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 Monday, April 14, 2008, Vol. 9, No. 73 Headlines A R G E N T I N A CASA BELEN: Proofs of Claim Verification Deadline is June 26 DYNAMOTIVE ENERGY: Signs Biomass Supply Deal in Argentina Plants SANFOR SALUD: Trustee to Verify Proofs of Claim Until May 27 W.R. GRACE: To Keep Medical Program to Support Asbestos Victims W.R. GRACE: Wants Court's Approval to Appoint Welsh as Mediator B A R B A D O S AMERICAN AIRLINES: Cancels More Flights as Inspections Continue AMERICAN AIRLINES: Canceled Flights Might Affect L-T S&P's Rtgs. AMERICAN AIRLINES: Flight Cancellations Doesn't Affect Barbados B E R M U D A AMAZON MARITIME: Proofs of Claim Filing Deadline is April 23 AMAZON MARITIME: Sets Final Shareholders Meeting for May 14 DFS BROKERS: Proofs of Claim Filing is Until April 23 DFS BROKERS: Sets Final Shareholders Meeting for May 13 FLUOR CONTINENTAL: Proofs of Claim Filing Deadline is April 23 FLUOR CONTINENTAL: Sets Final Shareholders Meeting for May 12 FOSTER WHEELER: UK Unit Bags Construction Deal from INEOS Feluy HATTERAS REINSURANCE: Proofs of Claim Filing Deadline is May 2 INTELSAT LTD: Galaxy 25 to Expand RRsat Services in NorthAm INTELSAT LTD: Inks Multi-Year Contract with Elite Entertainment INTELSAT LTD: Raymond Svider Joins Firm as Board Chairman SCOTTISH RE: Inks LOI to Recapture Business From Ballantyne Re SCOTTISH RE: Explores Sale of North America Life Reinsurance Biz SEA CONTAINER: Court Approves Entry to Charter Termination Pacts SEA CONTAINERS: Contrarian, et al. Wants Subpoenas Quashed SECURITY CAPITAL: Appoints Fred Corrado & Paul Hellmers to Board SUNVELD INVESTMENT: Proofs of Claim Filing is April 30 SUNVELD INVESTMENT: Sets Final Shareholders Meeting for May 15 B R A Z I L AMERICAN AXLE: New UAW Contract is Still Not Market Competitive AMERICAN AXLE: Union Workers and Supporters to Rally on April 18 AMERICAN AXLE: Strike Could Affect Plastech Operations AMR CORP: Cancels 570 Flights as Aircraft Inspections Resume BNP PARIBAS: Inks Deal With Diebold & Banca Nazionale del Lavoro BR MALLS: Plans Commercial Expansion With CR2 Empreendimentos DELPHI CORP: Moody's Withdraws Low-B Prospective Debt Ratings DRESSER-RAND GROUP: Solid Performance Cues S&P's Rating Upgrades GOL LINHAS: VRG Suspends International Routes to Focus on LatAm HERCULES INC: S&P Upgrades Ratings to 'BB+' on Improved Profile C A Y M A N I S L A N D S BLACK JAGUAR: Proofs of Claim Filing Deadline is April 17 BLUE STREAM: Proofs of Claim Filing is Until April 17 CPS CAYMAN: S&P Assigns BB Rating on Class B Deferrable Interest CRESCENT BROTHERS: Proofs of Claim Filing Deadline is April 17 DAMSEL FUNDING: Proofs of Claim Filing is Until April 17 JOY HOLDINGS: Proofs of Claim Filing is Until April 17 KICAP MASTER: Sets Final Shareholders Meeting for April 17 KICAP NETWORK: Will Hold Final Shareholders Meeting on April 17 OTTIMO FUNDING: Proofs of Claim Filing Deadline is April 17 POWRS 1997-1: Will Hold Final Shareholders on April 17 THE CONTRA FUND: Sets Final Shareholders Meeting for April 17 C O L O M B I A ECOPETROL: Closes Propilco Acquisition Deal GERDAU SA: Regulator Endorses Firm's Plan to Buy Comsisa Shares D O M I N I C A N R E P U B L I C TRAILER BRIDGE: S&P Holds B- Long-Term Corporate Credit Rating J A M A I C A CASH PLUS: Financial Woes May Affect Jamaican Economy CASH PLUS: Police Raid Carlos Hill's Residence M E X I C O CLEAR CHANNEL: Extends Tender Offers Expiration for Senior Notes DISTRIBUTED ENERGY: Appoints UHY LLP as New Independent Auditors FEDERAL-MOGUL: Panel's Special Counsel Seeks US$4.1 Mil. Payment KRISPY KREME: Lenders Approve Modifications in Credit Facilities LEVI STRAUSS: Feb. 24 Balance Sheet Upside-Down by US$318.87 Mln MEGA BRAND: Moody's Chips Ratings After Release of 2007 Results * MEXICO: S&P Publishes Industry Report on Mortgage Companies P E R U DOE RUN: Workers Launch Strike at La Oroya Refining Complex P U E R T O R I C O MAXXAM: Court of Appeals Upholds Judge Hughes' Ruling vs. FDIC R&G FINANCIAL: Gets Regulatory OK for April Dividend Payments SUNCOM WIRELESS: Moody's Ups Rating to 'B2' on T-Mobile Merger UNIVISION COMMS: Fitch Affirms CCC+ Rating on Sr. Unsecured Debt WESTERN RADIOSONIC: Case Summary, 23 Largest Unsecured Creditors V E N E Z U E L A HARVEST NATURAL: Says Venezuela's Windfall Tax Bad for Industry PETROLEOS DE VENEZUELA: Exxon Still Operates Chalmette Plant PETROLEOS DE VENEZUELA: Discloses Strategy at London Congress X X X X X X * BOND PRICING: For the Week April 7 - April 11, 2008 - - - - - ================= A R G E N T I N A ================= CASA BELEN: Proofs of Claim Verification Deadline is June 26 ------------------------------------------------------------ Luis Di Cesare, the court-appointed trustee for Casa Belen SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 26, 2008. Mr. Di Cesare will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 46, 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 Casa Belen 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 Casa Belen's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Di Cesare is also in charge of administering Casa Belen's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Casa Belen SRL General Fructuoso Rivera 6147 Buenos Aires, Argentina The trustee can be reached at: Luis Di Cesare Viamonte 1356 Buenos Aires, Argentina DYNAMOTIVE ENERGY: Signs Biomass Supply Deal in Argentina Plants ---------------------------------------------------------------- Dynamotive Energy Systems Corporation and its subsidiary Dynamotive Latinoamericana S.A., have disclosed the execution of contracts for the provision of biomass for two of its proposed plants in the Province of Corrientes in Argentina. The company said that it has identified, and has been offered, a site for the project within the Municipality of Virasoro. Negotiations in regard to the site are progressing and are expected to be completed in the near term. The signing of the biomass supply contract follows months of cooperative work with the Town of Virasoro which has been instrumental in attracting Dynamotive to the region. This represents a key step in the progress toward the development of the project announced in May, 2007. The contract envisages the delivery by the Municipality of Virasoro of 250,000 wet tonnes (approx. 150,000 dry tonnes) of biomass (sawdust and other forestry operations residues) per year for 10 years. The contract further provides Dynamotive an option to request deliveries beyond the initial 250,000 tonnes envisaged and beyond the initial period. The supply can be further enhanced through the utilization of land filled biomass in the region alleviating a significant environmental issue caused by soil and air pollution as a consequence of stockpiling and burning of biomass. Deliveries of biomass in accordance with the contract are envisaged to commence at the time that the proposed projects become operational. Dynamotive has the option to request earlier deliveries. Dynamotive continues to work with the Municipality of Virasoro and other biomass providers in the region. The development plan envisages up to 6 plants with further potential within the Province of Corrientes. The city of Gobernador Virasoro and the government of the Province of Corrientes have actively supported and continue to support this project. Dynamotive and its development partners in the region are in negotiations with the Province and other users in the region for the purchase of the plants’ output. The project envisages the potential for power generation and / or BioOil and char deliveries to customers. Proposals for the establishment of two power plants in the region have been presented. Further, the company is working with financial institutions who have expressed interest in the financing of the projects subject to conditions precedent being met. The company will report progress as it advances in its negotiations. All parties acknowledge that the project remains subject to satisfactory negotiations and execution of definitive agreements beyond the ones completed. Accordingly, there can be no certainty in respect of the company’s ultimate participation rights in the project, nor of actual completion of them at this time. About BioOil(R) Biofuel BioOil(R) is an industrial fuel produced from cellulose waste material. When combusted it produces substantially less smog- precursor nitrogen oxides (NOx) emissions than conventional oil as well as little or no sulfur oxide gases (SOx), which are a prime cause of acid rain. BioOil(R) and BioOil Plus(TM) are price-competitive replacements for heating oils #2 and #6 that are widely used in industrial boilers and furnaces. They have been EcoLogo certified, having met stringent environmental criteria for industrial fuels as measured by Environment Canada’s Environmental Choice Program. BioOil(R) can be produced from a variety of residue cellulosic biomass resources and is not dependent on food-crop production. About Dynamotive Energy Dynamotive Energy Systems Corporation (OTC BB: DYMTF.OB) -- http://www.dynamotive.com/-- is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA, UK and Argentina. Its carbon/greenhouse gas neutral fast pyrolysis technology uses medium temperatures and oxygen-less conditions to turn dry waste biomass and energy crops into BioOil(TM) for power and heat generation. BioOil(TM) can be further converted into vehicle fuels and chemicals. Going Concern Doubt BDO Dunwoody LLP, in Vancouver, Canada, conducted its audit of Dynamotive Energy Systems Corp.'s consolidated financial statements for the years ended Dec. 31, 2006, and 2005, in accordance with Canadian reporting standards, which do not permit a reference to conditions and events casting substantial doubt about the company's ability to continue as a going concern when these are adequately disclosed in the financial statements. Dynamotive Energy incurred a loss of US$14.3 million for the year ended Dec. 31, 2006. The company's ability to continue as a going concern is dependent on achieving profitable operations, commercializing its BioOil production technology and obtaining the necessary financing in order to develop this technology. SANFOR SALUD: Trustee to Verify Proofs of Claim Until May 27 ------------------------------------------------------------ Hugo Basile, the court-appointed trustee for Sanfor Salud SA's reorganization proceeding, will be verifying creditors' proofs of claim until May 27, 2008. Mr. Basile 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. 34, 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 Sanfor Salud 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 Sanfor Salud's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on March 3, 2009. The debtor can be reached at: Sanfor Salud SA Pasaje King 348 Buenos Aires, Argentina The trustee can be reached at: Hugo Basile Uriburu 782 Buenos Aires, Argentina W.R. GRACE: To Keep Medical Program to Support Asbestos Victims --------------------------------------------------------------- W. R. Grace & Co. plans to retain the Medical Program it established in 2000 to assist local residents with medical needs resulting from their exposure to asbestos from the former Grace mine located near the town of Libby, Montana. "In talking to people in Montana last night, there seemed to be confusion about our medical program," William M. Corcoran, vice president, said. "When we saw some of the comments in the press, we were surprised. We have made it clear for many years that we intend to sustain the health care program when we emerge from Chapter 11 just as we did when we went into bankruptcy." The Libby Medical Program has been in effect since 2000. More than 800 people are currently enrolled in it and receive health care and prescription drug coverage. Since 2000, Grace has spent more than US$14 million on the program. In addition, Grace is making an additional annual contribution of US$250,000 to St. John's Lutheran Hospital in Libby, Montana. Since 2000, Grace has donated more than US$2 million to St. John's to support its work on this important issue. "St. John's is an outstanding health care institution with top notch health care staff," Mr. Corcoran said. "We are pleased that our donations have been used to help purchase state-of-the- art health care equipment and technology for the people of Libby, Montana." About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally including Argentina, Australia and Ireland. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. Estimation of W.R. Grace's asbestos personal injury liabilities commenced on January 14, 2008. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. As of November 30, 2007, W.R. Grace's balance sheet showed total assets of US$3,335,000,000, and total debts of US$3,712,000,000. W.R. GRACE: Wants Court's Approval to Appoint Welsh as Mediator --------------------------------------------------------------- W.R. Grace Co. and its debtor-affiliates ask the United States Bankruptcy Court for the District of Delaware to appoint Diane M. Welsh as the mediator for the asbestos-related property damage claims filed by Speights & Runyan on behalf of individual claimants. James E. O'Neill, Esq., at Pachulski, Stang, Ziehl & Jones LLP, in Wilmington, Delaware, relates that as of April 7, 2008, about 160 S&R Claims remain pending, all of which have been objected to by the Debtors on various grounds. He says the Court directed the Debtors and S&R, in January 2008, to submit to mediation to see if the remaining claims could be resolved. Thereafter, the Debtors and S&R exchanged information with respect to potential mediator candidates. As a result, the Debtors and S&R ultimately agreed on the selection of the Court as the mediator. the Court, according to Mr. O'Neill, served as a U.S. Magistrate Judge in the U.S. District Court for the Eastern District of Pennsylvania for 12 years. As Magistrate Judge, the Court conducted nearly 1,800 settlement conferences in virtually every area of civil litigation. She also served on the Alternative Dispute Resolution Committee for the Eastern District of Pennsylvania District Court for 10 years, drafting local federal court rules for a court-annexed mediation program. Since her retirement in 2005, the Court has served as a mediation and arbitrator with JAMS, an alternative dispute resolution organization. Pursuant to an engagement letter, the Court will be paid for her services at a rate of US$550 per hour plus an initial non- refundable case management fee of US$275 from each of the Debtors and S&R, plus out-of-pocket fees. The Mediator's fees and expenses will be paid equally by the Debtors and S&R. The Debtors and S&R agree to indemnify the Mediator for any damages. To the best of the Debtors' knowledge, the Court is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code, and does not have any interest adverse to the Debtors or their estates or S&R and its clients. Mr. O'Neill says the Court indicated that she can conduct the mediation on April 24 and 25, 2008. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally including Argentina, Australia and Ireland. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. Estimation of W.R. Grace's asbestos personal injury liabilities commenced on January 14, 2008. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. As of November 30, 2007, W.R. Grace's balance sheet showed total assets of US$3,335,000,000, and total debts of US$3,712,000,000. (W.R. Grace Bankruptcy News, Issue No. 156; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) =============== B A R B A D O S =============== AMERICAN AIRLINES: Cancels More Flights as Inspections Continue --------------------------------------------------------------- American Airlines has canceled approximately 570 flights on April 11, as it works to complete the inspections of its MD-80 fleet. The airline continues efforts to re-accommodate customers affected by this week's activity. In the afternoon of April 10, 132 MD-80 aircraft were returned to service. Inspections will continue overnight, with approximately 170 MD-80s expected to be available for service on the morning of April 11. These inspections were conducted to ensure compliance with a Federal Aviation Administration directive related to the bundling of wires in the wheel well of the MD-80 aircraft. American Airlines apologizes for any inconvenience this activity has created for its customers. On Thursday, American Airlines canceled over 930 flights related to the MD-80 inspections. That follows the cancellation of 1,094 flights on Wednesday and 460 canceled flights on Tuesday. Customers who were scheduled on a flight that was canceled may request a full refund or apply the value of their ticket toward future travel on American Airlines. Additionally, customers scheduled to travel on any MD-80 flight April 8-13, even if their flight has not been canceled, may rebook without a change fee to any AA flight with availability in the same cabin as long as their travel begins by April 17. Customers who were inconvenienced with overnight stays should go to AA.com where a link has been established to request information about compensation. Customers also are encouraged to continue to check AA.com or to contact their travel agents for flight status information. About American Airlines 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 Barbados, 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. AMERICAN AIRLINES: Canceled Flights Might Affect L-T S&P's Rtgs. ---------------------------------------------------------------- Standard & Poor's Ratings Services does not expect American Airlines Inc.'s (B/Negative/--) widespread flight cancellations to have an impact on its ratings on the company or parent AMR Corp. (B/Negative/B-3), unless the disruptions are prolonged or more serious. S&P revised its outlook on AMR Corp. and American Airlines to negative from positive, and lowered its short-term rating on AMR Corp. to 'B-3' from 'B-2' on March 24, 2008. Still, AMR Corp. is likely to suffer a noticeable financial impact in the second quarter, mostly because of lost revenue and the cost of rebooking delayed passengers. The scale of the cancellations is beyond what would be caused by major storms affecting an airline's hub, the most nearly comparable situation. Further, American Airlines is providing more assistance, in the form of travel vouchers, overnight accommodations, etc., than it might in the case of weather- related cancellations. Major storms affecting hubs have sometimes hurt earnings up to US$20 million to US$30 million, but the damage in this case will likely be worse. Perhaps the only factors working