T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, April 2, 2008, Vol. 9, No. 65 Headlines A R G E N T I N A ALITALIA SPA: Air France Refuses to Trim Planned Job Cuts ALITALIA: Italian Unions Reject Air France-KLM's New Offer CLINICA PRIVADA: Proofs of Claim Verification is Until May 5 CREDITO IMPERIAL: Trustee to File Individual Reports on June 25 LIWIN SA: Files for Reorganization in Buenos Aires Court MOLISE SA: Proofs of Claim Verification Deadline is June 24 RED HAT: Revenue Growth Cues S&P's Rating Upgrade to 'BB-' RUTLIN SA: Files for Reorganization in Buenos Aires Court SUPERVIELLE BANEX: Moody's Junks Subordinated Certificate Rating A R U B A VALERO ENERGY: Deutsche Bank Upgrades Firm's Shares to 'Buy' B E R M U D A FOSTER WHEELER: Unit Bags Entergy Steam Generator Contract MAKENA LTD: Liquidators to Seek Release NORTON RE: Proofs of Claim Filing Deadline is April 11 NORTON RE: Sets Final Shareholders Meeting for May 5 PEREGRINE INVESTMENTS: Proofs of Claim Filing is Until April 7 SECURITY CAPITAL: S&P Lowers Preference Shares Rtng. to D From C SUNRISE CAPITAL: Proofs of Claim Filing Deadline is April 4 B R A Z I L BANCO BRADESCO: Regulator Okays BMC's Transfer of Unit to Bank BANCO NACIONAL: Grants US$270 Million Loan for Montegrande Dam BRASIL TELECOM: Denies Successful Closure of Tele Norte Talks BRASKEM SA: To Invest BRL334MM for Copesul Maintenance & Upgrade BRASKEM SA: Will Pay BRL278 Million in Dividends to Shareholders COMPANHIA DE SANEAMENTO: 2007 Net Income Grows to BRL1.05 Mln. INDEPENDENCIA SA: Moody's Reviews B3 Ratings for Likely Upgrade NOVELIS INC: S&P Changes Outlook to Stable; Confirms 'BB-' Rtng. REALOGY CORP: Low EBITDA Cues S&P to Revise Outlook to Negative TAM SA: Reports BRL49.8 Mln. Net Income in Fourth Quarter 2007 TELE NORTE: Denies Successful Closure in Brasil Telecom Talks C A Y M A N I S L A N D S ALPHA VISION: Sets Final Shareholders Meeting for April 4 ALPHA VISION CAPITAL: Final Shareholders Meeting is on April 4 CC CAYCO: Proofs of Claim Filing Deadline is April 4 CLOUDVIEW OFFSHORE: Sets Final Shareholders Meeting for April 3 COREL CORP: Cayman-Based Firm Bid Prompts S&P's Negative Watch CRESCENT AIR: Proofs of Claim Filing Deadline is April 3 EAST LANE: S&P Puts BB Sr. Debt Rating on US$75MM Variable Notes FDVG BALANCED: Proofs of Claim Filing Deadline is April 3 LASALLE STRATEGIC: Proofs of Claim Filing Deadline is April 4 NGF LTD: Proofs of Claim Filing is Until April 3 SAPIC-98 REFERENCE: Proofs of Claim Filing Deadline is April 3 THE DRAKE GLOBAL: Proofs of Claim Filing is Until April 4 C H I L E AES GENER: Inks Contract With Escondida for Electricity Plant GRUPO POSADAS: Tender Offer for 8-3/4% Sr. Notes to Expire C O L O M B I A BANCOLOMBIA: Supreme Court Suspends Superior Court's Ruling BANCOLOMBIA: Unit Eyes Up to 33 Transactions This Year D O M I N I C A N R E P U B L I C FLOWSERVE: S&P Changes Outlook to Positive; Holds BB- Rating E C U A D O R PETROECUADOR: Seeking Bids for Oriente & Napo Crude H A I T I DYNCORP INT'L: Expands US Training Contract to Haiti & Liberia M E X I C O AMERICAN AXLE: Likely to Outsource Work if Union Talks Fail ASARCO LLC: Bankruptcy Court OKs Chapter 11 Interim Procedures CLEAR CHANNEL: Trial on Financing of Merger Set for April 8 DEUTSCHE: Moody's Puts Ba2 Rating on Class B Loan Certificates INTERNATIONAL RECTIFIER: NYSE Grants 3-Month Listing Extension MERISANT COMPANY: Moody's Rates US$245 Million Loans at B3 PROPEX INC: Wants to Implement Employee Incentive Plan PROPEX INC: Court Approves Navigant Capital as Financial Advisor P E R U GRAN TIERRA: Nadine Smith Resigns From Board; Names Audit Chair QUEBECOR WORLD: Wants to Employ Three Real Estate Consultants P U E R T O R I C O SIMMONS CO: Earns US$6 Million in Fourth Quarter Ended Dec. 29 T R I N I D A D & T O B A G O HILTON HOTELS: Tobago Unit to Undergo US$45-Million Repair U R U G U A Y PERNOD RICARD: To Acquire Vin & Spirit for EUR5.6 Billion PERNOD RICARD: S&P Revises Outlook on Vin & Spirits Acquisition V E N E Z U E L A PETROLEOS DE VENEZUELA: Will Close Some Gas Stations X X X X X X * S&P Says Carribbean Political Changes May Affect Ratings - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Air France Refuses to Trim Planned Job Cuts --------------------------------------------------------- Air France-KLM SA reiterated its planned 2,100 job cuts at Alitalia S.p.A. in its revised proposal submitted to the Italian carrier's unions, various reports say. According to Bloomberg News, Air France maintained plans to cut 1,600 jobs in Alitalia Fly and 500 more in Alitalia Servizi. Air France, BBC reports, also maintained plans to: * ground some flights; * close Alitalia's cargo unit by 2010; and * terminate contract out of ground handling and aircraft maintenance. The French carrier, however, proposed new measures, which it said would offer affected employees greater benefits, BBC News reports. Under the revised proposal, Air France will grant Alitalia's employees more early retirement benefits or transers to other positions or duties. Eight of Alitalia's unions -- FILT CGIL, FIT CISL, Uiltrasporti, UGL Trasporti, SDL inter-category, Union Piloti, ANPAV, and Avia -- described the revised as "unacceptable," Bloomberg News reports. In a statement published by Agenzia Giornalitica Italia, the unions said Air France "re-proposes in substance and in format what was already shown to unions in the meeting of March 25, for which reason the evaluation that the proposal was insufficient, already made at that time, is re-confirmed by us." 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 2,100 job cuts. Air France had set a March 31, 2008, deadline for an agreement. The effectiveness conditions for Air France's offer include: * formal approval of the Industrial Plan 2008-2010 by Alitalia’s Board of Directors; * formal agreement in a manner satisfactory for Air France-KLM between Alitalia and the trade unions representing the majority of each category of Alitalia’s employees, regarding the implementation of the Industrial Plan, the rules of employment, the plan related to the social shock absorbers and the contemplated transaction; * formal agreement in a manner satisfactory for Air France-KLM between Alitalia and the trade unions of Alitalia Servizi representing the majority of each category of Alitalia Servizi’s employees on the necessary restructuring measures and the related shock absorbers plan; * Italy's Ministry of Economy and Finance to grant Alitalia a credit line, or the necessary guarantees to obtain a credit line in favor of Alitalia of EUR300 million to be repaid immediately after the capital increase; * formal agreement between Alitalia and Aeroporti di Roma on the Rome Fiumicino Airport and on the service levels required for the implementation of the Industrial Plan 2008-2010; * with respect to the claim brought on by SEA against Alitalia to the tribunal of Busto Arsizio, either: -- the official withdrawal from the claim; -- its settlement in a manner satisfactory to Air France; -- the granting by the MEF to Alitalia of appropriate indemnification commitments, in case necessary by enacting an appropriate law decree, or any other applicable solution satisfactory to Air France-KLM to definitely remove the risk attached to the claim; * formal agreement between Alitalia, Fintecna and Alitalia Servizi, for what concerns the interest of each party, among other things, to re-internalize in Alitalia certain activities and to renegotiate certain clauses of the service agreements; * formal written confirmation from the MEF that the general interests are properly safeguarded in the context of the contemplated transaction and it shall, subject to certain conditions, tender its Alitalia shares and Alitalia convertible bonds in the tender offers; * formal written undertaking from the competent Italian governmental authority to maintain the current portfolio of the current Alitalia’s air traffic rights, continue to address in a fair, transparent and non discriminatory manner any future requests form Alitalia for new air traffic rights, and provide cooperation and assistance in the case of any major difficulties with extra-European Community countries. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA: Italian Unions Reject Air France-KLM's New Offer ---------------------------------------------------------- Italian unions rejected Air France-KLM's takeover offer for Alitalia, the Financial Times reports. Air France's bid is subject to a condition that all nine unions must accept the offer. In a joint statement, according to the report, eight unions said that the new offer was essentially the same as before and still inadequate. They agreed however to further talks. The main pilot's union did not sign the joint statement to show that they are not happy with the offer. 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. CLINICA PRIVADA: Proofs of Claim Verification is Until May 5 ------------------------------------------------------------ Roque Alberto Pepe, the court-appointed trustee for Clinica Privada Pilar S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until May 5, 2008. Mr. Pepe 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 Clinica Privada 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 Clinica Privada's accounting and banking records will be submitted in court on Aug. 22, 2008. Mr. Pepe is also in charge of administering Clinica Privada's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Roque Alberto Pepe Argentina 5785 Buenos Aires, Argentina CREDITO IMPERIAL: Trustee to File Individual Reports on June 25 --------------------------------------------------------------- Hector Rodolfo Arzu, the court-appointed trustee for Credito Imperial Argentina SA's bankruptcy proceeding, will submit individual reports in the National Commercial Court of First Instance No. 5 in Buenos Aires on June 25, 2008. Mr. Arzu will be verifying creditors' proofs of claim until May 13, 2008. He will file a general report containing an audit of Credito Imperial's accounting and banking records in court on Aug. 22, 2008. Mr. Arzu is also in charge of administering Credito Imperial's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Credito Imperial Argentina SA Maipu 1300 Buenos Aires, Argentina The trustee can be reached at: Hector Rodolfo Arzu Junin 55 Buenos Aires, Argentina LIWIN SA: Files for Reorganization in Buenos Aires Court -------------------------------------------------------- Liwin SA has requested for reorganization approval after failing to pay its liabilities since July 2007. The reorganization petition, once approved by the court, will allow Liwin 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. 