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, March 5, 2008, Vol. 9, No. 46 Headlines A R G E N T I N A ALITALIA SPA: Net Debt Rises to EUR1.28 Billion at January 31 ALITALIA SPA: Air France-KLM Eyes Stake in Flight & Ground Units BANCO SANTANDER RIO: Earns AS266 Million in 2007 CENTRAL DE NEGOCIOS: Court Appoints Sergio Gonzalez as Trustee CLAXSON INTERACTIVE: Hikes Private Proposal to US$13.50 a Share FORD MOTOR: Discloses Plans to Return to Profitability by 2009 FORD MOTOR: Likely to Close Sale Deal With Tata Motors in 2Q FORD MOTOR: February 2008 Sales Decrease 7% FORD MOTOR: February 2008 Sales in Canada Increase 4.1% RIAL SRL: Proofs of Claim Verification Is Until March 28 TRANS-ROGAL SRL: Proofs of Claim Verification Is Until March 21 VALEANT PHARMA: Selling Asia Unit to Invida for US$37.8 Million XALEX SRL: Trustee to Verify Proofs of Claim Until April 30 B A R B A D O S DIGICEL GROUP: Eyes US$440 Million Operating Profit in March B E R M U D A SEA CONTAINERS: Committee Taps Navigant Consulting as Advisors * BERMUDA: Fitch Says (Re)Insurance Market Thriving Amidst Chaos * BERMUDA: Fitch Conference Call on Insurance Market Is Today B R A Z I L ACTUANT CORP: Acquires Superior Plant Services for US$57 Million BANCO BRADESCO: Board Approves Complimentary Dividends Payment BANCO DO BRASIL: 4th Quarter Results Disappointing, Analysts Say BANCO DO BRASIL: Unit Posts BRL16.2 Million Loss in 2007 CHRYSLER LLC: Will Appeal Bankruptcy Court's Tooling Decision CHRYSLER LLC: February 2008 Sales Down 14%, Fleet Sales Reduced COMPANHIA ENERGETICA: UBS Affirms Neutral Rating on Firm DELPHI CORP: Wants Plan-Filing Period Further Extended to May 31 DELPHI CORP: Ct. Extends Effectiveness of PBGC Letters of Credit GENERAL MOTORS: February 2008 Sales Drop 13% Compared to 2007 GENERAL MOTORS: Hires Frederick Henderson as President and COO HUGHES NETWORK: Net Income Up 161% to US$50 Million in 2007 HUGHES NETWORK: Completes Software Installation at Carrefour JAPAN AIRLINES: Plans New Share Issuance to Upgrade Planes JAPAN AIRLINES: Discloses Revival Plan for 2008 to 2010 JAPAN AIRLINES: Moody's Changes Ba3 Rating Outlook to Positive POLYPORE INT'L: Buys All of Microporous Stock for US$76 Million TELE NORTE: Will Launch Operations in Sao Paulo in July * BRAZIL: FIDC Risks Due to Lack of Transparency, Fitch Says C A Y M A N I S L A N D S AMA INVESTMENT: Proofs of Claim Filing Ends on March 11 JANUS GLOBAL: Proofs of Claim Filing Deadline Is March 11 JUST FOREX: Proofs of Claim Filing Is Until March 11 LATINVEST FUND: Proofs of Claim Filing Deadline Is March 11 MARUBENI JPS: Proofs of Claim Filing Ends on March 11 C O L O M B I A ECOPETROL: Net Profit Jumps 52.6% to COP5.18 Trillion in 2007 MILLICOM INTERNATIONAL: Unit to Launch 3G Services in Colombia SOLUTIA INC: S&P Ups Rating to 'B+' From 'D' on Bankruptcy Exit * COLOMBIA: Ecuador/Venezuela Rift Won't Affect Fitch Ratings C O S T A R I C A ARMSTRONG WORLD: S&P Says Outlook Is Stable; Holds 'BB' Rating ARMSTRONG WORLD: Completes Strategic Review Following Evaluation SIRVA INC: Schedules Filing Deadline Moved to March 21 SIRVA INC: Answers 360networks' Bid to Vacate Claims Order SIRVA INC: Allowed to Employ TS&T as Conflicts Counsel SIRVA INC: Allowed to Employ A&M as Restructuring Consultant D O M I N I C A N R E P U B L I C PRC LLC: Obtains Final Court Nod to Use Lenders' Cash Collateral PRC LLC: Gets Final Court Nod on US$30 Million DIP Financing PRC LLC: Wants to Reject Four Austin & Plantation Pacts E C U A D O R PETROECUADOR: Completes Repairs to Pipeline E L S A L V A D O R BIO-RAD LABS: Earns US$12.3 Million in Fourth Quarter 2007 * EL SALVADOR: Moody's Publishes Annual Report G U A T E M A L A BANCO INDUSTRIAL: Unit to Launch Up to 20 Branches in Honduras J A M A I C A NATIONAL COMMERCIAL: Unit & Man Investments to Offer Hedge Fund M E X I C O ALASKA AIRLINES: Earns US$135.4 Million in Year Ended Dec. 31 ARROW ELECTRONICS: Appoints Michael Long as President & COO ARROW ELECTRONICS: Gail Hamilton Joins Board of Directors BEARINGPOINT INC: Bags US$115 Million Contract From U.S. Army PRIDE INTERNATIONAL: Earns US$784.3 Million in 2007 PRIDE INTERNATIONAL: Uncovers Evidence of Bribery SHARPER IMAGE: Ramius Capital Discloses 12.2% Equity Stake SR TELECOM: Quebec Court Extends CCAA Stay to May 2 WOLVERINE TUBE: Completes Biz Sale to Standish for US$25MM Cash P A N A M A CHIQUITA BRANDS: Signs Commitment Letter for US$400 Million Loan CHIQUITA BRANDS: Moody's Rates New Senior Bank Pacts at 'Ba3' CHIQUITA BRANDS: Stops Operations in Panama KANSAS CITY: Hires Brian Bowers as Senior VP for Automotive NCO GROUP: Completes US$325 Mil. Buyout of Outsourcing Solutions P A R A G U A Y AGILENT TECH: To Buy TILL Photonics; Closes Colloidal Purchase P E R U GOODYEAR TIRE: Redeems US$650 Million Senior Notes Due 2011 P U E R T O R I C O AEROMED SERVICES: Section 341(a) Meeting Slated for March 10 AEROMED SERVICES: June 9 Deadline Set for Proofs of Claim Filing GENESCO INC: Anticipates Settlement of Litigation on Financing R&G FINANCIAL: To Settle Claims in Shareholder Class Action U R U G U A Y PERNOD RICARD: To Reopen Braeval Distillery in July 2008 V E N E Z U E L A PETROLEOS DE VENEZUELA: Exxon Wants Freeze Order Upheld PETROLEOS DE VENEZUELA: Eni to Invest Up to US$20MM in Junin 5 PETROLEOS DE VENEZUELA: Gas Comunal to Take Up Gas Operations PETROLEOS DE VENEZUELA: In Talks With Exxon on Chalmette Supply - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Net Debt Rises to EUR1.28 Billion at January 31 ------------------------------------------------------------- The Alitalia Group's net debt as of Jan. 31, 2008, amounted to EUR1.28 billion, showing an increase in net indebtedness of EUR81 million compared to the situation on Dec. 31, 2007, this trend is due to the typical seasonality of this month's proceeds and payments, which are substantially in line with Budget targets. The net debt of the parent Alitalia S.p.A. including short-term financial credits for subsidiaries on Jan. 31, 2008, including short-term financial credits of subsidiaries, amounted to EUR1.265 billion showing an increase of EUR78 million compared to net debt as of Dec. 31, 2007. The Group's cash-to-hand and short-term financial credits as of Jan. 31, 2008, at the Group level and for Alitalia, amounted to EUR282 million and EUR297 million respectively (the corresponding figures on Dec. 31, 2007 were EUR367 million and EUR379 million). It should be noted that as of Jan. 31, 2008, there were several leasing contracts at the Group level (referring almost entirely to fleet aircraft mostly held by the parent company amounting to EUR82 million) whose capital share, including lease closure value, amounted to EUR94 million (of which EUR12 million represent the current capital share falling due within 12 months of the reference date, with EUR10 million held by the parent company). By comparison, the same figure as of Dec. 31, 2007, amounted to EUR95 million (of which EUR12 million falling due in the 12 months from the reference date); the corresponding figures for the parent company on Dec. 31, 2007, amounted to EUR82 million and EUR10 million respectively. It should also be noted that existing debts to banks are almost entirely backed up by real guarantees (mortgages on aircraft) or by personal guarantees (mainly guarantees issued by banks for export credit). The relative financing contracts contain standard legal clauses relating to withdrawal. None of the contracts refer to specific requirements regarding assets or economic/financial aspects, in order to maintain the credit line. During Jan. 2008, repayments were made of medium/long-term financing amounting to about EUR3 million. Regarding debts of a financial, fiscal and social welfare nature, there were no outstanding sums or payment irregularities on Jan. 31, 2008, both for the parent company and for the other companies in the Group. As far as debts of a commercial nature are concerned, decisions are still pending for the petitions filed by Alitalia regarding: * an injunction related to supposed different pricing policies, issued by a carrier for EUR6 million (two decrees); * injunction issued by a supplier of on-board movies for EUR1.2 million (two decrees); * injunction issued by an IT services supplier for EUR812,000; * injunction issued by an Italian subsidiary of an air carrier bankruptcy for EUR288,000; * injunction has been issued by a maintenance services supplier for EUR492,000; * injunction issued by the special manager of a firm for presumed debts relating to air ticket sales, for EUR3.2 million; * injunction issued by a fuel supplier for EUR1 million; * injunction issued by an airport management company for limited failure to pay handling fees for EUR375,000; * injunction issued by three suppliers, for EUR76,000. There are no other injunction orders or executive actions undertaken by creditors notified as of Jan. 31, 2008, nor are there any threats by suppliers to suspend operations. Furthermore, it should be noted that the Company, in its ordinary running of the business, constantly focuses on maintaining commercial relations with its clients and suppliers that -- absent particular issues or operational distress -- offer enough financial flexibility to support its liquidity. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it -- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Air France-KLM Eyes Stake in Flight & Ground Units ---------------------------------------------------------------- Air France-KLM S.A. plans to present a binding offer for Alitalia S.p.A.'s AZ Fly unit and a fraction of AZ Servizi, Thomson Financial reports, citing FILT-CGIL union secretary general Fabrizio Solari. Mr. Solaris told Thomson Financial thats Air France is only interested in AZ Servizi's maintenance and part of its handling operations. AZ Fly and AZ Servizi handles Alitalia's flight and ground operations respectively. The union official added Air France will seek approval of its offer from Alitalia's board before presenting it to the finance ministry, Thomson Financial adds. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. BANCO SANTANDER RIO: Earns AS266 Million in 2007 ------------------------------------------------ Banco Santander Rio S.A.'s profit increased 15.7% to ARS266 million in 2007, compared to 2006. Business News Americas relates that Santander Rio "finished amortizing the legal injunctions called amparos on its balance sheet in December," which caused a ARS356 million loss last year. A ARS154 million gain in the fourth quarter 2007 from the sale of part of Santander Rio's asset management and insurance subsidiaries to parent bank Santander offset the charges, BNamericas says. Santander Rio's net interest income rose 12.2% to ARS781 million in 2007, from 2006, fee income grew 32.5% to ARS954.1 million, and administrative expenses increased 12.9% to ARS764 million. Fitch analyst Santiago Gallo commented to BNamericas, "The bank's interest and fee revenues have been very good over the last few years, driven by strong activity and keeping asset quality and administrative expenses under control." Lending to the private sector increased 44.9% to ARS11.2 billion in December 2007, from December 2006, BNamericas says, citing Santander Rio. According to BNamericas, Santander Rio's past-due loan ratio for private sector loans declined to 0.65% in 2007, compared to 0.7% in 2006, and the coverage ratio was 238%. Mr. Gallo told BNamericas that Santander Rio's finishing amortizing the amparos is very good for the bank's future as they caused significant yearly charges. "Now that these charges are over, we expect results to remain very good in 2008 as long as global markets do not affect Argentine government bonds significantly as in last year's third quarter," Mr. Gallo commented to BNamericas. Santander Rio had ARS19.6 billion in assets and ARS1.58 billion in equity in December 2007, BNamericas states. Banco Santander Rio S.A. is headquartered in Buenos Aires, Argentina. The bank's service range includes savings accounts, deposits, loans, money transfers, cash management, among others. It is engaged in the consumer and commercial banking. Additionally, it maintains an active presence in the distribution and trading of public and private securities in principal financial centers internationally. The bank operates a network of 241 branches and has a presence in 21 provinces. * * * On Nov. 13, 2007, Moody's Investors Service said that Banco Santander Rio S.A.'s long term foreign currency deposit rating of Caa1 was limited by the country ceiling for foreign currency deposits, while the bank's B2 foreign currency debt program was based on its Ba1 global local currency deposit rating. CENTRAL DE NEGOCIOS: Court Appoints Sergio Gonzalez as Trustee -------------------------------------------------------------- The National Commercial Court of First Instance in Rosario, Santa Fe, has appointed Sergio Gonzalez as trustee for Central de Negocios S.R.L.'s bankruptcy proceeding. Mr. Gonzalez will verify creditors' proofs of claim and present the validated claims in court as individual reports. The court 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 Central de Negocios 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 Central de Negocios' accounting and banking records will be submitted in court. Mr. Gonzalez will also be in charge of administering Central de Negocios' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Sergio Gonzalez San Martin 791, Rosario Santa Fe, Argentina CLAXSON INTERACTIVE: Hikes Private Proposal to US$13.50 a Share --------------------------------------------------------------- Claxson Interactive Group Inc., with the support of a group of the company's controlling shareholders, the Cisneros Group, Hicks Muse, Roberto Vivo and Luis H. Moreno, has submitted to the special committee of independent directors a new amendment to the going private proposal to increase the price per share offered to acquire for cash all of the company's outstanding Class A Common Shares held by shareholders other than the Group from US$12.35 per share to US$13.50 per share. The offer is subject to approvals and definitive documentation and this proposed transaction, or any similar transaction, may not take place on these or any other terms. Headquartered in Buenos Aires, Argentina, and Miami, Florida, Claxson Interactive Group Inc. (Pink Sheets: XSONF) has a presence in the United States and all key Ibero-American countries, including Mexico, Chile, Brazil, Spain and Portugal. Claxson's principal shareholders are the Cisneros Group of Companies and funds affiliated with Hicks, Muse, Tate & Furst Inc. * * * To date, Claxson Interactive Group Inc.'s obligaciones negociables for US$44,400,000 is rated BB by Fitch Argentina. The rating action was based on the company's balance sheet at Sept. 30, 2006. FORD MOTOR: Discloses Plans to Return to Profitability by 2009 -------------------------------------------------------------- Ford Motor Company disclosed plans to further align its capacity with demand at four U.S. manufacturing facilities as it works to return its North American operations to profitability by 2009. Chicago Assembly Plant and Louisville Assembly Plant will operate on one shift beginning this summer. The date for the shift reduction has not been finalized. Cleveland Engine Plant #2 will operate on one shift beginning in late April. Additionally, Cleveland Engine Plant #1, which has been idled since May 2007, will resume production in the fourth quarter. The company had planned to resume production resume this spring. The change to a one-shift production pattern does not affect production volume. Rather, it allows the plants to operate more efficiently by running continually and reducing "down weeks." Approximately 2,500 employees will be affected at the three plants. "We remain focused on our plan to return the North American automotive business to profitability," Mark Fields, Ford's president of The Americas, said. "These actions are necessary as we align our capacity and product mix to meet real customer demand." Ford is currently offering its U.S. hourly workforce the opportunity to select from one of 10 retirement and buyout packages, including special offers that provide money for education and a new entrepreneurial package that offer employees interested in starting a business a lump sum payout and family health insurance coverage. Ford also enhanced its package offering for retirement-eligible employees. "The buyouts and capacity actions are designed to ensure that our manufacturing facilities are operating in the most efficient way," Joe Hinrichs, group vice president, Global Manufacturing, said. "By adjusting our operating patterns in this way, we can produce the right volume and avoid down weeks. The stability in operations is better for our employees, our suppliers and the quality of the product." The Chicago Assembly Plant, opened in 1924, currently builds the Ford Taurus, Taurus X, Mercury Sable and will be home to the all-new 2009 Lincoln MKS, which will arrive in dealer showrooms this summer. It employs approximately 2,300 workers. The plant is slated to receive an additional new product as outlined in the 2007 UAW-Ford Collective Bargaining Agreement, which expires in 2011. Opened in 1955, Louisville Assembly Plant produces the Ford Explorer, Explorer Sport Trac and Mercury Mountaineer. It currently has approximately, 2,200 employees and is slated to receive an investment in a new body shop and a new product as outlined in the 2007 UAW-Ford Collective Bargaining Agreement, which expires in 2011. Opened in 1955, Cleveland Engine Plant #2 produces the 3.0-liter engine. It employs approximately 800 employees. Cleveland Engine Plant #1, which opened in 1951, produced the Duratec 3.5- liter engine until it was temporarily idled in May 2007. Production of the 3.5-liter continues at Lima Engine Plant. 