T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, March 12, 2008, Vol. 9, No. 51
Headlines
A R G E N T I N A
ALITALIA SPA: New Gov't to OK Sale if Flagship Status Retained
ALITALIA SPA: Foreign Minister Warns of Possible Bankruptcy
DAMVIC SA: Proofs of Claim Verification is Until May 7
FORD MOTOR: Awards Stock of More than US$15MM to Top Executives
FRIGORIFICO REGIONAL: Files for Reorganization in Court
GRAHAM PACKAGING: Fitch Affirms B- Issuer Default Rating
MONROE 3132: Proofs of Claim Verification Deadline is May 2
OIS SA: Proofs of Claim Verification Deadline is April 9
SIMBOLO CIA: Trustee Will File Individual Reports on April 14
SOLUTION PROVIDER: Proofs of Claim Verification is Until May 19
TELECOM ARGENTINA: Telecom Italia May Take Control of Firm
TELECOM PERSONAL: Telecom Italia May Take Control of Firm
TELECOM PERSONAL: Earns ARS370 Million in 2007
TENNECO INC: Inks Purchase Agreement with Delphi Automotive
B A H A M A S
HARRAH'S ENETERTAINMENT: Pulls Out of Bahamas Resort Deal
KNOLL INC: Adopts Trading Plan for Expanded Repurchase Program
B E R M U D A
ALEA GROUP: Posts US$78.2 Million Net Loss in Year Ended Dec. 31
B R A Z I L
AMAZONIA CELLULAR: Moody's Lifts US$120-Mln Notes Rating to Ba3
AMBAC FINANCIAL: Prices US$1 Bln Public Offering of Common Stock
BANCO BMG: Moody's Rates ST Note Programme & LT Senior Notes Ba1
BANCO BMG: Raises US$250 Million From Two-Year Bond Issue
BANCO DO BRASIL: Concludes US$250MM Six-Year Flow Securitization
BANCO NACIONAL: Okays BRL7.1 Mil. Financing to HUCFF Annex
COMPANHIA ENERGETICA: Will Auction Shares on March 26
COMPANHIA SIDERURGICA: Net Income Up 150% to BRL2.9 Bil. in 2007
DELPHI CORP: Realigns Stake in Japanese & Hungarian Ventures
DELPHI CORP: Re-Launches Exit Financing to Include GM, Affiliate
DELPHI CORP: Inks US$10 Million Purchase Pact with Tenneco Inc.
GOL LINHAS: Signs Interline Agreement With TAP Portugal
GRAFTECH INT'L: Dec. 31 Balance Sheet Upside Down By US$112.7MM
PROPEX INC: U.S. Trustee Reacts to Panel Counsel's Hourly Rates
IMAX CORP: To Install 35 Projection Systems in Latin America
TELEMIG CELLULAR: Moody's Lifts US$120-Mln Notes Rating to Ba3
C A Y M A N I S L A N D S
HONJO GLOBAL: Will Hold Final Shareholders Meeting on March 18
IBEST HOLDING: Proofs of Claim Filing Deadline is March 18
JEFFERIES PARAGON: Sets Final Shareholders Meeting for March 18
JEFFERIES PARAGON FUND: Final Shareholders Meeting on March 18
PARMALAT SPA: Records EUR674.4 Million Net Profit in 2007
REDWOOD CAPITAL: Sets Final Shareholders Meeting for March 18
C H I L E
* CHILE: Fitch Publishes Annual Review and Outlook on Banks
C O L O M B I A
BANCOLOMBIA SA: Earns COP1,086.9 Billion in Year Ended Dec. 2007
BANCOLOMBIA SA: Shareholders Adopt Resolutions at Annual Meeting
SOLUTIA INC: Signs Three Credit Deals with Syndicate of Banks
D O M I N I C A N R E P U B L I C
TRICOM SA: Majority of Creditors Accepts Prepack Plan
TRICOM SA: Schedules Filing Deadline Extended to April 14
TRICOM SA: Wants to Employ Morrison Foerster as Counsel
TRICOM SA: Wants to Hire Thompson Hine as Conflicts Counsel
E C U A D O R
PETROECUADOR: Wants to Develop Pungarayacu With Ivanhoe Energy
G U A T E M A L A
BRITISH AIRWAYS: Expects 4-4.5% Revenue Growth in FY 2008/2009
BRITISH AIRWAYS: Traffic Figures Up 5.3% in February 2008
J A M A I C A
AIR JAMAICA: Gov't Will Privatize Airline by March 2009
DYOLL GROUP: Will Hold Shareholders' Special General Meeting
DYOLL INSURANCE: Will Make Third Payment to Creditors
NAT'L COMMERCIAL: Cash Plus Complains on Account Closure
NAT'L COMMERCIAL: To Launch Loans & Credit-Card Online Service
M E X I C O
AMERICAN AXLE: Strike No Effect on S&P's Auto Sector Ratings
ARAMARK CORPORATION: Fitch Holds IDR at 'B' with Stable Outlook
FEDERAL-MOGUL: Johns-Manville Case Forms Plan A Disfavor Basis
MBIA INC: CEO Jay Brown Asks Fitch to Withdraw Insurer Rating
MBIA INC: Fitch Ratings Comments on Chairman Jay Brown's Letter
SHARPER IMAGE: Files Motion for Order Against Cal. AG's Lawsuit
SMOBY-MAJORETTE SA: Court Names Simba Dickie as Buyer
N I C A R A G U A
DOLE FOOD: Judge Chaney Dismisses Tellez Case for US$1.58 Mil.
P A N A M A
GLOBAL CROSSING: Expands Undersea Cable System Capacity
P E R U
QUEBECOR WORLD: Court Gives 30 Days to Negotiate DIP Fund Terms
QUEBECOR WORLD: NYSE to Delist Subordinate Voting Shares
QUEBECOR WORLD: Abandons US$341 Mil. Sale of EURO Assets to RSDB
QUEBECOR WORLD: Wants Until June 4 to File Financial Schedules
P U E R T O R I C O
CARIBBEAN RESTAURANTS: Moody's Drops Corp. Family Rating to B3
R&G FINANCIAL: Will Pay US$39MM to Settle Investor Class Action
R&G FINANCIAL: Says Dividend Payments Unlikely
TURBO GASOLINE: Case Summary & 2 Largest Unsecured Creditors
V E N E Z U E L A
CHRYSLER LLC: Closes Belvidere; 1,000+ Workers Go Unemployed
CHRYSLER LLC: Closes Pacifica Design Center in California
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: New Gov't to OK Sale if Flagship Status Retained
--------------------------------------------------------------
The next Italian government will approve the sale of its 49.9%
stake in Alitalia S.p.A. to Air-France KLM S.A. if the carrier's
national identity is retained, various reports say citing former
Prime Minister and opposition leader Silvio Berlusconi.
"The idea of an Air France-KLM-Alitalia public company is
possible, but by maintaining Alitalia as a flagship carrier,
with its own symbol and offices around the world," the former
prime was quoted by Reuters as saying.
Mr. Berlusconi had been against a possible takeover by Air
France over Alitalia. He, however, stressed that an Italian
buyer is much preferred, Bloomberg News relates. Mr. Berlusconi
also reiterated his stand against downsizing Alitalia's
operations in Milan.
The former prime minister added that Italian may make a
temporary "sacrifice" under exceptional circumstances to save
Alitalia, Reuters relates.
As reported in the TCR-Europe on Feb. 18, 2008, Air France said
it will seek approval from the new Italian government chosen
following the April 13-14, 2008, snap elections, for any
agreement to acquire Italy stake in Alitalia. Air France
managing director Pierre Henri Gourgeon that the exclusive talks
may go beyond the April elections due to various procedural
steps.
The Forza Italia opposition party, headed by former Prime
Minister Silvio Berlusconi and seen to win the upcoming
election, said it will respect the possible sale of stake in
Alitalia to Air France if it emerges as the victor.
"If there were to be a contract already signed, it would be
respected," Renato Brunetta, deputy coordinator of Silvio
Berlusconi's Forta Italia, was quoted by Bloomberg News as
saying.
Alitalia and Air France-KLM SA have until mid-March to complete
exclusive talks and present a final binding offer to the Italian
government, which thereafter will decide whether to sell its
stake to the French carrier.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/ -- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.
ALITALIA SPA: Foreign Minister Warns of Possible Bankruptcy
-----------------------------------------------------------
Alitalia S.p.A. may succumb to bankruptcy if the talks to sell
the Italian government's 49.9% stake in the carrier to Air
France-KLM SA fails, MF-Dow Jones Newswire reports, citing
outgoing foreign minister Massimo D'Alema.
According to the report, Mr. D'Alema was commenting on remarks
of former prime minister Silvio Berlusconi -- poised to return
to power after April's snap election -- that Alitalia should be
sold to a group of Italian investors.
Alitalia and Air France-KLM SA have until mid-March to complete
exclusive talks and present a final binding offer to the Italian
government, which thereafter will decide whether to sell its
stake to the French carrier.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/ -- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
Italian Transport Minister Alessandro Bianchi has warned that
Alitalia may file for bankruptcy if the current attempt to sell
the government's 49.9% stake fails.
DAMVIC SA: Proofs of Claim Verification is Until May 7
------------------------------------------------------
Alfredo Mardikian, the court-appointed trustee for Damvic SA's
bankruptcy proceeding, verifies creditors' proofs of claim until
May 7, 2008.