14 in Buenos Aires. Clerk No. 27 assists the court in this case. The debtor can be reached at: Liwin SA Alicia Moreau de Justo 1848 Buenos Aires, Argentina MOLISE SA: Proofs of Claim Verification Deadline is June 24 ----------------------------------------------------------- Eduardo Zalutzky, the court-appointed trustee for Molise S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 24, 2008. Mr. Zalutzky will present the validated claims in court as individual reports on Aug. 20, 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 Molise 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 Molise's accounting and banking records will be submitted in court on Oct. 1, 2008. Mr. Zalutzky is also in charge of administering Molise's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Molise SA La Pampa 5981 Buenos Aires, Argentina The trustee can be reached at: Eduardo Zalutzky Lavalle 1523 Buenos Aires, Argentina RED HAT: Revenue Growth Cues S&P's Rating Upgrade to 'BB-' ---------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Raleigh, North Carolina-based Red Hat Inc. to 'BB-' from 'B+'. The upgrade reflects Red Hat's consistent growth in revenues and operating earnings and improving financial profile. The outlook is stable. "The ratings on Red Hat reflect the company's relatively narrow business profile, modest scale relative to other rated software companies, rapid technology evolution, and high leverage--based on total debt," said Standard & Poor's credit analyst Molly Toll-Reed. "These concerns are offset partially by barriers to entry provided by the large number of independent software and hardware vendors, who certify their products to work with Red Hat, and liquidity and cash flow that are strong for the rating level." Red Hat provides open-source operating and middleware software and related services predominantly to large enterprise customers. Headquartered in Raleigh, North Carolina Red Hat, Inc. -- http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among RUTLIN SA: Files for Reorganization in Buenos Aires Court --------------------------------------------------------- Rutlin SA has requested for reorganization approval after failing to pay its liabilities since March 25, 2008. The reorganization petition, once approved by the court, will allow Rutlin 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. 17 in Buenos Aires. Clerk No. 33 assists the court in this case. The debtor can be reached at: Rutlin SA Amenabar 1662 Buenos Aires, Argentina SUPERVIELLE BANEX: Moody's Junks Subordinated Certificate Rating ---------------------------------------------------------------- Moody's Latin America has assigned a rating of Aaa.ar (Argentine National Scale) and of Ba1 (Global Scale, Local Currency) to the Fixed Rate and Floating Rate Debt Securities of Fideicomiso Financiero Supervielle Creditos Banex XXI issued by Deutsche Bank S.A. -- acting solely in its capacity as Issuer and Trustee. This issuance is not an obligation of Deutsche Bank S.A. and therefore the rating assigned does not reflect the credit quality of Deutsche Bank S.A. Moody's also assigned ratings of Ba1.ar (Argentine National Scale) and Caa1 (Global Scale, Local Currency) to the subordinated Certificates. The assigned ratings are based on these factors: -- The credit quality of the securitized personal loans -- The ability and willingness of Administracion Nacional de la Seguridad Social to make monthly pensions -- The ability of Banco Supervielle to act as the servicer of the pool. -- The ability of Deutsche Bank S.A. to act as trustee in this transaction -- Initial credit enhancement of 15% for the Fixed Rate and Floating Rate Debt Securities, provided through subordination -- The availability of various reserve accounts, and -- The legal structure of the transaction. Securitized Pool The rated securities are payable from the cash flow coming from the assets of the trust, which is an amortizing pool of approximately 34,993 eligible personal loans denominated in Argentine pesos, with a fixed interest rate, originated by Banex (now Banco Supervielle), in an aggregate amount of ARS62,373,702. Approximately 3.80% of the securitized pool will be constituted by loans formerly included in the pool of Banex IX. As of January 31st, 2008 those loans exhibited delinquencies no higher than 90 days past due. Moody's has assigned a local currency deposit rating of Aa2.ar in the Argentine National Scale to Banco Supervielle S.A. These personal loans are granted to pensioners that receive their monthly pensions from Argentina's national governmental agency of social security, Administracion Nacional de la Seguridad Social (ANSES). Banco Supervielle is the payment agent for this government entity and deducts the monthly loan installment directly from the borrower's paycheck. The pool is also constituted by loans granted to government employees of the Province of San Luis. Moody's considered the risk that a disruption in the flow of payments from ANSES to pensioners could severely affect the performance of the pool. Moody's believes that the ratings assigned are consistent with this risk. Structure Deutsche Bank S.A. (Issuer and Trustee) issued two classes of Debt Securities and one class of Certificates, all denominated in Argentine pesos. The Fixed Rate Debt Securities will bear a fixed interest rate of 11%. The Floating Rate Debt Securities will bear a BADLAR interest rate plus 298 basis points. The Floating Rate Debt Securities' interest rate will never be higher than 18% or lower than 10%. Overall credit enhancement is comprised of 15% subordination for the Fixed Rate and Floating Rate Debt Securities; various reserve funds; and excess spread. Payment of principal on the Floating Rate Debt Securities has a grace period of nine months. During the grace period, interest on the Floating Rate Debt Securities will be paid on a quarterly basis. Starting on the first principal payment date for the Floating Rate Debt Securities, interest will be paid monthly. The Fixed Rate Debt Securities are expected to be paid off in nine months. The Certificates are entitled to receive repayment of principal by the legal final maturity date of the transaction only after Fixed Rate and Floating Rate Debt Securities are paid in full. Rating Action Banco Banex S.A. (now Banco Supervielle SA): ARS31,301,000 in Fixed Rate Debt Securities of "Fideicomiso Financiero Supervielle Creditos Banex XXI", rated Aaa.ar (Argentine National Scale) and Ba1 (Global Scale, Local Currency) ARS21,722,894 in Floating Rate Debt Securities of "Fideicomiso Financiero Supervielle Creditos Banex XXI", rated Aaa.ar (Argentine National Scale) and Ba1 (Global Scale, Local Currency) ARS9,578,106 in Certificates of "Fideicomiso Financiero Supervielle Creditos Banex XXI", rated Ba1.ar (Argentine National Scale) and Caa1 (Global Scale, Local Currency) -- Fixed Rate Debt Securities, Assigned Ba1 -- Floating Rate Debt Securities, Assigned Ba1 -- Certificates, Assigned Caa1 ========= A R U B A ========= VALERO ENERGY: Deutsche Bank Upgrades Firm's Shares to 'Buy' ------------------------------------------------------------ Deutsche Bank Securities analyst Paul Sankey has upgraded Valero Energy Corp.'s shares to "buy" from "hold," Newratings.com reports. Newratings.com relates that the target price for Valero Energy's shares was decreased to US$72 from US$76. Mr. Sankey said in a research note that the asset market for the U.S. plants is strong and Valero Energy is disposing its assets "aggressively." Valero Energy would be able to conclude US$3.5 billion in asset sales this year, though based on the recent reports by competing bidders the amount might be "conservative," Mr. Sankey told Newratings.com. 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 ============= FOSTER WHEELER: Unit Bags Entergy Steam Generator Contract ---------------------------------------------------------- Foster Wheeler Ltd.'s Global Power Group subsidiary has been awarded a contract by Entergy Louisiana, LLC, a subsidiary of Entergy Corporation, for the design and supply of two circulating fluidized-bed (CFB) steam generators. The two CFBs and associated auxiliary equipment will be a part of the Little Gypsy 3 Repowering Project located in Montz, Louisiana, near New Orleans. Foster Wheeler has received a full notice to proceed on this contract. The terms of the award were not disclosed, and the contract will be included in the company’s bookings for the first-quarter of 2008. Unit 3, which will be designed to deliver a baseload of 538 MWe (net megawatt electric output), will have the capability of using petroleum coke, a plentiful and inexpensive refining byproduct, as well as coal to produce electricity. Commercial operation of the plant is scheduled for the first quarter of 2012. "We are pleased to be selected by Entergy Louisiana to play a part in this important project," said Foster Wheeler North America Corp. president and chief executive officer, Gary Nedelka. "A fundamental benefit of CFB technology is its naturally low emission level of nitrogen oxide and sulfur dioxide –- a benefit that is especially dramatic when compared to the older equipment that is replaced in a repowering project such as Little Gypsy 3." Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. The company reported total debt of approximately US$150 million at Sept. 30, 2007. MAKENA LTD: Liquidators to Seek Release --------------------------------------- Makena Ltd.'s joint liquidators Peter C.B. Mitchell and Nigel Chatterjee will apply to the Supreme Court of Bermuda for their release. Those who object for the granting of their release must notify the court by April 8, 2008. NORTON RE: Proofs of Claim Filing Deadline is April 11 ------------------------------------------------------ Norton Re Insurance Limited's creditors are given until April 11, 2008, to prove their claims to John C. McKennathe 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. Norton Re's shareholders agreed on March 25, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: John C. McKenna c/o Leonell Lightbourne Messrs. Conyers Dill & Pearman, Clarendon House Church Street, Hamilton, HM DX Bermuda NORTON RE: Sets Final Shareholders Meeting for May 5 ---------------------------------------------------- Norton Re Insurance Limited will hold its final general meeting on May 5, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. PEREGRINE INVESTMENTS: Proofs of Claim Filing is Until April 7 -------------------------------------------------------------- Peregrine Investments Holdings Limited's creditors must file proofs of their claims by April 7, 2008, to David Richard Hague, the company's liquidator. Creditors who fail to do so won't be included in a seventh dividend that the firm will declare. 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. Peregrine Investments' shareholders agreed on March 7, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: David Richard Hague c/o Pricewaterhouse-Coopers 22/F Prince’s Building Central, Hong Kong Telephone: (852) 2289 8888 Fax: (852) 2890 8345 SECURITY CAPITAL: S&P Lowers Preference Shares Rtng. to D From C ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Security Capital Assurance Ltd.'s series A perpetual noncumulative preference shares to 'D' from 'C'. At the same time, S&P removed the rating from CreditWatch with negative implications. The rating action follows the company's failure to make its March 31, 2008, dividend payment. 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. SUNRISE CAPITAL: Proofs of Claim Filing Deadline is April 4 ----------------------------------------------------------- Sunrise Capital Diversified II, Ltd.'s creditors have until April 4, 2008, to prove their claims to Olympia Capital (Cayman) 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. Sunrise Capital's shareholder decided on Dec. 31, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Olympia Capital (Cayman) Limited Attn: Tammy Robinson Williams House, 20 Reid Street Hamilton, Bermuda Telephone: 1 441 298 5034 =========== B R A Z I L =========== BANCO BRADESCO: Regulator Okays BMC's Transfer of Unit to Bank -------------------------------------------------------------- Brazilian insurance regulator Susep has authorized Banco BMC's transfer of private pension division to BAnco Bradesco, Business News Americas reports, citing insurance federation Fenaseg. As reported in the Troubled Company Reporter-Latin America on Jan. 26, 2007, Banco Bradesco signed a "Private Instrument for Commitment of Merger of Stocks and Other Covenants," with the controlling stockholders of Banco BMC for the acquisition of subsidiaries BMC Asset Management Ltda. -- Distribuidora de Titulos e Valores Mobiliarios, BMC Previdencia Privada SA and Credicerto Promotora de Vendas Ltda. According to BNamericas, Banco Bradesco purchased Banco BMC last year for BRL800 million in new shares. Banco BMC approached Banco Bradesco about underwriting an initial public offering but was later convinced to sell. Banco Bradesco now has indirect control over BMC Previdencia Privada, Fenaseg told BNamericas. About Banco Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO NACIONAL: Grants US$270 Million Loan for Montegrande Dam -------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has authorized a US$270 million loan to the Dominican Republic for the construction of a dam in Monte Grande, Azua. Business News Americas relates that the planned dam will provide water for irrigation and human consumption in the Dominican Republic's southern region. According to BNamericas, extracting water from the dam will allow "the replacement of pump-based irrigation systems with gravity operated ones." The government will be able to save some US$1.63 million in electricity costs yearly to run the pumps. The dam will irrigate over 700,000 plots of land, benefiting over 340,000 people and creating about 12,000 jobs. BNamericas notes that the project includes the improvement of flood prevention measures in: -- Barahona, -- Bahoruco, and -- Independencia. Rehabilitation works will also be carried out on the Sabana Yegua reservoir, Azua, BNamericas states. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. BRASIL TELECOM: Denies Successful Closure of Tele Norte Talks ------------------------------------------------------------- Brasil Telecom has denied that it has come to a successful closure in talks for its sale to Tele Norte Leste Participacoes S.A. As reported in the Troubled Company Reporter-Latin America on April 1, 2008, Tele Norte reached a preliminary agreement with Citigroup and national bank Opportunity for the acquisition of Brasil Telecom. No final accord has been made yet, Business News Americas relates. BNamericas notes that Tele Norte was allegedly aware of the advanced stage of talks among Brasil Telecom's controllers, Citigroup and Opportunity. Once those talks are concluded, Tele Norte will intensify negotiations for Brasil Telecom. Brasil Telecom told BNamericas that its controllers were informed of the possibility of sale to Tele Norte but the deal depends on shareholder and regulatory approvals. Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. * * * To date, Brasil Telecom carries Moody's Investors Service's Ba1 senior unsecured and credit default swap ratings. BRASKEM SA: To Invest BRL334MM for Copesul Maintenance & Upgrade ---------------------------------------------------------------- Braskem SA will invest some BRL334 million for a month of maintenance works and technology upgrades at plant 1 of raw materials center Copesul. Business News Americas relates that 60% of the ethane produced by Copesul comes from plant 1. The maintenance is aimed at the prevention of accidents, Braskem reportedly said. BNamericas says that Copesul has had one shutdown for every six years of non-stop production since it first began operations in 1982. According to Copesul, about BRL93 million of the BRL334 million investment will go to cleaning, inspections, and replacing equipment. BNamericas relates that about BRL241 million on the investment will be allotted to updating technology and operating systems, and production and environmental controls. Once plant 1 resumes operations, Copesul will have additional production capacity of 28,000 tons per year of ethane and 16,600 tons per year of propane, bringing its total capacity to 1.25 million tons per year, compared to the current 1.22 million tons per year, Copesul said. Braskem SA (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin America, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Braskem S.A. Fitch also affirmed the 'BB+' ratings on the company's senior unsecured notes 2008, 2014, and senior unsecured notes 2017. BRASKEM SA: Will Pay BRL278 Million in Dividends to Shareholders ---------------------------------------------------------------- Braskem SA will pay BRL278 million in dividends to its shareholders related to fiscal year 2007. Business News Americas relates that Braskem will start paying the dividends on April 7, 2008, without withholding income tax. The BRL278 million in dividends account for 51% of Braskem's 2007 net profits. Braskem SA (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin America, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Braskem S.A. Fitch also affirmed the 'BB+' ratings on the company's senior unsecured notes 2008, 2014, and senior unsecured notes 2017. COMPANHIA DE SANEAMENTO: 2007 Net Income Grows to BRL1.05 Mln. -------------------------------------------------------------- Companhia de Saneamento Basico do Estado de Sao Paulo reported its financial results for 2007. In 2007, net operating revenue totaled BRL6 billion, an 8% increase compared to 2006. Costs and expenses stood at BRL3.9 billion, 4.6% higher than in 2006. EBITDA moved up by 10.3%, from BRL2.4 billion in 2006 to BRL2.7 billion in 2007 as revenues outgrew costs. Earnings before financial expenses (EBIT) climbed by 15.1%, from BRL1.8 billion in 2006 to BRL2.1 billion in 2007. Net income reached BRL1.05 billion, 34.6% higher than the BRL778.9 million recorded in 2006. In the fourth quarter of 2007, net income totaled BRL78.1 million, down by 2.4% the same period of the previous year. Gross operating revenue grew by BRL464.2 million, or 7.8%, from BRL6 billion in 2006 to BRL6.4 billion in 2007. The main reasons for this increase were: (i) the 5.7% impact derived from the 6.7% tariff readjustment in 2006, with a 4.7% impact in 2007, and the 4.1% tariff readjustment in September 2007, with a 1% impact in the period; and (ii) the 3.1% increase in billed volume. Companhia de Saneamento Basico do Estado de Sao Paulo, aka Sabesp (Bovespa: SBSP3; NYSE: SBS) -- http://www.sabesp.com.br -- is one of the largest water and sewage service providers in the world based on the population served in 2005. It operates water and sewage systems in Sao Paulo, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 12, 2007, Fitch Ratings has affirmed the 'BB' Local Currency and Foreign Currency Issuer Default Ratings and the Long-Term National Scale Rating 'A+(bra)' of