/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/080403.mbxT R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, April 3, 2008, Vol. 9, No. 66 Headlines A R G E N T I N A ASOCIACION MUTUAL: Files for Reorganization in Court GEN SISTEMAS: Proofs of Claim Verification Deadline is May 15 HUNTER JUNIORS: Proofs of Claim Verification is Until May 29 INDIAN CREEK: Proofs of Claim Verification Deadline is April 25 LOS REYES: Proofs of Claim Verification Deadline is May 12 MARASCO Y SPEZIALE: Files for Reorganization in Court PERNOD RICARD: Fitch Lowers Ratings on Vin & Spirit Buy QUIKSILVER INC: S&P Puts BB- Credit Rating under Negative Watch RADIO REMISE: Proofs of Claim Verification is Until June 27 TALLERES UNION: Proofs of Claim Verification Deadline is June 16 B A H A M A S PINNACLE ENTERTAINMENT: Moody's Holds 'B2' Corp. Family Rating B E R M U D A ELAN CORP: Court Dismisses Tysabri Investor Lawsuit GLOBAL PARTNERS: Proofs of Claim Filing Deadline is April 18 GLOBAL PARTNERS: Final Shareholders Meeting Set for April 30 SECURITY CAPITAL: Unit Files Counterclaims Against Merrill Lynch TYCO INTERNATIONAL: To Report 2nd Qtr. 2008 Results on May 1 B O L I V I A ALCATEL-LUCENT SA: To Build Bolivia's 1st WiMAX System for Entel COEUR D'ALENE: Begins Commissioning San Bartolome Silver Mine B R A Z I L BANCO BMG: To Sell Up to BRL100MM/Month Payroll Loans to Nossa BANCO ITAU: To Spend US$10 Mln. for Chilean Life Insurance Unit BANCO NACIONAL: OKs BRL7.30 Bil. Credit Line for Companhia Vale BANCO NOSSA: To Buy Up to BRL100MM/Month Payroll Loans from BMG NOVELL INC: Augments Operations With PlateSpin Buyout Completion REALOGY CORP: CFO Hull Comments on S&P's March Outlook Action TAM: Sao Paulo/Milan Route Carries 131,000 Passengers in 1st Yr. UNIAO DE BANCOS: Will Establish Investment Bank VALMONT INDUSTRIES: Revenue Growth Cues Moody's Rtng Lift to Ba1 C A Y M A N I S L A N D S AAM EMERGING: Sets Final Shareholders Meeting for April 4 CARBON TRADING: Will Hold Final Shareholders Meeting on April 4 CARBON TRADING MASTER: Final Shareholders Meeting is on April 4 CC CAYCO: Sets Final Shareholders Meeting for April 4 CHEYNE GLOBAL: Sets Final Shareholders Meeting for April 4 FINANCIAL RISK: Sets Final Shareholders Meeting for April 4 GLOBAL YACHT: Will Hold Final Shareholders Meeting on April 4 HIGHLAND SPECIAL: Proofs of Claim Filing Deadline is Tomorrow NEW ORIENTAL: Will Hold Final Shareholders Meeting on April 4 PARMALAT SPA: Warrant Exercise Hikes Capital by EUR6.29 Million SNOWBALL MULTI: Final Shareholders Meeting is on April 4 TGM CURRENCY: Sets Final Shareholders Meeting for April 4 C H I L E QUEBECOR WORLD: Jefferies & Co. as Committee Bankers Approved QUEBECOR WORLD: Kurtzman Carson Hiring as Committee Agent Okayed QUEBECOR WORLD: Mesirow Hiring as Panel Financial Advisor Okayed C O S T A R I C A CINEMARK HOLDINGS: Elects Steven P. Rosenberg to Board US AIRWAYS: Court of Appeals Upholds Ruling on R. Bosiger's Suit US AIRWAYS: To Settle MD Aviation Claim by Paying US$11,500,000 US AIRWAYS: R. Thomas Demands Retirement Benefits Continued D O M I N I C A N R E P U B L I C CAP CANA: Land Court Judges Issue Arrest Warrant for R. Hazoury DELTA AIR: Launches Food-for-Purchase Program in Caribbean E L S A L V A D O R AES CORP: Unit Gets Regulator Nod to Acquire Bioenergia Assets G U A T E M A L A BRITISH AIRWAYS: Facing GBP20Mln Costs Over Flight Cancellations H A I T I DYNCORP INT'L: Realigns Business, Adds Third Reporting Segment H O N D U R A S CHIQUITA BRANDS: Recalling Cantaloupes from Honduras J A M A I C A AIR JAMAICA: Will Suspend Three Weekly Flights to St. Lucia CABLE & WIRELESS: Jamaican Unit Raises Line Rental Fee CASH PLUS: Debt Exceeds Income; Goes Into Receivership M E X I C O CONSTELLATION COPPER: Defaults in CN$69 Million Debentures COREL CORP: Gets Proposal from Shareholder Corel Holdings DURA AUTOMOTIVE: Further Amends First Revised Chapter 11 Plan DURA AUTOMOTIVE: Court Extends Exclusivity Deadline to April 30 * MEXICO: 2008 Outlook for Major Banks is Adequate, Fitch Says P U E R T O R I C O DORAL FINANCIAL: S&P Lifts LT Counterparty Credit Rating to B+ V E N E Z U E L A PETROLEOS DE VENEZUELA: Debt Up 449% in 2007, 28.5% of Assets X X X X X X * Moody's Sees Neg. Outlook for Global Paper & Forest Products - - - - - ================= A R G E N T I N A ================= ASOCIACION MUTUAL: Files for Reorganization in Court ---------------------------------------------------- Asociacion Mutual del Personal de la Administracion Publica Buenos Aires has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Asociacion Mutual 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. 9 in Buenos Aires. Clerk No. 18 assists the court in this case. The debtor can be reached at: Asociacion Mutual del Personal de la Administracion Publica Buenos Aires Tucuman 1424 Buenos Aires, Argentina GEN SISTEMAS: Proofs of Claim Verification Deadline is May 15 ------------------------------------------------------------- Diana Panitch, the court-appointed trustee for Gen Sistemas Medicos SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 15, 2008. Ms. Panitch will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 35, 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 Gen Sistemas 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 Gen Sistemas' accounting and banking records will be submitted in court. Ms. Panitch is also in charge of administering Gen Sistemas' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Gen Sistemas Medicos SRL Pasteur 174 Buenos Aires, Argentina The trustee can be reached at: Diana Panitch Avenida Corrientes 1250 Buenos Aires, Argentina HUNTER JUNIORS: Proofs of Claim Verification is Until May 29 ------------------------------------------------------------ Edgardo Alberto Borghi, the court-appointed trustee for Hunter Juniors SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 29, 2008. Mr. Borghi will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 5 in Buenos Aires, with the assistance of Clerk No. 9, 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 Hunter Juniors 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 Hunter Juniors' accounting and banking records will be submitted in court. Infobae didn't state the submission deadlines for the reports. Mr. Borghi is also in charge of administering Hunter Juniors' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Hunter Juniors SA Yerbal 1032 Buenos Aires, Argentina The trustee can be reached at: Edgardo Alberto Borghi Luis Viale 2176 Buenos Aires, Argentina INDIAN CREEK: Proofs of Claim Verification Deadline is April 25 --------------------------------------------------------------- Elsa Ester Andrade, the court-appointed trustee for Indian Creek S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 25, 2008. Ms. Andrade will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Indian Creek 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 Indian Creek's accounting and banking records will be submitted in court. Infobae didn't state the submission deadlines for the reports. Ms. Andrade is also in charge of administering Indian Creek'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: Elsa Ester Andrade Avenida Callao 449 Buenos Aires, Argentina LOS REYES: Proofs of Claim Verification Deadline is May 12 ---------------------------------------------------------- Silvia Gloria Muavero, the court-appointed trustee for Los Reyes Magos S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 12, 2008. Ms. Muavero will present the validated claims in court as individual reports on June 23, 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 Los Reyes and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Los Reyes' accounting and banking records will be submitted in court on Aug. 25, 2008. Ms. Muavero is also in charge of administering Los Reyes' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Silvia Gloria Muavero Alsina 1760 Buenos Aires, Argentina MARASCO Y SPEZIALE: Files for Reorganization in Court ----------------------------------------------------- Marasco y Speziale Sacifei has requested for reorganization approval after failing to pay its liabilities since Feb. 21, 2008. The reorganization petition, once approved by the court, will allow Marasco y Speziale 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. 12 in Buenos Aires. Clerk No. 24 assists the court in this case. The debtor can be reached at: Marasco y Speziale Sacifei Pasco 763/65 Buenos Aires, Argentina PERNOD RICARD: Fitch Lowers Ratings on Vin & Spirit Buy ------------------------------------------------------- Fitch Ratings downgraded French Wine and Spirit maker Pernod Ricard SA's Long-term Issuer Default and senior unsecured ratings to 'BB+' from 'BBB-' (BBB minus). The Short-term IDR has also been downgraded to 'B' from 'F3'. The Outlook for the Long-term IDR has been changed to Negative from Stable. These rating actions follow the March 31, 2008 announcement by Pernod that it will be paying EUR5.6bn cash, including assumed debt of EUR366m, for the acquisition of Swedish alcoholic beverages group Vin & Sprit. "While this transaction enables Pernod to address its two main relative weaknesses compared to industry leader Diageo, namely the lack of adequate critical mass in the important US market and the lack of a comparably strong presence in the high growth vodka category, the high and fully debt-funded acquisition price takes the group's leverage to the 'BB' rating category," says Giulio Lombardi, Senior Director in Fitch's Retail and Consumer Products Group. Following the V&S acquisition, leverage (as calculated on a lease and pension adjusted basis) will increase to above 6.0x. Excluding any exceptional cash charges, Pernod, together with V&S, should be able to generate an annual Free Cash Flow of approximately EUR300-400m, which Fitch assumes would be mostly applied to debt reduction. However, Fitch calculates that it could take at least three years for Pernod to reach credit metrics consistent with an investment grade rating, a timeframe that makes it difficult to justify affirming the ratings. During the next three years, Pernod will also be faced with a slowing outlook for consumer spending in western Europe and the US, as well as challenges to implement budgeted synergies, as it will initially not fully control the distribution channels for Absolut Vodka in the US and internationally. Additionally, the group's growth ambitions could potentially prevail over any commitment to return to investment grade ratings. Through this acquisition, Pernod strengthens its number two position in the global western-style spirits industry, reaching a market share of 18.6% in volume terms. However, Diageo's advantage (24.2% global market share) remains strong, thanks to net sales (in value terms) of approximately 1.5x Pernod's in each of the European and US markets and a less fragmented product portfolio. Pernod's ambitions to further close its gap with Diageo might require more acquisition spending. The combination of risks from the integration, payments to sever ties with distribution partners, as well as possible acquisition spending and slower EBITDA growth might even prejudice the achievement of 'BB+' credit metrics, thus underpinning the current Negative Outlook. Headquartered in Paris, France, Pernod Ricard -- http://www.pernod-ricard.com/-- produces and distributes spirits and wines. The Company operates in Europe, North America, Central and South America, and the Asia-Pacific region. In Latin America and South America, the company operates in Argentina, Brazil, Chile, Colombia, Mexico, Uruguay and Venezuela. Pernod Ricard benefits from a portfolio comprising some of the most prestigious brands in the sector: Ricard aniseed, Ballantine’s, Chivas Regal and The Glenlivet Scotch whiskies, Jameson Irish Whiskey, Martell cognac, Havana Club rum, , Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier- Jouët champagnes, as well as Jacob’s Creek and Montana wines. The Group favours a decentralised organisation, with "Brand Owners" and "Distribution" companies established in each key market, and employs a workforce of around 18,000 in 70 countries. In addition, Pernod Ricard is strongly committed to a policy of Corporate Social Responsibility and encourages responsible consumption in order to prevent alcohol misuse and abuse. QUIKSILVER INC: S&P Puts BB- Credit Rating under Negative Watch --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Quiksilver Inc., including its 'BB-' corporate credit rating, on CreditWatch with negative implications. The Huntington Beach, Calif.-based apparel company had about US$996 million in debt outstanding at Jan. 31, 2008. The CreditWatch placement reflects the much weaker-than-expected credit measures reported for the first quarter ended January 2008. "While we expected that results would be lower due to the company's current difficulties with its Rossignol hard-good equipment business," said Standard & Poor's credit analyst Susan Ding, "financial measures for the last 12 months came in well below our expectations, despite the US$100 million debt reduction from the sale of its Cleveland Golf business in December 2007." Standard & Poor's originally expected that leverage would be about 4.7x at year end (adjusted for the sale of Cleveland Golf). However, due to losses at the Rossignol business that depressed the EBITDA base significantly, leverage climbed to close to 6x for the 12 months ended January 2008 versus about 5.7x for the 12 months ended October 2007. Total debt also increased as a result of increased capitalized operating leases, due to the new retail stores opened during the year. Although the company announced it will explore selling the Rossignol business, it is uncertain when and if the company would be able to effect a transaction, in light of the current economic environment, and what the magnitude would be of any potential debt reduction from the application of sale proceeds and ensuing improvement in credit measures. "We will meet with management to further discuss Quiksilver's operating trends and forecasts in order to resolve the CreditWatch," said Ms. Ding. Quiksilver, Inc. -- http://www.quiksilver.com/-- is a globally diversified company that designs, produces and distributes branded apparel, wintersports equipment, footwear, accessories and related products. Its products are sold in over 90 countries in a range of distribution channels, including surf shops, ski shops, skateboard shops, snowboard shops, its Boardriders Club shops, other specialty stores and select department stores. The Company has three operating segments, the Americas, Europe and Asia/Pacific. The Americas segment includes revenues primarily from the United States and Canada. The European segment includes revenues primarily from Western Europe. The Asia/Pacific segment includes revenues primarily from Australia, Japan, New Zealand and Indonesia. In October 2007, the Company entered into an agreement to sell its golf equipment business. This transaction was completed in December 2007. The company has operations in Argentina. Standard & Poor's Ratings Services assigned a BB- rating on Quiksilver Inc. RADIO REMISE: Proofs of Claim Verification is Until June 27 ----------------------------------------------------------- Manuel Alberto Cibeira, the court-appointed trustee for Radio Remise S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 27, 2008. Mr. Cibeira will present the validated claims in court as individual reports on Aug. 27, 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 Radio Remise 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 Radio Remise's accounting and banking records will be submitted in court on Oct. 8, 2008. Mr. Cibeira is also in charge of administering Radio Remise's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Manuel Alberto Cibeira Avenida Cordoba 1247 Buenos Aires, Argentina TALLERES UNION: Proofs of Claim Verification Deadline is June 16 ---------------------------------------------------------------- Mauricio Leon Zafran, the court-appointed trustee for Talleres Union