T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, March 27, 2008, Vol. 9, No. 61 Headlines A R G E N T I N A ALITALIA SPA: Air France and Unions Resume Talks ALITALIA SPA: Romano Prodi Ready to Accept Italian Bid DELTA AIR: PBGC Seeks Leave to Respond to NQ Claims Objection EMPRESA DISTRIBUIDORA: Inks 10-Year Contract With Cycsa B A H A M A S METROPOLITAN BANK: Moody's Releases First Banking Sector Report TEEKAY CORP: Unit to Acquire Vessels for US$230 Million B E R M U D A IPC HOLDINGS: To Hold First Quarter 2008 Earnings Webcast B R A Z I L BANCO CRUZEIRO: Moody's Rates US$30 Million Senior Notes at Ba1 BANCO DA AMAZONIA: Fitch Holds BB+ Long-Term Issuer Default Rtgs BR MALLS: Acquires 35% Indirect Interest in Osasco Plaza Mall CENTRAIS ELETRICAS: Regulator Okays Unit's Project With Copel CENTRAIS ELETRICAS: Says Distribution Units Won't Be Privatized COMPANHIA ENERGETICA: Brazil Cancels Stake Sale COPEL: Regulator Okays Hydro Plant Construction With Eletrosul DELPHI CORP: Court Extends Exclusive Plan-Filing Date to May 31 DELPHI CORP: Seeks More IRS Waivers Due to Delay of Emergence ENERGIAS DO BRASIL: Fails to Deposit BRL1.74B for Cesp Auction JAPAN AIRLINES: Studies Safety Measures Along With Trade Unions UAL CORPORATION: Capt. Wallach Joins Two Board Committees UAL CORP: Labor, Political Leaders Balk at Outsourcing Plan UAL CORP: Teamsters Wants Compensation Practices Overhauled UAL CORP: U.S. Workers Get US$110 Million in Profit Sharing XERIUM TECHNOLOGIES: Delays Filing of December 2007 Form 10-K XERIUM TECHNOLOGIES: Discloses Likely Bankruptcy Filing XERIUM TECHNOLOGIES: Cancels Dividend for First Quarter 2008 XERIUM TECHNOLOGIES: S&P Cuts Ratings on Likely Covenant Breach C A Y M A N I S L A N D S AHFP PANTERA: Proofs of Claim Filing Deadline Is April 3 AHFP SYMPHONY: Proofs of Claim Filing Is Until April 3 AHFP TRIATTO: Proofs of Claim Filing Deadline Is April 3 ATLAS CPO: Proofs of Claim Filing Is Until April 3 BLUECREST INT'L: Sets Final Shareholders' Meeting for April 2 FORTUNATUS ETERNUS: Proofs of Claim Filing Deadline Is April 3 GANNET V: Proofs of Claim Filing Ends on April 3 LEIF INVESTMENTS: Proofs of Claim Filing Deadline Is April 3 MONBOUQUETTE CONSULTING: Proofs of Claim Filing Is Until April 3 REDWOOD HOTEL: Court to Hear Wind-Up Petition on April 1 C H I L E RED HAT: LatAm Online Retailer Migrates to Red Hat & JBoss C O L O M B I A ECOPETROL: Will Keep 30% Stake in Caracara Concession SOLUTIA INC: Appoints Nine Members to Board Committees SOLUTIA INC: To Begin Financial Reporting on Five Segments TERMOCANDELARIA SCA: Fitch Assigns BB- LT Issuer Default Ratings C O S T A R I C A DOLE FOOD: Unit Recalls Cantaloupes From Costa Rica SIRVA INC: Court Okays Sale of U.K. & Ireland Operations to TEAM SIRVA INC: Committee Wants Class 5 Claims Bar Date Set to May 29 US AIRWAYS: S&P Affirms Ratings & Revises Outlook to Stable D O M I N I C A N R E P U B L I C AES CORP: Commits to US$1 Billion Joint Venture With Riverstone E C U A D O R PETROECUADOR: Oil Export Revenues Jump to US$1.27B in Jan.-Feb. PETROECUADOR: Saves US$199.5 Million in Three Months J A M A I C A AIR JAMAICA: 9 Stations Without TCC Provide Petrol to Workers AIR JAMAICA: Workers Launch Strike on Failed New Wage Talks M E X I C O AMERICAN TOWER: Fitch Puts 'BB+' Rating on Planned US$325MM Loan AMERICAN TOWER: Moody's Puts 'Ba1' Rating on US$325 Million Loan AMERICAN TOWER: S&P Puts 'BB+' Rating on US$325MM Loan Facility CLEAR CHANNEL: Financing Talk Glitch Threatens to Derail Merger GREENBRIER COS: Unit's Chair Resigns After Bankruptcy Filing MBIA INC: Fitch Keeps Insurer Financial Strength & Debt Ratings RETAIL PRO: Posts US$2.1 Mil. Net Loss in Quarter Ended June 30 SR TELECOM: Selling Assets to Groupe Lagasse for US$6 Million P E R U QUEBECOR WORLD: Has US$350 Million in Available Funds QUEBECOR WORLD: Lays Off One-Third of Memphis Employees QUEBECOR WORLD: Noteholders Question Panel Advisors' Engagement V E N E Z U E L A BANESCO BANCO: Launches Preferred Shares Public Offering CA LA ELECTRICIDAD: Offer & Consent Solicitation Expires April 8 PETROLEOS DE VENEZUELA: May Ink Joint Plant Pact With Petrobras PETROLEOS DE VENEZUELA: Exxon Mobil Brings Case to Netherlands X X X X X X * Moody's Evaluates Proposed Changes to Ratings System - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Air France and Unions Resume Talks ------------------------------------------------ Air France-KLM SA resumed on March 25, 2008, negotiations to receive approval from Alitalia S.p.A.'s unions for its acquisition of the Italian government's 49.9% stake in the national carrier, BBC News reports. As recently reported in the TCR-Europe, Alitalia and the present government have accepted Air France-KLM SA's binding offer, subject to several conditions including union approval. Air France, so far, has yet to convince the unions to accept its business plan, which foresees more than 2,000 job cuts. Air France has set a March 31, 2008, deadline for an agreement. The effectiveness conditions for Air France's offer include: * formal approval of the Industrial Plan 2008-2010 by Alitalia’s Board of Directors; * formal agreement in a manner satisfactory for Air France-KLM between Alitalia and the trade unions representing the majority of each category of Alitalia’s employees, regarding the implementation of the Industrial Plan, the rules of employment, the plan related to the social shock absorbers and the contemplated transaction; * formal agreement in a manner satisfactory for Air France-KLM between Alitalia and the trade unions of Alitalia Servizi representing the majority of each category of Alitalia Servizi’s employees on the necessary restructuring measures and the related shock absorbers plan; * Italy's Ministry of Economy and Finance to grant Alitalia a credit line, or the necessary guarantees to obtain a credit line in favor of Alitalia of EUR300 million to be repaid immediately after the capital increase; * formal agreement between Alitalia and Aeroporti di Roma on the Rome Fiumicino Airport and on the service levels required for the implementation of the Industrial Plan 2008-2010; * with respect to the claim brought on by SEA against Alitalia to the tribunal of Busto Arsizio, either: -- the official withdrawal from the claim; -- its settlement in a manner satisfactory to Air France; -- the granting by the MEF to Alitalia of appropriate indemnification commitments, in case necessary by enacting an appropriate law decree, or any other applicable solution satisfactory to Air France-KLM to definitely remove the risk attached to the claim; * formal agreement between Alitalia, Fintecna and Alitalia Servizi, for what concerns the interest of each party, among other things, to re-internalize in Alitalia certain activities and to renegotiate certain clauses of the service agreements; * formal written confirmation from the MEF that the general interests are properly safeguarded in the context of the contemplated transaction and it shall, subject to certain conditions, tender its Alitalia shares and Alitalia convertible bonds in the tender offers; * formal written undertaking from the competent Italian governmental authority to maintain the current portfolio of the current Alitalia’s air traffic rights, continue to address in a fair, transparent and non discriminatory manner any future requests form Alitalia for new air traffic rights, and provide cooperation and assistance in the case of any major difficulties with extra-European Community countries. 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: Romano Prodi Ready to Accept Italian Bid ------------------------------------------------------ The Italian government will favor binding offers from local groups better than presented by Air France-KLM SA, Reuters reports, citing outgoing Italian Prime Minister Romano Prodi. "We have always been open to [an offer from an Italian group], Mr. Prodi was quoted by Reuters as saying. "Of course it is desirable. The problem is whether it's there." Mr. Prodi, however, said the government has yet to receive an Italian offer is "concrete, backed by resources, [and] have an industrial plan." "So far we have not seen anything except for the plan that we have taken into consideration," Mr. Prodi said. As reported in the TCR-Europe on March 25, 2008, AirOne S.p.A. has declared it will submit an alternative bid for Alitalia in three weeks, stressing that it needs more time to draft a proposal since it was excluded from conducting due diligence on the national carrier. Deutsche Lufthansa AG may join AirOne in the counteroffer. Finance minister Tommaso Padoa-Schioppa, however, told The Financial Times that any new offer for Alitalia must be made in days, not weeks. Alitalia and the present government have accepted Air France-KLM SA's binding offer, subject to several conditions including union approval. Air France, so far, has yet to convince the unions to accept its business plan, which foresees more than 2,000 job cuts. Former Prime Minister Silvio Berlusconi, expected to return to his post following the upcoming election, has vowed to rejett Air France's offer, saying he prefer an Italian buyer for Alitalia. 