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 Friday, March 28, 2008, Vol. 9, No. 62 Headlines A R G E N T I N A ALITALIA SPA: Air France-KLM to Present New Proposal to Unions ASOCIACION MUTUAL: Trustee Filing Individual Reports on April 14 COMVERSE TECHNOLOGY: Receives Wells Notice from SEC Staff FARMACIA DE MEDRANO: Trustee to Verify Claims Until May 29 FORNS CONSTRUCCIONES: Files for Reorganization in Court HOTELNET SRL: Trustee to Verify Proofs of Claim Until April 22 LANCI IMPRESORES: Trustee to Verify Proofs of Claim Until May 13 MAGAL CUER: Files for Reorganization in Buenos Aires Court PONAGRI SA: Proofs of Claim Verification Deadline is May 22 TECSYSTEM SRL: Trustee to Verify Proofs of Claim Until April 24 YPF SA: S&P Holds BB+ Rating After Holder's Sale Announcement A R U B A VALERO ENERGY: To Sell Aruba Refinery by 2008 Second Quarter B E R M U D A EXTRA POWER: Proofs of Claim Filing Deadline is April 11 MONTPELIER RE: Unit Deploys OneShield System for Admin Support SEA CONTAINERS: Wants Court to Reject US$2BB in Duplicate Claims SECURITY CAPITAL: Will Cut Workforce by 60 to Reduce Costs SECURITY CAPITAL: Fitch Drops BBB Long-Term Issuer Rating to B- B R A Z I L ABITIBIBOWATER INC: Abitibi-Consolidated Has Substantial Doubt ABITIBIBOWATER INC: Moody's Rates Unit's US$450 Mil. Loan at B1 AFFILIATED COMPUTER: Communications Dev't. Buyout to Augment Biz BANCO BMG: Secures BRL1 Billion Loan from UBS Pactual BANCO DO BRASIL: Must Pay BRL400MM Back Wages, Labor Court Says CA INC: Appoints Michael Christenson as President CENTRAIS ELETRICAS: Won't Allow Competition in Units DELPHI CORP: Court OKs US$46.2M Wheel Bearing Biz Sale to Kyklos FORD MOTOR: Sells Jaguar & Land Rover to Tata Motors for US$2.3B INTERMEC INC: Narrow Business Profile Prompts S&P's 'BB-' Rating TAM SA: Sets Record For Transporting 100,500 Passengers in a Day TAM SA: Podhurst Orseck Files Lawsuits for July 2007 Disaster TELE NORTE: Schedules General Shareholders' Meeting on April 4 USINAS SIDERURGICAS: Issues 4th Qtr. 2007 Earnings Webcast Alert C A Y M A N I S L A N D S HEADSTRONG XXX: Proofs of Claim Filing Deadline is April 1 HEADSTRONG XXX: Sets Final Shareholders Meeting for April 1 NBL FUNDING: Proofs of Claim Filing Deadline is April 3 NORMANDI LIMITED: Proofs of Claim Filing Deadline is April 3 NORTH BROOK: Proofs of Claim Filing is Until April 3 PUERTO AZUL: Proofs of Claim Filing is Until April 3 RAB PI: Proofs of Claim Filing Deadline is April 3 SPENCER HOUSE: Proofs of Claim Filing Deadline is April 3 SPENCER HOUSE CAPITAL: Proofs of Claim Filing is Until April 3 VERTEX CAPITAL: Proofs of Claim Filing Deadline is April 3 C H I L E AES CORP: Names Andrew Vesey as EVP & President for LatAm Region AES CORP: Ned Hall to Lead Wind Generation Business C O S T A R I C A ORTHOFIX INT'L: Lower Expected Cash Flow Cues Moody's Rating Cut SIRVA INC: Committee Wants to Hire BDO Seidman as Accountant SIRVA INC: Committee et al. Object to Request for Class 5 Panel SIRVA INC: IFL et al. Object to Adequacy of Disclosure Statement SIRVA INC: Triple Net Objects to Confirmation Discovery Schedule SIRVA INC: Panel Has Until April 11 to Object to DIP Financing D O M I N I C A N R E P U B L I C BANCO DE RESERVAS: Will Stop Comites de Base Payroll DELTA AIR: Expands Atlanta Flight in Dominican Rep's Santiago E C U A D O R PETROECUADOR: Chevron Expects to Win in Amazon Cleanup Case SMURFIT KAPPA: Rosemary Thorne Appointed as Board Director J A M A I C A AIR JAMAICA: Protesting Flight Attendants Return to Work CABLE & WIRELESS: Ministry to Charge Firm for Using Public Roads DIGICEL GROUP: Joins JPS Employees Cooperative Credit Union DIGICEL GROUP: Ministry to Charge Firm for Using Public Roads M E X I C O CLEAR CHANNEL: Buyers Sue Banks to Pursue US$19 Bil. Deal DENNY'S CORP: Dec. 26 Balance Sheet Upside-Down by US$178.9 Mil. DENNY'S CORP: Weak Performance Cues S&P to Give Negative Outlook EL PASO: Concludes Sale of Gulf of Mexico & Texas Assets FEDERAL-MOGUL: Court OKs Sec. 524 Transfer of Insurance Rights QUAKER FABRIC: Wants Exclusive Plan Filing Period Extended QUEBECOR WORLD: Wants to Buy Bombardier Aircraft for US$12 Mil. P E R U IRON MOUNTAIN: Moody's Lifts Rating to B1 on Strong Performance V E N E Z U E L A HARVEST NATURAL: Coker & Palmer Puts Buy Rating on Firm's Shares PETROLEOS DE VENEZUELA: New Oil Tax to Go to Heath Programs - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Air France-KLM to Present New Proposal to Unions -------------------------------------------------------------- Air France-KLM is expected to submit a revised proposal for unions at Alitalia S.p.A. since yesterday, March 27, 2008, or on March 29, 2008, various reports say, citing Air France CEO Jean- Cyril Spinetta. Air France will present a new proposal in light of continued opposition from unions to its planned acquisition of the Italian government's 49.9% stake in Alitalia. "An appropriate solution will be offered to each of the 2,100 employees concerned -- 1,600 in Alitalia and 500 in Alitalia Servizi," Air France said. The revised proposal, Agence France-Presse cites a union source, may include: * inclusion of AZ Servizi's operations at Rome's Fiumicino airport; * transfer of 180 pilots from Alitalia's cargo division to new positions within the company before its shut down in 2010. Union officials told the Associated Press that the new proposal may entail Air France-KLM absorbing hangar and some other ground operations at Rome's Leonardo da Vinci airport, which may reduce job cuts. Air France, AFP reports, might extend the negotiation period with Alitalia's unions beyond March 31, 2008. 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 around 2,100 job cuts. 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. ASOCIACION MUTUAL: Trustee Filing Individual Reports on April 14 ---------------------------------------------------------------- Armando Hugo C. Innocente y Domingo Luciano Ovejero, the court- appointed trustee for Asociacion Mutual del Circulo de Suboficiales y Agentes de Policia del Chaco's bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Resistencia, Chaco, on April 14, 2008. Armando Hugo verified creditors' proofs of claim until Feb. 26, 2008. The trustee will also submit a general report containing an audit of Asociacion Mutual's accounting and banking records in court on May 27, 2008. Armando Hugo also in charge of administering Asociacion Mutual's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Armando Hugo C. Innocente y Domingo Luciano Ovejero Monteagudo 537, Resistencia Chaco, Argentina COMVERSE TECHNOLOGY: Receives Wells Notice from SEC Staff --------------------------------------------------------- Comverse Technology Inc. received on March 21, 2008, a "Wells Notice" from the staff of the United States Securities and Exchange Commission arising out of its investigation of the company's past stock option grant practices and certain unrelated accounting matters. The company said in a regulatory filing with the Commission that the matters were the subject of an investigation by a Special Committee of the company's Board of Directors. On Jan. 29, 2008, the Special Committee confirmed the existence of option backdating and earnings manipulation. The Wells Notice provides notification that the SEC staff intends to recommend that the SEC bring a civil action against the company alleging violations of certain provisions of U.S. securities laws. Remedies that the staff of the SEC may seek could include, among other things, a civil penalty. The company intends to provide a written submission to the SEC in response to the Wells Notice before the staff makes a formal recommendation to the SEC on what action, if any, should be brought by it. About Comverse Technology Based in Woodbury, New York, Comverse Technology Inc., -- http://www.cmvt.com/-- (Pink Sheets: CMVT.PK) through its Comverse Inc. subsidiary, provides software and systems enabling network-based multimedia enhanced communication and billing services. The company's Total Communication portfolio includes value-added messaging, personalized data and content-based services, and real-time converged billing solutions. Other Comverse Technology subsidiaries include: Verint Systems (VRNT.PK), which provides analytic software-based solutions for communications interception, networked video security and business intelligence; and Ulticom (ULCM.PK), which provides service enabling signaling software for wireline, wireless and Internet communications. In Latin America, Comverse has operations in Argentina, Brazil, Mexico and Peru. * * * As reported in the Troubled Company Reporter-Latin America on March 13, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating and other ratings on New York, New York- based Comverse Technology Inc. to 'B+' from 'BB-' and removed them from CreditWatch. S&P said the outlook is negative. FARMACIA DE MEDRANO: Trustee to Verify Claims Until May 29 ---------------------------------------------------------- Maria Alejandra Barbieri, the court-appointed trustee for Farmacia de Medrano 533 S.C.S.