S.A. de Artes Graficas Industrial y Comercial's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 16, 2008. Mr. Zafran will present the validated claims in court as individual reports on Aug. 19, 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 Talleres Union 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 Talleres Union's accounting and banking records will be submitted in court on Oct. 1, 2008. Mr. Zafran is also in charge of administering Talleres Union's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Talleres Union S.A. de Artes Graficas Industrial y Comercial Patagones 2748 Buenos Aires, Argentina The trustee can be reached at: Mauricio Leon Zafran Avenida Callao 420 Buenos Aires, Argentina ============= B A H A M A S ============= PINNACLE ENTERTAINMENT: Moody's Holds 'B2' Corp. Family Rating -------------------------------------------------------------- Moodys Investors Service affirmed all ratings for Pinnacle Entertainment Inc. and revised the rating outlook to stable from positive. This was in anticipation of a moderation in the company's consolidated operating performance through 2008 as a result of less favorable economic conditions along with the expectation that Pinnacle intends to pursue new development opportunities in Louisiana and Atlantic City, New Jersey. This makes it unlikely that the company will achieve the credit metrics required for higher rating. Pinnacle's B2 corporate family, B2 probability of default, Ba2 (LGD-2, 17%) senior secured bank loan, and B3 (LGD-5, 76%) senior subordinated note ratings were affirmed. Pinnacle recently announced that it may delay new development in Atlantic City, New Jersey and potentially other projects as well, because of volatile capital markets and debt restrictions included in two of its senior subordinated note indentures. However, when market conditions improve, it's expected that Pinnacle will pursue a refinancing of its existing capital structure and raise additional debt to give it the flexibility and funding necessary to proceed with these new development projects. As a result, debt EBITDA is expected to peak at a level greater that the company's fiscal 2007 debt EBITDA of 5.5 times. Pinnacle's ratings reflect the company's high leverage, the competition its Belterra casino faces from two new Indiana racinos that are scheduled to open relatively soon, and intense competition in Bossier City. Ratings are supported by the good initial ramp-up results at the recently opened Lumiere casino in St. Louis, Missourri and strong results from Pinnacle's L'Auberge casino in Lake Charles, Lousiana. L'Auberge has been operating for two full years and has exceeded original expectations in terms of revenue and EBITDA. Also considered are Pinnacle's good liquidity position and delayed development timeline which will allow the company to accumulate surplus cash flow that can be used for future development. Pinnacle owns and operates casinos in Nevada, Louisiana, Indiana, Missouri, Argentina and The Bahamas. Reported net revenues for the fiscal year ended Dec. 31, 2007 were US$924 million. ============= B E R M U D A ============= ELAN CORP: Court Dismisses Tysabri Investor Lawsuit ---------------------------------------------------- U.S. District Judge Richard Holwell has thrown out a class action lawsuit brought by investors against Elan Corp PLC and its executives over its multiple sclerosis drug Tysabri, Reuters reports. Reuters recounts that the plaintiffs accused Elan and its executives of misrepresentations and omissions regarding the safety, commercial viability and projected market share of Tysabri, causing the company's stock price to be artificially inflated. In an opinion posted on March 28, 2008, Judge Holwell, who sits in Federal court in Manhattan, said that the plaintiffs had failed to adequately show that Elan and its executives had motive and opportunity to commit fraud. Judge Holwell said that the plaintiffs could file a motion for permission to amend their complaint. Reuters explains that Tysabri, which is made by Biogen Idec Inc and Elan, was temporarily suspended from the market in 2005 after some patients developed a potentially deadly brain infection. The drug was allowed back on the market in 2006 with certain restrictions after U.S. regulators decided multiple sclerosis patients were willing to accept the risks in return for the potential benefits. About the Company Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Elan shares trade on the New York, London and Dublin Stock Exchanges. The company has locations in Bermuda and Japan. * * * As of April 1, 2008, Elan Corp. plc carries Moody's long-term corporate family rating of B3, probability of default rating of B2 with positive outlook. Standard & Poors gave the company B rating on long-term foreign issuer credit and B rating on long-term local issuer credit with positive outlook. GLOBAL PARTNERS: Proofs of Claim Filing Deadline is April 18 ------------------------------------------------------------ Global Partners Ltd.'s creditors are given until April 18, 2008, to prove their claims to Christopher C. Morris, 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. Global Partners' 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: Christopher C. Morris Century House 16 Par-la-Ville Road, Hamilton Bermuda GLOBAL PARTNERS: Final Shareholders Meeting Set for April 30 ------------------------------------------------------------ Global Partners Ltd. will hold its final general meeting on April 30, 2008, at 3:00 p.m. at Arthur Morris, Christensen & Co., Century House, 16 Par-la-Ville Road, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. Global Partners' 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: Christopher C. Morris Century House 16 Par-la-Ville Road, Hamilton Bermuda SECURITY CAPITAL: Unit Files Counterclaims Against Merrill Lynch ---------------------------------------------------------------- Security Capital Assurance Ltd.'s financial guarantee subsidiary XL Capital Assurance Inc. has filed its answer and counterclaims in the United States District Court for the Southern District of New York against Merrill Lynch International and Merrill Lynch & Co. Inc., in response to Merrill Lynch International's March 19, 2008 lawsuit against XL Capital. In its filing, XL Capital disputes the legal claims filed by Merrill Lynch International and defends the terminations of the seven credit default swaps entered into between XL Capital and Merrill Lynch International. As noted in the counterclaim, "In attempting to offload subprime mortgage and other liabilities related to troubled collateralized debt obligations (CDOs), Merrill Lynch & Co. agreed to provide third parties with control rights over seven of its CDOs, even though those same control rights had already been exclusively committed to XLCA." XL Capital required sole control rights under the seven CDOs at issue as a "fundamental condition" to entering into the credit default swaps with Merrill Lynch International. However, during its 2007 third quarter in which it would write down approximately US$7.9 billion in its CDO and subprime mortgage businesses, "Merrill Lynch undertook a rushed campaign to find parties willing to hedge or provide protection on its remaining CDO positions. Determined to get these CDO risks off its books at all costs before the third quarter of 2007 closed, Merrill Lynch made the decision to blatantly ignore its prior commitments to XLCA." XL Capital's counterclaims ask the court to declare that its terminations are effective and that it has no additional obligations under the credit default swaps. The notional amount of the terminated credit default swaps at Dec. 31, 2007, aggregated US$3.1 billion before reinsurance. For the year ended Dec. 31, 2007, Security Capital Assurance Ltd. recorded a charge of US$632.3 million relating to these credit default swaps, of which US$215 million represents a net unrealized, mark-to-market loss and US$417.3 million represents the provision of case basis reserves for losses and loss adjustment expenses. In addition, XL Capital seeks damages estimated to be at least US$28 million for amounts that Merrill Lynch International is obligated to pay XL Capital under the terms of the credit default swaps as a result of the terminations. Security Capital stated, "Despite whatever claims Merrill Lynch may make regarding our decision to enforce these contract terminations, we believe Merrill Lynch gave away our control rights on seven CDOs in direct violation of our agreements. On behalf of our policy holders and shareholders, we intend to defend the terminations vigorously and look forward to presenting our case to the court soon." About Security Capital Security Capital Assurance Ltd. (NYSE: SCA) -- http://www.scafg.com-- is a Bermuda-domiciled holding company whose primary operating subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd, provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. * * * As reported in the Troubled Company Reporter-Latin America March 25, 2008, Standard & Poor's Ratings Services lowered its rating on Security Capital Assurance Ltd.'s series A perpetual noncumulative preference shares to 'C' from 'BB-'. The shares remain on CreditWatch with negative implications. At the same time, S&P withdrew its 'BB+' preliminary senior secured debt rating and 'BB-' preliminary preferred stock rating on SCA's Rule 415 shelf registration. These actions follow the company's recent announcement that its board of directors elected not to declare a semiannual dividend payable on March 31, 2008. TYCO INTERNATIONAL: To Report 2nd Qtr. 2008 Results on May 1 ------------------------------------------------------------ Tyco International Ltd. will report its results for the second quarter of fiscal 2008 before trading begins on May 1, 2008. The company will hold a conference call for investors at 8:30 a.m. EDT. The call can be accessed in these ways: -- At the company's website: http://investors.tyco.com. -- By telephone: For both "listen-only" participants and those participants who wish to take part in the question- and-answer portion of the call, the telephone dial-in number in the United States is (800) 398-9402. The telephone dial-in number for participants outside the U.S. is (612) 332-1214. -- An audio replay of the conference call will be available beginning at 10:30 a.m. on May 1, 2008 and ending on May 8, 2008. The dial-in number for participants in the U.S. is (800) 475-6701. For participants outside the U.S., the replay dial-in number is (320) 365-3844. The replay access code for all callers is 918069. Based in Pembroke, Bermuda, Tyco International Ltd. (NYSE: TYC) -- http://www.tyco.com/-- provides security, fire protection and detection, valves and controls, and other industrial products and services to customers in four business segments: Electronics, Fire & Security, Healthcare, and Engineered Products & Services. With 2007 revenue of US$18 billion, Tyco employs approximately 118,000 people worldwide. In Latin America, Tyco has presence in Argentina, Brazil, Chile, Costa Rica, Ecuador, Honduras, and the Bahamas. Effective June 29, 2007, Tyco International Ltd. completed the spin-offs of Covidien and Tyco Electronics, formerly its Healthcare and Electronics businesses, respectively, into separate, publicly traded companies in the form of a distribution to Tyco shareholders. * * * As reported in the Troubled Company Reporter on Dec. 21, 2007, in its annual report for the year ended Sept. 28, 2007, Tyco said that on Nov. 8, 2007, The Bank of New York delivered to the company a notice of events of default. The notice claims that the actions taken by the company in connection with its separation into three public entities constitute events of default under certain indentures. ============= B O L I V I A ============= ALCATEL-LUCENT SA: To Build Bolivia's 1st WiMAX System for Entel ---------------------------------------------------------------- Alcatel-Lucent S.A. has been awarded a contract by Entel S.A. to deploy the first commercial WiMAX Rev-e (802.16e-2005 standard) network in Bolivia. This new network will support voice over IP (VoIP), high-speed Internet access, video and other data services for Entel customers. The new network will accommodate stationary and nomadic applications, and will complement the carrier's existing fixed- based broadband services. Entel plans to launch commercial service of the network by the end of this quarter. Alcatel-Lucent will provide its end-to-end WiMAX solution, including base stations, wireless access controllers, software and application platforms. It also will provide design and planning for end-to-end network integration services, including radio network planning, installation and commissioning, project management and support services for Entel's network. To ensure Entel's customers will benefit from early, state-of- the-art WiMAX devices that comply with the IEEE 802.16e-2005 standard, Alcatel-Lucent has teamed up with ZyXEL, a pioneer in this domain, to provide customer-premises equipment. In addition to being able to offer new revenue-generating services, Entel will benefit from additional operational efficiencies because this solution offers one of the most advanced technologies in terms of radio frequency management. "In fast-growing economies such as Bolivia, our universal WiMAX solution is the ideal means of rapidly and cost-effectively increasing penetration of high-speed Internet access and basic telephony services via VoIP, because the carrier can avoid the costly and disruptive civil engineering work involved in deploying copper or optical fiber cable," said Alcatel-Lucent's President of Caribbean & Latin America activities, Victor Agnellini. "This project underscores Alcatel-Lucent's commitment to WiMAX as a key element of its universal broadband access strategy, and expands the company's footprint in the region." With more than 70 pilots and deployments across the world and 22 commercial contracts signed since the beginning of 2007, Alcatel-Lucent is No. 1 in the worldwide WiMAX market. About Entel S.A. Entel is the leading telecommunication operator of Bolivia providing nationwide fixed and mobile communications as well as value added services. The company has invested over US$740 million in the country to serve the fast growing demand of telecommunication services in the urban and rural communities of Bolivia. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short-term debt of Alcatel-Lucent. Moody's said the outlook for the ratings is stable. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. COEUR D'ALENE: Begins Commissioning San Bartolome Silver Mine ------------------------------------------------------------- Coeur d'Alene Mines Corp. has begun commissioning its San Bartolome silver mine in Bolivia and expects the first dore pour by the end of April. Business News Americas relates that Coeur d'Alene started crushing and stockpiling ore. It has become connected to the Bolivian national power grid, allowing the firm to complete the final commissioning of the grinding, leaching, and silver recovery circuits. Coeur d'Alene told BNamericas that San Bartolome will reach full capacity in August. It will "churn out 6Moz of silver in 2008 at US$4.10/oz in cash costs, excluding royalties and production taxes in the order of US$2.03/oz." San Bartolome will produce 10Moz of silver in its first year after the "ramp-up to full capacity." It has 153Moz of silver reserves and some 34.2Moz of indicated resources that will make it last for 14 years, BNamericas states. Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's Ratings Services B- rating. =========== B R A Z I L =========== BANCO BMG: To Sell Up to BRL100MM/Month Payroll Loans to Nossa -------------------------------------------------------------- Banco Nossa Caixa will buy up to BRL100 million per month in payroll loans from Banco BMG over the next 12 months. Business News Americas relates that according to the terms of the accord between Banco Nossa and Banco BMG, the deal could be worth as much as BRL1.20 billion in payroll loans. According to BNamericas, Banco Nossa's Chief Executive Officer Milton Luiz de Melo Santos said in March that the bank was considering purchasing loans generated by other financial institutions to expand its retail loan book up to 45% this year. The report says that Banco Nossa increased loans to individuals by 23.2% to BRL6.63 billion in 2007, compared to 2006, due to a 33.3% growth in payroll loans to Sao Paulo state workers. The payroll loans totaled BRL3.49 billion. BNamericas notes that Banco BMG's Chief Executive Officer Ricardo Guimaraes said the bank was generating over BRL600 million per month in new loans. Banco BMG will increase lending at least 25% this year compared to last year, which increased 44.5% to BRL12.5 billion, BNamericas states. Banco BMG is the banking arm of Grupo BMG, which also has real estate, food manufacturing and agro industry holdings. The bank is a niche player focused on loans to civil servants, with repayments taken monthly from payrolls. BMG operates mainly through in-house representatives in state companies. It also offers leasing and asset management services. * * * As reported in the Troubled Company Reporter-Latin America on June 26, 2007, Standard & Poor's Ratings Services raised its long-term counterparty credit rating on Banco BMG S.A. to 'BB-' from 'B+'. The rating was removed from CreditWatch Positive where it was placed June 11, 2007. S&P said the outlook is stable. On March 10, 2008, Moody's Investors Rating gave Banco BMG's US$250 million issue a Ba1 long-term foreign currency debt rating with a stable outlook and the bank's US$1 billion note program a Ba1 long-term foreign currency rating with a stable outlook and a Not Prime short-term foreign currency rating. BANCO ITAU: To Spend US$10 Mln. for Chilean Life Insurance Unit --------------------------------------------------------------- Banco Itau Holding Financeira SA's Latin American Chief Executive Officer Ricardo Marino told journalists that the bank will spend US$10 million to launch a Chilean life insurance unit later this year. According to Business News Americas, Mr. Marino said that the planned unit will concentrate on individual life insurance, which is in line with Banco Itau's country strategy of focusing on higher-income customers. Mr. Marino denied that Banco Itau will enter Chile's mandatory pension system because an enacted reform prevents banks from offering these plans to the public, the news agency states. Banco Itau entered the Chilean market in February 2007 when it concluded the acquisition of BankBoston Chile and rebranded it Itau Chile, BNamericas adds. Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA(Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. The bank has offices in Miami, New York, Hongkong, Lisbon, Luxembourg, Bahamas, the Cayman Islands, Chile and Uruguay. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Fitch changed the outlook of Banco Itau Holding Financiera S.A.'s 'BB+' foreign currency IDR rating to positive from stable. BANCO NACIONAL: OKs BRL7.30 Bil. Credit Line for Companhia Vale --------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has authorized a BRL7.30 billion credit line for Companhia Vale do Rio Doce. According to Banco Nacional, the funds will be used to advance Companhia Vale's 2008-12 investment program and for projects in Brazil. Part of the resources will go to Companhia Vale's corporate social responsibility initiatives. Banco Nacional told Business News Americas that Companhia Vale will be able to access the funds for five years. About Companhia Vale Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio Doce -- http://www.cvrd.com.br/-- engages primarily in mining and logistics businesses. It engages in iron ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. About Banco Nacional 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. BANCO NOSSA: To Buy Up to BRL100MM/Month Payroll Loans from BMG --------------------------------------------------------------- Banco Nossa Caixa will buy up to BRL100 million per month in payroll loans Banco BMG over the next 12 months from. Business News Americas relates that according to the terms of the accord between Banco Nossa and Banco BMG, the deal could be worth as much as BRL1.20 billion in payroll loans. According to BNamericas, Banco Nossa's Chief Executive Officer Milton Luiz de Melo Santos said in March that the bank was considering purchasing loans generated by other financial institutions to expand its retail loan book up to 45% this year. The report says that Banco Nossa increased loans to individuals by 23.2% to BRL6.63 billion in 2007, compared to 2006, due to a 33.3% growth in payroll loans to Sao Paulo state workers. The payroll loans totaled BRL3.49 billion. BNamericas notes that Banco BMG's Chief Executive Officer Ricardo Guimaraes said the bank was generating over BRL600 million per month in new loans. Banco BMG will increase lending at least 25% this year compared to last year, which increased 44.5% to BRL12.5 billion, BNamericas states. Headquartered in Sao Paulo, Brazil, Banco Nossa Caixa SA -- http://www.nossacaixa.com.br/-- operates as a multiple bank offering banking and financial services through commercial and loan portfolios, including real estate and foreign exchange, as well as administering credit cards. Through its subsidiary, it operates with private pensions. Nossa Caixa uses demand, saving and time deposits, which include judicial deposits, to fund its operations. The main focus of Nossa Caixa is to attend individuals, especially public employees and small and medium- sized companies in Sao Paulo, as well as state and municipal government agencies. As the official bank for the government of the State of Sao Paulo, it administers the state's resources and state lotteries and takes care of the payroll of the indirect state administration and part of the direct administration. As of Dec. 31, 2005, the Bank's network consisted of 2,579 attendance points in its distribution network. * * * In October 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Nossa Caixa, which is constrained by Brazil's foreign currency deposit ceiling. NOVELL INC: Augments Operations With PlateSpin Buyout Completion ---------------------------------------------------------------- Novell Inc. completed its acquisition of PlateSpin Ltd. The company related that PlateSpin allows the movement of workloads between physical and virtual environments regardless of platform or operating system. These capabilities, combined with Novell's systems management solutions, enable customers to fully leverage their virtualization investments and reduce both costs and server sprawl in their data centers. As reported in the Troubled Company Reporter on Feb. 28, 2008, Novell Inc. entered into a definitive agreement to acquire PlateSpin Ltd. for $205 million. "The addition of PlateSpin to Novell's existing enterprise IT management and Linux solutions will give customers the capabilities they need to build their next generation data center," Joe Wagner, senior vice president and general manager of Novell(R) Systems and Resource Management, said. "With solutions for data center consolidation, virtualization, relocation, disaster recovery and ongoing optimization, customers now have powerhouse technology to reduce cost, minimize risk and create value across heterogeneous environments with flexibility, interoperability and agility." "We are excited to be joining the Novell organization and a global team of people committed to the vision of optimizing the data center," Stephen Pollack, founder and CEO of PlateSpin, said. "We will continue to focus on the development of the PlateSpin product line and look forward to the new synergies our combined offerings will bring to customers." With the closing of the acquisition, PlateSpin will become part of the Novell Systems and Resource Management business unit and continue to develop and market its solutions to the customer base. This is another key step in Novell's strategy to help customers integrate their mixed IT environments, allowing people and technology to work as one. About PlateSpin Ltd. PlateSpin offers extensive solutions for the management of heterogeneous workloads that encapsulate data, applications and operating systems residing on a physical or virtual host. These solutions improve the speed and quality of server consolidation, data center relocation and disaster recovery. About Novell Inc. Headquartered in Waltham, Massachusetts, Novell Inc. (Nasdaq: NOVL) -- http://www.novell.com/-- delivers infrastructure software for the Open Enterprise. Novell provides desktop to data center operating systems based on Linux and the software required to secure and manage mixed IT environments. The company has offices in Australia, Argentina, Austria, Belgium, Brazil, China, Czech Republic, Finland, Germany, Hong Kong, Hungary, India, Ireland, Japan, Luxembourg, Malaysia, Netherlands, New Zealand, Norway, Philippines, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand and United Kingdom. * * * Novell Inc. continues to carry Moody's Investors Service's 'B1' subordinated debt rating, which was placed in September 1988. REALOGY CORP: CFO Hull Comments on S&P's March Outlook Action ------------------------------------------------------------- Standard & Poor's Ratings Services, on March 27, 2008, affirmed Realogy Corp.'s “B” corporate rating, but revised its outlook from “Stable” to “Negative.” According to S&P credit analyst Emile Courtney, "[t]he 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[.]" CFO Anthony E. Hull, as disclosed in the company's website, however said that the S&P report does not explicitly mention three key factors that are important to reiterate: -- Realogy's interest cost in 2008 will be significantly less than previously expected and 2007 pro forma levels. -- Realogy's proactive cost savings and cash maximization initiatives that have been successfully implemented (including exit from the government at-risk business that will free up US$50 million of cash this year) will continue to enhance our ability to tap into our bank debt revolver. -- Due to the seasonality of the real estate market, first quarter of any year is historically our slowest quarter (not just 2008). As we are only one-quarter into the year, the company has 85% to 90% of its EBITDA opportunity ahead of it. While the revised outlook was based primarily upon the continuing downturn in the residential real estate market, the S&P report concluded with the following astute statement: “Even though a return to growth in sides and price metrics in the industry could be at least one year away (in early 2009), our expectation remains that Realogy will benefit meaningfully in terms of growth in EBITDA and cash flow generation when the cycle turns upward, and that credit measures would improve.” About Realogy Corporation 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. TAM: Sao Paulo/Milan Route Carries 131,000 Passengers in 1st Yr. ---------------------------------------------------------------- This week, TAM Linhas Aereas completes a year of operations to Milan, Italy. The company's third direct destination in Europe, this daily flight has carried more than 73.2 thousand passengers on the Sao Paulo/Milan route and 58.6 thousand on the return leg, with a 70% average load factor, in one year of operation. "Our Milan flight has been integrated. It is a destination that attracts tourism and business, as well as being an important entry point into Europe," stated Vice-President of Planning and Alliances, Paulo Castello Branco. The flight uses MD-11 aircraft, with a carrying capacity of up to 289 passengers in three classes (First, Business and Economy). One of the differences of this TAM flight is the in-flight entertainment service for First and Business Classes. All video and audio programming, as well as games, are available on a small portable device known as a Personal Entertainment Appliance (PEA). Programming includes 10 movies, three variety channels, nine games, 100 music albums and various video clips. Fares between Sao Paulo and Milan start at US$919 (round trip). The flight leaves Guarulhos Airport -- SP for Milan at 7:10 p.m. local time. The return flight leaves Malpensa Airport at 1:30 p.m. local time. TAM S.A. -- http://www.tam.com.br/-- currently 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. UNIAO DE BANCOS: Will Establish Investment Bank ----------------------------------------------- Uniao de Bancos Brasileiros SA will form investment bank Unibanco Banco de Investimentos to make more money from initial public offerings, Brazilian financial daily Valor Economico reports. According to Valor Economico notes that Unibanco Banco de Investimentos will begin with BRL400 million in capital. Business News Americas relates that Uniao de Bancos has hired former BNDES Chief Eleazar de Carvalho Filho to be in charge of distribution and former Credit Suisse employee Eduardo Gentil to be responsible for business origination. Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/-- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. The company's businesses comprise segments: Retail, Wholesale, Insurance and Pension Plans and Wealth Management. Uniao de Bancos and its associated companies FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas) offer a network composed of 17,000 points of service. It also counts on 7,580 automated teller machines and all 30 Hours' products and services, including the telephone service and the Internet banking. The company's international network consists of branches in Nassau and the Cayman Islands; representatives offices in New York; banking subsidiaries in Luxembourg, the Cayman Islands and Paraguay; and a brokerage firm in New York -- Unibanco Securities Inc. * * * To date, Standard & Poor's Ratings Services rated Unibanco-Uniao de Bancos Brasileiros SA's long-term foreign issuer credit rating and local issuer credit rating at 'BB+'. VALMONT INDUSTRIES: Revenue Growth Cues Moody's Rtng Lift to Ba1 ---------------------------------------------------------------- Moody's upgraded the Corporate Family and Probability of Default Ratings of Valmont Industries, Inc. to Ba1 from Ba2. Concurrently, Moody's raised the senior unsecured credit facility rating to Baa3 from Ba1 and raised the senior subordinated notes rating to Ba2 from Ba3. These rating actions acknowledge the solid organic revenue growth and steady margin improvement achieved over several years and since the ratings were placed on positive outlook, resulting in operating performance that exceeded previous expectations. The upgrade further reflects Moody's expectation that fiscal policies will remain conservative and key credit metrics, including leverage, will be maintained at levels appropriate for the Ba1 rating category. Further supporting the Ba1 Corporate Family Rating are Valmont's leading market positions, low customer concentration and good liquidity profile. Valmont's rating is constrained by a relatively small revenue base for the rating category. Additionally, approximately 75% of revenues is concentrated in North America which, in Moody's opinion, together with size make the business potentially vulnerable to macroeconomic and end- market demand cyclicality in this region. Liquidity is expected to be good over the next twelve months, as indicated by the affirmation of the SGL-2 Speculative Grade Liquidity Rating. Moody's took these rating actions: -- US$150 million senior unsecured revolver due 2009, upgraded to Baa3 (LGD3, 35%) from Ba1 (LGD3, 44%); -- US$37 million senior unsecured term loan due 2009, upgraded to Baa3 (LGD3, 35%) from Ba1 (LGD3, 44%); -- US$150 million senior subordinated notes due 2014, upgraded to Ba2 (LGD5, 81%) from Ba3 (LGD5, 82%); -- Corporate Family Rating, upgraded to Ba1 from Ba2; -- Probability of Default Rating, upgraded to Ba1 from Ba2; -- Speculative Grade Liquidity Rating, affirmed SGL-2. Valmont Industries, Inc. is a global producer of metal and concrete pole and tower structures, mechanized irrigation systems and coatings. Customers and end-users include state and federal governments, contractors, utility and telecommunications companies, manufacturers of commercial lighting fixtures and large farms. Headquartered in Omaha, Nebraska, the company is publicly held and reported revenues of US$1.5 billion for the year ended Dec. 29, 2007. The company has operations in Brazil. ========================== C A Y M A N I S L A N D S ========================== AAM EMERGING: Sets Final Shareholders Meeting for April 4 --------------------------------------------------------- AAM Emerging Managers Offshore, Ltd., will hold its final shareholders' meeting on April 4, 2008, at 11:30 a.m. at the office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. AAM Emerging's shareholders agreed on Feb. 22, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands CARBON TRADING: Will Hold Final Shareholders Meeting on April 4 --------------------------------------------------------------- Carbon Trading Fund Ltd. will hold its final shareholders' meeting on April 4, 2008, at 10:30 a.