/raid1/www/Hosts/bankrupt/TCRLA_Public/080214.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 14, 2008, Vol. 9, No. 32
Headlines
A R G E N T I N A
ALITALIA SPA: Opposition Party to Respect Possible Stake Sale
ARMELINO ROSA: Seeks Bankruptcy Approval from Buenos Aires Court
H Y H: Proofs of Claim Verification is Until April 18
LAS PORTENAS: Proofs of Claim Verification Deadline is March 31
PIED SA: Court Concludes Reorganization
SUCESION DE ABRAHAM: Trustee Verifies Claims Until April 3
B A H A M A S
PETROLEOS DE VENEZUELA: Selling Borco to First Reserve
TYCO INT'L: To Sell Infrastructure Services Biz to AECOM Tech
B E R M U D A
FOSTER WHEELER: Finnish Unit Bags PJSC Contract in Russia
INTELSAT LTD: Appoints Messrs. Spengler & Guillemin as EVP & SVP
INTERNATIONAL FILM: Final Shareholders Meeting is on March 12
INTERNATIONAL FILM: Proofs of Claim Filing Ends on February 20
REFCO INC: Court Moves Claim Objection Deadline to April 30
REFCO INC: Sale of 35% Equity Stake in FXCM Consummated
REFCO INC: SPhinX Liquidators Want Protective Order Eased
SOLAR ENTERPRISES: Sets Final Shareholders Meeting for March 10
B O L I V I A
COEUR D'ALENE: Resumes Pre-Commissioning at San Bartolome Mine
* BOLIVIA: Inks Loan Pact With World Bank to Finance 5 Projects
B R A Z I L
BLOUNT INT'L: Sept. 30 Balance Sheet Upside-Down by US$78.1 Mil.
FIAT SPA: Sees no Slowdown in Global Demand
FORD MOTOR: Plans to Offer Buyout Packages to 9,000 Workers
FORD MOTOR: Tells Plastech Court Carmakers Can Recover Tooling
GENERAL MOTORS: Inviting Ex-Guide Workers to Apply at Plants
GENERAL MOTORS: Posts Net Loss of US$38.7 Billion in 2007
GENERAL MOTORS: Reaches Agreement with UAW on Attrition Program
GENERAL MOTORS: Tells Plastech Ct. Carmakers Can Recover Tooling
GERDAU AMERISTEEL: Joint Venture Pacific Coast to Buy Century
SCO GROUP: Reduces Workforce by 30 Positions to Reduce Expenses
SUN MICROSYSTEMS: Signs Stock Purchase Deal with innotek
SUN MICROSYSTEMS: To Launch Sun Vietnam With Frontline Tech
* BRAZIL: PeMex Could Own Up to 15% Stake in Petrobras Project
* BRAZIL: Inflation Risk Premium to Decline, Central Bank Says
C A Y M A N I S L A N D S
ABLAMID INVESTMENT: Proofs of Claim Filing Deadline is Feb. 25
ASIAN INFRASTRUCTURE: Proofs of Claim Filing Ends on Feb. 25
PARMALAT SPA: Kenyan Crisis Spurs Firm to Defer Spin Knit Buy
TRADED POLICIES: Sets Final Shareholders Meeting for February 26
TVG ASIAN: Proofs of Claim Filing Deadline is February 25
C H I L E
ELECTRONIC DATA: Bob Hershey to Lead SAP Consulting Practice
EMPRESA ELECTRICA: Reports US$60.9 Million Net Profit in 2007
SOL MELIA: S&P Withdraws BB Credit Rating at Company's Request
C O L O M B I A
CUMMINS INC: Board Declares 12.5 Cents Per Share Dividend
GERDAU SA: Unit Selling 9.98% Stake in Acerias Paz for US$66.2MM
C O S T A R I C A
ALCATEL-LUCENT SA: Forms Joint Venture With NEC Corp.
SPECTRUM BRANDS: Dec. 30 Balance Sheet Upside-Down by US$141.2MM
* COSTA RICA: State Refiner Junks Plant Revamp Bidding Process
* COSTA RICA: State Refiner Seeking LPG System Project Funding
D O M I N I C A N R E P U B L I C
GENERAL CABLE: Earns US$208.6 Million in Full Year 2007
E C U A D O R
PETROECUADOR: Ortiz Wants Borders To be Redrawn for Oil Blocks
E L S A L V A D O R
* EL SALVADOR: 5 Groups Buy El Chaparral Project Bidding Rules
G U A T E M A L A
ALLIANCE ONE: S&P Ratings Unmoved by Delay in Financial Filing
H O N D U R A S
* HONDURAS: Will Likely Purchase Oil Byproducts from Venezuela
M E X I C O
BERRY PLASTICS: Moody's Holds B3 Rating on Captive Buyout Loan
CHRYSLER LLC: Tooling Request Being Evaluated by the Court
ENESCO GROUP: Plan Confirmation Hearing Deferred to February 13
GERDAU SA: To Purchase 49% of Corsa Controladora
GRUPO MEXICO: Restarts Ore Processing at Cananea Mine
IXE BANCO: S&P Holds BB/B Counterparty Rating; Outlook Stable
N I C A R A G U A
PERRY ELLIS: Reports Preliminary FY 2008 & Fourth Qtr. Results
P A N A M A
CHIQUITA BRANDS: Completes US$200MM Offering of 4.25% Sr. Notes
P A R A G U A Y
MILLICOM INTERNATIONAL: Earns US$697.1 Million in Full Year 2007
P E R U
LEVI STRAUSS: Nov. 25 Balance Sheet Upside-Down by US$398 Mil.
P U E R T O R I C O
ADVANCED CARDIOLOGY: Files Amended Disclosure Statement
AEROMED SERVICES: Hires Alexis Fuentes-Fernandez as Counsel
BADRAN STORES: Court OKs Mender as Accountant & Consultant
FIRST BANCORP: Raymond James Upgrades Firm to Strong Buy
V E N E Z U E L A
CITGO PETROLEUM: May Face US$169,000 Fine from US Gov't
PETROLEOS DE VENEZUELA: Exxon's Suit Seen as U.S. Political Move
PETROLEOS DE VENEZUELA: Petrocedeno To Shut Down Crude Upgrader
PETROLEOS DE VENEZUELA: Fitch Says Freeze Has Little Effect
* VENEZUELA: Oil Output Down by 1/3 on Mr. Chavez's Policie
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: Opposition Party to Respect Possible Stake Sale
-------------------------------------------------------------
The Forza Italia opposition party will respect the possible sale
of the Italian government's 49.9% stake in Alitalia S.p.A. to
Air France-KLM S.A. if it wins the snap election in April 2008,
published reports say.
"If there were to be a contract already signed, it would be
respected," Renato Brunetta, deputy coordinator of Silvio
Berlusconi's Forta Italia, was quoted by Bloomberg News as
saying.
Mr. Brunetta, however, said Forza Italia would like the outgoing
government, headed by Prime Minister Romano Prodi, to avoid an
agreement and leave the decision to the next government, Reuters
reports.
President Giorgio Napolitano dissolved the Italian parliament on
Feb. 6, 2008, and set a snap election for April 13 and 14, 2008.
Mr. Prodi's administration remains as caretaker government
until a new prime minister is elected into office.
As reported in the TCR-Europe on Feb. 11, 2008, Mr. Prodi vowed
to "do everything possible" to complete the stake sale.
"We will certainly do our best to make sure that this operation,
which no-one has had the courage to face despite being widely
recognized as necessary and unavoidable, makes it to the end,"
Mr. Prodi was quoted by Agenzia Giornalistica as saying. "We
have taken on this task and we will try to go all the way."
Alitalia and Air France-KLM SA have until mid-March to complete
exclusive talks and present a final binding offer to the Italian
government, which thereafter will decide whether to sell its
stake to the French carrier.
As previously reported in the TCR-Europe, Alitalia and Italy
commenced exclusive sale talks with Air France-KLM.
In its non-binding offer, Air France plans to:
-- acquire 100% of the shares of Alitalia through an
exchange offer;
-- acquire 100% of Alitalia convertible bonds; and
-- immediately inject at least EUR750 million into
Alitalia through a capital increase, that will be open to
all shareholders and be fully underwritten by Air France.
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.
ARMELINO ROSA: Seeks Bankruptcy Approval from Buenos Aires Court
----------------------------------------------------------------
The National Commercial Court of First Instance No. 10 in Buenos
Aires is studying the merits of Dawn Foods International SRL's
request to enter bankruptcy protection.
Armelino Rosa filed a "Quiebra Decretada" petition, after
failing to pay its debts.
The petition, once approved by the court, will transfer control
of the company's assets to a court-appointed trustee who will
supervise the liquidation proceedings.
Clerk No. 19 assists the court in this case.
The debtor can be reached at:
Armelino Rosa - Varela - Barralia SRL
Quirno 7
Buenos Aires, Argentina
H Y H: Proofs of Claim Verification is Until April 18
-----------------------------------------------------
Carlos Grela, the court-appointed trustee for H y H Producciones
SRL's bankruptcy proceeding, verifies creditors' proofs of claim
until April 18, 2008.
Mr. Grela will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 11 in Buenos Aires, with the assistance of Clerk
No. 21, 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 H y H 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 H y H's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Grela is also in charge of administering H y H's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
H y H Producciones SRL
Alsina 1123
Buenos Aires, Argentina
The trustee can be reached at:
Carlos Grela
Nunez 2395
Buenos Aires, Argentina
LAS PORTENAS: Proofs of Claim Verification Deadline is March 31
---------------------------------------------------------------
Leticia Andrea Matej, the court-appointed trustee for Las
Portenas S.A.'s bankruptcy proceeding, verifies creditors'
proofs of claim until March 31, 2008.
Ms. Matej will present the validated claims in court as
individual reports on May 27, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by Las Portenas 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 Las Portenas'
accounting and banking records will be submitted in court on
July 14, 2008.
Ms. Matej is also in charge of administering Las Portenas'
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Leticia Andrea Matej
Tucuman 1567
Buenos Aires, Argentina
PIED SA: Court Concludes Reorganization
---------------------------------------
Pied S.A. concluded its reorganization process, according to
data released by Infobae on its Web site. The closure came
after the National Commercial Court of First Instance in San
Jorge, Santa Fe, homologated the debt plan signed between the
company and its creditors.
SUCESION DE ABRAHAM: Trustee Verifies Claims Until April 3
----------------------------------------------------------
Gerardo Serghezzo, the court-appointed trustee for Sucesion de
Abraham Dayan's bankruptcy proceeding, verifies creditors'
proofs of claim until April 3, 2008.
Mr. Serghezzo will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 3 in Buenos Aires, with the assistance of Clerk
No. 5, 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 Sucesion de Abraham 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 Sucesion de Abraham's
accounting and banking records will be submitted in court.
La Nacion didn't state the submission deadlines for the reports.
Creditors will vote to ratify the completed settlement plan
during the assembly on Dec. 11, 2008.
Mr. Serghezzo is also in charge of administering Sucesion de
Abraham's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Sucesion de Abraham Dayan
Salguero 540
Buenos Aires, Argentina
The trustee can be reached at:
Gerardo Serghezzo
Paraguay 1224
Buenos Aires, Argentina
=============
B A H A M A S
=============
PETROLEOS DE VENEZUELA: Selling Borco to First Reserve
------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA will
sell its Bahamian oil storage business Borco to energy-focused
private equity firm First Reserve in an alleged US$900-million
deal, The Financial Times Limited reports.
As reported in the Troubled Company Reporter-Latin America on
Aug. 17, 2007, Venezuelan energy and oil minister and Petroleos
de Venezuela's chief executive officer Rafael Ramirez denied
plans to sell Borco. Petroleos de Venezuela directors led by
the firm's refining vice president, Alejandro Grando, met twice
in Houston in 2006 to discuss the sale of Borco. Petroleos de
Venezuela had considered the sale of Borco because it didn't
need a large storage complex in the Caribbean.
The FT notes that Borco was valued at US$400 million in June
2007, based mainly on its storage capacity of 20 million
barrels.
The availability of 300 acres of adjacent land for expansion as
well as the possibility of restarting some deactivated parts of
the facility gave Borco more value than some initially thought,
The FT says, citing First Reserve.
First Reserve told The FT it was positive that Petroleos de
Venezuel'as dispute with ExxonMobil wouldn't affect the Borco
transaction, which has already closed.
As reported in the Troubled Company Reporter-Latin America on
Feb. 11, 2008, Petroleos de Venezuela is barred from taking or
disposing of up to US$12 billion in petroleum assets worldwide
after courts in Britain and the U.S. ordered freezing of those
assets. Exxon Mobil had sought the ruling amid reports that
Petroleos de Venezuela could be looking to sell assets to
counter financial crisis. According to U.K. court filing,
ExxonMobil is concerned that Petroleos de Venezuela will
transfer assets to other countries including China to put them
out of reach of an international arbitration commission. Last
year, Venezuelan President Hugo Chavez nationalized oil projects
in the country and Exxon Mobil has been seeking to recover the
value of its investments in those fields.
The FT relates that First Reserve examined Borco for over a
year.
First Reserve managing director Tom Sikorski commented to The
FT, "The fact is that oil majors are spending much of their
available capital exploring for new oil, leaving them little
left to invest in storage - that's where we can come in."
Royal Dutch Shell already entered into an accord with First
Reserve to be its first tenant at Borco, The FT states.
About First Reserve
First Reserve Corporation fuels the companies that help fuel the
world. The private equity firm invests in middle-market energy
companies, and currently manages about US$12.5 billion. Its
typical investment ranges from US$100 million to US$500 million
in enterprises involved in energy manufacturing and services,
energy infrastructure, and energy reserves. The company's
current portfolio includes stakes in some 20 firms, including
Brand Energy & Infrastructure Services and Dresser. First
Reserve's investor base is primarily comprised of corporations,
endowments, foundations, and public retirement funds.
About Petroleos de Venezuela SA
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
PDVSA estimates it will achieve a 5 million 847 thousand barrel
per day production capacity by the year 2012.
* * *
In March 2007, Standard & Poor's Ratings Services assigned its
'BB-' senior unsecured long-term credit rating to Petroleos de
Venezuela S.A.'s US$2 billion notes due 2017, US$2 billion notes
due 2027, and US$1 billion notes due 2037.
TYCO INT'L: To Sell Infrastructure Services Biz to AECOM Tech
-------------------------------------------------------------
Tyco International Ltd. has entered into a definitive agreement
to sell substantially all of its Infrastructure Services
business to AECOM Technology Corporation for approximately
US$510 million. Infrastructure Services, which operates under
the name Earth Tech Inc., provides consulting engineering,
construction management and operating services for the water,
wastewater, environmental, transportation and facilities
markets. The business had revenue of US$1.3 billion in 2007 and
employs 7,000 people around the world.
"The sale of Infrastructure Services is an important step in the
ongoing refinement of our portfolio and is consistent with our
strategy to divest certain non-core businesses," said Tyco
Chairperson and Chief Executive Officer, Ed Breen.
During 2007, Tyco agreed to sell a Brazilian subsidiary of
Infrastructure Services for approximately US$295 million,
a transaction expected to close in the current fiscal quarter.
Completion of the AECOM transaction is subject to customary
closing conditions, regulatory approvals and expiration
of the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act.
AECOM Technology, based in Los Angeles, California is a
US$4.2 billion global engineering services company providing
professional technical and management support services to
customers in the transportation, facilities, environmental and
energy markets.
About Tyco
Based in Pembroke, Bermuda, Tyco International Ltd. (NYSE: TYC)
-- http://www.tyco.com/-- provides security, fire protection
and detection, valves and controls, and other industrial
products and services to customers in four business segments:
Electronics, Fire & Security, Healthcare, and Engineered
Products & Services. With 2007 revenue of US$18 billion, Tyco
employs approximately 118,000 people worldwide. In Latin
America, Tyco has presence in Argentina, Brazil, Bermuda, Chile,
Costa Rica, Ecuador, Honduras, and the Bahamas.
Effective June 29, 2007, Tyco International Ltd. completed the
spin-offs of Covidien and Tyco Electronics, formerly its
Healthcare and Electronics businesses, respectively, into
separate, publicly traded companies in the form of a
distribution to Tyco shareholders.
* * *
As reported in the Troubled Company Reporter on Dec. 21, 2007,
in its annual report for the year ended Sept. 28, 2007, Tyco
said that on Nov. 8, 2007, The Bank of New York delivered to the
company a notice of events of default.
The notice claims that the actions taken by the company in
connection with its separation into three public entities
constitute events of default under the indentures.
=============
B E R M U D A
=============
FOSTER WHEELER: Finnish Unit Bags PJSC Contract in Russia
---------------------------------------------------------
Foster Wheeler Ltd.'s Finnish subsidiary Foster Wheeler Energia
Oy, part of its Global Power Group, has been awarded a contract
by PJSC EnergoMashinostroitelny Alliance for a 330 MWe (gross
megawatt electric) advanced circulating fluidized-bed (CFB)
steam generator to be located in Novocherkassk, Russia. The
Novocherkasskaya GRES facility is owned by The Sixth Wholesale
Power Market Generating Company (WGC-6).
Foster Wheeler has received a full notice to proceed on this
contract. The terms of the award were not disclosed, and the
contract will be included in the company's bookings for the
first quarter of 2008.
Although Foster Wheeler CFB technology has been installed in
more than 300 locations worldwide, this is the first CFB to be
built in Russia and the second CFB ordered in the world which
utilizes advanced supercritical once-through (OTU) steam
technology. The first such CFB is located in Poland, where
Foster Wheeler is currently building a 460 MWe OTU-CFB that is
planned to come on-line in the first quarter of 2009. OTU-CFB
technology improves overall power plant efficiency, resulting in
producing about 5-10% more electricity from the same amount of
fuel consumed as compared to a conventional subcritical steam
power plant. Further, this fuel savings translates into
approximately the same amount of reduction for the plant's air
and ash emissions helping to reduce the plant's environmental
impact.
Foster Wheeler will supply the steam generator, auxiliary
equipment and advisory services for erection and commissioning
of the boiler island. The boiler will be designed to burn both
anthracite and bituminous coal along with a potential of 30%
anthracite slurry.
"This is a wonderful opportunity to further demonstrate the
capabilities of our supercritical CFBs in utility scale
operations," said Tomas Harju-Jeanty, president and chief
executive officer of Foster Wheeler Energia Oy. "This advanced-
CFB technology will increase opportunities for industrialized
nations to use their domestic coal reserves for large scale
utility plants while minimizing any environmental impact. In
addition, we are honored to be the company selected to bring the
first CFB to Russia."
About Foster Wheeler Ltd.
Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/--
offers a broad range of engineering, procurement, construction,
manufacturing, project development and management, research and
plant operation services. Foster Wheeler serves the refining,
upstream oil and gas, LNG and gas-to-liquids, petrochemical,
chemicals, power, pharmaceuticals, biotechnology and healthcare
industries. The corporation is based in Hamilton, Bermuda, and
its operational headquarters are in Clinton, New Jersey.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable. At the
same time, S&P affirmed its 'BB' corporate credit rating on the
company. The company reported total debt of approximately
US$150 million at Sept. 30, 2007.
In December 2006, Standard & Poor's Ratings Services revised its
outlook on Foster Wheeler Ltd. to positive from stable.
Standard & Poor's also affirmed its 'B+' corporate credit rating
and other ratings on the company. The company had about
US$217 million of total debt at Sept. 29, 2006.
INTELSAT LTD: Appoints Messrs. Spengler & Guillemin as EVP & SVP
----------------------------------------------------------------
Intelsat Ltd. announced a number of executive appointments,
effective immediately.
Intelsat Chief Executive Officer Dave McGlade has appointed
Stephen Spengler to the position of Executive Vice President,
Sales & Marketing, and Thierry Guillemin to the position of
Senior Vice President & Chief Technical Officer, both new roles.
These roles replace the Chief Operating Officer position vacated
by James Frownfelter, who submitted his resignation from
Intelsat on Feb. 8 2008.
Mr. Spengler most recently served as Intelsat's Senior Vice
President, Europe, Middle East, Africa & Asia Pacific Sales, and
has over 25 years experience in the telecommunications industry.
Since joining Intelsat in 2003, Mr. Spengler has served in a
number of sales leadership positions, and led Intelsat's Global
Marketing and Sales organizations immediately prior to
Intelsat's acquisition of PanAmSat in 2006. As Executive Vice
President, Sales & Marketing, Mr. Spengler will have
responsibility for Intelsat's global marketing and sales
efforts, which include providing services to media and network
services customers in approximately 200 countries and
territories.
Mr. Guillemin most recently served as Intelsat's Vice President
of Satellite Operations & Engineering, where he was responsible
for the service availability of Intelsat's in-orbit fleet of 54
satellites. Mr. Guillemin has over 25 years experience in the
satellite industry, in disciplines including spacecraft
development, launch and operations. As Senior Vice President &
Chief Technical Officer, Mr. Guillemin will be responsible for
customer operations, space systems management and planning, and
satellite operations.
In announcing the appointments, Mr. McGlade said, "Over the past
several years, Intelsat has built a highly skilled management
team, one that understands the needs of our global customer base
and that is fully capable of profitably growing the business. I
am proud of the bench strength we enjoy throughout the
organization, and today's appointments reflect Intelsat's
leadership in this respect. We thank Jim Frownfelter for his
years of service to PanAmSat, and for his contributions to our
successful merger integration progress."
About Intelsat
Headquartered in Bermuda, Intelsat, is the largest fixed
satellite service operator in the world and is owned by Apollo
Management, Apax Partners, Madison Dearborn, and Permira.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2008, Moody's Investors Service downgraded Intelsat
Ltd.'s corporate family rating by two notches to Caa1.
INTERNATIONAL FILM: Final Shareholders Meeting is on March 12
-------------------------------------------------------------
International Film Guarantors Reinsurance, Ltd., will hold its
final shareholders meeting on March 12, 2008, at 9:30 a.m., at
Messrs. Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
INTERNATIONAL FILM: Proofs of Claim Filing Ends on February 20
--------------------------------------------------------------
Film Guarantors Reinsurance, Ltd.'s creditors are given until
Feb. 20, 2008, to prove their claims to Robin J. Mayor, 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.
Film Guarantors' shareholder decided on Jan. 29, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
REFCO INC: Court Moves Claim Objection Deadline to April 30
-----------------------------------------------------------
RJM, LLC, the plan administrator to reorganized Refco, Inc. and
its affiliates, and Marc S. Kirschner, the plan administrator to
Refco Capital Markets, Ltd., obtained an April 30, 2008
extension of their deadline to object to requests for payment of
administrative expense claims and prepetition claims.
