T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, March 6, 2008, Vol. 9, No. 47
Headlines
A R G E N T I N A
DANA CORP: Allowed Unsecured Claims Total US$2 Billion
DELTA AIR: Bell Atlantic Appeals TIA/SLV Claims Disallowance
DELTA AIR: Ten Retirees Seek Allowance of 'Look Back' Claims
DELTA AIR: Wants Until October 21 to Resolve Disputed Claims
GIRASOLES DEL CAMPO: Files for Reorganization in Court
GLOBAL CROSSING: To Provide IP Telephony Service to HM Revenue
INELMINDA SAICIFA: Files for Reorganization in Court
LEAR CORP: Court Allows Amended Complaint Over US$2 Bln Sale
LOGISTICA Y TRANSPORTE: Individual Report Submission on June 16
MARIO CORDANI: Proofs of Claim Verification Deadline is April 10
MPM OBRAS: Proofs of Claim Verification Deadline is April 18
PAGLIETTINI SA: Files for Reorganization in Court
SANTANDER RIO: Sees Up to 30% Growth in Lending This Year
SCO GROUP: Disclosure Statement Hearing Set For April 2
SCO GROUP: Payment in Full to All Creditors Under Plan
B E R M U D A
SCOTTISH RE: Amends Employment Terms of CEO and CFO
B O L I V I A
COEUR D'ALENE: M. Krebs Replaces J. Sabala as Sr. Vice Pres.-CFO
B R A Z I L
ABITIBIBOWATER INC: Incurs US$250MM Net Loss in Fourth Quarter
ABITIBIBOWATER INC: Seeks to Finance Debts Maturing in 2nd Qtr.
BANCO BRADESCO: Shareholders to Vote on Further Capital Increase
BANCO DO BRASIL: May Purchase Financial Institutions
BANCO DO BRASIL: Previ Reports BRL18 Billion Record Surplus
BANCO NACIONAL: Infrastructure Up 62% to BRL25.8 Billion
BANCO NACIONAL: Okays BRL355 Million Loan to Coelce
DELPHI CORP: Court Extends Deadline to Remove Civil Actions
DELPHI CORP: Court Extends Lease Decision Deadline to March 31
GERDAU SA: Board Okays Shares Issuance Up to BRL2.8 Million
GERDAU SA: To Carry Out Public Primary Share Offering
GOL LINHAS: Reports Passenger Statistics for February 2008
JAPAN AIRLINES: Announces Changes in Board Membership
JBS SA: Buys National Beef for US$465MM Cash, US$95MM Stock
JBS SA: Buying Smithfield Foods and Tasman Group for US$713 Mil.
NET SERVICOS: Picks ARRIS to Expand Internet Service in Brazil
SUN MICROSYSTEMS: Teams with SBTVD to Develop Software Solution
TEREX CORP: Closes ASV Purchase for US$488 Million
C A Y M A N I S L A N D S
GUGGENHEIM PARTNERS: Proofs of Claim Filing is Until March 14
GUGGENHEIM PARTNERS INVESTMENT: Claims Filing Ends on March 14
MADISON RIDGE: Proofs of Claim Filing Deadline is March 14
MERLIN BIOMED: Sets Final Shareholders' Meeting for March 14
MERLIN BIOMED OFFSHORE: Final Shareholders' Meeting on March 14
PARMALAT SPA: Increases Fully Paid Up Share Capital to EUR1.6BB
* CAYMAN ISLANDS: Moody's Publishes Annual Report
C H I L E
TECH DATA: Reports US$50.2 Million Net Income in Fourth Quarter
C O L O M B I A
GMAC LLC: Fitch Chips Ratings and Removes Negative CreditWatch
SOLUTIA INC: Posts US$208 Mil. Net Loss for Year Ended Dec. 31
SOLUTIA INC: Provides Status of Adversary Proceedings
SOLUTIA INC: DuPont Disputes Need to Reexamine BDO's Report
C O S T A R I C A
GRUPO M: Adverse Conditions Cue Moody's Ba3 Rating Withdrawal
SIRVA INC: 341 Meeting of Creditors Postponed Until April 20
SIRVA INC: Allowed to Obtain US$150,000,000 of DIP Financing
SIRVA INC: Gets Permission to Use Lenders' Cash Collateral
SIRVA INC: Sells U.K. and Ireland Operations to TEAM Group
D O M I N I C A N R E P U B L I C
TRICOM SA: Disclosure Statement Hearing Scheduled on April 15
E C U A D O R
PETROECUADOR: Lifts Force Majeure on Oil Exports
PETROECUADOR: To End Renegotiation Talks With Petrobras & Repsol
PETROECUADOR: Unit Awards Piping Supply Contracts to Two Firms
G U A T E M A L A
EXIDE TECHNOLOGIES: Moody's Ups US$200MM Credit Facility to Ba3
H A I T I
DYNCORP INT'L: Will Provide Support Services in Philippines
J A M A I C A
AMERICAN AIRLINES: To Launch Kingston-Fort Lauderdale Service
M E X I C O
AMERICAN AXLE: Work Stoppage of UAW Members Still in Effect
BANCO CREDIT: Moody's Assigns D+ Bank Financial Strength Rating
CABLEMAS SA: Moody's Reviews B1 Rating Pending Televisa Approval
DURA AUTOMOTIVE: Court Approves 2008 Annual Bonus Plan
DURA AUTOMOTIVE: Court Okays US$2 Mln Nyloncraft Settlement Pact
MEGA BRANDS: Former Owners Intend to Buy Back RoseArt Division
VISTA GOLD: Expects to Close US$32MM Convertible Note Offering
P E R U
QUEBECOR WORLD: Creditors' Committee Taps Mesirow as Advisor
QUEBECOR WORLD: Creditors' Panel Wants Jefferies & Co. as Banker
QUEBECOR WORLD: Wants Creditor Information Protocol Approved
QUEBECOR WORLD: Woes Cue US$779MM Non-Cash Hit for Quebecor Inc.
P U E R T O R I C O
TERADYNE INC: Daniel Tempesta Resigns as Corporate Controller
UNIVISION COMMS: Asset Sale Proceeds Lower Than Fitch Expected
V E N E Z U E L A
CHRYSLER LLC: Corrects Erroneously Reported US$2.7 Billion Loss
PETROLEOS DE VENEZUELA: Gov't Asks OPEC to Discuss Asset Freeze
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A R G E N T I N A
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DANA CORP: Allowed Unsecured Claims Total US$2 Billion
------------------------------------------------------
Pursuant to the Third Amended Joint Plan of Reorganization, Dana
Corp. and its debtor-affiliates filed a 38-page list of allowed
unsecured claims, which total US$2,047,009,527.
Wilmington Trust owns a substantial portion of the allowed
claims, the largest of which are:
Claim No. Claimant(Transferee) Allowed Amount
--------- -------------------- --------------
1701 LEXINGTON ANTIOCH LLC (SPCP GROUP) US$7,200,000
11680 AFFINIA GROUP INC (LEHMAN COMMERCIAL) US$12,700,000
1168000001 AFFINIA GROUP (WINDMILL MASTER FUND) US$9,000,000
13650 BEAR STEARNS INVESTMENT - METALDYNE US$9,361,174
14900 SYPRIS TECHNOLOGIES INC US$89,900,000
14903 TOLEDO-LUCAS COUNTY PORT AUTHORITY US$15,000,000
13800001 TOYOTA TSUSHO (TCM ALLOCATION) US$7,519,295
12681 WILMINGTON TRUST COMPANY US$453,510,000
12686 WILMINGTON TRUST COMPANY US$361,501,435
12685 WILMINGTON TRUST COMPANY US$277,743,110
12687 WILMINGTON TRUST COMPANY US$170,441,633
12688 WILMINGTON TRUST COMPANY US$154,550,000
12684 WILMINGTON TRUST COMPANY US$116,148,326
12682 WILMINGTON TRUST COMPANY US$78,279,843
12683 WILMINGTON TRUST COMPANY US$8,773,889
The list of Allowed General Unsecured Claims is available for
free at http://bankrupt.com/misc/Dana_Class5BClaims.pdf
Corrine Ball, Esq., at Jones Day, in New York, noted that to the
extent the holder of any General Unsecured Claim on Allowed
Claims List also holds or asserts any Claim or portion of a
Claim that is not a General Unsecured Claim in Class 5B under
the Plan, that other Claim or portion of a Claim is not included
in the updated Allowed Claims List.
The Reorganized Debtors reserve their rights to amend,
supplement, modify, or correct the updated Allowed Claims List.
The Third Amended Plan projected a 72% to 86% recovery for
general unsecured claims against the Debtors, excluding EFMG
LLC, on an assumption that total general unsecured claims ranged
from US$2,500,000,000 to US$3,000,000,000. Holders of general
unsecured claims will receive cash and stock of Dana Holding
Corp.
