T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, April 4, 2008, Vol. 9, No. 67 Headlines A R G E N T I N A ALITALIA SPA: Air France Talks Fail; Maurizio Prato Quits ALITALIA SPA: Airlines Challenge Air Enac Traffics Agreement ALITALIA SPA: Group Net Debt at EUR1.37 Bln as of February 29 ASOC. MUTUAL: Files for Reorganization in Buenos Aires Court BUENOS AIRES BUREAU: Individual Report Deadline is July 10 CEREAL PRO: Trustee to Verify Proofs of Claim Until June 4 CLAXSON INTERACTIVE: Board Committee OKs Going Private Move COOPERATIVA DE CARNICEROS: Claims Verification is Until April 28 ESTABLECIMIENTOS AVICOLAS: Fails to Pay Debts; Seeks Reorg GABIKAR SRL: Files for Reorganization in Buenos Aires Court IMMSA SA: Files for Reorganization in Buenos Aires Court MARASCO Y SPEZIALE: Files for Reorganization in Court PAGLIETTINI SA: Trustee to Verify Proofs of Claim Until June 5 RENT A CAR: Seeks Bankruptcy Protection SANTANA SA: Trustee to Verify Proofs of Claim Until June 9 SIGLO XXI: Trustee to Verify Proofs of Claim Until May 15 * ARGENTINA: Gas Shortage Threatens Pipeline Cos., Fitch Says B E R M U D A CHARTER SHIPPING: Proofs of Claim Filing Deadline is April 11 CHARTER SHIPPING: Sets Final Shareholders Meeting for April 29 EUROPEAN EQUITIES: Proofs of Claim Filing Deadline is April 9 EUROPEAN EQUITIES: Sets Final Shareholders Meeting for April 28 PURAM (BERMUDA): Proofs of Claim Filing Deadline is April 23 PURAM (BERMUDA): Sets Final Shareholders Meeting for May 5 B O L I V I A FONDO FINANCIERO: Moody's Junks BFSR & Currency Deposit Ratings B R A Z I L BANCO BONSUCESSO: To Lend BRL200MM Through Pensioner Credit Card BANCO ITAU: Eyes LatAm Add-On Acquisitions to Bolster Growth BANCO NACIONAL: To Lend Suez EUR380 Mil. for Estreito Plant COMPANHIA BRASILEIRA: Moody's Reviews Ba3 Rating for Upgrade EMBRATEL PARTICIPACOES: Will Launch WiMax Network in 12 Cities ENERGISA SA: Seeks Regulator's Okay for Debenture Issuance FIAT SPA: Discloses Results of 2008 Annual General Meeting FIAT SPA: Releases Details of Shares Purchase Program GERDAU AMERISTEEL: Joint Venture Acquires Century Steel Assets HEXION SPECIALTY: Dec. 31 Balance Sheet Upside-Down by US$1 Bil. REALOGY CORP: S&P Retains 'B' Issue-level Rating on Senior Notes * BRAZIL: Electric Firms to Withstand 2008 Challenges, S&P Says C A Y M A N I S L A N D S BELAY OFFSHORE: Proofs of Claim Filing is Until April 6 BRASKEM CAYMAN: Appoints Joel Benedicto as Liquidator D-LINK CHINA: Proofs of Claim Filing is Until April 7 DYOLL INSURANCE: Proofs of Claim Filing is Until April 7 MARATHON POWER: Proofs of Claim Deadline is April 17 MARATHON POWER ETA: Proofs of Claim is Until April 17 MARGHERITA LIMITED: Proofs of Claim Filing Deadline is April 7 PACTUAL CAPITAL: Proofs of Claim Deadline is April 17 WESTWAYS FUNDING: Proofs of Claim Filing is Until April 6 WESTWAYS FUNDING X: Proofs of Claim Filing Deadline is April 6 C H I L E BANCO ITAU: Unit to Issue US$50MM Subordinated Bullet Bonds C O L O M B I A CHIQUITA BRANDS: May Have to Pay US$780MM for Terrorist Victims ECOPETROL: Wants to Increase Oil Output to 700,000 Barrels/Day C O S T A R I C A HERBALIFE LTD: DA Davidson Puts Buy Rating on Firm's Shares D O M I N I C A N R E P U B L I C CAP CANA: Clarifies Erroneous Information in Lawsuit Against CEO PRC LLC: Files Disclosure Statement Supporting Chapter 11 Plan PRC LLC: Court Okays Regis McElhatton as Chief Executive Officer PRC LLC: U.S. Trustee Amends Creditors Committee Composition E L S A L V A D O R SPECTRUM BRANDS: Fitch Holds CCC ID Rating with Negative Outlook J A M A I C A AIR JAMAICA: Will Incur J$60 Mln. Loss This Year, Says Minister DIGICEL GROUP: Denies Founders Plan to Sell Firm M E X I C O COOPER-STANDARD AUTO: Incurs US$151 Million Net Loss in 2007 LATIN AMERICA: Case Summary & 20 Largest Unsecured Creditors SHARPER IMAGE: Shares to be Delisted From NASDAQ Stock Market N I C A R A G U A INFINITY ENERGY: Posts 2007 US$30.9MM Net Loss From Operations P A R A G U A Y INTERPUBLIC GROUP: To Hold Conference Call After Earnings Report P E R U QUEBECOR WORLD: Obtains Final Nod on US$1 Bln. DIP Facility QUEBECOR WORLD: Inks US$285 Mln. Printing Deal With Mcgraw-Hill QUEBECOR WORLD: Court Allows Assumption of BofA's P-Card Pact QUEBECOR WORLD: Payment of US$3 Mil. Sales Commissions Approved QUEBECOR WORLD: Has Until June 4 to File Schedules & Statements V E N E Z U E L A HARVEST NATURAL: CEO to Present at IPAA Conference in New York PETROLEOS DE VENEZUELA: Cuban Plant Starts Production X X X X X X * Fitch Says 2008 World Economic Growth To Be Weakest in 5 Years * Moody's Opines on Interest Rate Asset Specific Hedges in CDOs * Beard Group Launches Intellectual Property Prospector - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Air France Talks Fail; Maurizio Prato Quits --------------------------------------------------------- Alitalia S.p.A., labor unions, professional associations, and Air France-KLM SA have stopped negotiations over the sale of the Italian government's 49.9% stake in the national carrier. The parties failed to reach an agreement that would accomplish the sale's effectiveness conditions, satisfaction of which would finalize the acceptance by Alitalia and Italy of Air France's binding offer. The effectiveness conditions for Air France's offer include: * formal approval of the Industrial Plan 2008-2010 by Alitalia’s Board of Directors; * formal agreement in a manner satisfactory for Air France-KLM between Alitalia and the trade unions representing the majority of each category of Alitalia’s employees, regarding the implementation of the Industrial Plan, the rules of employment, the plan related to the social shock absorbers and the contemplated transaction; * formal agreement in a manner satisfactory for Air France-KLM between Alitalia and the trade unions of Alitalia Servizi representing the majority of each category of Alitalia Servizi’s employees on the necessary restructuring measures and the related shock absorbers plan; * Italy's Ministry of Economy and Finance to grant Alitalia a credit line, or the necessary guarantees to obtain a credit line in favor of Alitalia of EUR300 million to be repaid immediately after the capital increase; * formal agreement between Alitalia and Aeroporti di Roma on the Rome Fiumicino Airport and on the service levels required for the implementation of the Industrial Plan 2008-2010; * with respect to the claim brought on by SEA against Alitalia to the tribunal of Busto Arsizio, either: -- the official withdrawal from the claim; -- its settlement in a manner satisfactory to Air France; -- the granting by the MEF to Alitalia of appropriate indemnification commitments, in case necessary by enacting an appropriate law decree, or any other applicable solution satisfactory to Air France-KLM to definitely remove the risk attached to the claim; * formal agreement between Alitalia, Fintecna and Alitalia Servizi, for what concerns the interest of each party, among other things, to re-internalize in Alitalia certain activities and to renegotiate certain clauses of the service agreements; * formal written confirmation from the MEF that the general interests are properly safeguarded in the context of the contemplated transaction and it shall, subject to certain conditions, tender its Alitalia shares and Alitalia convertible bonds in the tender offers; * formal written undertaking from the competent Italian governmental authority to maintain the current portfolio of the current Alitalia’s air traffic rights, continue to address in a fair, transparent and non discriminatory manner any future requests form Alitalia for new air traffic rights, and provide cooperation and assistance in the case of any major difficulties with extra-European Community countries. Air France-KLM had reiterated its planned 2,100 job cuts -- 1,600 jobs in Alitalia Fly and 500 more in Alitalia Servizi -- in its revised proposal submitted to the Italian carrier's unions. Air France also maintained plans to: * ground some flights; * close Alitalia's cargo unit by 2010; and * terminate contract out of ground handling and aircraft maintenance. Eight of Alitalia's unions -- FILT CGIL, FIT CISL, Uiltrasporti, UGL Trasporti, SDL inter-category, Union Piloti, ANPAV, and Avia -- described Air France's revised proposal as "unacceptable." The unions said Air France's offer "re-proposes in substance and in format what was already shown." "I acknowledge with regret the collapse of the negotiations, which wasn't caused by us," Air France CEO Jean-Cyril Spinetta told Bloomberg News. Meanwhile, Alitalia said Maurizio Prato resigned as its chairman, while its board will convene today to "take the necessary and opportune resolutions." Creditor Protection Italian Finance Minister Tommaso Padoa-Schioppa, meanwhile, said Alitalia may seek protection from creditors, Bloomberg News reports. Mr. Padoa-Schioppa had warned if the sale to Air France fails, the government would appoint a special commissioner to initiate bankruptcy proceedings, The Financial Times relates. The government had pledged to grant Alitalia a EUR300 million bridging loan if Air France's takeover pushes through. Alitalia badly need more funds as it had less than EUR200 million in cash and credit available at March 31, 2008. Aeroflot Expresses Interest OAO Aeroflot had said it may submit a proposal to acquire the Italian government's 49.9% stake in Alitalia S.p.A. if talks between Air France-KLM SA and the national carrier's unions fail, Thomson Financial relates, citing a Radiocor interview with the Russian firm's spokesman. "If the talks break down and new acceptable proposals are made we are ready to examine them," the spokesman told Radiocor. Aeroflot and financial backer UniCredit S.p.A. had joined the preliminary rounds of bidding for Alitalia, but withdrew. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Airlines Challenge Air Enac Traffics Agreement ------------------------------------------------------------ Air One, Blue Panorama, Eurofly, Air Italy and Neos are contemplating a legal challenge over the air traffic rights agreement between Alitalia S.p.A. and Italian civil aviation authority Ente Nazionale per l'Aviazione Civile (Enac), the Financial Times reports. The airlines, the FT relates, are urging Enac to release details of the agreement, which according to industry and official sources was pushed through by the government to expedite Air France-KLM's takeover bid. Meanwhile, industry and government sources claimed the agreement reassigns airline traffic rights that would be of interest to Air France. Alitalia is also assigned traffic rights that belonged to Volare under the agreement, the FT adds. An Enac official, on the other hand, argued the agreement was completely normal, saying there was no political motivation involved. The official disclosed Enac is set to release the details of the agreement, the FT states. The agreement was signed on March 14, 2008, the same day Air France made its binding for Alitalia, the paper discloses. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Group Net Debt at EUR1.37 Bln as of February 29 ------------------------------------------------------------- The Alitalia Group's net debt as of Feb. 29, 2008, amounted to EUR1.368 billion, showing an increase in net indebtedness of EUR88 million, compared to the situation on Jan. 31, 2008. This trend is due to the typical seasonality of this month's proceeds and payments. The net debt of the parent company Alitalia S.p. A. including short-term financial credits for subsidiaries on Feb. 29, 2008, including short-term financial credits of subsidiaries, amounted to EUR1.357 billion showing an increase of EUR92 million compared to net debt as of Jan. 31, 2008. The Group's cash-to-hand and short-term financial credits as of Feb. 29, 2008, at the Group level and for Alitalia, amounted to EUR180 million and EUR191 million respectively. It should be noted that as of Feb. 29, 2008, there were several leasing contracts at the Group level -- referring almost entirely to fleet aircraft mostly held by the parent company amounting to EUR81 million -- whose capital share, including lease closure value, amounted to EUR93 million, of which EUR12 million represent the current capital share falling due within 12 months of the reference date, with EUR10 millionheld by the parent company). It should also be noted that existing debts to banks are almost entirely backed up by real guarantees (mortgages on aircraft) or by personal guarantees (mainly guarantees issued by banks for export credit). The relative financing contracts contain standard legal clauses relating to withdrawal. None of the contracts refer to specific requirements regarding assets or economic/financial aspects, in order to maintain the credit line. During February 2008, repayments were made of medium/long-term financing amounting to about EUR14 million. Regarding debts of a financial, fiscal and social welfare nature, there were no outstanding sums or payment irregularities on Feb. 29, 2008, both for the parent company and for the other companies in the Group. As far as debts of a commercial nature are concerned, decisions are still pending for the petitions filed by Alitalia regarding: * an injunction related to supposed different pricing policies, issued by a carrier for EUR6 million(two decrees); * an injunction issued by a supplier of on-board movies for EUR1.2 million (two decrees); * an injunction has been issued by an IT services supplier for EUR812,000; * an injunction has been issued by an Italian subsidiary of an air carrier bankruptcy for EUR288,000; * another injunction issued by a maintenance services supplier for EUR492,000; * an injunction has been issued by the special manager of a firm for presumed debts relating to air ticket sales, for EUR3.2 million; * one injunction issued by a fuel supplier for about EUR1 million; * an injunction issued by an airport management company for limited failure to pay handling fees about EUR375,000; and * an injunction issued by four suppliers, for EUR188,000. There are no other executive actions undertaken by creditors notified as of Feb. 29, 2008, nor are there any threats by suppliers to suspend operations. It should be pointed out that, as part of ordinary management practices, the Company is committed to maintaining commercial relations with its customers and suppliers who guarantee –- in the absence of critical situations or operational emergencies -– the necessary financial flexibility in support of cash-to- hand requirements. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ASOC. MUTUAL: Files for Reorganization in Buenos Aires Court ------------------------------------------------------------ Asoc. Mutual del Pers. de la Adm. Publica (A.M.P.A.B.A.) has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Asoc. Mutual del Pers. 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 in Buenos Aires. BUENOS AIRES BUREAU: Individual Report Deadline is July 10 ---------------------------------------------------------- Alberto Eduardo Scravaglieri, the court-appointed trustee for Buenos Aires Bureau Relevamientos SA's reorganization proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance No. 4 in Buenos Aires on July 10, 2008. Mr. Scravaglieri will be verifying creditors' proofs of claim until May 21, 2008. He will also submit in court a general report containing an audit of Buenos Aires Bureau's accounting and banking records on Sept. 10, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on March 27, 2009. Clerk No. 7 assists the court in this case. The debtor can be reached at: Buenos Aires Bureau Relevamientos SA Blanco Encalada 5533 Buenos Aires, Argentina The trustee can be reached at: Alberto Eduardo Scravaglieri Avenida Presidente Roque Saenz Pena 651 Buenos Aires, Argentina CEREAL PRO: Trustee to Verify Proofs of Claim Until June 4 ---------------------------------------------------------- Miryam Lewenbaum, the court-appointed trustee for Cereal Pro SA's reorganization proceeding, will be verifying creditors' proofs of claim until June 4, 2008. Ms. Lewenbaum will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 4, 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 Cereal Pro 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 Cereal Pro's accounting and banking records will be submitted in court. Creditors will vote to ratify the completed settlement plan during the assembly on June 13, 2009. The debtor can be reached at: Cereal Pro SA Uruguay 705 Buenos Aires, Argentina The trustee can be reached at: Miryam Lewenbaum Montevideo 666 Buenos Aires, Argentina CLAXSON INTERACTIVE: Board Committee OKs Going Private Move ----------------------------------------------------------- Claxson Interactive Group Inc.'s special committee of indiependent directors and board of directors have approved a Going Private Transaction. Claxson Interactive reported the execution of a merger agreement, with a wholly owned subsidiary, pursuant to which all stockholders of the outstanding Class A common shares of Claxson, other than certain controlling stockholders, will receive US$13.75 per share in cash. The price to be paid in the merger represents a 31% premium to the original proposal of US$10.50 per share made by management on March 19, 2007, a 43% premium over US$9.65 which was the closing share price before the announcement of the proposal last March and a 25% premium over the last sale price prior to the announcement last month of its previous offer of US$13.50. The transaction is subject to customary conditions set forth in the merger agreement. The controlling stockholders of Claxson Interactive, consisting of affiliates of the Cisneros Group of Companies, Hicks Muse, Roberto Vivo, Chief Executive Officer of the company, Luis H. Moreno and related entities, currently own a total of approximately 81.98% of the issued and outstanding Class A common shares of the company, and would own all of the outstanding shares of the company following the consummation of the merger. "We believe that given our smaller size following the sales of our basic PayTV and Chilean radio businesses in 2007 as well as the current financial, business, and industry environments, it is in the best interest of the company and all of its shareholders that the company reduce its costs wherever possible, including, by deregistering under the Securities Exchange Act of 1934," said Mr. Vivo. Following management’s proposal in March 2007, the Board of Directors of Claxson appointed a Special Committee of independent directors to review the proposed transaction. The Special Committee, consisting of three of the independent directors of the company, engaged Houlihan Lokey as its financial adviser and Arnold & Porter LLP as