Steven Wilamowsky, Esq., at Bingham McCutchen, LLP, in New York,
relates that, since Refco's bankruptcy filing in October 2005,
14,400 filed claims and 8,300 unfiled claims have been addressed
by the U.S. Bankruptcy Court for the Southern District of New
York. The Plan Administrators currently have 200 claims subject
to objections, and 100 claims for additional claims resolution.
Mr. Wilamowsky says roughly 225 claims were asserted as
administrative claims against either RCM or the Reorganized
Debtors. The Plan Administrators have fully administered and
resolved 215 of the 225 claims.
According to Mr. Wilamowsky, the extension is appropriate to
complete the claims reconciliation process and will ensure that
all non-meritorious claims are properly challenged.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives. Refco has
operations in Bermuda.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its direct and indirect subsidiaries,
including Refco Capital Markets Ltd. and Refco F/X Associates
LLC, on Dec. 15, 2006. That Plan became effective on
Dec. 26, 2006.
Refco Commodity's exclusive period to file a chapter 11 plan
expired on Feb. 13, 2007. (Refco Bankruptcy News; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
REFCO INC: Sale of 35% Equity Stake in FXCM Consummated
-------------------------------------------------------
RJM LLC, the plan administrator to reorganized Refco Inc. and
its affiliates, and Marc S. Kirschner, the plan administrator to
Refco Capital Markets, Ltd., notified the U.S. Bankruptcy Court
for the Southern District of New York that the sale of Refco
Group Ltd.'s 35% equity interest in Forex Capital Markets, LLC,
has been consummated.
The names of the purchasers had been withheld for
confidentiality purposes, according to Steven Wilamowsky, Esq.,
at Bingham McCutchen LLP, in New York.
As reported in the Troubled Company Reporter on Nov. 29, 2007,
the Plan Administrators asked the Court to approve their
settlement agreement with Forex Capital Markets, LLC, Forex
Trading LLC, FXCM Canada Ltd., FXCM LLC, David Sakhai, William
Ahdout, Kenneth Grossman, Michael Romersa, and Edward Yusupov.
Reorganized Refco Group Ltd. holds a 35% equity interest in
Forex Capital Markets, LLC. Pursuant to Refco's confirmed
Chapter 11 Plan, RJM has authority to exercise Refco's rights in
respect of RGL's 35% interest in FXCM, including all rights
related to its liquidation or disposition.
The sale of RGL's interest is subject to the requirement that
certain claims against the Refco parties and RCM be resolved.
The Settlement Agreement provides that:
a. The Plan Administrators will seek Court approval allowing
the claims filed by the FXCM Parties:
1. Claim No. 9140, to be allowed as a Class 6 FXA
Convenience Class Claim for US$3,290.87 under the
Plan;
2. Claim No. 9870, to be allowed as a Class 5(a) FXA
General Unsecured Claim for US$8,281,529.63;
3. Claim No. 9871, to be allowed as a Contributing Debtor
Class 5(a) General Unsecured Claim for
US$8,281,529.63.
b. The Plan Administrators ask Court to expunge FXCM
Parties' 31 other claims -- Claim Nos. 6629, 6630, 6631,
6632, 6633, 6634, 6635, 6636, 6637, 7564, 7566, 7568,
7569, 7570, 7571, 7572, 14268, 14269, 14270, 14271,
14272, 14273, 14274, 14275, 14276, 14427, 14428, 14429,
14430, 14431, 14432.
Jeffrey M. Olinsky, Esq., at Bingham McCutchen LLP, in New York,
told the Court the Plan Administrators have carefully reviewed
the claims filed by the FXCM Parties, as well as the books and
records of the Reorganized Debtors and RCM as they relate to the
claims. The Plan Administrators believe that Claim Nos. 9140,
9870 and 9871 are properly allowable at the amounts set, and the
rest of the FXCM Parties' claims should be expunged. Mr.
Olinsky said the FXCM Parties agree that the 31 other claims
should be expunged. "Expunging these other claims will
eliminate 31 claims against the Reorganized Debtors' and RCM's
estates that seek damages based on alleged fraudulent conduct of
the Debtors," he said.
Mr. Olinsky noted the Agreement would result in proceeds from
the sale of RGL's 35% equity interest in FXCM becoming
available for distribution to creditors of the Contributing
Debtors.
The Court approved the Settlement Agreement in December.
A full-text copy of the FXCM Settlement Agreement is available
for free at http://bankrupt.com/misc/FXCMsettlementAgreement.pdf
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives. Refco has
operations in Bermuda.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its direct and indirect subsidiaries,
including Refco Capital Markets Ltd. and Refco F/X Associates
LLC, on Dec. 15, 2006. That Plan became effective on
Dec. 26, 2006.
Refco Commodity's exclusive period to file a chapter 11 plan
expired on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 76
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
REFCO INC: SPhinX Liquidators Want Protective Order Eased
---------------------------------------------------------
Kenneth M. Krys and Christopher Stride, in their capacity as the
Joint Official Liquidators of SPhinX, Ltd., SPhinX Macro Fund,
SPhinX Managed Futures Fund SPC, et al., ask the U.S. Bankruptcy
Court for the Southern District of New York to modify a
protective order dated April 26, 2006, and amended on
March 19, 2007, governing the use of certain confidential
material.
SPhinX seeks to allow Marc S. Kirschner, as Plan Administrator
for Refco Capital Markets, Ltd., and at the same time, as Refco
Litigation Trustee, to produce certain documents.
On behalf of the SPhinX Liquidators, David J. Molton, Esq., at
Brown Rudnick Berlack Israels LLP, in New York, relates that the
Protective Order was issued with respect to the documents
gathered at the Refco examiner's investigation of the Debtors'
Chapter 11 cases. The Protective Order allows disclosure of
confidential documents if the producing party consents, or if
the Court issues an order.
According to Mr. Molton, certain parties transferred hundreds of
millions of dollars in SPhinX assets from Refco, LLC, to RCM,
where it comingled with the assets RCM and its other customers.
A discovery is being held at the Grand Court of the Cayman
Islands investigating the facts, circumstances, and events that
led to the collapse of SPhinX, Mr. Molton says. Under a Court-
approved settlement agreement between the parties, Mr. Kirschner
will "not oppose any attempt by the Joint Official Liquidators
to obtain relief from any confidentiality restrictions."
Mr. Molton maintains that the information sought by SPhinX is
critical to the Cayman Court investigation of the assets,
liabilities and financial affairs of the SPhinX Funds.
Ernst & Young, et al., Object
Seven objecting parties separately ask U.S. Bankruptcy Judge
Robert D. Drain to refrain from amending the protective order
governing the use of certain confidential materials.
The parties are:
-- Ernst & Young LLP;
-- Credit Suisse Securities (USA) LLC, formerly known as
Credit Suisse First Boston LLC), Banc of America
Securities LLC, Deutsche Bank Securities Inc., Goldman,
Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, J.P. Morgan Securities Inc., Sandler O'Neill
& Partners, L.P. and HSBC Securities (USA) Inc.;
-- Thomas H. Lee Partners, L.P.;
-- Grant Thornton LLP;
-- PricewaterhouseCoopers;
-- Arthur Andersen LLP; and
-- Bank fur Arbeit und Wirtschaft und Osterreichische
Postparkasse Aktiengesellschaf.
According to the Objecting Parties, the SPhinX Liquidators are
seeking to obtain pre-litigation discovery that Bankruptcy
Judge James M. Peck has already denied other Sphinx Funds
representatives in In re PlusFunds Group, Inc.
The Objecting Parties assert that the SPhinX Liquidators are
pursuing effectively the same request, for the same stated
reasons, and through the same counsel, which the Sphinx Trust
asserted and lost in the PlusFunds bankruptcy case.
Ernst & Young tells Judge Drain that it has no direct connection
to SPhinX or their estates, except for the tax work Ernst &
Young performed for certain Debtors in the tax year 2002. Ernst
& Young adds that the SPhinX Liquidators did not explain how its
preparation of the Debtors' tax returns could have affected
SPhinX Funds.
The SPhinX Liquidators seek pre-litigation access to
confidential documents in which they are fundamentally
disinterested, Ernst & Young contends. He also notes that that
the extensive existing record of Refco Inc. examiner's
investigation are publicly available, enabling the SPhinX
Liquidators to evaluate their potential claims.
Furthermore, the Underwriters, Credit Suisse et al., argue that
the Motion exceeds the scope of Rule 2004 of the Federal Rules
of Bankruptcy Procedure and Section 1521 of the Bankruptcy Code.
Rule 2004 limits any examination only to the acts, conduct, or
property or to the liabilities and financial condition of the
debtor, or to any matter which may affect the administration of
the debtor's estate, or to the debtor's right to a discharge.
Section 1521(a)(4) provides for discovery concerning the
debtor's assets, affairs, rights, obligations or liabilities.
The Underwriters, together with TH Lee, Grant Thornton, Arthur
Andersen, and PwC, argue that the Foreign Representatives seek
information that has nothing to do with the Sphinx Funds'
assets, affairs, rights, obligations or liabilities. They
further stated that Judge Peck had found, in the PlusFunds
proceeding, that the Sphinx Trustee did not need any further
document production to determine any causes of action against
third parties, and that any additional document discovery should
occur pursuant to the Federal Rules.
Grant Thornton also states that it opposes the Motion, but if
the Court permits Marc S. Kirschner, as Refco Capital Markets,
Ltd. Plan Administrator and Refco Litigation Trustee, to produce
any documents, the SPhinX Liquidators should be subject to the
same confidentiality restrictions as applied to Mr. Kirschner
and the Refco Examiner.
Meanwhile, Arthur Andersen LLP tells Judge Drain that its work
for Refco predates SPhinX Funds' existence.
BAWAG argues that it is inappropriate to lift the protections
afforded to the producing parties to SPhinX Funds, a non-estate,
non-fiduciary party, simply because it alleges possible claims
against parties in Refco's bankruptcy case.
Additionally, BAWAG maintains that the relief requested has no
direct connection to the proceedings in the Grand Court of the
Cayman Islands.
SPhinX Liquidators Talk Back
The SPhinX Liquidators tell Judge Drain that the information
they seek regarding SphinX's funds at RCM, and the redemptions
of investments in SPhinX Funds through Refco's related entities
during 2005 and 2006, is "absolutely critical" to the
investigation of the SPhinX Funds assets, liabilities and
financial affairs, and the determination of the rights and
remedies that they may pursue on behalf of the SPhinX Funds.
The SPhinX Liquidators state that the Objections contain two
common threads:
-- the discovery exceeds the proper scope of discovery under
Rule 2004 and Section 1521; and
-- the discovery was previously determined to be improper by
Judge Peck in PlusFunds' bankruptcy case.
With regard to scope, the SPhinX Liquidators insist that they
are acting in accordance with a Settlement Agreement with Mr.
Kirschner, allowing them to seek the proposed discovery.
Moreover, the SPhinX Liquidators assert that the proposed
discovery is closely related to SPhinX Funds' affairs, as
impacted by the unlawful transfer of SPhinX assets to non-
segregated accounts with RCM.
The SPhinX Liquidators maintain that close relationship between
SPhinX Funds claims, the Objecting Parties, and other Refco-
related entities, demonstrates that Judge Peck's holding in the
PlusFunds case are inapplicable to the SphinX Funds case, since
the PlusFunds claims are distinct from the SphinX Funds claims.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives. Refco has
operations in Bermuda.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its direct and indirect subsidiaries,
including Refco Capital Markets Ltd. and Refco F/X Associates
LLC, on Dec. 15, 2006. That Plan became effective on
Dec. 26, 2006.
Refco Commodity's exclusive period to file a chapter 11 plan
expired on Feb. 13, 2007. (Refco Bankruptcy News; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
SOLAR ENTERPRISES: Sets Final Shareholders Meeting for March 10
---------------------------------------------------------------
Solar Enterprises Limited will hold its final shareholders
meeting on March 10, 2008, at 9:30 a.m., at Messrs. Conyers Dill
& Pearman, Clarendon House, Church Street, Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
=============
B O L I V I A
=============
COEUR D'ALENE: Resumes Pre-Commissioning at San Bartolome Mine
--------------------------------------------------------------
Coeur d'Alene Mines Corporation has begun pre-commissioning
activities at its San Bartolome silver mine, which is expected
to produce over ten million ounces of silver during its first
twelve months of full-scale operations.
All major plant equipment at San Bartolome is now in place. The
Company expects the processing facilities to be connected to the
national electrical grid during the second half of February, at
which point full commissioning of the crushers and mills will
commence. Processing of ore is expected to begin during the
second half of March. Production and plant utilization will
then steadily increase with full plant capacity anticipated to
be reached in August.
"In reaching the finish line at the San Bartolome silver mine,
we are very pleased to report the success in completing this
world-class project while maintaining the highest standards of
safety, quality of construction, and adherence to cost and
scheduling," said Dennis E. Wheeler, Chairman, President and
Chief Executive Officer. "Over 1,600 workers, almost all of
them Bolivians, have done an excellent job in constructing what
will be the world's largest pure silver mine, surpassing
over 3.7 million man hours without a lost time accident, a truly
remarkable achievement given the size and scope of this state-
of-the-art facility. Coeur is proud of the strong community,
government and economic relationships we have developed with the
people and organizations of Potosi and Bolivia, and the Company
is excited about placing the mine into production and generating
value for all stakeholders."
Overview of Key Mine Metrics:
-- Expected silver production during remainder of 2008 of
over six million ounces
-- Operating cash costs once plant reaches full-scale
operations in August through the end of the year are
expected to be US$4.10 per ounce of silver (excluding
royalties and production taxes of US$2.03 per ounce)
-- Over ten million ounces of silver production during the
first twelve months of full-scale operations
-- 153.0 million ounces of silver mineral reserves and 34.2
million ounces of additional indicated mineral resource
-- Estimated mine life of 14 years
About Coeur d'Alene
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's B- rating.
* BOLIVIA: Inks Loan Pact With World Bank to Finance 5 Projects
---------------------------------------------------------------
The Government of Bolivia and the World Bank have signed a
US$77.5 million loan agreement to finance five projects in the
areas of education, agricultural development, rural investment,
sustainable development, and natural disaster prevention that
will create opportunities for and improve the quality of life of
the poorest sectors of the population.
The loan agreement was signed at World Bank headquarters by
Bolivia's Ambassador to the US, Mario Gustavo Guzman, and by
Carlos Felipe Jaramillo, World Bank Director for Bolivia,
Ecuador, Peru, and Venezuela, in a ceremony attended by Felix
Alberto Camaraza, World Bank Executive Director for Bolivia.
"The Government of Bolivia is committed to the poorest sectors
of its population and the World Bank's support is based on a
dialogue grounded in the country's development priorities as
defined in the National Development Plan of President Evo
Morales' administration," said Bolivian Ambassador Mario Gustavo
Guzman.
The agreement includes:
-- US$20 million for the Second Participatory Rural
Investment Project;
-- US$20 million for the Lake Titicaca Local Sustainable
Development Project;
-- US$15 million for the Land for Agricultural Development
Project;
-- US$10 million for the Municipality of La Paz Secondary
Education Transformation Project; and
-- US$12.5 million for the Prevention and Management of
Natural Disasters Project.
"Bolivia has improved the quality of life of its population as
well as access to basic services and social indicators.
However, the country still faces poverty and inequality
challenges, and we are proud to be the Government's partner and
to work together to solve them," said Carlos Felipe Jaramillo.
The Second Participatory Rural Investment Project covers 182
municipalities, 71 of which will receive support for improving
rural transport links, while the remaining 111 will receive more
integral support covering all aspects of productivity. These
111 municipalities were chosen because of their high poverty
levels, job creation potential, and high share of indigenous
population. An estimated 14 percent of the Bolivian population
lives in this area, including more than 4,000 rural communities
belonging to the Aymara, Quechua, Guarani, Chiquitano, and
Mojeno people. The Project is expected to serve at least
230,000 people and 38,600 households.
The Lake Titicaca Local Sustainable Development Project will be
used to promote tourism, protect the area's archeological and
cultural heritage, provide basic services to the local
population, and strengthen local government management
capacity. The proposed measures aim to mitigate the severe
water pollution that results from debris and waste being thrown
into the lake by the surrounding communities.
The Land for Agricultural Development Project will establish a
decentralized land distribution system that allows organized
landless or poor farmers to acquire agricultural lands and
implement investment subprojects that will help them to
improve their income and living standards. The project will
benefit around 2,200 poor rural families, which represents
roughly 20 percent of the total number of families nationwide
that have requested land allocations from the Government. It
targets a mostly indigenous group of extremely poor people in
the eastern lowlands, one of Bolivia's most productive regions.
The Municipality of La Paz Secondary Education Transformation
Project will support the La Paz Municipal Government's education
strategy by increasing access to secondary education for
adolescents and young people and improving their permanence
in the education system. The loan will also help to improve the
quality and relevance of primary and secondary education and to
strengthen the decentralized education management capacity of
the Municipality.
The Prevention and Management of Natural Disasters Project will
be used to considerably improve the government's capacity to
respond to natural disasters, and will include components such
as damage prevention and mitigation, infrastructure
reconstruction, and rehabilitation of the extensive affected
areas. Among other activities, the project will finance smaller
schemes such as school repair, housing, health clinics, bridges,
roads, and irrigation systems, as well as building dykes on
riverbanks and constructing filtering tunnels and all the works
necessary to protect inhabitants of the five most vulnerable
areas.
* * *
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 C
short-term sovereign local and foreign currency ratings on
Bolivia.
===========
B R A Z I L
===========
BLOUNT INT'L: Sept. 30 Balance Sheet Upside-Down by US$78.1 Mil.
----------------------------------------------------------------
Blount International Inc.'s consolidated balance sheet at
Sept. 30, 2007, showed US$472.4 million in total assets and
US$550.5 million in total liabilities, and US$78.1 million in
total stockholders' deficit.
The company reported net income of US$9.4 million for the third
quarter ended Sept. 30, 2007, compared with net income of
US$15.1 million in the same period of 2006.
Sales for the company for the third quarter increased to
US$166.9 million or 1.7% from last year's third quarter. Sales
for the company's Outdoor Products segment increased by 9.5%
from last year's third quarter to more than offset a 14.7%
decline in the Industrial and Power Equipment Segment.
Operating income was US$22.6 million in this year's third
quarter compared to US$18.7 million last year. Last year's
third quarter operating income included non-recurring charges of
US$4.8 million related to the redesign of the company's
retirement plans and the closure of a manufacturing facility.
Income from continuing operations in this year's third quarter
was US$9.4 million, compared to US$10.1 million in the
comparable period last year. This year's income from continuing
operations includes income tax expense of US$5.7 million
compared to an income tax benefit of US$640,000 last year, when
the company recognized the impact of certain tax planning
strategies.
Commenting on the company's results, James S. Osterman, chairman
and chief executive officer, stated: "Third quarter sales for
our Outdoor Products segment increased solidly from last year as
we experienced strong growth in key international markets. This
top line growth resulted in a slight improvement to segment
contribution despite continued margin pressure caused by a
further strengthening of the Canadian and Brazilian currencies.
We ended the third quarter with a good order backlog in the
Outdoor Products segment and expect to continue to experience
year over year sales growth through the fourth quarter."
Total Debt
Total debt at Sept. 30, 2007, was US$355.0 million compared to
US$350.9 million at Dec. 31, 2006. As of Sept. 30, 2007,
outstanding debt consisted of a revolving credit facility
balance of US$32.3 million, a term loan of US$147.8 million and
senior subordinated notes of US$175.0 million.
Full-text copies of the company's consolidated financial
statements for the quarter ended Sept. 30, 2007, are available
for free at http://researcharchives.com/t/s?27f2
About Blount International
Blount International Inc. (NYSE: BLT) -- --
is a diversified international company operating in two
principal business segments: Outdoor Products and Industrial and
Power Equipment. The company's Outdoor Products segment
provides chain, bars and sprockets to the chainsaw industry,
accessories to the lawn care industry and concrete cutting saws.
Blount manufactures its products in the United States, Canada,
China, and Brazil, and sells them in more than 100 countries.
FIAT SPA: Sees no Slowdown in Global Demand
-------------------------------------------
Fiat S.p.A. expects no decrease in global demand despite the
current financial market upheaval, Reuters reports citing
company CEO Sergio Marchionne.
"Most companies that are in this sector have not yet shown the
slightest slowdown in industrial development," Mr. Marchionne
was quoted by Reuters as saying. "We do not see any negative
impact on market demand."
Mr. Marchionne added that the company is experiencing weak local
demand, which the CEO is "understandable" due to the tax
incentives problem.
About Fiat S.p.A.
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial
groups in Italy and the fourth largest European-based automobile
manufacturer, with revenues of EUR33.4 billion in the first nine
months of 2005. Fiat's creditors include Banca Intesa, Banca
Monte dei Paschi di Siena, Banca Nazionale del Lavoro,
Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat operates in Argentina, Australia, Austria, Belgium, Brazil,
Bulgaria, China, Czech Republic, Denmark, France, Germany,
Greece, Hungary, India, Ireland, Italy, Japan, Lituania,
Netherlands, Poland, Portugal, Romania, Russia, Singapore,
Spain, among others.
* * *
As reported on Nov. 6, 2007, Moody's Investors Service changed
the outlook on Fiat S.p.A. and subsidiaries' Ba3 Corporate
Family Rating to positive from stable and affirmed its Ba3 long-
term senior unsecured ratings as well as the short-term non-
Prime rating.
On Oct. 4, 2007, Fitch Ratings affirmed Fiat S.p.A.'s Issuer
Default and senior unsecured ratings at BB- and Short-term
rating at B.
The company carries Standard & Poor's Ratings Services' BB long-
term corporate credit rating. The compay also carries B short-
term rating. S&P said the outlook is stable.
FORD MOTOR: Plans to Offer Buyout Packages to 9,000 Workers
-----------------------------------------------------------
Ford Motor Co. intends to offer another round of buyout packages
to 14% of its entire plant workforce in North America to restore
profitability, Bloomberg News reports citing a source familiar
with the matter. Roughly 9,000 workers will be displaced in
addition to 33,000 employees who availed the compensation
packages in 2006 and 2007.
Last month, United Auto Workers union representatives and the
automaker agreed to compensation offers higher than those
offered in 2006, including an education package, health benefits
and a lump sum payment, according to Bryce G. Hoffman of the
Detroit News. Pursuant to the agreement, an additional
US$35,000 will be given to qualified retirees as they leave, the
payout totaling US$70,000.
