T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, February 20, 2008, Vol. 9, No. 36 Headlines A R G E N T I N A DELTA AIR: CEO Willing to Waive Accelerated Compensation DELTA AIR: Membership Agreement Reached Among Pilots DELTA AIR: JPMorgan Chase Holds 20.8% Stake in Reorganized Co. FIAT SPA: Talks on Parts Venture with Daimler AG Continue NORTHWEST AIRLINES: CEO To Waive Accelerated Compensation NORTHWEST AIRLINES: Membership Agreement Reached Among Pilots NORTHWEST AIRLINES: Wants Fuel Surcharge Class Actions Barred NORTHWEST AIRLINES: Wellington Discloses 11.47% Equity Stake B A H A M A S HARRAH'S ENT: Inks US$950-Mln Katrina Insurance Claim Settlement B E R M U D A GP INVESTMENTS: Joining Auction to Buy Exxon Mobil Assets REFCO INC: Former CEO Philip Bennett Pleads Guilty of Fraud SEA CONTAINERS: Posts US$227,425 Earnings in Month Ended Dec. 31 B R A Z I L AAR CORP: Purchasers Exercise US$25MM Over-Allotment Option BANCO NACIONAL: Earns BRL7.3 Billion in 2007 BRASIL TELECOM: Getting Network Platform From Alcatel-Lucent COMPANHIA SIDERURGICA: To Finish Long Steel Plant by Year End DELPHI CORP: Wants Bankruptcy Ct. to Keep Stay of ERISA Lawsuit GERDAU SA: 2007 Fin'l Results Meet Expectations, Says Brascan GERDAU AMERISTEEL: CAIB Research Keeps Sector Outperform Rating GERDAU AMERISTEEL: Unit Buying Century Steel for US$151.5 Mln GERDAU SA: 2007 Fin'l Results Meet Expectations, Says Brascan SITEL WORLDWIDE: To Launch Customer Care Facility in Nicaragua UAL CORP: Continental Air Merger Discussions in "Advanced" Stage UAL CORP: Court Approves Transfer of Escrow Funds to UMB Bank C A Y M A N I S L A N D S AMARANTH GLOBAL: Sets Final Shareholders' Meeting for March 4 BLACKSTONE INVESTMENTS: Final Shareholders Meeting on March 4 DB ASTWOOD: Proofs of Claim Filing Is Until March 3 DB WILSTEAD: Proofs of Claim Filing Ends on March 3 EMPIRE INT'L: Sets Final Shareholders' Meeting for March 4 KUHN LIMITED: Sets Final Shareholders' Meeting for March 4 TELEWEB INC: Proofs of Claim Filing Deadline Is March 1 TORINOS CAPITAL: Final Shareholders' Meeting Is on March 14 TROPHOS INVESTMENTS: Final Shareholders' Meeting Is on March 4 C H I L E QUEBECOR WORLD: U.S. Trustee Revises Creditors' Committee QUEBECOR WORLD: Wants to Pay Accrued Prepetition Commissions C O S T A R I C A ALCATEL-LUCENT SA: Supports AT&T's Wireless Network Expansion ALCATEL-LUCENT SA: Deploys IP Solutions at Gloucestershire Hotel ALCATEL-LUCENT SA: Providing Brasil Telecom Network Platform E C U A D O R SMURFIT KAPPA: Earns EUR166.4 Million in Year 2007 E L S A L V A D O R MILLICOM INTERNATIONAL: Kaupthing Bank Reaffirms Buy Rating G U A T E M A L A BRITISH AIRWAYS: Inks Agreement to Settle Class Action Lawsuits GOODYEAR TIRE: Earns US$602 Million in Year Ended Dec. 31 G U Y A N A DIGICEL GROUP: Has More Than 200,000 Subscribers in Guyana J A M A I C A NAT'L COMMERCIAL: Court to Rule on Olint's Complaint Next Week NATIONAL COMMERCIAL: Opens Mandeville Branch M E X I C O BERRY PLASTICS: Inks US$520 Mil. Senior Secured Bridge Loan Pact BERRY PLASTICS: Posts US$31.3-Mln Net Loss in Qtr. Ended Dec. 29 CLEAR CHANNEL: Extends Key Dates of Senior Notes Tender Offer CLEAR CHANNEL: Expects CC Media Merger to Close March 31 at Most CLEAR CHANNEL: U.S. DOJ Wants Radio Stations Divested CLEAR CHANNEL: Sues to Compel Providence Equity to Close TV Deal ENESCO GROUP: Plan Confirmation Hearing Moved to March 5 KRIPY KREME: Standard Pacific Divests 6.1% Stake in Company MAXCOM TELECOM: To Launch Telephony Services in New State MOVIE GALLERY: Can Perform Under Plan Support Agreement MOVIE GALLERY: Wants Phase 2 Auction Process Approved US STEEL: Senior VP John Connelly Will Retire at Month End P E R U QUEBECOR WORLD: Creditors' Committee Taps Akin Gump as Counsel P U E R T O R I C O AVIS BUDGET: Posts US$916 Million Net Loss in Full Year 2007 AVIS BUDGET: Ernst & Young Settles Decade-Old Suit for US$300MM NBTY INC: Reports US$178 Million Net Sales in January 2008 V E N E Z U E L A PETROLEOS DE VENEZUELA: Vietnam Drillship to Arrive in March PETROLEOS DE VENEZUELA: Says Exxon's Stake Is Worth US$1.2 Bln. PETROLEOS DE VENEZUELA: Launches Distribution Site in Valencia - - - - - ================= A R G E N T I N A ================= DELTA AIR: CEO Willing to Waive Accelerated Compensation -------------------------------------------------------- As a goodwill gesture to employees and investors, Northwest Airlines' and Delta Air Lines' chief executives said they will voluntarily waive any accelerated compensation to which they are entitled to in the event of a merger, Margarita Bauza at The Free Press reports. According to documents filed with the United States Securities and Exchange Commission, Delta CEO Richard Anderson could receive up to US$15,000,000 in accelerated compensation -- money tied to the company's stock performance -- if there is a merger. The personnel and compensation committee of Delta's board of directors has accepted Mr. Anderson's offer, said Betsy Talton, a Delta spokeswoman, reports The Wall Street Journal. "He is committed to the culture of employees at Delta Air Lines. He's willing to make decisions in the best long-term interest of the company," Ms. Bauza quotes Delta spokeswoman Susan Elliott, as saying. Two days after Mr. Anderson's announcement, Northwest disclosed that CEO Doug Steenland also said he will forgo any accelerated compensation, Ms. Bauza notes. Mr. Steenland would receive US$7,500,000 in pay and incentives if Northwest were to be acquired, according to SEC documents. Details of his accelerated compensation were not provided, however, says Ms. Bauza. "In the event of a merger involving Northwest Airlines, if Steenland remains with the merged airline in an executive capacity, he will waive any acceleration of compensation that would be triggered by the merger, including the acceleration of vesting dates for restricted stock and stock options," Ms. Bauza quotes Northwest spokeswoman Tammy Lee, as saying. About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' Plan. The Plan took effect May 31, 2007. (Northwest Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 89; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Standard and Poor's said that media reports that Delta Air Lines Inc. (B/Positive/--) entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will have no effect on the ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications. DELTA AIR: Membership Agreement Reached Among Pilots ---------------------------------------------------- To avoid a messy, protracted labor wrangle that could arise from consolidation, Northwest Airlines and Delta Air Lines made efforts to come up with a "common labor contract" for their 11,000 pilots before a merger deal is completed, The Wall Street Journal reports. The efforts resulted to an agreement on how to integrate both airlines' membership and seniority lists if a merger between the two carriers goes through as expected, Jessica Mador at the Minnesota Public Radio, reports. Delta and Northwest earlier shared details of their proposed combination with each airline's Air Line Pilots Association