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 Monday, March 24, 2008, Vol. 9, No. 58 Headlines A R G E N T I N A ALITALIA SPA: Italian Finance Ministry Approves Air France Offer ALITALIA SPA: SEA SpA Won't Withdraw Lawsuit But May Settle ALITALIA SPA: Liquidation Only Option if Sale Fails BEATRICE MARKETS: Proofs of Claim Verification Is Until April 29 CAR SECURITY: Moody's Affirms Corporate Family Rating at B3 COMERCIAL LEOMAC: Proofs of Claim Verification Is Until April 1 DESARROLLO DE ACUERDOS: Files for Reorganization in Court DEVILAND SA: Proofs of Claim Verification Is Until May 23 ELIAGRO SA: Trustee to Verify Proofs of Claim Until June 24 EQUITAS MEDICA: Trustee to Verify Proofs of Claim Until May 13 ESTABLECIMIENTO VITIVINICOLA: Claims Verification Ends on May 29 FIAT SPA: Argentina Unit to Invest US$300 Million LOS REYES: Proofs of Claim Verification Deadline Is May 12 NAMALPO SRL: Proofs of Claim Verification Deadline Is May 5 PATRIA HOGAR: Court Concludes Reorganization RIAL SRL: Court Appoints Dario Miguel Voldman as Trustee SANDRA MYRIAM: Files Bankruptcy Petition in Buenos Aires TRANSPORTES Y SERVICIOS: Claims Verification Ends April 25 VIRGINIO ROBERTI: Proofs of Claim Verification Is Until April 7 TENNECO INC: Strike Cues S&P to Put Ratings on Negative Watch WR GRACE: Smaller DIP Loan Approved; Some Lenders Back Out B E R M U D A BRUNSWICK COMPANY: Sets Final Shareholders' Meeting for April 16 FOSTER WHEELER: Italian Unit Bags Contract From Saras SpA PINNACLE REINSURANCE: Proofs of Claim Deadline Is April 11 B R A Z I L ABITIBIBOWATER INC: Weak Liquidity Cues Moody's to Junk Rating AMERICAN AIRLINES: Fitch Holds Ratings on US$42 Mln Notes at 'B' BANCO NACIONAL: Board Okays BRL48.5 Mil. Loan to Petroquimica DELPHI CORP: Court Allows Probe on Alleged Improper Trading ENERGISA SA: Fitch Affirms BB- Local Curr. Issuer Default Rating MILACRON INC: Inks EUR27 Million Credit Pact With Lloyds TSB PROPEX INC: Board Names Woody McGee as New President and CEO UAL CORPORATION: Continental Airlines Is First Choice for Merger UAL CORPORATION: Denies Criminal Allegations of Former Employee UAL CORPORATION: SPCP Group Wants US$1,445,675 Claim Allowed C A Y M A N I S L A N D S ATLANTIS YACHTING: Final Shareholders' Meeting Is on March 26 GLOBALVEST HEDGE: Proofs of Claim Filing Deadline Is March 25 IBEST HOLDING: Sets Final Shareholders' Meeting for March 25 INVESTCORP MOODY T5: Proofs of Claim Filing Deadline Is March 26 LODESTONE COMPANY: Sets Final Shareholders' Meeting for March 26 LUMIERE FUND: Proofs of Claim Filing Deadline Is March 27 MARUBENI JPS: Sets Final Shareholders' Meeting for March 25 MERIDIAN REAL: Will Hold Final Shareholders' Meeting on March 27 MERIDIAN REAL ESTATE: Final Shareholders' Meeting Is on March 27 C H I L E METHANEX CORP: Argentina Increases Natural Gas Export Duty METHANEX CORP: Cuts Chile Work Force by 15% QUEBECOR WORLD: Can't Timely File Financial Report for 2007 C O L O M B I A BANCO DE BOGOTA: Moody's Holds Ba3 Foreign Currency Deposit Rtgs BANCOLOMBIA SA: Acquisition Financing Cues Moody's Pos. Outlook GRAN TIERRA: Output Increases to 1,482 Barrels Per Day in 2007 D O M I N I C A N R E P U B L I C PRC LLC: Gets Court Nod on Jenner & Block as Special Counsel PRC LLC: Panel Seeks to Retain Blank Rome as Bankruptcy Counsel PRC LLC: Panel Seeks to Employ J.H. Cohn as Financial Advisors PRC LLC: Wants Court to Approve Severance Program TRICOM SA: Bancredit Says Prepack Plan Violates Bankruptcy Code TRICOM SA: Seeks Dismissal of Bancredit's US$120MM Lawsuit TRICOM SA: Gets Go-Signal to Pay Employee Wages & Benefits J A M A I C A NATIONAL COMMERCIAL: Ingrid Chambers & Chris Stokes Leave Firm M E X I C O BLUE WATER: Committee's Appeal on Interim DIP Order Denied BLUE WATER: Schedules Filing Deadline Extended to March 28 BLUE WATER: Gets Court Okay to Hire Foley & Lardner as Counsel BLUE WATER: Gets Permission to Hire Administar as Claims Agent CLEAR CHANNEL: Extends Closing of Notes Tender Offer to March 24 CONTINENTAL AIRLINES: First Choice for Merger, UAL Says GMAC LLC: Financial Unit's Board Names Alvaro de Molina as CEO SHARPER IMAGE: Court Okays Liquidation Deal With Hilco & Gordon VISTEON CORP: Elects Alex J. Mandl to Board of Directors P A N A M A CABLE & WIRELESS: Credit Suisse Downgrades Firm to Neutral P U E R T O R I C O JETBLUE AIRWAYS: Increases Daily Nonstop Flights to LatAm V E N E Z U E L A NORTHWEST AIRLINES: Continental Is First Choice for UAL Merger PETROLEOS DE VENEZUELA: Will Form Joint Venture With OVL PETROLEOS DE VENEZUELA: Aims to Produce 1.2MM Barrels Daily X X X X X X * Beard Audio to Hold "Understanding CDS Contract Risks" Seminar * BOND PRICING: For the Week March 17 - March 21, 2008 - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Italian Finance Ministry Approves Air France Offer ---------------------------------------------------------------- The Italian Ministry of Economy and Finance has approved an offer from Air France-KLM S.A. to acquire the government's 49.9% stake in Alitalia S.p.A., Agenzia Giornalistica Italia reports. Finance Minister Tommaso Padoa-Schioppa sent a letter to Alitalia and Air France that expressed support to the French carrier's planned takeover, Agenzia Giornalistica Italia relates. However, Mr. Padoa-Schioppa said in the letter that Air France's offer will not be binding if another party submits "a competing and improved public offer and the Ministry accepts that offer," the report added. Air France confirmed acceptance of the letter and has commenced negotiations with Alitalia's unions. During the initial talks, Air France CEO Jean-Cyril Spinetta told Alitalia's unions that the takeover would create a "European champion" that would help protect jobs in the long run, Bloomberg News relates "Air France is offering Alitalia a turnaround and a real future," Mr. Spinetta told Bloomberg News. Unions, however, weren't convinced. Air France's business plan for Alitalia entails 1,600 job cuts at Alitalia's flight operations, affecting 500 pilots, 600 flight assistants and 500 ground staff. "It's humiliating and corresponds to the comatose condition that Alitalia has been reduced to," Fabrizio Solari, secretary general of FILT-CIGL, was quoted by Bloomberg News as saying. "An agreement with Air France right now looks very difficult, Claudio Genovesi, secretary general of the FIT-CISL, told Bloomberg News. CGIL union leader Guglielmo Epifani, meanwhile, advised Air France to leave "room for negotiations," saying "take-it-or- leave-it has never been the best tactic with unions," Reuters relates. The ANPAC pilots union, which had been supportive of Air France, has changed its mind. "The government has stripped us nude with this Air France deal," Raffaele Bonanni, the general secretary of the CISL, said. "This is harmful for the workers, the infrastructure and the general interests of the country." 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: SEA SpA Won't Withdraw Lawsuit But May Settle ----------------------------------------------------------- SEA S.p.A. will not withdraw its EUR1.5 billion damages suit against Alitalia S.p.A., but may consider an out-of-court settlement, Reuters reports. Air France-KLM SA, said its binding offer for the Italian government's 49.9% stake in Alitalia hinges on several conditions, including "the identification of an applicable solution to definitely remove the risk connected to the SEA claim." As reported in the TCR-Europe on Feb. 6, 2008, SEA filed a EUR1.5 billion damages suit against Alitalia over the carrier's decision to downscale its operations at Milan's Malpensa airport. SEA Chairman Giuseppe Bonomi said Alitalia violated a hub partnership agreement and contracts with SEA and its SEA Handling unit. Mr. Bononi noted that SEA designed and developed Malpensa as Alitalia required in terms of infrastructures, facilities and organization. However, Mr. Bononi added, the investments are rendered useless by Alitalia's downscale plan. According to Mr. Bononi, Alitalia's downscale plan will cut traffic at Malpensa by 6 million passengers and will reduce the airport's results by EUR70 million. 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: Liquidation Only Option if Sale Fails --------------------------------------------------- Italian Economy Minister Tommaso Padoa-Schioppa said Alitalia S.p.A is likely to undergo a liquidation proceeding if the sale to Air France-KLM or some other bidders fails, Thomson Financial News reports. Mr. Padoa-Schioppa told Corriere della Sera that liquidation is the only alternative to Alitalia sale or to a competing offer. Air France KLM's Binding Offer As previously reported in the TCR-Europe, Alitalia's Board of Directors resolved unanimously on March 15, 2008, in favor of Air France-KLM's proposal and decided to give the mandate to Chairman Maurizio Prato to sign the acceptance letter. The offer is subject to a number of effectiveness conditions to be fulfilled by March 31, 2008. The Board has carried out its evaluation of the Binding Offer also in light of the worsened airline sector and macro economic scenario, as well as considering the critical situation of the Company and available alternatives. The Board believes that the proposal offers the appropriate solution to preserve the Company's assets and to promote its rapid and stable restructuring and its development in the long- term, also in light of the benefits coming from the synergies deriving from the integration with the global leader of the airline industry. Consistently with the resolution taken, the Chairman signed the acceptance letter of the Agreement. Strategic Premises The scenario and the competitive environment of the air transport sector are rapidly moving towards forms of integration and consolidation involving a very limited number of hub carriers, which enable the achievement of some important benefits: * Higher critical mass, which allows