As reported in the Troubled Company Reporter on Feb. 5, 2008,
total Ford sales in January, including Jaguar, Land Rover, and
Volvo, were 159,914, down 4%.
"It's not going to get any easier -- at least for awhile," Jim
Farley, Ford's group vice president, Marketing and
Communications, said. "Recent monetary actions and the proposed
stimulus package may help the economy later this year, but we're
not pinning our hopes on that. Our plan is based on
restructuring our business to be profitable at lower demand and
changed mix while also accelerating the development of new
products people want to buy."
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-Latin America on
Nov. 19, 2007, Moody's Investors Service affirmed the long-term
ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured, and B3 probability of
default), but changed the rating outlook to Stable from Negative
and raised the company's Speculative Grade Liquidity rating to
SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit
Company's B1 senior unsecured rating, and changed the outlook to
Stable from Negative. These rating actions follow Ford's
announcement of the details of the newly ratified four-year
labor agreement with the UAW.
FORD MOTOR: Tells Plastech Court Carmakers Can Recover Tooling
--------------------------------------------------------------
Rival carmakers General Motors Corp. and Ford Motor Co. appeared
before the U.S. Bankruptcy Court for the Eastern District of
Michigan Wednesday to support Chrysler LLC'S request to recover
its tooling equipment from Plastech Engineered Products Inc. and
its debtor-affiliates' plants, The Associated Press says.
AP's Dee-Ann Durbin reports that spokesperson for GM and Ford as
well as for auto supplier Johnson Controls Inc. told the Court
they believe they have the right to reclaim their own equipment
under their contracts with Plastech.
"GM is not taking a position regarding whether the court should
grant Chrysler the relief it is seeking," GM spokesman Frank
Sopata said, according to AP. "But GM does strongly support
Chrysler's position regarding the tooling since we have entered
into the same agreement as Chrysler and the other major
customers of Plastech to reclaim our tooling should it be
necessary."
Ford and GM haven't experienced any disruption in their supply
from Plastech or reported any quality problems, AP says.
"We've continued to work with them all along," Ford spokesman
Todd Nissen told the Court, AP relates.
AP notes that GM Chief Financial Officer Fritz Henderson said
Tuesday that GM hasn't made any decisions about whether to keep
doing business with Plastech but is trying to help the supplier.
"We're working constructively with them to help them with their
current financial difficulties," he said.
Chrysler-Plastech Dispute
Honorable Phillip J. Shefferly began yesterday a two-day trial
to consider the merits of Chrysler's request. The Court was
also set to consider Chrysler's motion for a temporary
restraining order that would allow Chrysler or its agents to
enter Plastech's plants and obtain possession of the equipment.
Chrysler and Plastech have temporarily resolved their dispute by
entry of an interim agreement which provides that:
i) Plastech will continue delivering component parts to
Chrysler until Feb. 15, 2008; and
ii) Plastech will allow Chrysler supervised access to Plastech
facilities for purposes of inventory and inspection.
Revenues Could Plummet
Absent Tooling Equipment
The Debtors, however, oppose Chrysler's request for lifting of
the automatic stay under Section 362(d)(1) that would allow it
to take possession of the Tooling.
Chrysler wants possession of the Tooling so that it could
transfer manufacturing of component parts to other parties.
Plastech notes that Chrysler accounts for about $200,000,000 of
its annual revenues. Thus, if Chrysler's proposal is granted,
the Debtors would immediately lose approximately 15% of their
annual revenues. This would occur when the Debtors' business is
most vulnerable, the first two weeks of their Chapter 11 cases,
avers Peter Smidt, executive vice president for Finance and
chief
financial officer of the Debtors.
Deborah L. Fish, Esq., at Allard & Fish, P.C., in Detroit,
Michigan, says that Chrysler is stayed by the Bankruptcy Code
from taking possession of the Tooling. Ms. Fish contends that
pursuant to Section 362(a)(3) of the Bankruptcy Code:
-- Chysler is prohibited from taking unpaid tooling, which
pursuant to their Financial Accommodation Agreements, are
property of the estate. Section 362(a)(3) prohibits
taking any action against estate property. The Debtors
are also under no obligation to sell the unpaid tooling
to Chrysler under the FFAs.
-- Chrysler is prohibited from taking possession of any
Tooling it owns but in the possession, custody and
control of the Debtors. Regardless of who legally owns
the Tooling, any Tooling in the possession of the Debtors
may only be removed upon a modification of the automatic
stay.
Sufficient cause does not exist to modify the automatic stay
under Section 362(d), Ms. Fish asserts. She argues that:
-- The Debtors' and creditors' interests in prohibiting
Chrysler from seizing any owned tooling substantially
outweigh any harm that Chrysler might suffer if the stay
is not lifted. Plastech will lose business if equipment
are removed from their plants. On the other hand,
Chrysler will suffer, "at most, financial damages, which
damages were self-inflicted and not legally cognizable."
-- Chrysler is not likely to prevail on the merits of
its underlying claims.
Ms. Fish notes that to grant a temporary restraining order or
modify the automatic stay, the Court must also conclude that
Chrysler has a substantial likelihood of prevailing on its
underlying claims, all of which are premised on two contentions:
i. that Chrysler properly terminated the Supply Agreements
on February 1, 2008; and
ii. that Chrysler owns the Tooling.
The Debtors say that they will demonstrate at the hearing that
Chrysler is not likely to prevail on either contention. Ms.
Fish argues that:
(a) Chrysler's notices were ineffective. Notices or letters
sent by Chrysler on Jan. 15 and 16, and Feb. 1, which
purportedly terminated the supply agreements, were not
sent to the proper notice parties, which include the
Debtors' other customers. In addition, the notices were
"simply impermissibly vague" and, thus, did not trigger
Plastech's 10-day obligation to cure defaults under the
agreements.
(b) Plastech timely cured certain of the alleged defaults and
Chrysler is estopped from asserting others. Within two
weeks following the January Notices, Plastech had cured
or was on the verge of curing the alleged defaults
regarding its financial condition and accommodation
requests.
(c) Chrysler is not likely to prevail on the merits of its
contention that it could terminate the supply agreements
for breach. Among other things:
-- Plastech is not in breach of any quality obligation,
-- Plastech is not in breach of any obligation to pay
tooling suppliers and provide verification,
-- Plastech has not breached any quality issues
requiring third-party inspection,
-- Plastech's request to advance payables did not
constitute a breach, and
-- Plastech's planned closures of certain facilities
did not constitute any breach.
Ms. Fish adds that Chrysler is not likely to show that the
tooling is owned by Chrysler and held by the Debtors under
Article 7 Of The Michigan Uniform Commercial Code. She avers
that Chrysler did not and, indeed, cannot establish that a
bailment relationship exists between itself and the Debtors.
Previously, the Debtors refuted Chrysler's assertions that it
will suffer significant harm absent a lifting of the stay. "Any
harm to Chrysler was self-inflicted," the Debtors' proposed
counsel, Gregg M. Galardi, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, in Wilmington, Delaware, asserted. "Any
harm to Chrysler is not irreparable," he added.
Plastech also asserted that even if the stay is lifted, it could
take weeks, even months, for the equipment to be removed from
the Debtors' facilities and be set up in another facility.
Granting Chrysler's request, Mr. Galardi argued, would reward
Chrysler for acting precipitously at a time when the Debtors
efforts need to be, and indeed were, focused elsewhere
in an effort to maximize the value of their estates for the
benefit of all creditors.
Other Objections
Tri-Way Mfg., Inc., doing business as Tri-Way Mold &
Engineering, which holds a lien on the molds Chrysler seeks to
recover, wants Chrysler's lift stay request denied, absent the
satisfaction of Tri-Way's statutory liens.
In addition, H.S. Die & Engineering, Inc. and H.S. Die Rantoul
Mold Services, LLC, which manufacture and supply Plastech with
tools, dies and molds, including the Molds Chrysler seeks to
recover, also objected to Chrysler's request.
H.S. Die asserted that granting the lift stay request would
entitle Chrysler to take possession or exercise any rights as to
the Tools, which is subject to certain liens held by H.S. Die.
H.S. Die is the Debtors' largest general unsecured creditor with
a $6,360,328 claim according to papers filed at the time of
their bankruptcy filing.
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 on Nov. 12, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Chrysler LLC and DaimlerChrysler Financial
Services Americas LLC and removed it from CreditWatch with
positive implications, where it was placed Sept. 26, 2007. S&P
said the outlook is negative.
About Plastech Engineered
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.
An Official Committee of Unsecured Creditors has been appointed
in the Debtors' cases.
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 and 5;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries. In 2007, nearly 9.37 million GM cars
and trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on Nov. 9, 2007,
Moody's Investors Service affirmed its rating for General Motors
Corporation (B3 Corporate Family Rating, Ba3 senior secured,
Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity
rating) but changed the outlook to Stable from Positive. In an
environment of weakening prospects for US auto sales GM has
announced that it will take a non-cash charge of $39 billion for
the third quarter of 2007 related to establishing a valuation
allowance against its deferred tax assets (DTAs) in the US,
Canada and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
in 200 markets across six continents. With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company
provides financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom. The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter 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.
GENERAL MOTORS: Inviting Ex-Guide Workers to Apply at Plants
------------------------------------------------------------
The Associated Press reports that 400 employees from the
shuttered Guide Corp. plant in Anderson, Indiana, were told by
letter that they were qualified to apply at a General Motors
Corp. assembly plant in Fairfax, Kansas by Friday,
Jan. 15, 2008. The GM plant has 300 vacancies.
Headquartered in Southfield, Michigan, Guide Corporation is a
North American supplier of exterior automotive lighting systems,
including both forward and signal lighting.
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2007, nearly 9.37 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's
OnStar subsidiary is the industry leader in vehicle safety,
security and information services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service affirmed its rating for
General Motors Corporation (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured and SGL-1 Speculative
Grade Liquidity rating) but changed the outlook to Stable from
Positive. In an environment of weakening prospects for US auto
sales GM has announced that it will take a non-cash charge of
US$39 billion for the third quarter of 2007 related to
establishing a valuation allowance against its deferred tax
assets (DTAs) in the US, Canada and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
GENERAL MOTORS: Posts Net Loss of US$38.7 Billion in 2007
---------------------------------------------------------
General Motors Corp. reported a 2007 calendar-year adjusted net
loss, excluding special items, of US$23.0 million. This
compares to adjusted net income of US$2.2 billion in 2006, as
significantly improved automotive performance was offset by
large losses at GMAC.
Including special items, the company reported a loss of US$38.7
billion for the year, compared to a reported loss of US$2.0
billion in 2006. The loss is almost entirely attributable to
the non-cash US$38.3 billion special charge in the third quarter
related to the valuation allowance against deferred tax assets.
The loss is believed to be the largest annual loss ever by an
auto maker, The Wall Street Journal's John D. Stoll says.
In the fourth quarter 2007, GM posted adjusted net income of
US$46.0 million, compared to adjusted net income of US$180.0
million in the year-ago period. Including special items, the
company reported a net loss of US$722.0 million in the fourth
quarter 2007, compared to net income of US$950.0 million in the
year-ago period.
GM's core automotive business generated record revenue of
US$178.0 billion in 2007, a US$7.0 billion improvement over
2006, aided by explosive growth in emerging markets and
favorable foreign exchange against a weaker U.S. dollar. In
total, GM generated US$181.0 billion in revenue in 2007,
compared with US$206.0 billion in 2006. The decrease versus
last year is due to the non-consolidation of GMAC revenue,
following GM's sale of
51.0% of GMAC in November of 2006.
"2007 was another year of important progress for GM, as we
implemented further significant structural cost reductions in
North America, grew aggressively in emerging markets, negotiated
an historic labor contract with our UAW partners in the U.S.,
advanced development of a broad range of advanced propulsion
technologies and most importantly, introduced a series of
breakthrough cars and trucks around the world," GM chairman and
chief executive officer Rick Wagoner said. "We're pleased with
the positive improvement trend in our automotive results,
especially given the challenging conditions in important markets
like the U.S. and Germany, but we have more work to do to
achieve acceptable profitability and positive cash flow,"
Wagoner added.
The fourth quarter results reflect a US$1.6 billion tax benefit
in continuing operations related to SFAS No. 109 guidelines for
intra-period tax allocations between continuing operations,
other comprehensive income and discontinued operations.
Special charges recorded in the fourth quarter totaled
US$768.0 million, including an US$805.0 million adjustment
principally related to a favorable tax item related to the gain
on the sale of Allison Transmission, which was offset by
US$622.0 million in charges associated with GM's support of
Delphi's restructuring efforts, US$552.0 million for pension
benefits provided to Delphi employees and retirees and US$290.0
million in other restructuring-related charges.
GM reported revenue of US$47.1 billion in the fourth quarter
versus US$50.8 billion in the year ago period, with the decline
more than accounted for by the exclusion of GMAC revenue
starting Dec. 1, 2006. Revenue from automotive operations
totaled US$46.7 billion in the quarter, a US$3.0 billion
increase over the prior year and a new quarterly revenue record,
reflecting strong growth in Latin America, Asia Pacific and
Eastern Europe.
GM Automotive Operations
GM's global automotive operations posted adjusted earnings
before tax of US$553.0 million in 2007, compared to an adjusted
loss before tax of US$339.0 million in 2006. In the fourth
quarter 2007, GM's automotive operations had an adjusted loss
before tax of US$803.0 million, compared to adjusted earnings
before tax of US$8.0 million in the year-ago quarter.
GM's worldwide vehicle sales increased 3.0%, or 277,000 units,
to 9.4 million vehicles in 2007, marking the second best year in
units sold in the company's 100-year history. For the third
consecutive year, a majority of the company's sales -- almost
60.0% -- were outside of the U.S. Record sales performance was
achieved in key growth markets throughout Eastern Europe, Latin
America and the Asia Pacific.
GM North America posted an adjusted loss before tax of
US$1.5 billion for 2007, compared to a loss before tax of
US$1.6 billion in the year-ago period, excluding special items.
GM North America had an adjusted loss before tax of
US$1.1 billion in the fourth quarter, compared to an adjusted
loss before tax of US$129.0 million in the fourth quarter 2006.
Losses for the year in GM North America were largely
attributable to a softer U.S. market, and the strategic actions
to reduce dealer inventory by approximately 150,000 units and
lower sales of daily rental vehicles by about 110,000 vehicles
in the U.S. High commodity prices, unfavorable foreign exchange
and lower unit sales exerted pressure on profitability, but were
more than offset by better product mix, stronger pricing, and
significantly reduced manufacturing and legacy costs. GM North
America also incurred higher engineering costs to support
continuing product and technology development activities.
"Our North America turnaround remains on track despite the weak
U.S. economy and continued high commodity prices," Wagoner said.
"The actions we've taken to further reduce structural costs and
strengthen our product lineup with great new vehicles like the
award-winning Chevrolet Malibu and Cadillac CTS are
fundamentally improving our ability to compete in the U.S. and
around the world. We're building a solid foundation for
continued growth and improved operating results," Wagoner added.
GM reached its structural cost reduction target of
US$9.0 billion in North America in 2007 versus 2005, a key part
of reducing global automotive structural cost as a percent of
revenue from 34.0% in 2005 to 29.7% in 2007. GM expects to
derive additional structural cost savings of US$4.0 billion to
US$5.0 billion by 2010 in the U.S. as it fully implements the
2007 GM-UAW contract, including the independent healthcare
trust. These savings will help GM reach its goal to reduce
structural cost as a percent of revenue to 25.0% of revenue by
2010, and further to 23.0% of revenue by 2012.
GM Europe posted its second consecutive year of adjusted
profitability in 2007 with earnings before tax of
US$55.0 million, down from earnings before tax of
US$357.0 million in 2006, excluding special items. For the
fourth quarter GM Europe posted an adjusted loss before tax of
US$215.0 million versus an adjusted loss before tax of
US$12.0 million in the year ago period. The decline in calendar
year and fourth quarter earnings were attributable primarily to
a markedly softer German market as well as unfavorable foreign
exchange rates. Other key areas of GM Europe's business
performed relatively well, including strong sales outside
Germany, increases in net pricing, and improvements in
structural and material cost performance.
GM Europe sales were up 8.9% in 2007 to a record 2.2 million
units, led by Chevrolet, up 34.0%, Opel/Vauxhall, up 4.3% nd
Cadillac up 31.0%. Strong demand for GM vehicles in the United
Kingdom, Ukraine, Italy, Greece and Russia -- where sales
doubled to 260,000 units -- made the company the fastest growing
major automobile manufacturer in Europe in 2007. Financial
results generated from the rapidly growing sales of GM Daewoo-
built Chevrolet vehicles in Europe are consolidated in Korea and
reflected in GM Asia Pacific results.
With a 19.0% increase in sales to a record 1.2 million units in
2007, GM Latin America, Africa, Middle East (GMLAAM) achieved a
record US$1.3 billion in adjusted earnings before tax for the
year, up 140.0% over 2006 adjusted earnings of US$561.0 million.
GMLAAM also set a sales record in the fourth quarter with
341,000 units, up 18.0% year over year, generating
US$424.0 million in adjusted earnings before tax, up from
US$76.0 million in the fourth quarter of 2006. Robust sales in
the GMLAAM region resulted in record revenue of US$18.9 billion
for the calendar year and US$6.0 billion in the fourth quarter.
The year-over-year gain in GMLAAM pre-tax earnings was largely
driven by strong volume growth, which outpaced industry growth,
as well as favorable price and mix. Robust sales contributed to
record GM sales in Argentina, Brazil, Chile, Colombia, Egypt and
Venezuela in 2007. Continued strong sales of the Chevrolet
Corsa, Aveo and Celta throughout the region were complemented by
the successful launch of several new entries, including the
Chevrolet Captiva in Latin America and Chevrolet Suburban and
Cadillac Escalade in the Middle East. Chevrolet sales in the
region were up 23.0% for the calendar year, and accounted for
90.0% of units sold in GMLAAM in 2007.
GMAP posted adjusted earnings before tax of US$744.0 million in
2007 compared to US$403 million for 2006. GMAP adjusted
earnings before tax for the fourth quarter were US$72.0 million,
compared to US$105.0 million in fourth quarter of 2006. The
calendar year earnings gain was driven by favorable volume and
mix, increased equity income from GM's China joint ventures and
improved operating performance at Holden. The results were
partially offset by increased structural cost increases
associated with continued investment in high growth markets and
lower Suzuki equity income resulting from the sale of a majority
of GM's equity in 2006.
GMAP had continued strong performance in China, where domestic
sales grew 18.5% in 2007 and GM, with its local partners, became
the first global automotive manufacturer to sell more than
1 million vehicles. In addition, GM sales in India rose 74.0%,
and export sales of the GM Daewoo products built in Korea
increased by 30.0% to 870,000 vehicles.
GMAC Posts US$2.3BB Net Loss in 2007
On a standalone basis, GMAC Financial Services reported a net
loss of US$2.3 billion in 2007, compared with net income of
US$2.1 billion in 2006. Profitable results in the global
automotive and insurance businesses were more than offset by the
significant loss at Residential Capital LLC. In the fourth
quarter, GMAC reported a net loss of US$724.0 million, compared
to net income of US$1.0 billion in the fourth quarter of 2006.
The effect on ResCap of the continued disruption in the
mortgage, housing and capital markets was the primary driver of
adverse performance.
GM reported a US$1.1 billion net loss attributable to GMAC, as a
result of its 49.0% equity interest and preferred dividends
received for the full year 2007, and a US$394.0 million reported
net loss for the fourth quarter.
While market conditions remain uncertain, GMAC has taken
aggressive actions in 2007 across all its businesses in an
effort to mitigate future risk, rationalize the cost structure
and position the company for growth. As a result, GMAC
currently expects to be profitable in 2008. GMAC's liquidity
position is at relatively high historical levels and GM believes
that GMAC remains adequately capitalized.
Cash and Liquidity
Cash, marketable securities and readily available assets of the
Voluntary Employees Beneficiary Association trust totaled
US$27.3 billion as of Dec. 31, 2007, up from US$26.4 billion as
of Dec. 31, 2006. GM ended the 2007 calendar year with negative
adjusted automotive operating cash flow of US$2.4 billion, a
significant US$2.0 billion improvement compared to 2006. It
marks the second consecutive year-over-year improvement in
operating cash flow for all four of GM's operating regions.
Consistent with past years, GM withdrew US$2.7 billion from the
VEBA in December, leaving a balance of US$16.3 billion at 2007
year-end, of which the UAW related portion is estimated at
US$14.5 billion. In negotiations with the UAW and UAW retiree
class counsel on a Settlement Agreement involving the healthcare
MOU that will shortly be filed with the court, the parties have
agreed in principle that of the US$18.5 billion that was agreed
to be set aside upfront for future retiree healthcare claims,
the difference of approximately US$4.0 billion will be funded
with a short term note maturing January 2010 with interest at
9.0%. This will enhance interim liquidity for GM and provide
the UAW and plan participants a 9.0% return.
The parties have also agreed in principle, as part of the
overall Settlement Agreement, to execute a series of derivatives
that would effectively reduce the conversion price of the
convertible note from US$40 to US$36, and would entitle GM to
recover the additional economic value provided if the GM stock
price appreciates to between US$63.48 and US$70.53 per share.
Future Outlook
Despite the uncertainty in the U.S. market, the company
disclosed that it expects improved pre-tax automotive earnings
in 2008 versus 2007, largely driven by continued strong
performance in emerging markets. GM expects improvements in
automotive revenue, favorable pricing, favorable material cost
performance and continued reductions in structural cost as a
percentage of revenue in the 2008 calendar year. Operating cash
flow is expected to be relatively flat in 2008 versus 2007,
despite planned increases in capital spending to about US$8.0
billion, up from US$7.5 billion in 2007.
GM remains confident in the 2010-2011 opportunities to further
improve earnings and cash flow. Most notable is the potential
to realize the full impact of the GM-UAW labor agreement which
is expected to provide significantly greater flexibility and
yield additional savings of US$4.0 billion to US$5.0 billion.
In addition, GM estimates that if the U.S. market volume returns
to trend levels in 2009 and beyond, which would be an increase
of 1 million units, the change would generate additional pre-tax
income to GM in the range of approximately US$1.0 billion to
US$1.5 billion annually.
GM also expects to reduce a substantial portion of the cost
premiums it has historically paid to Delphi for systems and
components over the next three to five years. The savings will
be offset by various labor and transitional subsidies of
US$300-400 million per year under Delphi's plan of
reorganization, however GM expects to achieve annual net savings
over the mid-term of approximately US$500.0 million.