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 29, 2008. Ms. Barbieri will present the validated claims in court as individual reports on July 16, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Farmacia de Medrano and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Farmacia de Medrano's accounting and banking records will be submitted in court on Sept. 11, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on March 16, 2009. The trustee can be reached at: Maria Alejandra Barbieri Avenida Cabildo 2040 Buenos Aires, Argentina FORNS CONSTRUCCIONES: Files for Reorganization in Court ------------------------------------------------------- Forns Construcciones SRL has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Forns Construcciones to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 13 in Buenos Aires. Clerk No. 25 assists the court in this case. The debtor can be reached at: Forns Construcciones SRL Avenida San Juan 3531 Buenos Aires, Argentina HOTELNET SRL: Trustee to Verify Proofs of Claim Until April 22 -------------------------------------------------------------- Ernesto Higueras, the court-appointed trustee for Hotelnet SRL's reorganization proceeding, will be verifying creditors' proofs of claim until April 22, 2008. Mr. Higueras will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 3 in Buenos Aires, with the assistance of Clerk No. 5, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Hotelnet and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Hotelnet's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 5, 2009. The debtor can be reached at: Hotelnet SRL Leandro N. Alem 668 Buenos Aires, Argentina The trustee can be reached at: Ernesto Higueras Sanchez de Loria 1944 Buenos Aires, Argentina LANCI IMPRESORES: Trustee to Verify Proofs of Claim Until May 13 ---------------------------------------------------------------- Estudio Ramil, Macias, Bisignano y Cacace -- the court-appointed trustee for Lanci Impresores S.R.L.'s reorganization proceeding -- will be verifying creditors' proofs of claim until May 13, 2008. Ms. Barbieri will present the validated claims in court as individual reports on June 25, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Estudio Ramil and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Lanci Impresores' accounting and banking records will be submitted in court on Aug. 22, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 19, 2009. The trustee can be reached at: Estudio Ramil, Macias, Bisignano y Cacace Lavalle 1619 Buenos Aires, Argentina MAGAL CUER: Files for Reorganization in Buenos Aires Court ---------------------------------------------------------- Magal Cuer SA has requested for reorganization approval after failing to pay its liabilities since Nov. 5, 2007. The reorganization petition, once approved by the court, will allow Magal Cuer to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 21 in Buenos Aires. Clerk No. 42 assists the court in this case. The debtor can be reached at: Magal Cuer SA Sanchez 2054 Buenos Aires, Argentina PONAGRI SA: Proofs of Claim Verification Deadline is May 22 ----------------------------------------------------------- Hector Rodolfo Arzu, the court-appointed trustee for Ponagri SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 22, 2008. Mr. Arzu will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 5 in Buenos Aires, with the assistance of Clerk No. 10, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Ponagri and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Ponagri's accounting and banking records will be submitted in court. Mr. Arzu is also in charge of administering Ponagri's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Ponagri SA Ricardo Balbin 2395 Buenos Aires, Argentina The trustee can be reached at: Hector Rodolfo Arzu Junin 55 Buenos Aires, Argentina TECSYSTEM SRL: Trustee to Verify Proofs of Claim Until April 24 --------------------------------------------------------------- Sergio Leonardo Novick, the court-appointed trustee for Tecsystem S.R.L.'s reorganization proceeding, will be verifying creditors' proofs of claim until April 24, 2008. Mr. Novick will present the validated claims in court as individual reports on June 6, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Tecsystem and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Tecsystem's accounting and banking records will be submitted in court on July 22, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 10, 2009. The trustee can be reached at: Sergio Leonardo Novick Libertad 359 Buenos Aires, Argentina YPF SA: S&P Holds BB+ Rating After Holder's Sale Announcement ------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'BB+' local currency corporate credit rating on YPF S.A. and removing it from CreditWatch with negative implications where it was placed Dec. 27, 2007. The outlook is stable. The local currency ratings were placed on CreditWatch Negative following shareholder Repsol-YPF S.A.'s (Repsol; BBB/Stable/A-2) announcement that it would sell a stake in the company, potentially signaling a decrease in parent support and a less- flexible dividend policy to repay acquisition debt at a holding company level, in a context of strong capital expenditure needs. In February 2008, Repsol sold a 14.9% stake in YPF to Argentina- based Grupo Petersen for US$2.2 billion. The Petersen Group will have an option to purchase an additional 10.1% in the next four years. The agreement also contemplates that Repsol would make a public offer for an additional 20% of YPF's share capital in secondary markets, including the Buenos Aires stock exchange. As a result, Repsol might reduce its stake to about 55% in the medium term. Thus, YPF's significance to the Repsol group may decline because of a reduced reserve base, declining production levels, and less exposure to the Argentine market. However, currently Repsol has a material controlling stake in the company, and S&P believes there are still meaningful economic incentives to support YPF if needed, mainly given YPF's equity value and its cash generation capacity. S&P therefore still factors in its ratings a certain degree of potential parent support from controlling shareholder Repsol, which currently holds 84% of the company. YPF may benefit from the Petersen Group's knowledge of Argentina's business environment, but it will also be subject to a less-flexible dividend policy, now set as at least 90% of the previous year's net income. Despite YPF's weak operating performance in its exploration and production segment, S&P expects the company to be able to maintain moderate leverage, strong cash-flow protection measures for the rating category, and an adequate ability to carry out sizable capital expenditures and to face high dividend requirements. S&P will continue closely monitoring YPF's operating performance, in light of the persistent weak reserve replacement and its expectations about potential support from its parents. "The ratings on YPF S.A. mainly reflect the challenges of operating in the highly uncertain and rapidly changing Argentine economic and regulatory environment, a geographically concentrated reserve base, very weak reserve-replacement ratios, and an aggressive dividend policy. Those factors are partially offset by YPF's moderate debt levels, the company's vertical integration of its operating units, its dominant market position in Argentina, and a certain degree of potential support from Repsol," said S&P's credit analyst Luciano Gremone. The stable outlook reflects S&P's expectations that YPF's financial performance will remain very strong in the medium- term, compensating ongoing concerns on operating performance and reserve replacement, at the current rating level. Rating upside is unlikely at this point and would require a material improvement in YPF's reserve replacement, and an improvement in S&P's perception of the risk of doing business in Argentina. On the contrary, the ratings and outlook could come under pressure if S&P perceives lower potential support from Repsol, if YPF assumes a more aggressive financial policy, with a total adjusted debt-to-EBITDA ratio above 1.5, and/or if the company's reserve replacement significantly deteriorates in the next two years. Headquartered in Buenos Aires, Argentina, YPF S.A. -- http://www.ypf.com.ar/-- is an integrated oil and gas company engaged in the exploration, development and production of oil and gas, natural gas and electricity-generation activities (upstream), the refining, marketing, transportation and distribution of oil and a range of petroleum products, petroleum derivatives, petrochemicals and liquid petroleum gas (downstream). The company is a subsidiary of Repsol YPF, S.A., a Spanish company engaged in oil exploration and refining, which holds 99.04% of its shares. Its international operations are conducted through its subsidiaries, YPF International S.A. and YPF Holdings Inc. ========= A R U B A ========= VALERO ENERGY: To Sell Aruba Refinery by 2008 Second Quarter ------------------------------------------------------------ Valero Energy Corporation would sell its Aruba refinery in the second quarter of 2008, Business News Americas reports, citing Chief Executive Officer Bill Klesse. Mr. Klesse said in a statement that the company has already a transaction and an unnamed buyer. BNamericas relates that Valero would optimize its portfolio, invest in the company's core refineries and the planned sale was part of its strategy. Mr. Klesse disclosed that the sale process has been delayed by the fire affecting the refinery's vacuum tower in January, the report adds. The refinery has capacity of 275,000 barrels per day and employed 775 workers. Headquartered in San Antonio, Texas, Valero Energy Corporation is North America's largest independent refining and marketing company, currently owning 16 oil refineries with nameplate crude oil distillation capacity of 2.6 barrels per day (bpd) and, including intermediate feedstock, 3.1 million bpd. VLO has one of the largest deep conversion capacities in North America. Its current portfolio of refineries displays a somewhat above average Nelson Complexity Index of 11.1 . Valero Energy Corporation is evaluating strategic alternatives for one to three refineries and each of the potential pro-forma scenarios would increase its current Nelson index. The pending major capital spending programs would further increase Valero Energy Corporation value adding capacity and complexity downstream from crude oil distillation. The company has operated an oil refinery in Aruba. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Moody's Investors Service placed Valero Energy Corporation's ratings on review for upgrade. Moody's previously confirmed Valero Energy Corporation's Ba1 rated subordinated debentures and Ba2 rated mandatory convertible preferred stock. The ratings still hold to date, subject to the conclusion of Moody's rating review for possible upgrade. Moody's said the outlook is still positive. ============= B E R M U D A ============= EXTRA POWER: Proofs of Claim Filing Deadline is April 11 -------------------------------------------------------- Extra Power Company Limited's creditors are given until April 11, 2008, to prove their claims to Barry Hanson, 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. Extra Power's shareholders agreed on March 20, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Barry Hanson Zobec Management Limited P.O. Box HM 926 Hamilton HM DX, Bermuda MONTPELIER RE: Unit Deploys OneShield System for Admin Support -------------------------------------------------------------- Montpelier Re Holdings Ltd.'s subsidiary, Montpelier US Insurance Company (aka. MUSIC) has deployed the OneShield Inc.'s Dragon system to support the administration of its commercial insurance product. Signing the agreement in late January 2008, Montpelier US set a goal to have the system up and in production within six weeks. "We are every excited to have been able to meet such an aggressive timetable for MUSIC. The completion of this deployment in six weeks is a true testament to the dedication and hard work of the MUSIC and OneShield teams as well as the capabilities of the Dragon Application." said Senior Vice President of Sales and Client Services, Heather Peacock. "A total team effort between OneShield and MUSIC made it possible." This marks the most rapid deployment to date of the Dragon platform. It involved both the configuration of the Dragon system to meet Montpelier US' business needs and the setup of a complete hosted solution by OneShield. Montpelier US chose the OneShield hosting solution to assure the rapid time to market required by the company. This was accomplished by a focused implementation team and Montpelier US' ability to leverage the out of the box commercial product definitions and workflows of the Dragon system. "Our company conducted a comprehensive search to find the right software solution and the right partner for supporting our rapid go to market strategy. We decided on the OneShield Dragon product due to its strong reputation, feature rich tools, and out of the box capabilities. Our teams worked seamlessly to deliver a critical system within an aggressive timeline to support the start of our new company," commented Montpelier US Vice President and Controller, Patrick Porter. OneShield Chief Executive Officer, Glenn Anschutz commented, "We are extremely pleased to have delivered on a promise to support MUSIC's newly formed operations with a solid policy administration system and a fully hosted production environment. Our ability to support the configuration, build-out and ongoing support of a hosted Dragon solution allowed their executive team to focus on building their new business." About OneShield OneShield -- http://www.oneshield.com-- provides Web browser- based solutions to automate the sales and service of insurance and bond products for insurance carriers, major brokers, and managing general agents. Its flagship product, OneShield Dragon(R), is a tools-based, data-driven insurance underwriting, policy administration, rating and workflow engine. About Montpelier U.S. Based in Scottsdale, Arizona, Montpelier U.S. Insurance Company -- http://www.montpelierus.com-- is an admitted insurer in the State of Oklahoma and is authorized to write Excess and Surplus Lines insurance in 37 States. The company is an affiliate of Montpelier Re Holdings Ltd. About Montpelier Re Holdings Ltd. Headquartered in Bermuda, Montpelier Re Holdings Ltd. -- www.montpelierre.bm -- through its operating subsidiary Montpelier Reinsurance Ltd., provides customized, innovative, and timely reinsurance and insurance solutions to the global market. The company has operations in the United States and Europe. * * * To date, Montpelier Re Holdings holds A.M. Best's "bb+" subordinated debt rating and "bb" preferred stock rating. SEA CONTAINERS: Wants Court to Reject US$2BB in Duplicate Claims ---------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to disallow and expunge 13 claims, pursuant to Sections 105 and 502(b) of the U.S. Bankruptcy Code and Rule 3007-1 of the Local Rules of Bankruptcy Practice. Amended Claim Upon review of their books, the Debtors found that Claim No. 118, which was asserted by Neoglobo E Represantacoes LDA for US$448, has been amended and superseded by subsequently-filed Claim No. 146. The Debtors note that Claim No. 146, which was asserted by Neoglobo for US$1,020, remain the claimant's sole claim against the Debtors' bankruptcy estates. Duplicate Claims The Debtors also ask the Court to expunge 10 noteholder claims because they are duplicative of the claims filed by indenture trustee, HSBC Bank USA, National Association, pursuant to certain indentures. Under the Indentures and Rule 3003(c)(5) of the Federal Rules of Bankruptcy Procedure, HSBC is authorized to file proofs of claim on behalf of all holders of senior notes issued by Sea Containers Ltd. The Duplicate Noteholders Claims are: Duplicate Surviving Surviving Claimant Claim No. Claim No. Claim Amount -------- --------- --------- ------------ Felicia Herscovici 10 58 US$151,715,468 Revocable Trust Fountain Capital 133 59 121,181,250 Management LLC Gardner, Jacob 4 59 121,181,250 Halan, Mark 51 60 107,506,250 Jones Ten/Com, Louis 7 59 121,181,250 M & Mary Elizabeth Rehner, Leonard 23 59 121,181,250 Reynolds, David F. 17 58 151,715,468 Reynolds, David F. 28 60 107,506,250 Reynolds, David F. 29 58 151,715,468 Weisbrich, Klaus 114 61 1,174,935,750 Improperly Registered Claims The Debtors object to Claim No. 143, asserted by Rene K. Griffin for $10,672, and Claim No. 144, asserted by Frank A. Stasko for US$4,472, because the claims indicate that they were intended to be filed against All American Semiconductor, Inc., a wholly separate debtor entity, which has no relation whatsoever to the Debtors. The Debtors, hence, ask the Court to expunge the claims from the claims register. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court gave the Debtors until April 15, 2008 to file a plan of reorganization. SECURITY CAPITAL: Will Cut Workforce by 60 to Reduce Costs ---------------------------------------------------------- Security Capital Assurance Ltd. said that it will reduce its workforce by approximately 60 positions. The reductions are focused largely on the insurance business origination staff and are intended to reduce long term operating costs and align resources with current needs. "Decisions such as this one are always difficult, but as we are not writing new business at this time, today's action was necessary," stated Security Capital's president and chief executive officer, Paul Giordano. "Our action today is consistent with our recently described plans, and we intend to treat our employees as fairly as we can under the circumstances. I am grateful for all the hard work and dedication of our employees, and for their continued professionalism in this very difficult environment." Security Capital Assurance Ltd. (NYSE: SCA) -- http://www.scafg.com-- is a Bermuda-domiciled holding company whose primary operating subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd, provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. * * * As reported in the Troubled Company Reporter-Latin America on March 25, 2008, Standard & Poor's Ratings Services lowered its rating on Security Capital Assurance Ltd.'s series A perpetual noncumulative preference shares to 'C' from 'BB-'. The shares remain on CreditWatch with negative implications. SECURITY CAPITAL: Fitch Drops BBB Long-Term Issuer Rating to B- --------------------------------------------------------------- Fitch Ratings has downgraded these ratings on Security Capital Assurance Ltd. and its financial guaranty insurance subsidiaries: XL Capital Assurance Inc.: XL Capital Assurance (U.K.) Ltd.: XL Financial Assurance Ltd.: -- Insurer financial strength to 'BB' from 'A'. Security Capital Assurance Ltd.: -- Long-term Issuer to 'B-' from 'BBB'; -- US$250 million fixed/floating series A perpetual non- cumulative preference shares to 'CCC' from 'BBB-'. Twins Reefs Pass-Through Trust: -- US$200 million pass-through trust securities to 'B' from 'BBB'. Fitch has also removed the affected ratings from Rating Watch Negative, where they were originally placed on