to benefit from relevant economies of scale in terms of costs and revenues, and decreases the carrier's vulnerability to the high cyclicality and volatility that characterize the industry; * Access to very significant and stable synergies, which cannot be achieved through traditional alliances amongst airlines. In this environment, there is an emerging trend in the industry to leave only niche positioning to traditional carriers, which although operating efficiently, have a limited size and operate on a stand-alone basis. The airline industry is currently facing a cyclical downturn, worsened by the steep increase in fuel costs during these last months and by the general deterioration of the macro economic scenario. Alitalia is going through a highly critical situation, causing a progressive erosion of its liquidity position worsened by the aforementioned economic and industrial scenario. The Company has confirmed on a number of occasions, including when it approved the 2008 Budget, the need of a significant capital increase and to reduce in a sizeable manner its losses and the erosion of its equity through strategic actions marked by strong discontinuity with the past. The Plan for Survival/Transition, approved by the Company in September 2007, already included such actions of discontinuity through the new network design, the suspension of flights recording significantly negative economic results, and the subsequent downsizing of the fleet. Key strategic premise to that plan was the impossibility to pursue a stand alone positioning of the Company outside an industrial and financial integration with a strong carrier able to generate synergies. Following the approval of the Plan, the Company initiated a process aimed at identifying a partner who would share the need to favor the restructuring, the re-launch and the development of the Company. On Dec. 6, 2007, Air France-KLM presented a non binding offer for the potential integration with Alitalia. On Dec. 21, 2007, the Board of Directors resolved in favor of Air France-KLM's proposal considering it appropriate to offer to the Company the adequate solution to preserve the Company's assets and to promote its rapid and stable restructuring, giving mandate to the Chairman to start a period of exclusive negotiations. The Industrial Plan 2008-2010, prepared during the exclusivity period -- Jan. 18, 2008, to March 14, 2008, ended the and assumes the execution of a EUR1billion rights issue. The Plan is the platform on which to add the synergies deriving from the integration of the Company with the Air France-KLM group. For Air France-KLM the approval of the plan represents an essential condition for the the integration of Alitalia in the French-Dutch Group. 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. BEATRICE MARKETS: Proofs of Claim Verification Is Until April 29 ---------------------------------------------------------------- Jorge Alberto Vazquez, the court-appointed trustee for Beatrice Markets S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 29, 2008. Mr. Vazquez will present the validated claims in court as individual reports on June 11, 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 Beatrice Markets and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Beatrice Markets' accounting and banking records will be submitted in court on Aug. 6, 2008. Mr. Vazquez is also in charge of administering Beatrice Markets' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Beatrice Markets S.R.L. Pasaje Torrent 1273 Buenos Aires, Argentina The trustee can be reached at: Jorge Alberto Vazquez Bartolome Mitre 2593 Buenos Aires, Argentina CAR SECURITY: Moody's Affirms Corporate Family Rating at B3 ----------------------------------------------------------- Moody's Investors Service affirmed its B3 global scale corporate family rating for Car Security and upgraded Car Security's national scale rating to A3.ar from Baa1.ar. The outlook remains stable. The B3 rating principally incorporates Car Security's small size and aggressive growth strategy and its evolving business model, which relies on a significant amount of recurring revenues from automobile insurance companies. In addition, the rating reflects the company's leading market position in the stolen vehicles recovery system business in Argentina and low leverage, but is constrained by ongoing negative free cash flow driven by dividend payments and higher capex, tight liquidity and its exposure to volatile performance from having operations concentrated in Argentina. Moody's also considered the competitive nature of the local industry and the company's 17% average attrition rate on a net basis, which is higher than other companies in the global monitoring services industry. The ratings also reflect Moody's expectations that Car Security's credit metrics will remain strong for its B3 rating category . During the past three years, the company's operating margins, cash flow and debt ratios have improved due to significant revenue growth and economic recovery in Argentina. Adjusted debt to EBITDA has declined from 1.3 times in 2003 to 0.9 in 2007. Additionally, EBITDA to interest coverage has increased to 15 times in 2007 from 8 times in 2003 due to the company's low leverage. The recent upgrade in the national scale rating was also driven by the strength of Car Security's market position, the high likelihood that it will continue to be a leading player in its business in Argentina and the fact that the company has been an early mover with respect to new product launches. "Continued domestic vehicle market growth and low penetration of the stolen vehicles recovery system product (approximately 13%) in a high theft-rate environment should allow CS to continue to grow at a fast pace, even if the company experiences a deceleration in its revenues growth rate in the near term," said AVP analyst, Veronica Amendola. The stable outlook is based on Moody's view that the company will continue to manage its growth adequately and generate enough cash to finance its investing needs and debt service. The stable outlook also reflects Moody's opinion that Car Security should be able to defend its competitive position, although financing its working capital and capex growth may prove challenging in the current market environment An upgrade in the ratings could result from an improvement in the macroeconomic environment in Argentina, allowing for more certainty with respect to future revenues and operating margins. In terms of financial metrics, an upgrade would require positive free cash flow to debt on a sustainable basis and stronger liquidity. Although a downgrade is unlikely in the near term, a negative rating action could result from a deterioration of the company's liquidity or greater than expected negative free cash flow of more than 40% of debt. Headquartered in Buenos Aires, Argentina, Car Security is Lo Jack Corporation's local licensee since June 1998. Car Security markets stolen vehicles recovery system devices that use radio signals to monitor vehicles and offers tracking service for stolen vehicles, serving more than 380,000 consumers. Annual revenues for 2007 were approximately US$43 million. COMERCIAL LEOMAC: Proofs of Claim Verification Is Until April 1 --------------------------------------------------------------- Jose Luis Abuchid, the court-appointed trustee for Comercial Leomac S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 1, 2008. Mr. Abuchid will present the validated claims in court as individual reports on May 15, 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 Comercial Leomac 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 Comercial Leomac's accounting and banking records will be submitted in court on June 27, 2008. Mr. Abuchid is also in charge of administering Comercial Leomac's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Jose Luis Abuchid Avenida de los Incas 3624 Buenos Aires, Argentina DESARROLLO DE ACUERDOS: Files for Reorganization in Court --------------------------------------------------------- Desarrollo de Acuerdos Comerciales SA has requested for reorganization approval after failing to pay its liabilities since May 22, 2007. The reorganization petition, once approved by the court, will allow Desarrollo de Acuerdos 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. 8 in Buenos Aires. Clerk No. 16 assists the court in this case. The debtor can be reached at: Desarrollo de Acuerdos Comerciales SA Cordoba 669 Buenos Aires, Argentina DEVILAND SA: Proofs of Claim Verification Is Until May 23 --------------------------------------------------------- Moises Gorelik, the court-appointed trustee for Deviland S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 23, 2008. Mr. Gorelik will present the validated claims in court as individual reports. 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 Deviland 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 Deviland's accounting and banking records will be submitted in court. Infobae didn't state the submission deadlines for the reports. Mr. Gorelik is also in charge of administering Deviland's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Moises Gorelik Lavalle 1675 Buenos Aires, Argentina ELIAGRO SA: Trustee to Verify Proofs of Claim Until June 24 ----------------------------------------------------------- Juan Carlos Caro, the court-appointed trustee for Eliagro SA's reorganization proceeding, will be verifying creditors' proofs of claim until June 24, 2008. Mr. Caro 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. 