In addition, significant additional opportunities to further
improve GM earnings and cash flow by 2010-2011 include improved
pricing driven by a host of new products, continued strong
growth in revenue and profitability in emerging markets, and
improved performance at GMAC.
Balance Sheet
At Dec. 31, 2007, the company's consolidated balance sheet
showed US$148.9 billion in total assets, US$184.4 billion in
total liabilities, and US$1.6 billion in commitments and
contingencies Minority interests, resulting in a US$37.1 billion
total stockholders' deficit.
The company's consolidated balance sheet at Dec. 31, 2007, also
showed strained liquidity with US$59.2 billion in total assets
available to pay US$70.8 billion in total current liabilities.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2007, nearly 9.37 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's
OnStar subsidiary is the industry leader in vehicle safety,
security and information services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service affirmed its rating for
General Motors Corporation (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured and SGL-1 Speculative
Grade Liquidity rating) but changed the outlook to Stable from
Positive. In an environment of weakening prospects for US auto
sales GM has announced that it will take a non-cash charge of
US$39 billion for the third quarter of 2007 related to
establishing a valuation allowance against its deferred tax
assets (DTAs) in the US, Canada and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
GENERAL MOTORS: Reaches Agreement with UAW on Attrition Program
---------------------------------------------------------------
General Motors Corporation disclosed in a regulatory filing with
the Securities and Exchange Commission dated Feb. 12, 2008, that
the company and the United Auto Workers union have reached an
agreement on a comprehensive special attrition program that will
be offered to all of GM's 74,000 UAW-represented employees.
The special attrition program offers employees a choice of
several pension and buyout incentives. GM is offering
retirement pension incentives of US$45,000 for production
employees or US$62,500 for skilled trades. Eligible employees
can select from a variety of ways to receive their incentive:
-- One time, lump-sum cash payment
-- Direct rollover into their GM 401(k) or into an Individual
Retirement Account (IRA)
-- Monthly annuity
-- Combination of partial lump-sum payment and direct rollover
into their GM 401(k) or an IRA
The other retirement and buyout options available are similar to
those offered to employees in 2006. These options include:
-- Mutually Satisfactory Retirement (MSR) for employees who
are at least 50 years old with 10 or more years of service.
This option provides a pension payment with full benefits.
-- Pre-Retirement Program in which employees with 26, 27, 28
or 29 years of service can grow into a full "30 and out"
retirement. Until they reach 30 years of credited service,
participating employees would receive fixed monthly payment
with full benefits.
-- Cash Buyout for employees who agree to voluntarily quit and
sever all ties with GM. A US$140,000 buyout incentive is
offered to employees with 10 or more years of credited
service or seniority, while a US$70,000 buyout incentive is
offered to employees with less than 10 years of credited
service or seniority.
In December 2007, GM and the UAW reached an agreement on what
the company was calling the first phase of a comprehensive
special attrition program. Details of this program were rolled
out to employees at select locations last month. Those
employees are now eligible for the enhanced provisions of this
new agreement.
"We've worked with our UAW partners to ensure our employees have
a variety of options to consider," said Rick Wagoner, GM
chairman and chief executive officer. "The special attrition
program is an important tool that will help us transform the
workforce."
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2007, nearly 9.37 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's
OnStar subsidiary is the industry leader in vehicle safety,
security and information services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service affirmed its rating for
General Motors Corporation (B3 Corporate Family Rating, Ba3
senior secured, Caa1 senior unsecured and SGL-1 Speculative
Grade Liquidity rating) but changed the outlook to Stable from
Positive. In an environment of weakening prospects for US auto
sales GM has announced that it will take a non-cash charge of
US$39 billion for the third quarter of 2007 related to
establishing a valuation allowance against its deferred tax
assets (DTAs) in the US, Canada and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
GENERAL MOTORS: Tells Plastech Ct. Carmakers Can Recover Tooling
----------------------------------------------------------------
Rival carmakers General Motors Corp. and Ford Motor Co. appeared
before the U.S. Bankruptcy Court for the Eastern District of
Michigan Wednesday to support Chrysler LLC'S request to recover
its tooling equipment from Plastech Engineered Products Inc. and
its debtor-affiliates' plants, The Associated Press says.
AP's Dee-Ann Durbin reports that spokesperson for GM and Ford as
well as for auto supplier Johnson Controls Inc. told the Court
they believe they have the right to reclaim their own equipment
under their contracts with Plastech.
"GM is not taking a position regarding whether the court should
grant Chrysler the relief it is seeking," GM spokesman Frank
Sopata said, according to AP. "But GM does strongly support
Chrysler's position regarding the tooling since we have entered
into the same agreement as Chrysler and the other major
customers of Plastech to reclaim our tooling should it be
necessary."
Ford and GM haven't experienced any disruption in their supply
from Plastech or reported any quality problems, AP says.
"We've continued to work with them all along," Ford spokesman
Todd Nissen told the Court, AP relates.
AP notes that GM Chief Financial Officer Fritz Henderson said
Tuesday that GM hasn't made any decisions about whether to keep
doing business with Plastech but is trying to help the supplier.
"We're working constructively with them to help them with their
current financial difficulties," he said.
Chrysler-Plastech Dispute
Honorable Phillip J. Shefferly began yesterday a two-day trial
to consider the merits of Chrysler's request. The Court was
also set to consider Chrysler's motion for a temporary
restraining order that would allow Chrysler or its agents to
enter Plastech's plants and obtain possession of the equipment.
Chrysler and Plastech have temporarily resolved their dispute by
entry of an interim agreement which provides that:
i) Plastech will continue delivering component parts to
Chrysler until Feb. 15, 2008; and
ii) Plastech will allow Chrysler supervised access to Plastech
facilities for purposes of inventory and inspection.
Revenues Could Plummet
Absent Tooling Equipment
The Debtors, however, oppose Chrysler's request for lifting of
the automatic stay under Section 362(d)(1) that would allow it
to take possession of the Tooling.
Chrysler wants possession of the Tooling so that it could
transfer manufacturing of component parts to other parties.
Plastech notes that Chrysler accounts for about $200,000,000 of
its annual revenues. Thus, if Chrysler's proposal is granted,
the Debtors would immediately lose approximately 15% of their
annual revenues. This would occur when the Debtors' business is
most vulnerable, the first two weeks of their Chapter 11 cases,
avers Peter Smidt, executive vice president for Finance and
chief
financial officer of the Debtors.
Deborah L. Fish, Esq., at Allard & Fish, P.C., in Detroit,
Michigan, says that Chrysler is stayed by the Bankruptcy Code
from taking possession of the Tooling. Ms. Fish contends that
pursuant to Section 362(a)(3) of the Bankruptcy Code:
-- Chysler is prohibited from taking unpaid tooling, which
pursuant to their Financial Accommodation Agreements, are
property of the estate. Section 362(a)(3) prohibits
taking any action against estate property. The Debtors
are also under no obligation to sell the unpaid tooling
to Chrysler under the FFAs.
-- Chrysler is prohibited from taking possession of any
Tooling it owns but in the possession, custody and
control of the Debtors. Regardless of who legally owns
the Tooling, any Tooling in the possession of the Debtors
may only be removed upon a modification of the automatic
stay.
Sufficient cause does not exist to modify the automatic stay
under Section 362(d), Ms. Fish asserts. She argues that:
-- The Debtors' and creditors' interests in prohibiting
Chrysler from seizing any owned tooling substantially
outweigh any harm that Chrysler might suffer if the stay
is not lifted. Plastech will lose business if equipment
are removed from their plants. On the other hand,
Chrysler will suffer, "at most, financial damages, which
damages were self-inflicted and not legally cognizable."
-- Chrysler is not likely to prevail on the merits of
its underlying claims.
Ms. Fish notes that to grant a temporary restraining order or
modify the automatic stay, the Court must also conclude that
Chrysler has a substantial likelihood of prevailing on its
underlying claims, all of which are premised on two contentions:
i. that Chrysler properly terminated the Supply Agreements
on February 1, 2008; and
ii. that Chrysler owns the Tooling.
The Debtors say that they will demonstrate at the hearing that
Chrysler is not likely to prevail on either contention. Ms.
Fish argues that:
(a) Chrysler's notices were ineffective. Notices or letters
sent by Chrysler on Jan. 15 and 16, and Feb. 1, which
purportedly terminated the supply agreements, were not
sent to the proper notice parties, which include the
Debtors' other customers. In addition, the notices were
"simply impermissibly vague" and, thus, did not trigger
Plastech's 10-day obligation to cure defaults under the
agreements.
(b) Plastech timely cured certain of the alleged defaults and
Chrysler is estopped from asserting others. Within two
weeks following the January Notices, Plastech had cured
or was on the verge of curing the alleged defaults
regarding its financial condition and accommodation
requests.
(c) Chrysler is not likely to prevail on the merits of its
contention that it could terminate the supply agreements
for breach. Among other things:
-- Plastech is not in breach of any quality obligation,
-- Plastech is not in breach of any obligation to pay
tooling suppliers and provide verification,
-- Plastech has not breached any quality issues
requiring third-party inspection,
-- Plastech's request to advance payables did not
constitute a breach, and
-- Plastech's planned closures of certain facilities
did not constitute any breach.
Ms. Fish adds that Chrysler is not likely to show that the
tooling is owned by Chrysler and held by the Debtors under
Article 7 Of The Michigan Uniform Commercial Code. She avers
that Chrysler did not and, indeed, cannot establish that a
bailment relationship exists between itself and the Debtors.
Previously, the Debtors refuted Chrysler's assertions that it
will suffer significant harm absent a lifting of the stay. "Any
harm to Chrysler was self-inflicted," the Debtors' proposed
counsel, Gregg M. Galardi, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, in Wilmington, Delaware, asserted. "Any
harm to Chrysler is not irreparable," he added.
Plastech also asserted that even if the stay is lifted, it could
take weeks, even months, for the equipment to be removed from
the Debtors' facilities and be set up in another facility.
Granting Chrysler's request, Mr. Galardi argued, would reward
Chrysler for acting precipitously at a time when the Debtors
efforts need to be, and indeed were, focused elsewhere
in an effort to maximize the value of their estates for the
benefit of all creditors.
Other Objections
Tri-Way Mfg., Inc., doing business as Tri-Way Mold &
Engineering, which holds a lien on the molds Chrysler seeks to
recover, wants Chrysler's lift stay request denied, absent the
satisfaction of Tri-Way's statutory liens.
In addition, H.S. Die & Engineering, Inc. and H.S. Die Rantoul
Mold Services, LLC, which manufacture and supply Plastech with
tools, dies and molds, including the Molds Chrysler seeks to
recover, also objected to Chrysler's request.
H.S. Die asserted that granting the lift stay request would
entitle Chrysler to take possession or exercise any rights as to
the Tools, which is subject to certain liens held by H.S. Die.
H.S. Die is the Debtors' largest general unsecured creditor with
a $6,360,328 claim according to papers filed at the time of
their bankruptcy filing.
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 on Nov. 12, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Chrysler LLC and DaimlerChrysler Financial
Services Americas LLC and removed it from CreditWatch with
positive implications, where it was placed Sept. 26, 2007. S&P
said the outlook is negative.
About Plastech Engineered
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.
An Official Committee of Unsecured Creditors has been appointed
in the Debtors' cases.
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 and 5;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
in 200 markets across six continents. With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company
provides financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom. The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter 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.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries. In 2007, nearly 9.37 million GM cars
and trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on Nov. 9, 2007,
Moody's Investors Service affirmed its rating for General Motors
Corporation (B3 Corporate Family Rating, Ba3 senior secured,
Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity
rating) but changed the outlook to Stable from Positive. In an
environment of weakening prospects for US auto sales GM has
announced that it will take a non-cash charge of $39 billion for
the third quarter of 2007 related to establishing a valuation
allowance against its deferred tax assets (DTAs) in the US,
Canada and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
GERDAU AMERISTEEL: Joint Venture Pacific Coast to Buy Century
-------------------------------------------------------------
Gerdau Ameristeel Corporation's majority owned joint venture,
Pacific Coast Steel has signed a definitive agreement to acquire
all the assets of Century Steel, Inc. for consideration totaling
US$151.5 million. The transaction, which is subject to
customary closing conditions, including regulatory approval, is
expected to close before the end of the first quarter.
"This transaction supports our strategy for continued growth in
the downstream business. Century is a fine company with a long
history of success in the fabrication and in-place business.
With proven leadership, superior customer service, and excellent
fabrication facilities, they will bring immediate value to our
PCS joint venture, as well as the Gerdau Ameristeel mills."
remarked Gerdau Ameristeel Vice President of Commercial and
Downstream Operations, J. Neal McCullohs.
Gerdau Ameristeel also said that, concurrently with the
acquisition of Century, Gerdau Ameristeel will pay approximately
US$68 Million to increase its equity participation in the
Pacific Coast joint venture to approximately 84%.
Gerdau Ameristeel President and Chief Executive Officer, Mario
Longhi commented: "Our venture on the west coast has been
extremely successful and we are excited about the opportunities
Century brings and about our increasing participation in the
venture. As with Pacific Coast, we found that CSI has a strong
management team with core values consistent with ours. The
transaction is expected to be immediately accretive to our
earnings."
About Century Steel Inc.
Headquartered in Las Vegas, Nevada, Century Steel Inc. operates
reinforcing and structural steel contracting businesses in
Nevada, California, Utah and New Mexico, specializing in the
fabrication and installation of structural steel and reinforcing
steel products. With fabrication facilities' that have an
annual capacity in excess of 250,000 tons per year, the company
participates in virtually all segments of the marketplace in the
western United States.
About Gerdau Ameristeel
Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation
(NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a
mini-mill steel producer in North America. Through its
vertically integrated network of 19 mini-mills, 19 scrap
recycling facilities and 61 downstream operations, Gerdau
Ameristeel serves customers throughout North America. The
company's products are sold to steel service centers, steel
fabricators, or directly to original equipment manufactures for
use in a variety of industries, including construction, cellular
and electrical transmission, automotive, mining and equipment
manufacturing. Gerdau Ameristeel is a unit of Brazilian firm
Gerdau SA.
* * *
As reported in the Troubled Company Reporter on Nov. 26, 2007,
Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate
family rating and probability of default rating with a stable
outlook, following the announcement of an agreement to acquire
the specialty steel operations of Quanex Corporation, mainly
represented by its MacSteel division for some US$1.46 billion in
cash. Moody's affirmed all other ratings related to the
company.
SCO GROUP: Reduces Workforce by 30 Positions to Reduce Expenses
---------------------------------------------------------------
The SCO Group Inc. disclosed Friday that the company has
implemented a reduction of its workforce, in an effort to reduce
ongoing operating expenses. The company anticipates that it
will reduce its workforce by approximately 30 positions, a
reduction of approximately 26% of its total workforce. The
Company instituted this reduction in force to continue to focus
on and serve its UNIX customer base and to deliver on key
opportunities with its mobile products and services.
About SCO Group
Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
fka Caldera International Inc. -- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.
The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, the United
Kingdom, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
SUN MICROSYSTEMS: Signs Stock Purchase Deal with innotek
--------------------------------------------------------
Sun Microsystems Inc. has entered into a stock purchase
agreement to acquire innotek, the provider of the leading edge,
open source virtualization software called VirtualBox. By
enabling developers to more efficiently build, test and run
applications on multiple platforms, VirtualBox will extend the
Sun xVM platform onto the desktop and strengthen Sun's
leadership in the virtualization market.
With over four million downloads since January 2007, innotek's
open source VirtualBox product has been quickly established as
one of the leading developer desktop virtualization platforms.
Now, as part of the Sun xVM portfolio, VirtualBox will have the
support of Sun's global development community, field resources
and partners to make VirtualBox even more compelling to
developers and end users, driving greater adoption across a
broad set of communities. VirtualBox enables desktop or laptop
PCs running the Windows, Linux, Mac or Solaris operating systems
to run multiple, different operating systems side-by-side,
switching between them with just a click of the mouse. This
allows software developers to more easily build multi-tier or
cross-platform applications, or power-users to take advantage of
applications that may not be available for their base operating
system of choice.
"VirtualBox provides Sun with the perfect complement to our
recently announced Sun xVM Server product," said Rich Green,
executive vice president, Sun Software. "Where Sun xVM Server
is designed to enable dynamic IT at the heart of the datacenter,
VirtualBox is ideal for any laptop or desktop environment and
will align perfectly with Sun's other developer focused assets
such as GlassFish, OpenSolaris, OpenJDK and soon MySQL as well
as a wide range of community open source projects, enabling
developers to quickly develop, test and deploy the next
generation of applications."
VirtualBox is open source, and can be freely downloaded without
the hassle of payment or frustrating license keys at
virtualbox.org or openxvm.org. The download is less than 20
megabytes and the software is easily installed on any modern,
x86 architecture laptop or desktop system running Windows,
Linux, Mac and Solaris operating systems, in just minutes.
Supported guest operating systems include all versions of
Windows from 3.1 to Vista, Linux 2.2, 2.4 and 2.6 kernels,
Solaris x86, OS/2, Netware and DOS.
The Sun xVM family of products uniquely integrates
virtualization and management to help customers better manage
both physical and virtualized assets across heterogeneous
environments. Previously announced products in the Sun xVM line
include Sun xVM Server and Sun xVM OpsCenter. Sun xVM Server is
a datacenter grade, bare-metal virtualization engine with
advanced features such as live VM migration and dynamic self-
healing, and can consolidate Windows, Linux and Solaris
operating system instances. Sun xVM Ops Center is a unified
management infrastructure for both physical and virtual assets
in the datacenter. Sun has announced partnerships and
endorsements for xVM with Microsoft, RedHat, Intel, AMD,
Symantec and Quest Software.
The agreement to acquire innotek follows Sun's announcement on
Jan. 16 of a definitive agreement to acquire MySQL, the world's
most popular open source database. These acquisitions reaffirm
Sun as the largest commercial open source contributor.
The stock purchase agreement to acquire innotek is subject to
customary closing conditions and is expected to be completed
during the third quarter of Sun's 2008 fiscal year. The terms
of the deal were not disclosed as the transaction is not
material to Sun's earnings per share.
About innotek
innotek is an internally funded software company located in
Stuttgart, Germany with offices in Dresden, Berlin and the
Russian Federation. Its team of international specialists has
focused entirely on the development of high-tech system
software. innotek has been at the forefront of PC
virtualization technology since 2001 and now staffs Europe's
largest and most experienced team of PC software virtualization
experts with numerous Fortune 500 and government customers.
About Sun Microsystems
Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services. It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.
Sun Microsystems conducts business in 100 countries around the
globe, including Brazil, Argentina, India, Hungary, United
Kingdom, Singapore, among others.
* * *
Sun Microsystems Inc. carries Moody's "Ba1" probability of
default and long-term corporate family ratings with a stable
outlook. The ratings were placed on Sept. 22, 2006, and
Sept. 22, 2005, respectively.
Sun Microsystems also carries Standard & Poor's "BB+" long-term
foreign and local issuer credit ratings, which were placed on
March 5, 2004, with a stable outlook.
SUN MICROSYSTEMS: To Launch Sun Vietnam With Frontline Tech
-----------------------------------------------------------
Sun Microsystems Inc. and Frontline Technologies Corporation Ltd
have entered into an agreement to establish Sun Vietnam, Sun
Microsystems' first joint venture created as part of its new
worldwide Sun Equity Partner program, designed to improve access
to Sun's products and services in emerging markets. Sun Vietnam
extends Sun's current presence in Vietnam and supports the
country's rapidly growing interests and demands for enterprise-
class IT services and solutions.
"With a commitment to better serve our customers' needs and
build stronger communities, the Sun Equity Partner Program
represents a new route to market for Sun to fortify its presence
in key markets around the world in partnership with leading
regional experts," said Don Grantham, Executive Vice President,
Global Sales and Services, Sun Microsystems, Inc. "The global
approach of this program will allow us to expand our presence in
emerging markets that adopt and adapt new technology at a rapid
pace. Our stronger presence in Vietnam enables us to better
support local entrepreneurs, regional businesses and our global
clients."
Sun Vietnam is the first entity to be formed under the SEP
program, a global push designed to drive growth for Sun by
increasing market coverage quickly and cost efficiently. Sales
offices are expected to open in both Hanoi and Ho Chi Minh City
in 2008. Sun Vietnam's presence in the market is expected to
serve as a catalyst to hasten the development of Vietnam's
information and communications technology industry.
Sun has maintained a presence in Vietnam for years. The
formation of Sun Vietnam extends its position as a driving force
behind the growing wave of Internet and e-commerce companies in
Vietnam and will continue to drive Sun's comprehensive range
of software and systems solutions, including the Solaris(tm)
Operating System, Java(tm) technologies, Sun Fire(tm) systems
and Sun StorageTek(tm) offerings, as well as professional
training and services. Sun Vietnam was modeled after the highly
successful formation of similar partnerships in Indonesia and
the Philippines in the past several years. Both regions now
support hundreds of Sun-focused sales and services
professionals.
"Establishing this joint venture in Vietnam brings together the
best of both worlds: Sun's world-class products, services and
technology along with the local expertise and reach of our top
partners. It's a win-win for Sun, our partners and, most of
all, our customers," said Lionel Lim, Chief of Operations, Asia
Pacific, and President, Asia South, Sun Microsystems, Inc. "Sun
Vietnam enhances our presence in Vietnam, which is, today,
largely supported with partners, and enables greater
growth potential for the country's information and
communications technology industry. Sun's investment will help
drive growth in Vietnam in terms of skills and technology
enablement through community cultivation and sharing, in
addition to access to cutting-edge technology and expertise from
Sun."
"As one of the fastest-growing economies in this region, Vietnam
is a natural choice to expand Frontline's presence in Asia. Our
suite of IT Services will enable local and global businesses in
the country to harness the power of technology to enhance
their business operations and processes," said Steve Ting,
Executive Chairman of Frontline Technologies Corporation Ltd.
About Frontline Technologies
Frontline Technologies Corporation Ltd (SGX: FRLT.SI) --
http://www.frontline.com.sg/-- is a leading provider of
end-to-end IT Services. Frontline offers IT consulting, IT
infrastructure, IT security solutions, enterprise application
solutions, system integration as well as outsourcing to help
companies harness IT so as to drive operational and cost
efficiency as well as business growth. Established in 1993 and
headquartered in Singapore, the Frontline Group has more than
5,500 professionals in nine key markets in Asia - China, Hong
Kong, India, Indonesia, Malaysia, Singapore, Philippines,
Taiwan and Thailand - to meet the specific needs of corporate
organizations across a continuum of industries. Frontline is
listed on the Main board of the Singapore Exchange since March
2001 and has been ranked in the top 15% of the Corporate
Transparency Index (CTI) in Singapore.