Dec. 12, 2007. The rating outlook is negative. The downgrade of Security Capital Assurance Ltd. and its financial guaranty subsidiaries centers on Fitch's updated assessment of the company's capital position, a review by Fitch of the company's current capital enhancement plans, and an update on Fitch's current views of U.S. subprime related risks. The downgrade also reflects what Fitch views as the material erosion in Security Capital's franchise value and competitive business position following downgrades to well below 'AAA' by each of the three major rating agencies. Fitch believes that Security Capital's current level of capital and claims paying resources is no longer consistent with Fitch's guidelines for an investment grade insurer financial strength rating. Fitch currently believes that expected losses on the company's structured finance collateralized debt obligations (SF CDO) backed by subprime residential mortgage backed securities (RMBS) will ultimately fall within a range of about US$3 to US$4 billion. This compares to the company's modeled claims paying resources and committed external reinsurance coverage of US$4.2 billion as of Dec. 31, 2007. Expected losses reflect Fitch's current estimates of the range of projected losses over the life of these transactions, stated on a present value basis. From a present value perspective, Fitch discounts the expected future loss rates on SF CDOs by 5% over a two-year period for CDO- squareds, five years for mezzanine SF CDOs and seven years for high-grade SF CDOs. Security Capital recently disclosed that it has unilaterally terminated seven credit default swap contracts with Merrill Lynch International under which XL Capital Assurance Inc. had covered risk of losses on SF CDO transactions. While Fitch is not in a position to opine on the validity or merits of the termination, Fitch notes that a ruling in Security Capital's favor could have meaningful positive impact on the company's capital position and credit ratings in the future. Projected losses on the seven SF CDO transactions account for a material percentage of the aggregate SF CDO expected losses estimated by Fitch. According to Security Capital Assurance Ltd., Merrill Lynch International repudiated the contracts by committing to provide third parties with the same CDO control rights that it had previously promised to XL Capital Assurance Inc. Merrill Lynch disputes the terminations and has filed suit in a United States District Court to seek legal enforcement of XL Capital's obligations under the contracts. Fitch believes it could be several years before the dispute is settled. Fitch notes that Security Capital has been aiming to restore the its financial and capital position. In the interim, with the loss of its top credit ratings and its decision to defer raising additional capital at the present time, the company has chosen to forego underwriting new financial guaranty business for the foreseeable future to preserve capital. The suspension of new underwriting is expected to help the company's capital position as the company will benefit from the amortization of existing insured obligations, some of which exhaust a material amount of targeted capital. Favorably, Fitch notes that the company's maintains solid liquidity, as the company would not be expected to pay a majority of its claims, particularly on SF CDOs, for many years into the future. In addition, Security Capital is not subject to any notable collateral posting or termination provisions that could effectively accelerate the draw on its existing capital resources. Going forward, Fitch believes that it will be very difficult to stabilize the ratings of Security Capital Assurance Ltd. until the company can both raise external capital and more effectively limit the downside risk from its SF CDOs through reinsurance or other risk mitigation initiatives. Fitch does not anticipate removing the Negative Rating Outlook over the near-to- ntermediate-term until the risk of loss on the SF CDOs portfolio can be more definitively quantified. Security Capital's claims paying resources as of Dec. 31, 2007, of US$4.2 billion includes the benefits from a US$500 million reinsurance policy it maintains with a subsidiary of XL Capital Ltd., the former majority owner of Security Capital Assurance Ltd. that now owns 46% of the company. Fitch believes its current claims paying resources, including benefit of the reinsurance contract, fall below the agency's targeted 'AAA', 'AA', 'A' and 'BBB' insurer financial strength rating ranges by these amounts: -- 'AAA' capital shortfall of US$5.6 to US$5.9 billion; -- 'AA' capital shortfall of US$3.9 to US$4.5 billion; -- 'A' capital shortfall of US$1.3 to US$2.5 billion; -- 'BBB' capital shortfall, US$600 million to US$1.2 billion. Fitch's analysis of expected losses includes an assumption that underlying cumulative loss rates on residential mortgages supporting outstanding subprime residential mortgage-backed securities (RMBS) pools will average 21% in the 2006 vintage year and 26% for the 2007 vintage year. These assumed cumulative loss rates are consistent with those currently used by Fitch for its ratings of outstanding RMBS transactions. In order to address the necessary level of capital to support a financial guarantor at the highest rating levels, expected losses are further stressed to arrive at 'AA' and 'AAA' capital thresholds. This is done to capture the risk that losses could grow higher than expected due to a more severe downturn in the economy, sharper than expected declines in home prices, higher than expected loan defaults, or other adverse developments beyond expectations. The majority of Security Capital's insured SF CDO transactions were underwritten in the problematic 2006 and 2007 vintage years, and US$3.6 billion of these exposures were underwritten to non-senior tranches of the high-grade CDOs. A majority of these non-senior transactions have experienced noticeable credit deterioration and Fitch expects they will ultimately suffer high loss given defaults, and make up a disproportionate share of the company's future expected SF CDO losses. All of these non- senior transactions are part of the aforementioned Merrill Lynch contracts. Fitch's assessment of the company's capital adequacy also incorporates existing deterioration to the company's insured RMBS portfolio, particularly transactions backed by prime second-lien mortgages, which totaled approximately US$4.5 billion as of Dec. 31, 2007, and subprime RMBS transactions. Given current market conditions, many of these transactions have come under considerable ratings pressure, which increases capital requirements, and Security Capital Assurance Ltd. is expected to pay claims on several transactions in the future. Stress related to permanent credit impairment from both SF CDOs and RMBS portfolios were largely responsible for Security Capital posting case basis loss reserves of US$699.4 million in 2007. The downgrade of the holding company debt ratings reflects greater uncertainties surrounding Security Capital Assurance Ltd.'s future earnings and ability to pay dividends on its US$250 million fixed/floating series A perpetual non-cumulative preference shares. As the company announced, it deferred the dividend payment on this security in March 2008. Fitch will comment on the impact of the downgrade of XL Capital Assurance Inc.'s insurer financial strength rating on the ratings of securities insured by XL Capital in a separate release. For Dec. 31, 2007, Security Capital reported consolidated GAAP assets of US$3.6 billion and shareholders equity of approximately US$427 million. On an aggregated basis net par outstanding totaled US$165 billion as of Dec. 31, 2007. Security Capital Assurance Ltd. (NYSE: SCA) -- http://www.scafg.com-- is a Bermuda-domiciled holding company whose primary operating subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd, provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. =========== B R A Z I L =========== ABITIBIBOWATER INC: Abitibi-Consolidated Has Substantial Doubt -------------------------------------------------------------- AbitibiBowater Inc. disclosed in its 2007 annual report that its wholly owned subsidiary, Abitibi-Consolidated Inc. "is currently experiencing a liquidity shortfall and liquidity problems and there is substantial doubt about Abitibi's ability to continue as a going concern." The company's independent auditor, PricewaterhouseCoopers LLP in Montreal, Quebec, Canada, said, "In the United States, reporting standards for auditors require the addition of an explanatory paragraph (following the opinion paragraph) when the financial statements are affected by conditions and events that cast substantial doubt on the company's ability to continue as a going concern." PwC further said, "Our report to the shareholders dated March 21, 2008, is expressed in accordance with Canadian reporting standards which do not permit a reference to such events and conditions in the auditor's report when these are adequately disclosed in the financial statements." Abitibi-Consolidated Abitibi-Consolidated is currently experiencing a liquidity shortfall and faces significant near-term liquidity challenges. For the year ended Dec. 31, 2007, Abitibi reported a net loss of CDNUS$714 million, negative cash flows from operating activities of CDNUS$468 million and reported an accumulated deficit of CDNUS$1.591 billion as at Dec. 31, 2007. At Dec. 31, 