its legal counsel. Claxson engaged Greenberg Traurig, P.A. as its legal counsel. After extended negotiations, the Special Committee approved, and recommended that Claxson’s Board of Directors approve, the proposed transaction. Subsequently, the proposed transaction was unanimously approved by the company's Board of Directors. Claxson expects the merger to close in the second quarter of 2008. The closing of the merger is subject to various conditions, including approval of the merger by a majority of the company's shareholders and certain other customary closing conditions. The members of the Group have agreed to either vote their shares, or execute a written resolution, in support of the proposed transaction. The merger agreement requires Claxson, subject to certain conditions, to respond to unsolicited inquiries by other persons interested in acquiring it. In addition, the company, acting through the Special Committee, is permitted, under certain circumstances to accept a superior offer that, among other requirements, provides a per share consideration at least 4% greater than the price per share under the merger agreement. Should a superior proposal be received, Claxson, acting through the Special Committee, may terminate the merger agreement described herein only upon the entry into a definitive merger agreement with a third party that comprises a superior proposal. As a result of the merger, Claxson will become a privately held company and will file necessary documents with the U.S. Securities and Exchange Commission to deregister the Class A common shares of the company under the Securities Exchange Act of 1934, as amended, and terminate the company’s reporting obligations. Headquartered in Buenos Aires, Argentina, and Miami, Florida, Claxson Interactive Group Inc. (Pink Sheets: XSONF) has a presence in the United States and all key Ibero-American countries, including Mexico, Chile, Brazil, Spain and Portugal. Claxson's principal shareholders are the Cisneros Group of Companies and funds affiliated with Hicks, Muse, Tate & Furst Inc. * * * To date, Claxson Interactive Group Inc.'s obligaciones negociables for US$44,400,000 is rated BB by Fitch Argentina. The rating action was based on the company's balance sheet at Sept. 30, 2006. COOPERATIVA DE CARNICEROS: Claims Verification is Until April 28 ---------------------------------------------------------------- Patricia C. Holmann, the court-appointed trustee for Cooperativa de Carniceros y Matarifes de Tornquist Ltda.'s reorganization proceeding, will be verifying creditors' proofs of claim until April 28, 2008. Ms. Holmann will present the validated claims in court as individual reports on June 10, 2008. The National Commercial Court of First Instance in Bahia Blanca, 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 Cooperativa de Carniceros 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 Cooperativa de Carniceros' accounting and banking records will be submitted in court on July 24, 2008. The debtor can be reached at: Cooperativa de Carniceros y Matarifes de Tornquist Ltda. San Martin 278, Tornquist Bahia Blanca, Buenos Aires Argentina The trustee can be reached at: Patricia C. Holmann Drago 912, Bahia Blanca Bahia Blanca, Buenos Aires Argentina ESTABLECIMIENTOS AVICOLAS: Fails to Pay Debts; Seeks Reorg ---------------------------------------------------------- Establecimientos Avicolas La Campesina SA has requested for reorganization approval after failing to pay its liabilities since March 5, 2008. The reorganization petition, once approved by the court, will allow Establecimientos Avicolas 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. 3 in Buenos Aires. Clerk No. 6 assists the court in this case. The debtor can be reached at: Establecimientos Avicolas La Campesina SA Emilio Castro 7440 Buenos Aires, Argentina GABIKAR SRL: Files for Reorganization in Buenos Aires Court ----------------------------------------------------------- Gabikar SRL has requested for reorganization approval after failing to pay its liabilities since Oct. 23, 2005. The reorganization petition, once approved by the court, will allow Gabikar 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. 24 in Buenos Aires. Clerk No. 48 assists the court in this case. The debtor can be reached at: Gabikar SRL Sarmiento 1986 Buenos Aires, Argentina IMMSA SA: Files for Reorganization in Buenos Aires Court -------------------------------------------------------- Immsa SA has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Immsa 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. 26 in Buenos Aires. Clerk No. 51 assists the court in this case. The debtor can be reached at: Immsa SA Alsina 2143 Buenos Aires, Argentina MARASCO Y SPEZIALE: Files for Reorganization in Court ----------------------------------------------------- Marasco y Speziale S.A.C.I.F.I. has requested for reorganization approval after failing to pay its liabilities. 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 in Buenos Aires. PAGLIETTINI SA: Trustee to Verify Proofs of Claim Until June 5 -------------------------------------------------------------- Estudio Tisocco Asociados, the court-appointed trustee for Pagliettini SA's reorganization proceeding, will be verifying creditors' proofs of claim until June 5, 2008. Estudio Tisocco will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 11 in Buenos Aires, with the assistance of Clerk No. 22, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Pagliettini 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 Pagliettini's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on March 18, 2009. The debtor can be reached at: Pagliettini SA Diaz Colodrero 3110 Buenos Aires, Argentina The trustee can be reached at: Estudio Tisocco Asociados Viamonte 1570 Buenos Aires, Argentina RENT A CAR: Seeks Bankruptcy Protection --------------------------------------- The National Commercial Court of First Instance No. 12 in Buenos Aires is studying the merits of Rent A Car Travel Service SRL - D y W Trading SA - C y C Car SA's request to enter bankruptcy protection. Rent A Car filed a "Quiebra Decretada" petition, after failing to pay its debts. The petition, once approved by the court, will transfer control of the company's assets to a court-appointed trustee who will supervise the liquidation proceedings. Clerk No. 24 assists the court in this case. The debtor can be reached at: Rent A Car Travel Service SRL - D y W Trading SA - C y C Car SA Avenida Cordoba 645 Buenos Aires, Argentina SANTANA SA: Trustee to Verify Proofs of Claim Until June 9 ---------------------------------------------------------- Sara Maria Rey de Lavolpe, the court-appointed trustee for Santana S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until June 9, 2008. Ms. de Lavolpe will present the validated claims in court as individual reports on Aug. 5, 2005. 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 Santana 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 Santana's accounting and banking records will be submitted in court on Sept. 16, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on March 20, 2009. The trustee can be reached at: Sara Maria Rey de Lavolpe Cerrito 1136 Buenos Aires, Argentina SIGLO XXI: Trustee to Verify Proofs of Claim Until May 15 --------------------------------------------------------- Pedro Domingo Caggiano, the court-appointed trustee for Siglo XXI S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 15, 2008. Mr. Caggiano will present the validated claims in court as individual reports on June 27, 2008. The National Commercial Court of First Instance in Mendoza will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Terramed 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 Terramed's accounting and banking records will be submitted in court on Aug. 26, 2008. The debtor can be reached at: Siglo XXI S.A. Entre Rios 158, Ciudad de Mendoza Mendoza, Argentina The trustee can be reached at: Pedro Domingo Caggiano Santa Cruz 96, Esquina 25 de Mayo Ciudad de Mendoza, Mendoza Argentina * ARGENTINA: Gas Shortage Threatens Pipeline Cos., Fitch Says ------------------------------------------------------------- According to a Fitch Ratings special report, titled "Southern Cone: Natural Gas Shortage Threatens Argentine Pipelines", the natural gas shortage in Argentina is affecting Argentine pipeline companies, in addition to Chilean electric generators, raising near-term credit concerns. "Ongoing challenges faced by these companies include the low probability of domestic tariff increases and continued government influence. The latest risk to arise is the possibility that the exporter of gas to Chile, Transportadora de Gas del Norte S.A. (TGN), will not be paid pursuant to existing gas transportation agreements. This risk has led Fitch Ratings to recently change TGN's Rating Outlook to Negative from Stable," said Director in Fitch's Latin America Corporates Group, Cecilia Minguillon. Counterparty payment and legal risks for the sector increased during February 2008 when the Chilean energy generator, Electrica de Santiago S.A., decided to seek legal actions in an attempt to discontinue payments to Transportadora de Gas del Norte in accordance with the gas transportation agreement between the two companies. Electrica de Santiago's decision to cease making payments to Transportadora de Gas for