14, 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 Eliagro 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 Eliagro's accounting and banking records will be submitted in court. La Nacion didn't state the submission deadlines for the reports. Creditors will vote on the completed settlement plan during the assembly on April 8, 2009. The debtor can be reached at: Eliagro SA Yerua 4979 Buenos Aires, Argentina The trustee can be reached at: Juan Carlos Caro Florida 470 Buenos Aires, Argentina EQUITAS MEDICA: Trustee to Verify Proofs of Claim Until May 13 -------------------------------------------------------------- Aldo Emilio Cambiasso, the court-appointed trustee for Equitas Medica S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 13, 2008. Mr. Cambiasso will present the validated claims in court as individual reports on June 25, 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 Equitas Medica 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 Equitas Medica's accounting and banking records will be submitted in court on Aug. 22, 2008. Creditors will vote on the completed settlement plan during the assembly on Feb. 25, 2009. The trustee can be reached at: Aldo Emilio Cambiasso Cerrito 1070 Buenos Aires, Argentina ESTABLECIMIENTO VITIVINICOLA: Claims Verification Ends on May 29 ---------------------------------------------------------------- Rodolfo David Fuentes, the court-appointed trustee for Establecimiento Vitivinicola Don Juan S.R.L.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 29, 2008. Mr. Fuentes will present the validated claims in court as individual reports on July 29, 2008. The National Commercial Court of First Instance in Mendoza 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 Establecimiento Vitivinicola 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 Establecimiento Vitivinicola's accounting and banking records will be submitted in court on Sept. 10, 2008. Creditors will vote on the completed settlement plan during the assembly on March 19, 2009. The trustee can be reached at: Rodolfo David Fuentes Avenida Espana 1248, Ciudad de Mendoza Mendoza, Argentina FIAT SPA: Argentina Unit to Invest US$300 Million ------------------------------------------------- Fiat Argentina, a subsidiary of Fiat S.p.A., plans to invest US$300 million in Argentina, Reuters reports. The move, Reuters relates, came after Argentine President Cristina Fernandez de Kirchner met with the head of Fiat Argentina. A company official told Reuters that about US$200 million will be allocated for the production of gear boxes and the rest will be spent for car production. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As of March 13, 2008, Fiat S.p.A. and its subsidiaries carried Ba3 Corporate Family and Senior Unsecured ratings from Moody's Investors Service, which said the outlook is positive. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The compay also carries B short- term rating. S&P said the outlook is stable. LOS REYES: Proofs of Claim Verification Deadline Is May 12 ---------------------------------------------------------- Silvia Muavero, the court-appointed trustee for Los Reyes Magos SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 12, 2008. Ms. Muavero will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 11 in Buenos Aires, with the assistance of Clerk No. 22, 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 Los Reyes 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 Los Reyes' accounting and banking records will be submitted in court. La Nacion didn't state the submission deadlines for the reports. Ms. Muavero is also in charge of administering Los Reyes' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Los Reyes Magos SRL Avenida Directorio 171 Buenos Aires, Argentina The trustee can be reached at: Silvia Muavero Avenida Rivadavia 1615 Buenos Aires, Argentina NAMALPO SRL: Proofs of Claim Verification Deadline Is May 5 ----------------------------------------------------------- Hector Martinez, the court-appointed trustee for Namalpo SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 5, 2008. Mr. Martinez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 34, 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 Namalpo 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 Namalpo's accounting and banking records will be submitted in court. La Nacion didn't state the submission deadlines for the reports. Mr. Martinez is also in charge of administering Namalpo's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Namalpo SRL Libertador 6710 Buenos Aires, Argentina The trustee can be reached at: Hector Martinez Independencia 2251 Buenos Aires, Argentina PATRIA HOGAR: Court Concludes Reorganization -------------------------------------------- Patria Hogar S.R.L. concluded its reorganization process, according to data released by Infobae on its Web site. The closure came after the National Commercial Court of First Instance in Buenos Aires homologated the debt plan signed between the company and its creditors. RIAL SRL: Court Appoints Dario Miguel Voldman as Trustee -------------------------------------------------------- The National Commercial Court of First Instance in Cordoba has appointed Dario Miguel Voldman as trustee for Rial S.R.L. Empresa Constructora's bankruptcy proceeding. Mr. Voldman will be verifying creditors' proofs of claim and presenting the validated claims in court as individual reports. The court will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Rial and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Voldman will submit a general report containing an audit of Rial's accounting and banking records. Mr. Voldman is also in charge of administering Rial's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Rial S.R.L. Empresa Constructora Parana 257, Ciudad de Cordoba Cordoba, Argentina The trustee can be reached at: Dario Miguel Voldman Larranaga 62, Cordoba Argentina SANDRA MYRIAM: Files Bankruptcy Petition in Buenos Aires -------------------------------------------------------- The National Commercial Court of First Instance No. 26 in Buenos Aires is studying the merits of Sandra Myriam Borsher-Hernan Pablo Scacovsky Sociedad de Hecho's request to enter bankruptcy protection. Sandra Myriam filed a "Quiebra Decretada" petition after failing to pay its debts since June 1, 2007. The petition, once approved by the court, will transfer control of the company's assets to a court-appointed trustee who will supervise the liquidation proceedings. Clerk No. 52 assists the court in this case. The debtor can be reached at: Sandra Myriam Borsher-Hernan Pablo Scacovsky Sociedad de Hecho Tucuman 1455 Buenos Aires, Argentina TRANSPORTES Y SERVICIOS: Claims Verification Ends April 25 ---------------------------------------------------------- Cecilia Montelvetti, the court-appointed trustee for Transportes y Servicios del Oeste SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until April 25, 2008. Ms. Montelvetti will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 15 in Buenos Aires, with the assistance of Clerk No. 29, 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 Transportes y Servicios 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 Transportes y Servicios' accounting and banking records will be submitted in court. La Nacion didn't state the submission deadlines for the reports. Ms. Montelvetti is also in charge of administering Transportes y Servicios' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Transportes y Servicios del Oeste SRL Yerbal 4050 Buenos Aires, Argentina The trustee can be reached at: Cecilia Montelvetti Urquiza 2134 Buenos Aires, Argentina VIRGINIO ROBERTI: Proofs of Claim Verification Is Until April 7 --------------------------------------------------------------- Leon Sergio Fuks, the court-appointed trustee for Virginio Roberti e Hijos S.A.C.I.I.F.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 7, 2008. Mr. Fuks 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 Virginio Roberti 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 Virginio Roberti's accounting and banking records will be submitted in court on Aug. 25, 2008. Mr. Fuks is also in charge of administering Virginio Roberti's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Virginio Roberti e Hijos S.A.C.I.I.F.A. Avellaneda 1582 Buenos Aires, Argentina The trustee can be reached at: Leon Sergio Fuks Viamonte 1636 Buenos Aires, Argentina TENNECO INC: Strike Cues S&P to Put Ratings on Negative Watch ------------------------------------------------------------- Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/--) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expect American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. The two sides resumed negotiations last week. "We believe the strike has gone on long enough to possibly begin to affect the financial resources of GM and those suppliers most exposed to the automaker," said Standard & Poor's credit analyst Robert Schulz. To resolve the CreditWatch listings, Standard & Poor's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. 