T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, February 21, 2008, Vol. 9, No. 37 Headlines A R G E N T I N A AGRONOMIA SA: Proofs of Claim Verification Deadline Is March 10 ALITALIA SPA: Air France to Invest EUR3 Billion in Six Years BANCO MACRO: Earns ARS168.7 Million in Quarter Ended December 31 BUENOS AIRES BUREAU: Files for Reorganization in Court COLETUR TRANSPORTE: Claims Verification Is Until March 27 DELTA AIR: Reports Traffic Results for January 2008 DISTRISER SRL: Court Concludes Reorganization IDS SA: Files for Reorganization in Court MALFATTI CONSTRUCCIONES: Claims Verification Is Until April 23 MANNY S MUSICAL: Files for Reorganization in Court MASILY SA: Court Concludes Reorganization MIE FRANCISCO: Trustee to File Individual Reports on April 2 MIE GERARDO: Trustee to File Individual Reports on April 2 NORVEGA SA: Court Concludes Reorganization PELPASA SA: Proofs of Claim Verification Is Until April 30 QUEBECOR MEDIA: Buys 5,396,221 More Nurun Common Shares REGIE ROYALE: Proofs of Claim Verification Deadline Is May 12 SERVI TRA: Court Concludes Reorganization TELECOM ARGENTINA: Fitch Ups Foreign Issuer Default Rating to B+ TELECOM PERSONAL: Fitch Ups Foreign Issuer Default Rating to B+ TELEFONICA DE ARGENTINA: Fitch Lifts Local Currency IDR to BB TRANSPORTES E INVERSIONES: Claims Verification Ends on April 29 TYSON FOODS: Working to Overcome Effects of Higher Grain Prices B E R M U D A MONTPELIER RE: Earns US$315.8 Million in Year Ended Dec. 31 SEA CONTAINERS: Formally Seeks Court Approval of Pension Pact B R A Z I L AAR CORP: Expanding Manufacturing Operations in California BANCO CRUZEIRO: Earns BRL16 Million from Telebras Share Sale BANCO DO BRASIL: To Combine Besc by Second Quarter BNP PARIBAS: Moody's Cuts Credit-Linked Notes' Rating to Ba2 BRASKEM SA: Board OKs New Buyback Program for 19,862,411 Shares BRASKEM SA: Launches First Polypropylene Resin in LatAm Market COMPANHIA SIDERURGICA: Companhia Vale to Resume Pellets Supply GERDAU SA: Investing US$120M in Minas Gerais Iron Ore Operations GERDAU SA: Gets Hydroelectric Complex Concession RHODIA SA: Appoints Pascal Juery as President for Novecare SUN MICROSYSTEMS: Partners With TSMC for UltraSPARC Processors ZIM CORP: Earns $155,758 in Third Quarter Ended Dec. 31, 2007 C A Y M A N I S L A N D S BANK OF CHINA: Gets Nod for CNY10-Billion Stock Fund CHENGWEI AAC: Proofs of Claim Filing Deadline Is March 5 DRAGONOX HOLDINGS: Proofs of Claim Filing Is Until March 5 FREESPIRIT CAPITAL: Sets Final Shareholders' Meeting for March 5 LEAVITT INSURANCE: Proofs of Claim Filing Deadline Is March 5 UBS PACTUAL: Sets Final Shareholders' Meeting for March 5 C O L O M B I A GMAC LLC: Closing Down 75% of North American Auto Credit Offices C O S T A R I C A ALCATEL-LUCENT: Forms LatAm & Caribbean Operational Structure D O M I N I C A N R E P U B L I C BANCO INTERCONTINENTAL: Prosecution Wants Lubrano's Imprisonment E L S A L V A D O R CHOICE HOTELS: Board Declares US$0.17 Per Share Cash Dividend H A I T I ROYAL CARRIBBEAN: To Build US$27-Million Pier in Haiti J A M A I C A CENTURY ALUMINUM: Posts US$112.3MM Net Loss for 2007 Fourth Qtr. M E X I C O ALLIS-CHALMERS: Expects to Report Net Income of US$50.3 Million AMERICAN AXLE: To Construct Manufacturing Facility in Rayong ARROW ELECTRONICS: Signs Purchase Agreement With LOGIX GRUPO MEXICO: Strikers Ask US Congress to Freeze US$1.4B Funding KANSAS CITY: Earns US$55 Mil. in Fourth Quarter Ended Dec. 31 MOVIE GALLERY: Files Second Amended Plan of Reorganization MOVIE GALLERY: Wants US$4.7MM Employee Incentive Plan Approved N I C A R A G U A SOLERA HOLDINGS: Improved Capital Cues S&P to Up Rating to BB- P U E R T O R I C O ADVANCED MEDICAL: To Reduce Workforce by 150 Positions ANGIOTECH PHARMA: Posts US$21.2-Mln Net Loss in 2007 Fourth Qtr. CELESTICA INC: To Hold Annual Shareholders' Meeting on April 24 SUNCOM WIRELESS: Gets Majority Consent From Senior Noteholders T R I N I D A D & T O B A G O HERCULES OFFSHORE: S&P Says Rating Unaffected by Jackup Rigs Buy V E N E Z U E L A CHRYSLER LLC: Court Denies Equipment Pull-Out From Plastech CHRYSLER LLC: To Exceed Recovery Plan on All Key Metrics PETROLEOS DE VENEZUELA: English Court Wants Freeze Compliance PETROLEOS DE VENEZUELA: May Sell 50% Stake in Chalmette Plant PETROLEOS DE VENEZUELA: Workers' Strike Halts Boscan Operations - - - - - ================= A R G E N T I N A ================= AGRONOMIA SA: Proofs of Claim Verification Deadline Is March 10 --------------------------------------------------------------- Jorge Azar, Americo Pedro Despuy y Jose Luis Lavezzari, the court-appointed trustee for Agronomia S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until March 10, 2008. Jorge Azar will present the validated claims in court as individual reports on April 25, 2008. The National Commercial Court of First Instance in Junin, 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 Agronomia 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 Agronomia's accounting and banking records will be submitted in court on June 9, 2008. Jorge Azar 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 debtor can be reached at: Agronomia S.A. Avenida Elguea Roman y Larrea, Chacabuco Buenos Aires, Argentina The trustee can be reached at: Jorge Azar, Americo Pedro Despuy y Jose Luis Lavezzari R. Vazquez 55, Junin Buenos Aires, Argentina ALITALIA SPA: Air France to Invest EUR3 Billion in Six Years ------------------------------------------------------------ Air France-KLM S.A. will inject EUR3 billion into Alitalia S.p.A. over six years should it acquire the Italian government's 49% stake in the carrier, Costas Paris writes for The Wall Street Journal, citing the French carrier's vice-chairman, Leo M. van Wijk. Mr. van Wijk told WSJ that Alitalia "needs new capital and it needs to be refleeted." The vice-chairman added that if a sale agreement is reached, Air France will also commence a buyout offer to acquire all shares at Alitalia and afterwards delist the Italian carrier. Mr. Van Wijk noted that any deal struck depends on the new Italian government and on whether it will support Alitalia's plan to downsize operations at Milan's Malpensa airport, Mr. Paris adds. "If the Malpensa hub is not significantly downsized, we don't see a reason for a deal," Mr. Van Wijk told WSJ. As reported in the Troubled Company Reporter-Europe on Feb. 18, 2008, Air France-KLM will seek approval from the new Italian government chosen following the April 13-14, 2008, snap elections, for any agreement to acquire Italy's stake in Alitalia. "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 favorable, we will stop there." 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. 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 stake in Alitalia to Air France if it emerges as the victor. Forza Italia, however, said it would like the outgoing government, headed by Prime Minister Romano Prodi, to avoid an agreement and leave the decision to the next government. Alitalia and Air France-KLM SA have until mid-March to complete exclusive talks and present a final binding offer to the Italian government, which thereafter will decide whether to sell its stake to the French carrier. 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. BANCO MACRO: Earns ARS168.7 Million in Quarter Ended December 31 ---------------------------------------------------------------- Banco Macro S.A. released its results for the fourth quarter period and for the year ended Dec. 31, 2007. All figures are in Argentine pesos (ARS) and have been prepared in accordance with Argentine GAAP. Summary -- The Bank's net income totalled ARS168.7 million. This result was 92%, or ARS80.7 million, higher than in third quarter 2007's ARS88 million. The annualized fourth quarter 2007 ROAE and ROAA reached 26.2% and 3.5%, respectively. The 2007 net income amounted to ARS495.2 million, or ARS71 million (17%), above 2006 net income of ARS424.3 million. -- Banco Macro's 2007 operating result of ARS545.4 million climbed ARS138.1 million, or 34%, compared to 2006's operating result of ARS407.3 million. -- The Bank's net interest income was ARS358.7 million, increasing 54% quarter on quarter on the back of higher bonds' and loans' interest income. -- Banco Macro's financing to the private sector also showed an attractive growth of 8% quarter on quarter, or ARS742.7 million and 63% Year oVer Year, or ARS3.83 billion. Personal loans, which represent a strategic product for the bank, once again led private loan portfolio growth. This product grew 16% quarter on quarter and 124% Year over Year. -- Total deposits picked up 1% quarter on quarter, or ARS118.6 million, totalling ARS13.6 billion and represented 80% of the Bank's liabilities. The highest growth in private sector funding was in sight deposits (current accounts, 10%, and saving accounts, 7%). -- Banco Macro continued showing a strong solvency ratio, with an excess capital of ARS1.81 billion (26.8% capitalization ratio). In addition, the bank's liquid assets remained at a high level, reaching 55.1% of total deposits. -- In fourth quarter of 2007, Banco Macro's PDLs to total loans ratio was 1.53% and the coverage ratio reached 164.3%. Headquartered in Buenos Aires, Argentina, Banco Macro (NYSE: BMA; Buenos Aires: BMA) -- http://www.macro.com.ar/-- had consolidated assets of ARS11.6 billion (US$3.7 billion) and consolidated deposits of ARS6 billion (US$2 million) as of June 2007. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Fitch Ratings affirmed Banco Macro's Foreign and local currency long-term Issuer Default Ratings at 'B+', Foreign and local currency short-term IDRs at 'B', and Individual at 'D'. Fitch's rating outlook is stable. BUENOS AIRES BUREAU: Files for Reorganization in Court ------------------------------------------------------ Buenos Aires Bureau Relevamientos S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Buenos Aires Bureau to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Buenos Aires Bureau Relevamientos S.A. Blanco Encalada 5533 Buenos Aires, Argentina COLETUR TRANSPORTE: Claims Verification Is Until March 27 --------------------------------------------------------- Beatriz Dominguez, the court-appointed trustee for Coletur Transporte S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until March 27, 2008. Ms. Dominguez will present the validated claims in court as individual reports on May 8, 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 Coletur Transporte 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 Coletur Transporte's accounting and banking records will be submitted in court on June 19, 2008. Ms. Dominguez is also in charge of administering Coletur Transporte's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Beatriz Dominguez Avenida Rivadavia 2151 Buenos Aires, Argentina DELTA AIR: Reports Traffic Results for January 2008 --------------------------------------------------- Delta Air Lines reported record load factors for January. Load factors for international (76.3 percent), Latin (82.3 percent), domestic (74.9 percent) and system (75.4 percent) were higher than any previous January on record for Delta. System traffic increased 2.5 percent from January 2007 on flat capacity. International traffic increased 11.1 percent year over year on an 8.7 percent increase in capacity. Domestic traffic in January 2008 decreased 1.4 percent year over year on a capacity decrease of 3.6 percent. In addition, Delta's continued international expansion coupled with strong demand for Delta's international product resulted in a record number of passengers flying internationally on Delta during the month of January. The number of Pacific, Latin (regional affiliates), Atlantic and international passengers increased 38.4 percent, 31.8 percent, 11.7 percent and 5.5 percent, respectively, versus the same period last year. "In January, consolidated unit revenues increased significantly compared to the prior year period," said Glen Hauenstein, Delta's executive vice president for Network Planning and Revenue Management. "International unit revenues continued to show strong gains, particularly in the Atlantic and Latin regions, driven by increased yield and traffic. In addition, capacity reductions implemented in the domestic system resulted in the anticipated effect of increased yields, driving solid improvement in year-over-year domestic unit revenues." During January 2008, Delta operated its schedule at a 97.2 percent completion rate compared to 98.6 percent in January 2007. Delta boarded 8,100,000 passengers during the month of January 2008, down 0.5 points year over year. 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 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. DISTRISER SRL: Court Concludes Reorganization --------------------------------------------- Distriser S.R.L. concluded its reorganization process, according to data released by Infobae on its Web site. The closure came after the National Commercial Court of First Instance in Buenos Aires homologated the debt plan signed between the company and its creditors. IDS SA: Files for Reorganization in Court ----------------------------------------- IDS S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow IDS to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: IDS S.A. Florida 930 Buenos Aires, Argentina MALFATTI CONSTRUCCIONES: Claims Verification Is Until April 23 -------------------------------------------------------------- Francisco Jose Matias Costa, the court-appointed trustee for Malfatti Construcciones S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 23, 2008. Mr. Costa will present the validated claims in court as individual reports on June 5, 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 Malfatti Construcciones 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 Malfatti Construcciones' accounting and banking records will be submitted in court on July 21, 2008. Mr. Costa is also in charge of administering Malfatti Construcciones' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Francisco Jose Matias Costa Sarmiento 1562 Buenos Aires, Argentina MANNY S MUSICAL: Files for Reorganization in Court -------------------------------------------------- Manny s Musical S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Manny s Musical to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. MASILY SA: Court Concludes Reorganization ----------------------------------------- Masily S.A. concluded its reorganization process, according to data released by Infobae on its Web site. The closure came after the National Commercial Court of First Instance in Buenos Aires homologated the debt plan signed between the company and its creditors. MIE FRANCISCO: Trustee to File Individual Reports on April 2 ------------------------------------------------------------ Wilfredo Borsani, the court-appointed trustee for Mie Francisco Gerardo's bankruptcy proceeding, will present the validated claims as individual reports before the National Commercial Court of First Instance in Rosario, Santa Fe, on April 2, 2008. Mr. Borsani verified the creditors' proofs of claim until Feb. 19, 2008. He will file in court a general report containing an audit of Mie Francisco's accounting and banking records on May 15, 2008. Mr. Borsani is also in charge of administering Mie Francisco's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Mie Francisco Gerardo Chiclana 661, Rosario Santa Fe, Argentina MIE GERARDO: Trustee to File Individual Reports on April 2 ---------------------------------------------------------- Wilfredo Borsani, the court-appointed trustee for Mie Gerardo's bankruptcy proceeding, will present the validated claims as individual reports before the National Commercial Court of First Instance in Rosario, Santa Fe, on April 2, 2008. Mr. Borsani verified creditors' proofs of claim until Feb. 19, 2008. He will file in court a general report containing an audit of Mie Gerardo's accounting and banking records on May 15, 2008. Mr. Borsani is also in charge of administering Mie Gerardo's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Mie Gerardo Agrelo 1189, Rosario Santa Fe, Argentina NORVEGA SA: Court Concludes Reorganization ------------------------------------------ Norvega S.A. concluded its reorganization process, according to data released by Infobae on its Web site. The closure came after the National Commercial Court of First Instance in Buenos Aires homologated the debt plan signed between the company and its creditors. PELPASA SA: Proofs of Claim Verification Is Until April 30 ---------------------------------------------------------- Susana Ruth Zapata, the court-appointed trustee for Pelpasa S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 30, 2008. Ms. Zapata will present the validated claims in court as individual reports on June 12, 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 Pelpasa 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 Pelpasa's accounting and banking records will be submitted in court on Aug. 11, 2008. Ms. Zapata is also in charge of administering Pelpasa's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Susana Ruth Zapata Tucuman 1567 Buenos Aires, Argentina QUEBECOR MEDIA: Buys 5,396,221 More Nurun Common Shares ------------------------------------------------------- Quebecor Media Inc., through its wholly owned subsidiary, 4434943 Canada Inc., has taken up and acquired an additional 5,396,221 common shares of Nurun Inc., including shares deposited by guaranteed delivery. Together with the Nurun common shares taken up and acquired by Quebecor Media on Feb. 15, 2008, and with the terms and conditions of the bid having been complied with, an aggregate of 14,640,550 Nurun common shares, representing 91.54% of all shares not previously held by Quebecor Media and its affiliates, have now been taken up and acquired by Quebecor Media pursuant to its offer to purchase for cash all of the issued and outstanding common shares of Nurun not previously held by it and its affiliates for a price of CDN$4.75 per Nurun common share. Quebecor Media now owns, directly and indirectly, 96.20% of all currently issued and outstanding Nurun common shares. Payment for the Nurun common shares taken up and acquired by Quebecor Media on Feb. 19, 2008, is expected to be made on or prior to Feb. 22, 2008. Quebecor Media intends, as soon as practicable, to acquire the remaining Nurun common shares by means of a statutory compulsory acquisition procedure under the applicable provisions of the Canada Business Corporations Act at the same price as the offer price. Quebecor Media also intends, upon acquiring a sufficient number of Nurun common shares, to de-list the common shares from the Toronto Stock Exchange and to apply to the applicable Canadian securities regulatory authorities for an order deeming Nurun to no longer be a reporting issuer. 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. REGIE ROYALE: Proofs of Claim Verification Deadline Is May 12 ------------------------------------------------------------- Pablo Javier Kainsky, the court-appointed trustee for Regie Royale S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 12, 2008. Mr. Kainsky will present the validated claims in court as individual reports on June 24, 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 Regie Royale 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 Regie Royale's accounting and banking records will be submitted in court on Aug. 29, 2008. Mr. Kainsky is also in charge of administering Regie Royale's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Pablo Javier Kainsky Reconquista 715 Buenos Aires, Argentina SERVI TRA: Court Concludes Reorganization ----------------------------------------- Servi Tra S.A. concluded its reorganization process, according to data released by Infobae on its Web site. The closure came after the National Commercial Court of First Instance in Buenos Aires homologated the debt plan signed between the company and its creditors. TELECOM ARGENTINA: Fitch Ups Foreign Issuer Default Rating to B+ ---------------------------------------------------------------- Fitch Ratings has taken these rating actions for Telecom Argentina S.A. and Telecom Personal S.A.: Telecom Argentina SA: -- Foreign currency Issuer Default Rating upgraded to 'B+' from 'B'; -- Local currency IDR upgraded to 'B+' from 'B'; -- Senior unsecured notes upgraded to 'B+/RR4' from 'B'/RR4; -- National scale ratings to upgraded 'AA-(arg)' from 'A(arg)'. Telecom Personal SA: -- Foreign currency IDR