About Sun Equity Partner
The Sun Equity Partner program, part of Sun Microsystems'
ongoing investment in worldwide partners, is a global joint
venture program designed to drive growth for Sun by increasing
coverage quickly and cost efficiently by working with and
investing in select partners. Through SEP, regional partners
and the IT community stand to benefit as the program increases
local access to cutting-edge technologies from Sun.
About Sun Microsystems
Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services. It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.
Sun Microsystems conducts business in 100 countries around the
globe, including Brazil, Argentina, India, Hungary, United
Kingdom, Singapore, among others.
* * *
Sun Microsystems Inc. carries Moody's "Ba1" probability of
default and long-term corporate family ratings with a stable
outlook. The ratings were placed on Sept. 22, 2006, and
Sept. 22, 2005, respectively.
Sun Microsystems also carries Standard & Poor's "BB+" long-term
foreign and local issuer credit ratings, which were placed on
March 5, 2004, with a stable outlook.
* BRAZIL: PeMex Could Own Up to 15% Stake in Petrobras Project
--------------------------------------------------------------
Petroleos Mexicanos could own a stake of up to 15 percent in a
deepwater exploration project on the U.S. side of the Gulf of
Mexico upon the invitation of Brazil's state-owned oil company,
Petroleo Brasileiro SA, Bloomberg News reports.
According to Bloomberg, Petrobras asked the Mexican oil monopoly
asked to join it as a minority partner in the venture to drill
in offshore blocks in the Perdido area near the Mexico border.
Petrobras, Bloomberg relates, is scheduled to receive two
drilling rigs in 2009 for a six-year contract to explore in the
Perdido Foldbelt, which is located more than 220 miles south of
Galveston, Texas.
Separately, Petrobras has baptized its FPSO Petrojarl Cidade de
Rio das Ostras vessel platform, which is slated to be installed
in the Badejo field, in the Campos Basin (state of Rio de
Janeiro), at a water depth of 95 m and 80 kilometers off the
coast. This is the first Brazilian maritime platform designed
to produce extra-heavy oil.
According to Petrobras' Exploration and Production director,
Guilherme Estrella, "the project will unveil important scenarios
for offshore extra-heavy oil production, a challenge the world
over. It will also provide information that will allow the
appropriation of non-proved extra-heavy oil reserves."
Capable of processing average 12.8 degree API (density
measurement championed by the American Petroleum Institute) and
300 cP (viscosity measurement) oil in reservoir conditions - the
heaviest and most viscous oil to be produced in Brazilian
offshore fields -, the unit will be used as a pilot production
project for the Siri reservoir, which is located in that field.
An FPSO (floating oil production, storage and offloading vessel)
platform, this vessel will be capable of producing up to 15,000
barrels of oil per day (bpd).
The information obtained during the testing phase will be used
in the definitive development project for the reservoir, which
foresees drilling several wells and, later, the installation of
a new platform. More than a new production system, the FPSO
Cidade de Rio das Ostras will be a lab for the development of
other offshore extra-heavy oil fields such as Marlim Leste,
Albacora Leste, Papa-Terra, and Maromba, all in the Campos
Basin.
The project's technological hurdles are immense. The challenges
include building a well with a 2-km horizontal section and
installing a high-power submersible centrifugal pump (SCP) to
ensure high flow rates for the oil that is produced. Other
difficult tasks involve separating the water and the gas that
are produced, over and beyond processing this type of oil, a
procedure that will demand extremely high operating temperatures
(140§ C).
Chartered from Canadian-Norwegian outfit Teekay-Petrojarl, the
new platform is the outcome of the conversion of an oil tanker
into an FPSO. The vessel is capable of lifting, from two wells,
up to 15,000 bpd and of storing up to 200,000 barrels. The unit
is scheduled to go online late in the third quarter of 2008.
The Siri reservoir has been known to hold oil since 1975.
However, since the first tests showed very low flow rates,
production had thus far not been considered economically viable.
Thanks to the application of new technologies, however, among
which drilling horizontal well 9-BD-18HP (the biggest of this
type in Brazil), the company has been able to prove the
reservoir's excellent productivity.
The mayor of Rio das Ostras, Carlos Augusto Balthasar, thanked
the company for picking the town's name for the platform. "We
are very pleased Petrobras, Brazil's biggest company, has
associated our town's name to this vessel."
FPSO Petrojarl Cidade de Rio das Ostras has an oil production
capacity of 15,000 barrels per day and storage capacity of
200,000 barrels of oil. It is 183 m long, 32.2 m wide and
houses 60 people.
About Petroleo Brasileiro SA
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- was founded in 1953. The company explores, produces,
refines, transports, markets, distributes oil and natural gas
and power to various wholesale customers and retail distributors
in Brazil. Petrobras has operations in China, India, Japan, and
Singapore.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.
As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch
said the rating outlook is stable.
* BRAZIL: Inflation Risk Premium to Decline, Central Bank Says
--------------------------------------------------------------
Brazil's "inflation risk premium" will decline further as
investors grow more confident that the target for consumer
prices this year will be met, Bloomberg News cited Brazilian
central bank President Henrique Meirelles as saying at a
conference at the Brazilian American Chamber of Commerce in
New York.
Bloomberg News relates that according to Mr. Meirelles,
greater stability in Brazil's economy and the bank's commitment
to the inflation target have helped lessen the risk of
"negative surprises," paving the way for further declines
in the premium.
John Welch, chief Latin American economist at Lehman Brothers
Holdings Inc., told Bloomberg News that he sees lower inflation
risk premiums aiding lower real interest rates.
According to a central bank survey cited by Bloomberg,
Brazilian economists cut their 12-month inflation forecast
to 4.26 percent from 4.30 percent, however, the economists'
consumer price forecast of 4.45 percent this year is close
to the bank's target of 4.5 percent.
Separately, according to a study cited by Anba Newsroom,
Brazilian industry grew 6% in 2007.
The study, conducted by the Brazilian Institute for
Geography and Statistics, said the result was powered by
domestic demand for consumer goods, especially durable ones,
like vehicles and household appliances.
Meanwhile, Reuters News reports that Finance Minister Guido
Mantega is optimistic that with a robust domestic market,
Brazil will successfully weather a global economic slowdown.
"International reserves keep rising, the country is more
solvent than ever," Reuters quoted Mr. Mantega as saying.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign foreign currency rating on Brazil.
As reported in the Troubled Company Reporter-Latin America on
May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign
and local currency sovereign Issuer Default Ratings to 'BB+'
from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In
addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch
said the rating outlook is stable.
==========================
C A Y M A N I S L A N D S
==========================
ABLAMID INVESTMENT: Proofs of Claim Filing Deadline is Feb. 25
--------------------------------------------------------------
Ablamid Investment Holding Ltd.'s creditors are given until
Feb. 25, 2008, to prove their claims to MBT Trustees Ltd., the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Ablamid Investment's shareholders agreed on Nov. 23, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
MBT Trustees Ltd.
P.O. Box 30622, Grand Cayman KY1-1203
Cayman Islands
Telephone: 945-8859
Fax: 949-9793/4
ASIAN INFRASTRUCTURE: Proofs of Claim Filing Ends on Feb. 25
------------------------------------------------------------
Asian Infrastructure Development Co., Ltd.'s creditors are given
until Feb. 25, 2008, to prove their claims to Tay Swee SZE, Wong
Joo Wan, and Lim Siew Soo -- 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.
Asian Infrastructure's shareholders agreed on Feb. 4, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Tay Swee SZE, Wong Joo Wan, and Lim Siew Soo
137 Telok Ayer Street #04-01,
Singapore 068602
Telephone: (65) 6534 7088
Fax: (65) 6534 7022
PARMALAT SPA: Kenyan Crisis Spurs Firm to Defer Spin Knit Buy
-------------------------------------------------------------
Parmalat S.p.A. has postponed its acquisition of Spin Knit Dairy
Ltd. due to political turmoil in Kenya, where the latter is
based, Thomson Financial reports citing La Stampa as its source.
La Stampa said Parmalat's board of directors has approved the
acquisition.
Meanwhile, Parmalat also wants to acquire Australian milk
producer Dairy Farmers for EUR700 million, La Stampa reports.
Parmalat said in March 2007 that it allocated EUR1 billion to
acquire firms and stimulate external growth.
The company, however, is unlikely to make any purchases before
its shareholders' meeting on April 8-9, 2008, when it will elect
a new board.
About Parmalat
Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months. It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.
The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases. On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York. In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted
Parmalat Permanent Injunction.
TRADED POLICIES: Sets Final Shareholders Meeting for February 26
----------------------------------------------------------------
Traded Policies (Income) Ltd. will hold its final shareholders
meeting on Feb. 26, 2008, at 36A Dr Roy's Drive, Grand Cayman,
Cayman Islands.
These agendas will be taken during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records
of the company for a period of five years from
the dissolution of the company, after which they
may be destroyed.
Traded Policies' shareholders decided on Jan. 21, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Andrew Hersant and Chris Humphries
Attn: Stuarts Walker Hersant
P.O. Box 2510
Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 949 3344
Fax: (345) 949 2888
TVG ASIAN: Proofs of Claim Filing Deadline is February 25
---------------------------------------------------------
The TVG Asian Communications Fund's creditors are given until
Feb. 25, 2008, to prove their claims to Telecom Venture Group FF
L.D.C., 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.
The TVG Asian's shareholders agreed on Jan. 12, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Telecom Venture Group FF L.D.C.
Attn: Matthew Goucke
c/o Walkers, Walker House
87 Mary Street, George Town
Grand Cayman KY1-9001, Cayman Islands
Phone: 345 914 6332
Fax: 345 814 8332
E-mail:matthew.goucke@walkersglobal.com
=========
C H I L E
=========
ELECTRONIC DATA: Bob Hershey to Lead SAP Consulting Practice
------------------------------------------------------------
Electronic Data Systems Corp. has appointed Bob Hershey as vice
president and SAP Consulting Practice Leader for the Americas
and Asia Pacific regions. He will report directly to senior
executive vice president of Applications Services, Charlie Feld.
Mr. Hershey's appointment is a key ingredient in the company's
strategic initiative to expand its global SAP application-based
consulting practice. The Global SAP Consulting Practice is an
integral component of the company's 2008 Applications Services
growth plan for high-end, industry-focused applications
development and consulting.
Mr. Hershey will be responsible for building out and growing the
SAP Consulting Practice in the Americas and Asia Pacific
regions. His responsibilities include managing the regional
partnership, the SAP sales process, subject-matter expertise,
and solutioning and delivering SAP implementations.
"I'm pleased and excited to have Bob on the EDS team to help
build our expanded SAP Consulting Practice," said Mr. Feld.
"His in-depth experience and knowledge will help us kick-start
and aggressively drive our higher value-chain proposition for
Applications Services."
Mr. Hershey's appointment follows an expanded agreement
announced between Electronic Data and SAP last October. By
collaborating with SAP on client engagement training and
techniques designed to drive the long-term growth of its
consulting practice, Electronic Data will further enhance its
existing SAP capabilities and bring end-to-end consulting and
systems integration to the market by early 2008.
Prior to joining the company, Mr. Hershey was senior vice
president and global enterprise solutions practice leader at
BearingPoint, Inc. and led more than 30 managing directors for
their North American Technology Solutions organization including
sales, delivery and operations. He was also instrumental in
developing strategy for BearingPoint's US$1.3 billion SAP and
Oracle practices globally, spearheading its offshore delivery
strategy and helping position its practice toward higher growth
solutions and services. While at BearingPoint, he was also the
Global Oracle Practice leader and Global PeopleSoft Practice
leader.
Previously, Mr. Hershey served as a principal in charge for
BearingPoint's (then KPMG Consulting) North America Consumer and
Industrial Markets eBusiness Practice, and Consumer Markets
Segment leader and principal for its North America Finance
Practice.
Mr. Hershey holds a Bachelor of Arts degree from Williams
College in Williamstown, Mass., and a master of business
administration degree from New York University School of
Business.
About Electronic Data System
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.
EMPRESA ELECTRICA: Reports US$60.9 Million Net Profit in 2007
-------------------------------------------------------------
Empresa Electrica Del Norte Grande S.A. had a net profit of
US$60.9 million in 2007, compared to a US$10.8 million loss in
2006, Business News Americas reports.
Empresa Electrica said in a filing with securities regulator
Superintendencia de Valores y Seguros de Chile that its
operating revenue increased to US$272 million in 2007, compared
to US$127 million in 2006.
BNamericas relates that Empresa Electrica's operating costs grew
46.7% to US$187 million in 2007, from 2006, mainly due to US$56
million in fuel consumption. Natural gas supply reductions from
Argentina forced Empresa Electrica to use costlier diesel and
coal to run its thermo plants.
According to BNamericas, Empresa Electrica's operating profits
increased to US$73 million in 2007, from a US$10.5 million
operating loss in 2006, due to increased power sales to
unassociated customers and the northern grid's operator CDEC-
SING. The company's power sales increased to US$264 million in
2007, compared to US$117 million in 2006. Its sales volume rose
6.25% to 2.52 terra watt-hours in 2007, from 2006.
Empresa Electrica accounted for 20.2% of the power in the
northern grid in 2007, compared to 19.9% in 2006, BNamericas
states.
Heaquartered in Chile, Empresa Electrica Del Norte Grande S.A.
(aka Edelnor) -- http://www.edelnor.cl/-- is principally
engaged in the generation, transportation, distribution and
supply of electricity. Edelnor is also engaged in the purchase,
transportation and sale of all types of fuel: liquid, solid and
gaseous. The company offers advising services in engineering
and management, as well as maintenance and repair of electronic
systems.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, Standard & Poor's Ratings Services raised the
ratings on Empresa Electrica del Norte Grande S.A. to 'BB-' from
'B+' mainly due to the company's improved financial risk
profile, which is partly evidenced by its significantly higher
debt-service coverage ratios and its US$66 million cash reserves
as of Sept. 30, 2007. S&P said the outlook was positive,
reflecting expected good and more stable cash flow generation in
the next two years partly as a result of its increased medium-
and long-term power sale contracts at relatively high prices.
SOL MELIA: S&P Withdraws BB Credit Rating at Company's Request
--------------------------------------------------------------
Standard & Poor's Ratings Services has withdrew its 'BB+'
corporate credit rating on Spain-based lodging company Sol Melia
S.A. at the company's request.
At the same time, the 'BB+' senior unsecured debt rating on Sol
Melia Europe B.V.'s EUR150 million 4.3% convertible bonds due
Nov. 14, 2008, and the 'BB-' issue rating on Sol Melia Finance
Ltd.'s EUR106.9 million 7.8% preference stock due
April 29, 2012, both of which are guaranteed by Sol Melia, were
also withdrawn.
The group has recently put in place some additional bank
financing which, together with existing cash resources, should
enable it to refinance the Sol Melia Europe issue due in
November.
Based in Mallorca, Spain, Sol Melia S.A. --
http://www.solmelia.com/solNew/home/jsp/C_Home.jsp-- owns and
manages more than 350 hotels and resorts worldwide, placing it
among the top ten international hotel companies in more than 30
countries. The goup has a presence across Europe, the
Caribbean, Central and South America, the United States,
Southeast Asia and North Africa. The company's Latin American
operations include: Argentina, Brazil, Chile, Costa Rica, Cuba,
Dominican Republic, Mexico, Panama, Peru, Puerto Rico, Uruguay,
and Venezuela.
===============
C O L O M B I A
===============
CUMMINS INC: Board Declares 12.5 Cents Per Share Dividend
---------------------------------------------------------
Cummins Inc.'s Board of Directors has declared a quarterly
common stock cash dividend of 12.5 cents per share, payable
March 3, 2008, to shareholders of record on Feb. 22, 2008. The
dividend amount reflects the Company's 2-for-1 stock split,
which took effect Jan. 2, 2008.
About Cummins
Headquartered in Columbus, Indiana, Cummins Inc. (NYSE: CMI)
-- http://www.cummins.com/-- designs, manufactures, distributes
and services engines and related technologies, including fuel
systems, controls, air handling, filtration, emission solutions
and electrical power generation systems.
Cummins has Latin-American operations, particularly in
Venezuela, Brazil, Peru, Colombia, and Argentina. Its
operations in the Asia-Pacific are found in China, Japan and
Korea. Its also has facilities in Europe, particularly in the
United Kingdom.
* * *
Cummins' Junior Convertible Subordinated Debentures carry
Fitch's 'BB' rating with a stable outlook.
Moody's Investors Service raised Cummins' convertible preferred
stock rating to Ba1 from Ba2 and withdrew the company's SGL-1
Speculative Grade Liquidity rating and its Ba1 Corporate Family
Rating.
GERDAU SA: Unit Selling 9.98% Stake in Acerias Paz for US$66.2MM
----------------------------------------------------------------
Published reports say that Gerdau SA's unit Gerdau GTL Spain and
Ferrer Industrial Corp will sell a 9.98% stake in Colombian
steelmaker Acerias Paz del Rio to Brazil's Votorantim for
US$66.2 million.
Business News Americas relates that the deal would include over
1.58 billion Paz del Rio shares.
Gerdau GTL and Ferrer Industrial agreed on a preliminary price
of COP80.33 for each Acerias Paz share in circulation,
BNamericas says, citing brokerage Stanford Bolsa y Banca analyst
Edgar Jimenez.
Mr. Jimenez told BNamericas that the acquisition of the stake is
a good move for Votorantim.
BNamericas notes that Votorantim controls 52% of Acerias Paz.
The firm won 52% of Acerias Paz in an auction in March 2007,
paying over US$490 million for that stake.
Votorantim told BNamericas that it will increase said it plans
to increase Acerias Paz's production to almost one million tons
per year, from of 350,000 tons per year.
The deal would proceed once the regulatory agency had authorized
the operation, BNamericas says, citing the Colombian financial
superintendent's office.
Acerias Paz's plant is in Belencito in the central Boyaca
department of Colombia. The firm has a 14% share of the
domestic steel market and accounts for 30% of the national steel
production.
Headquartered in Porto Alegre, Brazil, Gerdau SA
-- http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s
Ba1 corporate family rating and stable outlook.
==================
C O S T A R I C A
==================
ALCATEL-LUCENT SA: Forms Joint Venture With NEC Corp.
-----------------------------------------------------
Alcatel-Lucent and NEC Corp. have announced the start of a broad
collaboration to market advanced end-to-end communications
solutions.
As an important first step in this collaboration, Alcatel-Lucent
and NEC have decided to form a joint venture that will focus on
the development of Long Term Evolution (LTE) wireless broadband
access solutions. These solutions will support the network
evolution of leading customers around the world, such as NTT
DoCoMo, who has already selected NEC as a vendor for commercial
service deployment of its Super 3G (LTE) project, and Verizon,
with whom Alcatel-Lucent has already initiated a LTE trial
program. Through this joint development effort, the two
companies intend to accelerate the availability of next-
generation wireless solutions.
Leveraging the common LTE product strategy and platform of the
joint venture, Alcatel-Lucent and NEC will each manage delivery,
project execution and dedicated support to their respective
customers.
Under this joint venture, the two companies will pool their
existing research & development resources and leverage
market-proven expertise in key technologies on which next-
generation wireless access is based, such as IP, multiple
input/multiple output and orthogonal frequency division multiple
access. Through this joint development effort, Alcatel-Lucent
and NEC are affirming their R&D investment commitments and
combining them to accelerate product innovation, differentiation
and performance. The goal of the two companies is to achieve
faster commercial availability of LTE solutions, serve an
expanded, global customer base, and establish a leading position
in the early development phase of the LTE market. The two
companies will make first commercial releases available in 2009,
and will leverage their field-proven wireless expertise to
ensure smooth integration of LTE technology with the existing W-
CDMA/HSPA and CDMA/EV-DO networks of their respective customers.
"By leveraging complementary portfolios, robust research and
innovation capabilities, and strong market positions in Japan
and around the globe, the partnership is well positioned to
hasten the evolution towards the next-generation of mobile
services," said who Yankee Group's head of technology research,
Philip Marshall. "This is a smart pairing that will help
accelerate the availability of LTE by capitalizing on early
market implementations that we expect to occur in Japan and
North America."
"This strategic collaboration with NEC is driven by scale, time-
to-market, and product excellence objectives, and it will put us
in a strong position to ride the next wave of transformation in
the wireless industry," said Alcatel-Lucent Chief Executive
Officer, Patricia Russo. "By drawing upon our combined
innovation capabilities, we will be able to effectively
accompany leading operators as they migrate their network to
next-generation wireless broadband technology, hence sustaining
the value of their networks well into the future," Ms. Russo
added.
"This collaboration gives us the potential to open up new market
opportunities for advanced wireless services globally," said NEC
Corporation President, Kaoru Yano. "Moreover, NEC's core
competence lies in integrated IT/network solutions business.
Through this alliance, we intend to explore the potential for
collaboration with Alcatel-Lucent to best leverage both
companies' market-leading capabilities in a wide range of
fields. We expect this partnership to contribute to the
execution of our next-generation network business strategy by
expanding our reach into global markets."
In the future, the collaboration is expected to expand into end-
to-end third-generation (3G) CDMA-based solutions, as well as a
wide range of advanced IP-based solutions, such as optical
transmission, IP service routing, and IMS-based communications
services. Alcatel-Lucent and NEC will also investigate
collaborating in developing IT solutions for service providers -
- such as service application solutions (e.g. streaming, e-
commerce, etc.) -- together with the servers and storage
products on which those solutions depend.
About NEC
NEC Corporation -- http://www.nec.com-- provides Internet,
broadband network and enterprise business solutions dedicated to
meeting the specialized needs of its diverse and global base of
customers. The NEC Group employs more than 150,000 people
worldwide.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that
enable service providers, enterprises and governments worldwide
to deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from
Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings
for senior debt of the group were equally lowered to Ba3 from
Ba2 and the trust preferred notes of Lucent Technologies Capital
Trust I have been downgraded to B2 from B1. At the same time,
Moody's affirmed its Not-Prime rating for short-term debt of
Alcatel-Lucent. Moody's said the outlook for the ratings is
stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
SPECTRUM BRANDS: Dec. 30 Balance Sheet Upside-Down by US$141.2MM
----------------------------------------------------------------
Spectrum Brands Inc.'s consolidated balance sheet at
Dec. 30, 2007, showed US$3.27 billion in total assets and
US$3.41 billion in total liabilities, resulting in a US$141.2
million total stockholders' deficit.
