T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, April 9, 2008, Vol. 9, No. 70 Headlines A R G E N T I N A ALITALIA SPA: May Lose License if Cash Hike Remains Unclear ARIANNA SA: Proofs of Claim Filing Deadline is May 19 ARTECO CONST: Proofs of Claim Filing is Until June 4 AYU SA: Proofs of Claim Filing Deadline is May 13 DESARROLLOS DE ACUERDOS: Trustee to Verify Claims Until May 26 REVLON INC: Net Loss Slides to US$16 Mil. in Year ended Dec. 31 SANIDAD SIGLO: Proofs of Claim Filing Deadline is May 1 VIEJO INDECENTE: Proofs of Claim Filing Deadline is May 12 B E R M U D A GROVE MANAGEMENT: Proofs of Claim Filing Deadline is May 1 B O L I V I A VISTA GOLD: Sells Unit & Bolivian Project to Republic Gold B R A Z I L BANCO CRUZEIRO: Inks Swap Contracts with UBS Pactual BANCO DAYCOVAL: Will Repurchase Up to 10% of Preferred Shares BRASKEM SA: Copesul Goes Offline for Planned Maintenance CONSTRUTORA NORBERTO: Selling US$200 Million Notes Due 2017 CONSTRUTORA NORBERTO: Fitch Puts 'BB+' Rating on 10-Year Notes LOCALIZA RENT: S&P Sees Growth in Brazilian Car Rental Industry TAM SA: Joins 10 Firms to Develop Electronic Waybill in Brazil TELEMAR NORTE: Completes Stock Purchase Agreement with Vivo * BRAZIL: Fitch Says Banks Well Positioned for Downturn Pressure C A Y M A N I S L A N D S CLEARWATER CAPITAL: Proofs of Claim Filing is Until April 12 INVESTCORP MOODY: Sets Final Shareholders Meeting for April 11 INVESTCORP MOODY T5: Final Shareholders Meeting is on April 11 MIYAKODORI CAPITAL: Proofs of Claim Filing Deadline is April 13 MOUNTAIN FINANCE: Proofs of Claim Filing Deadline is April 11 MTC HOLDING: Proofs of Claim Filing is Until April 14 PALLAS GRADE: Sets Final Shareholders Meeting for April 10 RUTHERFORD GRADE: To Hold Final Shareholders Meeting on April 10 SOUND ENERGY: Sets Final Shareholders Meeting for April 10 SUNDAY SILENCE: Proofs of Claim Filing Deadline is April 13 SUTTER INVESTMENT: Final Shareholders Meeting is on April 10 C H I L E AES GENER: POSCO Engineering to Build Plants for Firm GMAC LLC: Moody's Comments on US$1.2 Bln Cap Injection to ResCap C O L O M B I A ROO GROUP: Launches New Brand; Renames Firm to KIT Digital D O M I N I C A N R E P U B L I C ALCATEL-LUCENT SA: Wins US$367.4 Bln Patent Case vs. Microsoft E C U A D O R PETROECUADOR: Poised to Sign 1st Batch of Pacts With Oil Firms PETROECUADOR: Sells 9.36 Million Barrels of Crude PETROECUADOR: May Terminate Petrobras' Oil Extraction Contract G U A T E M A L A BRITISH AIRWAYS: Will Reduce Standard Travel Agent Commission J A M A I C A DIGICEL LTD: Names David Hunter as CEO for Jamaica Unit DYOLL GROUP: Denies Overpayment of J$117MM in Management Fees NAT'L COMMERCIAL: Court to Hear Olint's Appeal on Bank's Lawyer NATIONAL WATER: Illegal Connections Must Stop by April 28 M E X I C O AMERICAN AIRLINES: Unit Opens Flight Routes to 15 Mexican Cities BANCO DEL BAJIO: Uses Surecomp's Trade Finance Software FOAMEX INT'L: Dec. 30 Balance Sheet Upside-Down by US$298 Mil. EMPRESAS ICA: CPH Closes US$910 Mln LT Loan for La Yesca Project ING BANK (MEXICO): Moody's Assigns D+ Bank Fin'l Strength Rating MERISANT COMPANY: Moody's Withdraws 'B3' Ratings on Planned Loan MOVIE GALLERY: Voting Results Show Overwhelming Support for Plan RESIDENTIAL CAPITAL: Moody's Rtgs. Unmoved by Capital Injection SONIC CORP: Gabriel Tsampalieros Named to Board of Directors SR TELECOM: Reports US$132.4 Mil. Net Loss in Year Ended Dec. 31 SR TELECOM: Closes US$6 Million Sale of Asset to Group Legasse TELTRONICS INC: Dec. 31 Balance Sheet Upside-Down by US$4.5 Mil. * MEXICO: Fitch Reviews Toll Road Ratings Over Flat Business Tax P A N A M A CHIQUITA BRANDS: Inks New $350 Million Credit Facility CHIQUITA BRANDS: Morten Arntzewn Resigns as Board Director P E R U GRAN TIERRA: To Commence Trading on the American Stock Exchange P U E R T O R I C O MAAX HOLDINGS: Moody's Withdraws Junk Ratings for Biz Reasons SIMMONS COMPANY: S&P Changes Outlook to Negative; Keeps 'B' Rtg. V E N E Z U E L A CEMEX SAB: Open to Talks on Venezuelan Takeover CA LA ELECTRICIDAD: Settles Tender Offer & Consent Solicitation HARVEST NATURAL: Board Member John Clarke Says No to Re-Election PETROLEOS DE VENEZUELA: Eyes 5MM Barrels/Year from Joint Venture PETROLEOS DE VENEZUELA: Mulls Programs to Explore & Produce Oil PETROLEOS DE VENEZUELA: Payment to Fonden to be Taken from Tax X X X X X X * Latin America Sees Brazil as First MPI 3 Country, Fitch Says - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: May Lose License if Cash Hike Remains Unclear ----------------------------------------------------------- Ente Nazionale per l'Aviazione Civile, Italy's regulatory body of air transport activities, may revoke Alitalia S.p.A.'s license in the next three weeks if the national carrier cannot come up with a recapitalization plan, Bloomberg News reports citing ENAC chief Vito Riggio. Mr. Viggio said ENAC will meet with officials from Alitalia and the finance ministry to ask for guarantees that the carrier could still meet financial obligations. "We are very concerned now as the only chance of a capital injection is fading away," Mr. Riggio told Bloomberg News, adding that ENAC can revoke Alitalia's license if it is in "permanent financial difficulty and has no clear prospects." Mr. Viggio commented to Bloomberg News that if Alitalia is placed into special administration, there would be repercussions on the local market, since the carrier controls about half of the Italian air transportation market. Mr. Viggio, however, warned, "If they don't convince us, we'll have to take action." As reported in the TCR-Europe on April 3, 2008, Alitalia S.p.A., labor unions, professional associations, and Air France-KLM SA stopped negotiations after failing 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. Alitalia's board said it would review it financial options before deciding today, April 8, 2008, whether to continue its operations or to file for bankruptcy proceedings. Italian Finance Minister Tommaso Padoa-Schioppa said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. 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. 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. ARIANNA SA: Proofs of Claim Filing Deadline is May 19 ----------------------------------------------------- Jose Carriquiry, the court-appointed trustee for Arianna SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 19, 2008. Mr. Carriquiry will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 20 in Buenos Aires, with the assistance of Clerk No. 39, 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 Arianna 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 Arianna's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Carriquiry is also in charge of administering Arianna's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Arianna SA Catamarca 295 Buenos Aires, Argentina The trustee can be reached at: Jose Carriquiry Loyola 660 Buenos Aires, Argentina ARTECO CONST: Proofs of Claim Filing is Until June 4 ---------------------------------------------------- Aldo Emilio Cambiasso, the court-appointed trustee for Arteco Const. SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 4, 2008. Mr. Cambiasso 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. 3, 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 Arteco Const. 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 Arteco Const.'s accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Cambiasso is also in charge of administering Arteco Const.'s assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Arteco Const. SA Asuncion 4073 Buenos Aires, Argentina The trustee can be reached at: Aldo Emilio Cambiasso Cerrito 1070 Buenos Aires, Argentina AYU SA: Proofs of Claim Filing Deadline is May 13 ------------------------------------------------- Gimena Botana, the court-appointed trustee for Ayu SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 13, 2008. Ms. Botana will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 20 in Buenos Aires, with the assistance of Clerk No. 40, 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 Ayu 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 Ayu's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Botana is also in charge of administering Ayu's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Ayu SA Scalabrini Ortiz 234 Buenos Aires, Argentina The trustee can be reached at: Gimena Botana Tucuman 540 Buenos Aires, Argentina DESARROLLOS DE ACUERDOS: Trustee to Verify Claims Until May 26 -------------------------------------------------------------- Estudio Sadofschi y Uruena, the court-appointed trustee for Desarrollos de Acuerdos Comerciales SA's reorganization proceeding, will be verifying creditors' proofs of claim until May 26, 2008. Estudio Sadofschi will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 8 in Buenos Aires, with the assistance of Clerk No. 16, 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 Desarrollos de Acuerdos 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 Desarrollos de Acuerdos' accounting and banking records will be submitted in court on Aug. 11, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on March 16, 2009. The debtor can be reached at: Desarrollos de Acuerdos Comerciales SA Cordoba 669 Buenos Aires, Argentina The trustee can be reached at: Estudio Sadofschi y Uruena Riobamba 496 Buenos Aires, Argentina REVLON INC: Net Loss Slides to US$16 Mil. in Year ended Dec. 31 --------------------------------------------------------------- Revlon Inc. released financial results for the full year and fourth quarter ended Dec. 31, 2007. Net loss in the full year 2007 was US$16.1 million compared to a net loss of US$251.3 million in the full year 2006. Adjusted EBITDA in the full year 2007 was US$224.5 million, compared to an Adjusted EBITDA of US$78.2 million last year. Operating income was US$121.0 million in the full year 2007, versus an operating loss of US$50.2 million in the full year 2006. In the full year 2006, Vital Radiance, executive severance and restructuring expenses unfavorably affected the company's operating income and net loss by US$145.1 million and Adjusted EBITDA by US$122.9 million. Results for the full year 2007 included restructuring expenses of US$7.3 million. Excluding the impact of these items, the improvements in operating income, net loss and Adjusted EBITDA were driven by net sales increases, continued benefits from restructuring actions and ongoing cost controls. "We are executing our strategy and our financial results in 2007 were our best in many years, David Kennedy, Revlon president and chief executive officer, said. "We generated US$224.5 million in Adjusted EBITDA and our negative free cash flow was US$13.8 million. Our improved financial performance was driven by increased net sales, continued benefits from our restructuring actions and ongoing control of our costs." "We fully recognize the need to further improve our performance, and enter 2008 with a continued focus on increasing the value of our company by building the Revlon brand and driving towards both profitable sales growth and positive free cash flow," Mr. Kennedy added. Fourth Quarter Results Net income in the fourth quarter of 2007 was US$40.8 million compared with a net loss of US$5.5 million in the fourth quarter of 2006. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization or EBITDA in the fourth quarter of 2007 was US$106.3 million, compared to an Adjusted EBITDA of US$108.2 million in the same period last year. Operating income was US$80.4 million in the fourth quarter of 2007, versus operating income of US$70.1 million in the fourth quarter of 2006. In the fourth quarter 2006, Vital Radiance and restructuring expenses unfavorably affected the company's operating income and net loss by US$20.8 million and Adjusted EBITDA by US$9.7 million. The fourth quarter of 2007 included restructuring expenses of US$0.4 million. Excluding the impact of these items, the decreases in operating income and Adjusted EBITDA were largely attributable to increased brand support and higher performance-based incentive compensation. Net income was reduced by the same factors that affected Operating Income and Adjusted EBITDA. Net income in the fourth quarter of 2006 included a charge of US$23.1 million related to the early extinguishment of debt. Cash Flow and Balance Sheet Cash flow provided by operating activities in the full year 2007 was US$3.8 million, compared to cash flow used in operating activities of US$138.7 million in the full year 2006. This improvement was due to a lower net loss and decreased permanent display spending, partially offset by changes in net working capital. At Dec. 31, 2007, the company's balance sheet showed total assets of US$889.3 million, total liabilities of US$1,971.3 million and total stockholders' deficiency of US$1,082 million. About Revlon Inc. Headquartered in New York City, Revlon Inc. (NYSE:REV) -- http://www.revlon.com/-- conducts its business through its direct wholly owned operating subsidiary, Revlon Consumer Products Corporation and its subsidiaries, which manufactures, markets and sells an array of cosmetics, skincare, fragrances, beauty tools, hair color and personal care products. The company is a mass-market cosmetics brand. The company's Latin American operations are located in Argentina, Brazil, Chile, Mexico and Venezuela. * * * The company's Sept. 30, 2007, consolidated balance sheet showed US$882.4 million in total assets and US$2.03 billion in total liabilities, resulting in a US$1.15 billion in total shareholders' deficit. Net loss in the third quarter of 2007 was US$10.4 million, compared with a net loss of US$100.5 million in the third quarter of 2006. SANIDAD SIGLO: Proofs of Claim Filing Deadline is May 1 ------------------------------------------------------- Silvia Fernandina, the court-appointed trustee for Sanidad Siglo XXI SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 13, 2008. Ms. Fernandina will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 49, 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 Sanidad Siglo 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 Sanidad Siglo's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Fernandina is also in charge of administering Sanidad Siglo's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Sanidad Siglo XXI SRL Tucuman 1539 Buenos Aires, Argentina The trustee can be reached at: Silvia Fernandina Asuncion 4642 Buenos Aires, Argentina VIEJO INDECENTE: Proofs of Claim Filing Deadline is May 12 ---------------------------------------------------------- Carlos Adalberto Perez, the court-appointed trustee for Viejo Indecente SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 12, 2008. Mr. Perez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 14 in Buenos Aires, with the assistance of Clerk No. 28, 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 Viejo Indecente 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 Viejo Indecente's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Perez is also in charge of administering Viejo Indecente's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Viejo Indecente SRL Thames 1907/07 Buenos Aires, Argentina The trustee can be reached at: Carlos Adalberto Perez Larrea 785 Buenos Aires, Argentina ============= B E R M U D A ============= GROVE MANAGEMENT: Proofs of Claim Filing Deadline is May 1 ---------------------------------------------------------- Grove Management Limited's creditors have until May 1, 2008, to prove their claims to Carolynn D. Hiron, 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. Grove Management's shareholder decided on March 31, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Carolynn D. Hiron Olympia Capital (Bermuda) Limited Williams House, 20 Reid Street Hamilton, Bermuda ============= B O L I V I A ============= VISTA GOLD: Sells Unit & Bolivian Project to Republic Gold ---------------------------------------------------------- Vista Gold Corp. reported the sale of its wholly-owned subsidiary Vista Gold (Antigua) Corp. to Republic Gold Limited. Vista Gold Antigua indirectly held the company's interest in the Amayapampa gold project in Bolivia. Under the terms of the transaction, Republic Gold has agreed to pay Vista Gold US$3 million in three payments of US$1 million. The first of these payments is due and payable upon the start of commercial production at Amayapampa followed by US$1 million payments on each of the first and second anniversaries of the start of commercial production. In addition, Republic Gold has agreed to pay the company a net smelter return royalty (NSR) on the gold produced by or on behalf of Republic Gold from the Amayapampa project in varying percentages depending on the price of gold per ounce. When gold is between US$500.01 and US$650 per ounce, a 2% NSR is payable, when the price of gold is between US$650.01 and US$750 per ounce, a 3% NSR is payable, and when the price of gold is US$750.01 per ounce and above, the NSR will be 3.5%. The NSR is capped at 720,000 gold equivalent ounces and no NSR payments are due to Vista if the gold price is below US$500 per ounce. Vista Gold will retain a first right of refusal in the event Republic Gold decides to sell the property and will also retain a right to re-acquire the property if Republic Gold or Vista Gold Antigua have not moved to close a financing under a project financing facility within five years. Vista's President and Chief Operating Officer, Fred Earnest stated, "We view the sale of Amayapampa as a strategic divestiture that will allow us to concentrate our financial and personnel resources on developing our larger Paredones Amarillos (Mexico) and Mt. Todd (Australia) projects. Republic has been involved in the Amayapampa project in recent years, and we believe that it has the experience and technical team to expeditiously place the project into production to take advantage of current gold price levels." Additionally, Vice President Business Development, Howard Harlan, has announced that he intends to retire after 40 years in the mining industry and has tendered his resignation effective April 4, 2008. Executive Chairman and Chief Executive Officer, Mike Richings said, "on behalf of the Board and all his friends at Vista, I would like to wish him a long and happy retirement and to thank him for his hard work, loyalty and his many valuable contributions to Vista. Howard has had some of the more difficult and challenging tasks we have faced -- he has always tackled them enthusiastically and with determination. We look forward to continuing our relationship in the future as he has indicated that he will be available to assist us on a part- time basis as a consultant." About Vista Gold Corp. Vista Gold Corp. (Amex: VGZ; TSX), based in Littleton, Colorado, evaluates and acquires gold projects with defined gold resources. Additional exploration and technical studies are undertaken to maximize the value of the projects for eventual development. The corporation's holdings include the Maverick Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects and Hycroft mine, all in Nevada, the Long Valley project in California, the Yellow Pine project in Idaho, the Paredones Amarillos and Guadalupe de los Reyes projects in Mexico, the Amayapampa project in Bolivia, and the Awak Mas deposit in Indonesia. * * * As reported in the Troubled Company Reporter on April 1, 2004, Vista Gold's independent auditors expressed doubt about the company's ability to continue as a going concern after reviewing its financial statements for the year ending Dec. 31, 2003. Vista Gold reported US$14.2 million net loss in the year ended Dec. 31, 2007, US$2.2 million net loss for the three-month period ended Sept. 30, 2007, and US$3.23 million net loss for three- month period ended June 30, 2007. =========== B R A Z I L =========== BANCO CRUZEIRO: Inks Swap Contracts with UBS Pactual ---------------------------------------------------- Banco Cruzeiro do Sul has signed swap contracts with UBS Pactual. According to Banco Cruzeiro, each contract involves BRL50 million with a maximum tenor of 365 days. Business News Americas says that Banco Cruzeiro's free float of 81.1% of preferred shares won't be affected by the UBS Pactual transaction. Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul SA (Bovespa - CZRS4) -- http://www.bcsul.com.br/-- is a private- sector multiple bank with operations in the consumer segment, through paycheck-deductible loans to public employees and social security beneficiaries, and in the corporate segment, offering middle-market companies short-term loans usually backed by receivables. The bank's core business is lending to civil servants, with payments automatically deducted from payrolls. * * * As reported in the Troubled Company Reporter-Latin America on March 27, 2008, Moody's Investors Service assigned a Ba1 long- term foreign currency debt rating to Banco Cruzeiro do Sul S.A.'s existing US$30,000,000 senior unsecured notes due in May 2010. Moody's said the outlook on the rating is stable. BANCO DAYCOVAL: Will Repurchase Up to 10% of Preferred Shares ------------------------------------------------------------- Banco Daycoval will buy back up to 10% of preferred shares from April 7, 2008, through April 3, 2009. Business News Americas relates that Banco Daycoval could repurchase 6.43 million preferred shares for BRL74.5 million based on the bank's share prices of BRL11.59 each as of April 7, 2008. BNamericas notes that UBS Pactual, Itau, and Concordia will be the intermediaries. Banco Daycoval raised some BRL1.09 billion when it went public in July 2007. Its net profit increased 104% to BRL206 million in 2007, compared to 2006, BNamericas states. Headquartered in Sao Paulo, Brazil, Banco Daycoval started its activities in 1968, with the creation of Daycoval DTVM and Valco Corretora de Valores. Brothers Ibrahim and Sasson Dayan control the bank. It is the core business of its shareholders and specializes in financing small- and medium-sized companies, backed by receivables. It also operates with consignment lending for payroll deduction and consumer financing. Since June 2007, the bank has had 29% of its shares traded at Bovespa on the New Brazilian Stock Market. These shares enjoy a tag- along privilege, giving minority shareholders 100% of the value of the block of controlling shares in the event of the sale of the institution. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 27, 2007, Fitch Ratings placed Banco Daycoval S.A.'s Long-term foreign currency Issuer Default Rating at 'BB-' and Long-term local currency IDR at 'BB-' with a Stable Outlook. BRASKEM SA: Copesul Goes Offline for Planned Maintenance -------------------------------------------------------- Copesul, a Braskem petrochemical company located in Triunfo in Brazil's Rio Grande do Sul state, has began a planned maintenance shutdown on March 31, 2008 at Planta 1 that will last 30 days. Along with the turnaround, the plant's petrochemical technology and capacity will be upgraded. Planta 1's ethylene production capacity will increase by 28,000 tons per year, and its propylene production capacity will rise 16,600 tons per year. Copesul's total capacity will increase from 1.22 million tons per year to 1.25 million tons per year. Braskem SA (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin America, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Braskem S.A. Fitch also affirmed the 'BB+' ratings on the company's senior unsecured notes 2008, 2014, and senior unsecured notes 2017. CONSTRUTORA NORBERTO: Selling US$200 Million Notes Due 2017 ----------------------------------------------------------- Construtora Norberto Odebrecht SA has sold US$200 million of notes due in 2017 in a reopening, Guillermo Parra-Bernal of Bloomberg News reports. According to data compiled by Bloomberg, the company's Odebrecht Finance Ltd. unit sold the 7.5 percent notes at a price of 100.5 cents on the dollar. The Bloomberg data shows that Odebrecht is the seventh Latin American borrower to complete a bond offering in international markets since January. Aurelio Rodriguez, managing director at Investment Placement Group in San Diego, told reporters that the sale indicated the revival for Latin American corporate debt as the region heads for a fifth year of annual economic expansion above 4 percent. Mr. Rodriguez, who oversees US$2.5 billion in local and foreign currency-denominated assets, is hoping that the "sale kick starts interest for Latin corporate debt among cross-over buyers." Credit Suisse Group and Deutsche Bank AG were the financial advisors for Odebrecht on the deal. Mr. Rodriguez declined to comment about whether he placed orders for the bonds. Construtora Norberto Odebrecht SA -- http://www.odebrecht.com/ -- is a Latin American engineering and construction company fully owned by the Odebrecht Group, one of the 10 largest Brazilian private groups. Construtora Norberto is the world's largest builder of hydroelectric plants, of sanitary and storm sewers, water treatment and desalination plants, transmission lines and aqueducts. The Group's main businesses are heavy engineering and construction based in Rio de Janeiro, Brazil, and Braskem S.A., its chemicals/petrochemicals company, based in Sao Paulo, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 5, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Construtora Norberto Odebrecht to 'BB' from 'BB-'. At the same time, S&P assigned its 'BB' issue rating to the proposed US$300 million, 10-year MTNs to be issued by Odebrecht Finance Ltd. and unconditionally and irrevocably guaranteed by CNO. S&P said the outlook was revised to stable from positive. CONSTRUTORA NORBERTO: Fitch Puts 'BB+' Rating on 10-Year Notes -------------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to the 10-year senior unsecured notes issued by Odebrecht Finance Ltd., maturing Oct. 15, 2017, in the amount of US$100 million, in complement to the US$200 million senior unsecured notes issued by Odebrecht Finance in October 2007. The notes are irrevocably and unconditionally guaranteed by Construtora Norberto Odebrecht S.A. Odebrecht Finance is a wholly owned subsidiary of Odebrecht S.A., which controls Construtora Norberto. As in the former US$200 million issuance, the net proceedings of the US$100 million issue will flow to Odebrecht, which will transfer them to three companies of the group: Odebrecht Investimentos em Infra-estrutura Ltda., Odebrecht Oleo e Gas Ltda., and Odebrecht Empreendimentos Imobiliarios Ltda. The amount received will be used by these companies for investments, working capital and other corporate purposes. Fitch rates Construtora Norberto Odebrecht SA with an Issuer Default Rating of 'BB+', for foreign and local currency, and a national rating of 'AA(bra)'. The Outlook for the corporate ratings is Stable. The issuance's rating is based on the underlying credit quality of Construtora Norberto Odebrecht, which incorporates its leading position in Latin America and expertise in providing engineering and construction services in Brazil and around the world, as well as its geographical and project diversification. The company has low leverage and a solid liquidity position, and has consistently generated positive cash flow. Its backlog continues to increase and currently represents nearly three years of contracts. The company operates in 22 countries and currently has ongoing works in 15 countries, which provides significant access to hard currency and mitigates transfer and convertibility risk; overseas operations represent more than two thirds of revenues. It is exposed to economic and political volatilities associated with emerging markets, where its primary operations are located. Construtora Norberto's operating performance has been steadily improving over the last several years. The company's leverage is low and consistent with the rating category. Net revenues of BRL8.6 billion in 2007 have grown 90% from year-end 2003, and operating EBITDA reached BRL877 million, an increase of 114%. Over the same period, total debt/operating EBITDA declined from 3.3 times to 1.4, and net debt/operating EBITDA from 1.3 to zero net debt. Low leverage and stronger liquidity helps mitigate risks associated with long lead times, working capital, and project completion risks. The company receives progress payments as certain project milestones are completed, which also helps to mitigate project completion risks. Construtora Norberto's business prospects are good; the company had a sizeable backlog of approximately US$13.3 billion at the end of 2007, up from US$3.9 billion at the end of 2005. The backlog primarily relates to overseas projects (approximately US$10.6 billion), and is expected, in accordance with new projections, to grow to approximately US$15 billion at end 2008. The company's exposure to emerging market project risks is somewhat mitigated with large advance payments, its experience and track record of operating in these markets, its participation in only the most strategic country projects, and participating in projects financed by export, multilateral and international agencies. The company mitigates currency risks by matching revenues and costs using the same currency for each project and has developed strong relationships with key local subcontractors, suppliers, and workforce in its core countries of operation. Of its total net revenue in 2007, 70% was generated abroad and the remaining 30% in Brazil. Construtora Norberto Odebrecht SA is a Latin American engineering and construction company fully owned by the Odebrecht Group, one of the 10 largest Brazilian private groups. The company is the world's largest builder of hydroelectric plants, sanitary and storm sewers, water treatment and desalination plants, transmission lines and aqueducts. The Group's main businesses are heavy engineering and construction based in Rio de Janeiro, Brazil, and Braskem S.A., its chemicals/petrochemicals company, based in Sao Paulo, Brazil. LOCALIZA RENT: S&P Sees Growth in Brazilian Car Rental Industry --------------------------------------------------------------- Despite significant improvement in the past several years, the Latin American car rental industry is in its early stages when compared with more mature markets in the U.S. and Europe. This increases the operating risks for companies in the region but also provides opportunities for increased growth and profitability. In the region, Standard & Poor's Ratings Services rates only Localiza Rent a Car S.A., (BB/Stable/--), the largest car rental company in Brazil. The Brazilian car rental industry remains very fragmented, consisting of 1,900 small family-owned companies spread throughout the country in 2006 and midsize operations of multinational participants such as Avis, Hertz, and Portugal's SAG. The industry was estimated to have a total fleet of 250,000 cars in 2006. Localiza is the leading player and holds approximately a 21% market share, much larger than those of the second- and third-largest competitors. A large portion of Brazilian sales have traditionally been derived from airport travelers (both business and, increasingly, leisure), but growth has been more pronounced in off-airport stores (CAGR of 37% in 2006-2007, compared with 15% in airports) because of increased use of corporate short-term leases, replacement policies by insurance companies, and expanding economic activity. Off-airport revenues accounted for 62% of Localiza's car rental revenues in 2007. Corporate fleet management is another segment that has grown significantly. Although very competitive, this business provides Brazilian car rental companies with long-term, stable revenue streams. With 100% risk cars, the success of Localiza's business model partially derives from its efficient used car sales network. The network allows the company to replace its fleet at a fast pace and generate profits from favorable purchase prices. It is also a source of market expertise to forecast vehicle depreciation and provides a capable sales force to efficiently divest vehicles. The company's cars are primarily in the low- end segment, which is quite liquid, and the company's sales network, essential for this business, is based in locations with the strongest market penetration. Headquartered in Belo Horizonte, Minas Gerais, Brazil, Localiza Rent a Car SA operates car rental, fleet management, and used car businesses in Brazil, and franchises rental car operations throughout Latin America. At the end of March, 2007, Localiza had a total fleet of 38,800 cars and 316 car rental locations (278 in Brazil, with 145 company-owned) in nine countries. Founded in 1973, Localiza is the market leader in Brazil in each of the car rental lines of business, including replacement and fleet management markets, and also has the largest number of car rental locations at the principal Brazilian airports. TAM SA: Joins 10 Firms to Develop Electronic Waybill in Brazil -------------------------------------------------------------- TAM Linhas Aereas, through its cargo division TAM Cargo, is in partnership with the Brazilian Federal Tax Authorities, a group of more than 10 companies from different transport sectors and the State Secretaries of Finance to develop an Electronic Waybill (known as a CT-e) project in Brazil. The project is to implement, later this year, a single Transport Waybill format -- a standard document all cargo transporters will issue before shipping -- that will replace the current paper forms with an electronic document that can be used for all transport categories. The CT-e will make TAM's operations faster and more efficient, as some processes related to transport, which are currently manual, will be automated. Currently, when cargos are unloaded from aircraft, they undergo an inspection process in some Brazilian states and cannot be delivered to addressees until a series of manual procedures are completed. Automating the process will reduce the time cargo remains at inspection points, making compliance with legal requirements faster and more efficient, and simplifying issuance of the Waybill -- which currently must be completed on four to seven copies. As well as these benefits, the CT-e will also bring a significant reduction in the use of paper. Currently TAM Cargo issues around 200 thousand waybills per month, which corresponds to 2.4 million documents annually. With the digital system in operation, the company estimates savings of around five tons of paper per year. TAM Cargo, the cargo business unit of TAM Linhas Aereas, offers express delivery, conventional and special cargo services. It serves many locations in Brazil and abroad, flying directly to 42 Brazilian airports, and covers more than 3,900 locations with around 700 flights daily. About TAM TAM currently -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * On July 23, 2007, Fitch Ratings affirmed the 'BB' foreign currency and local currency Issuer Default Ratings of TAM S.A. Fitch has also affirmed the 'BB' rating of its US$300 million of senior unsecured notes due 2017 as well as the company's 'A+(bra)' national scale rating and for its first debentures issuance (BRL500 million). Fitch said the rating outlook is stable. TELEMAR NORTE: Completes Stock Purchase Agreement with Vivo ----------------------------------------------------------- Telemar Norte Leste S.A., Tele Norte Leste Participacoes S.A., Amazonia Celular S.A. and Tele Norte Celular Participacoes S.A., disclose that all of the conditions precedent established under the stock purchase agreement between TMAR and Vivo Participacoes S.A. dated Dec. 20, 2007 have been satisfied, and as a result, the closing of the transaction occurred. Accordingly, 1,292,679 common shares and 3,715 preferred shares of TNCP has been transferred to TMAR. The shares represent 51.86% of the common shares, 0.09% of the preferred shares, and 19.34% of the total share capital of TNCP, which, in turn, controls Amazonia Celular. The aggregate acquisition price for the shares under the Stock Purchase Agreement was BRL128,599,660.51. The amount corresponds to an acquisition price of BRL99.38 per common share of TNCP, which is equivalent to a price of BRL152.01 per common share of Amazonia Celular. According to the disclosure, prices were adjusted by the average of the daily rates of the Interbank Deposit Certificate �- CDI from Aug. 2, 2007 until the date. Additionally, TMAR acquired from Vivo certain rights for the subscription of new shares to be issued by TNCP, as set forth in CVM Ruling n degree 319/1999, as amended, for the price of BRL22,610,739.14. In view of the closing under the Stock Purchase Agreement, TMAR intends to submit, together with Credit Suisse (Brasil) S.A. Corretora de Titulos e Valores Mobiliarios in its capacity as dealer manager, to the Brazilian Securities Commission requests for the registration of public tender offers for the acquisition of all common shares of TNCP and Amazonia Celular held by their respective non-controlling shareholders. The Tender Offer for TNCP common shares will be at the price of BRL79.51 per common share, and the Tender Offer for Amazonia Celular common shares will be at the price of BRL121.61 per common share. The prices to be offered for these shares in the Tender Offers are equal to 80% of the amount paid by TMAR to Vivo under the Stock Purchase Agreement for the common shares of TNCP and Amazonia Celular, in compliance with the provisions of article 254-A of Law n degree 6,404/76. In view of the occurrence of the closing of the acquisition by TMAR of the shares corresponding to the control block of TNCP, TMAR also intends to submit to the Sao Paulo Stock Exchange drafts of notices of voluntary tender offers for the outstanding preferred shares issued by TNCP and Amazonia Celular. The Voluntary Tender Offers will be made for the acquisition of any and all preferred shares of TNCP and Amazonia Celular and will be made at the price of BRL33.00 per preferred share of TNCP and BRL25.55 per preferred share of Amazonia Celular, which may be preferred class A, B, C, D or E shares. The commencement of the Voluntary Tender Offers is subject to the non-occurrence of any material adverse event that might affect TMAR's decision to commence the Voluntary Tender Offers and to the approval of the notices of the Voluntary Tender Offers by the Bovespa. TMAR says that the commencement of the Voluntary Tender Offers is subject to the overall conditions in the capital and financial markets and the non-occurrence of any event that may materially alter TMAR�s perspective regarding the profitability of TNCP and Amazonia Celular and therefore, impact TMAR�s decision to commence the Voluntary Tender Offers. The Voluntary Tender Offers are not intended to cancel the registration of TNCP or Amazonia Celular as publicly traded companies with the CVM. TMAR�s management will inform its shareholders and the market of the satisfaction of the conditions that would enable the Tender Offers and the Voluntary Tender Offers to proceed as well as any other events that may impact their occurrence. Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As reported on April 27, 2007, Standard & Poor's Ratings Services placed on CreditWatch with negative implications the 'BB+' corporate credit rating on Tele Norte Leste Participacoes S.A. The creditwatch resulted from TmarPart's decision to buy out its holding company's preferred shares. * BRAZIL: Fitch Says Banks Well Positioned for Downturn Pressure ---------------------------------------------------------------- Fitch Ratings believes that Brazil's banking system is adequately positioned to absorb the potential pressure from a downturn, according to a Special Report released titled "Brazil's MPI-3: Traffic Light Flashes Yellow - Have the Banks Fastened Their Seat Belts?". Fitch recently moved Brazil to the MPI 3 category in its Systemic Risk Matrix, indicating the potential for systemic risk from sustained credit growth above historic trends, accompanied by marked appreciation of the BRL. Credit has risen by over 20% of gross domestic product (GDP) over the past four years to over 50% of GDP, its highest point ever, based on IMF broad credit definitions. "The Brazilian banking system looks poised to continue to grow faster than GDP in 2008. Its fundamentals and leading players have remained strong and are well positioned to absorb potential pressure on its growing loan portfolio," according to Managing Director in Fitch's Latin American Financial Institutions Group, Peter Shaw. While the development of the banking system seems robust, some risks remain. There is a lack of a well-proven credit culture in Brazil, as reflected in historically low levels of bank credit to GDP, and no reliable way to measure the overall indebtedness of individuals. Therefore, a sharp economic downturn represents the largest risk faced by Brazilian Banks. The prospects for first half 2008 appear solid, as the momentum the banks have built to this point should assure continuation of the trends seen in 2007, and credit growth should continue, albeit at a more moderate level. "Looking beyond first half 2008, prospects for somewhat slower economic growth, as well as incipient regulatory efforts aimed at slowing loan growth, should combine to slow the torrid pace of loan growth, a development that Fitch would view positively," said Mr. Shaw. The results of such a slow down on the banks would likely be felt principally in 2009, as slower loan growth will lead to pressure on net interest income, while provisioning pressures will likely also press on operating margins, especially if higher local interest rates result in additional pressures on asset quality. While these results are unlikely to match those seen over the last four years, strong revenue streams should be able to absorb significantly higher provisions without requiring the banks to carve into their capital bases in order to absorb losses. Furthermore, solid private sector franchises of the large universal banks, combined with the two large public sector banks, continue to account for the lion's share of the system's assets, and the regulator continues to evolve toward global best practices, leaving the system well prepared to face the next turn in the economic cycle in Brazil. ========================== C A Y M A N I S L A N D S ========================== CLEARWATER CAPITAL: Proofs of Claim Filing is Until April 12 ------------------------------------------------------------ Clearwater Capital Partners Pacific Ltd.'s creditors have until April 12, 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. Clearwater Capital's shareholder decided on Sept. 14, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands INVESTCORP MOODY: Sets Final Shareholders Meeting for April 11 -------------------------------------------------------------- Investcorp Moody T5 Islamic Financing Limited will hold its final shareholders' meeting on April 11, 2008, at 3:00 p.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Investcorp Moody's shareholders agreed on Feb. 14, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attn: Evania Ebanks Paget-Brown Trust Company Ltd. Boundary Hall, Cricket Square P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Telephone: (345)-949-5122 Fax: (345)-949-7920 INVESTCORP MOODY T5: Final Shareholders Meeting is on April 11 -------------------------------------------------------------- Investcorp Moody T5 Investing Limited will hold its final shareholders' meeting on April 11, 2008, at 3:30 p.m. at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Investcorp Moody's shareholders agreed on Feb. 14, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attn: Evania Ebanks Paget-Brown Trust Company Ltd. Boundary Hall, Cricket Square P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Telephone: (345)-949-5122 Fax: (345)-949-7920 MIYAKODORI CAPITAL: Proofs of Claim Filing Deadline is April 13 --------------------------------------------------------------- Miyakodori Capital Corporation's creditors have until April 13, 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. Miyakodori Capital's shareholder decided on March 3, 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 MOUNTAIN FINANCE: Proofs of Claim Filing Deadline is April 11 ------------------------------------------------------------- Mountain Finance Limited's creditors have until April 11, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Mountain Finance's shareholders agreed on Feb. 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attn: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Telephone: (345)-949-5122 Fax: (345)-949-7920 MTC HOLDING: Proofs of Claim Filing is Until April 14 ----------------------------------------------------- MTC Holding (Cayman) Corporation's creditors have until April 14, 2008, to prove their claims to William Wong, 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. MTC Holding's shareholder decided on May 30, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: William Wong Attn: Rhonda Laws P.O. Box 268, George Town Grand Cayman, Cayman Islands Telephone: (345) 949 2648 Fax: (345) 949 8613 PALLAS GRADE: Sets Final Shareholders Meeting for April 10 ---------------------------------------------------------- Pallas Grade SCDO 2002-1 Ltd. will hold its final shareholders' meeting on April 10, 2008, at Caledonian House, 69 Dr. Roy�s Drive, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Pallas Grade's shareholders agreed on Feb. 20, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Griffin Management Limited Caledonian Trust (Cayman) Limited Caledonian House, P.O. Box 1043 Grand Cayman KY1-1102 Cayman Islands RUTHERFORD GRADE: To Hold Final Shareholders Meeting on April 10 ---------------------------------------------------------------- Rutherford Grade SCDO 2003-1 Ltd. will hold its final shareholders' meeting on April 10, 2008, at Caledonian House, 69 Dr. Roy�s Drive, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Rutherford Grade's shareholders agreed on Feb. 20, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Griffin Management Limited Caledonian Trust (Cayman) Limited Caledonian House, P.O. Box 1043 Grand Cayman KY1-1102 Cayman Islands SOUND ENERGY: Sets Final Shareholders Meeting for April 10 ---------------------------------------------------------- Sound Energy Capital Offshore Fund, Ltd., will hold its final shareholders' meeting on April 10, 2008, at 9:00 a.m. at Close Brothers (Cayman) Limited, 4th Floor Harbor Place, George Town, Grand Cayman. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidator to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Sound Energy's shareholders agreed on Feb. 21, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: John Sutlic Attn: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbor Place P.O. Box 1034, Grand Cayman KYI-1102 Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 SUNDAY SILENCE: Proofs of Claim Filing Deadline is April 13 ----------------------------------------------------------- Sunday Silence Limited's creditors have until April 13, 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. Sunday Silence's shareholder decided on March 14, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands SUTTER INVESTMENT: Final Shareholders Meeting is on April 10 ------------------------------------------------------------ Sutter Investment Grade SCDO 2001-1 Ltd. will hold its final shareholders' meeting on April 10, 2008, at Caledonian House, 69 Dr. Roy�s Drive, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Sutter Investment's shareholders agreed on Feb. 20, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Griffin Management Limited Caledonian Trust (Cayman) Limited Caledonian House, P.O. Box 1043 Grand Cayman KY1-1102 Cayman Islands ========= C H I L E ========= AES GENER: POSCO Engineering to Build Plants for Firm ----------------------------------------------------- POSCO Engineering & Construction Co. had won a US$1.31 billion contract to construct two coal power plants for AES Gener, Reuters reports. POSCO Engineering received a notice to proceed for construction of the 520-megawatt Angamos coal fired power project in Antofagasta, Chile. On Oct. 17, 2007, AES Gener signed a turnkey EPC contract with POSCO Engineering for the subject project valued at U$870 million. The project is expected to serve the increasing power demand of the mining industry in Northern Chile. The largest off-taker of the project is expected to be the global mining company BHP Billiton of Australia with whom AES has already signed a long term Power Purchase Agreement. The Angamos project is in Antofagasta, 1300 kilometers north of Santiago. The project will consist of two plants each with a capacity of 260 megawatts. Although POSCO Engineering has been undertaking engineering and other pre-construction activities since the signing of the contract, actual physical construction at the site is expected to commence upcoming June with an expected commercial operation date in the third quarter of 2011. On October 2007, POSCO E&C signed another EPC contract with AES Gener (Chile) to build the 270-megawatt Campiche coal fired power project valued at U$440 million. The notice to proceed for the Campiche project may be achieved by end of the month. The commercial operation date of the Campiche project is expected in the second quarter of 2011. The Campiche project is in Ventanas, 110 kilometers north of Santiago, and is immediately adjacent to another 240-megawatt coal fired power plant that is now under construction by POSCO Engineering, called Nueva Ventans Power Project. The contract for the Nueva Ventanas project was signed in 2006. In January 2008, POSCO Engineering was awarded an EPC contract by AES Fonseca to build a coal fired power project in the port city of Cutuco, El Salvador. About POSCO Engineering Based in Korea, POSCO Engineering & Construction Co., Ltd. is a comprehensive engineering and construction company founded on Dec. 1, 1994, with aims not only to enhance its technology in engineering and construction areas through integrated operation of its man powers that have been accumulated over the past thirty years by the construction of POSCO's most up-to-date steel works, but also to contribute to the development of the nation's construction industry. About AES Gener AES Gener is the second-largest electricity generation group in Chile in terms of generating capacity (20% market share) with an installed capacity of 2,428 megawatts. Gener serves both the Central Interconnected System or SIC and the Northern Interconnected System or SING through various subsidiaries and related companies, including affiliate Guacolda and the TermoAndes subsidiary. TermoAndes has a generation capacity of 642.8 megawatts, which while located in Argentina serves Chile's SING via InterAndes transmission line. Gener also participates in electricity generation in Colombia through Chivor hydroelectric plant of 1,000 megawatts, and a 25% participation in Itabo's facilities in the Dominican Republic (432.5 megawatts). Gener is 91.2% owned by AES (IDR rated 'B+' by Fitch). * * * To date, AES Gener carries Moody's Investors Service's Ba2 long- term foreign bank deposit rating with a stable outlook. The firm also carries Standard & Poor's Ratings Services' BB+ long- term foreign issuer credit rating with a positive outlook. GMAC LLC: Moody's Comments on US$1.2 Bln Cap Injection to ResCap ---------------------------------------------------------------- Residential Capital LLC's announcement that it has received a US$1.2 billion capital injection from its parent GMAC LLC does not impact the ratings of either entity. The US$1.2 billion capital injection is equal to the face amount of ResCap debt purchased in the open market by GMAC with an estimated current market value of US$607 million and exchanged for US$607 million newly created ResCap preferred units. GMAC also disclosed that it has purchased an additional US$340 million face value of ResCap debt currently valued at US$266 million that they may contribute to ResCap. The senior unsecured rating of GMAC LLC is B1 and ResCap B2. The rating outook for both firms is negative. The downgrade of GMAC's rating on Feb. 5, 2008 to B1 with a negative outlook contemplated that the company would likely continue to provide capital to support ResCap in the near term. The cash and capital cost to GMAC of providing the US$1.2 billion capital injection to ResCap, and the US$340 million of additional debt purchased but not contributed to ResCap, is within Moody's expectation of the amount of support GMAC would provide to ResCap. In regards to ResCap, the downgrade to B2 on Feb. 5, 2008 incorporated the possibility that the company would receive sizable support from its parent. Moody's still believes that ResCap's parents may have a limited tolerance for supporting ResCap if ResCap's performance and condition fail to meet management's expectations for improvement during the first half of 2008. Additionally, Moody's notes that the form of the capital injection does not improve ResCap's short term liquidity profile. As stated above, the ResCap rating outlook remains negative. About GMAC GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors Acceptance Corporation, is a global, diversified financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and other commercial businesses. GMAC was established in 1919 and employs approximately 26,700 people worldwide. Cerberus Capital Management LP bought 51% GMAC LLC stake from General Motors Corp. on December 2006. Its Latin American operations are located in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on March 6, 2008, Fitch Ratings downgraded and removed from Rating Watch Negative the long-term Issuer Default Rating GMAC LLC and related subsidiaries to 'BB' from 'BB+'. Fitch has also affirmed the 'B' short-term ratings. Fitch originally placed GMAC on Rating Watch Negative on Nov. 14, 2007. The Rating Outlook is Negative. Approximately US$100 billion of unsecured debt is affected by this action. As reported in the Troubled Company Reporter-Latin America on Feb. 26, 2008, Standard & Poor's Ratings Services lowered its ratings on Residential Capital LLC and GMAC LLC. Residential Capital LLC was downgraded to 'B/C' from 'BB+/B'. GMAC LLC was downgraded to 'B+/C' from 'BB+/B'. The outlook for both entities is negative. =============== C O L O M B I A =============== ROO GROUP: Launches New Brand; Renames Firm to KIT Digital ---------------------------------------------------------- ROO Group launched its new brand identity to better reflect the company's updated strategic direction and corporate initiatives. The new brand, KIT digital, represents the company's operational platform and focus on "Knowledge, Imagination and Technology" to provide its clients with the strategies and tools necessary to harness the significant potential of Internet video. The company's new web site is http://www.kit-digital.com. KIT digital works closely with consumer brands and content owners including Verizon, News Corp., Google, Sensis, RCS and Telstra to develop and implement comprehensive, customized solutions for maximizing and monetizing their online assets. To enhance its service offering, the company recently announced the acquisition and integration of its subsidiary, Sputnik Agency, a leading interactive marketing agency that has worked with clients including Holden (General Motors), BP and Saab Australia. Last month, the company entered into a content distribution agreement with Kamera Content, a company that enables corporate clients such as Vodafone, MSN, Orange, Telefonica and China Mobile to deliver IPTV to their customers via both mobile and online networks. At the same time, KIT digital (then ROO Group) entered into a letter of intent to purchase 100% of the capital stock of Kamera, a transaction that adds full mobile distribution capabilities to KIT digital's online video service offering. "The transformation from ROO to KIT digital signifies a rebirth for our company. With a new, profitability-focused management team and the integration of our interactive marketing subsidiary, Sputnik Agency-giving us a true end-to-end service offering for companies who want to harness video over IP-we believe KIT digital is positioned to lead and consolidate the industry," said KIT digital chairperson and Chief Executive Officer, Kaleil Isaza Tuzman. "Our new brand reflects the efforts we've made since the KIT Capital team assumed control of the company four months ago. We have worked hard to clean up the capital structure, divest ourselves of non-core and unprofitable assets, and refocus our sales and marketing efforts on higher margin, enterprise clients. We felt the MIP TV conference which starts today in Cannes, France-at which the leading companies on both the content and digital delivery sides of the industry are in attendance-was the right forum to unveil our new corporate identity and enhanced corporate strategy." The KIT digital 360 degree program provides clients in media & entertainment, retail, automotive and financial services with a digital media management package which allows these clients to profitably market online video under their own brand, and includes these salient features: Device-agnostic, multi-lingual platform for content management and delivery: -- Workflow and publishing -- Video player experience -- Content streaming (live and VoD) -- Indexing and storage -- Advertising -- Content and analytics -- Rights management -- Customer service Comprehensive interactive agency services: -- Content syndication and programming -- Creative development and brand management -- Campaign development -- Strategy and planning KIT digital (formally ROO Group) (OTC Bulletin Board: RGRP) -- http://www.kit-digital.com-- is a global service provider enabling businesses to leverage their digital media assets and provide an enhanced user experience. Through its comprehensive, customized online platform, KIT digital provides clients with an end-to-end solution to maximize the value of their online assets. KIT digital has offices in Dubai, Melbourne (Australia), New York, London, and Bogota (Colombia). Going Concern Doubt Moore Stephens PC expressed substantial doubt about ROO Group Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements as of the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses and negative cash flows from operations. =================================== D O M I N I C A N R E P U B L I C =================================== ALCATEL-LUCENT SA: Wins US$367.4 Bln Patent Case vs. Microsoft -------------------------------------------------------------- A U.S. federal jury has ordered Microsoft Corp. to pay around US$367.4 million in infringement damages to Alcatel-Lucent SA, Reuters reports. The jury ruled that Microsoft infringed two technology patents: one which allows users to enter dates into calendars, and another one that allows tablet computers to recognize handwriting patterns, Reuters relates. "We will move immediately to have the two verdicts against Microsoft overturned," said Tom Burt, Microsoft corporate vice president and deputy general counsel, told Reuters. "We feel confident the verdicts will be overturned, just as the court overturned a verdict last year by a San Diego jury." Judge Rudi Brewster of the U.S. District Court for the District of California reversed in August 2007 a jury's decision ordering Microsoft to pay around US$1.52 billion in patent infringement damages to Alcatel-Lucent. The company has appealed the decision. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported on April 4, 2008, Moody's Investors Service affirmed the ratings for Alcatel-Lucent, which include a Ba3 corporate family rating for Alcatel-Lucent and a Not-Prime for its short term debt, as well as Ba3 ratings for senior and B2 ratings for subordinated debt that was issued originally by the predecessor companies Alcatel S.A. and Lucent Technologies, Inc. Moody's said the outlook for the ratings is Negative. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. ============= E C U A D O R ============= PETROECUADOR: Poised to Sign 1st Batch of Pacts With Oil Firms -------------------------------------------------------------- Ecuadorian Oil Minister Galo Chiriboga told Reuters that Petroecuador hopes to sign by next week the first batch of agreements with foreign oil companies for the increase of state participation in contracts. Minister Chiriboga commented to Reuters, "The president has the final word ... but I hope next week we can start signing understanding memorandums." As reported in the Troubled Company Reporter-Latin America on March 3, 2008, Ecuadorian President President Rafael Correa gave oil firms until March 8 to agree to the changes in their contracts with Petroecuador. The government wants to turn existing participation contracts into service provider contracts that will pay companies a production fee and investment costs. The Mines and Oil Ministry said that oil contract negotiations in Ecuador are coming to an end. Once the negotiations end, the new contracts will be presented to the national constituent assembly. Petroecuador has reached agreements for six oil contracts with Petroriental, Repsol YPF, Perenco, and Petrobras. Petroecuador is still negotiating with Perenco, Andes Petroleum, Canada Grande, and CNPC for block 11. Minister Chiriboga admitted to Reuters that he hasn't reached a deal with all of the firms, but said talks with the firms are "moving forward nicely." Headquartered in Quito, Ecuador, Petroecuador -- http://www.petroecuador.com.ec-- is an international oil company owned by the Ecuador government. It produces crude petroleum and natural gas. * * * In previous years, Petroecuador, according to published reports, was faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much- needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. In 2008, a new management team was appointed to turn around the company's operations. PETROECUADOR: Sells 9.36 Million Barrels of Crude ------------------------------------------------- Petroecuador has sold a total of 9.36 million barrels of crude, 7.92 million barrels of which are Oriente crude and 1.44 million barrels are Napo crude, in short-term contracts of 720,000 barrels each. As reported in the Troubled Company Reporter-Latin America on April 2, 2008, Petroecuador was seeking bids for the sale of the Oriente and Napo crude. Petroecuador planned to sell Oriente crude in 11 cargoes of 720,000 barrels each and Napo in two cargoes of 720,000 barrels each. Business News Americas relates that these firms picked up five lots of Oriente crude after offering spot market price discounts that ranged up to US$13.96 per barrel: -- Glencore, -- Petrobras, -- Citizens Resources, and -- Taurus Petroleum. According to BNamericas, the crude will be shipped to the firms in May. BNamericas notes that six lots for Oriente crude were sold to these companies which offered spot market price discounts of up to US$12.94 per barrel: -- Taurus Petroleum, -- Glencore, -- Petrobras, -- Mitsubishi, and -- Citizens Resources. The report says that shipments to the firms will be made in June. Shell Trading and Taurus Petroleum picked up Napo lots after offering discounts of US$23.67 per barrel and US$20.98 per barrel respectively. The crude will be delivered in May, BNamericas states. Headquartered in Quito, Ecuador, Petroecuador -- http://www.petroecuador.com.ec-- is an international oil company owned by the Ecuador government. It produces crude petroleum and natural gas. * * * In previous years, Petroecuador, according to published reports, was faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much- needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. In 2008, a new management team was appointed to turn around the company's operations. PETROECUADOR: May Terminate Petrobras' Oil Extraction Contract -------------------------------------------------------------- Petroecuador may terminate Petroleo Brasileiro SA's oil extraction contract for an Ecuadorian oilfield, Reuters reports. The report relates that Ecuador's Inspector General Xavier Garaicoa has accused Petrobras of breaching its contract with Petroecuador by transferring part of an oil block without proper government authorization and that therefore its contract must be terminated. Petroecuador told Reuters that it has asked Petrobras to respond to charges of a contract breach. Petroecuador's President Fernando Zurita told journalists that the firm had begun the termination process. However, Petroecuador said it will make an official announcement once Petrobras answers the charges. Petrobras reportedly has denied the charges. According to Petrobras, the request for response to the charges is another chance to show the legality of its actions and will provide Petroecuador all the documentation requested. Petroecuador told Reuters that Petrobras is given ten days to provide documents related to the charges. The Ecuadorian oil minister will make the final decision on whether to end the Petrobras' contract. Once Petrobras' contract with Petroecuador is breached, its assets in the country will be nationalized, which would take months or years, Reuters states. Headquartered in Quito, Ecuador, Petroecuador -- http://www.petroecuador.com.ec-- is an international oil company owned by the Ecuador government. It produces crude petroleum and natural gas. * * * In previous years, Petroecuador, according to published reports, was faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much- needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. In 2008, a new management team was appointed to turn around the company's operations. ================= G U A T E M A L A ================= BRITISH AIRWAYS: Will Reduce Standard Travel Agent Commission ------------------------------------------------------------- British Airways Plc told The Trinidad Guardian that it will decrease the standard travel agent commission to 1% from 6% starting May 19, 2008. According to The Guardian, the reduction will be applied to flights from outside the Caribbean and sole on separate tickets except in: -- the Turks and Caicos, -- Bahamas, and -- Cayman Islands. The commission in these places is already 1% on all journeys regardless of point of origin, The Guardian says, citing British Airways. According to British Airways, the 6% standard commission will be retained for flights starting from any Caribbean island except for Turks and Caicos, Bahamas, and Cayman Islands. British Airways' Latin American and Caribbean Area Commercial Manger Nick Horne commented to The Guardia, "The change reflects market conditions such as the prevalence of travel agency fees as well as the need to appropriately manage our distribution costs. British Airways remains committed to the travel agency community as an integral distribution partner and we look forward to jointly growing our business." Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * As of Jan. 2, 2008, British Airways Plc carries a senior unsecured debt rating of Ba1 from Moody's Investors' Service with a stable outlook. ============= J A M A I C A ============= DIGICEL LTD: Names David Hunter as CEO for Jamaica Unit ------------------------------------------------------- Digicel Ltd. has appointed David Hunter as chief executive officer of Digicel Jamaica. Prior to his promotion, David Hunter was CEO of Digicel Bermuda where during his tenure he led Digicel to the number one position in the market, increasing the total number of customers by 75 percent since 2006. Mr. Hunter will leverage more than 12 years� experience in the telecommunications industry to ensure Digicel Jamaica continues to offer the best value and best service in the market. Previously, Scottish national Mr. Hunter held a number of positions leading mobile telecommunications operators in Africa. His past accomplishments include the position of Managing Director for Celtel International, one of the largest mobile operators in Africa. In addition, he has previously served as Managing Director of Celtel Sierra Leone and Telecel Zambia. Mr. Hunter will report into Digicel�s Group COO, Kevin White, who is also based in Jamaica. Colm Delves, CEO of Digicel Group said, �We are confident that [Mr. Hunter] will build on Digicel Jamaica�s excellent track record of strong growth experienced in the past seven years. As our business in Jamaica continues to strengthen, David and our entire Jamaica team will ensure that our customers continue to be our number one priority.� David Hall, who previously held the position of CEO of Digicel Jamaica since April 2004, will remain with Digicel in the capacity of CEO North Caribbean where he will be concentrating on the flourishing markets of Bermuda, the Cayman Islands and Turks & Caicos. �David Hall has been instrumental in the phenomenal rise of Digicel as the leading mobile provider in Jamaica with more than 1.9 million customers. We know that his invaluable experience and expertise will ensure the continued development of the North Caribbean markets� said Mr. Delves. Since Digicel initially launched in Jamaica in 2001, mobile penetration has climbed from 10 percent in 2001 to more than 80 percent. Digcel has invested more than US$750 million to build a nationwide network in Jamaica with close to 100% population coverage. The company also offers its cutting edge WiMAX technology. With an employee base of more than 1,000, Digicel Jamaica has been consistently recognized as the number one company for customer care in Jamaica. Digicel Ltd. is a wireless services provider in the Caribbean region founded in 2000, and controlled by Denis O'Brien. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in Caribbean countries including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Bermuda, Cayman, and Curacao among others. Digicel finished FY2005 with 1.722 million total subscribers -- 97% pre-paid -- estimated market share of 67% and revenues and EBITDA of US$478 million and US$155 million, respectively. * * * In February 2007, Moody's Investors Service affirmed Caa2 senior unsecured rating to Digicel Group Limited's US$1.4 billion senior unsecured notes offering. DYOLL GROUP: Denies Overpayment of J$117MM in Management Fees ------------------------------------------------------------- The Dyoll Group has denied the claim of Dyoll Insurance Company's liquidators that it made a J$117 million overpayment in management fees, Radio Jamaica reports. Radio Jamaica relates that the unit's liquidators' filed a lawsuit against the Dyoll Group for the overpayment. According to Radio Jamaica, the liquidators alleged that the money was accumulated between 1999 and 2005. The Dyoll Group's legal representatives told Radio Jamaica that there is no basis for the claim, as indicated in the information contained in the firm's fourth quarter results released last week. Radio Jamaica notes that despite financial problems, the Dyoll Group was able to have profit for the 12 months ended Dec. 31, 2007. The Dyoll Group's net profit decreased to J$5 million in 2007, compared to J$7.2 million in 2006. The Dyoll Group made no revenues during the 12 months ended December 2007, but it made almost J$16 million in net interest income on its bank deposits, Radio Jamaica states. Dyoll Group Ltd. is a Jamaica-based company that is principally engaged in the insurance business. Jamaica's Financial Services Commission has assumed temporary management of the Jamaica-based Dyoll Insurance Co. Ltd. in March 7, 2005, in order to establish the true position of the Company, address the matter of settlement to its claimants and ensure that its policies will remain in force after a high level of insurance claims were leveled on the company as a result of the hurricane Ivan. Kenneth Tomlinson was appointed temporary manager. Jamaica's Supreme Court ordered for the distribution of a US$653 million fund held by the FSC in accordance with the Insurance Act 2001, section 59, which says that the prescribed deposit, on the winding up of an insurance company, should be applied first to settle the claims of local policyholders. NAT'L COMMERCIAL: Court to Hear Olint's Appeal on Bank's Lawyer --------------------------------------------------------------- A Jamaican court will hear an appeal from Olint Limited against the National Commercial Bank Jamaica Limited's hiring of former Financial Services Commission Chairperson Michael Hylton as its legal representative, Radio Jamaica reports. As reported in the Troubled Company Reporter-Latin America on March 10, 2008, High Court Judge Roy Jones ruled in favor of the National Commercial in a lawsuit Olint filed to remove Mr. Hylton from the bank's legal team. Olint sought to bar Mr. Hylton from representing the National Commercial. Olint took out an injunction against National Commercial on Jan. 11, when the bank decided to close the investment club's accounts for being allegedly an unregulated company operating in breach of the Securities Act. Olint said that Mr. Hylton was a former solicitor general and chairperson of the FSC, which had issued a cease-and-desist order on Olint Corporation in March 2006. Olint has concerns that Mr. Hylton was a member of the FSC's board when that commission issued the cease-and-desist order. Olint's lawyers said they would be filing an appeal on the court's decision by April 7. Olint's lawyers further claimed that Mr. Hylton "was privy to confidential information shared between Olint and the FSC when he was chairman," Radio Jamaica states. Headquartered in Kingston, Jamaica, the National Commercial Bank Jamaica Limited -- http://www.jncb.com/-- provides commercial and retail banking, wealth management services. The company's services include personal banking, business banking, mortgage loans, wealth management and insurance services. Founded in 1977, the bank primarily operates in West Indies and the UK. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2006, Standard & Poor's Rating Services affirmed its 'B/B' counterparty credit and CD ratings on National Commercial Bank Jamaica Ltd. S&P said the outlook is stable. As reported in the Troubled Company Reporter-Latin America on May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica- based National Commercial Bank Jamaica Limited: long-term foreign and local currency Issuer Default at 'B+'; short-term foreign and local currency rating at 'B'; individual at 'D'; and support at 4. The rating outlook on the bank's ratings is stable, in line with Fitch's view of the sovereign's creditworthiness. NATIONAL WATER: Illegal Connections Must Stop by April 28 --------------------------------------------------------- The National Water Commission has given residents in the communities of Old Braeton and Reed Pen in St. Catherine to regularize illegal connections to the commission's network by April 28, 2008, Radio Jamaica reports. Radio Jamaica relates that the Commission disconnected water supply to those communities last week after residents refused to pay their water bills. The Community owed over J$12 million in unpaid water bills, Radio Jamaica says, citing the Commission. According to the Commission, its officers held a meeting with Member of Parliament Fitz Jackson and a group of residents last Sunday. The Commission told Radio Jamaica that it has reached an agreement with clients in Old Braeton and Reed Pen. The National Water Commission is a statutory organization charged with the responsibility of providing potable water and wastewater services for the people of Jamaica. * * * The National Water Commission of Jamaica had been criticized for failing to act promptly in cutting its losses. For the fiscal years 2002 and 2003, the water commission accumulated a net loss of US$2.11 billion. The deficit fell to US$1.86 billion the following year, and to US$670 million in 2004 and 2005. Jamaican citizens have been complaining to the commission about water disruptions in their communities, resulting to restrictions of water use. =========== M E X I C O =========== AMERICAN AIRLINES: Unit Opens Flight Routes to 15 Mexican Cities ---------------------------------------------------------------- American Airlines Inc.'s regional affiliate, American Eagle began service between Dallas/Fort Worth International Airport, and Tampico, Mexico. The addition of this new route increases American Airlines offerings to 15 cities throughout Mexico. American Eagle will fly the route daily with its 44-seat Embraer ERJ-140 jets. "We are pleased to begin service to the great city of Tampico," said American's Senior Vice President for Mexico, Caribbean and Latin America, Peter Dolara. "This new route supplements our extensive network throughout Mexico." With more than 300 flights each week to 15 Mexico cities, American and American Eagle can take you to Mexico's most important destinations. Flights originate in five major United States gateways, so it's easy to connect to non-stop service through Dallas/Fort Worth, Los Angeles, Chicago, New York and Miami. Based in Fort Worth, Texas, American Airlines Inc., a wholly owned subsidiary of AMR Corp., operates the largest scheduled passenger airline in the world with service throughout North America, the Caribbean, Latin America, Europe and Asia. The airline flies to Belgium, Brazil, Japan, among others. * * * As reported in the Troubled Company Reporter-Latin America on March 26, 2008, Standard & Poor's Ratings Services revised its outlook on the long-term ratings on AMR Corp. (B/Negative/B-3) and subsidiary American Airlines Inc. (B/Negative/--) to negative from positive. S&P also lowered its short-term rating on AMR to 'B- 3' from 'B-2' and affirmed all other ratings on AMR and American. BANCO DEL BAJIO: Uses Surecomp's Trade Finance Software ------------------------------------------------------- Banco del Bajio has purchased a trade finance software from Surecomp to grow its trade finance business. According to Surecomp, Banco del Bajio will use the a//NETT software to automate and manage its corporate trade finance processing. Banco del Bajio is the eighth largest bank in Mexico with an overall market share of roughly 2% of loans and deposits. It is one of the largest and fastest growing regional banks in Mexico. Three groups of national investors own a 49% stake in the bank, Sabadell and the IFC control 20% and 10%, respectively, and the balance is widely held. Banco del Bajio has entered into the mortgage and construction sectors through the acquisition of two specialized mortgage lenders in 2004 and 2005. These companies and a factoring entity are Banco del Bajio's sole subsidiaries, while it also has a 50% stake in the pension fund management company Afore Afirme Bajio, created in 2005. As of September 2007, Bajio had roughly US$3.9 billion in assets, loans for US$3 billion and equity of US$418 million. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 7, 2007, Fitch Ratings affirmed the 'BB+' long-term local and foreign currency issuer default and the 'B' short-term foreign and local currency issuer default ratings of Mexico's Banco del Bajio. Fitch said that while the international-scale ratings have a stable outlook, the outlook on the national-scale long-term rating was revised to positive from stable. FOAMEX INT'L: Dec. 30 Balance Sheet Upside-Down by US$298 Mil. -------------------------------------------------------------- Foamex International Inc.'s balance sheet at Dec. 30, 2007, showed total assets of US$433.7 million and total liabilities of US$731.8 million, resulting to total shareholders' deficit of US$298.1 million. The company reported financial results for the fourth quarter and fiscal year, which ended on Dec. 30, 2007. Net loss for the fourth quarter was US$35.6 million compared to net income of US$1.1 million in the fourth quarter of 2006. Interest expense for the fourth quarter of 2007 was US$14.4 million. Net loss for 2007 was US$46.7 million compared to net income of US$12.3 million in 2006. "This year we made significant progress restructuring and streamlining operations; we took actions to reduce excess capacity and improve plant efficiencies, while significantly lowering overheads," Jack Johnson, president and chief executive officer, said. "We improved cash flow through working capital reductions and asset sales, allowing us to reduce debt by approximately US$95.0 million, since emerging from bankruptcy in February 2007, thus lowering debt levels to US$534.1 million at year-end." "Some of our more notable accomplishments include: selling our 70% equity interest in Foamex Asia; consolidating our Eddystone, PA and Fort Wayne, Indiana manufacturing facilities; selling the Fairless Hills, Pennsylvania, Dallas, Texas, and Orlando, Florida carpet cushion facilities; lowering management compensation costs; and recently, launching new products at ISPA," Mr. Johnson continued. "Although we are operating in a sluggish economy, we remain confident in our strategic plan, which is to continue de- levering the balance sheet and grow the business by exploiting our technological advantage in the flexible polyurethane market and expanding globally," Mr. Johnson added. "The recently disclosed Rights Offering and Second Lien Offering demonstrate the commitment of both the management team and significant equityholders to position the company to achieve its strategic growth plan." Liquidity and Capital Resources Cash and cash equivalents were US$5.2 million at Dec. 30, 2007, compared to US$6.0 million at Dec. 31, 2006. Working capital at Dec. 30, 2007, was US$108.2 million and the current ratio was 1.69 to 1 compared to working capital at Dec. 31, 2006 of US$24.0 million and a current ratio of 1.08 to 1. Total debt and revolving credit borrowings at Dec. 30, 2007 was US$534.1 million, a US$109.6 million decrease from Dec. 31, 2006, including prepayments of US$80.0 million on the first lien term loan. As of Dec. 30, 2007, there were revolving credit borrowings of US$7.9 million under the Revolving Credit Facility. Revolving credit borrowings at Dec. 30, 2007, reflect working capital requirements. During 2007, the company consolidated the operations of its Eddystone, Pennysylvania manufacturing facility and its Fort Wayne, Indiana manufacturing facility. The company intends to sell the Eddystone, Pennsylvania facility and has included the US$5.0 million net book value of the assets as held for sale in the accompanying consolidated balance sheet as of Dec. 30, 2007. About Foamex International Inc. Headquartered in Linwood, Pennsylvania, Foamex International Inc. (FMXIQ.PK) -- http://www.foamex.com/-- produces cushioning for bedding, furniture, carpet cushion and automotive markets. The company also manufactures polymers for the industrial, aerospace, defense, electronics and computer industries. Foamex has Asian locations in Malaysia, Thailand and China. The company's Latin American subsidiary is in Mexico. The company and eight affiliates filed for chapter 11 protection on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05- 12693). As of July 3, 2005, the Debtors reported US$620,826,000 in total assets and US$744,757,000 in total debts. On Feb. 2, 2007, the Court confirmed the Debtors' Second Amended Joint Plan of Reorganization. The Plan of Reorganization of Foamex International Inc. became effective and the company emerged from chapter 11 bankruptcy protection on Feb. 12, 2007. EMPRESAS ICA: CPH Closes US$910 Mln LT Loan for La Yesca Project ---------------------------------------------------------------- Empresas ICA, S.A.B de C.V. has disclosed that the Constructora de Proyectos Hidroelectricos, S.A. de C.V. (CPH) consortium, in which ICA holds a 67% interest, closed the US$910 million long- t