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. DELTA AIR: PBGC Seeks Leave to Respond to NQ Claims Objection ------------------------------------------------------------- The Pension Benefit Guaranty Corporation seeks leave to file a brief no later than April 4, 2008, to respond to any pleading filed by claimants in response to Delta Air Lines Inc. and its debtor-affiliates' objection to the claims. The Debtors asked Judge Adlai S. Hardin of the U.S. Bankruptcy Court for the Southern District of New York to expunge 14 remaining claims that were filed by 13 retired pilots based on the termination of the Non-Qualified Benefit Plans. The Claims also assert amounts that are different from those prescribed by the NQ Pension Benefits methodologies and relate to obligations under the now terminated Qualified Plan. PBGC is the federal government agency that administers the defined benefit pension plan termination insurance program established by Title IV of the Employee Retirement Income Security Act. According to PBGC, the request allows it to comprehensively address ERISA issues raised by the parties prior to any decisions being made, which may significantly impact the Qualified Plan or the Title IV pension plan termination insurance program administered by PBGC. PBGC Agreement on Pilots Pension Plan As reported in the Troubled Company Reporter on Jan. 8, 2007, Delta confirmed, on Jan. 5, 2007, that PBGC, the federal agency charged with insuring the nation's pension plans under ERISA, has become the trustee of the Delta Pilots Retirement Plan. In December 2006, the company reached a settlement agreement with the PBGC and that the agreement had the full support of its Official Committee of Unsecured Creditors. The agreement later received approval by the U.S. Bankruptcy Court, which had previously determined that Delta could not reorganize or emerge from Chapter 11 unless the Pilot Plan was terminated. With the PBGC's agreement that the Pilot Plan meets all legal criteria for distress termination, the agency has become the Plan's trustee, with Sept. 2, 2006, established as the termination date for the Plan. In settlement of its claims against Delta and its affiliates, the PBGC will be allowed a prepetition unsecured claim against Delta of US$2.2 billion, and the debtors' proposed plan of reorganization will provide for the distribution to the PBGC of US$225 million in senior unsecured notes. Retired Delta pilots will receive in excess of US$800 million in allowed claims in respect of their lost non-qualified pension benefits. Delta's active pilots are covered by a defined contribution pension plan previously negotiated with the Air Line Pilots Association, the union representing Delta's more than 6,000 active pilots. Delta reconfirmed that it will preserve the Delta Retirement Plan, which covers ground employees and flight attendants. The ability to preserve this plan was made possible by the alternative funding provisions included in the pension reform legislation passed by Congress. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 93; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 18, 2008, Standard and Poor's said that media reports that Delta Air Lines Inc. (B/Positive/--) entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will have no effect on the ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications. EMPRESA DISTRIBUIDORA: Inks 10-Year Contract With Cycsa ------------------------------------------------------- Empresa Distribuidora y Comercializadora Norte S.A. aka Edenor has signed a 10-year contract with subsidiary Comunicaciones y Consumo aka Cycsa, Business News Americas reports. According to BNamericas, Cycsa could use Edenor's infrastructure to offer telecommunications services. Argentine news daily El Cronista relates that Edenor will get 2% of Cycsa's yearly revenues and 10% of its profits. Edenor is currently testing power line communication, which allows broadband to reach a wider audience as electric power cables are more widespread than telecommunications infrastructure with only modems as additional element required to obtain Internet access, BNamericas states. Based in Buenos Aires, Argentina, Empresa Distribuidora y Comercializadora Norte S.A. aka Edenor is the largest electricity distribution company in Argentina in terms of number of customers and volume of energy sold. The company commenced operations in 1992, as a result of the privatization of the previously state-owned SEGBA. At that time, it was granted a 95-year concession to distribute electricity on an exclusive basis in its concession area, the greater Buenos Aires metropolitan area and northern portion of the City of Buenos Aires. EASA, which is controlled by Dolphin Energia S.A., is Edenor's holding company. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 1, 2007, Standard and Poor's Argentina assigned its 'B' Rating on US$220 Million Bond issued by Empresa Distribuidora y Comercializadora Norte S.A with annual fixed interest rate of 10.5% Notes due 2017. S&P said the outlook is positive. ============= B A H A M A S ============= METROPOLITAN BANK: Moody's Releases First Banking Sector Report --------------------------------------------------------------- Reforms to the Philippine banking system undertaken since the Asian currency crisis have helped to improve the regulatory and supervisory system, but confidence would be further enhanced by greater transparency, formalization of procedures and institutionalization of reforms, says a new report from Moody's Investors Service. "Bank credit risk in the Philippines has been elevated by a difficult operating environment, a new and developing supervisory and regulatory framework, and low level of government support," says Richard Lung, a senior analyst and author of the report, who also notes that proposed legislation, which would correct for some of the deficiencies in the supervisory framework, is pending in the Philippine Congress. "These challenges outweigh the benefits derived from the dominant role of banks within the financial system, and also help explain the low intrinsic financial strength and deposit ratings of the Moody's-rated Philippine banks," says Lung. The report is the first in a series of overviews on banking systems throughout the world, and is designed to complement Moody's banking system outlook reports by serving as reference guides to key structural factors that are reflected in Moody's bank credit ratings. The report notes that Philippine banks have historically faced little competition from the domestic capital markets or from non-bank financial institutions. As the dominant financial intermediaries, they have developed strong earnings profiles, which have been further buttressed by the fact that most of the large banks have universal banking licenses through which they can offer a wide range of financial services. However, banks in the Philippines are exposed to potentially high credit losses (as was experienced following the Asian financial crisis) due to their operating environment. In addition to the moderately high volatility in the country's business cycles, credit losses have historically been exacerbated by weak governance. As a result, once asset quality has begun to deteriorate, recovery from credit losses has been prolonged by deficiencies in the legal system preventing an orderly and expeditious resolution of bad assets. In considering external support factors, Moody's assesses the Philippines to be a low-support country based on the relatively low importance of the banking sector relative to the size of the economy, the uneven history of past government interventions and limits on deposit insurance coverage. The report, "Banking System Overview -- Philippines", can be found at http://www.moodys.com/ Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * As reported on Nov. 6, 2006, that Moody's Investors Service revised the outlook of Metropolitan Bank & Trust Co.'s foreign currency long-term deposit rating of B1 and foreign currency subordinated debt rating of Ba3 from negative to stable. TEEKAY CORP: Unit to Acquire Vessels for US$230 Million ------------------------------------------------------- The Royal Gazette reports that Teekay GP LLC is buying the Arctic Spirit and Polar Spirit from Teekay Corporation for US$230 million. Teekay GP LLC, the general partner of Teekay LNG Partners LP, effective April 1 will acquire the vessels and immediately charter the vessels back to Teekay Corp. for 10 years, with options to extend the charter up for an additional 15 years, the report relates. These charters would generate approximately US$27 million per year in operating cash flow to the partnership, the report adds. Teekay Corp., the Gazette says, bought the vessels three months ago from a joint venture of ConocoPhillips and Marathon Oil Corp. for US$230 million and chartered the vessels back to the sellers until April 2009, plus options exercisable by Teekay to extend the charter up to an