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 Tuesday, April 15, 2008, Vol. 9, No. 74 Headlines A R G E N T I N A ALITALIA SPA: Sets April 15 Meeting with Unions CARUSO COMPANIA: Moody's Holds Ba3 Insurance Fin'l Strength Rtng CONTRERAS HERMANOS: Moody's Assigns B3 Corporate Family Rating CREACIONES MI: Proofs of Claim Verification Deadline is June 2 DDIM SRL: Proofs of Claim Verification Deadline is May 26 IMPOMOTOR SA: Proofs of Claim Verification is Until May 23 RNG SRL: Proofs of Claim Verification Deadline is May 16 SUMMIT GROUP: Trustee to Verify Proofs of Claim Until June 4 TOPFRUITS SA: Proofs of Claim Verification is Until July 15 B A H A M A S ULTRAPETROL (BAHAMAS): Moody's Stays B2 Rating on US$180MM Notes B A R B A D O S AMERICAN AIRLINES: Cancels 200 MD-80 Flights on Saturday B E R M U D A COSAN LTD: S&P Assigns Long-Term Corporate Credit Rating at BB INTELSAT LTD: Galaxy 14 Signs Contract with Rainbow Network INTELSAT LTD: IPTV to Supply Video Programming to Cruise Ships INTERNATIONAL ENERGY: Proofs of Claim Filing is Until May 2 INTERNATIONAL ENERGY: Sets Final Shareholders Meeting for May 14 SCOTTISH RE: A.M. Best Cuts Issuer Credit Ratings to bb- From bb SHELL OVERSEAS: Liquidation Stayed at Shareholder's Request B R A Z I L DELPHI CORP: Shareholder Settlement Hearing Set for April 29 DIRECTV GROUP: Stake Swap Results in Two Board Seats for Liberty DIRECTV GROUP: FCC Sees Liberty Media Deal to Benefit Public EMBRATEL PARTICIPACOES: Seeks Regulator Okay for Paid TV License GENERAL MOTORS: Idles Assembly Plant Due to AAM Workers' Strike GENERAL MOTORS: Supplier's Workers Strike Won't Affect S&P Rtg. JAPAN AIRLINES: To Seek Compensation for Dreamliner Delay MILACRON INC: Dec. 31 Balance Sheet Upside-Down by US$51.1 Mil. NORTEL NETWORKS: Posts US$844 Mil. Net Loss in 4th Quarter 2007 PERDIGAO SA: Board Approves Eleva Alimentos Merger Proposal PERDIGAO SA: Board Approves BRL0.37/Share Interest Distribution TAM SA: Flies 52,900 Passengers Since Signing TAP Portugal Deal C A Y M A N I S L A N D S AVALON RE: S&P Cuts Class C Notes' Debt Rating to CC From CCC- CAYMAN SPECIALTY: Sets Final Shareholders Meeting for April 17 DD EURO: Sets Final Shareholders Meeting for April 17 DD EURO GROWTH: Final Shareholders Meeting is on April 17 GANNET VI: Proofs of Claim Filing Deadline is April 17 HARBOR WAREHOUSE: Proofs of Claim Filing is Until April 17 KBW SMALL: Proofs of Claim Filing Deadline is April 17 PARKER FIELD: Proofs of Claim Filing is Until April 17 PARMALAT SPA: Board Names Bondi as CEO, Picella as Chairman PARMALAT SPA: Extraordinary Shareholders' Meeting Set May 30 PARMALAT SPA: Shareholders Elect Directors' & Auditors' Board POWRS 1997-1: Proofs of Claim Filing Deadline is April 17 TEAMSTAR HOLDINGS: Proofs of Claim Filing is Until April 17 TRIBECA INVESTMENTS: Proofs of Claim Filing Deadline is April 17 C H I L E GASATACAMA: May Go Bankrupt Despite Efforts to Keep Afloat PHELPS DODGE: S&P Ups Rating From BB+ on Adequate Debt Reduction C O L O M B I A BANCOLOMBIA SA: March Unconsolidated Net Income is COP219,621MM SOLUTIA INC: Judge Beatty OKs Bank of New York Settlement Pact SOLUTIA INC: Court Approves Bayer & Lanxess Claims Settlement SOLUTIA INC: Court Approves Quinn Emanuel as Conflicts Counsel TRANSTEL INTERMEDIA: Fitch Holds Junk Ratings, Outlook Stable C O S T A R I C A SIRVA INC: Obtains Additional US$10 Mil. DIP Loan; Panel Objects D O M I N I C A N R E P U B L I C FREESTAR TECH: Posts US$4.5 Million Net Loss in Second Quarter PRC LLC: Wants Action Removal Period Extended to July 21 PRC LLC: Wants Lease Decision Period Extended to August 20 PRC LLC: Wants Site Consolidation Incentive Plan Approved J A M A I C A NATIONAL WATER: Sees Losses of Over J$200 Million in FY2008 M E X I C O AMERICAN AXLE: Reaches Agreements With U.K. & Mexican Unions BALLY TOTAL: Reaches Settlement with SEC After Fraud Allegations CHRYSLER LLC: Plastech to Continue Supply Parts Until March 3 SHARPER IMAGE: Schedules Filing Deadline Extended to April 4 SHARPER IMAGE: Court Grants Request to Pay Vendor Obligations P A N A M A MULTIBANK PANAMA: Fitch Assigns BB-/B ID Ratings, Outlook Stable P U E R T O R I C O TYCO INTERNATIONAL: Shutdowns Aguadilla Plant; Cuts 600 Jobs X X X X X X * S&P Says LatAm & Emerging Markets Offset U.S. Plastic Demand * Large Companies with Insolvent Balance Sheet - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Sets April 15 Meeting with Unions ----------------------------------------------- Alitalia S.p.A. will meet its unions on April 15, 2008, to discuss plans for the national carrier's future after it revealed having only EUR170 million cash-to-hand and short-term financial credits, Bloomberg News reports citing a spokesman for the FILT-CGIL union. As reported in the TCR-Europe on April 10, 2008, Alitalia said it needs substantial financial support, through which it would "be possible to regain the required confidence to pursue the company’s business plan and hence to confirm continuity of operations." Alitalia said in January 2008 that it needs to raise EUR750 million in fresh funds in the first half of the year to remain at "adequate operating levels." The Italian government had pledged to grant Alitalia a EUR300 million bridging loan if the sale of its 49.9% stake to Air France pushes through. The French carrier, however, withdrew its binding offer after failing to receive approval from Alitalia's unions, which Air France needs to finalize the takeover. As reported in the TCR-Europe on April 9, 2008, Air France CEO Jean Cyril Spinetta said that "it's now up to Alitalia and its employees and unions to say how they view the future of their airline." Mr. Spinetta noted that Air France will not submit a new offer, stressing that the plans amended bid presented to unions during the negotiations "is the only one that would enable Alitalia to return to profitable growth within a rapid time frame." Alitalia's unions have expressed willingness to resume talks with Air France. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. CARUSO COMPANIA: Moody's Holds Ba3 Insurance Fin'l Strength Rtng ---------------------------------------------------------------- Moody's Investors Service has affirmed the ratings and stable outlook on the Ba3 global local-currency insurance financial strength rating and the Aa2.ar IFS rating on Argentina's national scale of Caruso Compania Argentina de Seguros S.A. The rating agency explained that Caruso Compania's ratings primarily reflect its significant regional positioning -- with about 4% market share of the Argentine group life insurance segment, as well as steadily excellent profitability, across both investment and underwriting performance. Moreover, the company's capitalization has been stronger than most of the nation's other insurers, and its key ratios and financial profile have been consistently strong during the last few years -- with much less volatility than its rivals. Offsetting these positive trends to some degree, however, is the fact that the company's credit profile is still strongly influenced by significant challenges and weaknesses, Moody's points out. These challenges, the rating agency says, include its lack of product diversification, its significant investment risk -- somewhat offset by its well-diversified investment portfolio -- its small size relative to peers', and the systemic country-specific risk of doing business in Argentina. Caruso Compania reported a net profit of ARS6.1 million during the first half of the 2007/2008 fiscal year, ended Dec. 31 2007. This profit derived from underwriting income of ARS7.4 million, as well as a positive financial result of ARS2.2 million. Total reported assets amounted to ARS91.1 million, and shareholders' equity was ARS53.1 million at Dec. 31, 2007. Based in Cordoba, Argentina, Caruso Compania Argentina de Seguros SA provides multiline insurance coverages, although the company's principal business segment is group life, comprising almost 90% of gross premiums written. The company's products are designed mainly for small-to-medium sized businesses and for medium-to-lower income individuals. It distributes its products in the central and northwestern regions of Argentina. CONTRERAS HERMANOS: Moody's Assigns B3 Corporate Family Rating -------------------------------------------------------------- Moody's Latin America has assigned a B3 local currency corporate family rating and an A3.ar Argentina National Scale corporate family rating to Contreras Hermanos S.A. The outlook is stable. This is the first time that Moody's has assigned a rating to the company. The B3 local currency corporate family rating and A3.ar Argentina National Scale rating reflect Contreras Hermanos' small size, earnings volatility and substantial geographic and project concentration. In addition, the rating is constrained by the company's limited financial disclosure and lack of alternative sources of liquidity at a time when the company is experiencing strong growth rates that may require an increased investment in working capital. The ratings are supported by the company's sound business model, its long-term track record in the Argentine construction industry and its specialty expertise in the oil and gas sector. Its strong credit metrics for its rating category also support the ratings. The company's total revenues for 2007 totaled ARS390 million (approximately US$120 million), which is very low when compared to its international and regional peers. Nevertheless, Contreras Hermanos built an extensive project track record, protected by some barriers to entry. According to Moody's analyst Daniela Cuan, "there are few contractors in Argentina that can offer Contreras's level of expertise and capabilities in the gas industry, and the size of the market is not attractive to bigger international players." The company's project portfolio consists of both private and public sector projects