chapter so that union leaders will study how to mesh seniority lists, a unnamed source familiar with the situation told Bloomberg News. If approved, the merger would provide that the two carriers' pilot unions would get a voting seat on the new board of directors, along with a share in equity totaling roughly 7%, to be divided among management and employees, Ms. Mador says. According to the paper, the merged airline would be called Delta. Its headquarters would remain in Atlanta, while Northwest's current Minneapolis headquarters would become a secondary operational center. Although Northwest and Delta are poised to conclude merger talks this week, the consolidation will be far from consummated, Marilyn Geewax at The Atlanta Journal-Constitution, reports. Any deal would need to win the approval of the U.S. Department of Justice, which enforces antitrust law, and it must survive a "political minefield," Ms. Geewax says. Congress and unions could apply considerable political pressure to block or shape the deal, according to the paper. Airlines' Board to Meet Wednesday The Wall Street Journal said Tuesday that the boards of both carriers are expected to meet tomorrow to vote on the merger deal. Delta and Northwest are in the final push toward a merger agreement, according to Susan Carey and Paulo Prada. The carriers, however, have yet to reach an accord with their unionized pilots on all aspects of a plan to achieve a common contract, a method for blending the pilots' seniority systems, and the amount of equity the aviators would receive, the Journal said, citing people familiar with the matter. The pilots don't have formal veto over a deal, yet failure to win their support might make it more difficult to pull one off, the Journal said. The deal might include some premium for Northwest shareholders, one person with knowledge of the plan said, but that wasn't certain, according to WSJ. If the pilot deal isn't ready, the board meetings will amount to little more than updates, those sources told WSJ. About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' Plan. The Plan took effect May 31, 2007. (Northwest Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 89; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Standard and Poor's said that media reports that Delta Air Lines Inc. (B/Positive/--) entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will have no effect on the ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications. DELTA AIR: JPMorgan Chase Holds 20.8% Stake in Reorganized Co. -------------------------------------------------------------- JP Morgan Chase & Co. owns 50,044,137 shares of Delta Air Lines, Inc., common stock. According to a Form 13G filed with the Securities and Exchange Commission, the shares constitute 20.8% of the 269,115,474 shares of Delta common stock outstanding as of Sept. 30, 2007. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 89; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Standard and Poor's said that media reports that Delta Air Lines Inc. (B/Positive/--) entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will have no effect on the ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications. FIAT SPA: Talks on Parts Venture with Daimler AG Continue --------------------------------------------------------- Fiat SpA CEO Sergio Marchionne said that the company is having talks with Daimler AG on a probable car parts partnership. A report by Rosario Murgida of Marketwatch quoted Mr. Marchionne saying, the two companies are holding discussions, which will go on for a long time and are much more wide-ranging. Citing Thompson Financial, Forbes reported that Daimler AG CEO Dieter Zetsche said talks with Fiat SpA and Bayerische Motoren Werke AG have led to the conclusion that a tie-up covering a complete car model will not result into any advantages. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported on Nov. 6, 2007, Moody's Investors Service changed the outlook on Fiat S.p.A. and subsidiaries' Ba3 Corporate Family Rating to positive from stable and affirmed its Ba3 long- term senior unsecured ratings as well as the short-term non-Prime rating. On Oct. 4, 2007, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior unsecured ratings at BB- and Short-term rating at B. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The compay also carries B short- term rating. S&P said the outlook is stable. NORTHWEST AIRLINES: CEO To Waive Accelerated Compensation ---------------------------------------------------------- As a goodwill gesture to employees and investors, Northwest Airlines' and Delta Air Lines' chief executives said they will voluntarily waive any accelerated compensation to which they are entitled to in the event of a merger, Margarita Bauza at The Free Press reports. According to documents filed with the United States Securities and Exchange Commission, Delta CEO Richard Anderson could receive up to US$15,000,000 in accelerated compensation -- money tied to the company's stock performance -- if there is a merger. The personnel and compensation committee of Delta's board of directors has accepted Mr. Anderson's offer, said Betsy Talton, a Delta spokeswoman, reports The Wall Street Journal. "He is committed to the culture of employees at Delta Air Lines. He's willing to make decisions in the best long-term interest of the company," Ms. Bauza quotes Delta spokeswoman Susan Elliott, as saying. Two days after Mr. Anderson's announcement, Northwest disclosed that CEO Doug Steenland also said he will forgo any accelerated compensation, Ms. Bauza notes. Mr. Steenland would receive US$7,500,000 in pay and incentives if Northwest were to be acquired, according to SEC documents. Details of his accelerated compensation were not provided, however, says Ms. Bauza. "In the event of a merger involving Northwest Airlines, if Steenland remains with the merged airline in an executive capacity, he will waive any acceleration of compensation that would be triggered by the merger, including the acceleration of vesting dates for restricted stock and stock options," Ms. Bauza quotes Northwest spokeswoman Tammy Lee, as saying. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 89; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' Plan. The Plan took effect May 31, 2007. (Northwest Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * In October 2007, Moody's Investors Service assigned ratings of A3 and Ba1 to the Class A and Class B Certificates, respectively of the Northwest Airlines Pass Through Certificates, Series 2007-1. Each Certificate will represent 100% of the fractional undivided interest in the assets of the corresponding Trust and related Deposits. Property of the Trust will be Equipment Notes to be issued by Northwest Airlines, Inc., which will be secured by a security interest in the aircraft being financed by this transaction. The Notes with respect to each aircraft will be issued under a separate indenture with a separate loan trustee for each indenture. Moody's affirmed all ratings of Northwest, corporate family rating at B1, and the outlook remains stable. NORTHWEST AIRLINES: Membership Agreement Reached Among Pilots ------------------------------------------------------------- To avoid a messy, protracted labor wrangle that could arise from consolidation, Northwest Airlines and Delta Air Lines made efforts to come up with a "common labor contract" for their 11,000 pilots before a merger deal is completed, The Wall Street Journal reports. The efforts resulted to an agreement on how to integrate both airlines' membership and seniority lists if a merger between the two carriers goes through as expected, Jessica Mador at the Minnesota Public Radio, reports. Delta and Northwest earlier shared details of their proposed combination with each airline's Air Line Pilots Association chapter so that union leaders will study how to mesh seniority lists, a unnamed source familiar with the situation told Bloomberg News. If approved, the merger would provide that the two carriers' pilot unions would get a voting seat on the new board of directors, along with a share in equity totaling roughly 7%, to be divided among management and employees, Ms. Mador says. According to the paper, the merged airline would be called Delta. Its headquarters would remain in Atlanta, while Northwest's current Minneapolis headquarters would become a secondary operational center. Although Northwest and Delta are poised to conclude merger talks this week, the consolidation will be far from consummated, Marilyn Geewax at The Atlanta Journal-Constitution, reports. Any deal would need to win the approval of the U.S. Department of Justice, which enforces antitrust law, and it must survive a "political minefield," Ms. Geewax says. Congress and unions could apply considerable political pressure to block or shape the deal, according to the paper. Airlines' Board to Meet Wednesday The Wall Street Journal said Tuesday that the boards of both carriers are expected to meet tomorrow to vote on the merger deal. Delta and Northwest are in the final push toward a merger agreement, according to Susan Carey and Paulo Prada. The carriers, however, have yet to reach an accord with their unionized pilots on all aspects of a plan to achieve a common contract, a method for blending the pilots' seniority systems, and the amount of equity the aviators would receive, the Journal said, citing people familiar with the matter. The pilots don't have formal veto over a deal, yet failure to win their support might make it more difficult to pull one off, the Journal said. The deal might include some premium for Northwest shareholders, one person with knowledge of the plan said, but that wasn't certain, according to WSJ. If the pilot deal isn't ready, the board meetings will amount to little more than updates, those sources told WSJ. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 89; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' Plan. The Plan took effect May 31, 2007. (Northwest Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * In October 2007, Moody's Investors Service assigned ratings of A3 and Ba1 to the Class A and Class B Certificates, respectively of the Northwest Airlines Pass Through Certificates, Series 2007-1. Each Certificate will represent 100% of the fractional undivided interest in the assets of the corresponding Trust and related Deposits. Property of the Trust will be Equipment Notes to be issued by Northwest Airlines, Inc., which will be secured by a security interest in the aircraft being financed by this transaction. The Notes with respect to each aircraft will be issued under a separate indenture with a separate loan trustee for each indenture. Moody's affirmed all ratings of Northwest, corporate family rating at B1, and the outlook remains stable. NORTHWEST AIRLINES: Wants Fuel Surcharge Class Actions Barred ------------------------------------------------------------- Robert Casteel III, Uchenna Udemezue, Steve Ike, and Lolly Randall commenced separate class action lawsuits against Northwest Air Lines before the United States District of Court for the Northern District of California. The Class Action Claimants assert against the Debtors, and 11 other airlines, liabilities in connection with fuel surcharges, and prices charged by the Airlines for transpacific flights to and from the United States, beginning in 2004 -- before the effective date of the Debtors' Plan of Reorganization. The 11 Airlines are Air New Zealand, All Nippon Airways, Cathay Pacific Airways, China Airlines, Eva Airlines, Japan Airlines International, Malaysia Airlines, Qantas Airways, Singapore Air, Thai Airways, United Airlines, and any unnamed alleged co- conspirators. Messrs. Casteel III, Udemezue and Ike are all residents of California who allegedly purchased passenger air transportation from certain of the Airlines, except the Debtors, Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, relates on the Debtors' behalf. Ms. Randall is a resident of Washington, who allegedly purchased Passenger Air Transportation from one or more of the Airlines prior to the Effective Date. Mr. Petrick says the class actions were commenced without any prior application to the U.S. Bankruptcy Court for the Southern District of New York for relief from the Plan injunctions. Specifically, the Class Actions assert that collectively, the Airlines engaged in a conspiracy in restraint of trade, to suppress competition with respect to pricing of transpacific Passenger Air Transportation and Fuel Surcharges. Pursuant to the Debtors' Plan of Reorganization, (i) all debts and claims against the Debtors, including those debts and claims based on civil actions, were discharged on the Plan effective date, and (ii) all claimholders are enjoined from, among other things, asserting any further claim against the Debtors, or any of their assets or properties, based upon any act or omission, transaction or other activity of any kind or nature that occurred prior to the Effective Date "The Class Action violates the Discharge Injunction because the Class Action is based on a claim arising prior to the Effective Date," Mr. Petrick asserts. "The Class Action violates the Interference Injunction because it interferes with the discharge of pre-Effective Date debts provided under the Plan." Against this backdrop, the Debtors ask the Court to: (1) issue a preliminary and permanent injunction, restraining and enjoining the Class from pursuing the Class Actions against the Debtors; (2) direct the Class to file a notice of dismissal or withdrawal of the Class Actions as to the Debtors; and (3) award the Debtors sanctions in an amount to be determined, for the Class' violation of the Discharge Injunction and Interference Injunction. About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' Plan. The Plan took effect May 31, 2007. (Northwest Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * In October 2007, Moody's Investors Service assigned ratings of A3 and Ba1 to the Class A and Class B Certificates, respectively of the Northwest Airlines Pass Through Certificates, Series 2007-1. Each Certificate will represent 100% of the fractional undivided interest in the assets