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Carbon Trading's shareholders agreed on Feb. 19, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands CARBON TRADING MASTER: Final Shareholders Meeting is on April 4 --------------------------------------------------------------- Carbon Trading Master Fund Ltd. will hold its final shareholders' meeting on April 4, 2008, at 10:00 a.m. at the office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Carbon Trading's shareholders agreed on Feb. 22, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands CC CAYCO: Sets Final Shareholders Meeting for April 4 ----------------------------------------------------- CC Cayco Limited will hold its final shareholders' meeting on April 4, 2008, at 9:00 a.m. at the office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators 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. CC Cayco's shareholders agreed on Feb. 22, 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 P.O. Box 2681, George Town Grand Cayman, Cayman Islands Telephone: (345) 945 3901 Fax: (345) 945 3902 CHEYNE GLOBAL: Sets Final Shareholders Meeting for April 4 ---------------------------------------------------------- Cheyne Global Opportunities Fund Inc. will hold its final shareholders' meeting on April 4, 2008, at 12:00 p.m. at the office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Cheyne Global's shareholders agreed on Feb. 22, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands FINANCIAL RISK: Sets Final Shareholders Meeting for April 4 ----------------------------------------------------------- Financial Risk Management Water Fund Limited will hold its final shareholders' meeting on April 4, 2008, at 11:00 a.m. at the office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Financial Risk's shareholders agreed on Feb. 22, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands GLOBAL YACHT: Will Hold Final Shareholders Meeting on April 4 ------------------------------------------------------------- Global Yacht Ltd. will hold its final shareholders' meeting on April 4, 2008, at 10:00 a.m. at 2306 SW 13th Street, 2nd Floor, Gainesville, Florida 32608, U.S.A. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) determining the manner in which the books, accounts, and documentation of the company, and of the liquidator should be disposed of. Global Yacht's shareholders agreed on Feb. 22, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: S. Clark Butler 2306 SW 13th Street 2nd Floor Gainesville, FL 32608 Florida, U.S.A Telephone: (+352) 372 6060 Fax: (+352) 372 7028 HIGHLAND SPECIAL: Proofs of Claim Filing Deadline is Tomorrow ------------------------------------------------------------- Highland Special Opportunity Master Fund, Limited's creditors have until April 4, 2008, to prove their claims to Richard Fogerty and G. James Cleaver, 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. Highland Special's shareholders agreed on Feb. 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The shareholders also passed a resolution to replace Simon Whicker and Kristen Beighton of KPMG as the company's joint voluntary liquidators. The liquidators can be reached at: Richard Fogerty and G. James Cleaver Attn: Chris Sharpe Kroll (Cayman) Limited 4th Floor Bermuda House, Dr. Roy’s Drive Grand Cayman, Cayman Islands Telephone: +1 (345) 946-4015 Fax: +1 (345) 946-0082 NEW ORIENTAL: Will Hold Final Shareholders Meeting on April 4 ------------------------------------------------------------- New Oriental Gas Limited will hold its final shareholders' meeting on April 4, 2008, at 10:00 a.m. at Jin Bao Plaza, No. 89 Jin Bao Road, Dong Cheng Dong District, Beijing 100005, China. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. New Oriental's shareholders agreed on Dec. 27, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Shen Jianwei Corporate Filing Services Ltd. P.O. Box 613, Grand Cayman KY1-1107 Cayman Islands Telephone: (86-10) 8522 1133 Fax: (86-10) 8522 1313 PARMALAT SPA: Warrant Exercise Hikes Capital by EUR6.29 Million -------------------------------------------------------------- Parmalat S.p.A. communicates that, following the allocation of shares to creditors of the Parmalat Group, the subscribed and fully paid up share capital has now been increased by EUR6,289,038 to EUR1,667,496,728 from EUR1,661,207,690. The share capital increase is due to the exercise of 6,289,038 warrants. Share Allotment Status Shares totaling 32,464,186 representing around 1.9% of the share capital are still in a deposit account c/o Parmalat S.p.A., of which: * 13,369,205 or 0.8% of the share capital, registered in the name of individually identified commercial creditors, are still deposited in the intermediary account of Parmalat S.p.A. centrally managed by Monte Titoli (compared with 13,388,617 shares as at Feb. 29, 2008); and * 19,094,981 or 1.1% of the share capital registered in the name of the Foundation, called Fondazione Creditori Parmalat, of which: -- 120,000 shares representing the initial share capital of Parmalat S.p.A. (unchanged); and -- 18,974,981 or 1.1% of the share capital that pertain to currently undisclosed creditors (compared with 19,653,870 shares as at Feb. 29, 2008). About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted Parmalat Permanent Injunction. SNOWBALL MULTI: Final Shareholders Meeting is on April 4 -------------------------------------------------------- Snowball Multi Manager FX Fund SPC will hold its final shareholders' meeting on April 4, 2008, at 11:00 a.m. at Kroll (Cayman) Limited, 4th Floor, Bermuda House, Dr. Roy’s Drive, Grand Cayman, Cayman Islands, to lay accounts before the meeting, showing how the winding up has been conducted and how the property has been disposed of. Snowball Multi's shareholders agreed on Feb. 22, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Gordon I. Macrae Attn: Hadley Chilton Kroll (Cayman) Limited, 4th Floor Bermuda House, P.O. Box 1102 Dr. Roy’s Drive, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 946-0081 Fax: (345) 946-0082 TGM CURRENCY: Sets Final Shareholders Meeting for April 4 --------------------------------------------------------- TGM Currency Fund will hold its final shareholders' meeting on April 4, 2008, at 9:00 a.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. TGM Currency's shareholders agreed on Feb. 19, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands ========= C H I L E ========= QUEBECOR WORLD: Jefferies & Co. as Committee Bankers Approved ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized the Official Committee of Unsecured Creditors in Qubebecor World Inc.'s cases to retain Jefferies & Company, Inc., as its investment bankers, on an interim basis, nunc pro tunc to Feb. 5, 2008. Further objections must be filed by April 10, 2008. Absent timely filed objections, the application will be approved on a final basis, without further hearing. The Court will consider all objections, if any, at a hearing scheduled for April 17, 2008. The Office of the United States Trustee retains the right to object to any interim or final fee application filed by Jefferies on any grounds provided for under the Bankruptcy Code, the Bankruptcy Rules, or any Local Rules or orders of the Court. The Debtors and their estates will be bound by the indemnification, contribution and exculpations provisions of the engagement letter dated February 5, 2008, between Jefferies and the Creditors Committee. The Debtors will indemnify, defend and hold harmless Jefferies and its affiliates, and its members, provided that in no event will the firm be indemnified or receive contribution in the case of bad-faith, self-dealing, breach of fiduciary duty, if any, gross negligence or willful misconduct. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Kurtzman Carson Hiring as Committee Agent Okayed ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Quebecor World Inc. and its affiliates obtained the U.S. Bankruptcy Court for the Southern District of New York's authority to retain Kurtzman Carson Consultants, LLC, as its communications agent, nunc pro tunc to Feb. 21, 2008. As reported in the Troubled Company Reporter on March 28, 2008, according to Madeleine Fequeire, director of Abitibi- Consolidated Sales Corp. and co-chairperson of the Committee, the Committee seeks to employ Kurtman Carson in compliance to its obligation under Section 1102(b)(3) of the Bankruptcy Code. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Mesirow Hiring as Panel Financial Advisor Okayed ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized the Official Committee of Unsecured Creditors in Qubebecor World Inc.'s cases to retain Mesirow Financial Consulting, LLC, as its financial advisors, on an interim basis, effective Feb. 1, 2008. Objections to Mesirow's retention are due April 10, 2008. Absent timely filed objections, or if all objections are resolved, the application will be approved on a final basis, without further hearing. The Court will consider all unresolved objections at a hearing scheduled for April 17, 2008. On a final basis, the Court authorized Mesirow to receive compensation and reimbursement of expenses, which in will not be subject to challenge except under the standard of review set forth in Section 328(a) of the Bankruptcy Code. The Office of the United States Trustee retains the right to object to any interim or final fee application filed by Mesirow on any grounds provided for under the Bankruptcy Code, the Bankruptcy Rules, or any Local Rules or orders of the Court. The Debtors and their estates will not indemnify Mesirow or its members for any acts of bad-faith, self-dealing, breach of fiduciary duty, if any, gross negligence or willful misconduct. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08- 10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/-- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. ================== C O S T A R I C A ================== CINEMARK HOLDINGS: Elects Steven P. Rosenberg to Board ------------------------------------------------------ Cinemark Holdings, Inc. has elected Steven P. Rosenberg to the company's Board effective as of April 1, 2008, thereby increasing the size of the Board to ten members. Mr. Rosenberg has also been appointed to the Audit Committee, which appointment is effective April 15, 2008. Mr. Rosenberg is the President of SPR Ventures Inc., a private investment firm he founded in 1997, and President of SPR Packaging LLC, a manufacturer of flexible packaging. From 1992 until 1997, Mr. Rosenberg was the President of the Arrow division of ConAgra, Inc., a leading manufacturer of grocery products. Mr. Rosenberg was also a founding investor of Packaged Ice, a leading manufacturer of industrial and consumer ice in 1992. Mr. Rosenberg currently serves on the board of directors of Texas Capital Bancshares, Inc. and PRG Schultz International, Inc. "We are very pleased that Steven has joined our Board," said Cinemark’s Chief Executive Officer, Alan Stock. "We are certain that he will be a strong addition to the Board and the Audit Committee, and that his background and broad experience will be an asset to Cinemark." Cinemark Holdings, Inc. -- http://www.cinemark.com/-- a leader in the theatre exhibition industry, operates 395 theaters and 4,479 screens in 37 states in the United States and internationally in 13 countries, including Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Mexico, Nicaragua, Panama, Peru and Taiwan. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 14, 2007, Standard & Poor's Rating Services affirmed its 'B' corporate credit rating on Cinemark Holdings Inc. and subsidiary Cinemark Inc., which S&P analyzed on a consolidated basis. At the same time, S&P removed the ratings from CreditWatch with positive implications, where they were placed on May 17, 2007. S&P said the outlook is positive. US AIRWAYS: Court of Appeals Upholds Ruling on R. Bosiger's Suit ---------------------------------------------------------------- The United States Court of Appeals for the Fourth Circuit affirmed the ruling of the United States District Court for the Eastern District of Virginia, at Alexandria, dismissing Edwin Perrow Bosiger, Jr.'s complaint that he was not notified of the claims bar date in US Airways Group Inc.'s case. Mr. Bosiger previously asserted he was not able to file a timely claim asserting his pension benefits due to the non-notification. Judges James Harvie Wilkinson III, Diana Gribbon Motz and Kathy M. Flanagan comprised the panel reviewing the Appeal. Mr. Bosiger brought a suit in the District Court six months after USAir II's emergence from bankruptcy, contending that US Airways Inc. had improperly terminated his pension during USAir I's Bankruptcy. US Airways sought and obtained the Bankruptcy Court's authority to restructure its pilot pension obligations so that it can meet conditions in securing the financing it needed to emerge from Chapter 11. The retired pilots asked the District Court to restore their old pension benefits. But since the retired pilots had neglected to have the termination and reorganization orders stayed, and since the orders had been implemented and relied on by third parties, the District Court held that the suit was equitably moot. Mr. Bosiger was provided with the general bar date and certain administrative and rejection damage claims bar date notices, but did not file a claim during USAir II's Bankruptcy. Mr. Bosiger instead chose to bring a suit against US Airways in the United States District Court for the Eastern District of Virginia. The District Court dismissed the suit on the grounds that US Airways had properly terminated a Non-Qualified Plan Top Hat Retirement Plan, and that Mr. Bosiger failed to file a proof of claim in USAir II's Bankruptcy Cases. Judge Wilkinson, among others, says: -- the principal purpose of bankruptcy is straightforward: to grant a fresh start to the honest but unfortunate debtor; -- unwinding the finality of bankruptcy upsets not only the expectations of the creditors who actually do participate in the bankruptcy proceedings, but also the reliance interests of the creditors who have advanced funds based on the new capital structure laid out in the reorganization plan; and -- Mr. Bosiger's general denial of receiving bar dates notices does not constitute the strong evidence needed to overcome the presumption of receipt. "If we were to hold that [Mr.] Bosiger's general denial was sufficient, it would make it discernibly more difficult for any court to grant summary judgment in any case where proper notice is required. The result would be to prolong and undercut the bankruptcy process by civil actions on the part of creditors who failed to pursue their claims when it was timely and appropriate for them to do so. The District Court was right to recognize this danger, and its decision is affirmed. . . . Given the tentative nature of the claims put forward by Bosiger's counsel, we accord little weight to the argument that Bosiger's notice was mailed to the wrong address. At the very least, the speculative nature of the claims demonstrate that they do not offer sufficient evidence that Bosiger did not receive his notice letters," Judge Wilkinson says. A full-text copy of Judge Wilkinson III, et al.'s Opinion is available for free at: http://bankrupt.com/misc/USAirCourtofAppealsOpinion.pdf About US Airways Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. US Airways has operations in Japan, Australia, China, Costa Rica, Philippines, and Spain, among others. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News, Issue No. 157; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services revised its outlook on US Airways Group Inc. to stable from positive. S&P has affirmed all ratings, including the 'B-' long-term corporate credit rating. US AIRWAYS: To Settle MD Aviation Claim by Paying US$11,500,000 --------------------------------------------------------------- US Airways Group Inc. and The Maryland Aviation Administration filed with the U.S. Bankruptcy Court for the Eastern District of Virginia: Status Amount Claim No. Debtor Asserted Asserted --------- ------ -------- -------- 5063 US Airways, Inc. unsecured US$413,046 priority 23,343,868 ---------- total 23,756,914 5064 Piedmont Airlines, Inc. unsecured 98,462 priority 23,343,868 ---------- total 24,442,330 The Maryland Department of the Environment filed: Status Amount Claim No. Debtor Asserted Asserted --------- ------ -------- -------- 5066 US Airways, Inc. unsecured US$23,343,868 5083 Piedmont Airlines, Inc. unsecured 23,343,868 The Debtors have established a reserve under Claim No. 5083, to be used for distributions for any of the MAA environmental claims that are allowed. MDE transferred Claim Nos. 5066 and 5083 to MAA. To resolve their dispute, the parties agreed that: 1. Claim Nos. 5064, 5066 and 5083 are disallowed in their entirety; 2. Claim No. 5063 is reclassified, reduced and allowed as a Class USAI-9 or General Unsecured Claim under the Debtors' Joint Plan of Reorganization in the compromised amount of $11,500,000, in full satisfaction of MAA's environmental claims against the Debtors; 3. The Stipulation is without prejudice to any claims or causes of action that MAA or its assignor, MDE, may have against any third parties; and 4. The Stipulation resolves all remaining claims of MDE and MAA against the Debtors. The Stipulation is deemed effective without further Court order. About US Airways Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. US Airways has operations in Japan, Australia, China, Costa Rica, Philippines, and Spain, among others. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News, Issue No. 157; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services revised its outlook on US Airways Group Inc. to stable from positive. S&P has affirmed all ratings, including the 'B-' long-term corporate credit rating. US AIRWAYS: R. Thomas Demands Retirement Benefits Continued ----------------------------------------------------------- Roger N. Thomas asks the U.S. Bankruptcy Court for the Eastern District of Virginia to: -- deny US Airways Group Inc.' request to disallow his claim; -- grant his previously vested retirement benefits; and -- direct all the Debtors and their affiliates to continuously pay him the benefits. Mr. Thomas asserts that he was a known creditor of Piedmont Airlines, Inc. He wrote Piedmont's in-house retirement administrator on Aug. 12, 2002, to ask for documents so he may begin estimating his options in the pension plan, and convey his expectations for travel and social security supplement benefits. He says US Airways, Inc.'s Benefits Coordinator Dianne Green answered his letter on August 20, and acknowledged his pension fund claim but disagreed he had rights to any other benefit. He further says that he, to his knowledge and belief, is the first and only person to have been awarded cash settlement and retirement benefits in any grievance procedure with Henson Aviation, Inc., or Piedmont. Piedmont assured that the retirement benefits would not be affected in any way by the Debtors' first bankruptcy cases, Mr. Thomas relates. Ms. Green reassured him this; that is why, according to Mr. Thomas, he felt he did not need to initiate a filing as a creditor. Mr. Thomas asserts that the USAir I Bankruptcy Cases and its bar date should not reduce his vested retirement interest. He contends that the retired Piedmont pilots have received their full retirement package including travel, retirement plan and insurance -- without break and without reduction -- since he left the company, until now. According to him, the retirement plan contractually includes both the pension benefit and the social security supplement benefit. In his case, Mr. Thomas says the Debtors define "Retirement Plan" as a monthly pension only, further eroding his retirement interest. The Debtors are using their own tardiness as a means to reduce his pension, Mr. Thomas says. He also adds that the grievance settlement states that his release of Piedmont from claims arising from his employment or cessation of employment from the company is "made without out prejudice to and does not serve to bar any claims arising from his previously vested retirement interest." Mr. Thomas asserts he is 100% vested and, thus, is entitled to all retirement benefits listed in the pilot contract. R. Thomas' Request Mr. Thomas asks the Court to direct the Debtors to grant all his vested retirement benefits including all the contractual obligations for retirement contained in the General, Retirement, and Insurance headings of the agreement between Henson Aviation, Inc., and its pilots as represented by the Airline Pilots Association, signed Nov. 30, 1989, and side letters. Mr. Thomas also asks the Court to direct the Debtors to use, in defining and calculating retirement benefits for his pension, certain contract and side letters in effect when his employment was involuntarily terminated on April 5, 1995, and Grievance Settlement signed on March 21, 1996, between him and Piedmont. According to him, these includes a normal retirement age of 60 and a calculation of his final average earnings as stated in the agreement between Piedmont Airlines, Inc., and its pilots as represented by the ALPA, signed May 16, 1994, with its Retirement Plan for Pilots and side letters, then current. Mr. Thomas asserts that according to the Settlement, he is entitled to his "previously vested retirement interest." This is the retirement interest he says is the one he claims. He further asserts that his claim does not "significantly exceed," as the Debtors argue, that to which he is entitled. His claim is entirely supported in writing in contracts that apply to him, he says. According to Mr. Thomas, the Debtors have added the words "accrued" and "in the Retirement Plan" which narrows the meaning of the Settlement to only the pension portion of the retirement benefits. He contends the Debtors have mixed disputed with undisputed items in their response and cross-motion for summary judgment against his claim. The Debtors base their statements on the wrong contract, specifically the 2001 Piedmont contract including an amendment signed only in December 2007, he says. Neither the contract nor tis amendment applies to him, he adds. The contracts that have bearing on the matter, according to Mr. Thomas, are: 1. the Agreement between Henson Aviation, Inc., and its pilots as represented by the Air Line Pilots Association, signed November 30, 1989, and side letters; and 2. the Agreement between Piedmont Airlines, Inc., and its pilots as represented by the Air Line Pilots Association, signed May 16, 1994, with its Retirement Plan for Pilots and side letters. Mr. Thomas asserts that the Grievance Settlement acknowledges his involuntary termination before the age of 60 and by affirming his right to his "vested retirement interest," the Settlement implicitly treats him as a person who worked until the age of 60. He further asserts this is the point of the Settlement and it entirely does not indicate otherwise. The Contracts do not require him to "formally request" his pension to begin, Mr. Thomas contends. Instead, the Contracts make it clear that the responsibility lies with the Debtors to begin payments on the normal retirement date, he says. Mr. Thomas further notes that the United States Postal Service has acknowledged that he did not know of the existence of a package of payment option materials. According to him, the Debtors say they are not delinquent because the package was returned to them by the USPS. Debtors Answer Back The Debtors argue that the only benefits and claims that Mr. Thomas would be entitled to receive were those under the Retirement Plan, not from the Reorganized Debtors. The Debtors add that they were "under no obligation to treat every discharged or furloughed employee as a potential creditor on the off chance that the employee might assert the claim." Douglas M. Foley, Esq., at McGuirewoods LLP, in Norfolk, Virginia, contends that notice by publication was constitutionally sufficient as to Mr. Thomas because he was not a "known" creditor. Mr. Foley asserts that whether Mr. Thomas was entitled to receive actual notice of the November 4, 2002 bar date for filing non-governmental claims in the Debtors' first Chapter 11 Cases or the notice of the commencement of the Debtors' first Chapter 11 Cases is only relevant if he held any "claims" against the Debtors. However, Mr. Thomas "forever and finally released, settled, waived, discharged, acquitted and reached full accord and satisfaction of all claims, demands, causes of action, and actions arising or existing up to the date of execution of the Settlement Agreement, except any claims arising from his previously vested retirement interest." Accordingly, Mr. Foley adds, Mr. Thomas is not entitled to any other and further relief except those that were previously vested in the Retirement Plan -- nothing more and nothing less. The Debtors, thus, ask the Court to enter an order disallowing Mr. Thomas' claim. About US Airways Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. US Airways has operations in Japan, Australia, China, Costa Rica, Philippines, and Spain, among others. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News, Issue No. 157; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter on March 26, 2008, Standard & Poor's Ratings Services revised its outlook on US Airways Group Inc. to stable from positive. S&P has affirmed all ratings, including the 'B-' long-term corporate credit rating. =================================== D O M I N I C A N R E P U B L I C =================================== CAP CANA: Land Court Judges Issue Arrest Warrant for R. Hazoury --------------------------------------------------------------- Judges Rafael Ciprian, Marino Alvarez and Luz Ubinas at the Superior Land Court of the Dominican Republic have issued an arrest warrant against Cap Cana President Ricardo Hazoury for contempt of court, Diario Digital reports. According to Diario Digital, Mr. Hazoury didn't attend a court hearing last Monday on alleged real estate fraud charges filed by the proprietor of several improvements. The case involves the "unauthorized mortgage of a property" of US$40 million. The judges placed an "impediment exit" against Mr. Hazoury, Diario Digital states. Cap Cana is located on the easternmost tip of the Dominican Republic, and is a few minutes drive from Punta Cana International Airport, which receives nonstop flights from large metropolitan centers in Europe, Canada and the USA. When fully developed, Cap Cana is expected to have six championship golf courses (three of which will be Nicklaus Signature courses, one of which was recently completed); one of the largest inland marinas in the Caribbean; several luxury hotels; over 10,000 housing units, including estate homes, villas and condominiums; numerous sports facilities, including golf, beach and yacht clubs; and a variety of high-end shops, restaurants, spas and entertainment complexes. Plans also include the development of a large ecological preserve. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings affirmed the 'B' rating on Cap Cana, S.A.'s US$250 million senior secured notes. In addition, Fitch assigned a preliminary rating of 'B-' to the expected issuance of US$500 million in additional senior secured notes. DELTA AIR: Launches Food-for-Purchase Program in Caribbean ---------------------------------------------------------- Delta Air Lines Inc. has launched its food-for-purchase program in select flights between the U.S. and beach destinations in the Caribbean and Latin America, Dominican Today reports. Dominican Today relates that Delta Air started the food-for- purchase menu in September 2007 "on coast-to-coast mainline flights between New York John F. Kennedy International Airport and Los Angeles, San Diego, San Francisco and Seattle." Delta Air Lines told Dominican Today it will have its food-for- purchase program on all flights within the U.S. of 750 miles or more. As part of its plan to try reaping more revenue from added services, Delta Air will offer more "designer US$7 and US$8 meals," Dominican Today notes. Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 18, 2008, Standard and Poor's said that media reports that Delta Air Lines Inc. (B/Positive/--) entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will have no effect on the ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications. ==================== E L S A L V A D O R ==================== AES CORP: Unit Gets Regulator Nod to Acquire Bioenergia Assets -------------------------------------------------------------- AES Corp.'s El Salvador unit AES Nejapa Gas has secured antitrust regulator Superintendencia de Competencia approval to acquire assets and rights from Bioenergia for a waste-to-energy project, Business News Americas reports. According to the regulator, AES Nejapa's project to deploy a biogas capture and burn system at the Nejapa landfill to generate power won't significantly limit competition. AES has been in Eastern Europe for over ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. The company has Latin America operations in Argentina, Brazil, Chile, Dominican Republic, El Salvador and Panama. * * * The AES Corporation still carries Moody's Investors Service's Corporate Family Rating and the senior unsecured rating assigned at B1. The company also carries Fitch Ratings' 'BB/RR1' rating on US$500 million issue of senior unsecured notes due 2017. As reported in the Troubled Company Reporter-Latin America on March 7, 2008, AES Corporation is in default under its senior secured credit facility and its senior unsecured credit facility due to a breach of representation related to its financial statements as set forth in the credit agreements. As a result, US$200 million of the debt under the company's senior secured credit facility will be classified as current on the balance sheet as of Dec. 31, 2007. There are no outstanding borrowings under the senior unsecured facility. ================= G U A T E M A L A ================= BRITISH AIRWAYS: Facing GBP20Mln Costs Over Flight Cancellations ---------------------------------------------------------------- British Airways plc could face costs of more than GBP20 million over flight cancellations during the opening weekend of Heathrow's GBP4.3 billion Terminal 5, the Daily Telegraph reports, citing analysts. Howard Wheeldon of BGC Partners told the Daily Telegraph "BA's got the cost of the cancellations, compensation, as well as hotels for stranded passengers," who according to a lawyer, may take legal action against BA, particularly Americans. BA, the Daily Telegraph relates, canceled more than 200 flights since Thursday's opening after the new terminal's baggage system failed, affecting more than 20,000 passengers. FT says the situation compelled BA to transfer large numbers of bags to a contractor in Milan, Italy, for re-sorting and onward shipment by road or air. British Airways Statement "Since Thursday, when Terminal 5 opened, we have made