2007, Abitibi-Consolidated's balance sheet showed CDNUS$6.572 billion in total assets, CDNUS$5.026 billion in total liabilities, and CDNUS$1.546 billion in total stockholders' equity. Abitibi's balance sheet at Dec. 31, 2007, showed strained liquidity with CDNUS$1.009 billion in total current assets available to pay CDNUS$1.416 billion in total current liabilities. Abitibi has a total of US$346 million of long-term debt that matures in 2008: -- US$196 million principal amount of its 6.95% Notes due April 1, 2008, and -- US$150 million principal amount of 5.25% Notes due June 20, 2008, issued by Abitibi-Consolidated Company of \ Canada, a wholly owned subsidiary of Abitibi. Abitibi also has revolving credit facilities with commitments totalling US$710 million maturing in the fourth quarter of 2008. None of these debts have yet been refinanced. These circumstances lend substantial doubt as to the ability of Abitibi to meet its obligations as they come due and, accordingly, substantial doubt as to the appropriateness of the use of accounting principles applicable to a going concern. To address these near-term liquidity challenges, Abitibi, and its parent company, AbitibiBowater Inc., have developed a refinancing plan to address upcoming debt maturities and general liquidity needs designed to enable Abitibi to repay the US$346 million due in April and June 2008 and to repay all its maturities due in 2009, while continuing to fund Abitibi's operations, debt service and capital expenditures, so it can continue as a going concern. This refinancing plan is expected to consist of: -- a US$200 million to US$300 million of new senior unsecured exchange notes due 2010; -- up to US$450 million of a new 364-day senior secured term loan secured by substantially all of Abitibi's assets other than fixed assets; -- approximately US$400 million of new senior secured notes or a term loan due 2011 secured by fixed assets; and -- US$200 million to US$300 million of new convertible notes of AbitibiBowater. The current state of the credit markets is a significant impediment to securing the necessary financing for Abitibi. Amended 2007 Annual Report AbitibiBowater Inc. filed on March 20, 2008, an amended annual report on Form 10-K for the fiscal year ended Dec. 31, 2007, that was originally filed on March 17, 2008. for the purpose of making minor revisions to -- insert the name and electronic signature of the Independent Registered Accounting Firm, and -- make certain minor edits and conforming changes, including changes to its Feb. 29, 2008, cash balance disclosures. In addition, AbitibiBowater is also including as exhibits to this Amendment the certifications required pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. AbitibiBowater Financials For the year ended Dec. 31, 2007, AbitibiBowater posted a US$490 million net loss on US$3.876 billion of sales as compared with a US$138 million net loss on US$3.530 billion of sales for the same period in 2006. At Dec. 31, 2007, AbitibiBowater's balance sheet showed US$10.319 billion in total assets, US$8.420 billion in total liabilities, and US$1.899 in total stockholders' equity. AbitibiBowater's balance sheet at Dec. 31, 2007, showed strained liquidity with US$2.142 billion in total current assets available to pay US$2.178 billion in total current liabilities. Full-text copies are available for free at: -- 2007 annual report of AbitibiBowater Inc. http://ResearchArchives.com/t/s?2983 -- 2007 amended 2007 annual report of AbitibiBowater Inc. http://ResearchArchives.com/t/s?2984 -- audited financial statements of Abitibi-Consolidated Inc. http://ResearchArchives.com/t/s?2985 About AbitibiBowater Headquartered in Montreal, Quebec, with a regional office in Greenville, South Carolina, AbitibiBowater is North America's leader in newsprint and commercial printing papers. The company also produces lumber and market pulp. The company was formed from the merger of Abitibi and Bowater Inc, in October 2007. AbitibiBowater owns or operates 27 paper and pulp facilities (excluding the Snowflake, Arizona newsprint mill) and 31 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. The company also has newsprint sales offices in Brazil and Singapore. The company's shares also trade at the Toronto Stock Exchange under the stock symbol ABH. ABITIBIBOWATER INC: Moody's Rates Unit's US$450 Mil. Loan at B1 --------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to the proposed new US$450 million secured term loan at Abitibi-Consolidate Inc's subsidiary Abitibi-Consolidated Company of Canada. At the same time, Moody's affirmed Abitibi's corporate family rating of Caa1, the probability-of-default rating of Caa3, the senior unsecured ratings of Caa2 and the B1 rating assigned to the new US$415 million secured notes due 2011. In addition, Abitibi's speculative grade liquidity rating was affirmed at SGL-4 and the rating outlook remains negative. The secured term loan will have a maturity of 364 days and will be guaranteed by Abitibi and certain subsidiaries. At closing, the loan will be primarily secured by ACCC's eligible accounts receivables and inventory. Following the close, additional assets, including the fixed assets of the Alabama River Newsprint Company, will also be pledged to secure the term loan. Because of the benefits of its security package, the term loan was assigned a rating three notches above the corporate family rating. Concurrent with the US$450 million secured term loan, ACCC and AbitibiBowater are undertaking several other financing transactions totaling approximately US$1.4 billion. Completion of the secured term loan is conditional upon receipt of at least US$1.2 billion in aggregate proceeds from the refinancing plan. Proceeds from the refinancing plan will be used to repay existing debt, pay transaction costs and provide liquidity. The corporate family rating of Abitibi reflects the company's high debt levels, its weakened liquidity profile and the company's significant refinancing risk. The rating incorporates the company's weak credit protection measures due to the declining demand for newsprint, the deteriorating markets for their sawmill operations, rising input costs and the strong Canadian dollar. Abitibi's credit profile is supported by the company's large scale and the expectation of improved cash flow from recent industry newsprint capacity reductions supporting the recently announced newsprint price increases. The negative rating outlook reflects the potential for further downward ratings adjustment due to the risk associated with the refinancing plan and the resulting impact it would have on liquidity should it fail to be completed in the amounts and expected timeframe. Assignments: Issuer: Abitibi-Consolidated Company of Canada -- Senior Secured Bank Credit Facility, Assigned a range of 08 - LGD1 to B1 Moody's last rating action on Abitibi was on March 17, 2008, when the corporate family ratings of AbitibiBowater Inc.'s subsidiaries Abitibi and Bowater Incorporated were downgraded to Caa1 from B2. At the same time, Moody's downgraded the probability-of-default rating of Abitibi to Caa3 from B2 and the probability-of-default rating of Bowater to Caa1 from B2. Moody's assigned a B1 rating to the new US$415 million secured notes due 2011 at Abitibi and downgraded the senior unsecured ratings for bonds and debentures issued by Abitibi and Bowater to Caa2 from B3. Headquartered in Montreal, Quebec, with a regional office in Greenville, South Carolina, AbitibiBowater is North America's leader in newsprint and commercial printing papers. The company also produces lumber and market pulp. The company was formed from the merger of Abitibi and Bowater Inc, in October 2007. AbitibiBowater owns or operates 27 paper and pulp facilities (excluding the Snowflake, Arizona newsprint mill) and 31 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. The company also has newsprint sales offices in Brazil and Singapore. The company's shares also trade at the Toronto Stock Exchange under the stock symbol ABH. AFFILIATED COMPUTER: Communications Dev't. Buyout to Augment Biz ---------------------------------------------------------------- Affiliated Computer Services Inc. acquired Communications Development Inc., provider of outsourced marketing, consulting, and advertising services to the transportation industry. "This acquisition strengthens our position as a leading provider of responsive, reliable, and flexible recruiting, retention, and marketing services and solutions to the transportation industry," Tom Blodgett, group president of ACS Business Process Solutions, said. "In addition to building scale and opening additional opportunities to provide incremental BPO services to our existing clients, Communications Development will enhance our ability to compete for new business from larger carriers." Communication Development's operations will be consolidated with those of ACS Expedited Solutions, providers of TripPak SERVICES(TM), a trucking document delivery, processing, scanning, and storage solution, and ACS MultiMedia Advertising. Together they will supply marketing, advertising, and retention solutions tailored to the unique needs of the long-haul trucking and transportation market. "Bringing these two highly regarded, highly successful companies together improves our ability to help our clients achieve their long-term goals," Trish Groves, president and CEO of Communications Development, said. "Our clients will continue to receive the responsive service they have come to expect, while also gaining efficiencies, advanced technologies, and the support of a reputable Fortune 500 company. We are excited about the possibilities." About Communications Development Inc. Headquartered in Maumelle, Arkansas, Communications Development Inc. is a full-service agency that manages all forms of media placement, including newspaper, magazine, internet, and satellite radio. Founded in 1990, the company's portfolio of services includes public relations, event planning, and creative design. Its many clients include IdleAire Technologies, National Freight Industries, and extensive relationships with Sirius Satellite Radio. All of Communications Development's employees will transition to ACS. About Affiliated Computer Headquartered in Dallas, Texas, Affiliated Computer Services Inc. (NYSE:ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology services to commercial and government clients. The company has two segments based on the clients it serves: commercial and government. The company provides services to a variety of clients including healthcare providers and payers, manufacturers, retailers, wholesale distributors, utilities, entertainment companies, higher education institutions, financial institutions, insurance and transportation companies. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 30, 2008, Moody's Investors Service confirmed Affiliated Computer Services' Ba2 corporate family rating with a stable rating outlook. This rating confirmation concludes a review for possible downgrade initiated on March 20, 2007. The ratings of ACS remained under review for possible downgrade. BANCO BMG: Secures BRL1 Billion Loan from UBS Pactual ----------------------------------------------------- Banco BMG has secured a five-year, two-part loan from UBS Pactual for BRL1 billion. According to Banco BMG, the first part of the loan, which is BRL600 million, will be given to the bank this week. Banco BMG told Business News Americas that the date for the second installment will still be determined. Banco BMG wants to offer housing loans with payments deducted directly from borrowers' paychecks, similar to payroll and retirement loans, BNamericas states. Banco BMG is the banking arm of Grupo BMG, which also has real estate, food manufacturing and agro industry holdings. The bank is a niche player focused on loans to civil servants, with repayments taken monthly from payrolls. BMG operates mainly through in-house representatives in state companies. It also offers leasing and asset management services. * * * As reported in the Troubled Company Reporter-Latin America on June 26, 2007, Standard & Poor's Ratings Services raised its long-term counterparty credit rating on Banco BMG S.A. to 'BB-' from 'B+'. The rating was removed from CreditWatch Positive where it was placed June 11, 2007. S&P said the outlook is stable. On March 10, 2008, Moody's Investors Rating gave Banco BMG's US$250 million issue a Ba1 long-term foreign currency debt rating with a stable outlook and the bank's US$1 billion note program a Ba1 long-term foreign currency rating with a stable outlook and a Not Prime short-term foreign currency rating. BANCO DO BRASIL: Must Pay BRL400MM Back Wages, Labor Court Says --------------------------------------------------------------- Published reports in Brazil say that the Brazilian federal labor court Tribunal Superior do Trabalho has ordered Banco do Brasil to pay some BRL400 million in back wages to 385 bank workers in Amazonas. Business News Americas relates that the case dates back to 1988, when Banco do Brasil employees filed a complaint seeking for bonuses identical to those given to central bank workers. According to BNamericas, Banco do Brasil may file an appeal against the ruling to the supreme court. This year Banco do Brasil won a case in Rio de Janeiro where about 12,000 workers sued the bank for BRL14 billion in compensation, BNamericas notes. Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * On Feb. 29, 2008, Moody's Investors Rating Service assigned a Ba2 foreign currency deposit rating to Banco do Brasil. CA INC: Appoints Michael Christenson as President ------------------------------------------------- CA, Inc. has named Michael J. Christenson as its president. He continues as the company's chief operating officer and reports to CA Chief Executive Officer John Swainson. "Since being named as chief operating officer nearly two years ago, Mike has overhauled CA's sales operations and established a more dynamic and efficient organization, focusing on establishing strong partnerships with our current and new customers to drive revenue growth," said Swainson. "In addition, Mike has led CA's efforts to significantly improve its technical support, services, strategic alliances and training capabilities." As president and chief operating officer, Christenson oversees CA's direct and indirect sales, CA Services, technical support, business development and strategic alliances. Christenson joined CA in February 2005 as executive vice president for Strategy and Business Development. In that role, he led CA's acquisition program and its integration team in the successful acquisition and integration of 15 companies with a total investment of US$1.8 billion. These acquisitions, which included such companies as Concord Communications, Niku, and Wily Technology, significantly strengthened CA's solution portfolio and made CA a stronger technology partner for its customers. He was named CA?s COO in April 2006. Following a 23-year career as an investment banker, Christenson retired from Citigroup Global Markets, Inc. in 2004. Christenson earned a Bachelor of Arts degree in chemistry from Rutgers University and a Master of Business Administration degree in finance from The New York University Graduate School of Business. About CA Inc. Based in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in Brazil, Indonesia, Luxembourg, Philippines and Thailand. * * * As reported in the Troubled Company Reporter-Latin America on March 25, 2008, Standard & Poor's Ratings Services placed its 'BB' corporate credit and senior unsecured debt ratings on Islandia, New York-based CA Inc. on CreditWatch with positive implications. As reported in the Troubled Company Reporter-Latin America on Dec. 19, 2007, Fitch Ratings affirmed CA, Inc's Issuer Default Rating at 'BB+'; Senior unsecured revolving credit facility at 'BB+'; and Senior unsecured debt at 'BB+'. Additionally, Fitch revised the Rating Outlook on CA Inc. to Stable from Negative. Fitch's actions affect approximately US$2.8 billion of total debt, including the company's US$1.0 billion revolving credit facility. CENTRAIS ELETRICAS: Won't Allow Competition in Units ---------------------------------------------------- Centrais Eletricas Brasileiras S.A. aka Eletrobras won't let its units compete against one another for contracts, Business News Americas reports. According to BNamericas, Brazilian Mines and Energy Minister Edison Lobao made the decision. BNamericas relates that this year's auction for the construction and operation of a 3.3-gigawatt Jirau hydro plant on Brazil's Madeira river will be the last time Eletrobras' subsidiaries will compete against each other. Eletrobras' Investor Relations Executive Astrogildo Quental said in a Web cast that the subsidiaries are able to compete separately for Jirau because they previously made deals to do so. 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. DELPHI CORP: Court OKs US$46.2M Wheel Bearing Biz Sale to Kyklos ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Delphi Corp. and its debtor-affiliates to sell their global wheel bearings business to Kyklos Bearing International, Inc., formerly known as Kyklos, Inc., for US$46.2 million plus other consideration. As reported in the Troubled Company Reporter on Feb. 22, 2008, Kyklos, a wholly owned subsidiary of Hephaestus Holdings, Inc., was declared the successful bidder during the Court-approved auction of the Bearings Business. In January 2008, Delphi Automotive Systems LLC and Delphi Technologies, Inc., debtor-subsidiaries of Delphi Corp., planned to sell their global bearings business to ND Acquisition Corp., or to another party submitting a higher and better offer for the business. ND Acquisition, a wholly owned subsidiary of private equity investment firm Resilience Capital Partners LLC, agreed to submit a stalking horse bid of US$44,200,000, subject to adjustments, for the Bearings Business. A full-text copy of the Sale and Purchase Agreement between the Debtors and Kyklos, dated Feb. 19, 2008, is available for free at: http://bankrupt.com/misc/Delphi_KyklosBearingsSalePact.pdf Any and all objections to the Sale not waived, withdrawn or resolved are overruled with prejudice. 