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. WR GRACE: Smaller DIP Loan Approved; Some Lenders Back Out ---------------------------------------------------------- The Hon. Judith Fitzgerald of the United States Bankruptcy Court for the District of Delaware permitted W.R. Grace & Co. and its debtor-affiliates to obtain only up to US$200,000,000, of DIP Loans, instead of the US$250,000,000 that the Debtors sought after several lenders refused to continue extending loans to Grace, the Associated Press reports. Grace's counsel, Janet Baer, at Kirkland & Ellis LLP, told Judge Fitzgerald during a hearing that not all DIP Lenders signed on Grace's request to further extend the terms of the DIP Facility until April 2010, the AP said. The AP said that Ms. Baer blamed "the tightening of the credit industry" for the retreat of some banks that have offered DIP Loans to Grace since the company's Petition Date in 2001. The company's DIP Facility with Bank of America, as administrative agent for a syndicate of lenders, originally provided Grace access to US$250,000,000 of DIP Loans. As of Dec. 31, 2007, the Debtors had no outstanding borrowings under the DIP facility. The Debtors disclosed in regulatory filings with the Securities and Exchange Commission that US$56,300,000 of standby letters of credit, however, were issued and outstanding under the DIP facility as of December 31, 2007, which were issued mainly for trade-related matters like performance bonds, as well as certain insurance and environmental matters. Grace noted in papers filed with the Court that, as of Jan. 30, 2008, approximately US$58,500,000 in letters of credit issued pursuant to the DIP Facility remain outstanding. According to AP, Grace spokesman Greg Euston said in an e-mail that the company has no outstanding draw against the Chapter 11 loans. Grace explained in the regulatory filing that the outstanding amount of standby letters of credit, as well as other holdback provisions issued under the DIP facility reduces the borrowing availability to US$178,500,000 at December 31, 2007. Under the DIP facility, the Debtors are required to maintain US$50,000,000 of liquidity, in a combination of cash, cash equivalents and the net cash value of life insurance policies. The DIP Facility will expire on April 1, 2008. Grace has said in Court filings in mid-February that BofA has agreed to extend the DIP Facility until May 31, 2008, if the Court is unable to approve the DIP Amendments before April 1. Grace will pay BofA a fee of not more than US$100,000 for the Interim Extension. Grace, which sought protection under Chapter 11 of the Bankruptcy Code because of increasing asbestos claims, is in the middle of an estimation trial that seeks to determine how much the company will have to set aside to a trust to cover asbestos damages before it can exit from bankruptcy. The estimation trial is expected to wrap up in May. About W.R. Grace Headquartered in Columbia, Md., W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally, including Argentina, Australia and Ireland. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. Estimation of W.R. Grace's asbestos personal injury liabilities commenced on January 14, 2008. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. As of November 30, 2007, W.R. Grace's balance sheet showed total assets of US$3,335,000,000, and total debts of US$3,712,000,000. (W.R. Grace Bankruptcy News, Issue No. 154; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ============= B E R M U D A ============= BRUNSWICK COMPANY: Sets Final Shareholders' Meeting for April 16 ---------------------------------------------------------------- Brunswick Company Limited will hold its final general meeting on April 16, 2008, at 10:00 a.m. at Conyers Dil & Peaman, 2nd Floor, Richmond House, Par-la-Ville Road, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. FOSTER WHEELER: Italian Unit Bags Contract From Saras SpA --------------------------------------------------------- Foster Wheeler Ltd. reported that Milan-based Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded an engineering, procurement, and construction management contract by Saras S.p.A. for the revamp of the mild hydrocracking unit at the Sarroch refinery in Sardinia, Italy. This project is part of an important refinery upgrade. The terms of the contract, which will be included in Foster Wheeler's first-quarter 2008 bookings, were not disclosed. This award follows the successful completion by Foster Wheeler of the front-end engineering design for the mild hydrocracker revamp and the procurement of major items. The revamp's objectives are the upgrade of the mild hydrocracker's capacity, performance and conversion, while achieving a longer catalyst life duration. The revamp includes major modification to the reaction section, including installation of a new pretreat reactor, as well as upgrading the gas compression circuit and installing a new high-pressure amine wash section. "We are very pleased to be awarded this revamp project by Saras," said Marco Moresco, chief executive officer, Foster Wheeler Italiana S.p.A. "We have been working with Saras for a number of years at this refinery. We have an alliance-type frame agreement with Saras under which we undertake work at this refinery and, under this agreement, we have developed a strong, successful and cooperative working relationship with our client." "The upgrading of our refinery at Sarroch, one of Europe's largest and most complex refineries, is proceeding at a fast pace," said Dario Scaffardi, general manager, Saras S.p.A. "This latest award to Foster Wheeler demonstrates our continued satisfaction with its professionalism and expertise and our confidence in its ability to maintain a successful relationship with Saras." About Foster Wheeler Ltd. Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. The company reported total debt of approximately US$150 million at Sept. 30, 2007. PINNACLE REINSURANCE: Proofs of Claim Deadline Is April 11 ---------------------------------------------------------- Pinnacle Reinsurance Company Limited's creditors are given until April 11, 2008, to prove their claims to David R. Whiting, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Pinnacle Reinsurance's shareholders agreed on March 13, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: David R. Whiting c/o Mello Jones & Martin Thistle House, 4 Burnaby Street Hamilton, Bermuda =========== B R A Z I L =========== ABITIBIBOWATER INC: Weak Liquidity Cues Moody's to Junk Rating -------------------------------------------------------------- Moody's Investors Service downgraded the corporate family ratings of AbitibiBowater Inc.'s subsidiaries Abitibi- Consolidated Inc. and Bowater Incorporated to Caa1 from B2. The rating action results from AbitibiBowater's deteriorating liquidity profile, the anticipated challenges associated with the company's recently announced US$1.4 billion refinancing plan and weakened credit protection measures. At the same time, Moody's downgraded the probability-of-default rating of Abitibi to Caa3 from B2 and the probability-of-default rating of Bowater to Caa1 from B2. Moody's assigned a B1 rating to the new US$415 million secured notes due 2011 at Abitibi and downgraded the senior unsecured ratings for bonds and debentures issued by Abitibi and Bowater to Caa2 from B3. In addition, Abitibi's and Bowater's speculative grade liquidity ratings were downgraded to SGL-4 and SGL-3 respectively from SGL-2. The rating outlooks for Abitibi and Bowater are negative. The ratings of Abitibi reflect the company's weakened liquidity profile and the anticipated challenges of completing the company's recently announced exchange offer whereby the company has offered to exchange the 6.95% notes of Abitibi due April 1, 2008, the 5.25% Notes of Abitibi-Consolidated Company of Canada due June 20, 2008, and the 7.875% notes of Abitibi due Aug. 1, 2009 (the affected notes) in a private placement for a combination of cash and new 15% notes due 2010 to be issued by Abitibi-Consolidated Company of Canada. Moody's considers the exchange offer to be occurring under distressed circumstances and upon the completion of the exchange, would downgrade Abitibi's probability-of-default rating on the affected notes to LD from Caa3 reflecting a limited default. The ratings of Abitibi and Bowater also reflect their weak operating performance, negative free cash flow and high debt levels from past debt-financed acquisitions. The ratings incorporate declining demand for newsprint, deteriorating markets for their sawmill operations, rising input costs (especially in eastern Canada), the strong Canadian dollar, and a weakened liquidity profile. Positive factors that support the ratings include AbitibiBowater's large scale as the largest newsprint producer in the world, which provides flexibility to reduce costs, the potential to realize a large portion of the US$375 million of identified synergies, and cost-competitive operations. It is noted that even as newsprint consumption continues to decline in 2008 owing to rising substitution by electronic media and the slowing US economy, the newsprint capacity reductions by AbitibiBowater and its competitors should provide support to the price increases implemented in the first quarter of 2008. Some improvement in cash flow generation should be observed as the effects of price increases work their way through the company's results. The speculative grade liquidity ratings for Abitibi and Bowater result from minimal availability under each company's respective credit facilities, and expectations that cash flow will be slightly negative to neutral over the next four quarter SGL time horizon. The weaker SGL rating for Abitibi reflects the scheduled debt maturity of US$346 million in the next quarter and the limited cash and credit availability of approximately US$100 million. The SGL ratings also incorporate the expectation that financial covenant compliance may become a problem should the company prove unsuccessful in extending an expiring waiver or financial performance fails to improve materially in the next few quarters. Moody's believes that AbitibiBowater has some alternative liquidity potential with the ability to sell certain non-core assets including the company's hydro assets, timberlands and operating assets in the UK and South Korea. In addition, the company expects to receive approximately US$160 million in cash proceeds in the second quarter of this year from the recent sale of the Snowflake, Arizona newsprint mill to Catalyst Paper Corporation. The negative outlook reflects the potential for further downward ratings adjustment should the refinancing plan fail to be completed in the amounts and in the timeframe required to address Abitibi's debt maturities. The negative rating outlook also reflects expectations that AbitibiBowater's liquidity profile will be at risk should declining newsprint demand, the strong Canadian dollar and rising input costs offset the expected improved financial results from