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies. Dana
employs 46,000 people in 28 countries. Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total
assets and US$7,665,000,000 in total debts resulting in a total
shareholders' deficit of US$534,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represented the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represented the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.
The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008. Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.
(Dana Corporation Bankruptcy News, Issue No. 71; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2008, Standard & Poor's Ratings Services assigned its
'BB-' corporate credit rating to Toledo, Ohio-based Dana Holding
Corp. following the company's emergence from Chapter 11 on
Feb. 1, 2008. The outlook is negative.
At the same time, Standard & Poor's assigned Dana's US$650
million asset-based loan revolving credit facility due 2013 a
'BB+' rating (two notches higher than the corporate credit
rating) with a recovery rating of '1', indicating an expectation
of very high recovery in the event of a payment default.
In addition, S&P assigned a 'BB' bank loan rating to Dana's
US$1.43 billion senior secured term loan with a recovery rating
of '2', indicating an expectation of average recovery.
DELTA AIR: Bell Atlantic Appeals TIA/SLV Claims Disallowance
------------------------------------------------------------
Bell Atlantic Tricon Leasing Corporation, NCC Golf Company, NCC
Key Company, and NCC Charlie Company notified the U.S.
Bankruptcy Court for the Southern District of New York that they
will take an appeal to the U.S. District Court for the Southern
District of New York from Judge Adlai S. Hardin's order
sustaining the objections of Delta Air Lines, Inc. to certain
claims they asserted for tax indemnities and stipulated loss
values.
Judge Hardin disallowed and expunged:
* Claim Nos. 6182, 6183 and 6185 filed by NCC Key Company as
Owner Participant;
* Claim Nos. 6184, 6216 and 6217 filed by NCC Golf Company as
Owner Participant;
* Claim No. 6186 filed by NCC Charlie Company as Owner
Participant; and
* Claim No. 6215 filed by Bell Atlantic Tricon Leasing
Corporation as Owner Participant.
Judge Hardin ruled that Substitute TIA/SLV Objection 3 is denied
insofar as it relates to Claim Nos. 4703, 4703-1, 4704, 4704-1
and 5335 as originally filed by The Bank of New York as
Indenture Trustee.
The Verizon Entities are owner participants to Tax Indemnity
Agreements involving aircraft with Tail Nos. N121DE, N917DL,
N919DL, N920DL, N921DL, N922DL, N923DL, and N924DL.
The Verizon Entities want the District Court to determine
whether the Bankruptcy Court erred as a matter of law:
(1) in preventing the Entities from taking any discovery with
respect to the meaning and function of the TIA's
exclusion provision;
(2) in holding that the TIA's exclusion provision is
unambiguous and in declining to consider the
uncontroverted extrinsic evidence presented by the
Entities with respect to the meaning of the exclusion
provision of the TIAs;
(3) in refusing to consider any extrinsic evidence as to the
customs and usages of terms in the leveraged aircraft
leasing industry in determining that the exclusion
provision of the TIA is unambiguous;
(4) in reaching its conclusions as to (i) the interest and
objective of Delta in negotiating the TIAs; and (ii) the
expectation and contemplation of the parties who drafted
the TIAs, without admitting or considering any evidence
to support these conclusions;
(5) in holding that the TIAs can be interpreted differently
in the "bankruptcy context" than they would be if
interpreted in accordance with applicable state law and
its rules of contract interpretation;
(6) in disallowing the Entities' TIA claims and in
incorrectly applying the exclusion provision, including
without limitation, by holding that the allowance of, and
distributions on, the Indenture Trustee's claims in
accordance with Delta's confirmed plan constitutes the
"payment" of the claims within the meaning of the
exclusion provision of the TIAs; and
(7) in holding that Delta could satisfy the elements of the
exclusion provision in the TIAs by tendering payment in
kind -- including shares of stock -- of an amount that
was not calculated in compliance with the provisions of
the TIA and the related transaction documents, instead of
paying the full amount of SLV in U.S. Dollars as
required by the applicable contract terms.
About Delta Air
Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners. Delta flies to
Argentina, Australia and the United Kingdom, among others.
The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007. On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement. In April 25, 2007, the Court confirmed
the Debtors' plan. That plan became effective on
April 30, 2007. The Court entered a final decree closing 17
cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News,
Issue No. 91; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2008, Standard and Poor's said that media reports that
Delta Air Lines Inc. (B/Positive/--) entered into merger talks
with UAL Corp. (B/Stable/--) and Northwest Airlines Corp.
(B+/Stable/--) will have no effect on the ratings or outlook on
Delta, but that confirmed merger negotiations would result in
S&P's placing ratings of Delta and other airlines involved on
CreditWatch, most likely with developing or negative
implications.
DELTA AIR: Ten Retirees Seek Allowance of 'Look Back' Claims
------------------------------------------------------------
The Delta Pilots' Pension Preservation Organization, Inc., and
four retired pilots sought certification of a purported class
action seeking, among others, approximately US$100,000,000 of
"look back" claims -- Claim Nos. 8601 and 8604 -- that Delta Air
Lines Inc. allegedly disregarded in calculating and scheduling
the non-qualified claims under the settlements approved by the
U.S. Bankruptcy Court for the Southern District of New York.
In November 2007, DP3 withdrew the DP3 Class Action with
prejudice, pursuant to a court-approved stipulation.
According to Timothy E. Graulich, Esq., at Davis Polk &
Wardwell,
in New York, 10 retirees, including three of DP3's Class
claimants, filed individual proofs of claim, "seeking the
allowance of the very same 'look back' claims . . . in the now-
withdrawn DP3 Class Action."
The Claims are:
Claimant Claim No. Claim Amount
-------- --------- ------------
George Baker 8029 US$173,508
John Maguire 8072 34,439
Donald Mairose 8000 98,402
William McGannon 8030 314,482
Roscoe McMillan 8009 188,095
Gary Simmons 8119 966 per month
Herbert Summers 8082 66,906
Robert Turner 8083 126,415
Christopher Waggener 8024 217,843
8592 460,588
David McHenry 8047 expunged
8599 399,709
Claim Nos. 8000 and 8024 have been objected to in the Debtors'
20th and 24th omnibus objections. The Court expunged Claim No.
8047, as objected by the Debtors in their 24th omnibus
objection.
According to Mr. Graulich, the Look Back Claims were filed for
ERISA's "look back rules" that merely determine how the Pension
Benefit Guaranty Corporation will allocate the assets of the
terminated qualified plan among plan participants. The ERISA
rules, Mr. Graulich explains, provides that the PBGC is the only
entity entitled to recover from an employer on account of
unfunded benefit liabilities under the terminated qualified
benefit pension plan.
Mr. Graulich says that there is no legal basis for the Look Back
Claimants to seek non-qualified pension plan claims against
Delta just because they are dissatisfied with their anticipated
qualified plan benefits from the PBGC.
Moreover, the Look Back Claims raise a question of either
federal regulation or federal law; hence, the Look Back
Claimants who assert miscalculations in their qualified benefits
should seek redress from the PBGC in an appropriate non-
bankruptcy forum, Mr. Graulich says.
Mr. Graulich finds that the Look Back Claims are predicated
entirely upon the PBGC's initial calculations that were
preliminary and remain subject to revision based upon a variety
of factors that may well to finalize. Accordingly, the Claims
are fundamentally speculative in nature and therefore must be
expunged, Mr. Graulich says, citing See Pineiro, 318 F. Supp. 2d
67, 73 (S.D.N.Y. 2003).
In addition, Mr. Graulich points out that Messrs. Mairose,
McHenry and Waggener are post-termination covered pilots who
have already been allowed claims pursuant to a Court-approved
Stipulation between the Debtors, the Creditors Committee and
DP3. The Stipulation substantially grants claims of pilots who
retired prior to the termination of non-qualified pension plans.
Specifically, post-termination covered pilots were additional
allowed general non-priority unsecured claims in the aggregate
amount of approximately US$728,000,000, in full satisfaction of
their rights under the NQ Plans, Mr. Graulich explains.
Notably, the Stipulation precluded DP3 and all covered retired
pilots from asserting new claims against Delta with respect to
the termination of the NQ Plans; therefore, the Look Back Claims
of the three pilots are direct violation of the Stipulation, Mr.
Graulich contends.
Mr. Graulich further notes that the global claims settlement
arising from the NQ Plans was the core of the NQ Settlement and
the distribution of cash and Delta shares of common stock to
covered pilots. Delta would have not made the distributions
absent the assurance of a final, comprehensive settlement with
DP3 and the covered pilots, Mr. Graulich tells Judge Adlai
Hardin.
About Delta Air
Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners. Delta flies to
Argentina, Australia and the United Kingdom, among others.
The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007. On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement. In April 25, 2007, the Court confirmed
the Debtors' plan. That plan became effective on
April 30, 2007. The Court entered a final decree closing 17
cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News,
Issue No. 91; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or
215/945-7000).