Mr. Mardikian will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 7 in Buenos Aires, with the assistance of Clerk
No. 13, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Damvic 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 Damvic's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Mardikian is also in charge of administering Damvic's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Damvic SA
Esmeralda 55
Buenos Aires, Argentina
The trustee can be reached at:
Alfredo Mardikian
Avenida Cordoba 1247
Buenos Aires, Argentina
FORD MOTOR: Awards Stock of More than US$15MM to Top Executives
---------------------------------------------------------------
Ford Motor Co. granted Chief Executive Officer Alan Mullaly and
14 other executive officers a total of 2 million stock units
worth almost US$15 million and more than 6 million, two days
after the company disclosed performance bonuses for North
American employees, The Wall Street Journal reports citing U.S.
Securities and Exchange Commission filings. Stock unit value is
based on Ford's Wednesday closing price of US$6.14.
WSJ relates that Mr. Mullaly received 715,230 stock units valued
at more than US$4 million and 3.56 million stock options.
As reported in the Troubled Company Reporter on Monday, Ford
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. 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 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.
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.
FRIGORIFICO REGIONAL: Files for Reorganization in Court
-------------------------------------------------------
Frigorifico Regional General Las Heras SA has requested for
reorganization approval after failing to pay its liabilities
since Oct. 30, 2007.
The reorganization petition, once approved by the court, will
allow Frigorifico Regional to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance No. 26 in Buenos Aires. Clerk No. 52 assists the court
in this case.
The debtor can be reached at:
Frigorifico Regional General Las Heras SA
25 de Mayo 555
Buenos Aires, Argentina
GRAHAM PACKAGING: Fitch Affirms B- Issuer Default Rating
--------------------------------------------------------
Fitch Ratings affirmed Graham Packaging Company, L.P.'s Issuer
Default Rating and ratings on the senior secured credit facility
and senior subordinated notes as follows:
Graham Packaging Company, L.P and subsidiary GPC Capital Corp. I
-- IDR 'B-';
-- Senior secured revolving credit facility 'B/RR3';
-- Senior secured term loan 'B/RR3';
-- Senior subordinated notes 'CCC/RR6'.
Fitch has also revised this rating:
-- Senior unsecured notes downgraded to 'CCC/RR6' from
'CCC+/RR5'.
The Rating Outlook is Stable. Approximately US$2.5 billion of
debt is covered by the ratings.
The affirmation of Graham's 'B-' IDR and current ratings are
supported by the company's leading market shares across its
product categories, strong customer relationships, on-site
integration with many customers, investment in proprietary
technology, and favorable product packaging trends toward
plastics. Rating concerns include high leverage, weak free cash
flow, resin price volatility, customer concentration, and
moderate or declining sales growth in three out of four product
categories, as well as moderating growth in the historically
strongest food and beverage segment.
The Stable Outlook reflects the relatively steady demand in
Graham's key end markets, and the company's ability to generate
improving (though still weak) free cash flow in recent quarters.
The Recovery Ratings and notching in the debt structure reflect
Fitch's recovery expectations under a scenario in which Graham's
operating performance has been stressed, and the distressed
enterprise value is allocated to the various debt classes. The
ratings action on the senior unsecured notes was taken following
a recent update to Fitch's recovery analysis for Graham, in
which the allocation of the estimated distressed enterprise
value was modified. Previously, Fitch assumed there would be
concession payments to holders of unsecured and subordinated
debt obligations, but Fitch now estimates that concession
payments to junior noteholders are not likely given that in
Fitch's distressed scenario the senior secured bank debt would
possibly not obtain full recovery and is rated 'RR3' (estimated
51% to 70% recovery). Without concession payments, the
unsecured and subordinated classes are likely to obtain very
little, if any recovery, qualifying both classes as 'RR6'
(estimated 0% to 11% recovery). The downgrade to 'CCC' from
'CCC+' is based on Fitch's recovery methodology wherein the
notching for a debt obligation rated 'RR6' is two levels below
the IDR.
As of Sept. 30, 2007 Graham had liquidity of US$318 million
consisting of US$78.7 million of cash and US$239.3 million of
revolver availability. By Fitch calculations, LTM operating
EBITDA of US$382.5 million grew 9.6% over the fiscal year-end
2006 figure, while margin improved 162 basis points to 15.46%.
Total Debt to operating EBITDA improved to 6.6 times (x) at
Sept. 30, 2007 from 7.3x at Dec. 31, 2006. Covenant compliance
EBITDA was US$434.3 million at Sept. 30, 2007, yielding a total
leverage ratio of 5.8x.
Fitch will conduct further analysis of Graham's financial
performance when fiscal 2007 results are released in the next
few weeks.
About Graham Packaging
Based in York, Pennsylvania, Graham Packaging Company, LP,
formerly known as Graham Packaging Holdings I LP, --
http://www.grahampackaging.com/-- designs and manufactures
customized blow-molded plastic containers for branded food and
beverages, household and personal care products, and automotive
lubricants. The company has approximately 8,700 employees at 87
plants in 15 countries and 350+ production lines. Aside from
the U.S., the company has a technological center in France and
Poland. The company also has filed sales offices in Canada,
France, Argentina, Brazil, and Poland. Graham Packaging has 4
plants in Mexico.
The company has no assets, liabilities or operations other than
its direct and indirect investments in the Operating Company and
its ownership of GPC Capital Corp. II, its wholly owned
subsidiary.
MONROE 3132: Proofs of Claim Verification Deadline is May 2
-----------------------------------------------------------
Estudio Bejar, Pantin y Asoc., the court-appointed trustee for
Monroe 3132 S.A.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until May 2, 2008.
Estudio Bejar will present the validated claims in court as
individual reports on June 16, 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 Monroe 3132 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 Monroe 3132's
accounting and banking records will be submitted in court.
Estudio Bejar is also in charge of administering Monroe 3132's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Estudio Bejar, Pantin y Asoc.
Suipacha 211
Buenos Aires, Argentina
OIS SA: Proofs of Claim Verification Deadline is April 9
--------------------------------------------------------
Ana Beatriz Bravo, the court-appointed trustee for O.I.S. S.A.'s
bankruptcy proceeding, will be verifying creditors' proofs of
claim until April 9, 2008.
Ms. Bravo will present the validated claims in court as
individual reports on June 5, 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 O.I.S. 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 O.I.S.'s accounting
and banking records will be submitted in court on July 25, 2008.
Ms. Bravo is also in charge of administering O.I.S.'s assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
O.I.S. S.A.
Presidente Peron 456
Buenos Aires, Argentina
The trustee can be reached at:
Ana Beatriz Bravo
25 de Mayo 596
Buenos Aires, Argentina
SIMBOLO CIA: Trustee Will File Individual Reports on April 14
-------------------------------------------------------------
Banco Central de la Republica Argentina, Letrado Apoderado: Dr.
Antonio Juez Perez -- the court-appointed trustee for Simbolo
Cia. Financiera S.A.'s bankruptcy proceeding -- will present the
validated claims in court as individual reports in the National
Commercial Court of First Instance in San Miguel de Tucuman,
Tucuman, on April 14, 2008.
Banco Central verified creditors' proofs of claim until Feb. 22,
2008.
Mr. Trejo is also in charge of administering Simbolo Cia.'s
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Simbolo Cia. Financiera S.A.
San Martin 799, San Miguel de Tucuman
Tucuman, Argentina
The trustee can be reached at:
Banco Central de la Republica Argentina
Letrado Apoderado: Dr. Antonio Juez Perez (h)
Lamadrid 486, San Miguel de Tucuman
Tucuman, Argentina
SOLUTION PROVIDER: Proofs of Claim Verification is Until May 19
---------------------------------------------------------------
Emilio Gallego, the court-appointed trustee for Solution
Provider SRL's bankruptcy proceeding, will be verifying
creditors' proofs of claim until May 19, 2008.
Mr. Gallego will present the validated claims in court as
individual reports on June 30, 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 Solution Provider 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 Solution Provider's
accounting and banking records will be submitted in court on
Aug. 26, 2008.
Mr. Gallego is also in charge of administering Solution
Provider's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Solution Provider SRL
Alsina 943
Buenos Aires, Argentina
The trustee can be reached at:
Emilio Gallego
Esmeralda 1066
Buenos Aires, Argentina
TELECOM ARGENTINA: Telecom Italia May Take Control of Firm
----------------------------------------------------------
Telecom Italia will be able to take control of Telecom Argentina
S.A. in 2009 if it exercises call option rights for control of
Sofora Telecomunicaciones, Business News Americas reports.
BNamericas relates that Sofora Telecomunicaciones is the holding
company that controls Telecom Argentina. Telecom Italia owns
50% of Sofora, while 48% of its shares are controlled by
investment group Grupo Werthein and the remaining 2% by France
Telecom.
Argentine stock brokerage Grupo SBS analyst Mariano Kruskevich
told BNamericas that the call option Telecom Italia has is “in-
the-money and that in this case the strike price is below the
current trading price.”
Sofora Telecomunicaciones controls Telecom Argentina and Telecom
Personal through its 68% stake in Nortel Inversora, which owns
54.7% of Telecom Argentina, BNamericas states.
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 December 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's
foreign and local currency issuer default ratings to 'B+' from
'B'. Fitch said the outlook is positive.
TELECOM PERSONAL: Telecom Italia May Take Control of Firm
---------------------------------------------------------
Telecom Italia will be able to take control of Telecom Personal
SA in 2009 if it exercises call option rights for control of
Sofora Telecomunicaciones, Business News Americas reports.
BNamericas relates that Sofora Telecomunicaciones is the holding
company controlling Telecom Personal. Telecom Italia owns 50%
of Sofora, while 48% of its shares are controlled by investment
group Grupo Werthein and the remaining 2% by France Telecom.
Argentine stock brokerage Grupo SBS analyst Mariano Kruskevich
told BNamericas that the call option Telecom Italia has is “in-
the-money and that in this case the strike price is below the
current trading price.”