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. FORD MOTOR: Likely to Close Sale Deal With Tata Motors in 2Q ------------------------------------------------------------ A luxury brands sale deal between Ford Motor Co. and Tata Motors Ltd. is expected to close between April and June, according to Ford's U.S. Securities and Exchange Commission annual report filing. As reported by the Troubled Company Reporter on Feb. 26, 2008, the announcement of the sale of Ford Motor's Jaguar and Land Rover Marques brands to Tata Motors is expected to be made on March 6 or 7. The transaction is speculated to be at a US$1.5 billion to US$2 billion range. According to the Economic Times, both parties are still in talks over issues relating to supply of engines, platforms and technologies. As previously reported in the TCR, Tata Motors and Ford met with British union leaders to resolve final details before drawing up a memorandum of understanding for the sale. The union is satisfied with Tata Motors assuring them, among others, of keeping employment in the United Kingdom at its current level. Ford committed to sell Jaguar and Land Rover in order to restructure its core Automotive operations and build liquidity, the SEC filing stated. 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. FORD MOTOR: February 2008 Sales Decrease 7% ------------------------------------------- Total Ford Motor Company sales, including Jaguar, Land Rover, and Volvo, totaled 196,681, down 7%. Ford's new Focus and SYNC are connecting with small car buyers. Focus retail sales were up 36% in February -- the fourth month in a row of higher retail sales. "The new Focus and SYNC arrived at an opportune time," Jim Farley, Ford's group vice president, Marketing and Communications, said. "We needed to raise awareness and consideration among younger buyers -- and Focus and SYNC are getting us back in the game." Buyers age 16-35 account for 32% of retail sales for the 2008 Focus, compared with 28% for the previous model. Focus is one of 12 Ford, Lincoln and Mercury models equipped with SYNC, an affordable, in-car connectivity technology that fully integrates most Bluetooth-enabled cell phones and MP3 players by voice activation. Retail car sales were 4% higher than a year ago paced by the Focus and the three mid-size sedans -- Ford Fusion, Mercury Milan, and Lincoln MKZ -- which combined posted a retail sales increase of 7%. Crossover utility vehicles continued to see higher sales in February (up 10%). Higher sales for the Ford Edge (up 46%) and Lincoln MKX (up 22%) led the increase in CUVs. The MKZ and MKX helped Lincoln post higher retail sales in February (up 2%) although total sales were down 11%, reflecting lower fleet sales. Among trucks, sales for Ford's F-Series pickup totaled 52,548, off 5% from a year ago. Sales for Ford's compact pickup, the Ranger, totaled 7,431, up 27%. Sales for traditional sport utility vehicles continued to decline in February as combined sales for the Ford Explorer and Expedition, Mercury Mountaineer, and Lincoln Navigator were 22% lower than a year ago. Ford, Lincoln and Mercury sales totaled 185,294, down 7% compared with a year ago. Lower daily rental sales (down 20%) accounted for 60% of the decline. North American Production In the second quarter 2008, the company plans to produce 730,000 vehicles, a level 10% lower than a year ago when the company produced 811,000 vehicles. The reduction reflects the current economic conditions. In the first quarter 2008, the company plans to produce 685,000 vehicles, unchanged from the previously announced plan. 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. FORD MOTOR: February 2008 Sales in Canada Increase 4.1% ------------------------------------------------------- In February, Ford Motor Company of Canada, Ltd., overall sales increased 4.1% to 14,054 units. Total truck sales were up 6.1% at 10,813 units and total car sales of 3,241 units mark a 2.1% decline compared to last February. February's heavy precipitation has not dampened the pace of sales at Ford Motor Company of Canada, Ltd., with many vehicles seeing significant double-digit increases compared to last February. In fact, six models hit February sales records, including Canadian-built crossovers Ford Edge and Lincoln MKX. "Canadians love the design and functionality of crossover utility vehicles," Barry Engle, president and CEO, Ford of Canada, said. "Last year, sales of crossovers grew more quickly than any other segment in the automotive industry, and in that hot market, Ford sold more crossovers than any other manufacturer. We expect the rapid growth in crossovers to continue this year, and we offer consumers a lot of choice with Ford Edge, Ford Taurus X and Lincoln MKX, and coming soon, Ford Flex." Six Models Set All-Time February Sales Records * Ford Edge sales increase 98%, for its best February on record; * Ford Escape sales rise 86%, marking its best February on record; * Ford Escape Hybrid up 66%, making this its best February ever; * Ford Fusion up 11%, for its best February ever; * Ford Mustang sales increase 65%; * Ford Ranger saw a 33% sales jump; * Lincoln MKX up 59%, marking its best February sales on record; and * Lincoln MKZ sales increase 9%, for its best February ever. February 2008 Vehicle Sales Total vehicles 2008 2007 Change -------------- ---- ---- ------ February 14,054 13,502 4.1% January & February 26,787 25,116 6.7% Total Cars ---------- February 3,241 3,311 -2.1% January & February 6,103 6,326 -3.5% Total Trucks ------------ February 10,813 10,191 6.1% January & February 20,684 18,790 10.1% 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. RIAL SRL: Proofs of Claim Verification Is Until March 28 -------------------------------------------------------- The court-appointed trustee for Rial S.R.L. Empresa Constructora's bankruptcy proceeding, will be verifying creditors' proofs of claim until March 28, 2008. The trustee will present the validated claims in court as individual reports on May 15, 2008. The National Commercial Court of First Instance in Cordoba will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Rial S.R.L. 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 Rial S.R.L.'s accounting and banking records will be submitted in court on July 2, 2008. The trustee is also in charge of administering Rial S.R.L.'s assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Rial S.R.L. Empresa Constructora Parana 257, Ciudad de Cordoba Cordoba, Argentina TRANS-ROGAL SRL: Proofs of Claim Verification Is Until March 21 --------------------------------------------------------------- Carlos Wulff, the court-appointed trustee for Trans-Rogal SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until March 21, 2008. Mr. Wulff will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 19 in Buenos Aires, with the assistance of Clerk No. 37, 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 Trans-Rogal 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 Trans-Rogal's accounting and banking records will be submitted in court. Mr. Wulff is also in charge of administering Trans-Rogal's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Trans-Rogal SRL Caseros 3422 Buenos Aires, Argentina The trustee can be reached at: Carlos Wulff Virrey del Pino 2354 Buenos Aires, Argentina VALEANT PHARMA: Selling Asia Unit to Invida for US$37.8 Million --------------------------------------------------------------- Valeant Pharmaceuticals International has completed the sale of Valeant's Asia Pacific operations to Invida Pharmaceutical Holdings Pte. Ltd. for a one time payment of approximately US$37.8 million in cash. Under the terms of the agreement, Invida will acquire Valeant's current licensing rights and commercial operations in Asia Pacific for the products currently marketed in twelve Asian markets, including Singapore, the Philippines, Taiwan, Korea, and China. Certain product rights in Japan are also included in the transaction. The divestment comprises approximately 230 stock-keeping units (SKUs), including global brands such as Kinerase(R), Dermatix(R) and Efudix(R). "The sale of our Asian markets and operations to Invida is an important first step in simplifying our business," said J. Michael Pearson, Valeant's chief executive officer and chairman. "Asia Pacific was a subscale operation for Valeant and was diverting unnecessary management attention and resources." Commenting on the acquisition, Dr. Guido Oelkers, Invida's chief executive officer, said, "This acquisition is in line with Invida's transformation from a sales-oriented service company into a company that integrates the core capabilities of a specialty pharmaceutical company. The addition of Valeant's portfolio will boost Invida's resources and enable us to further enhance our medical and marketing capabilities." About Invida Pharmaceutical Invida Pharmaceutical Holdings Pte. Ltd. -- http://www.invida.com/-- is the holding company of Pharmalink, the leading pharmaceutical and healthcare commercialization provider in Asia Pacific; and Inovail, an independently-managed specialty pharmaceutical company focused on market-driven innovation in the areas of dermatology, complementary oncology and female healthcare. Headquartered in Singapore, Invida's focus is in the Asia Pacific region, where it has offices in 13 countries. Invida's shareholders include Temasek Holdings, Quintiles