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 Tuesday, February 19, 2008, Vol. 9, No. 35 Headlines A R G E N T I N A ALITALIA SPA: Air France-KLM Awaiting Italy's Election Results AVOR SA: Trustee Verifying Proofs of Claim Until May 2 BERLIN PRODUCCIONES: Claims Verification Deadline Is April 14 COMPLEMENTOS EMPRESARIOS: Files Reorganization Petition DANA HOLDING: Moody's Confirms Low-B Ratings With Stable Outlook ELIAS DOLONGUEVICH: Trustee Verifying Claims Until May 2 ESTRUCTURAL SA: Proofs of Claim Verification Ends on April 14 EUROALIMENTS SRL: Files Reorganization Petition FAUSTINO ARIAS: Proofs of Claim Verification Is Until April 11 KATEFA SRL: Proofs of Claim Verification Deadline Is April 18 ORION XXI: Proofs of Claim Verification Is Until April 16 PORTEZUELO SRL: Proofs of Claim Verification Ends on April 17 QUEBECOR MEDIA: Acquires 9,244,329 Nurun Common Shares B E R M U D A BRITISH AIRWAYS: BALPA Opposes Job Outsourcing Under Open Skies BRITISH AIRWAYS: Selling Bermuda-London Tickets at Discount INTELSAT LTD: S&P Lowers Corporate Credit Rating to B from B+ KINGSWAY FINANCIAL: Posts US$18.5 Million Net Loss in 2007 MAN MAC: Sets Final Shareholders' Meeting for March 3 SCOTTISH RE: Subsidiaries' Debts Cue Moody's to Review Rating SEA CONTAINERS: Wants to Extend Plan-Filing Period to April 15 B O L I V I A PRICELINE.COM INC: Earns US$32.9 Mil. in Quarter Ended Dec. 31 B R A Z I L ALLIANCE ONE: Earns US$15.7 Million in Quarter Ended December 31 AMERICAN AIRLINES: Signs Frequent Flyer Pact With Jet Airways AMR CORP: Mulls Potential Tie-up With Continental Airlines BANCO CRUZEIRO: Closes US$100 Million Eurobond Issue COSAN SA: S&P Says Benalcool Mill Buyout Has No Impact on Rating TAM LINHAS: Expands Code Share Pact With NHT to Southern Brazil TELEMIG CELULAR: S&P Holds BB- Rating on CreditWatch Positive USINAS SIDERURGICAS: Will Export Iron Ore * BRAZIL: Petrobras Inks US$1.195MM Single Buoy Mooring Contract * RIO DE JANEIRO: Moody's Ups Global Scale Issuer Ratings to Ba2 C A Y M A N I S L A N D S AMARANTH GLOBAL: To Hold Final Shareholders' Meeting on March 4 BLACKSTONE INVESTMENTS: Proofs of Claim Filing Ends on March 4 EMPIRE INT'L: Proofs of Claim Filing Deadline is March 4 SUISAMERIS TRUSTEES: Final Shareholders' Meeting Is on March 4 TORINOS CAPITAL: Proofs of Claim Filing Deadline Is March 4 C H I L E LATAM TRUST: Fitch Puts BB- Rating on CLP26.46-Bil. Certificates C O L O M B I A CORPORACION INTERAMERICANA: 8.875% Notes Tender Offer Expires GRAN TIERRA: Will Be Listed on Toronto Stock Exchange Today C O S T A R I C A SIRVA: Feb. 25 Hearing on Protocol Restricting Equity Trading E L S A L V A D O R CHOICE HOTELS: Dr. Scott Renschler Jr. Joins Board of Directors H A I T I * HAITI: IDB & One Laptop to Launch Pilot Project J A M A I C A AIR JAMAICA: To Pay J$70 Million to Flight Attendants AIR JAMAICA: Union Against Changes at Montego Bay Operations CABLE & WIRELESS: Earnings Drop to J$17.3 Billion in 2007 NAT'L COMMERCIAL: OLINT Secures Extension of Injunction M E X I C O CHEMTURA CORP: Discloses 2007 Fourth Quarter Pre-Tax Results CLEAR CHANNEL: Earns US$938.5 Million in 2007 CONTINENTAL AIRLINES: In Talks With AMR on Potential Tie-Up GRUPO MEXICO: To Appeal Court's Approval of Strike at Cananea MEGA BRANDS: Works With Intertek to Develop Ingestion Gauge MOVIE GALLERY: Court Okays 2nd Amendment to US$150-Mln DIP Loan MOVIE GALLERY: Panel Gets Deadline Extension to Challenge Liens WENDY'S INT'L: Names Kershisnik & Holtcamp as Marketing Execs N I C A R A G U A * NICARAGUA: Receives US$21-Mln Barrels of Oil From Venezuela P A R A G U A Y INTERPUBLIC GROUP: Put Option Expires March 14 P U E R T O R I C O DIRECTV GROUP: Deutsche Bank Reaffirms Buy Rating on Firm DIRECTV GROUP: Janco Partners Keeps Buy Ratings on Firm's Shares GOLD CENTER: Case Summary & 20 Largest Unsecured Creditors LIN TV: Appoints Michael Kelly as Sales Interactive Director T R I N I D A D & T O B A G O HERCULES OFFSHORE: To Acquire Jackup Drilling Rigs for US$320MM U R U G U A Y GOL LINHAS: Posts US$13.6MM Consolidated Net Loss in 4th Quarter V E N E Z U E L A PETROLEOS DE VENEZUELA: Fitch Sees Potential Concern PETROLEO DE VENEZUELA: Reaches Settlement With Eni SpA PETROLEOS DE VENEZUELA: Ranks Second in List of Sound Firms SHAW GROUP: Increased Cash Flow Cues Moody's Review for Upgrade TIMKEN CO: To Hike Carbon & Alloy Tubing Prices on April 1 * VENEZUELA: Ships Crude Oil to Nicaragua for US$21 Million X X X X X X * FTI Consulting Welcomes Four Senior Managing Directors * S&P Says Lower Debts By LatAm & Japan Offset US Debt Issuance - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Air France-KLM Awaiting Italy's Election Results -------------------------------------------------------------- Air France-KLM SA will seek approval from the new Italian government chosen following the April 13-14, 2008, snap elections, for any agreement to acquire Italy's 49.9% stake in Alitalia S.p.A., Thomson Financial relates citing Radiocor as its source. Air France Managing Director Pierre Henri Gourgeon said that the exclusive talks may go beyond the April elections due to various procedural steps, Radiocor relates. "If the position of the next government is favorable for an agreement with Air France-KLM we will go ahead," Mr. Gourgeon was quoted by Radiocor as saying. "In the case it is not favourable, we will stop there." The Forza Italia opposition party, headed by former Prime Minister Silvio Berlusconi and seen to win the upcoming election, said it will respect the possible sale of the government's stake in Alitalia to Air France if it emerges as the victor. "If there were to be a contract already signed, it would be respected," Renato Brunetta, deputy coordinator of Silvio Berlusconi's Forta Italia, was quoted by Bloomberg News as saying. Mr. Brunetta, however, said Forza Italia would like the outgoing government, headed by Prime Minister Romano Prodi, to avoid an agreement and leave the decision to the next government, Reuters reports. President Giorgio Napolitano dissolved the Italian parliament on Feb. 6, 2008, and set a snap election for April 13 and 14, 2008. Mr. Prodi's administration remains as caretaker government until a new prime minister is elected into office. As reported in the TCR-Europe on Feb. 11, 2008, Mr. Prodi vowed to "do everything possible" to complete the stake sale. "We will certainly do our best to make sure that this operation, which no-one has had the courage to face despite being widely recognized as necessary and unavoidable, makes it to the end," Mr. Prodi was quoted by Agenzia Giornalistica as saying. "We have taken on this task and we will try to go all the way." Alitalia and Air France-KLM SA have until mid-March to complete the talks and present a final binding offer to the Italian government, which thereafter will decide whether to sell its stake to the French carrier. In its non-binding offer, Air France plans to: -- acquire 100% of the shares of Alitalia through an exchange offer; -- acquire 100% of Alitalia convertible bonds; and -- immediately inject at least EUR750 million into Alitalia through a capital increase, that will be open to all shareholders and be fully underwritten by Air France. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. AVOR SA: Trustee Verifying Proofs of Claim Until May 2 ------------------------------------------------------ Sergio Vargas Labiano, the court-appointed trustee for Avor S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 2, 2008. Mr. Labiano will present the validated claims in court as individual reports on June 13, 2008. The National Commercial Court of First Instance in Mendoza 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 Avor and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Avor's accounting and banking records will be submitted in court on Aug. 8, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 6, 2009. The trustee can be reached at: Sergio Vargas Labiano Colon 460, Ciudad de Mendoza Mendoza, Argentina BERLIN PRODUCCIONES: Claims Verification Deadline Is April 14 ------------------------------------------------------------- Pablo Amante, the court-appointed trustee for Berlin Producciones S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 14, 2008. Mr. Amante will present the validated claims in court as individual reports on May 28, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Berlin Producciones and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Berlin Producciones' accounting and banking records will be submitted in court on July 29, 2008. Mr. Amante is also in charge of administering Berlin Producciones' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Berlin Producciones S.R.L. Avenida Santa Fe 1780 Buenos Aires, Argentina The trustee can be reached at: Pablo Amante Lavalle 1537 Buenos Aires, Argentina COMPLEMENTOS EMPRESARIOS: Files Reorganization Petition ------------------------------------------------------- Complementos Empresarios SA has requested for reorganization approval after failing to pay its liabilities since Nov. 26, 2007. The reorganization petition, once approved by the court, will allow Complementos Empresarios to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 11 in Buenos Aires. Clerk No. 21 is assisting the court in this case. The debtor can be reached at: Complementos Empresarios SA Avenida Cordoba 466 Buenos Aires, Argentina DANA HOLDING: Moody's Confirms Low-B Ratings With Stable Outlook ---------------------------------------------------------------- Moody's Investors Service affirmed the ratings of the reorganized Dana Holding Corporation as: Corporate Family Rating, B1; Probability of Default Rating, B1. In a related action, Moody's affirmed the Ba3 rating on the senior secured term loan and raised the rating on the senior secured asset based revolving credit facility to Ba2 from Ba3. The outlook is stable. The financing for the company's emergence from Chapter 11 bankruptcy protection has been funded in line with the structure originally rated by Moody's in a press release dated Jan. 7, 2008. In a January 2008 Special Comment, Moody's outlined the changes to its Loss-Given-Default methodology to differentiate the favorable recovery experience of asset-based loans relative to other types of senior secured first-lien loans. The terms of Dana's ABL meet the eligibility requirements outlined in the Special Comment and, therefore, its rating is Ba2, which is one notch higher than it otherwise would have been. These ratings were affirmed: -- B1, Corporate Family Rating; -- B1, Probability of Default Rating; -- Ba3 (LGD3, 35%) rating for the US$1.430 billion senior secured term loan; -- Speculative Grade Liquidity Rating, SGL-2 This rating was raised: -- US$650 million senior secured asset based revolving credit facility to Ba2 (LGD2, 29%) from Ba3 (LGD3, 35%) The last rating action for Dana Holding Corporation was on Jan. 7, 2008 when the prospective ratings were assigned. Based in Toledo, Ohio, Dana Corporation nka Dana Holding 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. ELIAS DOLONGUEVICH: Trustee Verifying Claims Until May 2 -------------------------------------------------------- Enrique M. Romero, the court-appointed trustee for Elias Dolonguevich S.A.I.C.