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 Friday, February 22, 2008, Vol. 9, No. 38 Headlines A R G E N T I N A ALITALIA SPA: Milan Airport Workers Strike vs. Downscale Plan CIPREM SRL: Trustee Verifying Proofs of Claim Until March 17 CONT COR: Trustee Verifying Proofs of Claim Until March 17 ENREFA SAIC: Court Concludes Reorganization FERVE SRL: Court Concludes Reorganization GAS AR: Court Concludes Reorganization HUE GAS: Court Concludes Reorganization MIE MARCELO: Trustee to File Individual Reports on April 2 MIE ROLANDO: Trustee to File Individual Reports on April 2 MOLINOS CERRIBAL: Trustee Verifying Claims Until April 3 SUMA GAS: Court Concludes Reorganization TELECOM ARGENTINA: Appeals Court Ruling on Expert Hiring B A R B A D O S CABLE & WIRELESS: Commits to Develop Broadband in Barbados B R A Z I L AAR CORP: Receives US$28 Mil. Order for Container Platforms AES CORP: Brazilian Unit to Develop Rio Grande Transmission Line BANCO NACIONAL: To Create Restructuring Plan for Infraero BANCO SOFISA: Net Income Increases 121.3% to BRL99.7MM in 2007 BRASKEM SA: 2007 Pre-Minority Interest Net Income Up to BRL957MM CAMARGO CORREA: To Form Joint Venture With Petrobras & Mitsui DELPHI CORP: Hearing to Consider Bearings Biz Sale Set Today DELPHI CORP: Wants to Strike Non-Conforming Cure Objections DELPHI CORP: Cuts Rodney O'Neal's Emergence Incentive to US$1MM GERDAU SA: Quanex to Vote on Merger With Firm GLOBAL CROSSING: Signs Interconnection Deal With Michael Page IWT TESORO: Judge Glenn Sets March 17 as Claims Bar Date SITEL WORLDWIDE: S&P Cuts Credit Rating to B; Outlook Negative UAL CORPORATION: Various Entities Disclose Stake Ownership C A Y M A N I S L A N D S BASSO PRIVATE: Will Hold Final Shareholders' Meeting on March 6 CATHEDRAL LIMITED: Proofs of Claim Filing Deadline Is March 6 CAYMAN SPECIALTY: Proofs of Claim Filing Is Until March 6 DRAGONOX HOLDINGS: Sets Final Shareholders' Meeting for March 5 FREESPIRIT CAPITAL: Final Shareholders' Meeting Is on March 5 C H I L E TECH DATA: Partners With Zenith to Provide Managed Services C O L O M B I A BANCOLOMBIA SA: Fined COP1,600,000 Due to Late Report BANCO DE BOGOTA: Issuing COP300 Billion in Bonds in 2008 E C U A D O R FREEPORT-MCMORAN: Moody's Lifts Ratings on Strong Earnings PETROECUADOR: Prosecutor Urges Annulment of Petrobras' Contracts J A M A I C A CABLE & WIRELESS: Unit to Increase Line Rental Fees by 40% NATIONAL COMMERCIAL: Christopher Denny Quits as Regional Manager WEST CORP: Ratings Unaffected by Genesys Acquisition, S&P Says M E X I C O DURA AUTOMOTIVE: Backstop Rights Deal With Pacificor Expires DURA AUTOMOTIVE: Wants Court to Approve Amended 2008 KMIP M-REAL CORP: Closing Lielahati and Kangas Mills SANMINA-SCI: Signs Definitive Pact to Sell Assets to Foxteq URS CORPORATION: Bags Construction Management Contract from SCA P A N A M A CHIQUITA BRANDS: Posts US$26 Mil. Net Loss in Qtr. Ended Dec. 31 CHIQUITA BRANDS: S&P Rates Unit's US$400MM Credit Facility at B+ CHIQUITA BRANDS: Morgan Joseph Keeps Buy Rating on Firm's Shares P E R U QUEBECOR WORLD: Quebec Ct. Extends CCAA Protection Until May 12 QUEBECOR WORLD: Joint Administrators Close British Printing Firm QUEBECOR WORLD: Franklin Resources Holds 1.1K Sub. Voting Shares QUEBECOR WORLD: New Pact With Clients to Yield $75 Mil. Annually V E N E Z U E L A CITGO PETROLEUM: Won't Be Able to Sell Gas in Bolingbrook PETROLEOS DE VENEZUELA: To Operate Dacion Field With ENI PETROLEOS DE VENEZUELA: Moody's Says Order Won't Affect Rating PETROLEOS DE VENEZUELA: Needs Exxon Sign to Sell Chalmette Stake PETROLEOS DE VENEZUELA: Asks Exxon to Stop Asset Freeze Scheme X X X X X X * Moody's Sees Continued Growth in 2007 LatAm Securitizations * S&P Says LatAm Countries Stand Firm Despite US Crunch's Impact - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Milan Airport Workers Strike vs. Downscale Plan ------------------------------------------------------------- Employees at Milan's Linate and Malpensa airports staged Tuesday, Feb. 19, 2008, a four-hour strike against Alitalia S.p.A.'s plans to downscale operations, Marco Bertacche writes for Bloomberg News. The employees, members of the CGIL, CISL and UIL labor unions, walked out 10:00 a.m. to 2:00 p.m., which forced Alitalia to cancel 123 flights, including trips to 14 intercontinental destinations, Bloomberg News relates. As reported in the TCR-Europe on Feb. 6, 2008, SEA S.p.A. has filed a EUR1.5 billion damages suit against Alitalia over the carrier's decision to downscale its operations at Malpensa. "We have decided to act legally against Alitalia to obtain damages for the very serious damage deriving from the behaviour of the airline," SEA chairman Giuseppe Bonomi said. Mr. Bononi said Alitalia violated a hub partnership agreement and contracts with SEA and its SEA Handling unit. Mr. Bononi noted that SEA designed and developed Malpensa as Alitalia required in terms of infrastructures, facilities and organization. However, Mr. Bononi added, the investments are rendered useless by Alitalia's downscale plan. According to Mr. Bononi, Alitalia's downscale plan will cut traffic at Malpensa by 6 million passengers and will reduce the airport's results by EUR70 million. The SEA chairman said the airport operator is finding ways to contain its losses in 2008 and 2009. 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. CIPREM SRL: Trustee Verifying Proofs of Claim Until March 17 ------------------------------------------------------------ Carlos Guido Martino, Luis Pedro Pereyra y Adriana del Carmen Gallo -- the court-appointed trustee for C.I.P.R.E.M. S.R.L.'s reorganization proceeding -- will be verifying creditors' proofs of claim until March 17, 2008. Carlos Guido will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Cordoba 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 C.I.P.R.E.M. 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 C.I.P.R.E.M.'s accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. The debtor can be reached at: C.I.P.R.E.M. S.R.L. Baigorri 749, Alta Cordoba Ciudad de Cordoba, Cordoba Argentina The trustee can be reached at: Carlos Guido Martino, Luis Pedro Pereyra y Adriana del Carmen Gallo Coronel Olmedo 51, Ciudad de Cordoba Cordoba, Argentina CONT COR: Trustee Verifying Proofs of Claim Until March 17 ---------------------------------------------------------- Alicia Ema Bisio, the court-appointed trustee for Cont Cor S.R.L.'s reorganization proceeding, will be verifying creditors' proofs of claim until March 17, 2008. Ms. Bisio will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Quilmes, 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 Cont Cor 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 Cont Cor's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. The trustee can be reached at: Alicia Ema Bisio Belgrano 63, Bernal Buenos Aires, Argentina ENREFA SAIC: Court Concludes Reorganization ------------------------------------------- Enrefa S.A.I.C. 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. FERVE SRL: Court Concludes Reorganization ----------------------------------------- Ferve 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. GAS AR: Court Concludes Reorganization -------------------------------------- Gas Ar Co 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. HUE GAS: Court Concludes Reorganization --------------------------------------- Hue Gas 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 MARCELO: Trustee to File Individual Reports on April 2 ---------------------------------------------------------- Wilfredo Borsani, the court-appointed trustee for Mie Marcelo Ruben's bankruptcy proceeding, will present the validated claims as individual reports in 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 Marcelo's accounting and banking records on May 15, 2008. Mr. Borsani is also in charge of administering Mie Marcelo'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 Marcelo Ruben Agrelo 1189, Rosario Santa Fe, Argentina MIE ROLANDO: Trustee to File Individual Reports on April 2 ---------------------------------------------------------- Wilfredo Borsani, the court-appointed trustee for Mie Rolando Rafael's bankruptcy proceeding, will present the validated claims as individual reports in 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 Rolando's accounting and banking records on May 15, 2008. Mr. Borsani is also in charge of administering Mie Rolando'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 Rolando Rafael Luis Vila 245, Rosario Santa Fe, Argentina MOLINOS CERRIBAL: Trustee Verifying Claims Until April 3 -------------------------------------------------------- Hugo Javier Mancusi, the court-appointed trustee for Molinos Cerribal S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until April 3, 2008. Mr. Mancusi will present the validated claims in court as individual reports on May 20, 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 Molinos Cerribal 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 Molinos Cerribal's accounting and banking records will be submitted in court on July 2, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Dec. 9, 2008. The trustee can be reached at: Hugo Javier Mancusi Avenida Corrientes 3169 Buenos Aires, Argentina SUMA GAS: Court Concludes Reorganization ---------------------------------------- Suma Gas S.A.C.I. 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: Appeals Court Ruling on Expert Hiring -------------------------------------------------------- Telecom Argentina S.A. has appealed an Argentine Court order appointing an independent monitor to the company for two months to evaluate whether Telefonica's stake in Telecom Italia, Telecom Argentina's largest shareholder, creates a conflict of interest, various reports say. Dow Jones Newswires relates that the court order was issued upon the request of Grupo Werthein, the second largest Telecom Argentina shareholder. According to the report, a threat to competition and a conflict of interest in Argentina's telecom sector following Telefonica's purchase of a minority stake in TI last year has raised concerns. The report adds it also provoked speculation that the anti-trust regulator Comision Nacional de Defensa de la Competencia (CDNC) might take measures. Business News Americas states that the appointed expert would present a report assessing the Telefonica influence in Telecom Argentina. Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- provides telephone-related services, such as international long-distance service and data transmission and Internet services, and through its subsidiaries, wireless telecommunications services, international wholesale services and telephone directory publishing. As of December 31, 2006, its telephone system included approximately 4.09 million lines in service. As of 2007, current approximate ownership of Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a consortium made up of: -- Werthein Group (48%) -- Telecom Italia -- France Telecom group (2%); * 41.5% publicly traded; and * 4.21% employee stock ownership program France Telecom sold its part of Telecom Argentina to the WertheinGroup, an Argentine agricultural concern owned in part by vice chairman Gerardo Werthein. As of 2007, current approximate ownership of Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a consortium made up of: -- Werthein Group (48%) -- Telecom Italia group (50%) -- France Telecom group (2%); * 41.5% publicly traded; and * 4.21% employee stock ownership program. * * * On November 2006, Fitch Ratings assigned B long-term issuer default rating on Telecom Argentina SA. Fitch said the outlook is positive. =============== B A R B A D O S =============== CABLE & WIRELESS: Commits to Develop Broadband in Barbados ---------------------------------------------------------- Cable & Wireless head Donald Austin told The Nation News that the company is committed to working with the government for the continued development of broadband in Barbados. Mr. Austin commented to The Nation News, "Similarly, the company strives to continue to keep Barbadians in sync with the global community by offering its customers quick-time technologies offered by the more developed world." According to The Nation News, Cable & Wireless launched the Connect Barbados project in 2007. The project places free broadband access in communities. The Nation News relates that Mr. Austin was pleased that an overview of the telecommunications market, which was presented in the Cable & Wireless (Barbados) Limited's Report on Market and Economic Developments over the period of the Price Cap and the Impact on Price Cap in October 2007, indicated that while there was expansion in the broadband sector, prices have been dropping at a rapid rate. "While there continues to be significant regional growth in broadband, the public demands it at faster [Internet] speeds and nowhere is this more apparent than in Barbados," Mr. Austin told The Nation News. Cable & Wireless' technical team has been modernizing its networks over the last few months through the Multi-Service Access Nodes project, which will provide additional capacity for the availability of fixed line and broadband services to clients, The Nation News states, citing Mr. Austin. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. =========== B R A Z I L =========== AAR CORP: Receives US$28 Mil. Order for Container Platforms ----------------------------------------------------------- AAR Corp. has received an order to provide containerized roll- in/out platforms for the U.S. Army, valued at US$28 million. The specialized equipment, which is used primarily to transport ammunition, will be manufactured by AAR SUMMA Technology in Cullman, Alabama through June 2009. The order was placed as part of a five-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract that was established in 2005. "We are proud to contribute to the readiness and mobility of our defense customers with products that support the movement of troops and supplies into theaters of operation and sustain in- theater activity," said Timothy J. Romenesko, President and Chief Operating Officer of AAR CORP. "The recent addition of AAR SUMMA Technology has expanded our mobility product line, broadened our manufacturing capabilities and improved our ability to serve both commercial and defense customers." On December 3, 2007, AAR acquired SUMMA Technology, Inc., a provider of high-end sub-systems and precision machining, fabrication, welding and engineering services. The acquisition strengthens AAR's competitive position in the market for aerospace and defense products and services by extending AAR's manufacturing capabilities and increasing its product offerings. AAR SUMMA Technology currently provides complex machined parts and assemblies for the F-35, F-22, F-16, F-18, C-130, Gulfstream Aircraft, Expeditionary Fighting Vehicle (EFV) and various missile and space programs. 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 on November 2006. AES CORP: Brazilian Unit to Develop Rio Grande Transmission Line ---------------------------------------------------------------- The AES Corp.'s Brazilian unit, AES Sul Distribuidora Gaucha de Energia, will develop a 42-kilometer transmission line linking the Candelaria and Centro Serra substations in Rio Grande do Sul, Rio Grande do Sul state environmental authority Fepam said. Business News Americas relates that Fepam already granted a preliminary license to construct the transmission line. The 69 kilo-volt transmission line would improve power supply in Rio Grande do Sul's Centro Serra region, BNamericas says, citing Fepam. AES Sul distributes power to 1.1 million consuming units in 118 municipalities in Rio Grande do Sul, BNamericas states. About AES Sul Headquartered in Porto Alegre, Brazil, AES Sul Distribuidora Gaucha de Energia is a subsidiary of AES Corp., engaged in the generation, transmission and distribution of hydroelectric and thermal power. The company offers electric power to domestic and commercial customers. It primarily operates in Brazil. About AES Corp. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company has Latin America operations in Argentina, Brazil, Chile, Dominican Republic, El Salvador and Panama. * * * The AES Corporation still carries Moody's Investors Service's Corporate Family Rating and the senior unsecured rating assigned at B1. As of Feb. 6, 2008, the company still carries Fitch's 'BB/RR1' rating on US$500 million issue of senior unsecured notes due 2017. BANCO NACIONAL: To Create Restructuring Plan for Infraero --------------------------------------------------------- Brazilian newswire Agencia Estado reports that Banco Nacional de Desenvolvimento Economico e Social will create a restructuring plan for national airports authority Infraero. "Restructuring the company is a condition to opening up capital. However, regardless of being listed on the stock market, the restructuring will have to make Infraero a more efficient company," Brazil's defense minister Nelson Jobim commented to Agencia Estado. According to Agencia Estado, Banco Nacional will also list Infraero on the stock market with a 49% authorized stock limit. "Restructuring the company is a condition for listing it publicly. But independent of any listing, restructuring must be done to make the company more efficient," Minister Jobim told Dow Jones Newswires. Being listed on the stock market is the best option for the government to guarantee better administration, Business News Americas relates, citing Minister Jobim. According to the minister, privatization is not the way to improve airports. Minister Jobim told BNamericas that Banco Nacional's proposal must overcome the difficulties to list Infraero on the stock market and Banco Nacional must also find a way to cut the number of workers. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007. BANCO SOFISA: Net Income Increases 121.3% to BRL99.7MM in 2007 -------------------------------------------------------------- Banco Sofisa S.A. released its results for the fourth quarter of 2007. In 2007, the bank launched its new strategy of offering credit to individuals, through car loans, payroll-deductible loans, and consumer finance, reaching significant loan origination. Highlights: -- Syndicated loan of US$185 million coordinated by the IFC (a member of the World Bank Group) -- Opening of three branches in the states of Pernambuco, Ceara and Bahia and approval to open another two in the states of Para and Amazonas -- Loan portfolio of BRL2.6 billion, growth of 186.0% in relation to 2006 (+19.3% versus that of third quarter 2007) -- Origination of loans to individuals reaches BRL915 million in 2007 -- Net income of BRL99.7 million, an increase of 121.3% over 2006 -- Total Deposits of BRL2.5 billion (BRL1.2 billion in 2006) Established in 1961, Banco Sofisa SA -- http://www.sofisa.com.br/ir-- is headquartered in Sao Paulo, Brazil. The bank offers commercial and retail banking products primarily to small and medium-size companies. As of June 2007, the bank had total assets of approximately BRL3.44 billion (US$1.79 billion) and equity of BRL821.5 million (US$427 million). * * * As reported in the Troubled Company Reporter-Latin America on Oct. 8, 2007, Moody's Investors Service assigned to Banco Sofisa S.A., a bank financial strength rating of D+, long- and short- term local-currency deposit ratings of Ba1 Not Prime, and long- and short-term foreign currency deposit ratings of Ba2 Not Prime, respectively. Moody's outlook on all these ratings is stable. BRASKEM SA: 2007 Pre-Minority Interest Net Income Up to BRL957MM ---------------------------------------------------------------- BRASKEM SA released its results for the fourth quarter of 2007. Main highlights of the period: -- In fiscal year 2007, Braskem registered an all-time high for thermoplastic resin production of 2.8 million tons. This excellent performance was the result of the competitiveness programs implemented over the past three years aimed at increasing the capacity, efficiency and operational reliability of its plants. -- The company's 2007 consolidated gross revenue for 2007 was BRL23.9 billion, an 11% increase over net revenue of BRL21.6 billion in 2006. In dollar terms, gross revenue was US$12.3 billion, an increase of 24% over dollar- denominated gross revenue of US$9.9 billion in 2006. -- Consolidated EBITDA was BRL3.2 billion in 2007, up 5% on the EBITDA of BRL3 billion reported in 2006, driven by the company's better operating performance, which reflects the effectiveness of its operating and sales strategies, despite the challenging scenario with the hike of 20% in the naphtha price in dollar terms, over the same comparison period the Brazilian real appreciated by 17% against the U.S. dollar. -- Braskem net income before minority interests, represented by interests held by Petrobras in Ipiranga Quimica and Copesul, was BRL957 million in 2007, an increase of 70% from the BRL564 million posted in 2006. This net income growth reflects the improved operating and financial performance in the year. Net income after minority interests increased four times from 2006 figures and reached BRL568 million. 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. CAMARGO CORREA: To Form Joint Venture With Petrobras & Mitsui ------------------------------------------------------------- Camargo Correa SA will form a joint company with Brazilian state-run oil firm Petroleo Brasileiro SA and Japan's Mitsui & Co. Ltd., Business News Americas reports. According to BNamericas, the joint venture will construct an ethanol pipeline. BNamericas relates that Petroleo Brasileiro's board has authorized the creation of the new company. Petroleo Brasileiro said that the pipeline will link Senador Canedo in Goias state to the Paulania refinery in Sao Paulo. BNamericas notes that the pipeline's main stretch will connect Guararema in Sao Paulo to Paulania. The project includes a second stretch linking the Tiete-Parana waterway to Paulania. The pipeline will be part of the ethanol export corridor linking: -- Goias, -- Uberaba, -- Ribeirao Preto, and -- Guararema. The pipeline extends to the Sao Sebastiao terminal in Sao Paulo and the Ilha D'Agua terminal in Rio de Janeiro, BNamericas says. BNamericas states that the pipeline will transport 12 million cubic meter per year of ethanol. The pipeline will transport ethanol that will mainly be exported to countries like Japan, Dow Jones Newswires relates, citing Petroleo Brasileiro. Petroleo Basileiro told Dow Jones that it will open the pipeline to ethanol transportation by private firms. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp- - was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. About Mitsui & Co. MITSUI & CO., LTD. is a Japan-based trading company. The company is engaged in the sale, import, export and manufacture of various products in the fields of iron and steel product, raw iron and nonferrous metal, machine and project, chemical, energy, food and retail, as well as lifestyle, consumer service and information industry. It is also engaged in the provision of retail, information communication, technology, transportation and finance services, the development of energy and raw iron resources, in addition to the investment in new businesses, such as information technology, biotechnology and nanotechnology businesses. It operates in eight segments: Iron & Steel Products, Iron & Steel Raw Materials and Non-Ferrous Metals, Machinery & Infrastructure Projects, Chemical, Energy, Foods & Retail, Lifestyle, Consumer Service and Information, Electronics & Telecommunication, and Logistics & Financial Markets. About Camargo Correa Camargo Correa SA is one of the largest private industrial conglomerates in Brazil. The company is a holding company with interests in cement, engineering and construction, textiles, footwear and sportswear manufacturing. It also owns non- controlling equity interests in the energy, transportation (highway concessions) and steel businesses. During the last 12 months through June 2007, Camargo Correa had net sales of BRL9.2 billion and EBITDA of BRL1.4 billion. As reported in the Troubled Company Reported-Latin America on Nov. 27, 2007, Fitch Ratings affirmed the foreign currency and local currency Issuer Default Ratings of Camargo Correa S.A. at 'BB'. Fitch also affirmed the 'BB' rating on the US$250 million senior unsecured bonds due 2016 issued by CCSA Finance Limited (a special-purpose vehicle wholly-owned by Camargo and incorporated in the Cayman Islands), which is unconditionally guaranteed by Camargo Correa. In addition, Fitch has also upgraded Camargo's national debt rating to 'AA-(bra)' from 'A+(bra)'. Fitch said the rating outlook is stable. DELPHI CORP: Hearing to Consider Bearings Biz Sale Set Today ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York will consider approval of Delphi Corp. and its debtor- affiliates' Bearings Business Sale today, Feb. 21, 2008, at 10:00 a.m., prevailing Eastern time. Stalking horse bidder ND Acquisition Corp., a wholly owned subsidiary of private equity investment firm Resilience Capital Partners LLC, has proposed to buy the Debtors' Bearings Business for US$44,200,000. Lease Assumption Objections Certain parties had opposed the assumption of their executory contracts in connection with the sale of the Debtors' global wheel bearings business. Barnes Group Inc. and Freudenberg-NOK General Partnership objected to the zero cures for the assumption of their executory contracts. The parties related that they have not yet completed their review of the Assumed Contracts. Barnes also objected to the zero cures to the extent it is limited to prepetition amounts owed by the Debtors. Cure obligations are not limited to prepetition defaults, Barnes reminds the Court, citing Section 365(b) of the Bankruptcy Code. Barnes asserts that the Debtors should be required to cure, or provide adequate assurance of prompt cure, of any postpetition defaults under the Assumed Contracts. The Timken Company and Timken U.S. Corp. complained that the Debtors have not provided them with sufficient information to identify the Assumed Contracts. Timken believes that some of the contracts may be related to a long-term agreement that the Debtors have not identified for assumption or assignment. According to Freudenberg-NOK and Timken, the Debtors have not demonstrated that the proposed contract assignees are capable of performing under the Assumed Contracts. S&Z Metal Works Ltd. asserts that the Debtors should pay it at least US$163,451 for the assumption of its contracts. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 112; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. DELPHI CORP: Wants to Strike Non-Conforming Cure Objections ----------------------------------------------------------- Delphi Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to strike, pursuant to Section 105(a) of the Bankruptcy Code and Rule 9010 of the Federal Rules of Bankruptcy Procedure: (a) returned cure amount notices that do not conform with the Cure Claim Procedures; and (b) objections that were filed for which no cure amount notices were returned. The Debtors are party to thousands of executory contracts, many of which are with the Debtors' trade suppliers. In accordance with the confirmed First Amended Joint Plan of Reorganization and the Court-approved procedures relating to the assumption of executory contracts, the Debtors embarked on a process to assume ongoing prepetition Material Supply Agreements. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates that the Debtors served a total of 1,669 cure amount notices on contract counterparties stating their intent to assume, or assume and assign, the parties' contracts and to provide cure for the assumption of the contracts. The Notices gave each Counterparty, among other things, the right to elect to be paid the proposed cure amounts in cash or Plan currency, and described certain Court-approved procedures for the Counterparties to object to the assumption of their contracts or to the proposed cure amounts. The Cure Claim Procedures require the Counterparties to sign and return the original Cure Amount Notices served on them. In contravention of the specific instructions on the Cure Amount Notices, however, a number of parties-in-interest submitted nonconforming Cure Amount Notices to the Debtors. The Debtors received more than 100 nonconforming Cure Amount Notices. Certain purchasers of claims also executed and returned self- made forms designed to appear identical in form to the Court- approved notices served by the Debtors, Mr. Butler tells the Court. "In fact, certain of these self-made forms were returned by purchasers of claims even though no cure amounts were owed to the purported assignors." The Debtors, he points out, imprinted unique bar codes upon the original Cure Amount Notices to prevent the submission of self-made forms. The Debtors have also been inundated with requests to deviate from the Court-approved Cure Claim Procedures, Mr. Butler relates. He notes that in early January, the Ad Hoc Committee of Delphi Trade Claim Holders sought but failed to convince the Court to exempt them from certain provisions of the Cure Claim Procedures, including enabling their committee members to execute cure amount notices and directing the Debtors to make cure payments directly to their members instead of paying the underlying contract counterparties. Judge Drain held that the Trade Committee's request was contrary to the Cure Claim Procedures and interferes with the Debtors' relationships with their trade suppliers, which are important to the Debtors' ongoing businesses. Specifically, the Debtors wish to strike: * cure amount notices that include instructions to pay a party other than the counterparty; * cure amount notices that were executed by a third party (rather than the contract counterparty), which third party did not satisfy the requirements of Bankruptcy Rule 9010; * cure amount notices from parties who failed to return an executed original cure amount notice and instead returned a self-made form for which a related assumable contract exists or a copy of the cure amount notice; * cure amount notices from parties who failed to return an executed original cure amount notice for which no related assumable contract exists; * objections that were filed to cure by parties who failed to return the cure amount notice; and * cure amount notices that were returned after the 7:00 p.m. prevailing Eastern time deadline on Jan. 11, 2008. To the extent the Court grants the Debtors' request with respect to a specific party, the Debtors ask the Court to entitle the applicable counterparty to receive only the default cure election treatment or the Plan currency to be distributed to holders of allowed general unsecured claims in the cure amount listed in the cure amount notice. A list of the Debtors' proposed cure amounts is available for free at: http://bankrupt.com/misc/Delphi_PlanCures.pdf Cure & Assumption Objections On Jan. 29, 2008, the Debtors delivered to the Court a list of proposed cures for the assumption and assignment of certain executory contracts as provided in the confirmed First Amended Plan and the First Amended Disclosure Statement. A number of parties-in-interest complain that the proposed cures for the assumption of their contracts are understated. Several objectors assert that they have not been given adequate assurance of any proposed assignee's performance under the Assumed Contracts. A dozen objectors assert that they should be paid these cures: Debtors' Objector's Proposed Proposed Cure Objector Cure Amt. Cure Amt. ------------- --------- ---------- Ambrake Corp. US$113,072 US$347,716 Citation Corp., et al. 577,482 595,681 Furukawa Electric Company Ltd. 31,308 58,992 Furukawa Electric North America APD 2,664,471 2,832,655 MacArthur Corp. 18,074 38,708 Magneti Marelli Powertrain USA Inc. - 29,435 Master Automatic, Inc. - 7,613 McGill Manufacturing Company Inc. - 36,493 Metal-Matic Inc. 43,080 86,009 PBR Columbia LLC - 195,469 Quasar Industries, Inc. - 528,714 Tinnerman Palnut Engineered Products 7,229 271,401 SKF USA Inc. contends that it is entitled to payment in full and in cash of all outstanding postpetition invoices under its contracts. SKF USA also points out that certain of its contracts have expired and are, thus, no longer executory contracts that can be assumed. United Plastics Group De Mexico, S. De R.L. De C.V., relates that its books and records do not show a contract with the account number ascribed by the Debtors. Accordingly, UPG Mexico has no way of determining whether or not the Debtors' proposed zero cure amount for the alleged UPG Contract is correct. UPG Mexico asserts that it is owed no less than US$136,482 under its agreements with Delphi Automotive Systems LLC. Barnes Group Inc., Daewoo International Corp., DGC-Plastic Molding Inc., Freudenber-NOK General Partnership, and Hayes Lemmerz International, Inc., relate that they have not yet completed their review of the Assumed Contracts. Barnes objects to the proposed cures for its contracts to the extent the Debtors' cure obligations are limited to prepetition amounts. Furukawa relates that the Debtors have not provided it with sufficient information to identify two of the Assumed Contracts, thus, it is unable to verify whether the proposed cures are correct. AT&T Corp. and XM Satellite Radio Inc. note that the First Amended Plan provides for the assumption of all contracts not specifically rejected by the Debtors. The Debtors have not rejected, or proposed to reject, the parties' executory contracts. AT&T and XM Satellite assert that the Debtors must cure all defaults under their contracts before those contracts may be assumed and assigned. According to AT&T, the Debtors owe it US$8,255,577 under the parties' contracts. XM Satellite asserts that US$1,017,448 is outstanding under its contracts with the Debtors. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 112; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. DELPHI CORP: Cuts Rodney O'Neal's Emergence Incentive to US$1MM --------------------------------------------------------------- As disclosed in a 10-K filing with the U.S. Securities and Exchange Commission, Delphi Corp. and its debtor-affiliates slashed the bonus payable to CEO Rodney O'Neal upon the company's emergence from bankruptcy protection, from US$5.3 million to US$1 million. Aside from receiving an emergence cash award value of US$1,011,621, Mr. O'Neal will obtain an emergence equity award valued at US$10,500,000. As reported in the Troubled Company Reporter on Jan. 24, 2008, the Honorable Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York said he will approve the Debtors' First Amended Joint Plan of Reorganization on the condition that the total payout of cash bonuses to top executives is reduced. "I am prepared to enter the confirmation order, provided the management compensation plan is changed," Judge Drain said at a confirmation hearing. The Court wanted the bonus for Delphi's officers reduced to US$16.5 million in the aggregate from the US$87.9 million that Delphi had proposed to award to 500 managers upon emergence. But the United Auto Workers and the International Union of Electronic Workers-Communications Workers of America objected to the payments, citing, among other things, that while unionized Delphi employees suffered pay-cuts, the managers, who are already adequately compensated, are given generous bonuses. The management compensation plan sought to grant an US$8.3 million "performance payment" to Executive Chairman Robert Miller; and a US$5.3 million cash emergence payment to Mr. O'Neal. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 112; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. GERDAU SA: Quanex to Vote on Merger With Firm --------------------------------------------- Quanex Corp. reported that it will hold a special meeting of stockholders on March 31, 2008, to approve and adopt the agreement and plan of its merger with a subsidiary of Gerdau S.A. Stockholders of record as of the close of business on Feb. 29, 2008, will be entitled to vote at the special meeting. Quanex will issue a definitive proxy statement regarding the proposed merger to stockholders after the record date. Completion of the merger is subject to the adoption of the merger agreement by Quanex's stockholders and the satisfaction of the other closing conditions set forth in the merger agreement. About Quanex Corp. Quanex Corp., formerly Michigan Seamless Tube Company, is engaged in the production of engineered carbon and alloy steel bars, heat treated bars, aluminum flat-rolled products, flexible insulating glass spacer systems, extruded profiles, and precision-formed metal and wood products. The two markets served by the Company include vehicular products and building products. The segments served by the Company include Vehicular Products, Engineered Building Products and Aluminum Sheet Building Products. Quanex has 27 manufacturing facilities in 12 states in the United States. About Gerdau 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. GLOBAL CROSSING: Signs Interconnection Deal With Michael Page ------------------------------------------------------------- Global Crossing has signed a three-year contract with Michael Page International to interconnect the company's offices and operations in Brazil and Mexico. Under the agreement, Global Crossing will provide Internet Protocol Virtual Private Network services, Voice over Internet Protocol (VoIP) Outbound services and managed network services in Brazil and Mexico, as well as local access services in Sao Paulo, where the company's network hub for the region is located. Headquartered in London, Michael Page specializes in the placement of candidates in permanent, contract, temporary and interim positions within client companies around the world. "Global Crossing was the perfect choice to meet our needs for advanced telecommunications technology to support our continuous growth strategy," said Michael Page International's IT director for Latin America, Adalto Nicola. "With Global Crossing's global MPLS-based fiber-optic network, we're benefiting from higher performance, reliability and security with scalable connectivity to support our rapid growth." Global Crossing's VoIP Outbound service ensures that VoIP packets receive the highest priority in the network, delivering voice calls with minimal latency, packet loss and jitter -- a consistent and predictable call quality not possible with voice services based on public Internet transport. Currently, this service is available in 29 countries worldwide. "This agreement underscores Global Crossing's ability and agility to serve the corporate market, by offering services that support new applications in the IP world," said Global Crossing's managing director in Latin America, Hector Alonso. "We are completely focused on understanding our customers' needs and implementing the solutions that best support their business goals." Through Global Crossing's comprehensive, end-to-end network management system, Michael Page will experience unsurpassed reliability while enjoying always-on, direct high-speed connectivity to the Internet. Michael Page will also employ Global Crossing's uCommand(R) -- an industry-leading Web-based account and network management tool, available 24/7, which allows customers to monitor their network, create utilization reports, establish end-user and product accounts, and view monthly billing reports. About Michael Page International Established in 1976, Michael Page International is one of the world's leading professional recruitment consultancies, specializing in the placement of candidates in permanent, contract, temporary and interim positions with clients. In 2006, the company reported 649.1 million British pounds sterling in global revenues, a 23.9 percent increase compared to the previous year. With headquarters in London, the company operates through 141 offices in 24 countries worldwide and has 4,323 employees worldwide. About Global Crossing Latin America Global Crossing's Latin American business has operations in Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru, Mexico, Venezuela and the United States (Florida). In addition to its IP-based fiber-optic network, Global Crossing's regional infrastructure includes 15 metropolitan networks and 15 world- class data centers located in the main business centers of Latin America. Global Crossing's reach and experience in Latin America allow it to address the particularities of the region and deliver the solutions each company needs. The company provides services to a variety of customers, including medium and large companies and corporations, institutions and government entities, and telecommunications operators. About Global Crossing Headquartered in Florham Park, New Jersey, Global Crossing Ltd. (NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides telecommunication services over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe including Bermuda, Argentina, Brazil, and the United Kingdom. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. The company filed for chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the Debtors filed for protection from their creditors, they listed US$25,511,000,000 in total assets and US$15,467,000,000 in total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003. * * * At Sept. 30, 2007, Global Crossing Ltd.'s balance sheet showed total assets of US$2.6 billion, total debts of US$2.7 billion and a US$74 million stockholders' deficit. As reported in the Troubled Company Reporter-Latin America on Nov. 8, 2007, Global Crossing Ltd. said in a statement that its net loss increased 75% to US$89 million in the third quarter 2007, compared to US$51 million in the third quarter 2006. IWT TESORO: Judge Glenn Sets March 17 as Claims Bar Date -------------------------------------------------------- The Hon. Martin Glenn of the United States Bankruptcy Court for the Southern District of New York set March 17, 2008, at 5:00 p.m., as deadline for all creditors of IWT Tesoro Corporation and its debtor-affiliates, including governmental units, to file proofs of claim. The Debtors tell the Court that they need more time to quantify the amounts of the administrative claims to be able to determine the feasibility and structure of the contemplated liquidating plan. Failure to file claims will forever bar creditors from asserting any claims against the Debtors. I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, -- http://www.iwttesoro.com/-- is headquartered in New York City. The company and its subsidiaries distribute building materials, specifically hard floor and wall coverings. They are wholesalers and do not sell directly to any end user. Their products consist of ceramic, porcelain and natural stone floor, wall and decorative tile. They import a majority of these products from suppliers and manufacturers in Europe, South America (Brazil), and the Near and Far East. Their markets include the United States and Canada. They also offer private label programs for branded retail sales customers, buying groups, large homebuilders and home center store chains. The Debtor and its debtor-affiliates, International Wholesale Tile, Inc. and American Gres, Inc., filed for Chapter 11 bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead Case No. 07-12841). John K. Sherwood, Esq., at Lowenstein Sandler P.C., represents the Official Committee of Unsecured Creditors. As of June 30, 2007, the Debtors had total assets of US$39,798,579 and total debts of US$47,940,983. SITEL WORLDWIDE: S&P Cuts Credit Rating to B; Outlook Negative -------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its corporate credit rating on Sitel Worldwide Corp. to 'B' from 'B+'. The outlook is negative. The downgrade reflects Sitel's weaker-than-expected profitability and S&P's expectation that the company's performance in the next few quarters will provide little cushion to its bank loan covenants, even with an expected equity infusion this quarter. "The ratings reflect Sitel's challenge to achieve postacquisition profitability targets, its 2008 leverage covenant step-downs, and the highly fragmented and competitive nature of the business segment it operates in," said S&P's credit analyst Joseph Spence. "These factors are offset somewhat by Sitel's position as a leading provider in a growing industry, its diversified blue-chip customer list, and its global end markets." Headquartered in Nashville, Tennessee, Sitel Worldwide Corp. -- http://www.sitel.com/-- is a customer care business process outsourcing vendor for voice services. It competes with larger multinational companies (i.e. EDS, Accenture, and IBM) and a host of like size companies (including Convergys, West, Teletech, and Sykes) in the customer care call center and business process outsourcing industry. The company has an approximate 80:20 ratio of on/near shore to off shore operating capacit and operates more than 155 locations in 27 countries, including Brazil, Mexico and the Philippines. UAL CORPORATION: Various Entities Disclose Stake Ownership ---------------------------------------------------------- Several entities made separate filings with the United States Securities and Exchange Commission disclosing their interest ownership in UAL Corporation. 1. Bank of America In a regulatory filing with the SEC, dated Feb. 7, 2008, Bank of America Corporation disclosed that it beneficially owns 10,594,889 shares of UAL Corp. Common Stock, representing 9.10% of UAL's total outstanding shares. BofA reported that it has shared voting power of 10,593,768 shares, as well as shared dispositive power of 10,593,768 shares. BofA is the parent holding company of eight other entities, which also disclosed its individual ownership of UAL stock. BofA, N.A., has the sole power to vote for 1,707,082 shares and it also shares the power to direct the vote of 89,831 shares. Moreover, BofA, N.A. has sole power to dispose of 1,707,082 shares and it also shares the power to direct the disposition of 89,402 shares. U.S. Trust has the sole power to vote for 13,801 shares, and shares the power to direct the vote of 7,710,629 shares. U.S. Trust has sole dispositive power of 15,351 shares and it also shares the power to direct the disposition of 7,710,639 shares. BofASHC and Columbia Management Group have shared voting and dispositive power of all its shares, while BofAS and Columbia Management Advisors have sole voting and dispositive power of all its shares. BofA Investment has share voting power for all its shares. 2. Capital World Investors Capital World Investors disclosed in a regulatory filing with the SEC, dated Feb. 11, 2008, that it is the beneficial owner of 10,180,490 shares of UAL Corp. Common Stock, as of Dec. 31, 2007. The Capital World holding represents 8.6% of the 116,279,000 UAL shares which is believed to be outstanding, as a result of Capital Research and Management Company acting as investment adviser to various investment companies registered under Section 8 of the Investment Company Act of 1940, Donald H. Rolfe, attorney-in-fact of Capital World, reported. The shares reported by Capital World, include 2,083,880 shares resulting from the assumed conversion of US$72,600 principal amount of the 4.5% Senior Convertible Notes due June 30, 2021. Mr. Rolfe also stated that one or more clients of Capital World Investors have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the Common Stock of UAL Corp. 3. Vanguard Windsor Funds In a regulatory filing with the SEC, dated Feb. 12, 2007, Vanguard Windsor Funds - Vanguard Windsor Fund 51-0082711, disclosed that it beneficially owns 9,661,500 shares of UAL Corp. common stock, which represents 3.36% of UAL's total outstanding shares. Vanguard Windsor has sole voting power for all its shares. 4. Wellington Management Company, LLP Wellington Management Company, LLP, in its capacity as investment adviser, disclosed in a regulatory filing with the SEC, dated Feb. 14, 2008, that it beneficially owns 4,635,237 shares of UAL Corp. common stock, at Dec. 31, 2007. The shares held by Wellington Management represents 3.99% of UAL's total outstanding shares. Wellington Management has shared power to direct the vote of 629,000 shares, and also has shared power to direct the disposition of 4,626,237 shares. 5. Impala Asset Management LLC In a regulatory filing with the SEC, dated Feb. 14, 2008, Impala Asset Management LLC reported that, at Dec. 31, 2007, it beneficially owns 12,284,199 shares of UAL Corp. common stock, which represents 10.56% of UAL's total outstanding shares. Impala shares the voting power and dispositive power of all its shares. 6. Legg Mason In a regulatory filing with the SEC dated Feb. 14, 2008, LMM LLC disclosed that it beneficially owns 8,900,000 shares of UAL Corp. common stock, which represents 7.65% of UAL's total outstanding shares. LMM also reported that it has shared voting power and shared dispositive power of all its shares. In the same filing, two more Legg Mason entities disclosed their beneficial ownership of UAL stock. Legg Mason Opportunity Trust -- 8,900,000 shares, or 7.65% -- and Legg Mason Capital Management Inc. -- 1,276,434 shares, or 1.10% -- have shared voting power and shared dispositive power of all its shares. 7. FMR LLC In a regulatory filing with the SEC, dated Feb. 14, 2008, FMR LLC disclosed that it beneficially owns 12,092,088 shares of UAL Corp. common stock, as of Dec. 31, 2007. The stocks held by FMR represents 10.246% of UAL's total outstanding shares. According to the SEC filing, FMR has shared voting power of 216,266 shares, and shared power to dispose of or to direct the disposition of all the shares. The current SEC filing is an amendment of a previous report dated September 10, 2007. Fidelity Management & Research Company, a wholly-owned subsidiary of FMR LLC and an investment adviser, is the beneficial owner of 11,834,222 shares or 10.027% of the Common Stock outstanding of UAL Corp. as a result of acting as investment adviser to various investment companies. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 153 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Fitch Ratings, on May 2007, affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. ========================== C A Y M A N I S L A N D S ========================== BASSO PRIVATE: Will Hold Final Shareholders' Meeting on March 6 --------------------------------------------------------------- Basso Private Opportunities Fund Ltd. will hold its final shareholders meeting on March 6, 2008, at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Basso Private' shareholders decided on Dec. 4, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Joshua Grant Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands CATHEDRAL LIMITED: Proofs of Claim Filing Deadline Is March 6 ------------------------------------------------------------- Cathedral Limited's creditors have until March 6, 2008, to prove their claims to Kareem Robinson and Richard Gordon, 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. Cathedral's shareholder decided on Jan. 23, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Kareem Robinson and Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands CAYMAN SPECIALTY: Proofs of Claim Filing Is Until March 6 --------------------------------------------------------- Cayman Specialty Piping's creditors have until March 6, 2008, to prove their claims to Bobby Toor and Richard Gordon, 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. Cayman Specialty's shareholder decided on Jan. 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands DRAGONOX HOLDINGS: Sets Final Shareholders' Meeting for March 5 --------------------------------------------------------------- Dragonox Holdings Limited will hold its final shareholders' meeting on March 5, 2008, at HSBC International Trustee Limited, P.O. Box 484, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators 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. Dragonox Holdings' shareholders 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: Final Shareholders' Meeting Is on March 5 ------------------------------------------------------------- The Freespirit Capital Management - Asia 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. Freespirit's shareholders decided on Jan. 24, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Eric Sandlund 3 Pickering Street #02-18 Nankin Row Singapore 048660, Singapore ========= C H I L E ========= TECH DATA: Partners With Zenith to Provide Managed Services ----------------------------------------------------------- Tech Data Corporation and managed services infrastructure provider Zenith Infotech have entered into a partnership to aggressively recruit, train and support managed services providers (MSPs) nationwide. Tech Data and Zenith will collaborate to provide resellers with extensive sales, technical and marketing support as they build a managed services practice and profitably introduce these new IT solutions to their end- user customers. "Tech Data's managed services strategy centers on the approach of VAR Choice," said Joe Quaglia, Tech Data senior vice president, U.S. Marketing. "Zenith brings best-of-breed solutions to our growing managed services offering. That enables us to offer resellers access to a wider array of solutions, so they can deliver managed services that align with their go-to-market strategies and best meet their customers' needs. Tech Data and Zenith are providing resellers greater flexibility as they evaluate this opportunity and choose the most effective way to adopt, market and deliver managed services." Through this partnership, Tech Data will leverage its extensive customer base to recruit resellers and introduce them to Zenith's managed services solutions. Interested resellers have the opportunity to attend regional Zenith channel conferences to learn how to profitably develop and market a managed services business. Additionally, Zenith has established a dedicated team of channel specialists to provide Tech Data customers with comprehensive pre- and post-sales support and technical assistance. "Tech Data and its vast distribution channel play a critical role in the growth of managed services," said Akash Saraf, Chief Exectuvive Officer, Zenith Infotech. "Partnering with Tech Data enables tens of thousands of IT resellers to offer 24x7 support, near-line business continuity and managed network infrastructure services. Our dedicated team of channel specialists will work with Tech Data's reseller customers to help them generate recurring revenue by delivering an array of proactive network monitoring, maintenance and remediation services." Zenith services available to Tech Data customers include: * Zenith Server Watch � 24x7 remote monitoring of Windows servers * Zenith Remote Server Care � 24x7 remote monitoring and management of Windows servers with remote issue remediation performed by Zenith on behalf of the MSP * Zenith Total Desktop Care � 24x7 remote monitoring of Windows-based desktops and notebooks providing proactive maintenance such as anti-virus updates and spyware deletion * Zenith Backup and Disaster Recovery � 24x7 monitored and managed data backup and restoration * Zenith Virtual Services Desk � 24x7 help desk support for end users staffed by Zenith technicians to support server, desktop or network issues More than 1,600 channel partners utilize Zenith to deliver managed services to support 10,000 end-user locations with more than 300,000 devices. About Tech Data Founded in 1974, Tech Data Corporation (NASDAQ GS: TECD) -- http://www.techdata.com/-- distributes IT products, with more than 90,000 customers in over 100 countries. The company's business model enables technology solution providers, manufacturers and publishers to cost-effectively sell to and support end users ranging from small-to-midsize businesses to large enterprises. Tech Data is ranked 107th on the FORTUNE 500(R). The company and its subsidiaries operate centers in Latin America, including Brazil and Chile. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 4, 2007, Moody's Investors Service affirmed Tech Data Corporation's Corporate Family Rating and Probability of Default Rating at Ba1. The rating agency also assigned Ba2 rating on US$350 Million Convertible Senior Unsecured Notes due 2026 and changed the outlook to stable from negative. =============== C O L O M B I A =============== BANCOLOMBIA SA: Fined COP1,600,000 Due to Late Report ----------------------------------------------------- In accordance with Decree 3139 of 2006, Bancolombia S.A. reports that on Feb. 7, 2008, the Superintendency of Corporations issued Resolution No. 230-000397, whereby it imposed a fine to Bancolombia for the amount of COP1,600,000 due to a late report of information to the Central Bank (Banco de la Republica) related to foreign investment. Bancolombia is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * As reported in the Troubled Company Reporter-Latin America on June 27, 2007, Moody's Investors Service changed the outlook to positive from stable on its Ba3 long-term foreign currency deposit ratings and Ba1 long-term foreign currency subordinated bond rating for Bancolombia, S.A. BANCO DE BOGOTA: Issuing COP300 Billion in Bonds in 2008 -------------------------------------------------------- Banco de Bogota said in a filing with Colombian financial regulator Superfinanciera that it will issue COP300 billion in bonds this year. Banco de Bogota told Business News Americas that it is lining up the issue. It will be informing the market of the bond terms and conditions once they are defined. Banco de Bogota also said that it will relaunch its corporate image this week. Headquartered in Santa Fe de Bogota, Colombia, Banco de Bogota -- http://www.bancodebogota.com-- is a private national bank involved in all activities associated with a commercial banking institution as regulated by Colombian law. On a national level, it also operates through subsidiaries: Corporacion Financiera Colombiana S.A., an investment bank; Almacenes Generales de Deposito "Almaviva S.A.", a products supply logistics company; Sociedad Fiduciaria Bogota "Fidubogota S.A." and Fiduciaria del Comercio "Fiducomercio S.A.", trust and portfolio investment companies; Leasing Bogot S.A., a leasing company; Valores Bogot S.A., a provider of brokerage services; and Fondos de Pensiones y Cesantias Porvenir, a pensions and suspensions administrator. The Bank operates 275 offices, five corporate service centers and a banking attention center. The company also has affiliates in Panama, Nassau, Miami, and New York. * * * On Oct. 18, 2007, Moody's said that Banco de Bogota's Ba3 long- term foreign currency deposit rating, with a positive outlook, is constrained by Colombia's foreign currency deposit ceiling. ============= E C U A D O R ============= FREEPORT-MCMORAN: Moody's Lifts Ratings on Strong Earnings ---------------------------------------------------------- Moody's Investors Service upgraded Freeport's corporate family rating to Ba1 from Ba2 and undertook these related rating actions: (i) upgraded to Baa1 (LGD1, 4%) from Baa2 the senior secured rating on Freeport's US$500 'million secured revolver; (ii) upgraded to Baa1 (LGD1, 9%) from Baa3 the senior secured ratings on Freeport's US$1 billion secured revolver and Freeport's 6.875% senior secured notes; and (iii) upgraded to Ba2 (LGD5, 74%) from Ba3 Freeport's $6.0 billion of senior unsecured notes. Moody's also upgraded to Baa2 (LGD2, 16%) from Ba1 the ratings on Phelps Dodge's notes. The ratings outlook for Freeport and Phelps is stable. The upgrade reflects Freeport's very strong earnings and cash flow in the current elevated metals price environment, and significant debt reduction (US$1.5 billion) in the fourth quarter of 2007. The stable ratings outlook reflects the favorable fundamentals of the copper market, as well as Freeport's long-life reserve base and relatively low cost profile. Rating upgraded are: * Issuer: Freeport-McMoRan Copper & Gold Inc. -- Corporate Family Rating: Ba1 -- Probability of Default Rating: Ba1 -- US$0.5 billion Senior Secured Revolving Credit facility, Baa1, LGD1, 4% -- US$1.0 billion Senior Secured Revolving Credit Facility, Baa1, LGD1, 9% -- US$340.3 million 6.875% Senior Secured Notes due 2014, Baa1, LGD1, 9% -- US$6 billion Senior Unsecured Notes: Ba2, LGD5, 74% * Issuer: Phelps Dodge Corporation -- US$107.9 million 8.75% Senior Notes due 2011, Baa2, LGD2, 16% -- US$115 million 7.125% Senior Notes due 2027, Baa2, LGD2, 16% -- US$150 million 6.125% Senior Notes due 2034, Baa2, LGD2, 16% -- US$193.8 million 9.50% Senior Notes due 2031, Baa2, LGD2, 16% Outlook Actions: * Issuer: Freeport-McMoRan Copper & Gold Inc. -- Outlook: Changed To Stable From Positive * Issuer: Phelps Dodge Corporation -- Outlook: Changed To Stable From Positive Moody's last rating action on Freeport was to assign a positive rating outlook in September 2007. Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) -- http://www.fcx.com/-- is an international mining industry leader based in North America with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Freeport- McMoRan has one of the most dynamic portfolios of operating, expansion and growth projects in the copper mining industry. The Grasberg mine in Indonesia, the world's largest copper and gold mine in terms of reserves, is the company's key asset. Freeport-McMoRan also operates significant mining operations in North and South America and is developing the world-class Tenke Fungurume project in the Democratic Republic of Congo. The completion of Freeport-McMoran's acquisition further expands the company's global operations. The former Phelps Dodge Corp. has mining operations in Chile, Peru, Colombia, Venezuela and Ecuador, among others. PETROECUADOR: Prosecutor Urges Annulment of Petrobras' Contracts ---------------------------------------------------------------- Ecuadorian Attorney General Xavier Garaicoa is recommending that the government cancel Petroecuador's two oil concessions with Brazil's Petroleo Brasileiro SA, Bloomberg News reports. According to Prensa Latina, Mr. Garaicoa submitted the request to rescind Petroleo Brasileiro's contracts to Mining and Oil Minister Galo Chiriboga, who will conduct an investigation. Mr. Garaicoa confirmed to Prensa Latina that Petroleo Brasileiro breached two laws, so its contract will be terminated. Items 11, 12 and 13 of article 74 of the Hydrocarbons Act were violated. Mr. Garaicoa told the press that Petroleo Brasileiro didn't follow proper procedure when it sold some rights to the Block 18 and Palo Azul oil concessions to Teikoku Oil Co. in 2005. Prensa Latina relates that Petroleo Brasileiro transferred 40% of its rights and obligations in Block 18 and Palo Azul to Teikoku Oil. The transfer of the minority stakes in the fields to Teikoku was made before receiving government authorization, Bloomberg News says, citing Mr. Garaicoa. Mr. Garaicoa told Prensa Latina that Petroleo Brasileiro breached item 12 of the article 74 of the Hydrocarbons Act, which prohibits the integration of consortiums and associations without authorization from the mining and oil ministry. The group that manages the fields isn't registered with the Hydrocarbons Office. This voided the participants' rights to the fields retroactive to 1999, Bloomberg News notes, citing the attorney general. Petroleo Brasileiro denied the allegations and told Reuters that it has always been in contact with the proper authorities and respected the current legal framework. According to the company, the transfer of rights in block 18 secured the oil ministry's approval in 2007. Minister Chiriboga told Reuters that the call for Petroecuador to stop Petroleo Brasileiro's concessions won't jeopardize talks to restructure the oil extraction accord between the two firms. According to Bloomberg News, Petroleo Brasileiro is renegotiating its contracts with the Ecuadorian government. Deadline for the renegotiation is March 8. Minister Chiriboga commented to Reuters, "While there is no decision on the termination of a contract, that contract is operational . . . yes, negotiations will continue." Reuters notes that Mr. Garaicoa's recommendation isn't binding, but it would prompt Petroecuador to consider ending Petroleo Brasileiro's contract. The termination of the contracts would allow Petroecuador to take over Petroleo Brasileiro's assets. The process could take months or even year, Reuters states, citing experts and government officials. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp- - was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. About Petroecuador Headquartered in Quito, Ecuador, Petroecuador -- http://www.petroecuador.com.ec-- is an international oil company owned by the Ecuador government. It produces crude petroleum and natural gas. * * * In previous years, Petroecuador, according to published reports, was faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much- needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. In 2008, a new management team was appointed to turn around the company's operations. ============= J A M A I C A ============= CABLE & WIRELESS: Unit to Increase Line Rental Fees by 40% ---------------------------------------------------------- Cable & Wireless' Jamaican unit will increase line rental fees for residential clients by 40% on April 1, The Jamaica Gleaner reports. According to The Gleaner, residential customers' fees will increase by J$200 to J$700 per month. The increase in fees would be implemented for business clients as well, Cable & Wireless told The Gleaner. The Gleaner relates that fees for business line rentals -- PBX trunk lines, national and international toll-free lines and direct inward- dialing lines -- will increase to J$1,600 per month, from from J$1,250 per month. "A rate increase of any kind for our customers is regrettable, but in this case, due to inflationary pressures and increasing operational costs, they are inescapable," Mark Brunwin, the Cable & Wireless unit's chief marketing officer said. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. NATIONAL COMMERCIAL: Christopher Denny Quits as Regional Manager ---------------------------------------------------------------- Christopher Denny has left the National Commercial Bank Jamaica Limited as its regional manager to join FirstCaribbean Jamaica, The Jamaica Gleaner reports. According to The Gleaner, Mr. Denny has been appointed as FirstCaribbean Jamaica's retail bank director and general manager of mortgage subsidiary FCIB Building Society. Milton Brady, FirstCaribbean Jamaica's managing director and former National Commercial executive, commented to The Gleaner about Mr. Denny, "We have worked together previously and I look forward to working with him to build our retail business in Jamaica." Debra Lopez, vice-president of the National Commercial wealth management arm NCB Capital Markets Limited, joined FirstCaribbean Jamaica's capital markets team last month, The Gleaner states. Headquartered in Kingston, Jamaica, the National Commercial Bank Jamaica Limited -- http://www.jncb.com/-- provides commercial and retail banking, wealth management services. The company's services include personal banking, business banking, mortgage loans, wealth management and insurance services. Founded in 1977, the bank primarily operates in West Indies and the UK. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2006, Standard & Poor's Rating Services affirmed its 'B/B' counterparty credit and CD ratings on National Commercial Bank Jamaica Ltd. S&P said the outlook is stable. As reported in the Troubled Company Reporter-Latin America on May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica- based National Commercial Bank Jamaica Limited: long-term foreign and local currency Issuer Default at 'B+'; short-term foreign and local currency rating at 'B'; individual at 'D'; and support at 4. The rating outlook on the bank's ratings is stable, in line with Fitch's view of the sovereign's creditworthiness. WEST CORP: Ratings Unaffected by Genesys Acquisition, S&P Says -------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on West Corp. (B+/Stable/--) are not affected by its offer to acquire Genesys SA for EUR2.50 per share (US$3.68 per share) for a total transaction value of EUR182.9 million (US$268.8 million), excluding transaction costs. The offer price is a premium of 50% above the closing price of Genesys' shares on Feb. 18, 2008. Genesys' board of directors has unanimously expressed support for the offer and authorized the execution of a tender offer between the two companies. The company plans to finance the acquisition with available cash on hand and incremental debt. The transaction is expected to close in mid-2008. Genesys is an international conferencing service provider with significant presence in Europe and Asia. West Corp. intends to combine Genesys with its InterCall subsidiary. InterCall is the largest provider of conferencing services in North America. Following the transaction, InterCall will be the largest conferencing service provider in Europe as well. Pro forma for the acquisition of Genesys, lease-adjusted total debt to EBITDA was 6.4 for the 12 months ended Dec. 31, 2007. West Corp. has minimal near-term maturities and sufficient liquidity, with some excess cash and substantial availability under its US$250 million revolving credit facility. The company has been a very active acquirer and total leverage decreased only modestly since its 2006 LBO. While the company still has the capacity to make additional tuck-in acquisitions at the current rating level, if lease-adjusted total debt to EBITDA exceeds 6.75, S&P would consider revising the outlook to negative. Based in Omaha, Nebraska, West Corporation -- www.west.com -- provides outsourced communication solutions to companies, organizations and government agencies. West helps its clients communicate effectively, maximize the value of their customer relationships and drive greater profitability from every interaction. The company's integrated suite of customized solutions includes customer acquisition, customer care, automated voice services, emergency communications, conferencing and accounts receivable management services. The company also has operations in Australia, Canada, China, Hong Kong, India, Jamaica, Mexico, Philippines, Singapore, Switzerland and the United Kingdom. =========== M E X I C O =========== DURA AUTOMOTIVE: Backstop Rights Deal With Pacificor Expires ------------------------------------------------------------ DURA Automotive Systems, Inc., disclosed in a regulatory filing with the U.S. Securities and Exchange Commission, that its Backstop Purchase Agreement with Pacificor, LLC, was terminated as of Jan. 31, 2008. As a result of the termination, Pacificor has no further obligations under the agreement with respect to its backstop commitment, C. Timothy Trenary, DURA's vice president and chief financial officer, said. As reported in the Troubled Company Reporter on Jan. 7, 2008, Pacificor, under the Backstop Agreement, committed to purchase up to US$160,000,000 in reorganized DURA by buying shares of new common stock that were not purchased in an equity rights offering. The Pacificor commitment, which expired Jan. 31, 2008, was contingent upon DURA obtaining the exit financing prior to that date. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtors had US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 45; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DURA AUTOMOTIVE: Wants Court to Approve Amended 2008 KMIP --------------------------------------------------------- DURA Automotive Systems Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to approve their 2008 Key Management Incentive Plan, as amended. The Debtors reserve their right to seek approval of an incentive plan for their senior managers. Debtors Amend 2008 KMIP The Debtors have amended their 2008 KMIP to better focus on the non-senior management KMIP participants with respect to two aspects: (1) The Debtors are not going forward with the proposed 2008 KMIP payments to their chief executive officer, chief financial officer, chief operating officer, and vice president of human resources; and (2) The Debtors intend to make all payments to approximately 104 non-Debtor employee participants in the 2008 KMIP from the Debtors' European non-debtor affiliates. The Amended 2008 KMIP maintains a two three-month performance measurement and pay-out periods, ending on March 31 and June 30, 2008: * Threshold pay-out: If the Debtors achieve 90% of adjusted EBITDA goals, participants will receive 50% of their individual target bonus opportunities; * Target opportunity pay-out: If the Debtors achieve 100% of adjusted EBITDA goals, participants will receive 100% of their individual target bonus opportunities. * Maximum pay-out: If the Debtors achieve 120% of adjusted EBITDA goals, participants will receive 150% of their individual target bonus opportunities. Participant's individual target bonus opportunities range from 5% to 45% of each participant's base salary at the Target Opportunity Payout. The Debtors have previously proposed a target bonus opportunities range range of 5% to 80%. Distribution of participant to target opportunity percentages: Target Opportunity Number of 2008 KMIP (% of base salary) Participants ------------------ ------------------- 45% 7 30% 16 25% 20 20% 26 15% 1 12% 40 The Debtors estimate to pay approximately US$2,500,000 at the Target Opportunity Payout, compared to their previous estimate of US$6,000,000. Marc Kieselstein, P.C., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, relates the Official Committee of Unsecured Creditors and the Debtors are in discussions regarding the merits of the 2008 KMIP. As of Feb. 4, 2008, Mr. Kieseltein says, there has been no appreciable progress in resolving the differences between the Debtors and the Creditors Committee. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- htt