Sofora Telecomunicaciones controls Telecom Argentina and Telecom
Personal through its 68% stake in Nortel Inversora, which owns
54.7% of Telecom Argentina, BNamericas states.
Headquartered in Buenos Aires, Telecom Personal SA --
http://www.personal.com.ar/-- is the wireless provider of
incumbent operator Telecom Argentina, providing services in
Argentina and Paraguay over a GSM network. The company has 11.7
million users, 10.2 million in Argentina, representing an
estimated 30% market share, as of Sept. 30, 2007. For the LTM
ended Sept. 30, 2007, revenues and EBITDA accounted for ARS5.4
billion and ARS1.2 billion, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Fitch Ratings upgraded Telecom Personal's foreign
and local currency issuer default ratings to 'B+' from 'B'.
Fitch said the outlook is positive.
TELECOM PERSONAL: Earns ARS370 Million in 2007
----------------------------------------------
Telecom Personal SA's net profit increased 497% to
ARS370 million in 2007, compared to ARS62 million in 2006.
Business News Americas relates that Telecom Personal's revenue
rose 34% to ARS5.79 billion in 2007, from ARS4.33 billion in
2006.
According to BNamericas, Telecom Personal's investments
increased 3% to ARS649 million in 2007, from 2006, mainly to
increase capacity of its GSM network as well as to launch 3G
services. Investment in Argentina totaled ARS553 million while
investment in Paraguay was ARS96 million.
BNamericas relates that Telecom Personal's client base in
Argentina and Paraguay rose 28% to 12.3 million in 2007,
compared to 2006. Its Argentine clients grew 27% to 10.7
million -- 66% of them were prepaid subscribers.
Telecom Argentina Chief Operating Officer Marco Patuano said in
a conference call, "We have been able to keep the contribution
of the postpaid customers at the same level as 2006."
Telecom Personal's Paraguayan unit Nucleo had 1.6 million users
-- 90% prepaid clients and 10% postpaid customers -- in 2007,
about 40% more than 2006, BNamericas says.
Telecom Personal's average revenue per unit in Argentina was
ARS39 in 2007, almost flat compared to 2006, while in Paraguay
its average revenue per unit dropped 26% to US$7, BNamericas
relates.
Revenues from value added services represented 27% of total
service revenues last year, BNamericas states, citing Mr.
Patuano.
Headquartered in Buenos Aires, Telecom Personal SA --
http://www.personal.com.ar/-- is the wireless provider of
incumbent operator Telecom Argentina, providing services in
Argentina and Paraguay over a GSM network. The company has 11.7
million users, 10.2 million in Argentina, representing an
estimated 30% market share, as of Sept. 30, 2007. For the LTM
ended Sept. 30, 2007, revenues and EBITDA accounted for ARS5.4
billion and ARS1.2 billon, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Fitch Ratings Service upgraded Telecom Personal
SA's foreign and local currency issuer default ratings to 'B+'
from 'B'. Fitch said the outlook is positive.
TENNECO INC: Inks Purchase Agreement with Delphi Automotive
-----------------------------------------------------------
Tenneco Inc. has entered into a purchase agreement with Delphi
Automotive Systems LLC to acquire certain ride control assets
and inventory at Delphi’s Kettering, Ohio facility. This
purchase agreement has been filed with the bankruptcy court as
part of Delphi’s bankruptcy court proceedings.
The closing of this purchase is subject to certain closing
conditions, including bankruptcy court approval.
As part of the purchase agreement, Tenneco would pay
approximately US$10 million for existing ride control components
inventory and approximately US$9 million for certain machinery
and equipment. Tenneco would also lease a portion of the
Kettering facility from Delphi.
In connection with the purchase agreement, Tenneco has entered
into an agreement with the International Union of Electrical
Workers, which represents the Delphi workforce at the Kettering
plant. The agreement was ratified by the IUE’s rank and file in
August 2007.
Tenneco has also entered into a long-term supply agreement with
General Motors Corporation to continue to supply passenger car
shock and strut business to General Motors from the Kettering
facility.
About Tenneco
Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) --
http://www.tenneco.com/-- manufactures automotive ride and
emissions control products and systems for both the original
equipment market and aftermarket. Brands include Monroe(R),
Rancho(R), and Fric Rot ride control products and Walker(R) and
Gillet emission control products. The company has operations in
Argentina, Japan, and Germany, with its European operations
headquartered in Brussels, Belgium. The company has
approximately 21,000 employees worldwide.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 6, 2007, Fitch Ratings assigned a rating of 'BB-' to
Tenneco Inc.'s new senior unsecured notes due 2015. The new
notes replace a portion of the company's existing US$475 million
in 10.25% senior secured second-lien notes for which the company
is tendering. Fitch said the rating outlook is positive.
=============
B A H A M A S
=============
HARRAH'S ENETERTAINMENT: Pulls Out of Bahamas Resort Deal
---------------------------------------------------------
Harrah's Entertainment Inc. has withdrawn from an over
US$2 billion, six-hotel resort deal in Bahamas because it has
taken too long to organize, David Mcfadden at the Associated
Press reports.
The report relates that Harrah's Entertainment had agreed to
team up with developer Baha Mar Resorts Ltd. and Starwood Hotels
& Resorts Worldwide to build a mega-resort along Nassau's famed
Cable Beach. The joint venture called for 57 percent to be
owned by Baha Mar Resorts and 43 percent by a Harrah's unit,
effective on confirmation by the Bahamian government of certain
required approvals and concessions.
The planned resort will be situated in a 1,000-acre beachfront
site that included an investment of over US$2 billion in its
initial phase, with an expected work force of about 10,000
people upon its completion in 2011.
However, plans for the complex have stalled, AP says, citing
Harrah's Entertainment.
Harrah's Entertainment said, "Unfortunately, it has taken Baha
Mar Development Company longer to organize the project than
anticipated and circumstances have changed such that it is
simply not prudent to move forward."
Baha Mar told AP that it was committed to proceeding with the
project and that Harrah Entertainment's withdrawal from the deal
was a “breach of faith.”
According to AP, Baha Mar challenged Harrah's Entertainment's
ability to "unilaterally terminate the arrangements." Baha Mar
said, "We hope they will reconsider their action before they
cause harm to both Baha Mar and the Bahamas."
"We were of the view that the project was going as scheduled.
This will definitely have an impact on our work force, and I'm
getting many calls from people trying to figure out what is
happening here," Bahamas Hotel Managerial Association's head
Obie Ferguson told AP.
Headquartered in Las Vegas, Nevada, Harrah's Entertainment
Inc.(NYSE: HET) -- http://www.harrahs.com/-- through its wholly
owned subsidiary Harrah's Operating Company Inc., provides
branded casino entertainment. Since its beginning in Reno,
Nevada 70 years ago, Harrah's has grown through development of
new properties, expansions and acquisitions, and now owns or
manages casinos on four continents. The company's properties
operate primarily under the Harrah's(R), Caesars(R) and
Horseshoe(R) brand names; Harrah's also owns the London Clubs
International family of casinos. In January 2007, it signed a
joint venture agreement with Baha Mar Resorts Ltd. to operate a
resort in Bahamas.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 21, 2008, Standard & Poor's Ratings Services lowered its
ratings on Harrah's Entertainment Inc. and its wholly owned
subsidiary, Harrah's Operating Co. Inc. The corporate credit
rating on each entity was lowered to 'B+' from 'BB'. In
addition, S&P's senior unsecured and subordinated debt ratings
on approximately US$4.6 billion of existing notes, which will be
rolled over as part of the transaction, were both lowered to
'B-', from 'BB' and 'B+'. The ratings were removed from
CreditWatch, where they were placed with negative implications
on Oct. 2, 2006. The rating outlook is stable.
KNOLL INC: Adopts Trading Plan for Expanded Repurchase Program
--------------------------------------------------------------
Knoll Inc. adopted a written trading plan under Rule 10b5-1 of
the Securities Exchange Act of 1934 on March 6, 2008, to
facilitate purchases during the months of March and April 2008,
under its expanded repurchase program disclosed in February
2008.
Under the Company 10b5-1 Plan, Banc of America Securities LLC
will have the authority to repurchase up to an aggregate of
approximately US$10 million worth of Knoll common stock on
behalf of the company during the period. The Company 10b5-1
Plan does not require that any shares be purchased, and there
can be no assurance that any shares will be purchased.
Purchases may be made under the Company 10b5-1 Plan beginning
March 7, 2008. The Share Repurchase Plan will continue to be in
effect after the expiration of the Company 10b5-1 Plan, which
expires on the earlier of April 21, 2008, or the date on which
purchases are completed.
A 10b5-1 plan allows the company to repurchase shares at times
when it would ordinarily not be in the market because of the
company's trading policies or the possession of material non-
public information.
About Knoll
Based in East, Greenville, Pennsylvania, Knoll Inc. (NYSE:KNL)
-- http://www.knoll.com/-- designs and manufactures office
furniture products and textiles. Knoll offers a portfolio of
office furniture, textiles and leather across five product
categories: office systems, which are typically modular and
moveable workspaces with functionally integrated panels, work
surfaces, desk components, pedestal and other storage units,
power and data systems and lighting; specialty products,
including high-image side chairs, sofas, desks and tables for
the office and home, textiles, accessories and leathers and
related products; seating; files and storage, and desks,
casegoods and tables. The company sells its products primarily
in North America. In October 2007, Knoll Inc. completed the
acquisition of Teddy and Arthur Edelman, Limited.
The company has locations in Argentina, Australia, Bahamas,
Cayman Islands, China, Colombia, Denmark, Finland, Greece, Hong
Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines,
Poland, Portugal and Singapore, among others.