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 2, 2008. Mr. Romero will present the validated claims in court as individual reports on June 13, 2008. The National Commercial Court of First Instance in Mendoza 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 Elias Dolonguevich and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Elias Dolonguevich's accounting and banking records will be submitted in court on Aug. 15, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 13, 2009. The trustee can be reached at: Enrique M. Romero San Martin 1425, Ciudad de Mendoza Mendoza, Argentina ESTRUCTURAL SA: Proofs of Claim Verification Ends on April 14 ------------------------------------------------------------- Nelida Grunblatt de Nobile, the court-appointed trustee for Estructural SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until April 17, 2008. Ms. Grunblatt de Nobile will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 33, 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 Estructural and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Estructural's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Grunblatt de Nobile is also in charge of administering Estructural's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Estructural SA Brasil 1742 Buenos Aires, Argentina The trustee can be reached at: Nelida Grunblatt de Nobile Felipe Vallese 1195 Buenos Aires, Argentina EUROALIMENTS SRL: Files Reorganization Petition ----------------------------------------------- Euroaliments S.R.L. has requested for reorganization approval after failing to pay its liabilities since Dec. 6, 2007. The reorganization petition, once approved by the court, will allow Euroaliments to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 25 in Buenos Aires. Clerk No. 49 is assisting the court in this case. The debtor can be reached at: Euroaliments S.R.L. Pedro Lozano 5314 Buenos Aires, Argentina FAUSTINO ARIAS: Proofs of Claim Verification Is Until April 11 -------------------------------------------------------------- Hugo Juarez, the court-appointed trustee for Faustino Arias e Hijos S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 11, 2008. Mr. Juarez will present the validated claims in court as individual reports on May 26, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Faustino Arias and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Faustino Arias' accounting and banking records will be submitted in court on July 25, 2008. Mr. Juarez is also in charge of administering Faustino Arias' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Faustino Arias e Hijos S.A. Paraguay 2574 Buenos Aires, Argentina The trustee can be reached at: Domicilio sindico Avenida Corrientes 1327 Buenos Aires, Argentina KATEFA SRL: Proofs of Claim Verification Deadline Is April 18 ------------------------------------------------------------- Maria Cristina Nahman, the court-appointed trustee for Katefa S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 18, 2008. Ms. Nahman will present the validated claims in court as individual reports on June 2, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Katefa and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Katefa's accounting and banking records will be submitted in court on July 15, 2008. Ms. Nahman is also in charge of administering Katefa's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Maria Cristina Nahman Avenida Rivadavia 666 Buenos Aires, Argentina ORION XXI: Proofs of Claim Verification Is Until April 16 --------------------------------------------------------- Emilio Omar Abraham, the court-appointed trustee for Orion XXI S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 16, 2008. Mr. Abraham will present the validated claims in court as individual reports on May 29, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Orion XXI and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Orion XXI's accounting and banking records will be submitted in court on June 12, 2008. Mr. Abraham is also in charge of administering Orion XXI's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Orion XXI S.A. Maipu 388 Buenos Aires, Argentina The trustee can be reached at: Emilio Omar Abraham Esmeralda 351 Buenos Aires, Argentina PORTEZUELO SRL: Proofs of Claim Verification Ends on April 17 ------------------------------------------------------------- Juan Manuel Vila Perbeils, the court-appointed trustee for Portezuelo SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until April 17, 2008. Mr. Perbeils will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 23, 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 Portezuelo and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Portezuelo's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Perbeils is also in charge of administering Portezuelo's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Portezuelo SRL Lavalle 1473 Buenos Aires, Argentina The trustee can be reached at: Juan Manuel Vila Perbeils Vidal 1670 Buenos Aires, Argentina QUEBECOR MEDIA: Acquires 9,244,329 Nurun Common Shares ------------------------------------------------------ Quebecor Media Inc., following the expiration of more than 35 days of its offer to acquire all of the common shares of Nurun Inc. not already held by it and its affiliates, its wholly-owned subsidiary, 4434943 Canada Inc., has taken up and acquired 9,244,329 Nurun common shares representing approximately 59.11% of the Nurun common shares issued and outstanding at the close of business on Feb. 15, 2008, and not already held by Quebecor Media and its affiliates, for a price of CDN$4.75 per share. The take-up and acquisition of 9,244,329 Nurun common shares by Quebecor Media will allow it to proceed with the privatization of Nurun through a compulsory acquisition transaction in the event, as at the expiration of the offer, not less than 90% of the shares subject to the offer are tendered, or, alternatively, through a subsequent acquisition transaction. Following the take-up and acquisition of the 9,244,329 Nurun common shares, Quebecor Media now owns, directly and indirectly, 81.84% of all currently issued and outstanding Nurun common shares. Quebecor Media's offer for Nurun common shares continues to remain open for acceptance until its expiration at 8:00 p.m. (Montreal time) today, Feb. 19, 2008. Payment for the Nurun common shares taken up and acquired by Quebecor Media earlier is expected to be made on or before Feb. 20, 2008. About Quebecor Media Quebecor Media Inc., a subsidiary of Mortsel, Belgium-based, Quebecor Inc. -- http://www.quebecor.com/-- owns operating companies in numerous media-related businesses: Videotron Ltd., a cable operator in Quebec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, Canada's chain of tabloids and community newspapers; TVA Group Inc., operator of French- language general-interest television network in Quebec, a number of specialty channels, and the English-language general-interest station Sun TV; Canoe Inc., operator of a network of English- and French-language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; companies engaged in book publishing and magazine publishing; and companies engaged in the production, distribution and retailing of cultural products, namely Archambault Group Inc., chain of music stores in eastern Canada, TVA Films, and Le SuperClub Videotron ltee, a chain of video and video game rental and retail stores. Headquartered in Montreal, Canada, the company has global facilities in India, France and Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 1, 2007, Moody's Investors Service rated Quebecor Media Inc.'s US$700 million add-on senior unsecured note issue B2. Ratings on the underlying 7.75% senior unsecured notes due in March of 2016 were affirmed at the same B2 level. At the same time, QMI's Ba3 corporate family rating and stable ratings outlook were affirmed. ============= B E R M U D A ============= BRITISH AIRWAYS: BALPA Opposes Job Outsourcing Under Open Skies --------------------------------------------------------------- British Airline Pilots' Association opposes British Airways plc's plan to use outsourced pilots for its Open Skies subsidiary. A packed meeting of British Airways pilots at Heathrow heard that the real reason BA wants to pick a fight with its 3,000 pilots is that it wants to eventually massively outsource flying duties to less highly trained and lower paid pilots. "Then the company will use this poorer paid, pilot force as a trojan horse to beat down the pay and conditions of its current pilot employees," Jim McAuslan, general secretary of British Airline Pilots' Association, said. The trojan horse is BA's planned OpenSkies subsidiary which is to fly passengers from mainland European capitals to the USA. "We have seen the evidence and what BA proposes is an attack on current pilots and their families. That is why we are vigorously opposing this outsourcing. OpenSkies will be using BA planes and they should be crewed by BA pilots," Mr. McAuslan said. "What is happening around the world is that major airlines are setting up a subsidiary which starts with just a few aircraft but which is rapidly expanded using outsourced pilots. The mainline pilots are then told they must cut back their own pay and conditions to the levels of the subsidiary. We have seen it happening around the world and we are fighting to prevent it happening here in Britain. We are saying to BA that we are drawing a line in the sand." BALPA is currently balloting BA pilots for industrial action. The ballot closes on Wednesday, February 20, 2008. At the mass meeting of pilots Rob Baker from the Allied Pilots Association in the USA, said that American Airlines set up a subsidiary, American Eagle, with just 16 aircraft. Now it has more than 300. And as a result mainline pilots have been forced to accept heavy pay cuts. BA says it plans to start OpenSkies with just six aircraft yet analysts say the venture cannot be profitable without many more planes. "Don't do what we did," Mr. Baker warned. "We now desperately wish we had opposed outsourcing at the outset." Captain Ian Woods, president of the Australian International Pilots' Association told the BA pilots that Qantas started its subsidiary Jet Star with a handful of planes yet it received almost all the investment and its services from Qantas. Using outsourced pilots, it is growing fast. Qantas pilots have not had to suffer pay cuts as yet but they are losing work with routes being switched from Qantas to Jet Star. "You are absolutely right to bite the bullet now while the bullet is mouth size," he said. Mr. McAuslan said that further proof of BA's real intentions comes in the fact that BA has turned down BALPA's offer to accept lower pay and conditions for OpenSkies pilots -- with a view to improving them once the subsidiary is profitable. BA is resolved that the lower pay levels for OpenSkies pilots will stay low. "What is equally bad is that BA has told us that the pilots recruited into OpenSkies will not be recruited to a BA standard and if they want to switch to a job in BA they would have to go through the BA selection procedure and may not be acceptable," Mr. McAuslan added. "BA is determined to have not one pilot community but two. That immediately restricts promotion opportunities and BA could use this device to set one pilot group against another. We want all pilots in BA and this subsidiary to be part of one BA pilot workforce. BA planes must be flown by BA pilots. We are going to learn the lessons of other airlines and we are determined to stop the outsourcing of our jobs." Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * As of Jan. 2, 2008, British Airways Plc carries a senior unsecured debt rating of Ba1 from Moody's Investors' Service with a stable outlook. BRITISH AIRWAYS: Selling Bermuda-London Tickets at Discount ----------------------------------------------------------- British Airways is selling tickets for its Bermuda-London flights at a discount for US$686, The Royal Gazette reports. The Gazette relates that the British Airways is offering a roundtrip fare to London for US$686, with all taxes included. Passengers are given until Feb. 22 to purchase the tickets to take advantage of the special fare for travel from Bermuda between Feb. 19 and March 23, and between Oct. 25 and Dec. 18. "Roundtrip economy fares to London will be US$374. Tickets must be booked seven days in advance of departure, therefore the first day for travel would be Feb. 22. A minimum stay of one Saturday night is required and a maximum stay of 11 months is available," British Airways' Bermudan manager Marianne Wilcox commented to The Gazette. The discounted roundtrip tickets have a US$182 fuel surcharge and US$130 in government taxes. Tickets can be changed for US$200, The Gazette states. Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * As of Jan. 2, 2008, British Airways Plc carries a senior unsecured debt rating of Ba1 from Moody's Investors' Service with a stable outlook. INTELSAT LTD: S&P Lowers Corporate Credit Rating to B from B+ ------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. The outlook is stable. Concurrent with the new bridge financing utilized in the acquisition of the company by an investor group led by BC Partners, Intelsat used the accordion feature under its Intelsat Corp. credit facility to issue a US$150 million incremental term loan B-2. In light of this fact, S&P also lowered the rating on the company's senior secured credit facility to 'BB-', while leaving the recovery rating unchanged at '1', indicating expectations of very high (90%-100%) recovery in the event of a payment default to this new term loan. "The downgrade reflects the significant increase in leverage resulting from the leveraged buyout," said S&P's credit analyst Naveen Sarma. "It is only the fundamentally sound business profile that enables Intelsat to warrant the `B' corporate credit rating in light of this excessive leverage." The ratings on Intelsat Ltd. reflect a very highly leveraged financial profile that allows for little financial flexibility over the medium term and overwhelms very attractive business characteristics. A strong business risk profile reflects the company's global scale, strong geographic diversification, and a strong revenue backlog that provides for significant cash flow visibility. This enables the company to support such high levels of leverage at this rating level. Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. KINGSWAY FINANCIAL: Posts US$18.5 Million Net Loss in 2007 ---------------------------------------------------------- Kingsway Financial Services Inc. has released its financial results in U.S. dollars for the fourth quarter and year ended Dec. 31, 2007. The company reported a net loss of US$103.5 million for the fourth quarter and a net loss of US$18.5 million for the year. The net loss was primarily attributable to the reserve increase for estimated unfavourable reserve development for prior accident years at its Lincoln General subsidiary previously announced on Dec. 18, 2007. Details of the results for the fourth quarter and 2007 are included in the Management's Discussion and Analysis and Consolidated Financial Statements which are attached. "Overall, 2007 was an extremely disappointing year for the company due to the significant reserve increases which were necessary at our largest subsidiary, Lincoln", said President and Chief Executive Officer, Shaun Jackson. "The reserve increase of US$124.8 million in the quarter significantly reduced earnings, however, it now places the company on a sound footing for future growth in profitability. During 2007, we implemented many improvements and corrective actions at Lincoln, which we expect will result in much improved performance. Not only have reserves been greatly increased, but we are also eliminating or repricing underperforming insurance programs and have enhanced several operational procedures." Mr. Jackson continued, "The increase in reserves at Lincoln has overshadowed the strong operating performance from most of our U.S. subsidiaries and all of our Canadian subsidiaries, as well as healthy investment returns from our securities portfolio. We ended the year with net premiums written of approximately US$1.8 billion and statutory surplus in our operating insurance subsidiaries of approximately US$1.2 billion. This is a conservative level of premium leverage which we anticipate will further strengthen in 2008, providing us with significant flexibility to benefit from improving insurance market conditions. Book value per share grew by 5% during 2007 due to currency fluctuations and disappointing operating results. Over the last five years book value has grown at a compound annual growth rate of 16%, illustrating the benefits of Kingsway's diverse operations." Property and casualty insurance markets in Canada and the United States continue to be very price competitive as the industry is experiencing slow premium growth while at the same time reporting increases in capital and surplus. The company expects that industry combined ratios will continue to deteriorate throughout 2008. However, this deteriorating performance together with low interest rates, weak equity markets and potential impairments of assets will lead, Kingsway believes, to firmer pricing in many of the company's markets before the end of 2008. "Kingsway will continue to execute a strategy which requires that its operating subsidiaries price their insurance products to achieve underwriting profitability. Over the two last years, this pricing discipline has reduced our premium volumes, particularly in our U.S. commercial automobile business. However, we are now well positioned to benefit both from the earnings from our substantial securities portfolio and from any improvements in pricing." Mr. Jackson concluded. Dividend The Board of Directors has declared a quarterly dividend of CAD0.075 per common share, payable on March 31, 2008, to shareholders of record on March 17, 2008. About Kingsway Financial Kingsway Financial Services Inc. (TSE:KFS, NYSE:KFS) -- http://www.kingsway-financial.com/-- is one of the largest truck insurers and non-standard automobile insurers in North America based on A.M. Best data compiled. Kingsway's primary business is trucking insurance and the insuring of automobile risks for drivers who do not meet the criteria for coverage by standard automobile insurers. The company currently operates through thirteen wholly-owned insurance subsidiaries in Canada and the U.S.. Canadian subsidiaries include Kingsway General Insurance Company, York Fire & Casualty Insurance Company and Jevco Insurance Company. U.S. subsidiaries include Universal Casualty Company, American Service Insurance Company, Southern United Fire Insurance Company, Lincoln General Insurance Company, U.S. Security Insurance Company, American Country Insurance Company, Zephyr Insurance Company, Mendota Insurance Company, Mendakota Insurance Company and Avalon Risk Management, Inc. The company also operates reinsurance subsidiaries in Barbados and Bermuda. The common shares of Kingsway Financial Services Inc. are listed on the Toronto Stock Exchange and the New York Stock Exchange, under the trading symbol "KFS". * * * As reported in the Troubled Company Reporter-Latin America on Dec. 21, 2007, Standard & Poor's Ratings Services lowered its senior unsecured and long-term counterparty credit ratings on Toronto-based Kingsway Financial Services Inc. to 'BB+' from 'BBB-'. S&P also lowered the debt ratings on Kingsway's subsidiaries to 'BB+' from 'BBB-'. S&P said the outlook is negative. MAN MAC: Sets Final Shareholders' Meeting for March 3 ----------------------------------------------------- Man Mac Rellerli 10A Limited will hold its final shareholders' meeting on March 3, 2008, at 9:30 a.m., at Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, 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. Man Mac's shareholders agreed to place the company into voluntary liquidation under Bermuda's Companies Act 1981. SCOTTISH RE: Subsidiaries' Debts Cue Moody's to Review Rating ------------------------------------------------------------- Moody's Investors Service has placed the ratings of Scottish Re Group Limited on review for downgrade. The review for downgrade applies to the company's debt ratings and the Baa3 insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. On Nov. 13, 2007, Moody's affirmed the ratings of Scottish Re Group Limited but changed the outlook to negative from stable due to the company's substantial exposure to subprime and Alt-A investments. The rating actions reflects continued deterioration in the credit quality of the company's investment portfolio due to these subprime and Alt-A exposures. As of the end of the third quarter, Scottish Re had approximately US$3 billion of subprime ABS and Alt-A holdings, which