the newsprint price increases implemented since November 2007. Downgrades: Issuer: Abitibi-Consolidated Company of Canada -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2, LGD4-62% from B3, LGD4-57% -- Senior Unsecured Shelf, Downgraded to (P)Caa2 from (P)B3 Issuer: Abitibi-Consolidated Finance L.P. -- Multiple Seniority Shelf, Downgraded to (P)Caa2 from (P)B3 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2, LGD4-62% from B3, LGD4-57% Issuer: Abitibi-Consolidated Inc. -- Probability of Default Rating, Downgraded to Caa3 from B2 -- Speculative Grade Liquidity Rating, Downgraded to SGL-4 from SGL-2 -- Corporate Family Rating, Downgraded to Caa1 from B2 -- Multiple Seniority Shelf, Downgraded to (P)Caa2 from (P)B3 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2, LGD 4-62% from B3, LGD4-57% Issuer: Bowater Canada Finance Corp. -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2, LGD4-61% from B3, LGD4-60% Issuer: Bowater Incorporated -- Probability of Default Rating, Downgraded to Caa1 from B2 -- Speculative Grade Liquidity Rating, Downgraded to SGL-3 from SGL-2 -- Corporate Family Rating, Downgraded to Caa1 from B2 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2, LGD4-61% from B3, LGD4-60% Issuer: Maine Finance Authority -- Senior Unsecured Revenue Bonds, Downgraded to Caa2, LGD4-61% from B3, LGD4-60% Issuer: McMinn (County of) TN, I.D.B. -- Senior Unsecured Revenue Bonds, Downgraded to Caa2, LGD4-61% from B3,LGD4-60% Issuer: York (County of) SC -- Senior Unsecured Revenue Bonds, Downgraded to Caa2, LGD4-61% from B3,LGD4-60% Assignments: Issuer: Abitibi-Consolidated Company of Canada -- Senior Secured Regular Bond/Debenture, Assigned B1, LGD1-08% Outlook Actions: Issuer: Abitibi-Consolidated Company of Canada -- Outlook, Changed To Negative From Developing Issuer: Abitibi-Consolidated Finance L.P. -- Outlook, Changed To Negative From Developing Issuer: Abitibi-Consolidated Inc. -- Outlook, Changed To Negative From Developing Issuer: Bowater Canada Finance Corp. -- Outlook, Changed To Negative From Developing Issuer: Bowater Incorporated -- Outlook, Changed To Negative From Developing Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a result of the combination of Abitibi-Consolidated Inc. and Bowater Incorporated. Pursuant to the transaction, Abitibi- Consolidated Inc. and Bowater Incorporated became subsidiaries of AbitibiBowater. The company produces a range of forest products marketed in more than 80 countries around the world. The company's customers include many publishers, commercial printers, retailers, consumer products companies and building supply outlets. AbitibiBowater is also a recycler of newspapers and magazines. The company owns or operates 32 pulp and paper mills and 35 wood products facilities in North America and offshore. The company manages its business in five segments: coated papers, specialty papers, newsprint, market pulp and lumber. The company has operations in Brazil. AMERICAN AIRLINES: Fitch Holds Ratings on US$42 Mln Notes at 'B' ---------------------------------------------------------------- Fitch Ratings has affirmed the ratings of American Airlines, Inc. Class A & B secured notes due 2009, as: -- US$180,457,000 7.25% class A at 'BBB-'; -- US$42,031,000 9.00% class B at 'B'. Fitch's affirmation on the class A notes primarily reflects the value of the spare parts securing the notes, which has remained consistent since close; the availability of Section 1110 of the U.S. Bankruptcy Code; AA's credit quality; and the liquidity facilities for the class A notes only, which provide four successive semi-annual interest payments at the existing fixed interest rate. Fitch's rating on the class B notes primarily reflects AA's credit quality and the steady value of the spare parts. The notes are structured similar to enhanced equipment trust certificates. EETC's are hybrid corporate-structured debt obligations in which payment on the notes is effectively supported by the underlying corporate entity, while structured elements of the transaction provide protection to investors in the event of issuer default. As such, Fitch's ratings on EETC transactions begin with the underlying Issuer Default Rating of the issuing entity and are adjusted upward depending on the structural enhancements in place. The notes are backed by a pool of spare parts for aircraft and engine spare parts currently owned by AA. The majority of the spare parts are comprised of rotables and limited life spare parts, and expendable spare parts, all for use on the following types of in-service aircraft utilized by AA: Boeing model 737- 800s, 757-200s, 767-200s, 767-300s, or 777-200s, and McDonnell Douglas MD-80 aircraft, or on any engine or spare part utilized on any such aircraft. The spare parts notes have a security interest in all of the aircraft spare parts financed. Based in Fort Worth, Texas, American Airlines Inc., a wholly owned subsidiary of AMR Corp., operates the largest scheduled passenger airline in the world with service throughout North America, the Caribbean, Latin America, Europe and Asia. The airline flies to Belgium, Brazil, Japan, among others. BANCO NACIONAL: Board Okays BRL48.5 Mil. Loan to Petroquimica ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social's board of directors has approved a BRL48.5-million financing to Petroquimica Uniao S/A (PQU), a company located in Santo Andre and Maua (State of Sao Paulo), for the modernization and expansion of its productive capacity. BNDES's share is equivalent to 77% of the total project amount, which is budgeted in BRL62.9 million. At the construction phase, the generation of 3 thousand direct and indirect jobs is forecast, 30 direct jobs in the petrochemical center and 6.5 thousand jobs in the productive chain. The project is directed towards the installation of a flare - a torch that illuminates continuously and that is part of PQU's piping safety system - enclosed type, which means a modernization of the system for reducing the unit's smoke emission. Besides this, the innovation will be responsible for the production of 220 cubic meters per hour of demineralized water. The project will also recover the already existing boilers, in order to increase the capacity of generation and elevation steam temperature. The project is also directed towards social investments amounting to BRL6.9 million and, out of this total, BRL4.5 million have been financed by BNDES. Expansion The new flare will increase the gas burning capacity in 100 tons per hour, without smoke emission, which will jump from 505 tons per hour to 605 tons per hour. The enclosed flare will function in parallel with the (elevated) Stack Flare which currently has a burning capacity of 700 tons per hour; however, out of this total, 15% only, that is, 105 tons per hour do not originate smoke. The new unit of demineralized water will process the additional consumption of water and minimize the generation of residues. Petroquimica Uniao S/A is part of Unipar Group and is the Brazil's first basic petrochemical center. These products are used as raw materials by the second petrochemical generation, in order to produce compounds such as polyethylene, polypropylene, styrene and cumene, which in turn are transformed into inputs and consumer goods such as plastic, resin, fibers, detergents and inks by third-generation chemical industries. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. DELPHI CORP: Court Allows Probe on Alleged Improper Trading ----------------------------------------------------------- Delphi Corp. and its debtor-affiliates sought and obtained authority from the U.S. Bankruptcy Court for the Southern District of New York to issue subpoenas, pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure, directing expedited oral examinations of, and production of documents by, the Debtors' plan investors. The Debtors are working to consummate their confirmed First Amended Joint Plan of Reorganization, which is premised upon consummation of the New Equity Purchase and Commitment Agreement between the Debtors and seven main Plan Investors: * A-D Acquisition Holdings, LLC, and Appaloosa Management, L.P. * Harbinger Del-Auto Investment Company, Ltd., Harbinger Capital Partners Special Situations GP, LLC, and Harbinger Capital Partners Master Fund I, Ltd. * Dolce Investments LLC and Cerberus Capital Management L.P. * Merrill Lynch, Pierce, Fenner & Smith Inc. * UBS Securities LLC and UBS AG * Goldman, Sachs & Co. * Pardus DPH Holding LLC, Pardus Capital Management L.P., Pardus Special Opportunities Master Fund L.P., and Pardus Capital Management LLC Pursuant to the New EPCA, the Plan Investors have agreed to invest up to US$2,550,000,000 of equity financing in reorganized Delphi Corp. The Plan Investors may transfer and assign certain of their rights and obligations under the New EPCA to additional investors. Albert Togut, Esq., at Togut, Segal & Segal LLP, in New York, informs the Court that Delphi recently received information from a stakeholder who "alleged direct knowledge of inappropriate conduct relating to at least one Investor involved with the Debtors' efforts to consummate the Plan." The unnamed Stakeholder's information, Mr. Togut says, included allegations that: (1) one or more Investors may have been trading in or shorting one or more of Delphi's outstanding public securities; (2) the Trading Investors may currently have material unrealized or realized gains on the Illegal Investments; and (3) the Trading Investors may have communicated with Appaloosa, the Debtors' Lead Plan Investor, or Appaloosa's representatives concerning scenarios or courses of conduct pursuant to which the New EPCA will not be consummated or funded to the detriment of the Debtors and their stakeholders. The Debtors have no information that trading activity occurred with the use of material non-public information or that Appaloosa participated in the