* * *
Standard & Poor's placed Knoll Inc.'s long-term foreign and
local issuer credit ratings at 'BB' in July 2006. The rating
still holds to date with a stable outlook.
=============
B E R M U D A
=============
ALEA GROUP: Posts US$78.2 Million Net Loss in Year Ended Dec. 31
----------------------------------------------------------------
Alea Group Holdings (Bermuda) Ltd. posted a net loss of
US$78.2 million on net revenues of US$94.4 million for the year
ended Dec. 31, 2007, compared to a net loss of US$0.8 million on
net revenues of US$310.7 million in 2006.
The company's insurance contracts liabilities decreased by 20.2%
from US$1,941.5 million at Dec. 31, 2006 to US$1,549.9 million
at Dec. 31, 2007.
Investment income of US$73.1 million reflecting a decrease in
invested assets as cash is used for claims payments and
commutations.
Other operating expenses for 2007 were US$59.7 million, which
includes US$11.9 million of one-time transaction related
expenses, which on a per share basis was US$0.07.
Subsequent to Dec. 31, 2007, the company repaid all of its
outstanding bank loans. Staff headcount reduced to 105 as at
Dec. 31, 2007 down from 137 as at Dec. 31, 2006.
Directorate Changes & Corporate Actions
Several events in 2007 resulted in a significant change in both
the ownership and Alea Group's Board of Directors. Following
the acquisition by FIN Acquisition Limited of approximately 67%
of the Company's shares in issue, on July 6, 2007, the company
announced the resignation of each of John Reeve, Timothy Faries,
James Fisher, Todd Fisher, Perry Golkin, R. Glenn Hilliard, and
Scott Nuttall as directors of the company with effect from
July 5, 2007. The company further announced the appointment of
Robert Kauffman, Randal Nardone and Greg Share as non-executive
directors of the Company with simultaneous effect. Mr Kauffman
was also appointed Chairman of the Board.
On July 10, 2007, the company announced the conversion of the
currency in which the company's shares trade on the London Stock
Exchange from pounds sterling to US dollars. On July 18, 2007,
the Group announced it had posted a circular to its shareholders
relating to the conversion of the Company's listing on the
Official List of the UK Listing Authority from a primary listing
to a secondary listing, with an effective date of Aug. 16, 2007.
On July 23, 2007, FIN Acquisition Limited announced it had
closed to further acceptances on July 20, 2007, its recommended
cash offer to acquire the shares of Alea Group, which increased
its ownership to 72.4%.
Dividend
The company has not proposed a dividend for the 2007 financial
year.
About Alea Group
Alea Group Holdings (Bermuda) Ltd. is a global provider of
insurance and reinsurance products and services, Alea Group
faced a tough year in 2005. With catastrophes such as
Hurricanes Katrina and Rita in the US and flooding in Europe
greatly affecting the company, Alea decided to run off its
property/casualty business. It has already sold or runoff some
of its lines, including its European property/casualty treaty
portfolio and Alea Alternative Risk. Headquartered in Bermuda,
the company has additional offices in Australia, Europe, and
North America. Investment firm Kohlberg Kravis Roberts & Co.
holds a nearly 40% stake in the company. Fortress Investment
Group has announced it intends to buy Alea for US$320 million.
* * *
On Feb. 1, 2006, A.M. Best Co. downgraded the financial strength
rating to B from B++ and the issuer credit rating to "bb" from
"bbb" of the insurance and reinsurance operating subsidiaries of
Alea Group Holdings (Bermuda) Ltd. (collectively referred to as
Alea Group or Alea).
Subsequently, A.M. Best withdrew all ratings and assigned an
NR-4 (Company Request) to the Alea Group companies.
The downgrade followed significant deterioration in the
company's consolidated risk-adjusted capitalization as a result
of worse than anticipated performance in 2005 due to run-off
charges, catastrophe losses and further adverse reserve
development. A.M. Best believed that the company is likely to
continue to be affected by high expenses related to the
transition of Alea Group into run off and the continuing
possibility of adverse reserve development.
===========
B R A Z I L
===========
AMAZONIA CELLULAR: Moody's Lifts US$120-Mln Notes Rating to Ba3
---------------------------------------------------------------
Moody's Investors Service upgraded the foreign currency rating
of the US$120 million in senior unsecured notes units due 2009
issued by Amazonia Celular S.A. and Telemig Celular S.A. to Ba3
from B2. The rating outlook is now positive. This action
concludes the review initiated on Aug. 7, 2007, begun at the
time the acquisition of the issuers was announced.
The rating action follows the approval by industry regulator
Anatel of the acquisition of Amazonia by Telemar Norte Leste
S.A. (Telemar; Baa2/outlook stable), and reflects Moody's
expectation that Amazonia will benefit from the stronger credit
profile of its new controlling shareholder.
The Ba3 rating assigned to the notes units is based on the
credit quality of Amazonia because 1/3 of the debt service of
the notes units depends on payments from Amazonia and are not
guaranteed by Telemig, which has a stronger credit profile. The
rating assumes that both Telemig and Amazonia will continue to
exist as individual entities and anticipates a reasonable level
of financial and operational support from their respective
shareholders. The debt rating is not constrained by Brazil's
sovereign ceiling for foreign currency bonds and notes of Baa3.
The rating is constrained by Amazonia's exposure to an intense
competitive environment in the company's concession area that
has gradually eroded its market share. The unfavorable
demographics and lack of population density in its extensive
concession area also limit the rating. Free cash flow is
currently positive (16% of total adjusted debt; total adjusted
debt includes derivatives, pension fund obligations, leases and
financial obligations with Telemig), but is likely to turn
negative in the coming years due to higher capex to deploy 3G
services and improve network quality. Amazonia's considerable
refinancing risk deriving from the relatively high amount of
short term debt maturities, including the maturity of the rated
bonds in January 2009, is somewhat mitigated by expected support
from the new controlling shareholder, Telemar. As of Dec. 31,
2007, Amazonia had cash of BRL30 million, last twelve month free
cash flow of BRL48 million, short term debt of BRL98 million and
the January 2009 maturity of the rated notes and related
derivatives transactions, currently totaling BRL117 million.
Fitch expects that Telemar will be supportive in securing the
funds necessary to refinance Amazonia's debt maturities.
As part of Telemar, the largest telecommunications company in
Brazil by revenues, Fitch expects Amazonia will be able to
dilute fixed expenses and better negotiate the cost of equipment
and handsets. The positive outlook incorporates likely synergy
gains favoring both margins and cash flows of Amazonia over the
next few quarters, as the integration process with Telemar
materializes.
The rating could be upgraded if there is further evidence of
explicit support from Telemar to Amazonia.
Headquartered in Belem, Brazil, Amazonia Celular SA provides
mobile communications services in the states of Maranhao, Para,
Amazonas, Amapa and Roraima in the northern region of Brazil.
With 1.4 million subscribers and a 20% market share in its
concession area as of Dec. 31, 2007, Amazonia reported net
revenues of BRL487 million (about US$285 million) in 2007.
AMBAC FINANCIAL: Prices US$1 Bln Public Offering of Common Stock
----------------------------------------------------------------
Ambac Financial Group Inc. priced its US$1.155 billion public
offering of 171,111,111 shares of common stock, par value
US$0.01 per share, at US$6.75 per share and has granted the
underwriters a 30-day option to purchase up to an additional
25,666,667 shares of common stock to cover over-allotments, if
any.
In addition, Ambac concurrently priced its US$250 million public
offering of 5 million equity units, with a stated amount of
US$50 per unit. The equity units carry a total distribution
rate of 9.5%. The threshold appreciation price of the equity
units is US$7.97 which represents a premium of approximately 18%
over the concurrent public offering price of Ambac's common
stock of
US$6.75 per share. Ambac has granted the underwriters a 13-day
option to purchase up to an additional 750,000 equity units to
cover over-allotments, if any.
Ambac also placed 14,074,074 shares of common stock in a private
placement for US$95 million with two financial institutions.
"With this US$1.5 billion capital raise and our other capital
strengthening actions and risk management initiatives, we
believe that our Ambac Assurance subsidiary will maintain its
triple-A financial strength ratings with Moody's and Standard &
Poor's," Michael Callen, Chairman and CEO of Ambac Financial
Group, commented that. "This is a most important step in
restoring the confidence of our customers in the stability of
our ratings and our inherent financial strength."
Ambac intends to contribute the net proceeds from these
offerings to its insurance company subsidiary Ambac Assurance
Corporation in order to increase its capital position, less
approximately US$100 million, which it intends to retain at
Ambac to provide incremental holding company liquidity to pay
principal and interest on its indebtedness, to pay its operating
expenses and to pay dividends on its capital stock.
Proceeds from the settlement of the purchase contracts forming a
part of the equity units, in May 2011, will be used to repay
US$142.5 million of the company's debt maturing Aug. 1, 2011, to
the extent that the cash proceeds of such settlement are
sufficient for such repayment. The remaining proceeds will be
retained at Ambac. Proceeds from the settlement of the purchase
contracts will not be used to repurchase common stock.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets
Inc., Banc of America Securities LLC and UBS Investment Bank are
acting as joint book-running managers, and Keefe, Bruyette &
Woods Inc., Dresdner, Kleinwort Securities LLC, BNY Capital
Markets Inc. and KeyBanc Capital Markets Inc. are acting as co-
managers, for the common stock offering.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets
Inc., Banc of America Securities LLC and UBS Investment Bank are
acting as joint book-running managers, and Keefe, Bruyette &
Woods Inc. is also acting as a co-manager, for the equity units
offering. Sandler O'Neill + Partners L.P. served as independent
financial advisor to Ambac with respect to these offerings.