of the corresponding Trust and related Deposits. Property of the Trust will be Equipment Notes to be issued by Northwest Airlines, Inc., which will be secured by a security interest in the aircraft being financed by this transaction. The Notes with respect to each aircraft will be issued under a separate indenture with a separate loan trustee for each indenture. Moody's affirmed all ratings of Northwest, corporate family rating at B1, and the outlook remains stable. NORTHWEST AIRLINES: Wellington Discloses 11.47% Equity Stake ------------------------------------------------------------ In a regulatory filing with the U.S. Securities and Exchange Commission, Robert J. Toner, vice president of Wellington Management Company, LLP, disclosed that as of December 31, 2007, Wellington, in its capacity as investment adviser, may be deemed to beneficially own 29,080,996 shares of Northwest Airlines Corp. common stock, representing 12.44% of Northwest's total outstanding shares. According to Mr. Toner, the securities are owned of record by clients of Wellington Management, and have the right to receive, or the power to direct the receipt of, dividends from, or the proceeds from the sale of, the securities. Among these clients, only Vanguard Windsor Funds has the right or power with respect to more than 5% of this class of securities, Mr. Toner reported. Wellington has shared power to vote or direct the vote of 10,872,086 shares; and, shared power to dispose or to direct the disposition of 28,997,696 shares, he said. In a separate filing, Vanguard Windsor Funds - Vanguard Windsor Fund 51-0082711 disclosed that it beneficially owns 12,456,100 shares of Northwest Airlines Corp. common stock, at December 31, 2007, representing 5.3% of the total outstanding shares of Northwest. According to the SEC report, Vanguard has sole voting power of all 2,456,100 shares. Harbert Management Corporation also has disclosed that at December 31, 2007, it owns 12,572,767 shares of common stock of Northwest Airlines Corp., representing 5.4% of Northwest's total outstanding shares. The Common Stock reported in the filing is held in two accounts -- Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, L.P. The Master Fund holds 9,744,493 shares, and the Special Situations Fund holds 2,828,274 shares. HMC is the managing member of the managing member of the investment manager of the Master Fund. HMC wholly owns the managing member of the general partner of the Special Situations Fund. Philip Falcone is the portfolio manager of both the Master Fund and the Special Situations Fund, and is a shareholder of HMC. Raymond J. Harbert and Michael D. Luce are shareholders of HMC. Messrs. Falcone, Harbert and Luce are deemed to beneficially own the 12,572,767 shares of Northwest Common Stock. HMC, Messrs. Falcone, Harbert and Luce also disclosed that they (i) have shared power to vote or direct the vote of all of the shares that they individually own, and (ii) have shared power to dispose or direct the disposition of all of the shares that they individually own. In another filing, Wayzata Investment Partners LLC, says it has sole voting and dispositive power over 15,578,000 shares of Northwest Airlines Corp. common stock. Wayzata is an investment adviser in accordance with Section 240.13d-1(b)(1)(ii)(E) of the Securities Exchange Act of 1934, and does not beneficially own any shares of Northwest Common Stock. There were 233,749,927 outstanding shares of Northwest Common Stock, as of October 31, 2007. About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' Plan. The Plan took effect May 31, 2007. (Northwest Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * In October 2007, Moody's Investors Service assigned ratings of A3 and Ba1 to the Class A and Class B Certificates, respectively of the Northwest Airlines Pass Through Certificates, Series 2007-1. Each Certificate will represent 100% of the fractional undivided interest in the assets of the corresponding Trust and related Deposits. Property of the Trust will be Equipment Notes to be issued by Northwest Airlines, Inc., which will be secured by a security interest in the aircraft being financed by this transaction. The Notes with respect to each aircraft will be issued under a separate indenture with a separate loan trustee for each indenture. Moody's affirmed all ratings of Northwest, corporate family rating at B1, and the outlook remains stable. ============= B A H A M A S ============= HARRAH'S ENT: Inks US$950-Mln Katrina Insurance Claim Settlement ---------------------------------------------------------------- Harrah's Entertainment Inc. disclosed Friday that the company and certain of its subsidiaries finalized on Feb. 13, 2008, a settlement agreement with their insurance carriers related to claims associated with damages incurred from Hurricane Katrina in Mississippi. The insurance carriers agreed to pay the company and certain of its subsidiaries approximately US$950.15 million to settle all outstanding claims associated with damages incurred from the hurricane, including all property damage and business interruption claims. Of the total settlement amount, the company and certain of its subsidiaries have already received payments totaling approximately US$612.0 million as of Feb. 1, 2008. The company expects to receive all payments during the first quarter of 2008. About Harrah's Entertainment Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc.(NYSE: HET) -- http://www.harrahs.com/-- through its wholly owned subsidiary Harrah's Operating Company Inc., provides branded casino entertainment. Since its beginning in Reno, Nevada 70 years ago, Harrah's has grown through development of new properties, expansions and acquisitions, and now owns or manages casinos on four continents. The company's properties operate primarily under the Harrah's(R), Caesars(R) and Horseshoe(R) brand names; Harrah's also owns the London Clubs International family of casinos. In January 2007, it signed a joint venture agreement with Baha Mar Resorts Ltd. to operate a resort in Bahamas. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 21, 2008, Standard & Poor's Ratings Services lowered its ratings on Harrah's Entertainment Inc. and its wholly owned subsidiary, Harrah's Operating Co. Inc. The corporate credit rating on each entity was lowered to 'B+' from 'BB'. In addition, S&P's senior unsecured and subordinated debt ratings on approximately US$4.6 billion of existing notes, which will be rolled over as part of the transaction, were both lowered to 'B-', from 'BB' and 'B+'. The ratings were removed from CreditWatch, where they were placed with negative implications on Oct. 2, 2006. The rating outlook is stable. ============= B E R M U D A ============= GP INVESTMENTS: Joining Auction to Buy Exxon Mobil Assets --------------------------------------------------------- GP Investments Ltd. will participate in an auction process to buy some Exxon Mobil Corp. assets in South America, Guillermo Parra-Bernal of Bloomberg reports. Bloomberg relates that GP Investments disclosed in a regulatory filing that the bid for Esso gasoline stations in the region depends on a "series of factors" that includes rival offers and other legal and financial arrangements it didn't explain. The firm expects to conclude the sale of 5.4 million depositary receipts by Feb. 28. Octavio Pereira Lopes, a director at the fund in Sao Paulo, was unavailable for comment, Bloomberg states. Based in Hamilton, Bermuda, GP Investments Ltd. - http://www.gpinvestments.com/-- is a leading private equity player in Brazil. The GP Investments' activities consist of its core private equity business and its asset management business, and its mission is to generate higher than average long-term return to its investors and shareholders. Since its inception in 1993, GP Investments raised more than US$1.5 billion from Brazilian and international investors, and acquired more than thirty-five companies in ten different sectors. On May 2006, GP Investments concluded its Initial Public Offering -- IPO, becoming the first listed private equity company in Brazil. * * * In October 2007, Fitch Ratings assigned a 'B/RR4' rating to GP Investments Ltd's extension of its 2007 senior perpetual notes program for US$40 million. Fitch said the Rating Outlook is Positive. REFCO INC: Former CEO Philip Bennett Pleads Guilty of Fraud ----------------------------------------------------------- Phillip R. Bennett, former chief executive officer, chairman, and controlling shareholder of Refco, Inc., pleaded guilty to conspiracy, money laundering and 17 other charges in a scheme that cost investors more than US$2,400,000,000, David Glovin and Patricia Hurtado of Bloomberg News reported. "I know I was wrong, and I deeply regret it," Mr. Bennett told District Judge Naomi Buchwald of the United States District Court for the Southern District of New York. "I take full responsibility for my conduct. I wish to publicly apologize to my family and to all those I've harmed." "Bennett has candidly acknowledged his involvement in the matter," Gary Naftalis, Esq., counsel for the defendants, told journalists. "He was forthcoming and candid and wants to put this matter behind him." Robert Trosten, Refco's former chief financial officer, and Tone Grant, Refco's former president, have pleaded not guilty to helping Mr. Bennett, and will face trial on March 17, Bloomberg News said. Mr. Bennett joined Refco in 1981, and served as president, CEO and chairman since September 1998, Bloomberg said. Along with Mr. Grant, who also served as president, Mr. Bennett transformed Refco from a firm that focused on trading for itself to one that executed transactions for clients. According to Bloomberg, in 1997, Refco began hiding massive losses sustained by clients in the Asian debt crisis. With its viability threatened, Refco began masking its true performance by moving more than US$1,000,000,000 in debt off the company's books to an entity controlled by Mr. Bennett, Refco Group Holdings Inc., Michael Garcia, Manhattan U.S. Attorney said. In return, Refco Group Holdings gave Refco worthless IOUs, according to the government. In his plea, Mr. Bennett admitted that he conspired with other Refco executives, whom he didn't name, to conceal the size of the receivables owed to Refco, Bloomberg News reported. Mr. Bennett said he deceived his auditors, investors and lenders, including Thomas H. Lee and a unit of HSBC Holdings Plc, Europe's biggest banks by market value. Under the U.S. guidelines, Mr. Bennett faces life imprisonment of up to 315 years, as well as forfeiture of US$2,400,000,000, Bloomberg said. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The company has operations in Bermuda. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. (Refco Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Posts US$227,425 Earnings in Month Ended Dec. 31 ---------------------------------------------------------------- Sea Containers, Ltd. Unaudited Balance Sheet As of December 31, 2007 Assets Current Assets Cash and cash equivalents US$42,613,906 Trade receivables, less allowances for doubtful accounts 366,826 Due from related parties 678,431 Prepaid expenses and other current assets 1,104,484 ------------ Total current assets 44,763,647 Fixed assets, net - Long-term equipment sales receivable, net - Investments in group companies 143,546,856 Intercompany receivables - Investment in equity ownership interests 219,264,558 Other assets 3,532,187 ------------ Total assets US$411,107,248 Liabilities and Shareholders' Equity Current Liabilities Accounts payable US$11,248,427 Accrued expenses 66,036,441 Current portion of long-term debt 173,147,423 Current portion of senior notes 385,436,121 ------------ Total current liabilities 635,868,412 Total shareholders' equity (224,761,164) ------------ Total liabilities and shareholders' equity US$411,107,248 Sea Containers, Ltd. Unaudited Statement of Operations For the Month Ended December 31, 2007 Revenue (US$576,334) Costs and expenses: Operating costs 104,364 Selling, general and admin. expenses (2,529,631) Professional fees (4,188,223) Charges against intercompany accounts 5,504,075 Impairment of investment in subsidy Co. - Forgiveness of intercompany debt - Depreciation and amortization - ------------ Total costs and expenses (1,109,415) ------------ Gain or (Loss) on sale of assets - ------------ Operating income (loss) (1,685,749) Other income (expense) Investment income 1,714,999 Foreign exchange gains or (losses) (32,636) Interest expense, net (4,504,861) ------------ Income (Loss) before taxes (4,508,247) Income tax expense (519,900) ------------ Net (Loss) (US$5,028,147) Sea Containers Services Unaudited Balance Sheet As of December 31, 2007 Assets Current Assets Cash and cash equivalents US$54,206 Trade receivables 16,230 Due from related parties 670,771 Prepaid expenses and other current assets 2,739,916 ------------ Total current assets 3,481,123 Fixed assets, net 27,645 Investments 2,677,370 Intercompany receivables 53,743,237 Other assets - ------------ Total assets US$59,929,375 Liabilities and Shareholders' Equity Current Liabilities Accounts payable US$1,276,545 Accrued expenses 1,065,629 Current portion of long-term debt 1,515,069 ------------ Total current liabilities 3,857,243 Total shareholders' equity 56,072,132 ------------ Total liabilities and shareholders' equity US$59,929,375 Sea Containers Services Unaudited Statement of Operations For the Month Ended December 31, 2007 Revenue US$2,394,653 Costs and expenses: Operating costs - Selling, general and admin. expenses (277,060) Professional Fees (454,102) Other charges - Depreciation and amortization (1,352,681) ------------ Total costs and expenses (2,083,842) ------------ Gains on sale of assets (33,311) ------------ Operating income (loss) 277,500 Other income (expense) Interest income 70 Foreign exchange gains (losses) 1,142 Interest expense, net (51,286) ------------ Income (Loss) before taxes 227,425 Income tax credit - ------------ Net Income US$227,425 Sea Containers Caribbean, Inc., reported zero assets and accounts payable of US$3,530,094, as its sole liabilities in its December 2007 balance sheet. A full-text copy of the Debtors' schedules of cash receipts and disbursements is available for free at: http://bankrupt.com/misc/SeaCon_Dec2007_CashSchedule.pdf As of Feb. 8, 2008, Sea Containers Ltd. has not filed its form 10-K report for fiscal year ended December 31, 2005, or later, nor has it filed form 10-Q reports for the quarters ended March 31, 2006, June 30, 2006, Sept. 30, 2006, Dec. 31, 2006, March 31, 2007, June 30, 2007, Sept. 30, 2007, and Dec. 31, 2007. 