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 Monday, February 18, 2008, Vol. 9, No. 34 Headlines A N T I G U A & B A R B U D A DELTA AIR: Will Launch Non-Stop Flights To Antigua & Barbuda A R G E N T I N A AUTOPARTES Y SERVICIOS: Court Names Jose Eduardo Obes as Trustee DANA CORP: NewCo Registers Post-Bankruptcy Common Stock DANA CORP: US$1.35 Billion Term Loan Trades on Secondary Market FORD MOTOR: Fitch Amends Ratings on Ford Credit Australia Ltd. MALFATTI CONSTRUCCIONES: Claims Verification Ends on April 23 QUIKSILVER INC: CEO Robert McKnight Resumes Role as President QUIKSILVER INC: S&P's BB- Rating Unmoved by Planned Asset Sale SCO GROUP: Secures US$100 Mil. to Finance Plan of Reorganization WENDY'S INT'L: S&P Ratings Unaffected by Bid for More Seats B A H A M A S KNOLL INC: Names Lynn Utter as North America Unit's President B E R M U D A ANNUITY & LIFE: Conn. Insurance Department Okays Subsidiary Sale INTELSAT LTD: Fitch Cuts & Withdraws Ratings MAGELLAN INSURANCE: Final Shareholders' Meeting Set March 11 SENSU LTD: Court Appoints Liquidators for Firm's Wind-Up Process WALTON INSURANCE: First Contributories' Meeting Set February 27 B O L I V I A * BOLIVIA: To Limit Natural Gas Supply for Brazil, FT Says * BOLIVIA: U.S. House Panel Extends Trade Preference B R A Z I L ASPEN TECH: To Be Delisted From Nasdaq Effective Tomorrow BRASIL TELECOM: Will Get 3G Infrastructure From Ericsson & ZTE BRASIL TELECOM: Sues Opportunity Over Equity Investment in Unit BRASKEM SA: Says 4th Quarter Results Weaker Than Third Quarter COSAN SA: Completes Acquisition of Usina BenAlcool S.A. FIAT SPA: Joint Venture With Credit Agricole Earns EUR119 Mln. PROPEX INC: Committee Selects Baker Donelson as Counsel PROPEX INC: Asks Court to Set July 7 as Claims Bar Date SITEL WORLDWIDE: Weak Liquidity Cues Moody's Negative Outlook STRATOS GLOBAL: Earns US$20 Million in Year Ended Dec. 31, 2007 TAM SA: Reports 67% International Market Share in January TAM SA: Will Combine Frequent Flyer Programs With Lufthansa UNIAO DE BANCOS: Board Approves New Stock Repurchase Program UNIAO DE BANCOS: Earns BRL715 Million in 4th Quarter 2007 VALMONT INDUSTRIES: Earns US$94.7 Million in Fiscal Year 2007 WEIGHT WATCHERS: Earns US$201.2 Million in 2007 * BRAZIL: Energy Program to Create BRL2 Billion Annual Savings * BRAZIL: Petrobras to Keep Gas Volume Imported From Bolivia C A Y M A N I S L A N D S DIAMOND REIT: Proofs of Claim Filing Is Until March 3 KUHN LIMITED: Proofs of Claim Filing Deadline Is March 4 NORODIN MARCO: Proofs of Claim Filing Deadline Is March 2 NORODIN MARCO RV: Proofs of Claim Filing Ends on March 2 TROPHOS INVESTMENTS: Proofs of Claim Filing Deadline Is March 4 C H I L E AES GENER: Resumes US$350 Million Capital Increase BOSTON SCIENTIFIC: Closes Sale of Two Units to Avista Capital BUCYRUS INT'L: Declares US$0.05 Per Share Quarterly Dividend BUCYRUS INT'L: Earns US$136.1 Million in 2007 ELECTRONIC DATA: Taps Palma as VP of Global Information Security FIDELITY NAT'L: Earnings Up 20% to US$108.4MM in 4th Qtr. 2007 INGRAM MICRO: Moody's Rates New US$275-Mln Credit Facility Ba2 C O L O M B I A GMAC LLC: Cerberus' Stephen Feinberg Warns of Difficulty Ahead SOLUTIA INC: Challenges DuPont's US$1,394,718 Admin. Claim SOLUTIA INC: Settles Bayer & Lanxess Claims' Treatment Dispute * COLOMBIA: U.S. House Panel Extends Trade Preference C O S T A R I C A ORTHOFIX INT'L: Weak Cash Flow Prompts Moody's to Review Ratings SIRVA INC: Wants to Employ Ernst & Young as Accountants SIRVA INC: MLF Investments Discloses Ownership of Shares SIRVA INC: Allowed to Continue Receivables Purchase Program SIRVA INC: U.S. Trustee Objects to Hiring of Conflicts Counsel SIRVA INC: Files Supplements to Chapter 11 Plan D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Public Debt Increases by 15.9% to US$8.6B E C U A D O R * ECUADOR: U.S. House Panel Extends Trade Preference E L S A L V A D O R TARGUS GROUP: Improved Performance Cues Moody's Stable Outlook G U A T E M A L A AFFILIATED COMPUTER: No Default Occurred Under Debenture AFFILIATED COMPUTER: To Buy SDS Biz From Waterland for US$67MM H O N D U R A S CHOICE HOTELS: Dec. 31 Balance Sheet Upside-Down by US$157 Mil. M E X I C O CALPINE CORP: New Stock Starts Trading the "Regular Way" FOAMEX LP: Weak Profile Prompts S&P to Cut Credit Rating to B- GRUPO MEXICO: Mexican Court Authorizes Miners' Protest GRUPO MEXICO: Seeking to Regain Control of Asarco LLC INTERNATIONAL RECTIFIER: Names O. Khaykin & R. Dahl as Directors VISTEON CORP: Posts US$372 Million Net Loss in 2007 P A R A G U A Y * PARAGUAY: Obtains US$1.1 Million Concessional Loan from IDB P E R U * PERU: U.S. House Panel Extends Trade Preference P U E R T O R I C O ADELPHIA COMMS: Former Headquarters Goes Back on Auction Block ALLIED WASTE: Earns US$117.6MM from Operations in 4th Qtr. 2007 DEL LABS: Moody's Withdraws Ratings After Acquisition Completion OWENS-ILLINOIS INC: Improved Cash Flow Cues S&P's Rating Upgrade R&G FINANCIAL: U.S. SEC Okays Final Settlement on Financials SEARS HOLDINGS: Diino to Provide Online Storage for Mexican Unit SEARS HOLDINGS: Plans to Reduce Workers at Headquarters by 4% S T L U C I A AIR JAMAICA: Suspending Weekly Flights to St. Lucia on April 1 V E N E Z U E L A CHRYSLER LLC: Court to Decide Fate of Tooling Dispute Tomorrow CHRYSLER LLC: Partners With Health Alliance & Henry Ford PETROLEOS DE VENEZUELA: Talks With ConcoPhillips Going Well SHAW GROUP: Cash Flow Improvement Cues S&P's Positive Outlook V I R G I N I S L A N D S NBTY INC: Solid Performance Cues Moody's Positive Outlook X X X X X X * Beard Audio Bankruptcy Examiners & Identity Theft Conferences * Fitch: Credit Crisis Will Still Affect Latin American Markets * BOND PRICING: For the Week February 11 - February 15, 2008 - - - - - =============================== A N T I G U A & B A R B U D A =============================== DELTA AIR: Will Launch Non-Stop Flights To Antigua & Barbuda ------------------------------------------------------------ Delta Air Lines will launch a non-stop service to Antigua & Barbuda on June 12 with the support of that nation's tourism authorities, Antigua Sun reports. According to Antigua Sun, British West Indies Airlines used to operate a similar non-stop service until the airline was shut down in 2006. Delta Air Lines' non-stop service will coincide with the launch of Antigua and Barbuda's first International Music Festival, Romantic Rhythms, Antigua Sun states. Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. (Delta Air Lines Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter on Jan. 17, 2008, Standard and Poor's said that media reports that Delta Air Lines Inc. (B/Positive/--) entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will have no effect on the ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications. ================= A R G E N T I N A ================= AUTOPARTES Y SERVICIOS: Court Names Jose Eduardo Obes as Trustee ---------------------------------------------------------------- The National Commercial Court of First Instance No. 1 in Buenos Aires has appointed Jose Eduardo Obes as trustee for Autopartes y Servicios SRL's bankruptcy proceeding. Mr. Obes will verify creditors' proofs of claim. He will present the validated claims in court as individual reports. The court 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 Autopartes y Servicios and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Autopartes y Servicios' accounting and banking records will be submitted in court. Mr. Obes will also be in charge of administering Autopartes y Servicios' assets under court supervision and will take part in their disposal to the extent established by law. Clerk No. 2 assists the court in this case. The trustee can be reached at: Jose Eduardo Obes Lavalle 1619 Buenos Aires, Argentina DANA CORP: NewCo Registers Post-Bankruptcy Common Stock ------------------------------------------------------- After their Jan. 31, 2008, emergence from Chapter 11, Dana Corporation, now named Dana Holding Corporation, registered a new set of common and preferred stock with the U.S. Securities and Exchange Commission. Pursuant to Dana's Third Amended Joint Plan of Reorganization, the reorganized company would issue 500,000,000 shares of capital stock, consisting of 450,000,000 shares of common stock and 50,000,000 shares of preferred stock. Of the Preferred Stock, 2,500,000 shares would be designated as Series A Preferred Stock, and 5,400,000 shares would be designated as Series B Preferred Stock. Common Stock Holders of Common Stock would be entitled to dividends declared from time to time by the board of directors out of legally available funds. Each holder of common stock is entitled to one vote for each share except for the election of directors, which is to be elected by the holders of Series A Preferred Stock. Holders of common stock are not entitled to cumulative voting rights. Marc Levin, acting general counsel and secretary for Dana Holding, says that in the event of the company's liquidation, dissolution or winding up, holders of common stock would be entitled to share equally and ratably in any assets remaining after the payment of all debt and liabilities, subject to the prior rights of holders of any outstanding preferred stock. Preferred Stock Dana Holding would issue $250,000,000 in aggregate liquidation preference of the Series A Preferred Stock to a private equity firm, in consideration for the equity firm's investment to Dana Holding. The company would also issue $540,000,000 in aggregate liquidation preference of the Series B Preferred Stock to certain qualified investors in consideration for their investment to Dana Holding. The price at which each share of Preferred Stock would be convertible into Common Stock would be 83% of its distributable market equity value per share. If, as result of that determination: (i) the holders of the Preferred Stock would own, on an as- converted, fully diluted basis, less than 32.0% of Dana Holdings' issued shares of Common Stock plus the number of shares of Common Stock that would be issued upon conversion of the Preferred Stock, necessary adjustments would be made so holders of Preferred Stock would own 32.0% of the Fully Diluted Shares; or (ii) the holders of the Preferred Stock would own, on an as- converted, fully diluted basis, more than 36.3% of the Fully Diluted Shares, necessary adjustments would be made so holders of Preferred Stock would own 36.3% of the Fully Diluted Shares. Referred percentages are subject to adjustment to the extent that Dana Holding's net debt plus the value of its minority interests as of the Effective Date is an amount other than US$525,000,000. Shares of Series A Preferred Stock having an aggregate liquidation