Companhia de Saneamento Basico do Estado de Sao Paulo. In addition, Fitch has affirmed the 'BB' Long-Term International Rating for US$140 million in notes issued by the company, as well as the 'A+(bra)' on National Scale for its sixth debenture issuance. Fitch said the rating outlook is stable. INDEPENDENCIA SA: Moody's Reviews B3 Ratings for Likely Upgrade --------------------------------------------------------------- Moody's Investors Service placed the B3 local currency corporate family rating and the B3 foreign currency senior unsecured rating of Independencia S.A. under review for possible upgrade. "The review of Independencia's B3 ratings reflects primarily the successful reduction of its susceptibility to a trade embargo from importing countries due to animal disease by expanding the number of slaughterhouses from five to twelve and slaughter operations from three to seven states, both by the end of 2008 and compared to when Moody's first assigned the ratings," says Moody's AVP-Analyst Soummo Mukherjee. Additionally, the review is based on the company's ability to meet the factors set out in Moody's last published credit opinion that would trigger upward pressure on its ratings. "These factors included Independencia's demonstrated ability to: consistently grow revenues and earnings, improve financial disclosure standards and maintain Debt/EBITDA below 5 times," added Mr. Mukherjee. In July 2007, Independencia acquired Goias Carne, the largest beef processor in the state of Goias, with a slaughter capacity of 1,200 heads per day, and began the construction and leased or acquired four other new facilities that will significantly increase Independencia's daily slaughter capacity in 2008 to approximately 11,000 heads per day from 6,900 heads per day at the end of 2007, and improve its cattle sourcing and production in terms of geographic diversification. Moody's review will focus on the company's projections and liquidity for the next twelve months with a focus on the expected capital expenditure requirements, debt levels and EBITDA generation in 2008, as it incorporates Goias Carne and operates its new facilities. The review will also consider the company's longer-term growth and financial strategy and the expected cushion the company is likely to maintain with its Net Debt/EBITDA financial covenant in its US$225 million bond due in 2017 that steps-down from 4.25 times to 4.0 times at the end of 2008, to 3.75 times at the end of 2009 and to 3.5 times at the end of 2010. These ratings were placed under review for possible upgrade: -- US$225 million of 9.875% senior guaranteed unsecured notes due in 2017 at B3 -- Local currency corporate family rating at B3 Headquartered in Cajamar, Sao Paulo, Brazil, Independencia SA is Brazil's fourth largest producer of fresh and frozen beef and the second largest producer of wet blue leather with twelve beef slaughtering and deboning facilities, two jerked beef plants and four storage facilities located in the following seven Brazilian States: Goias, Mato Grosso do Sul, Mato Grosso, Minas Gerais, Sao Paulo, Rondonia and Tocantins. NOVELIS INC: S&P Changes Outlook to Stable; Confirms 'BB-' Rtng. ---------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on Atlanta-based Novelis Inc. to stable from negative. At the same time, S&P affirmed its ratings, including the 'BB-' long-term corporate credit rating, on Novelis. Standard & Poor's also withdrew its 'B-2' short-term counterparty credit rating on the company, due to lack of market need. "The outlook revision to stable factors in an expected improvement in Novelis' financial performance, the parent- subsidiary link between Hindalco and Novelis, and expected support from the parent to the subsidiary entity," said Standard & Poor's credit analyst Donald Marleau. "As the credit quality of Novelis and Hindalco are linked to some extent, any change in the credit quality of Hindalco would have a similar effect on the Novelis ratings in the short-to-medium term," Mr. Marleau added. The ratings on Novelis reflect the company's aggressive financial risk profile, characterized by a heavy debt burden, poor cash generation, and unstable margins. Alleviating these weaknesses are the company's leading position in the global aluminum rolled products market, and extensive geographic and product diversity. The ratings also reflect the support of its parent, Hindalco Industries Ltd., for which Novelis is a long- term, strategically important investment. Standard & Poor's believes that this strategic importance provides good incentive for Hindalco to support its US$3.5 billion investment. Notwithstanding poor results in the last two years, Novelis' weak financial performance should improve through 2008 despite the economic slowdown in North America and Europe, as the company improves its ability to manage the operating margin and liquidity risks associated with can-sheet price ceilings and strong aluminum prices. Hindalco acquired Novelis in May 2007, only two years after Novelis was spun out of integrated aluminum producer Alcan Inc. (BBB+/Watch Pos/A-2). The outlook is stable. The outlook factors in an expected improvement in Novelis' financial performance, the parent- subsidiary link between Hindalco and Novelis, and expected support from the parent to the subsidiary entity. Nevertheless, Novelis' standalone credit quality will continue to face pressure from debt that is persistently high for the rating, as well as slowing core markets. Downward pressure on the Novelis ratings is likely if the combination of hedging strategies and changes to its sales contracts does not effectively reduce its exposure to commodity metals prices in the next 12-18 months, such that cash flow stability and the debt reduction pace do not improve. With some debt reduction in the next several years, the company's capital structure could better correspond to its satisfactory business risk, thereby putting upward pressure on the ratings. Based in Atlanta, Georgia, Novelis Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- is the global provider of aluminum rolled products and aluminum can recycling. The company operates in 11 countries and has approximately 12,900 employees. Novelis has the capability to provide its customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America and South America. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. Novelis South America operates two rolling plants and primary production facilities in Brazil in the Latin American region. Novelis also has operations in Germany, Switzerland and Korea. REALOGY CORP: Low EBITDA Cues S&P to Revise Outlook to Negative --------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Realogy Corp. to negative from stable. Ratings on the company, including the 'B' corporate credit rating, were affirmed. "The outlook revision reflects a significantly lower expectation for EBITDA generation in 2008 than we had previously anticipated, as well as the resultant narrowing of the EBITDA cushion in the company's senior secured credit facilities leverage covenant," said Standard & Poor's credit analyst Emile Courtney. The rating reflects Realogy's highly leveraged capital structure, thin expected EBITDA coverage of interest expense, and reduced cash flow generating ability as a result of the residential real estate downturn and the close of the US$9 billion LBO of the company by Apollo Management L.P. in April 2007. The current rating is based on the expectation that Realogy has sufficient available liquidity sources to withstand the current downturn in the U.S. residential real estate cycle. At this time, the most important component of Realogy's liquidity profile is its US$750 million senior secured revolver, which had US$713 million in availability at December 2007 after accounting for outstanding letters of credit. The company's senior secured leverage (as measured by its bank facility) was 3.8x at December 2007, which compares with the 5.6x covenant that becomes effective March 31, 2008. However, in the March 2008 quarter, the expected pace of declines is steeper than expected in transaction sides (down 25% to 28%), price (down 4% to 6% in the company's franchising business, which represented a meaningful amount of EBITDA in 2007), and cash flow (EBITDA is expected to decline meaningfully to break even, although the March 2008 quarter is seasonally weak). In addition, S&P expects Realogy to use nearly $100 million in excess cash balances and borrow about $50 million on its revolver in the March 2008 quarter to fund negative cash flow. Realogy had about US$6.2 billion in funded debt and US$7.7 billion in lease-adjusted debt (including borrowings related to accounts receivable securitizations) at the end of 2007. Over the intermediate term, S&P expects total adjusted leverage to be more than 10x, and interest coverage to be near 1x. Over the near term, S&P expects discretionary cash flow to be negative. These measures assume significant reductions in capital expenditure and acquisition spending, as well as limited net cash outlays for contingent liabilities. Headquartered in Parsippany, New Jersey, Realogy Corporation (NYSE: H)-- http://www.realogy.com/-- is a real estate franchisor and a member of the S&P 500. The company has a diversified business model that also includes real estate brokerage, relocation, and title services. Realogy's world- renowned brands and business units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R), Sotheby's International Realty(R), NRT Incorporated, Cartus, and Title Resource Group. Realogy has more than 15,000 employees worldwide. The company operates in Australia, Brazil and France. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2007, Moody's Investors Service assigned an SGL-3 speculative grade liquidity rating to Realogy Corporation and changed the rating outlook from stable to negative. At the same time, Moody's affirmed the B3 corporate family rating and all other credit ratings. TAM SA: Reports BRL49.8 Mln. Net Income in Fourth Quarter 2007 -------------------------------------------------------------- TAM S.A. reports its fourth quarter results for 2007. Operational and financial data, except where otherwise indicated, are presented based on amounts consolidated in Reais (BRL) and prepared in accordance with accounting principles generally accepted in Brazil (BR GAAP). Highlights -- 7.3 million passengers transported -- an increase of 10% -- Decrease in block hours/day per aircraft from 13 to 12.3 -- Gross Revenues of BRL2.4 billion, an increase of 15.9% -- Begin operations of two A340, two A330, seven A320 and one A321 compensated by three F100 returned in fourth quarter 2007 vs. in third quarter 2007 -- New daily flight to Frankfurt since Nov. 30 -- New daily flight to Madrid since Dec. 21 -- Begin of code share operations with United Airlines, LAN and signature of contract with Lufthansa -- Loan agreement with BNP Paribas to finance up to US$117 million in pre-delivery payment operations for 30 Airbus aircraft -- BRL83 million EBIT and BRL353 million EBITDAR, margins of 3.6% and 15.4% respectively in fourth quarter 2007 Domestic Operations Domestic Operations -- TAM reached 48.2% average market share in fourth quarter 2007. -- ASKs (capacity) increased 9.3% in fourth quarter 2007 compared to fourth quarter 2006 as a result of the increase in the operating fleet of 20 A320, one A319 and three A321, compensated by nine F100 returned and other five in redelivery and the reduction in block hours by aircraft from 13 hours/day to 12.3 hours/day (total operation). -- RPKs (demand) increased 9.9% in fourth quarter 2007 compared to fourth quarter 2006. -- TAM's domestic load factor increased to 71.1% in fourth quarter 2007, compared to 70.7% in fourth quarter 2006. International Operations -- TAM reached 71.5% average market share in fourth quarter 2007 -- ASKs (capacity) increased 71.6% in fourth quarter 2007, due to the increase of two A340, two A330 and three MD11 into TAM's international operating fleet allowing the beginning of daily flights to Milan, Frankfurt and Madrid and the third daily flight to Paris. In South America, TAM started daily flights to Cordoba, Caracas and Montevideo through the increase in the narrow body fleet in the region. -- RPKs (demand) increased 65.3% comparing fourth quarter 2007 with fourth quarter 2006. -- TAM's international load factor decreased 2.7p.p. to 70.8% in fourth quarter 2007 compared to 73.5% in fourth quarter 2006. Financial Performance -- Total CASK increased by 1.4% in fourth quarter 2007 compared to fourth quarter 2006. -- EBIT and EBITDAR margins of 3.6% and 15.4% respectively. -- Net income of BRL49.8 million, a positive margin of 2.2%. -- TAM's total cash and cash equivalents equalled BRL2,607 million. -- Return on Assets (ROA) of 2% -- Return on Equity (ROE) of 8.4% 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: Denies Successful Closure in Brasil Telecom Talks ------------------------------------------------------------- Tele Norte Leste Participacoes S.A. has denied that it has come to a successful closure in talks for the acquisition of Brasil Telecom. As reported in the Troubled Company Reporter-Latin America on April 1, 2008, Tele Norte reached a preliminary agreement with Citigroup and national bank Opportunity for the acquisition of Brasil Telecom. No final accord has been made yet, Business News Americas relates. BNamericas notes that Tele Norte was allegedly aware of the advanced stage of talks among Brasil Telecom's controllers, Citigroup and Opportunity. Once those talks are concluded, Tele Norte will intensify negotiations for Brasil Telecom. Brasil Telecom told BNamericas that its controllers were informed of the possibility of sale to Tele Norte but the deal depends upon shareholder and regulatory approval. 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. ========================== C A Y M A N I S L A N D S ========================== ALPHA VISION: Sets Final Shareholders Meeting for April 4 --------------------------------------------------------- Alpha Vision Capital Offshore Fund Ltd. will hold its final shareholders' meeting on April 4, 2008, at 10:00 a.m., at 600 West Broadway, 32nd Floor, San Diego, California, U.S.A. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Alpha Vision's shareholders decided on Feb. 27, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Michele Baker 600 West Broadway, 32nd Floor San Diego, California, USA ALPHA VISION CAPITAL: Final Shareholders Meeting is on April 4 -------------------------------------------------------------- Alpha Vision Capital Master Fund Ltd. will hold its final shareholders' meeting on April 4, 2008, at 10:00 a.m., at 600 West Broadway, 32nd Floor, San Diego, California, U.S.A. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Alpha Vision's shareholders decided on Feb. 27, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Michele Baker 600 West Broadway, 32nd Floor San Diego, California, USA CC CAYCO: Proofs of Claim Filing Deadline is April 4 ---------------------------------------------------- CC Cayco Limited's creditors have until April 4, 2008, to prove their claims to Richard L. Finlay, 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. CC Cayco's shareholder decided on Jan. 30, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay Attn: Krysten Lumsden Conyers Dill & Pearman P.O. Box 2681, Cricket Square Hutchins Drive, Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 945 3901 Fax: (345) 945 3902 CLOUDVIEW OFFSHORE: Sets Final Shareholders Meeting for April 3 --------------------------------------------------------------- Cloudview Offshore Fund will hold its final shareholders' meeting on April 3, 2008, at 12:00 a.m. at Kinetic Partners Cayman LLP, Harbor Center, 42 North Church Street, Grand Cayman, Cayman Islands. These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Cloudview Offshore's shareholders decided on Jan. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Geoffrey Varga Attn: Bernadette Bailey-Lewis Kinetic Partners P.O. Box 10387, Grand Cayman KY1-1004 Cayman Islands Telephone: (345) 623 9900 Fax: (345) 623 0007 COREL CORP: Cayman-Based Firm Bid Prompts S&P's Negative Watch -------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' long-term corporate credit and senior secured debt ratings on Corel Corp. on CreditWatch with negative implications. The recovery rating on the senior secured debt is unchanged at '3'. The CreditWatch placement follows the unsolicited bid by Cayman Islands-based Corel Holdings L.P. to acquire all of Corel's common shares outstanding that it doesn't hold already for a price of US$11 per share. Corel Holdings is controlled by an affiliate of San Francisco-based private equity investment company Vector Capital Corp. Corel Holdings has indicated that its offer is conditional upon, among other things, confirmed satisfactory due diligence and Corel's existing credit facility remaining in place following the close of any transaction. In response to the bid, Corel's board of directors has formed a special committee to evaluate Corel Holdings' proposal and other related strategic considerations. "The CreditWatch listing primarily reflects our lack of sufficient information about CHLP including its existing assets, operations, and capital structure, as well as its plans to finance the estimated US$84 million acquisition," said S&P's credit analyst Madhav Hari. S&P's notes that pursuant to Corel Holdings LP's purchase of Corel Corp., Corel Holdings' financial policy and capital structure become germane to the ratings of 100%-owned subsidiary Corel. S&P will resolve the CreditWatch listing once it has an opportunity to fully evaluate the transaction, including details of Corel Holdings LP's operations and the new owners' strategy. Ottawa, Ontario-based Corel Corporation (NASDAQ: CREL) (TSX: CRE) -- http://www.corel.com/-- is a packaged software company with an estimated installed base of over 40 million users. The company provides productivity, graphics and digital imaging software. Its products are sold in over 75 countries through a scalable distribution platform comprised of original equipment manufacturers, Corel's international websites, and a global network of resellers and retailers. The company's product portfolio features CorelDRAW(R) Graphics Suite, Corel(R) WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro, and Corel Painter(TM). The company has operations in Germany, Italy, the United Kingdom, Australia, Japan, Korea, Brazil, and Mexico, among others. CRESCENT AIR: Proofs of Claim Filing Deadline is April 3 -------------------------------------------------------- Crescent Air Asia Investments, Ltd.'s creditors have until April 3, 2008, to prove their claims to Linburgh Martin and Jeff Arkley, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Crescent Air's shareholder decided on Jan. 30, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Linburgh Martin and Jeff Arkley Attn: Neil Gray P.O. Box 1034, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 EAST LANE: S&P Puts BB Sr. Debt Rating on US$75MM Variable Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services has assigned its 'BB' senior secured debt rating to East Lane Re II Ltd.'s US$75 million Series 2008-1 Class A variable-rate notes and US$70 million Series 2008-1 Class B variable-rate notes, and assigned its 'B-' senior secured debt rating to the company's US$55 million Series 2008-1 Class C variable-rate notes. All these notes are due April 7, 2011. The Class A and Class B notes provide multi-year reinsurance protection on a per occurrence indemnity basis against certain first and subsequent hurricanes, earthquakes, thunderstorms, winter storms, wildfires, or other peril loss events in the northeast United States. The Class C notes provide multi-year reinsurance