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 gave the Debtors until Feb. 20, 2008 to file a plan of reorganization. (Sea Containers Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) =========== B R A Z I L =========== AAR CORP: Purchasers Exercise US$25MM Over-Allotment Option ----------------------------------------------------------- AAR CORP. disclosed that the initial purchasers of the convertible senior notes issued on February 11, 2008, have exercised in full their over-allotment option to purchase an additional US$25 million in aggregate principal amount of Notes. The additional Notes will be allocated evenly between the two tranches of Notes, resulting in a total of US$137.5 million aggregate principal amount of 1.625% convertible senior notes due 2014 and US$112.5 million aggregate principal amount of 2.25% convertible senior notes due 2016. The company expects to complete the sale of the additional Notes on February 19, 2008. As with the initial US$225 million of Notes, the additional US$25 million of Notes are subject to separate convertible note hedge transactions between the company and an affiliate of one of the initial purchasers of the Notes. Separately, the company will enter into additional warrant transactions with an affiliate of one of the initial purchasers of the Notes. These convertible note hedge and warrant transactions are intended to reduce potential dilution to the company's common stock upon potential future conversion of the Notes and generally have the effect on the company of increasing the conversion price of the Notes to approximately US$48.83 per share, representing a 75.0% premium based on the last reported sale price of US$27.90 per share on February 5, 2008. The Notes have not been registered under the Securities Act of 1933 or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable securities laws. About AAR Corp. AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides products and value-added services to the worldwide aviation and aerospace industry. With facilities and sales locations around the world, AAR uses its lose-to-the-customer business model to serve airline and defense customers through Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. In Asia Pacific, the company has offices in Singapore, China, Japan and Australia. In Latin America, the company has a sales office in Rio de Janeiro, Brazil. * * * AAR Corporation continues to carry Moody's Investors Service's 'Ba3' long-term corporate family rating, which was assigned in November 2006. BANCO NACIONAL: Earns BRL7.3 Billion in 2007 -------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social said its net profits increased 15% to BRL7.3 billion in 2007, compared with 2006. Business News Americas relates that Banco Nacional said the increase in its profits was due to: -- lower loan loss provisions, -- stronger lending, and -- "excellent performance" of its variable income investment portfolio. Banco Nacional told BNamericas that it made BRL3.7 billion from selling shares in 2007. As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Banco Nacional's disbursements summed up to BRL64.9 billion, 24% higher than what was recorded in 2006, and approvals were BRL98.8 billion, 33% above what was registered last year. The projects framed and the consultations that account for the amount of future approvals and disbursements totaled BRL117 billion and BRL126.8 billion in 2007, revealing increases of 23% and 20%. According to BNamericas, Banco Nacional's non-performing loan ratio rose to 0.1% in 2007, from 0.68% in 2006. Banco Nacional's assets increased 8.1% to BRL203 billion in 2007, compared to 2006, BNamericas states. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007. BRASIL TELECOM: Getting Network Platform From Alcatel-Lucent ------------------------------------------------------------ Brasil Telecom Participacoes SA said that Alcatel-Lucent will provide it a "next generation network platform." Business News Americas relates that Brasil Telecom is expanding its next generation network due to a number portability that will be implemented in August 2008. The firm has been operating this kind of platform in the Aguas Claras in Distrito Federal for two years. Alcatel-Lucent will have until August to install the platform in Brasil Telecom's concession area, BNamericas notes. Its contract with Brasil Telecom covers: -- equipment, -- software, and -- services for implementation of the platform. About Alcatel-Lucent Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long- distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. * * * To date, Brasil Telecom carries Moody's Investors Service's Ba1 senior unsecured and credit default swap ratings. COMPANHIA SIDERURGICA: To Finish Long Steel Plant by Year End ------------------------------------------------------------- Companhia Siderurgica Nacional said in a filing with the Sao Paulo Bovespa Stock Exchange that it expects to wrap up works at its long steel plant project by the end of 2008. Reports say that in August 2006, the company disclosed plans to include long steel products, like rebar and wire rods, to its production portfolio. In a presentation to financial services firm Morgan Stanley, Companhia Siderurgica said that the objective of the plant is to establish new businesses and markets. The company expects 295,000 tons per year in rebar production and 205,000 tons per year in wire rods from the total output, Business News Americas says. According to BNamericas, investments in the venture would likely amount to US$113 million. BNAmericas reports that Companhia Siderurgica has a crude steel capacity of 5.6 million tons per year at its mill in Volta Redonda city, Rio de Janeiro. Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Portugal and the U.S. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 27, 2007, Standard & Poor's Ratings Services revised its outlook on Brazil-based steel maker Companhia Siderurgica Nacional and related entity National Steel S.A. to positive from stable. At the same time, Standard & Poor's affirmed its 'BB' corporate credit rating on CSN and its 'B+' rating on NatSteel. DELPHI CORP: Wants Bankruptcy Ct. to Keep Stay of ERISA Lawsuit --------------------------------------------------------------- Delphi Corporation asks the U.S. Bankruptcy Court for the Southern District of New York to deny a request by three former employees to allow them to commence a lawsuit against Delphi under the Employee Retirement Income Security Act. Jimmy Mueller, David Gargis, and Keith Livingston want the automatic stay under Section 362 of the Bankruptcy Code lifted so that they could pursue claims against Delphi in the U.S. District Court for the Northern District of Alabama. Section 362 bars parties from filing lawsuits against companies undergoing Chapter 11 reorganization. Messrs. Mueller, Gargis, and Livingston said they agreed to be transferred from being hourly employees to salaried employees because certain high level managers made a promise that the employees could retransfer to hourly employment at any any time. They were also assured that they would not lose years of service as hourly employees, hence their pension benefits would not be affected. They sought to go back to being hourly employees, but the Debtor refused to allow the transfers. According to Delphi, Messrs. Mueller, Gargis and Livingston are current or former non-degreed quality reliability engineers employed at Delphi's production facility in Athens, Alabama. They sought to return to hourly-employee status so that they may participate in one of the special hourly attrition programs negotiated by the UAW, Delphi, and General Motors Corp. "Delphi was decreasing, not increasing, the hourly workforce, and was not willing to incur increased incentive attrition program costs or to hire three replacements for the three salaried positions," John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, explains. Delphi asserts that it has sole discretion to determine whether regular, full-time salaried employees will be transferred to hourly status. "The lawsuit that the [Messrs. Mueller, Gargis, and Livingston] are contemplating is precisely the kind of postpetition litigation against a debtor that the automatic stay was intended to preclude," Mr. Butler contends. "As a threshold matter, [Messrs. Mueller, Gargis, and Livingston] have failed to carry their burden to provide an initial showing that cause exists under [Section 362(d)(1) of the Bankruptcy Code] to lift the automatic stay . . . [Messrs. Mueller, Gargis, and Livingston] have offered only a series of unsupported conclusory pronouncements," he argues. In the complaint they propose to file in the Alabama District Court, the three employees seek a court order that allows each of them the same benefits to which hourly employees are allowed and have been allowed since the date of their requests for retransfer. Messrs. Mueller, Gargis, and Livingston's sought benefits include those provided under the 2006 UAW-GM-Delphi Special Attrition Programs or the 2007 program provided in the June 22, 2007 memorandum of understanding among the UAW, Delphi, and GM, Mr. Butler notes. The Bankruptcy Court, however, has retained exclusive jurisdiction over the UAW Settlement Agreement and matters related thereto. Thus, the Bankruptcy Court is the only forum in which the Messrs. Mueller, Gargis, and Livingston may properly file their Draft Complaint, Mr. Butler asserts. Delphi asks the Bankruptcy Court to deny Messrs. Mueller, Gargis, and Livingston's request. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: * Corporate Family Rating of (P)B2; * US$3.7 billion of first lien term loans, (P)Ba3; and * US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. Moody's said the outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: * a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and * a 'B-' issue rating (one notch below the corporate credit rating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. GERDAU SA: 2007 Fin'l Results Meet Expectations, Says Brascan ------------------------------------------------------------- Gerdau SA's financial results for 2007 met expectations, Business News Americas reports, citing brokerage Brascan Corretora. As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2008, Gerdau reported consolidated net income of BRL4.3 billion for the 2007 fiscal year, an increase of 1.1% over 2006. Brascan said in a report, "Overall we observed growth in the company's net revenue, as well as in its cash generation," according to BNamericas. A strong demand growth in Brazil, mainly from the civil construction segment is good for Gerdau, BNamericas says, citing Brascan Corretora. BNamericas notes that shipments to the local market increased 16% in 2007 from 2006 and, this year, shipments will grow 10%. Brascan Corretora told BNamericas that increased use of Gerdau's iron ore sources at Brazilian operations "tends to ensure sustainability or even an improvement of its margin in Brazil." Gerdau's Latin American operations have not been performing well due to economic problems in the countries where the steelmaker operates or due to problems related to the operations, BNamericas states, citing Brascan Corretora. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook. GERDAU AMERISTEEL: CAIB Research Keeps Sector Outperform Rating --------------------------------------------------------------- CAIB Research analysts have kept their "sector outperform" rating on Gerdau Ameristeel Corp.'s shares, Newratings.com reports. Newratings.com relates that the target price for Gerdau Ameristeel's shares was increased to US$17.00 from US$16.50. CAIB Research said in a research note that Gerdau Ameristeel's fourth quarter 2007 results, excluding one-time items, were "broadly in-line with the estimates." CAIB Research told Newratings.com that the increase in finished steel prices would "more than offset by an increase in scrap costs for Gerdau Ameristeel." Gerdau Ameristeel's short-term prospects seem bright. Its shipments would continue to strengthen, Newratings.com states, citing CAIB Research. Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation (NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a mini-mill steel producer in North America. Through its vertically integrated network of 17 mini-mills, 17 scrap recycling facilities and 52 downstream operations, Gerdau Ameristeel serves customers throughout North America. The company's products are sold to steel service centers, steel fabricators, or directly to original equipment manufactures for use in a variety of industries, including construction, cellular and electrical transmission, automotive, mining and equipment manufacturing. Gerdau Ameristeel is a unit of Brazilian firm Gerdau SA. * * * As reported in the Troubled Company Reporter on Nov. 26, 2007, Moody's Investors Service affirmed the ratings of Gerdau Ameristeel Corporation including its 'Ba1' Corporate Family Rating and Probability of Default Rating, as well as the US$405 million Senior Unsecured Regular Bond issued. Moody's outlook for all ratings is stable. Moody's also affirmed Gerdau Brazil's (fictitious entity representing the Brazilian operations of Gerdau S.A. Comprising Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos SA) Ba1 Global Local Currency Corporate Family Rating. GERDAU AMERISTEEL: Unit Buying Century Steel for US$151.5 Mln ------------------------------------------------------------- Pacific Coast Steel, a Gerdau Ameristeel Corporation joint venture, signed a definitive agreement to acquire all the assets of Century Steel Inc. for consideration totaling US$151.5 million. The transaction, which is subject to customary closing conditions, including regulatory approval, is