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. FORD MOTOR: Sells Jaguar & Land Rover to Tata Motors for US$2.3B ---------------------------------------------------------------- Ford Motor Company has entered into a definitive agreement to sell its Jaguar and Land Rover operations to Tata Motors for US$2.3 billion. The transaction is the culmination of Ford's decision last August to explore strategic options for the Jaguar and Land Rover businesses, as the company accelerates its focus on its core Ford brand and "One Ford" global transformation. The sale is expected to close by the end of the next quarter and is subject to customary closing conditions, including receipt of applicable regulatory approvals. The total amount to be paid in cash by Tata Motors for Jaguar and Land Rover upon closing will be approximately US$2.3 billion. At closing, Ford will then contribute up to US$600 million to the Jaguar and Land Rover pension plans. Bloomberg News reports that Ford is selling its luxury brands to Tata for half the price. Bloomberg says Ford acquired Jaguar and Land Rover in separate transactions for more than US$2 billion each. "Jaguar and Land Rover are terrific brands," Alan Mulally, president and CEO, Ford Motor Company, said. "We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship. Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all." "This is a good agreement. It provides the Jaguar Land Rover management team and employees with the assurances needed to maintain their focus on delivering the best results for the business," Lewis Booth, executive vice president, Ford Motor Company, who has responsibility for Ford Europe, Volvo, Jaguar Land Rover, said. "I am confident that, under its new owner, Jaguar Land Rover will continue to build upon the significant improvements and product successes it has achieved in recent years." As part of the transaction, Ford will continue to supply Jaguar and Land Rover for differing periods with powertrains, stampings and other vehicle components, in addition to a variety of technologies, such as environmental and platform technologies. Ford also has committed to provide engineering support, including research and development, plus information technology, accounting and other services. In addition, Ford Motor Credit Company will provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months. The parties believe these arrangements will support Jaguar and Land Rover's current product plans, while providing Jaguar and Land Rover freedom to develop its own stand-alone capabilities in the future that will best serve its premium manufacturer requirements. The parties do not anticipate any significant changes to Jaguar and Land Rover employees' terms of employment on completion. "We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business," Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, commented. "We have enormous respect for the two brands and will endeavor to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business." Jaguar and Land Rover's employees, trade unions and the UK Government have been kept informed of developments as the sale process progressed and have indicated their support for the agreement. "Jaguar Land Rover's management team is very pleased that Ford and Tata Motors have come to an agreement," speaking on behalf of Jaguar and Land Rover, Geoff Polites, chief executive officer, said. "Our team has been consulted extensively on the deal content and feels confident that it provides for the business needs of both our brands going forward. "We have also had the opportunity to meet senior executives from Tata Motors and the Tata group," Mr. Polites continued. "They have expressed confidence in the team that has delivered significant improvements in Jaguar Land Rover's business performance. We feel confident that we can forge a strong working relationship with our new parent company, and we look forward to a bright and successful future for Jaguar Land Rover." About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia and the United Kingdom. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the United Auto Workers. INTERMEC INC: Narrow Business Profile Prompts S&P's 'BB-' Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Everett, Washington-based Intermec Inc. to positive from stable, reflecting recently improved revenue and profitability and a substantial reduction in leverage. The corporate credit rating was affirmed at 'BB-'. "The rating on Intermec reflects a relatively narrow business profile, competitive market conditions, evolving technology standards, and a short track record at current profitability levels," said Standard & Poor's credit analyst Clay Ching. "These factors are offset partially by an improving financial profile, a diversified customer base, and a good market position, supported by a strong patent portfolio." Intermec Inc. -- http://www.intermec.com/-- develops, manufactures and integrates technologies that identify, track and manage supply chain assets. Core technologies include RFID, mobile computing and data collection systems, bar code printers and label media. The company has locations in Australia, Bolivia, Brazil, China, France, Hong Kong, Singapore and the United Kingdom. TAM SA: Sets Record For Transporting 100,500 Passengers in a Day ---------------------------------------------------------------- TAM Linhas Aereas reached a record of 100,500 passengers transported on their domestic and international flights, including regular scheduled flights and charters, in a single day on March 24, following the Easter holiday, according to preliminary company data. The aircraft total load factor was 81.2% for the day. "We are happy to have reached this point, which strengthens our market leadership and stimulates us still further in our constant striving for excellent service for our customers -- a public commitment we have undertaken," said TAM president, Captain David Barioni Neto. The previous single day record was recorded by the company on Dec. 22, 2007, when 93,757 passengers were transported on the company's domestic and international flights. The average occupancy for TAM flights on that date was 84.2%. TAM is retaining its leadership position in the domestic market with respect to the segment of international flights operated by Brazilian airlines. Cumulatively for the first two months of this year, TAM's market share for domestic flights stood at 49.4%, while the company's international flights reached a market share of 67.1% during the same period. TAM currently -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * On July 23, 2007, Fitch Ratings affirmed the 'BB' foreign currency and local currency Issuer Default Ratings of TAM S.A. Fitch has also affirmed the 'BB' rating of its US$300 million of senior unsecured notes due 2017 as well as the company's 'A+(bra)' national scale rating and for its first debentures issuance (BRL500 million). Fitch said the rating outlook is stable. TAM SA: Podhurst Orseck Files Lawsuits for July 2007 Disaster ------------------------------------------------------------- Podhurst Orseck's internationally recognized aviation attorneys, Steven C. Marks and Ricardo M. Martinez-Cid have filed a series of lawsuits on behalf of families of passengers killed in Brazil's worst airline disaster. On July 17, 2007, 199 people perished when TAM Airlines Flight 3054 slid off the runway at Congonhas Airport and slammed into an air cargo building in Sao Paulo. The Podhurst attorneys filed 59 wrongful death complaints related to the catastrophe in the United States District Court for the Southern District of Florida. In addition to TAM, which is charged with its own negligence and that of its pilots and maintenance personnel, the defendants in the lawsuits are Pegasus Aviation IV, Inc.; Airbus S.A.S.; Airbus Industrie G.I.E.; Airbus Customer Services, Inc.; Goodrich Corporation; and International Aero Engines AG. "Responsibility not only lies with the companies that manufactured and handled maintenance for the aircraft," said Atty. Marks, "We believe Airbus provided inadequate customer support, simulator services, and training materials for the pilots and flight crew that replicates the performance of the aircraft in all normal and abnormal conditions." Atty. Marks said it's clear the flight crew knew there were problems with the aircraft before the disaster because the plane's right thrust reverser had been deactivated before the flight. "The thrust reverser is used to slow the jet down upon landing. Without an operational right thrust reverser, it didn't have enough room to stop on the runway, ending in a horrific crash when the plane skidded off the runway's edge," Atty. Marks added. Podhurst Orseck filed the first lawsuit related to the crash on behalf of the family of 35-year-old Ricardo Tazoe of Miami, an employee with Banco Santander. In all of the cases, the plaintiffs are seeking a jury trial to recover financial damages for pain and suffering; lost value of life; funeral expenses; and all other damages they may be entitled to under the law. Atty. Marks and Atty. Martinez-Cid have extensive experience handling Brazilian aviation matters. They currently represent the families of numerous passengers who were killed when Gol Transportes Aeros Flight #1907 collided with an Embraer Legacy 600 business jet over the Amazon Rainforest in September 2006. They have represented victims in countless significant major commercial airline crashes, including those killed in the crash of Comair Flight 5191 at the Blue Grass Airport in Lexington, Kentucky in August 2006. Atty. Marks has acted as co-lead trial counsel for the California State Court plaintiffs after a Silk Air crash between Jakarta and Singapore in 1997, successfully obtaining one of the most significant and largest verdicts in a mass disaster aviation case, and acting as lead liaison counsel for the state court and federal multi- district litigation plaintiffs' steering committees over the ValuJet Flight 592 crash in Miami-Dade County in 1996. About Podhurst Orseck Based in Miami, Podhurst