/raid1/www/Hosts/bankrupt/TCRLA_Public/080225.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, February 25, 2008, Vol. 9, No. 39
Headlines
A R G E N T I N A
ALASSIA LILIANA: Proofs of Claim Verification Ends on April 11
ALITALIA SPA: Lazio Court Rejects Appeal to Cancel Sale Talks
AVILA DANIEL: Proofs of Claim Verification Is Until April 11
BAT SA: Proofs of Claim Verification Deadline Is April 10
BODY MAGIC: Trustee to File Individual Reports on May 8
DELAE SRL: Proofs of Claim Verification Deadline Is April 28
DELTA AIR: Air France KLM Wants to Invest in NW-Delta Deal
DYNAMIC INFORMATICA: Claims Verification Is Until April 7
GAS ARECO: Court Concludes Reorganization
GAVELE SA: Court Concludes Reorganization
GIAC GAS: Court Concludes Reorganization
KONINKLIJKE AHOLD: ICA Posts SEK2.6BB Operating Income in 2007
MANNY S MUSICAL: Proofs of Claim Verification Ends on April 11
NORTHWEST AIR: Air France KLM Wants to Invest in NW-Delta Deal
SUSPIROS SA: Proofs of Claim Verification Deadline Is May 2
* ARGENTINA: Fitch Holds Local Cur. Issuer Default Rating at B
B E L I Z E
CONTINENTAL AIRLINES: Orders Additional 27 Aircraft From Boeing
B E R M U D A
ELAN CORP: Posts US$405 Million Net Loss for Year Ended 2007
B O L I V I A
INTERMEC INC: Hires Dennis Faerber as SVP for Global Operations
B R A Z I L
BANCO BONSUCESSO: Launching Three Offices This Year
BANCO BONSUCESSO: May Take Larger Banking Partner
BANCO CRUZEIRO: Moody's Puts Ba1 Rating on US$100MM Senior Notes
BANCO DO BRASIL: Launching Retail Bank & Money Transfer Co.
COSAN SA: Strong Exports Prompt S&P to Hold Credit Ratings at BB
DELPHI CORP: Gets Court Nod for US$2.7 Bil. Steering Biz Sale
DELPHI CORP: Hephaestus Unit Wins Bearings Business Auction
DUKE ENERGY: Earns BRL72.7 Million in 2007
GOL LINHAS: Unit's Web Site Gets 4.4 Million Visits in 4th Qtr.
HRP MYRTLE: Moody's Puts Probability of Default Rating at Caa1
C A Y M A N I S L A N D S
DD EURO GROWTH FUND: Proofs of Claim Filing Deadline Is March 6
DD EURO GROWTH MASTER: Proofs of Claim Filing Is Until March 6
FS CLO: Proofs of Claim Filing Deadline Is March 6
J-FUND LIMITED: Proofs of Claim Filing Deadline Is March 6
YY PROPERTY: Proofs of Claim Filing Ends on February 28
C H I L E
ROCK-TENN CO: To Offer US$200 Million Senior Notes due 2016
D O M I N I C A N R E P U B L I C
BANCO INTERCONTINENTAL: Defense Seeking to Present Evidence
E L S A L V A D O R
HANESBRANDS INC: Bares Long-Term Capital Structure Strategies
G U A T E M A L A
LAND O'LAKES: Inks Amendment to Sale Agreement With Golden Oval
G U Y A N A
FLOWSERVE CORP: Settles Oil-for-Food Case With SEC & DOJ
J A M A I C A
DIGICEL GROUP: Launches New Brand Tagline
M E X I C O
BRISTOW GROUP: Declares US$0.6875 Per Share Preferred Dividend
FEDERAL-MOGUL: Says Objections to Plan A Changes Are Meritless
FLEXTRONICS: Getting MXN35 Million From Jalisco State Government
HOST HOTELS: S&P Changes Outlook to Stable; Keeps 'BB' Rating
MEXORO MINERALS: Francisco Quiroz Joins Board of Directors
MEXORO MINERALS: Intersects Gold & Silver Drilling in Guazapares
SHARPER IMAGE: Files for Chapter 11 in Delaware
SHARPER IMAGE: Case Summary & 20 Largest Unsec. Creditors
P U E R T O R I C O
DORAL FINANCIAL: FDIC Issues Cease & Desist Order Against Unit
V E N E Z U E L A
CHRYSLER LLC: Magna's Hopes of Acquiring Tooling Equipment Fade
CHRYSLER LLC: Plastech Mulls Other Restructuring Alternatives
CHRYSLER LLC: Plastech to Continue Supplying Parts Until Feb. 27
PETROLEOS DE VENEZUELA: Earns US$896 Mln. in First Half of 2007
PETROLEOS DE VENEZUELA: Opens PDVALOTO Outlets in Catia
PETROLEOS DE VENEZUELA: Wants Freezing Injunction Lifted
X X X X X X
* BOND PRICING: For the Week February 18 - February 22, 2008
- - - - -
=================
A R G E N T I N A
=================
ALASSIA LILIANA: Proofs of Claim Verification Ends on April 11
--------------------------------------------------------------
Carlos Cesar Iglesias, the court-appointed trustee for the
bankruptcy proceeding of Alassia Liliana Demila (s/Extension de
Quiebra de El Fortin S.R.L.), will be verifying creditors'
proofs of claim until April 11, 2008.
Mr. Iglesias will present the validated claims in court as
individual reports on May 27, 2008. The National Commercial
Court of First Instance in Marco Juarez, 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 Alassia Liliana and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Alassia Liliana's
accounting and banking records will be submitted in court on
July 22, 2008.
Mr. Cesar is also in charge of administering Alassia Liliana's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Alassia Liliana Demila
Estados Unidos 896 Corral de Bustos - Infflinger
Departamento Marcos Juarez, Cordoba
Argentina
The trustee can be reached at:
Carlos Cesar Iglesias
Estados Unidos 896 Corral de Bustos - Infflinger
Departamento Marcos Juarez, Cordoba
Argentina
ALITALIA SPA: Lazio Court Rejects Appeal to Cancel Sale Talks
-------------------------------------------------------------
The Italian Regional Administration Court of Lazio rejected a
Feb. 20, 2008, appeal by AP Holding S.p.A., the investment arm
of AirOne S.p.A., to declare null and void a Dec. 28, 2007,
decision of Italy's Ministry of Economy and Finance to commence
exclusive talks to sell the government's 49.9% stake to Air
France-KLM SA, various reports say.
The court, Reuters reports, has yet to rule whether Alitalia can
continue its exclusive negotiations with Air France and whether
AirOne can present a binding offer to acquire Italy's stake.
According to Bloomberg News, the court said AirOne failed to
provide convincing evidence that the sale process should be
halted.
As previously reported in the TCR-Europe, AirOne said it would
present a binding offer once it wins its appeal.
AirOne said its offer will be financially backed by Intesa
Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan Stanley and
Nomura Holdings Plc.
TPG Inc. and Pirelli & S.p.A. chairman Marco Tronchetti Provera
may join AirOne in its Alitalia bid. Reuters said MyChef may
also participate in the offer. AirOne chairman Carlo Toto is
inviting businessmen from the Lombardy region to join the
airline's bid.
As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and
Italy have commenced exclusive sale talks with Air France-KLM.
The carriers have until mid-March to reach an agreement, which
would be approved by the government.
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.
AVILA DANIEL: Proofs of Claim Verification Is Until April 11
------------------------------------------------------------
Carlos Cesar Iglesias, the court-appointed trustee for the
bankruptcy proceeding of Avila Daniel Alberto (s/Extension de
Quiebra de El Fortin S.R.L.), will be verifying creditors'
proofs of claim until April 11, 2008.
Mr. Iglesias will present the validated claims in court as
individual reports on May 27, 2008. The National Commercial
Court of First Instance in Marco Juarez, 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 Avila Daniel and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Avila Daniel's
accounting and banking records will be submitted in court on
July 22, 2008.
Mr. Cesar is also in charge of administering Avila Daniel's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Avila Daniel Alberto
Estados Unidos 896 Corral de Bustos - Infflinger
Departamento Marcos Juarez, Cordoba
Argentina
The trustee can be reached at:
Carlos Cesar Iglesias
Estados Unidos 896 Corral de Bustos - Infflinger
Departamento Marcos Juarez, Cordoba
Argentina
BAT SA: Proofs of Claim Verification Deadline Is April 10
---------------------------------------------------------
Adolfo Jose Santos, the court-appointed trustee for Bat SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until April 10, 2008.
Mr. Santos will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 4 in Buenos Aires, with the assistance of Clerk
No. 8, 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 Bat 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 Bat's accounting and
banking records will be submitted in court.
La Nacion didn't state the submission deadlines for the reports.
Mr. Santos is also in charge of administering Bat's assets under
court supervision and will take part in their disposal to the
extent established by law.
The debtor can be reached at:
Bat SA
Lavalle 1675
Buenos Aires, Argentina
The trustee can be reached at:
Adolfo Jose Santos
Junin 55
Buenos Aires, Argentina
BODY MAGIC: Trustee to File Individual Reports on May 8
-------------------------------------------------------
Laura Garcia, the court-appointed trustee for Body Magic SA's
bankruptcy proceeding, will present validated claims as
individual reports in the National Commercial Court of First
Instance No. 8 in Buenos Aires on May 8, 2008.
Ms. Garcia will be verifying creditors' proofs of claim until
March 25, 2008. She will also submit a general report that
contains an audit of Body Magic's accounting and banking records
on May 22, 2008.
Ms. Garcia is also in charge of administering Body Magic's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Body Magic SA
Avenida General Paz 10634
Buenos Aires, Argentina
The trustee can be reached at:
Laura Garcia
Simbron 3537
Buenos Aires, Argentina
DELAE SRL: Proofs of Claim Verification Deadline Is April 28
------------------------------------------------------------
Ana Maria Blogerman, the court-appointed trustee for Delae SRL's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until April 28, 2008.
Ms. Blogerman will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 2 Buenos Aires, with the assistance of Clerk No. 4,
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 Delae 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 Delae's accounting
and banking records will be submitted in court.
La Nacion didn't state the submission deadlines for the reports.
Ms. Blogerman is also in charge of administering Delae's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Delae SRL
Paraguay 768
Buenos Aires, Argentina
The trustee can be reached at:
Ana Maria Blogerman
Parana 774
Buenos Aires, Argentina
DELTA AIR: Air France KLM Wants to Invest in NW-Delta Deal
----------------------------------------------------------
Amid the merger rumors, Franco-Dutch airline Air France-KLM has
expressed its interest to invest in the entity that would emerge
from a Delta Air Lines Inc. and Northwest Airlines Corp. merger,
The Associated Press reports.
Pierre-Henri Gourgeon, Air France-KLM's deputy CEO, said in an
analysts' conference call that the investment would depend on
whether the U.S. airlines obtain a green light from competition
authorities and probably won't result in any payments before the
end of the year.
The investment is said to be close to US$1,000,000,000 or
EUR680,000,000, reports say.
Observers see a probable consolidation between United Airlines
and Continental Airlines following any Delta-Northwest deal.
This set-up will allow regulators to look at both tie-ups at the
same time.
About Northwest Airlines
Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/--
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about
1,400 daily departures. Northwest is a member of SkyTeam, an
airline alliance that offers customers one of the world's most
extensive global networks. Northwest and its travel partners
serve more than 1000 cities in excess of 160 countries on six
continents. Northwest and its travel partners serve more than
1000 cities in excess of 160 countries on six continents,
including Italy, Spain, Japan, China, Venezuela and Argentina.
The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington represent the
Debtors in their restructuring efforts. The Official Committee
of Unsecured Creditors has retained Akin Gump Strauss Hauer &
Feld LLP as its bankruptcy counsel in the Debtors' chapter 11
cases.
When the Debtors filed for bankruptcy, they listed US$14.4
billion in total assets and US$17.9 billion in total debts. On
Jan. 12, 2007 the Debtors filed with the Court their Chapter 11
Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan &
Disclosure Statement. The Court approved the adequacy of the
Debtors' Disclosure Statement on March 26, 2007. On
May 21, 2007, the Court confirmed the Debtors' Plan. The Plan
took effect May 31, 2007. (Northwest Bankruptcy News,
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
About Delta Air
Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners. Delta flies to
Argentina, Australia and the United Kingdom, among others.
The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007. On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement. In April 25, 2007, the Court confirmed
the Debtors' plan. That plan became effective on
April 30, 2007. The Court entered a final decree closing 17
cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News,
Issue No. 89; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
As of Sept. 30, 2007, the company's balance sheet showed total
assets of US$32.7 billion and total liabilities of US$23
billion, resulting in a US$9.7 billion stockholders' equity. At
Dec. 31, 2006, deficit was US$13.5 billion.
* * *
As reported in the Troubled Company Reporter on Jan. 17, 2008,
Standard and Poor's said that media reports that Delta Air Lines
Inc. (B/Positive/--) entered into merger talks with UAL Corp.
(B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will
have no effect on the ratings or outlook on Delta, but that
confirmed merger negotiations would result in S&P's placing
ratings of Delta and other airlines involved on CreditWatch,
most likely with developing or negative implications.
DYNAMIC INFORMATICA: Claims Verification Is Until April 7
---------------------------------------------------------
Norberto Jose Perrone, the court-appointed trustee for Dynamic
Informatica y Comunicaciones S.A.'s bankruptcy proceeding, will
be verifying creditors' proofs of claim until April 7, 2008.
Mr. Perrone 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 Dynamic Informatica 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 Dynamic Informatica's
accounting and banking records will be submitted in court on
July 4, 2008.
Mr. Perrone is also in charge of administering Dynamic
Informatica's assets under court supervision and will take part
in their disposal to the extent established by law.
The debtor can be reached at:
Dynamic Informatica y Comunicaciones S.A.
Paraguay 643
Buenos Aires, Argentina
The trustee can be reached at:
Norberto Jose Perrone
Constitucion 2894
Buenos Aires, Argentina
GAS ARECO: Court Concludes Reorganization
-----------------------------------------
Gas Areco 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.
GAVELE SA: Court Concludes Reorganization
-----------------------------------------
Gavele 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.
GIAC GAS: Court Concludes Reorganization
----------------------------------------
Giac 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.
KONINKLIJKE AHOLD: ICA Posts SEK2.6BB Operating Income in 2007
--------------------------------------------------------------
Koninklijke Ahold N.V. disclosed the operating results of ICA AB
for the full year and fourth quarter ended Dec. 31, 2007.
The Swede unit posted SEK2.6 billion in operating income on
SEK82.33 billion in consolidated net sales in 2007, compared
with SEK2.3 billion in operating income on SEK67.4 billion in
consolidated net sales in 2006.
Operating income includes SEK596 million in capital gains on
real estate sales and impairment losses on fixed assets.
Operating income excluding these items hiked to SEK2 billion.
The Ahold subsidiary also posted SEK762 million in operating
income on SEK22.14 billion in consolidated net sales for the
fourth quarter ended Dec. 31, 2007, compared with SEK358 million
in operating income on SEK17.63 billion in consolidated net
sales for the fourth quarter ended Dec. 31, 2006.
The unit's total assets have increased by SEK1.81 billion to
SEK37.32 billion since Dec. 31, 2006. The increase is due to
investments in tangible fixed assets as well as increased
current liabilities and inventories.
Cash flow from operating activities amounted to SEK4.17 billion
during the year. The difference is mainly due to higher
operating income and higher deposits in ICA Banken.
Cash flow from investing activities amounted to -SEK149 million.
Cash flow from financing activities was -SEK3.37 billion. The
improved cash flow has been used to repay loans and for the
dividend. The unit's liquid assets totaled SEK4.36 billion as
of Dec. 31, 2007.
The equity/assets ratio was 32.4%. The Group's net debt
excluding ICA Banken was SEK2.34 million.
Investments during the year amounted to SEK2.81 billion. The
largest single investment was the acquisition of four store
properties in Estonia for SEK459 million during the first
quarter.
The Group had an average of 20,081 employees during 2007.