clear that the service we have provided has not been good enough. We apologize sincerely to our customers. "The baggage system is now generally working better. From time to time problems have developed that were not encountered during the extensive trials. These issues are being addressed as they arise by a team of engineers and IT specialists from BAA and BA. "A backlog of undelivered bags has built up. This backlog is not affecting the day-to-day operation of the baggage system, and we are making every effort to reunite delayed bags with their owners. "We have more than 400 volunteers from across the airline supporting this effort. "This work takes time as delayed bags must undergo enhanced levels of security screening. Much of this process has to be done manually because we have been unable to use the Terminal 5 baggage system to process these bags automatically. "We are sorry for the disruption and inconvenience caused to customers whose flights have been canceled or whose bags have been delayed. We will not rest until our service has been restored to the high standard customers rightly expect. "We continue to work towards increasing the number of services in the days ahead. "Both British Airways and BAA have invested an enormous amount of time and effort to create Terminal 5. We remain confident that these early difficulties can be overcome, and that the terminal will be highly valued by customers and our staff in the near future and for many years to come." Today, April 2, 2008, the airline plans to operate 342 out of 392 flights to and from Terminal 5. About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * As of Jan. 2, 2008, British Airways Plc carries a senior unsecured debt rating of Ba1 from Moody's Investors' Service with a stable outlook. ========= H A I T I ========= DYNCORP INT'L: Realigns Business, Adds Third Reporting Segment -------------------------------------------------------------- DynCorp International has realigned its organization by establishing a third business segment. The company had been operating with two business segments, Government Services and Maintenance and Technical Support Services. Under the new alignment, the company will have three reporting segments, International Security Services, Logistics and Construction Management and Maintenance and Technical Support Services. Robert B. Rosenkranz, who had led the Government Services segment, will be president of International Security Services, which will include the company’s operations in police training, translation services, security, specialty aviation, counter-drug operations, and firefighting. Rory Fisher has been named president of Logistics and Construction Management. Previously Mr. Fisher was vice president and general manager of the company’s Operation, Maintenance, and Construction Management unit. Logistics and Construction Management will be responsible for all the company’s logistics, contingency, and construction operations, including any work awarded under the LOGCAP IV contract. The Maintenance and Technical Support Services business segment is unchanged, except for the addition of the company’s DynMarine business group, formerly part of Government Services. 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. =============== H O N D U R A S =============== CHIQUITA BRANDS: Recalling Cantaloupes from Honduras ---------------------------------------------------- Chiquita Brands International told Thomson Financial that it is recalling cantaloupes from Honduran grower Agropecuaria Montelibano for possible contamination of Salmonella. The product was distributed to clients throughout the U.S. and Canada in cardboard cartons with the brands Mike's Melons, Mayan Pride, and Chiquita, Thomson Financial states, citing Chiquita Brands. Headquartered in Cincinnati, Ohio, Chiquita Brands International Inc. (NYSE:CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 80 countries. It sells packaged salads under the Fresh Express brand name primarily in the United States. The company also distributes and markets fresh-cut fruit and other branded, value-added fruit products. Chiquita operates its business through three segments: the banana segment includes the sourcing, transportation, marketing and distribution of bananas; the fresh select segment includes the sourcing, marketing and distribution of whole fresh fruits and vegetables other than bananas, and the fresh cut segment includes value-added salads, foodservice and fresh-cut fruit operations. Remaining operations, reported in other, primarily consist of processed fruit ingredient products, which are produced in Latin America and sold in other parts of the world, and other consumer packaged goods. Chiquita, with revenues of approximately $4.7 billion for the fiscal year ended Dec. 31, 2007, employs approximately 25,000 people operating in more than 70 countries worldwide, including Belgium, Columbia, Germany, Panama, Philippines, among others. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 28, 2008, Standard & Poor's Ratings Services assigned its 'CCC' senior unsecured rating to Chiquita Brands International Inc.'s US$200 million convertible senior notes due 2016. Net proceeds from the issuance were used to repay a portion of the US$375 million term loan C (US$132 million outstanding at Dec. 31, 2007, pro forma for this notes offering) of its senior secured credit facility. ============= J A M A I C A ============= AIR JAMAICA: Will Suspend Three Weekly Flights to St. Lucia ----------------------------------------------------------- Air Jamaica will suspend its three weekly flights to St. Lucia as part of its restructuring efforts, Radio Jamaica reports. Radio Jamaica relates that Air Jamaica admitted in March it was forced to make the decision due to streamlining and route rationalization. St. Lucia's Tourism Minister Allen Chastanet told Radio Jamaica that St. Lucians are prepared to welcome Air Jamaica back anytime. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Moody's Investors Service assigned a rating of B1 to Air Jamaica Limited's guaranteed senior unsecured notes. On July 21, 2006, Standard & Poor's Rating Services assigned a "B" long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, based on the government's unconditional guarantee of both principal and interest payments. CABLE & WIRELESS: Jamaican Unit Raises Line Rental Fee ------------------------------------------------------ Cable and Wireless Plc's Jamaican unit said it will increase line rental fee due to inflationary pressures and increasing operational costs, Radio Jamaica reports. Radio Jamaica relates that residential clients will begin paying J$700 per month, compared to the current J$500 per month. According to Radio Jamaica, business line rental -- PBX trunk lines, national and international toll free lines, and direct inward dialing lines -- will increase to J$1,600 from J$1,250 per month. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- operates through two standalone business units -- International and Europe, Asia & US. The International business unit operates integrated telecommunications companies in 33 countries offering mobile, broadband, domestic and international fixed line services to residential and business customers, with principal operations in the Caribbean, Panama, Macau, Monaco and the Channel Islands. The Europe, Asia & U.S. business unit provides enterprise and carrier solutions to the largest users of telecoms services across the U.K., U.S., continental Europe and Asia -- and wholesale broadband services in the U.K. * * * As of Feb. 12, 2008, Cable & Wireless Plc carried a Ba3 long- term corporate family rating, a B1 senior unsecured debt rating and a Ba3 probability of default rating from Moody's Investors Service, which said the outlook is stable. The company also carries a BB- long-term local and foreign issuer credit ratings from Standard & Poor's Ratings Services, which said the outlook is stable. S&P rates its short-term local and foreign issuer credit at B. CASH PLUS: Debt Exceeds Income; Goes Into Receivership ------------------------------------------------------ Cash Plus Limited is in receivership, Barbara Gayle and Gareth Manning at The Jamaica Gleaner reports. According to The Gleaner, a firm goes into receivership when its debt exceeds its income. The report says that Cash Plus admitted that it wouldn't be able to pay its lenders until April 14. The firm has 40,000 lenders with loans totaling J$4 billion. As reported in the Troubled Company Reporter-Latin America on April 1, 2008, Cash Plus was unable to repay its investors on March 31. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. The Gleaner relates that one of Cash Plus' managers secured approval from Senior Puisne Judge Marva McIntosh at the Jamaican Supreme Court for the appointment of a temporary manager. Justice McIntosh granted the approval after hearing an application from attorneys-at-law Gordon Robinson and Minette Palmer. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus, The Gleaner notes. According to Pricewaterhouse Coopers, Mr. Bandoian will start work immediately from the offices of Cash Plus and its affiliates under the supervision of the court. He will advise creditors of the progress of the process. The Gleaner notes that the appointment of the receiver-manager allows for supervision of the operations of Cash Plus and the determination of assets belonging to the firm so that a report may be made to the court on the assets available for distribution to creditors. The court has prohibited Cash Plus and its affiliates from selling, transferring, and dealing with or dissipating the assets of the company, The Gleaner states. Cash Plus Ltd is an investment club in Jamaica . It collapsed in 2007 after the Financial Services Commission moved to regulate its operations. The company is a financial arm of the Cash Plus Group of Companies, a business conglomerate established in 2002 by mortgage banker Carlos Hill. The company offers its participants the opportunity to participate in the group's ventures which include mergers and numerous acquisitions. =========== M E X I C O =========== CONSTELLATION COPPER: Defaults in CN$69 Million Debentures ---------------------------------------------------------- Constellation Copper Corporation said that approximately CN$1.9 million of interest due on March 31, 2008, on its CN$69 million convertible unsecured senior debentures has not been paid, resulting in a default under the terms of the convertible debentures. If the interest is not paid within 30 days, by April 30, 2008, the default will become an event of default as defined in the indenture, after which the terms of the convertible debentures provide the debenture holders with certain rights and remedies during the continuance of a default, including the right to accelerate all of the debt due under the convertible debentures. The company continues to pursue various near term financing alternatives, including bank financing, equity investment, mergers, and sale of certain assets or sale of the entire company. The company may consider filing for legal protection from its creditors in both Canada and the United States if cash liquidity problems can not be resolved. Going Concern As reported in the Troubled Company Reporter on Jan. 15, 2008, the company related that there is significant doubt about the its ability to continue as a going concern. The cash balance of US$10.87 million at Sept. 30, has been reduced further to approximately US$3.20 million at Dec. 31, 2007, and in order to provide liquidity, the company is pursuing various near term financing alternatives, including bank financing, equity investment, mergers, and sale of certain assets or sale of the entire company. In late November 2007, as a result of a comprehensive management evaluation of Lisbon Valley operations, the company disclosed its decision to cease mining and crushing activities and convert the Lisbon Valley mine to a leach only operation in early 2008. The evaluation included analyses of various mining plans, waste stripping requirements, contract mining arrangements, available mining equipment, projected copper prices and extensive operating cost and cash flow projections. In connection with the evaluation and conversion to a leach only operation, the company recorded an asset impairment of US$92,918,000. At Sept. 30, 2007, the company's balance sheet showed total assets of US$72.68 million and total liabilities of US$90.40 million, resulting to a total shareholders' deficit of US$17.72 million. About Constellation Copper Headquartered in Lakewood, Colorado, Constellation Copper Corporation (CCU: TSX) -- http://www.constellationcopper.com/-- evaluates and develops mineral properties in the United States and Mexico. The company holds its properties primarily through three of its wholly owned subsidiaries, Lisbon Valley Mining Co. LLC, Minera Terrazas S.A. de C.V. and San Javier del Cobre S.A. de C.V. LVMC operates the Lisbon Valley copper mine, which comprises three main deposits: Sentinel, Centennial and GTO, plus the Cashin satellite deposit, with reserves and resources totalling +50 million tons and grading an average 0.48% copper. Minera Terrazas holds the company's interest in the Terrazas zinc-copper project located in north- central Mexico. The property has a total resource of 90 million tonnes grading 1.37% zinc and 0.32% copper in two adjacent deposits. San Javier del Cobre S.A. de C.V. holds the company's interest in the San Javier copper property located in northwestern Mexico. COREL CORP: Gets Proposal from Shareholder Corel Holdings --------------------------------------------------------- Corel Corporation received an unsolicited proposal from Corel Holdings L.P., which is controlled by an affiliate of Vector Capital Corporation, the holder of 69% of Corel's outstanding common shares. CHLP is proposing to make an offer to acquire all of Corel's outstanding common shares not currently held by CHLP at a price of US$11.00 cash per share. CHLP has indicated that any such offer would be conditional upon, among other things, satisfactory confirmatory due diligence and Corel's existing credit facility remaining in place after the consummation of any transaction. The board of directors of Corel has formed a special committee of independent members of the board consisting of Ian Giffen, Steven Cohen and Daniel Ciporin to assist it in evaluating and responding to the CHLP proposal and other related strategic considerations. Corel will not be providing further comment at this time but will provide updates as further information becomes available. There can be no assurance that any transaction will be completed or, if completed, of its terms, price or timing. About Corel Corporation 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. DURA AUTOMOTIVE: Further Amends First Revised Chapter 11 Plan ------------------------------------------------------------- DURA Automotive Systems, Inc., and its debtor affiliates delivered to the U.S. Bankruptcy Court for the District of Delaware on March 31, 2008, a second amendment of their Revised Joint Plan of Reorganization and a disclosure statement explaining the Plan. The Revised Plan contemplates providing the $228,100,000 second lien facility claims with convertible preferred stock and distributing 100% of the new common stock to general unsecured creditors. The Original Plan had contemplated providing cash in satisfaction of the Second Lien Facility Claims. In addition, instead of a backstopped US$160,000,000 rights offering, the contemplated Second Amended Revised Plan transactions are to be funded by US$80,000,000 in cash proceeds from New Money Investors that will take the form of a second lien term loan with a US$100,000,000 face amount. The New Money Investors will comprise certain existing Second Lien Lenders, Senior Noteholders and other investors. The Revised Plan contemplates that a new entity, New Dura Opco, will acquire the assets of Dura Operating Corporation in a taxable transaction through these steps: (a) On or before the