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2008, Standard and Poor's said that media reports that
Delta Air Lines Inc. (B/Positive/--) entered into merger talks
with UAL Corp. (B/Stable/--) and Northwest Airlines Corp.
(B+/Stable/--) will have no effect on the ratings or outlook on
Delta, but that confirmed merger negotiations would result in
S&P's placing ratings of Delta and other airlines involved on
CreditWatch, most likely with developing or negative
implications.
DELTA AIR: Wants Until October 21 to Resolve Disputed Claims
------------------------------------------------------------
Pursuant to Rule 9006(b)(1) of the Federal Rules of Bankruptcy
Procedure, Delta Air Lines Inc. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the Southern District of New York
to further extend their deadline to file objections to various
proofs of claim.
Delta asks for a 180-day extension, or until Oct. 21, 2008, to
attend to the remaining disputed proofs of claim.
The Debtors' current claims objection deadline is
April 24, 2008.
Absent an extension of the present Claims Objection Deadline,
the Debtors would be forced to interrupt ongoing negotiations
and proceedings to file several claims objections in order to
preserve their rights with respect to unresolved claims,
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, in New
York, maintains.
Mr. Huebner relates that in the course of the Debtors' cases,
9,200 proofs of claim aggregating an astronomical US$93,000,000
had to be reviewed, compared to the Debtors' records, or
discussed with claimholders. Certain of the claims, he adds,
are addressed quickly and others that involve complicated issues
and transactions require detailed analysis and lengthy
negotiations.
The Debtors have made progress in resolving disputed claims
through settlement, rejection or otherwise, including:
-- two distributions totaling approximately 278,000,000
shares of New Delta Common Stock have been made under the
Plan on account of 36,000 allowed unsecured claims in the
face amount of US$12,500,000,000;
-- 27 omnibus objections have been filed to more than 6,600
proofs of claim;
-- 6,100 disputed claims have been resolved, with the initial
face value of US$37,000,000,000;
-- three omnibus objections filed with respect to 197 proofs
of claim arising from aircraft-related transactions, and
discovery requests have been served with respect to 111
tax indemnity agreement claims;
-- variations in contract language from the operative
documents of more than 200 aircraft leveraged lease
transactions with respect with respect to TIA claims and
stipulated loss value have been analyzed and categorized;
-- four separate "test case" objections to TIA and SLV claims
have been filed to determine Delta's obligations;
-- a test case objection to TIA claims have been filed based
on language under TIA barring TIA claims after transfer of
beneficial interests;
-- 39 objections have been filed to more than 240 TIA and SLV
claims;
-- 600 aircraft-related, SLV and TIA claims have been
resolved;
-- cash distributions and New Delta Common Stock have been
finalized, calculated and withheld with tax on account of
substantially all of Delta's general unsecured retiree
claims;
-- a US$1,200,000,000 Air Line Pilots Association claim has
been monetized and distributions have been made to all
union-member employees; and
-- more than 30,000 W-2 and 1099 tax forms and retirees
individualized statements have been sent to creditors on
account of their distributions.
Mr. Huebner also reports that although substantial progress has
been made, there are still remaining unresolved claims that need
to be resolved, including (i) approximately 390 non-aircraft
claims representing approximately US$2,400,000,000; (ii) 20
redundant proofs of claim filed by the Internal Revenue Service,
aggregating US$31,800,000,000; and (iii) various TIA and SLV
aircraft claims, which have generated considerable litigation.
Absent an extension of the Claims Objection Deadline, the
Debtors will be forced to file all possible objections to each
remaining TIA claims and SLV claims to protect themselves of
probable TIA/SLV rulings that might be overturned on appeal,
which would constitute an enormous waste of resources, Mr.
Huebner tells Judge Adlai Hardin.
Many large, complex Chapter 11 debtors have spent months or even
years longer in bankruptcy than did the Debtors have required
comparable or substantially longer periods of time to resolve
claims, Mr. Huebner notes, citing In re UAL Corp., et al., Case
No. 02-48191 (Bankr. N.D. Ill.) and In re US Airways Group,
Inc., et al., Case No. 04-13819 (Bankr. E.D. Va.).
Mr. Huebner asserts that the extension will provide adequate
opportunity for the Debtors to complete the process and properly
address thousands of legitimate claimants.
About Delta Air
Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners. Delta flies to
Argentina, Australia and the United Kingdom, among others.
The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007. On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement. In April 25, 2007, the Court confirmed
the Debtors' plan. That plan became effective on
April 30, 2007. The Court entered a final decree closing 17
cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News,
Issue No. 91; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or
215/945-7000).
* * *
As reported in the Troubled Company Reporter on Jan. 17, 2008,
Standard and Poor's said that media reports that Delta Air Lines
Inc. (B/Positive/--) entered into merger talks with UAL Corp.
(B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will
have no effect on the ratings or outlook on Delta, but that
confirmed merger negotiations would result in S&P's placing
ratings of Delta and other airlines involved on CreditWatch,
most likely with developing or negative implications.
GIRASOLES DEL CAMPO: Files for Reorganization in Court
------------------------------------------------------
Girasoles del Campo S.A. has requested for reorganization
approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Girasoles del Campo to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Girasoles del Campo S.A.
Avenida Corrientes 2330
Buenos Aires, Argentina
GLOBAL CROSSING: To Provide IP Telephony Service to HM Revenue
--------------------------------------------------------------
Global Crossing Ltd. has disclosed that HM Revenue & Customs
will employ Global Crossing's hosted IP telephony service for
the operation of all its telephony services across the UK,
supporting 85,000 users. The service will be provided through
an OGCbuying.solutions contract. HMRC staff throughout the UK
will gradually migrate to this secure, hosted IP telephony
service.
This telecoms service is security-accredited and provides fully
managed voice, data networking, hosted IP telephony, mobile
working services and value added services. HMRC's move toward a
pan-government, secure hosted IP telephony platform ensures that
the organization is leading the way in the Government's best
practice and realizing the business benefits of a flexible,
managed and secure telephony solution. The IP telephony
platform forms a cornerstone of Global Crossing's next
generation network and Unified Communications strategy within
the UK.
Global Crossing CEO John Legere said, "We're delighted that
we've been chosen for this new contract by one of the largest
government departments in the country to migrate its legacy
telephony network to next generation technology. This
demonstrates Global Crossing's continued commitment to public
sector customers and our ability to transform legacy estates
into converged IP environments. The opportunity to support the
UK Government in its initiative to transform its
telecommunications services by offering secure next generation
hosted IP services to its customers is a core focus in our
support of government business."
Users will benefit from using Global Crossing's hosted IP
telephony offering, Global Crossing Unified Communications(TM),
which provides customers with fully managed hosted IP telephony,
collaboration and messaging solutions over a single, converged
IP network designed to improve productivity, consolidate diverse
systems and maximize efficiencies.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
(NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, and the United Kingdom. Global Crossing
serves many of the world's largest corporations, providing a
full range of managed data and voice products and services. The
company filed for chapter 11 protection on Jan. 28, 2002 (Bankr.
S.D.N.Y. Case No. 02-40188). When the Debtors filed for
protection from their creditors, they listed US$25,511,000,000
in total assets and US$15,467,000,000 in total debts. Global
Crossing emerged from chapter 11 on Dec. 9, 2003.
* * *
At Sept. 30, 2007, Global Crossing Ltd.'s balance sheet showed
total assets of US$2.6 billion, total debts of US$2.7 billion
and a US$74 million stockholders' deficit.
As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Global Crossing Ltd. said in a statement that its
net loss increased 75% to US$89 million in the third quarter
2007, compared to US$51 million in the third quarter 2006.
INELMINDA SAICIFA: Files for Reorganization in Court
----------------------------------------------------
Inelminda S.A.I.C.I.F.A. has requested for reorganization
approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Inelminda to negotiate a settlement with its creditors in
order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Inelminda S.A.I.C.I.F.A.
Avenida Corrientes 2330
Buenos Aires, Argentina
LEAR CORP: Court Allows Amended Complaint Over US$2 Bln Sale
------------------------------------------------------------
The Delaware Court of Chancery granted a motion for leave to
file a fourth amended complaint in the purported class action
that sought to block Lear Corp.'s acquisition by billionaire
investor Carl Icahn, according to the company's Feb. 15, 2008
form 10-K filing with the U.S. Securities and Exchange
Commission for the quarter ended Dec. 31, 2007.
Between Feb. 9 and Feb. 21, 2007, certain stockholders filed
three purported class action lawsuits against the company,
certain members of our Board of Directors and American Real
Estate Partners, L.P., and certain of its affiliates
(collectively, AREP) in the Delaware Court of Chancery.