About Ahold
Headquartered in Amsterdam, Koninklijke Ahold N.V. (fka Royal
Ahold) -- http://www.ahold.com/-- retails food through
supermarkets, hypermarkets and discount stores in North and
South America, Europe. It has operations in Argentina. The
company's chain stores include Stop & Shop, Giant, TOPS, Albert
Heijn and Bompreco. Ahold also supplies food to restaurants,
hotels, healthcare institutions, government facilities,
universities, stadiums, and caterers.
* * *
As of Nov. 19, 2007, Koninklijke Ahold carried BB+ Issuer
Default and senior unsecured ratings from Fitch Ratings. Fitch
said the Outlook is Positive. Its Short-term rating is B.
MANNY S MUSICAL: Proofs of Claim Verification Ends on April 11
--------------------------------------------------------------
Aldo Maggiolo, the court-appointed trustee for Manny s Musical
SA's bankruptcy proceeding, will be verifying creditors' proofs
of claim until April 11, 2008.
Mr. Maggiolo will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 23 in Buenos Aires, with the assistance of Clerk
No. 45, 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 Manny s Musical 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 Manny s Musical's
accounting and banking records will be submitted in court.
La Nacion didn't state the submission deadlines for the reports.
Mr. Maggiolo is also in charge of administering Manny s
Musical's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Manny s Musical SA
Santo Domingo 3076/78
Buenos Aires, Argentina
The trustee can be reached at:
Aldo Maggiolo
Paraguay 610
Buenos Aires, Argentina
NORTHWEST AIR: Air France KLM Wants to Invest in NW-Delta Deal
--------------------------------------------------------------
Amid the merger rumors, Franco-Dutch airline Air France-KLM has
expressed its interest to invest in the entity that would emerge
from a Delta Air Lines Inc. and Northwest Airlines Corp. merger,
The Associated Press reports.
Pierre-Henri Gourgeon, Air France-KLM's deputy CEO said in an
analysts' conference call that the investment would depend on
whether the U.S. airlines obtain a green light from competition
authorities and probably won't result in any payments before the
end of the year.
The investment is said to be close to US$1,000,000,000 or
EUR680,000,000, reports say.
Observers see a probable consolidation between United Airlines
and Continental Airlines following any Delta-Northwest deal.
This set-up will allow regulators to look at both tie-ups at the
same time.
About Delta Air
Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners. Delta flies to
Argentina, Australia and the United Kingdom, among others.
The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007. On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement. In April 25, 2007, the Court confirmed
the Debtors' plan. That plan became effective on
April 30, 2007. The Court entered a final decree closing 17
cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News,
Issue No. 90; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
As of Sept. 30, 2007, the company's balance sheet showed total
assets of US$32.7 billion and total liabilities of US$23
billion, resulting in a US$9.7 billion stockholders' equity. At
Dec. 31, 2006, deficit was US$13.5 billion.
About Northwest Airlines
Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/--
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about
1,400 daily departures. Northwest is a member of SkyTeam, an
airline alliance that offers customers one of the world's most
extensive global networks. Northwest and its travel partners
serve more than 1000 cities in excess of 160 countries on six
continents. Northwest and its travel partners serve more than
1000 cities in excess of 160 countries on six continents,
including Italy, Spain, Japan, China, Venezuela and Argentina.
The company and 12 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce
R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq.,
at Cadwalader, Wickersham & Taft LLP in Washington represent the
Debtors in their restructuring efforts. The Official Committee
of Unsecured Creditors has retained Akin Gump Strauss Hauer &
Feld LLP as its bankruptcy counsel in the Debtors' chapter 11
cases.
When the Debtors filed for bankruptcy, they listed US$14.4
billion in total assets and US$17.9 billion in total debts. On
Jan. 12, 2007 the Debtors filed with the Court their Chapter 11
Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan &
Disclosure Statement. The Court approved the adequacy of the
Debtors' Disclosure Statement on March 26, 2007. On
May 21, 2007, the Court confirmed the Debtors' Plan. The Plan
took effect May 31, 2007. (Northwest Bankruptcy News,
Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
SUSPIROS SA: Proofs of Claim Verification Deadline Is May 2
-----------------------------------------------------------
Fernando J. Marziale y Reinaldo Pireni, integrantes del Estudio
Marziale Pireni & Asoc. -- the court-appointed trustee for
Suspiros S.A.'s bankruptcy proceeding -- will be verifying
creditors' proofs of claim until May 2, 2008.
Fernando J. will present the validated claims in court as
individual reports on June 18, 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 Suspiros 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 Suspiros' accounting
and banking records will be submitted in court on Aug. 19, 2008.
Fernando J. is also in charge of administering Suspiros' assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Fernando J. Marziale y Reinaldo Pireni
Integrantes del Estudio Marziale Pireni & Asoc.
Avenida Callao 930
Buenos Aires, Argentina
* ARGENTINA: Fitch Holds Local Cur. Issuer Default Rating at B
--------------------------------------------------------------
Fitch Ratings has affirmed Argentina's sovereign ratings as:
-- Long-term local currency issuer default rating at 'B';
-- Country ceiling at 'B+';
-- Performing bonds in foreign and local currency governed by
Argentine law at 'B/RR4';
-- Performing bonds in foreign currency governed by foreign
law at 'B-/RR4'
-- Short-term foreign IDR at 'B';
-- Long-term foreign currency IDR remains at 'RD'.
The Rating Outlook on the local currency IDR is Stable.
Fitch also affirms bonds currently in default that were not
tendered in the 2005 distressed debt exchange at 'CC/RR4' for
senior unsecured notes and 'CCC-RR3' for collateralized Brady
bonds.
Argentina's ratings reflect the country's twin surpluses, as
well as its manageable financing requirements for the forecast
period through a combination of intra-public sector financing,
private placements and local issuances. However, with limited
access to international capital markets, Argentina could
encounter refinancing difficulties if market conditions
deteriorate sharply. In an environment of increasing risk
aversion, the lack of credibility of official inflation data and
concerns about the sustainability of the current policy
framework could limit access to local bond markets as well,
given the importance of non-resident investors.
"A less favorable external environment combined with the
structural limitations of the domestic economy is likely to
weigh on growth prospects and erode the country's twin surpluses
in the forecast period," said Fitch's Latin America Sovereign
Group Associate Director, Erich Arispe.
"As a result, the incoming administration has the important task
of adjusting the current economic model through the
rationalization of fiscal expenditure, policies to address both
inflationary pressures and transparency issues regarding
official data, and the normalization of relations with external
creditors to increase the availability of financing sources,"
added Mr. Arispe.
Perceptions of higher than officially reported inflation could
endanger future inflation dynamics, negatively affect investment
and savings decisions, and make the rationalization of fiscal
expenditure more difficult. The greater weight of salaries,
pensions and transfers to the private sector including
subsidies, have increased the inflexibility of government
expenditure, while revenues remain highly pro-cyclical and
include distortionary taxes.
Furthermore, even after the 2005 debt restructuring, and four
years of fiscal surpluses and record high economic growth,
public and external debt ratios are among the highest across
rated sovereigns. Argentina's public debt, at 70% of GDP in
2007, doubles Fitch's 'B' median. The country's net external
debt relative to current external receipts (CXR) is the highest
of all speculative grade sovereigns at 233%. External liquidity
is improving as international reserves grow, but it is still
worse than most 'B' rated sovereigns.
Improvement in the policy framework could buttress the country's
creditworthiness. Reduced interference with price mechanisms as
well as an improved climate for investment in productive
sectors, through enhanced perceptions about rule of law and
contract enforcement, would help sustain high rates of growth
over the medium-term. This, in turn, would accelerate the
convergence of key government and external debt ratios toward
peer medians. Finally, a tightening in monetary policy, rather
than heterodox responses to inflation and a reduced reliance on
distortionary export and financial transaction taxes, would also
support investor confidence.
Fitch maintains its view that a normalization of relations with
creditors is a factor for removing the long-term foreign
currency IDR out of Restrictive Default. Fitch would remove the
'RD' if Argentina were to open a new exchange offer for holdouts
that was broadly accepted or if it could resume regular bond
issues in international capital markets, without incurring the
risk that proceeds or debt service that would be attached by
foreign courts. Continued access to financing in local markets
from non-resident investors would also be viewed favorably.
===========
B E L I Z E
===========
CONTINENTAL AIRLINES: Orders Additional 27 Aircraft From Boeing
---------------------------------------------------------------
Continental Airlines has added 27 aircraft to its firm order
positions at Boeing, including eight new 777 and 19 new Next-
Generation 737 (737NG) aircraft.
The aircraft orders give the airline the flexibility to replace
less efficient airplanes and to pursue growth opportunities.
This new order brings Continental's total firm commitments to
111 new Boeing aircraft (25 Boeing 787s, eight Boeing 777s and
78 Boeing 737s) for delivery over the next six years. In
addition, the airline has options to purchase a total of 102
additional Boeing aircraft. Continental has taken delivery of
five 737NG aircraft this year and plans to take delivery of 27
additional 737NG aircraft by the end of 2008.
* 777s for International Growth
Already operating 20 777 aircraft globally, Continental will use
the eight additional aircraft for long-haul international
routes, such as the Newark Liberty-Shanghai route that is
scheduled to start in 2009. The need for international
widebodies is also driven by airline's commencement of service
to London Heathrow next month, which represents the company
largest-ever expansion into a single airport in one day.
Continental will begin service to Heathrow twice daily from
Liberty and twice daily from Houston.
* 737NGs Provide Fleet Flexibility
One of the world's most popular and reliable aircraft, the
Boeing 737NGs feature advanced technology for greater
operational efficiencies. The 19 additional 737NGs, along with
other 737NG aircraft already on order, will give the airline
flexibility to continue to grow while replacing less efficient
737 Classic aircraft, such as the company's 737-300 and 737-500
aircraft.
* Continues Focus on Fuel Saving & Environmental Initiatives
In addition to investing in new fuel efficient aircraft,
Continental continues to enhance its existing fleet with
fuel-saving technology. The airline has installed blended
winglets on more than 200 mainline aircraft, which reduces drag
and lowers emissions, noise and fuel burn by up to five percent.
Continental was the launch customer for winglets on the Boeing
757-200, 737-900 and 737-500 aircraft types.
The airline has also reduced fuel consumption on its long-range
Boeing 777 aircraft by installing advanced-technology 3D Aero
Blades on the GE90 engines.
* Well-Managed Fleet Plan
With its focused fleet modernization program, the airline has
acquired a natural fuel hedge and an advantage over its
competitors. Continental's 737NG aircraft burn 50 percent less
fuel per available seat mile compared to competitors who operate
DC-9 aircraft and 30 percent less fuel per available seat mile
compared to MD80s.
Since announcing its fleet modernization program a decade ago,
Continental has reduced the number of aircraft types in its
fleet from nine to three and reached its goal of operating one
of the most efficient fleets among U.S. airlines. More than 70
percent of its fleet consists of common-rated Boeing 737 series
aircraft, which allow for greater efficiencies in pilot
training, enhanced crew flexibility, increased savings from
simplified maintenance and reduced spare parts inventory costs.
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 2,900 daily departures throughout Belize, Mexico, Europe
and Asia, serving 144 domestic and 139 international
destinations. More than 500 additional points are served via
SkyTeam alliance airlines. With more than 45,000 employees,
Continental has hubs serving New York, Houston, Cleveland and
Guam, and together with Continental Express, carries
approximately 69 million passengers per year.
* * *
As reported in the Troubled Company Reporter on Dec. 27, 2007,
Fitch Ratings affirmed Continental Airlines 'B-' issuer default
rating with a stable outlook.
=============
B E R M U D A
=============
ELAN CORP: Posts US$405 Million Net Loss for Year Ended 2007
------------------------------------------------------------
Elan Corporation plc posted its unaudited full-year financial
results for 2007.
The company reported net loss of US$405 million on revenues of
US$759.4 million for the year ended Dec. 31, 2007, compared with
net loss of US$267.3 million on revenues of US$560.4 million for
the same period in 2006.
At Dec. 31, 2007, the company's unaudited consolidated balance
sheet showed US$1.78 billion in total assets, US$2.02 billion in
total liabilities and US$234.7 million in shareholders' deficit.
Financial Outlook 2008
Elan expected total revenues to grow by over 30% from 2007 level
and approach, if not exceed, US$1 billion driven by a continued
strong performance from Tysabri.
The gross profit margin is expected to be in the range of 43% to
48%, reflecting the increasing proportion of revenues from
Tysabri.
Aggregate SG&A and R&D expenses are expected to be in the range
of US$625 million to US$675 million. SG&A expenses are expected
to be less than the total amount in 2007 as a result of the
reduction in the sales force and related commercial
infrastructure and non-cash amortization expenses associated
with Maxipime and Azactam. This decrease is expected to be
partially offset by the increase in SG&A spend on Tysabri,
particularly as it relates to the launch of Tysabri for Crohn's
disease (CD) in the United States.
Elan's investment in R&D is expected to make up over 50% of the
US$625 million to US$675 million spend, and will fund the
increasing number of late stage clinical trials in Alzheimer's
disease, as well as our expanded effort in autoimmune diseases,
particularly as it relates to Tysabri.
Adjusted EBITDA for Elan is targeted to be less than negative
US$50 million for the full-year 2008, and to get to breakeven in
the second half of 2008.
The company also expect to make a milestone payment of US$75
million to Biogen Idec during 2008, in order to maintain our
percentage share of Tysabri at around 50% for annual global in-
market net sales of Tysabri that are in excess of US$700
million. This payment is not reflected in the financial
guidance above.
"Our key operating principles of patient focus, disciplined
execution, and delivery of tangible results and outcomes were
achieved in 2007. The continued traction for Tysabri in MS and
the approval for Crohn's disease in the US; the advancement of
our AD clinical programs for AAB-001 and ELND-005; and the on-
going progress in our preclinical discovery efforts all provide
a strong foundation to maintain and potentially increase our
positive momentum in 2008," Kelly Martin, Elan's president and
CEO commented.
"We remain completely committed to advancing our science for
patients and clinicians around the world, increasing therapeutic
options for those who are directly affected by chronic diseases
such as Alzheimer's, Parkinson's, Multiple Sclerosis and
Crohn's," Mr. Martin added.
"We are very pleased with the robust financial performance of
the business during 2007, reflecting excellent progress across
our businesses and development pipeline. Revenues grew by 36%
driven by the continued strong growth of Tysabri, with over
21,000 patients on therapy at the end of 2007, which was key in
reducing our Adjusted EBITDA losses by two-thirds to $30.4
million in 2007," Shane Cooke, Elan's executive vice president
and chief financial officer commented on the company's financial
results and 2008 outlook.
Mr. Cooke added, "The 2007 net loss of US$405.0 million was,
however, higher than in 2006 mainly due to the inclusion of
US$103.4 million in charges in 2007 related to the introduction
of a generic competitor to Maxipime, the consolidation of our
activities on the west coast of the US and the early repayment
of debt. In 2006, the net loss benefited from the inclusion of
US$63.4 million in net gains related principally to a gain on
the sale of the EU rights to Prialt and an arbitration award."
"With the recent approval of Tysabri in Crohn's disease in the
US and the growing number of MS patients benefiting from Tysabri
use, we remain confident that we will achieve our target of
having 100,000 patients on Tysabri therapy by the end of 2010.
We look forward to 2008 with great optimism and see revenues
growing by over 30% towards the US$1 billion mark," Mr. Cooke
concluded.
About the Company
Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) --
http://www.elan.com/-- is a neuroscience-based biotechnology
company. Elan shares trade on the New York, London and Dublin
Stock Exchanges. The company has locations in Bermuda and
Japan.
* * *
As of Feb. 21, 2008, Elan Corp. plc carried Moody's Investors
Service's long-term corporate family rating of B3, probability
of default rating of B2 with stable outlook.
Standard & Poor's gave the company B rating on long-term foreign
issuer credit and B rating on long-term local issuer credit with
positive outlook.
=============
B O L I V I A
=============
INTERMEC INC: Hires Dennis Faerber as SVP for Global Operations
---------------------------------------------------------------
Intermec Inc. has appointed Dennis Faerber as its Senior Vice
President of Global Supply Chain Operations.
Mr. Faerber brings operational experience to the Intermec
organization, particularly in the areas of supply chain
transformation, process development, technical operations,
manufacturing systems, quality operations, materials management,
and engineering.
Mr. Faerber joins Intermec from Applied Materials, where he held
the position of Corporate Vice President of global supply chain
operations. Before Applied Materials, he served as KLA-Tencor's
Group Vice President and Chief Quality Officer, responsible for
developing and implementing the company's quality strategy.
Previous to KLA-Tencor, Mr. Faerber held senior management
positions at Advanced Energy, Agilent Technologies, and Hewlett-
Packard.
Mr. Faerber will report to Patrick Byrne, Intermec President and
Chief Executive Officer. "Dennis has a proven track record of
operational excellence and supply chain transformation. This is
a core strategy of Intermec going forward and we are delighted
to have a leader of Dennis' experience and capabilities join
Intermec at this time."
About Intermec Inc.
Intermec Inc. -- http://www.intermec.com/-- develops,
manufactures and integrates technologies that identify, track
and manage supply chain assets. Core technologies include RFID,
mobile computing and data collection systems, bar code printers
and label media.
The company has locations in Australia, Bolivia, Brazil, China,
France, Hong Kong, Singapore and the United Kingdom.
* * *
Standard & Poor's Rating Services raised its ratings on Everett,
Washington-based Intermec Inc. to 'BB-' from 'B+'. The upgrade
reflects expectations that Intermec will sustain current levels
of profitability and leverage. S&P said the outlook is stable.
===========
B R A Z I L
===========
BANCO BONSUCESSO: Launching Three Offices This Year
---------------------------------------------------
Banco Bonsucesso Chief Executive Officer Paulo Henrique Pentagna
Guimaraes told Business News Americas that the bank will launch
three new offices in 2008.
Banco Bonsucesso will use its recently established platform in
Sao Paulo to increase its middle-market loan portfolio,
BNamericas says, citing Mr. Guimaraes.
Mr. Guimaraes commented to BNamericas, "The increase in middle-
market loans is a reflection of economic growth in Brazil and
the process is not going to stop now."
Banco Bonsucesso S.A. is a Brazil-based bank focused in granting
consigned (payroll) credit to federal, state and municipal
public servants as well as retirees. Additionally, the Bank
services the middle market private business segment with
financial products (securitization) mostly structure using
accounts receivable as a basis. As of December 2006,
securitization products accounted for 20% of the Bank's
portfolio. The Bank holds operations across Brazil. As of the
first quarter of 2007, the Bank had 801 active representatives
located in most Brazilian state and municipalities.
* * *
On Sept. 10, 2007, Moody's assigned a Ba2 foreign currency
deposit rating for Banco Bonsucesso.
BANCO BONSUCESSO: May Take Larger Banking Partner
-------------------------------------------------
Banco Bonsucesso Chief Executive Officer Paulo Henrique Pentagna
Guimaraes told Business News Americas that the bank is open to
taking a larger domestic or foreign banking partner.
Banco Bonsucesso would however reject an outright acquisition
offer, BNamericas says, citing Mr. Guimaraes.
"We haven't had any conversations with big banks. We're not for
sale but we're not closed to the idea of selling a part of our
business to either a domestic or foreign bank," Mr. Guimaraes
commented to BNamericas.
According to BNamericas, Banco Bonsucesso said in February 2007
that it hoped an initial public offering on the Sao Paulo stock
exchange Bovespa would bring in at least BRL600 million. The
bank later withdrew the proposal.
Mr. Guimaraes told BNamericas that shareholders injected capital
into Banco Bonsucesso and increased shareholder equity 146% over
the course of the year to BRL324 million in December 2007. The
bank has since postponed its initial public offering plans in
light of how share prices of financial institutions have taken a
fall since 2007.
Mr. Guimaraes commented to BNamericas, "The market doesn't know
how to price shares in Brazilian banks. It will only see how
much Brazilian banks are worth when there's an acquisition.
There's nowhere else in the world where banks are as profitable
as here in Brazil."
Banco Bonsucesso S.A. is a Brazil-based bank focused in granting
consigned (payroll) credit to federal, state and municipal
public servants as well as retirees. Additionally, the Bank
services the middle market private business segment with
financial products (securitization) mostly structure using
accounts receivable as a basis. As of December 2006,
securitization products accounted for 20% of the Bank's
portfolio. The Bank holds operations across Brazil. As of the
first quarter of 2007, the Bank had 801 active representatives
located in most Brazilian state and municipalities.
* * *
On Sept. 10, 2007, Moody's assigned a Ba2 foreign currency
deposit rating for Banco Bonsucesso.
BANCO CRUZEIRO: Moody's Puts Ba1 Rating on US$100MM Senior Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 global long-term
foreign currency rating to Banco Cruzeiro do Sul S.A.'s US$100
million senior unsecured notes due in August 2009. The notes
are being issued under the the bank's US$1 billion Global Euro
Medium-term Note Program. The outlook on the rating is stable.
Banco Cruzeiro had assets of BRL4,248.6 million and equity of
BRL931.5 million, as of September 2007.
Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul
(Bovespa - CZRS4) -- http://www.bcsul.com.br/-- is a
private-sector multiple bank with operations in the consumer
segment, through paycheck-deductible loans to public employees
and social security beneficiaries, and in the corporate segment,
offering middle-market companies short-term loans usually backed
by receivables. The bank's core business is lending to civil
servants, with payments automatically deducted from payrolls.
BANCO DO BRASIL: Launching Retail Bank & Money Transfer Co.
-----------------------------------------------------------
Banco do Brasil said that it will launch a retail bank and a
money transfer company in the U.S.
Banco do Brasil said it wants to move into the retail segment in
the U.S.
Business News Americas relates that Banco do Brasil secured
authorization from the Brazilian central bank to proceed with
the launching of the new U.S. unit. The bank sill awaits
approval from U.S. Regulators.
Banco do Brasil told BNamericas that it would initially invest
US$44 million to offer Brazilians in the U.S.:
-- money transfers,
-- deposits,
-- investment services,
-- credit cards, and
-- other financial services.
A trader in Rio de Janeiro told BNamericas that the initial
investment was "insignificant" compared to the BRL342 billion in
total assets Banco do Brasil had in September 2007.
"If you look at Bradesco or Itau or any of the big banks in
Brazil, whether public or private, the businesses they have
abroad are marginal. The big business is here in Brazil and
business is good," the trader commented to BNamericas.
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and more than 7,000
points of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Nov. 6, 2007, Moody's assigned a Ba2 foreign currency deposit
rating to Banco do Brasil. On Aug. 23, 2007, Moody's assigned a
Ba2 long-term bank deposit rating on the bank with a stable
outlook.
In May 2007, Standard & Poor's Ratings Services raised its long-
term foreign currency counterparty credit rating on Brazilian
government-related entity Banco do Brasil to 'BB+' from 'BB',
after Brazil's foreign currency sovereign credit rating was
upgraded to BB+.
COSAN SA: Strong Exports Prompt S&P to Hold Credit Ratings at BB
----------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its global scale
'BB' local and foreign currency corporate credit rating on
Brazil-based sugar-cane mill Cosan S.A. Industria e Comercio.
At the same time, S&P affirmed the 'BB' ratings on the company's
US$450 million perpetual bonds and US$400 million senior
unsecured notes due 2017. The outlook on the corporate credit
rating is stable.
"The stable outlook reflects our expectations that Cosan will
maintain its leading market position in Brazil and its strong
export orientation," said S&P's credit analyst Vivian Zietemann,
"although we believe market conditions for 2008-2009 should
prevent the company from delivering robust operational
efficiency."
Headquartered in Sao Paulo, Brazil, Cosan S.A. Industria e
Comercio, is the third largest sugar producer in the world. In
2004/2005 it crushed more than 26 million tons of sugar cane in
fourteen mills located in the Central South region of Brazil,
with sugar sales of 2.3 million tons and ethanol sales of 825
million liters.
DELPHI CORP: Gets Court Nod for US$2.7 Bil. Steering Biz Sale
-------------------------------------------------------------
Delphi Corporation received final approval from the U.S.
Bankruptcy Court for the Southern District of New York to sell
its global steering and halfshaft business to Steering Solutions
Corporation, an affiliate of Platinum Equity, LLC.
The sale includes all facets of the US$2.7 billion global
steering and halfshaft business, which produces electric and
hydraulic steering systems, steering columns, halfshafts and
constant velocity joints for original equipment manufacturers
around the world. The final closing of the global steering
business sale is targeted for March 31, 2008.
More information on the final sale approval and the court filing
is available at http://www.delphidocket.com/
Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of
vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than 75
million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.
(Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-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: Hephaestus Unit Wins Bearings Business Auction
-----------------------------------------------------------
Delphi Corporation entered into a purchase agreement with
Kyklos, Inc., a wholly owned subsidiary of Hephaestus Holdings,
Inc., for the sale of its bearings business. The agreement
follows Kyklos being declared the successful bidder in an
auction conducted on Feb. 21, 2008, as part of a sale process
under Section 363 of the United States Bankruptcy Code.
As reported in the Troubled Company Reporter on Jan. 18, 2008,
Delphi Automotive Systems LLC and Delphi Technologies, Inc.,
debtor-subsidiaries of Delphi Corp., planned to sell their
global bearings business to ND Acquisition Corp., or to another
party submitting a higher and better offer for the business.
ND Acquisition, a wholly owned subsidiary of private equity
investment firm Resilience Capital Partners LLC, agreed to
submit a stalking horse bid of US$44,200,000, subject to
adjustments, for the Bearings Business.
The sale of the bearings business is subject to certain
customary closing conditions, including approval by the U.S.
Bankruptcy Court for the Southern District of New York at a
hearing on March 19, 2008. The closing of this transaction is
targeted to occur on or before April 30, 2008.
Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of
vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than 75
million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on
Dec. 20, 2007. The Court confirmed the Debtors' First Amended
Plan on Jan. 25, 2008.
(Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-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.
DUKE ENERGY: Earns BRL72.7 Million in 2007
------------------------------------------
Duke Energy Paranapanema said that its net profit decreased
15.6% to BRL72.7 million in 2007, compared to BRL86.2 million in
2006.
Business News Americas relates that Duke Energy's gross
operating revenues increased 9.8% to BRL729 million in 2007,
from 2006. Its net revenues rose 5.7% to BRL634 million.
Ebitda increased by 9.3% to BRL404 million in 2007, compared to
BRL369 million in 2006.
Decreased profits are partly due to debt payments and inflation,
BNamericas states.
Duke Energy International Geracao Paranapanema SA is engaged in
the generation of electric power in Sao Paulo, Brazil. The
Company is a subsidiary of Duke Energy International,
representing its primary interest in the Brazilian market. The
Company operates eight hydroelectric generation facilities with
2,237 net megawatts of capacity on the Paranapanema River in
southwestern Sao Paulo. Its Paranapanema River facilities
include Canoas I, generating 83 megawatts; Canoas II, generating
72 megawatts; Capivara, generating 640 megawatts; Chavantes,
generating 414 megawatts; Jurumirim, generating 98 megawatts;
Rosana, generating 372 megawatts; Salto Grande, generating 74
megawatts, and Taquarucu, generating 554 megawatts. All of the
plants encompass reservoirs. Harnessing the river has enabled
stabilization of 90.5% of the average flow, which helps flood
prevention and irrigation of the surrounding region.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 3, 2008, Moody's Investors Service assigned a Ba2 global
local currency corporate family rating with a stable outlook to
Duke Energy International, Geracao Paranapanema S.A. In
addition, Moody's assigned an A1.br Brazil National Scale
corporate family rating to Duke Energy. This is the first time
Moody's has assigned a rating to Duke Energy. The rating is not
constrained by Brazil's foreign currency country ceiling
(Baa3/Stable).
GOL LINHAS: Unit's Web Site Gets 4.4 Million Visits in 4th Qtr.
---------------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of
Brazilian airlines GOL Transportes Aereos S.A. and VRG
Linhas Aereas S.A., reported that GOL Transportes Aereos
achieved 15 percent growth in Internet sales in 2007. The
Company recorded approximately BRL4.3 billion in gross ticket
sales through its Web site -- http://www.voegol.com.br-- which
accounted for 80% of the company's BRL5.4 billion total gross
sales in 2007. Gross operating revenues from passengers flown
in 2007 were approximately BRL4.7 billion, and total net
operating revenues were approximately BRL5 billion.
The company's online ticket purchasing function simplifies the
travel process for passengers and provides travel agencies with
access to new markets, increased productivity and reduced costs.
"Double-digit growth in online ticket sales is a boon to
customers and travel agencies looking to simplify the purchasing
process and reduce costs," says GOL Linhas Vice President of
Marketing and Services, Tarcisio Gargioni. In the fourth
quarter of 2007, the company's Web site registered an average of
4.4 million unique visitors per month, a 23% increase over the
same period in 2006.
Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL
Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) --
http://www.voegol.com.br-- through its subsidiary, GOL
Transportes Aereos S.A., provides airline services in Brazil,
Argentina, Bolivia, Uruguay, and Paraguay. The company's
services include passenger, cargo, and charter services. As of
March 20, 2006, Gol Linhas provided 440 daily flights to 49
destinations and operated a fleet of 45 Boeing 737 aircraft.
The company was founded in 2001.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 25, 2007, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Gol Linhas Aereas
Inteligentes S.A. Fitch also affirmed the outstanding US$200
million perpetual bonds and US$200 million of senior notes due
2017 at 'BB+' as well as the company's 'AA-' (bra) national
scale rating. Fitch said the rating outlook is stable.
HRP MYRTLE: Moody's Puts Probability of Default Rating at Caa1
--------------------------------------------------------------
Moody's Investors Service lowered the probability of default
rating for HRP Myrtle Beach Operations, LLC to Caa1 from B3 and
affirmed its Caa1 corporate family rating, as well as the B2
rating on its senior secured floating rate notes due 2012 and
the Caa2 rating on the 12.5% junior secured notes due 2013.
As the opening of the park approaches, HRP could access to its
$15 million senior secured revolving credit facility, and
Moody's now incorporates this facility in the waterfall of
liabilities, consistent with Moody's Loss Given Default
Methodology. (HRP has not activated or drawn on the revolver,
but it became available 60 days prior to the park's opening.)
The bank facility includes financial covenants which would allow
lenders to trigger a default if HRP performance falls materially
below expectations. As such, Moody's believes default risk has
increased relative to the prior assumption of an all bond
structure (which lacked financial covenant protection), leading
to the downgrade of the PDR to Caa1. At the same time, an
earlier default would likely preserve asset value, contributing
to greater recovery prospects, and Moody's revised assumptions
for enterprise wide recovery to 50% from 35%. The higher
recovery results in slightly lower loss rates on the securities,
which changed to LGD2, 26% from LGD3, 41% on the senior secured
bonds and to LGD5, 72% from LGD 5, 85% on the junior secured
bonds.
The outlook remains stable.
HRP Myrtle Beach Operations, LLC:
-- Affirmed Caa1 Corporate Family Rating;
-- Downgraded Probability of Default Rating to Caa1 from B3;
-- Affirmed B2 Senior Secured Bonds Rating, LGD2, 26%;
-- Affirmed Caa2 Junior Secured Bonds Rating, LGD5, 72%;
-- Outlook: Stable.
The Caa1 corporate family rating continues to reflect the high
financial risk of this start-up project, which has consumed cash
since construction began in May 2006, as well as its modest
equity component relative to other rated entertainment
development phase projects. However, the transaction structure
somewhat mitigates the intermediate term development risk. The
interest reserve account has funds sufficient to cover the next
two cash coupon payments (bondholders received the first three
cash coupon payments on time, funded through this account).
Given that construction remains on track for an April 2008 open,
cash inflow should commence shortly after the next coupon
payment on April 1, 2008. Furthermore, S&P continues to believe
that the Hard Rock Park business plan offers the potential for
cash flow to service the debt, supported by the attractive
demand characteristics of Myrtle Beach as a destination market
and the value of the Hard Rock brand.
The B2 rating on the senior secured bonds ($155 million face),
two notches higher than the corporate family rating, reflects
the substantial junior debt cushion provided by both the Caa2
rated $100 million of junior secured bonds and the approximately
$64 million of PIK notes issued by holding company HRP Myrtle
Beach Holdings, LLC. Senior secured bondholders benefit from
full security in all assets, including land; their claim is
junior to only the $15 million revolving credit facility.
HRP Myrtle Beach Operations, LLC, -- http://www.hardrock.com--
a Delaware limited liability company, is designing, developing,
constructing, financing and equipping and will own and operate
Hard Rock Park, an approximately 140-acre rock and roll themed
park in Myrtle Beach, South Carolina, under a license agreement
with Hard Rock International. Hard Rock International, Inc.,
owned by The Rank Group Plc, operates 122 Hard Rock Cafes and 13
Hard Rock Hotels and Casinos in more than 42 countries,
including Thailand, the Philippines, the United Kingdom and
Brazil.
==========================
C A Y M A N I S L A N D S
==========================
DD EURO GROWTH FUND: Proofs of Claim Filing Deadline Is March 6
---------------------------------------------------------------
DD Euro Growth Fund's creditors have until March 6, 2008, to
prove their claims to Joshua Grant and Jan Neveril, 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.
DD Euro's shareholder decided on Jan. 14, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Joshua Grant and Jan Neveril
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
DD EURO GROWTH MASTER: Proofs of Claim Filing Is Until March 6
--------------------------------------------------------------
DD Euro Growth Master Fund's creditors have until March 6, 2008,
to prove their claims to Joshua Grant and Jan Neveril, 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.
DD Euro's shareholder decided on Jan. 14, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Joshua Grant and Jan Neveril
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
FS CLO: Proofs of Claim Filing Deadline Is March 6
--------------------------------------------------
FS CLO I HOLDCO's creditors have until March 6, 2008, to prove
their claims to Chris Watler 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.
FS CLO's shareholder decided on Jan. 21, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Chris Watler and Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
J-FUND LIMITED: Proofs of Claim Filing Deadline Is March 6
----------------------------------------------------------
J-Fund Limited's creditors have until March 6, 2008, to prove
their claims to Jan Neveril 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.
J-Fund's shareholders decided on Jan. 22, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril and Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
YY PROPERTY: Proofs of Claim Filing Ends on February 28
-------------------------------------------------------
YY Property Holdings' creditors have until Feb. 28, 2008, to
prove their claims to John Cullinane and Derrie Boggess, 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.
YY Property's shareholder decided on Jan. 29, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane and Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
=========
C H I L E
=========
ROCK-TENN CO: To Offer US$200 Million Senior Notes due 2016
-----------------------------------------------------------
Rock-Tenn Company, in connection with its proposed acquisition
of Southern Container Corp., it intends to offer, pursuant to
Rule 144A and Regulation S under the Securities Act of 1933, as
amended, an unregistered offering of US$200,000,000 aggregate
principal amount of Senior Notes due 2016.
The notes will be guaranteed on a senior unsecured basis by all
of Rock-Tenn's domestic subsidiaries that guarantee obligations
under its amended and restated credit facilities. The notes
will rank equally in right of payment with all of Rock-Tenn's
existing and future unsecured senior debt and senior in right of
payment to all of Rock-Tenn's existing and future subordinated
debt. The notes will be effectively subordinated to any of
Rock-Tenn's and the Guarantors' existing and future secured debt
to the extent of the value of the assets securing such debt
including all borrowings under the amended and restated credit
facilities. The notes will be structurally subordinated to all
existing and future liabilities of Rock-Tenn's subsidiaries that
do not issue guarantees of the notes. The specific terms of the
notes will be determined at pricing. If the notes are not
freely tradable without a restrictive legend as of the 365th day
after the date the notes are issued, Rock-Tenn will offer to
exchange the unregistered notes for substantially identical
registered notes.
The net proceeds from the offering, together with cash on hand
and borrowings under Rock-Tenn's amended and restated credit
facilities, will be used to finance the acquisition of Southern
Container Corp., to refinance Rock-Tenn's existing senior credit
facility, and to pay for fees and expenses incurred in
connection with the acquisition and the related transactions.
The notes have not been registered under the Securities Act of
1933, as amended, or the securities laws of any state and may
not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements
under the Securities Act and any applicable state securities
laws.
Headquartered in Norcross, Georgia, Rock-Tenn Company (NYSE:
RKT) -- http://www.rocktenn.com/-- provides a wide range of
marketing and packaging solutions to consumer products
companies, with operating locations in the United States,
Canada, Mexico, Argentina and Chile. The company is one of
North America's manufacturers of packaging products,
merchandising displays and bleached and recycled paperboard.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 31, 2008, Moody's Investors Service confirmed Rock-Tenn
Company's Ba2 corporate family rating and the Ba3 rating on the
company's existing senior notes. At the same time Moody's
assigned a Ba2 rating to the company's new US$1 billion senior
secured credit facilities and a Ba3 rating to the company's new
US$400 million senior unsecured notes. Moody's said the rating
outlook is negative.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO INTERCONTINENTAL: Defense Seeking to Present Evidence
-----------------------------------------------------------
Juarez and Vinicio Castillo, the defense attorneys of former
Banco Intercontinental head Ramon Baez Figueroa in the bank's
fraud case, are asking the court that they be allowed to present
videos and documents containing operations carried out in the
bank, Dominican Today reports.
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, the court rejected a motion by former Banco
Intercontinental Vice President Vivian Lubrano's defense
attorneys to present a video containing some of the testimonies
of witnesses who had testified in the lower court.
Dominican Today relates that Messrs. Castillo insisted that the
videos and documents would prove that operations at the bank and
the purchase of media outlets are legal.
Juarez Castillo said that the purchase of the major news network
RNN was done legally and publicly that even then president the
Dominican Republic Hipolito Mejia and the cardinal Nicolas de
Jesus Lopez Rodriguez participated in its inaugural, Dominican
Today states.
Represented by Jose Lorenzo Fermin, the complainants sought to
increase Mr. Figueroa's imprisonment to 20 years. They also
motioned to include money laundering charges, Dominican Today
says.
Last year, Mr. Figueroa filed an appeal on the National District
Court's sentence in the bank's fraud case. The court sentenced
Mr. Figueroa for his role in Banco Intercontinental's 2003
bankruptcy with:
-- 10 years imprisonment,
-- over DOP63-billion in damages, and
-- a DOP2.5-billion fine.
Messers. Castillo rebuked money laundering allegations made
against their client and argued the punishment for their
client's alleged crime, Dominican Today states.
Located in the Dominican Republic, Banco Intercontinental aka
Baninter collapsed in 2003 as a result of a massive fraud and a
resulting deficit of US$2.2 billion. As a consequence, all of
its branches were closed. The bank's current and savings
accounts holders were transferred to the bank's new owner --
Scotiabank. The bankruptcy of Baninter was considered the
largest in world history, in relation to the Dominican
Republic's Gross Domestic Product. The resulting deficit was
equal to 12% to 15% of the country's national GDP. It costs
Dominican taxpayers DOP55 billion and resulted to the country's
worst economic crisis.
====================
E L S A L V A D O R
====================
HANESBRANDS INC: Bares Long-Term Capital Structure Strategies
-------------------------------------------------------------
Hanesbrands Inc. disclosed that its strategies to build brands,
reduce costs and generate cash will provide the opportunity to
achieve its long-term growth goals, including those for diluted
earnings per share.
Shortly after its spinoff in September 2006, Hanesbrands
established long-term growth goals for 2008 and beyond,
including double-digit growth for non-GAAP diluted earnings per
share, which exclude actions.
Hanesbrands Chief Executive Officer Richard A. Noll provided
more clarity about the double-digit diluted EPS goal. "Our goal
remains to achieve double-digit growth for diluted EPS excluding
actions for the next three to five years," Mr. Noll said. "While
a year from now, we may narrow our annual EPS growth goal to be
in the range of 15 percent to 25 percent, for now we will
maintain the more general double-digit goal because 2008 has the
potential for EPS growth above this range."
The company's opportunity for 2008 EPS growth is due to
declining interest expense as a result of lower debt levels and
interest rates, a lower effective tax rate, and the potential
for further improvements in operating performance driven by both
brand building and cost-reduction efforts. The company
cautioned, however, that the challenging economic environment
could mitigate some of the potential for operating performance
improvement.
"Our post-spinoff growth model is pretty straightforward," Mr.
Noll said. "Our generation of strong, consistent cash flow
combined with cost-reduction efforts and modest sales growth
yields significant opportunity to increase EPS."
Since its spinoff in September 2006, Hanesbrands has repaid
US$285 million in debt, voluntarily contributed US$96 million to
its qualified pension plans, which are now 97 percent funded,
and bought back US$44 million worth of stock.
Long-Term Capital Structure
Hanesbrands has US$2.3 billion of long-term debt, and the
company's debt leverage, as measured by adjusted debt to EBITDAR
ratio, has decreased from 5.2 at spinoff to 4.6.
The company said its leverage goal is adjusted debt to EBITDAR
of 4.0 times with a target range of between 3.5 and less than
5.0 times.
"Because of our strong cash flow due to the replenishment nature
of our core categories, a leveraged profile for Hanesbrands is
desirable," said Hanesbrands Chief Financial Officer E. Lee
Wyatt. "Our first priority is always to use cash to invest in
our business and meet our obligations. With excess cash, we
believe we have greater potential for value creation by
repurchasing shares or making acquisitions than continuing to
reduce our debt leverage below the 3.5 ratio."
With the current conditions in the financial markets,
Hanesbrands will maintain its current debt structure. The
company's long-term debt doesn't start to mature for at least
four years. When financial markets normalize, the company plans
to refinance its debt.
"We will always use our cash judiciously to create value," Wyatt
said. "We are in a good position with our capital structure in
today's financial market. With our current capital structure,
we benefit from the declining interest rate environment, we have
high liquidity and we can continue to reduce debt. When the
markets normalize, we can refinance to gain greater flexibility
in our use of cash, including using it to increase share
repurchases and pursue potential acquisitions."
Hanesbrands does not envision any significant commercial
acquisitions with its current capital structure, although
smaller tactical acquisition opportunities may be considered.
Longer term, Hanesbrands would only consider acquisitions that
meet strict criteria. Any acquisition would have to support its
strategic initiatives, be consistent with its core business,
provide synergies, complement growth, and generate returns
greater than the weighted average cost of capital.
Long-Term Business Modeling Highlights
Hanesbrands follows a policy of not providing quarterly or
annual EPS guidance. The company does have a practice of
providing an understanding of long-term goals, trends associated
with its business, current financial performance, and
information required to model the long-term potential of the
business.
* Increasing Sales
Hanesbrands' long-term annual growth goal for sales is 1
percent to 3 percent, excluding acquisitions. The company
continues to invest in its largest and strongest brands in core
categories.
* Increasing Operating Profit
Hanesbrands' long-term annual growth goal for non-GAAP operating
profit is 6 percent to 8 percent.
* Improving Operating Profit Margin
Implicit in its long-term sales and profit goals, Hanesbrands
has a goal of improving non-GAAP operating profit margins by
50 to 100 basis points per year.
* Cost-Reduction Opportunities
To support its goal of improving operating profit margins,
Hanesbrands has numerous cost-reduction initiatives. Additional
gross annualized savings could approach or exceed IS$200 million
in future years. These gross savings exclude startup expenses,
cost inflation, price deflation, and other cost pressures that
Hanesbrands may face in future years. Any net savings would
favorably impact gross margins and to a lesser extent selling,
general and administrative expenses.
* Restructuring
The company expects to incur approximately US$250 million in
restructuring and related charges in implementing its cost-
saving plan over the three-year period that began with the
spinoff. About half of these charges are expected to be
noncash. Through 2007, the company had recognized $116 million
in restructuring and related charges.
* Working Capital
The company has a goal to continually improve working capital
by an average of US$50 million per year for the foreseeable
future.
* Interest Expense
Three-quarters of Hanesbrands' long-term debt, or US$1.7
billion, benefits from a declining interest-rate environment.
Based on a London Interbank Offered Rate of 3.25 percent,
Hanesbrands has a blended interest rate of 6.9 percent.
* Effective Tax Rate
Due to anticipated offshore investments in its supply chain for
at least the next three years, Hanesbrands expects its effective
tax rate to be in the range of 22 percent to 25 percent. The
rate is lower than the company's 2007 effective tax rate of 31.5
percent. The company's cash tax rate is expected to be no
higher than half of its effective tax rate.
* Effective Tax Rate
Due to anticipated offshore investments in its supply chain for
at least the next three years, Hanesbrands expects its effective
tax rate to be in the range of 22 percent to 25 percent. The
rate is lower than the company's 2007 effective tax rate of 31.5
percent. The company's cash tax rate is expected to be no
higher than half of its effective tax rate.
* Capital Expenditures
As planned, the company's capital expenditure investments were
more than 30 percent less than depreciation and amortization
for the past two years and will now exceed depreciation and
amortization. Over the next three years, Hanesbrands expects to
invest approximately US$500 million in capital expenditures,
with the highest spending in 2008. For modeling purposes, the
capital spending rate after 2010 should approximate the level of
depreciation and amortization.
* Use of Cash
In the current financial market, Hanesbrands will use excess
cash after investing in its business to reduce debt with limited
share repurchases and acquisitions. When the company refinances
its debt, it may increase share repurchases or make strategic
acquisitions. The company does not plan to offer a dividend at
this time.
2008 Perspective
Hanesbrands is seeking to build on the successful momentum it
achieved in 2007 and is focused on continuing to execute its
strategies as it strives to achieve its long-term growth goals
for sales, operating profit and EPS in 2008.
The consumer environment has been challenging for the past six
months, but Hanesbrands achieved sales growth through brand
building and retailer partnerships in 2007. However, this
environment has the potential to put downward pressure on 2008
sales results, particularly in the first half of the
year, a season that has fewer merchandising and retail promotion
opportunities. The company believes that the right course of
action in this environment as it strives for continued sales
growth is to continue its brand-building initiatives and retail
partnership programs, particularly for the back-to-school and
the year-end holiday seasons.
Hanesbrands' business model requires only modest sales growth to
create operating profit and EPS growth. The company's cash
flow, cost-reduction initiatives and other business factors will
be positive influences on 2008 results. Significant factors for
potential EPS growth in 2008 include lower interest expense from
reduced debt and lower interest rates, a lower effective
tax rate and a 53rd week in the fourth quarter.
Summary of Major Initiatives
Hanesbrands is executing its strategies to build brands to drive
profitable growth and to take advantage of integration and
global reach to reduce costs, improve flexibility and provide
high service levels.
* Brand-Building Initiatives
The company has major marketing programs under way in core
categories with its strongest and largest brands, including
Hanes, Champion, Playtex and Bali. The company is using these
brands to advance strategic partnerships with key retailers.
* Reducing Costs and Leveraging Scale
Hanesbrands is continuing to execute consolidation of its
organization and distribution network, develop its global
supply chain in lower-cost countries, and seek savings from
leveraging the collective size of its strategic purchasing
organization.
"This is a very exciting time for Hanesbrands," Mr. Noll said.
"We are focused on continuing to execute our improvement
strategies that delivered results in 2007. If we can achieve
all of our long-term growth goals, we could see EPS double in
three to five years. We are well positioned to create value."
Winston-Salem, North Carolina-based Hanesbrands Inc. --
http://www.hanesbrands.com/-- markets innerwear, outerwear and
hosiery apparel under consumer brands, including Hanes,
Champion, Playtex, Bali, Just My Size, barely there and
Wonderbra. The company designs, manufactures, sources and sells
T-shirts, bras, panties, men's underwear, children's underwear,
socks, hosiery, casual wear and active wear. Hanesbrands has
approximately 50,000 employees in 24 countries, including
Dominican Republic, El Salvador, Mexico, Puerto Rico, India and
China.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 29, 2007, Standard & Poor's Ratings Services revised its
ratings outlook for intimate apparel and activewear maker
Hanesbrands Inc. to positive from stable. At the same time,
existing ratings on the company, including the 'B+' corporate
credit rating, were affirmed.
=================
G U A T E M A L A
=================
LAND O'LAKES: Inks Amendment to Sale Agreement With Golden Oval
---------------------------------------------------------------
Land O'Lakes Inc. disclosed Tuesday that the company entered
into an amendment to the Asset Purchase and Sale Agreement,
dated as of May 23, 2006, between MoArk LLC, a wholly-owned
subsidiary of the company, the company, and Golden Oval Eggs
LLC. As a result of these actions, the company has taken a
US$22.0 million pretax charge to establish reserves related to
the original sale that will be reflected in its reported
earnings for the year ended Dec. 31, 2007.
Under the terms of the purchase agreement, Golden Oval Eggs LLC
acquired MoArk LLC's egg products business, paying approximately
US$38.0 million in cash, plus an additional US$17.0 million in
the form of a three-year note payable to the company, with the
possibility of incremental earn-out amounts if the purchasers
surpassed certain performance measures. MoArk LLC also received
US$5.0 million of equity in Golden Oval Eggs LLC, which it
assigned to the company.
Pursuant to the amendment, the purchase price as set forth in
the purchase agreement has been reduced by US$17.0 million plus
certain additional amounts that could have been earned pursuant
to the earn-out provisions. The purchase price reduction was
accomplished by canceling the principal amount owed under the
note and all accrued but unpaid interest on the note.
In consideration of the agreement by the company to release the
purchasers from their obligation to pay all interest accrued on
the note, Golden Oval Eggs LLC granted to the company the right
to purchase up to 880,492 non-voting Class A convertible
preferred units, which may be converted, at the company's
discretion, into common shares in Goldan Oval Eggs LLC. The
preferred units also contain a liquidation preference in the
amount of US$11.357 per unit, plus accrued but unpaid dividends.
The company also disclosed that it converted, effective
Feb. 15, 2008, the 697,350 Class B units of Golden Oval Eggs LLC
it received pursuant to the purchase agreement into 697,350
Class A common units of Golden Oval Eggs LLC.
About Land O'Lakes
Headquartered in Saint Paul, Minnesota, Land O'Lakes Inc. --
http://www.landolakesinc.com/-- is a national, farmer-owned
food and agricultural cooperative. Land O'Lakes does business
in all 50 states and more than 50 countries, including the
Philippines, Ukraine and Guatemala. It is a leading marketer of
a full line of dairy-based consumer, foodservice and food
ingredient products across the United States; serves its
international customers with a variety of food and animal feed
ingredients; and provides farmers and ranchers with an extensive
line of agricultural supplies and services. Land O'Lakes also
provides agricultural assistance and technical training in more
than 25 developing nations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2007, Standard & Poor's Ratings Services raised its
corporate credit and other ratings on privately owned marketing
and supply cooperative Land O'Lakes Inc. The corporate credit
rating is now 'BB'. S&P said the outlook is stable.
===========
G U Y A N A
===========
FLOWSERVE CORP: Settles Oil-for-Food Case With SEC & DOJ
--------------------------------------------------------
Flowserve Corporation has reached final resolution with the U.S.
Securities and Exchange Commission and the Department of Justice
with regard to their investigations of the participation of a
French and a Dutch subsidiary of the company in sales to Iraq
under the U.N. "Oil-for-Food" program during 2001-2003.
The company confirmed that, under the terms of the applicable
settlement agreements, Flowserve will pay a fine, profit
disgorgement and related prejudgment interest to the SEC
totaling US$6,574,225 and a penalty to the DOJ of US$4,000,000.
Flowserve noted that these amounts were in line with the
announced accruals for this purpose already disclosed in
connection with its issued third quarter 2007 financial
statements.
"There is no higher priority at Flowserve than legal compliance,
and we fully cooperated with the SEC and DOJ in their
investigations of this matter," said Lewis M. Kling, President
and CEO of Flowserve. "We are pleased to now be able to put
this matter behind us because it will allow us to focus even
more intently on the very attractive business opportunities
currently available to Flowserve around the globe."
About Flowserve
Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) --
http://www.flowserve.com/-- provides fluid motion and control
products and services. Operating in 56 countries, the company
produces engineered and industrial pumps, seals and valves as
well as a range of related flow management services. In Latin
America, Flowserve operates in 36 countries such as the
Dominican Republic, Guatemala, Guyana and Belize.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 20, 2007, Moody's Investors Service affirmed Flowserve
Corporation's corporate family rating at Ba3 and probability of
default at B1. Moody's also affirmed the Ba2 rating to the
company's senior secured term loan and assigned a Ba2 rating to
Flowserve's senior secured revolving credit facility.
=============
J A M A I C A
=============
DIGICEL GROUP: Launches New Brand Tagline
-----------------------------------------
Digicel Group has launched a new brand promise: "The Bigger,
Better Network." The brand tagline marks a defining moment for
Digicel, reinforcing the company's ability to rapidly build
state-of-the-art wireless networks, dramatically lower mobile
prices and provide customers superior world-class network
coverage across all 23 markets.
The tagline also signifies Digicel's first-class networks with
close to 100% population coverage and unparalleled ability to
introduce exciting, new technology innovations to communities
that never before had mobile service. Since Digicel initially
launched in Jamaica in 2001, the company has experienced
tremendous growth to date, significantly increasing mobile
penetration rates and network population coverage across the
Caribbean. In Jamaica, mobile penetration has climbed from 10%
in 2001 to now more than 80%.
Digicel has played a pivotal role in mobile pricing and
penetration rates in both Haiti and El Salvador. Since
launching in May 2006, prices have dropped dramatically in Haiti
with a 20% decrease in local and fixed calls. In this same
period, mobile penetration rates have risen from three percent
to 35%. Digicel built Haiti's GSM network in just six months.
In El Salvador, Digicel also increased its population coverage
by 20% in just six months, achieving 95 percent coverage to
reach communities previously underserved by competitors.
In addition to increasing mobile penetration in Haiti and El
Salvador, Digicel has also impacted mobile penetration in
Trinidad and Tobago. According to a recent study by the United
Nations Conference on Trade and Development (UNCTAD), Trinidad
and Tobago is listed as one of the countries benefiting from
access to mobile telecommunications. Following the introduction
of mobile competition in this market, UNCTAD cited a significant
increase in mobile penetration rising from 27% in 2002 to 124%
in 2006.
"Digicel's new tagline, 'The Bigger, Better Network,' is a clear
description of the quality and coverage of our networks and
reaffirms our ability to introduce exciting, new first-to-market
technology innovations such as GPRS and WiMAX wireless
broadband," said Brian Finn, Commercial Director, Digicel Group.
"We remain passionate about our promise to provide the best
mobile phone service to all of our customers."
According to Mr. Finn, the tagline also reflects Digicel's
state-of-the-art infrastructure investments and solid
partnerships with world leaders in GSM technology, GPRS, CDMA
and Wireless Broadband. Digicel has rapidly built GSM networks
that enable important technology advances as well as reliable,
superior coverage. The company was the first GSM operator in
the Caribbean to simultaneously offer CDMA roaming.
In 2007, Digicel recorded more than six million customers and a
total investment exceeding US$1.9 billion in addition to
launching new business operations in Suriname, Guyana and El
Salvador. Digicel was also awarded a mobile license to operate
a GSM network in the British Virgin Islands.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2007, Fitch Ratings took these rating actions for
Digicel Group Ltd., Digicel Ltd. and Digicel International
Finance Ltd.:
Digicel Group Ltd.
-- Proposed US$1.4 billion senior subordinated notes
due 2015 assigned 'CCC+/RR5'
Digicel Ltd.
-- Foreign currency Issuer Default Rating downgraded
to 'B-' from 'B'; and
-- US$450 million senior notes due 2012 downgraded
to 'B-/RR4' from'B/RR4'.
Digicel International Finance Ltd.
--US$850 million senior secured credit facility
assigned 'B/RR3'.
Fitch said the outlook on all ratings is stable.
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M E X I C O
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BRISTOW GROUP: Declares US$0.6875 Per Share Preferred Dividend
--------------------------------------------------------------
Bristow Group Inc. Board of Directors has declared a dividend of
US$0.6875 per share of Mandatory Convertible Preferred Stock
issued and outstanding at the close of business on March 1,
2008, which will be payable on March 17, 2008 to stockholders of
record at the close of business on March 1, 2008. There are
4,600,000 shares of Bristow's Mandatory Convertible Preferred
Stock issued and outstanding.
Headquartered in Houston, Texas, Bristow Group Inc. (NYSE:BRS)
-- http://www.bristowgroup.com/-- fka Offshore Logistics Inc.,
provides helicopter transportation services to the worldwide
offshore oil and gas industry with operations in the United
States Gulf of Mexico and the North Sea. The company also has
operations, both directly and indirectly, in offshore oil and
gas producing regions of the world, including Alaska, Australia,
Mexico, Nigeria, Russia and Trinidad. The company also provides
production management services for oil and gas production
facilities in the United States Gulf of Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 7, 2007, Standard & Poor's Ratings Services assigned its
'BB' rating to helicopter service company Bristow Group Inc.'s
US$250 million senior notes due 2017 with a negative outlook.
S&P also affirmed the company's 'BB' corporate credit rating.
FEDERAL-MOGUL: Says Objections to Plan A Changes Are Meritless
--------------------------------------------------------------
Federal-Mogul Corp. and its reorganized debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to:
(a) approve the Plan A Settlement, which is attached as an
addendum to the Debtors' Fourth Amended Joint Plan of
Reorganization; and
(b) overrule all objections to the Plan A Settlement
modifications.
The Reorganized Debtors further ask the Court to deny certain
Plan A Objectors' requests for further discovery in connection
with the Plan A Modifications.
Few of the "lengthy" objections to the recent modifications to
the Plan A Settlement have anything to do with the Modifications
themselves, James E. O'Neill, Esq., at Pachulski Stang Ziehl &
Jones LLP, in Wilmington, Delaware, contends. Most just re-hash
arguments concerning the construction and applicability of
Section 524(g) of the Bankruptcy Code, most of which have
already been dealt with by the Reorganized Debtors and rejected
by the Court, Mr. O'Neill says.
The Objections that do concern the Plan A Modifications are
meritless, the Reorganized Debtors argue.
The Reorganized Debtors maintain that the Plan A Modifications
make Plan A entirely neutral as to the objecting insurers and
PepsiAmericas Inc. Thus, the objecting insurers and
PepsiAmericas have no standing to object to Court approval of
Plan A.
Contrary to the Plan A Objectors' contentions, third party
injunctive relief depends on (i) satisfying a set of precise,
statutorily-defined relationships, and (ii) a judicial
assessment of a third party's contribution to a trust that
benefits present and future asbestos claimants, not the Debtors,
Mr. O'Neill asserts. "These are the only necessities for third
party injunctive relief under Section 524(g)."
The Plan A Objectors, according to Mr. O'Neill, entirely ignored
the fact that Congress enacted Section 524(g) not only for the
benefit of reorganizing companies, but equally to promote the
interests of victims of asbestos exposure. Congress, he points
out, determined that extending the availability of a Section
524(g) injunction to third parties would serve to maximize the
amount of money available to pay existing and future asbestos
claimants.
Mr. O'Neill argues that contradictory to DaimlerChrysler Corp.'s
and Volkswagen of America, Inc.'s assertions, the text of
Section 524(g)(1)(A) does not mandate that a third party
injunction must enhance a debtor's fresh start. "The plain
meaning of Section 524(g)(1)(A) is that it permits the court to
enter an injunction that enjoins activities beyond those covered
by a discharge injunction under Section 524(a), so long as the
other requirements of Section 524(g) are satisfied. To construe
Section 524(g)(1) as restricting the issuance of a third party
injunction to those instances that further a debtor's fresh
start or discharge, as suggested by DaimlerChrysler and
Volkswagen, is contrary to the fundamental principle of
statutory construction that a court must interpret a statute, if
possible, so as to give meaning to every provision," Mr. O'Neill
elaborates.
Section 524(g) also does not condition the issuance of a third
party injunction on a showing that such an injunction is
necessary to a debtor's reorganization, Mr. O'Neill continues.
He points out that the Court has already determined that
"Section 524(g)(a)(ii) does not require the necessity element
with respect to issuing that injunction as to third parties."
Certain objecting insurers themselves concede that "necessity"
does not constitute a requisite for issuing a Section 524(g)
injunction in favor of non-debtors, Mr. O'Neill relates.
The Reorganized Debtors maintain that Pneumo Abex LLC, Cooper
Industries, LLC, and the rest of the Pneumo Protected Parties
qualify for a Section 524(g) injunction because they are alleged
to be liable for asbestos-related claims arising out of Abex
Corp.'s brake business. Those asbestos claims comprise claims
against the debtor within the meaning of Section
524(g)(4)(A)(ii), Mr. O'Neill asserts.
Certain of the Plan A Objectors contended that Court approval of
Plan A is an impermissible modification of a substantially
confirmed Chapter 11 plan, and thus, prohibited by Section 1127
of the Bankruptcy Code. "The underlying premises of this
objection are demonstrably incorrect, both as a matter of law
and as a matter of fact," Mr. O'Neill argues.
He emphasizes that "the Plan A Settlement is not a modification
of the [Debtors' confirmed Fourth Amended Joint Plan of
Reorganization] within the meaning of Section 1127(b). Rather,
Plan A is entirely consistent with, and does not contradict,
affect, amend, alter, or re-open the [Fourth Amended] Plan in
any respect . . . It is of no moment that the [Fourth Amended]
Plan has been substantially consummated."
"Section 1127(b) does not apply where the Court is not asked to
modify a confirmed plan, but simply to approve a settlement that
is consistent with and contemplated by the Plan. Approving the
Plan A Settlement and extending the injunction to the Pneumo
Protected Parties is no different, in principle, than issuing an
injunction to a settling insurer post-confirmation pursuant to
the confirmed Fourth Amended Plan," Mr. O'Neill explains.
Several Plan A Objectors, including Mt. McKinley Insurance
Company and PepsiAmericas, argued that the Plan A Settlement
documents still embody an assignment of the Pneumo Asbestos
Insurance Policies to the Asbestos Personal Injury Trust because
the Trust is to own the equity interests in Pneumo Abex LLC.
Mr. O'Neill clarifies that Plan A has always embodied the
contribution by PCT International Holdings Inc., Pneumo Abex's
current owner, to the Asbestos Trust of its membership interests
in Pneumo Abex. "When Plan A is implemented, the Trust will own
Pneumo Abex. Nothing in Plan A changes this long-standing
aspect of the deal. It is a fundamental axiom of corporate law
that ownership of the equity interests in an entity does not
constitute ownership of the entity's individual assets, and a
transfer of ownership interests does not constitute a sale of
the entity's assets."
The elimination of certain objected-to provisions, as pointed
out by Mt. McKinley and PepsiAmericas, is not a basis for
extending these proceedings by months to take additional
discovery, Mr. O'Neill contends. "It is impossible to see how
the deletion of certain Plan A provisions, which were done in
response to the Court's and the Plan A Objectors' own comments,
could conceivably give rise to any new issues of fact that
warrant additional discovery.
"The Court should see through the [Plan A] Objectors'
transparent tactics and overblown rhetoric, and approve the Plan
A Settlement."
Plan A is fair, equitable, and fully satisfies the requirements
of Section 524(g) and Rule 9019 of the Federal Rules of
Bankruptcy Procedure, Mr. O'Neill avers.
About Federal-Mogul
Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global supplier, serving the world's
foremost original equipment manufacturers of automotive, light
commercial, heavy-duty, agricultural, marine, rail, off-road and
industrial vehicles, as well as the worldwide aftermarket.
Founded in Detroit in 1899, the company is headquartered in
Southfield, Michigan, and employs 45,000 people in 35 countries.
Aside from the U.S., Federal-Mogul also has operations in other
locations which includes, among others, Mexico, Malaysia,
Australia, China, India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James
F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown
& Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed US$10.15 billion in assets and US$8.86
billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate,
Turner & Newall, is based at Dudley Hill, Bradford. Peter D.
Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D.
Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq.,
at The Bayard Firm represent the Official Committee of Unsecured
Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on
June 6, 2004, the Bankruptcy Court approved the Third Amended
Disclosure Statement for their Third Amended Plan. On
July 28, 2004, the District Court approved the Disclosure
Statement. The estimation hearing began on June 14, 2005. The
Debtors submitted a Fourth Amended Plan and Disclosure Statement
on Nov. 21, 2006, and the Bankruptcy Court approved that
Disclosure Statement on Feb. 6, 2007. The Fourth Amended Plan
was confirmed by the Bankruptcy Court on Nov. 8, 2007, and
affirmed by the District Court on Nov. 14.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 10, 2008, Moody's Investors Service confirmed the ratings
of the reorganized Federal-Mogul Corporation -- Corporate Family
Rating, Ba3; Probability of Default Rating, Ba3; and senior
secured bank credit facilities, Ba2. The outlook is stable.
The financing for the company's emergence from Chapter 11
bankruptcy protection has been funded in line with the structure
originally rated by Moody's in a press release dated
Nov. 28, 2007.
As reported in the Troubled Company Reporter on Jan. 7, 2008,
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Southfield, Michigan-based Federal-Mogul Corp.
following the company's emergence from Chapter 11 on
Dec. 27, 2007. The outlook is stable.
FLEXTRONICS: Getting MXN35 Million From Jalisco State Government
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Mexican news daily Milenio reports that Flextronics
International Ltd. will get MXN35 million in grants from the
Jalisco state government for the firm's expansion.
Milenio relates that the MXN35 million in funds will be taken
from the Flextronics International's economic promotion council
CEPE. The government expects the expansion to generate 4,000
jobs.
CEPE director Federico Torres told Milenio that Jalisco's
investment accounts for 50% of the council's funds for this
year.
Mr. Torres commented to Business News Americas that Flextronics
International's expansion "is one of the largest initiatives
that we have seen and the vote was unanimous [in the CEPE
council] because it represents such a strategic project, unlike
any seen over the past eight years."
Flextronics International would invest US$24 million in a new
plant and the repositioning of the company's headquarters from
Kansas City to Guadalajara, BNamericas states, citing Mr.
Torres.
Headquartered in Singapore, Flextronics International Ltd.
(NasdaqGS: FLEX) -- http://www.flextronics.com/-- is an
Electronics Manufacturing Services provider focused on
delivering design, engineering and manufacturing services to
automotive, computing, consumer digital, industrial,
infrastructure, medical and mobile OEMs. Flextronics helps
customers design, build, ship, and service electronics products
through a network of facilities in over 30 countries on four
continents including Brazil, Mexico, Hungary, Sweden, United
Kingdom, among others.
* * *
Flextronics International Ltd. continues to carry Moody's
Investors Service's "Ba1" probability of default and long-term
corporate family ratings with a negative outlook.
The company also carries Standard & Poor's "BB+" long-term local
and foreign issuer credit ratings with a negative outlook.
HOST HOTELS: S&P Changes Outlook to Stable; Keeps 'BB' Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook
for Host Hotels & Resorts Inc. to stable from positive. Ratings
on the company, including the 'BB' corporate credit rating, were
affirmed.
"The outlook revision reflects that we are unlikely to raise the
rating for Host over the near term due to the possibility that
its credit metrics, which as of December 2007 were good for the
current rating, will decline to levels more appropriate for the
'BB' rating," said Standard & Poor's credit analyst Emile
Courtney. "In 2008, we expect slower growth in the U.S. hotel
industry and in Host's portfolio, following years of rapid
growth."
Also, the company just announced a US$500 million share
repurchase authorization, and that it expects to declare another
special dividend in the December 2008 quarter. This follows
Host's declaration of a special dividend in December 2007 that
totaled approximately US$100 million, and is in addition to the
company's regular dividend, which is currently declared at a
rate in excess of free cash flow.
The rating reflects Host Hotels & Resorts Inc.'s aggressive
financial profile and, as a real estate investment trust, its
reliance on external sources of capital for growth. These
factors are tempered by the company's high-quality and
geographically diversified hotel portfolio, high barriers to
entry for new competitors because of its hotels' locations
(primarily in urban and resort markets or in close proximity to
airports), its strong brand relationships, and its experienced
management team.
About Host Hotels & Resorts
Host Hotels & Resorts, Inc. -- http://www.hosthotels.com/--
(NYSE:HST) is a lodging real estate investment trust and owns
luxury and upper upscale hotels. The company currently owns 121
properties with approximately 64,000 rooms, and also holds a
minority interest in a joint venture that owns seven hotels in
Europe with approximately 2,700 rooms. Guided by a disciplined
approach to capital allocation and aggressive asset management,
the company partners with premium brands such as Marriott(R),
Ritz-Carlton(R), Westin(R), Sheraton(R), W(R), St. Regis(R), The
Luxury Collection(R), Hyatt(R), Fairmont(R), Four Seasons(R),
Hilton(R) and Swissotel(R) in the operation of properties in
over 50 major markets worldwide, including Mexico and Italy.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 19, 2007, Fitch Ratings has upgraded these ratings of Host
Hotels & Resorts, Inc. and its principal operating subsidiary,
Host Hotels & Resorts, L.P.:
Host Hotels & Resorts, Inc.
-- Issuer Default Rating to 'BB+' from 'BB';
-- Preferred Stock to 'BB' from 'B+'.
Host Hotels & Resorts, L.P.
-- IDR to 'BB+' from 'BB';
-- Bank credit facility to 'BB+' from 'BB';
-- Senior unsecured notes to 'BB+' from 'BB';
-- Exchangeable senior unsecured debentures to 'BB+' from 'BB'.
Fitch's rating action affects approximately US$4.2 billion of
securities. Fitch said the rating outlook is stable.
MEXORO MINERALS: Francisco Quiroz Joins Board of Directors
----------------------------------------------------------
Mexoro Minerals Ltd. has added Francisco "Barry" Quiroz to its
board of directors. Mr. Quiroz is currently the company's Vice
President of Exploration.
Prior to Mr. Quiroz joining Mexoro Minerals, he worked for BHP-
Billiton for 17 years. In his last position with BHP he was the
program leader for BHP-Billiton managing all aspects of
exploration business in China. Prior to that he was the senior
project geologist for BHP-Billiton in Australia. He also has
worked extensively in Chile and Peru.
Mr. Quiroz brings a wealth of operational and exploration
knowledge with him. His expertise includes the structuring and
implementation of successful exploration strategies, project
reviews, mineral acquisitions and management of local and
expatriate exploration teams on a wide variety of cultures.
Mr. Quiroz received his MSc in Economic Geology from the
University of Arizona.
Mexoro Minerals board member, Mario Ayub says, "We are delighted
to have Mr. Quiroz join our board of directors. His vast
experience and wealth of knowledge will only enhance our already
stellar team."
Headquartered in Chihuahua, Mexico, Mexoro Minerals Ltd. --
http://www.mexoro.com/-- is an exploration and production
company focused on mining precious metals in the traditionally
mineral rich Sierra Madre region of Chihuahua, Mexico. Mining
operations are through a 100%-owned Mexican subsidiary, Sunburst
de Mexico, S.A. de C.V. Sunburst Mexico owns or has options on
three historical gold-silver mines for which additional
exploration has confirmed significant mineral potential. The
company has also staked claims on additional attractive
properties, in the Chihuahua area.
* * *
As of Nov. 30, 2007, Mexoro Minerals Ltd. had US$1,669,789 in
unaudited total assets and unaudited total liabilities of
US$2,087,110, resulting in a stockholder's deficit of
US$417,321.
MEXORO MINERALS: Intersects Gold & Silver Drilling in Guazapares
----------------------------------------------------------------
Mexoro Minerals Ltd. is has intersected significant gold and
silver mineralization from drilling at its Guazapares project
located in the Guazapares Mining District, Chihuahua, Mexico.
The first drilling program in the Guazapares project has been
completed with nineteen drill holes totaling 2,670 meters. The
new drilling results are from thirteen recently completed holes
drilled at the San Francisco Este, San Francisco Centro and El
Cantilito, three of the main targets identified in the project.
All drill holes in the San Francisco Centro and El Cantilito
intersected long intervals of gold and silver mineralization.
San Francisco Este Target
The San Francisco Este target is characterized by mineralized
veins/breccias, quartz veins stock worked zones. The
mineralized and altered zone on this target trends predominantly
northwest. Drill holes GU-04 to GU-07 and GU-17 to GU-18 were
designed to test the silver (+/- gold) mineralization identified
on surface. GU-04 intersected 9.55 meters with 2.17 g/t Au Eq
from surface down to 10 meters depth. The drill hole GU-08
encountered a mineralized interval of 5.20 meters with 1.68 g/t
Au Eq. These intervals complement previously announce results
for the surfacesampling where the company reported silver values
up to 2,160 g/t Ag. Drill holes GU-05, GU-06 and GU-07 reported
only gold and silver anomalies. Assay results from GU-17 and
GU-18 are still pending.
San Francisco Centro Target
The San Francisco Centro target is characterized by quartz
veins, veins/breccias and quartz veins stock worked areas
exhibiting multiple pulses of hydrothermal activity.
Mineralization in San Francisco Centro tends to cluster in
ore-shoots developed primarily in the intersection of main
structures. Drill holes GU-08 to GU-13 were planned to test the
east-west mineralized structure identified during the mapping
and sampling process in the central part of the concessions.
All drill holes intersected mineralization from surface down to
100 meters depth. The drill hole GU-10 intersected 13.75 meters
with 2.75 g/t AU Eq. and 22.98 meters with 2.80 g/t Au Eq. from
8.15 meters down to 85 meters depth. Drill hole GU-13
intercepted 9.0 meters with 3.63 g/t Au Eq. and 4.50 meters with
1.56 g/t Au Eq.
El Cantilito Target
El Cantilito is a mineralized zone produced mainly along
northeast vein-structures where mineralization tends to cluster
in ore-shoots and mineralized stock works developed in
structural jogs and/ore intersection of main structures. Drill
holes GU-14 to GU-16 and GU-19 were designed to test the
outcropping mineralized structures. Drill holes GU-15 and GU-16
were collared in the west margin of the known limit of the
mineralized structure and have opened up the exploration further
west along El Cantilito structures. Drill hole GU-15 was
stopped at 168 meters depth still in mineralization intersected
17.06 meters with 1.26 g/t Au Eq. including 1.30 meters with
6.10 g/t Au Eq. Drill hole GU-16 intercepted 18.92 meters with
4.33 g/t Au Eq. including 7.74 meters with 9.10 g/t Au Eq. The
assay results from GU-19 are still pending.
Exploration potential for the Guazapares Project
The mineralization systems encountered in the Guazapares project
are essentially of two types: a silver-dominated system at San
Francisco Este, San Francisco Centro, and El Cantilito which is
exhibiting localized areas of high-grade gold mineralization;
whereas at San Antonio, the system is dominated by gold
mineralization. Surface mapping and drilling results are
suggesting that the high-grade mineralization tends to cluster
at certain areas along the mineralized veins with intervening
areas of low-grade mineralization. The cluster of high-grade
mineralization is suggesting the development of ore-shoots as
evidenced by the intercepts from drill holes GU-04 and from GU-
08 to GU-16.
The present drilling results are providing the evidence to
highlight the great potential of several areas in the Guazapares
project.
(1) Drilling results on the San Francisco Este target are
opening the potential to explore further northwest along
the same structure.
(2) Drill holes GU-12 and GU-13 at San Francisco Centro are
suggesting the development of high-grade ore-shoots along
structure's inflections and have opened up the
exploration potential to the west and northwest.
(3) Drilling results at El Cantilito (GU-16) have opened up
the exploration potential to the west of the system which
is a covered terrain. Drill hole GU-15 is also opening
potential to the west along the El Cantilito mineralized
system and since GU-15 was stopped in mineralization at
169 meters depth the exploration potential is still open
at depth.
(4) All mineralized system and targets are suggesting the
potential to explore where all system intersects each
other creating the right setting to develop attractive
mineralization zones.
Francisco "Barry" Quiroz, MSc., is the qualified person for the
Guazapares Project. These results have been prepared under the
supervision of Mr. Quiroz, who is designated as a Qualified
Person with the ability and authority to verify the authenticity
and validity of this data. All drill core and rock samples were
analyzed by ALS Chemex Labs in Chihuahua Mexico.
Headquartered in Chihuahua, Mexico, Mexoro Minerals Ltd. --
http://www.mexoro.com/-- is an exploration and production
company focused on mining precious metals in the traditionally
mineral rich Sierra Madre region of Chihuahua, Mexico. Mining
operations are through a 100%-owned Mexican subsidiary, Sunburst
de Mexico, S.A. de C.V. Sunburst Mexico owns or has options on
three historical gold-silver mines for which additional
exploration has confirmed significant mineral potential. The
company has also staked claims on additional attractive
properties, in the Chihuahua area.
* * *
As of Nov. 30, 2007, Mexoro Minerals Ltd. had US$1,669,789 in
unaudited total assets and unaudited total liabilities of
US$2,087,110, resulting in a stockholder's deficit of
US$417,321.
SHARPER IMAGE: Files for Chapter 11 in Delaware
-----------------------------------------------
Sharper Image Corporation (NASDAQ:SHRP) had commenced a case
under Chapter 11 of the Bankruptcy Code in the United States
Bankruptcy Court for the District of Delaware. The Company
intends to continue to conduct business as usual while it
devotes renewed efforts to resolve its operational and liquidity
problems and develops a reorganization plan.
Sharper Image Corp. is a specialty retailer that is nationally
and internationally renowned as a leading source of new,
innovative, high-quality products that make life better and more
enjoyable. The Company's principal selling channels include 184
Sharper Image specialty stores throughout the United States; the
award-winning Sharper Image monthly catalog; and its primary Web
site, http://www.sharperimage.com The company has operations in
Australia, Brazil and Mexico. The Company also has business-to-
business sales teams for marketing its exclusive and proprietary
products for corporate incentive and reward programs and
wholesale to selected U.S. and international retailers.
SHARPER IMAGE: Case Summary & 20 Largest Unsec. Creditors
---------------------------------------------------------
Debtor: Sharper Image Corp.
350 The Embarcadero, 6th Floor
San Francisco, CA 94105
Bankruptcy Case No.: 08-10322
Type of Business: The Debtor is a multi-channel specialty
retailer. It operates in three principal
selling channels: the Sharper Image specialty
stores throughout the U.S., the Sharper Image
catalog and the Internet. In addition,
through its Brand Licensing Division, it is
also licensing the Sharper Image brand to
select third parties to allow them to sell
Sharper Image branded products in other
channels of distribution. The company has
operations in Australia, Brazil and Mexico.
See http://www.sharperimage.com/
Chapter 11 Petition Date: Feb. 19, 2008
Court: District of Delaware (Delaware)
Judge: Kevin Gross
Debtor's Counsel: Steven K. Kortanek, Esq.
(skortanek@wcsr.com)
Womble, Carlyle, Sandridge & Rice, P.L.L.C.
222 Delaware Avenue, Suite 1501
Wilmington, DE 19801
Tel: (302) 252-4363
Fax: (302) 661-7728
http://www.wcsr.com/
Financial Condition as of January 31, 2008:
Total Assets: US$251,500,000
Total Debts: US$199,000,000
Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
United Parcel Service trade debt US$6,654,431
Attention: Amy Burwell
P.O. Box 660586
Dallas, TX 75266-0586
Tel: (214) 323-7408
Fax: (214) 323-7400
Quebecor World (U.S.A.), trade debt US$3,636,484
Inc.
Attention: Larry Rigby
3700 Northwest 12th Street
Lincoln, NE 68521
Tel: (402) 474-5824
Fax: (402) 474-5830
Tom Tom, Inc. trade debt US$2,075,439
Attention: Kim Jackson
1915 Paysphere Circle
Chicago, IL 60674
Tel: (609) 865-9874
Fax: (215) 563-2257
Garmin International, Inc. trade debt US$2,070,133
Attention: Doug Jones
P.O. Box 842603
Kansas City, MO 64184-2603
Tel: (913) 397-8200
Fax: (913) 397-8282
Novus Print Media, Inc. trade debt US$1,738,481
Attention: Accounts Payable
S.D.S. 12-0664
P.O. Box 86
Minneapolis, MN 55486-0664
Tel: (763) 476-7700
Fax: (763) 476-7701
N.E.W. trade debt US$1,669,471
Attention: David Brosserman
22660 Executive Drive,
Suite 122
Sterling, VA 20166
Tel: (800) 942-8763
Interactive Health trade debt US$965,950
Attention: Craig Womack
330 Walnut Avenue
Long Beach, CA 90807
Tel: (562) 733-7349
Fax: (562) 426-7127
Philips Consumer Electronics trade debt US$913,399
Attention: Rich Sargente
P.O. Box 846161
Department 1B 2234353
Dallas, TX 75284-6161
Tel: (951) 943-4035
Fax: (951) 943-7056
SkyMall, Inc. trade debt US$840,000
Attention: Sophea Mathus
P.O. Box 52854
Phoenix, AZ 85072-2854
Tel: (602) 254-9777
Fax: (602) 528-3293
Thelen, Reid, Rown, Raysman professional US$734,276
& Steiner, L.L.P. services
Attention: David Aronoff
File 72947
P.O. Box 60000
San Francisco, CA 94160-2947
Tel: (213) 576-8000
Fax: (213) 576-8080
I.O.N. Audio trade debt US$701,819
Attention: Dale Sprock
200 Scenic View Drive,
Suite 201
Cumberland, RI 02864
Tel: (650) 572-2335
Fax: (650) 572-2377
Google, Inc. trade debt US$663,197
Attention: Chantal Walton
Department 33654
P.O. Box 39000
San Francisco, CA 94139
Tel: (650) 214-2667
Fax: (650) 253-8616
Panasonic Consumer trade debt US$614,552
Electronics
Attention: Jennifer Makoul
1 Panasonic Way 4A-7
Secaucus, NJ 07094
Tel: (201) 271-3314
Fax: (201) 392-6979
X.P.E.D.X. trade debt US$588,522
Attention: Michael Jacobson
File 050201
Los Angeles, CA 90074-0201
Tel: (630) 480-8406
UGobe, Inc. trade debt US$537,636
Attention: Martin Hitch
5900 Hollis Street, Suite V
Emeryville, CA 94608
Tel: (510) 665-0515, 21
(extension)
Fax: (510) 655-0519
T.A.O. Music, Inc. trade debt US$537,636
Attention: Ling Tao Wang
1215 Chrysler Drive
Menlo Park, CA 94025
Tel: (650) 326-5000
Fax: (650) 326-5828
Aliph trade debt US$534,025
Attention: Johnathan Harris
150 Executive Park Boulevard,
Suite 4550
San Francisco, CA 94134
Tel: (415) 657-9757
Fax: (415) 657-3172
Eperformax Centers, Inc. trade debt US$527,241
Attention: Andre Jaeckle
8001 Centerview Parkway,
Suite 300
Cordova, IN 38018
Tel: (901) 751-4800
Fax: (901) 751-4900
C.C.L. Product trade debt US$522,001
Attention: Kim Lam
Flat A4, 4th Floor Block A
Tseun Wan, Hong Kong
Tel: (011) (852) 2432-7191
Fax: (011) (852) 2433-1608
Linkshare trade debt US$517,430
Attention: Michael Maciaszek
P.O. Box 30772
New York, NY 10087-0772
Tel: (646) 454-6000
Fax: (646) 602-0160
====================
P U E R T O R I C O
====================
DORAL FINANCIAL: FDIC Issues Cease & Desist Order Against Unit
--------------------------------------------------------------
Doral Financial Corporation reported that the Federal Deposit
Insurance Corporation (FDIC) entered into an Order to Cease and
Desist with its principal subsidiary, Doral Bank, Puerto Rico on
Bank Secrecy Act (BSA) compliance in regards to the BSA/Anti
Money Laundering Compliance Program. The regulatory findings
that resulted in the order were based on a review conducted for
the period ended Dec. 31, 2006 and were related to violations
that had initially occurred in 2005, prior to the Company's
change in management, recapitalization and replacement of the
Board of Directors.
"We are committed to becoming a compliant company. And although
the matters described in this regulatory action relate to the
period prior to the recapitalization of the company last year,
the company, along with its board of directors and management is
fully committed to aggressively work to resolve the matters
addressed in the order. Creating a culture of compliance
continues to be a top priority," said Glen R. Wakeman, CEO and
President of Doral Financial Corp.
Doral has focused its resources in curing deficiencies noted in
prior regulatory orders and has made substantial progress in
becoming compliant. On Jan. 17, 2008, the company announced
that the FDIC lifted the Cease and Desist Order with Doral Bank,
Puerto Rico, dated March 16, 2006, which was put in place as a
result of the announcement in April 2005 of the need to restate
its financial statements for the period from 2000 to 2004.
The order, dated Feb. 19, 2008, does not impose any restrictions
on Doral Bank's daily banking and lending activities and
requires Doral to address all recommendations within 120 days.
While significant advances have been made since the exam, Doral
has and will continue to fully cooperate with the FDIC.
After the restatement of its financial statements for the period
from 2000 to 2004, change in management, and recapitalization of
the company in July 2007, Doral Financial has been committed to
transforming the company into a community bank focusing on
offering a wide array of innovative products and programs
specifically designed for the communities it serves, creating a
culture of compliance, increasing efficiencies and developing
talent.
Based in New York City, Doral Financial Corp. (NYSE: DRL)
-- http://www.doralfinancial.com/-- is a diversified financial
services company engaged in mortgage banking, banking,
investment banking activities, institutional securities and
insurance agency operations. Its activities are principally
conducted in Puerto Rico and in the New York City metropolitan
area. Doral is the parent company of Doral Bank, a Puerto Rico
based commercial bank; Doral Securities, a Puerto Rico based
investment banking and institutional brokerage firm; Doral
Insurance Agency Inc. and Doral Bank FSB, a federal savings bank
based in New York City.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 28, 2007, Standard & Poor's Ratings Services said that its
'B' long-term counterparty credit rating on Doral Financial
Corp. remains on CreditWatch Positive, where it was placed
July 20, 2007.
=================
V E N E Z U E L A
=================
CHRYSLER LLC: Magna's Hopes of Acquiring Tooling Equipment Fade
---------------------------------------------------------------
Magna International Inc. apparently did not get its wish of
acquiring a huge chunk of tooling equipment from Plastech
Engineered Products Inc. and its debtor-affiliates' plants,
after the Honorable Phillip Shefferly of the U.S. Bankruptcy
Court for the Eastern District of Michigan stopped Chrysler LLC
from grabbing the tooling.
Judge Shefferly said in a court opinion that the Debtors needed
to keep the tooling equipment to help facilitate their
reorganization.
Before the Court decision, Chrysler LLC intended to transfer the
equipment to Magna International, a Canadian counterpart of
Plastech, in order to keep the flow of production, Alex Ortolani
and Michael Ramsey of Bloomberg News report, citing the
automaker's planning documents.
An analyst commented that Magna, with the additional equipment,
could improve production in its plants, and could charge
Chrysler with higher rates for its parts than Plastech,
Bloomberg relates. "Magna becomes the obvious choice here
because they have had a long-term very good relationship with
Chrysler," Bloomberg quotes the analyst as saying. "It would be
hard for me to believe that Magna is doing it at the same price
that Plastech was doing it."
Spokespeople for Chrysler declined to comment to Bloomberg since
the information was confidential.
Chrysler LLC commented that it was disappointed at the decision.
Chrysler claimed that in exchange for financial accommodations
to Plastech, the Debtor agreed that all tooling -- machinery and
equipment Plastech uses in manufacturing 500 component parts for
Chrysler's automobiles -- are property of Chrysler. It
contended it is entitled to recover the tooling after it
terminated its supplier contracts with Plastech prepetition.
Plastech, however, asserted that Chrysler is prohibited by the
U.S. Bankruptcy Code from seizing the equipment, most of which
are also used in manufacturing component parts for other
customers, which include General Motors Corporation, Ford Motor
Company and Johnson Controls, Inc. Plastech also warned it
would lose 15% of its annual revenues if Chrysler is allowed to
take possession of the tooling. Chrysler accounts for about
US$200,000,000 from Plastech's annual sales of approximately
US$1,200,000,000 to US$1,300,000,000.
Feb. 14 and 15 Hearings
The Court said it carefully considered the briefs filed by
Chrysler, the Debtors and other parties-in-interest, as well as
the testimony of the eight witnesses presented by Plastech and
Chrysler, and the exhibits introduced into evidence.
1) All Tooling Bound by Automatic Stay
Section 362(a) of the Bankruptcy Code operates as a stay with
respect to "any act to obtain possession of property of the
estate or of property from the estate or to exercise control
over property of the estate."
The Court affirmed the Debtors' contentions that the automatic
stay applies to both the tooling paid by Chrysler and the
tooling that Chrysler has not paid for. Chrysler paid over
US$167,000,000 for tooling, and but owes US$13,400,000 with
respect to some of the tooling utilized by Plastech to make
parts for Chrysler. "Even assuming that the Debtor has only a
possessory interest in the tooling paid for by Chrysler, that is
a sufficient interest by itself to cause the application of the
automatic stay," Judge Shefferly said.
2) Balancing of Interests Favor Plastech
Chrysler explained it will suffer economic harm if the stay is
not lifted under Section 362(d)(1). But Plastech also showed it
will suffer economic harm if the Court rules in favor of
Chrysler.
Richard Smidt, senior manager of material supply operations at
Chrysler, testified that if the said tools are not delivered to
Chrysler by the end of their current interim agreement
(currently Feb. 27, 2008), it could be as little as five hours
before Chrysler would see disruptions in its assembly lines,
which would be followed by lay offs and, ultimately, substantial
damages to Chrysler.
On the other hand, if Chrysler is permitted to take possession
of the tooling, many of the Debtors' plants will have to be
promptly shut down. Mathew Demars, Plastech's president of
interior and exterior business units, testified that of the
company's 36 manufacturing facilities, 21 produce parts for
Chrysler. Of the 21, two are entirely engaged in making parts
for Chrysler and another 9 of them have 25% or more of Chrysler
revenue as part of their operating structure. The cost to close
these plants is US$8,000,000 to US$9,000,000 per facility
according to Mr. Demars.
The Court also noted that many parties will be greatly affected,
if not destroyed, by a lift of the automatic stay at this point
in the Chapter 11 case, which is in its infancy. Aside from
their 7,700 employees and secured creditors asserting claims
over the Debtors' assets, General Motors, Ford, and JCI depend
on the Debtors' business, for component parts. "Chrysler's
rights and interests are valid and important, but so are those
of the Debtor and the other constituents in this case," Judge
Shefferly said.
After considering evidence, including the impact upon different
parties, the Court concluded that Chrysler has not met its
burden of proof to demonstrate "cause" to lift the automatic
stay under Section 362(d)(1).
3) Tooling Necessary for Plastech's Reorganization
The Court also took into consideration Section 362(d)(2), which
allows the lifting of the stay with respect to property if (A)
the debtor does not have an equity in the property; and (B) the
property is not necessary to an effective reorganization.
Judge Shefferly held that evidence demonstrates that Plastech
does not have any equity in the tooling that Chrysler has paid
for. He noted that even without the express provisions of the
tooling acknowledgment in the First and Second Accommodation
Agreements, the Debtor still has no equity in the tooling paid
for by Chrysler.
The Court, however, was convinced that if Chrysler takes
immediate possession of the tooling, the Debtor will not be able
to continue to provide parts uninterrupted to its other major
customers and therefore any prospect of an effective
reorganization will be lost. Donald MacKenzie, the Debtor's
financial advisor from Conway MacKenzie & Dunleavy, testified
that as of February 1, 2008 (when Chrysler delivered its
termination letter to Plastech), the Debtor still had, among
other things, a proven capability to produce component parts,
with substantial customers, significant contracts, a strong work
force and a supportive group of lenders.
4) Chrysler Would Have Recovered Tooling Absent Plastech's
Chapter 11
Judge Shefferly said he does not share some of the parties'
views that Chrysler's conduct was "over reaching," and
"precipitous," and that its damages, if any, are "self
inflicted."
Judge Shefferly stated Chrysler took actions that it believed
were in its best interest and consistent with its contractual
provisions when it sent the Feb. 1, 2008 letter and filed suit
in the Wayne County Circuit Court. "Had the Debtor not filed
Chapter 11, Chrysler's exercise of those rights might now be
concluded. But the larger point here is that the Debtor did
file a Chapter 11 case and exercised a legitimate right that it
has under the law in doing so."
About Plastech Engineered Products
Based in Dearborn, Michigan, Plastech Engineered Products, Inc.
-- http://www.plastecheng.com/-- is full-service automotive
supplier of interior, exterior and underhood components. It
designs and manufactures blow-molded and injection-molded
plastic products primarily for the automotive industry.
Plastech's products include automotive interior trim, underhood
components, bumper and other exterior components, and cockpit
modules. Plastech's major customers are General Motors, Ford
Motor Company, and Toyota, as well as Johnson Controls, Inc.
Plastech is a privately held company and is the largest family-
owned company in the state of Michigan. The company is
certified as a Minority Business Enterprise by the state of
Michigan. Plastech maintains more than 35 manufacturing
facilities in the midwestern and southern United States. The
company's products are sold through an in-house sales force.
The company and eight of its affiliates filed for Chapter 11
protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C.,
represent the Debtors in their restructuring efforts. The
Debtors chose Jones Day as their special corporate and
litigation counsel. Lazard Freres & Co. LLC serves as the
Debtors' investment bankers, while Conway, MacKenzie & Dunleavy
provide financial advisory services. The Debtors also employed
Donlin, Recano & Company as their claims and noticing agent.
An Official Committee of Unsecured Creditors has been appointed
in the Debtors' cases.
As of Dec. 31, 2006, the company's books and records
reflected assets totaling US$729,000,000 and total liabilities
of US$695,000,000. (Plastech Bankruptcy News, Issue No. 7;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
About Chrysler LLC
Based in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter on Nov. 12, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Chrysler LLC and DaimlerChrysler Financial
Services Americas LLC and removed it from CreditWatch with
positive implications, where it was placed Sept. 26, 2007. S&P
said the outlook is negative.
CHRYSLER LLC: Plastech Mulls Other Restructuring Alternatives
-------------------------------------------------------------
Plastech Engineered Products Inc. and its debtor-affiliates are
in talks with their lenders and major customers about other
possible restructuring alternatives.
At the hearing on Chrysler LLC's request to lift the stay to
recover tooling currently in the Debtors' possession, it was
disclosed that after the Debtors signed their second
accommodation agreement where they obtained additional funding
from major customers, Plastech considered several restructuring
alternatives to address its liquidity difficulties and financial
conditions.
Plan "A" would involve a strategic business combination, merger
or acquisition as a going concern. These discussions were
mostly between Plastech and Johnson Controls, Inc. JCI was by
far the largest customer of the Debtor.
As reported in the Troubled Company Reporter on Feb. 21, 2008,
Donald S. MacKenzie, a senior managing director at Conway
MacKenzie & Dunleavy, testified before the U.S. Bankruptcy Court
for the Eastern District of Michigan that Johnson Controls
considered acquiring the privately held company in the weeks
before it sought Chapter 11. Mr. MacKenzie also said that JCI
may still be interested in acquiring Plastech.
JCI and the three major U.S. car makers Ford Motor Company,
General Motors Corporation, and Chrysler have agreed to make
advance payments to Plastech, a condition for Chrysler to obtain
a US$38,000,000 financing from a syndicate of lenders led by
Bank of America, N.A.
Plan "B" was a stand alone restructuring that would involve
making significant cost reductions to Plastech's operations and
might involve a de-leveraging of the balance sheet, including a
debt for equity swap with certain of the Debtor's lenders. Plan
"B" might also include additional cash from some combination of
existing stakeholders or third party investors.
In the event that Plan "A" or Plan "B" did not materialize, the
Debtor and its advisors would consider Plan "C" consisting of an
orderly liquidation.
During the short time that the Second Accommodation Agreement
was in effect -- Jan. 22 until Jan. 31, 2008 -- the Debtor
continued discussions with the Major Customers regarding the
restructuring alternatives. Conway MacKenzie & Dunleavy,
Plastech's financial advisor, also had discussions with possible
investors.
During the meetings among the parties, BBK, Chrysler's financial
consultant, and CMD prepared various analyses of the Debtor's
financial condition and possible restructurings:
-- BBK's draft analysis for these discussions projected
approximately US$61,000,000 of earnings before income
tax, depreciation and amortization (EBITDA) for the
Debtor for 2008. CMD was projecting approximately
US$85,000,000 of EBITDA for the Debtor for 2008. In
either case, the projected EBITDA would be insufficient
to comply with covenants that the Debtor had with its
lenders that required US$100,000,000 of EBITDA for the
Debtor for 2008.
-- BBK also advised Chrysler that the Debtor appeared to be
insolvent in January 2008. The Debtor's cash management
worksheets for the critical days during the last week of
January 2008 showed that the Debtor had net outstanding
checks during each of those days in excess of the actual
credit line available to it, although on each of those
days it appears that the checks scheduled to clear on a
given day were less than the cash available for the day.
The Debtor maintained that it was not insolvent at that
time.
The Debtor continued its discussions with the Major Customers
during the last week of January in an effort to induce them to
provide further financial accommodations. The draft of the
Third Accommodation Agreement provided for a request for
forbearance from the lenders until April 15, 2008, during which
time the Debtor would embark upon a sale process with milestones
set along the way for the development of a restructuring
transaction. The draft of the Third Accommodation Agreement was
never executed.
During meetings and discussions with the Major Customers, the
Debtor requested that the additional accommodation of funds be
received by no later than Feb. 4, 2008, because the Debtor's
cash flow showed that it would be out of funds at that time.
In connection with the proposed Third Accommodation Agreement,
Chrysler determined that it would be less costly if it would
implement its own plan "B" by moving its tooling from the Debtor
to other suppliers to resource the parts previously made by the
Debtor for Chrysler. Chrysler concluded it would have to put in
another US$60,000,000 and perhaps up to US$100,000,000 over the
next four years. This was coming on the heels of a
US$1,600,000,000 loss in 2007 by Chrysler. Chrysler's decision
was influenced greatly by the recent experience it had with the
bankruptcy case of Collins & Aikman in which Chrysler had put in
US$400,000,000 in accommodations for the troubled supplier.
On Feb. 1, 2008, Larry Walker, director of exterior procurement
for Chrysler, delivered a letter to Julie Brown, CEO of
Plastech. The letter said that Chrysler is terminating all
supply agreements with Plastech, and it is taking possession of
all tooling associated with Chrysler's production.
Chrysler immediately filed suit against the Debtor in Wayne
County Circuit Court and obtained an ex parte temporary
restraining order and order of possession that required the
Debtor to immediately deliver possession of all of the tooling
that it utilized in the production of Chrysler's parts.
Plastech filed the Chapter 11 case after Chrysler obtained the
restraining order from the Wayne County Court.
About Plastech Engineered Products
Based in Dearborn, Michigan, Plastech Engineered Products, Inc.
-- http://www.plastecheng.com/-- is full-service automotive
supplier of interior, exterior and underhood components. It
designs and manufactures blow-molded and injection-molded
plastic products primarily for the automotive industry.
Plastech's products include automotive interior trim, underhood
components, bumper and other exterior components, and cockpit
modules. Plastech's major customers are General Motors, Ford
Motor Company, and Toyota, as well as Johnson Controls, Inc.
Plastech is a privately held company and is the largest family-
owned company in the state of Michigan. The company is
certified as a Minority Business Enterprise by the state of
Michigan. Plastech maintains more than 35 manufacturing
facilities in the midwestern and southern United States. The
company's products are sold through an in-house sales force.
The company and eight of its affiliates filed for Chapter 11
protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C.,
represent the Debtors in their restructuring efforts. The
Debtors chose Jones Day as their special corporate and
litigation counsel. Lazard Freres & Co. LLC serves as the
Debtors' investment bankers, while Conway, MacKenzie & Dunleavy
provide financial advisory services. The Debtors also employed
Donlin, Recano & Company as their claims and noticing agent.
An Official Committee of Unsecured Creditors has been appointed
in the Debtors' cases.
As of Dec. 31, 2006, the company's books and records reflected
assets totaling US$729,000,000 and total liabilities of
US$695,000,000. (Plastech Bankruptcy News, Issue No. 7;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
About Chrysler LLC
Based in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter on Nov. 12, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Chrysler LLC and DaimlerChrysler Financial
Services Americas LLC and removed it from CreditWatch with
positive implications, where it was placed Sept. 26, 2007. S&P
said the outlook is negative.
CHRYSLER LLC: Plastech to Continue Supplying Parts Until Feb. 27
----------------------------------------------------------------
Plastech Engineered Products Inc. and its debtor-affiliates, and
Chrysler LLC have agreed to an extension of their interim
production agreement, under which Plastech will continue to
manufacture and deliver component parts to Chrysler until
Feb. 27, 2008.
Pursuant to the initial interim agreement between the parties:
-- Chrysler was obligated to make certain payments to
Plastech in conjunction with the continued production of
component parts; and
-- The Debtors are to allow BBK, as agents for Chrysler, to
have supervised access to Plastech facilities for the
purpose of inspecting and conducting an inventory of all
tooling used for Chrysler production.
The parties reached the interim agreement before the U.S.
Bankruptcy Court for the Eastern District of Michigan denied
Chrysler LLC's request to pull out the tooling equipment from
Plastech's plants.
About Plastech Engineered Products
Based in Dearborn, Michigan, Plastech Engineered Products, Inc.
-- http://www.plastecheng.com/-- is full-service automotive
supplier of interior, exterior and underhood components. It
designs and manufactures blow-molded and injection-molded
plastic products primarily for the automotive industry.
Plastech's products include automotive interior trim, underhood
components, bumper and other exterior components, and cockpit
modules. Plastech's major customers are General Motors, Ford
Motor Company, and Toyota, as well as Johnson Controls, Inc.
Plastech is a privately held company and is the largest family-
owned company in the state of Michigan. The company is
certified as a Minority Business Enterprise by the state of
Michigan. Plastech maintains more than 35 manufacturing
facilities in the midwestern and southern United States. The
company's products are sold through an in-house sales force.
The company and eight of its affiliates filed for Chapter 11
protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C.,
represent the Debtors in their restructuring efforts. The
Debtors chose Jones Day as their special corporate and
litigation counsel. Lazard Freres & Co. LLC serves as the
Debtors' investment bankers, while Conway, MacKenzie & Dunleavy
provide financial advisory services. The Debtors also employed
Donlin, Recano & Company as their claims and noticing agent.
An Official Committee of Unsecured Creditors has been appointed
in the Debtors' cases.
As of Dec. 31, 2006, the company's books and records
reflected assets totaling US$729,000,000 and total liabilities
of US$695,000,000. (Plastech Bankruptcy News, Issue No. 6;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
About Chrysler LLC
Based in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter on Nov. 12, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Chrysler LLC and DaimlerChrysler Financial
Services Americas LLC and removed it from CreditWatch with
positive implications, where it was placed Sept. 26, 2007. S&P
said the outlook is negative.
PETROLEOS DE VENEZUELA: Earns US$896 Mln. in First Half of 2007
---------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA told
Matthew Walter at Bloomberg News that its profit dropped 69% to
US$896 million in the first six months of 2007, compared to
2006.
Petroleos de Venezuela said that its overall revenue decreased
US$7.96 billion to US$42.9 billion in the first half of last
year, from 2006.
Petroleos de Venezuela increased investments to US$10.56 billion
in 2007, from US$5.82 billion in 2006, Petroleos de Venezuela
head and oil and energy minister Rafael Ramirez told El
Universal.
The government kept 92.5%, or US$42.32 billion of Petroleos de
Venezuela's domestic revenues for oil sales in 2007, El
Universal says, citing Minister Ramirez. Petroleos de
Venezuela's tax contribution as royalties, dividends, and income
tax total US$29.27 billion. Its contribution to fund social
programs totaled US$13.05 billion.
Petroleos de Venezuela's contribution in 2006 totaled US$39.2
billion, El Universal notes. Meanwhile, Petroleos de
Venezuela's tax contributions decreased in 2006 due to the
Venezuelan government's increasing use of the company's monies
to finance social programs, El Universal relates. Petroleos de
Venezuela's domestic income tax payment to US$2.9 billion in
2006, from US$5.1 billion in 2005. Petroleos de Venezuela's tax
contribution -- excluding dividends -- decreased from 40.4% of
gross income in 2005 to 38.7% in 2006.
According to El Universal, Petroleos de Venezuela said in its
audited financial statements in 2006 that royalties rose to
US$18.4 billion in 2006, compared to US$13.3 billion in 2005,
due to high oil prices.
Costs increased 25.8%i to US$18.2 billion in 2006, compared to
2005. Social expenses rose to US$13.7 billion, from US$6.9
billion. The increase in cost and social expense is supposed to
be deducted from the tax base, El Universal states, citing
experts.
Minister Ramirez admitted to El Universal that the figures the
company disclosed last week "do not easily match those reflected
on the 2006 audited financial statement prepared by Alcaraz,
Cabrera & Vazquez," which comprises an accounting section and
was prepared based on international standards, El Universal
says.
El Universal relates that in Petroleos de Venezuela's 2006
balance sheet, the income tax paid totaled US$2.9 billion, but
the sum actually paid was US$7.5 billion, comprising amended
return and pending taxes for 2004 and 2005.
"In the past, there was a deliberate policy not to pay taxes.
We have been changing that, and as of this year we have our
fiscal obligations updated," Minister Ramirez commented to El
Universal.
Minister Ramirez told El Universal that Petroleos de Venezuela
is preparing to fill form 20-F or annual financial statement
with the U.S. Securities and Exchange Commission to give an
account to the Venezuelan people, rather than the U.S.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
To date, Petroleos de Venezuela SA carries Fitch's BB- long term
issuer default rating and local currency long term issuer
default rating. Fitch said the ratings outlook was negative.
PETROLEOS DE VENEZUELA: Opens PDVALOTO Outlets in Catia
-------------------------------------------------------
The foodstuff distribution network developed by Petroleos de
Venezuela S.A. is widening up after opening nine outlets called
PDVALITOS with the help of community councils in the Great
Caracas. Now, 23 outlets have been deployed throughout the
capital city.
During the opening of a PDVALITO at the Isaias Medina Angarita
community in Catia, PDVSA Vice-President of Refining, Marketing
and Supply Asdrubal Chavez said that the PDVAL network has
already 26 outlets in 16 states.
With regard to the operations of this novel scheme of food
supply, the PDVSA senior official highlighted the cooperation of
the army, "because many of these outlets are located in
garrisons." He added that almost 400 trucks carry the
commodities everyday. "Based on the combination of the
facilities of PDVSA, the army and Mercal, the foodstuff is
reaching the whole Venezuelan territory."
PDVAL sells eight staples that have been included gradually. A
total of 27 food items are estimated to be distributed by May,
which is the goal for 2008.
"We expect to place about 74,000 tons between February and
March. However, by April we will provide the whole country with
150,000 tons of products," said Asdrubal Chavez. Accordingly,
the PDVAL and Mercal networks ensure supply to approximately 33
percent of the people.
In addition, the PDVSA VP thanked the community councils and
Mission Ribas for joining efforts and backing this tool of
alimentary sovereignty bolstered by the national oil and gas
industry.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
To date, Petroleos de Venezuela SA carries Fitch's BB- long term
issuer default rating and local currency long term issuer
default rating. Fitch said the ratings outlook was negative.
PETROLEOS DE VENEZUELA: Wants Freezing Injunction Lifted
--------------------------------------------------------
Petroleos de Venezuela SA asked the London High Court to revoke
an injunction freezing the company's US$12-billion assets, El
Universal reports.
According to the report, a court order was issued following a
motion filed by US oil major ExxonMobil.
As reported in the Troubled Company Reporter-Latin America on
Feb. 11, 2008, PDVSA is barred from taking or disposing of up to
US$12 billion in petroleum assets worldwide after courts in
Britain and the U.S. ordered freezing of those assets.
PDVSA's lawyers stated that the hearing, which they were unaware
whether it would be public or private, would occur as of next
Wednesday morning at the London Royal Court of Justice, El
Universal relates. The hearing would take three and a half
days.
John Fordham, with legal firm Stephenson Harwood, asserted that
Venezuelan conglomerate preferred the hearing to be public
"because there has been so much publicity around this topic that
it has become public," the report adds.
In addition, El Universal relates, a US Federal Court in New
York upheld an order to freeze US$300 million in PDVSA's bank
accounts last week at Exxon Mobil's request.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
To date, Petroleos de Venezuela SA carries Fitch's BB- long term
issuer default rating and local currency long term issuer
default rating. Fitch said the ratings outlook was negative.
===========
X X X X X X
===========
* BOND PRICING: For the Week February 18 - February 22, 2008
------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Argnt-Bocon PR11 2.000 12/3/10 ARS 64.00
Argnt-Bocon PR13 2.000 3/15/24 ARS 68.47
Arg Boden 2.000 9/30/08 ARS 29.90
Argent-Par 0.630 12/31/38 ARS 41.53
BRAZIL
------
CESP 9.750 1/15/15 BRL 61.25
CAYMAN ISLANDS
--------------
Vontobel Cayman 4.250 2/22/08 CHF 57.75
Vontobel Cayman 5.150 2/22/08 CHF 69.70
Vontobel Cayman 6.400 3/28/08 CHF 73.30
Vontobel Cayman 6.533 3/27/08 CHF 72.20
Vontobel Cayman 7.200 2/22/08 USD 46.80
Vontobel Cayman 7.250 3/29/49 USD 70.00
Vontobel Cayman 7.450 2/22/08 CHF 50.20
Vontobel Cayman 7.700 2/22/08 CHF 73.30
Vontobel Cayman 7.900 2/22/08 CHF 47.60
Vontobel Cayman 8.250 4/25/08 CHF 67.00
Vontobel Cayman 8.250 7/28/08 CHF 51.40
Vontobel Cayman 8.300 3/20/08 CHF 55.00
Vontobel Cayman 8.500 3/27/08 CHF 57.85
Vontobel Cayman 8.700 2/22/08 CHF 59.35
Vontobel Cayman 8.750 3/27/08 CHF 48.60
Vontobel Cayman 8.900 3/27/08 CHF 71.50
Vontobel Cayman 9.050 7/1/08 CHF 74.00
Vontobel Cayman 9.100 10/31/08 CHF 67.60
Vontobel Cayman 9.250 2/22/08 CHF 64.35
Vontobel Cayman 9.600 2/22/08 CHF 44.60
Vontobel Cayman 10.000 10/24/08 CHF 60.20
Vontobel Cayman 10.300 2/22/08 EUR 74.30
Vontobel Cayman 10.350 2/22/08 EUR 70.50
Vontobel Cayman 10.400 7/8/08 CHF 74.30
Vontobel Cayman 10.450 2/22/08 CHF 72.50
Vontobel Cayman 10.800 9/26/08 CHF 62.75
Vontobel Cayman 10.850 3/27/08 EUR 62.15
Vontobel Cayman 10.900 9/26/08 CHF 60.00
Vontobel Cayman 11.000 6/20/08 CHF 48.40
Vontobel Cayman 11.500 6/27/08 EUR 64.75
Vontobel Cayman 11.500 7/22/08 CHF 69.80
Vontobel Cayman 13.500 2/22/08 CHF 48.20
JAMAICA
-------
Jamaica Govt LRS 7.500 10/6/12 JMD 72.63
PUERTO RICO
-----------
Puerto Rico Cons. 5.900 4/15/34 USD 62.00
Puerto Rico Cons. 6.000 12/15/34 USD 71.00
VENEZUELA
---------
Petroleos de Ven 5.250 4/12/17 USD 68.95
Petroleos de Ven 5.375 4/12/27 USD 68.72
Petroleos de Ven 5.500 4/12/37 USD 58.62
Venezuela 7.000 3/31/38 USD 73.90
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marie Therese V. Profetana, Sheryl Joy P. Olano,
Rizande de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
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* * * End of Transmission * * *