and its main clients are among the major Argentine oil and gas producers. Also considered in the rating are the company's low debt levels and strong credit metrics for the B3 rating category, with a 30% debt to capitalization ratio and less than 1.0 total debt to EBITDA. However, the importance of credits metrics is lessened by the lack of financial disclosure. As a privately-held limited company, Contreras Hermanos is not subject to most of the corporate governance and financial reporting practices of a publicly-traded company. Moody's particularly views as a credit negative the fact that its financial statements are audited by a small, regional auditing firm. Moody's views the company's lack of access to capital markets and other alternate liquidity sources as a credit negative, particularly when considering the lack of a committed credit facility, although bank revolvers are not common among lower rated issuers in Latin America. The stable outlook reflects Moody's expectation that Contreras Hermanos will face challenges to finance its expected strong growth and likely maintain a highly concentrated project portfolio. The outlook also reflects Moody's expectation of prudent financial policies with regard to dividends and the maintenance of strong credit metrics for its rating category. The ratings could be upgraded if the company demonstrates an ability to significantly diversify and increase its revenue base and project backlog while maintaining solid profit margins and earnings stability. Improved governance and financial disclosure, as well as a more predictable liquidity position, could also be positive for the rating. The rating could be negatively impacted by a substantial increase in leverage or deterioration in liquidity, with debt to capitalization of more than 50% and consistently negative retained cash flow. In addition, the ratings could come under downward pressure if the Argentine gas expansion projects in the order backlog were to be suspended or terminated. Headquartered in Buenos Aires, Argentina, Contreras Hermanos S.A. is a family-owned construction company, focused principally on the oil and gas sector, but with additional projects in the civil and industrial infrastructure segments. Consolidated revenues for 2007 were ARS390 million. CREACIONES MI: Proofs of Claim Verification Deadline is June 2 -------------------------------------------------------------- Mabel Herrera, the court-appointed trustee for Creaciones Mi SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 2, 2008. Ms. Herrera 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 Creaciones Mi 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 Creaciones Mi's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Herrera is also in charge of administering Creaciones Mi's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Mabel Herrera Rodriguez Pena 694 Buenos Aires, Argentina DDIM SRL: Proofs of Claim Verification Deadline is May 26 --------------------------------------------------------- Elsa A. Etchegaray Pena, the court-appointed trustee for Ddim S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 26, 2008. Ms. Pena will present the validated claims in court as individual reports on July 7, 2008. The National Commercial Court of First Instance in Mar del Plata, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Ddim 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 Ddim's accounting and banking records will be submitted in court on Aug. 19, 2008. Ms. Pena is also in charge of administering Ddim's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Ddim S.R.L. Aragon 8867, Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Elsa A. Etchegaray Pena Avenida Luro 3894, Mar del Plata Buenos Aires, Argentina IMPOMOTOR SA: Proofs of Claim Verification is Until May 23 ---------------------------------------------------------- Ernesto Carlos Borzone, the court-appointed trustee for Impomotor S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 23, 2008. Mr. Borzone will present the validated claims in court as individual reports on July 7, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Impomotor 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 Impomotor's accounting and banking records will be submitted in court on Sept. 2, 2008. Mr. Borzone is also in charge of administering Impomotor's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Ernesto Carlos Borzone Cuenca 1464 Buenos Aires, Argentina RNG SRL: Proofs of Claim Verification Deadline is May 16 -------------------------------------------------------- Maria Elvira Sagasti, the court-appointed trustee for RNG S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 16, 2008. Ms. Sagasti will present the validated claims in court as individual reports on June 30, 2008. The National Commercial Court of First Instance in San Nicolas, Buenos Aires, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by RNG 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 RNG's accounting and banking records will be submitted in court on Aug. 26, 2008. Ms. Sagasti is also in charge of administering RNG's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: RNG S.R.L. Balcarce 190, San Nicolas Buenos Aires, Argentina The trustee can be reached at: Maria Elvira Sagasti Espana 389, San Nicolas Buenos Aires, Argentina SUMMIT GROUP: Trustee to Verify Proofs of Claim Until June 4 ------------------------------------------------------------ Amalia Mild, the court-appointed trustee for Summit Group Corporation SA's reorganization proceeding, will be verifying creditors' proofs of claim until June 4, 2008. Ms. Mild will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 10 in Buenos Aires, with the assistance of Clerk No. 19, 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 Summit Group 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 Summit Group'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 April 24, 2009. The debtor can be reached at: Summit Group Corporation SA Hipolito Yrigoyen 1530 Buenos Aires, Argentina The trustee can be reached at: Amalia Mild Lavalle 2024 Buenos Aires, Argentina TOPFRUITS SA: Proofs of Claim Verification is Until July 15 ----------------------------------------------------------- Aldo Bassagaisteguy, the court-appointed trustee for Topfruits S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until July 15, 2008. Mr. Bassagaisteguy will present the validated claims in court as individual reports on Sept. 10, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Topfruits 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 Topfruits' accounting and banking records will be submitted in court on Oct. 22, 2008. Mr. Bassagaisteguy is also in charge of administering Topfruits' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Aldo Bassagaisteguy Avenida Roque Saenz Pena 1134 Buenos Aires, Argentina ============= B A H A M A S ============= ULTRAPETROL (BAHAMAS): Moody's Stays B2 Rating on US$180MM Notes ---------------------------------------------------------------- Moody's Investors Service has affirmed the B2 corporate family rating and the B2 rating on the US$180 million 9% guaranteed first mortgage notes due 2014 of Ultrapetrol (Bahamas) Limited. The outlook remains stable. The affirmation reflects the likelihood of strong earnings and operational cash flow growth over the next 18 months against a large capital spending program underway, an adequate liquidity profile, and the company's recently announced US$50 million share repurchase program. Moody's anticipates that Ultrapetrol's use of forward freight agreement (FFA) derivative contracts in the company's ocean segment will materially boost day rates earned on three of the company's chartered oil-bulk- ore vessels above the 2007 levels, which will help boost overall earnings. The higher earnings will be required to supplement Ultrapetrol's December 2007 unrestricted cash balance of US$64 million as the company plans capital spending of US$250 million over 2008-2009, with US$111 million of that 2008-2009 spending committed, in addition to the share repurchase program. The stable outlook reflects Moody's view that day rates on the company's Ocean time charter business will remain strong into 2009 while margins in the company's other segments will not deteriorate and debt financing, to help meet vessel payments, will soon be forthcoming. The stable outlook contemplates that the company's liquidity profile will remain adequate over 2008- 2009 despite the capital spending program and share repurchase plans. Since the company possesses only a US$10 million committed revolving credit facility in addition to the US$64 million unrestricted cash to supplement internal cash flow generation, without new committed borrowings near term, the liquidity profile would weaken in coming months, pressuring the ratings or outlook. Headquartered in Nassau, Bahamas, Ultrapetrol (Bahamas) Limited (Nasdaq: ULTR) -- http://www.ultrapetrol.net/-- is a diverse international marine transportation company. The company operates in four segments: River, Ocean, Offshore Platform Supply and Passenger and had 2007 revenues of US$221.7 million. It serves the shipping markets for grain, forest products, minerals, crude oil, petroleum and refined petroleum products, as well as the offshore oil platform supply market and the leisure passenger cruise market, with its extensive and diverse fleet of vessels. These include river barges and pushboats, platform supply vessels, tankers, oil-bulk-ore vessels and passenger ships. =============== B A R B A D O S =============== AMERICAN AIRLINES: Cancels 200 MD-80 Flights on Saturday -------------------------------------------------------- American Airlines Inc. has canceled approximately 200 MD-80 flights on Saturday, April 12, 2008. By late Friday afternoon, American Airlines had re-inspected and put back into service 231 of its 300 MD-80s; most of the remainder of the fleet was expected to be readied for service Friday night. The airline will operate about 75 percent of its MD-80 schedule early Saturday, with all planes in service by late Saturday afternoon. The airline continues to re-accommodate customers affected by this week's activity as its maintenance work force conducted the final group of safety inspections. These inspections were necessary 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 our customers. On Friday American Airlines canceled approximately 595 flights. 