in the company's favor are that its competitors' planes are already so crowded that it is not possible to book many passengers on other airlines, and American is not the first airline recently to have cancellations and a public relations problem related to maintenance. A longer-term issue, which will affect all of the United States airlines, is that these persistent operational problems at multiple carriers may make them more wary of raising fares further to offset very high fuel prices. It only takes one large airline to block an attempted general fare increase by not matching higher ticket prices, and American, and possibly other airlines, may be hesitant to raise prices on the heels of such well-publicized problems. The timing of these problems is unfortunate, as air travel demand is likely to be softer than last year, due to the very weak economy, and very high fuel prices are adding billions of dollars to airlines' expenses. About American Airlines 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 Barbados, 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. AMERICAN AIRLINES: Flight Cancellations Doesn't Affect Barbados --------------------------------------------------------------- American Airlines Inc.'s three days of cancellation of over 900 flights hasn't affected Barbados, Lisa Lorde at Caribbean Broadcasting Corp. reports. As reported in the Troubled Company Reporter-Latin America on April 10, 2008, American Airlines canceled several hundred flights to conduct additional inspections of its MD-80 fleet to ensure precise and complete compliance with the Federal Aviation Administration's airworthiness directive related to the bundling of wires in the aircraft's wheel wells. These inspections -- based on Federal Aviation Administration audits -- are related to detailed, technical compliance issues and not safety-of- flight issues. All flights to and from Barbados and their connecting flights are on schedule, CBC says, citing an American Airlines representative. The safety inspections are only for the MD-80 aircraft. Barbados wasn't affected since the island is serviced by the Airbus, CBC states. 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. ============= B E R M U D A ============= AMAZON MARITIME: Proofs of Claim Filing Deadline is April 23 ------------------------------------------------------------ Amazon Maritime Ltd.'s creditors have until April 23, 2008, to prove their claims to Christopher C. Morris, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Amazon Maritime's shareholder decided on April 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: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda AMAZON MARITIME: Sets Final Shareholders Meeting for May 14 ----------------------------------------------------------- Amazon Maritime Ltd. will hold its final shareholders' meeting on May 14, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. Amazon Maritime's shareholder decided on April 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: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda DFS BROKERS: Proofs of Claim Filing is Until April 23 ----------------------------------------------------- DFS Brokers Limited's creditors have until April 23, 2008, to prove their claims to Christopher C. Morris, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. DFS Brokers' shareholders agreed on March 31, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda DFS BROKERS: Sets Final Shareholders Meeting for May 13 ------------------------------------------------------- DFS Brokers Limited will hold its final shareholders' meeting on May 13, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. DFS Brokers' shareholders agreed on March 31, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda FLUOR CONTINENTAL: Proofs of Claim Filing Deadline is April 23 -------------------------------------------------------------- Fluor Continental Limited's creditors have until April 23, 2008, to prove their claims to Christopher C. Morris, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Fluor Continental's shareholders agreed on April 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda FLUOR CONTINENTAL: Sets Final Shareholders Meeting for May 12 ------------------------------------------------------------- Fluor Continental Limited will hold its final shareholders' meeting on May 12, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. Fluor Continental's shareholders agreed on April 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda FOSTER WHEELER: UK Unit Bags Construction Deal from INEOS Feluy --------------------------------------------------------------- Foster Wheeler Ltd.'s UK subsidiary, Foster Wheeler Energy Limited, part of its Global Engineering and Construction Group, has been awarded a contract by INEOS Feluy SPRL for the engineering, procurement and construction phase of the expansion of INEOS' existing polyalphaolefins (PAO) plant at Feluy, located south of Brussels, Belgium. The Foster Wheeler contract value, which was not disclosed, was included in the company's fourth-quarter 2007 bookings. This contract will be executed by Foster Wheeler's Glasgow Operation in the UK which has undertaken both the feasibility study and front-end engineering design for the project. “We are pleased that INEOS has demonstrated its continued confidence in Foster Wheeler by selecting us for the EPC phase of this project,” said Michael J. Beaumont, chairman and chief executive officer, Foster Wheeler Energy Limited. “This award reflects our technical expertise and our track record of delivering world-class engineering, procurement and construction performance on chemicals projects around the world.” “This is a significant step in our overall goal to support growth in the PAO market,” said Jeff Seed, Operations Director, INEOS Oligomers. Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. The company reported total debt of approximately US$150 million at Sept. 30, 2007. HATTERAS REINSURANCE: Proofs of Claim Filing Deadline is May 2 -------------------------------------------------------------- Hatteras Reinsurance Limited's creditors have until May 2, 2008, to prove their claims to Michael Morrison and Charles Thresh, 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. Creditors who have already filed proofs of claim may contact: James Bennett E-mail: jamesbennett@kpmg.bm Phone: +1 441 294 2603 Hatteras Reinsurance's shareholders decided to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Michael Morrison and Charles Thresh c/o KPMG Advisory Limited Crown House, 4 Par-la-Ville Road Hamilton HM 08, Bermuda INTELSAT LTD: Galaxy 25 to Expand RRsat Services in NorthAm ----------------------------------------------------------- Intelsat Ltd. reported that RRsat Global Communications Network Ltd., a global provider of comprehensive content management and distribution services to the television and radio broadcasting industries, signed a multi-year contract on Intelsat’s Galaxy 25 satellite to expand RRsat’s services into the North American region. RRsat contracted for capacity on Intelsat’s Galaxy 25 satellite for content broadcasting throughout North America. The Galaxy 25 satellite located at 97 degrees West within Intelsat’s valuable Galaxy neighborhood is the largest ethnic video platform, offering programmers and content distributors access to the U.S. cable community, reaching millions of homes. RRsat will leverage the Galaxy 25 capacity to distribute regional television programming from Europe and Asia into the U.S. cable market. “We are pleased once again to expand our premier RRsat Global Network over Intelsat’s Galaxy 25 satellite. This new multi- year contract will further develop our North American coverage, enabling us to increase our solutions offering, meeting our customers’ growing demands for our comprehensive content management and global distribution services,” said Lior Rival, RRsat’s Vice President Sales & Marketing. “Likewise, the Galaxy 25 will allow us the opportunity to expand our tailored program distribution offering to current and new customers throughout the United States.” “Globalization of content is one of the biggest trends creating demand for satellite capacity. Our long-standing relationship with RRsat exemplifies how Intelsat delivers regional programming to the world,” said Jean-Philippe Gillet, Intelsat’s Regional Vice President, Europe & Middle East Sales. “Throughout the past years, RRsat has been able to seamlessly provide additional content to its established clientele and forge new customers throughout Africa, Asia and North America, utilizing Intelsat’s industry-leading satellite fleet. Our fleet is supporting the top global DTH and cable neighborhoods in regions where ethnic content is most in demand.” About RRsat Global RRsat Global Communications Network Ltd. (NASDAQ:RRST) provides global, comprehensive, content management and distribution services to the rapidly expanding television and radio broadcasting industries. Through its proprietary “RRsat Global Network,” composed of satellite and terrestrial fiber optic transmission capacity and the public Internet, RRsat is able to offer high quality and flexible global distribution services for content providers. RRsat's comprehensive content management services include producing and playing out TV content as well as providing satellite newsgathering services (SNG). RRsat concurrently provide these services to more than 425 television and radio channels, covering more than 150 countries. About Intelsat Ltd. Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. The company has a sales office in Brazil. Intelsat, Ltd.'s December 31 balance sheet showed total assets of US$12,053,332, total liabilities of US$12,775,716 and stockholders' deficit of US$722,384. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. S&P said the outlook is stable. INTELSAT LTD: Inks Multi-Year Contract with Elite Entertainment --------------------------------------------------------------- Intelsat Ltd. has entered a multi-year, multi-transponder contract with Bogota-based Elite Entertainment Television S.A. to distribute DTH content to its customers in Colombia. Elite Entertainment is the 28th DTH platform hosted on the Intelsat global network. Under the terms of the contract, Elite will use Intelsat’s capacity to distribute its programming bouquet of movies, sports, news and entertainment. The National Commission of Television of Colombia (CNTV) awarded the country’s third DTH license to Elite Entertainment Television S.A. “Intelsat offers us a flexible and powerful space segment solution that allows us to enter the DTH market in Colombia with a high quality service,” said Ivan Almeyda, Executive Vice President for Elite Entertainment. “We are confident that Intelsat is the right partner now and in the future as we expand and develop our service in Colombia and the region.” “Intelsat provides the satellite capacity that enables world- class solutions for video distribution throughout the world. Delivering this new DTH content demonstrates our commitment to our customers and our customers’ end users,” said Carmen Gonzalez-Sanfeliu, Intelsat’s Regional Vice President for Latin America & the Caribbean. “South America is an important region for Intelsat and this agreement affirms Intelsat’s position as the leading satellite services company serving Latin America.” About Elite Entertainment Based in Bogota, Colombia, Elite Entertainment Television S.A. was granted the third DTH services license for Colombia by the Colombian authorities. Elite Entertainment will deliver outstanding satellite based television services to Colombian customers beginning in the third quarter of this year. Elite will offer its services with the most advanced technology available in the market. About Intelsat Ltd. Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. The company has a sales office in Brazil. Intelsat, Ltd.'s December 31 balance sheet showed total assets of US$12,053,332, total liabilities of US$12,775,716 and stockholders' deficit of US$722,384. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. S&P said the outlook is stable. INTELSAT LTD: Raymond Svider Joins Firm as Board Chairman --------------------------------------------------------- Intelsat Ltd. has selected Raymond Svider, a Managing Partner of BC Partners, Intelsat’s majority shareholder, to the position of Chairman at a recent meeting of the Intelsat Board of Directors. Mr. Svider will replace Joseph Wright, who recently notified the company of his resignation as Chairman of the Board and Director of Intelsat, Ltd., effective May 1, 2008. David McGlade, Intelsat’s Chief Executive Officer stated, “Joe Wright has been a key figure in the success of the fixed satellite services industry. From his days on the PanAmSat board, through his distinguished service as PanAmSat’s CEO, to the last two years as Intelsat’s Chairman, he has been a major force in the positive changes that have shaped our sector. Joe’s valuable insights as we combined Intelsat and PanAmSat, particularly with respect to our government business, allowed Intelsat to quickly obtain the benefits of our ‘one company’ operating structure. We wish him every success in his future endeavors.” Mr. Svider is expected to assume the Chairman role upon Mr. Wright’s vacating the post on May 1, 2008. Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. The company has a sales office in Brazil. Intelsat, Ltd.'s December 31 balance sheet showed total assets of US$12,053,332, total liabilities of US$12,775,716 and stockholders' deficit of US$722,384. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. S&P said the outlook is stable. SCOTTISH RE: Inks LOI to Recapture Business From Ballantyne Re -------------------------------------------------------------- On March 31, 2008, Scottish Re Group Limited, Scottish Re (U.S.) Inc., Scottish Re Life (Bermuda) Limited, Scottish Re (Dublin) Limited and Scottish Annuity & Life Insurance Company (Cayman) Ltd. entered into a binding letter of intent with ING North America Insurance Corporation, ING America Insurance Holdings Inc., Security Life of Denver Insurance Company and Security Life of Denver International Ltd. Under the letter of intent, Security Life of Denver Insurance Company consented to the recapture, in one or more transactions, of a pro-rata portion of the business that had been ceded by Scottish Re (U.S.) Inc. to Ballantyne Re plc, an orphan special purpose vehicle incorporated under the laws of Ireland for the purpose of collateralizing the statutory reserve requirements of the Valuation of Life Insurance Policies Model Regulation XXX for a portion of the business acquired by the company from Security Life of Denver Insurance Company and Security Life of Denver International Ltd. at the end of 2004. The Recaptures would extend to up to US$375,000,000 of excess statutory reserves on the subject business and would involve, among other things, amendments to the coinsurance agreements between Scottish Re (U.S.) Inc. and Security Life of Denver Insurance Company. The consent to the Recaptures is subject to several conditions. The Recaptures are primarily designed to allow Scottish Re (U.S.) Inc. to continue to receive full credit for reinsurance for the business ceded to Ballantyne. Immediately following the consummation of each Recapture, Security Life of Denver Insurance Company will recapture the Recaptured Business from Scottish Re (U.S.) Inc. in exchange for consideration from Scottish Re (U.S.) Inc. to Security Life of Denver Insurance Company. Security Life of Denver Insurance Company will then cede the Recaptured Business to Security Life of Denver International Ltd., which will cede the Recaptured Business to Scottish Re Life (Bermuda) Limited. Scottish Re Life (Bermuda) Limited may cede the Recaptured Business to either of Scottish Annuity & Life Insurance Company (Cayman) Ltd. or Scottish Re (Dublin) Limited. Security Life of Denver International Ltd. has agreed to provide, or cause the provision of, one or more letters of credit in order to provide Security Life of Denver Insurance Company with statutory financial statement credit for the excess of the U.S. statutory reserves associated with the Recaptured Business over the economic reserves held in an account related thereto. The company will bear the costs of the Letters of Credit by paying to Security Life of Denver Insurance Company a facility fee based on the face amount of such Letters of Credit outstanding as of the end of the preceding calendar quarter. If certain conditions are not satisfied by Dec. 31, 2008, or otherwise satisfied on or before April 30, 2009, the facility Fee will be stepped up and the company will pay a commitment fee for use of the facility. Under the letter of intent, the parties also agreed to promptly effect, following the completion of the first Recapture, an assignment from Scottish Re (U.S.) Inc. to Security Life of Denver Insurance Company, and the assumption by Security Life of Denver Insurance Company, of all of Scottish Re (U.S.) Inc.'s rights and obligations solely with respect to the reinsurance agreement and reinsurance trust agreement previously entered into between Scottish Re (U.S.) Inc. and Ballantyne, with the effect that Security Life of Denver Insurance Company would be substituted for Scottish Re (U.S.) Inc. as the ceding company under such reinsurance agreement and as the beneficiary under the related reinsurance trust account. Security Life of Denver Insurance Company would not assume any other rights or obligations of Scottish Re (U.S.) Inc. with regard to Ballantyne. The parties have agreed to use reasonable best efforts to complete such transaction by June 30, 2008. The LOI further provides that Security Life of Denver Insurance Company's consent to any Recapture is subject to the condition that the parties receive the consent (as necessary) of the financial guarantors to the outstanding Ballantyne debt to the assignment and assumption, and also that ING receive certain regulatory approvals and explications. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Ireland, Singapore, the United Kingdom and the United States. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (U.S.) Inc., and Scottish Re Limited. As of Sept. 30, 2007, the company's consolidated balance sheet showed US$13.372 billion in total assets, US$11.939 billion in total liabilities, US$7.4 million in minority interest, US$555.9 million in convertible cumulative participating preferred shares, and US$869.3 million in total shareholders' equity. * * * As reported in the Troubled Company Reporter-Latin America on March 14, 2008, Moody's Investors Service downgraded the preferred stock debt rating of Scottish Re Group Limited to Caa3 from B2, and the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company Ltd. and Scottish Re Inc., were lowered to Ba3 from Baa3. The ratings were left on review for possible further downgrade, continuing a review that had been initiated on Feb. 15. SCOTTISH RE: Explores Sale of North America Life Reinsurance Biz ---------------------------------------------------------------- Scottish Re Group Ltd. disclosed in a regulatory filing with the Securities and Exchange Commission dated April 4, 2008, that the company's Board of Directors, in furtherance of its previously announced strategy to develop opportunities to maximize the value of the company's core competitive capabilities within the Life Reinsurance North America Segment, has instructed management to explore the possible sale of all or part of the business constituting the Life Reinsurance North America Segment. The company has retained Merrill Lynch to act as financial advisor for this purpose. With respect to the sale of the Life Reinsurance International Segment, the company retained Keefe, Bruyette & Woods to act as its financial advisor. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Ireland, Singapore, the United Kingdom and the United States. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (U.S.) Inc., and Scottish Re Limited. As of Sept. 30, 2007, the company's consolidated balance sheet showed US$13.372 billion in total assets, US$11.939 billion in total liabilities, US$7.4 million in minority interest, US$555.9 million in convertible cumulative participating preferred shares, and US$869.3 million in total shareholders' equity. * * * As reported in the Troubled Company Reporter-Latin America on March 14, 2008, Moody's Investors Service downgraded the preferred stock debt rating of Scottish Re Group Limited to Caa3 from B2, and the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company Ltd. and Scottish Re Inc., were lowered to Ba3 from Baa3. The ratings were left on review for possible further downgrade, continuing a review that had been initiated on Feb. 15. SEA CONTAINER: Court Approves Entry to Charter Termination Pacts ---------------------------------------------------------------- The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware authorized Sea Containers Ltd. and its debtor-affiliates to enter into two Charter Termination Agreements in connection with the sale of SeaStreak America, Inc., and Highlands Landing Corporation by non-debtor affiliate, Sea Containers America, Inc., to New England Fast Ferries for US$3,000,000. Upon consummation of the Agreements, the Charter Guarantees and all other related obligations of SCL will be deemed terminated and otherwise released in accordance with the terms of the Agreements. Judge Carey ruled that for the avoidance of doubt, nothing will be deemed to: (i) alter or elevate the prepetition nature and priority of any claims asserted by CitiCapital Commercial Leasing Corporation and Chase Equipment Leasing, Inc., with respect to any obligations arising under the Charter Guarantees or the Charter Termination Agreements; or (ii) give rise to postpetition administrative claims with respect to those obligations. Judge Carey maintained that with respect to the Debtors, the Official Committee of Unsecured Creditors of Sea Containers Ltd., and the Official Committee of Unsecured Creditors of Sea Containers Services Ltd., the Agreements and the sale of SeaStreak America, Inc., will not prejudice any parties' rights and defenses with respect to: -- the Services Agreement dated August 18, 1989, between SCL and SCSL, to the extent applicable; -- the final determination of the existence, amount and treatment of any related or underlying inter-company claims; and -- the appropriate allocation of any proceeds, costs or obligations. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court gave the Debtors until April 15, 2008 to file a plan of reorganization. (Sea Containers Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Contrarian, et al. Wants Subpoenas Quashed ---------------------------------------------------------- Bondholders Contrarian Capital Advisors, LLC, J.P. Morgan Securities Inc., Credit Trading Group, Post Advisory Group, LLC, Trilogy Capital LLC, and Varde Investment Partners, L.P., ask the U.S. Bankruptcy Court for the District of Delaware to quash certain subpoenas dated March 5, 2008, served by the Official Committee of Unsecured Creditors of Sea Containers Services Ltd. In the alternative, the Bondholders seek a protective order pursuant to Rule 45(c)(3) of the Federal Rules of Civil Procedure, made applicable by Rule 9016 of the Federal Rules of Bankruptcy Procedure. The Debtors had asked the Court to approve their proposed settlement with the SCSL Committee, and the Trustees of the 1983 and 1990 Pension Schemes. Neal J. Levitsky, Esq., at Fox Rothschild LLP, in Wilmington, Delaware, relates that the Official Committee of Unsecured Creditors of Sea Containers Ltd. has indicated that it will object to the Settlement Request, and accordingly, has served document requests and deposition notices on the Settlement Parties. He notes that the SCSL Committee, but not the Pension Schemes, has also served discovery requests on the SCL Committee. Mr. Levitsky discloses that the Bondholders' counsel has attended the Settlement negotiations, but the Bondholders have not formally objected to the Settlement, filed any pleadings or participated in any discovery. Yet, the SCSL Committee served each of the Bondholders with separate Subpoenas, seeking extensive document productions and depositions under Rule 30(b)(6) of the Federal Rule of Civil Procedure on 17 separate topics. The Bondholders assert that the discovery requests "overwhelmingly appear to relate" to communications between them and others concerning the Settlement or the Settlement Request, including: -- communications related to the claims asserted by the Pension Schemes, analyses and valuations of the Pension Claims, and the application of prudent investor discount rate; -- documents, expert reports, and other evidence, on which theBondholders would rely if they file an objection to the Settlement Request; -- documents concerning communications between the Bondholders and The Pensions Regulator; and -- communications between the Bondholders, the Debtors, the SCL Committee, or any of the Debtors' DIP Lenders concerning whether the SCSL Committee violated the automatic stay. In addition, the Subpoenas seek information related to the SCSL Committee's request for compliance under Rule 2019(a) of the Federal Rules of Bankruptcy Procedure, including documents and deposition testimony concerning amounts of the Bondholders' claims or interests and notes, the jurisdiction in which the account holding the notes is located, and the name of the beneficial holders of the notes, among other things. Mr. Levitsky contends that the discovery sought by the SCSL Committee is improper, and the Court should quash the Subpoenas or enter a Protective Order. He argues that it is unclear what litigation value, if any, is gained from the pursuit of extensive and costly discovery from third-party creditors like the Bondholders, regarding a decision that the Debtors have made and must justify. He further notes that the Bondholders are not parties to the Settlement, and cannot provide evidence as to why the Debtors believe the Settlement is a reasonable one. The extensive discovery sought by the Subpoenas is not only irrelevant, it will also impose substantial burden and costs on the Bondholders, Mr. Levitsky tells the Court. He points out that the Subpoenas were served by the SCSL Committee, which is not a party to the Settlement Request, or even a creditor of the SCL bankruptcy estate. Therefore, he says, the SCSL Committee can demonstrate no proper reason or legal basis to seek discovery. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court gave the Debtors until April 15, 2008 to file a plan of reorganization. (Sea Containers Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SECURITY CAPITAL: Appoints Fred Corrado & Paul Hellmers to Board ---------------------------------------------------------------- Security Capital Assurance Ltd has appointed Fred Corrado and Paul E. Hellmers to the company's board of directors. Following these two appointments, the board will have nine members. "We are pleased to welcome Fred and Paul as new members of the board. Their collective expertise in finance and risk management will be a strong addition to the company's board and we look forward to the counsel and experience that they will bring to SCA," said Security Capital's chairperson, Michael P. Esposito, Jr. Mr. Corrado is being nominated as a Class II Director to fill the vacancy created by the resignation of Brian M. O'Hara from the company's board on Nov. 26, 2007. Mr. Hellmers is being nominated as a Class I Director to fill the vacancy created by the resignation of Alan Z. Senter from the company's board on Dec. 27, 2007. Mr. Corrado has over 40 years experience in finance, general management and corporate governance. Mr. Hellmers has over 25 years of diverse investment banking, real estate, insurance and general management experience. Mr. Corrado served as chief financial officer and vice chairman of the board of directors for Great Atlantic & Pacific Tea Co., Inc. from his appointment in 1992 to his retirement in 2002. He joined Great Atlantic in 1987. Prior to that, he served as president and chief operating officer of Nabisco Brands Ltd. from 1984 to 1986 and was a member of its board of directors. Mr. Corrado joined Nabisco in 1973. Mr. Corrado currently serves as director and audit committee chair of Novell, Inc. (since November 2002). He also is a member of the Approva Corporation advisory board of directors (since 2005); a director of the New Jersey Performing Arts Center (since 1999); and is a business strategy, acquisitions and integration consultant (since 2002). From 1998 to 2006, he served as director, member of the executive committee and chair of the finance committee of Covenant House. Mr. Corrado is a certified public accountant in New York State; a member of AICPA and NYSSCPA; a member of FEI and former chairman of their CFO Financial Advisory Council. He graduated with a B.B.A. from Manhattan College and is a graduate of Harvard Graduate School of Business' Advanced Management Program. Mr. Hellmers served as president and chief executive officer of Centre Solutions (Bermuda) Ltd from 1998 to 2002. From 1995 to 1998, he served as managing director and co-founder of Zurich Structured Finance. Prior to that, he served as a principal for Morgan Stanley & Co., Inc. in the Fixed Income Division, Structured Finance and Real Estate Debt Capital Markets Group and in the Investment Banking Division, Capital Markets Group, where he was a founding member of the Interest Rate and Currency Swap Group. Since 2004, Mr. Hellmers has served as the co-chairperson of the board of directors and Executive Director of Phoenix Four, Inc. He graduated summa cum laude from the University of California at Los Angeles with a B.A. and received his M.B.A. from Stanford University. The company also announced that its annual general meeting of shareholders will be held at the offices of Security Capital Assurance Ltd, A.S. Cooper Building, 26 Reid Street, Hamilton, HM 11, Bermuda on May 20, 2008 at 8:30 a.m. local time. About Security Capital Security Capital Assurance Ltd. (NYSE: SCA) -- http://www.scafg.com-- is a Bermuda-domiciled holding company whose primary operating subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd, provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. * * * As reported in the Troubled Company Reporter-Latin America on April 2, 2008, Standard & Poor's Ratings Services lowered its rating on Security Capital Assurance Ltd.'s series A perpetual noncumulative preference shares to 'D' from 'C'. At the same time, S&P removed the rating from CreditWatch with negative implications. The rating action follows the company's failure to make its March 31, 2008, dividend payment. SUNVELD INVESTMENT: Proofs of Claim Filing is April 30 ------------------------------------------------------ Sunveld Investment Ltd.'s creditors have until April 30, 2008, to prove their claims to Christopher C. Morris, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Sunveld Investment's shareholders agreed on April 2, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Christopher C. Morris Arthur Morris, Christensen & Co. Century House, 16 Par-la-Ville Road Hamilton HM 08, Bermuda SUNVELD INVESTMENT: Sets Final Shareholders Meeting for May 15 -------------------------------------------------------------- Sunveld Investment Ltd. will hold its final shareholders' meeting on May 15, 2008, at 10:00 a.m. at Arthur Morris, Christensen & Co., Century House, 16 Par-la-Ville Road, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. Sunveld Investment's shareholders agreed on April 2, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Christopher C. Morris Arthur Morris, Christensen & Co. Century House, 16 Par-la-Ville Road Hamilton HM 08, Bermuda =========== B R A Z I L =========== AMERICAN AXLE: New UAW Contract is Still Not Market Competitive --------------------------------------------------------------- Negotiations between American Axle & Manufacturing Holdings Inc. and United Auto Workers union representatives will continue despite the rejection of new UAW proposal by Axle, Reuters reports. Axle admits the new contract was better, but the total cost was still roughly 200% above the market rate for Axle's competitors in the U.S. auto parts industry. Reuters says negotiators came back to the bargaining table offering a new contract on Wednesday. As reported in the Troubled Company Reporter on March 31, 2008, Axle's Chief Executive Officer Richard Dauch berated the UAW for the work stoppage that has caused a chain reaction in the U.S. auto industry. The CEO added that the auto parts manufacturer may end up outsourcing its manufacturing division if talks with the UAW negotiations fail. CEO Dauch said that the company has the right to outsource its work since they have facilities all over the globe -- Mexico, South America, Europe, and Asia. Mr. Dauch added that Axle will not be forced into bankruptcy. As previously reported in the TCR, labor talks ceased on March 11 after a bargaining that lasted three days failed to produce results. Union officials weren't happy with the terms proposed by the auto parts company. Axle is demanding wage reductions of up to US$14 an hour as well as elimination of future retiree health care and defined benefit pensions for active workers. Axle, which earned US$37 million on US$3.25 billion sales in 2007, wanted a deal like those UAW gave General Motors Corp., Ford Motor Co., Chrysler LLC, and parts makers Delphi Corp. and Dana Corp., insisting that cutting labor costs is essential to be competitive. The auto parts supplier is asking the union to approve US$20 to US$30 hourly wage cuts from US$73 per hour to US$27 per hour, arguing that its original U.S. Locations incurred losses for three years. The March 11 talks would have resolved a strike, which started Feb. 26, 2008, of the 3,650 employees at master-contract plants in Michigan and New York. Strike Impact on Automakers GM has about 29 facilities affected by the strike at Axle as the supplier attempts to negotiate with the union. GM president and COO Frederick Henderson said GM won't meddle in the labor dispute between AAM and the UAW. As reported in the TCR on March 27, 2008, the month-long work protest of union members at Axle is taking its toll on GM, threatening the automaker's brake part plant in Lordstown, Ohio, which has 2,400 workers. Chrysler LLC is temporarily closing its vehicle assembly facility in Newark, Delaware as the strike among UAW union members at AAM stretches. AAM supplies Chrysler components for the Dodge Durango and Chrysler Aspen sport utility vehicles in Newark and two versions of the Dodge Ram pickup made in Saltillo, Mexico. About Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter on April 4, 2008, Moody's Investors Service placed American Axle & Manufacturing Holdings, Inc.'s Ba3 Corporate Family Rating under review for downgrade. As reported in the Troubled Company Reporter on Nov. 27, 2007, Moody's Investors Service affirmed American Axle & Manufacturing Holdings, Inc.'s Corporate Family rating of Ba3 as well its senior unsecured rating of Ba3 to American Axle & Manufacturing Inc.'s notes and term loan. At the same time, the rating agency revised the rating outlook to stable from negative and renewed the Speculative Grade Liquidity rating of SGL-1. AMERICAN AXLE: Union Workers and Supporters to Rally on April 18 ---------------------------------------------------------------- United Auto Workers union members and supporters will rally at 11:30 a.m. on April 18, 2008, at Detroit's Hart Plaza to support striking workers at American Axle & Manufacturing Holdings Inc. More than 3,500 UAW members from UAW Locals 235, 262 and 2093 in Michigan and UAW Locals 424 and 826 in New York have been on strike since Feb. 26 to protest unfair labor practices. "The support our members have received during this strike is overwhelming," UAW President Ron Gettelfinger said. "We've heard from members of the clergy, from local businesses, from community leaders -- and of course from UAW members and the entire labor movement." "Our rally on April 18th will be a great time to show solidarity with American Axle strikers, and to demonstrate support for keeping manufacturing jobs here in the United States," Mr. Gettelfinger said. "Even business publications like the Automotive News can't understand how American Axle can justify giving pay raises to executives while demanding pay cuts from workers," UAW Vice President James Settles Jr., who directs the union's American Axle Department, said. "In addition to their unjustified economic demands," Mr. Settles said, "AAM has refused to provide us the information we need for bargaining, and has illegally cut off disability payments and health care for injured workers, as well as compensation -- including health care -- for laid off workers. That's why this is an unfair labor practices strike." "Our members at American Axle are standing up for what's right -- and we're inviting our entire community to stand with us on April 18th at Hart Plaza." Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter on April 4, 2008, Moody's Investors Service placed American Axle & Manufacturing Holdings, Inc.'s Ba3 Corporate Family Rating under review for downgrade. As reported in the Troubled Company Reporter on Nov. 27, 2007, Moody's Investors Service affirmed American Axle & Manufacturing Holdings, Inc.'s Corporate Family rating of Ba3 as well its senior unsecured rating of Ba3 to American Axle & Manufacturing Inc.'s notes and term loan. At the same time, the rating agency revised the rating outlook to stable from negative and renewed the Speculative Grade Liquidity rating of SGL-1. AMERICAN AXLE: Strike Could Affect Plastech Operations ------------------------------------------------------ According to the Holland Sentinel, the strike by American Axle and Manufacturing Holdings Inc. workers could affect Plastech Engineered Products, Inc. and its debtor-affiliates. As widely reported, The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, which represents American Axle's employees, has called for a strike and mass picket against Axle at its Detroit, Michigan, headquarters. The strike, which has been ongoing for more than five weeks, has forced General Motors Corp., one of Plastech's key customers, to idle or ramp down production at 30 of its plants that make large trucks and sports utility vehicles. Union officials say the company may soon have to bring down lines in Kansas City, Kan., and Orion Township near Detroit that make the Chevy Malibu, the Holland Sentinel reported. Plastech runs Johnson Controls, Inc.' Southview plant in Holland, Michigan, and has 30 employees who make the floor consoles for the Malibu. If the Malibu production is interrupted, so too would the production of the interior parts for the vehicle, according to the same report. The strike, which involved 3,650 workers, started due to American Axle's withholding of data regarding pensions, health care and profit sharing. The company has also sought to cut wages and benefits by half, according to the Detroit Free Press. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on April 4, 2008, Moody's Investors Service placed American Axle & Manufacturing Holdings, Inc.'s Ba3 Corporate Family Rating under review for downgrade. As reported in the Troubled Company Reporter-Latin America on Nov. 27, 2007, Moody's Investors Service affirmed American Axle & Manufacturing Holdings, Inc.'s Corporate Family rating of Ba3 as well its senior unsecured rating of Ba3 to American Axle & Manufacturing Inc.'s notes and term loan. At the same time, the rating agency revised the rating outlook to stable from negative and renewed the Speculative Grade Liquidity rating of SGL-1. AMR CORP: Cancels 570 Flights as Aircraft Inspections Resume ------------------------------------------------------------ AMR Corp. principal subsidiary American Airlines Inc. canceled approximately 570 flights on April 11, 2008, as it works to complete the inspections of its MD-80 fleet. The airline continues efforts to re-accommodate customers affected by this week's activity. As of Thursday afternoon, 132 MD-80 aircraft were returned to service. Inspections will continue overnight, with approximately 170 MD-80s expected to be available for service on Friday morning. As reported in yesterday's Troubled Company Reporter, American Airlines canceled more than 900 flights on Thursday. As of Wednesday afternoon, * 179 MD-80 aircraft were completely inspected; * 60 of the 179 MD-80s were returned to service; * 119 of the 179 MD-80s were still undergoing work; * 121 MD-80s remain to be inspected. On Wednesday, American officially canceled 1,094 flights, in addition to the 460 canceled on Tuesday. "We apologize for the inconvenience this has caused our customers," Gerard Arpey, Chairman and CEO of American Airlines, said. "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." "We continue to inspect every airplane to ensure we are in total agreement with the specifications of the directive," Mr. Arpey said. "We will get back to a full schedule as quickly as possible." These inspections were conducted to ensure compliance with a Federal Aviation Administration directive related to the bundling of wires in the aircraft's wheel well of the MD-80 aircraft. These inspections -- based on FAA audits -- are related to detailed, technical compliance issues and not safety-of-flight issues. 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 scheduled on a flight that was canceled may request a full refund or apply the value of their ticket toward future travel on American Airlines. Additionally, customers scheduled to travel on any MD-80 flight April 8-13, even if their flight has not been canceled, may rebook without a change fee to any AA flight with availability in the same cabin as long as their travel begins by April 17. Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, including Brazil, Europe and Asia. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. * * * 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. BNP PARIBAS: Inks Deal With Diebold & Banca Nazionale del Lavoro ---------------------------------------------------------------- Diebold, Incorporated has reported a deal with Banca Nazionale del Lavoro -- part of the Banque Nationale de Paris and Paribas Group -- to supply 143 automated teller machines with deposit automation capability at the bank's branches throughout Italy. The new ATMs, which are able to accept bulk check and cash deposits, will help Banca Nazionale del Lavoro improve branch efficiency and provide new services for its customers. The agreement was announced in Paris at Diebold's annual European customer conference. Diebold is supplying Banca Nazionale del Lavoro with Opteva(R) 720 and 760 ATMs that will be deployed by the bank during the second quarter of 2008. The fully automated Opteva terminals represent the next generation of ATMs for the financial sector. The benefit for the customer is that they are able to carry out transactions without entering the branch; at the same time, banks benefit from being able to focus on higher value services, given that less time will now be spent on simple deposit transactions. Diebold vice president and general manager for South Europe, Danilo Rivalta said, "Deposit automation is key to the branch transformation we are seeing in the retail banking industry, and Diebold is well-positioned to play a valuable role in this process." This latest announcement represents the next phase of a long- term strategic relationship between Diebold and Banca Nazionale del Lavoro. Previously, Diebold worked with the bank to introduce the Agilis Power(R) software package, enabling the bank to centrally manage approximately 1,000 Web-based ATMs from three different providers. "This recent success is a very important one for Diebold," Mr. Rivalta said. "BNL's decision to choose our deposit automation ATMs acts as a testament to the quality of both the products and services we provide." About Diebold Inc. Diebold, Incorporated -- http://www.diebold.com-- is a global leader in providing integrated self-service delivery and security systems and services. The company employs more than 17,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold reported revenue of US$2.9 billion in 2006 and is publicly traded on the New York Stock Exchange under the symbol 'DBD.' About Banca Nazionale del Lavoro Banca Nazionale del Lavoro SpA is an Italian banking firm. Founded in 1913 as Istituto di Credito per la Cooperazione, it was nationalized in 1929. It was re-privatized and listed on the Milan Stock Exchange in 1998, before being acquired by French banking group BNP Paribas in 2006. It is Italy's sixth largest bank. Banca Nazionale del Lavoro began Argentinian operations in 1960, ultimately opening 91 branches, before selling its operation there to HSBC Bank Argentina in 2006. About BNP Paribas Headquartered in Paris, France, BNP Paribas -- http://www.bnpparibas.com/-- is one of the main banks in Europe and France created through the merger of Banque Nationale de Paris and Paribas. Banco BNP Paribas Brasil SA is a subsidiary of BNP Paribas in Sao Paulo, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2008, Moody's Investors Service has upgraded BNP Paribas'Series 430 notes to Ba2 from B2 by and Series 458 notes to Ba2 from B3. Both notes are credit-linked to Brazil. BR MALLS: Plans Commercial Expansion With CR2 Empreendimentos ------------------------------------------------------------- BR Malls Participacoes S.A. and CR2 Empreendimentos Imobiliarios S.A. have announced their intention to acquire the land bank attached to Shopping Plaza Niteroi with the purpose of expanding the shopping mall and constructing a commercial tower. The expansion should add approximately 10,000 square meters to BR Malls' owned GLA. In accordance with the memorandum of understanding signed on this date, BR Malls will be responsible for 100% of the area allocated for the expansion of Shopping Plaza Niteroi and CR2 for 100% of the commercial building. Headquartered in Rio de Janeiro, Brazil, BR Malls is the largest integrated shopping mall company in Brazil with a portfolio of 30 malls, representing 894.3 thousand m2 in total Gross Leasable Area (GLA) and 372.6 thousand m2 in owned GLA. BR Malls is also Brazil's largest shopping mall service provider, managing and leasing 29 malls. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to BR Malls International Finance Ltd.'s forthcoming perpetual notes. It is a wholly owned subsidiary of Brazil-based shopping mall company BR Malls Participacoes S.A. (BR Malls; BB-/Stable/--). BR Malls and its direct subsidiaries unconditionally guarantee the perpetual notes. DELPHI CORP: Moody's Withdraws Low-B Prospective Debt Ratings ------------------------------------------------------------- Moody's Investors Service withdrawn Delphi Corporation's prospective debt ratings for its emergence financing. Although Delphi was successful in arranging commitments for its first lien term loans of US$1.7 billion, a first lien revolving credit of US$1.6 billion and General Motors Corporation and a GM affiliate agreed to accept up to US$2.825 billion of second lien term debt, equity participants in the financing structure have filed a notice of termination on their earlier undertaking to provide US$2.55 billion of capital. The absence of equity funding terminates Delphi's plans to emerge from bankruptcy by April 4, 2008. Delphi may need to renegotiate multiple agreements with other parties as well as seek new investors to proceed with a fresh emergence plan. Significant agreements with the Internal Revenue Service and the Pension Benefit Guaranty Corporation will have to be extended. In addition, the company may need to revisit the maturity of its current Debtor in Possession financing which is set to expire at the end of June 2008. Material agreements with its domestic workforce are not affected by developments on the emergence financing. Ratings being withdrawn are those listed in Moody's earlier releases which were: Delphi Corporation -- Corporate Family Rating, (P)B2 -- Probability of Default, (P)B2 -- Outlook, Stable -- US$1,500 million first lien term loan, (P)Ba2 (LGD-2, 17%) -- US$2,825 million second lien term loan, (P)B2 (LGD-4, 52%) -- Speculative Grade Liquidity rating, SGL-2 -- Delphi Holdings Luxembourg S.ar.l -- equivalent of US$200 million first lien term loan, guaranteed by Delphi Corporation, (P)Ba2 (LGD-2, 17%) Moody's ratings had been assigned on a prospective basis and assumed a full subscription to Delphi's proposed debt and equity financing as well as receiving bankruptcy court affirmation of an effective date of emergence. As those events have not occurred, the ratings have been withdrawn. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. DRESSER-RAND GROUP: Solid Performance Cues S&P's Rating Upgrades ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit ratings on Houston-based capital equipment provider Dresser-Rand Group Inc. to 'BB' from 'BB-'. The outlook is stable. In addition, S&P raised the issue rating on the senior secured revolving credit facility to 'BBB-' from 'BB+' and left the recovery rating unchanged at '1'. S&P also raised the issue rating on the subordinated notes to 'BB-' from 'B+'. The recovery rating on this debt remains at '5'. "The ratings upgrade is driven by Dresser-Rand's solid operating performance, which meaningfully improved credit measures over the past year," said Standard & Poor's credit analyst Aniki Saha-Yannopoulos. In addition, favorable market conditions demonstrated by the growing margins of the new units, combined with strong aftermarket service margins, aid performance over the near term. Additional factors were the company's ability to generate free cash flow and voluntary debt repayment through 2007. The stable outlook reflects S&P's expectation that Dresser-Rand will maintain its improved operating performance and continue to generate free cash flow. Headquartered in Houston, Texas, Dresser-Rand Group Inc. (NYSE: DRC) -- http://www.dresser-rand.com/-- supplies rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. The company operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 26 service and support centers covering more than 140 countries. GOL LINHAS: VRG Suspends International Routes to Focus on LatAm --------------------------------------------------------------- GOL Linhas Aereas Inteligentes S.A., the parent company of Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas Aereas S.A., disclosed that VRG Linhas is restructuring its international routes, focusing on better adapting to market conditions, increasing its presence in the domestic and South American markets and concentrating efforts on routes where it maintains competitive advantages. Operating costs in the highly competitive international market have increased substantially with persistent increases in oil prices, which recently hit a record high of US$112 per barrel. The cost of fuel has been impacted by the prices of WTI and Gulf Coast Jet, which increased on average 68 and 61 percent, respectively, in the first quarter of 2008 compared to first quarter 2007. Fuel currently represents nearly 40 percent of VRG's operating costs. The company's focus is to expand its route network in Brazil and South America by maintaining a lean cost structure and increasing revenues. An important step in this plan was taken in March, with the introduction VRG's new domestic flight network. After several changes to the international route network to focus on South American destinations, VRG Linhas will continue to offer daily flights to Bogota, Buenos Aires, Caracas and Santiago. To this end, VRG Linhas will suspend flights to several international destinations over the next two months. Flights to Mexico City will be suspended on May 11, flights to Madrid on May 12 and operations to Paris will cease on June 9. This strategic decision was a responsible and calculated response based on careful analysis of external factors and competitive attributes of the services offered by VRG that are affecting consolidation of the company's performance in these markets. VRG Linhas is committed to providing assistance to those customers who have already purchased one-way or return tickets to suspended destinations after the dates announced and will maintain open, transparent communications to address any customer concerns. Alternative flight information will be available on the company's website, http://www.varig.com.br. For customers with questions, they may call telephone number: 0800-728-7787 (toll-free). The service will be available 24 hours a day, seven days a week. Customers who prefer a refund should work directly with their travel agent, while customers who purchased tickets directly from VRG can request a refund by e-mail to: reembolso.central@varig.com. About GOL 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. HERCULES INC: S&P Upgrades Ratings to 'BB+' on Improved Profile --------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Hercules Inc., including the corporate credit rating to 'BB+' from 'BB'. The outlook is stable. The upgrades reflect the company's improved financial profile and the likelihood that cash flow protection measures and other key ratios will be maintained at levels that are in line with S&P's expectations for the revised ratings. "Hercules' strengthened financial metrics have benefited in part from management's commitment to improve credit quality, as evidenced by steady debt reduction," said Standard & Poor's credit analyst Wesley E. Chinn. The ratings reflect Wilmington, Delaware-based Hercules' slightly aggressive, albeit much reduced, debt balance; low- growth, very competitive pulp and paper chemicals markets; and some exposure to asbestos-related liabilities. These negatives are partially offset by Hercules' satisfactory business profile--generating annual revenues of about US$2 billion--in the specialty chemical sector, a long track record of good operating margins, and strengthening cash flow protection measures. Hercules derives roughly 60% of its consolidated operating earnings from the Aqualon group, a leading producer of water- soluble polymers. Diverse end markets include water-based paints and coatings, construction materials, personal care, pharmaceutical, food, and oil and gas drilling. A positive for business fundamentals is a strong global presence, as more than 60% of Aqualon's sales come from outside the U.S. Hercules Inc. (NYSE:HPC) -- http://www.herc.com/-- manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets. The company has its regional headquarters in China and Switzerland, and a production facility in Brazil. ========================== C A Y M A N I S L A N D S ========================== BLACK JAGUAR: Proofs of Claim Filing Deadline is April 17 --------------------------------------------------------- Black Jaguar Holdings Limited's creditors have until April 17, 2008, to prove their claims to Stuart K. Sybersma and Ian A.N. Wight, 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. Black Jaguar's shareholder decided on March 3, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Stuart K. Sybersma and Ian A.N. Wight Attn: Jessica Turnbull Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Telephone: (345) 949 7500 Fax: (345) 949 8258 BLUE STREAM: Proofs of Claim Filing is Until April 17 ----------------------------------------------------- Blue Stream Holdings Limited's creditors have until April 17, 2008, to prove their claims to Stuart K. Sybersma and Ian A.N. Wight, 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. Blue Stream's shareholder decided on March 3, 2008, to place the company into v