represented 27% of its total investment portfolio. In light of the challenging credit environment, Moody's noted its concerns about the potential for further deterioration in the company's portfolio, which would pressure both capital adequacy and liquidity. Although much of the subprime ABS and Alt-A exposure (US$2.3 billion) resides in non-recourse securitization vehicles the company has sponsored, the company's substantial equity investments in these securitizations would be further eroded should the investment holdings experience additional realized and/or unrealized losses. According to Moody's Vice President & Senior Credit Officer, Scott Robinson, "The magnitude of the company's subprime and Alt-A exposure, especially to recent year vintages, makes them susceptible to further losses, especially in a severe downside scenario." With its expectation for further impairments and the potential for additional unrealized losses, Moody's also remains concerned that the company's capital and liquidity cushion, which had helped support the Baa3 insurance financial strength rating, is being materially eroded. Additionally, Moody's believes that credit challenges in the investment portfolio make it increasingly more difficult for Scottish Re to regain the confidence of cedants and write meaningful amounts of new business. During its review process, Moody's will evaluate the company's investment portfolio, its capital and liquidity position, including any plans to recapitalize the company, and the company's strategic plans to regain market confidence. These ratings were placed on review for downgrade: Scottish Re Group Limited: -- Senior unsecured shelf of (P)Ba3; subordinate shelf of (P)B1; junior subordinate shelf of (P)B1; preferred stock of B2; and preferred stock shelf of (P)B2 Scottish Holdings Statutory Trust II: -- preferred stock shelf of (P)B1 Scottish Holdings Statutory Trust III: -- preferred stock shelf of (P)B1 Scottish Annuity & Life Insurance Company (Cayman) Ltd.: -- insurance financial strength rating of Baa3 Premium Asset Trust Series 2004-4: -- senior secured debt of Baa3 Scottish Re (US), Inc.: -- insurance financial strength of Baa3 Stingray Pass-Through Certificates: -- Baa3 (based on IFS rating of Scottish Annuity & Life Insurance Co.) Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. SEA CONTAINERS: Wants to Extend Plan-Filing Period to April 15 -------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to further extend, until April 15, 2008, their exclusive period to file a plan of reorganization. In addition, the Debtors asked the Court to move to June 16, 2008, the deadline for them to solicit acceptances of that plan. The Debtors note that in accordance with Section 1121(d)(2) of the Bankruptcy Code, this will be their last request for an extension of the Exclusive Periods. Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, relates that since filing their last exclusivity request, the Debtors have made substantial progress on the (i) change of control arbitration, and (ii) treatment of claims arising on account of the Debtors' pension scheme liabilities. The Debtors also hope to engage in discussions with GE to resolve open disputed issues between them with respect to GE SeaCo. Mr. Morton relates that the Debtors obtained a favorable result in the change of control arbitration. The arbitrator ruled in favor of Sea Containers Ltd. by finding that a change of control did not occur as a result of the resignation of Jim Sherwood, its president, chief executive officer, and chairman of the board. The decision significantly reduces the uncertainty surrounding one of the Debtors' most valuable assets, and provides more clarity as to the appropriate Chapter 11 plan alternative to pursue, Mr. Morton notes. Moreover, the decision enables the Debtors to seek reimbursement for the millions of dollars in fees and expenses incurred in the arbitration. The Debtors also relate that they have reached agreement on the terms of a settlement with the Official Committee of Unsecured Creditors for Sea Containers Services Ltd. and the Pension Trustees with respect to the Debtors' pension scheme liabilities. The Debtors expect to file a request to approve the settlement in the near term. Mr. Morton asserts that maintaining exclusivity will allow the Debtors to focus on obtaining approval of the Pension Settlement, which the Debtors' view as a prerequisite to filing a Chapter 11 plan. Failure to obtain the extension can lead only to unnecessary distraction and delay in resolving the Debtors' pension scheme liabilities, a task that must be completed before a viable Plan can be presented to the Court, he says. The extension requested will allow the Debtors time to finalize development of their Plan, which is necessarily intertwined with approval of the Pension Settlement, Mr. Morton points out. He discloses that the the Debtors, in consultation with the Official Committees of Unsecured Creditors, continue to explore Plan alternatives in the hope of filing a Plan soon after approval of the Pension Settlement, if obtained. The Debtors believe that the requested extension will also facilitate the arrangement of exit financing. Mr. Morton notes that the Debtors and the GE affiliates involved in GE SeaCo are also working to resolve certain open issues relating to GE SeaCo. The resolution will factor in and foster a consensual Plan. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court previously gave the Debtors until Feb. 20, 2008, to file a plan of reorganization. ============= B O L I V I A ============= PRICELINE.COM INC: Earns US$32.9 Mil. in Quarter Ended Dec. 31 -------------------------------------------------------------- Priceline.com Incorporated reported its financial results for the fourth quarter and full-year ended Dec. 31, 2007. Priceline.com had GAAP net income for the fourth quarter of US$32.9 million, which compares to US$13.2 million in the same period a year ago. For full-year 2007, Priceline.com had GAAP net income for 2007 of US$155.5 million, which compares to US$72.5 million a year ago. "Priceline's gross bookings growth momentum continued in the fourth quarter with international growth accelerating to 113% year-over-year and the domestic growth rate increasing sequentially to 24.2% led by increasing retail airline ticket bookings," Jeffery H. Boyd, priceline's president and chief executive officer, said. "Internationally, we believe that our wide geographic reach, new market initiatives and extensive inventory are providing sustained impetus for growth," Mr. Boyd added. "We believe that in the United States, our value positioning and brand promotion through offline and online channels is driving above-category growth rates in an uncertain economic environment." During 2007, priceline.com achieved several strategic milestones that included: * The elimination of booking fees on published-price domestic and international airfares. This means that, in most cases, priceline.com customers pay less for their tickets than they do at other major full-service online travel reservation services, including Expedia, Travelocity and Orbitz. * The acquisition of Agoda.com, an Asian online hotel reservation service. Agoda offers hotel properties in Australia, China, Japan, India, Thailand, South Korea, Singapore, Indonesia, the Philippines, New Zealand and several other countries. In addition, Agoda offers hotels in Europe, the Americas, the Middle East and Africa. Agoda's services are offered in 12 languages. Agoda contributed US$13.4 million to the fourth quarter international gross bookings metric for the two-month period following the acquisition. * The signing of participation agreements and extensions with several major airlines. In October, American Airlines signed an exclusive agreement to provide priceline.com with Name Your Own Price(R) fares. JetBlue also signed an agreement to provide priceline.com with full access to its published fares, schedules and inventories. * The addition of exclusive Zagat Survey reviews and information for hotels, restaurants and attractions in the United States and select international locations. The Zagat information, combined with traveler reviews provided by priceline.com customers, covers over 600 cities and thousands of hotels and restaurants. * Priceline.com added a group hotel booking service where customers can book 10 to 1,000 rooms at specially discounted prices. Priceline.com's Name Your Own Price(R) hotel service, which previously allowed customers to book up to four hotel rooms, was also expanded to accommodate up to nine rooms at a time. "We believe that Priceline is well-positioned as we enter 2008 to continue building out our global hotel business with new inventory and geographies and mining the synergies available when we build links among our regional businesses in the United States, Europe and Asia," Mr. Boyd said. "While we are concerned with how continued economic distress could negatively affect our markets in both the U.S. and internationally, we believe our services are relatively more attractive to suppliers and consumers in times of economic difficulty and our recent results in 2008 support that thesis and the guidance we are providing for the year." At Dec. 31, 2007, the company's balance sheet showed total assets of US$1.35 billion, total liabilities of US$0.77 billion and total shareholders' equity of US$.58 billion. About Priceline.com(R) Headquartered in Norwalk, Connecticut, Priceline.com Incorporated (Nasdaq: PCLN) -- http://www.priceline.com/-- operates priceline.com, a U.S. online travel service for value- conscious leisure travelers, and Booking.com, an international online hotel reservation service. The company has acquired Agoda.com, an Asian online hotel reservation service. Agoda had hotel properties in in South America, including Brazil, Chile, Argentina, Uruguay, Venezuela, Peru, Colombia, Bolivia, Ecuador, Paraguay, French Guiana; Central America and the Caribbean, including Dominican Republic, Jamaica, Bahamas, Costa Rica, Panama, Puerto Rico, Virgin Islands (U.S.), Guadeloupe, Cayman Islands, Netherlands Antilles, El Salvador and Trinidad & Tobago. * * * As reported in the Troubled Company Reporter on Dec. 19, 2007, Standard & Poor's Ratings Services placed its ratings, including the 'B+' corporate credit rating, on online travel agency Priceline.com Inc. on CreditWatch with positive implications. =========== B R A Z I L =========== ALLIANCE ONE: Earns US$15.7 Million in Quarter Ended December 31 ---------------------------------------------------------------- Alliance One International, Inc., reported improved results for the quarter and nine months ended Dec. 31, 2007. Third Quarter Results For the