conduct, Mr. Togut relates. Based on the Debtors' investigation to date, which is in a preliminary stage and remains substantially incomplete, at least six Investors have either acknowledged some short-selling activity or have refused to cooperate with the investigation. An Investor identified by the Stakeholder is included within that group, Mr. Togut notes. The Debtors subsequently wrote to each Investor to request information concerning their activities. Although most Investors cooperated to some degree with the Debtors' investigation, many did not provide complete information, and some Investors refused to cooperate at all. Moreover, many of the Investors objected to providing documents and information because the Debtors do not have formal Court authorization for their inquiries. None of the Lead Plan Investors refused to cooperate with the Debtors' investigation or acknowledged significant short-selling activity for their own account except pursuant to an asserted contractual waiver and behind an ethical wall. The Debtors believe that they are unlikely to obtain the information they need through voluntary cooperation. Judge Drain permits the Debtors to issue subpoenas requiring each Investor to: (a) produce documents concerning their investigation within at least three business days after the date on which an Investor is served with the subpoena; and (b) appear for oral examination under oath within at least two business days after the date on which an Investor is served with the subpoena. Debtors Can File Docs Under Seal Judge Drain also permitted the Debtors to file documents relating to the implementation of the Court's Order under seal if they disclose the name of any Investor. The Court's Order is without prejudice to the Debtors' right to seek additional documents, information and testimony from the Investors or other parties-in-interest concerning their investigation, Judge Drain says. To the extent that any Investor's conduct delays, makes difficult, or interferes with consummation of the Plan in violation of the Investors' contractual or fiduciary duties or duties of good faith, it relates directly to the property, liabilities and financial condition of the Debtors and plainly may affect the administration of the Debtors' estates, Mr. Togut points out. The Debtors, according to him, are not abusing or harassing the Investors. "[T]he Debtors filed this Application reluctantly, and only after determining that the Investors' voluntary cooperation would not suffice to provide the Debtors with the information they need and requested." "[I]f an Investor lacks documents or information concerning inappropriate or apparently inappropriate conduct by itself or another Investor, responding to a subpoena from the Debtors should not be burdensome," Mr. Togut asserts. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 119; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on March 18, 2008, Standard & Poor's Ratings Services still expects to assign a 'B' corporate credit rating to Delphi Corp. if the company emerges from bankruptcy in early April. S&P has revised its expected issue-level ratings because changes to the structure of the proposed financings have affected relative recovery prospects among the various term loans. S&P's expected ratings are: -- The US$1.7 billion "first out" first-lien term loan B-1 is expected to be rated 'BB-' (two notches higher than the expected corporate credit rating on Delphi), with a '1' recovery rating, indicating the expectation of very high (90%-100%) recovery in the event of payment default. -- The US$2 billion "second out" first-lien term loan B-2 is expected to be rated 'B' (equal to the corporate credit rating), with a '4' recovery rating, indicating the expectation of average (30%-50%) recovery in the event of payment default. -- The US$825 million second-lien term loan is expected to be rated 'B-' (one notch lower than the corporate credit rating), with a '5' recovery rating, indicating the expectation of modest (10%-30%) recovery in the event of payment default. 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 as: 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. ENERGISA SA: Fitch Affirms BB- Local Curr. Issuer Default Rating ---------------------------------------------------------------- Fitch Ratings has assigned a Long-term National Scale Rating of 'A(bra)' to Brazil's Energisa S.A.'s BRL150 million six-year third issuance of debentures. The proceeds from the issuance will be used to prepay Energisa's first issuance of commercial paper. Energisa is currently rated as: -- Local Currency Issuer Default Rating 'BB-'; -- Foreign Currency IDRs 'BB-'. -- Long-term National Scale Rating of 'A(bra)'. The Rating Outlook is Stable for the corporate ratings. The rating is supported by the consolidated credit profile of Group Energisa, with moderate leverage and an adequate debt profile in relation to the expected operating cash flow generation. Energisa holds five electrical power distribution companies in its portfolio, with Empresa Energetica de Sergipe and Sociedade Anonima de Eletrificacao da Paraiba contributing approximately 67% to the consolidated EBITDA in 2007. The rating also takes into account that the main subsidiaries of the group operate in a regulated and monopolistic electric energy market, with a diversified and growing client base. Regulatory and hydrology risks were considered as factors constraining the rating. Consolidated energy consumption in the five distribution companies' markets has been increasing consistently, growing 4.5% in comparison to 2006 and 2007. Increased consumption and tariff readjustments have resulted in the highest consolidated EBITDA and the highest margin since 2002. In 2007, EBITDA reached BRL552 million, with a 14% increase versus 2006, and margin was 34%. Group companies' results should continue to reflect a likely improvement in Brazil's economic environment. Group Energisa's major challenge for 2008 and 2009 should be the tariff review process for all of its distribution companies. A tariff reduction is expected, which could moderately affect the group's operational cash generation. Group Energisa has been efficient in its strategy to reduce its financing cost and lengthen its debt average maturities. The average nominal financing cost was reduced to 11.3% per year at the end of 2007 from 14.1% per year in December 2006, while average maturities reached 5.9 years from 3.7 years. In addition, the group has been using the increased operating cash generation and funds from asset sales to reduce its debt and financial leverage. Asset sales totaled BRL545 million in 2007, with proceeds of BRL467 million and the transfer of BRL60 million of debt during the year. The remaining cash of BRL18 million was received after December 2007. The group's total adjusted debt was reduced moderately by 7% (BRL127 million) to BRL1.7 billion in December 2007, from BRL1.8 billion in December 2006, with a cash increase of BRL439 million that reached BRL608 million at the end of 2007. In addition, it is expected to sell its pay TV assets in the first half of 2008 for BRL7 million. As of the end of 2007, the total adjusted debt/EBITDA ratio decreased to 3.1 times, from 3.8 in 2006, consistent with the rating category and Fitch's expectations. The high cash volumes at the end of 2007 and the strategy to improve debt profile should continue to benefit the consolidated group's credit protection measures. The expectation is that debt can be reduced through the existing liquidity and that total adjusted debt/EBITDA ratio would be close to 2.5 at the end of 2008 and remain at this level for the medium term. Although regulatory risk remains an ongoing credit concern, the current electric industry model is generally positive and, in Fitch's view should support growth and stability in the sector. The regulatory framework requires distributors to sign long-term contracts with the generators to cover future electricity demand, and the new electric power industry model ensures total transfer of their non-manageable costs via tariffs. The systemic risk of an imbalance between energy supply and demand in the next years is manageable. This may grow if the market eventually records higher growth rates, associated with hydrologic and gas supply restrictions. Energisa SA -- http://www.energisa.com.br/-- is a holding company that controls the electric energy distributors Sociedade Anonima de Eletrificacao da Paraiba (Saelpa), Empresa Energetica de Sergipe (Energipe), Companhia Forca e Luz Cataguazes- Leopoldina, Companhia Energetica da Borborema, and Companhia de Eletricidade de Nova Friburgo. The group serves approximately two million clients and has distributed 7,278 gigawatt hours in 2007 in the states of Paraiba, Sergipe, Minas Gerais, and Rio de Janeiro. The group's energy generation installed capacity is insignificant. The group's controlling shareholder is the Botelho family. MILACRON INC: Inks EUR27 Million Credit Pact With Lloyds TSB ------------------------------------------------------------ Milacron Inc. has signed a five-year, asset-based revolving credit program through which Lloyds TSB Group plc will provide as much as EUR27 million of aggregate financing to certain Milacron operations in Europe for working capital purposes. "This new ABL (asset based lending) program will allow us to replace some shorter-term credit commitments while providing incremental financing for our global working capital needs, including meeting our pension funding obligations," said Ross A. Anderson, Milacron senior vice president and chief financial officer. "Because of the substantial inter-company indebtedness created by our U.S. refinancing of European bonds in 2004, we will be able to apply the proceeds to these obligations in a tax-efficient manner," he added. "We are delighted to provide this new facility to Milacron across