Transnational and the Zuellig Group. About Valeant Pharmaceuticals Headquartered in Costa Mesa, California, Valeant Pharmaceuticals International -- http://www.valeant.com/-- is a global specialty pharmaceutical company with USUS$823 million of 2005 revenues. It has offices in Argentina, Singapore and Taiwan. * * * In January 2007, Moody's Investors Service confirmed the ratings of Valeant, including the B2 Corporate Family Rating, and concluded the rating review for possible downgrade, which was first initiated on Oct. 23, 2006. Valeant's rating outlook is stable, Moody's said. XALEX SRL: Trustee to Verify Proofs of Claim Until April 30 ----------------------------------------------------------- Juan Carlos Alcuaz, the court-appointed trustee for Xalex SRL's reorganization proceeding, will be verifying creditors' proofs of claim until April 30, 2008. Mr. Alcuaz will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 8 in Buenos Aires, with the assistance of Clerk No. 15, 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 Xalex 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 Xalex's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 9, 2009. The debtor can be reached at: Xalex SRL Belgrano 766 Buenos Aires, Argentina The trustee can be reached at: Juan Carlos Alcuaz Cordoba 1522 Buenos Aires, Argentina =============== B A R B A D O S =============== DIGICEL GROUP: Eyes US$440 Million Operating Profit in March ------------------------------------------------------------ Digicel Group expects its operating profits to increase to US$440 million in March 2008, compared to US$220 million in March 2007, Tony Best at The Nation Newspaper reports. Dennis O'Brien told The Nation Newspaper that Digicel's rapid growth in and out of the Caribbean would be reflected in its bottom line at the end of the firm's financial year on March 31, 2008. Mr. O'Brien commented to The Nation Newspaper, "We are pretty pleased with the way things are going. We will probably double our operating profits this year for March '08 over March '07. Our financial year ends in March. In March '07 we did US$220 million. This year we will bring that to around US$440 million to March '08. That's operating profit, earnings before interest, taxes and depreciation. Jamaica, St Vincent, Antigua and Barbados made significant contributions to that bright picture. All of our established markets are contributing to that profit figure. We are growing in all of our markets and we have taken more market share away from Cable & Wireless. We know clearly that Digicel is No. 1 in most of the markets we are in at the moment." Cable & Wireless' claims about their market share and supremacy are false, The Nation Newspaper states, citing Mr. O'Brien. Digicel Ltd. is a wireless services provider in the Caribbean region founded in 2000, and controlled by Denis O'Brien. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in Caribbean countries including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Bermuda, Cayman, and Curacao among others. Digicel finished FY2005 with 1.722 million total subscribers -- 97% pre-paid -- estimated market share of 67% and revenues and EBITDA of US$478 million and US$155 million, respectively. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings took these rating actions for Digicel Group Ltd., Digicel Ltd. and Digicel International Finance Ltd.: Digicel Group Ltd. -- Proposed US$1.4 billion senior subordinated notes due 2015 assigned 'CCC+/RR5' Digicel Ltd. -- Foreign currency Issuer Default Rating downgraded to 'B-' from 'B'; and -- US$450 million senior notes due 2012 downgraded to 'B-/RR4' from'B/RR4'. Digicel International Finance Ltd. --US$850 million senior secured credit facility assigned 'B/RR3'. Fitch said the outlook on all ratings is stable. ============= B E R M U D A ============= SEA CONTAINERS: Committee Taps Navigant Consulting as Advisors -------------------------------------------------------------- The Official Committee of Unsecured Creditors in Sea Containers Ltd. and its debtor-affiliates Chapter 11 cases seeks authority from the U.S. Bankruptcy Court for the District of Delaware to employ Navigant Consulting, Inc., to provide litigation consulting services, nunc pro tunc to Feb. 15, 2008. Ronald J. Silverman, Esq., at Bingham McCutchen LLP, in New York, relates that Navigant Consulting has extensive experience, knowledge and resources in the actuarial field, and in providing testimony in court. He adds that the firm is well-qualified to serve the SCL Committee in providing litigation consulting services. As consultant, Navigant Consulting will: (a) advise the SCL Committee with respect to pension claims asserted against the Debtors, including the extent and validity of the claims and the calculation of claims under the so-called "prudent investor" rule and under other standards; (b) assist and advise the SCL Committee in its consultations with the Debtors and the Official Committee of Unsecured Creditors of Sea Containers Services Ltd. relative to the calculation of pension claims and the development of a plan of reorganization; (c) provide expert witness testimony, including the preparation of an expert report under Rule 7026 of the Federal Rules of Bankruptcy Procedure, and appearance for deposition or trial; (d) attend the meetings of the SCL Committee; and (e) perform other services as may be required and are deemed to be in the interests of the SCL Committee. Navigant Consulting will be paid for professional services based on its standard hourly rates. Navigant Consulting professionals, who are expected to be principally responsible for the matters in the bankruptcy cases, will be paid in their current hourly rate: Designation Hourly Rate ----------- ----------- Paul Braithwaite US$650 John Parks US$600 Joseph J. DeVito US$500 Robert Hendel US$375 Mr. Silverman relates that Navigant Consulting will not seek to be compensated separately for certain staff, clerical and resource charges. The firm, however, will be reimbursed for charges and expenses. Joseph DeVito, managing director at Navigant Consulting, assures the Court that, except as set forth in his declaration, Navigant Consulting, and its directors and employees do not hold or represent any interest adverse to the Debtors' bankruptcy estates or creditors. He declares that Navigant Consulting is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court gave the Debtors until April 15, 2008, to file a plan of reorganization. * BERMUDA: Fitch Says (Re)Insurance Market Thriving Amidst Chaos ---------------------------------------------------------------- Fitch Ratings stated in a Special Report that Bermuda continues to develop as a thriving domicile for (re)insurance organizations, attributable to an attractive regulatory and tax environment, an accumulation of investment capital and underwriting talent, and innovative approaches to risk management. Fitch's report also delves into the agency's first discussion of a separate Rating Outlook for this market. To coincide with the release of this Special Report, Fitch's Insurance Group will host a conference call on the Bermuda market on Wednesday, March 5 at 10am ET (1500 GMT). A separate press announcement with dial-in information will be released to market participants shortly. In the Special Report, Fitch outlines the Bermuda market's key characteristics, identifies challenges expected to have an impact on the market in 2008, and discusses Fitch's 2008 financial projections for the market. The report also introduces Fitch's Bermuda market aggregate index, a group of Bermuda-based (re)insurers that are important components of the Bermuda (re)insurance market, and provides Fitch's first discussion of a separate Rating Outlook for the Bermuda market. Though this market has enjoyed this tremendous operating success in the past two years, Bermuda (re)insurers will face significant pressure on profitability going forward asproperty/casualty insurance pricing continues to trend steadily downward. Key near-term challenges facing the Bermuda market include managing the execution risk derived from expansion strategies adopted by some market participants, coping with the market's unique infrastructure challenges, and retaining financial and competitive advantages derived from the island's tax status. * BERMUDA: Fitch Conference Call on Insurance Market Is Today ------------------------------------------------------------- Fitch Ratings will host a teleconference to discuss the Bermuda insurance and (Re)insurance markets and trends expected to affect this industry in 2008 on Wednesday, March 5. Fitch's analysts will also delve into the agency's first discussion of a separate Rating Outlook for this market. The teleconference is set for 10 a.m. ET (1500 GMT) and is being held to coincide with the release of the Special Report of the same subject, "Bermuda Market Overview," now available on the Fitch web site under Financial Institutions > Insurance > Special Reports. Fitch notes that while Bermuda's insurance market has enjoyed tremendous operating success in the past two years, Bermuda (re)insurers will face significant pressure on profitability going forward as property/casualty insurance pricing continues to trend steadily downward. Key near-term challenges facing the Bermuda market include managing the execution risk derived from expansion strategies adopted by some market participants, coping with the market's unique infrastructure challenges, and retaining financial and competitive advantages derived from the island's tax status. Senior credit analysts from Fitch's North American Insurance group will lead the conference call. Operator-assisted Q&A will follow for phone participants. Live Telephone Dial-Ins: -- Live US and North America: +1-866-529-2924 -- Live International: +1-706-634-4949 -- Conference ID # 37588146 -- Leader: Mark Rouck -- Title: Bermuda's Insurance Market As an added benefit, market participants also may listen to the conference call via the Web. For this listen-only mode, please use the link: -- http://audioevent.mshow.com/342573 Replay Information: -- Replay U.S. and North America: +1-800-642-1687 -- Replay International: +1-706-645-9291 -- Replay Dates: March 5, 2008 11:00a.m. ET - April 5, 2008 11:59pm ET =========== B R A Z I L =========== ACTUANT CORP: Acquires Superior Plant Services for US$57 Million ---------------------------------------------------------------- Actuant Corporation has acquired Superior Plant Services, LLC, for approximately US$57 million in cash. Funding for the completed transaction came from the company's revolving credit facility. SPS will operate as part of Hydratight, within Actuant's Industrial Segment. Brian Kobylinski, Leader of Actuant's Industrial Segment, stated: "SPS is a great addition to our global joint integrity platform, adding a significant presence to our service business both in oil & gas in the important Gulf of Mexico region and in power generation in the mid-Atlantic. Its long-standing customer relationships and trained workforce of over 125 service technicians represent excellent complements to our existing Hydratight business. SPS President Al Shiyou and his management team have been successful in growing their business and we look forward to them joining the Actuant team." About SPS Headquartered in Terrytown, Louisiana, SPS is a specialized maintenance services company serving the oil & gas and nuclear power industries in North America, primarily in the Gulf of Mexico and mid-Atlantic regions of the United States. Its services include field machining, flange weld testing, line isolation, bolting, heat treating, and metal disintegration. SPS generated approximately US$25 million in revenues last year. About Actuant Corp. Headquartered in Butler, Wis., Actuant Corp. (NYSE: ATU) -- http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries including Australia, China, Italy, United Kingdom, Brazil, among others. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. The company employs a workforce of more than 6,700 worldwide. * * * In June 2007, Moody's Investors Service assigned a Ba2 (LGD3, 43%) rating to Actuant Corporation's US$250 million senior unsecured notes and affirmed the company's Ba2 Corporate Family Rating. Standard & Poor's Ratings Services assigned its 'BB-' rating to Actuant Corp.'s proposed US$250 million senior unsecured notes due 2017. The proceeds from the notes will be principally used to repay a portion of borrowings under the company's senior credit facility due 2009. BANCO BRADESCO: Board Approves Complimentary Dividends Payment -------------------------------------------------------------- Banco Bradesco S.A.'s Board of Directors has approved the Board of Executive Officers' proposal for the payment to the company's stockholders of Complementary Dividends to the Interest on Own Capital and Dividends related to the fiscal year 2007, for BRL65,200,000, of which BRL0.030760433 per common stock and BRL0.033836477 per preferred stock, benefiting the stockholders registered in the Bank's books on March 3, 2008. The company's stocks were traded "ex-right" on referred Dividends since March 4. The payment will be made on March 17, 2008, with no Withholding Income Tax. The dividends related to the stocks under custody at CBLC - Brazilian company and Depository Corporation will be paid to CBLC, which will transfer them to the stockholders through its Custody Agents. Thus, the amount of Interest and Dividends paid to stockholders, related to the fiscal year of 2007, totals BRL2,822,796,086.42. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO DO BRASIL: 4th Quarter Results Disappointing, Analysts Say ---------------------------------------------------------------- Banco do Brasil's fourth quarter results were disappointing and failed to meet market expectations, Business News Americas reports, citing banking analysts in and outside Brazil. As reported in the Troubled Company Reporter-Latin America on Feb. 28, 2008, Banco do Brasil's net profit dropped 2.48% to BRL1.22 billion in the fourth quarter 2007, compared to BRL1.25 billion in the same period in 2006 and BRL1.35 billion in the third quarter of 2007. Banco do Brasil's return on equity declined to 22.2% in the fourth quarter 2007, from 26.7% in the fourth quarter 2006, and 26.3% in the third quarter 2007. Brokerage Agora Corretora analyst Aloisio Villeth Lemos commented to BNamericas, "BB [Banco do Brasil] frustrated expectations and grew less than the market, while the big private sector banks fulfilled expectations. BB and [federal savings bank] Caixa Economica Federal were less profitable than the private sector banks, which is only natural for federal banks." According to BNamericas, Caixa Economica had BRL2.51 billion in net profits for the full year 2007 and return on equity of 23.7%, down from 26.0% in 2006. BNamericas notes that Bear Stearns analyst Saul Martinez reduced his earnings estimates for Banco do Brasil to BRL6.39 billion for this year, from BRL6.85 billion, with return on equity of 23.7%. Mr. Martinez lowered the earnings forecast for Banco do Brasil for 2009 to BRL7.21 billion, from BRL7.81 billion, the report says. BNamericas relates that Banco do Brasil expects recurring return on equity of up to 27% this year, compared to 25.3% last year. The report says that Deutsche Bank analyst Mario Pierry reduced his 2008 earnings estimates for Banco do Brasil by 3% to BRL6.78 billion due to: -- slower service fee income growth, -- higher costs, -- provisions, and -- taxes. Mr. Pierry expects Banco do Brasil's return on equity to be 25.3% this year, and then slipping to 25.2% in 2009, as net profits increase 19% to BRL8.09 billion, BNamericas notes. Mr. Pierry said in a report, "[W]e expect the bank to deliver solid earnings growth and profitability in 2008, driven by several cost-cutting initiatives and continued expansion in the more profitable retail segment." Mr. Pierry cut the target price for Banco do Brasil shares to BRL38 from BRL40 and kept his "buy rating" on the stock, BNamericas relates. Lika Takahashi from Banco Fator told BNamericas that lending growth at Banco do Brasil was below the market average in 2007 and failed to keep pace with private sector opponents Bradesco, Itau, and Unibanco. The analyst blamed Banco do Brasil's "moderate growth" on slower growth in agricultural loans and a decline in trade financing, BNamericas states. 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 DO BRASIL: Unit Posts BRL16.2 Million Loss in 2007 -------------------------------------------------------- Banco do Brasil's microcredit arm Banco Popular do Brasil's loss declined 59.9% to BRL16.2 million in 2007, from BRL40.5 million in 2006. According to Business News Americas, Banco Popular had net income of BRL89,000 and operating income of BRL518,000 in December 2007, its first profits ever. Banco Popular's net interest income was BRL7.14 million for the full year 2007, compared to losses of BRL15.6 million in 2006, while service fee income increased 55.6% to BRL42.4 million, BNamericas relates. Banco Popular's loan book declined 55.5% to BRL30.5 billion in 2007, compared to 2006, BNamericas states. 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+. CHRYSLER LLC: Will Appeal Bankruptcy Court's Tooling Decision ------------------------------------------------------------- Chrysler LLC, Chrysler Motors Company LLC, and Chrysler Canada Inc., took an appeal under 28 U.S.C. Section 158(a) before the U.S. District Court for the Eastern District of Michigan from the orders of the Honorable Phillip Shefferly of the U.S. Bankruptcy Court for the Eastern District of Michigan that denies: i) the lifting of the automatic stay to allow Chrysler to regain possession of tooling located in Plastech Engineered Products Inc. and its debtor-affiliates' plants; and ii) the issuance of a preliminary injunction in connection with the proposed recovery of the tooling equipment. As reported in the Troubled Company Reporter on Feb. 22, 2008, Judge Shefferly said in a court opinion that the Debtors needed to keep the tooling equipment to faciliate them in their reorganization. The balancing of interests favored Plastech, the Court said. The Court affirmed the Debtors' contentions that the automatic stay applies to both the tooling paid by Chrysler and the tooling that Chrysler has not paid for. "Even assuming that the Debtor has only a possessory interest in the tooling paid for by Chrysler, that is a sufficient interest by itself to cause the application of the automatic stay," Judge Shefferly said. In addition, the Court was convinced that if Chrysler takes immediate possession of the tooling, the Debtor will not be able to continue to provide parts uninterrupted to its other major customers and therefore any prospect of an effective reorganization will be lost. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Chrysler LLC Based in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 13, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. CHRYSLER LLC: February 2008 Sales Down 14%, Fleet Sales Reduced --------------------------------------------------------------- Chrysler LLC reported total February 2008 sales of 150,093 units which is 14% below the same period last year. This includes a significant reduction in fleet and reflects the company's ongoing commitment to reduce daily-rental fleet vehicle sales. All sales figures are reported as unadjusted. "While the auto industry is experiencing the impact of slow economic growth, Chrysler LLC February results reflect progress within each brand," Vice Chairman and President Jim Press said. "The positive numbers for Dodge cars, the all-new Chrysler Town & Country and the Jeep(R) Patriot prove our renewed focus on consumer feedback, such as the demand for good fuel economy, is resonating�and translating into sales of our New Day Value Packages. "While becoming a more agile company, we're developing a more personalized relationship with our customers and strengthening collaboration with our dealer partners. It's the sum total of their feedback that will guide the evolution of our dynamic product lineup and really make it a New Day�and a new era�at Chrysler LLC." February sales highlight strong core products like the Dodge Caliber�offering good mileage at a low price. Increased sales of Dodge Caliber (up 10%), and Dodge Avenger (up 60%), demonstrate Chrysler's strong positioning in the all-important car market, offering customers what they are looking for now more than ever�vehicles with high quality, great performance and tremendous value. Chrysler brand truck sales were led by the Chrysler Town & Country, which posted sales of 11,952 units for February, representing a 1% increase versus the same period last year. Chrysler Aspen sales increased 31% with 2,879 units compared with February 2007 when sales were 2,202 units. The all-new Jeep Patriot set a new sales record for the month of February with 5,195 units sold. The vehicle is one of Chrysler's recently introduced models that achieve 28 miles per gallon or better in highway driving. Chrysler LLC and its Dealer Advertising Association launched the New Day Celebration campaign last month in 55 regional markets. Solid February sales of the 12 vehicles featuring New Day Value Packages, including the Dodge Caliber, Dodge Avenger, and Chrysler Sebring�all developed in response to input from customers and dealers�affirm Chrysler's new direction to listen intently, move quickly and offer the best value in the American market. The all-new 2009 Dodge Journey continues to arrive in showrooms in March. Dodge Journey is a global vehicle that meets life's changing demands by offering five or seven passenger seating and a choice of four or six cylinder engines. Dodge Journey arrives to market with a starting U.S. Manufacturer's Suggested Retail Price of US$19,985 (including US$625 destination). The Company finished the month with 436,399 units of inventory, or a 73-day supply. Inventory is down by 11% compared with February 2007 when it was at 492,230 units. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 13, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. COMPANHIA ENERGETICA: UBS Affirms Neutral Rating on Firm -------------------------------------------------------- Swiss investment bank UBS has affirmed its neutral rating on Companhia Energetica de Sao Paulo following reports that the Sao Paulo local government is getting ready for the auction of Companhia Energetica's shares, Business News Americas reports. As reported in the Troubled Company Reporter-Latin America on March 3, 2008, the Sao Paulo local government will publish a list of prequalified bidders for Companhia Energetica on March 14 and a list of companies that offer a financial guarantee of BRL1.74 billion. The state will host the auction on March 26. BNamericas relates that the state wants to sell 7.0 million preferred and 85.9 million ordinary shares in Companhia Energetica. UBS said in a report, "In our opinion, these are important dates to watch to understand the real interest in the asset by potential bidders." Risks to Companhia Energetica investments are low returns on capex for expansions and a negative macroeconomic environment, UBS told BNamericas. Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third largest power generator, majority owned by the State of Sao Paulo. CESP operates 6 hydroelectric plants with total installed capacity of 7,456 MW and reported net revenues of BRL1,983 million in the last twelve months through Sept. 30, 2006. As reported in the Troubled Company Reporter-Latin America on Oct. 10, 2007, Standard & Poor's Ratings Services raised its ratings on electricity generator Companhia Energetica de Sao Paulo, including its corporate credit rating to 'B' from 'B-'. At the same time, S&P raised its Brazil national scale ratings on CESP to 'brBBB-' from 'brBB'. S&P said the outlook remains positive on both scales. DELPHI CORP: Wants Plan-Filing Period Further Extended to May 31 ---------------------------------------------------------------- Delphi Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to further extend their exclusive periods to: (a) file a plan of reorganization through and including May 31, 2008; and (b) solicit acceptance of that plan through and including July 31, 2008. As reported in the Troubled Company Reporter on Jan. 28, 2008, the Court confirmed the Debtors' First Amended Joint Plan of Reorganization. The Debtors anticipate having the Plan become effective as soon as reasonably practicable. Out of an abundance of caution, however, the Debtors are seeking an extension of the Exclusive Periods to prevent any lapse in exclusivity. A further extension of the Exclusive Periods is justified by the significant progress the Debtors have made toward emerging from Chapter 11, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates. The Debtors, he notes, have developed, solicited, and achieved confirmation of a reorganization plan that was accepted by 81% of their creditors and 78% of their stockholders. Upon the effective date of the Plan, the Debtors' comprehensive settlements with General Motors Corp., Delphi's U.S. labor unions, and other settling parties will be implemented. "All of this was the result of diligent work by the Debtors over many months," Mr. Butler avers. The Debtors' efforts, according to Mr. Butler, were affected by severe dislocations in the capital markets that began late in the second quarter of 2007 and that have continued through the first quarter of 2008. "This turbulence in the capital markets was a principal cause of the delay in the Debtors' emergence from Chapter 11 before the end of 2007," he explains. The continued turbulence constitutes an additional factor justifying a further extension of the Exclusive Periods, he asserts. Although the Court has confirmed the Plan, the Debtors must still procure fully committed exit financing that will support implementation of the Plan and consummate all of the transactions contemplated by the Plan and Delphi's investment agreement with its Plan investors. The tasks of securing exit financing and satisfying all other conditions to the effectiveness of the Plan and Investment Agreement are significant for both their magnitude and complexity and also justify an extension of the Exclusive Periods, Mr. Butler adds. The size and complexity of the Debtors' Chapter 11 cases alone constitute sufficient cause to extend the Exclusive Periods, Mr. Butler points out. The Debtors' request for an extension of the Exclusive Periods is not a negotiation tactic, Mr. Butler clarifies. He assures the Court that the Debtors are paying their bills as they come due, including the statutory fees paid quarterly to the U.S. Trustee. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. DELPHI CORP: Ct. Extends Effectiveness of PBGC Letters of Credit ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has authorized Delphi Corp. and its debtor-affiliates to: (a) extend the effectiveness of the letters of credit issued by Delphi to the Pension Benefits Guaranty Corp. until April 15, 2008; and (b) increase the aggregate amount outstanding under the PBGC Letters of Credit by an additional US$10 million. As reported in the Troubled Company Reporter on May 22, 2007, the Debtors sought and obtained the Court's permission to perform under two sets of pension funding waivers issued by the United States Internal Revenue Service and provide the PBGC with letters of credit in connection with the IRS Waivers. The PBGC Letters of Credit may be drawn upon by the PBGC in favor of the Debtors' pension plans in the event the conditions set forth in the IRS Waivers are not satisfied. The IRS Waivers' main purpose was to facilitate the transfer of certain of the Debtors' hourly pension obligations to General Motors Corp. under Section 414(l) of the Internal Revenue Code, as set forth in the Debtors' confirmed Joint Plan of Reorganization. Under the First Waivers, the IRS waived the minimum funding requirements for Delphi's pension plan year ended Sept. 30, 2006. Under the Second Waivers, the IRS temporarily waived Delphi's minimum funding obligations concerning Delphi's hourly pension plan for the pension plan year ended Sept. 30, 2007. In return, the Debtors committed to make: * an accelerated US$10 million contribution to the Delphi Hourly Plan upon their emergence from Chapter 11; * a US$10 million contribution to the Hourly Plan as a partial prepayment of Delphi's post-emergence minimum funding obligations; and * a US$20 million contribution to the Hourly Plan within five days after the Effective Date of their Joint Plan of Reorganization. By their terms, the IRS Waivers will expire if Delphi has not emerged from Chapter 11 by Feb. 29, 2008. If the Waivers are permitted to expire, the Debtors may face an excise tax claim aggregating more US$1.4 billion for the pension plan year ended Sept. 30, 2006, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, notes. In addition, for the pension plan year ended Sept. 30, 2007, the Debtors will have to make redundant cash contributions that will result in projected overfunding of the Hourly Plan. The Debtors are unlikely to emerge from Chapter 11 by Feb. 29, 2008. Consequently, the Debtors initiated discussions with the PBGC to extend the expiration date for the IRS Waivers. After arm's-length negotiations, the PBGC agreed to recommend to the IRS that the IRS Waivers be extended from Feb. 29, 2008, through and including March 31, 2008, in exchange for (i) the extension of the PBGC Letters of Credit from March 15, 2008, through and including April 15, 2008; and (ii) a US$10 million increase in the aggregate amount outstanding under the Letters from US$150 million to US$160 million. On Feb. 27, 2008, IRS and the PBGC extended the IRS Waivers until March 31, 2008, Delphi Corp. vice president and chief restructuring officer John D. Sheehan disclosed in a regulatory filing with the U.S. Securities and Exchange Commission. The PBGC Settlement is fair, equitable, in the best interests of the Debtors and their estates, Mr. Butler avers. He maintains that the Settlement will assist the Debtors in efficiently effecting the Section 414(l) Transfer of the Hourly Plan to GM, and allow Delphi to emerge from Chapter 11 successfully. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-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: February 2008 Sales Drop 13% Compared to 2007 ------------------------------------------------------------- General Motors Corp. dealers in the United States delivered 270,423 vehicles in February, a decrease of 13% compared with an unusually strong February last year. "Our new launch vehicles, including the award-winning Chevrolet Malibu and Cadillac CTS, had a sensational month, as did the Chevrolet Cobalt, Saturn Aura, and the Pontiac G6," Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing, said. "Most importantly, despite tough market conditions, we anticipate our total retail vehicle sales share to have remained flat for the first two months of the year compared to 2007. We are encouraged by our performance in the key passenger car categories, and while the overall market for trucks is challenging, we anticipate holding our share for full- size pickups and utilities." Truck sales declined 20% compared with a year ago. GM's fuel-efficient cars saw strong growth. Chevrolet Cobalt total sales were up 56% with retail up 24%; Pontiac G6 was up 50 percent total and 6% retail; and Buick LaCrosse total sales were up 12% compared with February 2007. The Buick Enclave, GMC Acadia and Saturn Outlook together accounted for more than 11,000 vehicle sales in the month, an increase of 94% compared with the same month last year. Outlook sales were up 15%; Acadia sales increased 39%; and there were more than 3,800 Buick Enclaves sold. Also of note, the Chevrolet Equinox compact crossover utility had total sales of more than 8,600 vehicles for a 15% increase, and a retail sales increase of 8% compared to a year ago. "Our sales increase at Cadillac shows the power of new products to attract consumers -- even in a tough market," Mr. LaNeve added. "Additionally, Saturn Outlook had a 15 percent total sales increase, illustrating that vehicle's contribution to the mid-utility crossover segment performance. We remain focused on offering vehicles that have industry-leading value, great fuel economy and the best warranty coverage of any full-line automaker." Certified Used Vehicles February 2008 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 42,305 vehicles, down 1% from last February. Year-to-date sales are 79,974 vehicles, down 7% from the same period last year. GM Certified Used Vehicles, the industry's top-selling certified brand, posted February sales of 37,716 vehicles, equivalent to last February's results. Cadillac Certified Pre-Owned Vehicles sold 3,270 vehicles, up 5% from February 2007. Saturn Certified Pre-Owned Vehicles sold 706 vehicles, down 44%. Saab Certified Pre-Owned Vehicles sold 458 vehicles, down 15%, and HUMMER Certified Pre-Owned Vehicles sold 155 vehicles, up 52%. "Certified sales are off to a solid start in the first quarter," Mr. LaNeve said. "February sales for GM Certified Used Vehicles were up 13% from last month, but equivalent year over year to a strong sales performance in February 2007. Cadillac Certified Pre-Owned Vehicles posted a 5% sales increase over last February, while Hummer Certified Pre-Owned Vehicles rose 52%." In February, GM North America produced 350,000 vehicles (129,000 cars and 221,000 trucks). This is up 1,000 units or less than 1% compared to February 2007 when the region produced 349,000 vehicles (130,000 cars and 219,000 trucks). Production totals include joint venture production of 22,000 vehicles in February 2008 and 20,000 vehicles in February 2007. The region's 2008 first-quarter production forecast remains unchanged at 965,000 vehicles (357,000 cars and 608,000 trucks). Additionally, GM North America's initial 2008 second-quarter production forecast is set at 1.08 million vehicles (408,000 cars and 672,000 trucks), down 62,000 units or 5% from second- quarter 2007 actuals. In the second-quarter of 2007 the region produced 1.142 million vehicles (402,000 cars and 740,000 trucks). About GM 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 Feb. 28, 2008, Fitch Ratings affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. As reported in the Troubled Company Reporter 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 in the US, Canada and Germany. As reported in the Troubled Company Reporter 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. GENERAL MOTORS: Hires Frederick Henderson as President and COO -------------------------------------------------------------- Rick Wagoner, General Motors Corp. chairman and chief executive officer, disclosed that the board of directors approved these appointments, effective immediately, at its meeting yesterday: * Frederick (Fritz) A. Henderson, 49, vice chairman and chief financial officer, is elected president and chief operating officer; * Ray Young, 46, currently group vice president - finance, is elected executive vice president and chief financial officer, replacing Mr. Henderson; and * Thomas G. Stephens, 59, currently group vice president, global powertrain and global quality, is also elected executive vice president. "There's a lot going on at GM today," Mr. Wagoner said. "Besides our massive business transformations in the U.S. and Europe, we're experiencing explosive growth in emerging markets -- in some cases, in countries where GM doesn't have a long history. The industry is in the midst of the largest technology transformation it has ever faced. And GM continues to implement a truly global automotive operating structure. "It's an opportune time to further bolster our top leadership structure; specifically, it's the right time to reestablish GM's traditional President and Chief Operating Officer position," Mr. Wagoner continued. "And Fritz Henderson is the right person to assume this role. He's had a broad range of experiences in leading three of our regions and in a number of other GM businesses over the years, and he's made a tremendous contribution in each role. I look forward to working closely with Fritz and Bob Lutz, who so ably leads our global product development team, as we continue to implement the plan to transform General Motors for our second 100 years. "Ray Young brings a wealth of finance and operating experience to the CFO role, including leading GM do Brasil to record business results in his most recent assignment. Tom Stephens' promotion recognizes the huge role that advanced propulsion strategies will play in GM's future, as well as Tom's strong leadership and technical skills," Mr. Wagoner added. "GM is in the process of a remarkable transformation under Rick Wagoner's strong leadership. Tremendous progress has been made," George Fisher, presiding director of the GM board of directors, commented. "The promotion of Fritz Henderson to president and chief operating officer, along with Bob Lutz's continued success at transforming our global product activities, and the promotions of Ray Young and Tom Stephens, will further solidify our leadership structure for today and the future. The GM board is excited about the direction that GM is headed and believes these executive appointments will further support our business strategy and the work that needs to be done to achieve our growth, technology leadership and financial objectives." Mr. Henderson and Young will report to Mr. Wagoner. Reporting to Mr. Henderson, in addition to Mr. Stephens, will be the four regional presidents; Troy Clarke, GM North America; Carl-Peter Forster, GM Europe; Maureen Kempston Darkes, GM Latin America, Africa and Middle East; and Nick Reilly, GM Asia-Pacific. Also reporting to Mr. Henderson will be Bo Andersson, group vice president, global purchasing and supply chain, and Gary Cowger, group vice president, global manufacturing and labor relations. The remaining global functional leaders and Vice Chairman Bob Lutz will continue to report to Mr. Wagoner. About GM 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 Feb. 28, 2008, Fitch Ratings affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. As reported in the Troubled Company Reporter 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 in the US, Canada and Germany. As reported in the Troubled Company Reporter 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. HUGHES NETWORK: Net Income Up 161% to US$50 Million in 2007 ----------------------------------------------------------- Hughes Communications, Inc. reported financial results for the fourth quarter and year ended Dec. 31, 2007. The company's consolidated operations are currently classified into four reportable segments: North America VSAT; International VSAT; Telecom Systems; and Corporate and Other. The North America VSAT, International VSAT and Telecom Systems segments represent all the operations of Hughes Network Systems, LLC, Hughes' principal operating subsidiary. Hughes Network Systems, LLC "HNS delivered strong financial results in 2007," said president and chief executive officer, Pradman Kaul. "Revenues increased by 13% over 2006 to US$970 million and our profitability in 2007 was also very strong. Operating Income for the year was US$90 million, a growth of 56% over 2006; EBITDA* increased by 28% to US$139 million in 2007 over 2006, and Net Income increased by 161% to US$50 million. All of the segments showed robust growth. The major revenue growth contributors were the consumer, international and the mobile satellite markets with growth rates of 13%, 11% and 77% respectively in 2007 over 2006. The consumer base grew to 379,900 subscribers at Dec. 31, 2007, a growth of 16% over the subscriber base at Dec. 31, 2006. Our North America and International enterprise groups provided a solid revenue base contributing in aggregate over half of HNS' total revenue in 2007. I am also very pleased to report that we were awarded a record US$1.1 billion of new orders in 2007 representing a growth of 30% over 2006." "These impressive full-year results were a result of sustained quarterly performances, including a strong fourth quarter," continued Mr. Kaul. "We grew fourth quarter 2007 Revenues by 15%, Operating Income by 39% and Net Income by 95% over the fourth quarter of 2006. The revenue growth engines in the fourth quarter of 2007 were the consumer, international, and mobile satellite markets with growth rates of 14%, 25% and 52% respectively over the fourth quarter of 2006. We were awarded US$333 million of new orders in the fourth quarter of 2007, including significant orders from Camelot, State Bank of India, Best Western, Sherwin Williams, Walmart, Blockbuster, Hess, BP, Harris and Hughes Telematics." Selected Highlights: -- Hughes Network Systems, LLC accepted the in-orbit handover of the SPACEWAY(TM) 3 commercial communications satellite from Boeing. HNS will utilize the Boeing-built satellite to provide HughesNet(R) broadband satellite services throughout North America. The satellite is currently going through the system testing phase and the company expects to commence service later in the first quarter of 2008. -- Hughes Network Systems' wholly owned European subsidiary Hughes Network Systems Ltd. signed an amendment to the contract previously executed in August 2007 with U.K. lottery operator Camelot PLC for providing managed network services for over 27,000 lottery sites in the U.K. The amendment extends the contract's term to 10 years and also provides additional functionality. This brings the total value of the 10 year contract to over US$150 million making it the largest single order awarded to Hughes Network Systems in 2007. -- Hughes entered into a definitive agreement to acquire Helius, Inc., a portfolio company of Canopy Ventures. The acquisition will combine the skills of Helius, a recognized leader in providing business IPTV solutions for applications such as training, corporate communications and digital signage, with the extensive broadband networking experience and customer base of Hughes. Hughes plans to deploy Helius' innovative IP video technologies to enhance its existing HughesNet service offerings. -- Hughes Network Systems signed an agreement with Dow Electronics to be a distributor of HughesNet satellite broadband Internet service in the Southeastern United States, home to many consumers who are not served by high- speed landline Internet providers. Under the terms of the agreement, Dow Electronics will market primarily to retailers in Florida, Alabama, Georgia, Mississippi, Louisiana, South Carolina, North Carolina, Arkansas, Tennessee, Puerto Rico and the U.S. Virgin Islands who will sell and install the HughesNet satellite broadband access service. -- Hughes Network Systems signed an agreement with CVS Systems, Inc. to be a distributor of HughesNet satellite broadband Internet service in the Midwest and Great Lakes region of the country, home to many consumers who are not served by high-speed landline Internet providers. Under the terms of the agreement, CVS will market primarily to retailers in Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri and Ohio who will sell and install the HughesNet satellite broadband access service. -- Hughes Network Systems' 9201 mobile satellite IP terminal, which operates over the Inmarsat Broadband Global Area Network system, was part of the CNN satellite newsgathering solution honored by the National Academy of Television Arts and Sciences with the Technology and Engineering Emmy award which was announced recently at the International Consumer Electronics Show in Las Vegas. -- Hughes' Brazilian service subsidiary was selected by Rede Smart, a Martins Group company, to provide HughesNet broadband satellite managed network services to Rede Smart's 930 grocery stores throughout Brazil. -- Hughes Network Systems signed EMBARQ(TM) to be a reseller of HughesNet broadband satellite Internet access. EMBARQ has a comprehensive range of services designed to help businesses of all sizes be more productive and communicate with their customers. EMBARQ's business customers in rural areas of the United States will now be provided with high-speed Internet access comparable to the services that are available in urban markets. -- Hughes India signed a contract with Comat Technologies to supply 10,000 broadband satellite terminals, together with its nationwide HughesNet satellite services and applications to be delivered at rural business centers across multiple states in India. Comat is the premier e- governance organization in India, having more than a decade of experience working with government, public, private and multi-lateral organizations. To summarize, Mr. Kaul said, "We are very pleased with the strong and balanced financial results that we have delivered in 2007. We are currently at an advanced stage in the in-orbit system testing of SPACEWAY 3 and we are looking forward to commencing service on SPACEWAY 3 by the end of this quarter. We expect that SPACEWAY 3 will provide us significant cost benefits and also open up new revenue opportunities going forward in the North American enterprise and consumer markets. We have a robust orders backlog coming into 2008 as a result of an outstanding new orders performance in 2007. All of these have positioned HNS very well for 2008 and beyond."<