third fiscal quarter ended Dec. 31, 2007, the company reported net income of US$15.7 million compared to a net loss of US$28.3 million for the same quarter of the prior fiscal year. For the nine months ended Dec. 31, 2007, the company reported net income of US$33.1 million compared to a net loss of US$15.4 million for the same quarter of the prior fiscal year. Chief Executive Officer, Robert E. Harrison said "Sales, operating income, net income and other financial metrics for the quarter and nine months were ahead or improved compared to the prior year, driven by our operating plan execution in conjunction with strong commitment from our employees and customer base." "Our positive results were achieved despite challenging market conditions due to tightening world tobacco supplies, global capital markets concerns and further US dollar value erosion, all which are placing pressures on costs. To counter these pressures going forward, we remain focused on further operating efficiency improvements, additional debt reduction, currency risk management strategies and closer farmer bad debt monitoring." Mr Harrison added. Mr. Harrison noted, "While the capital markets environment remains turbulent, we will still continue to reduce debt in a controlled manner considering our strong cash flows from both operations and the sale of non-core assets. In January, we recently completed the cash sale of our closed Brazilian factory, making an additional US$18 million available for debt reduction. At quarter end Dec. 31, 2007, we had permanently reduced total debt net of cash by US$233.1 million when compared to the prior year quarter end." Mr. Harrison concluded, "We are focused on our customer centric strategic imperatives and at the same time continue to manage costs, further reduce long term debt, and develop innovative product solutions for the future, all targeted to enhance shareholder value." Performance Summary for the Quarter The following is a brief overview of the company's financial results for the quarter ended Dec. 31, 2007. For additional information and a more detailed discussion of these results, please refer to the Quarterly Report on Form 10-Q filed on Feb. 15, 2008. Sales and other operating revenues increased 22.1% from US$458.8 million in 2006 to US$560.1 million in 2007, primarily the result of a 12.7 million kilo increase in quantities sold combined with improved average selling prices. Gross profit increased 22.4% from US$60.7 million in 2006 to US$74.3 million in 2007 and gross profit as a percentage of sales increased from 13.2% in 2006 to 13.3% in 2007, as a result of improved fixed cost absorption on higher sales volume excluding Africa, which had a smaller Malawi crop. Selling, administrative and general expenses decreased 2.3% from US$38.7million in 2006 to US$37.8 million in 2007. The decrease is primarily due to decreased insurance costs and depreciation expense partially offset by increased compensation costs. Other income (expense) was an expense of US$0.2 million in 2007 and income of US$1.5 million in 2006. The income of US$1.5 million in 2006 relates primarily to fixed asset sales. Restructuring and asset impairment charges were US$6.2 million in 2007 compared to US$5.5 million in 2006. Debt retirement expense of US$1.6 million in 2007 relates to one time costs of retiring US$23 million of senior notes during the quarter. Interest expense decreased US$4.4 million from US$26.5 million in 2006 to US$22.1 million in 2007 primarily due to lower average borrowings during the quarter. Interest income increased from US$1.6 million in 2006 to US$2.7 million in 2007 primarily due to higher average cash balances. Effective tax rates were a benefit of 61% in 2007 and an expense of 142.1% in 2006. The company forecasts the tax rate for the year ended March 31, 2008 will be 8.2% after absorption of discrete items. Discontinued operations resulted in income of US$1 million in 2007 compared to a loss of US$10.9 million in 2006. Liquidity and Capital Resources As of Dec. 31, 2007, available credit lines and cash were US$690.6 million. Total debt less cash (US$158.2 million) decreased as mentioned, to US$660.8 million from the prior year quarter end of US$893.9 million. Additionally, from time to time in the future, the company may elect to redeem, repay, make open market purchases, retire or cancel indebtedness prior to stated maturity under its various global bank facilities or outstanding public notes, as they may permit. About Alliance One Based in Morrisville, North Carolina, Alliance One International Inc. (NYSE: AOI) -- http://www.aointl.com/-- is a leaf tobacco merchant. The company has worldwide operations in Argentina, Bangladesh, Brazil, Bulgaria, Canada, China, France, Philippines, Malaysia, and Singapore. * * * Alliance One International Inc. continues to carry Moody's Investors Service's B2 long-term corporate family rating, B1 bank loan debt rating, B2 senior unsecured debt rating, Caa1 subordinated debt rating, and B2 probability-of-default rating. Moody's said the ratings outlook is stable. The company also carries Standard & Poor's B+ long-term foreign and local issuer credit ratings. S&P said the ratings outlook is negative. AMERICAN AIRLINES: Signs Frequent Flyer Pact With Jet Airways ------------------------------------------------------------- American Airlines, a founding member of the global oneworld(R) Alliance, has a new reciprocal frequent flyer agreement with Jet Airways (India) Limited. The frequent flyer agreement, which took effect Friday, Feb. 15, 2008, now allows members of American's AAdvantage(R) program to accrue and redeem miles when traveling on any eligible Jet Airways flights. Members of the JetPrivilege program will be able to accrue and redeem miles on any eligible American Airlines, American Eagle and AmericanConnection flights. "We're pleased to add Jet Airways as another option for our AAdvantage members to earn and redeem miles," said AAdvantage Marketing Programs President, Rob Friedman. "Jet Airways is a fast-growing, world-class airline that will provide our customers more choices than ever. We're also delighted to welcome members of the JetPrivilege program onboard our American flights." The two airlines began a previously announced codesharing agreement. Under this relationship, American places its AA designator code on Jet Airways flights to certain cities in India beyond the Jet Airways Delhi hub. American Airlines flies nonstop between its Chicago hub and Delhi. In turn, Jet Airways places its 9W designator code on certain American Airlines domestic flights out of New York's John F. Kennedy International Airport. In addition, American Airlines and Jet Airways will codeshare and cooperate on traffic between the United States and India that connects at Brussels Airport. About Jet Airways Jet Airways currently operates a fleet of 78 aircrafts and over 370 flights daily. Jet Airways flies to 59 destinations that span the length and breadth of India and beyond, including New York (JFK & Newark), Toronto, Brussels, London (Heathrow), Singapore, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain, Muscat and Doha. The airline plans to extend its international operations to other cities in North America, Europe, Africa and Asia in phases with the introduction of additional wide-body aircraft into its fleet. About American Airlines Based in Fort Worth, Texas, American Airlines Inc., a wholly owned subsidiary of AMR Corp., operates the largest scheduled passenger airline in the world with service throughout North America, the Caribbean, Latin America, Europe and Asia. The airline flies to Belgium, Brazil, Japan, among others. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 15, 2007, Fitch Ratings affirmed the debt ratings of American Airlines, Inc.'s Issuer Default Rating at 'B-' and Secured bank credit facility at 'BB-/RR1'. Fitch says the rating outlook has been revised to positive from stable. AMR CORP: Mulls Potential Tie-up With Continental Airlines ---------------------------------------------------------- American Airlines' parent AMR Corp. is deliberating over a likely consolidation with Continental Airlines Inc., according to Susan Carey of The Wall Street Journal, citing people familiar with the primary talks of the two carriers. As reported in the Troubled Company Reporter on Feb. 8, 2008, United Airlines Inc. could end up marrying Continental Airlines in the event of a merger, instead of with Delta Air Lines. According to WSJ, exploratory merger talks between United and Continental have grown serious. Moreover, the merger talks between Delta Air and Northwest Airlines Corp. have intensified that could lead to an agreement in the next two weeks. However, key details of the Delta-Northwest deal have yet to be hammered out and negotiations could still fall apart. About Continental Airlines Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/ -- is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,900 daily departures throughout the Americas, Europe and Asia, serving 144 domestic and 139 international destinations. More than 500 additional points are served via SkyTeam alliance airlines. With more than 45,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 69 million passengers per year. About AMR Corporation Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, including Brazil, Europe and Asia. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. * * * As reported in the Troubled Company Reporter on Nov. 30, 2007, following the announcement by AMR Corp. that it intends to divest its American Eagle Holding Corp. subsidiary in 2008, Fitch expects no near-term impact on the debt ratings of AMR and its principal operating subsidiary, American Airlines Inc. Fitch affirmed both entities' Issuer Default Ratings at 'B-' on Nov. 13, 2007, while revising the Rating Outlook for AMR to Positive. BANCO CRUZEIRO: Closes US$100 Million Eurobond Issue ---------------------------------------------------- Banco Cruzeiro do Sul's market relations head Fausto Vaz Guimaraes Neto told Business News Americas that the bank closed a eurobond issue for US$100 million on Feb. 15. Mr. Neto commented to BNamericas, "Demand was more than US$100 million but we cut it off there." According to BNamericas, US investment bank BCP Securities coordinated the sale. The eurobonds matures on Aug. 20, 2009 and pay a coupon of 7.50% per year, BNamericas notes. Banco Cruzeiro initially wanted to sell US$50 million, which was part of a US$1 billion short-term notes program, but increased the amount to meet investor demand. The bank has now raised US$305 million through the program. "We're lining up some other bond issues but the market is still a bit closed. We'll get access, though," Mr. Neto told BNamericas. Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul (Bovespa - CZRS4), a private-sector multiple bank with operations in the consumer segment, through paycheck-deductible loans to public employees and social security beneficiaries, and in the corporate segment, offering middle- market companies short-term loans usually backed by receivables. The bank's core business is lending to civil servants, with payments automatically deducted from payrolls. * * * On Sept. 10, 2007, Moody's assiged a Ba2 foreign currency deposit rating for Banco Cruzeiro do Sul. COSAN SA: S&P Says Benalcool Mill Buyout Has No Impact on Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services disclosed that the acquisition of the Benalcool sugar mill, part of the so-called Grupo J. Pessoa (not rated), has no impact on its rating on Cosan S.A. Industria e Comercio (BB/Stable/--). The acquisition will add 1.3 million tons of sugar cane crushing capacity to Cosan's 40 million ton existing capacity and about US$40 million in net sales. The total acquisition price was approximately US$60 million (BRL107 million) and will be paid in cash. The Benalcool mill adds US$16 million (BRL28 million) of net debt, which will not affect Cosan's credit metrics. The ratings incorporate Cosan's aggressive growth strategy and the potential challenges of integrating acquired assets, as reflected in its robust capital expenditure program, which should reach about US$450 million by April 2008. Cosan recently concluded its capitalization program, adding approximately US$1 billion to its cash position. S&P sees the company's strong liquidity as an important mitigating factor for its aggressive growth plans, and for expected difficult operating results in fiscal 2008. Headquartered in Sao Paulo, Brazil, Cosan S.A. Industria e Comercio, is the third largest sugar producer in the world. In 2004/2005 it crushed more than 26 million tons of sugar cane in fourteen mills located in the Central South region of Brazil, with sugar sales of 2.3 million tons and ethanol sales of 825 million liters. TAM LINHAS: Expands Code Share Pact With NHT to Southern Brazil --------------------------------------------------------------- TAM Linhas Aereas and the regional company NHT are expanding their business agreement as of Monday, Feb. 18. The expansion of the partnership will enable TAM to commercialize flights operated by NHT to three more destinations using the code JJ*: the cities of Erechim and Passo Fundo, in Rio Grande do Sul, and Criciuma, in Santa Catarina. These new destinations are added to the other cities in southern Brazil (Pelotas, Rio Grande, Santa Maria, Santa Rosa, Santo Angelo and Uruguaiana) that have been served by TAM since last September, when the agreement between the two companies first took effect. With this agreement, the two companies are offering passengers more services and flight choices, stimulating traffic in the region. Passengers wishing to travel to the new destinations offered by TAM can fly to Porto Alegre (hub of Brazil's southern cities) or to Florianopolis (in the case of Criciuma) and make immediate connections with flights operated by NHT, purchasing just one ticket to cover all stages of the trip. In the same way, NHT passengers can make connections in Porto Alegre or Florianopolis to embark on TAM flights to any destination served by TAM in Brazil or abroad, buying one single ticket. The partnership will enable passengers who fly one segment with one company followed by an immediate connection to a segment with the other partner and accumulate frequent flyer points in TAM's Programa Fidelidade. Customers with TAM's red frequent flyer card and the TAM Itau Personnalite credit card (Mastercard Platinum or Visa Platinum) also have access to TAM VIP lounges at Salgado Filho airport in Porto Alegre, and Hercilio Luz, in Florianopolis. TAM currently -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * On July 23, 2007, Fitch affirmed the 'BB' foreign currency and local currency Issuer Default Ratings of TAM S.A. Fitch has also affirmed the 'BB' rating of its US$300 million of senior unsecured notes due 2017 as well as the company's 'A+(bra)' national scale rating and for its first debentures issuance (BRL500 million). Fitch said the rating outlook is stable. TELEMIG CELULAR: S&P Holds BB- Rating on CreditWatch Positive ------------------------------------------------------------- Standard & Poor's Ratings Services disclosed that its 'BB-' long-term corporate credit rating on Telemig Celular S.A. and its 'B+' long-term corporate credit rating on Amazonia Celular S.A. remain on CreditWatch with positive implications, where they were placed on Aug. 6, 2007. The 'B+' rating on the US$120 million notes co-issued by Amazonia and Telemig also remains on CreditWatch with positive implications. Telemig's total debt outstanding amounted to US$81.9 million in September 2007, and Amazonia's total debt outstanding amounted to US$99.2 million in the same period. The initial CreditWatch placement followed Vivo Participacoes S.A.'s (Vivo; brAA-/Stable/--) announcement that it would acquire Telepart Participacoes S.A.'s 53.9% voting shares in Telemig Participacoes S.A. (which controls Telemig); and Telepart's 51.86% voting shares of Tele Norte Celular Participacoes S.A. -- which controls Amazonia -- with a cash disbursement of approximately US$630 million after regulator's approval. Because Vivo already provides mobile services in Amazonia's concession area, the company was required by regulation to sell the stake in Amazonia. As a result, on Dec. 20, 2007, Vivo announced it reached an agreement to sell its stake in Amazonia to Telemar Norte Leste (Telemar; BB+/Stable/--) for approximately US$67 million. The deal still depends on regulatory approval. After its conclusion, S&P expects Telemig's acquisition by Vivo to be revised by the regulator. "As long as the transactions are concluded, after regulatory approval, the ratings on Telemig could be raised up to one notch (to 'BB'), while the ratings on Amazonia could be raised up to three notches (to 'BB+', same as Telemar). These actions would reflect the improvement in these companies' business profiles," said S&P's credit analyst Luisa Vilhena. Telemig would benefit from being part of Brazil's market leader in the mobile segment, with larger geographical diversification and financial flexibility, while Amazonia would benefit from being part of Brazil's largest telecom group, the market leader in the fixed- line segment, and the fourth player in the mobile segment, counting on a diversified portfolio of services and a solid financial profile. Headquartered in Belem, Brazil, Amazonia Celular is the leading provider of mobile communications services in a region covering the states of Maranhao, Para, Amazonas, Amapa and Roraima in the northern region of Brazil. As of June 30, 2007, Amazonia had 1.29 million subscribers, with a market share of 22% in its concession area. Headquartered in Belo Horizonte, Brazil, Telemig Celular is the leading provider of mobile communications services in the state of Minas Gerais, Brazil. As of November 2007, Telemig Celular had 3.5 million customers, with a market share of 30% in its concession area. USINAS SIDERURGICAS: Will Export Iron Ore ----------------------------------------- Usinas Siderurgicas de Minas Gerais SA aka Usiminas said in a statement that it will be exporting iron ore. As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Usiminas' chief executive officer Rinaldo Soares said the firm would boost iron-ore output at its unit, Mineracao J. Mendes Ltda., to 13 million metric tons by 2013 from 6 million tons. Usiminas said in a statement that it acquired J. Mendes, Somisa and Global Mineracao for an initial total of US$925 million. An additional payment of up to US$1.90 billion would be made if reserves reach 1.4 billion tons with an average iron grade of 47%. According to Business News Americas, no additional disbursement would be made once reserves surpass the goal. BNamericas notes that Usiminas will pump US$750 million into increasing production at the mines. Usiminas said in a statement, "The current production at the mines is at 4.5 million tons and the maximum capacity at the moment is six million tons, a volume which Usiminas plans to reach soon." "The investment package will take place in two stages and foresees that, in five years, the company not only reaches self- sufficiency in [iron] ore but also becomes a player on the international market as an exporter," Usiminas commented to BNamericas. Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de Minas Gerais SA is among the world's 20 largest steel manufacturing complexes, with a production capacity of approximately 10 million tons of steel. Usiminas System companies produces galvanized and non-coated flat steel products for the automotive, small and large diameter pipe, civil construction, hydro-electronic, rerolling, agriculture, and road machinery industries. Brazil consumes 80% of its products and the company's largest export markets are the US and Latin America. The company also sells in China and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local currency rating and an Aa1.br rating on its Brazilian national scale to the BRL500 million non-guaranteed subordinated debentures due 2013 to be issued by Usinas Siderurgicas de Minas Gerais S.A. (aka Usiminas). Net proceeds from the debentures issuance will be used to partially fund the company's capex program. The rating outlook is stable. As reported in the Troubled Company Reporter-Latin America on Jan. 3, 2007, Standard & Poor's Ratings Services revised its outlook on Brazil-based steelmaker Usinas Siderurgicas de Minas Gerais S.A., aka Usiminas, to positive from stable. Standard & Poor's also it affirmed its 'BB+' local and foreign currency corporate credit ratings on Usiminas. * BRAZIL: Petrobras Inks US$1.195MM Single Buoy Mooring Contract ---------------------------------------------------------------- Petroleo Brasileiro SA aka Petrobras has signed a contract with Single Buoy Mooring to build platform P-57, planned to be installed in the Jubarte Field, in the Espirito Santo sea, at a water depth of 1,246 meters. Capable of producing 180,000 barrels of oil and of compressing 2,000,000 cubic meters of gas per day, this will be an FPSO-type platform, which, in addition to producing, also stores oil. The construction term is three years, and the contract is worth US$1.195 billion. The P-57 project is part of the growth goals set forth by the company's 2020 Strategic Plan, which calls for reaching 2015 producing 3.455 million barrels of oil equivalent (boe) and natural