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. 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 ============= COSAN LTD: S&P Assigns Long-Term Corporate Credit Rating at BB -------------------------------------------------------------- Standard & Poor's Ratings Services has assigned its 'BB' long- term corporate credit rating to sugar-cane processor Cosan Ltd. The outlook is stable. "The ratings on Cosan ultimately reflect the risks associated with its main operating subsidiary Cosan S.A. in Brazil. As such, the ratings reflect inherent risks in its operating company commodity-oriented business, which depends on highly volatile and protected sugar and ethanol market conditions worldwide, resulting in volatile EBITDAH margins. The ratings also consider substantial working capital needed to finance the sugar cane crop and a still-aggressive financial risk policy associated with Cosan's growth plans, which could potentially weaken its credit metrics in the medium term," said S&P's credit analyst Vivian Zietemann. These negative rating factors are partly mitigated by the company's advantageous cost position, which results from the favorable climate in Brazil, where its main operation is located, and from efficient operations and logistics. Scale gains from the company's strategic position as the largest sugar cane processor in Brazil also partly compensate for negative rating factors. Finally, Cosan's strong liquidity position, which has improved significantly during the past year, also plays an important role by mitigating business volatility and occasional financial leverage, although S&P believes the company could use part of its cash to finance projected growth. The stable outlook reflects S&P's expectations that Cosan will maintain its leading market position in Brazil and strong export orientation, although the rating agency believes market conditions for 2008-2009 will likely prevent the company from delivering robust operational efficiency. The stable outlook also incorporates S&P's expectation that the company's strong cash position will continue partly mitigating the company's weaker credit metrics projected for the next periods. The ratings could be lowered or the outlook revised to negative if the company fails to recover operational results from 2009 on, delivering EBITDAH margins of less than 15% and weaker cash- flow protection measures, such as FFO-to-total debt ratio consistently lower than 15%. Moreover, an aggressive acquisition plan, especially if financed with additional debt, or comprising high execution risks due to integration of new operations and businesses, would also be a negative rating factor. An upgrade or revision of the outlook to positive would depend on stronger and more stable margins in the 20%-25% range and, more importantly, on consistent reduction in debt leverage, leading the company to stronger credit metrics such as FFO-to- total-debt higher than 35%. An unexpected improvement of the global environment for sugar and ethanol producers, resulting in less protective international markets, could result in significant benefits to Cosan's business and financial risk profiles, and thus result in a positive revision of the ratings. Headquartered in Bermuda, Cosan Limited is a holding company of the Sao Paulo, Brazil-based sugar and ethanol giant, Cosan S.A. Industria e Comercio. The company operates in three segments: sugar, ethanol, and other products and services. It is the result of a corporate restructuring implemented last year, which consisted of its listing on the New York Stock Exchange (NYSE). INTELSAT LTD: Galaxy 14 Signs Contract with Rainbow Network ----------------------------------------------------------- Intelsat Ltd. disclosed that Rainbow Network Communications has signed a multi-year contract on Intelsat’s Galaxy 14 satellite to deliver HD programming into the North American cable market. Intelsat’s valuable, industry-leading Galaxy neighborhood offers transmission services for HD programming being distributed via cable MSOs in the United States, reaching millions of homes. Located at 125 degrees West in the U.S. cable arc, Galaxy 14 is designed to meet the needs of the growing proliferation of HD content. “Intelsat’s Galaxy fleet is the premier platform for advanced content distribution into the North American region,” said Steve Pontillo, Senior Vice President of Broadcasting and Technology, Rainbow Media. “When we examined our options for HD distribution, Intelsat’s Galaxy 14 satellite was ideally positioned to provide us with the North American cable penetration Rainbow Media needed to meet its long-term business objectives.” “Intelsat, through the Galaxy fleet, was the first satellite operator to establish a North American HD neighborhood. Today, Intelsat delivers more than 40 HD channels globally,” said Kurt Riegelman, Intelsat’s Senior Vice President, Global Sales. “High definition programming features prominently in the growth prospects of the media industry, with some analysts forecasting nearly 500 new channel launches by 2012. We will continue to build HD neighborhoods in order to ensure efficient, high value distribution for our programmer customers.” About Rainbow Networks Rainbow Network Communications, a subsidiary of Rainbow Media Holdings LLC, is a full service network programming origination and distribution company supplying an array of services to the cable, broadcast and satellite industries. RNC's state-of-the- art Broadcasting and Technology Center provides HD and SD program delivery, Affiliate Engineering, Network Operations, Traffic and Scheduling and Network Services for seamless, day- to-day domestic and global delivery of any network. RNC's client base includes Rainbow Media's own AMC, The Independent Film Channel, WE tv, VOOM HD Networks, and other premier clients. 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: IPTV to Supply Video Programming to Cruise Ships -------------------------------------------------------------- Intelsat Ltd.'s IPTV has been selected as a distribution platform for programming to cruise ships in the Americas. Wave Entertainment Network(TM), a wholly owned subsidiary of SeaMobile(R) Enterprises, contracted with Intelsat to provide Wave’s industry-leading satellite television via Intelsat’s IPTV platform to cruise ships in certain regions of the world. Wave Entertainment Network is delivering an at-sea and remote location viewing experience rivaling land-based services at home. The Wave network is the first multi-channel, interactive television platform ever to be distributed to passenger cruise ships in all ocean regions around the world. Wave offers abundant content with superior digital picture quality via the satellite delivered Intelsat IPTV system. The system is fully operational and the first ship, Oceania Cruises Insignia, has been deployed. Intelsat’s Galaxy 13/Horizons 1 satellite located at 127 degrees West, along with Intelsat’s IPTV Super Headend at its Mountainside Teleport facility in Maryland will be the primary transmitters of Wave’s channel lineup to the ships in the Americas. Wave’s system will utilize existing on-board tracking C-band antennas to receive the content. “Wave Entertainment Network is the first to serve the cruise industry with multi-channel, interactive television. Such diverse entertainment and communications offerings demand seamless, global connectivity and we continue to find those elements within the Intelsat global network of satellite and teleport facilities,” said Larry Lemoine, President of Wave Entertainment Network. “Wave Entertainment’s television line-up allows guests on cruise ships to experience all of the entertainment choices that they could expect on land. Intelsat's IPTV high-quality distribution platform is not only a leading offering today but it also provides us an opportunity to enhance our service as our business grows.” “With Intelsat IPTV, customers such as Wave Entertainment, receive a wholesale MPEG-4 content aggregation and delivery service that provides flexibility, ability to tailor a solution, cost-savings and high quality programming,” said Michael DeMarco, Intelsat’s Vice President, Video Services. ”Within the past few years, the maritime industry has seen a growing trend of adopting more always-on communications solutions and more diverse entertainment packages—both which can be seamlessly delivered via the Intelsat IPTV platform.” About Wave Entertainment Wave Entertainment Network TV -- http://www.waveentertainment.net/-- offers a diverse, like-at- home broadcast line-up of programming including: satellite TV, video-on-demand, live sports, special interest, kid-focused, live national news, adult programs, and live special events programming. The system uses a combination of satellite technology and special caching technology that allows viewers to experience live events and network programming in time slots they are accustomed to seeing. About SeaMobile Enterprises SeaMobile Enterprises -- http://www.seamobile.com/-- is the dominant global service provider of at-sea communications, connectivity and content services. The company's VSAT solutions are delivered by the industry leader, MTN Satellite Services, a division of SeaMobile specializing in the maritime industry. Its global VSAT satellite communications network offers the reliability that only “Always On – Always Available” systems can provide. Over 350 vessels worldwide, including most cruise ships, the government and military, private yachts, ferries, the offshore energy industry, and commercial shipping customers depend on the company's voice and data networks to keep people connected anywhere in the world. Its premier services include remote access for Internet, fixed and mobile phones, fax, television, on-board newspapers, and direct payroll deposit. 