E =========== CONTINENTAL AIR: Credit Suisse Maintains Firm's Outperform Rating ----------------------------------------------------------------- Credit Suisse analysts have kept their "outperform" rating on Continental Airlines Inc's shares, Newratings.com reports. Newratings.com relates that the target price for Continental Airlines' shares was increased to US$38 from US$36. According to Newratings.com, Credit Suisse said in a research note that Continental Airlines' January traffic and revenues surpassed expectations. Credit Suisse told Newratings.com that the increase in the target price partly indicates favorable industry fundamentals. Earnings per share estimate for the first quarter of 2008 was increased to -US$0.10 from -US$0.40 to show lower fuel prices and inclusion of two fuel surcharges during January. Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/ -- is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 3,100 daily departures throughout Belize, Mexico, Europe and Asia, serving 154 domestic and 138 international destinations including Honduras and Bonaire. More than 400 additional points are served via SkyTeam alliance airlines. With more than 44,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries about 69 million passengers per year. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2007, Fitch Ratings affirmed Continental Airlines Inc.'s 'B-' Issuer Default Rating and 'CCC'/RR6 Senior unsecured debt rating. Fitch's Rating Outlook is Stable. As of March 2007, Continental Airlines carries Moody's Investors Service's B2 corporate family rating. The company also carries Moody's B3 senior unsecured rating and Caa1 preferred stock rating. ============= B E R M U D A ============= GLOBAL CROSSING: To Extend IP VPN Network at Superdrug ------------------------------------------------------ Global Crossing Ltd will extend its fully managed Internet Protocol Virtual Private Network into an additional 200 Superdrug retail outlets. The total value of Global Crossing's contract with the leading UK health and beauty chain is GNP2.3 million over three years. Transforming the existing ISDN network, Global Crossing's high quality IP VPN is designed to improve customer service, reduce waiting times for in-store transactions and cut operating costs. The network is VoIP-enabled and handles Superdrug's intranet traffic -- including logging staff hours and providing stock and pricing updates -- as well as customers' online credit authorisations and loyalty cards. Additionally, the new managed IP VPN is scalable and will accommodate future growth. Superdrug previously had a positive experience with Global Crossing's fully managed IP VPN network linking its administrative offices and warehouses through a combination of access options including DSL, E1 and Ethernet. "As a result, Global Crossing's fully private network had already proved itself capable of delivering the combination of speed, cost effectiveness and security we required," confirmed Superdrug's IT infrastructure manager, Jamie Duc. Measurable Gains In order to reduce queues and improve customer service, a key goal was to reduce credit card processing times by more than half -- from the typical time of 15-20 seconds to seven seconds, which beats the average for the industry. "We're currently operating at less than three seconds per transaction, well ahead of our objective," confirmed Mr. Duc. "Reduced response times in recording staff attendances are similarly well ahead of target." Another benefit of consolidating services within the new IP VPN network has been the consistency of charges. "We now know precisely what our monthly communication costs will be, making budgeting much easier and predictable," he said. "The Superdrug IP VPN installation clearly reflects Global Crossing's experience and expertise in delivering a managed network to the retail marketplace," confirmed Anthony Christie, managing director, EMEA, Global Crossing. "In particular, it highlights our ability to provide communications solutions which meet the sectors demanding time pressures, in a disparate variety of locations and within typically tight space constraints." Looking Ahead The new IP VPN will also form the backbone for future retail services offered by Superdrug as they become available. Using the service provider's managed network, the company also plans to beta test Global Crossing's forthcoming voice solution which, Superdrug believes, will potentially deliver significant benefits in reduced overheads and management costs. "We've clearly demonstrated to Superdrug that Global Crossing can deliver a reliable network, enabling them to realise an immediate reduction in costs," confirmed Mr. Christie. "We're already making a significant contribution to Superdrug's improved profitability, implementing a network that is directly aligned with its long-term business goals to succeed in a fiercely competitive retail sector." Mr. Duc concurred: "With the help of Global Crossing, we're delivering improved staff productivity and a better in-store customer experience, by reducing congestion and providing a faster service. At the same time, the introduction of Global Crossing's IP VPN has improved operational efficiency and delivered a direct return on our investment." About Global Crossing Headquartered in Florham Park, New Jersey, Global Crossing Ltd. (NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides telecommunication services over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe including Bermuda, Argentina, Brazil, and the United Kingdom. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. The company filed for chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the Debtors filed for protection from their creditors, they listed US$25,511,000,000 in total assets and US$15,467,000,000 in total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003. * * * At Sept. 30, 2007, Global Crossing Ltd.'s balance sheet showed total assets of US$2.6 billion, total debts of US$2.7 billion and a US$74 million stockholders' deficit. As reported in the Troubled Company Reporter-Latin America on Nov. 8, 2007, Global Crossing Ltd. said in a statement that its net loss increased 75% to US$89 million in the third quarter 2007, compared to US$51 million in the third quarter 2006. =========== B R A Z I L =========== BAUSCH & LOMB: Raymond Elliott & Richard Wallman Joins Board ------------------------------------------------------------ Bausch & Lomb Inc. disclosed that J. Raymond Elliott and Richard F. Wallman have joined its Board of Directors. "Our board of directors is helping guide the company into an extended period of growth," said Gerald M. Ostrov, board chairman and chief executive officer, Bausch & Lomb. "Ray and Richard further enhance the board's expertise in global business expansion and healthcare markets. We look forward to benefiting from their insight and knowledge." Mr. Elliott served as chairman, president and chief executive officer of Zimmer Holdings, Inc. from 2001 until his retirement in 2007. Prior, Mr. Elliott spent almost 30 years in general management positions in the healthcare, media and consumer products industries. He began his career with American Hospital Supply Corporation, culminating in the role of president of the Far East divisions in Tokyo, Japan. Mr. Elliott recently joined the board of Boston Scientific Corporation. He holds a B.A. degree from the University of Western Ontario, Canada. Mr. Wallman was senior vice president and chief financial officer of Honeywell International, Inc. from 1995 until his retirement in 2003. Prior, he was vice president and controller at IBM Corporation, and held leadership positions at Chrysler Corporation over the course of 14 years. He is a director of Ariba, Convergys, Hayes Lemmerz International, Lear Corporation, and Roper Industries. Mr. Wallman holds a B.S. degree in electrical engineering from Vanderbilt University and an M.B.A. from the University of Chicago. Mr. Elliott and Mr. Wallman join board members Joseph P. Landy, Elizabeth H. Weatherman and Sean D. Carney, all managing directors of Warburg Pincus LLC, and D. Scott Mackesy, general partner, Welsh Carson Anderson & Stowe. Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. In Europe, the company maintains operations in Austria, Germany, the Netherlands, Spain, and the United Kingdom. * * * Bausch & Lomb Incorporated still carries Moody's Ba1 Corporate Family Rating, Ba1 Probability of Default Rating and Ba1 ratings on certain existing senior unsecured notes. Rating outlook was revised to stable. BENCHMARK ELECTRONICS: Earns US$21 Million in Fourth Quarter 2007 ----------------------------------------------------------------- Benchmark Electronics Inc. reported sales of US$735 million for the quarter ended Dec. 31, 2007, compared to US$737 million for the same quarter in the prior year. Fourth quarter net income was US$21 million. In the comparable period of 2006, net income was US$28 million. Excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation costs, the Company would have reported net income of US$25 million in the fourth quarter of 2007. Excluding restructuring charges and the impact of stock-based compensation costs, the Company would have reported net income of US$29 million in the fourth quarter of 2006. Sales for the years ended Dec. 31, 2007 and 2006 were each US$2.9 billion. Net income for the year ended Dec. 31, 2007 was US$93 million. In the prior year, net income was US$112 million. Excluding restructuring charges, integration costs, amortization of intangibles, the impact of stock-based compensation costs and a discrete tax benefit related to a previously closed facility, the company would have reported net income of US$98 million in 2007. Excluding restructuring charges, the impact of stock-based compensation expense and a tax benefit resulting from the closure of our UK facility, the company would have reported net income of US$113 million in 2006. "In 2007 we achieved several major goals -- we expanded our customer base, enhanced our manufacturing and engineering capabilities, completed the integration of recent acquisitions, and realigned our manufacturing facilities," said Chief Executive Officer, Cary T. Fu. "We are delighted to have the heavy lifting behind us. We are on an excellent pathway for increased business from new and existing customers in 2008." Fourth Quarter 2007 Financial Highlights -- Operating margin for the fourth quarter was 3.0% on a GAAP basis and was 3.7%, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense. -- Cash flows provided by operating activities for the fourth quarter were approximately US$59 million. -- Cash and short-term investments balance was US$382 million at Dec. 31, 2007. -- Total debt outstanding was US$13 million. -- Accounts receivable was US$486 million at Dec. 31, 2007; calculated days sales outstanding were 60 days. -- Inventory was US$362 million at Dec. 31, 2007; inventory turns were 7.6 times. -- Repurchases of common shares through Feb. 4, 2008, were US$74 million. 2008 Outlook For 2008, the company expects top line growth of 5-8% for the year and earnings per share growth in the range of 15-20%, excluding amortization of intangibles and the impact of stock-based compensation expense. Looking forward, sales for the first quarter of 2008 are expected to be between US$700 million and US$725 million. About Benchmark Electronics Based in Angleton, Texas, Benchmark Electronics Inc. (NYSE: BHE) - - http://www.bench.com/-- manufactures electronics and provides services to original equipment manufacturers of computers and related products for business enterprises, medical devices, industrial control equipment, testing and instrumentation products, and telecommunications equipment. The company's global operations include facilities in The Netherlands, Romania, Ireland, Brazil, Mexico, Thailand, Singapore, and China. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 21, 2008, Moody's Investors Service has assigned a Ba2 (LGD-3, 39%) rating to Benchmark Electronics, Inc.'s new 5-year US$100 million senior secured revolving credit facility due 2012 and affirmed the company's Ba3 corporate family rating. The rating outlook is stable. FORD MOTOR: Toyota & Ford Unaffected By Plastech's Bankruptcy ------------------------------------------------------------- While Chrysler LLC said that it could close four of its U.S. plants due to Plastech Engineered Products, Inc. and its debtor- affiliates' failure to deliver component parts, Ford Motor Co. and Toyota Motor Corp. said their automotive production won't be affected by the auto-parts supplier's Chapter 11 filing. Ford said that Plastech's Chapter 11 filing won't adversely affect the auto maker's production, The Wall Street Journal reports. "We've had no impact," said Mark Fields, Ford's President of the Americas. "We anticipate, for the time being, to be able to continue our production." "We're not out shopping to take this business elsewhere at this point," Mr. Fields told WSJ. According to Reuters, Toyota said it continues to receive parts from Plastech. "We have had no interruption in supplies," Mike Goss said. "Plastech has told us that they will continue production and we will monitor the situation closely." As previously reported, Chrysler terminated its supply contracts with Plastech. Chrysler has sought court permission to seize certain equipment from Plastech's plants, so that it could transfer production of its parts to an alternate supplier. It warned that absent the transfer, it will lose production of approximately 500 end-item parts, halting the production of its entire corporate fleet of vehicles. Plastech's major customers include General Motors, Ford Motor Company, and Toyota. About Plastech Engineering Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. As of Dec. 31, 2006, the company's books and records reflected assets totaling $729,000,000 and total liabilities of $695,000,000. (Plastech Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Ford Motor Based 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 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. GOL LINHAS: Offering Travel Insurance With Sul America ------------------------------------------------------ Published reports in Brazil say that Gol Linhas Aereas Inteligentes S.A. has collaborated with insurer Sul America Companhia Nacional de Seguros to offer the Servico Assistencia Premiada insurance to its passengers. Business News Americas relates that Servico Assistencia provides several types of personal accident coverage. The insurance costs BRL3 during the two first days of travel, and BRL1.5 more for each extra day. Sul America's life and pension vice president Renato Russo told financial daily Jornal do Commercio that the company wants to to offer a wide-ranging service at a low cost that would be easy and quick to sign up for. About Sul America Headquartered in Rio de Janeiro, Brazil, Sul America Companhia Nacional de Seguros operates in partnership with ING and is primarily active in the field of life insurance. Through its subsidiaries, the company is active across three areas: insurance and private pension plans, financial services and asset management and management of medical services. The company's principal investments include interests in Sul America Investimentos e Participacoes S.A., Sul America Seguros de Vida e Previdencia S.A., Sul America Seguro Saude S.A., Sul America Investimentos e Distribuidora de Titulos e Valores Mobiliarios S.A., Sul America Servicos Medicos S.A., Gerling Sul America S.A.-Seguros Industriais and Brasilveiculos Companhia de Seguros, all of them wholly owned. The company forms part of the SulAmerica Group conglomerate and operates under this brand. About Gol Linhas Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) -- http://www.voegol.com.br-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As reported in the Troubled Company Reporter-Latin America on July 25, 2007, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Gol Linhas Aereas Inteligentes S.A. Fitch has also affirmed the outstanding US$200 million perpetual bonds and US$200 million of senior notes due 2017 at 'BB+' as well as the company's 'AA-' (bra) national scale rating. Fitch said the rating outlook is stable. SEAGATE TECHNOLOGY: Earns US$403 Million in 2007 Second Quarter --------------------------------------------------------------- Seagate Technology reported net income of US$403.0 million on revenue of US$3.42 billion for the second quarter ended Dec. 28, 2007, compared with net income of US$140.0 million on revenue of US$3.00 billion in the same period ended Dec. 29, 2006. Results for the three months ended Dec. 28, 2007, includes approximately US$31.0 million of purchased intangibles amortization and other charges associated with the Maxtor, EVault and MetaLINCS acquisitions and also a net gain from asset sales of approximately US$15.0 million. Excluding these items, non-GAAP net income was US$419.0 million. Included in both GAAP and non- GAAP results are restructuring charges of approximately US$27.0 million. For the six months ended Dec. 28, 2007, Seagate reported revenue of US$6.71 billion and net income of US$758.0 million, compared with revenue of US$5.79 billion and net income of US$159.0 million in the same period ended Dec. 29, 2006. Results for the six months ended Dec. 28, 2007, includes approximately US$61.0 million of purchased intangibles amortization and other charges associated with the Maxtor, EVault and MetaLINCs acquisitions and also a net gain from asset sales of approximately US$15.0 million. Excluding these items, non-GAAP net income was US$804.0 million. Included in both GAAP and non- GAAP results are restructuring charges of approximately US$32.0 million. "Seagate's strong financial performance in the quarter reflects the company's solid business model and expanded product portfolio, which positioned us well in a favorable industry environment characterized by seasonal strength across all storage markets and continued growth in global demand," said Bill Watkins, Seagate chief executive officer. "During the quarter, Seagate achieved record shipments and experienced some capacity constraints, underscoring the phenomenal growth of digital content in both the consumer and commercial markets. Based on unit demand across all categories, we entered the March quarter in a position of strength. The storage industry remains one of the world's most important and exciting industries. We are confident Seagate's vision, technology, and operational excellence will drive us to continued strong financial and operating performance in the March quarter and double-digit year- over-year growth." Stock Repurchase During the quarter ended Dec. 28, 2007, the company repurchased approximately 9.3 million of its common shares related to its share repurchase plan. The average price of the shares delivered to the company in the December quarter was US$27.00. The company has authorization to purchase approximately US$474.0 million of additional shares under the current stock repurchase program and the company anticipates utilizing the remaining authorization within the March quarter. Balance Sheet At Dec. 28, 2007, the company's consolidated balance sheet showed US$10.61 billion in total assets, US$5.53 billion in total liabilities, and US$5.08 billion in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 28, 2007, are available for free at http://researcharchives.com/t/s?27bb About Seagate Technology Headquartered 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, Consumer Electronics and Branded Solutions. The company has sale office in Brazil. * * * Seagate Technology still carries Standard & Poor's BB+ long-term foreign issuer credit and long-term local issuer credit ratings. Outlook is stable. SPANSION INC: Posts US$49.5 Mil. Net Loss in 2007 Fourth Quarter ---------------------------------------------------------------- Spansion Inc. reported a net loss of US$49.5 million for the fourth quarter ended Dec. 30, 2007, compared to a net loss of US$71.6 million in the previous quarter. For the fourth quarter of 2007, the company reported net sales of US$652.8 million, an increase of 7.0% compared to net sales of US$611.1 million in the third quarter of 2007. For the fourth quarter of 2007 gross margin rose to 20.0% compared to 18.0% percent in the third quarter of 2007 and sequential operating loss decreased by US$13.0 million, or 22.0%, to US$46.2 million. "The fourth quarter reflected significant operational improvement as gross margin improved. The overall pricing environment was encouraging and the book-to-bill ratio was strong at 1.3," said Bertrand Cambou, president and chief executvie officer, Spansion Inc. "The strategic investment plan for our 300mm, SP1 facility is on track and we expect to begin recognizing revenue in the first quarter as we are already qualified at leading customers." Annual Highlights For the fiscal year ended Dec. 30, 2007, net sales declined 3.0% to US$2.5 billion from US$2.58 billion in the same time period last year. Net loss for fiscal year 2007 was US$263.5 million, compared to a net loss of US$147.8 million for fiscal year 2006. Net loss for fiscal year 2007 includes approximately US$60.0 million in operating costs related to the strategic investment in SP1, the company's new 300mm, 65nm, wafer fabrication facility. Balance Sheet At Dec. 30, 2007, the company's consolidated balance sheet showed US$3.81 billion in total assets, US$2.18 billion in total liabilities, and US$1.63 billion in total stockholders' equity. About Spansion Inc. Headquartered in Sunnyvale, California, Spansion Inc. (NASDAQ: SPSN) -- http://www.spansion.com/-- designs, develops, manufactures, markets and sells flash memory solutions for wireless, automotive, networking and consumer electronics applications. The company has European operations in France, Asia-Pacific facilities in Japan, China, Malaysia and Thailand, as well as sales offices in Latin American countries including Brazil and Mexico. * * * To date, Spansion Inc. still carries Moody's 'B3' long term corporate family rating last placed on Dec. 5, 2005. Outlook is Stable. TAM SA: Board Grants Acquisition of 4 Million Preferred Shares -------------------------------------------------------------- TAM SA's Board of Directors approved the acquisition of preferred shares issued by the company to be held in treasury and subsequently cancelled or transferred, without reducing the company's capital stock. The acquisition will respect the limit of up to 4,000,000 (four million) preferred shares, equivalent to 5.56% of the total of this class of shares currently in circulation. The authorization will remain in effect for a maximum period of 365 days, as of Jan. 30. The acquisition operations will be conducted on stock exchanges at market prices, through the mediation of these institutions: a) UBS Pactual Corretora de Titulos e Valores Mobiliarios S.A., with head offices at Av. Brigadeiro Faria Lima, 3.729, 10 degrees andar - part, Sao Paulo - SP, listed on the tax rolls under CNPJ no. 43.815.158/0001-22; and b) Credit Suisse (Brasil) S.A. CTVM, with head offices at Av. Brigadeiro Faria Lima, no. 3.064, 13 degrees andar - part, Jardim Paulistano, Sao Paulo - SP. About TAM SA TAM SA (Bovespa: TAMM4 and NYSE: TAM) -- http://www.tam.com.br/ -- operates regular flights to 47 destinations throughout Brazil. It serves 72 different cities in the domestic market through regional alliances. Additionally, it maintains code- share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. The program has over 3.3 million subscribers and has awarded more than 3.6 million tickets. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 27, 2007, Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on Brazil-based airline TAM S.A. S&P said the outlook is stable. UAL CORP: Wants American Moulding Held in Contempt -------------------------------------------------- American Moulding, by and through Development Specialist Inc., has decided to proceed in a California Bankruptcy Court with discharged litigation against UAL Corporation and its debtor- affiliates, including United Air Lines, Inc., in violation of the Bankruptcy Code, the Debtors' Plan of Reorganization and the Court's order confirming the Debtors' Plan, Micah E. Marcus, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, relates. American Moulding and its counsel's open disavowal of the Bankruptcy Code, the Plan and the Confirmation Order has caused the Debtors substantial damages which accrue on a daily basis as the Debtors expend legal fees preparing for the defense of the barred claims, Mr. Marcus tells the Court. Despite actual service of all of the relevant notices by the Debtors, American Moulding failed to file administrative claims with respect to any alleged preference liability of the Debtors, or any claim for that matter, prior to the Plan's administrative bar date, Mr. Marcus states. Nevertheless, Mr. Marcus says, American Moulding filed an adversary case against the Debtors on Oct. 12, 2007, alleging a right to recover certain payments it made to the Debtors during the course of the Debtors' bankruptcy. All of the events on which American Moulding based its Complaint occurred prior to the Confirmation date. Accordingly, the Debtors ask the Hon. Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District of Illinois, overseeing the Debtors' chapter 11 case filed in 2002, to: -- hold in contempt of Court, American Moulding and any counsel who assisted it in proceeding with the discharged litigation against the Debtors; and -- require American Moulding and its counsel to reimburse the Debtors for all costs and expenses associated with defending against American Moulding's case. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 152 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). * * * Fitch Ratings, on May 2007, affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. UAL CORPORATION: Court Allows Illinois IRS' US$256,562 Tax Claim ---------------------------------------------------------------- United Airlines Inc. and the Illinois Department of Revenue have agreed to resolve their dispute on the Department's request for the allowance of its administrative expense against United. With the approval from U.S. Bankruptcy Court for the Northern District of Illinois, the parties agree that the Department's administrative expense priority claim for sales and use taxes against United, be allowed for US$256,562, plus related penalties and interest. The Department will not assert any further administrative expenses for sales and use taxes against United. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 152 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). * * * Fitch Ratings, on May 2007, affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. UAL CORP: Resolves IAA Claims Through US$1 Million Sale of Stock ---------------------------------------------------------------- The Indianapolis Airport Authority and The Bank of New York Trust Company, N.A., as trustee for a US$220,705,000 Indianapolis Airport Authority 6.5% Special Facility Revenue Bonds, Series 1995A, previously asserted Claim Nos. 45035, 45036 and 45037 against United Air Lines Inc., in United's Chapter 11 proceedings. The IAA Claims assert that United has obligations to the IAA or the Indenture Trustee based on: (i) certain alleged obligations relating to the US$220,705,000 Indianapolis Airport Authority 6.5% Special Facility Revenue Bonds, Series 1995A; and (ii) alleged obligations relating to alleged "missing property" of the IAA, certain obligations to perform certain preventative maintenance and repairs, and obligations to maintain the premises in a suitable condition. The IAA and Indenture Trustee have alleged that the IAA Claims should be granted administrative priority status in United's bankruptcy proceedings. Consequently, United objected to the IAA Claims on various grounds, and has asserted, inter alia, that the IAA Claims should be disallowed. After significant discovery and litigation on the IAA Claims, the U.S. Bankruptcy Court for the Northern District of Illinois stayed further litigation in late 2005, pending a ruling from the United States Court of Appeals for the Seventh Circuit on United's appeal of an order issued by the Court. The order held that certain bond interest obligations under an agreement between United and Denver International Airport were lease obligations and not merely prepetition unsecured claims. To resolve their dispute the parties entered into a stipulation, which provides that, United will pay to the Indenture Trustee, in full and final satisfaction of United's obligations to both the IAA and the Indenture Trustee on account of the Bond Rent Claims and the Non-Rent Claims, a cash payment for US$1,000,000. United will sell shares of New UAL common stock to generate US$1,375,000 in cash. As soon as reasonably practicable, United will distribute the Stock Proceeds, less the fees and costs incurred by United in connection with the Stock Sale, to the Indenture Trustee. United will pay the Cash Payment within 10 days after the Settlement Order becomes a final order. The Settlement Consideration will be paid by, or on behalf of United to the Indenture Trustee, and the Indenture Trustee will then distribute the Settlement Consideration to holders of the Bonds pursuant to the terms and conditions of the indenture that relates to the Bonds. The Trustee will be permitted to set a special record date for purposes of making distributions. The Indenture Trustee may terminate the Stipulation on notice to United and IAA, at any time prior to conclusion of the hearing on the Stipulation, if the Indenture Trustee receives objections to the Stipulation from holders of a majority in principal amount of the Bonds. The Stipulation will be deemed null and void if terminated. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 152 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). * * * Fitch Ratings, on May 2007, affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. WEIGHT WATCHERS: Inks Joint Venture with Groupe DANONE for China ---------------------------------------------------------------- Weight Watchers International Inc.and Groupe DANONE have signed a joint venture agreement to establish a weight management business in the People's Republic of China based on the successful Weight Watchers approach to weight loss. The joint venture, 51% owned by Weight Watchers International and 49% owned by Groupe DANONE, combines Weight Watchers' unrivalled expertise, experience and know-how as the world's leading provider of weight management services with Groupe DANONE's world-class expertise in healthy consumer products and extensive knowledge of the China marketplace and the Chinese consumer. "We are excited to partner with Groupe DANONE for the expansion of our weight management approach into the Chinese marketplace. This new joint venture will facilitate and drive Weight Watchers entry into one of the world's key markets, leveraging the unique strengths of each company," said Weight Watchers International President and Chief Executive Officer, David Kirchhoff. "We believe that Groupe DANONE is the ideal partner for Weight Watchers with its experience in China, its knowledge of Chinese consumers and its mission to bring healthy food to the world's population." Groupe DANONE Vice President of the Board, Jacques Vincent added: "For Groupe DANONE in China, this joint venture is completely consistent with the commitment of Danone to bring to the Chinese consumers products and solutions with a positive impact on their health. This joint venture will offer to Chinese consumers a world famous approach dedicated to eating right and healthy living." The new joint venture is expected to commence retail operations in China within the next year. About Groupe DANONE Groupe DANONE (Euronext Paris: BN) is a Fortune 500 company and one of the most successful healthy food companies in the world. Its mission is to bring health through tasty, nutritious and affordable food and beverage products to as many people as possible. Groupe DANONE with 200 plants and 88,000 employees has a presence in all five continents and over 120 countries. In 2006, the group recorded 14 billion euros sales. In 2007, the group acquired Numico, and reinforced its leading positions in healthy food in four business lines: fresh dairy products, waters, baby food, and medical nutrition. About Weight Watchers International Inc. Headquartered in New York City, Weight Watchers International Inc. (NYSE: WTW) -- http://www.weightwatchersinternational.com/-- provides weight management services, with a presence in 30 countries around the world, including programs in Brazil, the Netherlands, and New Zealand. The company serves its customers through Weight Watchers branded products and services, including meetings conducted by Weight Watchers International and its franchisees. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 10, 2007, Weight Watchers International Inc.'s consolidated balance sheet at June 30, 2007, showed US$1.04 billion in total assets and US$2.04 billion in total liabilities, resulting in a US$991,266 total stockholders' deficit. In August 2001, Moody's Investor Services placed Weight Watchers International Inc.'s long-term corporate family and bank loan debt ratings at "Ba1". These ratings hold to date. =========================== C A Y M A N I S L A N D S =========================== ACM HIGH: Proofs of Claim Filing Deadline is February 21 -------------------------------------------------------- ACM High Grade Strategy Fund's creditors are given until Feb. 21, 2008, to prove their claims to Linburgh Martin and John Sutlic, 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. ACM High's shareholder decided on Dec. 31, 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 and John Sutlic Attn: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, Grand Cayman KY1-1102 Telephone: (345) 949 8455 Fax: (345) 949 8499 ACM BERNSTEIN: Proofs of Claim Filing Is Until February 21 ---------------------------------------------------------- ACM Bernstein Absolute Return Credit Strategy Fund's creditors are given until Feb. 21, 2008, to prove their claims to Linburgh Martin and John Sutlic, 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. ACM Bernstein's shareholder decided on Dec. 31, 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 and John Sutlic Attn: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor Harbor Place P.O. Box 1034, Grand Cayman KY1-1102 Telephone: (345) 949 8455 Fax: (345) 949 8499 ACM STRATEGIC: Last Day to File Proofs of Claim is February 21 -------------------------------------------------------------- ACM Strategic High Grade Fund's creditors are given until Feb. 21, 2008, to prove their claims to Linburgh Martin and John Sutlic, 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. ACM Strategic's shareholder decided on Dec. 31, 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 and John Sutlic Attn: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, Grand Cayman KY1-1102 Telephone: (345) 949 8455 Fax: (345) 949 8499 AMARETE LIMITED: Proofs of Claim Filing Deadline Is February 18 --------------------------------------------------------------- Amarete Limited's creditors are given until Feb. 18, 2008, to prove their claims to K. Beighton and K.D. Blake, 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. Amarete's shareholders agreed on Jan. 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: K. Beighton and K.D. Blake KPMG Attn: Bekilizwe Dube P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands Telephone: 345-914-4464 / 345-949-4800 Fax: 345-949-7164 BERNSTEIN OFFSHORE: Proofs of Claim Filing Ends on February 21 -------------------------------------------------------------- Bernstein Offshore Fund SPC's creditors are given until Feb. 21, 2008, to prove their claims to Linburgh Martin and John Sutlic, 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. Bernstein Offshore's shareholder decided on Dec. 31, 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 and John Sutlic Attn: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor Harbor Place P.O. Box 1034, Grand Cayman KY1-1102 Telephone: (345) 949 8455 Fax: (345) 949 8499 CLOUDVIEW OFFSHORE: Proofs of Claim Filing Is Until February 21 --------------------------------------------------------------- Cloudview Offshore Fund's creditors are given until Feb. 21, 2008, to prove their claims to Geoffrey Varga and Bill Cleghorn, 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. Cloudview Offshore's shareholder decided on Dec. 11, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Geoffrey Varga and William Cleghorn Attn: Bernadette Bailey-Lewis Kinetic Partners Cayman LLP Harbor Center P.O. Box 10387APO Grand Cayman, Cayman Islands Telephone: (345) 623 9903 Fax: (345) 623 0007 GLEACHER EQUITY: Sets Final Shareholders Meeting for February 18 ---------------------------------------------------------------- Gleacher Equity Opportunity Fund Ltd. will hold its final shareholders meeting on Feb. 18, 2008, at 10:00 a.m. at 60 Arch Street, Greenwich, Connecticut, USA. These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the joint voluntary liquidators to retain the records of the company for a period of two years from the dissolution of the company, after which they may be destroyed. Gleacher Equity's shareholders decided on Jan. 9, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers Walker House, 87 Mary Street George Town, Grand Cayman KY1-9001 Cayman Islands HH DISTRIBUTION: Proofs of Claim Filing Deadline Is February 21 --------------------------------------------------------------- HH Distribution Inc.'s creditors are given until Feb. 21, 2008, to prove their claims to David M.L. Roberts and Jonathan Nicholson, 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. HH Distribution's shareholders agreed on Dec. 31, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: David M.L. Roberts and Jonathan Nicholson P.O. Box 1569 Grand Cayman KY1-1110, Cayman Islands Telephone: 345 949 4018 Fax: 345 949 7891 INTERNATIONAL MERCANTILE: Proofs of Claim Filing Ends on Feb. 20 ---------------------------------------------------------------- International Mercantile Bureau Limited's creditors are given until Feb. 20, 2008, to prove their claims to Whitney Fearnhead, 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. International Mercantile's shareholder 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: Whitney Fearnhead c/o Maples and Calder Attorneys-at-law P.O. Box 309, George Town Ugland House, South Church Street George Town, Grand Cayman Cayman Islands MARCO POLO: Last Day to File Proofs of Claim is February 21 ----------------------------------------------------------- Marco Polo Hotels International Limited's creditors are given until Feb. 21, 2008, to prove their claims to Kevin Chung Ying, 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. Marco Polo's shareholder decided on Dec. 28, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Kevin Chung Ying Hui 16th Floor, Ocean Centre Harbour City, Canton Road Kowloon, Hong Kong Tel: 1 345 949 2648 Fax: 1 345 949 8613 MARKET NEUTRAL: Proofs of Claim Filing Deadline is Feb. 21 ---------------------------------------------------------- Market Neutral Equity Strategy Sub-Fund's creditors are given until Feb. 21, 2007, to prove their claims to Linburgh Martin and John Sutlic, 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. Market Neutral's shareholder decided on Dec. 31, 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 and John Sutlic Attn: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, Grand Cayman KY1-1102 Telephone: (345) 949 8455 Fax: (345) 949 8499 MERCURIUS INT'L: Proofs of Claim Filing Deadline Is February 18 --------------------------------------------------------------- Mercurius International Fund Limited's creditors are given until Feb. 18, 2008, to prove their claims to David Walker and Lawrence Edwards, 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. Mercurius International'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: David Walker and Lawrence Edwards PricewaterhouseCoopers Attn: Jyoti Choi P.O. Box 258, Grand Cayman KY1-1104 Cayman Islands Telephone: +1 (345) 914 8657 Fax: +1 (345) 945 4237 MONACH LIMITED: Proofs of Claim Filing Is Until February 21 ----------------------------------------------------------- Monach Limited's creditors are given until Feb. 21, 2008, to prove their claims to David M.L. Roberts and P.N.A. Mosely, 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. Monach's shareholder decided on Dec. 18, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: David M.L. Roberts and P.N.A. Mosely Cayman Management Ltd. P.O. Box 1569 Ground Floor Harbor Center George Town, KY1-1110, Grand Cayman Cayman Islands Telephone: (345) 949 4018 Fax: (345) 949 7891 NAICO INDEMNITY: Proofs of Claim Filing Ends on February 18 ----------------------------------------------------------- Naico Indemnity (Cayman) Ltd.'s creditors are given until Feb. 18, 2008, to prove their claims to Chandler (USA) Inc., 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. Naico Indemnity's shareholder 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: Chandler (USA) Inc. c/o Chandler Insurance Management Ltd. P.O. Box 1854, Waterfront Center North Church Street, Grand Cayman KY1-1110 Cayman Islands UBS PACTUAL: Proofs of Claim Filing Deadline Is February 18 ----------------------------------------------------------- UBS Pactual High Income Fund, Ltd.'s creditors are given until Feb. 18, 2008, to prove their claims to Carolina Tepedino and Iuri Rapoport, 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. UBS Pactual's shareholder decided on Jan. 