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 Tuesday, March 11, 2008, Vol. 9, No. 50 Headlines A R G E N T I N A GREID SA: Trustee Will Verify Proofs of Claim Until March 25 IDS SA: Trustee to File Individual Reports in Court on May 29 SUPERCLICK INC: Jan. 31 Balance Sheet Upside-Down by US$1.3 Mil. SUPER NATURAL: Proofs of Claim Verification Deadline Is April 17 TELECOM ARGENTINA: Earns ARS884 Million in 2007 TERRAMED SRL: Trustee to File Individual Reports on June 12 B A H A M A S ISLE OF CAPRI: S&P Puts 'BB-' Rating on CreditWatch Negative B E L I Z E CONTINENTAL AIRLINES: Pilots Rally on March 12 to Support Talks B E R M U D A SCOTTISH RE: Will File 2007 Financial Statements Late B R A Z I L BANCO BRADESCO: Completes US$500MM Future Flow Securitization BANCO BRADESCO: Agora Corretora Will Become BBI's Unit BANCO ITAU: Plans to Offer Private Banking Services in Mexico COMPANHIA ENERGETICA: To Conduct Hydro & Wind Power Studies ENERGIAS DO BRASIL: To Conduct Feasibility Studies With Cemig FORD MOTOR: Luxury Brands Buyer Says Won't Flip Jaguar FORD MOTOR: To Give Out Performance Bonuses to All Employees GENERAL MOTORS: Shuts Wentzville Plant Over Axle Workers' Strike GENERAL MOTORS: 18 Plants to Lay Off Workers Due to Axle Strike GENERAL MOTORS: Laid Off Union Workers Will Be Paid Under Pacts GENERAL MOTORS: Restores CEO's Pay to 2003 Level of US$2.2 Mil. OSI RESTAURANT: Weak Performance Cues Moody's to Hold B2 Rating PROPEX INC: Committee Wants FTI Consulting as Financial Advisor C A Y M A N I S L A N D S 336275 LIMITED: To Hold Final Shareholders' Meeting on March 18 BEAR STEARNS: Whicker & Breighton Continue as Joint Liquidators ESPRIT GENERAL: Sets Final Shareholders' Meeting for March 18 REDWOOD CAPITAL VII: Final Shareholders' Meeting Is on March 18 REDWOOD CAPITAL VIII: To Hold Shareholders' Meeting on March 18 SCR MARKET: Will Hold Final Shareholders' Meeting on March 18 C H I L E DIRECTV GROUP: Will Launch High Definition TV in Latin America C O L O M B I A BANCOLOMBIA: Unit Earns COP23.3 Billion in 2007 C O S T A R I C A CHARLES JOURDAN: Court Approves EUR2.5 Million Sale to Finzurich SIRVA INC: Triple Net Seeks Appointment of Class 5 Committee SIRVA INC: Asks Authority from Court to Sell UK & Ireland Units C U B A SHERRITT INT'L: Will Drill 12 Wells in Cuba This Year SHERRITT IN'L: Will Expand Boca de Jaruco Plant in Cuba D O M I N I C A N R E P U B L I C INVACARE CORP: Names Robert K. Gudbranson as CFO M E X I C O AMERICAN AXLE: Strike Cues GM to Close Missouri Plant CASA DE CAMBIO: Case Summary & 20 Largest Unsecured Creditors CLEAR CHANNEL: Extends Notes Tender Offer to March 18 DURA AUTOMOTIVE: Files Revised Plan of Reorganization DURA AUTOMOTIVE: Wants to Hire SRR as Valuation Consultant FEDERAL-MOGUL: Inks New Stock Option Pact With CEO Jose Alapont GRUPO GIGANTE: Moody's Withdraws Rating at Company's Request KANSAS CITY: Realigns Transportation Divisions & Leadership Team MOVIE GALLERY: Court Okays US$4.7 Mil. Employee Incentive Plan MOVIE GALLERY: Committee Supports Second Amended Chapter 11 Plan MOVIE GALLERY: Judge Tice Approves Phase 2 Sale Procedures SHARPER IMAGE: Landlords Object to US$60M DIP Financing Motion SHARPER IMAGE: Wants to Employ Conway Del Genio as Managers SHARPER IMAGE: Wants to Employ Weil Gotshal as Lead Counsel SHARPER IMAGE: Wants to Employ Womble Carlyle as Co-Counsel SHARPER IMAGE: Director Steven A. Lightman Resigns USG CORP: Completes Payment to Asbestos Personal Injury Trust USG CORP: Pays US$40 Mln in Property Damage Settlements in 2007 * Fitch Publishes 2008 Mexican RMBS Performance & Outlook Report P U E R T O R I C O AEROMED SERVICES: Files Schedules of Assets and Liabilities R&G FINANCIAL: Gets Regulatory Approval to Pay March Dividends UNIVISION COMMS: Sells Recording and Publishing Business to UMG V E N E Z U E L A CA LA ELECTRICIDAD: Unit Launches Purchase Offer of 10.25% Notes PETROLEOS DE VENEZUELA: Unit Hikes Crude Oil Production by 17.6% X X X X X X * Large Companies with Insolvent Balance Sheet - - - - - ================= A R G E N T I N A ================= GREID SA: Trustee Will Verify Proofs of Claim Until March 25 ------------------------------------------------------------ Victor Hugo Sanchez, the court-appointed trustee for Greid SA's reorganization proceeding, will be verifying creditors' proofs of claim until March 25, 2008. Mr. Sanchez will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Pergamino, 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 Greid SA and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Greid SA's accounting and banking records will be submitted in court. Infobae didn't state the submission deadlines of the reports. The trustee can be reached at: Victor Hugo Sanchez 25 de Mayo 663, Pergamino Buenos Aires, Argentina IDS SA: Trustee to File Individual Reports in Court on May 29 ------------------------------------------------------------- Estudio Israelson y Kohan, the court-appointed trustee for IDS SA's reorganization proceeding, will present validated claims as individual reports before the National Commercial Court of First Instance No. 25 in Buenos Aires on May 29, 2008. Estudio Israelson will be verifying creditors' proofs of claim until April 16, 2008. The trustee will also submit in court a general report containing an audit of IDS' accounting and banking records on July 18, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 4, 2009. The debtor can be reached at: IDS SA Cervino 3707 Buenos Aires, Argentina The trustee can be reached at: Estudio Israelson y Kohan Lavalle 1672 Buenos Aires, Argentina SUPERCLICK INC: Jan. 31 Balance Sheet Upside-Down by US$1.3 Mil. ---------------------------------------------------------------- Superclick Inc.'s consolidated financial statements at Jan. 31, 2008, showed US$1,926,284 in total assets and US$3,253,879 in total liabilities, resulting in a US$1,327,595 total stockholders' deficit. At Jan. 31, 2008, the company's consolidated balance sheet also showed strained liquidity with US$1,627,196 in total current assets available to pay US$3,240,739 in total current liabilities. The company reported net income of US$178,348 on net revenue of US$1,447,855 for the first quarter ended Jan. 31, 2008, compared with a net loss of US$61,471 on net revenue of US$761,635 in the same period ended Jan. 31, 2007. Net sales increased US$493,832 or 207.7%, while services revenue increased US$192,388 or 36.7% due to a greater number of rooms under support. Income from operations for the three months ended Jan. 31, 2008, was US$208,776 or 14.4% of net revenue, compared to US$12,416 or 1.6% of net revenue, respectively. Interest expense for the three months ended Jan. 31, 2008, and 2007, was US$47,880 and US$82,637, respectively. Going Concern Disclaimer Bedinger & Company in Concord, Calif., expressed substantial doubt about Superclick Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Oct. 31, 2007. The auditing firm pointed to the company's accumulated capital deficit and significant debt. About Superclick Inc. Headquartered in Montreal, Quebec, Superclick Inc., (OTC BB: SPCK.OB) -- http://www.superclick.com/ -- through its wholly owned, Montreal-based subsidiary Superclick Networks Inc., develops, manufactures, markets and supports the Superclick Internet Management System, Monitoring and Management Application and Media Distribution System in worldwide hospitality, conference center and event, multi-tenant unit and university markets. Current clients include MTU residences and Candlewood Suites, Crowne Plaza, Fairmont Hotels, Four Points by Sheraton, InterContinental Hotels Group PLC, Hilton, Holiday Inn, Holiday Inn Express, Hampton Inn, Marriott, Novotel, Radisson, Sheraton, Westin and Wyndham hotels in Canada, the Caribbean and the United States. Superclick has operations in Argentina, Aruba, Australia, Bahamas, Barbados, Belgium, Bermuda, Brazil, Cayman Islands, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, El Salvador, France, Guatemala, Jamaica, Luxembourg, Martinique, Mauritius, Netherlands, Portugal, Puerto Rico, Sweden, Switzerland, Trinidad and Tobago, Turks and Caicos Islands, United States, Virgin Islands, British, Virgin Islands, and the United States. SUPER NATURAL: Proofs of Claim Verification Deadline Is April 17 ---------------------------------------------------------------- Anibal Diego Carrillo, the court-appointed trustee for Super Natural S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 17, 2008. Mr. Carrillo will present the validated claims in court as individual reports on May 29, 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 Super Natural 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 Super Natural's accounting and banking records will be submitted in court on July 10, 2008. Mr. Carrillo is also in charge of administering Super Natural's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Anibal Diego Carrillo Juncal 615 Buenos Aires, Argentina TELECOM ARGENTINA: Earns ARS884 Million in 2007 ----------------------------------------------- Telecom Argentina reported net income of ARS884 million for the fiscal year ended Dec. 31, 2007. Highlights: -- During 2007, the Telecom Argentina Group continued with an important expansion of its business. Consolidated Net Revenues grew 23% vs. the previous year 2006, amounting to ARS9,074 million. Major revenue increase came from the Cellular business with an expansion of 34% and from Internet businesses with a growth of 23%, both with respect to 2006. -- The cellular customer base reached 12.3 million (+28%), Broadband subscribers totaled 783,000 (+71%), while fixed lines in service increased by 3% to 4.2 million. -- Operating Profit before Depreciation and Amortization (OPBDA) reached ARS3,052 million (+34% vs. 2006), equivalent to 34% of Net Revenues, mainly fueled by cellular telephony growth. On the contrary, fixed telephony profitability continues weakening due to frozen tariffs and the inflation effect on the general cost structure. -- Net Income reached ARS884 million (2.6 more than 2006). This result includes ARS102 million from the sale of the subsidiary Publicom, occurred during the first months of 2007. -- The Telecom Group continued developing its strong investment plan, allocating ARS1,441 million during 2007 (+18% vs. 2006), where ARS799 million were allocated to fixed telephony (+35% vs. 2006). -- Net Financial Debt (before NPV effect) declined to ARS2,055 million (-ARS1,443 million vs. December 2006), primarily as a result of the cash flow generated by operations. The Net Financial Debt to OPBDA ratio declined from 1.5 as of the end of 2006, to 0.7 as of the end of 2007. -- On Feb. 19, 2008, Fitch Ratings upgraded the long-term debt rating of Telecom Argentina and Telecom Personal to B+ on the International Scale and to AA- on the Local Scale. During 2007, Consolidated Net Revenues increased 23% (+ARS1,702 million vs. 2006) to ARS9,074 million, mainly fueled by the cellular and Broadband businesses. Moreover, OPBDA increased by 34% (+ARS767 million) to ARS3,052 million (34% of Consolidated Net Revenues). This level of operating profits before depreciation and amortization is consequence of the substantial improvement in revenues, together with a better efficiency in costs. Consolidated Net Revenues The evolution in Consolidated Net Revenues by reportable segment was as: * Voice, Data Transmission & Internet: Revenues generated by these services amounted to ARS3,302 million, +8% vs. 2006. * Voice: Total Revenues for this service reached ARS2,601 million (+5% vs. 2006), despite there was no increase in regulated tariffs during the period. Monthly Charges and Supplementary Services increased by ARS30 million or 4%, to ARS746 million, as a consequence of higher number of lines in service (+3%), reaching 4.2 million of lines. Revenues generated by traffic (Local Measured Service, Domestic Long Distance and International Telephony) totaled ARS1,230 million, with an increase of 4% vs. 2006. Interconnection revenues amounted to ARS373 million (+17%), mainly fueled by traffic originating in cellular lines but transported by and terminated in fixed-line network. * Public Telephony & Other: Other revenues reached ARS252 million, barely exceeding ARS250 million in 2006. This amount was affected by an increase in billing & collecting commission and handset sales but partially compensated by a decrease in Public Telephony revenues. * Internet and Data Transmission: Total revenues coming from Internet services reached ARS528 million (+23% vs. 2006), due to the increase in the Broadband business, driven by commercial promotions, innovation of service portfolio and better network coverage. Moreover, Telecom's Broadband subscribers reached 783,000 as of December 2007(+71% vs. December 2006). Therefore, lines with this type of connections represent approximately 19% of Telecom's fixed-lines in service. Telecom confirms its market oriented approach, based on delivering higher velocity solutions, allowing its customers to access increasingly complex multimedia content as well as new value- added services. Since October, Telecom Argentina has improved its Broadband portfolio by automatically upgrading its Arnet 640 K customers to Arnet 1 Mb product. In addition, Telecom launched the Arnet 20 Mb product, the fastest connection available in the Argentine market. Revenues generated by Data transmission amounted to ARS173 million, (+11% vs. 2006). The company continues actively working with the corporate market, as well as with the Government sector, providing know-how and experience in telecommunication skills, supplying tailor-made and converging systems that integrate voice & data services -- for both fixed and cellular services -- together with multimedia solutions, all with the latest generation technology, leading the development of Virtual Private Net on Internet Protocol (VPN-IP) and Multi Protocol Label Switching (MPLS) networks. In connection with the Government sector, Telecom assists on e- government enterprises, such as solution for administrative management, 911, emergency services and cameras for security and medical treatment. Furthermore, regarding ICT, the company has endorsed the development of data networks. Therefore, Telecom Datacenter experienced an important growth, assuring high availability of Broadband connectivity, outsourcing and contingency solutions to its clients. * Cellular Telephony: The Cellular Telephony business achieved consolidated growth and increased its participation in the group's total revenues (64% vs. 59% in 2006). During 2007 this business generated revenues of ARS5,772 million (+34% vs. 2006). Total subscribers reached 12.3 million. Telecom Personal in Argentina As of Dec. 31, 2007, Personal's subscribers reached 10.7 million in Argentina (+2.2 million or +27% vs. 2006). Approximately 66% of the overall subscriber base was prepaid and 34% was postpaid. Total voice traffic increased by 31% vs. 2006 while outgoing SMS traffic confirming its higher usage increased from an average of 741 million messages in fourth quarter 2006 to an average of 1,016 million (+37%) in the fourth quarter of 2007. Because of this enhancement in traffic and the use of value added services, the Average Monthly Revenue per User (ARPU) increased by ARS42 in fourth quarter 2007, compared to ARS40 in fourth quarter 2006, positioning the company as one of the highest ARPUs in the market. Consequently, ARPU determined on an annual basis remained stable at ARS39 in 2007 compared to 2006. Revenues totaled ARS5,339 million (+ARS1,375 million or +35% vs. 2006). Service revenues increased by ARS1,328 million or 39% vs. 2006, while handset sales grew by 9% in the period. Reconfirming its strong focus on technological innovation, Personal continued the expansion of its Third Generation Network (3G/3.5G). In anticipation to the summer season, during fourth quarter 2007, the company introduced the latest services for 3G in main Argentine tourist cities and also in Uruguay, adding them to those existing coverage available in Buenos Aires, Cordoba and Rosario. In terms of products and services, further agreements to introduce exclusive mobile content to the Multimedia Portal WAP were executed. The development of innovative value-added services was also such enhanced, with Full Track Download (MP3) and instant messages, together with MSN. In addition, Personal continued with the expansion of its commercial network by opening new customer offices. As of December 2007, Personal counted with 45 commercial offices, gaining commercial capillarity and confirming its institutional presence throughout Argentina. Accordingly, customer satisfaction was enhanced, mainly by improving waiting time and increasing dedicated attention. Nucleo: Personal's controlled subsidiary that operates in Paraguay, generated revenues equivalent to ARS433 million (+22% vs. 2006). By the end of the year 2007, the subscriber base reached approximately 1.6 million, +40% vs. 2006. Prepaid and Postpaid customers represented 90% and 10%, respectively. Consolidated Operating Costs The Cost of Services Provided, Administrative Expenses and Selling Expenses totaled ARS7,438 million in 2007, which represents an increase of ARS960 million or +15% vs. 2006. Notwithstanding, as a percentage of net revenues, this evolution represents a decrease of 600 basis points (88% in 2006 vs. 82% in 2007) which means an improvement in efficiency and better use of costs. The breakdown of costs is: -- Salaries and Social Security Contributions: ARS960 million (+16%), affected by raising salaries and an increase of cellular business personnel (+283 in 2007 vs. 2006). -- Taxes: ARS660 million (+22%), in line with the general evolution of revenue volume. -- Agents and Prepaid Card Commissions: ARS704 million(+28%), due to the expansion of subscribers and the volume of the prepaid cards sold. -- Advertising: ARS306 million (+36%) to support commercial activity in cellular telephony and internet. -- Cost of Voice, Data & Cellular handsets: decreased to ARS893 million (-11%) as a consequence of fewer handset sales, taking into account the level of market penetration reached and due to a lower number of handsets upgrade from TDMA to GSM. -- TLRD and Roaming: ARS760 million (+31%) due to increased traffic among cellular operators. -- Depreciation of Fixed and Intangible Assets: ARS1,416 million, stable when compared to 2006. Fixed-line telephony totaled ARS828 million and Cellular telephony ARS588 million. Consolidated Financial and Holding Results Financial and Holding Results resulted in a loss of ARS441 million, as compared to the ARS484 million loss registered in 2006. Although net interest decreased by ARS145 million such reduction was compensated by the effect of foreign currency exchange (-ARS42 million) and holding losses on handsets inventories (ARS54 million). Net Financial Debt As of Dec. 31, 2007, Net financial debt (Loans before the effect of NPV valuation, minus cash, cash equivalents and other credits from derivative investments) amounted to ARS2,055 million, a reduction of ARS1,443 million as compared to December 2006. This decrease is due to the generation of operating cash flow and