The amended complaint in the consolidated action generally
alleges that the Agreement and Plan of Merger with AREP Car
Holdings Corp., and AREP Car Acquisition Corp. unfairly limited
the process of selling Lear and that certain members of our
Board of Directors breached their fiduciary duties in connection
with the Merger Agreement and acted with conflicts of interest
in approving the Merger Agreement.
The amended complaint in the consolidated action further alleges
that Lears preliminary and definitive proxy statements for the
Merger Agreement were misleading and incomplete, and that Lears
payments to AREP as a result of the termination of the Merger
Agreement constituted unjust enrichment and waste.
On Feb. 23, 2007, the plaintiffs filed a motion for expedited
proceedings and a motion to preliminarily enjoin the
transactions contemplated by the Merger Agreement. On March 27,
2007, the plaintiffs filed an amended complaint.
On June 15, 2007, the Delaware court issued an order entering a
limited injunction of Lears planned shareholder vote on the
Merger Agreement until the Company made supplemental proxy
disclosure. That supplemental proxy disclosure was approved by
the Delaware court and made on June 18, 2007.
In June 2007, the Delaware court allowed the plaintiffs to file
a second amended complaint. Later, a third amended complaint
was then filed by the plaintiffs.
On Jan. 30, 2008, the Delaware court granted the plaintiffs
motion for leave to file a fourth amended complaint leaving only
derivative claims against the Lear directors and AREP based on
the payment by Lear to AREP of a termination fee pursuant to the
Merger Agreement. The plaintiffs were also granted leave to
file an interim petition for an award of fees, and expenses
related to the supplemental proxy disclosure.
About Lear Corporation
Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) --
http://www.lear.com/-- supplies automotive interior systems and
components. Lear provides complete seat systems, electronic
products and electrical distribution systems and other interior
products. The company has more than 90,000 employees at 236
facilities in 33 countries.
Lear operates in Europe (France, Czech Republic, United Kingdom,
France, Germany, Hungary, Poland, Portugal, Romania, Russia,
Slovakia, Spain, Sweden), Latin America (Argentina, Mexico, and
Venezuela), and Asia (Singapore, China, India, Japan,
Philippines, South Korea, and Thailand).
* * *
As of March 4, 2008, Lear Corp. carries B2 Corporate Family,
Bank Loan Debt and Probability-of-Default ratings, and B3 Senior
Unsecured Debt rating from Moody's Investors Service, which said
the outlook is stable.
The company also carries B+ Long-Term Foreign and Local Issuer
Credit ratings from Standard & Poor's, which said the outlook is
negative.
LOGISTICA Y TRANSPORTE: Individual Report Submission on June 16
---------------------------------------------------------------
Jorge Roberto Dolinko, the court-appointed trustee for Logistica
y Transporte SA's reorganization proceeding, will present the
validated claims as individual reports in the National
Commercial Court of First Instance No. 7 in Buenos Aires on
June 16, 2008.
Mr. Dolinko will be verifying creditors' proofs of claim until
April 30, 2008. He will also submit in court a general report
that contains an audit of Logistica y Transporte's accounting
and banking records on Aug. 13, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly on Feb. 23, 2009.
Clerk No. 13 assists the court in this case.
The debtor can be reached at:
Logistica y Transporte SA
Parana 693
Buenos Aires, Argentina
The trustee can be reached at:
Jorge Roberto Dolinko
Tucuman 1657
Buenos Aires, Argentina
MARIO CORDANI: Proofs of Claim Verification Deadline is April 10
----------------------------------------------------------------
The court-appointed trustee for Mario Cordani S.A.'s bankruptcy
proceeding will be verifying creditors' proofs of claim until
April 10, 2008.
The trustee will present the validated claims in court as
individual reports on May 23, 2008. The National Commercial
Court of First Instance in Santa Fe will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Mario Cordani 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 Mario Cordani's
accounting and banking records will be submitted in court on
July 7, 2008.
The trustee is also in charge of administering Mario Cordani's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Mario Cordani S.A.
Ruta Nacional Numero 11, Km. 481
Recreo, Departamento La Capital
Santa Fe, Argentina
MPM OBRAS: Proofs of Claim Verification Deadline is April 18
------------------------------------------------------------
Marina Fernanda Tynik, the court-appointed trustee for M.P.M.
Obras Civiles S.A.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until April 18, 2008.
Ms. Tynik will present the validated claims in court as
individual reports on June 3, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by M.P.M. Obras 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 M.P.M. Obras'
accounting and banking records will be submitted in court on
July 17, 2008.
Ms. Tynik is also in charge of administering M.P.M. Obras'
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Marina Fernanda Tynik
Avenida Rivadavia 10.444
Buenos Aires, Argentina
PAGLIETTINI SA: Files for Reorganization in Court
-------------------------------------------------
Pagliettini S.A. has requested for reorganization approval after
failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Pagliettini to negotiate a settlement with its creditors
in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Pagliettini S.A.
Diaz Colodrero 3110
Buenos Aires, Argentina
SANTANDER RIO: Sees Up to 30% Growth in Lending This Year
--------------------------------------------------------
A Banco Santander Rio S.A. executive told Business News Americas
that the bank expects lending to increase up to 30% this year,
compared to a 40% plus increase in 2007.
According to BNamericas, Santander Rio's private sector loans
grew 44.9% to ARS11.2 billion in December 2007, from December
2006.
The official commented to BNamericas, "We expect to grow 25-30%
in 2008, both for the bank and the system, with consumer loans
and SMEs [small and medium-sized enterprises] leading the way."
Santander Rio finished amortizing legal injunctions called
amparos in December 2007 and this bodes very well for the bank's
2008 profits, BNamericas says, citing the official. "After our
strong growth and finishing the amparos and other balance sheet
cleaning activities, it is reasonable to expect very good
results in 2008," the executive commented to BNamericas.
The official told BNamericas that other factors that will
increase 2008 results are:
-- the bank's government-backed securities, which
are valued at market price;
-- strong commission revenues;
-- good asset quality; and
-- a lower cost of funding.
BNamericas relates that most of Santander Rio's deposits "are
low-cost sight deposits, while commission revenues -- which last
year were up 32.5% to ARS954 million -- cover 90% of expenses."
The report says that Santander Rio's past-due loan ratio for
private sector loans was 0.65% in December 2007.
Santander Rio's "good liquidity allows for not issuing bonds
this year for funding purposes -- at least for now," BNamericas
states, citing the official.
Banco Santander Rio S.A. is headquartered in Buenos Aires,
Argentina. The bank had ARS$16.2 billion (US$5.3 billion) in
total assets and ARS$12.6 billion (US$4.1 billion) in deposits
as of December 2006.
* * *
On Nov. 13, 2007, Moody's said that Banco Santander Rio S.A.'s
long term foreign currency deposit rating of Caa1 is limited by
the country ceiling for foreign currency deposits. Banco
Santander Rio's B2 foreign currency debt program is based on the
bank's Ba1 global local currency deposit rating.
SCO GROUP: Disclosure Statement Hearing Set For April 2
-------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
scheduled a hearing on April 2, 2008, to consider approval of
the adequacy of The S.C.O. Group Inc. and S.C.O Operations
Inc.'s Disclosure Statement dated Feb. 29, 2008, explaining
their Chapter 11 Plan of Reorganization
Headquartered in Lindon, Utah, The S.C.O. Group Inc. (Nasdaq:
SCOX) fka Caldera International Inc.-- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.
The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, the United
Kingdom, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
As reported in the Troubled Company Reporter on Feb. 12, 2008,
the Court further extended the Debtors' exclusive periods to
file a Chapter 11 plan until May 11, 2008; and solicit
acceptances of that plan until July 11, 2008.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2008, Tanner LC in Salt Lake City, Utah, expressed
substantial doubt about The SCO Group Inc.'s ability to continue
as a going concern after auditing the company's financial
statements for the year ended Oct. 31, 2007. The auditing firm
reported that the company is a debtor-in-possession under
Chapter 11 of the U.S. Bankruptcy Code, has experienced
significant and continuing net losses, and is faced with
substantial contingent liabilities as a result of certain
adverse legal rulings.
SCO GROUP: Payment in Full to All Creditors Under Plan
------------------------------------------------------
The S.C.O. Group Inc. and S.C.O Operations Inc. filed their
Chapter 11 Reorganization Plan and Disclosure Statement with the
United States Bankruptcy Court for the District of Delaware on
Feb. 29, 2008.
The Debtors' Plan, include:
i) full payment with interest, if applicable of approved
creditors' claims as allowed on the effective date of the
Plan;
ii) full payment with interest, if applicable of all claims
subject to pending litigation when and to the extent the
courts allow such claims; and
iii distributions to equity holders.
The Plan allows the Debtors to focus its efforts on the
development, sales and support of its UNIX and mobile
technologies. The Plan also provides for the establishment of a
new board of directors as well as the appointment of a new Chief
Executive Officer on its effective date.