gas per day. The minimum national content expected for the construction is 65%, except for the hull's conversion, to be performed in Singapore, and for the purchase of large machinery. Most of the modules and the platform's integration (hull and modules) will be done at the Brasfels shipyard, in Angra dos Reis (state of Rio de Janeiro). The contractor will provide the Island Accord oil tanker for the conversion and will use its own basic model, adapted from projects used for chartered vessels, in the process. After completing the construction, SBM will operate the P-57 for three years, as a contractor, for US$63.55 million. P-57 Summary: Total weight: 92,000 tons Depth: 1,246 meters Job generation in Brazil: 3,000 Contractor: Single Buoy Mooring (SBM) Investment: US$1.195 billion Work commencement: February 2008 API oil gravity: 17 degrees Oil production: 180,000 barrels/day Gas compression: 2,000,000 m3/day Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. * RIO DE JANEIRO: Moody's Ups Global Scale Issuer Ratings to Ba2 ---------------------------------------------------------------- Moody's has upgraded the City of Rio de Janeiro's global scale issuer ratings to Ba2 from Ba3 and upgraded the city's national scale rating to Aa3.br from A2.br. The ratings have a stable outlook. The upgrade reflects the city's continued stable and positive financial performance supported by a sizeable tax base and prudent financial practices. These features have allowed Rio to produce operating surpluses annually and to generate small financing surpluses in most years. These results have been achieved despite fiscal challenges, including rigidity in the city's expenditure base related to its social service programs, significant infrastructure requirements and weak growth in state government transfers. Increased demands for education, health and security services, the need to extend services to disadvantaged areas of the city and the assumption of responsibilities that are generally provided by higher levels of government have also led to an increase in the city's largely inflexible personnel costs. The city has managed these cost pressures by improving tax collection systems and adjusting capital expenditures downward when required, resulting in financing surpluses, excluding amortization, of 7.5% of revenues registered in 2006 and 2.9% in 2007. The latter result was achieved despite significant cost pressures stemming from the construction of facilities for the July 2007 Pan American Games. These costs were absorbed without negative budgetary consequences which is a critical factor in the ratings upgrade. The city's debt burden is moderate in the Brazilian context, but high compared to international peers. The debt load has eased in recent years due to favorable budgetary performance and the impact of favorable price trends on inflation-indexed debt. New borrowing has remained minimal in recent years due to federal restrictions on debt issuance imposed as part of the debt refinancing agreement of 1999 and the Fiscal Responsibility Law. As Brazil's second largest city, Rio has a large and diversified service-based economy which provides support for the generation of own-source revenues, reducing its reliance on transfers from senior levels of government. ========================== C A Y M A N I S L A N D S ========================== AMARANTH GLOBAL: To Hold Final Shareholders' Meeting on March 4 --------------------------------------------------------------- Amaranth Global Equities Limited will hold its final shareholders' meeting on March 4, 2008, at the office of the company. These matters will be taken up during the meeting: 1) approval of the conduct of the liquidation by the liquidators, S.L.C. Whicker and K. Beighton; 2) authorization of the quantum of the liquidators' remuneration, that being fixed by the time properly spent by the liquidators and their staff; 3) accounting of the winding up process and how the property of the company has been disposed of as at the date of the final meeting and to approve those accounts; and 4) authorization of the liquidators to retain the records of the company and of the liquidators for a period of five years from the dissolution of the company, after which they may be destroyed. Amaranth Global's shareholders decided to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: K. Beighton Attn: Blair Houston P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands Telephone: 345-914-4334 / 345-949-4800 Fax: 345-949-7164 BLACKSTONE INVESTMENTS: Proofs of Claim Filing Ends on March 4 -------------------------------------------------------------- Blackstone Investments Limited creditors have until March 4, 2008, to prove their claims to Buchanan Limited, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Blackstone Investments' shareholders agreed on Jan. 24, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Buchanan Limited Attn: Francine Jennings P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Fax: (345) 949-0360 EMPIRE INT'L: Proofs of Claim Filing Deadline is March 4 -------------------------------------------------------- Empire International Ltd.'s creditors have until March 4, 2008, to prove their claims to Buchanan Limited, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Empire International's shareholders agreed on Jan. 24, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Buchanan Limited Attn: Francine Jennings P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Fax: (345) 949-0360 SUISAMERIS TRUSTEES: Final Shareholders' Meeting Is on March 4 -------------------------------------------------------------- Suisameris Trustees Ltd. will hold its final shareholders' meeting on March 4, 2008, at Deloitte, Fourth Floor, Citrus Grove, P.O. Box 1787, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Suisameris Trustees' shareholders decided to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Stuart Sybersma Attn: Jessica Turnbull Deloitte P.O. Box 1787 George Town, Grand Cayman Cayman Islands Telephone: (345) 949-7500 Fax: (345) 949-8258 TORINOS CAPITAL: Proofs of Claim Filing Deadline Is March 4 ----------------------------------------------------------- Torinos Capital Ltd.'s creditors have until March 4, 2008, to prove their claims to Buchanan Limited, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Torinos Capital's shareholders agreed on Jan. 24, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Buchanan Limited Attn: Francine Jennings P.O. Box 1170, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949-0355 Fax: (345) 949-0360 ========= C H I L E ========= LATAM TRUST: Fitch Puts BB- Rating on CLP26.46-Bil. Certificates ---------------------------------------------------------------- Fitch Ratings has assigned a rating to the certificates issued by Latam Trust, Series 2007-102: -- CLP26,462,500,000 UF-Adjusted Certificates due 2022 Credit-linked to Pampa Calichera, 'BB-'. The effective date of the rating was July 9, 2007. Fitch is now publicly rating the certificates. Latam Trust, Series 2007-102 (the issuer) issued a class of credit-linked, fixed-rate certificates with a principal amount of CLP26,462,500,000. The rating is linked to the credit quality of the reference entity Pampa Calichera, Chile; the credit quality of the qualified investments and the legal structure of the transaction. The rating addresses the timely payment of interest in U.S. dollars converted at the prevailing UF-Adjusted CLP/USD spot exchange rate and the ultimate repayment of principal on the maturity date at the prevailing CLP/US$ spot exchange rate as per the transaction's governing documents. The rating does not address any foreign exchange risk. The issuance proceeds were used to purchase US$50 million qualified investments in the form of Pampa Calichera bonds (ISIN: USP8716HAA16), which collateralized the credit default swap. The transaction is designed to provide credit protection on a reference entity, Pampa Calichera, Chile. The credit protection is arranged through a credit default swap between the issuer and the swap counterparty, Merrill Lynch Capital Services, Inc. (parent: Merrill Lynch & Co, Inc. rated 'A+/F1' by Fitch, Outlook Negative). =============== C O L O M B I A =============== CORPORACION INTERAMERICANA: 8.875% Notes Tender Offer Expires ------------------------------------------------------------- Corporacion Interamericana de Entretenimiento, S.A.B. de C.V.'s previously announced cash tender offer and consent solicitation for its 8.875% Senior Notes due 2015, expired at 12:00 a.m., New York City time, on Friday, Feb. 15, 2008. As of Friday, the company had received tenders for US$171,896,000 in aggregate principal amount of the Notes, representing 92.64 percent of the aggregate principal amount of the Notes. Upon acceptance and payment for the Notes tendered, the remaining aggregate principal amount outstanding of the Notes will be US$13,650,000. Pursuant to the consent solicitation, consents to eliminate or modify substantially all of the restrictive covenants, certain events of default and related provisions of the indenture governing the Notes were previously obtained from at least a majority of the aggregate principal amount of the outstanding Notes. As previously announced, after receipt of such requisite consents, on Jan. 31, 2008 the company and the trustee executed a supplemental indenture in respect of such amendments. The amendments will become operative upon acceptance and payment for the Notes by the company, which is expected to occur on Feb. 15, 2008. Citi acted as Dealer Manager for the Offer. The Depositary and the Information Agent was Global Bondholder Services Corporation. The Luxembourg Agent was Dexia Banque Internationale a Luxembourg. Requests for documentation should be directed to Global Bondholder Services Corporation at (866) 794-2200. Questions regarding the Offer should be directed to Citi at (800) 558-3745 (toll-free) or (212) 723-6108 (collect). Requests for documentation may also be directed to the Luxembourg Agent at + 352 4590 1. Corporacion Interamericana de Entretenamiento is a Mexican entertainment company involved in the promotion of live events, including concerts, theatrical productions, amusement parks, betting on foreign sports and number games, trade fairs and exhibitions, as well as sporting and other events. The company's operations are divided into five strategic areas: Corporacion Interamericana Entertainment, which promotes musical concerts, theatrical productions, family shows and other live events; Corporacion Interamericana Las Americas, which centers on the operation and development of the Las Americas Complex in Mexico City, including the Las Americas Hippodrome; Corporacion