protection on a per occurrence indemnity basis against loss events in the contiguous 48 states, D.C., and Canada. Losses to East Lane II will be based on the actual losses incurred by Federal Insurance Co. and other companies commonly referred to as the Chubb Group of Insurance Companies (a/k/a Chubb; the ceding insurer). The risk period for each series will begin at 12:00 a.m. the day after closing and end on March 31, 2011. The reinsurance agreement, which is effectively supported by the proceeds from the issuance of the notes, will provide the Federal Insurance Co. and other associated Chubb companies (AA/Stable/--) with a source of indemnity catastrophe coverage on certain commercial and personal lines business for loss events in the covered areas over a three-year risk period. "East Lane II represents the first occasion that Standard & Poor's will have assigned a rating to notes issued in connection with a catastrophe bond in which the offering expressly includes the modeled peril of wildfire," said S&P's credit analyst Gary Martucci. S&P's review of modeling associated with the modeled peril of wildfire was complicated by the fact that nonnatural factors (e.g., arson or the ability or desire of communities to finance and enforce fire suppression measures) could directly impact the inherent risk of the peril. To address this challenge, S&P considered detailed data provided to it by the ceding insurer and AIR Worldwide Corp. regarding wildfires frequency, severity, and probable cause. Importantly, according to the modeling undertaken by AIR Worldwide, the modeled peril of wildfire contributed nominally to the modeled probability of attachment. S&P was able to conclude that the inclusion of this peril would present a minimal contribution to the overall risk to the transaction. For this transaction, the addition of wildfires increased the modeled probability of attachment for the Class C notes by one basis point, and had no effect on the Class A and B notes. In addition to the modeled data, the rating agency also considered the peril of wildfire impact on the overall risk of the transaction in a historical context. For example, current estimates from the ceding insurer for the October 2007 wildfires in southern California indicate a projected loss of US$85 million; meaning that for the Class C attachment point of US$900 million to be breached, the ceding insurer would have to suffer a loss due to wildfire that is approximately 10.5 the size of that event or 6.5 the largest wildfire losses (the 1991 Oakland fires) observed. S&P would find it challenging to include this peril in this or future transactions if it were to conclude that wildfire represented more than a negligible risk to the note holders for the reasons noted. This offering is also subject to losses from an other peril loss event, which includes, though is not limited to, loss events such as fire, explosion, lightning, volcanic actions, mudslide, the overflowing of a body of water, falling objects, direct impact of aircraft, and collapse of building. Collectively, an Other peril loss event impacts the probability of attachment to the Class A, Class B, and Class C notes by 0 bps, 10 bps, and 24 bps, respectively. However, the contribution of any individual loss within the category of an Other peril loss event is significantly less. Note that strikes, riots, or civil commotion, unless a consequence of a loss event, are excluded; any loss arising from nuclear reaction, radiation, or radioactive contamination, as well as any loss arising out of an act of terrorism, are specifically excluded. S&P's observations above related to the challenges of modeling the peril wildfire, insofar as they may be subject to nonnatural factors, are likewise applicable to a man-made Other peril loss event. East Land Re Ltd. is a newly created Cayman Islands exempted special purpose company licensed as a Class B insurer in the Cayman Islands. FDVG BALANCED: Proofs of Claim Filing Deadline is April 3 --------------------------------------------------------- FDVG Balanced Company Limited's creditors have until April 3, 2008, to prove their claims to Scott Aitken and Connan Hill, 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. FDVG Balanced's shareholder decided on Jan. 30, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Scott Aitken and Connan Hill Attn: Alex Johnston P.O. Box 1109, George Town Grand Cayman, Cayman Islands Telephone: (345) 949-7755 Fax: (345) 949-7634 LASALLE STRATEGIC: Proofs of Claim Filing Deadline is April 4 ------------------------------------------------------------- Lasalle Strategic Fund Trust's creditors have until April 4, 2008, to prove their claims to UBS Fund Services (Cayman) Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Lasalle Strategic's shareholder decided on March 5, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: UBS Fund Services (Cayman) Ltd. Attn: Jodi Jones P.O. Box 258, Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 914 8694 Fax: (345) 945 4237 NGF LTD: Proofs of Claim Filing is Until April 3 ------------------------------------------------ NGF Ltd.'s creditors have until April 3, 2008, to prove their claims to Linburgh Martin and Jeff Arkley, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. NGF's shareholder decided on Feb. 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Linburgh Martin and Jeff Arkley Attn: Neil Gray P.O. Box 1034, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 SAPIC-98 REFERENCE: Proofs of Claim Filing Deadline is April 3 -------------------------------------------------------------- SAPIC-98 Reference Fund (48) Limited's creditors have until April 3, 2008, to prove their claims to Peter D. Anderson and S. Alan Milgate, 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. SAPIC-98 Reference's shareholder decided on Feb. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Peter D. Anderson and S. Alan Milgate Rawlinson & Hunter P. O. Box 897 Third Floor, One Capital Place Shedden Road, George Town Grand Cayman KY1-1103, Cayman Islands Telephone: (345) 949 7576 Fax: (345) 949 8295 THE DRAKE GLOBAL: Proofs of Claim Filing is Until April 4 --------------------------------------------------------- The Drake Global Bond Fund - Euro, Ltd.'s creditors have until April 4, 2008, to prove their claims to John Cullinane and Derrie Boggess, 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. The Drake Global's shareholder decided on July 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 ========= C H I L E ========= AES GENER: Inks Contract With Escondida for Electricity Plant ------------------------------------------------------------- AES Gener has signed a contract with Escondida for the construction of a 460-megawatt coal-fired electricity plant in region II. According to Escondida, the deal ensures the firm some 220 megawatts of electricity for 18 years from the plant, which will begin production in 2011. AES Gener's unit Norgener has agreed with Escondida the extension of 62-megawatt electricity supply until 2029, Business News Americas states. AES Gener is the second-largest electricity generation group in Chile in terms of generating capacity (20% market share) with an installed capacity of 2,428 megawatts. Gener serves both the Central Interconnected System or SIC and the Northern Interconnected System or SING through various subsidiaries and related companies, including affiliate Guacolda and the TermoAndes subsidiary. TermoAndes has a generation capacity of 642.8 megawatts, which while located in Argentina serves Chile's SING via InterAndes transmission line. Gener also participates in electricity generation in Colombia through Chivor hydroelectric plant of 1,000 megawatts, and a 25% participation in Itabo's facilities in the Dominican Republic (432.5 megawatts). Gener is 91.2% owned by AES (IDR rated 'B+' by Fitch). * * * To date, AES Gener carries Moody's Investors Service's Ba2 long- term foreign bank deposit rating with a stable outlook. The firm also carries Standard & Poor's Ratings Services' BB+ long- term foreign issuer credit rating with a positive outlook. GRUPO POSADAS: Tender Offer for 8-3/4% Sr. Notes to Expire ---------------------------------------------------------- As previously announced, Grupo Posadas, S.A.B. de C.V. has launched an offer to purchase for cash any and all of its outstanding 8-3/4% senior notes due 2011 and a solicitation of consents from the holders of the notes, upon the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated March 17, 2008, and in the related Consent and Letter of Transmittal. Pursuant to the Tender Offer and Consent Solicitation, as of 5:00 p.m., New York City time, on March 28, 2008, a majority in aggregate principal amount of the company's outstanding notes had been tendered and not withdrawn. In addition, as of March 28, 2008, the company had obtained consents to the Proposals from holders of notes representing a majority in principal amount of the outstanding notes. The Tender Offer will expire at 12:00 midnight, New York City time, on Friday, April 11, 2008, unless extended or earlier terminated. Registered holders of the notes who validly tender, and do not validly withdraw their notes after 5:00 p.m., New York City time, on March 28, 2008, and prior to 12:00 midnight, New York City time, on April 11, 2008, will receive only the Offer Price, and will not be eligible to receive the total consideration. The total consideration offered for notes validly tendered and not validly withdrawn pursuant to the Tender Offer shall be US$1,050 per US$1,000 principal amount of such notes. The total consideration includes a consent payment of US$15.00 per US$1,000 principal amount of such notes. The total consideration minus the consent payment is referred to as the "Offer Price." In connection with the Tender Offer, the company intends to issue senior unsecured floating rate and fixed rate notes due 2013 and 