additional seven years. About Teekay Corp. Headquartered in Nassau, Bahamas, Teekay Corporation (NYSE: TK) -- http://www.teekay.com/-- transports more than 10 percent of the world's seaborne oil, has built a significant presence in the liquefied natural gas shipping sector through its publicly- listed subsidiary, Teekay LNG Partners L.P. (NYSE: TGP), and is further growing its operations in the offshore production, storage and transportation sector through its publicly-listed subsidiaries, Teekay Offshore Partners L.P. (NYSE: TOO) and Teekay Petrojarl ASA (OSE: TPO). With a fleet of over 185 vessels, offices in 17 countries and 6,300 seagoing and shore- based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Moody's Investors Service affirmed its debt ratings of Teekay Corporation -- Corporate Family of Ba2, senior unsecured of Ba3 and speculative grade liquidity rating of SGL-2. Moody's changed the rating outlook to stable from negative. ============= B E R M U D A ============= IPC HOLDINGS: To Hold First Quarter 2008 Earnings Webcast --------------------------------------------------------- IPC Holdings, Ltd., will hold its First Quarter 2008 Conference Call on Friday, April 25, 2008, at 8:30 a.m. Eastern. Interested participants can log on to: http://www.videonewswire.com/event.asp?id=46856 Teleconference Number: 800-862-9098 or 785-424-1051 Conference ID: IPC Contact: Valerie T. Masters, Valerie.Masters@ipcre.bm Tel. No. (441) 298-5111 IPC Holdings, Ltd. (Nasdaq: IPCR) through its wholly owned subsidiary IPCRe Limited (Bermuda), provides property catastrophe reinsurance and, to a limited extent, aviation, property-per-risk excess and other short-tail reinsurance on a worldwide basis. * * * IPC Holdings, Ltd. carried A.M. Best Co.'s BB+ rating on the company's US$236,250,000 convertible preferred stock assigned on Nov. 1, 2005. The preferred stock will mature on Nov. 15, 2008. =========== B R A Z I L =========== BANCO CRUZEIRO: Moody's Rates US$30 Million Senior Notes at Ba1 --------------------------------------------------------------- Moody's Investors Service assigned a Ba1 long-term foreign currency debt rating to Banco Cruzeiro do Sul S.A.'s existing US$30,000,000 senior unsecured notes due in May 2010. The notes were issued under the bank's US$1,000,000,000 Global Euro Medium-Term Note Program. The outlook on the rating is stable. This rating was assigned to the bank's US$30 million senior unsecured debt due in May 2010: -- Global Long-Term Foreign Currency Debt Rating: Ba1, stable outlook Banco Cruzeiro had unconsolidated assets of BRL4,310 million and equity of BRL1,047.6 million as of December 2007. Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul SA (Bovespa - CZRS4) -- http://www.bcsul.com.br/-- is a private- sector multiple bank with operations in the consumer segment, through paycheck-deductible loans to public employees and social security beneficiaries, and in the corporate segment, offering middle-market companies short-term loans usually backed by receivables. The bank's core business is lending to civil servants, with payments automatically deducted from payrolls. BANCO DA AMAZONIA: Fitch Holds BB+ Long-Term Issuer Default Rtgs ---------------------------------------------------------------- Fitch Ratings has affirmed Banco da Amazonia S.A.'s ratings as: -- Long-term foreign and local currency issuer default ratings: affirmed at 'BB+' -- Short-term foreign and local currency issuer default ratings: affirmed at 'B' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB+' -- National Long-term rating: affirmed at 'AA(bra)' -- National Short-term rating: affirmed at 'F1+(bra)' The outlooks for the long-term IDRs and national long-term rating remain stable. The ratings of Banco da Amazonia reflect the moderate probability of institutional support from its main shareholder, Brazil's federal government, and the bank's strategic importance to the development of Brazil's northern region, responsible for 26% of loans granted there. The Individual rating reflects Banco da Amazonia's improved asset quality, strategy to grow assets, good capitalisation level and cheap funding cost provided by the transferred funds from the Constitutional Financing Fund of the North (FNO) and the Amazon Investment Fund. On the other hand, the individual rating is also affected by political influence over the bank's management, outdated technology, strong dependence on fees provided by FNO and successive deficits in the bank's defined- benefit pension fund. The Individual rating could see upward rating potential in the medium term, should Banco da Amazonia diversify its revenue stream, sustain solid performance and maintain adequate capitalisation and asset quality. The rating could be adversely affected should the bank experience quality problems in the loan portfolio (individual or shared), or potential legal problems that may incur losses for the bank. Banco da Amazonia mainly serves small rural producers and small companies in Brazil's northern region, the Amazon region. In addition to its loan portfolio, the bank co-manages FNO's portfolio. Its revenues are generated primarily through fund management fees, loan portfolio revenues and the yield on its securities portfolio Banco da Amazonia aka Basa acts as a retail bank and regional development bank for the states of Para, Amazonas, Rondonia, Roraima, Acre, Amapa, Tocantins, Mato Grosso and part of Maranhao. The national treasury of Brazil controls about 96.9% of the company's capital. BR MALLS: Acquires 35% Indirect Interest in Osasco Plaza Mall ------------------------------------------------------------- BR Malls Participacoes S.A. has acquired a 35% indirect interest in Osasco Plaza Shopping, through its subsidiaries. Osasco Plaza Shopping is a mall located in the city of Osasco, state of Sao Paulo with 12,800 m2 in Gross Leasable Area and 175 stores. The mall hosts approximately 2.5 million visitors on average per month. Additionally, the other current stakeholders of the shopping mall are committed to carrying out an expansion to be launched in 2009, which will expand the mall's Gross Leasable Area by 16,000 m2. With this acquisition, BR Malls increases its owned Gross Leasable Area from 372.3 m2 to 376.8 m2, totalling from 896.4 m2 to 909.2 m2, and now holds interests in 31 shopping malls. Headquartered in Rio de Janeiro, Brazil, BR Malls is the largest integrated shopping mall company in Brazil with a portfolio of 30 malls, representing 894.3 thousand m2 in total Gross Leasable Area (GLA) and 372.6 thousand m2 in owned GLA. BR Malls is also Brazil's largest shopping mall service provider, managing and leasing 29 malls. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to BR Malls International Finance Ltd.'s forthcoming perpetual notes. It is a wholly owned subsidiary of Brazil-based shopping mall company BR Malls Participacoes S.A. (BR Malls; BB-/Stable/--). BR Malls and its direct subsidiaries unconditionally guarantee the perpetual notes. CENTRAIS ELETRICAS: Regulator Okays Unit's Project With Copel ------------------------------------------------------------- Parana environmental regulator Instituto Ambiental do Parana has granted Centrais Eletricas Brasileiras S.A. aka Eletrobras subsidiary Eletrosul the installation license for its 361- megawatt hydro plant with Companhia Paranaense de Energia aka Copel. Business News Americas relates that the license will let Copel and Eletrosul start building the plant. Copel told BNamericas that investments in the plant will be almost BRL1 billion. Copel's President Rubens Ghilardi commented to BNamericas, "We have a commitment to make power from Maua available to consumers starting in 2011. That commitment cannot be postponed." Maua will sell power to the regulated market under 30-year contracts with 24 power distributors all over Brazil, BNamericas states. Centrais Eletricas Brasileiras SA aka Eletrobras operates in the electric power sector in Brazil. The objective of Eletrobras is to perform activities involving studies, projects, construction and operation of electric power plants, transmission and distribution lines as well as underlying trade operations arising there from. Eletrobras is tasked with the preparation of studies and with drawing up construction projects for hydroelectric generation, transmission lines and substations to supply Brazil. It engages areas involving granting loans and financing, providing guarantees, locally or abroad, and acquiring debentures of companies and holders of public electric power services under their control; providing loans and guarantees, locally or abroad, for technical and scientific research institutions; and promoting and supporting researches relating to the power sector, linked to the generation, transmission and distribution of electric power. * * * As reported in the Troubled Company Reporter-Latin America on May 22, 2007, Standard & Poor's Ratings Services raised its long-term foreign currency counterparty credit rating on Centrais Eletricas Brasileiras S.A. aka Eletrobras to 'BB+' from 'BB'. S&P said that