the result of Publicom sale that permitted debt cancellation for ARS1,290 million (ARS889 million in Telecom Argentina and ARS401 million in Telecom Personal). Consolidated Capital Expenditures A total amount of ARS1,441 million (including material by ARS139 million) was invested in fixed and intangibles assets. Such amount was allocated between the Voice, Data and Internet businesses (ARS799 million) and the cellular business (ARS642 million). Main Capex projects the Voice, Data and Internet Businesses related to the expansion of Broadband services and the upgrade of the network for services of a new generation, while in the cellular business, improvement of the network, and the launch of new and innovative value-added services, were areas of focus. Commercial Initiatives Within the technological upgrade initiated by Telecom in the fixed-line business, three outstanding announcements were made: In connection with SMEs target, Telecom renewed its portfolio of services, with integrated solutions that combine fixed and mobile telephony, data transmission and internet, thus strengthening its position as integrated provider of telecommunication solutions. Regarding the mass market, the company launched for the first time in the country, the Short Message Service (SMS) for fixed lines, as a first step of several innovations that Telecom will offer its residential clients, and which will change home communications. In addition, in December 2007 Telecom Argentina launched video- call product, becoming then the first operator in South America to provide a service that integrates voice and video for mass market. Recent Relevant Matters The Board of Directors of Telecom Personal has submitted for consideration of its Shareholder's Meeting a cash distribution of dividends for an amount of ARS220 million. On Feb. 19, 2008, Fitch Ratings upgraded the long-term debt rating of Telecom Argentina and Telecom Personal to B+ from B on the International Scale and to AA- from A on the Local Scale. About Telecom Argentina Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- provides telephone-related services, such as international long-distance service and data transmission and Internet services, and through its subsidiaries, wireless telecommunications services, international wholesale services and telephone directory publishing. As of Dec. 31, 2006, its telephone system included approximately 4.09 million lines in service. As of 2007, current approximate ownership of Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a consortium made up of: -- Werthein Group (48%) -- Telecom Italia -- France Telecom group (2%); * 41.5% publicly traded; and * 4.21% employee stock ownership program France Telecom sold its part of Telecom Argentina to the WertheinGroup, an Argentine agricultural concern owned in part by vice chairman Gerardo Werthein. As of 2007, current approximate ownership of Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a consortium made up of: -- Werthein Group (48%) -- Telecom Italia group (50%) -- France Telecom group (2%); * 41.5% publicly traded; and * 4.21% employee stock ownership program. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2008, Fitch Ratings upgraded Telecom Argentina SA's Foreign currency Issuer Default Rating to 'B+' from 'B', Local currency IDR upgraded to 'B+' from 'B' and Senior unsecured notes upgraded to 'B+/RR4' from 'B'/RR4. Fitch's rating outlook for the local currency IDR and national scale rating for Telecom Argentina remained positive and the rating outlook for the foreign currency IDR is revised to stable from positive. TERRAMED SRL: Trustee to File Individual Reports on June 12 ----------------------------------------------------------- Mirta Haydee Addario, the court-appointed trustee for Terramed SRL's reorganization proceeding, will present validated claims as individual reports before the National Commercial Court of First Instance in Buenos Aires on June 12, 2008. Ms. Addario will be verifying creditors' proofs of claim until April 30, 2008. She will also file in court a general report containing an audit of Terramed's accounting and banking records on Aug. 8, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 18, 2009. The debtor can be reached at: Terramed SRL Terrada 1242 Buenos Aires, Argentina The trustee can be reached at: Mirta Addario Lavalle 1454 Buenos Aires, Argentina ============= B A H A M A S ============= ISLE OF CAPRI: S&P Puts 'BB-' Rating on CreditWatch Negative ------------------------------------------------------------ Standard & Poor's Ratings Service placed its ratings for Isle of Capri Casinos Inc., including the 'BB-' corporate credit rating, on CreditWatch with negative implications. "The CreditWatch listing follows a slower-than-expected ramp up at the company's Pompano Park, Waterloo, and Coventry properties, as well as continued EBITDA declines at several of the company's other facilities, including all of those in Mississippi and Louisiana," said Standard & Poor's credit analyst Ariel Silverberg. "As a result, credit measures are not likely to improve over the intermediate term to the extent that we previously had expected. Credit measures are currently very weak for the rating." For the first nine months of fiscal 2008 (ending Jan. 27, 2008), property level EBITDA was up 1.1%, primarily due to contributions from properties opened in the first quarter of 2008. When comparing only those properties in operation for the full nine month period in both 2007 and 2008, property level EBITDA was down 8.6%, primarily as a result of significant declines in Mississippi, partially mitigated by EBITDA improvements in Black Hawk. S&P expects these properties will continue to be challenged over the intermediate term given the softness in the U.S. economy, which has resulted in revenue declines in several of the markets in which Isle operates. In resolving the CreditWatch listing, S&P will discuss with new management its plans associated with managing expenses and driving future revenue growth. S&P notes that this management team has had success in turning around other challenged gaming companies. Other factors that will be considered in S&P's review are Isle's financial strategies and its intermediate liquidity position. Based in Biloxi, Mississippi and founded in 1992, Isle of Capri Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville and Kansas City, Missouri and a casino and harness track in Pompano Beach, Florida. The company also operates and has a 57% ownership interest in two casinos in Black Hawk, Colorado. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama, a casino in Coventry, England, and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. =========== B E L I Z E =========== CONTINENTAL AIRLINES: Pilots Rally on March 12 to Support Talks --------------------------------------------------------------- Pilots at Continental Airlines Inc., represented by the Air Line Pilots Association International, will hold a rally to tell management: "the loan is due." The rally will be from 8:00 a.m. to 9:15 a.m. ET on Wednesday, March 12, 2008, at the Newark Airport Hotel at 1000 Spring Street, in Elizabeth, New Jersey. Pilots will also hold informational picketing lines at the NYC Financial District in Broad Street and Exchange Pl from 11:00 a.m. to 1:00 p.m. ET and a rally in Battery Park, Clinton Castle from 1:30 p.m. to 2:25 p.m. ET. Speakers at Battery Park will include Continental union leader Capt. Jay Pierce, local union representative Capt. Al Brandano, and ALPA president Capt. John Prater. Continental Airlines pilots gave up more than US$200 million annually in concessions in their last contract as a "loan" to help Continental Airlines overcome the threat of bankruptcy and help management achieve success. Continental is now one of the most prosperous airline carriers, achieving a 2007 pre-tax profit of US$566 million. Continental pilots believe the time for repayment of their "loan" is now due and they should share in the rewards and profits made possible by their sacrifices that are now being enjoyed by management. Continental pilots are preparing for the start of negotiations for the economic items of their contract (pay, benefits, etc.), which becomes amendable Dec. 31, 2008. About Continental Airlines Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/ -- is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,900 daily departures throughout Belize, Mexico, Europe and Asia, serving 144 domestic and 139 international destinations. More than 500 additional points are served via SkyTeam alliance airlines. With more than 45,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 69 million passengers per year. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 27, 2007, Fitch Ratings affirmed Continental Airlines 'B-' issuer default rating with a stable outlook. ============= B E R M U D A ============= SCOTTISH RE: Will File 2007 Financial Statements Late ----------------------------------------------------- Scottish Re Group Limited will delay the filing of its Form 10-K for the year ended Dec. 31, 2007. The company will submit a Form 12b-25 to the Securities and Exchange Commission for an extension of time to file the Form 10-K and currently expects to make the filing on or about April 1, 2008. The company is unable to file the Form 10-K by the prescribed due date of March 17, 2008, because of the additional work necessary to complete the Dec. 31, 2007, financial statements and address accounting and disclosure requirements related to the company's holdings in sub-prime and Alt-A securities as well as the company's recently announced change in strategic focus. The company's independent auditors also need the additional time to complete their audit of the financial statements and the audit of internal control over financial reporting. The company currently expects to report results for the fourth quarter of 2007 after the market closes on March 27, 2008 and expects to host an earnings conference call to discuss the fourth quarter and full year results at 8:30 am Eastern Time on Friday, March 28, 2008. 