the transportation of gas it was not receiving was not completely unexpected, as last year's deliveries of gas to neighboring Chile amounted to one-third of the total gas contracted, while offtakers had to pay in full for the capacity contracted to ship the gas from Argentina. According to Ms. Minguillon, "TGN should be able to manage the loss of revenues and cash flow associated with its agreement with ESSA if a legal decisions would go against it. The company's credit profile would deteriorate sharply, however, if the other three Chilean companies that are not receiving natural gas through TGN due to restriction imposed by the government would follow suit and discontinue their payments to TGN." The full report is available on the Fitch Ratings Web site, http://www.fitchratings.com ============= B E R M U D A ============= CHARTER SHIPPING: Proofs of Claim Filing Deadline is April 11 ------------------------------------------------------------- Charter Shipping Company Limited's creditors are given until April 11, 2008, to prove their claims to Robin J. Mayor, 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. Charter Shipping's shareholder decided on March 18, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, 2 Church Street Hamilton, HM 11, Bermuda CHARTER SHIPPING: Sets Final Shareholders Meeting for April 29 -------------------------------------------------------------- Charter Shipping Company Limited will hold its final general meeting on April 29, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. Charter Shipping's shareholder decided on March 18, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, 2 Church Street Hamilton, HM 11, Bermuda EUROPEAN EQUITIES: Proofs of Claim Filing Deadline is April 9 ------------------------------------------------------------- European Equities Long/Short Trading Limited's creditors are given until April 9, 2008, to prove their claims to Beverly Mathias, 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. European Equities' shareholders agreed on March 20, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda EUROPEAN EQUITIES: Sets Final Shareholders Meeting for April 28 --------------------------------------------------------------- European Equities Long/Short Trading Limited will hold its final general meeting on April 28, 2008, at 9:30 a.m. at Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. European Equities' shareholders agreed on March 20, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda PURAM (BERMUDA): Proofs of Claim Filing Deadline is April 23 ------------------------------------------------------------ Puram (Bermuda) Limited's creditors are given until April 23, 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. Puram (Bermuda)'s shareholder decided on March 31, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Christopher C. Morris Arthur Morris, Christensen & Co. Century House, 16 Par-la-Ville Road Hamilton HM08, Bermuda PURAM (BERMUDA): Sets Final Shareholders Meeting for May 5 ---------------------------------------------------------- Puram (Bermuda) Limited will hold its final general meeting on May 5, 2008, at 3:00 p.m. at Arthur Morris, Christensen & Co., Century House, 16 Par-la-Ville Road, Hamilton HM08, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. Puram (Bermuda)'s shareholder decided on March 31, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Christopher C. Morris Arthur Morris, Christensen & Co. Century House, 16 Par-la-Ville Road Hamilton HM08, Bermuda ============= B O L I V I A ============= FONDO FINANCIERO: Moody's Junks BFSR & Currency Deposit Ratings --------------------------------------------------------------- Moody's Investors Service assigned a bank financial strength rating (BFSR) of E+ to Fondo Financiero Privado Fassil S.A. At the same time, Moody's assigned long- and short-term global local currency deposit ratings of B3/Not Prime. Foreign currency deposit ratings of Caa1/Not Prime were also given. All these ratings have stable outlooks. According to Moody's, the BFSR of E+ reflects the company's very limited market share and the short track record of the new management, which is faced with sharp challenges inherent to the implementation of a new strategy. The BFSR is also limited by the company's lack of geographic diversification as well as by the limitations of its business, which specializes in microlending. The BFSR is underpinned by good financial ratios, including asset quality and profitability, although both credit underwriting and risk management practices are still unseasoned. The rating agency noted that Fassil has yet to prove its ability to generate sustainable core earnings and to further establish its market position, both in deposits and loans in the face of growing competition in its core credit product. Moody's BFSR of E+ equates to a Baseline Credit Assessment of B3. Moody's assesses no probability of government support to the company's local currency deposits in situation of stress because of its small market share in the financial system. As a result, Fassil's local currency deposit rating is B3 and its foreign currency deposit rating of Caa1 remains constrained by the Bolivian country ceiling for deposits. These ratings were assigned: -- Bank Financial Strength Rating: E+, stable outlook -- Global Local Currency Deposits, long term: B3, stable outlook -- Global Local Currency Deposits, short term: Not Prime -- Foreign Currency deposits, long term: Caa1, stable outlook -- Foreign Currency deposits, short term: Not Prime Headquartered in Santa Cruz de la Sierra, Bolivia, Fondo Financiero Privado Fassil SA -- http://www.fassil.com.bo/-- reported BOB225 million in assets (approximately US$29 million) and equity of BOB24 million as of December 2007. =========== B R A Z I L =========== BANCO BONSUCESSO: To Lend BRL200MM Through Pensioner Credit Card ---------------------------------------------------------------- Banco Bonsucesso's Commercial Director Frederico Penido told Business News Americas that the bank will lend some BRL200 million through a new credit card for pensioners by year- end. Mr. Penido commented to BNamericas, "We launched the card last week and in just five days we're issuing almost 1,000 cards a day." Banco Bonsucesso launched the Visa-branded card with initial expectations of issuing 500 per day, after an investment of BRL1.30 million, BNamericas says, citing Mr. Penido. According to BNamericas, Banco Bonsucesso will also issue 150,000 credit cards to pensioners by year-end and reach 60% of its 580,000 clients in federal social security system Instituto Nacional do Seguro Social. Mr. Penido told BNamericas that Banco Bonsucesso wants to increase its payroll and retirement loan book to BRL1.50 billion by year-end, with 45% coming from the new credit card. BNamericas notes that Banco Bonsucesso increased payroll lending by 48.0% to BRL1.08 billion in 2007, compared to 2006, as total lending rose 101% to BRL1.35 billion. Mr. Penido told BNamericas that Banco Bonsucesso launched a pilot program of housing loans with payments deducted directly from Minas Gerais public sector workers' paychecks. The bank expects BRL50 million in its housing loan portfolio by year-end. "The volume will be small because we're still testing it. Demand is huge and 2009 will be the year of housing loans," Mr. Penido commented to BNamericas. Banco Bonsucesso S.A. is a Brazil-based bank focused in granting consigned (payroll) credit to federal, state and municipal public servants as well as retirees. Additionally, the Bank services the middle market private business segment with financial products (securitization) mostly structure using accounts receivable as a basis. As of December 2006, securitization products accounted for 20% of the Bank's portfolio. The Bank holds operations across Brazil. As of the first quarter of 2007, the Bank had 801 active representatives located in most Brazilian state and municipalities. * * * On Sept. 10, 2007, Moody's assigned a Ba2 foreign currency deposit rating for Banco Bonsucesso. BANCO ITAU: Eyes LatAm Add-On Acquisitions to Bolster Growth ------------------------------------------------------------ Banco Itau Holding Financeira SA's Chief Executive Officer Roberto Setubal told journalists in Santiago, Brazil, that the bank is targeting add-on acquisitions in Latin America where it already operates to bolster growth. Mr. Setubal commented to Business News Americas, "The bank is well positioned to make large acquisitions in foreign markets. The countries we already operate in are our priority." BNamericas relates that Mr. Setubal denied plans of buying a U.S. bank. Mr. Setubal told BNamericas that Banco Itau expects to increase lending by 25% in Brazil this year, surpassing the market's expected growth by up to four percentage points. According to BNamericas, lending growth in Brazil is expected to slow down this year as tax increases decreed earlier this year by the Brazilian federal government and the central bank will boost the cost of credit, although demand is expected to grow “strongly.” Mr. Setubal told BNamericas that Banco Itau was always seeking for purchase opportunities in Brazil, but deals “would likely come from niche markets rather than large acquisitions.” Banco Itau's return on equity will likely drop slightly this year from 32.1% last year, BNamericas states, citing Mr. Setubal. 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: To Lend Suez EUR380 Mil. for Estreito Plant ----------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has signed a loan accord with French energy group Suez for the 1.09 megawatt EUR1.2 billion Estreito hydro plant, Business News Americas reports. According to Suez, Banco Nacional will provide the firm with EUR380 million -- 80% of the firm's total investment costs for the plant -- in two tranches, 50% through a direct Banco Nacional loan and the remainder to be raised through these banks: -- Unibanco, -- Bradesco, -- ItauBBA, and -- Votorantim. BNamericas notes that Suez is building the plant with: -- iron ore miner Vale, -- aluminum producer Alcoa, and -- engineering firm Camargo Correa. About Suez Suez SA is a France-based group primarily engaged in the provision of electricity, natural gas, energy services, water and waste management. The Company has formed two divisions: Energy and Environment. The Energy division offers production, sale and trading of electricity; trading, transport and storage of natural gas; energy services, including on-site management on energy networks and utilities and facilities management, as well as operation, maintenance and development of power and natural- gas distribution networks, among others. The Environment business provides a number of services, such as production, treatment and distribution of drinking water; rainwater collection and treatment; waste collection, and rehabilitation of polluted industrial sites. The company operates through its subsidiaries, such as Genfina, Ondeo, Sopraner, Electrabel, Aguas Provinciales de Santa Fe. It is headquartered in Paris, France. 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. COMPANHIA BRASILEIRA: Moody's Reviews Ba3 Rating for Upgrade ------------------------------------------------------------ Moody's Investors Service has placed under review for possible upgrade the Ba3 foreign currency rating of Companhia Brasileira de Petroleo Ipiranga's step-up senior unsecured notes due August 2008. The rating action reflects Moody's view that the company will benefit from the ownership of Ultrapar Participacoes S.A. to improve its operating margins through more efficient cost control and synergies. In addition, Moody's believes that the credit strength of Ultrapar will have a positive impact on Companhia Brasileira de Petroleo Ipiranga's financial management, with potential reduction in funding costs, as demonstrated by the recent redemption of the company's local market debentures. The review process will focus on the potential for operational improvements at Companhia Brasileira de Petroleo Ipiranga, as well as on the level of support expected from Ultrapar, particularly with regard to the company's growth plans, taking into account that high capex and increased dividend payout have resulted in negative free cash flow in recent years. In March 2007 Ultrapar announced the acquisition of the fuel and lubricants distribution business of Ipiranga Group in the south and southeast regions of Brazil, represented by Companhia Brasileira de Petroleo Ipiranga, except for the company's operations in the mid-west, north and northeast regions of Brazil representing some 25% - 30% of its sales volume, which were acquired by Petroleo Brasileiro S.A. (aka. Petrobras) and by Distribuidora de Produtos de Petroleo Ipiranga (fuel and lubricants distributor in the State of Rio Grande do Sul and western part of Santa Catarina State. The change in control of the company and the spin-off of part of its assets to Petrobras are not trigger factors for the acceleration of the step-up notes' maturity, according to the terms and conditions of the notes. Headquartered in Sao Paulo, Ultrapar Participacoes S.A. is a company engaged in the distribution of fuel, the production of chemicals, as well as integrated solutions for special bulk cargoes. In 2007 Ultrapar reported consolidated net revenues of BRL19.9 billion, which include BRL14.9 billion in revenues from nine months of the operations acquired from the Ipiranga Group. Based in Rio de Janeiro, Brazil, Companhia Brasileira de Petroleo Ipiranga, is the second largest fuel distribution company in Brazil and a part of Grupo Ipiranga, with 2007 estimated revenues in excess of BRL23 billion. EMBRATEL PARTICIPACOES: Will Launch WiMax Network in 12 Cities -------------------------------------------------------------- Embratel Participacoes SA will launch WiMax network in 12 Brazilian state capitals, news daily Folha de S Paulo reports. Business News Americas relates that Embratel Participacoes will launch the network at its headquarters in Brasilia. The service will be available in: -- Belem, -- Belo Horizonte, -- Brasilia, -- Curitiba, -- Fortaleza, -- Goiania, -- Porto Alegre, -- Recife, -- Rio de Janeiro, -- Salvador, -- Sao Luis, and -- Sao Paulo. According to BNamericas, Embratel Participacoes invested BRL175 million in the project's first phase, which in its entirety is expected to cost BRL600 million. Embratel Participacoes' WiMax network would serve 61 cities by year-end, BNamericas states. Embratel Participacoes SA offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and Internet transmission, and is present all over the country with its satellite solutions. Embratel is the market leader in revenues with Long Distance, Domestic and International calls. * * * Embratel Participacoes is rated by Moody's: * local currency issuer rating -- B1; and * senior unsecured debt -- B2. ENERGISA SA: Seeks Regulator's Okay for Debenture Issuance ---------------------------------------------------------- Energisa SA has filed a request with securities regulator Comissao de Valores Mobiliarios for a planned issuance of BRL150 million non-convertible debentures, Business News Americas reports. BNamericas relates that Energisa expects to start the offering later this month once it gets the regulator's approval. Energisa will use the proceeds to prepay the first issue of commercial papers, BNamericas notes. Citibank and HSBC's brokerage units are “coordinating the operation,” BNamericas states. Energisa SA -- http://www.energisa.com.br/-- is a holding company that controls the electric energy distributors Sociedade Anonima de Eletrificacao da Paraiba (Saelpa), Empresa Energetica de Sergipe (Energipe), Companhia Forca e Luz Cataguazes- Leopoldina, Companhia Energetica da Borborema, and Companhia de Eletricidade de Nova Friburgo. The group serves approximately two million clients and has distributed 7,278 gigawatt hours in 2007 in the states of Paraiba, Sergipe, Minas Gerais, and Rio de Janeiro. The group's energy generation installed capacity is insignificant. The group's controlling shareholder is the Botelho family. * * * As reported in the Troubled Company Reporter-Latin America on March 24, 2008, Fitch Ratings assigned 'BB-' local and foreign currency issuer default ratings to Energisa S.A. Fitch said the outlook is stable. FIAT SPA: Discloses Results of 2008 Annual General Meeting ---------------------------------------------------------- Fiat S.p.A. disclosed that at the Annual General Meeting held last March 31, 2008, shareholders approved the 2007 Financial Statements and distribution of a gross dividend of: -- EUR0.40 per ordinary share, -- EUR0.40 per preference share and -- EUR0.555 per savings share, to be paid April 24 (ex-dividend date April 21). Board Appointment Shareholders also confirmed the appointment of Rene Carron to the Board of Directors, who was co-opted on July 24, 2007. Mr. Carron will serve for the remainder of the Board’s current term of office, which expires on the date of the 2009 Annual General Meeting called to approve the 2008 Financial Statements. Authorisation to Purchase and Dispose Shares The authorisation to purchase and dispose of own shares, either directly or through Group subsidiaries, was also renewed and, to the extent not yet exercised, the previous authorisation given by Shareholders on April 5, 2007 was revoked. Under the new authorisation, an aggregate total of shares, for all three classes combined, representing a maximum of 10% of share capital or a purchase value of EUR1.8 billion - including the EUR0.6 billion of Fiat shares held by the Company - may be purchased. Such purchases must take place within the next eighteen months, conform to applicable laws and regulations and the purchase price may not be a maximum of 10% higher or lower than the previous day’s official market price. Incentive Plan Finally, Shareholders approved the incentive plan passed by the Board of Directors on Feb. 26 which allows the periodic granting of up to a maximum of 4 million stock options or stock appreciation rights. As already announced, in terms of performance criteria, vesting period and exercise period (from 2011 to 2014), the structure of this plan is similar to the stock option plan approved Nov. 3, 2006. The strike price shall be equivalent to the arithmetic average of the official daily market price published by Borsa Italiana S.p.A. for the month preceding the grant date. Participants in the plan are those executives that hold a key role having a significant impact on business results and who have been recruited or promoted since the Nov. 3, 2006 stock option assignment or executives who have taken on increased responsibilities since that date or who may particularly warrant additional recognition. The Chief Executive Officer and other members of the Board of Directors are excluded from the plan. Turin, March 31, 2008. Financial Results The company also disclosed in its website that for the year 2007, the Group regained market shares in all sectors and exceeded its 2007 full-year targets. For 2007, the company reported net income EUR2.054 billion on revenues of EUR58.529 billion compared to net income of EUR1.151 billion on revenues of EUR51.832 for 2006. Trading profits also increased to EUR3.233 billion in 2007 from EUR1.951 billion in 2006. Fiat Group also said that it extinguished its net industrial debt in 2007 and closed the year with EUR355 million net cash. For 2006, the company had EUR1.773 billion in debt. With these, Fiat CEO Sergio Marchionne said that the company “is now ready to enter the next level that will transform it into a major global company.” For 2008, the company expects: -- revenues to exceed EUR60 billion, -- trading profit between EUR3.4 and EUR3.6 billion, -- net income between EUR2.4 and EUR2.6 billion euros, and -- net cash on hand of at least EUR1.5 billion. The targets we have set are based In 2007, trading profit totaled 3.2 billion euros, revenues reached 58.5 billion euros, while net industrial debt was extinguished (Dec. 31, 2006: negative by 1.8 billion euros). At Dec. 31, 2007, the Group had a net industrial cash position of 355 million euros. The targets, according to the company, are based on the conviction that the current turbulence in financial markets will have a limited impact on the real economy and, in the worst case, will be confined to the United States. About Fiat Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries Ba3 Corporate Family and Senior Unsecured ratings from Moody's Investors Service, which said the outlook is positive. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The compay also carries B short- term rating. S&P said the outlook is stable. FIAT SPA: Releases Details of Shares Purchase Program ----------------------------------------------------- Fiat S.p.A. disclosed the details of the relevant Purchase Program following the authorization given by Shareholders to purchase its own shares at the Annual General Meeting. The Program, aimed at the investment of liquidity and at servicing incentive plans, allows for the purchase of a total number of shares, for all three classes combined, not to exceed 10% of share capital and a total purchase value of EUR1.8 billion, which is to include EUR0.6 billion related to the Fiat shares already held by the company, and will be carried out on the regulated market as: -- it will end on Sept. 30, 2009 or once the maximum purchase value of EUR1.8 billion (including EUR0.6 billion related to Fiat shares already held by the Company) or a number of shares equivalent to 10% of share capital is reached; -- the maximum purchase price may not be a maximum of 10% higher than the previous day’s official market price; -- the maximum number of shares purchased daily shall not exceed 20% of the total daily trading volume for each class of shares. Should purchases be carried out, Fiat will daily communicate to the market and competent authorities the transactions it has executed, specifying the number of shares purchased, the average price, the total number of purchased shares as of the date of the communication and the total invested amount as of such date. As of March 31, 2008, Fiat owns 32,877,458 ordinary shares equivalent to 2.75% of the capital having voting rights. The shareholders’ authorization does not compel the company to make purchases and may be therefore executed only in part. The company will therefore be guided by the principle that it will only repurchase its shares if such repurchase is value accretive to the shareholders of Fiat, and subject to any negative repercussions a given repurchase may have on its credit ratings. About Fiat Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- is one of the largest industrial groups in Italy and the fourth largest European-based automobile manufacturer, with revenues of EUR33.4 billion in the first nine months of 2005. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries Ba3 Corporate Family and Senior Unsecured ratings from Moody's Investors Service, which said the outlook is positive. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The compay also carries B short- term rating. S&P said the outlook is stable. GERDAU AMERISTEEL: Joint Venture Acquires Century Steel Assets -------------------------------------------------------------- Gerdau Ameristeel Corporation said that Pacific Coast Steel, a majority owned Gerdau Ameristeel joint venture, has acquired all the assets of Century Steel, Inc., a reinforcing and structural steel contractor specializing in the fabrication and installation of structural steel and reinforcing steel products, for approximately US$152 million. Gerdau Ameristeel also announced that, concurrently with the acquisition of Century, Gerdau Ameristeel will pay approximately US$68 million to increase its equity participation in the Pacific Coast Steel joint venture to approximately 84%. Headquartered in Las Vegas, Nevada, Century Steel, Inc., operates reinforcing and structural steel contracting businesses in Nevada, California, Utah and New Mexico. With fabrication facilities that have an annual capacity in excess of 250,000 tons per year, the company participates in virtually all segments of the marketplace in the western United States. About Gerdau Ameristeel Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation (NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a mini-mill steel producer in North America. Through its vertically integrated network of 17 mini-mills, 17 scrap recycling facilities and 52 downstream operations, Gerdau Ameristeel serves customers throughout North America. The company's products are sold to steel service centers, steel fabricators, or directly to original equipment manufactures for use in a variety of industries, including construction, cellular and electrical transmission, automotive, mining and equipment manufacturing. Gerdau Ameristeel is a unit of Brazilian firm Gerdau SA. * * * As reported in the Troubled Company Reporter on Nov. 26, 2007, Moody's Investors Service affirmed the ratings of Gerdau Ameristeel Corporation including its 'Ba1' Corporate Family Rating and Probability of Default Rating, as well as the US$405 million Senior Unsecured Regular Bond issued. Moody's outlook for all ratings is stable. Moody's also affirmed Gerdau Brazil's (fictitious entity representing the Brazilian operations of Gerdau S.A. Comprising Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., and Gerdau Comercial de Acos SA) Ba1 Global Local Currency Corporate Family Rating. HEXION SPECIALTY: Dec. 31 Balance Sheet Upside-Down by US$1 Bil. ---------------------------------------------------------------- Hexion Specialty Chemicals Inc.'s balance sheet at Dec. 31, 2007, showed total assets of US$4.006 billion and total liabilities of US$5.392 billion, resulting to total shareholder's deficit of US$1.386 billion. The company incurred US$63 million net loss for the fourth quarter ended Dec. 31, 2007, versus US$55 million net loss in the fourth quarter of 2006. The company posted net loss of US$65 million in 2007 compared to a net loss of US$109 million in fiscal year 2006. Fiscal year 2007 results included US$98 million in higher interest and tax expenses compared to the prior year period. Fiscal year 2006 results included a US$121 million loss on the extinguishment of debt and a US$39 million net gain from the sale of businesses. Liquidity and Capital Resources At Dec. 31, 2007, the company has US$3.720 billion debt, including US$85 of short-term debt and capital lease maturities. In addition, it has US$199 million cash and cash equivalents. At Dec. 31, 2007, the company has additional borrowing capacity under its senior secured revolving credit facilities of US$215 million. The company has additional credit facilities at certain domestic and international subsidiaries with various expiration dates through 2008. As of Dec. 31, 2007, it has US$71 available for borrowing under these facilities. Transaction Update Hexion and Huntsman Corporation have agreed to allow additional time for the Federal Trade Commission to review the proposed merger of the two companies. As a result, the merger is not expected to be completed before May 3. To accommodate the extension, Hexion has also given notice to Huntsman that on April 5, it will exercise its option to extend the Termination Date under the Merger Agreement for 90 days, and thus, if the conditions to Hexion's extension right are met on April 5, the termination date under the Merger Agreement will be extended until July 4, 2008. "We are fully cooperating with regulatory agencies and will continue to work closely with Huntsman and the agencies in order to obtain the regulatory approvals required to complete the merger," Mr. Morrison said. Hexion disclosed on July 12, 2007, that it had entered into a definitive agreement to acquire Huntsman Corporation in an all- cash transaction valued at approximately US$10.6 billion, including the assumption of debt. Under the terms of the Merger Agreement, the cash price per share to be paid by Hexion will increase each day beginning on April 5, 2008, through consummation of the merger at the equivalent of approximately 8% per annum, less any dividends or distributions declared or made. The transaction was approved by Huntsman shareholders on Oct. 16, 2007, and is subject to customary closing conditions, including regulatory approval in the U.S. and several other countries. About Hexion Specialty Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -- http://www.hexionchem.com/-- makes thermosetting resins, formaldehyde and other forest product resins, epoxy resins, and raw materials for coatings and inks. The company has locations in Singapore, China, Australia, Netherlands, and Brazil. * * * Moody's Investor Service placed Hexion Specialty Chemicals Inc.'s senior secured debt rating at 'B3', long term corporate family and probability of default ratings at 'B2' in July 2007. The ratings still hold to date. REALOGY CORP: S&P Retains 'B' Issue-level Rating on Senior Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its recovery rating on Realogy Corp.'s senior unsecured debt to '4', indicating that lenders can expect average (30% to 50%) recovery in the event of a payment default, from '3'. The issue-level rating on these securities remains unchanged at 'B' (at the same level as the 'B' corporate credit rating on the company). The recovery rating revision reflects Standard & Poor's reduced cash flow expectations for Realogy, which also resulted in S&P's outlook change on the company to negative from stable. Ratings List Realogy Corp. Corporate Credit Rating B/Negative/-- Rating Revised To From -- ---- Realogy Corp. Senior Unsecured B B Recovery Rating 4 3 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. * BRAZIL: Electric Firms to Withstand 2008 Challenges, S&P Says --------------------------------------------------------------- Brazilian electric power companies remain on track in strengthening their financial profiles following the post-2001 rationing, according to Standard & Poor's Ratings Services report on RatingsDirect titled After Recent Recovery, Brazilian Electric Sector's Liquidity Should Withstand Challenges In 2008. "While the risks in the past strongly reflected volatility emanating from regulation and other country-related risks, the current credit crunch, consolidation or capacity expansion ventures, and higher average electricity prices during 2008 and likely in 2009 present new challenges to the sector's liquidity," said S&P's credit analyst Marcelo Costa. However, after two years of active liability management programs, most of the Brazilian electric utilities have manageable debt amortization profiles, carry more cash holdings, and benefit from access to domestic long-term credit both from the banks and public debt markets. As of December 2007, 30 companies analyzed in this report had cash holdings equivalent to slightly more than 100% of their short-term balance, evidencing their more comfortable liquidity situation. ========================== C A Y M A N I S L A N D S ========================== BELAY OFFSHORE: Proofs of Claim Filing is Until April 6 ------------------------------------------------------- Belay Offshore, Ltd.'s creditors have until April 6, 2008, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Belay Offshore's shareholder decided on March 6, 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 Telephone: (345) 914-6305 BRASKEM CAYMAN: Appoints Joel Benedicto as Liquidator ----------------------------------------------------- Braskem Cayman Limited's shareholders have appointed Joel Benedicto as the company's liquidator. Mr. Benedicto will accept proofs of claims from Braskem Cayman's creditors. 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. Braskem Cayman's shareholders agreed on March 14, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Joel Benedicto Junior of Avenida das Nacoes Unidas, 4.777 Sao Paulo – SP, Brazil D-LINK CHINA: Proofs of Claim Filing is Until April 7 ----------------------------------------------------- D-Link China (Cayman) Inc.'s creditors have until April 7, 2008, to prove their claims to An Ping Chen, 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. D-Link China's shareholders agreed on Feb. 27, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: An Ping Chen No. 289, Xinhu 3rd Road Neihu District, Taipei City 114 Taiwan Telephone: 886-2-66000123 Fax: 886-2-27900977 DYOLL INSURANCE: Proofs of Claim Filing is Until April 7 -------------------------------------------------------- DYOLL Insurance Company Limited's creditors have until April 17, 2008, to prove their claims to John Lee and Kenneth Krys, 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. Messrs. Lee and Kryss will declare a Third Interim Dividend of 13% to Dyoll Insurance’s creditors commencing on April 7, 2008, and continuing for a period of six months. This is in addition to the First and Second Interim Dividend Payments. Only claims that have been admitted by the joint liquidators will be considered for participation in the Third Interim Dividend. DYOLL Insurance's shareholders agreed on Feb. 27, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. Claims must be submitted to: Dyoll Insurance Company Limited 4 Duke Street (Second Floor) Kingston 5, Jamaica or Dyoll Insurance Company Limited P.O. Box 31237, Grand Cayman KY1-1205 Cayman Islands Contact for inquiries: Claims Department Dyoll Insurance Company Limited Phone: (876) 967- 5171-2/(876) 948-8081 or Krys & Associates Attn: Deon Myles Phone: (345) 947-4700 MARATHON POWER: Proofs of Claim Deadline is April 17 ---------------------------------------------------- Marathon Power Nicaragua Limited's creditors have until April 17, 2008, to prove their claims to Yvonne Kunetka, 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. Marathon Power's shareholder decided on Feb. 28, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Yvonne Kunetka Marathon Oil Company 5555 San Felipe Street Houston, Texas 77056-2799 USA MARATHON POWER ETA: Proofs of Claim is Until April 17 ----------------------------------------------------- Marathon Power ETA Limited's creditors have until April 17, 2008, to prove their claims to Yvonne Kunetka, 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. Marathon Power's shareholder decided on Feb. 28, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Yvonne Kunetka Marathon Oil Company 5555 San Felipe Street Houston, Texas 77056-2799 USA MARGHERITA LIMITED: Proofs of Claim Filing Deadline is April 7 -------------------------------------------------------------- Margherita Limited's creditors have until April 7, 2008, to prove their claims to Condor Nominee Limited, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Margherita's shareholder decided on Feb. 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Condor Nominee Limited c/o Barclays Private Bank & Trust (Cayman) Limited 4th Floor FirstCaribbean House 25 Main Street, George Town Grand Cayman KY1-1106 Cayman Islands PACTUAL CAPITAL: Proofs of Claim Deadline is April 17 ----------------------------------------------------- Pactual Capital International's creditors have until April 17, 2008, to prove their claims to Reid Services Limited, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Pactual Capital's shareholder decided on Feb. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Reid Services Limited Clifton House, 75 Fort Street P.O. Box 1350, Grand Cayman KY1-1108 Cayman Islands WESTWAYS FUNDING: Proofs of Claim Filing is Until April 6 --------------------------------------------------------- Westways Funding VII, Ltd.'s creditors have until April 6, 2008, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Westways Funding's shareholder decided on March 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 WESTWAYS FUNDING X: Proofs of Claim Filing Deadline is April 6 -------------------------------------------------------------- Westways Funding X, Ltd.'s creditors have until April 6, 2008, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Westways Funding's shareholder decided on March 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 ========= C H I L E ========= BANCO ITAU: Unit to Issue US$50MM Subordinated Bullet Bonds ----------------------------------------------------------- Banco Itau Holding Financeira SA's Itau Chile will issue US$50 million in 10-year subordinated bullet bonds to fund its growth this year, Business News Americas reports. BNamericas relates that Itau Chile will also carry out a US$50 million capital increase. Itau Chile's chairperson Ricardo Marino told journalists that the bank will also capitalize US$39 million or 100% of the profits in 2007. Itau Chile wants to use the funds to finance loan growth, enter the asset management and real estate project finance businesses, and strengthen its leasing and factoring activities, BNamericas says, citing Mr. Marino. BNamericas notes that Itau Chile increased loans by 32.9% to CLP1.94 trillion in 2007, reaching a 3% market share. Itau Chile's Chief Executive Officer Boris Buvinic told BNamericas that the bank will increase loans by 20% in 2008 to have a 3.2% market share by year-end. It will launch 10 branches to reach 70 countrywide and continue concentrating on the high-end retail segment. 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. =============== C O L O M B I A =============== CHIQUITA BRANDS: May Have to Pay US$780MM for Terrorist Victims --------------------------------------------------------------- Chiquita Brands International may have to pay over US$780 million if found guilty of its involvement in the murders of missionaries killed by Colombian terrorists, Erik Larson and Joshua Goodman at Bloomberg News reports. As reported in the Troubled Company Reporter-Latin America on March 14, 2008, Chiquita Brands was sued at the U.S. District Court for the Southern District of Florida over the killings of five American missionaries by Revolutionary Armed Forces of Colombia in the 1990s. The victims' families claimed that Chiquita Brands' payments to the terrorists were a contributing factor for the deaths of five members of New Tribes Mission because the company helped finance the group's operations at the time it occurred. The lawsuit seeks unspecified damages on behalf of the victims' families. Bloomberg News relates that Chiquita Brands pleaded guilty last year for paying Colombian paramilitary militias US$1.7 million from 1997 to 2004. Chiquita Brands agreed to settle the charges by paying a US$25 million fine. It said at the time that the payments were made by a former subsidiary because of threats to the safety of its employees. Jean-Charles Brisard, a Switzerland-based consultant on terrorism financing who isn't involved in the case, commented to Bloomberg News, “Chiquita's admission that they paid these groups is half the battle. All that's left is for the plaintiffs to prove the much easier claim that the company knew or could've known the FARC [terrorist group] was planning to carry out crimes against Americans.” “Litigation risk is something we keep an eye on as events occur,” Standard & Poor's credit analyst Alison Sullivan told Bloomberg News. 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. ECOPETROL: Wants to Increase Oil Output to 700,000 Barrels/Day -------------------------------------------------------------- Ecopetrol wants to increase oil production to 700,000 barrels a day by 2015, Dow Jones Newswires reports, citing oil licensing agency ANH chief Armando Zamora. Mr. Zamora told Dow Jones that Ecopetrol will then increase the output to one million barrels per day by 2020. Improved security after years of civil conflict has helped foreign investment in the nation's energy sector to grow, Dow Jones states. Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America 's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. Ecopetrol produced 385,000 barrels a day of oil and gas in 2006 and has 330,000 barrels a day of refining capacity, according to the company's Web site. In 2005 it produced about 60 percent of Colombia 's daily output. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A. 's foreign and local currency issuer default ratings at 'BB+' and 'BBB-', respectively. ================== C O S T A R I C A ================== HERBALIFE LTD: DA Davidson Puts Buy Rating on Firm's Shares ----------------------------------------------------------- DA Davidson analysts have assigned a "buy" rating on Herbalife Ltd.'s shares, Newratings.com reports. Newratings.com relates that the 12-18 month target price for Herbalife's shares was set at US$60. DA Davidson said in a research note that Herbalife’s concentration on shareholder returns “is impressive.” Newratings.com notes that Herbalife raised its earnings per share guidance for the fiscal year 2008 to up to US$3.30, from up to from US$3.23. “Herbalife’s sales are diversified, insulating the company from consumer weakness in any one particular market,” Newratings.com states, citing DA Davidson. Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- is a global network marketing company that sells weight management, nutritional supplement, energy & fitness products and personal care products through a network of over 1.7 million independent distributors where the company currently sells the products through retail stores and an employed sales force. The company reports in the U.S., Canada, Jamaica, Mexico, Costa Rica, El Salvador, Panama, the Dominican Republic, Brazil, Europe, Africa, New Zealand and Australia, among others. Herbalife was founded in 1980 and is based in Grand Cayman, Cayman Islands. * * * As reported in the Troubled Company Reporter on April 5, 2007, Standard & Poor's Ratings Services said that its 'BB+' corporate credit rating on Herbalife Ltd. remains on CreditWatch with negative implications following the company's announcement that the company's board of directors has rejected a bid to be acquired by Whitney V L.P. The board indicated that although it views Whitney's bid as too low, it would consider an improved offer. =================================== D O M I N I C A N R E P U B L I C =================================== CAP CANA: Clarifies Erroneous Information in Lawsuit Against CEO ---------------------------------------------------------------- Cap Cana S.A. disclosed that information published earlier this week relating to the Gomez Pion lawsuit against the company was incorrect and that no arrest warrant had been issued by a Dominican land court against Cap Cana's President and Chief Executive Officer, Ricardo Hazoury for allegedly failing to appear at a court hearing. Mr. Gomez Pion has filed various claims against Cap Cana and its executive that in essence seeks payment of the equivalent of approximately US$8,000,000 for certain "improvements" that once existed on one of the parcels that currently comprise part of the the company's property. These "improvements" consisted principally of items such as barbed wire fences, fence posts, plants, and grass for cattle grazing. On at least 12 separate occasions, Dominican courts have issued decisions on the Gomez Pion matter in favor of Cap Cana that effectively dismissed the suits brought by Mr. Gomez Pion. In the latest allegations in respect of this situation, incorrect information was provided to the press suggesting that Mr. Hazoury had not appeared in court for a previously scheduled hearing. The circumstances of this proceeding, as provided under Dominican Land Law, did not require Mr. Hazoury's presence. Notwithstanding this fact, Mr. Hazoury did appear before the court later that same day in an attempt to resolve any lingering confusion in the matter and during the hearing the court dismissed the claims by Mr. Gomez Pion regarding Mr. Hazoury's failure to appear. It is currently expected that the substantive claims in this matter that have been brought once more before a Dominican court by Mr. Gomez Pion will be concluded by next week and that the court will issue a decision regarding these claims yet again. Cap Cana currently expects that the court will once more decide in its favor in connection with the claims brought in this case. Cap Cana also reported that no actions had been taken by any court in the Dominican Republic or elsewhere that has the effect of restricting Mr. Hazoury's ability to travel as had been previously reported. About Cap Cana Located on the easternmost tip of the Dominican Republic, Cap Cana is being developed as a multi-use luxury resort in the Caribbean with world-class beaches, championship golf courses, yachting facilities and other leisure amenities. The property consists of over 46 square miles (119.9 square kilometers) of land, including a five-mile (eight kilometer) coastline and 2.2 miles (3.5 kilometers) of one of the most pristine beaches in the region. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings has affirmed the 'B' rating on Cap Cana, S.A.'s US$250 million senior secured notes. In addition, Fitch has assigned a preliminary rating of 'B-' to the expected issuance of US$500 million in additional senior secured notes. Fitch's affirmation on the existing US$250 million notes contemplates a change to the terms of certain covenants in the indenture relating to the incurrence of additional debt. It also reflects the expected increase in Cap Cana's leverage after the proposed US$500 million issuance of additional senior secured notes. PRC LLC: Files Disclosure Statement Supporting Chapter 11 Plan -------------------------------------------------------------- PRC, LLC; Panther/DCP Intermediate Holdings, LLC; PRC B2b, LLC; Access Direct Telemarketing, Inc.; and Precision Response of Pennsylvania, LLC delivered to the U.S. Bankruptcy Court for the Southern District of New York on April 1, 2008, a Disclosure Statement in support of their Joint Plan of Reorganization. The Debtors filed their proposed Plan on Feb. 12, 2008, and simultaneously, asked the Court for permission to file an accompanying Disclosure Statement at a later date. PRC LLC Chief Restructuring Officer Stephen R. Dube relates that the Disclosure Statement provides a summary of the Plan; contain important information concerning the classification of Claims and Pre-confirmation Equity Interests for voting purposes and the tabulation of votes; and narrates the events that led to the Debtors' bankruptcy filing. The Disclosure Statement describes the distributions contemplated for each of the Debtors and their creditors under the Plan, including the approximate allowed amount for each Class of Claims: Class Designation Approximate Allowed Amt. ----- ----------- ------------------------ N/A Administrative Expense US$145,000, plus any Claims amounts incurred and payable in the ordinary &nb