outlook is positive. CENTRAIS ELETRICAS: Says Distribution Units Won't Be Privatized --------------------------------------------------------------- Centrais Eletricas Brasileiras S.A. aka Eletrobras' Investor Relations Executive Astrogildo Quental said in a webcast that the company's distribution units won't be privatized. Business News Americas relates that Eletrobras controls these distributors: -- Ceal, -- Cepisa, -- Boa Vista Energia, -- Manaus Energia, -- Ceam, -- Ceron, and -- Eletroacre. "Those companies were bought by the last government [the administration of Fernando Henrique Cardoso], which planned to improve them for future privatization. According to the current government strategy, we don't plan to privatize the companies, but are aiming for more efficient management. Each company operates in a state, but they could be managed as one company to give them economies of scale, for example, when purchasing transformers," Mr. Quental told BNamericas. Centrais Eletricas Brasileiras SA aka Eletrobras operates in the electric power sector in Brazil. The objective of Eletrobras is to perform activities involving studies, projects, construction and operation of electric power plants, transmission and distribution lines as well as underlying trade operations arising therefrom. Eletrobras is tasked with the preparation of studies and with drawing up construction projects for hydroelectric generation, transmission lines and substations to supply Brazil. It engages areas involving granting loans and financing, providing guarantees, locally or abroad, and acquiring debentures of companies and holders of public electric power services under their control; providing loans and guarantees, locally or abroad, for technical and scientific research institutions; and promoting and supporting researches relating to the power sector, linked to the generation, transmission and distribution of electric power. * * * As reported in the Troubled Company Reporter-Latin America on May 22, 2007, Standard & Poor's Ratings Services raised its long-term foreign currency counterparty credit rating on Centrais Eletricas Brasileiras S.A. aka Eletrobras to 'BB+' from 'BB'. S&P said that outlook is positive. COMPANHIA ENERGETICA: Brazil Cancels Stake Sale ----------------------------------------------- The Sao Paulo government has canceled the March 26 auction to privatize Companhia Energetica de Sao Paulo aka Cesp due to lack of interest from potential buyers, various reports say. According to Brazilian clearing house CBLC, pre-qualified bidders failed to deposit financial guarantees for the auction. The five bidders were identified as: -- Suez Tractebel, part of France's Suez Energy International; -- Energias do Brasil, a subsidiary of Portugal's EDP; -- Neoenergia that has Spain's Iberdrola as a key partner; -- U.S. aluminum producer Alcoa Inc; and -- Brazil's energy holding CPFL Energia Business News Americas relates that each pre-qualified bidder had to deposit BRL1.74 billion to participate in the auction. The initial purchase price was BRL6.6 billion. The Financial Times relates that the deal, which would have raised a minimum of BRL6.6 billion, has turned to uncertainty at the last minute following several companies' talks of forming a consortium to bid for the company. Sao Paulo's Governor Jose Serra told reporters that the auction failed because firms had trouble securing loans to bid for Cesp. Power firms had been worried that there was no guarantee Cesp's Jupia and Ilha Solteira plants would secure concession renewals, BNamericas states. The state was unprepared to lower the asset price and possible bidders might have been unable to support the necessary fund because of tightness in credit markets, FT reports, citing Governor Serra. Reuters states that the potential buyers objected to spending nearly BRL20 billion (US$11.5 billion) for the company as concerns grew about the renewal of licenses in two dams, Jupia and Ilha Solteira, that account for nearly two-thirds of Cesp's generation capacity. According to the report, the licenses of the two plants have already been renewed once and cannot be repeated unless the government approved the deal. The plants accounted for about 5,000 megawatts, or two-thirds of the energy Cesp generates at its six dams. Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third largest power generator, majority owned by the State of Sao Paulo. CESP operates 6 hydroelectric plants with total installed capacity of 7,456 MW and reported net revenues of BRL1,983 million in the last twelve months through Sept. 30, 2006. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 10, 2007, Standard & Poor's Ratings Services raised its ratings on electricity generator Companhia Energetica de Sao Paulo, including its corporate credit rating to 'B' from 'B-'. At the same time, S&P raised its Brazil national scale ratings on CESP to 'brBBB-' from 'brBB'. S&P said the outlook remains positive on both scales. COPEL: Regulator Okays Hydro Plant Construction With Eletrosul -------------------------------------------------------------- Parana environmental regulator Instituto Ambiental do Parana has granted Companhia Paranaense de Energia aka Copel the installation license for its 361-megawatt hydro plant with Centrais Eletricas Brasileiras S.A. aka Eletrobras subsidiary Eletrosul. Business News Americas relates that the license will let Copel and Eletrosul start building the plant. Copel told BNamericas that investments in the plant will be almost BRL1 billion. Copel's President Rubens Ghilardi commented to BNamericas, "We have a commitment to make power from Maua available to consumers starting in 2011. That commitment cannot be postponed." Maua will sell power to the regulated market under 30-year contracts with 24 power distributors all over Brazil, BNamericas states. Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense de Energia SA -- http://www.copel.com/ir-- (NYSE: ELP/LATIBEX: XCOP/BOVESPA: CPLE3, CPLE5, CPLE6) transmits and distributes electricity to more than 3 million customers in the state of Parana and has a generating capacity of nearly 4,600 megawatts, primarily from hydroelectric plants. COPEL also offers telecommunications, natural gas, engineering, and water and sanitation services. The company restructured its utility operations in 2001 into separate generation, transmission, and distribution subsidiaries to prepare for full privatization, which has been indefinitely postponed. In response, Copel is re-evaluating its corporate structure. The government of Parana controls about 59% of Copel. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2006, Moody's America Latina upgraded the corporate family rating of Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale. Moody's also upgraded its rating on the company's BRL500 million senior unsecured guaranteed debentures due 2007 to Ba2 from Ba3 (Global Local Currency) as well as its rating on the BRL400 million senior secured Guaranteed debentures due 2009 to Ba1 from Ba2 (Global Local Currency). Moody's said the rating outlook is stable. This rating action concludes the review process initiated on July 26, 2006, and still hold to date. DELPHI CORP: Court Extends Exclusive Plan-Filing Date to May 31 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Delaware further extended Delphi Corp. and it debtor-affiliates' exclusive periods to: (a) file a plan of reorganization through and including May 31, 2008; and (b) solicit acceptance of that plan through and including July 31, 2008. This is the Debtors' sixth request for exclusivity extension. The Debtors' current Exclusive Plan Proposal Period expires on March 31, 2008. As reported in the Troubled Company Reporter on Jan. 28, 2008, the Court confirmed the Debtors' First Amended Joint Plan of Reorganization. The Debtors anticipate having the Plan become effective as soon as reasonably practicable. Out of an abundance of caution, however, the Debtors are seeking an extension of the Exclusive Periods to prevent any lapse in exclusivity. A further extension of the Exclusive Periods is justified by the significant progress the Debtors have made toward emerging from Chapter 11, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, related. The Debtors, he noted, have developed, solicited, and achieved confirmation of a reorganization plan that was accepted by 81% of their creditors and 78% of their stockholders. Upon the effective date of the Plan, the Debtors' comprehensive settlements with General Motors Corp., Delphi's U.S. labor unions, and other settling parties will be implemented. "All of this was the result of diligent work by the Debtors over many months," Mr. Butler averred. The Debtors' efforts, according to Mr. Butler, were affected by severe dislocations in the capital markets that began late in the second quarter of 2007 and that have continued through the first quarter of 2008. "This turbulence in the capital markets was a principal cause of the delay in the Debtors' emergence from Chapter 11 before the end of 2007," he explained. The continued turbulence constitutes an additional factor justifying a further extension of the Exclusive Periods, he asserted. Although the Court has confirmed the Plan, the Debtors must still procure fully committed exit financing that will support implementation of the Plan and consummate all of the transactions contemplated by the Plan and Delphi's investment agreement with its Plan investors. The tasks of securing exit financing and satisfying all other conditions to the effectiveness of the Plan and Investment Agreement are significant for both their magnitude and complexity and also justify an extension of the Exclusive Periods, Mr. Butler adds. The size and complexity of the Debtors' Chapter 11 cases alone constitute sufficient cause to extend the Exclusive Periods, Mr. Butler pointed out. The Debtors' request for an extension of the Exclusive Periods is not a negotiation tactic, Mr. Butler clarified. He assured the Court that the Debtors are paying their bills as they come due, including the statutory fees paid quarterly to the U.S. Trustee. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 120; 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 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. DELPHI CORP: Seeks More IRS Waivers Due to Delay of Emergence ------------------------------------------------------------- Delphi Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of Delaware to enter a supplemental order authorizing their performance under modified pension funding waivers issued by the U.S. Internal Revenue Service and related letters of credit provided by Delphi Corp. to the Pension Benefit Guaranty Corp. Specifically, the Debtors ask the Court, pursuant to Section 363(b) of the Bankruptcy Code and Rule 9019 of the Federal Rules of Bankruptcy Procedure, to authorize: (a) a further extension, until April 7, 2008, for Delphi to perform its obligations under the Pension Funding Waivers, (b) an increase of US$2,500,000 in the amounts outstanding under the PBGC Letters of Credit; and (c) an extension of the PBGC Letters of Credit through April 22, 2008. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates, Delphi's First Amended Joint Plan of Reorganization is not likely to become effective by March 31, 2008. Accordingly, Delphi applied to the IRS for another extension of the Pension Funding Waivers until April 7, 2008. In consideration for the extension, Delphi has offered to: (i) extend the PBGC Letters of Credit for the benefit of Delphi's pension plans from April 15, 2008, through and including April 22, 2008, and (ii) increase the aggregate amount outstanding under the Letters of Credit by an additional US$2,500,000. Mr. Butler notes that given the PBGC's ongoing support of the Debtors' reorganization and their commitment to their pension plans, and in light of the parties' recent discussions of the Debtors' proposal for a supplemental extension, the Debtors anticipate that the PBGC will support the Debtors' proposal. The Debtors further anticipate that the IRS -- which retains sole authority to grant a supplemental extension of the Pension Funding Waivers -- after taking into account the PBGC's recommendation and conducting its own independent analysis, will authorize the supplemental extension. As of March 21, 2008, the IRS has not formally approved any extension of the Pension Funding Waivers. Nevertheless, in light of the existing expiration date for the Waivers, the Debtors have determined to seek Court approval to perform the obligations they will incur in connection with a supplemental extension. Both the PBGC and the IRS have established strong records of support for the Debtors' reorganization, within the confines of their statutory obligations. The Debtors believe that their proposal for a supplemental extension of the Pension Funding Waivers falls well within the statutory mandate of both agencies and therefore believe that their application will be accepted. 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. 120; 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 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. ENERGIAS DO BRASIL: Fails to Deposit BRL1.74B for Cesp Auction -------------------------------------------------------------- Energias do Brasil has failed to deposit BRL1.74 billion as financial guarantee to be able to participate in the March 26 auction to privatize Companhia Energetica de Sao Paulo aka Cesp, Business News Americas reports. As reported in the Troubled Company Reporter-Latin America on March 20, 2008, Energias do Brasil's Investor Relations Executive Flavia Heller said that the company wasn't able to decide whether to bid for Cesp or not. Energias do Brasil registered as a bidder in the auction of a controlling stake in Cesp, saying that it wants to join a consortium to make the bid because Cesp is too big a company for one single player to purchase. According to Brazilian clearing house CBLC, the pre-qualified bidders in the auction failed to deposit financial. BNamericas relates that other pre-qualified companies include: -- Tractebel Energia, -- CPFL Energia, -- Neoenergia, and -- Alcoa. As a result, the Sao Paulo government canceled the auction, BNamericas says. BNamericas notes that each pre-qualified bidder had to deposit BRL1.74 billion to participate in the auction. The initial purchase price was BRL6.6 billion. Sao Paulo's Governor Jose Serra told reporters that the auction failed because firms had trouble securing loans to bid for the Cesp. Power firms had been worried that there was no guarantee Cesp's Jupia and Ilha Solteira plants would secure concession renewals, BNamericas states. About Companhia Energetica Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao Paulo (BOVESPA: CESP3, CESP5 and CESP6) aka Cesp is the country's third largest power generator, majority owned by the State of Sao Paulo. CESP operates 6 hydroelectric plants with total installed capacity of 7,456 MW and reported net revenues of BRL1,983 million in the last twelve months through Sept. 30, 2006. Energias do Brasil S.A. is an integrated utility group controlled by Energias de Portugal, with activities in generation, distribution and commercialization of electricity. Its power distribution subsdiaries Bandeirante, Escelsa and Enersul represent altogether some 64% of consolidated total assets, while the power generation assets represent some 31%. * * * In May 2007, Moody's Investors Service placed a Ba2 long-term corporate family rating on Energias do Brasil. JAPAN AIRLINES: Studies Safety Measures Along With Trade Unions --------------------------------------------------------------- Japan Airlines International Co., Ltd. has started jointly studying safety measures with its four unions after problems involving its flights, Kyodo News reports. According to Kyodo News, JAL and the trade unions have set up a flight safety working group to determine the causes of the incidents and to develop preventive measures. Kyodo News notes that this is the first time the management and the unions, which often conflict over wages and working conditions, agree to carry out a joint study of safety measures. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. UAL CORPORATION: Capt. Wallach Joins Two Board Committees --------------------------------------------------------- In a regulatory filing with the United States Securities and Exchange Commission, Paul R. Lovejoy, senior vice president, general counsel and secretary of UAL Corporation, disclosed that on Feb. 21, 2008, the UAL board of directors approved a recommendation from the Company's Governance Committee to allow Captain Stephen A. Wallach to serve on the Public Responsibility and Human Resources Committees of the UAL Board. As previously reported, Capt. Wallach was elected to the UAL Board effective on Jan. 1, 2008. 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, on May 2007, affirmed the long-term issuer default ratings of UAL Corporation and its principal operating subsidiary United Airlines Inc. at B- originally issued on April 11, 2006. UAL continues to carry these ratings, as well as Fitch's BB- bank loan debt rating, as of March 25, 2008. Outlook remains positive. As of March 25, 2008, UAL's long-term corporate family and probability-of-default ratings at B2 issued by Moody's Investors Service still applies. The outlook is stable. Also, UAL's B long-term foreign and local issuer credit ratings given by Standard & Poor's Ratings Services still holds as of March 25, 2008. The outlook is stable. UAL CORP: Labor, Political Leaders Balk at Outsourcing Plan ----------------------------------------------------------- Hundreds of supporters including Teamsters, United Airlines Inc. mechanics, Bay Area union members and elected officials joined Teamsters Union General President Jim Hoffa and San Francisco Mayor Gavin Newsom at a rally on the steps of City Hall to protest a plan by UAL Corporation to outsource nearly 4,500 jobs at its San Francisco International Airport maintenance facility. United currently outsources 45% of all its maintenance work to foreign repair stations that are not held to the same standards as their U.S.