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 R A Z I L =========== BANCO BRADESCO: Completes US$500MM Future Flow Securitization ------------------------------------------------------------- Banco Bradesco's Managing Director Jose Guilherme told Business News Americas that the bank completed on Friday a US$500 million, six-year future flow securitization. The securitization was placed with a coupon equal to three-month Libor plus 60 basis points, BNamericas says, citing Mr. Lembi de Faria. Mr. Lembi de Faria told BNamericas that Banco Bradesco will use proceeds in import and export financing for Brazilian firms. According to BNamericas, the placement agent was the Bank of Tokyo-Mitsubishi UFJ. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO BRADESCO: Agora Corretora Will Become BBI's Unit ------------------------------------------------------ Agora Corretora will become a subsidiary of Banco Bradesco's investment bank BBI and shareholders will receive 8% of capital in BBI, Business News Americas reports. BNamericas relates that Banco Bradesco acquired Agora Corretora in a BRL830 million all-share deal, with BRL500 million for the brokerage business and BRL330 million for Agora Corretora shares in Bovespa and derivatives market BM&F. Banco Bradesco expects to wrap up the new acquisition in the first six months of this year, after getting regulatory approval. Banco Bradesco Chief Executive Officer Marcio Cypriano told reporters that the bank has "positioned itself as a leading broker" in Brazil through the Agora Corretora acquisition. UBS Pactual analyst Bruno Pereira told BNamericas that Banco Bradesco paid a "reasonable price for a fast-growing business" although the payment in shares was "surprising." According to BNamericas, Mr. Cypriano said that "the impact of the acquisition will likely be nil the first year but likely show returns during the second year. Banco Bradesco would like to write off the acquisition as a whole but that depends on new accounting rules from the central bank and securities regulator Comissao de Valores Mobiliarios, which could make write-offs more complicated." Agora Corretora will operate as a separate entity with headquarters in Rio de Janeiro. There is no overlap of customers, Mr. Cypriano told BNamericas. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO ITAU: Plans to Offer Private Banking Services in Mexico ------------------------------------------------------------- Banco Itau Holding Financeira SA is planning to offer private banking services in Switzerland and Mexico to attract investors for Brazilian assets purchase, Heloiza Canassa and Flavia Lima of Bloomberg News report. Lywal Salles, Itau's director for private banking, told Bloomberg that the bank wanted to take advantage of rising demand for Brazilian securities. In an interview with Bloomberg Television, Mr. Salles disclosed that foreign investors increased their interest for emerging markets, adding that "It is very interesting to have investments in reais since real interest rates are at 7 percent." According to the report, Itau and other Brazilian banks expanded their services as faster economic growth in Latin America's biggest economy and appreciation of the Brazilian currency have increased demand for the country's assets. Mr. Salles added that about 31 percent of Itau's US$26 billion in assets under management by its private banking unit are from non-Brazilian clients, Bloomberg relates. About Banco Itau Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA(Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. The bank has offices in Miami, Luxemburg, Chile and Uruguay. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Fitch changed the outlook of these ratings of Banco Itau Holding Financiera S.A.: -- Foreign currency IDR at 'BB+'; Outlook to Positive from Stable; -- Local currency IDR at 'BBB-'; Outlook to Positive from Stable; and -- National Long-term rating at 'AA+(bra)'; Outlook to Positive from Stable. COMPANHIA ENERGETICA: To Conduct Hydro & Wind Power Studies ----------------------------------------------------------- Companhia Energetica de Minas Gerais aka Cemig has signed a partnership agreement with Energias do Brasil to conduct feasibility studies for hydro and wind power projects, Business News Americas reports. Energias do Brasil said that it will study wind and hydro projects with Cemig to add 500 megawatts and 360 megawatts in installed capacity respectively. BNamericas relates that Energias do Brasil also entered into partnership accords for the projects with engineering firms Andrade Gutierrez and Concremat Engenharia e Tecnologia. Cemig, Andrade Gutierrez, and Concremat Engenharia will study the feasibility of hydro projects totaling 674 megawatts, BNamericas says. BNamericas notes that once the feasibility of the projects are proven, Energias do Brasil and Cemig will have 51% and 49% stakes in the projects, respectively. The studies will conclude in the first half of 2009, BNamericas states, citing Energias do Brasil. About Energias do Brasil Energias do Brasil S.A. is an integrated utility group controlled by Energias de Portugal, with activities in generation, distribution and commercialization of electricity. Its power distribution subsdiaries Bandeirante, Escelsa and Enersul represent altogether some 64% of consolidated total assets, while the power generation assets represent some 31%. About Companhia Energetica Companhia Energetica de Minas Gerais aka Cemig -- http://www.cemig.com.br/-- is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market. Cemig's concession area extends throughout nearly 96.7% of the State of Minas Gerais, Brazil. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). * * * As reported on March 8, 2007, Moody's Investors Service assigned corporate family ratings of Ba2 on its global scale and Aa3.br on its Brazilian national scale to Companhia Energetica de Minas Gerais aka CEMIG. The rating action triggered the upgrade of CEMIG's outstanding debentures due in 2009 and 2011, and of the BRL250 million 2014 senior unsecured guaranteed debentures of its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from B1 on the global scale and to Aa3.br from Baa2.br on the Brazilian national scale, concluding the review process initiated on Aug. 8, 2006. ENERGIAS DO BRASIL: To Conduct Feasibility Studies With Cemig ------------------------------------------------------------- Energias do Brasil has signed a partnership agreement with Companhia Energetica de Minas Gerais aka Cemig to conduct feasibility studies for hydro and wind power projects, Business News Americas reports. Energias do Brasil said that it will study wind and hydro projects with Cemig to add 500 megawatts and 360 megawatts in installed capacity respectively. BNamericas relates that Energias do Brasil also entered into partnership accords for the projects with engineering firms Andrade Gutierrez and Concremat Engenharia e Tecnologia. Cemig, Andrade Gutierrez, and Concremat Engenharia will study the feasibility of hydro projects totaling 674 megawatts, BNamericas says. BNamericas notes that once the feasibility of the projects are proven, Energias do Brasil and Companhia Energetica will have 51% and 49% stakes in the projects, respectively. The studies will conclude in the first half of 2009, BNamericas states, citing Energias do Brasil. About Companhia Energetica Companhia Energetica de Minas Gerais aka Cemig -- http://www.cemig.com.br/-- is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market. Cemig's concession area extends throughout nearly 96.7% of the State of Minas Gerais, Brazil. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). About Energias do Brasil Energias do Brasil S.A. is an integrated utility group controlled by Energias de Portugal, with activities in generation, distribution and commercialization of electricity. Its power distribution subsdiaries Bandeirante, Escelsa and Enersul represent altogether some 64% of consolidated total assets, while the power generation assets represent some 31%. * * * In May 2007, Moody's Investors Service placed a Ba2 long-term corporate family rating on Energias do Brasil. FORD MOTOR: Luxury Brands Buyer Says Won't Flip Jaguar ------------------------------------------------------ Tata Motors Ltd. denied speculations that it may sell Jaguar after it closes the acquisition deal with Ford Motor Co., Mike Spector and Edward Taylor of The Wall Street Journal report. Tata Group Chairman Ratan Tata said that Tata Motors Ltd. won't flip Jaguar, and assured workers at Ford's Jaguar and Land Rover luxury brands that the company won't introduce drastic changes to the brands' business structure. "These are two iconic brands . . . the plan would be to retain the image and not to tamper it in any way," Reuters quoted a Tata spokesperson, who spoke to reporters at the Geneva auto show last week. According to the unnamed spokesperson, Tata intends to "nurture and grow" the brands. A Financial Times report last week said that Mr. Tata expects Jaguar and Land Rover's management to integrate with Tata Motors', but he promises his executives would not get involved with "Indianising" the company. Deal Delayed As reported in the Troubled Company Reporter on Feb. 26, 2008, the announcement of the sale of the two luxury brands to Tata Motors is expected to be out soon. According to the Indo-Asian News Service, the purchase has been delayed by more than 10 days. "We have been told that the memorandum of sales will now take place in the week beginning March 17, after the Geneva Motor Show is over," IANS quoted a spokesman for Unite workers as saying. Ford noted in its U.S. Securities and Exchange Commission annual report filing that the sale deal with Tata Motors for the two units is expected to close in the second quarter. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. FORD MOTOR: To Give Out Performance Bonuses to All Employees ------------------------------------------------------------ Ford Motor Co. will dole out performance bonuses to all its hourly and salaried employees in North America despite incurring a US$2.7 billion loss in 2007, various sources report citing Ford CEO Allan Mulally. Hourly workers will get a lump sum payment of US$1,000 beginning March 13, while salaried employees' perk will be based on payment grade and leadership level, The Wall Street Journal reports. The move was instigated to boost morale amid a difficult turnaround. While Ford didn't meet profit and market share goals for 2007, it did improve its cost performance, quality, automotive cash flow and financial results, Mr. Mulally said in the e-mail message cited by WSJ's source. As reported in the Troubled Company Reporter on March 9, 2007, Ford Motor paid hourly and salaried employees a bonus of between US$300 and US$800. In addition, Tom Krisher of The Associated Press relates that Ford will defer salaried worker merit increases to July 1 from April 1 for the company to attain cost objectives. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. As reported in the TCR on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. GENERAL MOTORS: Shuts Wentzville Plant Over Axle Workers' Strike ---------------------------------------------------------------- General Motors Corp. on Thursday ceased operations at another plant -- GM's Wentzville, Missouri facility -- over the continuing strike at its supplier, American Axle & Manufacturing Inc., according to various reports. The strike at American Axle is already at its two-week stretch and no agreement has been reached as of press time. American Axle indicated on its Web site that it will resume contract negotiations with the United Auto Workers union at noon on Thursday, March 6, 2008. No further details on the American Axle-UAW negotiation was provided. GM has about 20 facilities affected by the strike at American Axle as the supplier attempts to negotiate with the United Auto Workers. The Wentzville facility is one of the five additional facilities that GM intends to close, apart from the already closed six facilities. The other four facilities will be closed this week, reports relate. The Wentzville facility manufactures Chevrolet Express and GMC Savanna and has 2,000 workers. Around 20%, or more than 20,000, of GM's workers at its North American operations have been affected by the plant closures. Two Plants Idled Over Axle Dispute As reported in the Troubled Company Reporter on March 5, 2008, two additional production facilities in Moraine, Ohio, and Mishawaka, Indiana, have been affected by the labor dispute between the UAW and key supplier American Axle, according to a GM production statement. A Toledo Transmission plant is anticipated to be shutdown on March 10, 2008, and is expected 1,444 hourly and 219 salaried workers to be laid off. The TCR related on March 3, 2008, two more GM plants are likely to shutter this week as supplier American Axle continues to negotiate with UAW union workers on strike. GM's production of Chevrolet Silverado and GMC Sierra pickups at the Pontiac Assembly Center, which has 2,500 hourly and salaried employees, in Michigan, ceased after the first shift on February 28. A day after, GM production factories in Flint, Michigan, Fort Wayne, Indiana, and Oshawa, Ontario, were idled after the second shift, displacing a total of 9,503 hourly and salaried workers. UAW president Ron Gettelfinger and Vice President James Settles disclosed that members at American Axle began an unfair labor practices strike at on Feb. 26, 2008, following expiration of a four-year master labor agreement. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 28, 2008, Fitch Ratings affirmed the Issuer Default Rating of General Motors at 'B' with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales, GM announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on a new labor contract. The outlook is stable. GENERAL MOTORS: 18 Plants to Lay Off Workers Due to Axle Strike --------------------------------------------------------------- General Motors Corp. disclosed that 18 North American manufacturing facilities will be partially or fully affected by an ongoing labor dispute between GM's key supplier American Axle and Manufacturing Inc. and the United Auto Workers union. Around 16,336 hourly workers and 2,476 salaried employees will be displaced, according to a GM production statement. Plants that are partially affected are those still producing parts for GM facilities not affected by the strike. These plants are: * South Engine plant in Flint, Michigan; * Engine/Components plant in St. Catharines, Ontario; * Transmission plant in Baltimore, Maryland; * Components plant in Bay City, Michigan; * Casting plant in Bedford, Ohio; * Casting plant in Defiance, Ohio; * Components plant in Fredericksburg, Virginia; * Components plant in Parma, Ohio; * Transmission plant in Willow Run, Michigan; * Transmission plant in Ypsilanti, Michigan; * Engine plant in Tonawanda, New York; * Stamping plant in Flint, Michigan; * Stamping plant in Grand Rapids, Michigan; * Stamping plant in Indianapolis, Indiana; * Stamping plant in Mansfield, Ohio; * Stamping plant in Marion, Indiana; and * Stamping plant in Parma, Ohio. An engine plant in Romulus, Michigan will be fully affected by the strike and will cease producing V6 and V8 engines on March 10, 2008. Two Plants Idled Over Axle Dispute As reported in the Troubled Company Reporter on March 5, 2008, two additional production facilities in Moraine, Ohio, and Mishawaka, Indiana, have been affected by the rally of Axle union members. A Toledo Transmission plant is anticipated to be shut down on March 10, 2008, and is expected to lay off 1,444 hourly and 219 salaried workers. UAW president Ron Gettelfinger and Vice President James Settles disclosed that members at American Axle began an unfair labor practices strike at on Feb. 26, 2008, following expiration of a four-year master labor agreement. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 28, 2008, Fitch Ratings affirmed the Issuer Default Rating of General Motors at 'B' with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales, GM announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on a new labor contract. The outlook is stable. GENERAL MOTORS: Laid Off Union Workers Will Be Paid Under Pacts --------------------------------------------------------------- Tom Wickman, General Motor Corp.'s Global Manufacturing Communications Manager, disclosed that its labor contracts with the United Auto Workers union, the Canadian Auto Workers union and the International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers provide compensation for people on a short work week or regular layoff due to the impact of American Axle and Manufacturing Inc.'s workers union strike on GM facilities. In addition, plants listed as "partially impacted" are still producing parts for GM facilities not impacted by the strike. GM's practice, Mr. Wickham relates, is to notify its employees first when a particular plant will be affected by the protest. Once the employee notification occurs, the company provides basic information about the affected plant. Not all plants affected by the strike shuts down completely. Even though production stops, GM requires salaried employees to report to their jobs and may need to retain hourly employees to handle maintenance, sanitation or other work assignments. Some plants may have employees continue reporting to work for training purposes. These are reasons why the automaker is unable to release layoff figures -- numbers vary on a day-to-day basis. Mr. Wickham elaborates that with a handful of assembly plants idled by the strike, the company is experiencing some impact at its Powertrain and Stamping operations. Still, the layoffs are minor in scope as the plants continue to produce parts for other GM assembly plants that have not been impacted by the strike. Mr. Wickham says its still premature to confirm on the amount of production lost to date and GM's plans of recovery. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 28, 2008, Fitch Ratings affirmed the Issuer Default Rating of General Motors at 'B' with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales, GM announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on a new labor contract. The outlook is stable. GENERAL MOTORS: Restores CEO's Pay to 2003 Level of US$2.2 Mil. --------------------------------------------------------------- General Motors Corp. restored the salary of G. Richard Wagoner, Jr., its chairman and chief executive officer, to 2003 level of US$2,200,000. His 2008 Annual Incentive Plan target will be US$3,520,000 and long-term incentive opportunity under the 2008-2010 Stock Performance Plan will be a grant of 165,563 shares of GM Common Stock. In addition, Mr. Wagoner will receive 500,000 stock options and 75,000 restricted stock units. The stock options will vest ratably over a three-year period. The restricted stock units will vest 1/3 in year three, 2011, with the remaining 2/3 vesting through year five. Grants of performance contingent stock options were approved for Messrs. Wagoner and Frederick Henderson, president and chief operating officer, in amounts of 500,000 shares and 200,000 shares, respectively. These options were granted at US$23.13 on the date of grant, March 5, 2008, and will vest following the first anniversary date of the grant if the price of GM common stock reaches US$40.00, or 173% of the grant price, prior to March 5, 2013, and this price is maintained for a ten day period within 30 consecutive trading days. Vested performance options may be exercised through March 5, 2015, a seven year term. Net shares acquired upon exercise must be held for at least a two year period while the executive is actively employed. Shares acquired upon exercise after retirement are not subject to this holding requirement. Options that do not vest before March 5, 2013 will be forfeited. Newly Appointed Officers and Their Pay As reported in the Troubled Company Reporter on March 4, 2008, GM board of directors appointed these officers effective immediately, at its meeting on March 3: * Frederick (Fritz) A. Henderson, 49, vice chairman and chief financial officer, is elected president and chief operating officer; * Ray Young, 46, currently group vice president - finance, is elected executive vice president and chief financial officer, replacing Mr. Henderson; and * Thomas G. Stephens, 59, currently group vice president, global powertrain and global quality, is also elected executive vice president. As president and COO, Mr. Henderson's base salary will be US$1,800,000. His 2008 annual incentive plan target will be US$2,430,000 and long-term incentive opportunity under the 2008 -- 2010 stock performance plan will be a grant of 110,376 shares of GM common stock. In addition, he will receive 250,000 stock options and 60,000 restricted stock units. The stock options will vest ratably over a three year period. The restricted stock units will vest 1/3 in year three, 2011, with the remaining 2/3 vesting through year five. Mr. Henderson's brother, Douglas L. Henderson, is a non- executive employee of the company, with annual compensation of less than US$200,000. Other than that relationship, there is no reportable relationship between the company or its affiliates and Mr. Henderson. As CFO, Mr. Young's base salary will be US$900,000. His 2008 annual incentive plan target will be US$945,000 and long-term incentive opportunity under the 2008-2010 stock performance plan will be a grant of 16,557 shares of GM common stock. In addition, he will receive 87,500 stock options and 30,354 cash- based restricted stock units. The stock options will vest ratably over a three year period. The cash-based restricted stock units will vest ratably over a three year period. Exec Bonuses a Sensitive Issue for UAW Reuters and The Wall Street Journal ran separate reports citing that bonuses and compensation awarded to executives at GM are delicate matters for the United Auto Workers union. Both reports noted UAW president Ron Gettelfinger's move to question the large amounts of money that company executives get amid the company's losses. GM spokesman, Renee Rashid-Merem, explained that a large amount of the compensation afforded to the executives was dependent on the financial performance of the company, Reuters said. Analysts complimented GM's efforts of reducing its fixed costs by US$9 billion and of reaching an agreement with the UAW, which is projected to result in yearly savings of US$500 million for GM, Reuters added. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 28, 2008, Fitch Ratings affirmed the Issuer Default Rating of General Motors at 'B' with a Rating Outlook Negative. As reported in the Troubled Company Reporter on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales, GM announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on a new labor contract. The outlook is stable. OSI RESTAURANT: Weak Performance Cues Moody's to Hold B2 Rating --------------------------------------------------------------- Moody's Investors Service affirmed the long-term ratings of OSI Restaurant Partners, Inc., CFR rated B2. In addition, Moody's lowered OSI's speculative grade liquidity rating to SGL-3 from SGL-2 and changed the outlook on all ratings to negative from stable. The negative outlook reflects OSI's weaker than anticipated operating performance and debt protection metrics that are weak for the current ratings. It is Moody's view that soft consumer spending, high operating costs, and competitive pressures may make it challenging for OSI to materially improve debt protection metrics over the intermediate term to levels required for OSI to maintain its current ratings. "The combination of a financially challenged consumer, higher operating costs, and competitive pressures will make it difficult for OSI to maintain margins, earnings, and cash flow without negatively impacting traffic patterns over the intermediate term" said Moody's Senior Analyst Bill Fahy, The downgrade of the speculative grade liquidity rating to SGL-3 (adequate liquidity) reflects Moody's view that weaker operating performance will result in lower than expected free cash flow and a more modest cushion under the company's financial covenants. The B2 corporate family rating reflects OSI's relatively weak operating performance and sizeable debt levels that have resulted in persistently weak debt protection metrics and limited free cash flow. The ratings also incorporate Moody's belief that current challenges impacting the restaurant industry, particularly casual dining, such as a financially challenged consumer, historically high commodity prices and operating costs, and increasing competition will persist for the intermediate term. However, the ratings also incorporate OSI's meaningful scale, the significant brand awareness of Outback Steakhouse, geographic diversity within the United States, and adequate liquidity. Ratings affirmed are: -- B2 corporate family rating, -- B2 probability of default rating, -- US$150 million working capital revolver maturing in 2013, rated B1 (LGD 3, 33%) -- US$100 million pre-funded revolver maturing in 2013, rated B1 (LGD 3, 33%) -- US$1.310 billion term loan B maturing in 2014, rated B1 (LGD 3, 33%) -- US$550 million senior unsecured notes maturing in 2015, rated Caa1 (LGD 5, 85%) Rating lowered is; -- Speculative Grade Liquidity rating, lowered to SGL-3 from SGL-2 The outlook has been changed to negative from stable OSI Restaurant Partners, Inc., headquartered in Tampa, Florida, is one of the largest casual dining restaurant companies in the world with eight concepts located throughout all 50 states and in 20 countries internationally, including Thailand, Brazil and the United Kingdom, internationally. Revenues for LTM period ended Sept. 30, 2007 totaled approximately US$4.1 billion. PROPEX INC: Committee Wants FTI Consulting as Financial Advisor --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Propex Inc. and its debtor-affiliates seeks authority from the U.S. Bankruptcy Court for the Eastern District of Tennessee to retain FTI Consulting, Inc., as its financial advisors, effective as Jan. 31, 2008. Stephen Cooke, chairperson of the Creditors Committee, relates that they selected FTI because the firm has a lot of experience in providing financial advisory services in restructurings and reorganizations in large and complex Chapter 11 cases on behalf of debtors and creditors throughout the United States. Mr. Cooke points out FTI's services are necessary to enable the Creditors Committee to assess and monitor the efforts of the Debtors and their professional advisors to maximize the value of their estates and to reorganize successfully. As the Creditors Committee's financial advisors, FTI will: * assist the Creditors Committee in the review of financial related disclosures required by the Court, including the Schedules of Assets and Liabilities, the Statement of Financial Affairs and Monthly Operating Reports; * assist the Creditors Committee with information and analyses required pursuant to the Debtors' DIP financing; * assist and advice the Creditors Committee with respect to the Debtors' identification of core business assets and the disposition of assets or liquidation of unprofitable operations; * review the Debtors' performance of cost or benefit evaluations with respect to the affirmation or rejection of various executory contracts and leases; * evaluate the present level of operations and identification of areas of potential cost savings, including overhead and operating expense reductions and efficiency improvements; * review the financial information distributed by the Debtors to creditors and others; * attend meetings and assist in discussions with the Debtors, potential investors, banks, other secured lenders, the Creditors Committee and any other official committees organized in the Chapter 11 proceedings, the United States Trustee, other parties in interest; * review and prepare information and analysis necessary for the confirmation of a plan in these chapter 11 proceedings; * assist in the valuation of the business and review of capital structure alternatives; * assist in the evaluation and analysis of avoidance actions, including fraudulent conveyances and preferential transfers; and * render all other general business consulting or assistance as the Creditors Committee or its counsel may deem necessary that are consistent with the role of a financial advisor and not duplicative of services provided by other professionals in this proceeding. For its services, FTI will be paid: (1) a fixed monthly rate of US$150,000 for the first three months of the bankruptcy cases; (2) US$125,000 per month thereafter; plus (3) a completion fee payable of US$1,000,000, at the option of the Creditors Committee, upon the occurrence of the effective date of a Chapter 11 Plan of Reorganization. In addition, FTI will be reimbursed for actual and necessary expenses it has incurred or will incur, including any legal fees related to the firm's retention and defense of fee applications in the Debtors' cases. Steven Simms, Esq., a partner at FTI, assures the Court that his firm is a "disinterested person," as the term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in North America, Europe, and Brazil. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. The Debtors' exclusive period to file a plan of reorganization expires on May 17, 2008. (Propex Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) ========================== C A Y M A N I S L A N D S ========================== 336275 LIMITED: To Hold Final Shareholders' Meeting on March 18 --------------------------------------------------------------- 336275 Limited will hold its final shareholders' meeting on March 18, 2008, in the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. 336275's shareholders agreed on Feb. 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Royhaven Secretaries Limited Attn: Andrew Leggatt c/o P.O. Box 707 Grand Cayman KY1-1107, Cayman Islands Telephone: 945-4777 Fax: 945-4799 BEAR STEARNS: Whicker & Breighton Continue as Joint Liquidators --------------------------------------------------------------- Recent articles in the Hedge Funds Review have incorrectly stated that Simon Whicker and Kris Beighton have been replaced as Joint Official Liquidators of the two Bear Stearns Master Funds that were placed into Official Liquidation on July 31, 2007. To clarify, Messrs. Whicker & Beighton continue in their roles as JOLs of Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. & Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund, Ltd. There have been no challenges to the appointment of Messrs. Whicker & Beighton as JOLs of the MASTER Funds. The MASTER Funds are insolvent and therefore the JOLs' primary duty is to maximise realisations for the benefit of the MASTER Funds' creditors. To date no objections to the JOLs' appointment have been received from any of the MASTER Funds' creditors. The creditors themselves are represented in the liquidations by Liquidation Committees that are composed of the significant majority of known creditors on the High-Grade and Enhanced Leverage Master Funds respectively. External investors gained access to the MASTER Funds by investing into FEEDER Funds registered in either the US or the Cayman Islands. On Nov. 2007, Messrs Whicker & Beighton were appointed as Joint Voluntary Liquidators for certain of the Cayman Islands registered FEEDER Funds. The FEEDER Funds are completely separate legal entities to the MASTER Funds. Subsequent to a poll of the external investors, the results of which favoured the replacement of Messrs. Whicker & Beighton, the JVLs have been replaced by Mr. Geoffrey Varga & Mr. Bill Cleghorn of Kinetic Partners Cayman LLP. Kinetic has no role in the Official Liquidation of the MASTER Funds. Mr. John Milsom & Mr. Richard Heis, of KPMG UK LLP were appointed as Joint Liquidators of the US registered FEEDER Funds on Nov. 1, 2007 (High-Grade US Feeder) and Nov. 16, 2007 (Enhanced Leverage US Feeder). No challenges to their appointment have been received. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On Aug. 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than US$100,000,000 each. (Bear Stearns Funds Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) ESPRIT GENERAL: Sets Final Shareholders' Meeting for March 18 ------------------------------------------------------------- Esprit General Partner will hold its final shareholders' meeting on March 18, 2008, at HSBC Financial Services (Cayman) Limited, P.O. Box 1109, Grand Cayman KY1-1102, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Esprit General's shareholders agreed on Jan. 29, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Connan Hill and Alex Johnston Attn: Isabel Mason HSBC Financial Services (Cayman) Limited P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands Telephone: 345 949-7755 Fax: 345 949-7634 REDWOOD CAPITAL VII: Final Shareholders' Meeting Is on March 18 --------------------------------------------------------------- Redwood Capital VII, Ltd., will hold its final shareholders' meeting on March 18, 2008, at 10:30 a.m. at HSBC Financial Services (Cayman) Limited, P.O. Box 1109, Grand Cayman KY1-1102, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Redwood Capital's shareholders agreed on Jan. 29, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Scott Aitken and Sylvia Lewis P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands Telephone: 949-7755 Fax: 949-7634 REDWOOD CAPITAL VIII: To Hold Shareholders' Meeting on March 18 --------------------------------------------------------------- Redwood Capital VIII, Ltd., will hold its final shareholders' meeting on March 18, 2008, at 10:30 a.m. at HSBC Financial Services (Cayman) Limited, P.O. Box 1109, Grand Cayman KY1-1102, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Redwood Capital's shareholders agreed on Jan. 29, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Scott Aitken and Sylvia Lewis P.O. Box 1109, Grand Cayman KY1-1102 Cayman Islands Telephone: 949-7755 Fax: 949-7634 SCR MARKET: Will Hold Final Shareholders' Meeting on March 18 ------------------------------------------------------------- SCR Market Neutral (Cayman) Fund, Ltd., will hold its final shareholders' meeting on March 18, 2008, at 11:00 a.m. at DMS Corporate Services Ltd, Ansbacher House, 20 Genesis Close, George Town, Grand Cayman. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. SCR Market's shareholders agreed on Feb. 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: DMS Corporate Services Ltd. Attn: Neil Ross Ansbacher House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Fax: (345) 946 7666 ========= C H I L E ========= DIRECTV GROUP: Will Launch High Definition TV in Latin America -------------------------------------------------------------- Bruce Churchill, president of The DirecTV Group Inc.'s Latin American unit, told Business News Americas that the company will launch high definition television in Latin America in the second half of this year. The unit doesn't expect high definition television to become widespread for several years until there is more local programming content, BNamericas says, citing Mr. Churchill. Mr. Churchill commented to BNamericas, "Overhead costs of ramping up high definition television in Latin America isn't sizeable, unlike for a stand-alone cable operator in Latin America, which would have to invent the whole system from soup to nuts. The reality is that there are just not that many high definition TV sets, but even more importantly there isn't that much high definition content in Latin America, particularly if you talk about local content, which is what ultimately drives viewership. So I think Latin America is probably three to five years behind the US. We've just launched in the US 100 HD [high definition] channels. We're not talking about anything like that for Latin America, we're talking fewer than 10 for sure. There's nobody out there aggressively putting together HD channels because there's no audience for it. It's a very high- end product and it will be important for certain people, as it will be for us because we've always been the premium product and the leader from a technology and TV experience perspective. We'll have it on offer but I think it will be a while before it becomes a meaningful part of the market." BNamericas relates that DirecTV Chile's General Manager Francisco Mandiola is positive that the company will have an edge due to its focus on flexibility, based on high technology. Mr. Mandiola told BNamericas, "They tend to focus on sending you all three things [triple play] cheaply or sending you an amalgam of supposedly high quality channels that you don't really want. It's a bit like the banking industry, you choose your bank and the service that best suits your needs." The DirecTV Group will create actual channels that are 100% high definition, BNamericas says, citing Mr. Mandiola. "Every aspect is provided by the programmer in HD and no one else will be doing that in Latin America. I think our clients like to be ahead of the crowd," Mr. Mandiola commented to BNamericas. Headquartered in El Segundo, California, The DirecTV Group Inc. (NASDAQ:DTV) -- http://www.DirecTV.com/-- provides digital television entertainment in the United States and Latin America. The company's two business segments, DirecTV U.S. and DirecTV Latin America, are engaged in acquiring, promoting, selling and/or distributing digi]tal entertainment programming via satellite to residential and commercial subscribers. DirecTV Holdings LLC and its subsidiaries are a provider of direct-to- home digital television services and a provider in the multi- channel video programming distribution industry in the United States. DTVLA is a