upgraded to 'B+' from 'B'; -- Local currency IDR upgraded to 'B+' from 'B'; -- Senior unsecured notes upgraded to 'B+/RR4' from 'B'/RR4; -- National scale ratings upgraded to 'AA-(arg)' from 'A(arg)'. The Rating Outlook for the local currency IDR and national scale rating of Telecom Argentina and Telecom Personal remains Positive. The Rating Outlook for the foreign currency IDR of both companies is revised to Stable from Positive. Telecom Argentina and Telecom Personal's rating upgrades and the Positive Outlook on the local currency IDR and national scale ratings reflect improved operating performance, stronger credit protection measures and manageable debt maturity profile over the medium term. The ratings are tempered by increased competition, regulatory risk in the fixed-line business and currency mismatch between its dollar denominated debt and its peso denominated cash flow. The foreign currency IDR of both companies, and therefore its Rating Outlook, is constrained by the country ceiling of Argentina at 'B+'. The Positive Outlook could result in an upgrade if the company is able to maintain sound interest coverage levels, strengthens and sustain the consolidated total debt to EBITDA towards one time and keeps adequate liquidity. Telecom Argentina benefits from a diversified business mix, with a growing share of the mobile business unit over total revenues and EBITDA (approximately 60%). The company's incumbent position in northern Argentina in fixed-line services and mobile services gives it a competitive advantage as a fully integrated operator, as fixed-mobile convergence gains acceptance. Fitch believes fixed-mobile convergence can help integrated operators, such as Telecom Argentina, to improve customer loyalty, reduce operating costs and avoid cannibalization between business segments. Despite facing some increases in operating costs as fixed line rates remain frozen in the fixed-line business, Telecom Argentina's EBITDA and cash flow has significantly improved since 2006, driven primarily by its mobile business. In addition, operating improvement has been helped by a good economic environment, increased penetration in wireless services and broadband connections as subscriber acquisition costs has stabilized. With estimated consolidated EBITDA of approximately US$950 million for 2007, capital expenditures of approximately US$400 million, interest expense of US$120 million, Fitch expects free cash flow should be in the range of US$350 million- US$380 million for 2007. Telecom Argentina continues to implement an important transformation of its networks by migrating to a next generation network that will allow it to have operating efficiencies and to offer a new array of services to its fixed and mobile customers. The company is focusing its efforts in improving synergies in the offering of a full range of integrated fixed and wireless services. The investment plan for the Voice, Data and Internet businesses (around of 50% of the total capex) is related to the expansion of ADSL services and the upgrade of the network in order to increase its customer base and assure a higher bandwidth. In the wireless business the most significant capital expenditures are related to the development of the network in the southern region and the extension of capacity in AMBA and northern region. In addition, the group will focus in the introduction of new value added services such as 3G services, and the final stages of the migration of its TDMA subscribers to GSM technology (96%). Telecom Argentina has improved its financial profile and credit protection measures after significant debt repayments during last years. As of October 2007, the company has made mandatory and optional principal amortization which originally scheduled up to 2010, resulting in strong financial flexibility over the near term. For the 12 months ended Sept. 30, 2007, the company had a total debt-to-EBITDA ratio of 1.3 and EBITDA-to-interest expense of 7.5, which are strong for the rating category. Liquidity risk for Telecom Argentina seems manageable over the near term, with a level of cash of US$384 million as of Sept. 30, 2007, and latest 12 months free cash flow for US$375 million. Fitch expects credit-protection measures should continue to improve, driven by a better operational performance and the excess cash flow that should be used to reduce debt. Fitch expects that as the mobile business reaches maturity, should result in lower capital expenditures for this segment and should boost consolidated free cash flow for the company. Telecom Personal's ratings reflect the strong progress in operating performance and credit protection measures, solid brand recognition and market position, improved customer mix and implicit support from parent company Telecom Argentina S.A. The Positive Outlook evidences the expected overall improvement in the company's credit profile. Telecom Personal's free cash flow should benefit from mobile penetration levels reaching a mature stage. Despite the fact that Telecom Personal operates in a highly competitive environment, the company's strong brand recognition and incumbent position result in strong market share in the northern part of Argentina of approximately 40%. Telecom Personal is Telecom Argentina's most important business unit in terms of consolidated revenues and EBITDA, as the mobile business gains scale and matures, should contribute more to group's free cash flow generation. The strong relationship of Telecom Argentina with Telecom Personal is reflected also by cross-default covenants and US$150 million in back-up funding provided to Telecom Personal by Telecom Argentina in case of financial needs Telecom Personal SA is the wireless provider of incumbent operator Telecom Argentina, providing services in Argentina and Paraguay over a GSM network. The company has 11.7 million users, 10.2 million in Argentina, representing an estimated 30% market share, as of Sept. 30, 2007. For the LTM ended Sept. 30, 2007, revenues and EBITDA accounted for ARS5.4 billion and ARS1.2 billon, respectively. Headquartered in Buenos Aires, Telecom Argentina SA -- http://www.telecom.com.ar/-- is the incumbent telecommunications provider in northern Argentina, with an integrated service offering consisting, as of Sept. 30, 2007, of 4.1 million fixed lines, 11.7 million mobile users and 677,000 ADSL Internet users. The company had consolidated revenues and EBITDA during LTM Sept. 30, 2007, of ARS8.7 billion and ARS2.8 billion, respectively. Telecom Argentina is 54.74% owned by Nortel Inversora, which, in turn, is jointly controlled by Telecom Italia (rated 'BBB+' by Fitch) and the Werthein Group. TELECOM PERSONAL: Fitch Ups Foreign Issuer Default Rating to B+ --------------------------------------------------------------- Fitch Ratings has taken these rating actions for Telecom Argentina S.A. and Telecom Personal S.A.: Telecom Argentina SA: -- Foreign currency Issuer Default Rating upgraded to 'B+' from 'B'; -- Local currency IDR upgraded to 'B+' from 'B'; -- Senior unsecured notes upgraded to 'B+/RR4' from 'B'/RR4; -- National scale ratings to upgraded 'AA-(arg)' from 'A(arg)'. Telecom Personal SA: -- Foreign currency IDR upgraded to 'B+' from 'B'; -- Local currency IDR upgraded to 'B+' from 'B'; -- Senior unsecured notes upgraded to 'B+/RR4' from 'B'/RR4; -- National scale ratings upgraded to 'AA-(arg)' from 'A(arg)'. The Rating Outlook for the local currency IDR and national scale rating of Telecom Argentina and Telecom Personal remains Positive. The Rating Outlook for the foreign currency IDR of both companies is revised to Stable from Positive. Telecom Argentina and Telecom Personal's rating upgrades and the Positive Outlook on the local currency IDR and national scale ratings reflect improved operating performance, stronger credit protection measures and manageable debt maturity profile over the medium term. The ratings are tempered by increased competition, regulatory risk in the fixed-line business and currency mismatch between its dollar denominated debt and its peso denominated cash flow. The foreign currency IDR of both companies, and therefore its Rating Outlook, is constrained by the country ceiling of Argentina at 'B+'. The Positive Outlook could result in an upgrade if the company is able to maintain sound interest coverage levels, strengthens and sustain the consolidated total debt to EBITDA towards one time and keeps adequate liquidity. Telecom Argentina benefits from a diversified business mix, with a growing share of the mobile business unit over total revenues and EBITDA (approximately 60%). The company's incumbent position in northern Argentina in fixed-line services and mobile services gives it a competitive advantage as a fully integrated operator, as fixed-mobile convergence gains acceptance. Fitch believes fixed-mobile convergence can help integrated operators, such as Telecom Argentina, to improve customer loyalty, reduce operating costs and avoid cannibalization between business segments. Despite facing some increases in operating costs as fixed line rates remain frozen in the fixed-line business, Telecom Argentina's EBITDA and cash flow has significantly improved since 2006, driven primarily by its mobile business. In addition, operating improvement has been helped by a good economic environment, increased penetration in wireless services and broadband connections as subscriber acquisition costs has stabilized. With estimated consolidated EBITDA of approximately US$950 million for 2007, capital expenditures of approximately US$400 million, interest expense of US$120 million, Fitch expects free cash flow should be in the range of US$350 million- US$380 million for 2007. Telecom Argentina continues to implement an important transformation of its networks by migrating to a next generation network that will allow it to have operating efficiencies and to offer a new array of services to its fixed and mobile customers. The company is focusing its efforts in improving synergies in the offering of a full range of integrated fixed and wireless services. The investment plan for the Voice, Data and Internet businesses (around of 50% of the total capex) is related to the expansion of ADSL services and the upgrade of the network in order to increase its customer base and assure a higher bandwidth. In the wireless business the most significant capital expenditures are related to the development of the network in the southern region and the extension of capacity in AMBA and northern region. In addition, the group will focus in the introduction of new value added services such as 3G services, and the final stages of the migration of its TDMA subscribers to GSM technology (96%). Telecom Argentina has improved its financial profile and credit protection measures after significant debt repayments during last years. As of October 2007, the company has made mandatory and optional principal amortization which originally scheduled up to 2010, resulting in strong financial flexibility over the near term. For the 12 months ended Sept. 30, 2007, the company had a total debt-to-EBITDA ratio of 1.3 and EBITDA-to-interest expense of 7.5, which are strong for the rating category. Liquidity risk for Telecom Argentina seems manageable over the near term, with a level of cash of US$384 million as of Sept. 30, 2007, and latest 12 months free cash flow for US$375 million. Fitch expects credit-protection measures should continue to improve, driven by a better operational performance and the excess cash flow that should be used to reduce debt. Fitch expects that as the mobile business reaches maturity, should result in lower capital expenditures for this segment and should boost consolidated free cash flow for the company. Telecom Personal's ratings reflect the strong progress in operating performance and credit protection measures, solid brand recognition and market position, improved customer mix and implicit support from parent company Telecom Argentina S.A. The Positive Outlook evidences the expected overall improvement in the company's credit profile. Telecom Personal's free cash flow should benefit from mobile penetration levels reaching a mature stage. Despite the fact that Telecom Personal operates in a highly competitive environment, the company's strong brand recognition and incumbent position result in strong market share in the northern part of Argentina of approximately 40%. Telecom Personal is Telecom Argentina's most important business unit in terms of consolidated revenues and EBITDA, as the mobile business gains scale and matures, should contribute more to group's free cash flow generation. The strong relationship of Telecom Argentina with Telecom Personal is reflected also by cross-default covenants and US$150 million in back-up funding provided to Telecom Personal by Telecom Argentina in case of financial needs Headquartered in Buenos Aires, Telecom Personal SA -- http://www.personal.com.ar/-- is the wireless provider of incumbent operator Telecom Argentina, providing services in Argentina and Paraguay over a GSM network. The company has 11.7 million users, 10.2 million in Argentina, representing an estimated 30% market share, as of Sept. 30, 2007. For the LTM ended Sept. 30, 2007, revenues and EBITDA accounted for ARS5.4 billion and ARS1.2 billon, respectively. TELEFONICA DE ARGENTINA: Fitch Lifts Local Currency IDR to BB ------------------------------------------------------------- Fitch Ratings has taken these rating actions for Telefonica de Argentina S.A.: -- Local currency issuer default rating upgraded to 'BB' from 'BB-'; -- Foreign currency IDR affirmed at 'B+'; -- National scale rating upgraded to 'AA+(arg)' from 'AA- (arg)'; -- Approximately US$474 million of Obligaciones Negociables upgraded to 'BB-/RR3' from 'B+/RR3'; The Rating Outlook is Stable. Telefonica de Argentina's S.A. rating actions reflect stronger financial profile, solid business position in the Argentine telecom sector, healthy cash flow generation and a manageable debt maturity profile. The ratings incorporate a level of implicit support from controlling shareholder Spain's Telefonica S.A., which has provided flexibility in the form of intercompany loans in previous years. Telefonica de Argentina's ratings are tempered by currency mismatch between revenues and indebtedness, regulatory risk and increased competition from wireless services. The company's Foreign Currency IDR is constrained by the country ceiling of Argentina at 'B+'. The company's solid business position results in strong cash flow generation. Telefonica de Argentina's incumbent position in southern Argentina and nationwide estimated market share of 53%, gives the company enough flexibility to build cash balances after capital expenditures. Frozen rates and cost pressures have resulted in margin reduction over 2007, which has been compensated by increased broadband revenues resulting in stable EBITDA levels of approximately ARS1.8 billion over the 12 months ended Sept. 30, 2007. In Fitch opinion, broadband services still offer good growth opportunities in Argentina as penetration is still low. Fitch believes that once allowed, Telefonica de Argentina will offer pay television services to enhance its service offering following the strategy of other Telefonica companies in the region. While still remains unclear how video will be distributed, either IPTV or DTH, it should result in greater revenues for the company and slight pressure in operating margins as video is launched. Adding video to its bundle offering of voice and broadband should strengthen the company's competitive position in the residential market. Fitch expects frozen rates regime to remain over the medium term as it does not expect a change in the Telecommunications law in the near term given the government priorities, as other activity sectors are of more concern to the government than the Telecom sector. Regulatory risk has resulted in pressure to profitability as fixed line operators have increased costs, mostly associated with personnel salaries and wages, but are not allowed to increase local service tariffs to compensate for cost increases. Notwithstanding these pressures, Telefonica de Argentina is expected to have enough resources to meet its debt obligations and capital expenditures due to its solid cash flow generation, moderate capital expenditures and convenient debt profile. Telefonica de Argentina has a manageable maturity profile and total debt consists primarily of US dollar denominated market debt. The company is expected to pay short term maturities with cash and will not face a significant maturity until 2010, when approximately ARS670 million of debt matures. With expected positive EBITDA growth for the next few years despite slight EBITDA margin reductions, FFO should be above ARS1,500 million and with annual capital expenditures of approximately ARS550 million-ARS600 million, Fitch expects free cash flow to be close to ARS1 billion over the next few years. Total debt to EBITDA should be close to one time for year-end 2007, as the company paid an US$189 bond million that was due in November 2007, and should finish 2008 with a total debt to EBITDA ratio below 1.0 as it continues to pay debt maturities with cash flow. Telefonica de Argentina's financial profile should continue to improve over the medium term as the company continues to use free cash flow to pay debt, absent of cash distributions to shareholders. The company is not expected to be able pay dividends at least until 2009. The company has reduced its debt levels over the past few years, mainly with internally generated cash flow, to ARS2.4 billion as of Sept 30, 2007, from a peak of more than ARS6 billion in 2002. Credit protection measures are strong for the rating category. For the 12 months ended Sept. 30, 2007, total debt to EBITDA and FFO adjusted leverage were 1.3 and 1.2, respectively. Interest coverage ratios of EBITDA to interest expense and FFO interest coverage were 4.6 and 5.3, respectively. Telefonica de Argentina is the incumbent local-exchange carrier in the southern region of Argentina providing local service, long distance, broadband services and dial-up Internet access. The company had revenues and EBITDA during 2006 of approximately US$1,295 million and US$600 million, respectively. Telefonica S.A. of Spain controls, either directly or indirectly, 98% of Telefonica de Argentina. TRANSPORTES E INVERSIONES: Claims Verification Ends on April 29 --------------------------------------------------------------- Alberto Jose Buceta, the court-appointed trustee for Transportes e Inversiones S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 29, 2008. Mr. Buceta will present the validated claims in court as individual reports on June 11, 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 Transportes e Inversiones 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 Transportes e Inversiones' accounting and banking records will be submitted in court on Aug. 8, 2008. Mr. Buceta is also in charge of administering Transportes e Inversiones' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Alberto Jose Buceta Avenida Rivadavia 1342 Buenos Aires, Argentina TYSON FOODS: Working to Overcome Effects of Higher Grain Prices --------------------------------------------------------------- Despite the impact of escalating grain prices and other market- related challenges, Tyson Foods Inc. is strategically positioned for future success, Richard L. Bond, the company's president and chief executive officer, disclosed during the annual Consumer Analyst Group of New York (CAGNY) Conference. "We've accomplished a great deal in our efforts to make Tyson a stronger, more agile company and believe we have the right strategies in place to win," said Mr. Bond. "We're confident about our future because of our efforts to optimize our commodity businesses, create new products, expand our international presence and increase the value of our by- products." Tyson experienced increased sales of US$1.5 billion in fiscal 2007 and generated operating income of US$700 million while incurring US$300 million in additional grain costs. The company also reduced debt by US$1.2 billion. Corn-based ethanol is putting pressure on input costs for the food industry and companies like Tyson. Approximately 25% of the U.S. corn crop is expected to be used in 2008 to produce ethanol, compared to only 8% in 2002. "We currently believe we'll experience almost $800 million in increased grain and related input costs in fiscal 2008," said Mr. Bond. Grain is a major expense in chicken production, representing almost half the cost of raising a live chicken. Higher grain prices also affect the cost of cooking oil, flour and other ingredients used to produce further processed and pre- cooked chicken products. Tyson is working to offset the higher costs through its risk management activities and by increasing finished product prices. The company also continues to push for changes in the government mandate on corn-based ethanol and the removal of tariffs on sugar-based ethanol imports. He added, "According to a recent report, even if the entire U.S. corn crop were turned into ethanol, it would displace only 3.5% of gasoline use." Mr. Bond went on to describe Tyson's efforts to collaborate with retail and foodservice customers to meet consumer needs with innovative food solutions. He noted the success of the Tyson Discovery Center, the company's new food research and development facility, which includes an R&D team of 120 professionals, 19 research kitchens and a USDA-inspected pilot plant. "Even with our long-standing customers, we've been able to increase the number of projects in the pipeline and speed up product launches," he said. Customers representing about half of the company's sales revenue have already been to the Discovery Center, which opened a year ago. As part of the company's efforts to capitalize on consumer insights, Tyson has identified three consumer need states for meal preparation. They include: * Homemade with Help(tm)- Tyson is addressing consumer desires to serve their families home-cooked food by providing a few short-cuts. An example is Tyson's "Trimmed and Ready" fresh chicken, which has already been hand-trimmed for the consumer and is ready to cook. * Fast & Flexible(tm)- Because of the fast-paced lifestyle of many consumers, Tyson has developed products such as pre- cooked dinner meats and restaurant-style frozen snacks called Tyson(r) Any'tizers(tm). These products can be heated and served in a matter of minutes. * Ready Now(tm)- 83% of consumers' main meals include ready- to-eat foods. Tyson is helping expand the retail grocery deli business with such products as prepared appetizers and gourmet sandwich wraps. Mr. Bond reported Tyson is expanding the success of its "Thank You Mom" advertising and promotion plan by tying it into the company's sponsorship of the 2008 and 2010 U.S. Olympic teams. The company also has successfully promoted Tyson consumer products through food donations made to families on the ABC-TV show "Extreme Makeover: Home Edition." Product development and innovation also have been key to the success of Tyson Food Service. Examples include the 2007 reformulation of breaded products to zero grams of trans fat and the conversion of ready-to-cook chicken to "All Natural" with a 50% reduction in salt. The company used its Kid Tested, Kid Approved(tm) development process in the introduction of new products for school cafeterias. Tyson continues efforts to maximize margins in its commodity businesses, according to Bond, by reducing non-value added costs, improving yields and pricing and optimizing product mix and services. This has included such measures as consolidating some of the company's beef operations, changes in bird weight and optimizing the number of value-added breast portions from each chicken. Mr. Bond projects Tyson's international business will grow from US$3 billion in annual sales to at least US$5 billion by 2010. Driving this increase will be the expansion of the Tyson operations in other countries. Tyson has completed joint ventures in Argentina and China, hopes to expand operations in Mexico and is working on a potential acquisition in Brazil. Tyson continues exploring ways to increase the value of its by- products, including the conversion of fat into fuel. In December 2007, Tyson and ConocoPhillips started turning beef tallow into renewable diesel fuel. Production started at 100 barrels a day and is now operating at 300 to 500 barrels a day. Tyson's alternative fuel joint venture, Dynamic Fuels, will convert low cost fat, grease and other feedstock into renewable synthetic jet fuel. A production facility is being constructed in Louisiana and is expected to begin production in 2010. About Tyson Foods Inc. Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. The company makes a wide variety of protein-based and prepared food products at its 123 processing plants. Tyson has approximately 114,000 Team Members employed at more than 300 facilities and offices in 26 states and 80 countries. Tyson's U.S. beef plants are located in Amarillo, Texas; Dakota City, Nebraska; Denison, Iowa; Finney County, Kansas; Joslin, Illinois, Lexington, Nebraska and Pasco, Washington. The company also has a beef complex in Canada, and is involved in a vertically integrated beef operation in Argentina. * * * Tyson Foods Inc. continues to carry Moody's Ba1 corporate family rating and Ba2 probability of default rating. The outlook is negative. ============= B E R M U D A ============= MONTPELIER RE: Earns US$315.8 Million in Year Ended Dec. 31 ----------------------------------------------------------- Montpelier Re Holdings Ltd. reported US$315.8 million of net income for the fiscal year 2007, compared to US$302.9 million of net income in 2006. For the three months ended Dec. 31, 2007, the company earned US$90.5 million compared to net earnings of US$122.1 million for the same period in 2006. The company recorded a fully converted book value per share of US$17.88 as at Dec. 31, 2007, an increase of 5.4% and 17.6% for the quarter and year inclusive of dividends. Comprehensive income for the quarter ended Dec. 31, 2007, was US$88.0 million and for the year was US$314 million. Operating income, which excludes foreign exchange, investment gains and losses and income tax, was US$88 million for the quarter. Operating income for the full year was US$280 million. The comprehensive return on average shareholders� equity for the quarter and year were 5.4% and 19.9%, respectively. The loss ratio for the quarter was 20.8 percent, which includes US$10.0 million, or 6.8 points, of losses incurred as a result of the California wildfires in October. This was offset in part by net favorable prior year reserve development of US$4.1 million, or 2.8 points. The combined ratio for the quarter was 52.9% and for the year was 61.3% compared to 60.3% in 2006. The total return on the consolidated investment portfolio was 1.2% for the fourth quarter and 5.7% for the full year. The company has minimal subprime exposure. Additional disclosure on the company's mortgage-backed and asset-backed security holdings are provided in its fourth quarter financial supplement. Anthony Taylor, Chairman and Chief Executive Officer, commented: "This was a robust finish to another strong year resulting in a 5.4% increase in book value per share for the quarter and 17.6% for the year. Since the beginning of 2006, we have grown book value per share by over 55%, inclusive of dividends." "Notwithstanding the US$12 million of expenses related to the roll-out of our new Lloyd�s, European and US platforms, the combined ratio for the year was a very strong 61.3%, reflecting what turned out to be a relatively light catastrophe year. From a strategic perspective, we have successfully established our expanded operating platforms, which will make their initial contribution to the top line in 2008, although it will take a little longer before they contribute positively to earnings. We are already starting to reap the benefits of the flexibility afforded to our operations from having multiple licenses and locations and expect to leverage that increased flexibility further in the upcoming quarters." "On another note, several large individual risk losses have occurred within the first 50 days of 2008 which in the aggregate will produce a sizeable industry loss to the commercial property insurance market. Based on current information, we expect to incur total net losses of US$30-US$40 million from some of these events." Kernan Oberting, Chief Financial Officer, said: "We continue to actively manage capital, repurchasing 3,327,628 common shares during the fourth quarter at an average price of US$16.98. During 2007, we publicly repurchased 3,776,989 common shares for US$63.7 million and privately repurchased 939,039 common shares and 7,172,375 warrants from White Mountains Insurance Group, Ltd. for US$65 million. Through these transactions, we retired approximately 11% of our fully converted common shares. Year- to-date 2008, we have repurchased an additional 2,067,011 common shares at an average price of US$16.93 per share in the open market." Headquartered in Bermuda, Montpelier Re Holdings Ltd., through its operating subsidiary Montpelier Reinsurance Ltd., is a premier provider of global property and casualty reinsurance and insurance products. During the year ended Dec. 31, 2005, Montpelier underwrote US$978.7 million in gross premiums written. Shareholders' equity at Dec. 31, 2005, was US$1.1 billion. * * * To date, Montpelier Re Holdings holds A.M. Best's "bb+" subordinated debt rating and "bb" preferred stock rating. SEA CONTAINERS: Formally Seeks Court Approval of Pension Pact ------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to approve the pension scheme agreement between them and the trustees of the two main Sea Containers Pension Schemes, relating to the amount of the trustees' claims against Sea Containers' estate. As reported in the Troubled Company Reporter on Feb. 8, 2008, the Debtors emphasized that the agreement is a critical and positive milestone in its efforts to emerge from Chapter 11. Since the Chapter 11 negotiations first began in October 2006, the board of directors and the officers of Sea Containers have been focused on achieving a plan of reorganization that provides full and fair settlement for all creditors. The major creditors involved are the 1983 and the 1990 Pension Funds which have almost 1,500 members between them and the holders -- thought to be a number of U.S. hedge funds -- of four outstanding bond issues. The agreement with the Trustees for the pension funds, which are estimated to be in deficit by approximately US$200 million under the s75 'buy out' basis prescribed by U.K. law, will allow the company and the trustees to avoid costly and protracted litigation in multiple and potentially competing jurisdictions. The agreement also creates an additional reserve of US$69 million for certain potential pension scheme liabilities in respect of age-related equalization changes. In connection with this important agreement, Sea Containers withdrew its appeal against the Financial Support Direction. The FSD, which sought to oblige Sea Containers Limited -- the ultimate parent company -- to put in place additional financial support for the pension funds, was handed down by the Determinations Panel of the UK Pensions Regulator on July 3, 2007. Sea Containers considers that the settlement will adequately address any FSD and that the current legal proceedings would be of no further benefit. Terms of the Settlement As a result of extensive negotiations that commenced prior to the bankruptcy filing and have continued throughout these Chapter 11 cases, the Debtors, their Official Committee of Unsecured Creditors, and the Trustees agreed to the Settlement under which the Schemes' claims against the Debtors are fully resolved. Pertinent terms of the Settlement are as follows: a) Schemes' Claim: In full and final satisfaction of all of the Schemes' claims against SCL, SCSL and other direct and indirect subsidiaries of SCL or SCSL, the Schemes shall have a single allowed general unsecured claim against SCL in the aggregate amount of US$194 million of which: i) US$153.8 million will be allocated to the 1983 Scheme; and ii) US$40.2 million will be allocated to the 1990 Scheme. b) Administrative Expenses: Within three business days after entry of an order approving the Settlement, the Debtors shall pay US$5 million to the Schemes on account of certain administrative ordinary course expenses. c) Chapter 11 Advisory Fees: If the Debtors agree to pay, or the Court approves payment of, Chapter 11 advisory fees to any of the Debtors' prepetition creditors as administrative expenses, the Schemes may seek reimbursement of their Chapter 11 advisory fees in accordance with the terms of the Settlement. d) Equalization Claim Reserve: On the effective date of a confirmed Chapter 11 plan in these cases, the Debtors shall establish a reserve in respect of a US$69 million claim for equalization matters. The Trustees shall allocate such reserve between the Schemes. Upon determination of the allowed amount of the equalization claims, such amount, if any, shall be allowed against SCL as a general unsecured claim and shall be paid from the reserve. e) Status Quo: The Schemes shall agree for a period of time and under certain circumstance to refrain from selling or assigning or otherwise transferring any legal or beneficial interest in their claims and from winding up the Schemes. f) Definitive Documentation: The Settlement is subject to: i) definitive documentation in form and substance acceptable to all parties (executed and delivered by the parties); ii) approval under Federal Bankruptcy Rules P. 9019; and iii) if required by the Schemes, U.K. court and regulatory approval to ensure the Schemes' continued eligibility for protection by the U.K. Pension Protection Fund. The Debtors and the Trustees also agree that in response to any FSD issued by the U.K. Pensions Regulator, the Debtors will propose, and the Trustees will support, financial support arrangements consistent with the terms of the Settlement. The Debtors and the Trustees further agree that the Settlement is conditioned, in part, upon TPR's approval of those financial support arrangements. The parties have also agreed that the definitive documentation for the Settlement will be in a form that will not result in creditors of SCSL and other subsidiaries receiving unwarranted changes in recoveries as a result of the Schemes' allowed claims at the SCL level. 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. The Debtors are seeking an extension of this deadline to April 15, 2008. =========== B R A Z I L =========== AAR CORP: Expanding Manufacturing Operations in California ---------------------------------------------------------- AAR Corp. is significantly expanding its Composites manufacturing operations with the lease of a 90,000 square-foot facility located at the McClellan Business Park, formerly McClellan Air Force Base, in Sacramento, California. AAR will occupy the portion of the McClellan facility formerly used by the U.S. Air Force for manufacturing composite replacement aircraft parts. The expansion provides more than four times the company's current composites manufacturing capability through additional equipment and added capacity at the facility. "Increasingly, the aircraft community is using a higher percentage of composite content in the manufacturing process as it seeks to take advantage of the material's improved strength and lighter weight," said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. "We're expanding our composites manufacturing capacity to capitalize on this trend and keep pace with our customers' changing requirements." 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 CRUZEIRO: Earns BRL16 Million from Telebras Share Sale ------------------------------------------------------------ Banco Cruzeiro do Sul has sold its 26 billion preferred shares in the capital stock of Telecomunicacoees do Brasil S.A. aka Telebras, generating a pre-tax profit of BRL16.0 million. The sold shares constitute almost 12.4% of Telebras preferred shares, Business News Americas reports, citing Banco Cruzeiro. Banco Cruzeiro do Sul still have a participation of 8.37% or 29 billion in common shares in Telebras. Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul (Bovespa - CZRS4) -- http://www.bcsul.com.br/-- 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. BANCO DO BRASIL: To Combine Besc by Second Quarter -------------------------------------------------- Banco do Brasil will be combining former Santa Catarina state bank Besc by 2008 second quarter, Business News Americas reports, citing Banco do Estado de Santa Catarina president Eurides Mescolotto. The local press disclosed that Brazilian President Luiz Ignacio Lula da Silva has withdrawn Besc from the national privatization plan, Programa Nacional de Desestatizacao. The report relates that in preparation for privatization along with other banks, Besc was federalized in 1999. Following President Lula's decree signing, Besc was given 30 days for an auditor employment, which in turn will have 45 days to determine how much the bank is worth. Banco do Brasil claimed in November that it would pay BRL250 million over 12 months for Besc. As part of the deal, the federal government would pay the state of Santa Catarina BRL270 million, BNamericas relates. The report adds that Banco do Brasil would likely acquire federal district state bank Banco de Brasilia after combining Besc and Banco do Estado do Piaua SA - BEP. Banco do Brasil will release its 2007 financial results by Feb. 28. Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * On Nov. 6, 2007, Moody's assigned a Ba2 foreign currency deposit rating to Banco do Brasil. On Aug. 23, 2007, Moody's assigned a Ba2 long-term bank deposit rating on the bank with a stable outlook. In May 2007, Standard & Poor's Ratings Services raised its long- term foreign currency counterparty credit rating on Brazilian government-related entity Banco do Brasil to 'BB+' from 'BB', after Brazil's foreign currency sovereign credit rating was upgraded to BB+. BNP PARIBAS: Moody's Cuts Credit-Linked Notes' Rating to Ba2 ------------------------------------------------------------ Moody's Investors Service has taken rating action regarding certain credit linked notes issued by BNP and Banque Paribas. Moody's has upgraded this series of notes issued by Banque Paribas: -- Series 430 to Ba2 from B2, credit linked to Brazil. Moody's has upgraded this series of notes issued by BNP Paribas: -- Series 458 to Ba2 from B3, credit linked to Brazil. Moody's said the ratings are being updated to reflect the credit risk of the reference entities to which the notes are linked. The ratings also incorporate the credit risk of the issuer. A credit linked note is a form of funded credit derivative that is structured as a security with an embedded credit default swap allowing the issuer to transfer a specific credit risk to credit investors. It is issued by a special purpose company or trust, designed to offer investors par value at maturity unless a referenced credit defaults. Headquartered in Paris, France, BNP Paribas �- http://www.bnpparibas.com/-- is one of the main banks in Europe and France created through the merger of Banque Nationale de Paris and Paribas. Banco BNP Paribas Brasil SA is a subsidiary of BNP Paribas in Sao Paulo, Brazil. BRASKEM SA: Board OKs New Buyback Program for 19,862,411 Shares --------------------------------------------------------------- Braskem's Board of Directors has approved a new share buyback program. The beginning of this program is subject to the approval of the cancellation of shares currently held in treasury, in the amount of BRL244 million, in the Extraordinary Shareholders' Meeting to be held on March 6. The program will be effective for 12 months, with investment of BRL252 million at present value for its full implementation, and consists of the buyback of up to 19,862,411 preferred class A shares, which represent approximately 10% of class A outstanding shares. According to Braskem Chief Executive Officer, Jose Carlos Grubisich, "This is one more action of Braskem aimed at creating value to the company and its shareholders. We believe that the consolidation process of the petrochemical industry with the acquisition of Ipiranga, which brought new size and competitiveness to Braskem, and the excellent performance achieved by the company, have not been reflected in the appreciation of our shares." Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Braskem S.A. Fitch also affirmed the 'BB+' ratings on the company's senior unsecured notes 2008, 2014, and senior unsecured notes 2017. BRASKEM SA: Launches First Polypropylene Resin in LatAm Market -------------------------------------------------------------- Braskem SA has launched the country's first ultra-clarified polypropylene resin, called Prisma 3410, on the Brazilian and Latin American markets. The resin opens a new frontier for applying polypropylene in parts that require great transparency. Braskem polypropylene business director, Rui Chammas explained, "With this development, Braskem reaffirms its commitment to innovation as a means to create value for its clients and the sector�s entire productive chain." The new resin is geared towards the cosmetic, portable electronic, household appliance, office material, package and lid segments. The company estimates the potential market for this resin at approximately 10,000 tons. "For 2008, the objective is to reach a sales volume of more than 1,200 tons," Mr. Chammas added, underscoring that polypropylene is one of the fastest growing resins in the world. "In 2007, PP grew more than 10%, which proves its versatility and potential to replace other materials." With the development of Prisma 3410, Braskem expands the Prisma family portfolio of premium resins that have a differentiated performance in applications involving parts with great transparency and mechanical resistance. According to Technology and Innovation Director, Luis Fernando Cassinelli, ultra- clarified PP�s main differential is that it sets a new performance level in transparency and mechanical resistance for the final part. Its high transparency, 50% greater than conventional polypropylene, and its strong rigidity make the product especially indicated for manufacturing transparent parts with thick walls. "Its differentiated technical performance and its cost competitiveness also make it feasible for replacing styrene-based engineering plastics as well as other alternatives, such as crystal polystyrene, polycarbonate, acrylic and glass," added Mr. Casinelli. "We are at the worldwide forefront in using this technology. Our commitment to technological innovation allows us to anticipate our clients' needs and influence market trends," Mr. Chammas concluded. The resin was developed in record time at the Braskem Technology and Innovation Center in Triunfo/RS, the most complete and best equipped of its kind in Latin America. The center has a highly specialized team comprised of PhDs, researchers and skilled technicians, as well as cutting edge equipment and pilot plants. About Braskem Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Braskem S.A. Fitch also affirmed the 'BB+' ratings on the company's senior unsecured notes 2008, 2014, and senior unsecured notes 2017. COMPANHIA SIDERURGICA: Companhia Vale to Resume Pellets Supply -------------------------------------------------------------- Published reports say that Companhia Siderurgica Nacional will again receive pellets from Brazilian mining and metals group Companhia Vale do Rio Doce, as ordered by a court in Rio de Janeiro. Companhia Vale said that it stopped supplying pellets to Companhia Siderurgica this month due to strong market conditions early this year that left the miner with no surplus. Business News Americas relates that Companhia Siderurgica and Companhia Vale failed to formalize a long-term contract for pellet supply in 2005. Companhia Vale said that it had been supplying surplus pellet to Companhia Siderurgica since 2006, without any long-term agreement that establishes a steady supply. There isn't a formal contractual obligation that assures regular pellet sales to Companhia Siderurgica, the report adds. Companhia Vale must now provide 56,000 tons of the steel-making input each month to Companhia Siderurgica, reports say. About Companhia Vale Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio Doce -- http://www.cvrd.com.br/-- engages primarily in mining and logistics businesses. It engages in iron ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. About Companhia Siderurgica 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 Brazil, 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. GERDAU SA: Investing US$120M in Minas Gerais Iron Ore Operations ---------------------------------------------------------------- Gerdau SA said that it will pump US$120 million into its iron ore operations in Minas Gerais in the 2008-10 period. Business News Americas relates that disbursements in the next three years will include a treatment plant and logistics infrastructure to transport output. According to Gerdau, studies point out to the existence of an iron ore reserve of 1.8 billion tons in Minas Gerais. Gerdau Chief Executive Officer Andre Gerdau Johannpeter commented to the press, "Our interest is to use the iron ore to enhance our competitiveness. Our goal is to have our own source of iron ore at a more affordable cost than if bought on the market." Mr. Johannpeter told BNamericas that Gerdau has won't ship input abroad, but the company could eventually consider doing so in the future. "The focus now is to supply the iron ore to our mills," Mr. Johannpeter commented to BNamericas. 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 SA: Gets Hydroelectric Complex Concession ------------------------------------------------ Brazil's National Electrical Power Agency aka ANEEL has transferred the concession to produce electricity at the hydroelectric complex of Sao Joao - Cachoeirinha, to Gerdau SA. The complex is composed of two hydroelectric plants to be built in the river Chopim, in the municipalities of Honorio Serpa and Clevelandia, Parana. The project will have an installed capacity of 105 megawatts. Construction should be completed by the beginning of 2011. The estimated investment is US$173 million. 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. RHODIA SA: Appoints Pascal Juery as President for Novecare ---------------------------------------------------------- Rhodia S.A. appointed Pascal Juery as president of the company's Novecare Enterprise. Before his appointment Mr. Juery was the group purchasing vice president. Jose Matias succeeded this function. Mr. Juery and Mr. Matias are members of Rhodia's executive committee. Rhodia Novecare serves selected consumer care and industrial market segments and holds leading positions in the surfactants, phosphorus derivatives, natural polymers, synthetic polymers and monomers technologies, and sovents. Growth is driven by innovation, customer intimacy and global reach. Rhodia Novecare�s areas of expertise are protection, surface modification, active delivery and improvement of formulations and processes. the enterprise has global sales of EUR945 million. About Rhodia Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA) -- http://www.rhodia.com/-- is a global specialty chemicals company partnering with major players in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets. Rhodia offers tailor- made solutions combining original molecules and technologies to respond to customers' needs. The group generated sales of EUR4.8 billion in 2006 and employs around 16,000 people worldwide. Rhodia is listed on Euronext Paris and the New York Stock Exchange. The company has operations in Brazil. * * * As of Feb. 19, 2008, Rhodia S.A. carries Moody's long-term corporate family rating of Ba3 and senior unsecured debt rating of B1 with positive outlook. The company also carries Standard & Poor's BB- long-term foreign and local issuer credit ratings, and B short-term foreign and local issuer credit ratings. The ratings outlook is stable. Fitch Ratings assigned long-term issuer default rating at BB- and senior unsecured debt rating at BB- with outlook positive. SUN MICROSYSTEMS: Partners With TSMC for UltraSPARC Processors -------------------------------------------------------------- Sun Microsystems Inc. has selected Taiwan Semiconductor Manufacturing Company as its foundry partner for processors based on 45-nanometer geometry as well as future generations. Sun partner Texas Instruments will continue to test and package the 45-nanometer processors. "TSMC gives us leading process technology coupled with the economics scale of high volume and lower cost," said Dr. David Yen, Sun's executive vice president, Microelectronics. "TSMC is already fully engaged with engineers from both Sun and TI as we make this transition as seamless and as fast as possible," said Sridhar Vajapey, VP, Technology, Validation and Test, who heads the Sun team that selected TSMC. "TSMC, working with Sun Microelectronics as their foundry partner together with Texas Instruments, on this industry- leading technology is a tremendous synergy of strengths," said Jack Sun, vice president of R&D at TSMC. "This collaboration brings together all the ingredients to successfully design, test and manufacture some of the most complex chips in the world on TSMC's CPU-grade manufacturing process." "TI has had the pleasure of being a strategic partner with Sun for almost two decades and we look forward to working with TSMC to provide turnkey backend support for Sun's SPARC product roadmap," Hunter Ward, TI VP & General Mgr - Sun Business Unit. Driving OpenSPARC(TM) Adoption As part of the announcement, both Sun and TSMC will collaborate to expand Sun's OpenSPARC program. In the first phase of the program the two companies will work together to expand the university outreach program in Taiwan. In addition to its existing university outreach program, TSMC has a large fabless customer base and a substantial number of large IP partners that will help expand OpenSPARC platform adoption. Through the OpenSPARC program, Sun has established six major universities as OpenSPARC Technology Centers of Excellence: the University of California, Santa Cruz; University of Texas, Austin; University of Michigan, Ann Arbor; University of Illinois, Urbana-Champaign; Stanford University; and Carnegie Mellon University. Each Center of Excellence has a minimum two- year commitment, during which time they'll execute chip design research and course work based on Sun's chip multi- threading(CMT) design. Sun Microelectronics The Sun Microelectronics group oversees development in networking, cryptography, and high-performance computing, and servers as a supplier to OEM customers around the globe. In August 2007, Sun introduced the UltraSPARC T2 processor, the world's fastest commodity processor. The UltraSPARC T2 set new, single-chip performance world records in two industry standard benchmarks: SPECint_rate2006 (78.5) and SPECfp_rate2006 (62.3). The UltraSPARC T2 processor, which is powered by less than 95 watts (nominal) with less than two watts per thread, boasts the most functionality, and lowest wattage per core and thread of any processor in its class. About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, Singapore, among others. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. ZIM CORP: Earns $155,758 in Third Quarter Ended Dec. 31, 2007 ------------------------------------------------------------- ZIM Corporation reported net income of US$155,758 for the third quarter ended Dec. 31, 2007, compared to a US$507,117 net loss for the quarter ended Dec. 31, 2006. Revenue for the quarter ended Dec. 31, 2007, was US$698,562, an increase from US$517,969 for the quarter ended Dec. 31, 2006. A one-time recognition of revenue in the premium SMS segment of US$197,948 is included in revenue and resulted from a review of outstanding payables and receivables and subsequent settlement of outstanding amounts. This was partially offset by the previously disclosed decline in revenue from the company's SMS aggregation services caused by the continuing saturation of the aggregation market which the company expects to continue. "Results from this quarter reflect our efforts to improve operations and focus on our higher margin product segments," Dr. Michael Cowpland, president and chief executive officer of ZIM, said. "We've made good progress in reducing our operating expenses and continue to look for additional savings as we pursue opportunities related to our Internet TV, Mobile, and Database products and services." ZIM had cash of US$273,507 as at Dec. 31, 2007, as compared to US$441,637 on Dec. 31, 2006, and US$209,741 at Sept. 30, 2007. As at Dec. 31, 2007, ZIM had no amounts due to financial institutions. Going Concern Doubt As reported in the Troubled Company Reporter on Nov. 19, 2007, Raymond Chabot Grant Thornton LLP, in Ottawa, Canada, expressed substantial doubt about ZIM Corporation's ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended March 31, 2007, and 2006. The auditing firm pointed to the company's net loss of US$1,936,187 for the year ended March 31, 2007, and the company's negative cash flows from operations during each of the previous five years. About ZIM Corp. Ottawa, Canada-based ZIM Corporation (OTC BB: ZIMCF) -- http://www.zim.biz/-- is a mobile content, Enterprise Database Software and Internet TV service provider. Through its global infrastructure, ZIM provides publishing and licensing services for market-leading mobile content and for Internet TV broadcasting. The company has offices in Brazil and London. ========================== C A Y M A N I S L A N D S ========================== BANK OF CHINA: Gets Nod for CNY10-Billion Stock Fund ---------------------------------------------------- China Securities Regulatory Commission has approved Bank of China Investment Management Co. Ltd.'s new open-ended stock fund valued at around CNY10 billion, Thomson Financial News reports. Bank of China Investment Management is the fund-management unit of the Bank of China Ltd. The move is aimed at "increasing capital flows into the local bourse and giving a boost to the stock market," the report says. The fund was one of two with a total value of CNY19.5 billion that had been approved by the country's securities regulator, Bank of China Chairman Xiao Gang said. Beijing-based Bank of China Limited -- http://www.bank-of- china.com/en/static/index.html -- is a Chinese bank that has presence in all major continents. The company offers financial services through itsglobal network of over 560 overseas offices in 25 countries and regions. In Hong Kong and Macao, Bank of China is one of the local note issuing banks. Traditional commercial banking constitutes the majority of Bank of China's business, which is composed of corporate banking, retail banking and banking with financial institutions. The company has branches in Singapore, Japan, Kazakhstan, London, Grand Cayman, and the United States. Moody's Investors Service gave the bank a bank financial strength rating of D- on May 4, 2007. The Troubled Company Reporter-Asia Pacific reported that Fitch Ratings affirmed the bank's D individual rating on Dec. 14, 2006. CHENGWEI AAC: Proofs of Claim Filing Deadline Is March 5 -------------------------------------------------------- Chengwei AAC's creditors have until March 5, 2008, to prove their claims to Aline Moulia, 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. Chengwei AAC's shareholders agreed on Nov. 27, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Aline Moulia Corporate Filing Services Ltd. P.O. Box 613, Grand Cayman KY1-1107 Cayman Islands Telephone: 415-609-4845 Fax: 415-358-4045 DRAGONOX HOLDINGS: Proofs of Claim Filing Is Until March 5 ---------------------------------------------------------- Dragonox Holdings Limited's creditors have until March 5, 2008, to prove their claims to Lion International Corporate Services 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. Dragonox Holdings' shareholder decided on Jan. 9, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Lion International Corporate Services Limited Attn: Mark Edmunds P.O. Box 484, Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 949 7755 Fax: (345) 949-7634 FREESPIRIT CAPITAL: Sets Final Shareholders' Meeting for March 5 ---------------------------------------------------------------- The Freespirit Capital Management - Asia (Non-US Feeder) Fund will hold its final shareholders' meeting on March 5, 2008, at 2:30 p.m., at 3 Pickering Street, #02-18 Nankin Row, Singapore 048660 Singapore. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. The Freespirit Capital Fund's shareholders agreed on Jan. 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Eric Sandlund 3 Pickering Street #02-18 Nankin Row Singapore 048660, Singapore LEAVITT INSURANCE: Proofs of Claim Filing Deadline Is March 5 ------------------------------------------------------------- Leavitt Insurance Company's creditors have until March 5, 2008, to prove their claims to Michael Leavitt and Justin Kuperberg, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Leavitt Insurance's shareholders agreed on Jan. 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Michael Leavitt and Justin Kuperberg c/o Leavitt Management Group 2600 Lake Lucien Drive Maitland, Florida 32751 USA UBS PACTUAL: Sets Final Shareholders' Meeting for March 5 --------------------------------------------------------- UBS Pactual High Income Fund, Ltd., will hold its final shareholders' meeting on March 5, 2008, at 10:00 a.m., at Ogier, Attorneys, Queensgate House, South Church Street, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorize the liquidator of the company 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. UBS Pactual's shareholder decided on Feb. 4, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Ogier, Attorneys Attn: Susan Taylor Queensgate House, South Church Street Grand Cayman, Cayman Islands Telephone: (345) 949 9876 Fax: (345) 949 1986 =============== C O L O M B I A =============== GMAC LLC: Closing Down 75% of North American Auto Credit Offices ---------------------------------------------------------------- Following the warning of Cerberus Capital Management LP founder Stephen Feinberg regarding GMAC LLC's "substantial difficulty," the auto credit company intends to cut 75% of its North American regional auto-lending offices, Greg Bensinger of Bloomberg News reports. A letter from Barbara Stokel, executive vice president of North American operations, to car dealers, states that GMAC will close most of its 16 offices in the United States, except those in Dallas, Texas; Pittsburgh, Pennsylvania; Atlanta, Georgia; and Chicago, Illinois. GMAC will keep its Toronto office in Canada, and close three others. As reported in the Troubled Company reporter in Feb. 18, 2008, Mr. Feinberg wrote in a Jan. 22 letter to investors, that while Cerberus has "detailed contingency plans in a continuing worsening environment . . . if the credit markets continue to decline and we find ourselves in a prolonged environment of capital market shutdown, GMAC could run into substantial difficulty." For the full-year 2007, GMAC reported a net loss of US$2.3 billion, compared to net income of $2.1 billion for the full- year 2006. Profitable results in the automotive and insurance businesses were more than offset by a $4.3 billion loss at its Residential Capital mortgage unit. About GMAC GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors Acceptance Corporation, is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and other commercial businesses. GMAC was established in 1919 and employs approximately 26,700 people worldwide. Cerberus Capital Management LP bought 51% GMAC LLC stake from General Motors Corp. on December 2006. Its Latin American operations are located in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 8, 2008, Moody's Investors Service downgraded the senior unsecured rating of GMAC LLC to B1 from Ba3. Separately, the senior unsecured rating of Residential Capital LLC was downgraded to B2 from Ba3. The rating outlook for both firms is negative. The GMAC rating action is a result of Moody's downgrade of ResCap's ratings. ================== C O S T A R I C A ================== ALCATEL-LUCENT: Forms LatAm & Caribbean Operational Structure ------------------------------------------------------------- Alcatel-Lucent SA official Lourinaldo Silva told Business News Americas that the company has formed a new operational structure for its Latin American & Caribbean operations. BNamericas relates that Mr. Silva will head the new division. He was a director of Alcatel-Lucent's enterprise segment in Brazil. Mr. Silva told BNamericas that with the creation of the new division, the region gains autonomy because offices in Europe will no longer administer Alcatel-Lucent's operations. Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported on Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short-term debt of Alcatel-Lucent. Moody's said the outlook for the ratings is stable. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. &nb