Orseck, P.A. -- http://www.podhurst.com -- is a law firm which concentrates exclusively in trial and appellate litigation. The firm's general tort practice places a major emphasis on aviation, automobile, products liability and medical malpractice litigation. In addition, the firm has a substantial practice in commercial, matrimonial and criminal litigation, as well as complex commercial tort litigation. Attorneys serve clients and corporations throughout the United States, and in many foreign countries. About TAM SA TAM currently -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * On July 23, 2007, Fitch Ratings affirmed the 'BB' foreign currency and local currency Issuer Default Ratings of TAM S.A. Fitch has also affirmed the 'BB' rating of its US$300 million of senior unsecured notes due 2017 as well as the company's 'A+(bra)' national scale rating and for its first debentures issuance (BRL500 million). Fitch said the rating outlook is stable. TELE NORTE: Schedules General Shareholders' Meeting on April 4 -------------------------------------------------------------- Tele Norte Leste Participacoes S.A.'s board of directors has informed the company?s shareholders for a General Shareholders? Meeting to be held on April 4, 2008, at 5:30 pm, at the company?s headquarters located in the city of Rio de Janeiro, RJ, at Rua Humberto de Campos, 425, 8th floor, Leblon. The board will discuss the following: (i) Analysis, discussion and approval of the company?s Financial Statements, Management Report and Report of Independent Auditors of the company for the fiscal year ending Dec. 31, 2007; (ii) Approval of management?s proposal for the allocation of net income and the distribution of dividends, taking into account the interest on capital declared during the fiscal year ending Dec. 31, 2007, the payment of profit sharing to the employees in accordance with article 41 of the company?s By-Laws and the capital expenditures budget; (iii) Election of the members of the company?s Board of Directors in complementation of term in accordance with article 150 of Law No. 6,404 (Brazilian corporate law); (iv) Election of the members of the company?s Fiscal Committee and their respective alternates; and (v) Establishment of fiscal year 2008 compensation for the company?s management and members of the company?s Fiscal Committee. In addition, the extraordinary shareholders? meeting will include analysis, discussion and approval of the management?s proposal for the maximum limits to be declared as Interest on Capital for the fiscal year 2008, of up to BRL$700 million. The company disclosed that the documentation related to the agenda of the General Shareholders? Meeting is available at the company?s headquarters. All powers of attorney to vote at the General Shareholders? Meeting (proxy voting) must be submitted to the Company?s legal department (Diretoria Juridica) located in the City of Rio de Janeiro, RJ, at Rua Humberto de Campos, 425, 6th floor, Leblon, from 9:00 am to 12:00 pm and from 2:00 pm to 6:00 pm, until March 31, 2008. Shareholders of voting shares (ON?s) whose shares are registered with a custodian agent who wish to vote their shares at the General Shareholders? Meeting, must present a statement issued as of March 31, 2008, by the custodial agent, indicating the amount of shares of the company held by the shareholders as of said date. Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As reported on April 27, 2007, Standard & Poor's Ratings Services placed on CreditWatch with negative implications the 'BB+' corporate credit rating on Tele Norte Leste Participacoes S.A. The creditwatch resulted from TmarPart's decision to buy out its holding company's preferred shares. USINAS SIDERURGICAS: Issues 4th Qtr. 2007 Earnings Webcast Alert ---------------------------------------------------------------- Usinas Siderurgicas de Minas Gerais S.A. a.k.a. USIMINAS reported these Webcast: What: Fourth Quarter 2007 Results Conference Call, which will be released on March 27, 2008, before the opening of Bovespa's trading session When: Friday, March 28, 2008 at 9:00 AM EST in Portuguese and 11:00 AM EST in English Where: http://prnewswire.isat.com.br/?palestra_id=240 How: Simply log on to the web at the address above. Contact: Usiminas Investor Relations, Tel. Number: +55 (31) 3499-8856 or web site: investidores@usiminas.com.br Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de Minas Gerais SA -- http://www.usiminas.com.br-- is among the world's 20 largest steel manufacturing complexes, with a production capacity of approximately 10 million tons of steel. Usiminas System companies produces galvanized and non-coated flat steel products for the automotive, small and large diameter pipe, civil construction, hydro-electronic, rerolling, agriculture, and road machinery industries. Brazil consumes 80% of its products and the company's largest export markets are the US and Latin America. The company also sells in China and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local currency rating and an Aa1.br rating on its Brazilian national scale to the BRL500 million non-guaranteed subordinated debentures due 2013 to be issued by Usinas Siderurgicas de Minas Gerais S.A. (aka Usiminas). Net proceeds from the debentures issuance will be used to partially fund the company's capex program. Moody's said the rating outlook is stable. ========================== C A Y M A N I S L A N D S ========================== HEADSTRONG XXX: Proofs of Claim Filing Deadline is April 1 ---------------------------------------------------------- Headstrong XXX's creditors have until April 1, 2008, to prove their claims to Eleni Bourodimos, 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. Headstrong XXX's shareholders agreed on Oct. 31, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Eleni Bourodimos c/o P.O. Box 822, George Town Grand Cayman KY1-1103, Cayman Islands Contact for inquiries: Woodward Terry & Company Suite #10 2nd Floor, Jack & Jill Building 19 Fort Street, Grand Cayman Cayman Islands Telephone: 345-945-2800 Fax: 345-945-2727 HEADSTRONG XXX: Sets Final Shareholders Meeting for April 1 ----------------------------------------------------------- Headstrong XXX will hold its final shareholders' meeting on April 1, 2008, at 10:00 a.m., at the offices of the company at Suite #10, 2nd Floor, Jack & Jill Building, 19 Fort Street, P.O. Box 822, George Town, Grand Cayman KY1-1103, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; 2) hearing of any explanation that may be given by the liquidator in respect of the winding up of the company; and 3) determining the manner in which the books, accounts and documentation of the company and of the liquidator should be maintained and subsequently disposed of. Headstrong XXX's shareholders agreed on Oct. 31, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Eleni Bourodimos c/o P.O. Box 822, George Town Grand Cayman KY1-1103, Cayman Islands Contact for inquiries: Woodward Terry & Company Suite #10 2nd Floor, Jack & Jill Building 19 Fort Street, Grand Cayman Cayman Islands Telephone: 345-945-2800 Fax: 345-945-2727 NBL FUNDING: Proofs of Claim Filing Deadline is April 3 ------------------------------------------------------- NBL Funding Corp.'s creditors have until April 3, 2008, to prove their claims to Martin Couch and Jan Neveril, 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. NBL Funding's shareholders agreed on Feb. 14, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Martin Couch and Jan Neveril Maples Finance Limited P.O. Box 1093, George Tpwm Grand Cayman, Cayman Islands NORMANDI LIMITED: Proofs of Claim Filing Deadline is April 3 ------------------------------------------------------------ Normandi Limited's creditors have until April 3, 2008, to prove their claims to Buchanan 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. Normandi's shareholders agreed on Feb. 21, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Buchanan Limited Attn: Francine Jennings P.O. Box 1170 Grand Cayman KY1-1102, Cayman Islands Telephone: (345) 949-0355 Fax: (345) 949-0360 NORTH BROOK: Proofs of Claim Filing is Until April 3 ---------------------------------------------------- North Brook Limited's creditors have until April 3, 2008, to prove their claims to Buchanan 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. North Brook's shareholders agreed on Feb. 21, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Buchanan Limited Attn: Francine Jennings P.O. Box 1170 Grand Cayman KY1-1102, Cayman Islands Telephone: (345) 949-0355 Fax: (345) 949-0360 PUERTO AZUL: Proofs of Claim Filing is Until April 3 ---------------------------------------------------- Puerto Azul Limited's creditors have until April 3, 2008, to prove their claims to Buchanan 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. Puerto Azul's shareholders agreed on Feb. 21, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Buchanan Limited Attn: Francine Jennings P.O. Box 1170 Grand Cayman KY1-1102, Cayman Islands Telephone: (345) 949-0355 Fax: (345) 949-0360 RAB PI: Proofs of Claim Filing Deadline is April 3 -------------------------------------------------- RAB PI Japan Fund Limited's creditors have until April 3, 2008, to prove their claims to Giles Kerley and Joshua Grant, 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. RAB PI's shareholders agreed on Jan. 14, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Giles Kerley and Joshua Grant &n