The company reported a net loss of US$43.4 million on net sales
of US$560.5 million for the first quarter of fiscal 2008 ended
Dec. 30, 2007, compared with a net loss of US$18.8 million on
net sales of US$564.6 million in the first quarter of fiscal
2007.
Spectrum Brands' net sales of US$560.5 million represented a
slight decline of one percent from the prior year. Sales in the
quarter were negatively impacted by customer requests for
earlier than normal shipments of holiday related merchandise,
resulting in a timing shift of approximately US$15.0 million in
battery and personal care sales from the fiscal first quarter of
2008 to the fiscal fourth quarter of 2007. In addition, the
company's continued deliberate exiting of unprofitable or
marginally profitable private label battery sales in Europe was
a contributor to the year over year decline. Foreign currency
exchange had a favorable impact of US$31.0 million.
Ooperating income for the fiscal 2008 quarter increased to
US$51.8 million, or 9.3% of net sales from US$37.6 million, or
6.7% of net sales in the fiscal 2007 quarter, primarily due to
the savings associated with the decrease in advertising and
marketing expenses coupled with the impact of the company's
global realignment savings in the fiscal 2008 quarter.
Interest expense in the fiscal 2008 quarter increased to
US$45.7 million from US$31.7 million in the fiscal 2007 quarter
due to higher interest rates and higher average debt balances.
The company's effective tax rate on income from continuing
operations is approximately 260% for the fiscal 2008 quarter.
The effective tax rate on income from continuing operations was
approximately 30% for the fiscal 2007 quarter. The increase in
effective income tax rate for the fiscal 2008 quarter is a
result of the company's decision to no longer benefit its net
operating losses generated in the U.S., while at the same time
being subject to tax on its income generated outside of the U.S.
The fiscal 2008 quarter reflects a loss from the discontinued
operations of its home and garden business of US$33.3 million,
net of tax, which includes a loss on disposal of Nu-Gro of
US$1.0 million, net of tax benefit. The fiscal 2007 quarter
reflects a loss from discontinued operations of approximately
US$22.2 million, net of tax. The increase in the loss from
discontinued operations is primarily due to the impact of income
taxes.
Senior Credit Facilities
At Dec. 30, 2007, the aggregate amount outstanding under the
company's Senior Credit Facilities totaled a U.S. Dollar
equivalent of US$1.52 billion, including principal amounts of
US$986.0 million under the U.S. Dollar Term B Loan, EUR258.0
million under the Euro Facility (US$378.0 million at Dec. 30,
2007), US$105.0 million under the ABL Facility as well as
US$47.0 million outstanding in letters of credit under the L/C
Facility.
Senior Subordinated Notes
At Dec. 30, 2007, the company had outstanding principal of
US$700.0 million under its 7 3/8% Senior Subordinated Notes due
2015, outstanding principal of US$3.0 million under its 8 1/2%
Senior Subordinated Notes due 2013, and outstanding principal of
US$347.0 million under its Variable Rate Toggle Senior
Subordinated Notes due 2013.
Full-text copies of the company's consolidated financial
statements for the quarter ended Dec. 30, 2007, are available
for free at http://researcharchives.com/t/s?27f1
About Spectrum Brands Inc.
Headquartered in Atlanta, Georgia, Spectrum Brands Inc. (NYSE:
SPC) -- http://www.spectrumbrands.com/-- is a supplier of
batteries, portable lighting, lawn and garden products,
household insect control, shaving and grooming products,
personal care products and specialty pet supplies.
The company operates in 13 Latin American nations including El
Salvador, Chile, Dominican Republic, Guatemala, Honduras, Costa
Rica, Colombia and Nicaragua.
* COSTA RICA: State Refiner Junks Plant Revamp Bidding Process
--------------------------------------------------------------
A project official from Costa Rican state-owned refiner Recope
told Business News Americas that the company has called off the
bidding process for the US$160-million restoration of its
refinery in Limon.
Recope launched the tender in January 2007. It received in
August 2007 offers from Argentine firm Astra Evangelista and
Venezuelan company Petrolog, BNamericas notes.
Recope canceled the tender, but not the project, BNamericas
says, citing the official. Some modifications may be made as
part of a cooperation accord with China's state-run oil firm
CNPC.
According to BNamericas, Recope wants to increase the planned
output above the initial capacity expansion, which was 38,000
barrels per day from 25,000 barrels per day, particularly the
production of lead-free gasoline and low-sulfur diesel.
The project is the second phase of the plant's stage one
modernization, BNamericas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign local and foreign currency ratings on Costa Rica.
Standard & Poor's also placed a BB long-term sovereign foreign
currency rating on Costa Rica.
* COSTA RICA: State Refiner Seeking LPG System Project Funding
--------------------------------------------------------------
Costa Rican state-run refiner Recope will call for bids from
banks and financial entities to the modernize and expand its
liquefied petroleum system, business News Americas reports,
citing a project official.
BNamericas relates that Recope's liquefied petroleum gas system
currently has:
-- three spheres, each holding 3,975 cubic meters;
-- four horizontal tanks, each holding 144 cubic
meters; and
-- piping, among other infrastructure.
The report says the liquefied petroleum is being transported
through the pipe from Moan port to Recope's nearby plant.
According to BNamericas, the project will cost US$141 million.
It entails:
-- five storage spheres, each capable of holding
3,975 cubic meters;
-- six horizontal storage tanks;
-- piping; and
-- other works.
The official told BNamericas that the winning bidder will hire a
company to design the project as well as its materials
procurement and construction.
BNamericas notes that 75% of funds alloted to the project will
go to the storage component.
The winning bidder will keep the property of the assets of the
new liquefied petroleum gas storage park and complementary
works, BNamericas says. Recope will have rental accord for at
least 12 years. It will take over four years to complete the
project.
Colombian firm Bohorguez Ingenieria carried out the
modernization and expansion's basic engineering. The project's
environmental feasibility secured approval from environmental
authority Setena, BNamericas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+
long-term sovereign foreign currency rating and B short-term
sovereign local and foreign currency ratings on Costa Rica.
Standard & Poor's also placed a BB long-term sovereign foreign
currency rating on Costa Rica.
===================================
D O M I N I C A N R E P U B L I C
===================================
GENERAL CABLE: Earns US$208.6 Million in Full Year 2007
-------------------------------------------------------
General Cable Corporation has reported US$46.7 million of net
income for the three months ended Dec. 31, 2007, compared to
US$35.4 million of net income for the same period in 2006. For
the full year of 2007, the company earned US$208.6 million
compared to 2006 net earnings of US$135.3 million.
Gregory B. Kenny, President and Chief Executive Officer of
General Cable, said, "I am extremely pleased with the strong
financial results that the Company continues to deliver for our
shareholders. The Company has succeeded in substantially
expanding its global manufacturing platform, improved its
financial flexibility and liquidity, and is reporting today
record revenues and earnings. Over the last twelve months the
Company has completed several strategically important
acquisitions. These have given the Company a significant
presence in the developing economies of the world, access
to important undersea power and communication technologies, and
exceptional management experience. While we are proud of our
roots in the United States, today approximately 65% to 70% of
our revenues are generated outside the country."
Fourth Quarter Results
Net sales for the fourth quarter of 2007 were US$1,297.8
million, an increase of US$377.1 million or 41.0% compared to
the fourth quarter of 2006 on a metal-adjusted basis. This
growth was principally due to the company's exposure to global
electrical infrastructure markets, the acquisition of PDIC, as
well as favorable foreign exchange translation. Revenues from
acquired businesses contributed US$271.5 million in the fourth
quarter. Without the benefit of revenues from acquired
businesses, revenues would have increased 11.5% on a metal-
adjusted basis.
Fourth quarter 2007 operating income before charges was US$93.0
million compared to operating income of US$57.5 million in the
fourth quarter of 2006, an increase of US$35.5 million or 61.7%.
Operating margin before charges was 7.2% in the fourth quarter
of 2007, an increase of approximately 100 basis points from the
operating margin percentage of 6.2% in the fourth quarter of
2006 on a metal-adjusted basis. This improvement was
principally due to better price realization in many of the
company's product lines, cost improvements from LEAN
initiatives, and the continued profitable expansion of the
Silec, ECN, and NSW businesses. "We have also seen
strong recovery in our LAN cable products with new product
designs and strong business leadership. I am also pleased to
see significant progress at our Silec facility with respect to
product throughput as well as their LEAN manufacturing
skills. The integrations of ECN and NSW have been absolutely
seamless and performance ahead of our investment case," Mr.
Kenny said.
Preferred Stock Dividend
In accordance with the terms of the company's 5.75% Series A
Convertible Redeemable Preferred Stock, the Board of Directors
has declared a regular quarterly preferred stock dividend of
approximately US$0.72 per share. The dividend is payable on
Feb. 22, 2008 to preferred stockholders of record as of the
close of business on Jan. 31, 2008. The Company expects the
quarterly dividend payment to approximate US$0.1 million.
First Quarter 2008 Outlook
"The Company continues to benefit from its strategic investments
in new products and geographies more than offsetting the ongoing
weakness in certain product lines in the developed economies.
For the first quarter, the Company expects to report earnings
per share of US$1.05 or more compared to an adjusted earnings
per share of US$1.01 in the first quarter of 2007, on revenues
of approximately US$1.5 billion," Mr. Kenny concluded.
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.
=============
E C U A D O R
=============
PETROECUADOR: Ortiz Wants Borders To be Redrawn for Oil Blocks
--------------------------------------------------------------
Ecuadorian attorney general Xavier Garaicoa Ortiz has asked
authorities to redraw borders for oil blocks in the Yasuni
national park, Business News Americas reports.
According to a statement by the attorney general's office, one
of the blocks belong to state-run oil firm Petroecuador. The
other blocks are held by:
-- Brazil's federal energy company Petroleo
Brasileiro,
-- Spain's Repsol YPF, and
-- junior Petroriental.
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2008, Mr. Garaicoa recommended that the government
negotiate with oil companies to stop drilling for crude in a
protected area in the Amazon jungle.
No operations were made in Yasuni areas and no environmental
licenses were granted for work there. However, the Yasuni's
protection should be included in the government's oil contracts
renegotiation process to guarantee that the areas are definitely
marginalized, the attorney general's office said in a statement.
Ensuring that the Yasuni areas are not included in the contracts
would prevent future social and environmental problems,
BNamericas states, citing Mr. Garaicoa.
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
====================
E L S A L V A D O R
====================
* EL SALVADOR: 5 Groups Buy El Chaparral Project Bidding Rules
--------------------------------------------------------------
An official from El Salvador's state-run power firm Comision
Ejecutiva Hidroelectrica del Rio Lempa told Business News
Americas that the company has sold bidding rules to five groups
for the 65.7-megawatt El Chaparral hydro project.
BNamericas relates that Comision Ejecutiva declared the first
tender for the US$140 project void in November 2007 because
bidders Constructor Chaparral (Andrade Gutierrez-Voith Siemens
Hydro Power) and Italy's Astaldi failed to meet bidding rule
requirements. The company then relaunched the bidding in
January 2008.
The official told BNamericas that Comision Ejecutiva is
preparing a site visit for the potential bidders. The official
refused to disclose the names of the groups due to
confidentiality requirements.
BNamericas notes that the project includes the construction of a
power plant and a dam in the lower zone of the Torola river
basin spanning the municipalities of San Luis de la Reina,
Carolina, and San Antonio del Mosco in the San Miguel
department. The Central American Bank for Economic Integration
will assist in the funding of El Chaparral.
Bids must for the project must be submitted by April 30, 2008,
BNamericas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Standard & Poor's Ratings Services has assigned
BB+ long-term sovereign local and foreign currency ratings and B
short-term sovereign local and foreign currency ratings on El
Salvador. S&P said the outlook for all the ratings is stable.
=================
G U A T E M A L A
=================
ALLIANCE ONE: S&P Ratings Unmoved by Delay in Financial Filing
--------------------------------------------------------------
Standard & Poor's Ratings Services disclosed that its rating and
outlook on Alliance One International Inc. (B+/Negative/-) are
not affected by the company's announcement it will delay the
filing of its financial statements for the third fiscal quarter
ended Dec. 31, 2007, and will restate its fiscal second-quarter
financial results. The restatement will reflect restructuring
and asset impairment charges of $6.9 million related to the
company's sale of Compania General de Tabacos de Filipinas S.A.
and its worldwide operating subsidiaries. Management now
believes that the charges should have been taken in the second
quarter, which will require an amendment and restatement to
its second-quarter financial statements. It is S&P's
expectation that the issues underlying the restatements will
not meaningfully impact past operating results, and that the
weaknesses alluded to in the company's announcement are
manageable and will be corrected shortly. Given the company's
recent other past financial restatements and delayed filings,
S&P will assess the company's ability to remedy its weakness in
internal controls arising from these repeated restatements, and
its ability to issue these restatements and fiscal third-quarter
Form 10-Q on a timely basis. Although currently this filing
delay and restatement has not caused any technical defaults on
Alliance One's obligations, s&P will monitor the company's
progress to assure that no technical defaults occur, as well as
to achieve a level of comfort that the company has addressed any
possible material weaknesses identified in the current
accounting review.
Headquartered in Raleigh , North Carolina, Alliance One
International Inc. (NYSE: AOI) -- http://www.aointl.com/--
selects, purchases, processes, packs, stores, and ships leaf
tobacco. The company has worldwide operations in Argentina,
Brazil, Guatemala, Mexico, Bulgaria, Canada, China, France,
Thailand, and Singapore, among others.
===============
H O N D U R A S
===============
* HONDURAS: Will Likely Purchase Oil Byproducts from Venezuela
--------------------------------------------------------------
Honduras is planning to have a first buy of oil byproducts from
Venezuela under regional energy alliance Petrocaribe, El
Universal reports, citing Honduran officials.
Presidency's Minister Enrique Flores told reporters that a
Venezuela team, including Petroleos de Venezuela SA Vice
President & Caracas Ambassador Asdrubal Chavez, headed in
Tegucigalpa "to refine the details for the shipments of bunker
fuel."
The same journal states that the Honduran government issued a
decree last January to buy 100 percent of bunker for power
generation and fuel, diesel and gas from Venezuela in order to
meet 30 percent of demand in Honduras.
According to the report, total imports are amounted to 20,000
barrels per day of fuel, with a total item of US$1.56 billion
over the next two years. Within the first 90 days, sixty
percent of the bill will be repaid with the remaining sum
payable in 25 years, at a one percent interest rate and a two-
year grace period.
* * *
On Sept. 29, 1998, Moody's Investor Service placed Honduras'
Senior Unsecured Rating and Long Term IDR at "B2"
===========
M E X I C O
===========
BERRY PLASTICS: Moody's Holds B3 Rating on Captive Buyout Loan
--------------------------------------------------------------
Moody's Investors Service has affirmed the Corporate Family
Rating of B3 of Berry Plastics Corporation (fka Berry Plastics
Holdings Corp.) and downgraded certain instrument ratings. The
outlook is stable. The rating action is in response to the
company's announcement on Feb. 11, 2008, that it had entered
into a US$520 million senior secured bridge loan facility (not
rated by Moody's) to finance its US$500 million acquisition of
Captive Holdings, Inc.
The affirmation of Berry Plastics' Corporate Family Rating
reflects the company's success to date integrating previous
acquisitions, the current acquisition's neutral impact on credit
metrics, the potential for significant synergies, and Captive's
strategic fit with Berry's core rigid plastic business.
Captive's emphasis on the food, beverage and healthcare segments
(approximately 80% of sales for the twelve months ended
Sept. 30, 2007) helps balance and offset Berry's more cyclical
flexible films, adhesives and coated products segment.
Additionally, the company's broad line of bottling products
complements Berry's broad line of closures products and there is
little overlap between the top ten customers for each company.
The geographic footprint of Captive's manufacturing facilities
also fills some important gaps in Berry's footprint.
Offsetting these positives, are the increased operating and
integration risk of another material acquisition before Berry
Holdings finished integrating its largest acquisition to date,
the recent acquisition of Covalence Specialty Materials
Corporation. The increase in risk leaves little room in Berry's
profile for further material acquisitions or negative variance
in operating performance in the intermediate term.
The downgrade of certain instrument ratings reflects the
increase in first lien secured debt and the deterioration in
asset coverage that results for the second lien instruments in
accordance with Moody's loss-given-default methodology.
Moody's took these rating actions for Berry Plastics Corp.:
-- Affirmed Corporate Family Rating of B3
-- Affirmed Probability of Default Rating of B3
-- Downgraded US$1,200 million senior secured term loan due
2015 to B1 (LGD 2, 27%) from Ba3 (LGD 2, 23%)
-- Downgraded US$225 million senior secured second lien FRN's
due 2014 to Caa1 (LGD 4, 63%) from B3 (LGD 4, 56%)
-- Downgraded US$525 million senior secured second lien notes
due 2014 to Caa1 (LGD 4, 63%) from B3 (LGD 4, 56%)
-- Affirmed US$265 million senior subordinated notes due 2016
Caa2 (LGD 5, to 85% from 93%)
-- Moody's took the following rating actions for Berry
Plastics Group, Inc.:
-- Affirmed US$500 million senior unsecured term loan due
2014, Caa2 (LGD 6, to 94% from 93%)
-- Affirmed Speculative Grade Liquidity Rating of SGL-2
The rating outlook is stable.
The ratings and outlook are subject to receipt of final
documentation. Approximately US$2.7 billion of rated debt
instruments affected
Captive Holdings Inc. manufactures blow-molded bottles and
injection-molded closures for the food, healthcare, spirits and
personal care end markets. The company is headquartered in
Piscataway, New Jersey and operates 13 plants across the United
States.
Based in Evansville, Indiana, Berry Plastics Corporation --
http://www.berryplastics.com/-- is a supplier of rigid plastic
packaging products, serving customers in the food and beverage,
healthcare, household chemicals, personal care, home
improvement, and other industries. The company has more than 70
locations in the United States and others in Mexico, Canada,
Italy, Belgium, and China.
CHRYSLER LLC: Tooling Request Being Evaluated by the Court
----------------------------------------------------------
Honorable Phillip J. Shefferly of the U.S. Bankruptcy Court for
the Eastern District of Michigan began yesterday a two-day trial
to consider the merits of Chrysler LLC's request to pull out its
tooling equipment from Plastech Engineered Products Inc. and its
debtor-affiliates' plants.
The Court will also consider Chrysler's motion for a temporary
restraining order that would allow Chrysler or its agents to
enter Plastech's plants and obtain possession of the equipment.
The parties had temporarily resolved their dispute by entry of
an interim agreement which provides that:
i) Plastech will continue delivering component parts to
Chrysler until Feb. 15, 2008; and
ii) Plastech will allow Chrysler supervised access to Plastech
facilities for purposes of inventory and inspection.
Revenues Could Plummet
Absent Tooling Equipment
The Debtors, however, oppose Chrysler's request for lifting of
the automatic stay under Section 362(d)(1) that would allow it
to take possession of the Tooling.
Chrysler wants possession of the Tooling so that it could
transfer manufacturing of component parts to other parties.
Plastech notes that Chrysler accounts for about $200,000,000 of
its annual revenues. Thus, if Chrysler's proposal is granted,
the Debtors would immediately lose approximately 15% of their
annual revenues. This would occur when the Debtors' business is
most vulnerable, the first two weeks of their Chapter 11 cases,
avers Peter Smidt, executive vice president for Finance and
chief
financial officer of the Debtors.
Deborah L. Fish, Esq., at Allard & Fish, P.C., in Detroit,
Michigan, says that Chrysler is stayed by the Bankruptcy Code
from taking possession of the Tooling. Ms. Fish contends that
pursuant to Section 362(a)(3) of the Bankruptcy Code:
-- Chysler is prohibited from taking unpaid tooling, which
pursuant to their Financial Accommodation Agreements, are
property of the estate. Section 362(a)(3) prohibits
taking any action against estate property. The Debtors
are also under no obligation to sell the unpaid tooling
to Chrysler under the FFAs.
-- Chrysler is prohibited from taking possession of any
Tooling it owns but in the possession, custody and
control of the Debtors. Regardless of who legally owns
the Tooling, any Tooling in the possession of the Debtors
may only be removed upon a modification of the automatic
stay.
Sufficient cause does not exist to modify the automatic stay
under Section 362(d), Ms. Fish asserts. She argues that:
-- The Debtors' and creditors' interests in prohibiting
Chrysler from seizing any owned tooling substantially
outweigh any harm that Chrysler might suffer if the stay
is not lifted. Plastech will lose business if equipment
are removed from their plants. On the other hand,
Chrysler will suffer, "at most, financial damages, which
damages were self-inflicted and not legally cognizable."
-- Chrysler is not likely to prevail on the merits of
its underlying claims.
Ms. Fish notes that to grant a temporary restraining order or
modify the automatic stay, the Court must also conclude that
Chrysler has a substantial likelihood of prevailing on its
underlying claims, all of which are premised on two contentions:
i. that Chrysler properly terminated the Supply Agreements
on February 1, 2008; and
ii. that Chrysler owns the Tooling.
The Debtors say that they will demonstrate at the hearing that
Chrysler is not likely to prevail on either contention. Ms.
Fish argues that:
(a) Chrysler's notices were ineffective. Notices or letters
sent by Chrysler on Jan. 15 and 16, and Feb. 1, which
purportedly terminated the supply agreements, were not
sent to the proper notice parties, which include the
Debtors' other customers. In addition, the notices were
"simply impermissibly vague" and, thus, did not trigger
Plastech's 10-day obligation to cure defaults under the
agreements.
(b) Plastech timely cured certain of the alleged defaults and
Chrysler is estopped from asserting others. Within two
weeks following the January Notices, Plastech had cured
or was on the verge of curing the alleged defaults
regarding its financial condition and accommodation
requests.
(c) Chrysler is not likely to prevail on the merits of its
contention that it could terminate the supply agreements
for breach. Among other things:
-- Plastech is not in breach of any quality obligation,
-- Plastech is not in breach of any obligation to pay
tooling suppliers and provide verification,
-- Plastech has not breached any quality issues
requiring third-party inspection,
-- Plastech's request to advance payables did not
constitute a breach, and
-- Plastech's planned closures of certain facilities
did not constitute any breach.
Ms. Fish adds that Chrysler is not likely to show that the
tooling is owned by Chrysler and held by the Debtors under
Article 7 Of The Michigan Uniform Commercial Code. She avers
that Chrysler did not and, indeed, cannot establish that a
bailment relationship exists between itself and the Debtors.
Previously, the Debtors refuted Chrysler's assertions that it
will suffer significant harm absent a lifting of the stay. "Any
harm to Chrysler was self-inflicted," the Debtors' proposed
counsel, Gregg M. Galardi, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, in Wilmington, Delaware, asserted. "Any
harm to Chrysler is not irreparable," he added.
Plastech also asserted that even if the stay is lifted, it could
take weeks, even months, for the equipment to be removed from
the Debtors' facilities and be set up in another facility.
Granting Chrysler's request, Mr. Galardi argued, would reward
Chrysler for acting precipitously at a time when the Debtors
efforts need to be, and indeed were, focused elsewhere
in an effort to maximize the value of their estates for the
benefit of all creditors.
Other Objections
Tri-Way Mfg., Inc., doing business as Tri-Way Mold &
Engineering, which holds a lien on the molds Chrysler seeks to
recover, wants Chrysler's lift stay request denied, absent the
satisfaction of Tri-Way's statutory liens.
In addition, H.S. Die & Engineering, Inc. and H.S. Die Rantoul
Mold Services, LLC, which manufacture and supply Plastech with
tools, dies and molds, including the Molds Chrysler seeks to
recover, also objected to Chrysler's request.
H.S. Die asserted that granting the lift stay request would
entitle Chrysler to take possession or exercise any rights as to
the Tools, which is subject to certain liens held by H.S. Die.
H.S. Die is the Debtors' largest general unsecured creditor with
a $6,360,328 claim according to papers filed at the time of
their bankruptcy filing.
One of Their Own
Rival carmakers General Motors Corp. and Ford Motor Co. appeared
before the Court Wednesday to show support to Chrysler LLC, The
Associated Press says.
AP's Dee-Ann Durbin reports that spokesperson for GM and Ford as
well as for auto supplier Johnson Controls Inc. told the Court
they believe they have the right to reclaim their own equipment
under their contracts with Plastech.
"GM is not taking a position regarding whether the court should
grant Chrysler the relief it is seeking," GM spokesman Frank
Sopata said, according to AP. "But GM does strongly support
Chrysler's position regarding the tooling since we have entered
into the same agreement as Chrysler and the other major
customers of Plastech to reclaim our tooling should it be
necessary."
Ford and GM haven't experienced any disruption in their supply
from Plastech or reported any quality problems, AP says.
"We've continued to work with them all along," Ford spokesman
Todd Nissen told the Court, AP relates.
AP notes that GM Chief Financial Officer Fritz Henderson said
Tuesday that GM hasn't made any decisions about whether to keep
doing business with Plastech but is trying to help the supplier.
"We're working constructively with them to help them with their
current financial difficulties," he said.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries. In 2007, nearly 9.37 million GM cars
and trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on Nov. 9, 2007,
Moody's Investors Service affirmed its rating for General Motors
Corporation (B3 Corporate Family Rating, Ba3 senior secured,
Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity
rating) but changed the outlook to Stable from Positive. In an
environment of weakening prospects for US auto sales GM has
announced that it will take a non-cash charge of $39 billion for
the third quarter of 2007 related to establishing a valuation
allowance against its deferred tax assets (DTAs) in the US,
Canada and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
in 200 markets across six continents. With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company
provides financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom. The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter 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.
About Plastech Engineered
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.
An Official Committee of Unsecured Creditors has been appointed
in the Debtors' cases.
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 and 5;
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 on Nov. 12, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Chrysler LLC and DaimlerChrysler Financial
Services Americas LLC and removed it from CreditWatch with
positive implications, where it was placed Sept. 26, 2007. S&P
said the outlook is negative.
ENESCO GROUP: Plan Confirmation Hearing Deferred to February 13
---------------------------------------------------------------
The United States Bankruptcy Court for the Northern District of
Illinois continued to Feb. 13, 2008, at 10:00 a.m. the hearing
to consider confirmation of Enesco Group, Inc. and its debtor-
affiliates' Second Amended Chapter 11 Plan of Liquidation.
The hearing will be held at 219 South Dearborn, Courtroom 613 in
Chicago, Illinois.
As reported in the Troubled Company Reporter on Jan. 23, 2008,
the Court previously set Jan. 30, 2008, to consider confirmation
of the Debtors' amended Chapter 11 plan.
Overview of the Plan
The Debtors related that the Plan proposes to liquidate the
remaining assets of the Debtors and distribute the proceeds to
the holders of the allowed claims. The principal source of the
distributions will be:
a) cash on hand as of the effective date of the Plan;
b) proceeds from the Debtors' lender settlement;
c) proceeds and tax refunds arising out of the resolution of
the Hong Kong Tax Dispute;
d) proceeds from the Contingency Litigation Agreement; and
e) Litigation Trust Proceeds.
Summary Treatment of Claims Under The Plan
The Plan proposes that all holders of allowed administrative
claims, allowed priority claims, other than the Internal Revenue
Service, and the allowed non-tax priority claims will have their
allowed claims paid in full on or about the effective date of
the plan from the proceeds of the Lender Settlement.
In addition, within 60 days of the effective date, general
unsecured creditors will receive their pro-rate share of
US$480,000 from the proceeds of the Lender Settlement. The
Debtors say that general unsecured creditors are expected to
receive 27% of their claims. Unsecured creditors will further
be entitled to receive additional future distribution.
Within the same time frame, the Internal Revenue Service will
receive US$650,000 from the proceeds of the Lender Settlement
and will be entitled to receive additional future distribution.
Additional contributions, the Debtors say, are however,
contingent on future recoveries by the Debtors and are not
guaranteed. The Contingency Litigation Trust, the Debtors add,
are also not guaranteed.
Summary Creditor Treatment if Plan is Not Confirmed
The Debtors tell the Court that if the Plan is not confirmed,
then they are not substantively consolidated for purposes of the
Plan or their cases are converted to ones under Chapter 7 of the
Bankruptcy Code.
At the conclusion of the Chapter 7 cases, administrative claims
will still be paid in full. However, tax priority claims
holders will only receive 4.9% of their claims. General
Unsecured Creditors on the other hand, will receive nothing.
The Debtors reveal that the primary reasons for the
significantly smaller distributions under this scenario are:
1) the proceeds and other benefits from the:
-- Lender Settlement;
-- the Contingency Litigation Agreement; and
-- the resolution of the Hong Kong Tax Dispute,
will be substantially compromised or lost, resulting in a
significantly smaller recovery by the Debtors' estates;
and
2) there will be additional administrative costs if the
Plan is not confirmed.
About Enesco Group
Based in Itasca, Illinois, Enesco Group, Inc. --
http://www.enesco.com/-- is a producer of giftware, and home
and garden decor products. Enesco's product lines include some
of the world's most recognizable brands, including Disney,
Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane,
Border Fine Arts, among others.
Enesco distributes products to a wide array of specialty gift
retailers, home decor boutiques and direct mail retailers, as
well as mass-market chains. The company serves markets
operating in Europe, particularly in the United Kingdom and
France, as well in the Asia Pacific in Australia and Hong Kong.
In Latin-America, the company has operations in Mexico.
Enesco Group and its two affiliates, Enesco International Ltd.
and Gregg Manufacturing, Inc., filed for chapter 11 protection
on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565).
Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps,
Slate, Meagher & Flom LLP, represent the Debtors. Epiq
Bankruptcy Solutions, LLC, acts as the Debtors' claims and
noticing agent. Adelman & Gettleman Ltd. represents the
Official Committee of Unsecured Creditors as bankruptcy counsel.
In schedules of assets and debts filed with the Court, Enesco
disclosed total assets of US$61,879,068 and total debts of
US$231,510,180.
GERDAU SA: To Purchase 49% of Corsa Controladora
------------------------------------------------
Gerdau SA said in a filing with the Mexican stock exchange
Bovespa that its board of directors has authorized the purchase
of 49% in Mexican holding Corsa Controladora.
Business News Americas relates that Gerdau said in October 2007
that it will acquire the stake in Corsa Controladora, which
controls steelmaker Aceros Corsa and its distributors.
According to Gerdau's filing, the purchase price totals US$112
million.
BNamericas notes that Gerdau also entered into an accord with
Corsa Controladora in 2007 for the construction of a new Mexican
steel mill, which would cost US$400 million. The plant would
start operating in 2010 and would produce 700,000 tons per yeary
of rolled steel products.
Headquartered in Porto Alegre, Brazil, Gerdau SA
-- http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s
Ba1 corporate family rating and stable outlook.
GRUPO MEXICO: Restarts Ore Processing at Cananea Mine
-----------------------------------------------------
Grupo Mexico SA, de C.V.'s communications officer told Business
News Americas that the company has restarted ore processing at
its Cananea copper mine at a limited rate after strikes crippled
operations for almost six months.
Grupo Mexico spokesperson Juan Rebolledo commented to
BNamericas, "It will take seven to 10 weeks to rehabilitate the
installations. It's going to take time and a return to
production will be gradual."
The mine is producing about 300 tons per day of copper, or 40
tons per day of cathode and 250 tons per day of copper
concentrate, Reuters states, citing Mr. Rebolledo.
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, is the world's third largest copper producer, fourth
largest silver producer and fifth largest producer of zinc and
molybdenum.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'. The rating still holds to date with a stable
outlook.
IXE BANCO: S&P Holds BB/B Counterparty Rating; Outlook Stable
-------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB/B'
counterparty credit rating and CD rating on IXE Banco S.A. The
outlook is stable.
At the same time, S&P affirmed its 'B' long-term rating on the
US$120 million perpetual, noncumulative, nonpreferred,
subordinated, nonstep-up notes.
"The ratings on IXE Banco are limited by the amount of losses
reported, aggressive growth, and lower-than-peers' adjusted
capitalization," said S&P's credit analyst Laurence Wattraint.
These negative factors are offset by the company's good asset
quality and its ability to increase its deposit base and raise
capital. The ratings reflect the bank's stand-alone credit
quality and do not account for extraordinary external support
from owners or the government.
The ratings on IXE Banco's notes reflect the notes'
subordination, the potential deferability of interest payments,
and the bank's overall financial strength. According to S&P's
criteria on hybrid capital, securities will be classified as
'Category 2, Intermediate-Strong,' with a 25% equity content for
adjusted total equity.
The stable outlook considers the bank's adequate position in its
niche segment and its successful business model, based on its
large client and deposit base. Ratings incorporate short-term
pressure on profitability, given IXE Banco's branch expansion
and technology costs. S&P expects the bank's expertise to help
it establish a viable business model, despite strong
competition. If asset quality or profitability deteriorate more
than those of peers', or if the bank's aggressive strategy does
not yield a larger credit portfolio, resulting in positive
operating income by year-end 2008, ratings could be pressured.
Headquartered in Mexico City, Mexico, IXE Banco SA --
http://www.ixe.com.mx/portal/-- is a customer-oriented
financial institution with more than US$1.5 billion in assets,
120 branches and 240,000 customers.
=================
N I C A R A G U A
=================
PERRY ELLIS: Reports Preliminary FY 2008 & Fourth Qtr. Results
--------------------------------------------------------------
Perry Ellis International Inc. announced that, based on
preliminary estimates, the company anticipated total revenue for
the twelve months ended Jan. 31, 2008 to be approximately
US$864 million, compared to US$830 million for the twelve months
ended Jan. 31, 2007. This represents an increase of
approximately 4% over the same period last year. Last year's
pro forma results exclude the impact of US$3.0 million in debt
extinguishment costs (US$1.9 million net of taxes) incurred as a
result of the March 2006 prepayment of the company's
US$57 million senior secured notes.
The company ended Fiscal 2008 in a very strong financial
position. Working capital requirements were significantly
reduced, with inventories down to approximately US$135 million
compared to US$139.7 million in Jan. 31, 2007, and accounts
receivables reduced to approximately US$138 million compared to
US$157.1 million at the end of Fiscal 2007. Strong cash flows
also allowed the company to completely pay-off its credit
facility as of Jan. 31, 2008.
"We are extremely proud of the results achieved during Fiscal
2008. We grew revenues and earnings to record levels despite the
current retail environment and solely through organic
initiatives, demonstrating the strength of our growth platforms
and business model," George Feldenkreis, chairman and Chief
Executive Officer, commented. "Perry Ellis International is now
enjoying its strongest financial situation in Company history,
and with the addition of Laundry and C&C California we look
forward to a better Fiscal 2009 and beyond," Mr. Feldenkreis
concluded.
For the fourth quarter ended Jan. 31, 2008, the company expects
revenues of approximately US$212 million compared to
US$231.6 million for the fourth quarter ended Jan. 31, 2007.
This represents a decrease of approximately US$19 million over
the company's revenues for the same period last year. This
decrease includes the exit of bottoms private label programs at
mass merchants, as well as the anticipated reduction of bottoms
replenishment programs at mid-tier retailers.
"Our strategy of reducing exposure to low margin businesses and
in particular, private label is key for Perry Ellis
International's long term success," said Oscar Feldenkreis,
president and COO. "We are committed to increasing the
allocation of resources to our growth platforms - Perry Ellis
Collection, Golf, Hispanic, Swim, Retail and now Contemporary.
These businesses carry better margins and have been performing
at or above plan, leading to sustained growth in revenue and
earnings."
"We recognize that the first half of Fiscal 2009 will be
challenging, however, current bookings and initial readings
indicate that this year's first half should be at least equal,
if not better than first half of last year. We will provide
full guidance during our March 18th release call," Mr.
Feldenkreis concluded.
About Perry Ellis
Perry Ellis International Inc., based in Miami, Florida,
designs, sources, markets and licenses a portfolio of brands
including Perry Ellis, Jantzen, John Henry, Cubavera,
Munsingwear, Original Penguin and Farah. The company also
operates 38 retail locations including 3 Original Penguin
locations. The company has sourcing offices in Indonesia,
India, Korea, Thailand, Peru, Nicaragua, and El Salvador.
* * *
In October 2006, Moody's Investors Service's confirmed its B1
Corporate Family Rating for Perry Ellis International, Inc., and
its B3 rating on the company's USUSUSUS$150 million senior
subordinated notes.
Additionally, Moody's assigned an LGD5 rating to those bonds,
suggesting noteholders will experience a 78% loss in the event
of a default.
===========
P A N A M A
===========
CHIQUITA BRANDS: Completes US$200MM Offering of 4.25% Sr. Notes
---------------------------------------------------------------
Chiquita Brands International, Inc. closed its offering of
US$200 million aggregate principal amount of 4.25% Convertible
Senior Notes, including the full exercise by the underwriters of
the US$25 million overallotment option granted by the company.
Net proceeds of approximately US$194 million will be used to
repay a portion of the outstanding amounts under the company's
Term Loan C of its senior secured credit facility.
The convertible senior notes mature in 2016 and will bear
interest at a rate of 4.25% per annum, payable semiannually in
arrears, beginning Aug. 15, 2008. The Notes are convertible,
under certain circumstances described in the prospectus, at an
initial conversion rate of 44.5524 shares of common stock per
US$1,000 original principal amount of Notes, equivalent to an
initial conversion price of approximately US$22.45 per share of
Chiquita common stock, subject to adjustment. This represents
an initial premium of approximately 32.5% to the last reported
sale price of Chiquita's common stock on Feb. 6, 2008, of
US$16.94.
The Notes are unsecured unsubordinated obligations of Chiquita
Brands International, Inc. and rank equally with any unsecured
unsubordinated indebtedness Chiquita may incur. Beginning
Feb. 19, 2014, Chiquita may call the Notes for redemption if the
common stock trades above 130% of the conversion price, or
initially approximately US$29.19 per share, for at least 20 of
the 30 trading days preceding the redemption notice. The offer
and sale of the convertible senior notes were made pursuant to
an effective shelf registration statement filed with the
Securities and Exchange Commission.
Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. were the
joint book-running managers for the offering. A prospectus
relating to the offering may be obtained from:
Goldman, Sachs & Co., Prospectus Department,
85 Broad Street, New York, New York 10004,
fax: 212-902-9316 or
email: prospectus-ny@ny.email.gs.com.
A prospectus may also be obtained from:
Morgan Stanley & Co. Inc., Prospectus Department,
180 Varick Street, New York, New York 10014,
telephone number: 1-866-718-1649, or
email: prospectus@morganstanley.com.
Cincinnati, Ohio-based Chiquita Brands International Inc. (NYSE:
CQB) -- http://www.chiquita.com/-- markets and distributes
fresh food products including bananas and nutritious blends of
green salads. The company markets its products under the
Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks.
Chiquita employs approximately 25,000 people operating in more
than 70 countries worldwide, including Colombia, Panama and the
Philippines.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2008, Moody's Investors Service affirmed, among others,
Chiquita Brands International Inc.'s B3 Corporate family rating
and B3 Probability of default rating. Moody's rating outlook
remains negative.
===============
P A R A G U A Y
===============
MILLICOM INTERNATIONAL: Earns US$697.1 Million in Full Year 2007
----------------------------------------------------------------
Millicom International Cellular S.A. reported net income of
US$697.1 million on net sales of US$2.63 billion for the year
ended Dec. 31, 2007, compared to net income of US$168.9 million
on net sales of US$1.57 billion in 2006.
For the three months ended Dec. 31, 2007, the company earned
US$112.7 million on net sales of US$768.2 million compared to
net income of US$49.8 million on net sales of US$543.7 million
for the same period in 2006.
Marc Beuls, Chief Executive Officer of Millicom commented; "The
strong growth recorded in the fourth quarter of 2007
demonstrates the gathering momentum within the businesses, with
Millicom reporting a record intake of 3.4m new subscribers in
the seasonally strong fourth quarter. For the full year, there
was a total of 8.4m subscribers added in 2007, up by 56% year on
year. We saw the opportunity in 2007 to increase our rate of
investment, as the markets in which we operate continue to grow
at a fast pace. Total capex was over $1bn for the full year
compared to $616m in 2006. We expect to maintain this high
level of capex with investment targeted in excess of $1bn in
2008."
"The strongest cluster in terms of subscriber acquisition was
Central America which was up 71% in the year with 1.4m new
subscribers added in Q4, which was a quarterly record for a
cluster. The African cluster was not far behind with subscriber
growth of 66% during 2007 and over one million new subscribers
were added in Q4, the first time that this has happened. This
is extremely encouraging for the future as the African markets
have the lowest levels of penetration and so the greatest
opportunity for growth. Our financial performance continues to
be strong with revenues up by 67% year on year and EBITDA up by
55%. Excluding the Colombian acquisition, the respective
increases in revenue and EBITDA were 47% and 45% for the year.
There was impressive revenue growth of 57% in South America
excluding Colombia, 53% in Africa, 44% in Central America and
33% in Asia."
"The African results are particularly exciting as strong growth
was experienced across all the major markets. Today we have
over 2m customers in Ghana and saw a 34% sequential growth in
subscribers from the third to the fourth quarter. We have over
1m customers in both Tanzania and Senegal and saw sequential
growth during the fourth quarter of 20% and 13% respectively in
these two markets. In all three operations, Tigo benefited from
several affordability initiatives made earlier in the year. Our
investments to improve the availability, reliability and reach
of the networks in these countries are now enabling us to
attract the higher quality customers in these markets which
should help drive future growth. The newer African markets are
also now gaining traction: Congo DRC grew by 38% from the third
to the fouth quarter to 547k subscribers and the smaller market
of Chad grew by 14% sequentially to 323k subscribers. Sadly, we
were asked to shut down our network by the government in Chad on
January 31, 2008 because of a rebel attack on the capital city,
N'Djamena. Our people are safe and the network is undamaged.
The situation has improved considerably and our people are in
the process of returning to our offices. We will be resuming
operations imminently. Although revenue in Africa grew by 53%
during the full year 2007, the very strong intake of subscribers
and the development of the new businesses in Chad and DRC
impacted the EBITDA margin, which was down to 31% for the year
from 39% in 2006. We believe that we have seen a low in terms
of EBITDA margins in Africa in Q3 and by Q4 there was a slight
improvement. From a bigger base that will enable us to drive
economies of scale, we expect to be able to continue gradually
to improve the overall EBITDA margin in Africa despite continued
aggressive expansion."
"The results from Central America continue to be strong and
again reflect the high level of investment in 2007. Tigo
continues to build or hold market share. EBITDA margins in
Central America increased slightly to 53% for the year, but in
Q4 margins were down slightly to 51% reflecting the record
intake in Q4 and the related cost of handset subsidies which
were needed to attract additional high value subscribers ahead
of the launch of 3G services in 2008. In Honduras a new fourth
licence was awarded during the quarter. Launches by the third
and fourth operators are likely to accelerate penetration growth
but also bring about a decline in our very high market share in
Honduras, although we expect to maintain our strong number one
position."
"In South America all three businesses continue to grow strongly
with revenue growth of 152% year on year and, excluding
Colombia, this region had an underlying growth rate of 57% in
2007. As has already been announced, the Colombian regulator
cut interconnect rates from 12 UScents to 6 UScents on December
7, 2007. There has been a short term impact to revenues as Tigo
has historically had more incoming than outgoing calls.
Revenues and EBITDA in December were impacted by some $7m and
$5m, respectively. We used this reduction in interconnect costs
to reduce our outgoing tariffs, and at the same time, took the
opportunity to reduce most other tariffs as well. Due to the
price elasticity that we believe exists in this market, we
expect to offset the impact of the interconnect change gradually
as we progress throughout 2008. Long term, we believe that the
cut in interconnect rates will be beneficial, especially for
Tigo as the third operator. Tigo added 267k subscribers in Q4
in Colombia, an increase of 11%, and continues to see a steady
growth in subscriber intake quarter on quarter. We are on track
to reach our market share target of 20% in a few years."
"Asian revenues grew by 33% and EBITDA by 30% in 2007 with a 41%
EBITDA margin. The EBITDA margin in Q4 was impacted by the
settlement of a revenue share dispute in Cambodia relating to
the international gateway, which had an adverse impact of $2.1m.
The full year and Q4 EBITDA margins would have been 42% and 41%
respectively, without this settlement cost. Sri Lanka continues
to grow strongly with EBITDA margins in excess of 50%."
"During the year, Millicom repurchased $90m face value of the
10% Senior Notes as part of an on-going programme to improve
balance sheet efficiency by retiring debt at the corporate level
and replacing it with debt at the operating companies which
helps to reduce the overall effective tax rate. We have the
right to redeem the remaining Notes in December 2008 and have
decided to exercise this option at that time. Due to the planned
early redemption, we accrued the bulk of the 5% redemption
premium in the fourth quarter, increasing interest expense by
$31m."
"After the year end, Millicom forced the conversion of its $200m
convertible bond, again removing corporate debt that will be
replaced with local operating company debt. Millicom will save
approximately $16m of interest at the corporate level over the
next two years by redeeming this debt early."