"This is an important milestone in emerging from Chapter 11
bankruptcy," said Jeff Hunsaker, President and Chief Operating
Officer of SCO Operations. "We have been working together with
the Stephen Norris Capital Partners team carefully preparing a
plan that will pay qualified creditors' claims, provide a return
to profitability, expand our business, and continue to provide
our customers and partners with the solutions and services they
need to run and grow their businesses.
"We continue to be encouraged by the feedback we are receiving
from our customers, partners and stockholders. One large
customer in Italy announced to us this week that after having
left our UNIX platform and trying Microsoft(R) Windows(TM) and
Linux, they are returning to SCO OpenServer 6 due to its
unmatched stability and reliability," said Hunsaker.
Stephen Norris Capital Partners has, subject to continued due
diligence, committed to provide up to US$100 million to finance
the SCO Plan of reorganization and to take the Company private.
Stephen Norris said, "This reorganization plan is a positive
step for SCO's customers, partners and stockholders and a major
win for all parties. This plan will enable it to grow its
business, especially outside the U.S., and if possible, settle
its outstanding litigation on a favorable and reasonable basis."
Mark Robbins, co-partner with Stephen Norris in SCO's investment
transaction said, "We have a firm belief in SCO's technology
platform and its potential to be expanded especially outside of
the United States. SCO has a solid customer base of industry
leaders. This Plan provides the necessary direction and strategy
to begin moving in a positive direction."
A full-text copy of the Disclosure Statement is available for
free at:
http://ResearchArchives.com/t/s?28bf
http://ResearchArchives.com/t/s?28c0
A full-text copy of the Chapter 11 Plan of Reorganization is
available for free at:
http://ResearchArchives.com/t/s?28be
Headquartered in Lindon, Utah, The S.C.O. Group Inc. (Nasdaq:
SCOX) fka Caldera International Inc.-- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.
The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, the United
Kingdom, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
As reported in the Troubled Company Reporter on Feb. 12, 2008,
the Court further extended the Debtors' exclusive periods to
file a Chapter 11 plan until May 11, 2008; and solicit
acceptances of that plan until July 11, 2008.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2008, Tanner LC in Salt Lake City, Utah, expressed
substantial doubt about The SCO Group Inc.'s ability to continue
as a going concern after auditing the company's financial
statements for the year ended Oct. 31, 2007. The auditing firm
reported that the company is a debtor-in-possession under
Chapter 11 of the U.S. Bankruptcy Code, has experienced
significant and continuing net losses, and is faced with
substantial contingent liabilities as a result of certain
adverse legal rulings.
=============
B E R M U D A
=============
SCOTTISH RE: Amends Employment Terms of CEO and CFO
---------------------------------------------------
Scottish Re Group Limited's Board of Directors, as a result of
the recently disclosed decision by the Board to alter the
company’s strategic focus, and in recognition of the impact on
the company's growth prospects, has agreed to certain amendments
to the employment agreements of George Zippel and Terry
Eleftheriou, the company's Chief Executive Officer and Chief
Financial Officer, respectively.
George's term of employment has been shortened to end on
July 31, 2008 and Terry's term of employment has been extended
to March 31, 2010.
Jonathan Bloomer, Chairman of the Board of Directors commented,
“George joined Scottish Re in August 2007 to execute a global
growth strategy that, given our subprime exposure and prevailing
market conditions, is no longer considered viable. He has been
instrumental in working with the Board to identify and develop
new strategies for the company. The Board believes that the
actions required to affect those strategies should be materially
complete by the middle of this year. Accordingly, the Board and
George have agreed to shorten the length of his employment
agreement. The Board thanks George for the contributions and
commitment he has provided to the Company and is counting on
his leadership for the next several months as we execute on our
new strategic focus.”
George Zippel commented, “Scottish Re has been a challenging and
rewarding experience. I look forward to continuing to lead the
team through a successful transition to the new strategic
focus.”
The company also reported that the Board has formed a committee
to lead the search for a new CEO and has retained an
international executive search firm to assist it in this
process.
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2008, Standard & Poor's Ratings Services lowered its
counterparty credit rating on Scottish Re Group Ltd. to 'B' from
'B+'. At the same time, it lowered its counterparty credit and
financial strength ratings on Scottish Re's operating companies
to 'BB' from 'BB+' and also lowered the ratings on all these
companies' dependent unwrapped securitized deals by one notch.
In addition, S&P placed the ratings on all these companies on
CreditWatch with negative implications.
As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2008, Moody's Investors Service placed Scottish Re
Group Limited's Senior unsecured shelf of (P)Ba3; subordinate
shelf of (P)B1; junior subordinate shelf of (P)B1; preferred
stock of B2; and preferred stock shelf of (P)B2 ratings on
review for downgrade.
=============
B O L I V I A
=============
COEUR D'ALENE: M. Krebs Replaces J. Sabala as Sr. Vice Pres.-CFO
----------------------------------------------------------------
Coeur d'Alene Mines Corporation has appointed Mitchell J. Krebs,
presently Senior Vice President - Corporate Development, to the
position of Senior Vice President - Chief Financial Officer.
Mr. Krebs will replace James A. Sabala, who will resign
effective March 21, 2008, to pursue other opportunities.
The company also announced that Coeur’s Chief Accounting
Officer, Thomas T. Angelos, has been promoted to Senior Vice
President and Chief Accounting Officer and Ken Koski has been
appointed to the position of Controller.
“I want to thank Jim for his hard work and significant
contributions to Coeur’s success,” said Dennis E. Wheeler,
Coeur’s Chairman, President, and Chief Executive Officer. “We
wish him all the best in his future endeavors.”
Mr. Wheeler continued, “Mitchell is a natural choice to become
Coeur’s Chief Financial Officer as he knows the Company, its
people, the industry, its financial reporting practices, and the
financial markets extremely well. He brings a unique skill set
and perspective to his new role, which will serve the Company
and its shareholders well. Together with the promotions of Tom
Angelos and Ken Koski, Coeur’s finance and accounting group is
well-prepared to support the company’s strategic objectives over
the coming years.”
Mr. Krebs has led Coeur’s Corporate Development Group for the
past five years. He first joined Coeur in 1995 and has been
involved in numerous financings and corporate transactions at
Coeur, including the recently completed acquisitions of Bolnisi
Gold and Palmarejo Silver & Gold. Mr. Krebs has a BS in
Economics from the Wharton School of Finance and an MBA from
Harvard University.
About Coeur d'Alene
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's Ratings Services B-
rating.
===========
B R A Z I L
===========
ABITIBIBOWATER INC: Incurs US$250MM Net Loss in Fourth Quarter
--------------------------------------------------------------
AbitibiBowater Inc. reported a net loss for the fourth quarter
2007 of US$250 million on sales of US$1,491 million. These
results compare with a net income of US$107 million on sales of
US$861 million for the fourth quarter of 2006.
For the full year 2007, the company reported a net loss of
US$490 million. This compares with a net loss of US$138 million
for 2006. Sales in 2007 totaled US$3,876 million, up 11% from
2006 sales of US$3,530 million.
The company's 2007 fourth quarter and year-end results reflect
the full quarter and year-end results for Bowater Incorporated
and the results for Abitibi-Consolidated Inc. for the period
after its combination with Bowater on Oct. 29, 2007. The
company's fourth quarter and year-end results for 2006 include
only Bowater results.
"While markets for wood products remain challenging, market
conditions for pulp and paper products are improving
significantly and we are pleased with our ongoing progress to
make our company a more globally competitive organization," John
W. Weaver, executive chairman, stated. "Our recently announced
agreement with Catalyst Paper, to sell our Snowflake, Arizona
newsprint mill for approximately $180 million, including
retained working capital, is another important milestone."
"We remain committed to our debt reduction target of US$1
billion over the next three years," Mr. Weaver said.
The company has been actively engaged in its Phase 2
comprehensive review of operations since the merger was
completed and expects that to disclose its decisions during the
second quarter of 2008. The company is focused on further cost
reductions and manufacturing platform improvements in both the
paper and wood products segments.
"Since our Phase 1 announcement, we have been working with our
employees, unions, governments and communities in an effort to
address the challenges that we face today," David J. Paterson,
President and chief executive officer, said. "We are operating
in a rapidly changing business environment and we will take the
necessary steps to position AbitibiBowater for the future."
"In order to remain a competitive, viable supplier and provide
our stakeholders with appropriate returns, we must significantly
improve the margins for our products," Mr. Paterson continued.
"Our recently announced price increases were a successful step."
As of Dec. 31, 2007, the company's listed total assets of
US$10.7 billion, total liabilities of US$8.8 billion resulting
to a total shareholders' equity of US$1.9 billion.
About AbitibiBowater
Headquartered in Montreal, Canada, AbitibiBowater Inc.
(NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a
result of the combination of Abitibi-Consolidated Inc. and
Bowater Incorporated. Pursuant to the transaction, Abitibi-
Consolidated Inc. and Bowater Incorporated became subsidiaries
of AbitibiBowater. The company produces a range of forest
products marketed in more than 80 countries around the world.
The company's customers include many publishers, commercial
printers, retailers, consumer products companies and building
supply outlets. AbitibiBowater is also a recycler of newspapers
and magazines. The company owns or operates 32 pulp and paper
mills and 35 wood products facilities in North America and
offshore. The company manages its business in five segments:
coated papers, specialty papers, newsprint, market pulp and
lumber. The company has operation in Brazil.
* * *
As reported in the Troubled company Reporter on Feb. 25, 2008,
Fitch Ratings downgraded AbitibiBowater Inc. and subsidiaries
as: Abitibi-Consolidated Inc.; IDR to 'CCC' from 'B-'; senior
unsecured debt to 'CCC/RR4 from 'B-/RR4'; secured revolver to
'CCC+/RR3' from 'B/RR3'. Bowater Incorporated; IDR to 'CCC'
from 'B-'; senior unsecured debt to 'CCC/RR4' from 'B-/RR4';
secured revolver to 'B/RR1' from 'BB-/RR1'. Bowater Canadian
Forest Products Inc.; IDR to 'CCC' from 'B-'; senior unsecured
debt to 'B-/RR2' from 'B+/RR2; secured revolver to 'B/RR1' from
'BB-/RR1'. All ratings have been placed on rating watch
negative.
ABITIBIBOWATER INC: Seeks to Finance Debts Maturing in 2nd Qtr.
---------------------------------------------------------------
AbitibiBowater Inc. amended Bowater Incorporated's credit
facilities.
The amendments permit an intercompany restructuring of the
ownership of the company's Catawba, South Carolina mill to
permit additional debt financing by Bowater or the company.
Among other liquidity needs that must be addressed, the
company's Abitibi-Consolidated subsidiary has second quarter
debt maturities of approximately US$200 million due April 1 and
US$150 million due June 20 that have not yet been refinanced.
The company confirmed that it has been reviewing multiple
financing alternatives to develop additional liquidity for the
remainder of 2008 and 2009.
The company cautioned that continued negative conditions in the
credit and capital markets, as well as the difficult industry
operating environment, are challenging its ability to obtain
financing and that there can be no assurance that either the
company, Abitibi-Consolidated or Bowater could obtain financing
on terms satisfactory to the company.
On Feb. 25, 2008, Bowater and certain of Bowater's direct and
indirect subsidiaries entered into amendments to Bowater's U.S.
and Canadian credit agreements:
-- The amendment to the U.S. credit agreement was entered
into with Wachovia Bank, National Association, as
administrative agent for the various lenders under that
credit agreement; and
-- The amendment to the Canadian credit agreement was entered
into among Bowater, Bowater Canadian Forest Products Inc.,
certain lender parties and The Bank of Nova Scotia, as
administrative agent for the lenders.
The amendments:
(i) contemplate the transfer by Bowater of the Catawba, South
Carolina mill assets and related operations to a new
wholly owned subsidiary of Bowater;
(ii) permit the transfer of the equity of the Catawba
subsidiary to AbitibiBowater;
(iii) make the Catawba subsidiary an additional borrower under
the U.S. credit agreement and a guarantor of the Canadian
Obligations;
(iv) permit the Catawba subsidiary, AbitibiBowater, Bowater or
certain of their subsidiaries to incur up to an aggregate
of US$700 million of additional secured indebtedness,
subject to certain conditions;
(v) for 2008, increase the applicable margin and increase the
first lien leverage ratio requirement and decrease the
interest coverage ratio requirement; and
(vi) waive any and all defaults that may have occurred as a
result of a failure by Bowater and its subsidiaries to
comply with certain financial covenants.
The amendments contemplate that the Catawba subsidiary will
grant a mortgage on the Catawba mill assets on or before
March 31, 2008, as security for US$250 million of the
indebtedness outstanding under the U.S. credit agreement and for
US$50 million as security for the Canadian credit agreement.
A copy of the Third Amendment and Waiver, dated as of
Feb. 25, 2008, to the Credit Agreement dated as of May 31, 2006,
is available at no charge at
http://ResearchArchives.com/t/s?28c3
A copy of the Third Amendment and Waiver, dated as of
Feb. 25, 2008, to the Credit Agreement dated as of May 31, 2006,
is available at no charge at
http://ResearchArchives.com/t/s?28c4
About AbitibiBowater
Headquartered in Montreal, Canada, AbitibiBowater Inc.
(NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a
result of the combination of Abitibi-Consolidated Inc. and
Bowater Incorporated. Pursuant to the transaction, Abitibi-
Consolidated Inc. and Bowater Incorporated became subsidiaries
of AbitibiBowater. The company produces a range of forest
products marketed in more than 80 countries around the world.
The company's customers include many publishers, commercial
printers, retailers, consumer products companies and building
supply outlets. AbitibiBowater is also a recycler of newspapers
and magazines. The company owns or operates 32 pulp and paper
mills and 35 wood products facilities in North America and
offshore. The company manages its business in five segments:
coated papers, specialty paperBs, newsprint, market pulp and
lumber. The company has operation in Brazil.
* * *
As reported in the Troubled company Reporter on Feb. 25, 2008,
Fitch Ratings downgraded AbitibiBowater Inc. and subsidiaries
as: Abitibi-Consolidated Inc.; IDR to 'CCC' from 'B-'; senior
unsecured debt to 'CCC/RR4 from 'B-/RR4'; secured revolver to
'CCC+/RR3' from 'B/RR3'. Bowater Incorporated; IDR to 'CCC'
from 'B-'; senior unsecured debt to 'CCC/RR4' from 'B-/RR4';
secured revolver to 'B/RR1' from 'BB-/RR1'. Bowater Canadian
Forest Products Inc.; IDR to 'CCC' from 'B-'; senior unsecured
debt to 'B-/RR2' from 'B+/RR2; secured revolver to 'B/RR1' from
'BB-/RR1'. All ratings have been placed on rating watch
negative.
BANCO BRADESCO: Shareholders to Vote on Further Capital Increase
----------------------------------------------------------------
Banco Bradesco S.A.'s shareholders will vote on the BRL4 billion
proposed capital increase this week.
Business News Americas reports that Banco Bradesco's
shareholders agreed to a BRL1.2 billion capital increase in
February 2008 through the issue of 27.9 million shares at BRL43
apiece. The board proposed a BRL2.8 billion capital increase in
December 2007.
Banco Bradesco invited shareholders to its yearly stockholder
meeting on March 24, BNamericas states.
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 assigned a Ba2 foreign currency
deposit rating to Banco Bradesco.
BANCO DO BRASIL: May Purchase Financial Institutions
----------------------------------------------------
Banco do Brasil Chief Executive Officer Antonio Francisco de
Lima Neto said at a meeting of investment analyst association
Apimec in Sao Paulo that the bank could purchase public or
privately held financial institutions to boost its presence in
vehicle financing and housing loans, Business News Americas
reports.
BNamericas relates that Banco do Brasil is negotiating to
acquire federal district state bank Banco de Brasilia, while it
expects to complete the acquisition of former Santa Catarina
state bank Besc by the end of July.
According to BNamericas, Banco do Brasil incorporated former
Piaui state bank BEP.
Money for more acquisitions could be taken from the initial
public offering of credit card transaction processing firm
Visanet, which could bring in up to BRL30 billion before the end
of the first half of this year, BNamericas says, citing Banco do
Brasil Chief Financial Officer Aldo Luiz Mendes.
Banco do Brasil has a 32% stake in Visanet, according to the
report.
Mr. Mendes told BNamericas shareholders wanted Visanet to reach
a free float of 25% through the initial public offering.
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: Previ Reports BRL18 Billion Record Surplus
-----------------------------------------------------------
Banco do Brasil's employees pension fund Previ had a record
surplus of BRL18 billion and a 37.1% return on investments last
year, reports say.
According to Business News Americas, Previ's equity investments
provided:
-- a return of 50.9% in 2007,
-- fixed income investments 14.8%, and
-- real estate investments 16.6%.
BNamericas notes that Previ's assets under management increased
30.2% to BRL138 billion in 2007, compared to 2006.
Even though Previ transferred about BRL5.63 billion in shares in
2007, it still exceeds the legal limit for equity investments,
BNamericas relates.
Under Brazilian law, pension funds can invest up to 50% in
stocks. Previ is given until the end of 2010 to meet the
target, BNamericas says.
Previ Chief Executive Officer Sergio Rosa told reporters that
the fund will sell another BRL5 billion in shares this year.
Previ sold some 17.2 million Banco do Brasil shares in a
secondary offering in February that moved BRL3.44 billion and
raised the bank's free float to 21.7% from 14.8%, BNamericas
adds.