preference of not more than $125,000,000 and the Series B Preferred Stock would be convertible at any time at the option of the applicable holder after the six-month anniversary of the Effective Date. In the event that the per share closing sales price of the Common Stock exceeds 140% of the distributable market equity value per share for at least 20 consecutive trading days beginning on or after Jan. 31, 2013, Dana Holding would be able to cause the conversion of all of the Preferred Stock. The price at which the Preferred Stock is convertible would be subject to adjustment as a result of stock splits and combinations, dividends and distributions and certain issuances of common stock or common stock derivatives. The Preferred Stock would be entitled to dividends at an annual rate of 4%, payable quarterly in cash. The shares would have equal voting rights and would vote together as a single class with the Common Stock on an as-converted basis, except that the Series A Preferred Stock would be entitled to vote as a separate class to elect three directors. At the first annual meeting of stockholders after the Effective Date, and as the initial holder of the Series A Preferred Stock owns at least US$125,000,000 of the Series A Preferred Stock, Dana Holding's board of directors would be composed of nine members, as follows: (i) three directors designated by initial holder of the Series A Preferred Stock and elected by holders of the Series A Preferred Stock, (ii) one independent director nominated by a special purpose nominating committee composed of two designees of the initial holder of the Series A Preferred Stock and one other board member, and (iii) five directors nominated by Dana Holding's board. With the exception of the three directors elected by holders of the Series A Preferred Stock, the remaining directors would be elected by holders of Common Stock and any other class of capital stock. Holders of Preferred Stock would also have the right to elect two directors in the event that six quarterly dividends on the Preferred Stock are accrued but unpaid. Additional Preferred Stock Dana's Restated Certificate of Incorporation authorizes the issuance of 50,000,000 shares of preferred stock. The Board is authorized to provide for the issuance of shares of preferred stock, in one or more series, and to fix for each series voting rights. The Board is authorized to issue shares of preferred stock and determine its rights and preferences for the purpose of eliminating delays associated with a stockholder vote on specific issuances. "The issuance of preferred stock, while providing flexibility in connection with possible acquisitions, future financings and other corporate purposes, may discourages or would make it more difficult for a third party to acquire a majority of the outstanding voting stock of Dana Holding." he concludes. Mr. Levin, informs that the shares of preferred stock may also be reissued by Dana Holding following redemption of their shares or conversion of the holder's shares, as applicable. Certain Anti-Takeover Effects Certain provisions of the Restated Certificate of Incorporation and Bylaws of Dana Holding, as well as the General Corporation Law of the State of Delaware, may have the effect of delaying, deferring or preventing a change in control of Dana Holding, including those regulating the nomination of directors, limiting who may call special stockholders' meetings and eliminating stockholder action by written consent, together with the terms of the Preferred Stock, may make it more difficult for other persons, without the approval of Dana Holding's board of directors to acquire substantial amounts of Common Stock or other attempts for the stockholders' best interest. About Dana Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total assets and US$7,665,000,000 in total debts resulting in a total shareholders' deficit of US$534,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represented the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, served as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners served as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represented the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC served as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. The Debtors' Third Amended Joint Plan of Reorganization was deemed effective as of Jan. 31, 2008. Dana Corp., starting on the Plan Effective Date, operated as Dana Holding Corporation. (Dana Corporation Bankruptcy News, Issue No. 70; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DANA CORP: US$1.35 Billion Term Loan Trades on Secondary Market --------------------------------------------------------------- The US$1.35 billion term loan portion of Dana Holding Corp.'s US$2 billion exit financing facility began trading on the secondary market Feb. 7, with the price quoted at 90/91, William Rochelle at Bloomberg News reports, citing Standard & Poor's. As reported in the Troubled Company Reporter on Feb. 12, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Dana Holding following the company's emergence from Chapter 11 bankruptcy protection on Feb. 1, 2008. The outlook is negative. "The ratings are based on the exit financing, capital structure, and other terms and conditions under Dana's plan of reorganization filed with the bankruptcy court, which has now been consummated," said Standard & Poor's credit analyst Nancy Messer. At the same time, Standard & Poor's assigned Dana's $650 million asset-based loan revolving credit facility due 2013 a 'BB+' rating -- two notches higher than the corporate credit rating -- with a recovery rating of '1', indicating an expectation of very high -- 90% to 100% -- recovery in the event of a payment default. The loan was priced at the London Interbank Offered Rate plus 375 basis points, Mr. Rochelle notes. S&P also assigned a 'BB' bank loan rating to Dana's $1.43 billion senior secured term loan -- one notch above the corporate credit rating -- with a recovery rating of '2', indicating an expectation of average -- 70% to 90% -- recovery. The bank loan ratings assume that any remaining conditions that predate the bank facility are satisfied or waived. Dana had US$1.6 billion of balance sheet debt outstanding at emergence from bankruptcy. The capital structure also includes US$792 million of 4% cash-pay convertible preferred stock, held by Centerbridge Partners L.P. and certain prior creditors, which Standard & Poor's views as equity. The ratings reflect Dana's weak business profile and aggressive financial profile, S&P explained. S&P said it could lower the ratings over the next year if Dana fails to generate free cash flow, whether because of slower restructuring efforts, more adverse market conditions, or failure to install a strong executive leadership team. In addition, S&P could lower the ratings if Dana's strategic or financial policies take a more aggressive turn under the new board of directors and executive management team. Any of these occurrences could inhibit Dana's free cash flow and the potential for reduced leverage in the near term. S&P could revise the outlook to stable if market conditions stabilize and Dana is able to modestly expand sales and EBITDA in the next few years, and if restructuring activities produce improved and sustainable adjusted EBITDA margin in 2008 and 2009 at 10% or better. The assignment of a stable outlook would also require S&P's confidence that the financial policy and business strategy of Dana's new owners would remain consistent with the current rating and that the company would resolve prior accounting issues. S&P would also need to see evidence, through the achievement of profitable new business wins, that the company is establishing itself as a credible long-term global competitor in its markets. About Dana Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total assets and US$7,665,000,000 in total debts resulting in a total shareholders' deficit of US$534,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represented the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, served as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners served as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represented the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC served as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. The Debtors' Third Amended Joint Plan of Reorganization was deemed effective as of Jan. 31, 2008. Dana Corp., starting on the Plan Effective Date, operated as Dana Holding Corporation. (Dana Corporation Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) FORD MOTOR: Fitch Amends Ratings on Ford Credit Australia Ltd. -------------------------------------------------------------- Fitch Ratings has affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. Ford continues to make steady progress on its restructuring actions, but continued weakness in the North American auto market, combined with industry cost, pricing and supplier pressures continue to limit the impact of structural cost improvements on the bottom line. International operations have shown steady improvement, benefiting the company's consolidated credit profile. Liquidity remains healthy, and sufficient to weather a significant downturn in 2008 United States industry sales, but will decline through at least 2008. Cash outflows in 2008 will be material as a result of operating losses in North America, restructuring costs, and higher net interest expense. The funding of the United Auto Workers VEBA will also impact liquidity in 2008, although the benefits from healthcare savings will not be realized until 2010. The Negative Rating Outlook is expected to remain in place until a firmer path to positive free cash flow is established. In North America, revenues will remain under pressure, particularly in the first half, due to economic conditions, the impact of the housing market on pickup sales, projected lower fleet sales and the trend to lower-priced, fuel-efficient vehicles. The new UAW contract has provided the OEMs with greater flexibility to cut production and manage inventories in response to weaker market demand -- a factor that will also result in increased production cyclicality going forward. Ford has made material improvement in its cost structure, although higher product and commodity costs have limited the impact on the bottom line. Ford's earlier buyout program extended through the third quarter of 2007, indicating that the full realization of these cost savings will continue to flow through reported results over the next several quarters. Together with Ford's new buyout program, for all North American UAW workers, that is weighted to the first quarter of 2008 and the gradual