Effective Date, certain Dura creditors, or a nominee on behalf of them, will form New Dura, with nominal capitalization; (b) New Dura will then form New Dura Holdings; (c) New Dura Holdings will then form New Dura Opco; (d) New Dura will make a capital contribution of Convertible Preferred Stock and Common Stock to New Dura Holdings, which shares will then be contributed to New Dura Opco; (e) On the Effective Date, Dura Operating Corporation will transfer certain assets and the stock of its subsidiaries to New Dura Opco in exchange for the Convertible Preferred Stock and the New Common Stock; (f) On the Effective Date, one or more of the U.S. Debtors will distribute the New Common Stock and the Convertible Preferred Stock to its creditors; and (g) Dura Operating Corporation will remain in existence and will retain certain assets, which will be leased to New Dura Opco. A full-text copy of the blacklined version of the Revised Plan is available for free at: http://bankrupt.com/misc/dura_blacklinemarch31plan.pdf A full-text copy of the blacklined version of the Disclosure Statement is available for free at: http://bankrupt.com/misc/dura_blacklinemarch31ds.pdf Issuance of New Securities On the Effective Date, New Dura will issue or reserve for issuance all securities required to be issued pursuant to the Revised Plan. New Dura will make a capital contribution of Convertible Preferred Stock and Common Stock to New Dura Holdings, which shares will then be contributed to New Dura Opco. After being exchanged for substantially all of the assets of Dura Operating Corporation, the New Common Stock and Convertible Preferred Stock will be held through The Depository Trust Company and not distributed in the form or certificated stock to the extent possible. Settlements Embodied in the Revised Plan Lawrence A. Denton, chairman, president, and chief executive officer of DURA, relates that the Second Amended Revised Plan contains a number of new settlement terms and conditions that either replace, modify or complement, the settlements embodied in the Plan of Reorganization filed Aug. 22, 2007. The settlements are: 1. Certain existing Second Lien Lenders, Senior Noteholders and other investors, including, but not limited to, any holders of Subordinated Notes or Convertible Preferred Securities willing to invest, will contribute new capital of US$80,000,000, in exchange for secured debt, which will have a second lien secured position with a face amount of up to US$100,000,000. 2. The Revised Plan contemplates converting the Second Lien Facility Claims, which totals about US$228,100,000, into Convertible Preferred Stock with these terms: * Liquidation preference as of the Effective Date equal to Second Lien Allowed Claim amount; * 20% paid-in-kind dividend; * Beginning on the third anniversary of the Effective Date, holders of the Convertible Preferred Stock shares into their pro rata share of 92.5% of the New Common Stock, and thereafter, into New Common Stock based on a percentage reflecting any accrued PIK Dividends through the conversion date since the third anniversary, if the Convertible Preferred Stock were to be converted at its full amount including any accrued PIK Dividends and with no prior redemptions. The percentage will be proportionately reduced to reflect the actual amounts of the unredeemed Convertible Preferred Stock outstanding, including any accrued PIK Dividends as of the conversion date; * Beginning on the fourth anniversary of the Effective Date, the holders of New Common Stock may call the conversion of all outstanding Convertible Preferred Stock; provided that either (i) the Convertible Preferred Stock must be trading at a level equal to or exceeding 115% of the liquidation preference of the Convertible Preferred Stock on the date on which the conversion is called, or (ii) the number of shares of New Common Stock into which the Convertible Preferred Stock is then convertible, in the aggregate, is trading at a similar valuation; * Beginning on the 10th anniversary of the Effective Date, to the extent that the Convertible Preferred Stock remains outstanding, holders representing more than a majority of the Convertible Preferred Stock will have the right to appoint a majority of the New Board's directors; * At any time before the third anniversary of the Effective Date, New DURA may ratably redeem up to 100% of the Convertible Preferred Stock plus accrued PIK Dividends then outstanding; provided that on the date of any redemption, holders may elect to convert a proportion of their Convertible Preferred Stock shares into New Common Stock shares; * The Special Transactions Committee may effectuate a redemption of Convertible Preferred Stock at any time, provided that the post-transaction cost of funds meets certain customary parameters for refinancing indebtedness typically found in an indenture; provided that a majority of the entire Board of Directors must approve any redemption using funds from debt senior to the Convertible Preferred Stock if the size of the proposed redemption is less than US$112,500,000. 3. The Revised Plan contemplates paying in full and in cash all DIP Facility Claims. The Plan also contemplates converting Senior Note Claims into approximately 95% of the New Common Stock and the other U.S. General Unsecured Claims into approximately 5% of the New Common Stock. The Plan intends to pay in cash on a pro rata basis all Canadian General Unsecured Claims. The Plan also intends to discharge all other Claims, including Claims arising from the Subordinated Notes and the Convertible Subordinated Debentures, without recovery, and canceling all Equity Interests in the Debtors. 4. The Second Lien Group, the Creditors Committee, and the Commitment Parties will choose six independent board members. The chief executive officer of New DURA will be a member of the New DURA Board. 5. The Plan contemplates a special subcommittee of the New DURA Board that is responsible, if ever, to redeem the Convertible Preferred Stock. Canadian Unsecured Claims Recovery The Second Amended Revised Plan includes a liquidation analysis as of May 13, 2008, prepared by RSM Richter, Inc., the information officer appointed in the proceedings commenced by the Debtors' affiliates under the Canadian Companies' Creditors Arrangement Act pending before the Ontario Superior Court of Justice: Dura Automotive Systems (Canada), Ltd. Projected Liquidation Analysis As of May 13, 2008 (Unaudited) (In Thousands) Estimated Recovery ------------------ Book Value Low High ---------- ------- ------- Property, plant and equipment US$15,842 US$7,349 US$9,153 Intercompany receivables 16,509 - 531 Trade accounts receivables 873 - 87 Other assets 7,759 3,082 6,597 Equity value, non-debtors - - - ---------- ------- ------- Total assets 40,983 10,431 16,368 ---------- ------- ------- Less: Professional fees 500 1,000 Net assets for creditor distribution 9,931 15,368 ======= ======= A full-text copy of the Canadian Liquidation Analysis is available for free at: http://bankrupt.com/misc/dura_canadianliquidationanalysis.pdf The Canadian Liquidation Analysis concludes that creditors of the Dura Automotive Systems (Canada), Ltd., would receive a median recovery of approximately 12.5% in a liquidation. The estimated recovery rate pursuant to the Canadian Liquidation Analysis is equivalent to the projected cash distribution to the Canadian General Unsecured Claim holders under the Revised Plan. The Canadian Information Officer relates that creditors' claims against DAS Canada total US$102,399,000: Prepetition trade creditors US$2,490,000 Employee pension claims 7,164,000 Severance obligation claims 1,238,000 Intercompany debt owing to Dura Canada LP 91,507,000 ------------ Total unsecured liabilities US$102,399,000 ============ The Revised Plan contemplates that New Dura will assume and satisfy all amounts owing in respect of severance, the majority of which is payable to former employees of the Bracebridge facility. The New Dura will also assume and fully satisfy DAS Canada's pension obligation, which relates to the estimated wind-up deficiency in DAS Canada's pension plans. The Financial Services Commission of Ontario has filed a claim for US$7,164,000, against the U.S. Debtors in respect of a wind-up deficiency. The Canadian Liquidation Analysis projects that DAS Canada's remaining assets by May 2008 will comprise an asset pool as was available at November 30, 2007, primarily consisting of the land and buildings of the Stratford and Bracebridge Facilities, the mortgage receivable associated with the sale of the Brantford Facility, which is CN$800,000, and the Transferred Assets. In addition, DAS Canada has tax refunds due to it, with a book value of about US$7,300,000. New Schedule Counsel to DURA, Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, related, in a status report filing with the Court, that the Debtors' DIP Financing arrangements include a series of plan confirmation milestones: April 15, 2008 -- DURA will procure a commitment from a person or a group of persons to provide equity exit financing to the company and the Guarantors, whether in the form of a rights offering, new equity, or otherwise, on the effectiveness of the Revised Joint Plan of Reorganization, in an amount and on terms and conditions acceptable to the DIP Administrative Agent and Lenders. May 8, 2008 -- DURA will procure a commitment from a person or a group of persons to provide debt exit financing to the company and the Guarantors on the effectiveness of the Revised Plan, in an amount and on terms and conditions acceptable to the Administrative Agent and Lenders. May 15, 2008 -- The Court must have approved the Disclosure Statement explaining the Revised Plan. June 9, 2008 -- The Court must have confirmed the Revised Plan. June 20, 2008 -- The Effective Date of the Revised Plan will have occurred and transactions contemplated as part of the Revised Plan will have closed. Creditors Committee Supports Plan In a filing with the Court, the Official Committee of Unsecured Creditors believes that the Debtors' Revised Plan, as amended, provides the best recovery for unsecured creditors and presents the Debtors with the greatest opportunity to achieve a successful reorganization. The Creditors Committee says the Disclosure Statement explaining the Revised Plan contains adequate information that would enable claim holders in the Chapter 11 cases to make an informed judgment about the Revised Plan, including information regarding the Debtors' estimated enterprise value, financial projections and liquidation analysis. Accordingly, the Creditors Committee recommends approval of the Disclosure Statement. Counsel for the Creditors Committee, Erin Edwards, Esq., at Young Conaway Stargatt and Taylor LLP, in Wilmington, Delaware, notes that, to avoid having to raise the amount of exit financing, the Revised Plan contemplates providing the second lien facility claims with convertible preferred stock and distributing 100% of the new common stock to general unsecured creditors. The range of value for the New Common Stock to be distributed to general unsecured creditors is estimated to be between approximately US$29,000,000, and US$139,000,000, with a mid-point of about US$84,000,000. The Creditors Committee tells the Court that while its financial advisor, Chanin Capital Partners, believes that one could argue that the value of the New Common Stock is greater than the value assigned to it by the Debtors in the Disclosure Statement, Chanin is confident that the value of the New Common Stock does not approach the level necessary to provide a distribution to holders of the Subordinated Notes Claims. J.W. Korth Objects to Disclosure Statement James W. Korth, managing partner of J.W. Korth & Company, on behalf of an ad hoc committee of holders of more than $100,000,000, of 8-5/8% Senior Bonds and 9% Subordinated Bonds issued by DURA Automotive Systems, Inc., argues that the Disclosure Statement explaining the Debtors' Revised Joint Plan of Reorganization does not give claim holders the ability to make informed decisions about the Reorganization Plan and decision on whether the liquidation value of the Debtors is higher than the amounts to be received by the Plan. Mr. Korth points out that: (1) The Debtors' management is believed to have a conflict of interest. Majority of the two highest classes of debt under the DIP Financing is held by two hedge funds, Pacificor LLC and The Blackstone Group, who incidentally may also be insiders in control of the Ad Hoc Committee of Second Lien Holders and the Official Committee of Unsecured Creditors. Under the Revised Plan, Pacificor and Blackstone will receive 100% of the equity in the New DURA, which will wipe out all other debt holders and leave a possible enormous profit in the hands of the management and the Debtors' investors. (2) The valuation and liquidation analysis does not present values of the 94 separate debtor entities as going concerns with associated goodwill, patents and trademarks. (3) DURA's management and their advisors did not account for $900,159,000, stated book value of the non-debtor subsidiaries in the Liquidation Analysis. (4) There is a stark difference in net worth values between the Debtors' monthly operating reports and the balance sheet provided in the Liquidation Analysis. (5) The Debtors' management and its advisors did not evaluate more than 60 patents and trademarks that are owned by the Debtors. (6) In November 2006, DURA's management and advisors wrote off more than US$637,000,000, in good will, and the write-off was not explained in the Disclosure Statement or filings at the Securities and Exchange Commission at the time the write-off was executed. (7) The Debtors are not cooperating on the information request to inspect their books and records and is not providing the information the claims holders deserve. Moreover, Mr. Korth asserts that claims holders do not have sufficient information to evaluate the Plan because Pacificor and Blackstone are reported in control of the planned Reorganization and the trustees for the bondholders are receiving guaranteed payments from the Debtors. He adds that there is no disclosure as to why the trustee for senior subordinated notes ceased activities in support of the claim holders, and what the guaranteed payments are for. Mr. Korth further notes that the Disclosure Statement does not provide the details of who owns the majority of the second lien notes and the 8-5/8% senior notes and how the holders are organized. Hence, claim holders would not have sufficient information to decide whether possible insiders have influenced the development of the Plan. He says that there appears to be about US$1,100,000,000, in value, that was on the balance sheet on the Petition Date, and is not in the predecessor books shown in the Disclosure Statement. Accordingly, Mr. Korth asks the Court to deny the Disclosure Statement until the matters are addressed. He also asks the Court to allow him to complete a new Liquidation Analysis with the assistance of a qualified independent third party that evaluates the sales price of each of the 94 separately operating subsidiaries, with their goodwill patents and trademarks. To assist him in the preparation of a new Liquidation Analysis, Mr. Korth further seeks the Court's permission to examine the Debtors' books and records, including: * the monthly income statements and balance sheets of each subsidiary of DURA for the past two years until the end of February 2008; * the analysis of the goodwill of each subsidiary whereby the Debtor last certified that goodwill and then wrote off that goodwill in November 2006; * a specific written statement line by line from the Debtor on how the planned Fresh Start balance sheet will differ from the balance sheet included in the Monthly Operating Reports and justification for the differences; * the contracts and any amendments with the Debtors and Alix Partners and Miller Buckfire and Kirkland & Ellis LLP; * copies of the presentation to potential lenders for the failed Exit Financing in December 2007; * the original