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and more than 7,000
points of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Nov. 6, 2007, Moody's Investors Service assigned a Ba2
foreign currency deposit rating to Banco do Brasil. On
Aug. 23, 2007, Moody's assigned a Ba2 long-term bank deposit
rating on the bank with a stable outlook.
In May 2007, Standard & Poor's Ratings Services raised its long-
term foreign currency counterparty credit rating on Brazilian
government-related entity Banco do Brasil to 'BB+' from 'BB',
after Brazil's foreign currency sovereign credit rating was
upgraded to BB+.
BANCO NACIONAL: Infrastructure Up 62% to BRL25.8 Billion
--------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social, in the
past 12 months ended in January, has disbursed BRL25.80 billion
for infrastructure, a 62% increase in comparison to the previous
period. For the first time in BNDES’ recent history the
disbursements for the infrastructure sector surpasses the amount
destined to industry.
The result already reflected the impact of financings granted to
the PAC – Growth Acceleration Program projects, which received
BRL5 billion during the analyzed period.
The support to the sector represented 39.9% of the resources
disbursed by the Bank in the past 12 months – BRL64.6 billion, a
percentage that reveals how much more important the
infrastructure segment has become under the prism of BNDES’
performance. In 2003, for example, infrastructure was equal to
29% of the Bank’s releases, going up to 36% in 2004, but
retreating back to 31% in 2006.
“The tendency is that the disbursements would continue firm
considering the projects already found within the Bank’s
portfolio and considering the sector’s perspective”, Wagner
Bittencourt said, director of the Infrastructure Area.
The infrastructure’s performance mostly reflected the 102%
growth of the releases for investments on electric energy –
BRL6.5 billion. The amount was equivalent to 10% of the Bank’s
disbursements in the past 12 months, a 7% superior participation
recorded in the same previous period (February 2006/January
2007).
One of the relevant aspects of BNDES’ result up to January 2008
was the signalization of the infrastructure sector’s continuing
growth. The approvals for the sector – BRL43.3 billion, grew
74% in the last 12 months and were responsible for 46% of the
total amount approved during the period – BRL95.5 billion,
leading the sector demand for the Bank’s resources.
From that total, electric energy participated with
BRL12.5 billion in approved projects between February 2007 and
January 2008, equivalent to a 206% increase in relation to the
same previous period. Such investments as for example, the
one in the hydroelectric plants of Estreito, Foz do Chapecó and
Simplicio will enable an increase of the installed capacity in
the country of 2.9 thousand megawatts.
The land transportation segment also bore relevant weight in the
infrastructure sector’s final result. Between February 2007 and
January 2008, the Bank released BRL11.8 billion to the sector
and approved BRL15 billion, both representing a 67% increase in
comparison to the same previous period.
Industry – In the past 12 months up to January of this year, the
disbursements for the sector summed up BRL25.77 billion, a 12%
drop in relation to the same previous period. The approvals,
which totaled BRL37.6 billion, were reduced by 9%.
The industrial area’s performance continued to be affected by
the reduction of financings to exports, which in turn,
influenced the final result. The industry’s outcome becomes
positive if one excludes the foreign trade operations. Under
that criterion, the disbursements grew 15.8% (BRL18.8 billion),
and approvals increased 29.6% - summing up BRL30.5 billion.
In spite of the improvement in the quality of the credits
granted to the industrial sector, the relative participation of
industry in total disbursements endured reduction between 2003
and 2007. In 2003, it was responsible for 48%. In the 12 months
ended in January, it dropped to 39.8%, the same level obtained
in December 2007. The amount of approvals was responsible for
39% of the total.
Consolidated outcome – BNDES’ disbursements between February
2007 and January 2008 grew 19% (BRL64.6 billion) and approvals
grew 22% (BRL95.5 billion) keeping the gap in relation to the
releases. The projects framed (BRL112.0 billion) and the
consultations (BRL131.2 billion) presented expansion of 12%
and 21%, respectively.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services. The ratings were assigned in August and
May 2007.
BANCO NACIONAL: Okays BRL355 Million Loan to Coelce
---------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
approved a BRL355 million loan to power distributor Companhia
Energetica do Ceara aka Coelce.
Banco Nacional told BNamericas that Coelce will use the loan for
its 2007-09 investment plan.
Coelce will invest BRL653 million in modernizing and improving
its power distribution systems in Ceara. The company will also
construct and update substations, implement information
technology systems, and boost its commercial and management
infrastructure, BNamericas states.
About Coelce
Companhia Energetica do Ceara aka Coelce is a Brazil-based
company engaged in operating a public commission for the
distribution of electric energy. The company's principal
activities are the generation, transmission, sale and
distribution of electric energy for public, industrial and
private consumption. Coelce distributes energy across 184
municipalities in the states of Ceara, in Brazil spanning
146,825 square kilometers and serves 2.3 million clients.
Endesa Group is the company's controlling shareholder through
Investluz.
About Banco Nacional
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services. The ratings were assigned in August and
May 2007.
DELPHI CORP: Court Extends Deadline to Remove Civil Actions
-----------------------------------------------------------
The Hon. Robert Drain of the U.S. Bankruptcy Court for the
Southern District of New York extended Delphi Corp. and its
debtor-affiliates' deadline to remove pending judicial and
administrative proceedings through the earlier of:
(a) 30 days after the effective date of the Debtors' Joint
Plan of Reorganization; and
(b) 30 days after the Court enters an order terminating the
automatic stay with respect an action.
As reported in the Troubled Company Reporter on Feb. 11, 2008,
John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, related, the Debtors are parties
to more than 200 judicial and administrative actions pending in
various courts or administrative agencies throughout the United
States.
The Debtors' deadline to remove Actions in accordance with
Section 1452 of the Judiciary and Judicial Procedure Code and
Rule 9027 of the Federal Rules of Bankruptcy Procedure expired
on Feb. 29, 2008.
The Debtors expect to emerge from Chapter 11 during the first
quarter of the year.
An extension, Mr. Butler asserted, was necessary in the event
that the Debtors' bankruptcy emergence date is delayed beyond
Feb. 29, 2008. An extension, he added, will afford the Debtors
an opportunity to make fully informed and prudent decisions
concerning the possible removal of the claims and causes of
action in the Actions, thus protecting the Debtors' valuable
right to adjudicate the Actions economically if current or
future circumstances warrant their removal.
The Debtors' request will not prejudice any party whose
proceeding is removed from seeking remand under Section 1452(b)
of the Bankruptcy Code, Mr. Butler pointed out.
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, Issue No. 115; 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: Court Extends Lease Decision Deadline to March 31
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
further extended the time within which Delphi Corp. and its
debtor-affiliates may assume or reject unexpired leases of
nonresidential real property through and including the earlier
of:
(a) the Effective Date of the Debtors' confirmed First
Amended Joint Plan of Reorganization; and
(b) May 31, 2008.
If the Debtors file a subsequent motion to extend the Lease
Decision Deadline before the expiration of the applicable
deadline for a particular lease, and that motion is set for
hearing on the next omnibus hearing date that is at least 20
days away or is filed in accordance with Rule 6006-1(c) of the
Local Bankruptcy Rules for the U.S. Bankruptcy Court for the
Southern District of New York, the Debtors' deadline to assume
or reject the underlying lease is automatically extended until
the later of:
-- the date set forth in any subsequent Court order;
-- three business days after the Court enters an order ruling
on the Subsequent Motion; and
-- May 31, 2008.
As reported in the Troubled Company Reporter on Feb. 11, 2008,
the Debtors are lessors or lessees with respect to roughly 80
unexpired leases of nonresidential real property, John Wm.
Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP,
in Chicago, Illinois, relates. Certain of the Real Property
Leases, he noted, are among the Debtors' primary assets and are
vital to their business.
The First Amended Plan provides for the assumption of all of the
Real Property Leases on the Plan Effective Date. The Debtors'
Lease Decision Deadline expired Feb. 29, 2008.
The Proposed Lease Decision Deadline will be subject to the
terms of the Plan and Plan Confirmation Order, Mr. Butler
assured the Court. The Proposed Deadline, he added, coincides
with the Debtors' current deadline to solicit acceptances of a
reorganization plan.
The Debtors have remained and fully intend to remain current
with respect to all outstanding postpetition rental obligations
under the Real Property Leases, Mr. Butler continues. The non-
debtor parties to the Real Property Leases will not be
prejudiced by the proposed extension because the Debtors are
making payments under the Real Property Leases as they come due,
he said.
If the Lease Decision Deadline is not extended, the Debtors may
face uncertainty with respect to their ability to assume or
reject the Real Property Leases if the Plan does not become
effective by the current Feb. 29, 2008 Lease Decision Deadline,
Mr. Butler maintained.