-based counterparts. If a proposed plan by UAL to close the maintenance facility at SFO is allowed to occur, more than 4,500 Bay Area jobs could be lost. "In Indianapolis, United closed down the maintenance base and thousands lost their jobs and it devastated the community," said Rich Petrovsky, an airline mechanic at the SFO facility. "It's time to stop outsourcing and mechanics at United are drawing the line. We are working with the Teamsters and we say to United enough is enough." Petrovsky is one of the 9,300 UAL mechanics nationwide voting on whether to retain the Teamsters Union as their bargaining representative. Under their current representaion, mechanics have seen thousands of jobs leave the country unchecked. The proposed closure of the SFO facility is just the latest threat to American jobs by UAL. "The Teamsters Union will work tirelessly to make certain that the San Francisco maintenance facility remains open," Mr. Hoffa said. "United must treat you as the highly trained and valuable workforce you are and respect the hard work you and all the United mechanics nationwide do day in and day out to ensure that our families fly on safe and secure aircraft." In addition to Newsom, the San Francisco UAL mechanics at the rally received the support of a number of state and local politicians including State Senators Leland Yee and Carol Migden, Assembly members Ira Ruskin and Fiona Ma and District Attorney Kamala Harris. "These 4,500 United Airlines mechanic jobs represent the men and women who live right here in San Francisco," Mr. Newsom said. "They send their children to our public schools, support our local economy and contribute to the fabric of our community. I would like them to remain at SFO, and I would like to see them remain organized for the benefit of their families." UAL's outsourcing and plans to close the SFO facility has also drawn criticism on a national level with U.S. Senator Barbara Boxer and presidential candidate and U.S. Senator Barack Obama authoring letters of support for the workers. "I am concerned about the future of the approximately 4,000 aviation mechanics who service aircraft at the San Francisco hub of United Airlines," Boxer said in her letter of support to the airline mechanics. "It is essential to maintain a domestic aviation mechanic workforce that is highly skilled and provides a superior level of safety and security." Obama Equally Critical of UAL's Actions "The practice of outsourcing aircraft maintenance overseas raises security concerns and pits our skilled mechanics making a middle class living against less skilled, less well protected workers abroad," Obama said in his letter addressed to the Teamster Aviation Mechanics Coalition. "I applaud your efforts to organize a strong union at United Airlines, and look forward to working with you on the critical issue of outsourcing now and in the years ahead." Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico. 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, on May 2007, affirmed the long-term issuer default ratings of UAL Corporation and its principal operating subsidiary United Airlines Inc. at B- originally issued on April 11, 2006. UAL continues to carry these ratings, as well as Fitch's BB- bank loan debt rating, as of March 25, 2008. Outlook remains positive. As of March 25, 2008, UAL's long-term corporate family and probability-of-default ratings at B2 issued by Moody's Investors Service still applies. The outlook is stable. Also, UAL's B long-term foreign and local issuer credit ratings given by Standard & Poor's Ratings Services still holds as of March 25, 2008. The outlook is stable. UAL CORP: Teamsters Wants Compensation Practices Overhauled ----------------------------------------------------------- The Teamsters sent a letter to UAL Corporation demanding that it overhaul its compensation practices. If the company makes no significant changes, the International Brotherhood of Teamsters General Fund will urge fellow shareholders to withhold votes from directors serving on the subcommittee that set UAL's exorbitant executive pay. "On the heels of a three-year bankruptcy, UAL rewarded its CEO with US$39.7 million. This level of excess is indefensible," said C. Thomas Keegel, general secretary-treasurer of the Teamsters General Fund. The letter was sent Feb. 20, 2008, to UAL's Human Resources Subcommittee in anticipation of this year's proxy season. The union's General Fund requests that the Human Resources Subcommittee hire a new compensation consultant; change its comparative peer group for compensation from similarly sized businesses to airlines; reduce excessive golden parachutes; and appoint new directors to the subcommittee. "Long-term shareholders have watched their investments erode, the Pension Benefit Guaranty Corporation was forced to take on the company's pension obligations, and thousands of workers have either lost their jobs or suffered significant cuts in wages, healthcare and pensions. Aircraft maintenance workers' pensions were cut in half," Keegel said. "How does this kind of performance generate an almost US$40 million pay package? Directors must be held accountable for these decisions." In its letter, the Fund said UAL executives are the highest paid airline executives. Even the lowest paid UAL senior executive officer's pay exceeds that of CEOs at peer airlines. The letter also criticized the track records of the directors on their other board service, calling their collective executive compensation experience and performance record "a 'perfect storm' of flawed practices." "While UAL's board is faced with critical decisions regarding potential mergers, acquisitions and spin-offs, shareholders need to know that these choices will be made with a focus on creating long-term value," Keegel said. "Executive compensation must not drive UAL's business plan. If we don't see substantial changes in pay practices following our recommendations, we will ask our fellow shareholders to join us in withholding votes from these directors come May." The Teamsters union has long fought to curtail excessive executive pay, initiating successful executive severance reform at Bank of America, Coca-Cola, McKesson and General Electric. The Teamsters work closely with a coalition of other institutional investors pressing for pay-for-performance reforms through shareholder resolutions and discussions with companies. 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, on May 2007, affirmed the long-term issuer default ratings of UAL Corporation and its principal operating subsidiary United Airlines Inc. at B- originally issued on April 11, 2006. UAL continues to carry these ratings, as well as Fitch's BB- bank loan debt rating, as of March 25, 2008. Outlook remains positive. As of March 25, 2008, UAL's long-term corporate family and probability-of-default ratings at B2 issued by Moody's Investors Service still applies. The outlook is stable. Also, UAL's B long-term foreign and local issuer credit ratings given by Standard & Poor's Ratings Services still holds as of March 25, 2008. The outlook is stable. UAL CORP: U.S. Workers Get US$110 Million in Profit Sharing ----------------------------------------------------------- UAL Corporation subsidiary, United Airlines Inc., distributed US$110 million in profit sharing payments to U.S.-based employees. For the year, employees earned a total of US$170 million in payments related to 2007 performance. Eligible employees can expect to receive a profit sharing payment of approximately US$1,200 before withholdings for every US$30,000 of eligible earnings. "T[he recent] profit sharing payments are a result of the strong performance by our employees in 2007," said Glenn Tilton, United chairman, president and CEO. "Our employees worked together and stayed focused on our performance and customers, in a year of challenging weather and difficult ATC conditions. We are all proud of what we accomplished together and look forward to building upon that in 2008." Profit sharing will be paid to most U.S.-based employees today, and union-represented employees will also receive their Success Sharing payout for United's 2007 financial performance. AFA-represented employees elected to receive their profit sharing award in the form of a company contribution to their 401(k) to the extent possible. 