expected to close before the end of the first quarter. "This transaction supports our strategy for continued growth in the downstream business," J. Neal McCullohs, vice president of commercial and downstream operations for Gerdau Ameristeel, remarked. "Century is a fine company with a long history of success in the fabrication and in-place business. With proven leadership, superior customer service, and excellent fabrication facilities, they will bring immediate value to our PCS joint venture, well as the Gerdau Ameristeel mills." Gerdau Ameristeel also disclosed that, concurrently with the acquisition of Century, Gerdau Ameristeel will pay approximately $68 million to increase its equity participation in the PCS joint venture to approximately 84%. "Our venture on the west coast has been extremely successful and we are excited about the opportunities Century brings and about our increasing participation in the venture," Mario Longhi, president and CEO of Gerdau Ameristeel commented. "As with PCS, we found that CSI has a strong management team with core values consistent with ours. The transaction is expected to be immediately accretive to our earnings." About Century Steel Inc. Headquartered in Las Vegas, Nevada, Century Steel Inc. operates reinforcing and structural steel contracting businesses in Nevada, California, Utah and New Mexico. With fabrication facilities' that have an annual capacity in excess of 250,000 tons per year, CSI participates in virtually all segments of the marketplace in the western United States. About Gerdau Ameristeel Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation (NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a mini-mill steel producer in North America. Through its vertically integrated network of 17 mini-mills, 17 scrap recycling facilities and 52 downstream operations, Gerdau Ameristeel serves customers throughout North America. The company's products are sold to steel service centers, steel fabricators, or directly to original equipment manufactures for use in a variety of industries, including construction, cellular and electrical transmission, automotive, mining and equipment manufacturing. Gerdau Ameristeel is a unit of Brazilian firm Gerdau SA. * * * As reported in the Troubled Company Reporter on Nov. 26, 2007, Moody's Investors Service affirmed the ratings of Gerdau Ameristeel Corporation including its 'Ba1' Corporate Family Rating and Probability of Default Rating, as well as the US$405 million Senior Unsecured Regular Bond issued. Moody's outlook for all ratings is stable. Moody's also affirmed Gerdau Brazil's (fictitious entity representing the Brazilian operations of Gerdau S.A. Comprising Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos SA) Ba1 Global Local Currency Corporate Family Rating. GERDAU SA: 2007 Fin'l Results Meet Expectations, Says Brascan ------------------------------------------------------------- Gerdau SA's financial results for 2007 met expectations, Business News Americas reports, citing brokerage Brascan Corretora. As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2008, Gerdau reported consolidated net income of BRL4.3 billion for the 2007 fiscal year, an increase of 1.1% over 2006. Brascan said in a report, "Overall we observed growth in the company's net revenue, as well as in its cash generation," according to BNamericas. A strong demand growth in Brazil, mainly from the civil construction segment is good for Gerdau, BNamericas says, citing Brascan Corretora. BNamericas notes that shipments to the local market increased 16% in 2007 from 2006 and, this year, shipments will grow 10%. Brascan Corretora told BNamericas that increased use of Gerdau's iron ore sources at Brazilian operations "tends to ensure sustainability or even an improvement of its margin in Brazil." Gerdau's Latin American operations have not been performing well due to economic problems in the countries where the steelmaker operates or due to problems related to the operations, BNamericas states, citing Brascan Corretora. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook. SITEL WORLDWIDE: To Launch Customer Care Facility in Nicaragua -------------------------------------------------------------- Sitel Worldwide Corp. will open a customer care facility in Managua, Nicaragua, in April 2008. Sitel's new multi-channel contact center will strengthen the company's ability to provide high-quality, multilingual customer care and technical support solutions to leading companies worldwide. The 14,747-square- foot facility located at Torre Invercasa No. II, Frente al Colegio la Salle, is expected to staff more than 250 associates with the capacity for an additional 180 seats. Sitel's recent expansion to Nicaragua demonstrates growing demand among Sitel clients for Latin America-based contact center support. "Latin America is a key part of the growing near-shore horizon to support English and Spanish bilingual customers in North America," said Dave Garner, Sitel's Chief Executive Officer. "Nicaragua offers a talented bilingual workforce to support our clients. We're proud to expand Sitel's presence in the region." Latin America is becoming the world's next BPO hot spot due to the region's unique ability to offer dynamic, multilingual contact center services for a wide range of global markets. Driving market forces include: * U.S. companies seeking BPO services in close proximity and time zone, as well as workforces with a similar business culture and strong English- and Spanish-speaking skills; * Spanish language companies looking to global sourcing options for affordable customer support services and skilled Spanish-speaking customer care agents; and * Global businesses looking to diversify beyond the confines of the traditional sourcing markets such as the Philippines and India, which are feeling the pressure of maturing competition for skilled labor. For more information, please visit Sitel online to read the white paper "Latin America: The Next India?" Additionally, Sitel offers a podcast by the same title featuring commentary by global outsourcing expert and Datamonitor Analyst Peter Ryan. ""As a rapidly emerging BPO center, Latin America offers a logical and affordable choice for businesses looking to outsource their customer care," said Mr. Ryan. "The factors driving market growth in this part of the world include the availability of a skilled labor pool and the liberalization of domestic economies. Companies, including Sitel, with Latin America-based operations offer their clients a competitive advantage." Headquartered in Nashville, Tennessee, Sitel Worldwide Corp. -- http://www.sitel.com/-- is a customer care business process outsourcing vendor for voice services. It competes with larger multinational companies (i.e. EDS, Accenture, and IBM) and a host of like size companies (including Convergys, West, Teletech, and Sykes) in the customer care call center and business process outsourcing industry. The company has an approximate 80:20 ratio of on/near shore to off shore operating capacit and operates more than 155 locations in 27 countries, including Brazil, Mexi