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. INTERNATIONAL ENERGY: Proofs of Claim Filing is Until May 2 ----------------------------------------------------------- International Energy Insurance Limited's creditors have until May 2, 2008, to prove their claims to Heidi Daniels-Roque, 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. International Energy's shareholder decided on April 9, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Heidi Daniels-Roque Sofia House, 1st Floor 48 Church Street, Hamilton Bermuda INTERNATIONAL ENERGY: Sets Final Shareholders Meeting for May 14 ---------------------------------------------------------------- International Energy Insurance Limited will hold its final shareholders meeting on May 14, 2008, at 10:00 a.m., at Sofia House, 1st Floor, 48 Church Street, Hamilton, Bermuda. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. International Energy's shareholder decided on April 9, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Heidi Daniels-Roque Sofia House, 1st Floor 48 Church Street, Hamilton Bermuda SCOTTISH RE: A.M. Best Cuts Issuer Credit Ratings to bb- From bb ---------------------------------------------------------------- A.M. Best Co. has downgraded the financial strength rating to B- from B and the issuer credit ratings to "bb-" from "bb" of the primary operating insurance subsidiaries of Scottish Re Group Limited. A.M. Best also has downgraded the ICR to "ccc+" from "b-" and the various debt ratings of Scottish Re. All ratings have been placed under review with negative implications. Subsequent to the Feb. 27, 2008 rating downgrades, A.M. Best has noted a heightened lack of clarity with respect to Scottish Re's financial strength position, underpinned by continuing deterioration in the credit markets and the likely further declines in the market value of its investment portfolio and assets in various special purpose vehicles (SPV). Scottish Re has twice postponed the filing of its Form 10-K, primarily due to an inability to complete the evaluation of mark-to-market valuations and other temporary impairments in the carrying value of its available for sale securities. The continuing market deterioration in the subprime mortgage loan market will result in additional delinquencies and losses and there remains uncertainty surrounding the ultimate impact of investment write- downs on Scottish Re, its subsidiaries and SPVs such as Ballantyne Re plc. The rating downgrades also reflect A.M. Best's concerns with the ongoing pricing, volatility, valuation and default risk in the mortgage-backed securities market, which could result in an additional negative impact on the company's consolidated balance sheet. A.M. Best notes that Scottish Re remains heavily dependent upon off-shore securitizations for its XXX reserves. Scottish Re recently announced a binding letter of intent with ING North American Insurance Holdings Inc. and its affiliates in which a pro-rata portion of business ceded to Ballantyne, an orphan offshore SPV, would be recaptured. The transaction would allow Scottish Re (U.S.) Inc. to continue to receive full NAIC reserve credit for reinsurance for the business currently ceded to Ballantyne. Erosion in the value of the large position in subprime and Alt-A loans held by Ballantyne would further deplete the capital held within this structure. If any further deficiency were to develop, A.M. Best believes that absent the completion of the ING North America transaction, Scottish Re's operating subsidiaries would be required to pledge additional assets to secure reserve credit outside of the securitization structure. The company also recently expanded the scope of its strategic evaluation to include the sale of its core North American reinsurance business. A.M. Best views this as a departure from Scottish Re's previously announced plans to pursue the disposition of non-core business lines such as its international operations. The ratings will remain under review while A.M. Best monitors the performance of the company's subprime and Alt- A mortgage-backed portfolios and assesses the impact of the ING transaction and the revised strategy on Scottish Re's balance sheet. The FSR has been downgraded to B- from B and the issuer credit ratings to "bb-" from "bb" for these primary operating subsidiaries of Scottish Re Group Limited: -- Scottish Annuity & Life Insurance Company (Cayman) Ltd. -- Scottish Re (U.S.), Inc. -- Scottish Re Life Corporation -- Scottish Re Limited -- Orkney Re, Inc. The ICR has been downgraded to "ccc+" from "b-" for Scottish Re Group Limited. These debt ratings have been downgraded: Scottish Re Group Limited: -- to "ccc-" from "ccc" on US$125 million non-cumulative preferred shares Stingray Pass-Though Trust: -- to "bb-" from "bb" on US$325 million 5.902% senior secured pass-through certificates, due 2012 These indicative ratings have been downgraded: Scottish Re Group Limited: -- to "ccc+" from "b-"on senior unsecured debt -- to "ccc" from "ccc+" on subordinated debt -- to "ccc-" from "ccc" on preferred stock Scottish Holdings Statutory Trust II and III: -- to "ccc" from "ccc+" on preferred securities Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. On Sept. 30, 2007, Scottish Re reported total assets of US$13.4 billion and shareholder's equity of US$869 million. SHELL OVERSEAS: Liquidation Stayed at Shareholder's Request ----------------------------------------------------------- Shell Overseas Trading Limited's liquidation will be stayed at the expiration of 21 days from April 11, 2008, or until April 22, 2008. Robin J. Mayor, the company's liquidator, will give notice of stay to the Official Receiver for Bermuda and the company will be placed back in the state in which it was before the liquidation. The stay application is made at the request of the company's shareholder. Any creditor or shareholder who objects the stay, may make an application to the Supreme Court of Bermuda to require the liquidator to continue the liquidation. The liquidator can be reached at: Robin J. Mayor Clarendon House, Church Street Hamilton, Bermuda =========== B R A Z I L =========== DELPHI CORP: Shareholder Settlement Hearing Set for April 29 ------------------------------------------------------------ The Hon. Gerald E. Rosen of the U.S. District Court for the Eastern District of Michigan, Southern Division, will convene a hearing on April 29, 2008, to decide, among other things, final Court approval of a settlement providing for a recovery of US$38,250,000 to be paid by Deloitte & Touche LLP, Delphi Corp.'s outside auditor; and on the dismissal of claims against Deloitte & Touche. District Court Certifies Class The Court has preliminarily certified a class consisting of all persons and entities who purchased or acquired publicly traded securities issued by Delphi Trust I and Delphi Trust II between March 7, 2000, and March 3, 2005, inclusive, and who suffered damages thereby, including all entities who acquired shares of Delphi common and preferred stock in the secondary market and debt securities in Delphi. The case is in In re Delphi Securities, Derivative and ERISA Litigation, MDL No. 1725, Case No. 05-md-1725. The District Court also preliminarily approved the Deloitte & Touche Settlement providing for a recovery of $38,250,000 to be paid by Deloitte & Touche LLP, Delphi Corp.'s outside auditor during the Class Period. The Class will receive an interest on the Deloitte & Touche Settlement Amount. Copies of the full printed Deloitte & Touche Notice and the Proof of Claim and Release form may be obtained at http://www.delphiclasssettlement.comor by contacting: In re Delphi Corporation Securities Litigation Settlement c/o The Garden City Group, Inc. Claims Administrator P.O. Box 9185 Dublin, OH 43017-4185 Inquiries may be made to the four co-lead counsel for the Lead Plaintiffs in the Securities Litigation: * Bradley E. Beckworth, Esq. Nix, Patterson & Roach, L.L.P. 205 Linda Drive Daingerfield, Texas 75638 * Sean Handler, Esq. Schiffrin Barroway Topaz & Kessler, LLP 280 King of Prussia Road Radnor, PA 19087 * Jeffrey N. Leibell, Esq. Bernsten Litowitz Berger & Grossmann, LLP 1285 Avenue of the Americas New York 10019 * Stuart Grant, Esq. Grant & Eisenhofer P.A. Chase Manhattan Centre Suite 2100 1201 N. Market St. Wilmington, DE 19801 Further information may also be obtained by writing to the Claims Administrator or calling 1-800-918-0998 toll-free. The Securities Litigation has been resolved with respect to the Debtors pursuant to the Court-approved Multidistrict Litigation Settlements between the Debtors and the Lead Plaintiffs. Under the terms of the MDL Settlements, the Debtors granted the Lead Plaintiffs claims that will be satisfied through Delphi's confirmed Plan of Reorganization. To participate in the Deloitte & Touche Settlement, parties-in- interest must have submitted a valid proof of claim in connection with the MDL Settlements or submit a valid proof of claim to the Claims Administrator postmarked not later than May 30, 2008. The deadline for filing objection and the receipt of requests for exclusions is April 15, 2008. 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. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. DIRECTV GROUP: Stake Swap Results in Two Board Seats for Liberty ---------------------------------------------------------------- Liberty Media Corporation has completed the exchange of its 16.3% stake in News Corporation for a subsidiary of News that holds a 41% stake in The DIRECTV Group Inc., regional sports networks in Denver, Pittsburgh, and Seattle, and $465 million of cash. John Malone and Greg Maffei have been appointed to the DIRECTV board, filling two of the three seats previously held by News representatives. Chase Carey will continue to serve as DIRECTV's president and CEO. "This transaction is strategically important, financially attractive, and will provide new focus to Liberty Media," said Liberty CEO Greg Maffei. "We've been impressed with Chase Carey and his team and are thrilled to welcome them to the Liberty family. We look forward to a partnership with DIRECTV." The reclassification of Liberty Capital Tracking stock is expected to be completed in the next three to five business days and the new Liberty Entertainment and Liberty Capital tracking stocks will commence trading early next week. About News Corp. News Corporation is a diversified international media and entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers; book publishing; and other. The activities of News Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and the Pacific Basin. About Liberty Media Headquartered in Englewood, Colorado, Liberty Media Corporation (NasdaqGS: LINTA) -- http://www.libertymedia.com/-- owns interests in a broad range of electronic retailing, media, communications and entertainment businesses. Those interests are attributed to two tracking stock groups: the Liberty Interactive group, which includes Liberty's interests in QVC, Provide Commerce, IAC/InterActiveCorp, and Expedia, and the Liberty Capital group, which includes Liberty's interests in Starz Entertainment, News Corporation, and Time Warner. * * * Liberty Media Corporation continues to carry Fitch Ratings' 'BB' long-term issuer default and senior unsecured debt ratings, which were placed in December 2006. About DirecTV Group Headquartered in El Segundo, California, The DirecTV Group Inc. (NASDAQ:DTV) -- http://www.DirecTV.com/-- provides digital television entertainment in the United States and Latin America. The company's two business segments, DirecTV U.S. and DirecTV Latin America, are engaged in acquiring, promoting, selling and/or distributing digital entertainment programming via satellite to residential and commercial subscribers. DirecTV Holdings LLC and its subsidiaries are a provider of direct-to- home digital television services and a provider in the multi- channel video programming distribution industry in the United States. DTVLA is a provider of DTH digital television services throughout Latin America. In January 2007, the company acquired Darlene Investments LLC's 14.1% equity interest in DirecTV Latin America, LLC. DirecTV Latin America LLC is a multinational company, which, as a result of this transaction, became a wholly owned subsidiary of the company. The DIRECTV Latin America segment provides digital direct-to-home digital television services to approximately 1.6 million subscribers in 27 countries, including Brazil, Argentina, Venezuela, and Puerto Rico. * * * As of Feb. 9, 2008, The DIRECTV Group Inc. still carries Standard & Poor's Ratings Services' 'BB' corporate credit and 'BB-' senior unsecured debt rating given on April 3, 2007. The outlook remains stable. DIRECTV GROUP: FCC Sees Liberty Media Deal to Benefit Public ------------------------------------------------------------ The Federal Communications Commission approved the transfer of control of DirecTV Group Inc. to Liberty Media Corp., subject to conditions. The Commission concluded that, as conditioned, the public interest benefits of the transfer outweighed the potential harms and would be consistent with applicable Commission rules and policies. As reported in the Troubled Company Reporter on Feb. 11, 2008, under the deal, News Corp. will exchange its interest in DirecTV Group Inc. with Liberty Media's interest in News Corp. Liberty Media said it plans to exchange its stake in News Corp. for 39% of DirectTV. The parties reached an US$11 billion deal that includes News Corp.'s stake in DirectTV. As a benefit of the transaction, Liberty Media and News Corp., which is the majority stakeholder of DirecTV, would sever their ownership interests with each other which will decrease media consolidation and reduce vertical integration therefore benefiting the public. The Order also imposes certain conditions to ensure that the transaction will serve Commission's competition and diversity goals. The Order requires that Liberty and DirecTV abide by program access, program carriage, Regional Sports Network arbitration, retransmission consent arbitration conditions, modeled on similar conditions imposed in 2003, when the Commission approved the transfer of DIRECTV from Hughes to News Corp. In addition, the Order requires that all of the attributable ownership interests connecting DirecTV-Puerto Rico and Liberty Cablevision of Puerto Rico, Ltd., which will be under common control as a result of the transaction, be severed within one year, at which point the companies must certify either that they have reduced the relevant interests to a non-attributable level or that they have filed any applications necessary to divest assets. On balance, the Commission found that the transaction, as conditioned, would serve the public interest. About News Corp. News Corporation is a diversified international media and entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers; book publishing; and other. The activities of News Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and the Pacific Basin. About Liberty Media Headquartered in Englewood, Colorado, Liberty Media Corporation (NasdaqGS: LINTA) -- http://www.libertymedia.com/-- owns interests in a broad range of electronic retailing, media, communications and entertainment businesses. Those interests are attributed to two tracking stock groups: the Liberty Interactive group, which includes Liberty's interests in QVC, Provide Commerce, IAC/InterActiveCorp, and Expedia, and the Liberty Capital group, which includes Liberty's interests in Starz Entertainment, News Corporation, and Time Warner. About DirecTV Headquartered in El Segundo, California, The DirecTV Group Inc. (NASDAQ:DTV) -- http://www.DirecTV.com/-- provides digital television entertainment in the United States and Latin America. The company's two business segments, DirecTV U.S. and DirecTV Latin America, are engaged in acquiring, promoting, selling and/or distributing digital entertainment programming via satellite to residential and commercial subscribers. DirecTV Holdings LLC and its subsidiaries are a provider of direct-to- home digital television services and a provider in the multi- channel video programming distribution industry in the United States. DTVLA is a provider of DTH digital television services throughout Latin America. In January 2007, the company acquired Darlene Investments LLC's 14.1% equity interest in DirecTV Latin America, LLC. DirecTV Latin America LLC is a multinational company, which, as a result of this transaction, became a wholly owned subsidiary of the company. The DIRECTV Latin America segment provides digital direct-to-home digital television services to approximately 1.6 million subscribers in 27 countries, including Brazil, Argentina, Venezuela, and Puerto Rico. * * * As of Feb. 9, 2008, The DIRECTV Group Inc. still carries Standard & Poor's Ratings Services' 'BB' corporate credit and 'BB-' senior unsecured debt rating given on April 3, 2007. The outlook remains stable. EMBRATEL PARTICIPACOES: Seeks Regulator Okay for Paid TV License ---------------------------------------------------------------- Embratel Participacoes SA is seeking telecom regulator Anatel's authorization to acquire a license to operate satellite paid television through the direct-to-home system all over Brazil, Agencia Estado reports. According to Business News Americas, Embratel Participacoes wants to offer a package of services including WiMax broadband, telephony, and paid television. Embratel Participacoes is offering WiMax services in Porto Alegre of 512 kilobits per second for BRL79.90 per month and a one megabit per second connection for BRL89.90, BNamericas states. Embratel Participacoes SA offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and Internet transmission, and is present all over the country with its satellite solutions. Embratel is the market leader in revenues with Long Distance, Domestic and International calls. * * * Embratel Participacoes is rated by Moody's: * local currency issuer rating -- B1; and * senior unsecured debt -- B2. GENERAL MOTORS: Idles Assembly Plant Due to AAM Workers' Strike --------------------------------------------------------------- American Axle & Manufacturing Inc.'s worker strike has affected the production of General Motors Corp.'s vehicles equipped with the former's auto parts sooner that it thought, various sources report. GM's production of Chevrolet Silverado and GMC Sierra pickups at the Pontiac Assembly Center, which has 2,500 hourly and salaried employees, in Michigan, ceased after the first shift Thursday, the Associated Press related citing GM spokesman Tom Wickham. As reported in the Troubled Company Reporter on Feb. 27, 2008, although the strike of union workers at its supplier American Axle and Manufacturing Inc. does not affect General Motors Corp.'s plant production yet, the auto maker says it is following the protest closely. GM has a large inventory of pickups and sport utility vehicles, which are equipped with American Axle's parts. However, if the strike lasts longer than the supply, GM's assembly lines would suffer. United Auto Workers union president Ron Gettelfinger and Vice President James Settles disclosed that members at American Axle began an unfair labor practices strike at 12:01 a.m. on Feb. 26, 2008, following expiration of a four-year master labor agreement. Talks broke off Monday with major issues unresolved. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GENERAL MOTORS: Supplier's Workers Strike Won't Affect S&P Rtg. --------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on General Motors Corp. (GM; B/Stable/B-3) are not immediately affected by the United Auto Workers work stoppage at key supplier American Axle and Manufacturing Holdings Inc. (BB/Negative/--) that began Feb. 26. S&P expects American Axle and the UAW to reach an agreement that will improve American Axle's cost position. However, if the American Axle work stoppage were to persist beyond a brief period (likely measured in days, not weeks), it would begin to affect GM's production schedules and there would be a ripple effect on many of GM's suppliers as well. If S&P came to believe that the American Axle work stoppage would draw out, S&P could place the ratings on GM on CreditWatch with negative implications, along with the ratings on certain suppliers that depend heavily on GM production. S&P already expects GM's first-quarter production to be below year-earlier levels, which should provide some room for a short work stoppage. In addition, S&P estimates that GM has about US$27.3 billion in cash, marketable securities, and readily available assets in its existing VEBA trust. The company also has access to US$7 billion in committed U.S. credit lines. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. JAPAN AIRLINES: To Seek Compensation for Dreamliner Delay --------------------------------------------------------- Japan Airlines International Co., Ltd. may seek compensation from Boeing Co., for a third major delay in the delivery of the new Boeing 787 Dreamliner plane, Aiko Hayashi writes for Reuters. In a separate Reuters report, Bill Rigby writes that Boeing announced the third major delay for the program, promising first deliveries in the third quarter of next year, as compared to the original target of May this year. Mr. Rigby quotes JAL chief executive Haruka Nishimatsu as saying, "The 787 s an extremely fuel-efficient aircraft. A delay will impact us significantly." Mr. Rigby relates that JAL said the delay would cost the company more in extra fuel. JAL spokesman Hirokazu Inoue told Reuters that the company would start talks with Boeing about compensation once the impact from the delay on its business became clear. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. MILACRON INC: Dec. 31 Balance Sheet Upside-Down by US$51.1 Mil. --------------------------------------------------------------- Milacron Inc. released its results for the fourth quarter ended Dec. 31, 2007. The company's balance sheet showed total assets of US$ 592.9 million and total liabilities of US$644 million, resulting in a US$51.1 million stockholders' deficit. Deficit, at Dec. 31, 2006, was US$21.3 million. The company reported a net loss in the fourth quarter of 2007 of US$73.4 million, caused primarily by a non-cash writedown of deferred tax assets of US$63.0 million associated with the change of ownership of the majority of the company's preferred stock, as announced in October. The loss also included US$7.4 million in restructuring charges, US$1.9 million in one- time costs related to the curtailment of the company's U.S. pension plan, as well as US$1.4 million in expenses related to the preferred stock transaction. This compared to a net loss in the fourth quarter of 2006 of US$8.6 million, which included US$5.1 million in restructuring costs and US$1.8 million in refinancing charges. "We continue to make solid progress throughout the company in terms of our restructuring and other cost reduction initiatives," Ronald D. Brown, chairman, president and chief executive officer, said. "Our manufacturing margins and operating cash flow or EBITDA are both up significantly from the year-ago quarter. And our efforts to expand Milacron's presence in faster-growing markets of the world are also paying off. In fact, our sales to markets outside the U.S., Canada and Western Europe are up well in excess of 20% and now represent about 25% of our total sales." These gains in non-traditional markets helped offset declines in North America, as fourth quarter 2007 sales reached US$217 million, up 10% from US$198 million in the year-ago quarter. About half of the sales increase came as a result of favorable currency translation effects. New orders in the quarter were US$213 million, up from US$203 million in 2006, entirely due to currency translation. Aided by favorable resolutions of long-standing product liability claims and the benefits of restructuring and product cost reduction initiatives, manufacturing margins in the quarter rose to 22.3%, up from 19.4% in the year ago quarter. Net cash provided by operations during the quarter was US$9.6 million, compared to a use of cash by operations of US$800,000 in the fourth quarter of 2006. At the end of the quarter, Milacron had US$41 million in cash, up US$3 million from the beginning of the quarter. The company also had US$34 million in borrowing availability under its North American revolving credit agreement, down from US$42 million at the beginning of the quarter. Year 2007 Milacron's net loss for the year was US$88.8 million, or US$19.59 per share. This included the writedown of tax assets of US$63.0 million, restructuring charges of US$12.5 million, US$1.9 million in one-time costs for pension plan curtailment, as well as US$1.9 million in expenses for the preferred stock transaction. In 2006, Milacron lost US$39.7 million, or US$10.15 per share, which included US$17.4 million in restructuring costs and US$1.8 million in refinancing charges. Operating earnings in 2007 improved to US$3.1 million, up from a loss of US$7.2 million in 2006. Sales in 2007 fell to US$808 million from US$820 million in 2006, while new orders were US$826 million, down slightly from US$828 million in the prior year. 2007 sales and new orders were helped by approximately US$29 million in favorable currency translation effects. Throughout 2007, Milacron faced severe declines in two of its largest markets in North America: injection molding machinery and mold technologies, which have been impacted by the shakeout in U.S. auto parts suppliers and the decline in new housing starts. During the year, however, restructuring measures helped reduce overall operating expenses by US$12 million, while global redesign and sourcing initiatives cut product costs by US$6 million. To further soften the impact of the downturn in capital spending in North America, Milacron focused on growing aftermarket sales, which approached US$200 million and grew to represent 36% of total machinery sales. The company also accelerated efforts to further penetrate markets outside the U.S., Canada and Western Europe. As a result, sales to these non-traditional markets rose to US$187 million in 2007, up 27% over 2006. Continued cost reductions and efficiency improvements helped raise manufacturing margins in 2007 to 20.2%, a significant increase over 18.5% in 2006. Net cash provided by operations for the year was US$9.6 million, compared to a use of cash by operations of US$19.2 million in 2006. Outlook "The economic outlook for 2008 is mixed," Mr. Brown said. "We expect to see continued growth in most of our markets outside of North America, particularly in China, India and other faster- growing economies. Due to uncertainty in the automotive and housing sectors, however, we are not anticipating any market growth in North America. "We entered the year with a solid backlog for the first quarter. This should enable us to show significant year-over-year improvement in sales and operating results compared to the first quarter of 2007. "We continue to work hard to make 2008 a significantly better year for Milacron," Mr. Brown said. "In addition to improved operating results from restructuring efforts, our cash flow will benefit from the U.S. pension plan freeze we implemented at the end of last year, from lower insurance costs going forward and from the ongoing sale of redundant or non-core assets. We are also in the process of negotiating an asset-based loan in Europe, which will increase our overall liquidity." Annual Meeting Date Set Milacron's board of directors set May 8, 2008 as the date of the annual meeting of shareholders to be held in Cincinnati, Ohio, and March 12, 2008 as the record date for determination of shareholders entitled to notice of and to vote at the annual meeting. About Milacron Headquartered in Cincinnati, Ohio, Milacron Inc. -- http://www.milacron.com/-- supplies plastics-processing technologies and industrial fluids, with major manufacturing facilities in North America, Europe and Asia. First incorporated in 1884, Milacron is also manufactures synthetic water-based industrial fluids used in metalworking applications. The company has manufacturing facilities in Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 27, 2007, Moody's Investors Service lowered the ratings of Milacron Inc. Corporate Family, to Caa2 from Caa1; Probability of Default, to Caa2 from Caa1; and senior secured notes, to Caa2 from Caa1. The lowered ratings reflect the company's weak credit metrics and ongoing cash flow pressures. NORTEL NETWORKS: Posts US$844 Mil. Net Loss in 4th Quarter 2007 --------------------------------------------------------------- Nortel Networks Corp. reported financial and operating results for the fourth quarter and full year of 2007. The Company reported a net loss in the fourth quarter of 2007 of US$844 million, compared to net loss of US$80 million in the fourth quarter of 2006 and net income of US$27 million in the third quarter of 2007. Nortel reported a net loss for 2007 of US$957 million, compared to net earnings of US$28 million for the year 2006. Revenue was US$3.2 billion for the fourth quarter of 2007 compared to US$3.3 billion for the fourth quarter of 2006 and