their major operating areas in Western Europe," said Martin Ward, International Development Director, Lloyds TSB Commercial Finance. "Once again we are seeing the relevance of ABL facilities to growing multinational companies throughout Europe, and this deal reconfirms the logic of us building Lloyds TSB's International footprint in the ABL sector through our Commercial Finance operations." The credit program consists of two parts: asset-secured loans to Milacron subsidiaries in Germany, Holland and Belgium and an accounts receivable factoring facility between Milacron's German operations and Lloyds TSB Commerce Finance. Based on current asset levels, total borrowing and factoring capacity under the new program when fully operational is expected to exceed EUR20 million. Principal terms of the program are being filed with the U.S. Securities and Exchange Commission. About Lloyds TSB Lloyds TSB Commercial Finance is part of the Lloyds TSB Group. Its services can meet the needs of businesses ranging from start-up through to major global PLCs. Its approach to asset backed lending (ABL) means that customers benefit from a far more tailored approach to finance, where different elements of ABL can be added to the funding mix according to the needs and lifestage of the individual business. Asset backed lending offers a flexible and secure way for businesses to raise the finance they need for expansion, growth, MBOs, MBIs and other opportunities, against assets such as the debt book, stock, plant and machinery and property. About Milacron Headquartered in Cincinnati, Ohio, Milacron Inc. -- http://www.milacron.com/-- is a global manufacturer and supplier of plastics-processing equipment and related supplies. Milacron is also one of the largest global manufacturers of synthetic water-based industrial fluids used in metalworking applications. The company has major manufacturing facilities in Brazil, North America, Europe, and Asia. As of Dec. 31, 2007, the company's balance sheet showed total assets of US$592.9 million and total liabilities of US$644 million, resulting in a US$51.1 million stockholders' deficit. Deficit, at Dec. 31, 2006, was US$21.3 million. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 27, 2007, Moody's Investors Service lowered the ratings of Milacron Inc. Corporate Family, to Caa2 from Caa1; Probability of Default, to Caa2 from Caa1; and senior secured notes, to Caa2 from Caa1. The lowered ratings reflect the company's weak credit metrics and ongoing cash flow pressures. PROPEX INC: Board Names Woody McGee as New President and CEO ------------------------------------------------------------ The board of directors of Propex Inc. appointed Woody McGee as the interim President and Chief Executive Officer of the company, effective March 17, 2008. Mr. McGee is a seasoned executive consultant with Cerberus Capital Management, L.P. and has extensive experience in executive management and the restructuring of companies in a wide variety of industries domestically and internationally. Mr. McGee's most recent assignment was helping Global Home Products, a US$550 million consumer products manufacturer and importer, successfully emerge from Chapter 11. Prior to Mr. McGee's relationship with Cerberus Capital Management, L.P. his career spanned 30 years with Litton Industries Inc. and Telxon Corporation. "I am truly excited to be joining Propex at this challenging time," Mr. McGee, president and CEO said. "My focus will be to work with the entire Propex team to best position the company to grow and prosper in the current marketplace while getting ready to capitalize on our future beyond Chapter 11." Mr. McGee replaces Joseph F. Dana who is retiring after more than 20 years of dedicated service to the Propex and Synthetic Industries families. "Joe's vision, commitment and team building philosophy have helped guide Propex for many years," Billy Oehmig, a representative of the board of directors, said. "At the wishes of the board, Joe has agreed to continue to provide the Company with advice and counsel. We extend our most heartfelt thanks, and wish him and his wife Tammy the best in the years to come." The company will provide updates regarding ongoing operations plans as they become available. 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; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) UAL CORPORATION: Continental Airlines Is First Choice for Merger ---------------------------------------------------------------- United Air Lines Inc. would pursue a consolidation with Continental Airlines Inc. if given the go-ahead, to create the airline industry's biggest carrier, United Press International reports. Stephen Canale, a union representative on United Airlines' board of directors, said that Continental is "without question" the first choice for a United merger, UPI said. A possible merger between Delta Airlines and Northwest Airlines Corp., currently under consideration, would incite a United- Continental tie-up, according to UPI. However, as widely reported, talks between Delta and Northwest stalled last week as the two carriers' pilots disagree on how seniority issues would be addressed. If Northwest merged with another airline it would relinquish its "golden share," which amounts to veto power over any merger Continental wants to pursue, UPI notes. A deal with Continental is "a great fit business-wise and internationally. There's no two ways about that," UPI quotes Glenn Tilton, United's chief executive officer, as saying. Teamsters Union Speaks Out The Teamsters union said it will oppose a merger between United Airlines and Continental Airlines unless the deal benefits workers at both airlines. The Teamsters union represents 3,800 active airline mechanics at Continental Airlines. There are 9,300 mechanics at United now voting on whether to switch their representation to the Teamsters from the Airline Mechanics Fraternal Association. "Most airline mergers are bad for passengers, bad for workers and good for top management," said Teamsters General President Jim Hoffa. "United has a track record of giving outrageous salaries to top executives while workers suffer. A merger would probably bring more of the same." Union Coalition and AMFA Criticize UAL Management As a member of the Union Coalition at United Airlines, AMFA fully supports this position of the coalition: United Airlines will not merge with another carrier unless we -- the Union Coalition at United Airlines and AMFA -- say it will merge. It is that simple, the AMFA said in a statement. "Unionized employees have earned our place at the consolidation table. We not only endured the painful initial shock resulting from the attacks of September 11 but also suffered the layoffs and cutbacks that followed. The management of United Airlines took the mechanics and all other employees through the humiliation of a bankruptcy and extracted billions of dollars in wages, retirements, and work rules that destroyed careers, families, and lives," said the statement. In repayment for this suffering, the management team of United helped themselves to millions of dollars in stock options, bonuses, pay raises, and dividends with little consideration of its employees or customers. United Airlines owes its existence today to the sacrifices made by employees during UAL's record time in bankruptcy. UAL will not merge with another carrier unless it fully and completely restores it employees to their previous position as industry leaders in wages, benefits and work rules. "What UAL has to look forward to is a complete and total denial of cooperation should it decide to barrel ahead with any merger plans that do not take its employees back to the period when we rightfully earned top pay and benefits for being a top airline", the Local Presidents of AMFA at United Airlines disclosed in a joint statement. "It is now our turn to have a say in the future and direction of our airline. United must come to terms with its employees if it expects cooperation in any consolidation or merger action. The mechanic and related employees at United Airlines have had enough of the thievery at the expense of its employees and of management's lack of permanent interest in the company they pretend to serve. United must also keep in mind that before any merger could ever be considered by AMFA-represented employees, the company must come to terms with its US$600 million and growing liability due to its ongoing outsourcing violation involving our contract." AMFA represents over 9,400 active and furloughed mechanics and related employees at UAL, and belongs to the 30,000-member UAL Labor Collation. United Increases Fares After oil prices surged to US$111 per barrel, United increased its round-trip fares by as much as US$50 round-trip, effective March 13, 2008, reports Adam Schreck of The Associated Press. United spokeswoman Robin Urbanski explained that the increased fares are based on the length of a given trip, says AP. Trips of under 500 miles will cost travelers US$4 to US$10 more round- trip, while trips of more than 1,500 miles are now US$12 to US$50. Carriers have tried to push more of their fuel costs onto consumers, AP notes. However, stiff competition from low-cost airlines like Southwest Airlines Co. and JetBlue Airways Corp. means other carriers have rolled back their increased rates, after competing airlines failed to follow suit. "Fuel is our highest expense. The cost of it clearly continues to rise," AP quotes Ms. Urbanski, as saying. "We must be able to pass along these costs just like other businesses do." About Continental Airlines Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/ -- is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,900 daily departures throughout the Americas, Europe and Asia, serving 144 domestic and 139 international destinations. More than 500 additional points are served via SkyTeam alliance airlines. With more than 45,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 69 million passengers per year. About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' Plan. The Plan took effect May 31, 2007. (Northwest Bankruptcy News, Issue No. 88; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 154 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Fitch Ratings, on May 2007, affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. UAL CORPORATION: Denies Criminal Allegations of Former Employee --------------------------------------------------------------- UAL Corporation and its debtor-affiliates dispute the allegation made by Edward G. Southworth that they violated criminal laws. Mr. Southworth is a former pilot for United Air Lines, Inc., who challenges the procedures by which the Debtors disbursed his pension funds to his ex-wife, Julie A. McKenzie, pursuant to a Qualified Domestic Relations Order issued by the Court of Common Pleas, Cuyahoga County, Ohio, Michael B. Slade, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, told the Court. "Mr. Southworth is unhappy that QDRO disbursements from his Pilot Directed Account Plan zeroed out his account," Mr. Slade noted. Mr. Southworth filed a claim against the Debtors based on their implementation of the QDRO, and their administration of his PDAP account. The Debtors did not disburse the funds out of any animosity toward Mr. Southworth, Mr. Slade pointed out. Rather, Mr. Slade explained, the Debtors simply acted in accordance with orders from the Ohio court adjudicating Mr. Southworth's "contentious" divorce proceedings -- including a temporary restraining order that Mr. Southworth requested to prevent disbursement -- and PDAP requirements. Any delay in disbursement timing was due to Mr. Southworth's legal maneuvers in his divorce proceeding, and was no fault of the Debtors, Mr. Slade asserted. Mr. Southworth entered into a settlement agreement with the Debtors and Ms. McKenzie, in which he expressly agreed to allow specific disbursements from his PDAP account to Ms. McKenzie; hold the Debtors harmless for the disbursements; and waive any right to sue the Debtors over the disbursements, Mr. Slade told Judge Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District of Illinois. The Pension Board of the PDAP rejected Mr. Southworth's arguments regarding the administration of his account as baseless, and determined that the administrator's actions were in accordance with the PDAP's procedures, the QDRO, and other applicable law, Mr. Slade notes. Under the PDAP, the Pension Board has the exclusive power to hear and determine all disputes arising out of application or interpretation of the PDAP, or relating to benefits conferred by or participation in the PDAP, Mr. Slade says. According to Mr. Slade, the Southworth Claim: -- is precluded by the Ohio Court's divorce orders -- which the Debtors followed to the letter; and -- is barred by Mr. Southworth's agreement not to sue the Debtors over disbursements to Ms. McKenzie. Against this backdrop, the Debtors ask the Court to disallow the Southworth Claim. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 154 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Fitch Ratings, on May 2007, affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. UAL CORPORATION: SPCP Group Wants US$1,445,675 Claim Allowed ------------------------------------------------------------ SPCP Group LLC, assignee to Aeropuertos Argentina 2000 SA, asks the U.S. Bankruptcy Court for the Northern District of Illinois to allow a US$1,445,675 claim asserted against UAL Corporation and its debtor-affiliates. Counsel for Aeropuertos Argentina, Gregory S. Levine, Esq., at International Venture Partners LLC, in Chicago, Illinois, relates that the Debtors may have paid the lading charges and airstation usage charges after a change of Argentine law altered the then existing convertibility rate of "one peso -- one US dollar". However, the change of the general legal framework did not alter the Debtors' obligation to pay charges in US dollars, Mr. Levine asserts. Argentina enacted Convertibility Law No. 23,928 on April 1, 1991, pursuant to which the Central Bank of Argentina was required to buy or sell U.S. dollars at a rate of one Argentine peso per one U.S. dollar, and had to maintain a reserve in foreign currencies, gold and other instruments in an aggregate amount at least equal to the monetary base. Convertibility Law No. 23,928 remained in effect until Jan. 6, 2002, when Public Emergency Law No. 25,561 was enacted, ending over 10 years of U.S. dollar-Argentine peso parity. During this time, Mr. Levine says, heightened demand for limited U.S. dollars caused the Argentine peso to trade well above the rate of one Argentine peso per one U.S. dollar established under the Convertibility Law, which threatened to impose debtors of US dollar-denominated debts a serious burden. In order to mitigate that effect, Public Emergency Law No. 25,561 set forth the "pesification" of US dollar-denominated debts, implying that said debts could be validly cancelled by paying for each owed dollar one peso, with periodic adjustments based on official coefficients and indexes. Immediately after the enactment of Public Emergency Law No. 25,561, there was a generalized understanding that "pesification" would not affect certain debts, fundamentally referring to international trade and travel. In that context, the Debtors made an extensive interpretation of emergency "pesification" norms, so it paid in Argentine pesos, even though they were obligated to pay in US dollars, Mr. Levine states. Mr. Levine further notes that the Claim amount initially asserted by Aeropuertos Argentina should be amended to include those amounts related to non-regulated income like fees for use of check-in desks and other expenses. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 154 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Fitch Ratings, on May 2007, affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. ========================== C A Y M A N I S L A N D S ========================== ATLANTIS YACHTING: Final Shareholders' Meeting Is on March 26 ------------------------------------------------------------- Atlantis Yachting Ltd. will hold its final shareholders' meeting on March 26, 2008, at 4500 PGA Blvd., Suite 207, Palm Beach Gardens, FL 33418 USA. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) determining the manner in which the books, accounts and documentation of the company, and of the liquidator should be disposed of. Atlantis Yachting's shareholders agreed on Feb. 4, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: North County Holdings Inc. 4500 PGA Blvd. Suite 207 Palm Beach Gardens, FL 33418 USA GLOBALVEST HEDGE: Proofs of Claim Filing Deadline Is March 25 ------------------------------------------------------------- Globalvest Hedge Fund LP's creditors have until March 25, 2008, to prove their claims to David A.K. Walker and Lawrence Edwards, 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. Globalvest Hedge's shareholder decided on Dec. 7, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: David A.K. Walker and Lawrence Edwards Attn: Skye Quinn P.O. Box 258, George Town Grand Cayman, Cayman Islands Telephone: (345) 914 8678 Fax: (345) 949 4590 IBEST HOLDING: Sets Final Shareholders' Meeting for March 25 ------------------------------------------------------------ Ibest Holding Corporation will hold its final shareholders' meeting on March 25, 2008, at Brasil Telecom, S.A., SIA/SUL-ASP, Lote D, Bloco B, Brasilia, DF, Brazil. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Ibest Holding's shareholders agreed on Jan. 10, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator 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 INVESTCORP MOODY T5: Proofs of Claim Filing Deadline Is March 26 ---------------------------------------------------------------- Investcorp Moody T5 Islamic Financing Limited's creditors have until March 26, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Investcorp Moody's shareholder decided on Feb. 19, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attn: Evania Ebanks Paget-Brown Trust Company Ltd. Boundary Hall, Cricket Square P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Telephone: (345)-949-5122 Fax: (345)-949-7920 LODESTONE COMPANY: Sets Final Shareholders' Meeting for March 26 ---------------------------------------------------------------- Lodestone Company Holdings will hold its final shareholders' meeting on March 26, 2008, at Caledonian House, 69 Dr. Roy's Drive, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Lodestone Company's shareholders agreed on Jan. 31, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Griffin Management Limited Caledonian Trust (Cayman) Limited Caledonian House, P.O. Box 1043 Grand Cayman KY1-1102, Cayman Islands LUMIERE FUND: Proofs of Claim Filing Deadline Is March 27 --------------------------------------------------------- Lumiere Fund Ltd.'s creditors have until March 27, 2008, to prove their claims to Christian Vasconcellos da Cunha, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Lumiere Fund's shareholder decided on Dec. 31, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Christian Vasconcellos da Cunha 3211 Ponce de Leon Blvd, Suite 207 Coral Gables, FL 33134, USA Contact for inquiries: Bryant Terry c/o Ogier Queensgate House, South Church Street P.O. Box 1234, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 949 9876 Fax: (345) 949 1987 MARUBENI JPS: Sets Final Shareholders' Meeting for March 25 ----------------------------------------------------------- Marubeni JPS (Cayman Islands) Finance Ltd. will hold its final shareholders' meeting on March 25, 2008, at 10:30 a.m. on the 3rd Floor of Queensgate House, 113 South Church Street, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator of the company to &n