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Carolina Tepedino and Iuri Rapoport c/o Banco UBS Pactual S.A. Av. Brigadeiro Faria Lima 3.729 - 9th Floor Sao Paulo, SP, 04538-133, Brazil Contact for inquiries: OGIER Attn: Susan Taylor Queensgate House South Church Street, P.O. Box 1234 Grand Cayman KY1-1108, Cayman Islands Telephone: (345) 949 9876 Fax: (345) 949 1986 UBS PACTUAL: Last Day to File Proofs of Claim is February 21 ------------------------------------------------------------ UBS Pactual Orbit Debt Fund, Ltd.'s creditors are given until Feb. 21, 2008, to prove their claims to Iuri Rapoport and Carolina Tepedino, 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. UBS Pactual's shareholder decided on Jan. 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Iuri Rapoport and Carolina Tepedino Banco UBS Pactual S.A. Praia de Botafogo, 501 5th Floor, Torre Corcovado Rio de Janeiro, RJ 2250-040 Brazil ========= C H I L E ========= ELECTRONIC DATA: To Pay US$0.05 Per Share Dividend on March 10 -------------------------------------------------------------- The Electronic Data System Corp. Board of Directors has declared a dividend on the common stock of US$0.05 per share, payable March 10, 2008, to shareholders of record as of the close of business Feb. 20, 2008. Based in Plano, Texas, Electronic Data System Corp. (NYSE: EDS) -- http://www.eds.com/-- is a global technology services company delivering business solutions to its clients. The company founded the information technology outsourcing industry more than 40 years ago. The company delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. The company has locations in Argentina, Australia, Brazil, China, Chile, Hong Kong, India, Japan, Malaysia, Mexico, Puerto Rico, Singapore, Taiwan, Thailand and South Korea. * * * Moody's placed EDS Corp.'s senior unsecured debt rating at 'Ba1' in July 2004, and its probability of default rating at 'Ba1' in September 2006. Moody's said the outlook is positive. The ratings still hold to date. FREEPORT-MCMORAN: Unit Pays Government IDR17 Trillion in 2007 ------------------------------------------------------------- Freeport-McMoRan Copper & Gold Inc.'s Indonesian unit PT Freeport Indonesia paid a total of IDR17 trillion (US$1.8 billion) to the Indonesian government in 2007, Antara News reports. The company said that their obligations to the Indonesian government consisted of corporate income tax, employee income tax, regional tax and other kinds of taxes totaling US$1.4 billion. The company will also pay royalties of US$164 million and dividends of UD$216 million. According to the report, the 2007 contribution to government was bigger than the US$1.6 billion in 2006, due to fluctuations in commodity prices and the output of the company whose mines are located in Mimika district, Papua. In the period 2002-2007, the report recounts, the company paid the Indonesian government a total of US$6.9 billion dollars in corporate income tax, employee income tax and regional tax, US$5.5 billion in other taxes, 731 US$US dollars in royalties and US$654 million in dividends. The company obtained the right to mine gold and copper in Mimika district for another 40 years under its phase II work contract signed with the government in 1991, the report adds. About Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 1, 2007, Moody's Investors Service revised Freeport-McMoRan Copper & Gold Inc.'s outlook to positive and affirmed all of its other ratings. The ratings reflect the overall probability of default of Freeport, to which Moody's assigns a PDR of Ba2. The affirmed ratings include the company's Ba2 Corporate Family Rating and Ba2 Probability of Default Rating. SCIENTIFIC GAMES: Inks Ticket Manufacturing Deal With China Sports ------------------------------------------------------------------ Scientific Games has signed a contract for the manufacturing of instant tickets with China Sports Lottery Printing, Ltd. (CSLP), in the People's Republic of China. Through one of the company's joint ventures in China, Scientific Games will establish, working together with the CSLP, a state of the art instant ticket manufacturing facility at an existing CSLP location as soon as the press can be manufactured and delivered. This facility will be operated by the joint venture for a 15-year period. Revenues to Scientific Games will be based on a percentage of sales. Scientific Games Chairperson and Chief Executive Officer, Lorne Weil stated, "We are honored and excited at the opportunity to work with the CSL and its affiliate CSLP to help build a state-of- the art instant ticket printing facility in China. This project will facilitate the growth of CSL's instant ticket lottery and enable it to become a world leader." About Scientific Games Headquartered in New York City, Scientific Games Corporation (Nasdaq: SGMS) - http://www.scientificgames.com/-- is an integrated supplier of instant tickets, systems and services to lotteries worldwide. The company is a supplier of fixed odds betting terminals and systems, amusement and skill with prize betting terminals, interactive sports betting terminals and systems, and wagering systems and services to pari-mutuel operators. It is also a licensed pari-mutuel gaming operator in Connecticut, Maine and the Netherlands and is a supplier of prepaid phone cards to telephone companies. Scientific Games' customers are in the United States and more than 60 other countries. The company has additional productions and operating facilities located in Austria, Chile and the United Kingdom. * * * Moody's Investor Services placed Scientific Games Corporation's probability of default rating at 'Ba2' in September 2006. The rating still hold to date with a stable outlook. =============== C O L O M B I A =============== BANCOLOMBIA SA: C. R. Lopez to Fill Newly Created VP Position ------------------------------------------------------------- At a meeting held on Feb. 4, 2008, Bancolombia S.A. Board of Directors created a new vice-presidency position that will be managing the bank's treasury products and the investment portfolio. This new position will be named Vice President of Treasury. The Board designated Carlos Alberto Rodriguez Lopez to fill this position. Mr. Rodriguez Lopez will become a representative of the bank once he is authorized by the Superintendency of Finance. Mr. Rodriguez Lopez holds undergraduate and postgraduate degrees in economics from Universidad de los Andes and an MBA from Insead (France). Among other positions, he has been Director of the Market Transactions Department of the Colombian Central Bank, General Manager of Public Credit and National Treasury, Vice President of Development of the Colombian Stock Exchange, and Manager of Corporate Finance at Interconexion Electrica S.A. He has also been professor at Universidad de los Andes. 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. BANCOLOMBIA SA: Increasing Dividend by 6.77% to COP142 per Share ---------------------------------------------------------------- Bancolombia will seek its shareholders approval on March 10 to increase its dividend by 6.77% to COP142 per share and per quarter, compared to the dividends paid last year, Business News Americas reports. According to Bancolombia's press statement, the new dividend will be COP586 per year. It will be payable from the first business day of each calendar quarter: -- April 1, 2008; -- July 1, 2008; -- Oct. 1, 2008; and -- Jan. 2, 2009. Bancolombia's board will also propose allotting COP370 billion to boost the legal reserve and fund its growth plan this year, BNamericas states. 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'. Fitch's rating outlook is stable. ECOPETROL: To Produce 425,000 Barrels of Oil Equivalent Daily ------------------------------------------------------------- Colombian state-run oil firm Ecopetrol's head Javier Gutierrez told Business News Americas that the company will produce about 425,000 barrels of oil equivalent per day in 2008. Ecopetrol produced an average of 399,000 barrels of oil equivalent per day last year, BNamericas says, citing Mr. Gutierrez. Mr. Gutierrez told BNamericas that Ecopetrol will invest US$3.8 billion this year, drawing from its own resources. Ecopetrol wants its production to reach 550,000 barrels of oil equivalent per day by 2011, BNamericas states. Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. Ecopetrol produced 385,000 barrels a day of oil and gas in 2006 and has 330,000 barrels a day of refining capacity, according to the company's Web site. In 2005 it produced about 60 percent of Colombia's daily output. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A.'s foreign and local currency issuer default ratings at 'BB+' and 'BBB-', respectively. ECOPETROL: To Drill First Cano Sur Well with Royal Dutch Shell -------------------------------------------------------------- Colombian state-owned oil firm Ecopetrol will drill ts first well in the Cano Sur block with the Royal Dutch Shell in 10 days, Business News Americas reports, citing a project official. As reported in the Troubled Company Reporter-Latin America on Jul. 19, 2007, Ecopetrol said that it signed a contract with Royal Dutch Shell for the joint exploration of the Cano Sur block in Llanos Orientales. The 653,662-hectare Cano Sur is in the southeast of the Villavicencio city. State hydrocarbons regulator Agencia Nacional de Hidrocarburos ratified the contract. Ecopetrol and Shell will each have a 50% stake in Cano Sur. Ecopetrol will operate Cano Sur during the exploratory stage, BNamericas states. About Royal Dutch Royal Dutch Shell plc is engaged in all principal aspects of the oil and natural gas industry, and also has interests in chemicals and additional interests in power generation and renewable energy (mainly in wind and advanced solar energy). The company operates in five segments: Exploration & Production, which searches for and recovers oil and natural gas around the world and is active in 38 countries; Gas & Power, which liquefies and transports natural gas, and develops natural gas markets and related infrastructure; Oil Products, which include all of the activities necessary to transform crude oil into petroleum products and deliver these to customers worldwide; Chemicals, which produces and sells petrochemicals to industrial customers globally, and Other Industry Segments and Corporate, which include Renewables and Hydrogen. In May 2007, Rubis acquired the German liquefied petroleum gas distribution subsidiary from Shell. About Ecopetrol Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. Ecopetrol produced 385,000 barrels a day of oil and gas in 2006 and has 330,000 barrels a day of refining capacity, according to the company's Web site. In 2005 it produced about 60 percent of Colombia's daily output. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A.'s foreign and local currency issuer default ratings at 'BB+' and 'BBB-', respectively. SOLUTIA INC: To Pay DTE US$773,364 to Cure PrePetition Default -------------------------------------------------------------- Solutia Inc., and Detroit Edison Company, doing business as DTE Energy, are parties to: -- an energy purchase agreement for the sale and supply of electric power, as amended; -- a general service water agreement; and -- an amended and restated steam services agreement. Solutia is seeking to assume the DTE Contracts with a proposed cure amount of US$327,917. DTE objected to Solutia's assumption of the contracts and asserted that US$773,364 was the prepetition amount due and owing by Solutia under the DTE Contracts. The parties have agreed that Solutia will pay US$773,364 to cure any and all remaining prepetition defaults under the DTE Contracts. Upon approval from the U.S. Bankruptcy Court for the Southern District of New York of the Stipulation, DTE's Objection will be deemed withdrawn, with prejudice, without any further action from the parties. 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: Aims to Assume Wal-Mart Deals Under Terms of Plan -------------------------------------------------------------- Solutia Inc. and its debtor-affiliates intend to assume certain executory contracts with Wal-Mart Stores Inc., pursuant to the terms of the Debtors' confirmed Fifth Amended Joint Plan of Reorganization. In the ordinary course of operating under the Wal-Mart Contracts, Wal-Mart may be entitled to take credits or contractual adjustments for defective products, rebates or other contractually permitted items that are currently unknown or that will accrue after the date of the Debtors' assumption of the Wal- Mart Contracts. The parties have agreed that notwithstanding the proposed cure amounts of the contracts, Wal-Mart and its subsidiaries and affiliates are allowed to assert in the ordinary course any chargebacks that are currently unknown or that will accrue after the Assumption Date pursuant to the terms of the Wal-Mart Contracts without regard to the date on which Wal-Mart or its subsidiary or affiliate purchased the product giving rise to the Chargeback. Nothing in the Stipulation constitutes a waiver of the Debtors' rights to dispute any Chargeback for reasons other than that the claims were not made before the Assumption Date. About Wal-Mart 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: Wants to Hire Quinn Emanuel as Conflicts Counsel ------------------------------------------------------------- Solutia Inc., and its Debtor-affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to employ Quinn Emanuel Urquhart Oliver & Hedges LLP, as their special litigation and conflicts counsel for matters arising in or related to the Debtors' Chapter 11 cases, nunc pro tunc to Jan. 22, 2008. According to Rosemary L. Klein, general counsel of Solutia and an authorized officer of each of the other Debtors, because of Quinn Emanuel's experience in matters concerning complex bankruptcy and commercial litigation, the firm is well-suited to deal effectively with many of the potential legal issues that may arise in the Debtors' Chapter 11 cases. Ms. Klein tells the Court that attorneys at Quinn Emanuel have served as counsel to the debtors, trustees or creditors committees in numerous bankruptcy cases, including American Home Mortgage Holdings Inc., Enron, Fruit of the Loom, K-Mart and Parmalat. As special counsel, Quinn Emanuel will: (a) advise the Debtors regarding their ability to initiate actions to protect their rights under certain Oct. 25, 2007 Commitment Letter -- with respect to Solutia's exit financing -- and related documents and enforce the Commitment Parties' legally binding commitments for the benefit of their estates; (b) advise the Debtors regarding their ability to initiate actions to protect their rights as against the Debtors' postpetition lenders; and (c) commence and conduct any and all litigation necessary or appropriate to assert rights held by the Debtors, protect assets of the Debtors' Chapter 11 estates or otherwise further the goal of completing the Debtors' successful reorganization. The Debtors will pay Quinn Emanuel in accordance with its standard hourly rates and reimburse the firm of actual and necessary expenses. The firm informs the Court that its rates are subject to period adjustment to reflect economic and other conditions. The firm's current hourly rates are: Partners US$660 - US$950 Other Attorneys US$380 - US$950 Legal Assistants US$250 - US$280 Susheel Kirpalani, Esq., a member of Quinn Emanuel, relates that the firm is not currently representing any of the creditors listed on the Debtors' 50 largest unsecured creditors list on any matters relating to the Debtors. He continues that the firm has represented, currently represents and will continue to represent entities that are claimants of, or interest holders in the Debtors, in matters completely unrelated to the Debtors or their Chapter 11 cases. Mr. Kirpalani discloses that Quinn Emanuel has represented, or represents, these entities: -- Deutsche Bank Securities Inc.: The firm represents Deutsche Bank in another bankruptcy case. Deutsche Bank waived any potential conflict of interest that might arise from Quinn Emanuel's commencement of litigation against Deutsche Bank in unrelated matters; and -- Teachers Insurance and Annuity Association of America: TIAA became the beneficial owner of an unsecured claim against Solutia. Following a Court-approved settlement with Solutia in 2005, TIAA became the holder of an allowed unsecured claim. Quinn Emanuel's representation of TIAA ceased upon approval of the settlement. Quinn Emanuel has not, does not, and will not represent any entities or any of their respective affiliates or subsidiaries, in matters related to the Debtors, their Chapter 11 cases, or other matters directly adverse to the Debtors during the pendency of their cases, Mr. Kirpalani assures the Court. Mr. Kirpalani asserts that the firm is a disinterested person, as the term is defined by Section 101(14) of the Bankruptcy Code. 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. =================== C O S T A R I C A =================== SIRVA INC: Commences Prepackaged Chapter 11 Case to Pare Debt ------------------------------------------------------------- SIRVA Inc. has reached an agreement with its lenders to restructure its senior secured debt through a voluntary, pre-packaged Chapter 11 Reogranization, which will allow it to finalize the restructuring of its debt while continuing to operate its business and serve its customers. SIRVA's operations outside of the U.S. are not part of the Chapter 11 filing. SIRVA said it is taking this action to free up its operations from a heavy debt service burden and to strengthen its balance sheet so that it is better positioned to weather the continuing weak U.S. housing market. The restructuring is embodied in a plan of reorganization which received overwhelming support from the company's lenders. The plan will reduce SIRVA's outstanding bank debt by approximately US$200 million and annual cash interest expense by approximately US$54 million. As a result of the plan, the outstanding capital stock of the company will be canceled upon consummation of the restructuring. "SIRVA undertook a comprehensive strategic review to evaluate all the options for restructuring our balance sheet and, after careful consideration, determined that a pre-packaged Chapter 11 filing provided the most efficient way forward for the company," said Robert W. Tieken, chief executive officer. "We believe this approach is in the best interest of our employees, customers, agents and suppliers because it reduces the excessive amount of interest expense we had to pay, allowing us to dedicate more of our capital to our business operations." The company emphasized the Chapter 11 filing will not impact day- to-day operations for employees, customers, agents, suppliers and general business operations in the U.S. SIRVA has sought, and expects to receive, authority to continue to operate on a normal basis during the in-court restructuring, which it expects to complete in 60 to 90 days. These "first-day motions" would ensure that employee pay and benefits are fully protected, all current and future obligations to its customers and agents are fulfilled, and suppliers will be paid in full. Furthermore, as part of its agreement with its lenders, SIRVA will provide a full recovery to the vast majority of its general unsecured creditors. SIRVA Arranges US$150-Mil. DIP Financing To supplement its liquidity position, the company has arranged for debtor-in-possession financing, with an initial commitment of US$150 million, from members of its current lender group. The DIP financing will convert into a US$215 million senior secured credit facility upon emergence, US$130 million of which will be available for revolver borrowings and letters of credit. "Our financing commitment provides additional reassurance to employees, customers, agents and suppliers that we can meet all of our ongoing commitments," Mr. Tieken said. "The ability to come to a consensual debt-for-equity agreement with our lenders demonstrates our lenders' belief in SIRVA's business model and their long-term faith in the company," continued Mr. Tieken. "When our financial restructuring efforts are complete, we will be in a better position to serve our customers and capitalize on new opportunities within the global relocation landscape." The company and its domestic subsidiaries filed their voluntary Chapter 11 petitions in U.S. Bankruptcy Court for the Southern District of New York. The main case has been assigned case number 08-10375. About SIRVA Inc. Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets : SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation solutions to a well-established and diverse customer base. The company handles all aspects of relocation, including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services. SIRVA conducts more than 300,000 relocations per year, transferring corporate and government employees along with individual consumers. SIRVA's brands include Allied, Allied International, Allied Pickfords, Allied Special Products, DJK Residential, Global, northAmerican, northAmerican International, Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA Settlement. The company has operations in Costa Rica. SIRVA INC: Case Summary & 30 Largest Unsecured Creditors -------------------------------------------------------- Lead Debtor: SIRVA, Inc. 700 Oakmont Lane Westmont, IL 60559 Bankruptcy Case No.: 08-10433 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- D.J.K. Residential, L.L.C. 08-10375 A Five Star Forwarding, Inc. 08-10376 A Relocation Solutions Management Co. 08-10377 A Three Rivers Forwarding, Inc. 08-10378 Allied Freight Forwarding, Inc. 08-10379 A.V.L. Transportation, Inc. 08-10380 Alaska U.S.A. Van Lines, Inc. 08-10381 Allied Alliance Forwarding, Inc. 08-10382 Allied Continental Forwarding, Inc. 08-10383 Allied Domestic Forwarding, Inc. 08-10384 Allied Intermodal Forwarding, Inc. 08-10385 Allied International N.A., Inc. 08-10386 Allied Interstate Transportation, Inc. 08-10387 Allied Transcontinental Forwarding, Inc. 08-10388 Allied Transportation Forwarding, Inc. 08-10389 Allied Van Lines Terminal Co. 08-10390 Allied Van Lines, Inc. 08-10391 Allied Van Lines, Inc. of Indiana 08-10392 Americas Quality Van Lines, Inc. 08-10393 Anaheim Moving Systems, Inc. 08-10394 Cartwright Moving & Storage Co., Inc. 08-10395 Cartwright Van Lines, Inc. 08-10396 City Storage & Transfer, Inc. 08-10397 C.M.S. Holding, L.L.C. 08-10398 Executive Relocation Corp. 08-10399 Federal Traffic Service, Inc. 08-10400 Fleet Insurance Management, Inc. 08-10401 FrontRunner Worldwide, Inc. 08-10402 Global Van Lines, Inc. 08-10403 Global Worldwide, Inc. 08-10404 Great Falls North American, Inc. 08-10405 Lyon Van Lines, Inc. 08-10406 Lyon Worldwide Shipping, Inc. 08-10407 Manufacturing Support Services, L.L.C. 08-10408 Meridian Mobility Resources, Inc. 08-10409 Move Management Services, Inc. 08-10410 N.A. (U.K.) G.P. Corp. 08-10411 N.A.C.A.L., Inc. 08-10412 N.A.V.L., L.L.C. 08-10413 NorAm Forwarding, Inc. 08-10414 North American Forwarding, Inc. 08-10415 North American International Holding Corp. 08-10416 North American International N.A., Inc. 08-10417 North American Logistics, Ltd. 08-10418 North American Van Lines of Texas, Inc. 08-10419 North American Van Lines, Inc. 08-10420 Relocation Risk Solutions, L.L.C. 08-10421 R.S. Acquisition Holding, L.L.C. 08-10422 R.S. Acquisition, L.L.C. 08-10423 SIRVA Container Lines, Inc. 08-10424 SIRVA Freight Forwarding, Inc. 08-10425 SIRVA Global Relocation, Inc. 08-10426 SIRVA Imaging Solutions, Inc. 08-10427 SIRVA M.L.S., Inc. 08-10428 SIRVA Relocation, L.L.C. 08-10429 SIRVA Settlement of Alabama, L.L.C. 08-10430 SIRVA Settlement, Inc. 08-10431 SIRVA Worldwide, Inc. 08-10432 Trident Transport International, Inc. 08-10434 Type of Business: The Debtors provide relocation solutions (relocation services and moving services) to more than 12,000 corporate clients and governmental agencies, as well as a number of individual consumers around the world. Their services include transferee counseling, home purchase programs, real estate broker and agent referrals to assist transferees with home sales and purchases, mortgage originations, expense management, movement of household goods, global program management, and the provision of destination settling in services. They globally market and deliver these services under the SIRVA Relocation brand, as well as a variety of household goods. They provide relocation services through its operating centers located in the U.S., Asia, continental Europe, U.K., Australia and New Zealand. They operate in three segments: Global Relocation Services, Moving Services North America and Moving Services Europe and Asia Pacific. See http://www.sirva.com/ Chapter 11 Petition Date: February 5, 2008 Court: Southern District of New York (Manhattan) Judge: James M. Peck Debtors' Counsel: Marc Kieselstein, Esq. Kirkland & Ellis, L.L.P. 200 East Randolph Drive Chicago, IL 60601 Tel: (312) 861-2000 Fax: (312) 861-2200 Consolidated Quarterly Financial Condition as of September 2007: Total Assets: US$924,457,299 Total Debts: US$1,232,566,813 Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ SIRVA U.K. Pension Scheme U.K. Pension US$31,808,000 SIRVA Trustees, Ltd. Guarantee Attention: Stephen Holland Heritage House, 345 Southbury Road Enfield, Middlesex, EN1 1UP, U.K. Tel: 44-2082198200 Fax: 44-2082198041 Owner Operators Independent Litigation US$5,000,000 Drivers Association Settlement Attention: Daniel E. Cohen The Cullen Law Firm, P.L.L.C. 1101 30th Street Northwest, Suite 300 Washington, D.C. 20007 Tel: (202) 944-8600 Fax: (202) 944-8611 TEAM Relocations Vendor US$3,805,945 Attention: Tim Roemer Drury Way London, U.K. NW10 0NJ Tel: 44-2089551333 Fax: 44-2089551336 Johnson & Johnson Client US$3,401,878 Attention: Ruth Davis U.S. Route 1 & Aaron Road New Brunswick, NJ 08902 Tel: (732) 524-4000 Fax: (732) 524-5031 Abbot Laboratories Client US$2,790,563 Attention: Tillie Scanian 1401 North Sheridan Road, D-311-A3A-3 North Chicago, IL 60064 Tel: (847) 937-8655 Fax: (847) 937-4766 UnitedHealth Group Client US$2,526,369 Attention: Thomas Valerius 9900 Bren Road East Mail Route, MN008-B217 Minnetonka, MN 55343 Tel: (952) 936-7329 Fax: (952) 936-3052 U.S. Department of Treasury Client US$1,190,166 Attention: Office of the Treasurer 1500 Pensnsylvania Avenue Northwest, Room 2134 Washington, D.C. 20220 Tel: (202) 622-2000 Fax: (202) 622-6464 Beltmann Group, Inc. Agent US$1,186,570 Attention: Dann W. Battina 2480 Long Lake Road Roseville, MN 55113 Tel: (651) 639-2800 Fax: (651) 639-2933 3M Co. Client US$1,068,416 Attention: Judy Knepp 3M Center Building 224-02-W-15 St. Paul, MN 55144 Tel: (651) 733-1110 Fax: (651) 736-2133 Cargill, Inc. Client US$1,018,896 Attention: Sandy Palmer P.O. Box 9300, MS 83 Minneapolis, MN 55440 Tel: (952) 742-6125 Fax: (952) 742-6502 MacDermid, Inc. Client US$775,479 Attention: Deb Christensen 245 Freight Street Waterbury, CT 06702 Tel: (203) 575-5700 Fax: (203) 575-5630 Mills Van Lines, Inc. Agent US$723,842 Attention: Robert K. Mills 14675 Foltz Industrial Parkway Strongsville, OH 44136 Tel: (440) 846-0200 Fax: (440) 846-0606 Ward North American Agent US$704,341 Attention: Kevin Ankenbauer 17275 Green Mountain Road, Suite 100 San Antonio, TX 78247 Tel: (210) 655-8623 Fax: (210) 967-5420 PetSmart, Inc. Client US$569,782 Attention: Marci Renfro 19601 North 27th Avenue Phoenix, AZ 85027 Tel: (623) 395-6100 Fax: (623) 395-6517 The North American Coal Corp. Client US$560,270 Attention: Patty Kropp Signature Place II 14785 Preston Road, Suite 1100 Dallas, TX 75254 Tel: (972) 239-2625 Fax: (972) 387-1328 Comcast Communications, Inc. Client US$553,548 Attention: Mary Pennington 1500 Market Street, 8 Floor East Tower Philadelphia, PA 19102 Tel: (215) 665-1700 Fax: (215) 981-7790 Bayshore Transportation Agent US$519,948 Systems, Inc. Attention: Linda L. Piazza 901 Dawson Drive New Castle, DE 19713 Tel: (302) 366-0220 Fax: (302) 366-8085 K.P.M.G., L.L.P. Client US$500,000 Attention: Cathy A. Schultz Three Chestnut Road Montvale, NJ 07645 Tel: (201) 307-7306 Fax: (201) 505-6305 Accretive Solutions Houston, Vendor US$497,687 L.L.P. Attention: Gary Horn 10375 Richmond Avenue Houston, TX 77042 Tel: (713) 266-8288 Fax: (713) 266-8299 United Launch Alliance, L.L.C. Client US$485,517 Attention: Susan Moore 9100 East Mineral Circle, MS-U6001 Centennial, CO 80112 Tel: (720) 922-7100 Wells Fargo Home Mortgage Client US$461,636 Attention: Amy Simpson Client Accounting P.O. Box 340 Frederick, MO 21705 Tel: (301) 662-5413 Fax: (301) 662-7020 John Deere Client US$413,338 Attention: Chelsey Allaman H.R. Shared Services Center 3800 Avenue of the Cities, Suite 108 Moline, IL 61265 Tel: (309) 748-0587 Fax: (309) 749-2345 Exxon Mobile Customer Accounts US$406,000 Attention: Reanna Hamel Receivables Credits 4500 Dacoma Street corner BH3546 Houston, TX 77092 Tel: (713) 680-5148 Fax: (262) 313-4153 Winn-Dixie Stores, Inc. Client US$401,648 Attention: Kara Church 5050 Edgewood Court Jacksonville, FL 32254 Tel: (904) 783-5828 Fax: (904) 370-7224 Coleman American Moving Agent US$382,536 Services, Inc. Attention: William J. Brakefield #1 Covan Drive Midland City, AL 36350 Tel: (334) 983-6500 Fax: (334) 983-6716 Palmer Moving & Storage Co. Agent US$378,627 Attention: Jeffrey W. Palmer 24660 Dequindre Warren, MI 48091 Tel: (586) 834-3400 Fax: (586) 834-3414 Ketchum Directory Advertising Vendor US$354,032 Attention: Liz Okesson 225 North Michigan Avenue, 12th Floor Chicago, IL 60611 Tel: (312) 946-8091 Fax: (312) 946-8297 Edward Jones Client US$340,406 Attention: Ginger Noblitt 1245 J.J. Kelley Memorial Drive St. Louis, MO 63131 Tel: (314) 515-2000 Fax: (314) 515-3269 Cytec Industries, Inc. Client US$337,206 Attention: Steve Nackerson 5 Garrett Mountain Plaza West Paterson, NJ 07424 Tel: (973) 357-3100 Fax: (973) 357-3065 Safeway Inc. Client US$334,711 Attention: Arlene McCort 5918 Stoneridge Mall Road Pleasanton, CA 94588 Tel: (925) 467-3508 Fax: (925) 937-7809 Land O'Lakes Client US$331,602 Attention: Naomi Roodell P.O. Box 64101 St. Paul, MN 55164 Tel: (651) 481-2865 Fax: (651) 234-0800 =================================== D O M I N I C A N R E P U B L I C =================================== BANCO INTERCONTINENTAL: Court To Hear Appeal on Fraud Case ---------------------------------------------------------- The Dominican Republic's Third Court of Appeals 3rd Penal Chamber will hear the appeal of former Banco Intercontinental chief Ramon Baez Figueroa and other defendants of the fraud case, Dominican Today reports. As reported in the Troubled Company Reporter-Latin America on Nov. 19, 2007, Mr. Figueroa filed an appeal on the National District court's sentence in the bank's fraud case. The court sentenced Mr. Figueroa for his role in Banco Intercontinental's 2003 bankruptcy with 10 years imprisonment, over DOP63-billion in damages, and a DOP2.5-billion fine. Dominican Today relates that Banco Intercontinental's financial adviser Luis Alvarez Renta was given 10 years in prison. The bank's executive vice president Marcos Baez Cocco were convicted of hiding data to avoid the control of the banking authorities and conceal the bank's financial situation. The Court of Appeals First Penal Chamber was initially chosen to hear the case. However, judges Miriam German, Julio Cesar Cano, and Katia Miguelina Jimenez withdrew from the case due to various reasons, Dominican Today states. Located in Dominican Republic, Banco Intercontinental aka Baninter collapsed in 2003 as a result of a massive fraud and a resulting deficit of US$2.2 billion. As a consequence, all of its branches were closed. The bank's current and savings accounts holders were transferred to the bank's new owner -- Scotiabank. The bankruptcy of Baninter was considered the largest in world history, in relation to the Dominican Republic's Gross Domestic Product. The resulting deficit was equal to 12% to 15% of the country's national GDP. It costs Dominican taxpayers DOP55 billion and resulted to the country's worst economic crisis. GENERAL CABLE: Picks Brian Robinson as EVP, CFO & Treasurer ----------------------------------------------------------- General Cable Corporation's Board of Directors has elected Brian J. Robinson to the post of Executive Vice President, Chief Financial Officer and Treasurer effective immediately. Mr. Robinson will continue to report to Gregory B. Kenny, President and Chief Executive Officer of General Cable. "This is a well-deserved recognition by the Board of the value that the Company places on Brian's operating and strategic leadership," said Gregory B. Kenny, President and Chief Executive Officer of General Cable. "Since January 2007, Brian has led our Corporate Finance Team through two debt issuances totaling over $800 million, and four acquisitions, including the $1.2 billion of revenues PDIC business. He has also been instrumental in driving improved controls and best practices in our global finance organization." Mr. Robinson has held the title of Senior Vice President, Chief Financial Officer and Treasurer since January 2007. Mr. Robinson became Controller for General Cable in 2000 and assumed the additional responsibility of Senior Vice President and Treasurer in March 2006. He began his career at Deloitte & Touche LLP in 1991, and in 1997 moved from Cincinnati, Ohio to London, England, where he served as Audit Manager focused on accounting services for global companies. In 1999, Mr. Robinson joined General Cable as Assistant Controller. Mr. Robinson holds a Bachelor of Science degree in Accounting from the University of Dayton and received his CPA certification in 1993. About General Cable Headquartered in Highland Heights, Kentucky, General Cable Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes aluminum, copper, and fiber-optic wire and cable products. It has three operating segments: industrial and specialty (wire and cable products conduct electrical current for industrial and commercial power and control applications); energy (cables used for low-, medium- and high-voltage power distribution and power gimail ntransmission products); and communications (wire for low- voltage signals for voice, data, video, and control applications). Brand names include Carol and Brand Rex. It also produces power cables, automotive wire, mining cables, and custom-designed cables for medical equipment and other products. General Cable has locations in China, Australia, France, Brazil, the Dominican Republic and Spain. * * * In September 2007, Moody's Investors Service assigned a rating of B1 to the proposed US$400 million senior unsecured convertible notes of General Cable Corporation. PRC LLC: U.S. Trustee Appoints Seven-Member Creditors Committee --------------------------------------------------------------- Diana G. Adams, the U.S. Trustee for Region 2, appoints seven members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of PRC LLC and its debtor-affiliates. The Creditors Committee members are: 1. Verizon Communications Inc. Attention: William Vermette, Assistant General Counsel 1133 19th Street, Northwest Washington, DC 20026 Tel: (703) 886-3301 2. IAC/InterActiveCorp. Attention: Gregg Winarski, Associate General Counsel 555 West 18th Street New York, NY 10011 Tel: (212) 314-7376 3. iEnergizer (USA) Inc. Attention: Ashish Madan, Vice President 1120 Avenue of the Americas New York, NY 10036 Tel: (917) 642-4126 4. SER Solutions, Inc. Attention: Jamie Oliver 45925 Horseshoe Drive, Suite 150 Dulles, VA 20147 Tel: (703) 948-5645 5. TMP Worldwide Avertising & Communications, LLC Attention: Emerson Moore, General Counsel 205 Hudson Street, 5th Floor New York, NY 10013 Tel: (646) 613-2060 6. Excel Marketing Solutions, Inc. Attention: Lee Massie Gills, Executive Vice President 11441 Apple Valley Drive Frisco, TX 75034 Tel: (214) 705-9156 7. NICE Systems Inc. Attention: David Ottensoser, General Counsel 301 Route 17 North, 10th Floor Rutherford, NJ 07070 Tel: (201) 964-2772 About PRC LLC Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC -- http://www.prcnet.com/-- is a leading provider of customer management solutions. PRC markets its services to brand-focused, Fortune 500 U.S. corporations and delivers these services through a global network of call centers in the U.S., Philippines, India, and the Dominican Republic. PRC is the sole member of each of PRC B2B, LLC, and Precision Response of Pennsylvania, LLC, and the sole shareholder of Access Direct Telemarketing, Inc., each of which is a debtor and debtor- in-possession in PRC's joint Chapter 11 cases. Panther/DCP Intermediate Holdings, LLC, is the sole member of PRC. PRC, together with its operating subsidiaries PRC B2B, Access Direct, and PRC PA, is a leading provider of complex, consultative, outsourced services in the Customer Care and Sales & Marketing segments of the business process outsourcing industry. Since 1982, the company has acquired and grown customer relationships for some of the world's largest and most brand-focused corporations in the financial services, media, telecommunications, transportation, and retail industries. The company and four of its affiliates filed for Chapter 11 protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08- 10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. The Debtors chose Stephen Dube, at CXO LLC, as their restructuring and turnaround advisor. Additionally, Evercore Group LLC provides investment and financial counsel to the Debtors. The Debtors' consolidated financial condition as of Dec. 31, 2007 showed total assets of US$354,000,000 and total debts of US$261,000,000. (PRC LLC Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) PRC LLC: Wants to Hire Philip Goodeve as Chief Financial Officer ---------------------------------------------------------------- PRC, LLC, and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to employ H. Philip Goodeve as their chief financial officer as of Dec. 1, 2007. The Debtors selected Mr. Goodeve as their consultant because of his extensive experience in finance, strategy and management positions, according to PRC Chief Executive Officer Jerry McElhatton. He relates that in August 2007, Mr. Goodeve was initially retained as a consultant by Diamond Castle Holdings, LLC, the Debtors' equity sponsor with respect to the purchase of the Debtors from its previous owner. From Sept. 1, 2007, to the date of bankruptcy, Mr. Goodeve's services have consisted of serving as PRC's chief financial officer, thus gaining invaluable and extensive knowledge of the Debtors' business, financial affairs, and capital structure. Under the consulting agreement, Mr. Goodeve will receive US$75,000 in monthly fee, to be paid in bi-weekly installments. He is also entitled to a consummation fee for US$550,000 if the reorganization is confirmed within five months after the bankruptcy filing, and an additional US$300,000 if it is confirmed within one year. "If the restructuring is confirmed later than five months but earlier than one year after the Petition Date, the consummation fee will be prorated," Mr. McElhatton says. He adds that Mr. Goodeve will get US$300,000 if the reorganization is confirmed later than one year but earlier than 13 months, and will be reimbursed of any expenses incurred related to work undertaken. PRC has proposed that Mr. Goodeve should not be required from filing quarterly fee applications, pointing out that he is not being employed as a professional under Section 327 of the Bankruptcy Code. The company will require him, however, to (i) file reports of payment earned and expenses incurred on at least a quarterly basis, and (ii) provide notice to the United States Trustee and all official committees. Subject to Court approval, PRC agrees to indemnify Mr. Goodeve under the terms of its operating agreement and other liability insurance, which PRC has purchased for its officers and consultants. About PRC LLC Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC -- http://www.prcnet.com/-- is a leading provider of customer management solutions. PRC markets its services to brand-focused, Fortune 500 U.S. corporations and delivers these services through a global network of call centers in the U.S., Philippines, India, and the Dominican Republic. PRC is the sole member of each of PRC B2B, LLC, and Precision Response of Pennsylvania, LLC, and the sole shareholder of Access Direct Telemarketing, Inc., each of which is a debtor and debtor- in-possession in PRC's joint Chapter 11 cases. Panther/DCP Intermediate Holdings, LLC, is the sole member of PRC. PRC, together with its operating subsidiaries PRC B2B, Access Direct, and PRC PA, is a leading provider of complex, consultative, outsourced services in the Customer Care and Sales & Marketing segments of the business process outsourcing industry. Since 1982, the company has acquired and grown customer relationships for some of the world's largest and most brand-focused corporations in the financial services, media, telecommunications, transportation, and retail industries. The company and four of its affiliates filed for Chapter 11 protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08- 10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. The Debtors chose Stephen Dube, at CXO LLC, as their restructuring and turnaround advisor. Additionally, Evercore Group LLC provides investment and financial counsel to the Debtors. The Debtors' consolidated financial condition as of Dec. 31, 2007 showed total assets of US$354,000,000 and total debts of US$261,000,000. (PRC LLC Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) PRC LLC: Gets Court OK to Hire Epiq as Claims & Noticing Agent -------------------------------------------------------------- PRC LLC and its debtor-affiliates obtained authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Epiq Bankruptcy Solutions, LLC as their noticing agent, as of Jan. 18, 2008. The Debtors sought the services of Epiq as they expect more than 1,000 creditors to file proofs of claim in their Chapter 11 cases. The Debtors are concerned that