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, on May 2007, affirmed the long-term issuer default ratings of UAL Corporation and its principal operating subsidiary United Airlines Inc. at B- originally issued on April 11, 2006. UAL continues to carry these ratings, as well as Fitch's BB- bank loan debt rating, as of March 25, 2008. Outlook remains positive. As of March 25, 2008, UAL's long-term corporate family and probability-of-default ratings at B2 issued by Moody's Investors Service still applies. The outlook is stable. Also, UAL's B long-term foreign and local issuer credit ratings given by Standard & Poor's Ratings Services still holds as of March 25, 2008. The outlook is stable. XERIUM TECHNOLOGIES: Delays Filing of December 2007 Form 10-K ------------------------------------------------------------- Xerium Technologies, on March 18, 2007, filed a notice of late filing on Form 12b-25 with the U.S. Securities and Exchange Commission with respect to its annual report on Form 10-K for the period ended Dec. 31, 2007. In light of the company’s risk of financial covenant default under its Credit and Guaranty Agreement, Stephen Light, the company’ new chief executive officer who was appointed effective Feb. 11, 2008, and other members of senior management have been devoting the substantial portion of their time seeking solutions to these financial covenant issues. In addition, in connection with the company’s annual assessment of goodwill, the company has concluded that an impairment of the goodwill of its roll covers segment may exist. While the company does expect there to be an impairment, the company requires further time to complete the analysis of whether an impairment does in fact exist and, if so, the amount of the impairment. As a result of these two matters, the company has not completed its financial statements and certain disclosures for inclusion in its annual report for the period ended Dec. 31, 2007. About Xerium Technologies Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. XERIUM TECHNOLOGIES: Discloses Likely Bankruptcy Filing ------------------------------------------------------- Xerium Technologies disclosed in a regulatory filing with the U.S. Securities and Exchange Commission on March 18, 2008 that while it was in compliance with it financial covenants under the Credit Agreement as of Dec. 31, 2007 and expects that it will generate cash flow from operations sufficient to service the debt under the Credit Agreement prior to the stated maturity of the debt if there is not otherwise an event of default under the debt, the company is currently pursuing alternatives to address expected financial covenant non-compliance in the first quarter of 2008 and future periods. Failing to meet a financial covenant under the Credit Agreement constitutes an event of default under the Credit Agreement. While the company does not expect that the lenders would do so immediately, upon an event of default, the lenders could accelerate the debt under the Credit Agreement, causing it to become due and payable. If this were to occur, the company would need to consider all options available to it, which could include a possible bankruptcy filing. The company is in discussions with potential investors regarding a private placement of equity securities, the net proceeds of which the company would use to pay down debt under the Credit Agreement, and is also seeking an amendment to the financial covenants under the Credit Agreement with its lenders. There can be no assurance that the company will be successful in completing either the private placement or the amendment or that, if achieved, these will be achieved at a sufficient level and on sufficient terms to allow the Company to meet the financial covenants under the Credit Agreement and to operate effectively in future periods. If the company is not able to address the financial covenant non-compliance issues described, the company expects that its independent auditors would need to include an explanatory paragraph in their opinion with respect to the Company’s financial statements for the year ended Dec. 31, 2007 expressing doubt about the ability of the Company to continue as a going concern. About Xerium Technologies Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. XERIUM TECHNOLOGIES: Cancels Dividend for First Quarter 2008 ------------------------------------------------------------ Xerium Technologies disclosed that pursuant to its dividend policy, the company’s Board of Directors has determined not to declare a dividend on the company’s common stock in the first quarter of 2008. The company has instead determined to retain cash that would have otherwise been used for a dividend for the repayment of debt or other purposes. The company does not currently expect to pay dividends on its common stock for the foreseeable future. Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. XERIUM TECHNOLOGIES: S&P Cuts Ratings on Likely Covenant Breach --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating and bank loan ratings on Youngsville, North Carolina- based Xerium Technologies Inc. to 'CCC+' from 'B+'. At the same time, the ratings were placed on CreditWatch with negative implications. "The downgrade and CreditWatch placement reflect the increased likelihood of a bankruptcy filing, as Xerium announced that it expects to breach certain financial covenants under its current credit facility during the first quarter and future periods, which could constitute a default under the facility," said Standard & Poor's credit analyst James Siahaan. Xerium, a global manufacturer of clothing and roll covers used in the paper making process, is seeking relief from creditors and is attempting to privately place equity to help remedy the situation. However, these proposed solutions are unlikely to be satisfactory, given current credit and equity market conditions. Xerium also filed a Form 12b-25 report with the SEC, indicating that it would be unable to file its annual report in a timely fashion. The company requires additional time to determine the specifics of a possible asset impairment on its roll covers operation. The confluence of these issues has resulted in a dramatic weakening of the company's credit quality. S&P could lower the ratings further if Xerium fails to complete an equity issuance and rectify its covenant violation. Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. ========================== C A Y M A N I S L A N D S ========================== AHFP PANTERA: Proofs of Claim Filing Deadline Is April 3 -------------------------------------------------------- AHFP Pantera's creditors have until April 3, 2008, to prove their claims to Bobby Toor and Dwight Dube, 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. AHFP Pantera's shareholders agreed on Feb. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Dwight Dube Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands AHFP SYMPHONY: Proofs of Claim Filing Is Until April 3 ------------------------------------------------------ AHFP Symphony's creditors have until April 3, 2008, to prove their claims to Bobby Toor and Dwight Dube, 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. AHFP Symphony's shareholders agreed on Feb. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Dwight Dube Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands AHFP TRIATTO: Proofs of Claim Filing Deadline Is April 3 -------------------------------------------------------- AHFP Triatto's creditors have until April 3, 2008, to prove their claims to Bobby Toor and Dwight Dube, 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. AHFP Triatto's shareholders agreed on Feb. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Dwight Dube Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands ATLAS CPO: Proofs of Claim Filing Is Until April 3 --------------------------------------------------- Atlas CPO Series III Limited's creditors have until April 3, 2008, to prove their claims to Joshua Grant and Sarah Kennedy, 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. Atlas CPO's shareholder decided on Feb. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Joshua Grant and Sarah Kennedy Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands BLUECREST INT'L: Sets Final Shareholders' Meeting for April 2 ------------------------------------------------------------- Bluecrest International Limited will hold its final shareholders' meeting on April 2, 2008, at 9:00 a.m., at Close Brothers (Cayman) Limited, on the 4th Floor of Harbor Place in George Town, 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 to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Bluecrest International's shareholders agreed on Feb. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: John Sutlic Attn: Kim Charaman Close Brothers (Cayman) Limited Harbor Place, Fourth Floor P.O. Box 1034, Grand Cayman, KYI-1102 Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 FORTUNATUS ETERNUS: Proofs of Claim Filing Deadline Is April 3 -------------------------------------------------------------- Fortunatus Eternus Limited's creditors have until April 3, 2008, to prove their claims to Royhaven Secretaries Limited, 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. Fortunatus Eternus' shareholders agreed on Feb. 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Royhaven Secretaries Limited Attn: Sharon Meghoo Coutts House 1446 West Bay Road P.O. Box 707, Grand Cayman KY1-1107 Cayman Islands Telephone: 945-4777 Fax: 945-4799 GANNET V: Proofs of Claim Filing Ends on April 3 ------------------------------------------------ Gannet V Funding Corporation's creditors have until April 3, 2008, to prove their claims to Bobby Toor and Steven O'Connor, 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. Gannet V's shareholders agreed on Feb. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Steven O'Connor Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands LEIF INVESTMENTS: Proofs of Claim Filing Deadline Is April 3 ------------------------------------------------------------ Leif Investments Limited's creditors have until April 3, 2008, to prove their claims to Joshua Grant and Giles Kerley, 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. Leif Investments' shareholder decided on Feb. 13, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Joshua Grant and Giles Kerley Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands MONBOUQUETTE CONSULTING: Proofs of Claim Filing Is Until April 3 ---------------------------------------------------------------- Monbouquette Consulting And Advisory, Limited's creditors have until April 3, 2008, to prove their claims to Linburgh Martin and Jeff Arkley, 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. Monbouquette Consulting's shareholder decided on Feb. 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Linburgh Martin and Jeff Arkley Attn: Neil Gray Close Brothers (Cayman) Limited Fourth Floor, Harbor Place P.O. Box 1034, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 REDWOOD HOTEL: Court to Hear Wind-Up Petition on April 1 -------------------------------------------------------- The Grand Court of the Cayman Islands will hear the wind-up petition for Redwood Hotel Investment Corp. on April 1, 2008, at 10:00 a.m. at the Law Courts, George Town, Grand Cayman, Cayman Islands. Patricia Miller of 11331 Burnham Street, California, USA, filed the petition before the Grand Court on Feb. 20, 2008. Anyone who wants to attend the hearing of the petition, whether to support or oppose it, must give notice of their intention to do so by 4:00 p.m. on March 31, 2008, to the Attorneys at Law for the petitioner: Ritch & Conolly P. O. Box 1994, Queensgate House George Town, Grand Cayman Cayman Islands. The debtor can be reached at: Redwood Hotel Investment Corp. Cayman International Corporate & Marine Services Ltd. P.O. Box 822 Jack & Jill Building, Suite 10 19 Fort Street George Town, Grand Cayman KY1-1103 Cayman Islands ========= C H I L E ========= RED HAT: LatAm Online Retailer Migrates to Red Hat & JBoss ---------------------------------------------------------- Red Hat has disclosed that deRemate.com, an online trade community with presence in Argentina, Chile, Colombia and Mexico, has migrated to Red Hat and JBoss solutions to create an in-house-controlled portal to enable the payment of purchases completed through the company’s online retail sites throughout the region. Using Red Hat Enterprise Linux and JBoss Enterprise Application Platform on Dell PowerEdge hardware, the company has achieved cost savings, reliability, ease of implementation and scalability. Formerly relying on a third party for services, deRemate.com decided to search for a cost-effective and reliable solution that could provide flexibility and reliable support in developing its in-house portal. It ultimately selected Red Hat Enterprise Linux and JBoss Enterprise Application Platform for the solutions’ customizable flexibility and low costs. “In our initial research, we examined competitive solutions in the industry according to their performance, reliability, scalability and economic benefits. We determined that the leading solutions delivered by Red Hat and JBoss were the best fit in terms of this criteria,” said Alfredo Yung, CTO at deRemate.com. “We are happy with our decision to implement Red Hat and JBoss solutions because we believe that we’ll have the best, most cost-effective solution available.” With Red Hat and JBoss solutions, deRemate.com created a new architecture for its transactional sites and in June 2007, deRemate.com introduced DePagos.com, a payment platform that allows any user, individual or company to receive or send online payments in a safe, fast and secure way, only using an email address. The solution, currently only in operation in Argentina and Chile, is expected to be rolled out in Colombia and Mexico in the near future. In Argentina, DePagos.com has achieved significant cost savings, enjoyed its new solution’s transparency and benefited from reduced use of resources, requiring only 10-15 people within its organization for the development, operation and testing phases of its implementation. “Our experience with our new combined Red Hat and JBoss solution and the related support has been excellent. We’re happy to be dealing with products with an established presence in the market, with a large community of developers backing them up and with the support of well-known organizations,” said Mr. Yung. “Our new solution has larger potential than we’re even using so far, so we’ll later see what other business opportunities arise from our new platform, and how our business will evolve as a result.” Headquartered in Raleigh, North Carolina Red Hat, Inc. -- http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 19, 2007, Standard & Poor's Ratings Services revised its outlook on Red Hat Inc. to positive from stable and affirmed the ratings, including the 'B+' corporate credit rating. =============== C O L O M B I A =============== ECOPETROL: Will Keep 30% Stake in Caracara Concession ----------------------------------------------------- Ecopetrol will keep its 30% stake in the Caracara concession after Spanish oil firm Compania Espanola de Petroleos SA agreed to purchase a majority interest in the concession, Dow Jones Newswires reports. Dow Jones notes that the Caracara concession is in Colombia's Llanos Basin. According to Compania Espanola, it will get a 70% stake in the concession from its current operator and owner Hupecol Caracara LLC, while the rest of the stake will remain in hands of Ecopetrol. Dow Jones relates that the accord is part of Compania Espanola's strategy to increase reserves and production through the investment of US$1.8 billion through 2012. The transaction is awaiting approval from the regulator. Compania Espanola told Dow Jones that the project has an output of 20,000 barrels a day and estimated reserves of 40 million barrels. Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. Ecopetrol produced 385,000 barrels a day of oil and gas in 2006 and has 330,000 barrels a day of refining capacity, according to the company's Web site. In 2005 it produced about 60 percent of Colombia's daily output. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A.'s foreign and local currency issuer default ratings at 'BB+' and 'BBB-', respectively. SOLUTIA INC: Appoints Nine Members to Board Committees ------------------------------------------------------ On March 7, 2008, nine individuals were elected to serve as members of the committees of Solutia Inc.'s board of directors, according to Rosemary L. Klein, Solutia senior vice president, general counsel and secretary, in a regulatory filing with the U.S. Securities and Exchange Commission. These are: (a) Audit & Finance Committee W. Thomas Jagodinski - Chair of the Committee Robert K. deVeer, Jr. J. Patrick Mulcahy Robert A. Peiser Gregory C. Smith (b) Executive Compensation & Development Committee J. Patrick Mulcahy - Chair of the Committee Eugene I. Davis Robert K. deVeer, Jr. James P. Heffernan William T. Monahan (c) Governance Committee Robert A. Peiser - Chair of the Committee Eugene I. Davis James P. Heffernan W. Thomas Jagodinski Gregory C. Smith About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE: SOA-WI) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03- 17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. Solutia emerged from chapter 11 protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No. 122; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on March 5, 2008, Standard & Poor's Ratings Services raised its corporate credit rating on Solutia Inc. to 'B+' from 'D', following the company's emergence from bankruptcy on Feb. 28, 2008, and the implementation of its financing plan. The outlook is stable. S&P also affirmed its 'B+' rating and '3' recovery rating on Solutia's proposed senior secured term loan. In addition, S&P assigned its 'B-' rating to Solutia's US$400 million unsecured bridge loan facility. S&P also withdrew its 'B-' rating on the proposed US$400 million unsecured notes, which have been replaced by the bridge facility in Solutia's capital structure. SOLUTIA INC: To Begin Financial Reporting on Five Segments ---------------------------------------------------------- Solutia Inc. will realign its financial reporting to five segments from its current two-segment reporting structure. The five segments will be: Saflex(r), CPFilms(r), Technical Specialties (including Flexsys(r), Therminol(r) and Skydrol(r)), Integrated Nylon, and Other. "This change will promote a better understanding of the underlying nature of Solutia's businesses by providing a more detailed analysis of each segment," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. "In addition, the new segment reporting