"Due to the better than expected results of our Colombian
operation during the year, and the anticipated strength of this
operation going forward, we have been able to record a deferred
tax asset in the fourth quarter for the net operating losses
assumed as part of this acquisition and the losses incurred
since the acquisition date. The total tax benefit recorded by
Colombia Movil in the fourth quarter was $86m. This has
resulted in an effective tax rate for the Group of 16% for the
full year in 2007."
"As a result of the one time net cash flow benefit attributable
to the Paktel sale, the Board of Directors is recommending a
special dividend of $2.40 a share to be paid following
ratification at the Annual General Meeting in May 2008. The
Board will consider establishing a recurring dividend in future
on the basis of the expected free cash flows, which is EBITDA
less interest, taxes and Capex."
"Today Millicom has a very strong balance sheet which will
enable the Company to continue to exploit its strong market
position in sixteen of the best growth markets in the world.
This financial strength with very low leverage enables us to
look at a wide variety of options to generate shareholder value
in an uncertain economic climate which may bring opportunities."
Headquartered in Bertrange, Luxembourg, and controlled by
Sweden's AB Kinnevik, Millicom International Cellular S.A.
-- http://www.millicom.com/-- is a global telecommunications
investor with cellular operations in Asia, Latin America and
Africa. It currently has cellular operations and licenses in 16
countries. The Group's cellular operations have a combined
population under license of around 391 million people.
The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras. The population under
license in Central America at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay. The population under license in South
America at December 2005 is 15.2 million.
* * *
As reported in the Troubled Company Reporter-Latin America
Nov. 16, 2007, Moody's Investors Service has upgraded ratings of
Millicom International Cellular S.A. The corporate family
rating was upgraded to Ba2 from Ba3 and the rating on the
existing senior notes was upgraded to B1 from B2. Moody's said
the outlook on the ratings is stable.
=======
P E R U
=======
LEVI STRAUSS: Nov. 25 Balance Sheet Upside-Down by US$398 Mil.
--------------------------------------------------------------
Levi Strauss & Co.'s balance sheet, as of Nov. 25, 2007, showed
total assets of US$2.85 billion and total liabilities of
US$3.24 billion, resulting in a US$398 million stockholders'
deficit.
For the full year of 2007, the company reported US$460.3 million
of net income on US$4.1 billion of net sales compared to US$239
million of net income on US$4.2 billion of net sales in 2006.
Net revenues for the fourth quarter improved 2 percent to US$1.3
billion compared to the same period last year, and increased 4
percent to US$4.4 billion for fiscal 2007 compared with the
previous year on a reported basis. Excluding currency effects,
net revenues decreased by 2 percent in the quarter compared with
the same period in 2006, reflecting declining sales in North
America. For the fiscal year, net revenues increased 1 percent
excluding currency effects compared to 2006, driven by sales
growth in Asia-Pacific emerging markets, Europe and the U.S.
Levi's(R) brand.
Income before income tax increased 9 percent to US$376 million
for fiscal 2007 compared with US$345 million in fiscal 2006.
Net income increased in the fourth quarter by 179 percent or
US$171 million to US$267 million compared to the same period
last year.
"In 2007 we continued to make good progress on growing the
Levi's(R) brand around the world, upgrading our Levi's(R) and
Dockers(R) products, and expanding our retail network," said
John Anderson, president and chief executive officer. "I'm
particularly pleased with the solid performance of our European
business. Although the company had a challenging fourth
quarter, we improved our financial strength in 2007."
"Looking ahead, we anticipate a difficult retail environment in
several markets around the world. We will focus on product
innovation, retail expansion and optimizing our global presence
in more than 110 countries," said Mr. Anderson.
"We continued to improve our financial strength in 2007,
delivering solid operating margins while investing in our brands
and systems. We also reduced debt by more than $250 million and
secured lower interest rates in our debt restructuring actions
taken during the year, helping us further reduce interest
expense," said Hans Ploos van Amstel, Chief Financial Officer.
"In 2008, we are continuing to focus on cash flow and building
our brands. Our improved financial strength will help us as we
face the economic uncertainty ahead."
About Levi Strauss & Co.
Headquartered in San Francisco, California, Levi Strauss & Co. -
- http://www.levistrauss.com/-- is a branded apparel company.
The company designs and markets jeans and jeans-related pants,
casual and dress pants, tops, jackets and related accessories
for men, women and children under its Levi's, Dockers and Levi
Strauss Signature brands in markets around the world. Levi
Strauss & Co. distributes its Levi's and Dockers products
primarily through chain retailers and department stores in the
United States, and through department stores, specialty
retailers and franchised stores abroad. The company distributes
its Levi Strauss Signature products through mass channel
retailers in the United States and abroad.
The company employs a staff of approximately 10,000 worldwide,
including approximately 1,010 at the company's San Francisco,
California headquarters. Levi Strauss Europe is headquartered
in Brussels, Belgium, while Levi's Asia Pacific division is
based in Singapore. Levi's has operations in Brazil, Mexico,
Chile and Peru.
* * *
In October 2007, Fitch Ratings assigned a 'BB+' rating to Levi
Strauss & Co.'ssecond amended and restated US$750 million 5-year
Asset-Based Revolving Credit Facility. The rating outlook is
stable.
Levi Strauss carries Fitch's BB- Issuer Default Rating; BB+ Bank
Credit Facility rating; and BB- Senior Unsecured Notes rating.
====================
P U E R T O R I C O
====================
ADVANCED CARDIOLOGY: Files Amended Disclosure Statement
-------------------------------------------------------
Advanced Cardiology Center Corp. filed an amended disclosure
statement explaining its amended Chapter 11 Plan of
Reorganization with the U.S. Bankruptcy Court for the District
of Puerto Rico on Jan. 29, 2008.
Summary Of The Plan
The amended Plan provides full payment of all secured claims,
priority claims, assumed executory contracts deficiencies and
administrative expenses.
The Plan will be funded in:
a) Cash on hand on its effective date;
b) Collection of ACCC's accounts receivable, including debts
from insiders;
c) Future earnings of the Reorganized ACCC over the next five
years; and
d) New value invested by shareholders of US$300,000.
Treatment Of Claims
Under the Plan, administrative claims totaling US$375,000, will
be paid in full.
Holders of Infomedika's US$238,599 secured claims will receive
payment in full at the effective date of the Plan.
Classified Priority claims totaling US$4,057,330 will receive
full payment commencing on the Effective Date, plus 6% interest.
General Unsecured claimants will receive 50% of the allowed
amount of their claims in one lump sum payment to be made on or
before one month after the Effective Date without interest.
Holders of General Unsecured Claim with an amount greater than
US$5,000 must reduce their claims to US$5,000 in order to be
paid.
General unsecured claims of more than US$5,000, totaling
US$7,204,994, will be paid 50% of their claims, half of which
will be paid in 60 equal quarterly payments commencing on the
effective date, and the other half to be paid in one lump sum
sixty months after the effective date.
Holders of executory contracts, all of which are to be assumed,
will receive 100% of the allowed cure costs of contracts,
expected to be at US$986,018, in 36 equal monthly payments or
the life of the contract, whichever is longer, commencing on the
effective date.
Equity holders will retain their interests in ACCC. However,
each shareholder will contribute $2,500 a month during the five
years of the Plan, for a total new value invested in ACCC of
US$300,000, in order to fuel the Plan.
In addition, the Debtor has agreed with its shareholders that
they will pay their debt with ACCC by signing a ten year 8.25%
promissory note, payable in monthly installments of US$5,070.48
in the case of Dr. Carlos Carro, and US$3,542.98 in the case of
Efrain Soto.
About Advanced Cardiology Center Corp.
Based in Mayaguez, Puerto Rico, Advanced Cardiology Center Corp.
filed for Chapter 11 protection on Jan. 8, 2007 (Bankr. D. P.R.
Case No. 07-00061). Alexis Fuentes-Hernandez at Fuentes Law
Offices represents the Debtor. When the Debtor filed for
protection from its creditors, it estimated assets and debts
between US$10 million and US$50 million.
AEROMED SERVICES: Hires Alexis Fuentes-Fernandez as Counsel
-----------------------------------------------------------
Aeromed Services Corp. obtained permission from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ
Alexis Fuentes-Hernandez, Esq., at Fuentes Law Offices, as its
bankruptcy counsel.
The firm will bill the Debtor US$175 per hour for its services.
The firm has received a US$10,000 retainer from the Debtor.
Mr. Fuentes-Hernandez assures the Court that his firm is a
"disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.
Mr. Fuentes-Hernandez can be reached at:
Alexis Fuentes-Hernandez, Esq.
Fuentes Law Offices
405 San Francisco Street, Suite 4-A
Old San Juan, Puerto Rico 00901
Tel: (787) 607-3436
Fax: (787) 722-5206
Based in San Juan, Puerto Rico, Aeromed Services Corp. --
http://www.aeromedems.com/-- offers air ambulance services.
The company filed for Chapter 11 protection on Jan. 31, 2007
(Bankr. D. P.R. Case No. 08-00518). When the Debtor filed for
protection from its creditors, it listed assets and debts
between US$1 million and US$100 million.
BADRAN STORES: Court OKs Mender as Accountant & Consultant
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico has
approved the employment of Wigberto Lugo Mender, CPA, as Badran
Stores Corp.'s accountant and financial consultant.
Mr. Mender will:
-- serve as financial consultant on matters that may
arise as a result of the bankruptcy petition, as
may be requested by the firm's management;
-- assist the company and its counselors in the
proceedings before the court related to the
bankruptcy petition and in any other State Court as
may be necessary as requested given a particular
matter;
-- assist the company's management in the preparation
of reports and other financial memoranda to be
filled with the court and the listed creditors to
the bankruptcy petition; and
-- provide any other technical or financial support
required in the case;
Mr. Mender will bill the Debtor US$200 per hour for his
services.
Other professionals at Mr. Mender's firm charge at these hourly
rates:
Accounting supervisors US$120
Senior accountants US$100
Staff accountants US$80
A retainer of US$3,000 for services to be performed in this case
was paid to Mr. Mender.
To the best of the Debtor's knowledge, Mr. Mender holds no
interest adverse to the company or its estates.
Mr. Mender can be reached at:
Wigberto Lugo Mender
Centro Internacional de Mercadeo Carr
165 Torre I Suite 501
Guaynabo, PR 00968
Puerto Rico
Phone: (787)707-0404
Fax: (787)707-0412
URL: www.lugomender.com
Headquartered in Ponce, Puerto Rico, Badran Stores Corp.
filed for Chapter 11 protection on November 13, 2007
(Bankr. D. Puerto Rico, Case No. 07-06728). Madeline Soto
Pacheco, Esq., at Lube & Soto Law Offices, P.S.C represents the
Debtor. When the Debtor filed for bankruptcy, it listed
total assets and debts between $1 million to $100 million.
The Debtor's largest unsecured creditor as of its bankruptcy
filing is Rubio Imports Inc. holding $107,591 in trade debt
claims.
FIRST BANCORP: Raymond James Upgrades Firm to Strong Buy
--------------------------------------------------------
US investment bank Raymond James said in a report that it has
upgraded Puerto Rican firm First Bancorp's shares to "strong
buy" from "outperform."
According to Raymond James' report, the bank raised its target
price for First Bancorp's shares to US$15 from US$12.
Business News Americas relates that Raymond James increased
First Bancorp's earnings per share estimate for this year to
US$0.45, from US$0.17. It established an initial earnings per
share estimate of US$1.14 for next year.
BNamericas notes that First Bancorp had a loss of US$0.03 per
share in the fourth quarter 2007, compared to a US$0.20 profit
per share in the fourth quarter 2006.
Raymond James told BNamericas that these were notable positives
in the fourth quarter 2007:
-- indications of credit quality stabilization,
-- net interest margin expansion, and
-- rapidly decreasing financing costs.
Raymond James said in its report that First Bancorp "is very
well positioned to benefit from lower short-term interest rates
and a steepening of the yield curve since most of its
liabilities are tied to the three-month Libor while a
significant amount of its assets are fixed rate."
Raymond James commented to BNamericas, "We expect the company to
establish positive earnings momentum in 2008 as it benefits from
NIM [net interest margin] expansion and credit quality
stabilization."
First BanCorp (NYSE: FBP) -- http://www.firstbankpr.com/-- is
the parent corporation of FirstBank Puerto Rico, a state
chartered commercial bank with operations in Puerto Rico, the
Virgin Islands and Florida; of FirstBank Insurance Agency; and
of Ponce General Corporation. First BanCorp, FirstBank Puerto
Rico and FirstBank Florida, formerly UniBank, the thrift
subsidiary of Ponce General, all operate within U.S. banking
laws and regulations.
* * *
default rating to First Bancorp. On Feb. 21, 2007, Fitch
assigned a BB long-term issuer default ratings.
=================
V E N E Z U E L A
=================
CITGO PETROLEUM: May Face US$169,000 Fine from US Gov't
-------------------------------------------------------
US government officials have proposed a US$169,000 fine against
Citgo Petroleum Corp's plant in Lake Charles, Lousiana, due to
alleged failure to protect its workers from hazardous working
conditions, the Associated Press reports.
The AP relates that the US Department of Labor's Occupational
Safety and Health Administration disclosed three Citgo Petroleum
citations alleging willful failure to follow safety requirements
and 12 citations alleging serious violations at its Lake Charles
plant.
According to the AP, none of Citgo Petroleum's workers at the
plant was hurt. The plant has 1,400 workers.
Citgo Petroleum is given 15 days to comply, request an informal
review conference with the agency's officials, or contest the
citations and fine, the AP states.
As reported in the Troubled Company Reporter-Latin America on
Feb. 11, 2008, Citgo Petroleum agreed to the US$155,250 in fines
that the Occupational Safety imposed, when the agency found out
that the firm committed multiple violations of federal workplace
safety standards at its plant in Lemont, Illinois. The agency
launched a safety inspection at the refinery in August 2007 as
part of the agency's national emphasis program for petroleum
plants.
Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.
Petroleos de Venezuela is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical, and
coal industry, as well as planning, coordinating, supervising,
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, CITGO Petroleum Corporation's Issuer Default
Rating was lowered by Fitch to 'BB-' from 'BB' following the
company's announcement that it has taken out a US$1 billion
bridge loan and used the proceeds to make a US$1 billion loan to
parent Petroleos de Venezuela SA (PDVSA IDR 'BB-', Negative
Outlook).
PETROLEOS DE VENEZUELA: Exxon's Suit Seen as U.S. Political Move
----------------------------------------------------------------
Speaking at a televised address from Jose, Venezuela, Energy and
Oil Minister Rafael Ramirez said Exxon Mobil Corp.'s lawsuit to
freeze Petroleos de Venezuela SA's foreign assets "wasn't a
disagreement over economic terms" but rather a political move by
the United States to destabilize the country, Steven Bodzin of
Bloomberg News reports.
PDVSA, a state-owned company, was barred from taking or
disposing of up to US$12 billion in petroleum assets worldwide
after courts in Britain and the U.S. ordered freezing of those
assets.
Chris Kraul of the Los Angeles Times says Exxon Mobil sought
the ruling amid reports that PDVSA could be looking to sell
assets to counter financial crisis.
A U.K. court filing cited by Bloomberg News says however that
Exxon Mobil is concerned that PDVSA will transfer assets to
other countries including China to put them out of reach of
an international arbitration commission.
Last year, Mr. Chavez nationalized oil projects in the country
prompting Exxon Mobil to seek international arbitration to
recover the value of its investments in those projects.
As to the results of the international arbitration, Bloomberg
News cited Mr. Ramirez as saying that "sovereign state decisions
are the sole responsibility of the people and can't be
questioned by any multinational company nor any international
court."
In an earlier statement published in the Troubled Company
Reporter-Latin America on Feb. 12, 2008, Mr. Ramirez deplored a
media campaign based on ignorance to manipulate the case of
Exxon Mobil.
"I am concerned about such a lack of knowledge by the domestic
media about the situation and an attempt at manipulation. I
condemn the shameful, grotesque position of some national
sectors that are partying or having fun in support of the
interests of multinational companies," the PDVSA Executive
Director lamented.
Also, Mr. Ramirez denied emphatically the misinformation. The
top officer explained that there is no court final ruling
against the corporation, but an interim or precautionary measure
as long as PDVSA makes its arguments in the interest of the
Republic.
Supporting Statements
The Venezuelan State will come out stronger of the international
arbitration process between PDVSA and Exxon Mobil, the
Venezuelan state company's advisor Sarah Moya Machado said
during an interview in the TV show Al Momento, broadcast by the
channel Venezolana de Television.
The specialist added that "the country's legal stability and
sovereign decisions will make Venezuela an international
reference. We will show the world you can change (the
capitalist model) following a stable legal framework", she
emphasized.
Ex secretary of the Organization of Petroleum Exporting
Countries and oil expert, Alvaro Silva Calderon, also affirmed
that the actions undertaken by Exxon Mobil "are part of the last
thrashing tails of the oil opening process which introduced a
series of mechanisms such as arbitration."
Analyst Calderon explained that international arbitration was
allowed during the oil opening era, despite the fact that the
right of States to exert sovereignty over their natural
resources is well known and established in multiple United
Nations resolutions.
According to Silva Calderon, Venezuela has acted in a clear and
legal manner through legislation and Government acts that no
other company has questioned. These decisions are part of the
Nation's determination to protect its independence and recover
"the jurisdictional and sovereign right to the oil industry".
About Petroleos de Venezuela SA
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
PDVSA estimates it will achieve a 5 million 847 thousand barrel
per day production capacity by the year 2012.
PETROLEOS DE VENEZUELA: Petrocedeno To Shut Down Crude Upgrader
---------------------------------------------------------------
Venezuelan state-owned oil firm Petroleos de Venezuela SA said
in a statement that its Petrocedeno joint venture will close
down its heavy crude upgrader for 49 days starting Feb. 25 for
maintenance, cleaning, inspection and repairs.
The maintenance measures would be completed on April 14,
Peroleos de Venezuela said in a press statement.
Business News Americas relates that Petrocedeno will use Mesa 30
crude to produce 202,000 barrels per day of Merey 16 diluted
crude.
According to Petroleos de Venezuela's statement, Petrocedeno can
produce 200,000 barrels per day of extra heavy crude, which is
usually upgraded to produce some 180,000 barrels per day of
crude oil.
About Petrocedeno
Petrocedeno, fka Sincor, is Petroleos de Venezuela's joint
venture with French oil firm Total and Norway's StatoilHydro.
Petroleos de Venezuela holds a 60% stake in the joint venture,
while Total has a 30.3% interest and Norway's StatoilHydro holds
9.7%.
About Petroleos de Venezuela SA
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
PDVSA estimates it will achieve a 5 million 847 thousand barrel
per day production capacity by the year 2012.
PETROLEOS DE VENEZUELA: Fitch Says Freeze Has Little Effect
-----------------------------------------------------------
Fitch Ratings views a British court order to freeze up to
US$12 billion of Petroleos de Venezuela SA's worldwide assets to
have a minimum impact on the company's day to day operations, as
well as its near term credit quality and financial flexibility.
In order to comply with this court order, PDVSA must maintain
$12 billion of unencumbered assets anywhere in the world. The
order in and of itself does not prevent PDVSA from transacting
business, and from a practical perspective transferring assets
given its total consolidated asset base of more than
US$92 billion. PDVSA is expected to oppose this decision and
present their opposing arguments later this month. The
enforcement of this order and the applicability of British
jurisdiction over assets domiciled outside of the UK
remain unclear at this time.
More importantly, this order is part of the legal wrangling over
the ongoing dispute between PDVSA and Exxon Mobil
regarding the nationalization of the Cerro Negro heavy oil
project in the Orinoco belt. The compensation to Exxon
Mobil for this action remains in dispute and is currently in
arbitration; the outcome of this arbitration process
remains uncertain. A negative outcome of the arbitration could
pressure the credit profile of PDVSA, which timing
could be lengthy. In the meantime, the ability of the courts to
encumber any of PDVSA assets before the arbitration
process is complete is unlikely.
PDVSA, Venezuela's national oil company, is engaged in the
exploration and production of crude oil and natural gas;
the refining, marketing and transportation of crude and refined
products; and the production of petrochemicals, as
well as various other hydrocarbon-related activities in
Venezuela and abroad. The Venezuelan government is the
company's sole shareholder. The majority of PDVSA's cash
generating assets are located in Venezuela (85%), and in
the United States (15%) through its Citgo subsidiary. PDVSA's
European assets represent only a small portion of the
company's US$92.6 billion of total consolidated assets as of
June 30, 2007.
The company's Long Term Issuer Default Rating and Local Currency
Long Term Issuer Default Rating are both rated BB- by Fitch.
Fitch also said that ratings outlook was negative.
About Petroleos de Venezuela SA
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
PDVSA estimates it will achieve a 5 million 847 thousand barrel
per day production capacity by the year 2012.
* VENEZUELA: Oil Output Down by 1/3 on Mr. Chavez's Policies
------------------------------------------------------------
Venezuela's oil output has plunged by more than one-third
or about 1.2 million barrels a day on President Hugo Chavez's
socialist policies, Cambridge Energy Research Associates was
cited by Joe Carroll of Bloomberg News as saying.
Rene Ortiz, a CERA senior associate told Bloomberg that
Venezuela is pumping about 2.3 million barrels of crude a day,
down from 3.5 million a day in 1998, the year before Mr. Chavez
took office.
Venezuelan Oil and Energy Minister Rafael Ramirez said
however that the country is producing 3.3 million barrels
of oil a day, Bloomberg News relates.
The difference in figures, according to Venezuelan officials
cited by Bloomberg, is a result of outside groups depending too
heavily on one another and of biased reporting by those
opposed to Mr. Chavez's government.
Last year, Mr. Chavez nationalized oil projects in the country
prompting Exxon Mobil Corp. to seek international arbitration
to recover the value of its investments in those projects.
Exxon Mobil recently won court ruling preventing state-owned
Petr›leos de Venezuela S.A. from taking or disposing of up to
US$12 billion in petroleum assets worldwide.
After news of the freeze order broke, Mr. Chavez warned he
could drive oil prices as high as US$200 a barrel by cutting
off oil supplies to the U.S.
Chris Kraul of the Los Angeles Times says Exxon Mobil sought
the ruling amid reports that PDVSA could be looking to sell
assets to counter financial crisis.
A U.K. court filing cited by Bloomberg News says however that
Exxon Mobil is concerned that PDVSA will transfer assets to
other countries including China to put them out of reach of
an international arbitration commission.
* * *
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.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *