T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, February 27, 2008, Vol. 9, No. 41 Headlines A R G E N T I N A ARTES GRAFICAS: Proofs of Claim Verification Ends on April 9 BEATRICE MARKETS: Proofs of Claim Verification Ends on May 14 BLANCA NIEVES: Proofs of Claim Verification Ends on March 12 CALDERON NILDA: Proofs of Claim Verification Ends on March 31 COLETOUR TRANSPORTE: Claims Verification Ends on March 27 DANA CORP: Reorganized Company Names Directors and Officers FORD MOTOR: To Disclose Deal With Tata Motors on March 6 or 7 GREIF INC: Board Declares US$0.28 Per Share Class A Dividends GREIF INC: Stockholders Elect Mark A. Emkes as Director IDS SA: Trustee Will Verify Proofs of Claim Until April 16 KUSHAN SRL: Proofs of Claim Verification Is Until March 28 LOGISTICA Y TRANSPORTE: Trustee to Verify Claims Until April 30 MONROE 2444: Files Reorganization Petition RULLO AUTOMOTORES: Proofs of Claim Verification Ends on April 10 SACOM SA: Files Reorganization Petition SERRA LISANDRO: Proofs of Claim Verification Is Until March 31 TELEFONICA DE ARGENTINA: Earns ARS72 Million in 2007 TELEFONICA DE ARGENTINA: Installs Communication Software for DHL B E R M U D A FOSTER WHEELER: Closes Biokinetics Acquisition GP INVESTMENTS: Raises US$187.8 Million in New Share Sale INTELSAT LTD: Partners With SISLink to Launch HD-Ready Service REFCO INC: SEC Sues Ex-CEO Bennett for Orchestrating Fraud REFCO INC: Ex-Finance Chief Robert Trosten Admits Fraud Charges B R A Z I L AMERICAN AXLE: Declares First Qtr. Dividend Payable on March 28 BANCO DO BRASIL: Mulls Increasing Retail Operations in LatAm BANCO NACIONAL: Approves BRL32-Million Financing to Fundacao BRASIL TELECOM: Inks O&M Services Deal With Alcatel-Lucent BROWN SHOE: Richard Schumacher to Retire Effective March 31 CAIXA ECONOMICA: To Increase Lending by 30% This Year DELPHI CORP: Must Pay Professionals US$49 Mln in Fees & Expenses GENERAL MOTORS: Inks Settlement Pact With UAW and Union Retirees GERDAU SA: Cleary Holdings Acquisition Good for Firm, Says Ativa PERDIGAO SA: Net Income Rises 174% to BRL321.3 Million in 2007 PRIDE INTERNATIONAL: Closes Sale of Three Rigs for US$213 Mil. PRIDE INTERNATIONAL: Names David Hager to Board of Directors UNIAO DE BANCOS: To Expand Points of Sale Network by 400 Units C A Y M A N I S L A N D S AH INC: Proofs of Claim Filing Is Until March 6 ARIANE HEALTH: Proofs of Claim Filing Deadline Is March 6 CHENGWEI AAC: Sets Final Shareholders' Meeting for March 6 PARIS HOTEL: Proofs of Claim Filing Deadline Is March 6 THE AIDA C FUND LIMITED: Proofs of Claim Filing Ends on March 6 C H I L E BUCYRUS INTERNATIONAL: Amends RAG Coal Share Purchase Deal HOST HOTELS: Fitch to Monitor Impact of $500MM Stock Repurchase C O L O M B I A ECOPETROL: Investing US$38 Billion for Exploration & Production SOLUTIA INC: Drops Suit After Banks Recommit on Exit Financing SOLUTIA INC: Court Delays Ruling on Citigroup CEO's Deposition SOLUTIA INC: Gets Exit Financing; To Emerge Tomorrow C O S T A R I C A SIRVA INC: U.S. Trustee Appoints Unsecured Creditors' Committee SIRVA INC: Planned Conflicts Firm Rebuts US Trustee's Objection SIRVA INC: 360networks Committee Wants Claims Order Vacated D O M I N I C A N R E P U B L I C PRC LLC: Creditors Panel Wants More Time to Review DIP Financing PRC LLC: Inks Pact Recognizing Law Debenture as Collateral Agent PRC LLC: Court Okays Services Agreement With Advanced Contact E C U A D O R PETROECUADOR: Sells Oriente & Napo Crude in Short-Term Contracts E L S A L V A D O R ALCATEL-LUCENT SA: Inks O&M Services Deal With Brasil Telecom G U Y A N A FLOWSERVE CORP: Inks Strategic Cooperation Deal With Sinopec J A M A I C A CABLE & WIRELESS: Will Dismiss 100 Workers in Jamaica NATIONAL WATER: Says Hermitage Dam Water Storage Levels Drop M E X I C O ARROW ELECTRONICS: Inks Pact to Buy All of LOGIX Shares AXTEL SAB: Posts MXN81.6 million Comprehensive Loss in 4th Qtr. DURA AUTOMOTIVE: Court OKs Amendments to Revolving DIP Debt Pact DURA AUTOMOTIVE: Must Appear at Final Hearing to OK Bonus Plan EPICOR SOFTWARE: Borrows US$160 Mil. to Finance NSB Acquisition FOAMEX INTERNATIONAL: Expects Unit to Comply With Covenants ODYSSEY RE: Hires Brian Young as CEO for London Market Division WEST CORP: Plans to Purchase Genesys for US$269 Million P E R U QUEBECOR WORLD: Auction Prices Bonds at 41.25% QUEBECOR WORLD: Court Okays Payment of Prepetition Commissions QUEBECOR WORLD: Various Entities Disclose Stake in Company P U E R T O R I C O AVNET INC: Moody's Lifts Corporate Family Rating to Baa3 COOPER COMPANIES: Appoints John Weber as CooperVision President FOOT LOCKER: Allowable Dividend Payments Increased to US$95 Mil. MYLAN INC: Taps E. Leeds as VP & Global Investor Relations Head SUNCOM WIRELESS: Concludes Sale to T-Mobile V E N E Z U E L A PETROLEOS DE VENEZUELA: Receivables Under Pacts Up US$310 Mil. PETROLEOS DE VENEZUELA: Offers to Withdraw Stake in Chalmette V I R G I N I S L A N D S INNOVATIVE COMM: To Auction Innovative Telephone This Year - - - - - ================= A R G E N T I N A ================= ARTES GRAFICAS: Proofs of Claim Verification Ends on April 9 ------------------------------------------------------------ Atilio Mossi, the court-appointed trustee for Artes Graficas Patagonia SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until April 9, 2008. Mr. Mossi will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 26 in Buenos Aires, with the assistance of Clerk No. 51, 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 Artes Graficas 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 Artes Graficas' accounting and banking records will be submitted in court. La Nacion didn't state the submission deadlines of the reports. Mr. Mossi is also in charge of administering Artes Graficas' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Artes Graficas Patagonia SRL Patron 6041 Buenos Aires, Argentina The trustee can be reached at: Atilio Mossi Montevideo 527 Buenos Aires, Argentina BEATRICE MARKETS: Proofs of Claim Verification Ends on May 14 ------------------------------------------------------------- Jorge Vazquez, the court-appointed trustee for Beatrice Markets SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 14, 2008. Mr. Vazquez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 3, 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 Beatrice Markets 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 Beatrice Markets' accounting and banking records will be submitted in court. La Nacion didn't state the submission deadlines of the reports. Mr. Vazquez is also in charge of administering Beatrice Markets' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Beatrice Markets SRL Pasaje Torrent 1273 Buenos Aires, Argentina The trustee can be reached at: Jorge Vazquez Bartolome Mitre 2593 Buenos Aires, Argentina BLANCA NIEVES: Proofs of Claim Verification Ends on March 12 ------------------------------------------------------------ Roberto Leibovicius, the court-appointed trustee for Blanca Nieves SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until March 12, 2008. Mr. Leibovicius 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 Blanca Nieves 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 Blanca Nieves' accounting and banking records will be submitted in court. La Nacion didn't state the submission deadlines of the reports. Mr. Leibovicius is also in charge of administering Blanca Nieves' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Blanca Nieves SRL Lafinur 3190 Buenos Aires, Argentina The trustee can be reached at: Roberto Leibovicius Tucuman 1585 Buenos Aires, Argentina CALDERON NILDA: Proofs of Claim Verification Ends on March 31 ------------------------------------------------------------- Leandro Andres Pretto, the court-appointed trustee for the bankruptcy proceeding of Calderon Nilda Mercedes (s/Extension de Quiebra de Durante y Cia. S.C.C.), will be verifying creditors' proofs of claim until March 31, 2008. Mr. Pretto will present the validated claims in court as individual reports on May 15, 2008. The National Commercial Court of First Instance in Santa Fe 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 Calderon Nilda 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 Calderon Nilda's accounting and banking records will be submitted in court on June 27, 2008. Mr. Pretto is also in charge of administering Calderon Nilda's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Calderon Nilda Mercedes Sarmiento 1113, Carcarana Departamento San Lorenzo, Santa Fe Argentina COLETOUR TRANSPORTE: Claims Verification Ends on March 27 --------------------------------------------------------- Beatriz Dominguez, the court-appointed trustee for Coletour Transporte SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until March 27, 2008. Ms. Dominguez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 24 in Buenos Aires, with the assistance of Clerk No. 47, 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 Coletour Transporte and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Coletour Transporte's accounting and banking records will be submitted in court. La Nacion didn't state the submission deadlines of the reports. Ms. Dominguez is also in charge of administering Coletour Transporte's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Coletour Transporte SRL Suipacha 536 Buenos Aires, Argentina The trustee can be reached at: Beatriz Dominguez Avenida Rivadavia 2159 Buenos Aires, Argentina DANA CORP: Reorganized Company Names Directors and Officers ----------------------------------------------------------- Dana Holding Corporation, successor to Dana Corporation, said in a regulatory filing with the U.S. Securities and Exchange Commission that it has appointed nine individuals to its Board of Directors: * Michael J. Burns, * Gary L. Convis, * John M. Devine, * Mark T. Gallogly, * Richard A. Gephardt, * Stephen J. Girsky, * Terrence J. Keating, * Mark A. Schulz, and * Jerome B. York. Subsequent to his election as member of the Board, on the Effective Date, Mr. Burns tendered his resignation as president, chief executive officer, chief operating officer and director, the SEC filing said. On Jan. 31, 2008, when the Third Amended Joint Plan of Reorganization of Old Dana and its debtor-affiliates effective, other former members of the Old Dana Board also resigned pursuant to the terms of the Plan. These resigned members are A. Charles Baillie, David E. Berges, Edmund M. Carpenter, Richard M. Gabrys, Samir G. Gibara, Cheryl W. Grise, James P. Kelly, Marilyn R. Marks and Richard B. Priory. Executive Officers On the Effective Date, Dana named John M. Devine as the company's executive chairman, and elected other executive officers: Executive Officer Position ----------------- -------- John M. Devine Executive Chairman Michael J. Burns President, Chief Executive Officer, and Chief Operating Officer Kenneth A. Hiltz Chief Financial Officer Richard J. Dyer Vice President & Chief Accounting Officer Ralf Goettel President, Europe & Engine Products Groups Paul E. Miller Vice President, Purchasing Nick L. Stanage President, Heavy Vehicle Products Thomas R. Stone President, Global Traction Products Group Robert H. Marcin Chief Administrative Officer In connection with his appointment as Dana's Executive Chairman, the Compensation Committee agreed to provide Mr. Devine: -- a US$1,000,000 annual salary; -- an annual target bonus of 150% of base salary based on the achievement of performance measures set by the Board; -- an initial grant of options to purchase 800,000 shares of Common Stock with an exercise price of US$12.75 based on the closing stock price on the grant date, one third of which will vest on each of Aug. 4, 2008, Aug. 4, 2009 and Aug. 4, 2010; -- an initial term of one year, subject to renewal for additional one-year terms; -- reimbursement for reasonable temporary residence expenses including use of private corporate aircraft up to 30 round trips; -- inclusion in future change of control agreements; and -- participation in life and disability insurance and other benefit programs of Dana generally applicable to senior executives. According to Marc S. Levin, Dana's general counsel and secretary, Mr. Devine's employment agreement will provide for severance payments in the event that his position with the company is involuntarily terminated without cause or terminated by Mr. Devine for "good reason," as well as payments following a change in control of the company. Indemnification Agreements Dana also entered into an indemnification agreement with each current member of the company's Board of Directors. The Indemnification Agreements generally provide that the company will indemnify the D&O to the fullest extent permitted or required by the laws of the state of Delaware, against any and all expenses, judgments, fines, penalties and amounts paid in settlement of the claim. About Dana Corp. Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total assets and US$7,665,000,000 in total debts resulting in a total shareholders' deficit of US$534,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represented the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, served as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners served as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represented the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC served as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. The Debtors' Third Amended Joint Plan of Reorganization was deemed effective as of Jan. 31, 2008. Dana Corp., starting on the Plan Effective Date, operated as Dana Holding Corporation. (Dana Corporation Bankruptcy News, Issue No. 71; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 12, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Toledo, Ohio-based Dana Holding Corp. following the company's emergence from Chapter 11 on Feb. 1, 2008. The outlook is negative. At the same time, Standard & Poor's assigned Dana's US$650 million asset-based loan revolving credit facility due 2013 a 'BB+' rating (two notches higher than the corporate credit rating) with a recovery rating of '1', indicating an expectation of very high recovery in the event of a payment default. In addition, S&P assigned a 'BB' bank loan rating to Dana's US$1.43 billion senior secured term loan with a recovery rating of '2', indicating an expectation of average recovery. FORD MOTOR: To Disclose Deal With Tata Motors on March 6 or 7 ------------------------------------------------------------- Ford Motor Co. will announce the sale of its Jaguar and Land Rover luxury brands to Tata Motors Limited on March 6 or 7, media reports say. Tata Motors became the front-runner to buy the two luxury brands, outbidding Mahindra & Mahindra in collaboration with buyout firm Apollo; and One Equity Partners LLC. As reported by the Troubled Company Reporter-Asia Pacific on Feb. 1, 2008, Tata Motors is closing in on an agreement with Ford for the purchase. Last week, Tata and Ford met with British union leaders to resolve final details before drawing up a memorandum of understanding for the sale, AFX News said quoting a report by Automotive News. Media reports noted that the union is satisfied with Tata Motors assuring them, among others, of keeping employment in the United Kingdom at its current level. To pave the way for the final takeover, Tata Motors will sign a three-way Heads of Agreement with Ford and the Jaguar-Land Rover labor union Unite within a few days, The Times of India said citing Dave Osboerne, Motor Industry Leader for Unite. The HoA, a tripartite document, would outline the assurances and agreements reached among the three key players regarding the deal, Mr. Osboerne told the news agency. The parties will also enter into a final memorandum of understanding on the takeover soon, The Times added. Announcement of the deal could have been earlier than March 6 or 7, but it is being delayed so as not to overshadow the introduction of an updated Ford Fiesta at the Geneva auto show next week, Automotive News cited an unnamed source from Ford as saying. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. GREIF INC: Board Declares US$0.28 Per Share Class A Dividends ------------------------------------------------------------- The Board of Directors of Greif, Inc. has declared quarterly cash dividends of US$0.28 per share of Class A Common Stock and US$0.42 per share of Class B Common Stock. The dividends are payable on April 1, 2008, to shareholders of record at close of business on March 17, 2008. Headquartered in Delaware, Ohio, Greif, Incorporated, (NYSE: GEF, GEF.B) -- http://www.greif.com/-- is a world leader in industrial packaging products and services. The company provides extensive expertise in steel, plastic, fibre, corrugated and multi-wall containers for a wide range of industries. Greif also produces containerboard and manages timber properties in the United States. For fiscal year 2006, the company generated approximately US$2.6 billion in net sales and US$326 million in EBITDA. The company has operations in Australia, Argentina, Brazil, Belgium, China, Malaysia, among others. * * * On Nov. 14, 2007, Moody's affirmed the company's Corporate Family Rating at Ba1; Senior Unsecured at Ba2; and Speculative Grade Liquidity of SGL-1 with stable rating outlook. GREIF INC: Stockholders Elect Mark A. Emkes as Director ------------------------------------------------------- At the Greif, Inc., annual meeting of stockholders on Feb. 25, Mark A. Emkes was elected to a one-year term on Greif's Board of Directors. Mr. Emkes joins re-elected members Vicki L. Avril, Michael H. Dempsey, Bruce A. Edwards, Michael J. Gasser, Daniel J. Gunsett, Judith D. Hook and Patrick J. Norton. John F. Finn, also elected for a one-year term, was appointed to Greif's Board in December. Mr. Emkes is chairperson and chief executive officer of Bridgestone Americas Holdings, Inc. and Bridgestone Firestone North American Tire, LLC, based in Nashville, Tennessee. Both Charles R. Chandler and William B. Sparks, Jr., did not stand for re-election and have retired from the Board. Headquartered in Delaware, Ohio, Greif, Incorporated, (NYSE: GEF, GEF.B) -- http://www.greif.com/-- is a world leader in industrial packaging products and services. The company provides extensive expertise in steel, plastic, fibre, corrugated and multi-wall containers for a wide range of industries. Greif also produces containerboard and manages timber properties in the United States. For fiscal year 2006, the company generated approximately US$2.6 billion in net sales and US$326 million in EBITDA. The company has operations in Australia, Argentina, Brazil, Belgium, China, Malaysia, among others. * * * On Nov. 14, 2007, Moody's affirmed the company's Corporate Family Rating at Ba1; Senior Unsecured at Ba2; and Speculative Grade Liquidity of SGL-1 with stable rating outlook. IDS SA: Trustee Will Verify Proofs of Claim Until April 16 ---------------------------------------------------------- Estudio Israelson y Kohan - Consultores, the court-appointed trustee for IDS SA's reorganization proceeding, will be verifying creditors' proofs of claim until April 16, 2008. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 50, 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 IDS SA 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 IDS SA's accounting and banking records will be submitted in court. La Nacion didn't state the submission deadlines of the reports. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 4, 2009. The debtor can be reached at: IDS SA Cervino 3707 Buenos Aires, Argentina The trustee can be reached at: Estudio Israelson y Kohan - Consultores Lavalle 1672 Buenos Aires, Argentina KUSHAN SRL: Proofs of Claim Verification Is Until March 28 ---------------------------------------------------------- Maria Gabriela Diepenbrock, the court-appointed trustee for Kushan S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until March 28, 2008. Ms. Diepenbrock will present the validated claims in court as individual reports on May 13, 2008. The National Commercial Court of First Instance in Santa Fe 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 Kushan 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 Kushan's accounting and banking records will be submitted in court on June 26, 2008. Ms. Diepenbrock is also in charge of administering Kushan's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Maria Gabriela Diepenbrock Tucuman 1657 Buenos Aires, Argentina LOGISTICA Y TRANSPORTE: Trustee to Verify Claims Until April 30 --------------------------------------------------------------- Jose Dolinko, the court-appointed trustee for Logistica y Transporte SA's reorganization proceeding, will be verifying creditors' proofs of claim until April 30, 2008. Mr. Dolinko will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 7 in Buenos Aires, with the assistance of Clerk No. 13, 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 Logistica y Transporte and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Logistica y Transporte's accounting and banking records will be submitted in court. La Nacion didn't state the submission deadlines of the reports. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 23, 2009. The debtor can be reached at: Logistica y Transporte SA Parana 693 Buenos Aires, Argentina The trustee can be reached at: Jose Dolinko Tucuman 1657 Buenos Aires, Argentina MONROE 2444: Files Reorganization Petition ------------------------------------------ Monroe 2444 S.A. has requested for reorganization approval after failing to pay its liabilities since Aug. 28, 2006. The reorganization petition, once approved by the court, will allow Monroe 2444 to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: Monroe 2444 S.A. Monroe 2444 Buenos Aires, Argentina RULLO AUTOMOTORES: Proofs of Claim Verification Ends on April 10 ---------------------------------------------------------------- Emilio Omar Abraham, the court-appointed trustee for Rullo Automotores S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 10, 2008. Mr. Abraham will present the validated claims in court as individual reports on May 23, 2008. The National Commercial Court of First Instance in Santa Fe 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 Rullo Automotores 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 Rullo Automotores' accounting and banking records will be submitted in court on July 7, 2008. Mr. Abraham is also in charge of administering Rullo Automotores' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Rullo Automotores S.A. Parana 123 Buenos Aires, Argentina The trustee can be reached at: Emilio Omar Abraham Viamonte 1592 Buenos Aires, Argentina SACOM SA: Files Reorganization Petition --------------------------------------- Sacom S.A. has requested for reorganization approval after failing to pay its liabilities since Oct. 19, 2007. The reorganization petition, once approved by the court, will allow Sacom to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 20 in Buenos Aires. Clerk No. 39 is assisting the court in this case. The debtor can be reached at: Sacom S.A. Bolivia 1305 Buenos Aires, Argentina SERRA LISANDRO: Proofs of Claim Verification Is Until March 31 -------------------------------------------------------------- Leandro Andres Pretto, the court-appointed trustee for the bankruptcy proceeding of Serra Lisandro Pablo (s/Extension de Quiebra de Durante y Cia. S.C.C.), will be verifying creditors' proofs of claim until March 31, 2008. Mr. Pretto will present the validated claims in court as individual reports on May 15, 2008. The National Commercial Court of First Instance in Santa Fe 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 Serra Lisandro 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 Serra Lisandro's accounting and banking records will be submitted in court on June 27, 2008. Mr. Pretto is also in charge of administering Serra Lisandro's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Serra Lisandro Pablo Sarmiento 1113, Carcarana Departamento San Lorenzo, Santa Fe Argentina TELEFONICA DE ARGENTINA: Earns ARS72 Million in 2007 ---------------------------------------------------- Telefonica de Argentina said that its net profit decreased 67.5% to ARS72 million in 2007, from 2006. Business News Americas relates that Telefonica de Argentina's net profit dropped 71% to ARS222 million in 2006, compared to 2005. BNamericas notes that Telefonica de Argentina's net equity was ARS2.2 billion in December 2007. Telefonica de Argentina is concentrating on the expansion of its broadband infrastructure. Its strategy is to look for alternative sources of income other than traditional telephony. The company will invest heavily in the launch of IPTV services once the local regulator lets telecommunications operators offer broadcasting services, BNamericas says, citing Fitch Ratings analyst Sergio Rodriguez. Telefonica de Argentina has a strong financial profile and has been paying debt due to high free cash flow generation, Mr. Rodriguez told BNamericas. Headquartered in Buenos Aires, Argentina, Telefonica de Argentina SA -- http://www.telefonica.com.ar/-- provides telecommunication services, which include telephony business both in Spain and Latin America, mobile communications businesses, directories and guides businesses, Internet, data and corporate services, audiovisual production and broadcasting, broadband and Business-to-Business e-commerce activities. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2008, Fitch Ratings upgraded its local currency issuer default rating on Telefonica de Argentina to 'BB' from 'BB-'. The ratings agency also affirmed its 'B+' foreign currency issuer default rating on the telecom firm. Telefonica de Argentina's foreign currency rating is rated B2 by Moody's Latin America with a positive outlook. TELEFONICA DE ARGENTINA: Installs Communication Software for DHL ---------------------------------------------------------------- Telefonica de Argentina said that it has installed a communication software for US logistics company DHL's Argentine unit. Business News Americas relates that Telefonica de Argentina provided DHL with an Internet protocol network interconnecting its branches, improving DHL's customer support platform. According to BNamericas, the multi-protocol label switching network connects DHL's 16 offices across Argentina, allowing all branches to share strategic information like billing and traffic. Telefonica de Argentina provided the service through its corporate services unit Telefonica Empresas, BNamericas notes. Telefonica de Argentina will also deploy and conduct maintenance works on the network for DHL, BNamericas states. Headquartered in Buenos Aires, Argentina, Telefonica de Argentina SA -- http://www.telefonica.com.ar/-- provides telecommunication services, which include telephony business both in Spain and Latin America, mobile communications businesses, directories and guides businesses, Internet, data and corporate services, audiovisual production and broadcasting, broadband and Business-to-Business e-commerce activities. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2008, Fitch Ratings upgraded its local currency issuer default rating on Telefonica de Argentina to 'BB' from 'BB-'. The ratings agency also affirmed its 'B+' foreign currency issuer default rating on the telecom firm. Telefonica de Argentina's foreign currency rating is rated B2 by Moody's Latin America with a positive outlook. ============= B E R M U D A ============= FOSTER WHEELER: Closes Biokinetics Acquisition ---------------------------------------------- Foster Wheeler Ltd. has completed the acquisition of 100% of the stock of privately held Biokinetics Inc. from MPA Holdings LP. The company has significantly strengthened its position in the biotech and pharmaceutical markets. This acquisition enables Foster Wheeler to re-establish its position in the North American pharmaceutical market and strengthens its position relative to key US pharmaceutical companies seeking to invest in the US and globally. In addition, this acquisition will provide enhanced capabilities to existing Biokinetics clients. Terms of the transaction were not disclosed. "The pharmaceuticals, biotechnology and healthcare market is a core market segment for Foster Wheeler and is one in which we are committed to growing our market share," said Umberto della Sala, president and chief operating officer of Foster Wheeler Ltd. "This acquisition is part of Foster Wheeler's overall strategy to complement organic growth in our Global Engineering & Construction business with highly targeted acquisitions. This particular transaction enables us to expand our global presence in this sector and further enhance our existing biopharmaceutical skills base. We will be able to deliver comprehensive and responsive capabilities to existing, as well as new, clients, anywhere in the world. We have already established an excellent working relationship with Biokinetics and believe that the combination of our two companies' skills and experience will add value to pharmaceutical companies developing projects in the U.S. and internationally." Biokinetics was established in 1996 and is now a recognized industry leader in process systems design for the biopharmaceutical industry, with expertise in bioprocess unit operations including: * fermentation, mammalian cell culture, bioreactors, bacterial and yeast fermentation recovery, live and attenuated virus processing for vaccines and plasma-derived products; * associated processing and support systems; * pharmaceutical fill-finish and materials handling; * process simulation and optimization; * modular process design; * high-purity water systems; * validation services. About Biokinetics Headquartered in Philadelphia, PA, Biokinetics -- http://www.biokinc.com/-- has additional operations in California and North Carolina in the USA and Carlow in Ireland. It has approximately 130 employees. MPA Holdings LP is a Delaware limited partnership owned by the three principals of Biokinetics: William Brydges, James Dougherty and Anthony Contino. Under the terms of the purchase agreement they will continue as the senior leadership team of the company. About Foster Wheeler Ltd. Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. The company reported total debt of approximately US$150 million at Sept. 30, 2007. GP INVESTMENTS: Raises US$187.8 Million in New Share Sale --------------------------------------------------------- GP Investments Ltd. has raised 318.9 million reais (US$187.8 million) through the sale of new Brazilian depositary receipts, Guillermo Parra-Bernal of Bloomberg News reports. As published in Valor Economico newspaper, the company has sold the BDRs for 59 reais each. The report adds that each BDR represents one Class A share. Banco de Investimentos Credit Suisse Brasil SA and Citigroup Global Markets Brasil managed the sale, Bloomberg relates. Based in Hamilton, Bermuda, GP Investments Ltd. - http://www.gpinvestments.com/-- is a leading private equity player in Brazil. The GP Investments' activities consist of its core private equity business and its asset management business, and its mission is to generate higher than average long-term return to its investors and shareholders. Since its inception in 1993, GP Investments raised more than US$1.5 billion from Brazilian and international investors, and acquired more than thirty-five companies in ten different sectors. On May 2006, GP Investments concluded its Initial Public Offering -- IPO, becoming the first listed private equity company in Brazil. * * * In October 2007, Fitch Ratings assigned a 'B/RR4' rating to GP Investments Ltd's extension of its 2007 senior perpetual notes program for US$40 million. Fitch said the Rating Outlook is Positive. INTELSAT LTD: Partners With SISLink to Launch HD-Ready Service -------------------------------------------------------------- Intelsat Ltd. has formed a strategic alliance with SISLink, the leading provider of satellite uplink services in Europe, to launch an HD-ready automated video delivery service for satellite newsgathering (SNG) users in the United States. The strategic alliance will offer Intelsat(R) uPod(TM), a fully integrated broadcasting solution that will allow U.S. SNG operators to execute real-time broadcasting services more efficiently. The new service will blend Intelsat's space and ground infrastructure with SISLink's uPod(TM) system to support web-based scheduling and transmission of live standard and high definition video, as well as voice and Internet communications, between wherever news or sports events are unfolding throughout the continental United States. SISLink's award-winning automated SNG uplink system, uPod, has proven to be the uplink of choice for European broadcasters due to its simplicity, HD compatibility and its reliability. Removing the need for a skilled uplink engineer, uPod allows broadcasters to have a true one-person SNG operation, with increased flexibility yet returning significant cost savings. As part of this agreement, SISLink developed a new, smaller version of the uPod, the uPod Micro, which is small enough to be mounted onto any vehicle. The new service is scheduled to be launched in April 2008, initially targeting customers who lease full-time space segment capacity for SNG applications. A version of the service targeting occasional-use customers is planned for launch later in 2008. "In Intelsat, SISLink has found a partner with a strong business base in the U.S. and a shared focus on exceeding its customers' requirements. Our revolutionary, client-empowering approach to the uplink process combined with Intelsat's reach and flexibility, has made SISLink's most ambitious plan a reality," said David Meynell, SISLink Managing Director. "Together, we are changing the way the world gathers and delivers news content." "Our highly coveted North American Galaxy fleet is unrivaled in the industry, providing the sought-after access news organizations require to meet their broadcasting needs," said Stephen Spengler, Intelsat's Executive Vice President, Sales and Marketing. "By combining our industry-leading strengths, SISLink and Intelsat can now offer the most unique solution for content delivery currently available in the SNG market." Intelsat(R) is registered by Intelsat, Ltd. and uPod(TM) is trademarked by SISLink. About SISLink SISLink was formed in 1989, and is now recognized within the industry as Europe's largest supplier of satellite uplinks, providing uplink services to a wide range of leading news organizations, including Sky News, ITV and ITN. The company's revolutionary and innovative approach to researching and developing new technologies combined with its ongoing commitment to its client base has ensured the successful and continued growth of this first class company. About Intelsat Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. The company has a sales office in Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. S&P said the outlook is stable. REFCO INC: SEC Sues Ex-CEO Bennett for Orchestrating Fraud ---------------------------------------------------------- The U.S. Securities and Exchange Commission filed on Feb. 19 a civil injunctive action in the United States District Court for the Southern District of New York against Phillip R. Bennett, the former chairman and chief executive officer of Refco Inc. and its corporate predecessor, Refco Group Ltd. The Commission's complaint alleges that Mr. Bennett orchestrated a scheme that periodically concealed hundreds of millions of dollars owed to Refco by a private entity that he controlled. The public revelation of Mr. Bennett's scheme in October 2005, two months after the company's initial public offering of common stock, caused hundreds of millions of dollars in losses to Refco shareholders. The complaint also alleges that Mr. Bennett directed practices that artificially inflated Refco's financial results. As a result, the complaint alleges, Mr. Bennett violated Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and Exchange Act Rules 10b-5, 13b2-1, and 15d 14, and aided and abetted Refco's violations of Sections 13(b)(2)(A), 13(b)(2)(B), and 15(d) of the Exchange Act and Exchange Act Rules 15d-2 and 15d-13. According to the complaint, from at least 1998 to October 2005, Mr. Bennett's scheme periodically concealed debt owed to Refco by Refco Group Holdings, Inc., a non-Refco entity that he controlled. The debt was primarily the result of trading losses and operating expenses that Refco transferred over time to RGHI. Refco utilized a series of short-term loans that temporarily transferred the debt to third parties immediately prior to the ends of Refco fiscal periods. A few days after the fiscal periods ended, the transactions were reversed, and the debt was transferred back to RGHI. The Commission's complaint alleges that Mr. Bennett directed the fiscal period-end transactions and took certain actions to implement them, including executing many of the documents used in those transactions. The Commission's complaint also alleges that Mr. Bennett instituted practices that artificially inflated Refco's reported financial results in 2005. The practices involved Refco recording fictitious interest income and income from sham foreign exchange transactions. The inflation of financial results was undertaken by Mr. Bennett to make Refco more attractive to potential investors. The Commission's complaint further alleges that, in 2005, Refco filed with the Commission and provided to investors registration statements and periodic reports that contained materially false and misleading misstatements and omissions. The filings failed to disclose the debt and the period end transactions, and some of the filings reported income that had been fraudulently inflated. Mr. Bennett signed the registrations statements and periodic filings while knowing, or reckless in not knowing, that the filings were materially false and misleading. Moreover, Mr. Bennett explicitly certified the accuracy of the disclosures and financial statements in the periodic filings. The complaint seeks a permanent injunction enjoining Mr. Bennett from violating Section 17(a) of the Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act, and Exchange Act Rules 10b-5, 13b2-1, and 15d 14, and from aiding and abetting violations of Sections 13(b)(2)(A), 13(b)(2)(B), and 15(d) of the Exchange Act and Exchange Act Rules 15d-2 and 15d-13. The complaint also seeks payment by Mr. Bennett of unjust enrichment that he received as a result of his actions, with prejudgment interest thereon, and imposition of civil money penalties against him pursuant to Section 20(d) of the Securities Act and Section 21(d)(3) of the Exchange Act. The U.S. Attorney's Office for the Southern District of New York announced February 15, that Mr. Bennett has pleaded guilty to all twenty counts of a superseding indictment previously returned against him and charging him with conspiracy, securities fraud, making false filings with the Commission, wire fraud, making false statements to Refco's auditors, bank fraud, and money laundering, for his actions in connection with the Refco fraud. The Commission acknowledged the assistance and cooperation of the Office of the United States Attorney for the Southern District of New York, the United States Postal Inspection Service, and the Commodity Futures Trading Commission. The Commission's investigation is continuing. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The company has operations in Bermuda. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. REFCO INC: Ex-Finance Chief Robert Trosten Admits Fraud Charges --------------------------------------------------------------- Robert Trosten, Refco Inc.'s former chief financial officer, pleaded guilty to charges that includes conspiracy to commit securities fraud, wire fraud, bank fraud, money laundering and making false filings to the U.S. Securities and Exchange Commission, Edith Honan and Paritosh Bansal write for Reuters. "I take full responsibility for my conduct and my actions," Mr. Trosten was quoted by Reuters as saying before Judge Naomi Buchwald of the U.S. District Court for the Southern District of New York." I apologize to my family and those I have harmed by my conduct, which I sincerely and deeply regret." "He deeply regrets his involvement in these fraudulent activities, and is attempting to rectify the misjudgment that he made ... by cooperating with the government," Mr. Trosten's lawyers was quoted by Reuters as saying. Mr. Trosten has agreed to serve as a witness in trials of other defendants in the case as part of his guilty plea, Reuters reports. He previously pleaded not guilty. Mr. Trosten's guilty plea followed a similar move by former Refco CEO Phillip Bennet. Messrs. Bennett and Trosten were set to face trial on March 17, 2008, along with Tone Grant, Refco's former president. Mr. Trosten will appear in court in February 2009. Bennett's Guilty Plea As reported in the Troubled Company Reporter-Europe on Feb. 20, 2008, Bennett pleaded guilty to 20 charges that includes conspiracy to commit securities fraud, wire fraud, bank fraud, money laundering and making false filings to the U.S. Securities and Exchange Commission. Mr. Bennett faces a maximum 315 years in prison under federal sentencing guidelines as well as forfeiture of US$2.4 billion in assets. Mr. Bennett's sentencing is set for May 20, 2008. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The company has operations in Bermuda. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. =========== B R A Z I L =========== AMERICAN AXLE: Declares First Qtr. Dividend Payable on March 28 --------------------------------------------------------------- American Axle & Manufacturing Holdings, Inc. declared a cash dividend of US$0.15 per share payable on March 28, 2008 to stockholders of record on all of the company's issued and outstanding common stock as of March 7, 2008. Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 28, 2007, Moody's Investors Service affirmed American Axle & Manufacturing Holdings, Inc.'s Corporate Family rating of Ba3 as well its senior unsecured rating of Ba3 to American Axle & Manufacturing Inc.'s notes and term loan. At the same time, the rating agency revised the rating outlook to stable from negative and renewed the Speculative Grade Liquidity rating of SGL-1. BANCO DO BRASIL: Mulls Increasing Retail Operations in LatAm ------------------------------------------------------------ Banco do Brasil's International Business Director Sandro Kohler Marcondes told Business News Americas that the bank is considering increasing its retail operations in Latin America and Europe. Mr. Marcondes commented to BNamericas, "In effect, we're already in Portugal." BNamericas notes that Banco do Brasil has 30,000 customers in Portugal and 150,000 clients in Japan. Portugal and Japan have sizable Brazilian immigrant communities. According to BNamericas, Banco do Brasil expects to open a commercial bank and a money transfer company in the U.S. in the second half of 2008. Banco do Brasil wants to have up to 400,000 customers in the U.S. in five years, concentrating on the east coast, where most of the approximately 1.5 million Brazilian expats live, BNamericas says, citing Mr. Marcondes. Mr. Marcondes commented to BNamericas, "It'll be a relatively small operation. The US$44 million in starting capital will be enough to support our business plan over the next five years." Mr. Marcondes told BNamericas that Banco do Brasil could also consider acquisitions in the U.S. The bank will rely on organic growth for the first five years, offering primarily to Brazilians immigrants: -- money transfers, -- credit cards, and -- checking and savings accounts. Banco do Brasil will expand its product line in the U.S. to include personal loans. The bank could eventually offer private pension plans and other savings instruments if there is enough demand, BNamericas notes, citing Mr. Marcondes. "We studied the market and found the Brazilian community in the U.S. had potential. Some banks in the U.S. have a strategy for Latinos but not necessarily for Brazilians with service in Portuguese," Mr. Marcondes 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 Investors Service 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+. BANCO NACIONAL: Approves BRL32-Million Financing to Fundacao ------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social has approved financial support for BRL32 million to Fundacao Butantan for the completion of the development of vaccines against rotavirus, dengue and canine leishmaniasis, besides the respective clinical tests. The total project amount is of BRL37 million and BNDES' participation is of 86% of the total investment. Those vaccines will be part of the Department of Health's Programa Nacional de Imunizacao [National Immunization Program] - PNI. In the specific case of rotavirus vaccine, the development will enable the country to replace importations. The project will be financed with non-reimbursable resources from BNDES' Technological Fund [Funtec]. Funtec is destined to support projects of strategic interest to the country, which hold as objective to stimulate the technological development and innovation, in accordance with the Federal Government's public policies and programs. The investments supported by BNDES will be carried forward in the laboratories of Instituto Butantan, located in the city of Sao Paulo [State of Sao Paulo]. The vaccines still under development are important for public health, besides two of them (leishmaniasis and dengue) falling under the neglected diseases category. The project will contribute towards the control and eradication of infectious-contagious diseases which can be prevented through vaccination. Furthermore, it will enable the reduction of PNI costs and diminishment of vaccine imports by the country. Infection by rotavirus annually affects, in Latin America, approximately 10 million people, with 75 thousand hospitalization and 15 thousand deaths. The rotavirus is one of the leading causes of child mortality due to dehydration, which causes diarrhea in children younger than one year old. Dengue, virosis transmitted by the Aedes aegypti mosquito, is present in more than 100 tropical countries, with incidence of 50 million cases and 20 thousand deaths per year. The skin leishmaniasis, skin mucus and visceral affects approximately 2 million people in the world. It is mostly transmitted by insects that bite infected dogs. The leishmaniasis is deemed by the World Health Organization [WHO] one of the six major endemics of the planet. The Instituto Butantan project intends to develop a combined vaccine leishmaniasis and canine-rabies. Instituto and Fundacao Butantan - Instituto Butantan, founded in 1901, is a biomedical research center, entailed to the Health Office of the State of Sao Paulo, responsible for the production of more than 80% of the total serum and vaccines consumed in Brazil. Its mission is to develop studies and basic research in the biology area and biomedicine area directly or indirectly related to public health. Currently, it produces serum, vaccines and bio-medications. Amongst the vaccines produced, one may highlight those against tetanus, double shot (diphtheria and tetanus), and triple shot (diphtheria, tetanus and whooping cough), recombining hepatitis B, BCG [tuberculosis] and anti-rabies. The products manufactured by Instituto Butantan are sold by Fundacao Butantan, mainly to the Department of Health. Between 2001/2005, Butantan's participation in the production of vaccines for the Department of Health reached, on average, 530 million doses, amongst vaccines fully produced and filled (imported kit). Fundacao Butantan, established in 1989 as a private, non-profit foundation, aims at collaborating with Instituto Butantan, through investments on scientific, technological and cultural development, on production and sales of immunobiological medications and other products, besides the provision of services to the community. With the new products to be developed, it is projected the generation of 100 new direct job posts. Currently, Butantan's Biotechnology Center counts on 25 doctors, who together with individuals on scholarships, master's degree and doctorate degree candidates and other interns sum up 50 researchers. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. BRASIL TELECOM: Inks O&M Services Deal With Alcatel-Lucent ---------------------------------------------------------- Alcatel-Lucent has siged a major contract with Brasil Telecom to provide Operations and Maintenance (O&M) services for the carrier internal plant (including wireless, wireline and data networks), as well as their outside plant. This project reinforces the strategic partnership between Brasil Telecom and Alcatel-Lucent, and solidifies the company's leadership in providing operations and maintenance services for fixed, mobile and data networks in Brazil. This contract represents a milestone in Latin America as no other company in the region is responsible for the whole infrastructure of an operator. Brasil Telecom is pioneering this field by selecting an experienced and capable supplier as its partner to simplify and expand its business. Based on the agreement Alcatel-Lucent will take care of 100 percent of Brasil Telecom infrastructure, including detailed O&M for the operator's wireless network (voice, data and core); switches and transmission for fixed land line; data communications and ADSL (core and access); satellite platform; infrastructure (building, AC/DC energy, air conditioning, towers and poles); network management systems; and technical support for all levels. "This is the biggest contract signed by Brasil Telecom in the last few years and we look forward to an exceptionally close working relationship with Alcatel-Lucent as we strive to bring out customers the most reliable and highest quality communications services available," said Brasil Telecom Operations Vice-President, Francisco Santiago. "Alcatel-Lucent will take care of the whole operation and maintenance of our fixed-line and wireless telephony infrastructure and we trust their capacity for that. For us it's a new way of working, creating a package of services that spans maintenance, engineering, installation and operations to attain OPEX and CAPEX reduction." This new contract demonstrates the breadth and depth of Alcatel- Lucent services portfolio, as it encompasses network consulting and planning, network operations, optimization and maintenance. Alcatel-Lucent is the main equipment and solution supplier for Brasil Telecom and has also provided O&M services for the operator since 2002. Alcatel-Lucent plans to create a centralized technical management center, implement process and organizational improvements between outside plant and internal infrastructure, and improve productivity at central management center level through application of workforce management, improving existing Operation System Support tools to better apply fault correlation and automatic dispatching. "This network services contract with Brasil Telecom builds upon our long-term relationship with them, which is built on trust, confidence and a spirit of partnership. Their decision to have a single partner responsible for the operation and maintenance of their network is quite visionary and is a pioneering strategy by the operator, both in Brazil and the region," said President of Alcatel-Lucent's activities in the Caribbean and Latin America region, Victor Agnellini. "We are committed on delivering the best services and an excellent experience for Brasil Telecom and its customers by ensuring the reliability and quality of the carrier's entire infrastructure. And we look forward to welcoming the talented employees from Brasil Telecom who will be joining Alcatel-Lucent to ensure we can leverage their expertise to maintain the high quality of the service Brasil Telecom provides." Brasil Telecom is a leading telecommunications integrated services provider and frontrunner player involved in bundle fixed/mobile and broadband services in Brazil. With more than 8 million fixed line users and close to 4 million mobile subscribers, as well as more than 1.7 million ADSL broadband users, the operator's services cover a large portion of Brazil, including the Federal District and the states of Acre, Rondonia, Tocantins, Mato Grosso, Mato Grosso do Sul, Goias, Parana, Santa Catarina, and Rio Grande Do Sul. It also offers nationwide and international long-distance services. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. * * * To date, Brasil Telecom carries Moody's Investors Service's Ba1 senior unsecured and credit default swap ratings. BROWN SHOE: Richard Schumacher to Retire Effective March 31 ----------------------------------------------------------- Richard C. Schumacher, senior vice president and chief accounting officer of Brown Shoe Company Inc., will be retiring from the company effective March 31, 2008, the company disclosed in a regulatory filing with the U.S. Securities and Exchange Commission dated Feb. 19, 2008. Headquartered in St. Louis, Missouri, Brown Shoe Company Inc. (NYSE:BWS) -- http://www.brownshoe.com/-- is a US$2.4 billion footwear company with global operations including Brazil, Italy, China, Hong Kong, and Taiwan. Brown Shoe's Retail division operates Famous Footwear, the 1,000-store chain that sells brand name shoes for the family, approximately 300 specialty retail stores in the U.S. and Canada under the Naturalizer, FX LaSalle, and Franco Sarto names, and Shoes.com, the company's e-commerce subsidiary. Brown Shoe, through its wholesale divisions, owns and markets footwear brands including Naturalizer, LifeStride, Via Spiga, Nickels Soft, Connie and Buster Brown; it also markets licensed brands including Franco Sarto, Dr. Scholl's, Etienne Aigner, and Carlos by Carlos Santana and Barbie, Disney and Nickelodeon character footwear for children. * * * Moody's Investor Services placed Brown Shoe Company Inc.'s probability of default rating at 'Ba3' in September 2006. The rating still holds to date with a positive outlook. CAIXA ECONOMICA: To Increase Lending by 30% This Year ----------------------------------------------------- Caixa Economica Federal's Vice President Marcos Roberto Vasconcelos told reporters in Brazil that the company would boost lending at least 30% in 2008. According to Business News Americas, Caixa Economica has an initial budget of BRL86.0 billion this year. Mr. Vasconselos told BNamericas that lending growth has picked up since October 2007. Loans for sanitation and infrastructure have increased around 40%, while housing loans rose almost 70%. Caixa Economica could surpass its goals for this year. BNamericas notes that Caixa Economica increased lending 22.3% to BRL55.9 billion in 2007, compared to 2006. Its retail lending rose 17.4% to BRL27.7 billion. Loans to businesses grew 11.6% to BRL25.9 billion. Housing loans rose 49.2% to BRL21.0 billion. Loans for infrastructure and sanitation increased 265% to BRL15.7 billion. Caixa Economica's net interest income decreased 18.7% to BRL9.03 billion in 2007 on lower interest rates, BNamericas says. Mr. Vasconcelos commented to Brazilian financial daily Gazeta Mercantil, "We're working with lower spreads but maintaining our profitability." BNamericas relates that Caixa Economica's net profits rose 5.20% to BRL2.51 billion in 2007, from 2006. The company surrendered BRL1.1 billion of the net profit to the federal government. Its return on equity dropped to 23.7% in 2007, from 26.0% in 2006. Its efficiency ratio declined to 74.8% from 64.2%. Caixa Economica's total assets increased 19.1% to BRL250 billion in 2007, compared to 2006, BNamericas reports. Apart from its commercial banking activities, Caixa Economica Federal is responsible for executing policies in the areas of housing and basic sanitation, the administration of social funds and programs and federal lotteries. * * * In November 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Caixa Economica Federal. DELPHI CORP: Must Pay Professionals US$49 Mln in Fees & Expenses ---------------------------------------------------------------- The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York directed Delphi Corp. and its debtor-affiliates to pay the professionals retained in the Debtors' bankruptcy cases approximately US$45,000,000 in fees and US$3,000,000 in expenses. Blake, Cassels & Graydon LLP seeks payment of CDN$16,920 for its professional fees for the period June 1, 2007, through Sept. 30, 2007, and reimbursement of CDN$1,312 for expenses incurred during the same period. Blake Cassels serves as the Debtors' Canadian counsel. 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. GENERAL MOTORS: Inks Settlement Pact With UAW and Union Retirees ---------------------------------------------------------------- General Motors Corporation, the International Union, United Automobile, Aerospace and Agricultural Workers of America and the class representatives in a class action case filed with the U.S. District Court for the Eastern District of Michigan against GM on Sept. 26, 2007 by the UAW and putative class representatives of GM-UAW, entered into a settlement agreement on Feb. 21, 2008. The Settlement Agreement effects the transactions contemplated by the Memorandum of Understanding -- Post-Retirement Medical Care that was entered into between GM and the UAW on Sept. 26, 2007, in conjunction with the negotiation by GM and the UAW of a new national collective bargaining agreement governing the wages, hours and terms and conditions of employment for UAW- represented employees. "This proposed settlement will put into effect what we negotiated in 2007," UAW President Ron Gettelfinger said. "Through hard work and hard bargaining, we have negotiated an innovative way to secure health care benefits for UAW GM retirees." The VEBA trust, Mr. Gettelfinger said, "will be managed by independent trustees with expertise in health care, investments, finance and other key areas. We are confident it will have sufficient assets and sufficient cash flow to pay benefits to our retirees for the next 80 years. "The VEBA trust will protect our retirees. That's why we negotiated it last year, and that's why we're supporting this proposed settlement." The Settlement Agreement provides that on the later of Jan. 1, 2010 or final court approval of the Settlement Agreement, GM will transfer its obligations to provide covered UAW employees with post-retirement medical benefits to a new retiree health care plan to be established and funded by a newly established Voluntary Employee Beneficiary Association trust. GM will fund the New VEBA through a number of sources including: funds that are currently in existing voluntary employee beneficiary association trusts, GM-issued convertible and short term notes, as well as cash on hand or additional sources of liquidity. The parties to the Settlement Agreement have acknowledged that GM's obligations to pay into the New VEBA are fixed and capped as provided in the Settlement Agreement and that GM is not responsible for, and does not provide a guarantee of: (1) the payment of future benefits to plan participants, (2) the asset returns of the funds in the New VEBA, or (3) whether there will be sufficient assets in the New VEBA to fully pay the obligations of the New VEBA or New Plan. In the event the assets of the New VEBA are not sufficient to fully fund the obligations of the New Plan, the New VEBA and New Plan will be required to reduce benefits to plan participants. The Settlement Agreement is subject, in its entirety, to: obtaining a class certification order from the United States District Court for the Eastern District of Michigan such that the class in the certification order is defined in the same manner as Class is defined in the Settlement Agreement; obtaining Court approval in a form acceptable to GM, the UAW and the Class; completing discussions between GM and the Securities Exchange Commission regarding accounting treatment on a basis satisfactory to GM. The Settlement Agreement may be terminated by any party upon 30 days notice if, among other things, satisfactory class certification or Court approval has been received and such certification or Court approval is subsequently overturned on appeal. GM may immediately terminate the Settlement Agreement if, after discussions with the SEC, GM does not believe that the accounting treatment for the New VEBA and the New Plan is satisfactory to GM. The U.S. District Court has scheduled a hearing June 3, 208, in Detroit to consider approval of the proposed settlement. A full-text copy of the Settlement Agreement is available for free at: http://ResearchArchives.com/t/s?2875 Convertible Note On Feb. 22, 2008, GM issued US$4,372,500,000 principal amount of its 6.75% Series U Convertible Senior Debentures Due Dec. 31, 2012 to LBK, LLC, a Delaware limited liability company of which GM is the sole member, pursuant to the Settlement Agreement. LBK will hold the Convertible Note until it is transferred to the New VEBA in accordance with the terms of the Settlement Agreement. Interest on the Convertible Note is payable semiannually. In accordance with the Settlement Agreement LBK will transfer any interest it receives on the Convertible Note to a temporary asset account maintained by GM. The funds in the temporary asset account will be transferred to the New VEBA in accordance with the terms of the Settlement Agreement. The Convertible Note was issued pursuant to an indenture, dated as of Jan. 8, 2008, between GM and The Bank of New York, as trustee, as supplemented by the First Supplemental Indenture dated as of Feb. 22, 2008. The Convertible Note matures on Dec. 31, 2012 and will constitute a part of GM's senior debt and will rank equally with all of GM's other unsecured and unsubordinated debt. GM may redeem the Convertible Note, in whole or in part, at any time on or after Jan. 1, 2011 in cash at a price equal to 100% of the principal amount being redeemed plus (1) accrued and unpaid interest and (2) under certain circumstances if the Convertible Note is held by the New VEBA, an additional redemption adjustment amount. The Convertible Note will be initially convertible, subject to certain conditions, by a holder, other than LBK, into shares of GM common stock at a conversion rate of .625 shares of common stock per US$25 principal amount of the Convertible Note, representing an initial effective conversion price of US$40 per share. The conversion rate is subject to adjustment upon certain circumstances. Upon conversion, GM has the right to pay cash in lieu of any shares of common stock that otherwise would have been issuable. In conjunction with the issuance of the Convertible Note, GM and LBK have entered into certain cash-settled derivative instruments maturing on June 30, 2011 that will have the economic effect of reducing the conversion price of the Convertible Note from US$40 to US$36. These derivative instruments will also entitle GM to partially recover the additional economic value provided if GM's common stock price appreciates to between US$63.48 and US$70.53 per share and to fully recover the additional economic value provided if GM's common stock price reaches US$70.53 per share or above. Pursuant to the Settlement Agreement, LBK will transfer its interests in the derivatives to the New VEBA when the Convertible Note is transferred from LBK to the New VEBA. Short Term Note On Feb. 21, 2008, GM issued a short term note in the principal amount of US$4,015,187,871 to LBK pursuant to the Settlement Agreement. The Short Term Note pays interest at a rate of 9% and matures on the date that the face amount of the Short Term Note is paid with interest to the New VEBA in accordance with the terms of the Settlement Agreement. LBK will hold the Short Term Note until it matures. Upon maturity, and in accordance with the Settlement Agreement, GM will cause LBK to pay to the New VEBA in cash the face value of the Short Term Note, plus cash in an amount equal to the interest accrued on such amount from and including the date of the Short Term Note, but excluding the date of payment to the New VEBA. As a wholly owned consolidated subsidiary of GM, LBK will hold the convertible note, the short term note, and the derivatives until they are transferred or paid to the New VEBA. As such, these three securities will be effectively eliminated in GM's consolidated financial statements until they are transferred to the New VEBA. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of $39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets (DTAs) in the US, Canada and Germany. As reported in the Troubled Company Reporter-Latin America on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. The outlook is stable. GERDAU SA: Cleary Holdings Acquisition Good for Firm, Says Ativa ---------------------------------------------------------------- Gerdau SA's planned acquisition of a 50.9% stake in Cleary Holdings Corp. is a positive move, Business News Americas reports, citing brokerage Ativa. As reported in the Troubled Company Reporter-Latin America on Feb. 26, 2008, Gerdau signed a purchase agreement to acquire the stake in Cleary Holdings for US$59 million. BNamericas relates that Cleary Holdings has coke production units and coking coal reserves in Colombia. It has installed capacity of one million tons per year of coke and estimated coking coal reserves of 20 million tons. "From a strategic point of view, the acquisition demonstrates a higher effort by Gerdau toward assuring the demand for its basic inputs, even though about 20% of its steel production comes from blast furnaces that use coke. The coal market is going through a marked unbalance between supply and demand and we expect a price increase of 75-100%," Ativa commented to BNamericas. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook. PERDIGAO SA: Net Income Rises 174% to BRL321.3 Million in 2007 -------------------------------------------------------------- Perdigao S.A. has ended 2007 reporting gross sales of BRL7.8 billion, 27.6% more than recorded in the preceding year. Net income posted an increase of 174% to BRL321.3 million. The results were boosted by good performance in the domestic and export markets, gains in scale and productivity, as well as an increased participation of 53% of processed products as a percentage of the company's total net sales. These factors, combined with the full integration of Batavia's dairy-processed products, and the margarine and beef businesses acquired during the year, resulted in growth of 27.3% in net sales to BRL6.6 billion in 2007. Exports accounted for 47.5% of net sales and domestic market, 52.5%. In spite of the appreciation of the Real in relation to the US dollar and the increase in grain prices, growth in export revenues was 30%, reflecting stronger international demand that increased sales volumes of meats by 18.6% and other processed products by 67.3%. Domestic market revenue increased 25.9% compared with 2006, driven by sales revenue from activities in the meat segment and by an increase of 71.4% in volume of dairy-processed products and 84% for other processed products. Gross profits increased 39.4%, totaling BRL1.9 billion. EBITDA (operating profit before financial expenses, taxes and depreciation) in the period reached BRL802.7 million, a year-on- year increase of 76.1%, and equivalent to a 12.1% margin, a gain of 340 basis points against the preceding fiscal year. In 2007, Perdigao's capital expenditures totaled BRL857.4 million, 34.6% higher than 2006. Of this total, 41% was allocated to acquisitions (excluding the Eleva acquisition) and the remainder to new projects and production lines, to the conclusion of the Mineiros Agro-Industrial Complex in the state of Goias and to improvements in productivity. Numbers For 2007 (in BRL million) 2007 2006 % Change Gross Sales 7,788.6 6,106.0 27.6 Domestic Market 4,589.2 3,644.5 25.9 Exports 3,199.4 2,461.4 30.0 Net Sales 6,633.4 5,209.8 27.3 Gross Profits 1,873.3 1,344.1 39.4 EBIT 503.9 191.4 163.3 Net Income 321.3 117.3 174.0 EBITDA 802.7 455.8 76.1 Capex 857.4 636.9 34.6 Earnings per share BRL 1.73 0.71 144.5 Headquartered in Sao Paulo, Brazil, Perdigao S.A. is one of the largest food processors in Brazil, with a focus on poultry, pork, beef, milk and processed products including dairy. With revenues of BRL6 billion for the last twelve months eding in June 30, 2007, Perdigao is one of the leaders in the domestic market and exports 42% of its sales to over 100 countries and 850 customers around the world. * * * As of Nov. 1, 2007, Moody's Investors Service affirmed Perdigao SA's Ba1 corporate family rating following the company's announced signed agreement to acquire Eleva Alimentos S.A. for approximately BRL1.67 billion in equity value plus BRL547 million in assumed debt. Moody's rating outlook remains stable. PRIDE INTERNATIONAL: Closes Sale of Three Rigs for US$213 Mil. -------------------------------------------------------------- Pride International Inc. has completed the previously announced sale of its three self-erecting, tender-assist rigs, the Al Baraka I, Alligator and Barracuda, for US$213 million in cash. Proceeds from the sale are expected to be utilized for general corporate and strategic purposes, including potential funding for the construction of the company's three ultra-deepwater drillships and other future growth opportunities. About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2007, Standard & Poor's Ratings Service raised its corporate credit rating on offshore contract drilling firm Pride International Inc. to 'BB+' from 'BB'. At the same time, S&P raised the rating on the company's unsecured debt to 'BB+' from 'BB-'. S&P said the outlook is stable. PRIDE INTERNATIONAL: Names David Hager to Board of Directors ------------------------------------------------------------ Pride International Inc. has appointed David A. Hager to the company's board of directors, effective immediately. Over the past 29 years, Mr. Hager has served in numerous senior management positions in the oil and gas industry, most recently as the chief operating officer for Kerr-McGee Corporation until his retirement in August 2006 following the merger of Kerr-McGee with Anadarko Petroleum Corporation. Mr. Hager began his career in the oil and gas industry in 1979 as an exploration geophysicist with Mobil Corporation and in 1981, he joined Sun Oil Company (predecessor of Oryx Energy Company). Mr. Hager joined Kerr-McGee as vice president of Gulf of Mexico operations following the company's merger with Oryx in 1999, became vice president of international operations in April 2000 and was named vice president of worldwide deepwater exploration and production in October 2000. Mr. Hager became vice president of Gulf of Mexico and worldwide deepwater exploration and production in 2001, was named vice president of exploration and production in 2002 and became senior vice president (oil and gas exploration and production) in March 2003. He was named chief operating officer of Kerr-McGee in July 2005. Mr. Hager currently serves as a director of Devon Energy Corporation. In addition, the company announced that David B. Robson will retire from the Pride International board of directors effective on the date of the company's 2008 Annual Meeting of Stockholders. Mr. Robson's service dates back to May 1998, when he joined the board of directors of Marine Drilling Companies, Inc. He has served on the Pride International board since the company's merger with Marine Drilling in September 2001. Louis A. Raspino, President and Chief Executive Officer of Pride International, Inc., stated, "On behalf of the board of directors, stockholders and employees of Pride, I would like to sincerely thank Dave for his dedicated service on the board. We wish Dave all the best in his retirement." About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2007, Standard & Poor's Ratings Service raised its corporate credit rating on offshore contract drilling firm Pride International Inc. to 'BB+' from 'BB'. At the same time, S&P raised the rating on the company's unsecured debt to 'BB+' from 'BB-'. S&P said the outlook is stable. UNIAO DE BANCOS: To Expand Points of Sale Network by 400 Units -------------------------------------------------------------- Uniao de Bancos Brasileiros S.A. will expand its network of points of sale, directly or through its subsidiaries, by approximately 400 units in 2008 and 2009, including branches, corporate-site branches and points of sale within retail partners and, also, revitalize its already existing distribution network. Unibanco estimated that the expansion, occurring during 2008 and 2009, will require the hiring of approximately 5,000 new employees. Unibanco projected that the Expansion will involve approximately 60% of the capital expenditure in 2008 and 2009, with an impact in personnel and administrative expenses. Unibanco expected a 7% to 12% increase in its total personnel and administrative expenses in 2008 as compared to 2007. The objective of the expansion is to increase the scale and reach of distribution of retail financial products offered by Unibanco, in line with the continuous goal of creating value for its shareholders. All of the measures necessary for the achievement of the Expansion will be carefully evaluated by the relevant internal departments, which will take into consideration Brazil's economic and market conditions during the period of its fulfillment, so as to reach conscientious and responsible decisions, as always with the goal of preserving the rights and interests of Unibanco's clients and shareholders. About Unibanco Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/-- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. The company's businesses comprise segments: Retail, Wholesale, Insurance and Pension Plans and Wealth Management. Uniao de Bancos and its associated companies FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas) offer a network composed of 17,000 points of service. It also counts on 7,580 automated teller machines and all 30 Hours' products and services, including the telephone service and the Internet banking. The company's international network consists of branches in Nassau and the Cayman Islands; representatives offices in New York; banking subsidiaries in Luxembourg, the Cayman Islands and Paraguay; and a brokerage firm in New York -- Unibanco Securities Inc. * * * To date, Standard & Poor's Ratings Services rated Unibanco-Uniao de Bancos Brasileiros SA's long-term foreign issuer credit rating and local issuer credit rating at 'BB+'. ========================== C A Y M A N I S L A N D S ========================== AH INC: Proofs of Claim Filing Is Until March 6 ----------------------------------------------- AH, Inc.'s creditors have until March 6, 2008, to prove their claims to Helvetic Management Services Limited, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. AH's shareholders agreed on Jan. 1, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Helvetic Management Services Limited Attn: Colin G. Shaw Alamander Way, Grand Pavilion P.O. Box 31083, Grand Cayman KY1-1205 Cayman Islands Phone: 945-3301 Fax: 945-3302 ARIANE HEALTH: Proofs of Claim Filing Deadline Is March 6 --------------------------------------------------------- Ariane Health Limited, LDC's creditors have until March 6, 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. Ariane Health's shareholders agreed on Jan. 31, 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 CHENGWEI AAC: Sets Final Shareholders' Meeting for March 6 ---------------------------------------------------------- Chengwei AAC Holdings Ltd. will hold its final shareholders' meeting on March 6, 2008, at 58 West Portal Avenue, San Francisco, CA 94127. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Chengwei AAC's shareholders decided on Jan. 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Aline Moulia Corporate Filing Services Ltd. P.O. Box 613, Grand Cayman KY1-1107 Cayman Islands Telephone: 415-609-4845 Fax: 415-358-4045 PARIS HOTEL: Proofs of Claim Filing Deadline Is March 6 ------------------------------------------------------- Paris Hotel Investment Company's creditors have until March 6, 2008, to prove their claims to Helvetic Management Services Limited, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Paris Hotel's shareholders agreed on Jan. 1, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Helvetic Management Services Limited Attn: Colin G. Shaw Alamander Way, Grand Pavilion