Copies of the prospectus supplements and the accompanying base
prospectuses relating to these offerings may be obtained from:
-- Credit Suisse Securities (USA) LLC
Eleven Madison Avenue
New York, NY 10004
Tel (800) 221-1037
Fax (212) 325-8057
-- Citigroup Global Markets Inc.
Brooklyn Army Terminal
8th Floor, 140 58th Street
Brooklyn, NY 11220
Tel (718) 765-6732
Fax (718) 765-6734
-- Banc of America Securities LLC
Capital Markets Operations
3rd Floor, 100 West 33rd Street
New York, NY 10001
Tel (800) 294-1322
E-mail dg.prospectus_distribution@bofasecurities.com
-- UBS Investment Bank
Attn: Prospectus Department
299 Park Avenue
New York, NY 10171
Tel (888) 827-7275
About Ambac Financial
Based in New York City, Ambac Financial Group, Inc. is a holding
company whose affiliates provide financial guarantees and
financial services to clients in both the public and private
sectors around the world. The company has operation in Brazil.
For the nine months ended Sept. 30, 2007, Ambac reported net
income of US$26 million. As of Sept. 30, 2007, Ambac had
shareholders' equity of approximately US$5.65 billion.
* * *
On Jan. 18, Fitch Ratings downgraded Ambac to double-A after the
insurer put off plans to raise equity capital.
As reported in the Troubled company Reporter on Feb. 25, 2008,
Fitch Ratings downgraded AbitibiBowater Inc. and subsidiaries
as: Abitibi-Consolidated Inc.; IDR to 'CCC' from 'B-'; senior
unsecured debt to 'CCC/RR4 from 'B-/RR4'; secured revolver to
'CCC+/RR3' from 'B/RR3'. Bowater Incorporated; IDR to 'CCC'
from 'B-'; senior unsecured debt to 'CCC/RR4' from 'B-/RR4';
secured revolver to 'B/RR1' from 'BB-/RR1'. Bowater Canadian
Forest Products Inc.; IDR to 'CCC' from 'B-'; senior unsecured
debt to 'B-/RR2' from 'B+/RR2; secured revolver to 'B/RR1' from
'BB-/RR1'. All ratings have been placed on rating watch
negative.
BANCO BMG: Moody's Rates ST Note Programme & LT Senior Notes Ba1
----------------------------------------------------------------
Moody's Investors Service assigned long and short-term foreign
currency ratings of Ba1 and Not Prime, respectively, to Banco
BMG S.A.'s US$1,000,000,000 Short-Term Note Programme. Moody's
also assigned a Ba1 long-term foreign currency debt rating to
the senior unsecured notes due March 2010 issued under the
program in the amount of US$250,000,000. The outlook on the
ratings is stable.
These ratings were assigned to Banco BMG SA:
-- US$1 billion STN Programme: Long and short-term foreign-
currency rating of Ba1/Not Prime, stable outlook.
-- US$250 million 2-year Senior Unsecured Notes: Long-term
foreign currency debt rating of Ba1, stable outlook.
Headquartered in Minas Gerais, Brazil, Banco BMG is the banking
arm of Grupo BMG, which also has real estate, food manufacturing
and agro industry holdings. It also offers leasing and asset
management services. Banco BMG had BRL6.60 billion
(approximately US$3.86 billion) in total assets and
BRL1.33 billion in equity (US$778 million) as of year-end 2007.
BANCO BMG: Raises US$250 Million From Two-Year Bond Issue
---------------------------------------------------------
Banco BMG has raised some US$250 million from a two-year bond
issue on the Luxembourg stock exchange.
As reported in the Troubled Company Reporter-Latin America on
March 7, 2008, Banco BMG wanted to raise at least US$100 million
from the two-year bond issue. The offering closed this week,
with U.S. investment bank BCP Securities handling the sale. The
notes will mature in March 2010 and will pay a fixed coupon of
7%. Banco BMG said it would decide by July whether or not to
conduct an initial public offering on the Sao Paulo stock
exchange Bovespa.
Banco BMG Chief Financial Officer Ricardo Gelbaum commented to
Business News Americas, "Two weeks ago, we went on a non-deal
road show and although the market was on edge, we saw it was in
need of short-term issues backed by high-quality assets."
Mr. Gelbaum further told BNamericas that the overall demand for
the bond was 20% above the US$250 million eventually placed,
with 52% of investors from the U.S., 23% from Europe, 18% from
Latin America -- Chile, Mexico, Peru and Brazil -- and 7% from
Asia.
Banco BMG will use all of the money raised to pay for increased
payroll loans, BNamericas says, citing Mr. Gelbaum.
According to BNamericas, Banco BMG expanded its loan book by
44.5% to BRL12.5 billion in 2007, generating BRL6.13 billion in
new loans with BRL4.02 billion going to new payroll and
retirement loans.
Moody's Investors Service Vice President and Senior Analyst
Ceres Lisboa commented to BNamericas, "The recent two-year bond
issue by BMG seems to show there is a relative window of
opportunity, principally with investors interested in medium-
term notes. This is certainly good news in the area of funding
alternatives for mid-size banks. Our expectations, however, are
for investors to remain selective in their appetite for risks."
Moody's gave the US$250 million debt a long-term foreign
currency debt rating of Ba1.
Banco BMG is the banking arm of Grupo BMG, which also has real
estate, food manufacturing and agro industry holdings. The bank
is a niche player focused on loans to civil servants, with
repayments taken monthly from payrolls. BMG operates mainly
through in-house representatives in state companies. It also
offers leasing and asset management services.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 26, 2007, Standard & Poor's Ratings Services raised its
long-term counterparty credit rating on Banco BMG S.A. to 'BB-'
from 'B+'. The rating was removed from CreditWatch Positive
where it was placed June 11, 2007. S&P said the outlook is
stable.
On March 10, 2008, Moody's Investors Rating gave Banco BMG's
US$250 million issue a Ba1 long-term foreign currency debt
rating with a stable outlook and the bank's US$1 billion note
program a Ba1 long-term foreign currency rating with a stable
outlook and a Not Prime short-term foreign currency rating.
BANCO DO BRASIL: Concludes US$250MM Six-Year Flow Securitization
----------------------------------------------------------------
Banco do Brasil's International Director Sandro Kohler Marcondes
told Business News Americas that the bank has concluded a
US$250 million, six-year future flow securitization with a
coupon equal to three-month Libor plus 55 basis points.
Banco do Brasil will use the money for export financing for mid-
sized firms and will consider more issues abroad this year to
help satisfy the growing demand for credit in Brazil, BNamericas
says, citing Mr. Marcondes.
According to BNamericas, BNP Paribas was the placement agent.
Moody's Vice President and senior analyst Ceres Lisboa commented
to BNamericas, "Big banks, which are frequent issuers on the
international market, can have relatively easy access to
investors. The recent future flow securitizations by BB [Banco
do Brasil] and Bradesco certainly gives them access to funding
at longer terms, complementing their solid base of cheap and
recurring deposits."
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and more than 7,000
points of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Feb. 29, 2008, Moody's Investors Rating Service assigned a
Ba2 foreign currency deposit rating to Banco do Brasil.
BANCO NACIONAL: Okays BRL7.1 Mil. Financing to HUCFF Annex
----------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
approved a BRL7.1 million financial support for the construction
of an outpatient care center annex to Hospital Universitario
Clementino Fraga Filho, assistencial arm of Universidade Federal
do Rio de Janeiro linked to the Ministry of Education and to
Sistema Unico de Saude [Single Health System]. The resources,
originated from BNDES Social Fund, not refundable, shall be used
to assist hematological and oncological outpatients, as well as
those who suffer from sickle cell anemia. Further to this unit,
investments shall be carried out for installation of an
additional six beds in the bone marrow transplantation unit
currently existing at HUCFF.
The contract for financial support to the project was signed on
March 7, by BNDES president, Luciano Coutinho, and by the
general director of HUCFF, Alexandre Pinto Cardoso, as part of
the commemorations for the 30 years of foundation of HUCFF.
The implementation of the new outpatient unit shall allow
increased productivity in the areas of hematology and oncology,
reduced hospital internments, integration of health teams and
better conditions for capturing funds for clinical researches.
The project should further contribute for academic formation.
The new facilities will enable a 22% increase in the number of
beds for bone marrow transplantations in the State of Rio de
Janeiro, allowing a 55% increase of the capacity to carry out
such kind of transplantation at HUCFF, until 2010.
The new outpatient unit shall operate on an integrated basis
with the bone marrow transplantation unit and shall be
complementary to the operations of Rede BrasilCord (umbilical
cord and placentary blood bank), under the coordination of
Instituto Nacional do Cancer [National Institute of Cancer].
Both, HUCFF bone marrow transplantation unit and umbilical cord
and placentary blood bank), were projects supported by BNDES.
The first one received a BRL4.8 million financing, in 2000. The
second one was contracted in 2006, for the amount of
BRL27 million.
The outpatient unit shall be installed in:
* a two-floor building with eleven clinic consultation rooms,
with capacity to assist around 265 patients per day;
* clinic hematology laboratory for collection and tests;
* outpatient chemotherapy;
* day-care services, with two physician’s offices, 12
armchairs and two stretchers for assistance after bone
marrow transplantation and high complexity chemotherapy
treatment;
* a group of rooms for manipulation and preparation of
chemotherapy medications;
* room for specialized dentistry care for patients
under chemotherapy treatment;
* room for invasive clinical procedures; and
* a clinical research room, besides rooms for hematology and
oncology service instructors and physicians.
HUCFF – The hospital carries out over 108 thousand specialized
interventions per year and 10 thousand high complexity
procedures, with an average ratio of 75% occupation rate.