Interamericana Amusement Parks, which operates nine parks in Mexico and two in Columbia and has also opened the Wannado City Theme Park in Fort Lauderdale, Florida; Corporacion Interamericana Commercial, which attracts and channels customers via advertising and public relations, and Corporacion Interamericana International, which develops live events outside of Mexico, mainly in Argentina, Brazil, Colombia and the United States. * * * As reported in the Troubled Company Reporter-Latin America Jan. 21, 2008, Moody's Investors Service downgraded the ratings of Corporacion Interamericana de Entretenimiento, S.A.B. de C.V., including its Corporate Family Rating, downgraded to Ba3 from Ba2 and US$186 million Senior Unsecured Notes due 2015, downgraded to Ba3 from Ba2. Moody's changed the outlook to stable from negative. GRAN TIERRA: Will Be Listed on Toronto Stock Exchange Today ----------------------------------------------------------- Gran Tierra Energy Inc.'s application for the original listing of its common shares on the Toronto Stock Exchange has been granted. The common shares of Gran Tierra Energy will be listed and posted for trading under the symbol "GTE" on Feb. 19, 2008. "A listing on the Toronto Stock Exchange represents a significant milestone for Gran Tierra Energy, our shareholders, and our employees. We take great pride in this accomplishment which is one more step in the building of a solid foundation upon which we can continue to grow our business," commented Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "We expect this listing will provide the opportunity to create greater visibility for 'GTE,' broaden our investor base, and potentially create additional liquidity for our shareholders. In the United States, the company's shares will continue to trade on the OTC Bulletin Board under the symbol GTRE." Headquartered in Alberta, Canada, Gran Tierra Energy Inc. (OTCBB: GTRE.OB) --http://www.grantierra.com/-- is a publicly traded oil and gas exploration and production company with operations in Argentina, Colombia and Peru. * * * In a 10-Q filing dated November 8, 2007, Gran Tierra Energy Inc. management disclosed that the company's ability to continue as a going concern is dependent upon obtaining the necessary financing to acquire, explore and develop oil and natural gas interests and generate profitable operations from its oil and natural gas interests in the future. The company incurred a net loss of US$10,630,571 for the nine months ended Sept. 30, 2007, and had an accumulated deficit of US$18,673,955 as at Sept. 30, 2007. The company expects to incur substantial expenditures to further its capital investment programs and the company's existing cash balance and cash flow from operating activities may not be sufficient to satisfy its current obligations and meet its capital investment commitments. To provide financing for Gran Tierra's ongoing operations, the company said it secured a US$50 million credit facility with Standard Bank Plc on Feb. 28, 2007, which will provide additional financing for the company's future operations. As at Sept. 30, 2007, the company said it has not drawn-down on this facility. The company's intention is to build a portfolio of oil and natural gas production, development, and exploration opportunities using the capital raised during 2006, cash provided by future operating activities and by using the available credit facility. However, the company said it may need to secure additional sources of capital to fund its future operating activities. ================== C O S T A R I C A ================== SIRVA: Feb. 25 Hearing on Protocol Restricting Equity Trading ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will consider on February 25, 2008, at 10:00 a.m., final approval of a motion filed by Sirva Inc. and its debtor- affiliates for notification and hearing procedures that must be satisfied before interested parties can trade or transfer common stock of the Debtors. Objections to the request must be filed by February 20. The Debtors have incurred, and are currently incurring, significant net operating losses. The Debtors can carry forward their NOLs to (i) set off future taxable income for up to 20 taxable years, reducing future aggregate tax obligations, and (ii) set off taxable income generated by transactions completed during the pendency of their Chapter 11 cases, Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in New York, the Debtors' proposed counsel, says. However, Mr. Cieri notes that unrestricted trading of Equity Securities could adversely affect the Debtors' NOLs if: -- too many 5% or greater blocks of Equity Securities are created; or -- too many shares are added to or sold from those blocks so that, together with previous trading by 5% shareholders during the preceding three-year period, an ownership change within the meaning of Section 382 of the Internal Revenue Code of 1986 is triggered before the Debtors' emergence from Chapter 11 and outside the context of a confirmed plan of reorganization. Likewise, if a 50% or greater shareholder were, for federal or state tax purposes, to treat its Equity Securities as becoming worthless before the Debtors emerge from Chapter 11 protection, a claim could trigger an ownership change, thus triggering an adverse affect on the Tax Attributes, Mr. Cieri says. A "50% Shareholder" refers to any person or entity that at any time since September 28, 2003, has beneficially owned either 50% or more of SIRVA Common Stock or 50% or more of SIRVA Preferred Stock. To protect and preserve their valuable tax attributes, the Debtors sought and obtained the Court's authority, on an interim basis, to require any entity who currently is or becomes a "Substantial Shareholder" to file with the Court a declaration of its status. A "Substantial Shareholder" refers to any entity that has Beneficial Ownership of either (a) at least 3,400,000 shares of SIRVA, Inc., common stock, or (b) at least US$3,400,000 face value of Preferred Stock. Prior to effectuating any transfer of Equity Securities that would result in an increase or decrease in the amount of Equity Securities of which a Substantial Shareholder has Beneficial Ownership or would result in an entity becoming a Substantial Shareholder, that Substantial Shareholder must file with the Court an advance written declaration of the intended transfer. If the Debtors object to a transfer, that transfer cannot proceed unless the Debtors withdraw their objection or unless that transfer is approved by a final Court order. If the Debtors do not object to a transfer within a 30-day period, that transfer can proceed. The Debtors also require any person or entity that currently is or becomes a 50% Shareholder to file with the Court a notice of his status. Prior to filing any federal or state tax return asserting any deduction for worthlessness of the Equity Securities for the tax year ending before the Debtors' emergence from Chapter 11, that 50% Shareholder must file with the Court an advance written notice of the intended claim of worthlessness. If the Debtors object to the claim of worthlessness, the claim filing would not be permitted unless approved by a final and non-appealable Court order. If the Debtors do not object, the filing may proceed. About SIRVA Inc. Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets : SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation solutions to a well-established and diverse customer base. The company handles all aspects of relocation, including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services. SIRVA conducts more than 300,000 relocations per year, transferring corporate and government employees along with individual consumers. SIRVA's brands include Allied, Allied International, Allied Pickfords, Allied Special Products, DJK Residential, Global, northAmerican, northAmerican International, Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA Settlement. The company and 61 of its affiliates filed separate petitions for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis, L.L.P. is representing the Debtor. At its bankruptcy filing, the company reported total assets of US$924,457,299 and total debts of US$1,232,566,813 for the quarter ended Sept. 30, 2007. The company has operations in Costa Rica. (Sirva Inc. Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) ==================== E L S A L V A D O R ==================== CHOICE HOTELS: Dr. Scott Renschler Jr. Joins Board of Directors --------------------------------------------------------------- Choice Hotels International's board to director has elected Scott A. Renschler, Psy.D., as a director. "I am extremely pleased that Scott Renschler will be joining our board of directors," said vice chairman and chief executive officer, Choice Hotels International, Charles A. Ledsinger, Jr. "I look forward to his contributions to the board as Choice focuses on continued profitable growth of its core business and its share of the lodging market." Dr. Renschler is a clinical psychologist in private practice. Since 1993, he has served as a member of the board of directors of Realty Investment Company, a privately-held real estate development and investment company, and Commonweal Foundation, a non-profit organization whose mission is the education of disadvantaged youth. Dr. Renschler is a seven-year director of the Mental Wellness Foundation, a grant-making organization that supports mental health and educational services for at-risk or disadvantaged people. Choice Hotels International -- http://www.choicehotels.com/-- franchises more than 5,500 hotels, representing more than 450,000 rooms, in the United States and 37 countries and territories. As of Dec. 31, 2007, 1,004 hotels are under development in the United States, representing 79,342 rooms, and an additional 89 hotels, representing 8,640 rooms, are under development in more than 15 countries and territories. The company has hotels in Brazil, Costa Rica, El Salvador, Guatemala and Honduras. * * * As reported in the Troubled Company Reporter on Aug. 1, 2007, Choice Hotels International Inc. reported total assets of US$332 million, total liabilities of US$403.4 million, and total stockholders' deficit of US$71.4 million as of June 30, 2007. ========= H A I T I ========= * HAITI: IDB & One Laptop to Launch Pilot Project ------------------------------------------------- The Inter-American Development Bank and the One Laptop Per Child Foundation (OLPC) will finance a pilot project to test whether one-to-one computing can improve teaching and learning in schools in Haiti, the poorest country in the Western Hemisphere. OLPC makes the XO laptop, a low-cost computer designed for children in places with poor