US$2.7 billion for the third quarter of 2007. In the fourth quarter of 2007, revenue increased by 18% compared to the third quarter of 2007 and excluding the impact of the UMTS Access divestiture, revenue increased by 2% compared with the year-ago quarter. For 2007, revenues were US$10.95 billion compared to US$11.4 billion for 2006. "Nortel continued to make strong progress in the fourth quarter as we completed a pivotal year in our transformation," Nortel President and CEO Mike Zafirovski said. "In a period of significant change for our industry, we have now reported six consecutive quarters of strong year over year improvement in operating margin, reflected in a 353 basis points improvement in the second half of 2006 and a 369 basis points improvement in 2007. Although our fourth quarter operating margin was below our target, it is the highest in 12 quarters. We also recorded a 386 basis point increase in gross margin to 43.7%, also the highest in 12 quarters. And most importantly, customers around the world are validating our strategic direction by signing up for multi-year engagements that leverage both our technological innovation and world-class know-how. We ended the year with a positive book to bill of 1.01 in the fourth quarter." Gross margin was 43.7% of revenue in the fourth quarter of 2007. This compared to gross margin of 39.8% for the fourth quarter of 2006 and 43.0% for the third quarter of 2007. Compared to the fourth quarter of 2006, gross margins benefited primarily from productivity improvements and mix. Cash balance at the end of the fourth quarter of 2007 was US$3.5 billion, up from US$3.13 billion at the end of the third quarter of 2007. The increase in cash was primarily driven by cash from operating activities of US$417 million and a positive impact from foreign exchange of US$16 million, partially offset by cash used in financing activities of US$23 million and cash used in investing activities of US$6 million. Outlook Nortel provided its financial outlook for the full year 2008, and expects: * Revenue to grow in the low single digits compared to 2007; * Gross Margin to be about our business model target of 43% of revenue; * Operating Margin as a percentage of revenue to increase by about 300 basis points compared to 2007. At Dec. 31, 2007, the company's balance sheet showed total assets of US$17.0 billion and total liabilities of US$13.4 billion, resulting in a US$2.7 billion, stockholders' equity. Equity, on Sept. 30, 2007, was US$2.9 billion and, on Dec. 31, 2006, was US$1.1 billion. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers next- generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. Nortel Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. Nortel does business in more than 150 countries including Indonesia, the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. * * * Nortel Networks Corp. still carries Moody's Investors Service 'B3' Senior Unsecured Debt rating which was placed on March 22, 2007. PERDIGAO SA: Board Approves Eleva Alimentos Merger Proposal ----------------------------------------------------------- Pursuant to the terms of CVM Instruction 319/99 and CVM Instruction 358/02, both as amended, the managements of Perdigao S.A. and Eleva Alimentos S.A. notifies the public that the Board of Directors of the company and Eleva Alimentos, in meetings held on April 11 2008, have approved the proposal for the merger of the two companies. The shareholders will consider approving the merger proposal at their Extraordinary General Meeting on April 30 2008. The terms of the proposed merger include: 1. Purposes of the Operation, Goodwill and Costs 1.1. Perdigao holds the totality of shares representing the capital stock of Eleva Alimentos. 1.2. The Merger is part of a process of a corporate reorganization with the purpose of simplifying the corporate structure of Perdigao and will represent gains in synergies for the Company through the consolidation of the activities of Perdigao and Eleva Alimentos in the former, with the consequent reduction in operating and financial costs and the rationalization of the activities both companies. This process of corporate reorganization shall result in future merger operations of other subsidiaries companies by Perdigao. 1.3. The goodwill originally recorded in the books of Perdigao in the nominal amount of BRL1,345,127,894.03, arising from the acquisition of 100% of the shares issued by Eleva Alimentos is based on forecasted results in future fiscal years. As a result of the merger, the goodwill shall be amortized for tax purposes, by the company, pursuant to the terms of the tax legislation in effect, over a 10-year period, and expected to generate a fiscal benefit of approximately BRL457,343,483.97 (or 34% of the value originally recorded) for accounting purposes the goodwill shall be fully recognized in the fiscal year 2008 as a non- recurring result under the item "Other Operating Income (Expenses)" and the value of the tax benefit shall be recognized in the item "Income Tax (IRPJ) and Social Contribution Net Income (CSLL)". 1.4. There will be no change in the shareholders of Perdigao's voting rights, dividend payments and property rights as compared with the policy and property advantages of the shares of Perdigao's shareholders prior to the merger. 1.5. Both companies estimate that the total cost with respect to the merger shall be BRL425,000 including expenses with publications, preparation of a valuation report, and fees of the auditors, appraisers and lawyers. 2. Criteria for Valuation of Shareholders Equity, Treatment of Subsequent Equity Variations, Substitution Relationship, Right to Withdraw and Solution as to the Shares of the Capital of a Corporation Held by Another 2.1. The Merger shall be conducted on the basis of the net book value of the assets of Eleva Alimentos, recorded in the book valuation report, based on the balance sheet of the company as at Dec. 31 2007, audited by Deloitte Touche Tohmatsu Auditores Independentes. The baseline date for the valuation shall be Dec. 31 2007, the book valuation report result being a net asset value of Eleva Alimentos on Dec. 31 2007, of the merger, of BRL489,356,392.86. The equity variations occurring between Dec. 31 2007, and the date that the Extraordinary General Meeting is held shall be absorbed by the company, pursuant to the "Protocol and Justification for the Merger of Eleva Alimentos S.A. with Perdigao S.A." signed on April 11 2008. 2.2. The Board of Directors of Perdigao has approved, ad referendum of the Extraordinary General Meeting, the engagement of Deloitte Touche Tohmatsu Auditores Independentes, with registered offices at Avenida Carlos Gomes, 403, Porto Alegre, enrolled in the corporate taxpayers' register (CNPJ/MF) under number 49.928.567/0010-02 and the Regional Accounting Council under number 2SP011.609/0-8/F/RS, for the preparation of the book valuation report of Eleva Alimentos. Deloitte Touche Tohmatsu Auditores Independentes declares that it has no relationship which might create a conflict of interests or communion of interests, either actual or potential, with the controlling shareholders of the two companies, or, furthermore, with respect to the merger itself. 2.3. Since 100% of the shares representing the capital stock of Eleva Alimentos are held by Perdigao, there shall be no modification in the shareholders' equity of Perdigao, a requirement of the substitution relationship that could be the subject of comparison and/or right to withdraw. For this reason there is no justification for the preparation of valuation reports based on the value of the shareholders' equity of both companies at market prices, pursuant to Article 264 of the Corporation Act. 2.4. With the Merger, Eleva Alimentos shall be extinguished and its shares dully canceled, pursuant to Article 226 of the Corporation Act, without any shares, the issuance of Perdigao, being attributed in substitution of partners rights. 3. Other Information 3.1. The Protocol and Justification and the audited financial statements that serve as a basis for the calculation of the shareholders' equity of Eleva Alimentos on Dec. 31 2007 of the Merger, as well as other documents that relate to Article 3 of CVM Instruction 319 of Dec. 3 1999, shall be made available to the shareholders of both companies at these addresses and Web sites: (i) Perdigao: at Avenida Escola Politecnica, 760, in the city and state of Sao Paulo, or at the Website http://www.perdigao.com.br/ri (ii) CVM: at http://www.cvm.gov.br (iii) BOVESPA: at http://www.bovespa.com.br Headquartered in Sao Paulo, Brazil, Perdigao S.A. is one of the largest food processors in Brazil, with a focus on poultry, pork, beef, milk and processed products including dairy. With revenues of BRL6 billion for the last twelve months eding in June 30, 2007, Perdigao is one of the leaders in the domestic market and exports 42% of its sales to over 100 countries and 850 customers around the world. * * * As of Nov. 1, 2007, Moody's Investors Service affirmed Perdigao SA's Ba1 corporate family rating following the company's announced signed agreement to acquire Eleva Alimentos S.A. for approximately BRL1.67 billion in equity value plus BRL547 million in assumed debt. Moody's rating outlook remains stable. PERDIGAO SA: Board Approves BRL0.37/Share Interest Distribution --------------------------------------------------------------- Perdigao S.A. Board of Directors has approved the distribution of interest on its own capital to shareholders at the rate of BRL0.37 gross per share, in a meeting held on April 11, 2008. The payment will begin on Aug. 29, 2008, at the rate of BRL0.25 gross per share, and Feb. 27, 2009, at the rate of BRL0.12 gross per share, with withholding tax according to the law in effect. This payment will be included in compulsory dividends, according to current law. Headquartered in Sao Paulo, Brazil, Perdigao