Adding teaching, research and services provided, in 2007,
HUCFF surpassed the mark of outpatient consultations recorded in
2006, assisting over 20,900 patients in its 49 medical
specialties. Among the high complexity procedures (organ
transplantations, stem cell therapies, bariatric surgeries,
etc), the number surpassed 10 thousand, a result much higher
than target, slightly above 7 thousand.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services. The ratings were assigned in August and May
2007.
COMPANHIA ENERGETICA: Will Auction Shares on March 26
-----------------------------------------------------
Companhia Energetica de Sao Paulo will auction seven million
preferred and 85.9 million ordinary shares in the company on
March 26, 2008, Business News Americas reports.
Tractebel Energia Chief Financial Officer Marc Verstraete said
in a Web cast that the company is considering competing in the
auction.
Mr. Verstraete commented to BNamericas, "I cannot say much about
our participation, but I can say we are studying the company
full time. We are currently in the due diligence process to
create a model to take part in the auction."
Once Tractebel Energia decides to bid for the shares, it will do
so with partners and without the help of its controlling
shareholder Suez, BNamericas says, citing Mr. Verstraete.
"We would not bid alone for Cesp [Companhia Energetica]. We
need partners in order to mitigate risks as Cesp owns generation
assets with concession expiring in 2015," Mr. Verstraete told
BNamericas.
About Tractebel Energia
Tractebel Energia SA is an electric energy generation company in
Brazil. The company supplies 5,860 megawatts of power from its
operations at 13 plants located in the states of Parana, Santa
Catarina, Rio Grande do Sul, Matto Grosso do Sul and Goias. Its
principal clients are distributors of electricity and industry
across Brazil. In addition to the sale of electric energy,
Tractebel Energia further offers services in the monitoring of
energy quality, the operation and maintenance of generation
equipment, co-generation, steam generation, the change of
voltage in connection equipment to networks and the sale of
energy surpluses.
About Companhia Energetica
Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao
Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third
largest power generator, majority owned by the State of Sao
Paulo. It operates 6 hydroelectric plants with total installed
capacity of 7,456 MW and 3,916 MW of assured energy. The
company reported net revenues of BRL1,983 million in the last
twelve months through Sept. 30, 2006.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 10, 2007, Standard & Poor's Ratings Services raised its
ratings on electricity generator Companhia Energetica de Sao
Paulo, including its corporate credit rating to 'B' from 'B-'.
At the same time, S&P raised its Brazil national scale ratings
on CESP to 'brBBB-' from 'brBB'. S&P said the outlook remains
positive on both scales.
COMPANHIA SIDERURGICA: Net Income Up 150% to BRL2.9 Bil. in 2007
----------------------------------------------------------------
Companhia Siderurgica Nacional has reported its results for the
fourth quarter of 2007.
-- The company reported a net income of BRL2.9 billion in
2007, a new annual record and 150% more than in 2006.
-- Annual steel product sales volume stood at 5.4 million
tons, 23% more than in 2006 and also company record. In
the 2007 fourth quarter alone, sales volume totaled 1.4
million tons, 18% up year-on-year.
-- Net revenue reached an impressive BRL11.4 billion in 2007,
27% more than in 2006 and yet another record.
-- Annual EBITDA stood at BRL4.9 billion, 54% up on the year
before 2006. Once again, this was the company's highest
ever EBITDA figure.
-- Companhia Siderurgica's shares recorded annual
appreciation of 157%, the highest upside of all the
companies making up the Ibovespa Index. Its ADRs recorded
an even more substantial upturn of 216%, the highest
figure among all the Latin American firms traded on the
NYSE.
-- Annual crude steel production totaled more than 5.3
million tons, 52% up on 2006.
-- In 2007, the company and its subsidiary NAMISA produced
and acquired from third parties more than 21 million
tons of iron ore. Iron ore sales totaled 10.5 million
tons in Brazil and abroad, in addition to the 7.1 million
tons consumed internally by the Presidente Vargas
Steelworks.
-- The net debt/EBITDA ratio, based on EBITDA in the last 12
months, continued to decline, falling from 1.74 in
December 2006, to 0.99 at the close of 2007. In monetary
terms, the net debt fell by 28%, from BRL6.7 billion to
BRL4.8 billion.
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets, tin
mill products and tinplate. The company also runs its own iron
ore, manganese, limestone and dolomite mines and has strategic
investments in railroad companies and power supply projects.
The group also operates in Brazil, Portugal and the U.S.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services revised its
outlook on Brazil-based steel maker Companhia Siderurgica
Nacional and related entity National Steel S.A. to positive from
stable. At the same time, S&P affirmed its 'BB' corporate
credit rating on Companhia Siderurgica and its 'B+' rating on
National Steel.
DELPHI CORP: Realigns Stake in Japanese & Hungarian Ventures
------------------------------------------------------------
As part of its restructuring efforts to reduce its compressor
business cost structure and strengthen its global footprint,
Delphi Corp. realigned its share holdings in two compressor
joint ventures with Japan-based Calsonic Kansei Corporation.
Delphi purchased the remaining 10% venture shares from Calsonic
Kansei Europe plc in Delphi Calsonic Hungary Ltd., and sold its
remaining 49% shares in its Japan-based venture, Calsonic
Harrison Co., Ltd. to Calsonic Kansei. The dissolution of the
two joint ventures will help the company to become more focused
and cost competitive on a global basis.
"We have enjoyed a long-running relationship with Calsonic
Kansei, which has allowed us to provide customers with the very
best advanced solutions for their compressor needs," said Ron
Pirtle, Delphi Thermal Systems President. "Delphi has recently
expanded its compressor footprint in Mexico and has a planned
plant opening in China this year. This expansion, coupled with
the announcement of our Hungary plant, well positions Delphi to
serve the needs of the local markets and meet increasing
customer demand."
The Hungary-based venture is located in Balassagyarmat and
manufactures compact variable compressors. Customers,
suppliers, employees and other parties associated with the plant
will not be impacted by the share purchase.
Delphi formed its first joint venture with Calsonic Kansei in
Japan in 1986 and created its joint venture in Hungary in 1999.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries. 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.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of
vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than
75 million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.
(Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2008, Moody's Investors Service assigned ratings to
Delphi Corporation for the company's financing for emergence
from Chapter 11 bankruptcy protection: Corporate Family Rating
of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and
US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a
Speculative Grade Liquidity rating of SGL-2 representing good
liquidity was assigned. The outlook is stable.
As reported in the Troubled Company Reporter on Jan. 11, 2008,
Standard & Poor's Ratings Services expects to assign its 'B'
corporate credit rating to Troy, Michigan-based automotive
supplier Delphi Corp. upon the company's emergence from Chapter
11 bankruptcy protection, which may occur by the end of the
first quarter of 2008. S&P expects the outlook to be negative.
In addition, Standard & Poor's expects to assign these
issue-level ratings: a 'B+' issue rating (one notch above the
corporate credit rating), and '2' recovery rating to the
company's proposed US$3.7 billion senior secured first-lien term
loan; and a 'B-' issue rating (one notch below the corporate
creditrating), and '5' recovery rating to the company's proposed
US$825 million senior secured second-lien term loan.
DELPHI CORP: Re-Launches Exit Financing to Include GM, Affiliate
----------------------------------------------------------------
Delphi Corp. will be relaunching its exit financing structure,
which will include participation from General Motors Corp., as
well as a new commitment from an affiliate of GM, to also
support the company's planned emergence from Chapter 11
reorganization. The company will host a conference call for
potential lenders today, March 11, 2008, to discuss the
company's exit financing and related timetable. The proposed
exit facilities are being arranged on a best efforts basis by
J.P. Morgan Securities, Inc., and Citigroup Global Markets,
Inc., in accordance with prior orders entered by the United
States Bankruptcy Court for the Southern District of New York.
As reported in the Troubled Company Reporter on March 6, 2008,
the company's US$6.1 billion exit financing package includes a
US$1.6 billion asset-backed revolving credit facility, at least
US$1.7 billion of first-lien term loan, an up to US$2.0 billion
first-lien term note to be issued to an affiliate of GM (junior
to the US$1.7 billion first-lien term loan), and an US$825
million second-lien term loan, of which any unsold portion would
be issued to GM and its affiliates consistent with the terms of
the company's Investment Agreement with its plan investors.
On March 7, 2008, because certain of Delphi's plan investors had
advised the company that they believed the proposed exit
financing, including GM's increased participation, would not
comply with the Investment Agreement, Delphi presented a motion
in the Bankruptcy Court under section 1142 of the Bankruptcy
Code which permits the Court to consider matters and issue
orders in furtherance of a confirmed plan of reorganization.
At the hearing, during which the Court did not grant the
specific relief sought by the company, the Court said that while
GM could not directly provide incremental exit financing to
Delphi without the consent of the plan investors, the
prohibition against additional agreements with GM did not extend
to incremental financing provided through GM subsidiaries or
pursuant to certain other structures. In its ruling, the
Bankruptcy Court also observed that the company had been given
sufficient guidance by the Court to proceed to seek exit
financing on terms that are potentially achievable. Although
certain of the Investors continue to object to the proposed exit
financing, Delphi believes its proposed exit financing is
consistent with the Court's guidance and previously issued
confirmation order and will be moving forward with the
syndication efforts to raise
US$6.1 billion in financing.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries. 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.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of
vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than
75 million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.
(Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2008, Moody's Investors Service assigned ratings to
Delphi Corporation for the company's financing for emergence
from Chapter 11 bankruptcy protection: Corporate Family Rating
of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and
US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a
Speculative Grade Liquidity rating of SGL-2 representing good
liquidity was assigned. The outlook is stable.
As reported in the Troubled Company Reporter on Jan. 11, 2008,
Standard & Poor's Ratings Services expects to assign its 'B'
corporate credit rating to Troy, Michigan-based automotive
supplier Delphi Corp. upon the company's emergence from Chapter
11 bankruptcy protection, which may occur by the end of the
first quarter of 2008. S&P expects the outlook to be negative.
In addition, Standard & Poor's expects to assign these
issue-level ratings: a 'B+' issue rating (one notch above the
corporate credit rating), and '2' recovery rating to the
company's proposed US$3.7 billion senior secured first-lien term
loan; and a 'B-' issue rating (one notch below the corporate
creditrating), and '5' recovery rating to the company's proposed
US$825 million senior secured second-lien term loan.
DELPHI CORP: Inks US$10 Million Purchase Pact with Tenneco Inc.
---------------------------------------------------------------
Tenneco Inc. entered into a purchase agreement with Delphi
Automotive Systems LLC to acquire certain ride control assets
and inventory at Delphi's facility in Kettering, Ohio. This
purchase agreement has been filed with the bankruptcy court as
part of Delphi's bankruptcy court proceedings.
The closing of this purchase is subject to certain closing
conditions, including bankruptcy court approval.
As part of the purchase agreement, Tenneco would pay
approximately US$10 million for existing ride control components
inventory and approximately US$9 million for certain machinery
and equipment. Tenneco would also lease a portion of the
Kettering facility from Delphi.
In connection with the purchase agreement, Tenneco has entered
into an agreement with the International Union of Electrical
Workers, which represents the Delphi workforce at the Kettering
plant. The agreement was ratified by the IUEÂ’ s rank and file
in August 2007.
Tenneco has also entered into a long-term supply agreement with
General Motors Corp. to continue to supply passenger car shock
and strut business to General Motors from the Kettering
facility.
About Tenneco Inc.
Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) --
http://www.tenneco.com/-- manufactures automotive ride and
emissions control products and systems for both the original
equipment market and aftermarket. Brands include Monroe(R),
Rancho(R), and Fric Rot ride control products and Walker(R) and
Gillet emission control products. The company has operations in
Argentina, Japan, and Germany, with its European operations
headquartered in Brussels, Belgium. The company has
approximately 19,000 employees worldwide.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of
vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than
75 million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.
(Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2008, Moody's Investors Service assigned ratings to
Delphi Corporation for the company's financing for emergence
from Chapter 11 bankruptcy protection: Corporate Family Rating
of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and
US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a
Speculative Grade Liquidity rating of SGL-2 representing good
liquidity was assigned. The outlook is stable.
As reported in the Troubled Company Reporter on Jan. 11, 2008,
Standard & Poor's Ratings Services expects to assign its 'B'
corporate credit rating to Troy, Michigan-based automotive
supplier Delphi Corp. upon the company's emergence from Chapter
11 bankruptcy protection, which may occur by the end of the
first quarter of 2008. S&P expects the outlook to be negative.
In addition, Standard & Poor's expects to assign these
issue-level ratings: a 'B+' issue rating (one notch above the
corporate credit rating), and '2' recovery rating to the
company's proposed US$3.7 billion senior secured first-lien term
loan; and a 'B-' issue rating (one notch below the corporate
creditrating), and '5' recovery rating to the company's proposed
US$825 million senior secured second-lien term loan.
GOL LINHAS: Signs Interline Agreement With TAP Portugal
-------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of
Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas
Aereas S.A., has reported an interline agreement between VRG
Linhas and TAP Portugal. Passengers of both airlines can
purchase tickets to all destinations served by VRG Linhas and
TAP Portugal.
VRG Linhas currently serves two of the most important
destinations in Europe: Madrid and Paris. Through this new
partnership, the company's passengers will now also have access
to additional destinations through TAP Portugal's route network,
including Portugal, Denmark, England, Germany, Italy and
Switzerland.
Since September 2007, VRG Linhas has participated in
Multilateral Interline Traffic Agreement (MITA), an IATA network
of airlines from around the world. All MITA members have the
option to enter interline agreements with other member airlines.
In addition to this new partnership, VRG maintains interline
agreements with Brazil's GOL, France's Air France, Germany's
Hahn Air, Greece's Aegean, Holland's KLM, Hungary's Malev,
Israel's El Al, Italy's Air One, Japan Airlines, Mexico's
Mexicana, Air Moldova, Poland's LOT Polish Airlines, South
Korea's Korean Air, Spain's Iberia and Air Comet, Qatar Airways,
the Czech Republic's CSA Czech Airlines, Ukraine International
Airlines and the United States' Delta Air Lines.
Passengers traveling under the Smiles frequent flier program can
only accumulate miles on flights operated by VRG Linhas Aereas
SA.
Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL
Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) --
http://www.voegol.com.br-- through its subsidiary, GOL
Transportes Aereos S.A., provides airline services in Brazil,
Argentina, Bolivia, Uruguay, and Paraguay. The company's
services include passenger, cargo, and charter services. As of
March 20, 2006, Gol Linhas provided 440 daily flights to 49
destinations and operated a fleet of 45 Boeing 737 aircraft.
The company was founded in 2001.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 25, 2007, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Gol Linhas Aereas
Inteligentes S.A. Fitch also affirmed the outstanding US$200
million perpetual bonds and US$200 million of senior notes due
2017 at 'BB+' as well as the company's 'AA-' (bra) national
scale rating. Fitch said the rating outlook is stable.
GRAFTECH INT'L: Dec. 31 Balance Sheet Upside Down By US$112.7MM
---------------------------------------------------------------
GrafTech International Ltd. reported that at Dec. 31, 2007, the
company's balance sheet reflected total assets of
US$866.7 million, total liabilities of US$979.4 million,
resulting to a total stockholders' deficit of US$112.7 million.
For the 2007 fourth quarter ended Dec. 31, the company's net
income is at US$39.9 million from US$77.2 million of the 2006
fourth quarter. For the 2007 fiscal year ended Dec. 31, the
company reported net income of US$153.7 million from US$91.3
million income of fiscal 2006.
Net sales for the 2007 fourth quarter were US$269.4 million an
increase of US$34 million or 14% from US$235.4 million total
sales for the 2006 fourth quarter. For the fiscal year 2007,
the company's net sales were US$1,004.8 million from
US$855.4 million sales in 2006.
"The significant improvement in the results was enabled by
better price realization and the team's relentless pursuit of
cost reductions and increased production efficiencies," Craig
Shular, chief executive officer of GrafTech, commented.
"Operating cash flow more than doubled to US$131 million,
allowing us to complete the year with net debt of US$370
million, the lowest in our company's history."
"Finally, growing sales by 18% while at the same time reducing
selling and administrative costs by 11 percent rounded out a
solid year," Mr. Shular added.
For the 2007 fourth quarter, gross profit increased
approximately 17%, to US$81 million, or 30.1% of net sales, as
compared to US$69 million, or 29.4% of net sales, in the fourth
quarter of 2006. Gross profit in the quarter was negatively
impacted by a one-time US$5 million charge associated with the
termination and closure of our defined benefit South African
pension plan. Excluding the impact of this charge, gross margin
for the quarter would have been 32.0%.
Income from continuing operations was US$39 million versus
US$26 million in the 2006 fourth quarter. Income from
continuing operations before special items was US$44 million as
compared to
US$21 million in the 2006 fourth quarter. The year on year
change included the benefit of a seven percentage point
improvement in the company's effective income tax rate from 28%
to 21%. Net cash provided by operating activities increased to
US$55 million, versus US$20 million in the 2006 fourth quarter.
Selling and administrative and research and development expenses
were US$24 million in the 2007 fourth quarter, as compared to
US$29 million in the 2006 fourth quarter. The decrease resulted
largely from realized benefits associated with restructuring and
productivity projects.
Interest expense was US$7 million in the 2007 fourth quarter or
US$4 million lower than the same period in the prior year as a
result of successful deleveraging efforts.
Other expense, net, was US$2 million in the 2007 fourth quarter,
as compared to other income, net, of US$8 million in the same
period in 2006. The change in the quarter is largely due to
inter-company loan currency translation losses.
About Graftech International
Based Parma, Ohio, in GrafTech International Ltd. (NYSE: GTI) --
http://www.graftech.com-- manufactures graphite electrodes,
products essential to the production of electric arc furnace
steel, and various other ferrous and non-ferrous metals. The
company manufactures natural graphite products enabling thermal
management solutions for the electronics industry, and fuel cell
solutions for the transportation and power generation
industries. GTI also manufactures and provides graphite and
carbon products, as well as related technical services,
including graphite and carbon materials for the semiconductor,
transportation, petrochemical and other metals markets. GTI has
four major product categories: graphite electrodes, advanced
graphite materials, and carbon refractories and natural
graphite. On Dec. 5, 2006, GTI completed the sale of its
cathode business, including its 70% equity interest in Carbone
Savoie S.A.S. to Alcan France. The company has operations in
China, France and Brazil.
* * *
As reported in the Troubled Company Reporter on Jan. 18, 2008,
Standard & Poor Ratings Services said that its rating and
outlook on graphite electrodes manufacturer Graftech
International Ltd. (B+/Positive/--) are not affected at this
time by the company's announcement that it will redeem
US$125 million of its outstanding 10.25% senior notes due 2012.
PROPEX INC: U.S. Trustee Reacts to Panel Counsel's Hourly Rates
---------------------------------------------------------------
Richard F. Clippard, the United States Trustee for Region 8,
relates that Akin Gump Strauss Hauer & Feld, LLP has been asked
to cap the hourly rates of the attorneys of the Official
Committee of Unsecured Creditors of Propex Inc. and its debtor-
affiliates at US$675 per hour. However, Akin Gump declined to
do so.
Kimberly C. Swafford, Esq., attorney for the U.S. Trustee,
states that the U.S. Trustee does not oppose the employment of
Akin Gump as counsel for the Debtors' creditors committee.
However, the U.S. Trustee does not believe that Akin Gump's
hourly rates are reasonable and would like to reserve objection
until the time a fee application is filed.
The U.S. Bankruptcy Court for the Eastern District of Delaware
had authorized the creditors committee to retain Akin Gump as
its counsel, effective as of Jan. 30, 2008.
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)
IMAX CORP: To Install 35 Projection Systems in Latin America
------------------------------------------------------------
IMAX Corporation has reported an agreement with Giencourt
Investments S.A., a member of the RACIMEC International Group,
to purchase and install 35 IMAX(R) Digital projection systems in
Central and South America and the Caribbean over the next six
years. The agreement marks the largest international theatre
deal, and second largest overall theatre deal, in IMAX's
history, following on the heels of AMC's 100-theatre North
America deal announced in December.
Under the terms of the agreement, RACIMEC will provide an
initial down payment and a firm commitment to install a minimum
of 35 IMAX theatres with fixed payment dates and opening dates.
RACIMEC plans to contribute the IMAX theatre systems to its
partners -- developers, exhibitors and other entertainment
operators -- for negotiated economic terms and work with them to
identify the best locations based on market demographics and
cultural trends, ultimately building a substantial network of
IMAX(R) theatres throughout the region.
"This important partnership with RACIMEC will result in a robust
network of IMAX theatres in South and Central America," said
IMAX Co-Chief Executive Officers and Co-Chairpersons Richard L.
Gelfond and Bradley J. Wechsler. "RACIMEC is a well-respected
business innovator, and we are thrilled to expand our
relationship with them at this level. As the industry moves
toward digital and developers as well as exhibitors seek new
ways to attract moviegoers, we are confident that RACIMEC's
experience and expertise are an ideal match for increasing
IMAX's presence in this critical market."
"Based on the growing network of successful IMAX theatres and
the introduction of IMAX's digital projection system, we believe
this is a perfect time to aggressively develop the South and
Central American and Caribbean markets, said RACIMEC
International Group President, Miguel Sfeir. "We want to
capitalize on the momentum IMAX has with its pending digital
projection system and its robust array of Hollywood content to
bring the ultimate movie-going experience to consumers in this
part of the world."
In 2005, RACIMEC signed a deal to install three IMAX theatre
systems into new entertainment retail developments in Chile and
Venezuela. Two IMAX theatres are being built and developed in
Santiago, Chile, in addition to one in Caracas, Venezuela, and
all are expected to open by mid-2009.
The highly anticipated IMAX Digital projection system will
further enhance The IMAX Experience(R) and help to drive
profitability for studios, exhibitors and IMAX theatres by
virtually eliminating the need for film prints, increasing
program flexibility and ultimately increasing the number of
movies shown on IMAX screens.
IMAX has already secured important parts of its film slate for
2008, 2009 and 2010 through agreements with major Hollywood
studios including: The Spiderwick Chronicles (in theatres now),
Shine A Light (April 4, 2008), Speed Racer (May 9, 2008), Kung
Fu Panda (June 6, 2008), The Dark Knight (July 19, 2008), Under
the Sea 3D (February 2009), Monsters vs. Aliens 3D (March 2009),
Hubble 3D (working title, February 2010), How to Train Your
Dragon 3D (March 2010), and Shrek Goes Forth 3D (May 2010).
About RACIMEC International Group
Founded in Rio de Janeiro, Brazil, in August 1966, RACIMEC is a
prominent entertainment and public gaming company which develops
gaming applications such as Lotto and Soccer Lottery, for
various Latin American countries including Brazil, Chile,
Argentina, Venezuela, Colombia and Paraguay. The RACIMEC group
has reached outstanding success in various countries with its
starring game KINO, a pre-printed ticket game with a real time
live TV show, crossing over the 4 billion dollar barrier during
the last decade. The company has been identified by the Lottery
market as the creator of new standards in game operation and
safety in the different countries where it operates.
About IMAX Corp.
Based in New York City and Toronto, Canada, IMAX Corporation
(NASDAQ:IMAX) -- http://www.imax.com/-- is an entertainment
technology company, with emphasis on film and digital imaging
technologies including 3D, post-production and digital
projection. IMAX is a fully-integrated, out-of-home
entertainment enterprise with activities ranging from the
design, leasing, marketing, maintenance, and operation of
IMAX(R) theatre systems to film development, production, post-
production and distribution of large-format films. IMAX also
designs and manufactures cameras, projectors and consistently
commits significant funding to ongoing research and development.
IMAX has locations in Guatemala, India, Italy, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 14, 2008, IMAX Corp.'s consolidated balance sheet at Sept.
30, 2007, showed US$212.7 million in total assets and US$289.5
million in total liabilities, resulting in a US$76.8 million
total stockholders' deficit.
TELEMIG CELLULAR: Moody's Lifts US$120-Mln Notes Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service upgraded the foreign currency rating
of the US$120 million in senior unsecured notes units due 2009
issued by Amazonia Celular S.A. and Telemig Celular S.A. to Ba3
from B2. The rating outlook is now positive. This action
concludes the review initiated on Aug. 7, 2007, begun at the
time the acquisition of the issuers was announced.
The rating action follows the approval by industry regulator
Anatel of the acquisition of Amazonia by Telemar Norte Leste
S.A. (Telemar; Baa2/outlook stable), and reflects Moody's
expectation that Amazonia will benefit from the stronger credit
profile of its new controlling shareholder.
The Ba3 rating assigned to the notes units is based on the
credit quality of Amazonia because 1/3 of the debt service of
the notes units depends on payments from Amazonia and are not
guaranteed by Telemig, which has a stronger credit profile. The
rating assumes that both Telemig and Amazonia will continue to
exist as individual entities and anticipates a reasonable level
of financial and operational support from their respective
shareholders. The debt rating is not constrained by Brazil's
sovereign ceiling for foreign currency bonds and notes of Baa3.
The rating is constrained by Amazonia's exposure to an intense
competitive environment in the company's concession area that
has gradually eroded its market share. The unfavorable
demographics and lack of population density in its extensive
concession area also limit the rating. Free cash flow is
currently positive (16% of total adjusted debt; total adjusted
debt includes derivatives, pension fund obligations, leases and
financial obligations with Telemig), but is likely to turn
negative in the coming years due to higher capex to deploy 3G
services and improve network quality. Amazonia's considerable
refinancing risk deriving from the relatively high amount of
short term debt maturities, including the maturity of the rated
bonds in January 2009, is somewhat mitigated by expected support
from the new controlling shareholder, Telemar. As of Dec. 31,
2007, Amazonia had cash of BRL30 million, last twelve month free
cash flow of BRL48 million, short term debt of BRL98 million and
the January 2009 maturity of the rated notes and related
derivatives transactions, currently totaling BRL117 million.
Fitch expects that Telemar will be supportive in securing the
funds necessary to refinance Amazonia's debt maturities.
As part of Telemar, the largest telecommunications company in
Brazil by revenues, Fitch expects Amazonia will be able to
dilute fixed expenses and better negotiate the cost of equipment
and handsets. The positive outlook incorporates likely synergy
gains favoring both margins and cash flows of Amazonia over the
next few quarters, as the integration process with Telemar
materializes.
The rating could be upgraded if there is further evidence of
explicit support from Telemar to Amazonia.
Headquartered in Belem, Brazil, Amazonia Celular SA provides
mobile communications services in the states of Maranhao, Para,
Amazonas, Amapa and Roraima in the northern region of Brazil.
With 1.4 million subscribers and a 20% market share in its
concession area as of Dec. 31, 2007, Amazonia reported net
revenues of BRL487 million (about US$285 million) in 2007.
Headquartered in Belo Horizonte, Brazil, Telemig Celular is the
leading provider of mobile communications services in the state
of Minas Gerais, Brazil. As of November 2007, Telemig Celular
had 3.5 million customers, with a market share of 30% in its
concession area.
==========================
C A Y M A N I S L A N D S
==========================
HONJO GLOBAL: Will Hold Final Shareholders Meeting on March 18
--------------------------------------------------------------
Honjo Global will hold its final shareholders' meeting on
March 18, 2008, at 10:30 a.m. at 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.
Honjo Global'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 liquidators can be reached at:
John Cullinane and Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
P.O. Box 908, Grand Cayman KY1-9002
Cayman Islands
IBEST HOLDING: Proofs of Claim Filing Deadline is March 18
----------------------------------------------------------
Ibest Holding Corporation's creditors have until March 18, 2008,
to prove their claims to Luiz Francisco Tenorio Perrone, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Ibest Holding's shareholder decided on Jan. 10, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Luiz Francisco Tenorio Perrone
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309, George Town
Ugland House, South Church Street
George Town, Grand Cayman, Cayman Islands
JEFFERIES PARAGON: Sets Final Shareholders Meeting for March 18
---------------------------------------------------------------
Jefferies Paragon Master Fund, Ltd., will hold its final
shareholders' meeting on March 18, 2008, at 10:30 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.
Jefferies Paragon'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
JEFFERIES PARAGON FUND: Final Shareholders Meeting on March 18
--------------------------------------------------------------
Jefferies Paragon Fund (Cayman), Ltd., will hold its final
shareholders' meeting on March 18, 2008, at 10:00 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.
Jefferies Paragon'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
PARMALAT SPA: Records EUR674.4 Million Net Profit in 2007
---------------------------------------------------------
The Parmalat Group released its consolidated financial results
for the full year ended Dec. 31, 2007.
The Parmalat Group posted