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, Issue No. 115; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2008, Moody's Investors Service assigned ratings to
Delphi Corporation for the company's financing for emergence
from Chapter 11 bankruptcy protection: Corporate Family Rating
of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and
US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a
Speculative Grade Liquidity rating of SGL-2 representing good
liquidity was assigned. The outlook is stable.
As reported in the Troubled Company Reporter on Jan. 11, 2008,
Standard & Poor's Ratings Services expects to assign its 'B'
corporate credit rating to Troy, Michigan-based automotive
supplier Delphi Corp. upon the company's emergence from Chapter
11 bankruptcy protection, which may occur by the end of the
first quarter of 2008. S&P expects the outlook to be negative.
In addition, Standard & Poor's expects to assign these
issue-level ratings: a 'B+' issue rating (one notch above the
corporate credit rating), and '2' recovery rating to the
company's proposed US$3.7 billion senior secured first-lien term
loan; and a 'B-' issue rating (one notch below the corporate
creditrating), and '5' recovery rating to the company's proposed
US$825 million senior secured second-lien term loan.
GERDAU SA: Board Okays Shares Issuance Up to BRL2.8 Million
-----------------------------------------------------------
Gerdau S.A.'s Board of Directors has approved a primary issuance
of common and preferred shares in an amount of up to
BRL2.8 billion. Application were made on March 4, 2008 for the
approval of the offering with the Brazilian Securities
Commission, Comissao de Valores Mobiliarios.
The company intended to offer its preferred shares, and American
Depositary Shares representing its preferred shares, in the
United States pursuant to a registration statement that will be
filed with the U.S. Securities and Exchange Commission.
The company also intends to offer its common shares in the
United States pursuant to Rule 144A under the Securities Act of
1933, as amended and outside the United States pursuant to
Regulation S under the Securities Act. The common shares will
not be registered under the Securities Act, and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
The terms of the offerings will be established at the time of
sale. In each case, existing shareholders will have
preferential rights to subscribe in the offering, on terms to be
established. The preferential rights of non-Brazilian
shareholders to subscribe for common shares will be extended
only to shareholders that are qualified institutional buyers.
Headquartered in Porto Alegre, Brazil, Gerdau SA
-- http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s
Ba1 corporate family rating and stable outlook.
GERDAU SA: To Carry Out Public Primary Share Offering
-----------------------------------------------------
Gerdau SA will conduct a public primary offering of ordinary and
preferred shares of up to BRL2.80 billion.
Gerdau's controller, holding company Metalurgica Gerdau S.A.,
will also carry out a public primary offering of ordinary and
preferred stocks of up to BRL1.20 billion.
Shareholders of the two companies will have a priority in
subscribing to shares tied to the offerings.
Business News Americas relates that the offerings are awaiting
the Brazilian securities regulator Comissao de Valores
Mobiliarios' authorization. BNamericas relates that the
offerings also depend on conditions of capital markets in and
outside Brazil.
About Metalurgica Gerdau
Metalurgica Gerdau S.A. is a Brazil-based holding company for
Gerdau Group, a group of companies principally dedicated to the
production of steel products. The Company holds interests in
steel production mills in Brazil, Argentina, Chile, Colombia,
Canada, Spain, the United States and Uruguay. Gerdau Group has
an installed capacity of 19.2 million metric tons of steel per
year. In 2006 Gerdau acquired 40% of Sidenor, a steel producer
in Spain. Through Gerdau S.A., Metalurgica Gerdau holds
indirect interests in 14 other companies worldwide in addition
to an interest in Banco Gerdau (99%). Its subsidiaries,
activities predominantly involve smelting iron to producing
steel, production of specialty steels and recycling of steel.
The Gerdau Group markets its products to the automobile sector,
for the production of domestic appliances and consumer goods and
to the construction industry for the production of reinforced
concrete. Metalurgica Gerdau also holds interests in the
agricultural sector.
About Gerdau
Headquartered in Porto Alegre, Brazil, Gerdau SA
-- http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s
Ba1 corporate family rating and stable outlook.
GOL LINHAS: Reports Passenger Statistics for February 2008
----------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of
Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas
Aereas S.A., released preliminary passenger statistics for the
month of February 2008. Consolidated domestic passenger traffic
(RPK) for February 2008, increased 17% and capacity (ASK)
increased 38% year-over-year. Domestic consolidated load factor
for the month was 62% and international consolidated load factor
was 55%. The company's total system load factor for the month
of February was 60%.
GOL Transportes' domestic passenger traffic (RPK) for February
2008, was 1,428mm and capacity (ASK) was 2,241mm. International
passenger traffic (RPK) was 202mm and capacity (ASK) was 259mm.
VRG Linhas' domestic passenger traffic (RPK) for February 2008
was 136mm and capacity (ASK) was 292mm. International passenger
traffic (RPK) was 357mm and capacity (ASK) was 762mm.
Consolidated Operating Data Feb. Feb. Change
2008 2007 (%)
Total System
ASK (mm) 3,554.2 2,165.1 64.2%
RPK (mm) 2,122.6 1,565.2 35.6%
Load Facto 59.7% 72.3% -12.6 p.p.
Domestic Market
ASK (mm) 2,533.3 1,837.0 37.9%
RPK (mm) 1,564.3 1,336.6 17.0%
Load Facto 61.7% 72.8% -11.1 p.p.
International Market
ASK (mm) 1,020.9 328.1 211.2%
RPK (mm) 558.3 228.6 144.2%
Load Facto 54.7% 69.7% -15.0 p.p.
Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL
Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) --
http://www.voegol.com.br-- through its subsidiary, GOL
Transportes Aereos S.A., provides airline services in Brazil,
Argentina, Bolivia, Uruguay, and Paraguay. The company's
services include passenger, cargo, and charter services. As of
March 20, 2006, Gol Linhas provided 440 daily flights to 49
destinations and operated a fleet of 45 Boeing 737 aircraft.
The company was founded in 2001.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 25, 2007, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Gol Linhas Aereas
Inteligentes S.A. Fitch also affirmed the outstanding US$200
million perpetual bonds and US$200 million of senior notes due
2017 at 'BB+' as well as the company's 'AA-' (bra) national
scale rating. Fitch said the rating outlook is stable.
JAPAN AIRLINES: Announces Changes in Board Membership
-----------------------------------------------------
The Japan Airlines Group has announced changes to the boards of
directors and executive officers of Japan Airlines Corporation
and Japan Airlines International, the Group’s main operating
airline for FY2008, the fiscal year ending March 31, 2009.
The JAL Group is currently making consolidated efforts to
restructure its business according to its Medium Term Revival
Plan. In FY2008, the airline group will continue pushing
forward with the various measures that are already underway and
strive to achieve the targets set. In order to do this, JAL has
decided to reappoint the executive directors who were appointed
last fiscal year, and keep changes down to a minimum.
The changes announced today are effective April 1, although some
of them are subject to the approval of the annual general
meeting of shareholders in late June when proposed new board
members announced can be formally elected. New executive
officers do not have board-voting rights and their appointments
do not require shareholder approval.
Mr. Haruka Nishimatsu remains as President and CEO of the JAL
Corporation and JAL International. As already announced on
Feb. 8, 2008, Toshiyuki Shinmachi will retire on March 31, 2008,
from his position as board chairman of both companies. He will
be joined by Mr. Takao Fukuchi who will retire from his post as
Senior Vice President, Cargo and Mail also at the end of March.
The post of JAL chairman will remain vacant, and Mr. Fukuchi
will be replaced by Mr Kunio Hirata. Promoted to the position
of Senior Vice President, Finance, Accounting, Purchasing will
be Mr. Yoshimasa Kanayama. Mr. Hirata and Mr. Kanayama will
remain in their current positions of Executive Officer from
April 1, up until their new titles are approved at the annual
general meeting of shareholders.
Promotions within the ranks of the current board of members will
result in President Nishimatsu being supported by two Vice
Presidents, one Senior Managing Director and three Managing
Directors.
A slight change to the power of Senior Executive Officer will
enable the Group to strengthen its corporate governance.
A “Corporate Climate Reform Committee” will be established
chaired by the President with an executive director appointed in
charge. The committee will carry out activities that will cut
across departments and job types helping to firmly establish
within the Group a corporate culture founded on the pillars of
safety and customer satisfaction.
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
As reported on Feb. 9, 2007, that Standard & Poor's Ratings
Services affirmed its 'B+' long-term corporate credit and issue
ratings on Japan Airlines Corp. (B+/Negative/--) following the
company's announcement of its new medium-term management plan.
S&P said the outlook on the long-term corporate credit rating is
negative.
As reported on Oct. 10, 2006, that Moody's Investors Service
affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd and Japan Airlines
Domestic Co., Ltd. The rating affirmation is in response to the
planned restructuring of the Japan Airlines Corporation group on
Oct. 1, 2006 with the completion of the merger of JAL's two
operating subsidiaries, JAL International a