underwriting files for the bonds including all notes regarding the creation of each issue's indenture and the original proposals by the underwriters for those issues along with the underwriting agreements; * detailed analysis behind the income projections for the next three years as stated in the Disclosure Statement; and * invoices and notes from the trustees for the senior or subordinated bonds. Debtors Ask Court to Overrule Korth Objection The Debtors ask the Court to overrule Mr. Korth's Disclosure Statement Objection because the issues raised therein have either (i) been adequately addressed by the Revised Disclosure Statement filed March 13 as supplemented by the March 31 Disclosure Statement; (ii) asserted confirmation issues that should be adjudicated at the confirmation hearing; or (iii) are otherwise without merit. Mr. DeFranceschi relates that J.W. Korth was part of the ad hoc group of Subordinated Noteholders represented by Ballard Spahr Andrews & Ingersoll, LLP, which initiated the X-Clause Adversary Proceeding. In litigating that Adversary Proceeding, the Subordinated Noteholders asked, and received, extensive discovery materials from the Debtors, he says. Mr. DeFranceschi asserts that Mr. Korth misapprehends the distinctive nature and differing purposes of the monthly operating reports on the one hand and the Revised Disclosure Statement's liquidation analysis and valuation analysis on the other. "Mr. Korth's real objection is thus not the scope or quality of the Revised Disclosure Statement's disclosure. He is really objecting to the Debtors' conclusions regarding enterprise value and liquidation and to the economic deal set forth in the Revised Plan that rests on those conclusions," Mr. DeFranceschi points out. The Debtors tell the Court that modifying the liquidation and valuation analysis contained in the Revised Disclosure Statement to address Mr. Korth's particular concerns would do nothing to enhance the Revised Disclosure Statement in providing adequate information to hypothetical creditors in the three voting classes -- Class 2 Second Lien Facility Claims, Class 3 Senior Notes Claims, and Class 5 Other General Unsecured Claims. The Debtors also ask the Court to deny Mr. Korth's requests for irrelevant information concerning the identify of creditors. The Debtors assert that Mr. Korth seeks disclosure regarding a number of matters irrelevant to determining whether the Disclosure Statement meets the standard under Section 1125 of the Bankruptcy Code. About DURA Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Marc Kieselstein, P.C., Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., at Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., at Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of Jan. 31, 2008, the Debtor had US$1,503,682, 000 in total assets and US$1,623,632,000 in total liabilities. The Debtors have asked the Court to extend their plan filing period to April 30, 2008. (Dura Automotive Bankruptcy News, Issue No. 50; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Court Extends Exclusivity Deadline to April 30 --------------------------------------------------------------- The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware extended the period within which Dura Automotive Systems Inc. and its debtor-affiliates may file any plan of reorganization until April 30, 2008, and the period within which they may solicit acceptances of the plan until June 30, 2008. As reported in the Troubled Company Reporter on March 19, 2008, the Debtors filed an amended First Revised Joint Plan of Reorganization and Disclosure Statement explaining the Plan on March 13, 2008. The Hon. Kevin Carey of the U.S. Bankruptcy Court for the District of Delaware will convene a hearing tomorrow, April 3, 2008, to determine whether the Disclosure Statement contains adequate information. The Original Plan had contemplated payment in cash, in full, of all Class 2 - Second Lien Facility Claims, a backstopped rights offering open to certain Class 3 Claims and certain Class 5 claims, and an equity or cash distribution equal to approximately 55% for the Class 3 Claims and 22% for the Class 5 Claims. However, without the level of exit financing envisioned by the Original Plan, these recoveries are no longer realistic. The Debtors and their creditor constituencies, therefore, devised the Revised Plan based upon equitizing claims in Classes 2, 3 and 5. Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Marc Kieselstein, P.C., Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., at Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., at Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of Jan. 31, 2008, the Debtor had US$1,503,682, 000 in total assets and US$1,623,632,000 in total liabilities. (Dura Automotive Bankruptcy News, Issue No. 50; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * MEXICO: 2008 Outlook for Major Banks is Adequate, Fitch Says -------------------------------------------------------------- The Mexican banking system has maintained sound performance, and the outlook remains adequate for the foreseeable future, according to a Fitch Special Report, titled "Major Mexican Banks: Semi-Annual Review and Outlook". However, challenges are increasing as strong loan growth has affected delinquency ratios and credit costs and the worsening global environment in the capital markets pressures liquidity and funding costs. The report includes a system-wide overview and an assessment of the six largest Mexican banks rated by Fitch. According to Fitch's Latin America Financial Institutions Group Senior Director, Alejandro Garcia, "While Fitch believes that most Mexican banks will perform adequately going forward, profitability will likely decline from the historically high and unsustainable levels it has reached recently." Fitch expects that loan growth will remain solid for the foreseeable future, reaching double-digit rates in 2008-2009. Offsetting factors against the aforementioned risks are the banks' sound financial condition, low reliance on wholesale funding, adequate risk-adjusted profitability in most lending segments, as well as the relatively higher resilience of the Mexican economy to the United States economic slowdown. Fitch does not anticipate downward pressure on the major banks' individual ratings under current market conditions. However, negative ratings actions cannot be ruled out for specific institutions should asset quality problems become exacerbated without the increased ability to absorb losses. The full report is available on the Fitch Ratings Web site, at http://www.fitchratings.com ==================== P U E R T O R I C O ==================== DORAL FINANCIAL: S&P Lifts LT Counterparty Credit Rating to B+ -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term counterparty credit rating on Doral Financial Corp. to 'B+' from 'B' and removed it from CreditWatch Positive, where it had been placed July 20, 2007. The outlook is stable. "The rating action follows a review of Doral's credit quality, including its capital, liquidity, operating performance, business strategy, and various accounting and regulatory issues," said S&P's credit analyst Robert Hansen. The CreditWatch placement followed Doral's sale of its common stock to Doral Holdings Delaware LLC and repayment in full of US$625 million in senior notes. S&P thinks the company's liquidity and capital position have improved due to the completion of its recapitalization in 2007. Furthermore, the rating agency expects the recapitalization to have a positive effect on the company's reputation among depositors and borrowers, which the agency believes had been tarnished by previous accounting and liquidity issues. However, the rating agency remains very concerned by the significant spike in nonperforming assets within the company's loan portfolio, notably within its construction portfolio. S&P is also concerned about Doral's weaknesses in internal financial reporting controls, as mentioned in its 2007 10-K, which it views negatively in the rating assessment. The counterparty credit rating on Doral Financial reflects its strengthened capital ratios, adequate liquidity, and experienced management team. However, the ratings also incorporate significant credit quality deterioration, low profitability, formidable competition, deficiencies in enterprise risk management, and a challenging economic environment. Specifically, the company reported a net loss of nearly US$171 million in 2007 versus a loss of nearly US$224 million in 2006. Financial results were hurt by a significant increase in its nonperforming assets and an increase in loan-loss provisions. S&P thinks the company is being relatively conservative with its nonperforming loans, which include a significant amount of loans classified as substandard, but not more than 90 days in arrears. While net credit losses to date have been low and manageable, there remains a high degree of uncertainty regarding future loss severities of the nonperforming assets given the weakened local economy. S&P expects operating performance to remain challenged in the near term. The company maintains a weak competitive position in Puerto Rico, despite its long history on the island. The company has a small footprint of branches and has only experienced modest deposit growth in recent years. The business mix is not well diversified, with business lines that focus on commercial and retail banking. In addition, intense competition in Puerto Rico among several formidable competitors has negatively affected margins. Doral Financial has adequate liquidity and is not facing any near-term funding obligations. Specifically, the banks' ratio of loans to deposits declined significantly in recent years as did the bank's reliance on repurchase agreements as a funding source. However, the company remains heavily dependent on brokered deposits. The company has several accounting deficiencies, which S&P views negatively in its rating assessment. Specifically, the company has noted several material weaknesses, including not maintaining effective controls over the reporting process. However, S&P thinks that the company is working hard to remediate these deficiencies and expect substantial progress to be made during the next several quarters. The stable outlook includes S&P's expectation that credit quality will deteriorate further given credit deterioration in its loan portfolio and the weak economic environment. However, the rating agency thinks the bank has sufficient shareholders' capital to absorb a significant increase in loan losses, which the agency expects given the precipitous rise in nonperforming loans. The ratings or outlook could be revised downward if credit quality deteriorates beyond S&P's expectations, a significant amount of loans are purchased, or capital is returned to equity shareholders. Conversely, the ratings or outlook could be revised upward if loan losses prove manageable and if the company is successful in curing accounting deficiencies. Based in New York City, Doral Financial Corp. (NYSE: DRL) -- http://www.doralfinancial.com/-- is a diversified financial services company engaged in mortgage banking, banking, investment banking activities, institutional securities and insurance agency operations. Its activities are principally conducted in Puerto Rico and in the New York City metropolitan area. Doral is the parent company of Doral Bank, a Puerto Rico based commercial bank; Doral Securities, a Puerto Rico based investment banking and institutional brokerage firm; Doral Insurance Agency Inc. and Doral Bank FSB, a federal savings bank based in New York City. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Debt Up 449% in 2007, 28.5% of Assets ------------------------------------------------------------- El Universal relates that Petroleos de Venezuela SA's debt increased 449% to US$13.09 billion in 2007, 28.5% of the companany's assets. According to El Universal, Petroleos de Venezuela's "sharpening indebtedness over the last 12 months drastically changed the company's accounts to the extent that its debt to net worth ratio at the end of 2007 was 28.5%, the highest in the last decade." El Universal notes that Petroleos de Venezuela's consolidated debt was US$16 billion last year, comprising: -- US$13.12 billion in long-term debt, and -- US$2.87 billion in current debt. The report says that most of the long-term debt "was contracted" by Petroleos de Venezuela in Venezuela, where it issued US$7.5 billion in debt bonds in April 2007. Petroleos de Venezuela's President and Venezuelan Oil Minister Rafael Ramirez emphasized that the firm's net worth increased 5.5% to US$56.06 billion in 2007, compared to US$53.10 billion in 2006. However, the increase was "significantly below the expansion of debt in the same period," El Universal states. Petroleos de Venezuela SA -- http://www.pdv.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. =========== X X X X X X =========== * Moody's Sees Neg. Outlook for Global Paper & Forest Products -------------------------------------------------------------- The credit conditions of the paper and forest products industry are expected to worsen as demand for most paper and forest products will continue to decline amid rising costs and general economic weakness, says Moody's Investors Service in its new report. The rating agency's report examined the credit implications of trends and developments in the key segments of the paper and forest products industry globally. The overall global credit outlook is negative, based primarily on the sector's twin problems of declining demand and increasing costs. "These problems are most pronounced in the mature markets of North America and Europe where the appetite for most paper and forest products is lessening and companies face increasing energy, chemical, transportation and fiber costs," says Moody's lead paper and forest products analyst and co-author of the report, Ed Sustar. While most global market pulp producers should perform reasonably well over the next 12 to 18 months, many companies in the printing and writing paper, paper packaging and wood- based building products sectors are expected to experience negative rating pressure, says Moody's. According to Moody's, reduced sawmill activity will continue to pressure fiber availability and cost as the United States housing markets remain depressed, further dampening the need for building products. "To offset weak demand and escalating costs, supply will need to be significantly curtailed to improve product pricing," says Mr. Sustar. Longer term, the increasing cost of fiber will continue to shift production capacity to regions that can supply and process it at the lowest cost. "In addition to declining demand and escalating input costs, liquidity concerns, foreign exchange impact and mergers & acquisitions will continue to fuel negative rating actions," says Mr. Sustar. The ongoing credit-market turmoil is expected to increase refinancing risk, especially for companies with near-term debt maturities or minimal financial covenant flexibility, says Moody's. The strong Canadian dollar, Brazilian real and Chilean peso create negative rating pressure for regional producers based in those countries. While the consolidation trend in the paper and forest products sector is expected to continue, the pace of corporate transformations through both private-equity transactions and merger and acquisition activity may moderate as financing costs escalate. Despite the changing dynamics in the paper and forest products sector, the most important determinants of a company's profitability and credit worthiness are demand, pricing and cost position. Over the past year, approximately 75% of rating actions in the paper and forest products industry have been negative, constituting either outright downgrades or negative outlook changes. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marie Therese V. Profetana, Sheryl Joy P. Olano, Rizande de los Santos, and Pamella Ritah K. Jala, Editors. Copyright 2008. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *