T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, April 11, 2008, Vol. 9, No. 72 Headlines A R G E N T I N A AOMI SA: Proofs of Claim Verification Deadline is June 11 BANCO PATAGONIA: Denies Sale Rumors Again COMPLEMENTOS EMPRESARIOS: Trustee to Verify Claims Until June 10 DAWN FOODS: Proofs of Claim Verification Deadline is May 14 DE PABLO: Proofs of Claim Verification Deadline is June 30 DELTA AIR: Revives NWA Merger Talks, Sweetens Offer to Pilots FARMACIA SOCIAL: Proofs of Claim Verification is Until May 5 HOTELNET SRL: Trustee to Verify Proofs of Claim Until May 7 SEMA INGENIERIA: Proofs of Claim Verification is Until April 24 * ARGENTINA: Moody's Says Pension Changes Will Affect Insurers B E R M U D A ASPEN INSURANCE: Ties Up With FRSGloabl for Risk Management B R A Z I L ABITIBIBOWATER INC: S&P Removes Unit's 'B-' Rtg. From Neg. Watch ADVANCED MICRO: Weak Quarter Results Cues Moody's Rating Reviews ADVANCED MICRO: Low Revenues Cues S&P's Neg. Watch on B Rating AMERICAN AIRLINES: Re-Accommodate Passengers Over Flight Cancels CENTRAIS ELETRICAS: Will be Controlling Shareholder in Projects GERDAU SA: May Redirect U.S. Output to Other Markets GOL LINHAS: To Release First Quarter 2008 Earnings HEXION SPECIALTY: Extends Merger Pact Termination Date to July 4 TAM: Podhurst Orseck Files 59 Wrongful Death Suit on Flight 3054 C A Y M A N I S L A N D S BEAR STEARNS: Fund Liquidators File US$1BB Action Against Firm CL ASSETS: Proofs of Claim Filing Deadline is April 17 D-LINK CHINA: Sets Final Shareholders Meeting for April 17 PACTUAL CAPITAL: Sets Final Shareholders Meeting for April 17 TRIBECA TPC: Proofs of Claim Filing Deadline is April 17 UNIVEST DIVERSIFIED: Final Shareholders Meeting is on April 17 C H I L E AES CORP: Removes US$650MM Deal in South Africa's Power Outage C O L O M B I A POLYONE CORP: Intends to Offer its US$50MM Senior Notes Due 2012 POLYONE CORP: Moody's Puts 'B1' Rating on Planned US$50MM Notes C O S T A R I C A DENNY'S CORP: Henry Nasella to Resign from Board Due on May 21 J A M A I C A AIR JAMAICA: Will Launch Wage Talks with National Workers Union CASH PLUS: Dates for Repayments Invalid, Says Kevin Bandoian CASH PLUS: Hasn't Paid Workers' March Salaries DIGICEL LTD: Sticks to Biz Core, No Media Plans, Says Mr. Delves DYOLL GROUP: Non-Compliance with JSE Rules Cues Stocks Delisting NATIONAL COMMERCIAL: Court Will Rule on Olint's Appeal on June 2 M E X I C O EMPRESAS ICA: Adds Four New Members to Board of Directors ENTRAVISION COMMS: S&P Changes Outlook to Stable; Holds B+ Rtg. MOVIE GALLERY: To Close Approximately 160 Stores MOVIE GALLERY: 90% of Creditor Ballots Favor Chapter 11 Plan MOVIE GALLERY: Court Confirms 2nd Amended Chapter 11 Plan MOVIE GALLERY: Files Supplements to Second Amended Chap. 11 Plan NUANCE COMMUNICATIONS: Inks Pact Buying eScription for US$363MM * MEXICO: Moody's Ba3 Global Scale Rating on Positive Outlook P A N A M A GLOBAL CROSSING: Expands Internet Services to Latin America P A R A G U A Y TAM SA: Merges Management Structure With Paraguay Operations * PARAGUAY: Higher Export & Surplus Cues Moody's Ratings Upgrade P E R U DOE RUN: Unit Reviews ISO Certification Environmental Parameters P U E R T O R I C O ADELPHIA COMMS: Court Okays Pact Resolving NBC Rejection Claims JETBLUE AIRWAYS: David Neeleman Won't Seek Re-Election to Board U R U G U A Y ADMINISTRACION NACIONAL: Remains Fuel Market Dominance, S&P Says V E N E Z U E L A CA LA ELECTRICIDAD: Publishes Tender Offer Results CITGO PETROLEUM: Launches Works to Restart West Plant Coker NORTHWEST AIRLINES: Revives Merger Talks With Delta Air Lines NORTHWEST AIRLINES: Inks Pact to Settle Pilots' US$921MM Claim PETROLEOS DE VENEZUELA: Signs JV Pact With China Nat'l Petroleum PETROLEOS DE VENEZUELA: Seeks New Partner for Chalmette Plant - - - - - ================= A R G E N T I N A ================= AOMI SA: Proofs of Claim Verification Deadline is June 11 --------------------------------------------------------- Eduardo Armando Prol, the court-appointed trustee for Aomi SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 11, 2008. Mr. Prol will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 2, 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 Aomi 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 Aomi's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Prol is also in charge of administering Aomi's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Aomi SA San Jose 1962 Buenos Aires, Argentina The trustee can be reached at: Eduardo Armando Prol Avenida Belgrano 634 Buenos Aires, Argentina BANCO PATAGONIA: Denies Sale Rumors Again ----------------------------------------- Banco Patagonia has once again denied reports saying that it is being put up for sale, Business News Americas reports. As reported in the Troubled Company Reporter-Latin America on Oct. 18, 2007, Banco Patagonia previously denied in a filing with the Buenos Aires stock exchange press reports saying that it was being considered for a takeover bid by Banco Itau. BNamericas relates that Banco Patagonia made another filing to the stock exchange about the same topic in less than six months. According to BNamericas, Banco Patagonia denied a story from the local financial daily El Cronista. El Cronista reported last Monday that Banco do Brasil and South Africa's Standard Bank were seeking to acquire assets in Argentina and that they might be considering buying Banco Patagonia. BNamericas notes that in the past, El Cronista reported that Banco Itau was negotiating to purchase Banco Patagonia. The sale rumors were "completely unfounded," BNamericas states, citing Banco Patagonia. Banco Patagonia specializes in public offerings of securitizations. It became Argentina's fifth largest locally owned private bank through its purchase of Lloyds TSB Argentina in late 2004. The bank operates through 139 branches and has 202 ATM machines. * * * As reported in the Troubled Company Reporter-Latin America on May 4, 2007, Moody's Investors Service upgraded Banco Patagonia SA's local currency deposit rating is upgraded to Ba1 from Ba3. Moody's confirmed that it raised its bank financial strength rating on Banco Patagonia to D from E+, in connection with the rating agency's implementation of its refined joint default analysis and updated BFSR methodologies for banks in Argentina. Its foreign currency deposit rating was affirmed at Caa1, with positive outlook. The company's long-term Argentine national scale rating for local currency deposits is raised to Aa1.ar from Aa2.ar. and its long term foreign currency deposit rating in national scale was affirmed at Ba1.ar. The foreign currency subordinated debt rating was upgraded to B2 from Caa1. The outlook on the debt rating was positive. The national scale rating for foreign currency subordinated debt was raised to Aa3.ar from Ba1.ar. COMPLEMENTOS EMPRESARIOS: Trustee to Verify Claims Until June 10 ---------------------------------------------------------------- Liliana Montoso, the court-appointed trustee for Complementos Empresarios SA's reorganization proceeding, will be verifying creditors' proofs of claim until June 10, 2008. Ms. Montoso will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 11 in Buenos Aires, with the assistance of Clerk No. 21, 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 Complementos Empresarios 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 Complementos Empresarios' accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Creditors will vote to ratify the completed settlement plan during the assembly on March 24, 2009. The debtor can be reached at: Complementos Empresarios SA Avenida Cordoba 466 Buenos Aires, Argentina The trustee can be reached at: Liliana Montoso Sarmiento 517 Buenos Aires, Argentina DAWN FOODS: Proofs of Claim Verification Deadline is May 14 ----------------------------------------------------------- Gustavo Ariel Fiszman, the court-appointed trustee for Dawn Foods Internacional S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 14, 2008. Mr. Fiszman will present the validated claims in court as individual reports on June 25, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Dawn Foods 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 Dawn Foods' accounting and banking records will be submitted in court on Aug. 21, 2008. Mr. Fiszman is also in charge of administering Dawn Foods' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Dawn Foods Internacional S.R.L. Reconquista 458 Buenos Aires, Argentina The trustee can be reached at: Gustavo Ariel Fiszman Avenida Santa Fe 5086 Buenos Aires, Argentina DE PABLO: Proofs of Claim Verification Deadline is June 30 ---------------------------------------------------------- Marcelo Francisco, the court-appointed trustee for De Pablo SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 30, 2008. Mr. Francisco will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 33, 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 De Pablo 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 De Pablo's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Francisco is also in charge of administering De Pablo's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: De Pablo SA Teniente General Juan Domingo Peron 1409 Buenos Aires, Argentina The trustee can be reached at: Marcelo Francisco Uruguay 328 Buenos Aires, Argentina DELTA AIR: Revives NWA Merger Talks, Sweetens Offer to Pilots ------------------------------------------------------------- Delta Air Lines Inc. has revived merger talks with Northwest Airlines Corp., even without the pre-arranged deal from both carriers' pilots, said people familiar with the situation, according to reports. Delta's board members convened on April 4, 2008, and agreed to continue the talks which are reportedly intensifying, the Financial Times states. Delta pilots were granted permits to picket at Northwest hubs from April 8 to 24, to protest over the carriers' pilot- seniority dispute, The Associate Press discloses. Northwest's pilots union said it reserves the right to do the same thing at Delta hubs if it chooses, the AP says. Earlier, the two airline companies agreed on most terms for a tie-up. However, the pilots' leaders from both carriers were unable to reach an agreement on an acceptable seniority list integration. The original deal between the parties included a common pilot labor contract for their combined 11,000 pilots that would give all of them raises, with Northwest's 5,000 aviators getting heftier increases to bring them up to Delta levels. Reports say the new deal may include a smaller pay package for pilots. "The pilots were given the chance to try to put this together and make it work, but they couldn't," said Henry Harteveldt, an analyst at Forrester Research Inc., Bloomberg News reports. According to The Wall Street Journal, the carriers are not required by law to come up with pre-merger pilots' labor agreements to push through with the deal. Delta and Northwest, however, wanted to avoid a messy, labor wrangle once the deal was consummated and, therefore, made efforts to come up with a "common labor contract." Despite the carriers' unsuccessful attempt on this end, slumping stock prices and soaring fuel prices have urged both Delta and Northwest to continue with the talks, notes a person familiar with the matter, says WSJ. Capt. Dave Stevens, chairman of the Northwest branch of the Air Line Pilots Association, said, "[I]n order for any airline merger to be successful, the pilots of both groups must be involved and agree to the terms. We will reserve our judgment and support until the economic and contractual elements of the agreement have been negotiated," reports AP. Delta Chief Executive Officer Richard Anderson has said he won't do a merger unless worker seniority is protected. The pilot negotiating committees at Delta and Northwest have not had any recent meetings, but there has been informal contact between members of the two unions, one of the people familiar with the discussions said, according to AP. Meanwhile, Northwest was said to be planning to freeze the hiring of pilots and flight attendants as it cuts its domestic schedule by about 5%, starting after the peak summer travel season, the Los Angeles Times reports. Delta Seeks Concessions from Union The Wall Street Journal's Susan Carey and Paulo Prada reported Wednesday that Delta asked its union leaders to abandon parts of the Delta pilot labor contract so the carrier could move forward as early as next week with its merger deal with Northwest. The Journal, citing people familiar with the situation, said Delta promised its 6,000 pilots pay raises, equity and a board seat in the combined carrier. Delta's current employment contract with its pilots is in effect until at least the end of next year. The Journal says Delta management hopes to coax an agreement from union leaders sooner so that future contract changes can coincide with subsequent talks with Northwest pilots, whose current contract runs through 2011. According to the Journal, one person privy to the talks said the sweeteners Delta is extending its pilots may not be as generous as those contemplated a few months ago, but they would be similar. The Journal also reports that a spokesman for the Northwest pilots group on Wednesday said his members' labor contract "contains significant protections in the event of any merger or acquisition." He said the Northwest pilots "are willing to work constructively with any management or pilot group. However, we will exercise our contractual rights in order to protect the interests and careers of every Northwest pilot." About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' Plan. The Plan took effect May 31, 2007. (Northwest Airlines Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 18, 2008, Standard and Poor's said that media reports that Delta Air Lines Inc. (B/Positive/--) entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will have no effect on the ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications. FARMACIA SOCIAL: Proofs of Claim Verification is Until May 5 ------------------------------------------------------------ Francisco Rogelio Cano, the court-appointed trustee for Farmacia Social Parque S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 5, 2008. Mr. Cano will present the validated claims in court as individual reports on June 23, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Dawn Foods 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 Dawn Foods' accounting and banking records will be submitted in court on Aug. 20, 2008. Mr. Cano is also in charge of administering Dawn Foods' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Francisco Rogelio Cano Uruguay 618 Buenos Aires, Argentina HOTELNET SRL: Trustee to Verify Proofs of Claim Until May 7 ----------------------------------------------------------- Ernesto Oscar Higueras, the court-appointed trustee for Hotelnet S.R.L.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 7, 2008. Mr. Higueras will present the validated claims in court as individual reports on June 18, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Hotelnet and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Hotelnet's accounting and banking records will be submitted in court on Aug. 15, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 13, 2009. The trustee can be reached at: Ernesto Oscar Higueras Sanchez Loria 1944 Buenos Aires, Argentina SEMA INGENIERIA: Proofs of Claim Verification is Until April 24 --------------------------------------------------------------- Hugo Armando Ayala, the court-appointed trustee for S.E.M.A. Ingenieria S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until April 24, 2008. Mr. Ayala will present the validated claims in court as individual reports on May 21, 2008. The National Commercial Court of First Instance in Mendoza will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by S.E.M.A. Ingenieria 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 S.E.M.A. Ingenieria's accounting and banking records will be submitted in court on Sept. 25, 2008. Mr. Ayala is also in charge of administering S.E.M.A. Ingenieria's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Hugo Armando Ayala Luis Agote 835, Ciudad de Mendoza Mendoza, Argentina * ARGENTINA: Moody's Says Pension Changes Will Affect Insurers -------------------------------------------------------------- Moody's Investors Service said in a recently published report that regulatory changes in the Argentine pension system made effective earlier this year will have an impact on the role of previsional life and annuity insurance companies in the country. In this report, Moody's comments that key changes arising from recent reforms in pension regulations and laws will negatively affect the profile of insurance companies that have been operating in the previsional life segment. However, the rating agency does not expect rating downgrades because all of the rated previsional life companies are part of larger groups that have diversified operations and revenues. From 2008 onwards, death and disability coverage for participants in pension funds, known locally as AFJPs, that used to be underwritten by life companies involved in the previsional life segment will be now managed directly by the pension funds themselves. Report author, Diego Nemirovsky notes: "Companies that are currently involved in the previsional life segment will continue administering their in-force business in this segment on a run- off basis, but will not generate new business going forward. As a result of this lost business, the life insurance companies whose operations have been concentrated in the previsional life business could see a significant decline in their revenues and income." The report goes on to say that some of these insurers will likely expand and diversify their strategy and operations into other business lines. Mr. Nemirovsky adds that "the credit implication for any business diversification strategy will be company specific given its diversification plans, capital, and capabilities deployed in the new business". Another important change commented in the report refers to new interest recognition standards for annuity companies operating in the previsional annuity segment. On this matter, the national insurance regulator introduced a new methodology for crediting excess investment returns above the guaranteed interest rate, with the primary intention of standardizing the product across the industry. According to Mr. Nemirovsky, "previsional annuity products offered by competing pension companies can now be more easily compared by policyholders and brokers/intermediaries, thereby providing the market with a higher degree of transparency." The report is titled "Changes in the Role of Insurance in the Argentine Pension System". ============= B E R M U D A ============= ASPEN INSURANCE: Ties Up With FRSGloabl for Risk Management ----------------------------------------------------------- Aspen Insurance Holdings Limited has gone live with RiskResolve for Operational Risk Management (ORM), according to FRSGlobal. FRSGlobal RiskResolve is complementary to FRSGlobal FinancialAnalytics, a leading global regulatory reporting framework. It allows managers to create a framework that evaluates potential expected and unexpected losses that can be included in a risk capital calculation. This reflects the demand by regulated financial companies, in addition to banks, to increase ORM and incorporate operational risk statistics into regulatory reporting alongside Market and Credit figures. The overall objective for Aspen�s Group Risk Management team was to add value to the business by providing one overall, clear and effective, seamless framework incorporating the company�s various risk management requirements, with widely shared responsibilities. RiskResolve provides Aspen with a tool that enables it to move away from the spreadsheet approach. Lotfi Baccouche, Aspen�s Group Head of Risk Management said: �At Aspen, we recognized the need to have operational risks captured on-line in a structured manner available to the risk owners across our business units. With RiskResolve, we have a simple, yet powerful solution which aims to provide us with a reliable system, formalizes our approach to Operational Risk, helps us understand our risk exposures and supports our framework.� Stephan Schmitz, RiskResolve Product Manager at FRSGlobal said: �Aspen was looking for a �one stop shop� where all risk, audit and SOX issues come together in a flexible system configurable for their business needs, and suited to their ORM framework. FRSGlobal�s RiskResolve, our experience in the financial sector and the understanding of operational risk matched Aspen�s requirements completely.� About Aspen Insurance Holdings Ltd. Headquartered in Hamilton, Bermuda, Aspen Insurance Holdings Limited (NYSE: AHL) -- http://www.aspen.bm/-- provides reinsurance and insurance coverage to clients in various domestic and global markets through wholly-owned subsidiaries and offices in Bermuda, France, Ireland, the United States, the United Kingdom, and Switzerland. * * * Aspen Insurance Holdings Limited still carries Moody's Investors Services 'Ba1' Preferred Stock rating with a stable outlook assigned on Dec. 21, 2005. =========== B R A Z I L =========== ABITIBIBOWATER INC: S&P Removes Unit's 'B-' Rtg. From Neg. Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services removed Abitibi-Consolidated Inc., a subsidiary of AbitibiBowater Inc. (B-/Negative/--), from CreditWatch with negative implications, where it was placed March 10. The ratings, including the 'B-' long-term corporate credit ratings, on Abitibi-Consolidated, parent AbitibiBowater, and sister company Bowater Inc. (B-/Negative/--), are unchanged. The outlook on all three companies is negative. "We removed the ratings from CreditWatch because Abitibi- Consolidated was successful in refinancing upcoming debt maturities, alleviating significant near-term liquidity pressure," said Standard & Poor's credit analyst Jatinder Mall. The refinancing means that Abitibi-Consolidated has only a small (US$12 million) debt maturity in 2008. "Initially the ratings on Abitibi-Consolidated and Bowater were independent, however, the ratings are becoming more linked as the parent begins to take on debt to provide funds for, and guarantee, subsidiary obligations," Mr. Mall added. The ratings on Montreal-based parent AbitibiBowater reflect the company's participation in the declining newsprint market, its highly leveraged capital structure, and weak cash flow generation. These risks are partially offset by its leading market position in the newsprint market and expectations that synergies and high-cost mill closures could lead to improved profitability. AbitibiBowater is the largest newsprint producer in North America, with annual capacity of about 5.3 million metric tons. The company also produces coated and uncoated paper, pulp, and wood products. It has 27 pulp and paper, and 35 wood product facilities in Canada, the U.S., South Korea, and the U.K. AbitibiBowater's vulnerable business risk profile stems from the continuing decline in the North American newsprint market, which accounts for about half of its total revenues. On a stand-alone basis, Abitibi-Consolidated is more exposed to the newsprint and wood product business. Bowater, on the other hand, is better diversified because it benefits from a robust pulp and coated paper business and has very small exposure to the lumber segment, although it is still largely exposed to declining newsprint. The negative outlook on AbitibiBowater, Abitibi-Consolidated, and Bowater reflects weak market conditions for the newsprint and lumber business segments, and the significant challenges the companies face in rationalizing production capacity to meet deteriorating demand. S&P could lower the ratings on all three if newsprint and lumber prices and demand decline severely and the merged company cannot realize synergies and reduce debt as stated. An upgrade, although unlikely in the near term, would require meaningful deleveraging of the company's balance sheet. Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a result of the combination of Abitibi-Consolidated Inc. and Bowater Incorporated. Pursuant to the transaction, Abitibi- Consolidated Inc. and Bowater Incorporated became subsidiaries of AbitibiBowater. The company produces a wide range of newsprint, commercial printing papers, market pulp and wood products and markets these products to more than 90 countries. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. The company also has newsprint sales offices in Brazil and Singapore. The company's shares also trade at the Toronto Stock Exchange under the stock symbol ABH. ADVANCED MICRO: Weak Quarter Results Cues Moody's Rating Reviews ---------------------------------------------------------------- Moody's Investors Service placed Advanced Micro Devices' B1 corporate family and probability of default ratings, along with its B2 senior unsecured rating, under review for possible downgrade following the company's announcement that first quarter 2008 results will be weaker than anticipated. AMD announced that first quarter revenue will be down 15% sequentially to approximately US$1.5 billion as compared to earlier guidance of a seasonal decline of 7%. The company also announced that it expects to take a charge in the second quarter related to plans to reduce its work force by 10% but that it is unable to quantify the amount of the charge at this time. Given the high fixed cost nature of the microprocessor business in addition to its currently weaker offerings in the high end server market, Moody's expects that a significant portion of the revenue shortfall will fall to the bottom line, resulting in a larger net loss than earlier anticipated. The rating action reflects the ongoing challenges AMD faces in terms of generating sustained profits and cash flow in the face of continued strong competition from Intel throughout its microprocessor offerings, delayed product introductions, and the softer macro environment. In previous reports, Moody's noted that, "AMD's ratings could come under downward pressure to the extent that product launches are delayed, if it experiences operating losses in the second half of 2007, or if cash levels fall below US$1.2 billion. Alternatively, a stabilization of its ratings outlook could emerge if AMD is able to make steady progress towards sustainable free cash flow from operations, which would enhance financial flexibility that is critical in the capital intensive and volatile microprocessor segment." AMD ended fiscal 2007 with about US$1.9 billion of cash and equivalents. Available cash is above the minimum US$1.2 billion level that Moody's has previously outlined would be a trigger to downwards rating pressure, owing largely to the US$608 million equity contribution from the Mubadala Development Company in the fourth quarter of 2007. However, the company's announcement raises the likelihood that a return to profitability will be delayed and that the company will continue to consume cash on an operational basis. The review will focus on: (1) the prospects for a sustained recovery to material levels of profitability and cash flow generation sufficient to internally fund product development and necessary technology transitions and capacity expansion, (2) management's plans to buttress its liquidity position, and (3) the prospects that the company's pending "asset smart" strategy could yield a material change in its operational, debt, and liquidity profile. Rating placed under review include: -- Corporate family rating B1; -- Probability-of-default rating B1; -- US$390 million senior unsecured notes due August 2012 at B2 (LGD5, 73%). Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative processing solutions in the computing, graphics and consumer electronics markets. The company has a facility in Singapore. It has sales offices in Belgium, France, Germany, the United Kingdom, Mexico and Brazil. ADVANCED MICRO: Low Revenues Cues S&P's Neg. Watch on B Rating -------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' corporate credit and senior unsecured ratings on Sunnyvale, California- based Advanced Micro Devices Inc. on CreditWatch with negative implications. The action follows AMD's announcement that first-quarter revenues will be lower than previously expected as a result of weakening business conditions and continued technical challenges. The company now expects a decline in March quarter revenues that exceeds normal seasonality for the quarter, to US$1.5 billion, raising concerns about negative free cash flows and prospects for improvement. Cash balances of US$1.9 billion as of Dec. 31, 2007, are adequate for the near term, although the company appears to have only limited additional sources of liquidity as it addresses overall operational problems. Following competitor Intel Corp.'s (A+/Stable/A-1+) product line refresh in mid-2006, AMD's earlier technology lead and profitability dwindled, while the largely debt-funded acquisition of ATI Technologies Inc. reduced AMD's financial flexibility to deal with marketplace challenges. After generating good operating profitability in late 2005 and early 2006, EBITDA weakened sharply and recovered only moderately in the December quarter. Free cash flow remained at negative US$200 million, despite less capital spending, in the September and December 2007 quarters. The company has been implementing a strategy to reduce its negative free cash flows through a combination of operating cost reductions and continued lower capital expenditures, but progress has been slow and anticipated improvement may be delayed. "We will meet with management to discuss its revised restructuring plan to reduce costs, its progress on new product introduction, and the impact on liquidity and cash flow to resolve the CreditWatch," said Standard & Poor's credit analyst Bruce Hyman. Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative processing solutions in the computing, graphics and consumer electronics markets. The company has a facility in Singapore. It has sales offices in Belgium, France, Germany, the United Kingdom, Mexico and Brazil. AMERICAN AIRLINES: Re-Accommodate Passengers Over Flight Cancels ---------------------------------------------------------------- American Airlines Inc. has canceled more than 1,000 flights as part of the effort to complete inspections on its MD-80 aircraft, and is working to re-accommodate the customers affected by this activity. On April 8, the company canceled about 460 MD-80 flights. "We apologize for the inconvenience this has caused our customers," said American Airlines Chairperson and Chief Executive Officer, Gerard Arpey. "American will do whatever it takes to assist those affected by these flight changes and our employees are working hard to ensure that we remain their choice for air travel. This includes compensating those inconvenienced customers who stayed overnight in a location away from their final destination." The inspections of American Airlines' MD-80 fleet were conducted to ensure precise and complete compliance with a Federal Aviation Administration directive related to the bundling of wires in the wheel well of the aircraft. American has assigned a team of employees -- aviation maintenance technicians, quality assurance inspectors, and engineers -- to inspect the aircraft and ensure full technical compliance, as well as to make any additional adjustments. In addition, the FAA is inspecting the aircraft that have been cleared to return to service. "We continue to inspect every airplane to ensure we are in total agreement with the specifications of the directive. We will get back to a full schedule as quickly as possible," Mr. Arpey said. American also plans to contract with an independent third party to review American's processes for compliance with all future FAA airworthiness directives. This work will ensure that all procedures strictly adhere to the technical elements of every directive so American can avoid this type of schedule disruption in the future. Customers who were inconvenienced with overnight stays can go to AA.com where a link will guide them to instructions on how to receive compensation. Customers also are encouraged to check AA.com or to contact their travel agents for flight status information. 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. CENTRAIS ELETRICAS: Will be Controlling Shareholder in Projects --------------------------------------------------------------- Brazilian President Luiz Inacio Lula da Silva has approved a bill allowing Centrais Eletricas Brasileiras SA to be the controlling shareholder in development projects, Business News Americas reports. According to Centrais Eletricas, the legislation will boost Centrais Eletricas' business flexibility and foreign operations. BNamericas relates that the legislation is part of President da Silva's strategy to increase Centrais Eletricas' "stature" in the power sector. Centrais Eletricas' President Jose Antonio told BNamericas that the law will let the firm transform into the world's largest clean energy generator. Centrais Eletricas Brasileiras SA aka Eletrobras operates in the electric power sector in Brazil. The objective of Eletrobras is to perform activities involving studies, projects, construction and operation of electric power plants, transmission and distribution lines as well as underlying trade operations arising therefrom. Eletrobras is tasked with the preparation of studies and with drawing up construction projects for hydroelectric generation, transmission lines and substations to supply Brazil. It engages areas involving granting loans and financing, providing guarantees, locally or abroad, and acquiring debentures of companies and holders of public electric power services under their control; providing loans and guarantees, locally or abroad, for technical and scientific research institutions; and promoting and supporting researches relating to the power sector, linked to the generation, transmission and distribution of electric power. * * * As reported in the Troubled Company Reporter-Latin America on May 22, 2007, Standard & Poor's Ratings Services raised its long-term foreign currency counterparty credit rating on Centrais Eletricas Brasileiras S.A. aka Eletrobras to 'BB+' from 'BB'. S&P said that outlook is positive. GERDAU SA: May Redirect U.S. Output to Other Markets ---------------------------------------------------- Jorge Gerdau Johannpeter, president of the board at Gerdau SA, suggested that the firm could redirect its U.S. output to other markets, Brazilian news daily DCI reports. DCI relates that Gerdau attributes almost 50% of its revenues to its U.S. operations. The company believes there are ways of getting around a possible recession in the U.S. Mr. Johannpeter told DCI, "Steel is a global commodity driven by global demand, and that demand remains high." Gerdau has avoided the mortgage crisis in the U.S. because most housing in the country is made of wood, Business News Americas relates, citing Mr. Johannpeter. "Our principal role in the US is in the infrastructure sector," Mr. Johannpeter told DCI. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook. GOL LINHAS: To Release First Quarter 2008 Earnings -------------------------------------------------- GOL Linhas Aereas Inteligentes S.A., the parent company of Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas Aereas S.A., disclosed its First Quarter 2008 Earnings Release schedule: Earnings Release for First Quarter 2008: April 30, 2008 (before the market open). The release will be available on the company's website at http://www.voegol.com.br/ir In accordance with fair disclosure and corporate governance best practices, GOL Linhas will respect a Quiet Period that will start on April 14, ending immediately after the conference calls on April 30. Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) -- http://www.voegol.com.br-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As reported in the Troubled Company Reporter-Latin America on July 25, 2007, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Gol Linhas Aereas Inteligentes S.A. Fitch also affirmed the outstanding US$200 million perpetual bonds and US$200 million of senior notes due 2017 at 'BB+' as well as the company's 'AA-' (bra) national scale rating. Fitch said the rating outlook is stable. HEXION SPECIALTY: Extends Merger Pact Termination Date to July 4 ---------------------------------------------------------------- On April 5, 2008, Hexion Specialty Chemicals Inc. exercised an option under its merger agreement with Huntsman Corporation dated as of July 12, 2007, extending the merger agreement termination date by 90 days, to 5:00 p.m. Houston time on July 4, 2008. As reported in the Troubled Company Reporter on April 3, 2008, Hexion disclosed that both it and Huntsman agreed to allow additional time for the Federal Trade Commission to review the proposed merger of the two companies. As a result, the merger is not expected to be completed before May 3. Hexion disclosed on July 12, 2007, that it had entered into a definitive agreement to acquire Huntsman Corporation in an all- cash transaction valued at approximately US$10.6 billion, including the assumption of debt. Under the terms of the Merger Agreement, the cash price per share to be paid by Hexion will increase each day beginning on April 5, 2008, through consummation of the merger at the equivalent of approximately 8% per annum, less any dividends or distributions declared or made. About Huntsman Corporation Based in Salt Lake City, Utah, Huntsman Corporation (NYSE: HUN) -- http://www.huntsman.com/-- manufactures and markets differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. At Dec. 31, 2007, Huntsman Corp's consolidated balance sheet showed US$8.166 billion in total assets, US$6.312 billion in total liabilities, US$26.5 million in minority interests in common stock of consolidated subsidiaries, and US$1.827 billion in total stockholders' equity. About Hexion Specialty Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -- http://www.hexionchem.com/-- is a producer of thermosetting resins, or thermosets. Thermosets are a critical ingredient in virtually all paints, coatings, glues and other adhesives produced for consumer or industrial uses. Hexion Specialty Chemicals is controlled by an affiliate of Apollo Management L.P. The company has locations in Singapore, China, Australia, Netherlands, and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on April 4, 2008, Hexion Specialty Chemicals Inc.'s consolidated balance sheet at Dec. 31, 2007, showed total assets of US$4.006 billion and total liabilities of US$5.392 billion, resulting in a US$1.386 billion total shareholder's deficit. TAM: Podhurst Orseck Files 59 Wrongful Death Suit on Flight 3054 ---------------------------------------------------------------- Masry and Vititoe Partner firm, Podhurst Orseck filed 59 wrongful death lawsuits for the families of passengers killed on July 17, 2007, aboard Brazil's TAM Airlines Flight 3054. The Law Office of Masry and Vititoe is familiar to the public as the firm depicted in the academy award winning film, "Erin Brockovich," starring Julia Roberts. The 59 wrongful death lawsuits stem from the notorious Flight 3054, the worst airline disaster in Brazil's history, when the A320 TAM Linhas Aareas aircraft attempted landing at Sao Paolo's Congonhas airport and slammed into an air cargo building, killing 199 people (187 aboard the plane and 12 ground crew). Aware that the thrust reverser (an instrument that helps planes slow down on landings) had been deactivated during a maintenance check, the pilots mishandled the landing procedures. The parties included in the lawsuits are TAM, leasing company Pegasus Aviation, Airbus, Airbus Customer Services, Goodrich (thrust reverser provider) and International Aero Engines. The devastation was compounded when, within hours of the disaster, TAM released the passenger manifest via the Internet. Abandoning the families of the crash victims to draw their own conclusions, TAM neglected to assign personal contact with the families of the victimized passengers to notify them of their loss. In prior airline crash cases, Masry and Vititoe has partnered with internationally recognized Florida-based aviation attorneys Podhurst Orseck. In addition to the TAM Flight 3054 case, together they also currently represent families of the passengers aboard the Gol Transportes Aeros Flight 1907 that collided with an Embraer Legacy 600 business jet over the Amazon Rainforest in September 2006. They also represent victims' families in the Sibir Airlines crash that involved the same type of Airbus under similar circumstances; they too attempted landing in the rain, failed to stop and crashed into a building resulting in catastrophic loss of life. About Masry & Vititoe Masry and Vititoe -- http://www.masryvititoe.com-- is known for pursuing the rights of individuals who have suffered acute and chronic chemical exposure, as in the Hinkey case on which the movie "Erin Brockovich" was based. The firm represent thousands of injured persons throughout the country, from Hawaii to the East Coast, against some of the world's largest corporations, including Fortune 500 companies, public utilities and oil companies. About Podhurst Orseck Based in Miami, Podhurst Orseck, P.A. -- http://www.podhurst.com -- is a law firm which concentrates exclusively in trial and appellate litigation. The firm's general tort practice places a major emphasis on aviation, automobile, products liability and medical malpractice litigation. In addition, the firm has a substantial practice in commercial, matrimonial and criminal litigation, as well as complex commercial tort litigation. Attorneys serve clients and corporations throughout the United States, and in many foreign countries. About TAM 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. ========================== C A Y M A N I S L A N D S ========================== BEAR STEARNS: Fund Liquidators File US$1BB Action Against Firm -------------------------------------------------------------- Geoffrey Varga and William Cleghorn of Kinetic Partners Cayman LLP, as joint voluntary liquidators of Cayman Islands-based feeder funds Bear Stearns High-Grade Structured Credit Strategies (Overseas), Ltd., and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage (Overseas), Ltd., has initiated a lawsuit seeking US$1 billion in damages against Bear Stearns Asset Management, Inc., The Bear Stearns Companies, Inc., Bear Stearns & Co., Inc., Ralph Cioffi, Matthew Tannin, Raymond Madrigal, and Deloitte Touche LLP. The complaint, filed in the U.S. District Court for the Southern District of New York (Foley Square) on April 4, 2008, accuses Bear Stearns of concealing that the Cayman Feeder Funds were "never designed to withstand even a slight downtrick in the housing market," Bloomberg News reported, citing court documents. The Liquidators asserted in the complaint that Bear Stearns understated the risk of the funds, overstated the funds' performance, and used the funds "as dumping grounds for toxic investments held on Bear Stearns' books," Bloomberg quoted court documents. The complaint also alleges former fund managers Messrs. Cioffi, Tannin and Madrigal of fraud, breach of contract, gross negligence and other legal claims, Bloomberg said. The Liquidators contended in the complaint that Deloitte & Touche, as parent of Deloitte & Touche Cayman, the Funds' auditor, failed to assure investors that it was conducting "independent, thorough, and objective audits," Bloomberg added. "The action seeks recovery of more than US$1 billion of losses sustained by the Overseas Funds as a direct and proximate result of a sophisticated fraud perpetrated by Bear Stearns," the complaint said, according to Bloomberg. The Cayman Feeder Funds, which have sought liquidation proceedings under the Companies Law (2007 Revision) of the Cayman Islands, placed investors' assets into the Master Funds -- Bear Stearns High-Grade Structured Credits Strategies Master Fund, Ltd., and Bear Stearns High-Grade Structured Credits Strategies Enhanced Leverage Master Fund, Ltd. -- both of which also sought liquidation proceedings in the Cayman Islands in July 2007. The Master Funds sought protection of their U.S.- based assets by filing a petition under Chapter 15 of the U.S. Bankruptcy Code. The U.S. Bankruptcy Court, however, has denied the Chapter 15 request. The Master Funds' appeal on that order is pending before the U.S. District Court. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On Aug. 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than US$100,000,000 each. (Bear Stearns Funds Bankruptcy News, Issue No. 19; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). CL ASSETS: Proofs of Claim Filing Deadline is April 17 ------------------------------------------------------ CL Assets Holdings Co., Ltd.'s creditors have until April 17, 2008, to prove their claims to Guy Major and Emile Small, 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. CL Assets' shareholders agreed on March 6, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Guy Major and Emile Small c/o Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands D-LINK CHINA: Sets Final Shareholders Meeting for April 17 ---------------------------------------------------------- D-Link China (Cayman) Inc. will hold its final shareholders' meeting on April 17, 2008, at 10:00 a.m. at No. 289, Xinhu 3rd Road, Neihu District, Taipei City 114, Taiwan. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) determining the manner in which the books, accounts and documentation of the company, and of the liquidator should be disposed of. D-Link China's shareholders agreed on Feb. 27, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: An Ping Chen No. 289, Xinhu 3rd Road Neihu District, Taipei City 114 Taiwan Telephone: 886-2-66000123 Fax: 866-2-27900977 PACTUAL CAPITAL: Sets Final Shareholders Meeting for April 17 ------------------------------------------------------------- Pactual Capital International will hold its final shareholders' meeting on April 17, 2008, at 10:00 a.m. at Clifton House, 75 Fort Street, Grand Cayman KY1-1108, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. Pactual Capital's shareholders agreed on March 3, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Reid Services Limited Clifton House, 75 Fort Street PO. Box 1350, Grand Cayman KY1-1108 Cayman Islands TRIBECA TPC: Proofs of Claim Filing Deadline is April 17 -------------------------------------------------------- Tribeca TPC Investments Ltd.'s creditors have until April 17, 2008, to prove their claims to Jan Neveril and Joshua Grant, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Tribeca TPC's shareholders agreed on Feb. 29, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Joshua Grant Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands UNIVEST DIVERSIFIED: Final Shareholders Meeting is on April 17 -------------------------------------------------------------- Univest Diversified Fund II Ltd. will hold its final shareholders' meeting on April 17, 2008, at 10:00 a.m. at the registered office of the company. These matters will be taken up during the meeting: 1) approval of the conduct of the liquidation by the liquidators S.L.C. Whicker and K.D. Blake; 2) approval of the quantum of the liquidators� remuneration, that being fixed by the time properly spent by the liquidators and their staff; 3) accounting of the winding up process and how the property of the company has been disposed of as at the date of the final meeting and to approve such accounts; and 4) authorizing the liquidators to retain the records of the company and of the liquidators for a period of five years from the dissolution of the company, after which they may be destroyed. Univest Diversified's shareholder decided on Feb. 28, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: S.L.C. Whicker and K.D. Blake Attn: Gundega Tamane P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands Telephone: 345-945-4309 / 345-949-4800 Fax: 345-949-7164 ========= C H I L E ========= AES CORP: Removes US$650MM Deal in South Africa's Power Outage -------------------------------------------------------------- Richard Finlayson, Senior International Editor for Industrial Info Resources, reported that the latest confusion in the power supply crisis is the cancellation of the US$650 million contract for AES Corporation to provide two peak power stations on the Indian Ocean coast to provide a combined total of 1,100 megawatts by the end of 2009. According to the report, public power utilities are, by definition, supposed to strive and plan to maintain a secure supply of electrical power to industry, commerce, institutions and domestic homes. But in an age when auditors don't always audit, accountants are not always accountable and the weather is as unpredictable as government ministers, simple professional objectives are forgotten and, by implication, often derided. South Africa's state-owned power monopoly Eskom is presently searching its soul for a way back to the provision of a secure utility service and is not alone among national power utilities in the rest of the world, faced with power shortages. The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a power company with operations in South America, Europe, Africa, Asia and the Caribbean. The Company generates 44,000 megawatts of electricity through 124 power facilities, and delivers electricity through 15 distribution companies. AES has been in Eastern Europe for over ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. The company has Latin America operations in Argentina, Brazil, Chile, Dominican Republic, El Salvador and Panama. AES's business group in Asia & Middle East is comprised of electric utilities and generation plants in China, India, Kazakhstan, Oman, Qatar, Pakistan and Sri Lanka. Fuels include coal, diesel, hydro, gas and oil. AES has been in the region since 1994, when it acquired the Cili generation plant in China. * * * The AES Corporation still carries Moody's Investors Service's Corporate Family Rating and the senior unsecured rating assigned at B1. The company also carries Fitch Ratings' 'BB/RR1' rating on US$500 million issue of senior unsecured notes due 2017. As reported in the Troubled Company Reporter-Latin America on March 7, 2008, AES Corporation is in default under its senior secured credit facility and its senior unsecured credit facility due to a breach of representation related to its financial statements as set forth in the credit agreements. As a result, US$200 million of the debt under the company's senior secured credit facility will be classified as current on the balance sheet as of Dec. 31, 2007. There are no outstanding borrowings under the senior unsecured facility. =============== C O L O M B I A =============== POLYONE CORP: Intends to Offer its US$50MM Senior Notes Due 2012 ---------------------------------------------------------------- PolyOne Corporation plans to offer US$50 million of its 8.875% senior notes due 2012 to certain institutional investors in an offering exempt from the registration requirements of the Securities Act of 1933. The company intends to use the net proceeds from the offering to reduce a portion of the amount of receivables sold under its receivables sale facility. About PolyOne Corp. Headquartered in northeast Ohio, PolyOne Corporation (NYSE: POL) -- http://www.polyone.com/-- is a provider of specialized polymer materials, services and solutions. PolyOne has operations in North America, Europe, Asia and Australia, and joint ventures in North America and South America. The company maintains operations in China, Colombia, Thailand and Singapore. POLYONE CORP: Moody's Puts 'B1' Rating on Planned US$50MM Notes --------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to the proposed US$50 million of 8.875% senior unsecured notes due 2012. Moody's also affirmed the company's other ratings (corporate family rating at B1). The outlook is stable. The new notes are effectively an add-on to the existing notes that were issued in 2002. Proceeds from the new notes will be used to repay amounts outstanding under the company's accounts receivable program. The outstanding balance has increased due to the normal seasonal working capital build and the January acquisition of GLS Corporation. PolyOne's B1 CFR reflects the company's weak operating margins (3%), difficulties in improving the profitability of its North American operations and the expectation that the company will continue to generate positive free cash flow despite further weakness in the US economy in 2008. While the company's PVC compounding operations have clearly weakened in the past year, its international operations and its SunBelt US chlor alkali venture continue to generate good margins and cash. Additionally, its Distribution business is a relatively steady contributor to earnings over the past year. The stable outlook reflects that the company will maintain reasonable financial metrics and adequate liquidity despite the US housing downturn and further weakness in PVC resins, as new capacity starts up in 2008. While the increase in debt maturing in 2012 is a potential concern, the additional liquidity is much more important at this point in their business cycle. Headquartered in northeast Ohio, PolyOne Corporation (NYSE: POL) -- http://www.polyone.com/-- is a provider of specialized polymer materials, services and solutions. PolyOne has operations in North America, Europe, Asia and Australia, and joint ventures in North America and South America. The company maintains operations in China, Colombia, Thailand and Singapore. PolyOne is also a leading North American distributor of resins; their distribution segment constitutes less than 30% of total sales. The company also owns a 50% share of SunBelt Chlor Alkali Partnership (US$187 million in revenues). ================== C O S T A R I C A ================== DENNY'S CORP: Henry Nasella to Resign from Board Due on May 21 -------------------------------------------------------------- On April 1, 2008, Henry Nasella notified Denny's Corporation of his decision not to stand for re-election to the Board of Directors at the company's upcoming Annual Stockholders meeting on May 21, 2008. Mr. Nasella, 61, served as a board member since 2004 and served on the board's Audit and Finance Committee and Corporate Governance and Nominating Committee. He said his desire to devote more time and attention to other business interests was the primary basis for his decision. Mr. Nasella indicated that he had no disagreements with Denny's, its management or the other directors. About Denny's Corporation Headquartered in Spartanburg, South Carolina, Denny's Corporation (Nasdaq: DENN) -- http://www.dennys.com/-- is a full-service family restaurant chain, consisting of 394 company- owned units and 1,152 franchised and licensed units, with operations in the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico. * * * As reported in the Troubled Company Reporter-Latin America on March 28, 2008, Standard & Poor's Ratings Services revised its outlook on Denny's Corp. to negative from stable. S&P also revised the ratings, including the 'B+' corporate credit rating, on the Spartanburg, South Carolina-based company. Denny's Corp.'s consolidated balance sheet at Dec. 26, 2007, showed US$381.1 million in total assets and $560.0 million in total liabilities, resulting in a US$178.9 million total shareholders' deficit. ============= J A M A I C A ============= AIR JAMAICA: Will Launch Wage Talks with National Workers Union --------------------------------------------------------------- Air Jamaica will try to start wage negotiations with the National Workers Union, which represents its ground staff, Radio Jamaica reports. As reported in the Troubled Company Reporter-Latin America on March 20, 2008, Air Jamaica has an ongoing wage dispute with its ground staff and flight attendants. The workers were dissatisfied over the management's delay in starting talks on new wage contracts for the flight attendants and the ground staff. The last accord for the ground staff expired in December 2006, while the agreement for flight attendants expired in May 2007. The workers "remain extremely restive" over Air Jamaica's taking too long in starting the negotiations, Radio Jamaica relates, citing the National Workers' Vice President Granville Valentine. Mr. Valentine commented to Radio Jamaica, "But it has reached a proportion where we cannot guarantee normalcy if the government and the management of Air Jamaica do not step up to the plate to see how best they can improve on the workers' compensation and standard of living that has deteriorated to such a stage where these workers cannot afford the basic necessities of life." Wage claims for flight attendants represented by the Bustamante Industrial Trade Union was referred to the Finance Ministry, which is supervising Air Jamaica's sale, Radio Jamaica states. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Moody's Investors Service assigned a rating of B1 to Air Jamaica Limited's guaranteed senior unsecured notes. On July 21, 2006, Standard & Poor's Rating Services assigned a "B" long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, based on the government's unconditional guarantee of both principal and interest payments. CASH PLUS: Dates for Repayments Invalid, Says Kevin Bandoian ------------------------------------------------------------ Cash Plus Limited's court-appointed Co-Interim Receiver-Manager Kevin Bandoian has confirmed that the dates for repayments published by the firm's chairperson Carlos Hill are no longer valid, Radio Jamaica reports. According to Mr. Bandoian, Mr. Hill published the repayment dates on March 30, 2008. As reported in the Troubled Company Reporter-Latin America on April 3, 2008, the Supreme Court of Jamaica placed Cash Plus into receivership. Cash Plus admitted that it wouldn't be able to pay its lenders until April 14. The firm has 40,000 lenders with loans totaling J$4 billion. Cash Plus was unable to repay its investors on March 31. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. Mr. Bandoian told Radio Jamaica that Mr. Hill admitted that he couldn't obtain the needed funds to discharge his obligations to investors on April 14, 2008, or access sufficient liquidity to start repayment on the promised date. Information supplied by Mr. Hill last Friday made it clear that the payment plan he had announced would have to be suspended, Radio Jamaica says, citing Mr. Bandoian. Mr. Bandoian told Radio Jamaica that his team was trying to gather all information on Cash Plus' assets to determine what money is available to repay investors. Mr. Bandoian's team has found over 80 affiliates of Cash Plus in several nations, most of them appear to have little or no assets and business activity, Radio Jamaica notes. The report says that "turning to the issue of the books kept by Cash Plus entities and affiliates, Mr. Bandoian noted that what his team had to contend with the existence of conflicting records." Cash Plus Limited is an investment club in Jamaica. It collapsed in 2007 after the Financial Services Commission moved to regulate its operations. The company is a financial arm of the Cash Plus Group of Companies, a business conglomerate established in 2002 by mortgage banker Carlos Hill. The company offers its participants the opportunity to participate in the group's ventures which include mergers and numerous acquisitions. In April this year, the Supreme Court of Jamaica placed Cash Plus into receivership. Cash Plus admitted that it wouldn't be able to pay its lenders until April 14. The firm has 40,000 lenders with loans totaling J$4 billion. Cash Plus was unable to repay its investors. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. CASH PLUS: Hasn't Paid Workers' March Salaries ---------------------------------------------- Cash Plus Limited hasn't paid the March salaries of workers at its phone card distribution center, RJR News Center reports. Radio Jamaica relates that the workers complained that the management hasn't told them when they will be paid. A worker told Radio Jamaica that Cash Plus should have paid them on March 25, 2008, before it was placed into receivership. According to Radio Jamaica, Cash Plus asked the workers last week to sign a new confidentiality agreement which many reportedly resisted doing. The workers told Radio Jamaica that their work load "had fallen dramatically since Cash Plus' Megaphone operation collapsed after the termination of the agreement by its telecoms partner MiPhone." Cash Plus Limited is an investment club in Jamaica. It collapsed in 2007 after the Financial Services Commission moved to regulate its operations. The company is a financial arm of the Cash Plus Group of Companies, a business conglomerate established in 2002 by mortgage banker Carlos Hill. The company offers its participants the opportunity to participate in the group's ventures which include mergers and numerous acquisitions. In April this year, the Supreme Court of Jamaica placed Cash Plus into receivership. Cash Plus admitted that it wouldn't be able to pay its lenders until April 14. The firm has 40,000 lenders with loans totaling J$4 billion. Cash Plus was unable to repay its investors. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. DIGICEL LTD: Sticks to Biz Core, No Media Plans, Says Mr. Delves ---------------------------------------------------------------- Digicel Group chief executive officer Colm Delves has disclosed that the company has no planned to venture into the area of content development or media ownership, instead, it will remain to core business of service delivery, the Jamaica Gleaner reports. Mr. Delves said that a purchase of Carribean media for technology and region expansion is impossible, the report adds. "We know what we are good at, and we don't want to stretch ourselves too thin," said Mr. Delves. Mr. Delves, the report states, told the journalists that there was still opportunity to extract growth for its services, including voice, WiMAX and broadband, from Caribbean markets through consolidation and the addition of services." According to Mr. Delves, the company will be a facilitator and is not seeking to take over media but is always looking for partnerships, the report states. 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: Non-Compliance with JSE Rules Cues Stocks Delisting ---------------------------------------------------------------- The Dyoll Group Limited has been delisted from the Jamaica Stock Exchange on Monday following failure to amend a violation that resulted in a suspension of its shares from trading, the Jamaica Gleaner reports. As executed by the JSE's Board of Directors, the delisting became automatic under Rule 411D of the regulations governing the public trading of shares on the exchange, the report relates. In addition, Rule 411D indicated that any company with shares which has been suspended from trading on the exchange for more than 180 days must be automatically delisted. JSE General Manager Marlene Street Forrest asserted that the company failed to comply with a requirement to submit audited financial statements despite several meetings and discussions. Ms. Forrest has pointed out that the company's continuous violations left the JSE with no option but to delist, the report adds. February 2005 was the first suspension of the trading of Dyoll Group's shares for breaching rule 407 because it failed to submit its quarterly financial statements following Hurricane Ivan in 2004 when there was a huge draw down on insurance claims. Report shows that trading was back after the unaudited financials were filed in October 2005 and representation made by the reconstituted Board of Directors. In March 2007, another trading was suspended for violating JSE rules 404E and 408 for not submitting its annual reports and audited financial statements. Dyoll has since presented unaudited quarterly financials for 2007 and unaudited fourth quarter results for 2006 with an accumulated deficit of US$65.6 million. 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. NATIONAL COMMERCIAL: Court Will Rule on Olint's Appeal on June 2 ---------------------------------------------------------------- The Jamaican court will rule on Olint Limited's appeal against the hiring of former Financial Services Commission Chairperson Michael Hylton as one of the National Commercial Bank's legal representatives on June 2, 2008, Radio Jamaica reports. Radio Jamaica relates that the court adjourned the hearing of the appeal last Monday. As reported in the Troubled Company Reporter-Latin America on April 9, 2008, High Court Judge Roy Jones ruled in favor of the National Commercial in an Olint lawsuit that sought to remove Mr. Hylton from the bank's legal team. Olint wanted 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 assserted 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. 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. =========== M E X I C O =========== EMPRESAS ICA: Adds Four New Members to Board of Directors --------------------------------------------------------- Empresas ICA S.A.B de C.V. said that the Annual Shareholders� Meeting on April 3, 2008, elected four new members of the Board of Directors. The new members are: a) Maria Asuncion Aramburuzabala Larregui Ms. Asuncion is the Chief Executive Officer and Chairwoman of Tresalia Capital. She has been a Director of America Movil S.A.B. de C.V. since 2000. She has been a Director of Grupo Televisa S.A.B. since July 2000 and serves as Vice Chairwoman of the Board. She serves as a Director of Grupo Modelo, S.A.B. de C.V., Grupo Financiero Banamex-Accival, S.A. de C.V. and Kio Networks. b) Alonso Quintana Kawage Mr. Quintana has been the company's Chief Financial Officer since January 2007. Since 1994, he has served Empresas ICA in various capacities, including positions in its construction, corporate finance and project finance areas, and since 2003, on Grupo Aeroportuario del Centro Norte�s board of directors. Mr. Quintana was previously the Director of Management and Finance of Empresas ICA. He received a degree in civil engineering from the Universidad Iberoamericana and a master�s degree in business administration from the Kellogg School of Management at Northwestern University in Chicago. c) Diego Quintana Kawage He has been the Divisional Director of Housing since 2004 and serves as a permanent observer of our board of directors. Mr. Quintana joined ICA in 1995 and previously served as Director of Administration and Finance and General Director of ViveICA. Mr. Quintana is currently vice-president and member of the Executive Commission of the National Chamber of Housing Development. He holds a degree in economics from the Instituto Tecnologico Autonomo de Mexico and has further studies in finance, project analysis, and project management. d) Fernando Flores Perez Mr. Flores is presently founding partner of EFE Consultores, S.C. Mr. Flores has also worked for the administration of President Vicente Fox until December 2006 as General Director and Chairman of the Board of the Mexican Institute of Social Security (Instituto Mexicano del Seguro Social). He also was Undersecretary of the Ministry of Labor for Safety and Preventive Social Planning. He was CEO for Aerovias de Mexico and Chairman and CEO of Compania Mexicana de Aviacion. He was President of the National Chamber of Air Transportation (Camara Nacional del Aerotransporte). Previously he held executive positions in MEXICANA, the Mexican Institute of Social Security, Grupo Industrial DINA, and Combinado Industrial Sahagun. Mr. Flores holds a law degree from the Universidad Iberoamericana and studied in business administration at the same university. As ratified by the Shareholders� Meeting, the Board of Directors of Empresas ICA has 20 members: -- Bernardo Quintana Isaac, Chairman -- Jose Lu�s Guerrero Alvarez -- Sergio Fernando Montano Leon -- Emilio Carrillo Gamboa * -- Alberto Escofet Artigas * -- Luis Fernando Zarate Rocha -- Jorge Bernardo Aguirre Quintana -- Juan Claudio Salles Manuel * -- Esteban Malpica Fomperosa * -- Elmer Franco Macias * -- Alberto Mulas Alonso * -- Fernando Ruiz Sahagun * -- Luis Rubio Freidberg * -- Guillermo Javier Haro Belchez * -- Francisco Javier Garza Zambrano * -- Sergio M. Alcocer Martinez de Castro * -- Maria Asuncion Aramburuzabala Larregui * -- Fernando Flores Perez * -- Alonso Quintana Kawage -- Diego Quintana Kawage * Independent directors under Mexican securities laws. Empresas ICA -- http://www.ica.com.mx/-- the largest engineering, construction, and procurement company in Mexico, was founded in 1947. ICA has completed construction and engineering projects in 21 countries. ICA's principal business units include civil construction and industrial construction. Through its subsidiaries, ICA also develops housing, manages airports, and operates tunnels, highways, and municipal services under government concession contracts and/or partial sale of long-term contract rights. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 20, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Empresas ICA S.A.B. de C.V. S&P said the outlook is stable. ENTRAVISION COMMS: S&P Changes Outlook to Stable; Holds B+ Rtg. --------------------------------------------------------------- Standard & Poor's Rating Services revised its outlook on Entravision Communications Corp. to stable from positive. "Although we still believe ratings have upward potential, the action reflects our expectation of a longer-term path to an upgrade due to challenging advertising demand in 2008 that could limit significant EBITDA growth, as well as uncertainty surrounding Entravision's use of outdoor asset sales proceeds," explained Standard & Poor's credit analyst Michael Altberg. At the same time, Standard & Poor's affirmed its 'B+' corporate credit rating on the company. The Santa Monica, California- based Spanish-language media company had US$484.1 million of total debt outstanding as of Dec. 31, 2007. The rating on Entravision reflects the company's high debt levels, intensifying Spanish-language media competition, potential for advertising volatility, and Hispanic media's inability to generate revenue commensurate with its audience share. Entravision's long-term strategic relationship with shareholder Univision Communications Inc. (B-/Negative/--), favorable trends in Hispanic media, the company's strong conversion of EBITDA to discretionary cash flow, and largely resilient station asset values only partially offset these factors. Headquartered in Santa Monica, California, Entravision Communications Corporation (NYSE: EVC) -- http://www.entravision.com/-- is a diversified Spanish-language media company utilizing a combination of television, radio and outdoor operations to reach approximately 75% of Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision is the largest affiliate group of both Univision television network and Univision's TeleFutura network, with television stations in 20 of the nation's top 50 Hispanic markets in the United States. Entravision owns and operates one of the nation's largest groups of primarily Spanish-language radio stations, consisting of 54 owned and operated radio stations in 21 U.S. markets. Entravision's outdoor advertising operations consist of approximately 11,100 advertising faces located primarily in Los Angeles and New York. MOVIE GALLERY: To Close Approximately 160 Stores ------------------------------------------------ Movie Gallery, Inc. plans to close approximately 160 underperforming Movie Gallery and Hollywood Video stores in its third and final round of store closures. This consolidation of store operations is in addition to the closures previously announced on Feb. 4, 2008 and Sept. 25, 2007. Joe Malugen, chairman, president and chief executive officer of Movie Gallery, said, "While the decision to close stores is never easy, this final consolidation will allow us to further focus our resources on those stores with the strongest operating performance and best prospects for growth after we emerge from bankruptcy. This is another positive step forward in our restructuring to position the Company for profitability and long-term success." "Movie Gallery remains committed to its loyal customers and talented employees. We will work with customers at affected stores to transfer their accounts to other nearby Movie Gallery and Hollywood Video locations where possible," continued Mr. Malugen. "I would also like to thank our many associates and partners for their exceptional customer service and their dedication to the Company. As always, we remain committed to treating all affected employees fairly and providing the necessary assistance to make this transition as smooth as possible." Movie Gallery expects liquidation sales at affected stores to begin in approximately one week and to conclude by April 30. About Movie Gallery Based in Dothan, Alabama, Movie Gallery Inc. -- http://www.moviegallery.com/-- is a home entertainment specialty retailer. The company owns and operates 4,600 retail stores that rent and sell DVDs, videocassettes and video games. The company has operations in Mexico. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq., at Kutak Rock LLP, is the Debtors' local counsel. The Debtors' claims & balloting agent is Kutzman Carson Consultants LLC. When the Debtors' filed for protection from their creditors, they listed total assets of US$891,993,000 and total liabilities of US$1,419,215,000. The Official Committee of Unsecured Creditors has selected Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B. Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl & Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at Miles & Stockbridge PC, as its local counsel. The Debtors' spokeswoman Meaghan Repko said that the company does not expect to exit bankruptcy protection before the second quarter of 2008. The Debtors have until June 13, 2008 to file their plan of reorganization. MOVIE GALLERY: 90% of Creditor Ballots Favor Chapter 11 Plan ------------------------------------------------------------ Movie Gallery, Inc. and its debtor-subsidiaries have received overwhelming creditor support for their Second Amended Joint Plan of Reorganization, as more than 90% of ballots were cast in favor of the Plan. Kurtzman Carson Consultants LLC and Financial Balloting Group, the two voting agents designated by the Debtors, certified the voting results to the U.S. Bankruptcy Court for the Eastern District of Virginia. Tabulation of All Ballots ------------------------- Amount Amount Number Number Accepting Rejecting Accepting Rejecting (% of Amount (% of Amount (% of Amount (% of Amount CLASS Voted) Voted) Voted) Voted) ----- ------ ------ ------ ------ Class 3 US$463,822,968 US$10,973,536 95 4 (97.69%) (2.31%) (95.96%) (4.04%) Class 4 189,579,529 0 9 0 (100%) (0%) (100%) (0%) Class 5 5,902,777 0 4 0 (100%) (0%) (100%) (0%) Class 6 220,522,997 66,990,500 18 7 (76.7%) (23.3%) (72%) (28%) Class 7A 810,973 126,543 48 5 (86.5%) (13.5%) (90.57%) (9.43%) Class 7B 18,272,678 1,152,906 682 47 (100%) (5.93%) (93.55%) (6.45%) Class 7C 3,874 0 2 0 (100%) (0%) (100%) (0%) Class 7D 75,497 0 4 0 (100%) (0%) (100%) (0%) Class 7E 47,074,105 8,553,641 665 111 (84.62%) (15.38%) (85.7%) (14.3%) Class 7F 42,138 0 1 0 (100%) (0%) (100%) (0%) The tabulated votes for Class 7E were cast by general unsecured claimholders against Hollywood Entertainment Corporation. No votes have been received from and tabulated for the 9.625% Senior Subordinate Note Claims. According to James Sean McGuire, a senior consultant at Kurtzman Carson, two claimholders belonging to Class 7A and 12 claimholders from Class 7B abstained and rejected the Release Provision. A complete schedule of the Tabulated Ballots is available for free at: http://researcharchives.com/t/s?2a46 Additionally, certain sets of ballots have not been tabulated because they did not satisfy the requirements for a valid ballot, in accordance with the Disclosure Statement approved by the Court. Ballots that are not tabulated include: * ballots which did not indicate a vote to accept or reject the Plan, a list of which is available for free at: http://researcharchives.com/t/s?2a48 * holders of claims that were objected to by the Debtors no later than March 8, 2008, and without the occurrence of a resolution event, a list of which is available for free at: http://researcharchives.com/t/s?2a47 Pursuant to the Court-approved Disclosure Statement and the Solicitation Procedures, the Debtors (i) have waived any defects or irregularities, and (ii) have deemed to be timely submitted certain ballots, which are: * submitted by electronic means, a list of which is available for free at: http://researcharchives.com/t/s?2a49 * submitted after the Voting Deadline, a list of which is available for free at: http://researcharchives.com/t/s?2a4a * submitted without a signature, a list of which is available for free at http