growth in Tier-2 wage employees, Ford is positioned to show demonstrable fixed cost savings through 2008. Although commodity costs are not expected to wane, the rate of growth should slow substantially, allowing structural cost savings to become more evident. Continued improvement in material, engineering and other product costs should augment margin improvement projected from labor savings. North American hourly workers could be reduced by more than 40% over the period from yearend 2005-2009, with incremental wage and benefit savings realized from the implementation of Tier-2 wages. The reduction in personnel at the former Visteon assets, the outsourcing of certain non-production functions and the conversion of several plants to 100% Tier 2 wage levels will also benefit Ford's cost structure. Tier 2 wage levels incorporate meaningful reductions in long-term benefit accruals through the lack of retiree health care and enrollment in defined contribution pension plans. Ford also faces the expiration of the Canadian Auto Workers contract in September 2008. Given the terms of the recent UAW agreement, the Detroit Three will certainly be targeting additional wage, benefit and other cost-saving opportunities in Canada. The Detroit Three may be seeking different goals under a new contract, and talks may not be as smooth as the recent UAW talks. Ford showed healthy revenue growth in the third and fourth quarters of 2007, aided by easy comparisons with 2006 and support from a number of vehicle models: Fusion, Edge and Escape. Ford's focus on managing production and inventory levels has benefited results through progress on pricing and residual values. Overall results were severely impacted by a 13% reduction in high-margin pickup sales. Although Ford has shown decent balance across segments, the company's product portfolio remains misaligned with market trends that favor smaller, more fuel-efficient vehicles. The transition to a more market-weighted product portfolio, along with the efficiencies of fewer platforms and higher number of products per platform, will not be achieved through 2010. Although Ford's cost reduction programs are in line with expectations, achievement of viable long-term operating margins will require market share stability and eventual growth in revenues. Achievement of these margin levels is not expected through 2010. Ford has also made clear strides in quality, which should benefit the company's market acceptance and pricing if the trend is maintained. The company's Sync dashboard technology developed with Microsoft, has also benefited the company in terms of progressive technology. Ford's international operations continue to show healthy improvement. European operations have shown modest share gains, improved pricing and growing profitability, resulting from structural cost improvements and well-received product introductions. Latin America has shown very strong profitability, which is expected to continue although perhaps not at the heights achieved in 2007. Further growth is also expected in developing markets including China and Russia. In total, Ford's international operations have transitioned from a key risk factor several years ago into a moderate positive for the company's credit position. While FMCC has been profitable, Fitch believes that operating performance will remain under pressure due to lower contract volume and asset quality deterioration which is affecting all auto lenders. Slower portfolio growth will tend to inflate credit metrics further. Fitch also believes that FMCC access to liquidity via the securitization markets will come at a higher cost as the continual credit market dislocation widens. A downgrade could result if Ford experiences: -- A material problem with the launch of the new F-150. -- A decline in U.S. industry sales below 14.5 million units (light vehicle sales) combined with lack of projected fixed cost reductions that result in a material deferral of the anticipated timeline to positive free cash flow. -- A significant decline in the U.S. market combined with a reversal of operating profits across Ford's international operations. A downgrade could also result if Ford Credit experiences restricted access to the securitization market. A return to a Stable Rating Outlook would be anticipated in the event that a clear path to positive free cash flow is established. This scenario would include continued stability in the company's retail market share, a solid F-150 launch, realization of expected fixed cost reductions in North America, stability or continued growth in the company's international operations and maintenance of healthy liquidity. A projected return to positive cash flow will likely require stabilization of the housing market, due to the impact of pickup sales on Ford's operating results. Ford will continue to face increased cost and potential supply disruptions from its stressed supply chains. Although most Tier-1 suppliers have ample liquidity during 2008 due to timely accessing of the leveraged loan market, lower-tier suppliers are more exposed to projected production declines at the Detroit Three, pricing and commodity cost pressures, and lack of access to capital. The higher risk of production disruptions or supplier liquidations will cause the OEM's and Tier-1 suppliers to incur additional costs in order to address particular situations. Ford's liquidity has been boosted by substantial debt issuance over the past eighteen months. Total automotive debt, including US$6.3 billion of new debt associated with the UAW VEBA agreement, is approximately US$33 billion (following a US$2.6 billion reduction in debt through two equity-for-debt transactions). Total debt is now roughly US$20 billion more than at yearend 2002. Net interest expense, augmented by the expected decline in cash holdings and the associated decline in interest income, will continue to represent a more material claim on consolidated cash flows than in the past. Fitch expects that even in a relatively harsh downturn in 2008, liquidity would remain well above the level needed to finance Ford's operations and its restructuring requirements. Ford has a light maturity schedule over the next three years, and is unlikely to require external capital, although Ford may seek opportunities to further boost liquidity if the markets become receptive. The company may also continue to seek opportunities to exchange equity for debt. The company retains access to US$11.5 billion in credit lines, which contain no financial tests. Access is subject to a borrowing base, which would be expected to reduce availability in the event of further deterioration in operating results. Recovery ratings remain in the same range, as a decrease in healthcare liabilities has been offset by an increase in debt. Fixed cost reductions that were anticipated to be realized in a bankruptcy scenario have been partially achieved through the new UAW contract. Recoveries from international operations have also increased. Fitch has affirmed these ratings with a Negative Rating Outlook: Ford Motor Co. -- Long-term IDR at 'B'; -- Senior secured credit facility at 'BB/RR1'; -- Senior secured term loan at 'BB/RR1'; -- Senior unsecured at 'B-/RR5'. Ford Motor Co. Capital Trust II -- Trust preferred stock at 'CCC+/RR6'. Ford Holdings, Inc. -- Long-term IDR at 'B'; -- Senior unsecured at 'B-/RR5'. Ford Motor Co. of Australia -- Long-term IDR at 'B'; -- Senior unsecured at 'B-/RR5'. Ford Motor Credit Co. -- Long-term IDR at 'B'; -- Short-term IDR at 'B'; -- Senior unsecured at 'BB-/RR2'; -- Commercial paper at 'B'. FCE Bank Plc -- Long-term IDR at 'B'; -- Senior unsecured at 'BB-/RR2'; -- Short-term IDR at 'B'; -- Commercial paper at 'B'; -- Short-term deposits at 'B'. Ford Capital B.V. -- Long-term IDR at 'B'; -- Senior unsecured at 'BB-/RR2'. Ford Credit Canada Ltd. -- Long-term IDR at 'B'. -- Short-term IDR at 'B'; -- Commercial paper at 'B'; -- Senior unsecured at 'BB-/RR2'. Ford Credit Australia Ltd. -- Long-term IDR at 'B'; -- Short-term IDR at 'B'; -- Commercial paper at 'B'. PRIMUS Financial Services (Japan) -- Long-term IDR at 'B'; -- Short-term IDR at 'B'. Ford Credit de Mexico, S.A. de C.V. -- Long-term IDR at 'B'; -- Senior unsecured at 'BBB+'. Ford Credit Co S.A. de CV -- Long-term IDR at 'B'. -- Senior unsecured at 'BB-/RR2'. Ford Motor Credit Co. of New Zealand -- Long-term IDR at 'B'; -- Senior unsecured at 'BB-/RR2'; -- Short-term IDR at 'B'; -- Commercial paper at 'B'. Ford Motor Credit Co. of Puerto Rico, Inc. -- Short-term IDR at 'B'. About Ford Motor Based in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina, Brazil and Mexico. MALFATTI CONSTRUCCIONES: Claims Verification Ends on April 23 ------------------------------------------------------------- Francisco Costa, the court-appointed trustee for Malfatti Construcciones' bankruptcy proceeding, will verify creditors' proofs of claim until April 23, 2008. Mr. Costa 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 be raised by Malfatti Construcciones and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Malfatti Construcciones' accounting and banking records will be submitted in court. Mr. Costa is also in charge of administering Malfatti Construcciones' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Malfatti Construcciones SRL Rio Piedras 1717 Buenos Aires, Argentina QUIKSILVER INC: CEO Robert McKnight Resumes Role as President ------------------------------------------------------------- Quiksilver Inc. disclosed that Robert McKnight resumed his role as president and remains both chairman of the board and chief executive officer. Mr. McKnight will again direct the company's operational initiatives. The company also said that Bernard Mariette has resigned from his position as president and as a director of the company in order to pursue other interests, which may include attempting to acquire the Rossignol group. As previously announced, J.P. Morgan is conducting a process on behalf of the company to reduce its exposure to the winter sports equipment business, including a possible sale. "Bernard Mariette has, for fifteen years, been invaluable to the growth and success of this company," Robert B. McKnight, Jr., chairman of the board, president, and chief executive officer of Quiksilver, Inc., commented. "He took Quiksilver Europe from its development stage in 1994 and grew it to a EUR250 million business by 2001 when he became president of the entire company." "Since 2001 Quiksilver has almost quadrupled in size and, under Bernard's leadership, has established an infrastructure to globalize Quiksilver's historically regional businesses and cemented its position as a leading global lifestyle company," Mr. Mcknight added. "[Mr. Mariett] will be truly missed and we wish him the best in the many accomplishments that lie ahead for him." "Our business objectives today are clear," Mr. McKnight continued. "We will focus our attention on our Quiksilver, Roxy and DC businesses, both to continue their healthy growth and to improve their operating results." "At the same time, we will seek to further reduce our exposure to the winter sports equipment businesses we acquired in 2005, including pursuing a sale of the businesses and we will work to improve our balance sheet," Mr. McKnight stated. "As we move forward, our entire organization is deeply committed to executing this plan." "We have many strengths, including tremendous untapped growth opportunities in our core apparel and footwear brands," Mr. McKnight further commented. "Our great brands, our global operating platform and our leadership position in this fragmented market are all among them." "The two most important sources of strength, however, are a deeply ingrained and powerful corporate culture and a tremendous management team," Mr. McKnight went on to say. "I am confident that each of these will serve us, as they always have, as a deciding factor in our success." The company noted that Mr. McKnight will have three corporate officers and three regional presidents reporting directly to him under the company's new management structure. Charlie Exon, who serves as a director and the company's general counsel will also assume the title of chief administrative officer, recognizing his broader role in the areas of global communications and human resources. David Morgan, chief operating officer, will continue in his role, including overseeing the company's global sourcing initiative and also serving as president of the company's Rossignol subsidiary through a transition period. Joe Scirocco, the company's chief financial officer, will continue to oversee global finance initiatives and also report directly to Mr. McKnight. Mr. McKnight's three remaining direct reports will be responsible for overseeing the company's regional businesses, which operate the core brands of Quiksilver, Roxy and DC. Marty Samuels will continue to lead Quiksilver Americas as its president from headquarters in Huntington Beach, California. Pierre Agnes will continue to serve as president of Quiksilver Europe, based in St. Jean de Luz, France. Craig Stevenson, who currently serves as global brand leader for the Quiksilver brand, will assume additional responsibilities as president of Quiksilver South Asia/Pacific, based in Torquay, Australia. All three executives are long term employees of the company. Under the terms of his separation agreement, Mr. Mariette will remain available for a period of one year to advise on transitional issues involving all aspects of the company's brands and operations other than those of the Rossignol Group. "Over the last 15 years at Quiksilver, it has been my pleasure and honor to work with great people and see amazing athletes showcase their natural talents," Mr. Mariette commented. "Under Bob McKnight's leadership, we've been able to develop the best outdoor brands in the world." "I'm confident that Quiksilver is well positioned for future success with its leadership, its lifestyle focus, and its brands," Mr. Mariette continued. "While I will miss Bob and my colleagues, I know that they will enjoy fantastic success in the future." "I have great confidence in our team, in our plan, and in our ability to fully capitalize on the many opportunities that exist for us," Mr. McKnight concluded. "I am proud and excited to lead this effort on behalf of our many partners, most particularly our shareholders, who I thank for their loyalty, input, patience and understanding." About Quicksilver Quiksilver, Inc. -- http://www.quiksilver.com/-- is a globally diversified company that designs, produces and distributes branded apparel, wintersports equipment, footwear, accessories and related products. Its products are sold in over 90 countries in a range of distribution channels, including surf shops, ski shops, skateboard shops, snowboard shops, its Boardriders Club shops, other specialty stores and select department stores. The Company has three operating segments, the Americas, Europe and Asia/Pacific. The Americas segment includes revenues primarily from the United States and Canada. The European segment includes revenues primarily from Western Europe. The Asia/Pacific segment includes revenues primarily from Australia, Japan, New Zealand and Indonesia. In October 2007, the Company entered into an agreement to sell its golf equipment business. This transaction was completed in December 2007. The company has operations in Argentina. Standard & Poor's Ratings Services assigned a BB- rating on Quiksilver Inc. QUIKSILVER INC: S&P's BB- Rating Unmoved by Planned Asset Sale -------------------------------------------------------------- Standard & Poor's Ratings Services said its ratings and outlook on apparel company Quiksilver Inc. (BB-/Negative/--) are unaffected by the company's announcement that its president has resigned and that it is exploring a potential sale of its ski equipment business. Robert McKnight, chairman, CEO, and founder of the company, will assume the role of president. S&P expects the company's operating strategies and financial policies to remain the same following the change in management. The company also said that it has retained J.P. Morgan to assist with reducing its exposure to the hard good equipment business, including selling its Skis Rossignol S.A. operations, which it acquired in 2005 for about US$303 million. (This included a majority interest in Cleveland Golf, which was sold in December 2007). If a sale is consummated, S&P expects most of the proceeds would be used to repay debt; S&P estimates leverage would improve toward the 4.3x-4.5x area postdivestiture. For the fiscal year ended Oct. 31, 2007, leverage (as measured by total debt to EBITDA) was high at 5.2x; yet adjusted for the December 2007 sale of Cleveland Golf, this ratio declines to about 4.7x. S&P believes that a sale of the ski equipment business will allow management to focus on its legacy apparel brands (Quiksilver, Roxy, and DC Shoes). The Rossignol business is capital intensive and provided a drag on operating results because of an extremely poor winter season and weakening economic trends. While S&P views the potential sale and debt reduction as positive factors, the impact of a softening retail environment on the company's apparel business remains a concern. S&P will review the current negative outlook once a transaction is announced. A more favorable revision would be dependent on the actual proceeds and debt reduction, as well as the operating performance of Quiksilver's apparel business. Quiksilver, Inc. -- http://www.quiksilver.com/-- is a globally diversified company that designs, produces and distributes branded apparel, wintersports equipment, footwear, accessories and related products. Its products are sold in over 90 countries in a range of distribution channels, including surf shops, ski shops, skateboard shops, snowboard shops, its Boardriders Club shops, other specialty stores and select department stores. The Company has three operating segments, the Americas, Europe and Asia/Pacific. The Americas segment includes revenues primarily from the United States and Canada. The European segment includes revenues primarily from Western Europe. The Asia/Pacific segment includes revenues primarily from Australia, Japan, New Zealand and Indonesia. In October 2007, the Company entered into an agreement to sell its golf equipment business. This transaction was completed in December 2007. The company has operations in Argentina. SCO GROUP: Secures US$100 Mil. to Finance Plan of Reorganization ---------------------------------------------------------------- Stephen Norris Capital Partners and its partners from the Middle East have agreed to provide up to $100 million to finance a plan of reorganization for The SCO Group Inc. As part of the financing, SNCP will take a controlling interest in the company, while taking it private. As a result, SCO is poised to emerge from Chapter 11 of the United States Bankruptcy Code in the coming year. The board of directors of SCO has unanimously determined that this financing and plan of reorganization is in the best long-term interest of SCO and its subsidiaries, well as its customers, shareholders, creditors and employees. "Not only will this deal position us to emerge from Chapter 11, but it also marks an exciting future for our business," said Jeff Hunsaker, president and chief operating officer of SCO Operations. "This significant financial backing is positive news for SCO's customers, partners and resellers who continue to request upgrades and rely upon SCO's UNIX services to drive their business forward." SNCP has developed a business plan for SCO that includes unveiling new product lines aimed at global customers. This reorganization plan will also enable the company to see SCO's legal claims through to their full conclusion. "We saw a tremendous investment opportunity in SCO and its vast range of products and services, including many new innovations ready or soon to be ready to be released into the marketplace," Stephen Norris, managing partner for SNCP, said. "We expect to quickly develop these opportunities, and to stand behind SCO's existing base of customers and partners." About Stephen Norris Partners Stephen Norris & Co. Capital Partners, L.P. is a private equity investment partnership formed to (i)"co-invest" alongside well established and successful private equity and leveraged buyout firms, (ii) take advantage of the business experience and relationships of its Investment Committee, including Steve Norris' long-standing relationships and substantial private equity experience. 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. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 4, 2008, Tanner LC in Salt Lake City, Utah, expressed substantial doubt about The SCO Group Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Oct. 31, 2007. The auditing firm reported that the company is a debtor-in-possession under Chapter 11 of the U.S. Bankruptcy Code, has experienced significant and continuing net losses, and is faced with substantial contingent liabilities as a result of certain adverse legal rulings. WENDY'S INT'L: S&P Ratings Unaffected by Bid for More Seats ----------------------------------------------------------- Standard & Poor's Ratings Services disclosed that Trian Partners' announcement that it will try to increase its board representation has no immediate impact on Wendy's International Inc.'s (BB-/Watch Neg/--) ratings profile. On Feb. 11, Trian Partners, a 9.8% holder of the Wendy's shares, gave notice that it would seek shareholder approval to expand the size of the board from 13 to 15 members by increasing the number of nominees at this year's annual meeting from four to six directors. If these proposals are successful, Trian Partners would gain a majority on the board, given the three board members already in place. Wendy's financial policies have become significantly more aggressive since Highfield Capital Management, Sandell Asset Management Corp., and Trian Fund Management L.P. acquired large holdings in the company. In the past 18 months, the company has sold real estate, spun off Tim Hortons to its shareholders, and undertaken significant share repurchases. By attempting to persuade Wendy's shareholders to vote for Trian's nominees, Triarc Cos. Chairperson Nelson Peltz, could be signaling that Triarc is no longer interested in acquiring the company's since it would not need more board seats to exercise control. While the ostensible reason for the Trian initiative is to ensure compliance with a Feb. 11 filing deadline, Trian's move, if successful, may also have the effect of removing Wendy's Chief Executive Officer Kerrii Anderson, from the board since she faces reelection at this year's annual meeting. These developments reinforce S&P's view that ratings on Wendy's should remain on CreditWatch with Negative implications, where they were placed on April 26, 2007, following the announcement that a Special Committee of its Board of Directors would undertake a strategic review including a possible sale of the company. It is likely that Trian's efforts to gain control will hasten the Special Committee decision for consideration by the board. On Jan. 28, 2008, the company announced that the Special Committee was in the final stages of its review. When the company makes public its future plans, S&P will assess the appropriateness of the current 'BB-' rating. S&P could lower ratings if the company undertakes actions that deteriorate cash flow protection measures or disadvantage bondholders. Based in Dublin, Ohio, Wendy's International Inc. (NYSE: WEN) -- http://www.wendysintl.com/-- is one of the world's largest and most successful restaurant operating and franchising companies, with more than 6,300 Wendy's Old Fashioned Hamburgers restaurants in North America and more than 300 international Wendy's restaurants. It has restaurants in the United States, Canada, Mexico, Argentina, among others. ============= B A H A M A S ============= KNOLL INC: Names Lynn Utter as North America Unit's President ------------------------------------------------------------- Knoll Inc. appointed Lynn M. Utter as Knoll North America's new president and chief operating officer. Ms. Utter will officially join the company on or about March 3, 2008, and will report to the company's chief executive officer, Andrew B. Cogan. Preceding her appointment, Ms. Utter, age 45, served as the chief strategy officer at Coors Brewing Company, a business unit of Molson Coors Brewing Company. Ms. Utter also is currently a Director of WESCO International Inc. Ms. Utter replaces Kathleen G. Bradley, who will retire from her position, effective May 23, 2008. About Knoll Headquartered in East Greenville, Pennsylvania, Knoll Inc. (NYSE: KNL) -- http://www.knoll.com/-- designs and manufactures branded office furniture products and textiles, serves clients worldwide. It distributes its products through a network of more than 300 dealerships and 100 showrooms and regional offices. The company has locations in Argentina, Australia, Bahamas, Cayman Islands, China, Colombia, Denmark, Finland, Greece, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Poland, Portugal and Singapore, among others. * * * Standard & Poor's placed Knoll Inc.'s long-term foreign and local issuer credit ratings at 'BB' in July 2006. The ratings still hold to date with a stable outlook. ============= B E R M U D A ============= ANNUITY & LIFE: Conn. Insurance Department Okays Subsidiary Sale ---------------------------------------------------------------- Annuity and Life Re (Holdings), Ltd., disclosed that the Connecticut Insurance Department has approved the sale of its subsidiary, Annuity & Life Reassurance, America, Inc. The company announced the sale Aug. 8, 2007. The consummation of the transaction was subject to certain closing conditions, including the receipt of the approval by the Connecticut Department of Insurance. As a result of this approval, the parties now expect the transaction to close no later than April 1, 2008. Annuity and Life Re (Holdings), Ltd. -- http://www.alre.bm/or http://www.annuityandlifere.com/-- provides annuity and life reinsurance to insurers through its wholly owned subsidiaries, Annuity and Life Reassurance, Ltd., and Annuity and Life Reassurance America, Inc. Going Concern Doubt Chartered Accountants of Hamilton, Bermuda, raised substantial doubt about Annuity and Life Re (Holdings), Ltd.'s ability to continue as a going concern after it audited the company's annual report for 2004. The auditor pointed to the company's significant losses from operations and experience of liquidity demands. INTELSAT LTD: Fitch Cuts & Withdraws Ratings -------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating of Intelsat, Ltd. to 'CCC' from 'B'. In addition, Fitch has removed Intelsat from Rating Watch Negative, where the ratings were placed on June 20, 2007. Fitch is also withdrawing all existing ratings of Intelsat and its subsidiaries. These ratings are downgraded and withdrawn: Intelsat, Ltd. -- Issuer Default Rating to 'CCC' from 'B'; -- Senior unsecured notes to 'CC/RR6' from 'CCC/RR6'. Intelsat (Bermuda), Ltd. (debt transferred to Intelsat Jackson Holdings) -- IDR to 'CCC' from 'B'; -- Senior unsecured guaranteed notes to 'B-/RR2' from 'BB-/RR2'; -- Guaranteed Term Loan to 'B-/RR2' from 'BB-/RR2'; -- Senior unsecured non-guaranteed notes to 'CCC-/RR5' from 'CCC+/RR6'. Intelsat Intermediate Holding Company, Ltd. -- IDR to 'CCC' from 'B'; -- Senior unsecured discount notes to 'CCC-/RR5' from 'B-/'RR5'. Intelsat Subsidiary Holding Company, Ltd. -- IDR to 'CCC' from 'B'; -- Senior secured credit facilities to 'B/RR1' from 'BB/RR1'; -- Senior unsecured notes to 'B-/RR2' from 'BB-/RR2'. Intelsat Corporation (fka PanAmSat Corporation) -- IDR to 'CCC' from 'B'; -- Senior secured credit facilities to 'B/RR1' from 'BB/RR1'; -- Senior secured notes to 'B/RR1' from 'BB/RR1'; -- Senior unsecured notes to 'CCC+/RR3' from 'B/RR4'. Fitch did not rate the US$4.96 billion acquisition debt, represented by the senior bridge loan and PIK election bridge loan, assigned to and assumed by Intelsat (Bermuda). Fitch's action follows the acquisition by funds controlled by private equity firm BC Partners and certain other investors in a highly leveraged transaction. The transaction increased debt by approximately US$3.7 billion, resulting in pro forma debt-to- EBITDA of approximately 9.4 times based on the last 12 months EBITDA as of Sept. 30, 2007. 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. The company has a sales office in Brazil. MAGELLAN INSURANCE: Final Shareholders' Meeting Set March 11 ------------------------------------------------------------ Magellan Insurance Company Ltd. will hold its final shareholders' meeting on March 11, 2008, at 9:30 a.m., at Canon's Court, 22 Victoria 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. Magellan Insurance's shareholder decided to place the company into voluntary liquidation under Bermuda's Companies Act 1981. SENSU LTD: Court Appoints Liquidators for Firm's Wind-Up Process ---------------------------------------------------------------- The Supreme Court of Bermuda has appointed Michael Morrison and Charles Thresh as liquidators for Sensu Ltd.'s winding up. The Bermuda Monetary Authority filed the wind-up petition on behalf of Sensu with the Supreme Court on Nov. 13, 2007. The Supreme Court of Bermuda heard Sensu's wind-up petition on Dec. 14, 2007. The liquidators can be reached at: Michael Morrison and Charles Thresh KPMG Advisory Ltd. Crown House 4 Par-la-Ville Road Hamilton, Bermuda WALTON INSURANCE: First Contributories' Meeting Set February 27 --------------------------------------------------------------- The first meeting of Walton Insurance Ltd.'s contributories and creditors will be held on Feb. 27, 2008, at KPMG Advisory Limited, Crown House, 4 Par-la-Ville Road, in Hamilton, Bermuda. The contributories' meeting will be at 10:00 a.m., while the creditors will convene at 10:30 a.m. Proxy forms to be used at the meeting have been mailed to all known contributories and creditors and must be lodged with the provisional liquidator at KPMG Advisory Limited by 5:00 p.m., Bermuda time, on Feb. 25, 2008. ============= B O L I V I A ============= * BOLIVIA: To Limit Natural Gas Supply for Brazil, FT Says ---------------------------------------------------------- Bolivia's natural gas exports to Brazil's Petrobras are likely to be capped during the coming southern winter, The Financial Times reports. The country is expected to increase supplies to Enarsa, its Argentine counterpart, FT says. According to FT, as the winter approaches, demand from both customers will surge and exceed Bolivia's production capacity. Other than supplying about 6m cubic metres per day for its domestic demand, Bolivia has contracts to supply up to 30m cubic metres of gas per day to Petrobras and 7.7m to Enarsa, but the country is only supplying about 27m cubic metres per day to Petrobras and about 3m to Enarsa, FT relates. * * * 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. * BOLIVIA: U.S. House Panel Extends Trade Preference ---------------------------------------------------- Colombia, Peru, Ecuador and Bolivia can continue to send most products to the U.S. duty-free after a committee of the U.S. House of Representatives voted to extend expiring trade preferences for these countries, Mark Drajem of Bloomberg News reports. According to Bloomberg, the preferences are scheduled to expire at the end of the month, but was extended through the end of 2008. "This extension will help build on the successful Andean trade preference program and further our efforts to promote stronger economic ties between these countries and our nation,'' Representative Charles Rangel, the panel's chairman, was cited by Bloomberg as saying. * * * 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 =========== ASPEN TECH: To Be Delisted From Nasdaq Effective Tomorrow --------------------------------------------------------- Aspen Technology Inc. said that the Nasdaq Listing Qualifications Panel has determined to delist the Company's securities and will suspend trading of the company's securities on the Nasdaq stock market effective at the opening of trading on Feb. 19, 2008. The company may request that the Nasdaq Listing and Hearing Review Council review the decision of the Panel. If the Listing Council determines to review this decision, it may affirm, modify, reverse, dismiss, or remand the decision to the Panel. The company is considering whether to make such a request. However, such a request would not delay the Panel's determination to delist the company's securities. The company anticipates that its common stock will be quoted on the Pink Sheet Electronic Quotation Service automatically and immediately after Nasdaq suspends trading. The company expects that the trading symbol of its common stock will remain the same. Mark Fusco, the company's Chief Executive Officer, said: "We are disappointed that the time it has taken for the review we initiated in connection with the restatement of our financial statements has resulted in the delisting of our common stock. We believe AspenTech remains a financially strong company as evidenced by our cash and cash equivalents of US$131 million as of Dec. 31, 2007, and we are committed to regaining compliance with our filing requirements and applying to list our common stock on a national exchange as soon as possible thereafter." The company has previously issued several press releases and filed several reports with the SEC including reports on Form 8-K, and investors are encouraged to read these in their entirety for discussion of the delay in the company's filings. About Aspen Technology Based in Cambridge, Massachusetts, Aspen Technology Inc. (Nasdaq: AZPN) -- http://www.aspentech.com/-- provides software and professional services that help process companies improve efficiency and profitability by enabling them to model, manage and control their operations. The company has operations in Brazil, Malaysia and France. * * * Aspen Technology carries Moody's B2 long-term corporate family rating and Caa1 equity-linked rating. Moody's said the outlook is stable. The company carries Standard & Poor's B long-term foreign and local issuer credit ratings, with negative outlook. BRASIL TELECOM: Will Get 3G Infrastructure From Ericsson & ZTE -------------------------------------------------------------- Brasil Telecom Participacoes SA said it has chosen telecoms equipment supplier Ericsson and telecoms equipment producer ZTE as suppliers for 3G network infrastructure. Business News Americas relates that Ericsson will provide core infrastructure for the network. About 80% of access equipment will be installed in: -- Goias, -- Parana, -- Santa Catarina, -- Rio Grande do Sul, and -- Distrito Federal. According to BNamericas, ZTE will deploy access equipment in: -- Acre, -- Roraima, -- Mato Grosso, -- Mato Grosso do Sul, and -- Tocantins. Brasil Telecom would launch 3G operations next month, BNamericas states. Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long- distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. * * * To date, Brasil Telecom carries Moody's Investors Service's Ba1 senior unsecured and credit default swap ratings. BRASIL TELECOM: Sues Opportunity Over Equity Investment in Unit --------------------------------------------------------------- News service Agencia Estado reports that Brasil Telecom Participacoes SA, along with its majority shareholder Citigroup, has filed a lawsuit in New York against Brazilian investment group Opportunity for failing to recognize its equity investment in one of its units. Business News Americas relates that Opportunity's unit, Highlake, spent up to US$70 million in 2003 to acquire a 49% stake in telecoms holding firm Telpart from Canada's Telesystem International Wireless. Highlake also financed the deal with a loan from Citigroup and cash from Brasil Telecom. Opportunity was a major shareholder of Brasil Telecom at that time. BNamericas notes that Citigroup and Brazilian pension funds secured "boardroom control" of Telpart in 2006. It then sold the unit's main holdings Telemig Celular and Amazonia Celular in August 2007 to mobile operator Vivo. According to BNamericas, Highlake was entitled to a significant share of the US$644 million proceeds. However, Citigroup and Brasil Telecom believe they are entitled to part of Highlake's share due to their 2003 equity investment in that company. The investment of Brasil Telecom and Citigroup wasn't converted into Highlake stock as they had expected. They have not received any part of Highlake's yield from the sale, BNamericas states. Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long- distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. * * * To date, Brasil Telecom carries Moody's Investors Service's Ba1 senior unsecured and credit default swap ratings. BRASKEM SA: Says 4th Quarter Results Weaker Than Third Quarter -------------------------------------------------------------- Braskem SA's financial director Carlos Jose Fadigas told Business News Americas that the company's fourth quarter 2007 results won't be as good as the the results in the third quarter 2007. BNamericas relates that Braskem reported BRL132 million in net profits and BRL4.6 billion revenues in the third quarter 2007. Braskem accrued significant debt from the conclusion of the Petroquimica Paulinia project and initial investments in the joint venture with Venezuelan state petrochemical company Pequiven, BNamericas says, citing Mr. Fadigas. Mr. Fadigas commented to BNamericas, "The fact is that we had a lot of debts in the period, so the [quarterly] results won't be as good as in the third quarter of 2006." Mr. Fadigas told BNamericas that the depreciation of the US dollar against the Brazilian real benefited Braskem "as much of the debts are in (US) dollars." Braskem will see positive consolidated results and growth for the 12-month period ended on Dec. 31, 2007, while 2008 won't see as much growth, BNamericas says, citing Mr. Fadigas. "Although it's too early to predict anything, 2007 was very good for the industry in general, so it will be really hard to beat last year's performance," Mr. Fadigas told BNamericas. Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Braskem S.A. Fitch also affirmed the 'BB+' ratings on the company's senior unsecured notes 2008, 2014, and senior unsecured notes 2017. COSAN SA: Completes Acquisition of Usina BenAlcool S.A. ------------------------------------------------------- Cosan S.A. Industria e Comercio disclosed that the negotiations to acquire 100% of Usina Benalcool have ended. The total value of the acquisition is BRL106.9 million, which will be paid mainly with the company's cash resources. Benalcool's main asset is its sugar and ethanol plant, with an annual crushing capacity of 1.3 million tonnes of sugarcane. The existing net debt, evaluated on Jan. 31, 2008, is BRL34.0 million. On the same date, Benalcool's marketable securities and cash equivalents totaled BRL6.5 million. Usina Benalcool is located in the Aracatuba region, where Cosan already owns four other production units. Through the acquisition Cosan has strengthened its presence in this producing region. About Cosan Headquartered in Sao Paulo, Brazil, Cosan S.A. Industria e Comercio(Bovespa: CSAN3) -- http://www.cosan.com.br/-- is one of the largest producers of sugar and ethanol in the world. With a crushing capacity of around 40 million tonnes of sugar cane, the company holds over 8% of the local market. * * * As of February 2007, Cosan carries Moody's Ba2 global local currency and foreign currency ratings and Standard and Poor's BB corporate credit rating. FIAT SPA: Joint Venture With Credit Agricole Earns EUR119 Mln. -------------------------------------------------------------- Fiat Group Automobiles Financial Services, a 50-50 joint venture of Fiat SpA and Credit Agricole, earned EUR119 million in its first year of operations ending in Dec. 31. 2007, Forbes.com reports, citing Thompson Financial. According to Thompson Financial, the prospects for 2008 confirm further growth, thanks to the growth in sales of autos by Fiat, improvement of financial activities, and cross-selling with Credit Agricole; and total financial activities grew 8% to EUR17 billion on a year to year basis from 2006. The joint venture provides dealer finance as well as financing for car purchases by Fiat customers, Thomson Financial relates. 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 in the TCR-Europe 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. PROPEX INC: Committee Selects Baker Donelson as Counsel ------------------------------------------------------- The Official Committee of Unsecured Creditors seek the Court's authority to retain Baker, Donelson, Bearman, Caldwell & Berkowitz, as its counsel in connection with the Debtors' Chapter 11 cases, effective Jan. 31, 2008. Stephen Cooke, chairperson of the Committee, relates that the Committee selected Baker Donelson as its counsel because of the firm's experience and knowledge in the field of bankruptcy and business reorganizations under the U.S. Bankruptcy Code, as well as in other areas of law related to the Debtors' bankruptcy cases. As the Committee's counsel, Baker Donelson will: * provide legal advice with respect to the Committee's powers and duties in these cases; * prepare, on behalf of the Committee, all necessary applications, answers, orders, reports and other legal papers; * represent the Committee in any and all matters involving contests with the Debtors, alleged secured creditors, and other third parties; * negotiate consensual plans of liquidation or reorganization; * assist the Committee in analyzing the claims of the Debtors' creditors and the Debtors' capital structure and in negotiating with holders of claims and equity interests; * assist the Committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and of the operations of the Debtors' businesses; * assist and advise the Committee as to its communications to the general creditor body regarding significant matters in the Debtors' cases; * review and analyze all applications, orders statements of operations and schedules filed with the Court and advise the Committee as to their propriety; and * perform all other legal services for the Committee which may be necessary and proper in these cases and related proceedings. Seven Baker Donelson professionals are presently expected to have primary responsibility for providing services to the Committee: Professional Hourly Rates ------------ ------------ Richard B. Gossett US$375 John H. Rowland US$340 Nelwyn W. Inman US$335 Justin M. Sveadas US$240 William M. B. Carter, Jr. US$195 Sharon L. Simmons US$140 Charity J. Martin US$120 Baker Donelson intends to apply for compensation for professional services it will render and reimbursement of expenses it will incur in connection with the Debtors' Chapter 11 cases. Richard B. Gossett, Esq., a partner at Baker Donelson, in Chattanooga, Tennessee, assures the Court that his firm is a "disinterested person," as the term is defined in Section 101(14) of the Bankruptcy Code. About Propex Inc. Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in North America, Europe, and Brazil. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. The Debtors' exclusive period to file a plan of reorganization expires on May 17, 2008. (Propex Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX INC: Asks Court to Set July 7 as Claims Bar Date ------------------------------------------------------- Pursuant to Rule 3003(c)(3) of the Federal Rules of Bankruptcy Procedure, the bankruptcy court must fix the time within which claims must be filed in Chapter 11 cases. Rule 3003(c)(2) provides that any creditor whose claim is not scheduled or whose claim is scheduled as disputed, contingent, or unliquidated must file a claim. Accordingly, Propex Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Tennessee to establish July 7, 2008, at 5:00 p.m. prevailing Eastern Time, as the bar date for the submission of claims in their bankruptcy cases. The Debtors seek that each person or entity that asserts a claim against them that arose prior to the Petition Date be required to file an original, written proof of claim that substantially conforms to Form B10 so as to be received by Epiq Bankruptcy Solutions LLC, the Debtors' claims agent on or before the Bar Date. "The fixing of the date as the Bar Date will enable the Debtors to receive, process, and begin their analysis of creditors' claim in a timely and efficient manner," Mark W. Wege, Esq., at King & Spalding, LLP, in Houston, Texas, points out. The Debtors propose that these individuals or entities will not be required to file a claim on or before the Bar Date: * Any person or entity that has already properly filed, with Epiq, or the Clerk of the Court, a claim using a claim form that substantially conforms to Form B10. * Any person or entity (i) whose claim is listed on the Statements of Financial Affairs, Schedules of Assets and Liabilities, and other related papers, (ii) whose claim is not described as disputed, contingent, or unliquidated, and (iii) who does not dispute the amount or nature of the claim. * Any person asserting a claim under Section 507(a)(2) of the Bankruptcy Code as an administrative expense of the Debtors' Chapter 11 cases, except as otherwise provided by separate order of the Court. * Any director, officer, or employee of the Debtors as of the Petition Date that has or may have claims against the Debtors for indemnification, contribution, subrogation, or reimbursement. * Any person or entity that holds claims that has been allowed by an order of the Court entered on or before the Bar Date. The Debtors also propose that for any person or entity that holds a claim that arises from the rejection of an executory contract or unexpired lease, that person or entity must file a claim based on the rejection on or before the Bar Date, unless otherwise stated in the order authorizing the rejection. If a person or entity failed to file a timely claim on or before the Bar Date, that person or entity will not be treated as a creditor of the Debtors for the purpose of voting upon any plan or Plans of Reorganization of the Debtors. Moreover, that person or entity will not be entitled to receive any payment or distribution of property from the Debtors and will be barred from asserting claims against the Debtors, their estates, or their successors or assigns. Additionally, the Debtors ask the Court to allow Epiq to distribute a combined, single notice of both the Section 341 Creditors Meeting and the Bar Date to: a. the office of the United States Trustee; b. those persons on the master service list; c. each member of the Official Committee of Unsecured Creditors and its attorneys; d. all state and local government authorities where the Debtors maintain assets or conducted business operations on the Petition Date or within three years prior to the Petition Date; e. all known potential holders of claims at the addresses stated on the creditors' matrix; and f. the district director of Internal Revenue for the Eastern District of Tennessee. The first meeting of creditors required under Section 341(a) of the Bankruptcy Code is set for March 4, 2008, at 10:00 a.m., in Chattanooga, Tennessee. The proposed Bar Date Notice contains information regarding who must file a proof of claim, the procedure for filing a proof of claim, and the consequences for failing to timely file a proof of claim. The Debtors inform the Court that they intend to complete the mailing of the Bar Date Notice, together with proof of claim forms, to the parties on the matrix listing no later than Feb. 15, 2008. About Propex Inc. Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in North America, Europe, and Brazil. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. The Debtors' exclusive period to file a plan of reorganization expires on May 17, 2008. (Propex Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) SITEL WORLDWIDE: Weak Liquidity Cues Moody's Negative Outlook ------------------------------------------------------------- Moody's Investors Service changed the outlook of Sitel Worldwide Corporation to negative from stable. The negative outlook underscores the company's weak liquidity position, which may require the company to seek relief in an available equity cure under its credit agreement from its shareholders. The negative outlook also reflects Moody's belief that despite the equity cure, the company's EBITDA cushion under its financial covenants will remain very tight, and a shortfall in the company's 2008 anticipated performance could require the company to seek further equity cure or other relief. These ratings are affirmed: -- Corporate family rating -- B2 -- Probability of default rating -- B3 -- US$85 million first lien revolving credit facility -- B2, LGD-3, 35% -- US$675 million first lien term loan -- B2, LGD-3, 35% Approximately US$762 million of debt securities affected. Sitel's B2 corporate family rating reflects some on-going integration risk, liquidity constrained by financial covenants under the company's credit facility, break even to negative free cash flow, and moderate client concentration. The ratings are supported by the company's scale and position as one of the largest provider within the highly competitive call center outsourcing industry, and the favorable outlook for the call center outsourcing industry. The company has pro forma LTM December 2007 revenues of approximately US$1.9 billion. Headquartered in Nashville, Tennessee, Sitel Worldwide Corp. -- http://www.sitel.com/-- is a customer care business process outsourcing vendor for voice services. It competes with larger multinational companies (i.e. EDS, Accenture, and IBM) and a host of like size companies (including Convergys, West, Teletech, and Sykes) in the customer care call center and business process outsourcing industry. The company has an approximate 80:20 ratio of on/near shore to off shore operating capacit and operates more than 155 locations in 27 countries, including Brazil, Mexico and the Philippines. STRATOS GLOBAL: Earns US$20 Million in Year Ended Dec. 31, 2007 --------------------------------------------------------------- Stratos Global Corporation released its financial results for the year ended Dec. 31, 2007. On Dec. 11, 2007, CIP Investments Inc. (CIP Canada) acquired beneficial ownership of 100 percent of the Corporation's common shares. Net earnings for 2007 were US$2.0 million compared with a net loss of US$26.8 million in 2006. The results for 2007 were negatively impacted by US$16.7 million of after-tax financial advisory, legal, and other costs related to the transaction with CIP Canada, which were partially offset by an after-tax gain of US$3.8 million related to the previously described insurance settlement during the second quarter and an after-tax gain on sale of certain aeronautical assets of US$1.0 million. Results for 2006 were adversely influenced by after-tax write-offs of US$22.4 million related primarily to the acquisition of Xantic. For the year ended Dec. 31, 2007, the Corporation achieved revenue of US$594.3 million, an 11 percent increase compared with US$537.8 million in 2006. This improvement primarily reflects the growth in newer generation Inmarsat products and the acquisition of Xantic, which was completed on Feb. 14, 2006. Segment earnings for 2007 increased by 35 percent to US$101.0 million compared with US$74.7 million for 2006. The significant improvement in segment earnings was driven by the increased revenue, higher volume discounts earned from Inmarsat and cost reductions resulting from the integration of Xantic and other initiatives to improve operating efficiencies. Cash flow from operations (including working capital changes) in 2007 totaled US$57.3 million, compared with US$26.9 million generated in 2006. The improvement primarily reflects higher segment earnings, decreased investment in working capital, increased interest costs related to the Xantic acquisition financing and costs related to the transaction with CIP Canada. Stratos Global Corporation -- http://www.stratosglobal.com/-- is a provider of a range of advanced mobile and fixed-site remote telecommunications solutions for users operating beyond the reach of traditional networks. The company serves the voice and high-speed data connectivity requirements of a diverse array of markets, including government, military, energy, industrial, maritime, aeronautical, enterprise, media and recreational users throughout the world. Stratos operates in two segments: Mobile Satellite Services, which provides mobile telecommunications services, primarily over the Inmarsat plc satellite system, and Broadband Services, which provides very small aperture terminal services, sourced on a wholesale basis from a number of the fixed satellite system operators. The company has offices in Italy, Germany, Norway, Spain, United Kingdom, India, Hong Kong, Singapore, Australia, Japan and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 4, 2008, Moody's Investors Service affirmed Stratos Global Corporation's B1 Corporate Family Rating, B1 Probability of Default Rating, Ba2 Senior Secured Bank Rating and B3 Unsecured Bonds Rating. TAM SA: Reports 67% International Market Share in January --------------------------------------------------------- TAM SA reported operating data for January 2008, as disclosed by the Brazilian National Civil Aviation Agency. According to ANAC, TAM registered 9.8% growth in domestic RPK (demand) compared to the same period last year, and 11.0% increase in domestic ASK (supply). In January, market demand increased 6.7% and market supply increased 10.3%. TAM registered domestic market share (RPK) of 48.6%, a 1.4 p.p. increase compared to the same period in 2007. TAM's domestic load factor was 73.4%, 1.8 p.p. higher than the market average of 71.6%. In the international market, TAM registered 76.8% growth in RPK and 65.1% in ASK, compared to January 2007. The company attained market share of 67.0%, representing 8.2 p.p. growth year on year. TAM attained 79.9% load factor, 6.5 p.p. higher than the market average of 73.4%. The company's operating data for January: Operating data Jan 2008 Jan 2007 Var. % Domestic Market ASK (millions) - Supply 2,978 2,683 11.0% RPK (millions) - Demand 2,185 1,989 9.8% Load Factor 73.4% 74.1% -0.8 p.p. Market share 48.6% 47.2% 1.4 p.p. International Market ASK (millions) - Supply 1,766 1,070 65.1% RPK (millions) - Demand 1,411 798 76.8% Load Factor 79.9% 74.6% 5.3 p.p. Market share 67.0% 58.8% 8.2 p.p. About TAM SA TAM SA (Bovespa: TAMM4 and NYSE: TAM) -- http://www.tam.com.br/ -- operates regular flights to 47 destinations throughout Brazil. It serves 72 different cities in the domestic market through regional alliances. Additionally, it maintains code- share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. The program has over 3.3 million subscribers and has awarded more than 3.6 million tickets. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 27, 2007, Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on Brazil-based airline TAM S.A. S&P said the outlook is stable. TAM SA: Will Combine Frequent Flyer Programs With Lufthansa ----------------------------------------------------------- TAM and Lufthansa have initiated a partnership that will allow customers to accumulate and redeem frequent flyer points on Fidelidade TAM program and miles from Miles & More on flights operated by both airlines. The combination of the frequent flyer programs are part of the agreement signed between TAM and Lufthansa last year, aiming to expand services offered to customers. The companies are also planning to initiate codeshare flights on national and international routes within the first quarter of this year. In this first phase of the partnership between the two companies, TAM passengers can use points accumulated in the Fidelidade TAM program to travel on any domestic or international flight operated by Lufthansa. In the same way, participants in Lufthansa's Miles & More program can convert their miles into points to be used on TAM's domestic and international flights. TAM vice-president of Planning and Alliances, Paulo Castello Branco affirms that the agreement with Lufthansa will bring immediate benefits to passengers of both airlines. "The integration of Fidelidade TAM program with Miles & More strengthens our strategy of establishing partnerships with the main airlines in the world, and also seeking to offer individualized service to our customers," says Mr. Castello Branco. Lufthansa Group's office of the president member, Stephen Lauer, who is in Sao Paulo, Feb. 14, said that he is very satisfied with the partnership. "We are seeking through this agreement a way to increase our flight offerings between Europe and Brazil, which will come about through code sharing, as well as better ways of serving our passengers, including faster connections and, starting now, integration of our frequent flyer programs." The Lufthansa Group, including SWISS, has 21 weekly flights between Brazil and Europe, flying with Lufthansa from Sao Paulo to Munich and Frankfurt daily, and with SWISS, from Sao Paulo to Zurich daily. From these two hubs in Germany and Zurich, Lufthansa offers connections to all of Europe, Asia and the Middle East. Overall, the group serves 188 different destinations in 79 countries, and is part of the Star Alliance. Lufthansa's mileage program Miles & More was started 15 years ago and has more than 14 million participants all over the world. In Brazil, there are approximately 80 thousand members. TAM is a pioneer among Brazil's airlines in launching its Programa Fidelidade for frequent flyers. The company now has 4.5 million members and has already issued more than 5.2 million tickets for frequent flyer points. A market leader, TAM serves 47 cities in Brazil, including all state capitals and the Federal District. Through business agreements signed with regional companies, it reaches 81 different destinations in the national territory. TAM operations abroad include direct flights to eleven destinations: New York and Miami (US), Paris (France), London (England), Milan (Italy), Frankfurt (Germany), Madrid (Spain), Buenos Aires (Argentina), Santiago (Chile), Caracas (Venezuela) and Montevideo (Uruguay). With TAM Mercosur, it flies to Asuncion and Ciudad del Este (Paraguay), Cordoba (Argentina), Santa Cruz de la Sierra and Cochabamba (Bolivia), among other cities in South America. TAM's daily flight to Frankfurt departing from Guarulhos International Airport in Sao Paulo began service last November 30th. This flight is operated with the Airbus A340-500, with a capacity for up to 267 passengers -- 42 seats in Executive Class and 225 in Economy Class. About TAM SA TAM SA (Bovespa: TAMM4 and NYSE: TAM) -- http://www.tam.com.br/ -- operates regular flights to 47 destinations throughout Brazil. It serves 72 different cities in the domestic market through regional alliances. Additionally, it maintains code- share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. The program has over 3.3 million subscribers and has awarded more than 3.6 million tickets. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 27, 2007, Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on Brazil-based airline TAM S.A. S&P said the outlook is stable. UNIAO DE BANCOS: Board Approves New Stock Repurchase Program ------------------------------------------------------------ Unibanco - Uniao de Bancos Brasileiros S.A.'s and Unibanco Holdings S/A's Board of Directors approved the acquisition, by Unibanco, of preferred shares issued by Unibanco, as well as preferred shares issued by Unibanco Holdings. Such approvals are in accordance with their By-Laws and the applicable legal provisions. The shares to be acquired will be kept as treasury stock, for further sale or cancellation, without share capital reduction of Unibanco or Unibanco Holdings, remaining at the discretion of Unibanco's Board of Officers the decision as to the timing and volume of the acquisitions. By meanings of the terms of the article 8th of the CVM Normative Ruling N. 10/80, it is clarified that: (i) Such acquisition of shares has, as its purpose, the application of the resources available from Unibanco�s balance of profits and reserves, except the legal reserve. Unibanco and Unibanco Holdings believe that the stock repurchase plan is in the best interest of both Unibanco's and Unibanco Holdings' shareholders; (ii) The amount of shares to be acquired must not exceed 20,000,000 preferred shares issued by Unibanco and 20,000,000 preferred shares issued by Unibanco Holdings; (iii) The authorization will be valid for 12 months to be counted from February 15, 2008; and (iv) The acquisition of the shares will be carried out at fair market value and through the broker Unibanco Investshop Corretora de Valores Mobiliarios S.A., located in the city of Sao Paulo, State of Sao Paulo, at Eusebio Matoso Avenue n.� 891, or another broker to be determined by Unibanco's Board of Officers. The acquisition of preferred shares issued by Unibanco and Unibanco Holdings must be made solely through the acquisition of Share Certificates (UNITS), traded in the Brazilian Market. Thus, Unibanco is authorized to acquire up to 20,000,000 UNITS. On Feb. 12, 2008, there are 1,123,463,276 outstanding preferred shares issued by Unibanco, as well as 1,069,078,990 outstanding preferred shares issued by Unibanco Holdings. Based on the authorization obtained on August 8, 2007, 8,765,400 Units have been acquired. Currently, there are 17,346,328 preferred shares issued by Unibanco and 20,772,793 preferred shares issued by Unibanco Holdings as treasury stocks. About Unibanco Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/-- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. The company's businesses comprise segments: Retail, Wholesale, Insurance and Pension Plans and Wealth Management. Uniao de Bancos and its associated companies FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas) offer a network composed of 17,000 points of service. It also counts on 7,580 automated teller machines and all 30 Hours' products and services, including the telephone service and the Internet banking. The company's international network consists of branches in Nassau and the Cayman Islands; representatives offices in New York; banking subsidiaries in Luxembourg, the Cayman Islands and Paraguay; and a brokerage firm in New York -- Unibanco Securities Inc. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Fitch changed the outlook of Unibanco-Uniao de Bancos Brasileiros SA's 'BB+' Foreign currency IDR and 'BB+' Local currency IDR to Positive from Stable. UNIAO DE BANCOS: Earns BRL715 Million in 4th Quarter 2007 --------------------------------------------------------- Unibanco - Uniao de Bancos Brasileiros S.A. disclosed its financial performance for the fourth quarter of 2007. Unibanco's net income, excluding non recurring events, reached BRL2,600 million in 2007 and BRL715 million in fourth quarter 2007, up 17.6% and 24.1% when compared to 2006 and fourth quarter 2006, respectively. Annualized return on average equity (ROAE) reached 26.8% in fourth quarter 2007 and 24.5% in 2007. Considering non recurring events, net income was BRL3,448 million in 2007 and BRL827 million in fourth quarter 2007, with ROAE of 31.7% in the year and 31.4% in the quarter. Balance Sheet Data Unibanco's total assets reached BRL149,597 million, up 44.2% when compared to December 31, 2006. The BRL16.1 billion increase in total loans, particularly in payroll loans, auto loans, credit cards and Small and Medium Enterprises (SMEs) portfolio. The loan portfolio reached BRL61,435 million in December 2007, up 9.9% in the quarter and 35.4% in the year, higher than the Brazilian Financial System (8.7% QoQ and 27.3% YoY). Retail portfolio increased 13.2% in 4Q07, with highlight for growth in auto loans, 22.6%, credit cards, 21.0%, and SMEs, 16.8%. Wholesale portfolio grew 4.7% in the quarter and 16.4% in 2007, despite the US dollar depreciation of 3.7% and 17.2% in the respective periods. The inc