noticing, docketing and maintaining the claims would be time-consuming and burdensome for the office of the clerk of the bankruptcy court. As noticing agent, Epiq is expected to: -- inform all potential creditors about the bankruptcy petition and the first meeting of creditors; -- maintain an official copy of the Debtors' schedules of assets and liabilities, and statements of financial affairs; -- notify potential creditors of the existence and amount of their claims as stated in the schedules of assets and liabilities, and statements of financial affairs; -- docket all claims received, maintain the official claims register for the Debtors on behalf of the office of the clerk, and provide the clerk with certified duplicate unofficial claims register on a monthly basis, unless otherwise directed; -- record all transfers of claims and provide notices of the transfers; -- make changes in the official claims register pursuant to Court order; and -- assist in the solicitation, calculation and distribution of votes required to further the confirmation of plans of reorganization. Epiq agreed to provide the services on these terms and conditions stated in their standard bankruptcy services agreement dated Jan. 18, 2008: (a) The Debtors should make monthly payments to Epiq. (b) Epiq reserves the right to reasonably increase its prices, charges and rates on January 2nd of each year. However, if the increases exceed 10%, Epiq will be required to give 60 days prior written notice to the Debtors. (c) The Debtors should pay Epiq all taxes, including sales, use and excise taxes, but not personal property or income taxes. (d) The Debtors should pay Epiq any actual charges as a result of the Debtors' error or omission. (e) In the event of termination due to the Debtors' default, the Debtors should be liable for all amounts then owing. The firm's hourly rates are: Clerk Rate Range Average Rate ----- ---------- ------------ Clerk US$40-US$60 US$50.00 Case Manager (Level 1) US$125-US$175 US$142.50 IT Programming Consultant US$140-190 US$165.00 Case Manager (Level 2) US$185-220 US$202.05 Senior Case Manager US$225-275 US$247.50 Senior Consultant To be determined To be determined Epiq also agreed that the level of Senior Consultant activity will vary by engagement. If certain services are required, the usual average rate is US$295 per hour. In connection with the engagement, no fees will be billed for creation of a Case Specific Website or for services rendered during the first six months of the case by Epiq's director of operations. Fees billed in connection with the preparation of schedules and statements of financial affairs will be billed hourly, subject to a cap on fees. Any additional professional services not covered by the proposal will be charged at hourly rates, including any outsourced data input services performed. Outside vendors may charge a premium for weekend and overtime work. Epiq will be indemnified and will not be held liable for any losses, damages, claims, among others, as a result of Epiq's rendering of services. Epiq Senior Vice-President and Director of Operations Daniel C. McElhinney assures the Court that Epiq is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b). About PRC LLC Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC -- http://www.prcnet.com/-- is a leading provider of customer management solutions. PRC markets its services to brand-focused, Fortune 500 U.S. corporations and delivers these services through a global network of call centers in the U.S., Philippines, India, and the Dominican Republic. PRC is the sole member of each of PRC B2B, LLC, and Precision Response of Pennsylvania, LLC, and the sole shareholder of Access Direct Telemarketing, Inc., each of which is a debtor and debtor- in-possession in PRC's joint Chapter 11 cases. Panther/DCP Intermediate Holdings, LLC, is the sole member of PRC. PRC, together with its operating subsidiaries PRC B2B, Access Direct, and PRC PA, is a leading provider of complex, consultative, outsourced services in the Customer Care and Sales & Marketing segments of the business process outsourcing industry. Since 1982, the company has acquired and grown customer relationships for some of the world's largest and most brand-focused corporations in the financial services, media, telecommunications, transportation, and retail industries. The company and four of its affiliates filed for Chapter 11 protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08- 10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. The Debtors chose Stephen Dube, at CXO LLC, as their restructuring and turnaround advisor. Additionally, Evercore Group LLC provides investment and financial counsel to the Debtors. The Debtors' consolidated financial condition as of Dec. 31, 2007 showed total assets of US$354,000,000 and total debts of US$261,000,000. (PRC LLC Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ================= G U A T E M A L A ================= TECO ENERGY: Net Profits in Guatemala Will be Lower in 2008 ----------------------------------------------------------- Teco Energy Inc.'s chief financial officer Gordon Gillette said in a Web cast that the company's net profits from Guatemala will be lower this year, compared to last year, Business News Americas reports. According to BNamericas, Teco Energy's net profits rose 18.9% to US$44.7 million in its Guatemala operations last year, compared to 2006, due to higher power sale volumes and prices. Mr. Gillette told BNamericas that Teco Energy's 2008 net profits from Guatemala would be below 2007 levels due to a US$1.9-million equity adjustment last year, higher scheduled maintenance in 2008 and lower spot market sales opportunities in Guatemala. BNamericas relates that Teco Energy's Guatemalan operations include: -- 120-megawatt coal-fired San Jose plant, -- 78-megawatt simple cycle Alborada plant, and -- a 24% interest in power utility Eegsa. Headquartered in Tampa, Florida, TECO Energy Inc. (NYSE:TE) -- http://www.tecoenergy.com/-- is an integrated energy-related holding company with regulated utility businesses, complemented by a family of unregulated businesses. Its principal subsidiary, Tampa Electric Company, is a regulated utility with both electric and gas divisions (Tampa Electric and Peoples Gas System). Other subsidiaries are engaged in waterborne transportation, coal and synthetic fuel production and electric generation and distribution in Guatemala. * * * On Oct. 30, 2007, Fitch Ratings assigned a BB+ long-term issuer default rating on Teco Energy Inc. Fitch placed the outlook on rating watch positive. TECO ENERGY: Joining Power Supply Tender in Guatemala ----------------------------------------------------- Teco Energy Inc.'s chief financial officer Gordon Gillette said in a web cast that the company will bid for the supply of at least 200 megawatts to Guatemalan distributors Deorsa and Deocsa, Business News Americas reports. BNamericas relates that Deorsa and Deocsa launched in November 2007 a tender for a 15-year power supply contract, which includes the construction of a coal-fired plant with 200 megawatts of minimum capacity. According to BNamericas, bids must be submitted by April 17, 2008. Bidders must: -- have built at least two thermoelectric plants, -- have assets of least US$1 billion, and -- have a minimum B corporate rating on Fitch's scale. BNamericas notes that the signing of the contract will be in May 2008. The winner would begin supplying power to Deorsa and Deocsa in 2012. Teco Energy would finance the project through non-recourse funding, BNamericas states, citing Mr. Gillette. Headquartered in Tampa, Florida, TECO Energy Inc. (NYSE:TE) -- http://www.tecoenergy.com/-- is an integrated energy-related holding company with regulated utility businesses, complemented by a family of unregulated businesses. Its principal subsidiary, Tampa Electric Company, is a regulated utility with both electric and gas divisions (Tampa Electric and Peoples Gas System). Other subsidiaries are engaged in waterborne transportation, coal and synthetic fuel production and electric generation and distribution in Guatemala. * * * On Oct. 30, 2007, Fitch Ratings assigned a BB+ long-term issuer default rating on Teco Energy Inc. Fitch placed the outlook on rating watch positive. =========== M E X I C O =========== BRISTOW GROUP: December 2007 Qtr. Net Income Up 91% to US$20.1MM ---------------------------------------------------------------- Bristow Group Inc. has reported financial results for its December 2007 quarter. Highlights include: For the quarter ended Dec. 31, 2007: -- Revenue of US$261.5 million increased by 24% over the December 2006 quarter. Revenue gains occurred primarily in the company's Europe, West Africa and Southeast Asia business units, driven by increases in rates for helicopter services, increased demand for helicopter services from existing customers and the addition of new aircraft. -- Operating income of US$36.7 million increased 82% from US$20.2 million in the December 2006 quarter, and operating margin increased to 14.1% versus 9.6% for the December 2006 quarter. The improvements were primarily the result of higher revenue and the inclusion in the December 2007 quarter of US$4.1 million of gains on disposal of assets compared to US$1 million for the December 2006 quarter. Additionally, operating income and margin were impacted by the items discussed below. -- Net income of US$20.1 million increased 91% from US$10.5 million for the December 2006 quarter. Net income for the December 2007 quarter includes the previously announced loss of US$6.2 million on the sale of the company's Grasso Production Management business in November 2007, which is presented as discontinued operations. -- Operating results for the December 2007 quarter included these items: -- An impairment charge of US$1.8 million related to inventory utilized on S-61 search and rescue configured aircraft. -- US$2.5 million of retroactive compensation cost increases recorded within the West Africa operations resulting from the completion of union negotiations. -- US$1.5 million of retroactive rate increases with a major customer in Nigeria. Excluding these items, operating income would have been US$39.5 million, operating margin would have been 15.1%, income from continuing operations would have been US$28 million and diluted EPS from continuing operations would have been US$0.92. For the nine months ended Dec. 31, 2007: -- Revenue of US$752.5 million increased 20% over the same period of fiscal year 2007 due to revenue gains in most business units, driven by increases in rates for helicopter services, increased demand for helicopter services from existing customers and the addition of new aircraft. -- Operating income of US$115.3 million increased 45% from US$79.4 million for the nine months ended Dec. 31, 2006, and operating margin increased to 15.3% versus 12.7% for the nine months ended Dec. 31, 2006. The improvements were primarily the result of the improvement in rates. Additionally, operating income and margin were impacted by the items discussed below. -- Net income of US$76.8 million increased 64% from US$46.8 million for the nine months ended Dec. 31, 2006. Net income for the nine months ended Dec. 31, 2007, includes the previously announced loss of US$6.2 million on the sale of the Grasso business in November 2007, which is presented as discontinued operations. -- Operating results for the nine months ended Dec. 31, 2007, included these items: -- An impairment charge of US$1.8 million related to inventory utilized on S-61 search and rescue configured aircraft. -- Reversal of US$1 million of previously accrued SEC settlement costs. -- Reversal of a US$5.4 million accrual for sales tax contingency in Nigeria. Excluding these items, operating income would have been US$110.7 million, operating margin would have been 14.7%, income from continuing operations would have been US$78.5 million and diluted EPS from continuing operations would have been US$2.58. Capital and Liquidity: -- The Dec. 31, 2007 consolidated balance sheet reflected US$959.3 million in stockholders' investment and US$607.8 million of indebtedness. -- Bristow Group had US$315.3 million in cash and an undrawn US$100 million revolving credit facility. -- The group generated US$57.8 million of cash from operating activities, US$344.8 million in net proceeds from the issuance of 7 1/2% senior notes, US$23 million of cash from asset dispositions and US$22.0 million in net cash from the sale of Grasso during the nine months ended Dec. 31, 2007. -- The company used US$288.8 million for capital expenditures, primarily for aircraft, and US$14.6 million for the acquisitions of Bristow Academy and Vortex during the nine months ended Dec. 31, 2007. -- Aircraft purchase commitments totaled US$344.7 million for 28 aircraft, with options totaling US$472.6 million for 34 aircraft as of Dec. 31, 2007. Bristow Group Inc. President and Chief Executive Officer, William E. Chiles said, "We remain very pleased with our operational and financial performance. The delivery of new aircraft as well as rate increases in several operating regions produced strong revenues and earnings performance in the December quarter. We renegotiated and extended the last of our major contracts in Nigeria at significantly better rates during the quarter, which should result in improved operating margins for our West Africa business unit and move us closer to meeting our return oncapital goal for this region. We also saw improved rates from the North Sea." "We continued to invest in our fleet with the exercise of options on eight additional aircraft, including five large- and three medium-sized helicopters from Sikorsky and Eurocopter." Mr. Chiles added. Mr. Chiles concluded, "During the quarter we also completed the sale of our Grasso Production Management business, which makes Bristow Group a pure play in helicopter transportation services principally to the offshore energy industry." About Bristow Group Headquartered in Houston, Texas, Bristow Group Inc. (NYSE:BRS) -- http://www.bristowgroup.com/-- fka Offshore Logistics Inc., provides helicopter transportation services to the worldwide offshore oil and gas industry with operations in the United States Gulf of Mexico and the North Sea. The company also has operations, both directly and indirectly, in offshore oil and gas producing regions of the world, including Alaska, Australia, Mexico, Nigeria, Russia and Trinidad. The company also provides production management services for oil and gas production facilities in the United States Gulf of Mexico. * * * Standard & Poor's Ratings Services placed Bristow Group Inc.'s long term corporate family and senior unsecured debt ratings at 'Ba2' in January 2006. The ratings still hold to date with a negative outlook. CALPINE CORP: Closes Blue Spruce's US$90-Mln Loan Refinancing ------------------------------------------------------------- Calpine Corporation's indirect subsidiary, Blue Spruce Energy Center LLC, has received funding for its US$90 million senior term loan refinancing, maturing Dec. 31, 2017. Joint Lead Arrangers Co-Bank, ACB and Siemens Financial Services, Inc. underwrote the project finance facility, and Co-Bank will serve as administrative agent. Net proceeds from the senior term loan will be used to refinance all outstanding indebtedness under the existing Blue Spruce term loan facility, to pay fees and expenses related to the transaction and for general corporate purposes. This financing extends the tenor of the previous loan and is at a significantly lower interest rate. The benefits of the additional liquidity and lower interest expense flow through to Calpine. Calpine and its affiliates will not be responsible for the debts or other obligations of Blue Spruce. Blue Spruce LLC owns the Blue Spruce Energy Center in Aurora, Colorado, and is a stand-alone, indirect subsidiary of Calpine. Blue Spruce Energy Center currently operates under a 10-year power contract with Public Service Company of Colorado for up to 310 megawatts of the power plant's full capacity and related energy and ancillary services. Power deliveries commenced in mid-2003 and extend through April 2013. About Calpine Headquartered in San Jose, California and founded in 1984, Calpine Corporation -- http://www.calpine.com/-- is a major U.S. power company, currently capable of delivering nearly 24,000 megawatts of clean, cost-effective, eliable, and fuel-efficient electricity to customers and communities in 18 states in the United States. The company owns, leases, and operates low-carbon, natural gas- fired, and renewable geothermal power plants. The company filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. As of Dec. 19, 2005, the Debtors listed US$26,628,755,663 in total assets and US$22,535,577,121 in total liabilities. Calpine Corp.'s foreign non-debtor affiliate agreed to sell its 45% interest in the 525-megawatt Valladolid III Power Plant, currently under construction on the Yucatan Peninsula in Mexico. Calpine is selling its equity interest to the two remaining partners in the project, Mitsui & Co., Ltd. and Chubu Electric Power Co., Inc., for a purchase price of approximately US$43 million. CALPINE CORP: S&P Assigns 'B' Corporate Rating on Chapter 11 Exit ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to San Jose, California-headquartered power company Calpine Corp. following the company's emergence from bankruptcy Chapter 11 filing on Jan. 31, 2008. The outlook is stable. Standard & Poor's also assigned its 'B+' rating (one notch higher than the corporate credit rating) and '2' recovery rating to Calpine's $7.3 billion senior secured facility, indicating the expectation of substantial recovery (70%-90%) in event of a payment default. This facility consists of a $6.0 billion term loan, a $300 million bridge loan, and a $1 billion revolving credit facility. Calpine's 'B' corporate credit rating reflects these weaknesses: -- Calpine is highly levered and its cash flows remain extremely vulnerable to gas price volatility. -- Ongoing cash collateral requirements could hinder Calpine's ability to expand, and impair its business strategy if liquidity becomes an issue. -- Other regions of the country, especially the Southeast, continue to have substantial surplus capacity, and consequently, poor cash flow prospects. -- Entry of substantial base load generation, especially in Texas, could hurt dispatch profile and gross margins. -- High hydro conditions will likely lead to lower power prices in California. These are the offsetting strengths: -- Calpine owns 7% of the capacity in California and nearly 10% of the capacity in the Electric Reliability Council of Texas -two heavily gas-driven markets that are expected to remain so. -- Calpine's fleet is new, has heat rates of about 7,000 BTU per kilowatt-hour (BTU/kWh), and will be among the first gas-fired plants to dispatch in any region. Accordingly, it has strong operating characteristics. -- Improving merchant market fundamentals in many regions of the country and difficulty in permitting new coal plants augur well for cash flow over the next few years. -- Regional capacity markets, such as the ones in the New England Power Pool and the Pennsylvania New Jersey Maryland Interconnection, may provide additional revenue stability. -- Potential carbon legislation could significantly aid clean gas-fired capacity such as owned by Calpine. -- A hedging program that seeks to contract a high proportion of its margins over the upcoming two years will provide for some cash flow stability. Headquartered in San Jose, California, Calpine Corporation -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The Company filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. As of Dec. 19, 2005, the Debtors listed US$26,628,755,663 in total assets and US$22,535,577,121 in total liabilities. Calpine Corporation's foreign non-debtor affiliate agreed to sell its 45% interest in the 525-megawatt Valladolid III Power Plant, currently under construction on the Yucatan Peninsula in Mexico. Calpine is selling its equity interest to the two remaining partners in the project, Mitsui & Co., Ltd. and Chubu Electric Power Co., Inc., for a purchase price of approximately US$43 million. DESARROLLODORA HOMEX: Main Shareholders Acquire 5.1% More Shares ---------------------------------------------------------------- Desarrolladora Homex, S.A.B de C.V. main shareholders, the de Nicolas family, led by the Board of Directors Chairperson, Eustaquio de Nicolas Gutierrez, has acquired 17,142,857 common shares of Homex (representing 5.1% of the company) from EIP Investment Holdings L.L.C., COMM V.A. in a private transaction. Through this purchase, the de Nicolas family now holds, directly or indirectly, 40.0% of Homex's capital. After the sale, EIP Investment continues to hold approximately 3.4% of the company's common stock and the public float remains above 56.6%. Homex Chairperson of the Board, Mr. Eustaquio de Nicolas noted, "It pleases us that we are able to express our confidence in the Mexican housing market in this way, as well as our confidence in the continued prosperity of Homex and its ability to provide significant value creation for all our shareholders at the same time. We reiterate our commitment to Homex, which we continue to believe is uniquely positioned to take full advantage of future opportunities in the Mexican housing industry to benefit home buyers, our employees and stockholders." "EIP has been a significant private investor for Homex since 2002 and a strategic partner for the company who has added value to all our shareholders. The private equity fund team led by Gary Garrabrant was also instrumental during our U.S. IPO and attracted important awareness of Homex and its prospects among a key cadre of institutional investors. We appreciate their interest and support," Mr. de Nicolas concluded. About Homex Desarrolladora Homex (NYSE: HXM, BMV: HOMEX) -- http://www.homex.com.mx-- is a vertically integrated home development company focused on affordable entry-level and middle- income housing in Mexico. It is one of the most geographically diverse homebuilders in the country. Homex is the largest homebuilder in Mexico, based on revenues, number of homes sold and net income. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 19, 2007, Moody's affirmed Desarrolladora Homex's national scale issuer rating at A3.mx, and global scale local currency issuer rating at Ba3. Moody's said the rating outlook remains positive. GMAC LLC: Moody's Drops Senior Unsecured Rating to B1 from Ba3 -------------------------------------------------------------- Moody's Investors Service has downgraded the senior unsecured rating of GMAC LLC to B1 from Ba3. Separately, the senior unsecured rating of Residential Capital LLC was downgraded to B2 from Ba3. The rating outlook for both firms is negative. The GMAC rating action is a result of Moody's downgrade of Residential Capital's ratings. Since Dec. 21, 2007, the ratings of GMAC and ResCap had been aligned at Ba3, reflecting Moody's view that GMAC would likely provide support to ResCap and that such support could compromise GMAC's stand-alone (ex-ResCap) credit profile. During the fourth quarter of 2007, GMAC did in fact provide support to ResCap, by acquiring its debt at a cost of approximately US$740 million, representing a substantial discount to par, and thereafter contributing the debt to ResCap. Upon retiring the debt, ResCap recognized a US$1.1 billion capital benefit that helped it avoid breaching its minimum tangible net worth financial covenant. In Moody's view, GMAC's willingness to use its cash and capital for this purpose diluted its own liquidity and capital positions. GMAC's rating downgrade contemplates that the firm will likely continue to provide capital support to ResCap in the near term, primarily through similar open-market debt repurchases. Moody's has come to believe, however, that GMAC may have a limited tolerance for supporting ResCap if its performance and condition fail to meet management expectations for improvement during the first half of 2008. GMAC's further support of ResCap could result in additional strains on its capital and liquidity positions. In relation to this, creditors' appetite to extend credit to GMAC beyond current commitments could be affected by GMAC's continued willingness to provide support to ResCap. "Given GMAC's strategic importance to GM, we think that GMAC's owners will not risk the firm's viability in its efforts to stabilize ResCap," said Moody's analyst Mark Wasden. "GMAC's B1 rating incorporates our expectation of the level of capital that GMAC could be required to provide to ResCap during the first two quarters of 2008, while ResCap confronts its operational issues. Beyond this horizon, we believe further support from GMAC to be less certain, as continued underperformance on the part of ResCap could signal a failure of the firm to regain solid footing" Mr. Wasden added. This perspective results in GMAC's B1 rating being positioned one-notch above ResCap's B2 rating. The negative rating outlook assigned to GMAC's rating incorporates the continuing uncertainty regarding the extent and nature of the support GMAC may provide to ResCap. The negative outlook also reflects other pressures on GMAC's stand-alone profile arising from its association with ResCap, including higher borrowing costs and potential constraints to its access to critical funding support. GMAC is also beginning to contend with deteriorating asset quality measures, brought about by a less conducive credit environment that could also have a deleterious effect on its access to funding and its profitability. Key strengths continue to be its valuable auto finance origination and servicing franchise, its position of strength in terms of its financing share of General Motors Corp. auto sales, and its diligent liquidity and credit risk management practices. Absent the ResCap related stresses, GMAC's stand-alone profile could warrant a slightly higher rating profile. A significant constraint to higher ratings, again setting ResCap aside, is the firm's high stand-alone leverage and its continuing business risk concentrations with lower-rated GM(CFR at B3). Based in Detroit, GMAC LLC -- http://www.gmacfs.com/-- (formerly General Motors Acceptance Corporation) is a provider of retail and wholesale auto financing, auto insurance and warranty products, and through its wholly-owned subsidiary Residential Capital LLC, residential mortgage products and services. GMAC was established in 1919 and currently employs about 31,000 people worldwide. Its Latin American operations are located in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela. GMAC reported a preliminary 2007 fourth quarter consolidated net loss of US$724 million. GREENBRIER COS: Analysts Upgrade Firm's Shares To Outperform ------------------------------------------------------------ Morgan Keegan analysts have upgraded Greenbrier Companies Inc's shares to "outperform" from "market perform," Newratings.com reports. According to Newratings.com, Morgan Keegan said in a research note that there is a high possibility of Greenbrier being purchased at a price significantly higher than its current share price. Morgan Keegan told Newratings.com that Carl Ichan raised his stake in Greenbrier to about 10%, and he may completely acquire the firm. Meanwhile, Bear Stearns analysts have upgraded Greenbrier's shares to "outperform" from "peer perform," Newratings.com states. Headquartered in Lake Oswego, Oregon, Greenbrier (NYSE: GBX) - http://www.gbrx.com/-- is a supplier of transportation equipment and services to the railroad industry. The company builds new railroad freight cars in its three manufacturing facilities in the U.S. and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 35 locations across North America. Greenbrier also builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 9,000 railcars, and performs management services for approximately 138,000 railcars. * * * The Greenbrier Cos. Inc. continues to carry Moody's Investors Service's 'B1' long-term corporate family rating, which was placed in March 2007. HARMAN INT'L: Reports US$43-Mln Net Income in Qtr. Ended Dec. 31 ---------------------------------------------------------------- Harman International Industries Incorporated earned US$43 million for the second quarter ending Dec. 31, 2007, compared to US$81 million of net income for the same quarter of 2006. Net sales for the quarter were US$1.066 billion, a 14.4 percent increase compared to US$932 million for the same period last year. "Although we continue to increase sales across all divisions, our automotive earnings are under pressure due to portable navigation devices (PND), product mix, and higher engineering and material costs during a period of record launch activity," said Dinesh Paliwal, Harman's Chief Executive Officer. "We are accelerating a number of strategic actions to improve our cost structure and optimize our global footprint in the automotive sector, while flattening our broader organization to instill a strong culture of execution." Summary Of Operations Net sales continued to grow across all three divisions. The growth in overall net sales was primarily due to increased shipments of infotainment systems to automotive customers and higher sales of consumer and professional products to major distributors. Gross profit, as a percentage of net sales, decreased 6.0 percentage points to 28.3 percent for the quarter ending Dec. 31, 2007. The gross margin decline was primarily in the Automotive division which experienced lower margins on PND products, product mix change, including higher sales of lower- margin infotainment systems for mid-level vehicles, and higher than expected material costs. Selling, general and administrative (SG&A) expenses were US$240 million for the quarter, an increase of US$36 million from the second quarter of fiscal 2007. SG&A expenses in the quarter include US$9 million of merger-related costs. SG&A was also impacted by higher engineering costs and foreign currency translation. Operating income for the quarter ending December 31, 2007 was US$61 million, or 5.7 percent of sales, compared to US$116 million, or 12.4 percent of sales, in the same period last year. The decrease in operating income was driven by PND, product mix, and higher engineering, material and merger costs. The effective tax rate for the second quarter fiscal 2008 was 25.6 percent compared to 29.5 percent during the same period last year. The lower effective tax rate was a result of the termination of the merger agreement in the second quarter, which allowed merger costs to be tax deductible, and lower corporate tax rates in Germany. Foreign currency translation positively impacted quarterly results as the Euro strengthened approximately 12 percent compared to the same quarter last year. The Euro averaged US$1.45 in the second quarter compared to US$1.29 in the same period last year. As a result, foreign currency translation improved sales by approximately US$75 million and contributed US$0.15 to earnings per diluted share in the quarter. Strategic Appointments Harman's Board of Directors has been expanded to eight members, bringing new expertise and global range. Brian Carroll has joined from KKR, bringing strong financial expertise. Dr. Harald Einsmann, a German national who has worked with such industry leaders as Procter & Gamble, the Wallenberg Group, and the Carlson Group, brings international business experience. Gary Steel, a Scottish national with experience from Europe's Shell and ABB Groups, adds deep expertise in human resources, restructuring, and corporate governance. The company has also announced several significant additions to its senior management team in recent weeks: * Richard Sorota, an experienced executive with premium consumer brand companies, Procter & Gamble and Royal Phillips, has joined the Company as Consumer Division President. * John Stacey, with 20 years of experience in employee and organizational development across the Americas and Europe, is joining Harman as Vice President of Human Resources. * Robert Lardon has joined the Company as Vice President, Strategy and Investor Relations. In addition to his experience as a management consultant at PwC, Accenture, and Booz Allen, Mr. Lardon was Chief Strategy Officer at Porter Novelli, a global Top 10 communications agency. * Kent Moerk, a Danish national, has been appointed to manage the newly established global PND business unit which will integrate the company's two lines of portable navigation devices. * Dr. Wolfgang Ptacek, who has held senior management positions at T-Mobile and Bosch, has been appointed Chief Technology Officer for Harman automotive operations worldwide. * Bronson Reed, an experienced international finance executive at ABB, joined the Company as Vice President, Group Controller. In order to strengthen the leadership and to improve common processes across multiple Harman businesses, the Company has created the new position of Country Manager in the United States and Japan, and will extend this concept shortly to Germany, China, India, and Russia. Blake Augsburger, who leads the global Professional division, has taken this additional role in the US. Ken Yasuda, President of Harman Consumer Japan, assumes the additional group-wide country role in Japan. These individuals will serve as country champion for functional best practices, and will directly participate in such business activities as project risk reviews, large supply or investment proposals, restructurings, and key human resource decisions. Strategic Initiatives During the fiscal second quarter, the company initiated an extensive review of its global footprint and launched a number of key initiatives to improve simplicity and cost. In the third quarter, restructuring of the Company's automotive footprint was accelerated with the decision to close plants in Northridge, California and Martinsville, Indiana. Also during the third quarter, the Company decided to shut down two smaller facilities in Massachusetts serving the Consumer division. These operations will be integrated with other Harman facilities in California and New York. Consolidations of additional Harman manufacturing and engineering facilities in Europe and Africa are under review. These actions are expected to result in restructuring charges of US$25 to US$30 million in the third quarter and US$5 to US$10 million in the fourth quarter of fiscal 2008. About 1400 jobs will be affected, of which 500 jobs will be eliminated and the balance transferred to other Harman facilities in the United States, Germany, China, and Mexico. The company has added several hundred new jobs at its plants in Mexico and China and extensive job training is now being completed. The company has also decided to add capacity to its plant in Hungary in order to expand production of audio electronics and speakers. The company is in the final stage of completing its plan to outsource its information technology infrastructure. This step will blend an outside service provider's solutions expertise with emerging-country resources to bring us significant gains in both agility and cost. This initiative will also help us take a closer look at alternative resources for project-related software, systems and costs. In the third quarter, the company also decided to consolidate resources from Washington, DC and Northridge, California to its new corporate headquarters in Stamford, Connecticut. This will accelerate the speed of decision making and improve coordination across key company functions. Outlook The company expected continued growth in sales across its three divisions, although the economic slowdown may affect some of this growth. Fiscal 2008 performance will be adversely affected by lower PND margins, product mix, and higher engineering and material costs due to several new infotainment platform launches. "We expect the remainder of 2008 and 2009 to be difficult as we complete the launch of a record number of infotainment platforms and face continued pricing pressures," said Dinesh Paliwal. "Management is responding aggressively to address these issues with a company-wide restructuring program to improve productivity and cost structure across manufacturing, engineering, and sourcing." Headquartered in Washington, D.C., Harman International Industries Inc. (NYSE: HAR) -- http://www.harman.com/-- makes audio systems through auto manufacturers, including DaimlerChrysler, Toyota/Lexus, and General Motors. Also the company makes audio equipment, like studio monitors, amplifiers, microphones, and mixing consoles for recording studios, cinemas, touring performers, and others. Harman Int'l has operations in Japan, Mexico and France. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 26, 2007, Standard & Poor's Ratings Services revised its CreditWatch implications for the 'BB-' corporate credit rating on Harman International Industries Inc. to positive from developing. KRONOS INC: Paul Lacy to Quit as President ------------------------------------------ Kronos(R) Incorporated disclosed that its president, Paul Lacy, plans to retire from the company. During his 20-year tenure, Kronos grew from a small, US$26 million hardware company to a US$662 million global enterprise software company. An active national search is already underway for Mr. Lacy's replacement. Kronos anticipates that the transition will be completed no later than June 2008. "It is hard to put into words what Paul Lacy has meant to our company," said Aron Ain, Kronos chief executive officer. "Paul embodies everything that makes Kronos a great place to work. His deep knowledge of all aspects of our business, as well as his steady leadership, clear vision, and uncompromising integrity, have been tremendous assets to Kronos. We will miss Paul both professionally and personally, and are grateful for all that he has done for Kronos. We wish him happiness as he moves into a new phase of his life." Mr. Lacy joined Kronos in 1988 and has served as president since 2005, previously serving as executive vice president and chief financial and administrative officer for the company. During his tenure, Mr. Lacy helped Kronos become one of the world's most consistently performing enterprise software companies. He led the company's Initial Public Offering in 1992, and selected and integrated 60 company and product acquisitions in North America and in other parts of the world. "It has been a distinct privilege to be part of Kronos' evolution to one of the most respected and successful companies in the technology industry," said Mr. Lacy. "Kronos has provided me with a wide range of opportunities and professional experiences, culminating with taking the company private after 15 years as a public company. I will forever be grateful to my friends and colleagues at Kronos for making my two decades with this great company the most fulfilling period of my professional career. I am confident that the skilled and compassionate leadership at Kronos will guide the company through many more years of growth and success." Headquartered in Chelmsford, Mass., Kronos Inc. -- http://www.kronos.com/-- provides a suite of solutions that automate employee-centric processes, as well as tools to optimize the workforce. It provides workforce management software, including time and attendance software and talent management (recruiting) software. The company offers its products primarily in the United States, Canada, Mexico, the United Kingdom, Australia, and New Zealand. The company posted about US$617 million of revenues for the twelve months ended March 31, 2007. * * * As reported in the Troubled Company Reporter-Latin America on May 18, 2007, Moody's Investors Service assigned Kronos Inc. a first time B2 corporate family rating and a stable rating outlook. LIBBEY INC: Paying US$0.025 Per Share Cash Dividend on March 4 -------------------------------------------------------------- Libbey Inc. Board of Directors has declared the company's quarterly cash dividend of US$0.025 per share. The dividend will be paid on March 4, 2008, to shareholders of record as of Feb. 19, 2008. As of Feb. 4, 2008, the company had 14,564,556 shares outstanding. Based in Toledo, Ohio, Libbey Inc. -- http://www.libbey.com/-- operates glass tableware manufacturing plants in the United States in Louisiana and Ohio, as well as in Mexico, China, Portugal and the Netherlands. Its Crisa subsidiary, located in Monterrey, Mexico, is the leading producer of glass tableware in Mexico and Latin America. Its Royal Leerdam subsidiary, located in Leerdam, Netherlands, is among the world leaders in producing and selling glass stemware to retail, foodservice and industrial clients. Its Crisal subsidiary, located in Portugal, provides an expanded presence in Europe. Its Syracuse China subsidiary designs, manufactures and distributes an extensive line of high- quality ceramic dinnerware, principally for foodservice establishments in the United States. Its World Tableware subsidiary imports and sells a full-line of metal flatware and holloware and an assortment of ceramic dinnerware and other tabletop items principally for foodservice establishments in the United States. Its Traex subsidiary, located in Wisconsin, designs, manufactures and distributes an extensive line of plastic items for the foodservice industry. In 2006, Libbey Inc.'s net sales totaled US$689.5 million. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 3, 2006, In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the U.S. Consumer Products sector, the rating agency confirmed its B2 Corporate Family Rating for Libbey Glass Inc., and its B2 rating on the company's US$306 million senior secured notes due 2011. Additionally, Moody's assigned an LGD3 rating to the notes, suggesting noteholders will experience a 49% loss in the event of a default. MOVIE GALLERY: Court Okays CIO Seth Levy's Employment Terms ----------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Virginia approved the employment agreement that Movie Gallery Inc. and its debtor-affiliates entered into with Seth Levy as chief information officer. Pursuant to the employment agreement, Seth Levy is expected to manage their operations with respect to information technology. The employment agreement will become effective and will continue for 12 months with annual one-year extensions. Peter J. Barrett, Esq., at Kutak Rock LLP, in Richmond, Virginia, said the Debtors' chief information officer resigned in April 2007, and was replaced by John Rossman from Alvarez & Marsal Business Consulting, LLC, on an interim basis. Mr. Rossman, however, resigned in October 2007. The Debtors determined that Mr. Levy's extensive experience in managing information technology projects for large retail companies qualifies him to manage the Debtors' related operations. Notably, Mr. Levy served as senior vice president for Logistics, chief information officer for Electronic Boutique Holdings, president of EB Games Online, and director for Systems and Programming in May Department Stores Company, Mr. Barrett disclosed. Under the agreement, Mr. Levy will receive an annual salary of US$325,000, and a sign-on bonus of US$75,000. Additionally, Mr. Levy will be entitled to participate in Movie Gallery, Inc.'s executive officer bonus program and other incentives, cash and equity compensation plans as determined by the Board of Directors. In the event that Mr. Levy is terminated, he agrees not to compete with the Debtors for a period of one year from his termination. The Debtors and Mr. Levy also agreed, notwithstanding anything to the contrary in the Agreement, that Mr. Levy is not entitled to the severance benefits upon his termination. About Movie Gallery Based in Dothan, Alabama, Movie Gallery Inc. -- http://www.moviegallery.com/-- is a home entertainment specialty retailer. The company owns and operates 4,600 retail stores that rent and sell DVDs, videocassettes and video games. It operates over 4,600 stores in the United States, Canada, and Mexico under the Movie Gallery, Hollywood Entertainment, Game Crazy, and VHQ banners. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq., at Kutak Rock LLP, is the Debtors' local counsel. The Debtors' claims & balloting agent is Kutzman Carson Consultants LLC. When the Debtors' filed for protection from their creditors, they listed total assets of US$891,993,000 and total liabilities of US$1,419,215,000. The Official Committee of Unsecured Creditors has selected Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B. Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl & Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at Miles & Stockbridge PC, as its local counsel. The Debtors' spokeswoman Meaghan Repko said that the company does not expect to exit bankruptcy protection before the second quarter of 2008. The Debtors have until June 13, 2008 to file their plan of reorganization. (Movie Gallery Bankruptcy News Issue No. 17; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) MOVIE GALLERY: Wants Court Nod on Second Amended DIP Credit Pact ---------------------------------------------------------------- Movie Gallery, Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Virginia to approve a second amendment to their Secured Senior-Priority Debtor-In- Possession Credit and Guaranty Agreement with Goldman Sachs Credit Partners L.P., as syndication agent and documentation agent, and The Bank of New York, as administrative agent and collateral agent. The Debtors' Second DIP Amendment provides them with increased flexibility to manage their Chapter 11 operations and to facilitate the implementation of their Plan of Reorganization, Ronald A. Page, Jr., Esq., at Kutak Rock LLP, in Richmond, Virginia, says. Specifically, Mr. Page discloses, the Second Amended DIP Credit Agreement modifies the definition of "Consolidated Adjusted EBITDA" to appropriately address changes to estimates of rental inventory salvage value. Mr. Page states that the Second Amendment relaxes certain financial covenants relating to the adjusted EBITDA, available liquidity, and secured leverage ratios for fiscal month-end periods ending January 6, February 10, March 9, April 6, May 11 and June 8, 2008. In addition, the Second Amendment modifies the interest rate to be paid for obligations under the DIP Credit Agreement, effective on the date during which Requisite Lenders return signature pages evidencing their approval. Pursuant to Section 363(b) of the Bankruptcy Code, the Second Amendment is conditioned on the Debtors' payment of an amendment fee "equal to (a) 0.25% multiplied by (b) the aggregate Revolving Exposure plus Term Loan Exposure of each Lender." The Debtors will also pay Goldman Sachs and the DIP Agents for all their out- of-pocket expenses incurred during the negotiations and preparation of the DIP Credit Agreement's second amendment, Mr. Page tells Judge Douglas O. Tice, Jr. Mr. Page submits that the payment of amendment fees and expenses is "prudent and necessary to receive the benefits of the Second Amendment", and is consistent with market rates. A full-text copy of the Second Amended DIP Credit Agreement is available for free at http://researcharchives.com/t/s?27c2 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. 17; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) MOVIE GALLERY: Judge Tice Okays 1st Amended Disclosure Statement ---------------------------------------------------------------- The Honorable Douglas O. Tice of the U.S. Bankruptcy Court for the Eastern District of Virginia approved a first amended disclosure statement explaining Movie Gallery, Inc. and its debtor- affiliates' First Amended Joint Plan of Reorganization, at a hearing held Feb. 5, 2008. Judge Tice held that the First Amended Disclosure Statement contains adequate information that would enable creditors to make an informed decision on whether to accept or reject the Plan. All objections that have not been withdrawn, sustained or settled are overruled. The Debtors' Plan will come before the Court for confirmation at a hearing on April 9, 2008, at 2:00 p.m., Eastern Standard Time. Parties have until March 24 to file objections to the Plan. The Debtors filed the First Amended Disclosure Statement and Plan on Feb. 4, 2008, to incorporate, among others (i) the key creditor groups' agreement to support the Plan; (ii) a revision to the treatment of claims to include creditors' projected recoveries; (iii) a recovery analysis; and (iv) financial projections. The Plan Support Agreement has been signed by: (1) more than 40 different lenders collectively holding more than two-thirds of the debt under the Movie Gallery's first lien credit facilities; (2) approximately five lenders collectively holding more that half of the debt under Movie Gallery's second lien credit agreement; and (3) Sopris Capital Advisors LLC, in its capacity as a Second Lien Lender, holder of a majority of the debt under Movie Gallery's 11% senior notes. Additionally, Sopris has committed to backstop a $50,000,000 rights offering under the Plan, and has placed $50,000,000 into escrow in support of its backstop commitment. The Amended Plan contemplates these restructuring transactions: * the Debtors will enter into the Amended and Restated First Lien Credit Agreement; * the Debtors will enter into the Amended and Restated Second Lien Credit Agreement; * Sopris will convert approximately $72 million plus accrued interest thereon, in Second Lien Claims into equity in the Reorganized Debtors; * the Debtors' outstanding $325 million 11% Senior Notes plus accrued interest, including approximately $174 million held by Sopris, will be converted into equity in the Reorganized Debtors; * the $50 million Rights Offering of additional New Common Stock is to be made available to eligible Holders of the 11% Senior Notes, which Rights Offering is to be fully backstopped by Sopris; * the Debtors' General Unsecured Claims and remaining 9.625% Senior Subordinated Notes will be converted into equity in the Reorganized Debtors subject to the Holder's right to elect, as an alternative, a limited cash-out option as set forth in the Plan; and * the Reorganized Debtors will enter into an exit financing facility. The Debtors have not yet secured the Exit Facility. Treatment & Recovery of Claims Under Plan The Projected Recovery for each class of claim and interest under the the Amended Plan are: Class Description Recovery ----- ----------- -------- 1 Other Priority Claims 100% 2 Other Secured Claims 100% 3 First Lien Claims 100% 4 Second Lien Claims 100% 5 Studio Claims Impaired 100% 6 11% Senior Note Claims 22.1% 7A General Unsecured Claims against Movie Gallery, Inc. 5.964% 7B General Unsecured Claims against Movie Gallery US, LLC 13.613% 7C General Unsecured Claims against M.G.A. Realty I, LLC 3.333% 7D General Unsecured Claims against M.G. Digital, LLC 0.702% 7E General Unsecured Claims and 9.625% Senior Subordinated Note Claims against Hollywood Entertainment Corporation 12.527% 7F General Unsecured Claims against MG Automation LLC 3.333% 8 Equity Interests in Movie Gallery, Inc. 0% 9 Intercompany Interests 0% Class 9 is impaired and is deemed to reject the Plan. Accordingly, the Debtors are soliciting votes to accept or reject the Plan from Holders of Claims in Classes 3, 4, 5, 6, 7A, 7B, 7C, 7D, 7E and 7F. The Debtors are not seeking votes from the Holders of Claims in Classes 1, 2, 8 and 9. Sopris holds (i) $174,000,000 in principal amount of 11% Senior Notes or 54% of the aggregate amount outstanding under the 11% Senior Notes; (ii) $72,000,000 in Second Lien Claims or 41% of the aggregate amount outstanding under the Second Lien Credit Agreement; and (iii) a small percentage of the First Lien Claims. Pursuant to the Plan, Sopris will receive about 41% of the Unsecured Claim Equity Allocation; the Sopris Second Lien Equity Allocation; at least 50% and as much as 100% of the Rights Offering Equity Allocation; the Rights Offering Commitment Fee payable in new common stock; and up to an additional 25% of the Unsecured Claim Equity Allocation. The Debtors estimate that as of the effective date of the Plan, Sopris will hold between 64% and 85% of the new common stock, subject to dilution by future stock issuances, including the issuance of equity, restricted stock or options under the Management and Director Equity Incentive Program, and by the possible exercise of the Warrants. The Plan provides holders of allowed claims under Classes 6, 7A, 7B and 7E, collectively, to receive an allocated portion of the new common stock, the warrants to be issued under the Plan, and the net proceeds realized by the Litigation Trust, except to the extent that the holders make a cash-out election. Sopris has agreed to provide up to $10,000,000 to fund an alternate recovery in cash to holders of allowed general unsecured claims in Classes 7A, 7B and 7E in lieu of the new common stock. The "cash-out" option will be capped at no more than 50% of the value ascribed by the Plan to the new common stock that a creditor would be entitled to receive on account of an allowed claim. The "warrants" will give holders of claims under Classes 6, 7A, 7B and 7E the right to purchase, in the aggregate, 5% of the fully-diluted new common stock at an exercise price equal to 200% of the Rights Offering Exercise Price, with a term of seven years. Appointment of Litigation Trustee On the Plan Effective Date, and in compliance with the provisions of the Plan and the Litigation Trust Agreement, William Kaye, the chairman of the Committee, will be appointed Litigation Trustee in accordance with the Litigation Trust Agreement. Feasibility Section 1129(a)(11) of the U.S. Bankruptcy Code requires that the Court find that Confirmation is not likely to be followed by the debtor's liquidation of the Reorganized Debtors or the need for further financial reorganization, unless the Plan contemplates such liquidation. For purposes of demonstrating that the Plan meets this "feasibility" standard, the Debtors have analyzed the ability of the Reorganized Debtors to meet their obligations under the Plan and to retain sufficient liquidity and capital resources to conduct their businesses. The Debtors believe that the Plan meets the feasibility requirement set forth in Section 1129(a)(11) of the Bankruptcy Code, as confirmation is not likely to be followed by liquidation or the need for further financial reorganization of the Debtors or any successor under the Plan. In connection with the development of the Plan and for the purposes of determining whether the Plan satisfies this feasibility standard, the Debtors analyzed their ability to satisfy their financial obligations while maintaining sufficient liquidity and capital resources. Management developed a business plan and prepared financial projections for the retail calendar years 2007 through 2010. A full-text copy of the Financial Projections is available for free at http://researcharchives.com/t/s?27cf The Debtors' Projections reflect an anticipated emergence from Chapter 11 as of May 11, 2008. The Debtors' estimated cash effects of emergence will constitute: * a compounded annual growth rate of 1.5% in rental revenue and merchandise sales; * a year-end store count of 3,540 stores, including Canadian stores, and an increase by 100 of Game Crazy stores in each of 2009 and 2010; * 53.8% gross margin in 2008, declining to 49.3% in 2010; * estimated gain of $311,900,000 consisting of cancellation of debt income associated with (a) the 11% Senior Notes, (b) the 9.625% Senior Subordinated Notes, (c) accounts payable, (d) accrued liabilities and (e) other general unsecured Claims, less (ii) the write-off of $25,500,000 of deferred financing fees and (iii) the $1,200,000 Rights Offering backstop fee; * $719,600,000 of outstanding debt upon emergence due to the extinguishment of the 11% Senior Notes and 9.625% Senior Subordinated Notes claims and the conversion of the Sopris Second Lien Claims converted into new common stock; and * maintenance of a minimum of $30,000,000 of book cash. In general, as illustrated by the Projections, the Debtors believe that with a significantly deleveraged capital structure, the Debtors' business will return to viability. The Debtors project that the Reorganized Debtors should have sufficient cash flow and availability to pay and service their debt obligations and to fund operations. The Debtors believe that Confirmation and Consummation is not likely to be followed by the liquidation or further reorganization of the Reorganized Debtors. Accordingly, the Debtors believe that the Plan satisfies the feasibility requirement of Section 1129(a)(11) of the Bankruptcy Code. Liquidation Analysis The Debtors with the assistance of their restructuring and financial advisors, have prepared a hypothetical liquidation analysis in connection with the Disclosure Statement. The Liquidation Analysis indicates the estimated values that may be obtained by Classes of Claims upon disposition of assets, pursuant to a Chapter 7 liquidation, as an alternative to continued operation of the Debtors' business under the Plan. ASSETS Total Consolidated Estimated Estimated Balance Recovery % Recovery ------------- ---------- ----------- Current Assets Cash and cash equivalents $75,753,000 100% $75,753,000 Merchandise Inventory 153,025,000 39% 59,221,000 Prepaid Expenses 50,937,000 74% 37,919,000 Accounts Receivable 6,235,000 57% 3,534,000 Store Supplies and other assets held for sale 7,366,000 48% 3,504,000 -------------- ---------- ----------- Total Current Assets 293,316,000 61% 179,931,000 ============== ========== =========== Rental Inventory, net 226,721,000 39% 87,741,000 Property, furnishings and equipment, net 123,269,000 9% 11,616,000 Goodwill, net 0 0% 0 Other intangibles, net 50,475,000 0% 0 Deferred income tax asset, net 1,774,000 0% 0 Deposits and other assets investment in subsidiaries 7,389,000 0% 6,223,000 -------------- ---------- ------------ Total Non-current Assets 409,628,000 26% 105,580,000 -------------- ---------- ------------ Total Assets/Proceeds $702,944,000 41% $285,511,000 ============== ========== ============ Chapter 7 Liquidation Expenses Winddown Costs ($55,200,000) Professional Fees (6,000,000) Trustee Fees and Commissions (7,726,000) ------------ Total Liquidation Expense ($68,926,000) ------------ Net Proceeds Available for Distribution $216,585,000 ============ DISTRIBUTIONS Total Total Estimated Total Estimated Claim Dist.% Distribution -------------- ------ ------------- Less Secured Claims DIP Term Loan $101,393,000 100% $101,993,000 LT Debt Facility (First Lien) 598,374,000 19% 114,592,000 Outstanding LCs (1st Lien) 25,030,000 0% 0 LT Debt Facility (2nd Lien) 189,576,000 0% 0 -------------- ------ ------------ Total Secured Claims 914,973,000 0% 216,585,000 ============== ====== ============ Remaining Distributable Value - Less Chapter 11 Admin & Priority Claims 103,287,000 0% $0 Remaining Distributable Value - Less General Unsecured Claims Subordinated Debt 341,861,000 0% $0 Other General Unsecured Claims 207,000,000 0% $0 -------------- ------ ------------- Total Unsecured Non-Priority Claims $548,861,000 0% - ============== ====== ============= Distributable Value Available for Equity - Total Estimated Claims/Distributions $1,567,121,000 14% $216,585,000 ============== ====== ============ A full-text copy of the Liquidation Analysis is available for free at http://researcharchives.com/t/s?27d0 Executory Contracts and Unexpired Leases To address the landlords' objections to the Disclosure Statement, the First Amended Plan provides that non-Debtor parties to executory contracts or unexpired leases that are deemed rejected as of the Plan Effective Date will have the right to assert any claim on account of the rejected contract or lease, including under Section 503 of the Bankruptcy Code; provided that the claims must be filed by the applicable Claims Bar Date. Debtors Continue Talks with Lenders The Debtors are currently soliciting prospective lenders regarding their interest in conducting due diligence with respect to providing the Exit Facility. The Debtors are also currently in discussions with Sopris regarding additional support for approximately $25 million to be provided by Sopris that could be utilized by the Debtors to realize additional liquidity during periods of peak product purchasing. No terms have been agreed to and there are no assurances about the final terms or conditions of the support. "With the Court's authorization, we can now begin the solicitation of stakeholder votes on our Plan, which is another important step forward in our restructuring process. We are very proud of what we have accomplished thus far as we work to emerge as a competitive and financially stable company. On behalf of my entire management team, we remain grateful for the unwavering support of our dedicated partners and associates throughout our restructuring process," Joe Malugen, chairman, president and chief executive officer of Movie Gallery, said. Movie Gallery will shortly begin the process of soliciting votes for the Plan from eligible claim holders. The Official Committee of Unsecured Creditors in Movie Gallery's Chapter 11 proceedings supported entry of the order approving the Disclosure Statement. Assuming the requisite approvals are received and the Bankruptcy Court confirms the Plan under the company's current timetable, Movie Gallery expects to emerge from Chapter 11 on May 11, 2008. A full-text copy of the Debtors' First Amended Plan is available for free at: http://researcharchives.com/t/s?27d1 A full-text copy of the Debtors' First Amended Disclosure Statement is available for free at: http://researcharchives.com/t/s?27d2 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. PRUDENTIAL BANK: Moody's Assigns Ba2 Currency Deposit Ratings ------------------------------------------------------------- Moody's Investors Service has assigned a bank financial strength rating of E+ to Prudential Bank, S.A. At the same time, Moody's assigned long- and short-term global local currency deposit ratings of Ba2/Not Prime, respectively. The bank was also assigned foreign currency deposit ratings of Ba2/Not Prime. Moody's also assigned long- and short-term Mexican National Scale ratings of A2.mx/MX-2, respectively. All these ratings have stable outlooks. According to Moody's, the BFSR of E+ reflects the bank's very short track-record, which is reflected in current operational losses, and the resulting challenges of generating sustainable earnings within its defined niche strategy. The bank's predominantly fee-based earnings and low capital consuming business results in limited risk profile. Prudential Bank (Mexico) was established in mid-2007 with the primary goal of distributing mutual funds that have been previously offered by Prudential Financial, Operadora de Sociedades de Inversion, S.A. Prudential Operadora ranked as the second largest independent mutual fund operation in Mexico. The bank's core business, therefore, leverages the existing market presence and brand of its parent company, Prudential Financial. Moody's noted, however, that as a newly established bank, Prudential Bank (Mexico) faces a new set of entrenched competitors, which also have extensive penetration in the Mexican deposits market. For that reason, the bank is challenged to expand its investment business platform, and thus, its franchise value and earnings generation, in such a competitive environment. The rating agency observes that Prudential Bank (Mexico) is likely to benefit from synergies with other companies of Prudential Grupo Financiero, in the form of client references, marketing and business development practices. Outside of Asia, Mexico is among Prudential's few international operations. Prudential Bank (Mexico)'s Ba2 GLC deposit rating incorporates the benefits of being part of the Prudential Financial network (rated A3/P-2 by Moody's), particularly those stemming from the group's strong brand name recognition and support in terms of funding, risk policies as well as operating and marketing guidelines. These ratings were assigned: -- Bank Financial Strength Rating: E+ -- Global Local Currency Deposits, long term: Ba2 -- Global Local Currency Deposits, short term: Not Prime -- Foreign Currency deposits, long term: Ba2 -- Foreign Currency deposits, short term: Not Prime -- National Scale Rating, long term: A2.mx -- National Scale Rating, short term: MX-2 -- Outlook: Stable Prudential Bank (Mexico) is headquartered in Mexico City. As of September 2007, the bank reported MXN371 million in assets. =========== P A N A M A =========== AES CORP: Inks Pact Selling Interests in Power Plant & Coal Mine ---------------------------------------------------------------- The AES Corporation has entered into an agreement to sell its interests in the AES Ekibastuz power plant and Maikuben West coal mine in Kazakhstan to Kazakhmys PLC, Kazakhstan's largest producer of copper and one of the leading copper producers in the world. AES will maintain its ownership and operation of its other facilities located in Eastern Kazakhstan, which include thermal and hydro generation capacity of approximately 2,688 MW and a distribution business with over 400,000 customers. AES will receive consideration of US$1.1 billion at closing and will have the opportunity to receive, over three years, additional consideration of up to US$381 million under earn-out provisions, a management fee and a capital expenditure program bonus, for a total consideration of up to US$1.48 billion. The management agreement duration is three years and runs through December 2010. "This transaction is a good example of how active portfolio management can create opportunities to increase value for our shareholders," said Paul Hanrahan, AES President and Chief Executive Officer. "At the same time, we will maintain an important presence in the growing Kazakhstan market." Ekibastuz, a coal-fired power plant with current available capacity of approximately 2,250 MW, and Maikuben, a coal mine, are both located in Northern Kazakhstan. AES acquired its initial interests in Ekibastuz and Maikuben in 1996 and 2001, respectively. Since 1996, AES has invested over US$200 million in modernization programs bringing into operation more than 2,000 MW of generation capacity at Ekibastuz. The sale is subject to certain regulatory and third-party approvals and to customary purchase price adjustments. The transaction is expected to close in second quarter 2008. Kazakhmys has its corporate headquarters in London and operations in Kazakhstan and Germany. About AES Corp. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company has Latin America operations in Argentina, Brazil, Chile, Dominican Republic, El Salvador and Panama. * * * The AES Corporation still carries Moody's Investors Service's Corporate Family Rating and the senior unsecured rating assigned at B1. As of Feb. 6, 2008, the company still carries Fitch's 'BB/RR1' rating on US$500 million issue of senior unsecured notes due 2017. ======= P E R U ======= QUEBECOR WORLD: U.S. Court Okays Donlin Recano as Claims Agent -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York gave Quebecor World Inc. and its debtor-affiliates authority to employ Donlin, Recano & Company, Inc. as their claims, notice and balloting agent. As reported in the Troubled Company Reporter on Jan 28, 2008, Jeremy Roberts, Senior Vice-President Corporate Finance and Treasurer of Quebecor World (USA) Inc., states that Bankruptcy Clerk is not equipped to distribute notices, process all of the proofs of claim filed, and assist in the balloting process in the Debtors' Chapter 11 cases. Thus, an independent third party is needed to act on these related administrative tasks, he says. Louis Recano, a principal of Donlin, Recano & Company, Inc., relates that the company has served more than 200 clients for Chapter 11 cases globally and their services include noticing solutions, claims administration, solicitation planning and balloting, and plan distribution and tracking. The Debtors wish to engage with Donlin Recano under terms and conditions provided in a Standard Claims Administration and Noticing Agreement. The Debtors may further utilize other services offered by Donlin Recano, including assisting the Debtors in preparing the master creditor lists, gathering data related to the Debtors' schedules and maintenance of a post office box for receiving claims. The Debtors have paid Donlin Recano a retainer of US$50,000. The firm will charge the Debtors at these rates: Senior Bankruptcy Consultant US$205-250 per hour Case Manager US$180-200 per hour Technology/Programming Consultant US$115-195 per hour Senior Analyst US$115-175 per hour Jr. Analyst US$70-110 per hour Clerical US$40-65 per hour The firm will also charge the Debtors for other services at their regular rates, including laser printing at $0.12 per page, Web hosting at $250 per month, among other things. Mr. Recano asserts that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code and holds no interest adverse to the Debtors or their estates for the matters for which the firm is to be employed. The firm can be reached at: Donlin Recano & Company, Inc. 419 Park Avenue South New York, NY 10016 Tel: (212) 481-1411 Fax: (212) 481-1416 http://www.donlinrecano.com/ 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. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) QUEBECOR WORLD: Justice Mongeon Approves E&Y as CCAA Monitor ------------------------------------------------------------ Quebecor World Inc. and its Canadian Debtor affiliates obtained permission from the Honorable Justice Robert Mongeon at the Superior Court of Justice (Commercial Division), for the Province of Quebec, in Canada, to appoint Ernst & Young Inc., as their monitor in its insolvency proceedings under the Canadian Companies' Creditors Arrangement Act. As an officer of the Canadian Court, E&Y is expected to monitor the Debtors' business and financial affairs. The Monitor will not interfere with the Debtors' business and financial affairs, and is not empowered to take possession of the Debtors' property nor manage any of their business or financial affairs. The Debtors and their directors, officers, employees and agents, accountants, auditors, and all other related parties will provide the Monitor with unrestricted access to all of the Debtors' properties, including premises, books, records, data, including data in electronic form, and all other documents of the Debtors in connection with the Monitor's duties and responsibilities. The Monitor may provide creditors and other interested parties with information relating to the Debtors. The Monitor, however, will not disclose any information that is considered confidential, proprietary or competitive, or where the disclosure of information would be prejudicial to the Debtors' restructuring process. The Monitor will not incur any liability or obligation as a result of its appointment and the fulfillment of its duties, except any liability arising from its gross negligence or willful misconduct. No action will be commenced against the Monitor relating to its appointment, except without prior leave of the Canadian Court. The Debtors will entitle the Monitor, its legal counsel, as well as the Debtors' legal counsel, an administration charge on the Debtors' Property, not exceeding CDN$5,000,000. 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. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) QUEBECOR WORLD: Court Extends Noteholders' BIA Preference Period ---------------------------------------------------------------- The Honorable Justice Robert Mongeon at the Superior Court of Justice (Commercial Division), for the Province of Quebec, in Canada, authorized certain holders of notes issued by Quebecor World Inc., to file a petition seeking to extend certain preference periods under the Bankruptcy and Insolvency Act for transactions entered by QWI in October 2007. The noteholders allege that, in connection with the transactions, QWI owes them "at least $1,000" as of Jan. 25, 2008, and has ceased to meet their liabilities generally as they become due. The preference period expired by the end of January 2008. Ernst & Young, QWI's CCAA monitor, consented to the request for extension of the preference period. Justice Mongeon, however, noted that in accordance with his prior order barring any actions or proceedings against QWI until Feb. 20, 2008, the noteholders are prohibited from performing other actions against QWI. The noteholders are AIG Global Investment Corp., Avenue Capital Management II Gen Par, LLC, MacKay Shields LLC, and Oaktree Capital Management LP. Jay Carfagnini, Esq., at Goodmans LLP, in Ontario, Canada, represents the noteholders. 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. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) QUEBECOR WORLD: Gets Interim OK to Use US$1 Billion DIP Facility ---------------------------------------------------------------- Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York authorizes Quebecor World Inc. and its debtor-affiliates, in the interim, to enter into a US$1,000,000,000 DIP facility with Credit Suisse Securities (USA), LLC, and Morgan Stanley Senior Funding Inc. The Honorable Justice Robert Mongeon at the Superior Court of Justice (Commercial Division), for the Province of Quebec, who oversees the Debtors' insolvency proceedings under the Canadian Creditors' Companies Arrangement Act, also authorizes the Canadian Applicants to enter into the US$1,000,000,000 DIP Facility. Judge Peck authorizes the U.S. Debtors to borrow, pending a final hearing, up to an aggregate of US$750,000,000 to purchase the Receivables Portfolio from non-debtor Quebecor World Finance, Inc., and pay for other general corporate purposes. The DIP Lenders will be entitled an allowed administrative expense claim with priority, subject only to a Carve-Out for payment of professional fees and expenses, over all other kinds of claims. The Carve-Out means: (a) unpaid fees and expenses of professionals retained by the Debtors or any statutory committees that are incurred before an Event of Default in the DIP Facility; (b) unpaid fees and expenses of professionals retained by the Debtors or any statutory committees up to an amount not exceeding US$20,000,000, that are incurred after the occurrence of an Event of Default; (c) reasonable fees and expenses of a Chapter 7 trustee up to an amount not exceeding US$250,000; and (d) fees to be paid to the Court and the office of the U.S. Trustee. Judge Peck will convene a hearing on March 6, 2008, at 10:00 a.m., to consider final approval of the US$1,000,000,000 DIP Facility. Objections are due February 28. The U.S. Court also granted a series of other requests from Quebecor World's subsidiaries in the United States. Among other things, the Court authorized the Company to continue to honor its ongoing obligations to its employees and to honor all commitments to the Company's customers so as to ensure that customers receive the same high level of service they depend upon to meet their advertising and publishing needs. Quebecor World Beats Deadline by Minutes Bloomberg News reports that Judge Peck approved Quebecor World's interim loan, part of the overall request to borrow US$1,000,000,000, eight minutes before a 5 p.m. cut-off by the DIP Lenders. Quebecor World's request was approved Jan. 23, 2008. "These have been two of the worst days we have ever seen in the credit markets, that's why there's a commitment deadline," said Douglas Bartner, Shearman & Sterling LLP, representing Credit Suisse Group and Morgan Stanley. 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. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ===================== P U E R T O R I C O ===================== AVNET INC: Operating Unit Signs Global Distribution Deal With Alps ------------------------------------------------------------------ Avnet Inc.'s operating group, Avnet Electronics Marketing, and Alps Electric Co. Ltd., a Japan-based developer and manufacturer of electronic devices and components, have entered into a global distribution agreement. Under the agreement, Avnet will distribute the full line of Alps products, including switches and encoders, sensors, potentiometers, connectors, direct thermal printers, radio frequency and optical devices on a worldwide basis. Alps Electric is guided by a development concept that blends core and proprietary technologies to produce a sophisticated and highly functional line of devices for the broadcasting and telecommunications fields. Alps products enhance human-to-machine interface and enable the comfortable operation of appliances for unsurpassed machine-to-machine interface. "Alps understands and embraces the concept of `art of electronics,' which results in a unique and advanced line of products for seamless designs," said Tom McCartney, senior vice president of IP&E business development worldwide for Avnet Electronics Marketing. "Together, Avnet and Alps will work with customers, from the design stage to production and around the globe, to assure products meet their unique needs in a functional and cost-effective way." "We are delighted to combine the broad global presence of Avnet and the outstanding quality performance of our products," said Yasuo Sasao, general manager strategic sales and marketing operations for Alps Electric. "This combination will create synergy and lead to a great success in marketing the growing range of Alps products across global markets, especially also in adding service values and by creating new customer relationships across all geographies." About Avnet Inc. Headquartered in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * Moody's Investors Service affirmed Avnet's Ba1 corporate family long-term debt ratings in March 2007. Moody's said the outlook is positive. DORAL FINANCIAL: Declares Cash Dividend on Preferred Stocks ----------------------------------------------------------- Doral Financial Corporation has declared regular monthly cash dividends on its: -- 7% Noncumulative Monthly Income Preferred Stock, Series A, -- 8.35% Noncumulative Monthly Income Preferred Stock, Series B and -- 7.25% Noncumulative Monthly Income Preferred Stock, Series C for the quarter. The dividend is paid monthly on Jan. 31, Feb. 28 and March 31, 2008. The monthly dividend for Series A, B and C will be US$0.2917, US$0.173958, US$0.151042 per share, respectively and payable on Jan. 31, Feb. 28 and March 31, 2008. In the case of Series A Preferred Stock, the dividend is paid to the record holders as of close of business on Jan. 29, Feb. 27, and March 27, 2008. In the case of the Series B and Series C Preferred Stock, the dividend is paid to the record holders as of close of business on Jan. 15, Feb. 15 and March 15, 2008. Based in New York City, Doral Financial Corp. (NYSE: DRL) -- http://www.doralfinancial.com/-- is a diversified financial services company engaged in mortgage banking, banking, investment banking activities, institutional securities and insurance agency operations. Its activities are principally conducted in Puerto Rico and in the New York City metropolitan area. Doral is the parent company of Doral Bank, a Puerto Rico based commercial bank, Doral Securities, a Puerto Rico based investment banking and institutional brokerage firm, Doral Insurance Agency Inc. and Doral Bank FSB, a federal savings bank based in New York City. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 28, 2007, Standard & Poor's Ratings Services said that its 'B' long-term counterparty credit rating on Doral Financial Corp. remains on CreditWatch Positive, where it was placed July 20, 2007. R&G FINANCIAL: Gets Approval to Pay February Preferred Dividends ---------------------------------------------------------------- Puerto Rico chartered bank holding company, R&G Financial Corporation, has received regulatory permission to pay its dividend obligations for February on its four outstanding series of preferred stock and on its trust preferred securities issues. Regulatory approvals are necessary as a result of the company's previously announced agreements with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and Commissioner of Financial Institutions of the Commonwealth of Puerto Rico. About R&G Financial Headquartered in San Juan, Puerto Rico, R&G Financial Corp. (PNK: RGFC.PK) -- http://www.rgonline.com/-- is a financial holding company with operations in Puerto Rico and the United States, providing banking, mortgage banking, investments, consumer finance and insurance through its wholly owned subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage Corporation, Puerto Rico's second largest mortgage banker, R-G Investments Corporation, the company's Puerto Rico broker- dealer, and R-G Insurance Corporation, its Puerto Rico insurance agency. The company operates 37 bank branches in Puerto Rico, 36 bank branches in the Orlando, Tampa/St. Petersburg and Jacksonville, Florida and Augusta, Georgia markets, and 44 mortgage offices in Puerto Rico, including 36 facilities located within R-G Premier Bank's banking branches. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 26, 2007, Fitch downgraded the long-term issuer default rating of R&G Financial Corporation to 'CCC' from 'BB-'. Further, R&G was placed on rating watch negative. In addition, the long- term IDR of R-G Premier Bank has been downgraded to 'B' from 'BB- '. ================= V E N E Z U E L A ================= TIMKEN CO: Board Declares US$0.17 Per Share Quarterly Dividend -------------------------------------------------------------- Timken Company's board of directors has declared a quarterly cash dividend of 17 cents per share. The dividend is payable on March 4, 2008, to shareholders of record as of Feb. 15, 2008. It will be the 343rd consecutive dividend paid on the common stock of the company. About Timken Co. Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America, Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000 employees. * * * The Timken Company still carries Moody's Investors Service's Ba1 senior unsecured deb rating on US$300 million Medium Term Notes, Series A. * VENEZUELA: Workers Union Warns Indefinite Strike Extension ------------------------------------------------------------ Work stoppage at Ternium Sidor, Venezuela's largest steel production plant, may continue as a union of 5,400 permanent workers and 9,000 contract workers warned they will extend their strike indefinitely if the company fails to meet their demands, Kiraz Janicke of Venezuelanalysis reports, citing Nerio Fuentes, United Steel Industry Workers Union General Secretary. According to the report, the union's move to extend the strike came after Sidor management suspended negotiations for a collective agreement. Sidor management, Venezuelanalysis relates, found the workers' demand fora US$32.56 daily salary increase "totally inviable." However, the company said it would review the proposal of Vice Minister of Labor, Rafael Chacon, of a daily salary increase of 45 bolivars and a retroactive payment of Bs.F. 20,000. Aside from the salary increase, the union is also seeking a retroactive payment of Bs.F. 50,000 for each worker, for retirement funds, Venezuelanalysis says. About Ternium Sidor Based in Bolivar, Venezuela, Ternium Sidor, is a private steel company with average output of 4.2Mt/y of liquid steel. The company is controlled by Argentina's Trechint, which holds a 60% stake. * * * As reported in the Troubled Company Reporter on Nov. 20, 2006, Fitch Ratings affirmed Venezuela's long-term foreign and local currency Issuer Default Ratings at 'BB-'. At the same time, the agency also affirmed the short-term foreign currency IDR at 'B'and the Country Ceiling at 'BB-'. Fitch said the outlook on the ratings remains stable. *********** 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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