S.A. is one of the largest food processors in Brazil, with a focus on poultry, pork, beef, milk and processed products including dairy. With revenues of BRL6 billion for the last twelve months eding in June 30, 2007, Perdigao is one of the leaders in the domestic market and exports 42% of its sales to over 100 countries and 850 customers around the world. * * * As of Nov. 1, 2007, Moody's Investors Service affirmed Perdigao SA's Ba1 corporate family rating following the company's announced signed agreement to acquire Eleva Alimentos S.A. for approximately BRL1.67 billion in equity value plus BRL547 million in assumed debt. Moody's rating outlook remains stable. TAM SA: Flies 52,900 Passengers Since Signing TAP Portugal Deal --------------------------------------------------------------- TAM SA and TAP Portugal have flown 52,900 passengers since signing a flight-sharing operational agreement (code-share), launched in September 2007. The strategic partnership allows TAM to offer its passengers several TAP-operated direct flights between Brazil and Portugal, departing from Rio de Janeiro, Brasilia and Sao Paulo for Lisbon and Porto. Passengers can then take connecting flights to the Portuguese cities of Faro, Funchal and Porto Santo. TAP already offers its customers various flight options to several Brazilian cities serviced by TAM. "The results obtained from the code-share agreement between TAM and TAP illustrate the success of this partnership, which has brought more convenience and comfort to passengers traveling between Brazil and Portugal", said TAM's vice president of Planning and Alliances, Paulo Castello Branco. The synergy of TAM's and TAP's air travel networks ensures more convenient connections in Brazil and Portugal, in addition to offering special services to their passengers, such as pre- assigned seating and direct baggage transfers on all legs of a trip. "We are very pleased with the positive results of our cooperation", added TAP Portugal's director of Alliances and Foreign Relations, Jose Guedes Dias. "It demonstrates that both companies are strongly committed to the quality and convenience of the product we offer our clients, resulting in greater flexibility of services and wider choice of destinations." Airport check-in counters for both companies are prepared to accept electronic tickets, Interline Electronic Ticket (IET) issued by either one, allowing passengers the convenience of receiving a single ticket for all stages of a trip. The system provides greater security for the passenger, who need only show identification and ticket number when checking in to request a boarding pass that will cover the entire trip. The agreement also provides for integration of TAM's "Fidelity" and TAP's "Victoria" programs, allowing clients from both companies to accumulate and redeem points on flights from either company. About TAM TAM SA -- http://www.tam.com.br/ -- currently has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * On July 23, 2007, Fitch Ratings affirmed the 'BB' foreign currency and local currency Issuer Default Ratings of TAM S.A. Fitch has also affirmed the 'BB' rating of its US$300 million of senior unsecured notes due 2017 as well as the company's 'A+(bra)' national scale rating and for its first debentures issuance (BRL500 million). Fitch said the rating outlook is stable. ========================== C A Y M A N I S L A N D S ========================== AVALON RE: S&P Cuts Class C Notes' Debt Rating to CC From CCC- -------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its subordinated debt rating on Avalon Re Ltd.'s Class C notes to 'CC' from 'CCC-'. The action follows notification from HSBC Bank (Cayman) Ltd. that the steam pipe explosion that occurred in New York City on July 18, 2007, would be a covered event under the terms of the reinsurance agreement between Avalon Re Ltd. and Oil Casualty Insurance Ltd. "To date, Avalon Re Ltd. has experienced US$297 million of covered losses due to Hurricane Katrina and the explosion at the Buncefield oil depot," said S&P's credit analyst Gary Martucci. "This leaves only US$3 million of covered losses that can be incurred prior to any losses being borne by the Class C noteholders." The covered-loss report indicated that losses could be as high as US$50 million. The final determination of the loss payment is not expected to occur in the near future. Although the losses will reduce the amount of subordination supporting the Class A and B notes, S&P is not taking action on the Class A and B notes, which are currently rated 'B+' and 'CCC', respectively. S&P has been told that there are currently no claims under review that are expected to cause additional losses to Avalon Re. Ltd. The notes are scheduled to mature on June 6, 2008, though they are subject to extension under terms set forth in the transaction documents. Avalon Re Ltd. is a Cayman Islands-domiciled insurance company formed solely to issue the variable-rate notes, enter into a reinsurance contract with Oil Casualty Insurance Ltd., and to conduct activities related to the notes' issuance. The variable-rate notes are insurance-linked collateralized securities that will suffer a loss of principal if Oil Casualty Insurance Ltd.'s aggregate insured losses exceed a specified threshold that varies by note class. CAYMAN SPECIALTY: Sets Final Shareholders Meeting for April 17 -------------------------------------------------------------- Cayman Specialty Piping will hold its final shareholders' meeting on April 17, 2008, at Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) giving explanation thereof. Cayman Specialty's shareholders agreed on Jan. 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands DD EURO: Sets Final Shareholders Meeting for April 17 ----------------------------------------------------- DD Euro Growth Fund will hold its final shareholders' meeting on April 17, 2008. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) giving explanation thereof. DD Euro's shareholders agreed on Jan. 24, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Joshua Grant and Jan Neveril Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands DD EURO GROWTH: Final Shareholders Meeting is on April 17 --------------------------------------------------------- DD Euro Growth Master Fund will hold its final shareholders' meeting on April 17, 2008. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) giving explanation thereof. DD Euro's shareholders agreed on Jan. 24, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Joshua Grant and Jan Neveril Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands GANNET VI: Proofs of Claim Filing Deadline is April 17 ------------------------------------------------------ Gannet VI Funding Corporation's creditors have until April 17, 2008, to prove their claims to Bobby Toor and Giles Kerley, 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. Gannet VI's shareholders agreed on March 6, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Giles Kerley Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands HARBOR WAREHOUSE: Proofs of Claim Filing is Until April 17 ---------------------------------------------------------- Harbor Warehouse SPC's creditors have until April 17, 2008, to prove their claims to Martin Couch and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Harbor Warehouse's shareholders agreed on March 6, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Martin Couch and Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands KBW SMALL: Proofs of Claim Filing Deadline is April 17 ------------------------------------------------------ KBW Small Cap Financial Services Master Fund Ltd.'s creditors have until April 17, 2008, to prove their claims to Jan Neveril and Bobby Toor, 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. KBW Small's shareholders agreed on Feb. 22, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Bobby Toor Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands PARKER FIELD: Proofs of Claim Filing is Until April 17 ------------------------------------------------------ Parker Field SPC's creditors have until April 17, 2008, to prove their claims to Martin Couch and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Parker Field's shareholders agreed on March 6, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Martin Couch and Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands PARMALAT SPA: Board Names Bondi as CEO, Picella as Chairman ----------------------------------------------------------- Parmalat S.p.A.'s new Board of Directors has elected Raffaele Picella as chairman and appointed Enrico Bondi as Chief Executive Officer, awarding them the necessary powers. Acting in accordance with Article 12 of the Bylaws and taking into account the guidelines provided in Item 3.C.1 of the Code of Conduct of Borsa Italiana S.p.A., it carried out the process of verifying which Directors met the independence requirements. Based on this process, these Directors qualified as independent: * Piergiorgio Alberti, * Massimo Confortini, * Marco De Benedetti, * Andrea Guerra, * Vittorio Mincato, * Erder Mingoli, * Marzio Saa, * Carlo Secchi, and * Ferdinando Superti Furga The current Board of Directors includes a higher number of independent Directors (nine) than the minimum number (at least six) required pursuant to Article 11 of the Bylaws. The Board of Directors also approved the establishment of the Committees, to which it appointed the members listed below: * Litigation Committee: -- Massimo Confortini (Chairman), -- Ferdinando Superti Furga, and -- Vittorio Mincato; * Nominations and Compensation Committee: -- Carlo Secchi (Chairman), -- Andrea Guerra, and -- Marco De Benedetti * Internal Control and Corporate Governance Committee: -- Marzio Saa (Chairman), -- Carlo Secchi, and -- Ferdinando Superti Furga About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. I