provider of DTH digital television services throughout Latin America. In January 2007, the company acquired Darlene Investments LLC's 14.1% equity interest in DirecTV Latin America, LLC. DirecTV Latin America LLC is a multinational company, which, as a result of this transaction, became a wholly owned subsidiary of the company. The DIRECTV Latin America segment provides digital direct-to-home digital television services to approximately 1.6 million subscribers in 27 countries, including Brazil, Argentina, Caribbean, Chile, Colombia, Ecuador, Peru, Puerto Rico, Venezuela and Uruguay. * * * The DIRECTV Group Inc. still carries Standard & Poor's Ratings Services' 'BB' corporate credit and 'BB-' senior unsecured debt rating given on April 3, 2007. The outlook remains stable. =============== C O L O M B I A =============== BANCOLOMBIA: Unit Earns COP23.3 Billion in 2007 ----------------------------------------------- Bancolombia's investment banking unit Banca de Inversion Bancolombia's net profits increased 8.2% to COP23.3 billion in 2007, compared to 2006, Business News Americas reports. BNamericas relates that Banca de Inversion increased commission fees to COP21.7 billion in 2007, from 2006. According to Bancolombia, Banca de Inversion led 24 transactions of over COP14 trillion in 2007. BNamericas relates that Banca de Inversion offered in 2007 about COP6.8 trillion in shares from: -- state power generator Isagen, -- retailer Almacenes Axito, -- state oil company Ecopetrol, and -- Bancolombia. Banca de Inversion managed some COP6.5 trillion in merger and acquisition deals, BNamericas states. Bancolombia is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * As reported in the Troubled Company Reporter-Latin America on June 27, 2007, Moody's Investors Service changed the outlook to positive from stable on its Ba3 long-term foreign currency deposit ratings and Ba1 long-term foreign currency subordinated bond rating for Bancolombia, S.A. ================== C O S T A R I C A ================== CHARLES JOURDAN: Court Approves EUR2.5 Million Sale to Finzurich ---------------------------------------------------------------- The Commercial Court in Romans-sur-Isere approved the sale of Charles Jourdan SAS to investment fund Finzurich for EUR2.5 million, Bloomberg News reports citing Les Echos. According to the report, Costa-Rica-based Finzurich, proposed immediate investment of EUR15 million to resume production at Charles Jourdan. Finzurich also plans to keep 130 Charles Jourdan workers. Finzurich aims to produce 150,000 pairs of shoes in the next three years and to launch two new lines, Les Echos relates. Headquartered in Romans Sur Isere, France, Charles Jourdan -- http://www.charles-jourdan.fr/-- manufactures luxury footwear. As reported in the TCR-Europe, the commercial court in Romans- sur-Isere placed Charles Jourdan into liquidation on Dec. 17, 2007, after U.S. firm Omniscent withdrew its offer to acquire the company's assets. The court placed Charles Jourdan in compulsory administration on Sept. 12, 2007, after it filed for redressment judiciaire, the French equivalent of Chapter 11 bankruptcy protection, for the second time. The company first filed for bankruptcy on Aug. 22, 2005. Avendis and Finaluxe bought the company on Nov. 2, 2005. SIRVA INC: Triple Net Seeks Appointment of Class 5 Committee ------------------------------------------------------------ Triple Net Investments IX, LP, asks the U.S. Bankruptcy Court for the Southern District of New York to (i) appoint an Official Committee of Unsecured Creditors for Class 5 Claimants of Sirva Inc. and its debtor-affiliates, and to (ii) stay all proceedings pending the appointment of the Class 5 Committee. Triple Net Investments IX, LP, holds a claim against one of the Debtors, North American Van Lines, Inc. According to Triple Net, there is an inherent and irreconcilable conflict of interest in having one law firm represent, as part of the Official Committee of Unsecured Creditors, the interests of both Class 4 and Class 5 claimants under Debtors' proposed plan of reorganization. The Class 5 Claimants of the Debtors are those that hold General Unsecured Claims. Class 4 consists of all Unsecured Ongoing Operations Claims. Robert E. Nies, Esq., at Wolff & Samson PC, in New York, relates that two Class 4 members in the Committee have already been paid in full, or will be paid in full upon confirmation of the Plan. On the other hand, Class 5 claimants will receive nothing, Mr. Nies explains. The counsel representing Class 4's interests cannot advocate for Class 5 claimants without jeopardizing Class 4's guaranteed recovery. Mr. Nies submits that committee members often have varying interests in a bankruptcy case, and often disagree over the committee's strategic objectives. However, he argues that the Class 4 claimants, who are unimpaired under the Plan, require no Committee representation. Accordingly, the Class 4 Claimants should be dismissed from the Committee, or in the alternative, the Court should direct the formation of a separate Class 5 committee, he says. In addition, given the fast track process of the Debtors' bankruptcy cases, Triple Net asks Judge Peck to shorten the time for notice and a hearing on its request. The United States Trustee for Region 2 has objected to Triple Net's request. About Sirva Inc. Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets : SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation solutions to a well-established and diverse customer base. The company handles all aspects of relocation, including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services. SIRVA conducts more than 300,000 relocations per year, transferring corporate and government employees along with individual consumers. SIRVA's brands include Allied, Allied International, Allied Pickfords, Allied Special Products, DJK Residential, Global, northAmerican, northAmerican International, Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA Settlement. The company has operations in Costa Rica. The company and 61 of its affiliates filed separate petitions for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis, L.L.P. is representing the Debtor. An official Committee of Unsecured Creditors has been appointed in this case. When the Debtors filed for bankruptcy, it reported total assets of US$924,457,299 and total debts of US$1,232,566,813 for the quarter ended Sept. 30, 2007. (Sirva Inc. Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) SIRVA INC: Asks Authority from Court to Sell UK & Ireland Units --------------------------------------------------------------- Sirva Inc. and its debtor-affiliates seek permission from the U.S. Bankruptcy Court for the Southern District of New York to sell their ownership shares in certain foreign non-Debtors subsidiaries, pursuant to Section 363 of the Bankruptcy Code. SIRVA UK Limited, organized under the laws of England and Wales and a non-Debtor in the Chapter 11 cases, is the Debtors' principal operating company and a parent company of their U.K. moving services businesses. Douglas V. Gathany, senior vice-president and treasurer of Debtor DJK Residential LLC, relates that SIRVA UK had relied on funding from the Debtors to meet its short term cash obligations. SIRVA UK is experiencing a severe "liquidity crunch," and has sufficient liquidity to fund its operations only until March 20, 2008. Absent cash infusions of approximately US$8,000,000 after March 20, it will have to commence U.K. insolvency proceedings, Mr. Gathany says. The Debtors' DIP financing will allow only a US$3,000,000 funding for non-Debtor parties. Hence, SIRVA UK has two options -- an expedited sale of the business, or administration under U.K. insolvency laws. Mr. Gathany states that a forced administration in the U.K. will not maximize value for the Debtors' estates, which will result in a zero net recovery for equity holders. Mr. Gathany adds that the potential loss of control of the "Pickfords" brand and trademark rights, currently owned by SIRVA UK, will have a severe negative effect on the Debtors' other international businesses. The Debtors' regional managers have advised that if SIRVA's international moving businesses will lose the use of the brand, the value of those businesses, and thus the value of their bankruptcy estates, will sharply decline. Debtor North American International Holding Corporation, in conjunction with other foreign non-Debtor shareholders, have agreed to a private sale of the foreign moving services businesses -- SIRVA Group Holdings Limited and SIRVA Ireland, including The Baxendale Insurance Company Limited, their affiliated Irish insurance business -- to companies managed by TEAM Relocations Limited. In 2007, the Debtors had successfully concluded a similar transaction with TEAM, in connection with the Debtors' assets in continental Europe. TEAM's associated companies will acquire all of the Debtors' capital stock in their U.K. and Irish businesses for GBP2,108,000, pursuant to the Share Purchase Agreement dated March 2, 2008 between North American, NA (UK) Limited Partnership and NA (UK) GP Limited, and Picot Limited and Irving Holdings Limited. The Sale is guaranteed by TEAM Relocations Limited, in a separate guarantee agreement. The Sale Proceeds will be used to offset existing intercompany indebtedness: * GBP1,054,000 for 100 ordinary shares of SIRVA Group Holdings Limited; * GBP1,053,999 for 13,999,999 ordinary shares of SIRVA Ireland Limited; and * GBP1 for 1 ordinary share of SIRVA Ireland Limited. Under the terms of the proposed sale, TEAM will provide SIRVA UK with GB