2018 in the form of Certificados Bursatiles under applicable Mexican law, to be registered and listed exclusively in Mexico through the Mexican Stock Exchange (new notes). The company is currently in the process of registering the new notes before the National Securities Registry of the Mexican Securities and Banking Commission, and expects this registration to occur before April 11, 2008. The company intends to use the proceeds from the offering of the new notes and other sources of funding to consummate the Tender Offer. The obligation of the company to accept for payment and to pay for any notes validly tendered pursuant to the Tender Offer is conditioned upon (1) the execution by the company, certain subsidiaries of the company who have guaranteed the notes and The Bank of New York, as trustee, New York paying agent, registrar and New York transfer agent, under the indenture dated as of Oct. 4, 2004 under which the notes were issued, of a supplemental indenture implementing the proposed amendments to the Indenture pursuant to the terms of the Indenture, (2) there having been validly tendered and not validly withdrawn prior to 12:00 midnight, New York City time, on April 11, 2008, not less than a majority in aggregate principal amount of the notes outstanding under the Indenture, excluding notes owned by the company or any of its affiliates, (3) the receipt by the company of proceeds from the issuance of the new notes on terms and conditions satisfactory to the company and in an amount that, together with other sources of funding, would be sufficient to consummate the Tender Offer, (4) the amendment and restatement of the US$80,000,000 amended and restated credit agreement dated Nov. 10, 2006, among the company, certain of the company's subsidiaries named therein, as guarantors, ING Capital LLC, as administrative agent, and the lenders listed on schedule 1.1(a) thereto (and any subsequent lenders, to the extent they are lenders as of such time), so as to waive, delete or eliminate, among other provisions, any section thereof requiring pari passu payment of indebtedness under such agreement along with the notes, becoming effective prior to 12:00 midnight, New York City time, on April 11, 2008, and (5) satisfaction of the other conditions to the Tender Offer and Consent Solicitation set forth in the Offer to Purchase. The company has engaged Credit Suisse Securities (USA) LLC to act as the Dealer Manager and Solicitation Agent in connection with the Tender Offer and Consent Solicitation, and D.F. King & Co., Inc. to act as the tender agent and information agent for the Tender Offer and Consent Solicitation. Any questions or requests for assistance regarding the Tender Offer and Consent Solicitation may be made to: Dealer Manager and Solicitation Agent, Credit Suisse, Attention: Liability Management Group Tel. numbers: (800) 820-1653 or (212) 538-0652. Questions or requests for assistance or additional copies of the Offer to Purchase and the related Letter of Transmittal may be directed to: Information Agent, D.F. King & Co., Inc. Tel. numbers: (800) 290-6429 (toll free) and (212) 269-5550 (collect). Copies of the Offer Documents are also available at the offices of the Luxembourg Listing Agent, Paying Agent and Transfer Agent for the notes: The Bank of New York (Luxembourg) S.A., Aerogolf Center, 1A, Hoehenhof, L-1736 Senningerberg, Luxembourg. Grupo Posadas SA de CV (BMV: POSADAS) -- http://www.posadas.com -- is the largest hotel operator in Mexico, specializing for over 37 years in providing high-quality hotel services aimed at covering the specific needs of its hotel customers, currently operates 102 hotels and approximately 18,800 rooms in some of the most important and most highly visited urban and coastal destinations in Mexico, the United States and South America. Grupo Posadas operates under its Aqua, Fiesta Americana Grand, Fiesta Americana, Fiesta Americana Vacation Club, Fiesta Inn, One Hotel, Caesar Park, Caesar Business and The Explorean brands in Brazil, Argentina and Chile. * * * As reported in the Troubled Company Reporter-Latin America on May 22, 2007, Fitch Ratings upgraded the foreign currency and local currency Issuer Default Ratings of Grupo Posadas, S.A.B. de C.V. as well as the issue rating on Posadas' US$225 million senior notes due 2011 to 'BB' from 'BB-'. Fitch has also upgraded the national scale rating of Posadas to 'A+(mex)' from 'A(mex)' including MXN250 million 'Certificados Bursatiles' issuance due 2009. Fitch's rating outlook is stable. =============== C O L O M B I A =============== BANCOLOMBIA: Supreme Court Suspends Superior Court's Ruling ----------------------------------------------------------- On March 28, 2008, the Civil Chamber of the Colombian Supreme Court of Justice temporarily suspended the decision of the Tribunal Superior de Bogota dated Feb. 26, 2008, that annulled an award granted by an arbitral tribunal in March 30, 2006 (Arbitral Award) requiring Mr. Jaime Gilinski to pay COP63,216,447,152 to Bancolombia S.A. This amount included accrued interest and adjustments for inflation. The arbitral tribunal that granted the Arbitral Award, had ruled in favor of Bancolombia, and the validity and enforceability of a guaranty granted by the former Banco de Colombia S.A. for payment of specific contingencies and liabilities, the value of which is now US$30 million. Bancolombia had filed the complaint, in the context of the merger between Banco de Colombia S.A. and Bancolombia. In a decision dated Feb. 26, 2008, the Superior Court annulled the Arbitral Award, based solely on procedural matters. The Supreme Court temporarily suspended the Superior Court decision, rejecting the Superior's Court reasoning and holding that an annulment of the Arbitration Award violated the constitutional rights of Bancolombia. Bancolombia will continue to enforce its rights and those of its shareholders before the competent forums. Bancolombia will continue to defend the validity and the transparency of the actions of the bank and its officers in the acquisition of Banco de Colombia S.A. and the subsequent merger. Bancolombia is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * As reported in the Troubled Company Reporter-Latin America on June 27, 2007, Moody's Investors Service changed the outlook to positive from stable on its Ba3 long-term foreign currency deposit ratings and Ba1 long-term foreign currency subordinated bond rating for Bancolombia, S.A. BANCOLOMBIA: Unit Eyes Up to 33 Transactions This Year ------------------------------------------------------ Bancolombia's investment banking unit Banca de Inversion Bancolombia's President Rodrigo Velasquez told Business News Americas that the unit aims to have up to 33 transactions this year. BNamericas relates that Banca de Inversion had 24 transactions of over COP14 trillion in 2007, compared to 20 deals for COP4.4 trillion in 2006. Much of the unit's activity last year was from initial public offerings, which accounted for COP6.8 trillion. The star project in 2007 was the initial public offering of a 10.1% stake of Ecopetrol, which raised some US$2.8 billion. Mr. Velasquez told BNamericas that the Ecopetrol share offer split the history of Colombia's stock exchange in two, as it added over 500,000 Colombians to its ownership. BNamericas notes that increased activity increased Banca de Inversion's fee income to COP21.7 billion last year. Mr. Velasquez commented to BNamericas, "Last year was exceptionally good in terms of fees thanks to complex project finance transactions and the IPOs [initial public offerings] of these state-owned companies." Banca de Inversion wants an up to COP25 billion fee income in 2008, BNamericas says, citing Mr. Velasquez. The report says that merger and acquisition deals accounted for COP6.5 trillion for Banca de Inversion last year, with the takeover of local retail chain Almacenes Axito by French supermarket retailer Casino Guichard and Bancolombia's purchase of El Salvador's Banco Agricola as the largest deals. Mr. Velasquez told BNamericas that Banca de Inversion is advising major local groups from the financial, foods, chemical, plastics and pharmaceutical sectors to try the Central American and Peruvian markets. Banca de Inversion is seeing increased interest by private equity groups, Brazilians, Chileans, and Peruvians in making purchases in the Colombian market. "We believe the level of M&A [merger and acquisition] in Colombia will be higher this year despite tough economic conditions and the availability of financing and market volatility seems to point in the opposite direction," Mr. Velasquez commented to BNamericas. Bancolombia is Colombia's largest full-service financial institution, formed by a merger of three leading Colombian financial institutions. Bancolombia's market capitalization is over US$5.5 billion, with US$13.8 billion asset base and US$1.4 billion in shareholders' equity as of Sept. 30, 2006. Bancolombia is the only Colombian company with an ADR level III program in the New York Stock Exchange. * * * As reported in the Troubled Company Reporter-Latin America on June 27, 2007, Moody's Investors Service changed the outlook to positive from stable on its Ba3 long-term foreign currency deposit ratings and Ba1 long-term foreign currency subordinated bond rating for Bancolombia, S.A. =================================== D O M I N I C A N R E P U B L I C =================================== FLOWSERVE: S&P Changes Outlook to Positive; Holds BB- Rating ------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Flowserve Corp. to positive from stable. At the same time, S&P affirmed all ratings, including the 'BB-' corporate credit rating. "The outlook revision reflects the improved credit quality resulting from Flowserve's progress in alleviating certain regulatory and investigative issues while achieving good operating performance and maintaining financial discipline," said Standard & Poor's credit analyst John R. Sico. S&P could raise the rating one notch in the near term if these conditions continue absent any significant debt-funded acquisition or large shareholder-friendly cash uses. The ratings on Irving, Texas-based Flowserve, a manufacturer of engineered pumps, valves, and mechanical seals, reflect the company's satisfactory business risk profile and somewhat aggressive financial risk profile. The financial risk stems partially from the company's past debt-financed acquisitions, and has been mitigated somewhat by the resolution of certain legal and investigatory issues. Management has focused on managing debt and improving internal cash generation, resulting in better credit metrics. Meanwhile, the company's end markets are good, with the oil and gas markets robust, and should sustain over the intermediate term. S&P could raise the ratings by one notch in the near term if Flowserve maintains acquisitive and financial discipline. Given its geographic and product diversity, along with its substantial aftermarket business, Flowserve should maintain its strong internal cash generation. Current managers have demonstrated financial discipline by keeping debt reduction a priority, to the benefit of credit measures. S&P could lower the ratings if management's financial policies and the company's performance deteriorate beyond current expectations. Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) -- http://www.flowserve.com/-- provides fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. In Latin America, Flowserve operates in 36 countries such as the Dominican Republic, Guatemala, Guyana and Belize. ============= E C U A D O R ============= PETROECUADOR: Seeking Bids for Oriente & Napo Crude --------------------------------------------------- Petroecuador is seeking bids for the sale of 7.92 million barrels of Oriente crude and 1.44 million barrels of Napo crude. Dow Jones Newswires relates that Petroecuador will sell Oriente crude in 11 cargoes of 720,000 barrels each and Napo in two cargoes of 720,000 barrels each. The crude will be delivered in May and June. Petroecuador will accept offers for the crude until April 4, Dow Jones states. Headquartered in Quito, Ecuador, Petroecuador -- http://www.petroecuador.com.ec-- is an international oil company owned by the Ecuador government. It produces crude petroleum and natural gas. * * * In previous years, Petroecuador, according to published reports, was faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much- needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. In 2008, a new management team was appointed to turn around the company's operations. ========= H A I T I ========= DYNCORP INT'L: Expands US Training Contract to Haiti & Liberia -------------------------------------------------------------- DynCorp International Inc. is expanding its work under its Civilian Police contract with the United States State Department to include new training missions in Haiti and Liberia. The expanded work has a value of more than US$7 million. Under the Haiti Stabilization Initiative task order, DynCorp International will provide training support for up to 444 Haitian National Police. The task order includes DynCorp International procurement of the Haitian police force’s basic and specialized non-lethal equipment, vehicles and communications equipment. The value of this work is US$3 million. The company has also been tasked to refurbish the main police station in Cite Soleil. This station will function as the primary location for this new specialized unit. The refurbishment work will be more than US$600,000. In Liberia DynCorp International will also train and equip up to 500 Liberian National Police members who will establish an Emergency Response Unit with the United Nations Police and the United Nations Mission in Liberia. To support the unit, the company will also undertake new building construction and the renovation of existing LNP facilities. The value of this work is US$3.5 million. The award in Liberia follows DynCorp International’s successful work of training a professional army for the Ministry of National Defense in Liberia under its Security Sector Reform program with the State Department. About DynCorp International DynCorp International Inc. -- http://www.dyn-intl.com/-- (NYSE: DCP) through its operating company DynCorp International LLC, is a provider of specialized mission-critical technical services, mostly to civilian and military government agencies. It operates major programs in law enforcement training and support, security services, base operations, aviation services and operations, and logistics support worldwide. Headquartered in Falls Church, Virginia, DynCorp International LLC has approximately 15,000 employees worldwide including Haiti. * * * DynCorp still carried Standard and Poor's BB- rating assigned on June 15, 2006. S&P said the outlook is stable. =========== M E X I C O =========== AMERICAN AXLE: Likely to Outsource Work if Union Talks Fail ----------------------------------------------------------- American Axle & Manufacturing Holdings Inc.'s Chief Executive Officer Richard Dauch berated United Auto Workers union representatives for the work stoppage that has caused a chain reaction in the U.S. auto industry, Tom Walsh of the Detroit Free Press reports. The CEO added that the auto parts manufacturer may end up outsourcing its manufacturing division if talks with the UAW negotiations fail. CEO Dauch said that the company has the right to outsource its work since they have facilities all over the globe -- Mexico, South America, Europe, and Asia, Mr. Walsh recounts. Mr. Dauch added that Axle will not be forced into bankruptcy. Since the resumption of talks between Axle and UAW on March 13, 2008, as reported in the Troubled Company Reporter, the discussions have been on and off, Mr. Walsh relates. Axle spokeswoman Renee Rogers said letters were sent informing workers, who were laid off before the strike, to come back to work, The Associated Press reports. If not, she added, these workers could lose benefits. As previously reported in the TCR, labor talks ceased on March 11 after a bargaining that lasted three days failed to produce results. Union officials weren't happy with the terms proposed by the auto parts company. Axle is demanding wage reductions of up to US$14 an hour as well as elimination of future retiree health care and defined benefit pensions for active workers. Axle, which earned US$37 million on US$3.25 billion sales in 2007, wanted a deal like those UAW gave General Motors Corp., Ford Motor Co., Chrysler LLC, and parts makers Delphi Corp. and Dana Corp., insisting that cutting labor costs is essential to be competitive. The auto parts supplier is asking the union to approve US$20 to US$30 hourly wage cuts from US$73 per hour to US$27 per hour, arguing that its original U.S. locations incurred losses for three years. The March 11 talks would have resolved a strike, which started Feb. 26, 2008, of the 3,650 employees at master-contract plants in Michigan and New York. American Axle Statement As previously reported, according to the company, it is not, and never has been, an original equipment manufacturer. AAM is a Tier 1, Tier 2 and Tier 3 supplier to the automotive industry. Yet, 14 years after the company was founded, AAM continues to work under an uncompetitive OEM-style labor agreement with the UAW. The company disclosed that its "all-in labor costs" at the original U.S. locations covered by this agreement with the UAW are approximately 300% of the market rate of its competitors in the United States. AAM's UAW-represented facilities currently affected by the work stoppage are not profitable and have not been for years. In formal and informal discussions that have occurred for more than two years, AAM has presented the UAW with many alternatives to address the company's need to transition to a market competitive labor cost structure in the United States. AAM has proposed to make a significant financial commitment to fund retirement incentives, buy-outs and buy-downs to help associates make the transition to a market competitive labor cost structure. This is AAM's preferred approach. This approach would allow AAM to continue operating at the original U.S. locations and retain significant employment at these UAW- represented facilities. If a market competitive labor cost structure cannot be attained at the original U.S. locations, AAM has advised the UAW that it will consider additional capacity rationalization initiatives. Strike Impact on Automakers GM has about 29 facilities affected by the strike at Axle as the supplier attempts to negotiate with the union. GM president and COO Frederick Henderson said GM won't meddle in the labor dispute between AAM and the UAW. As reported in the TCR on March 27, 2008, the month-long work protest of union members at Axle is taking its toll on GM, threatening the automaker's brake part plant in Lordstown, Ohio, which has 2,400 workers. Chrysler LLC is temporarily closing its vehicle assembly facility in Newark, Delaware as the strike among UAW union members at AAM stretches. AAM supplies Chrysler components for the Dodge Durango and Chrysler Aspen sport utility vehicles in Newark and two versions of the Dodge Ram pickup made in Saltillo, Mexico. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter on March 24, 2008, Standard & Poor's Ratings Services placed the ratings on American Axle & Manufacturing Holdings Inc. (BB/Watch Neg/--) on CreditWatch with negative implications to reflects S&P's decision to review the ratings in light of the extended American ASARCO LLC: Bankruptcy Court OKs Chapter 11 Interim Procedures -------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of Texas today approved ASARCO LLC’s proposed interim procedures for selecting a plan sponsor and exiting chapter 11. The company may now proceed with the proposed bidding for its assets