T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, April 21, 2008, Vol. 9, No. 78 Headlines A R G E N T I N A ALCATEL-LUCENT: Inks Strategic Pact with Technology Bureau BUENA VISTA: Court Appoints Francisco N.J. Valacco as Trustee DANA HOLDING: Appoints Gary L. Convis as Chief Executive Officer DELTA: PBGC Insists Recovery on Pension Plan's Unfunded Debts EL TREBOL: Trustee to Verify Proofs of Claim Until May 30 FRIMEN SA: Proofs of Claim Verification Deadline is June 18 GREY ARMOR: Proofs of Claim Verification Deadline is May 5 GUARIBAL SA: Trustee to Verify Proofs of Claim Until June 4 LIFE INSURANCE: Proofs of Claim Verification is Until June 19 LOS ALGODONALES: Trustee to Verify Proofs of Claim Until June 4 MEIGA SA: Proofs of Claim Verification is Until June 17 PAGLIETTINI SA: Trustee to File Individual Reports on Aug. 11 PREPER SRL: Proofs of Claim Verification is Until May 16 ROFIL MEDICAL: Proofs of Claim Verification is Until June 13 SEARCH SA: Trustee to File Individual Reports on July 14 TALLERES INA: Proofs of Claim Verification Deadline is June 17 TELEFONICA DE ARGENTINA: Parent Eyes 150 Mil. Clients in LatAm VELIDI SA: Trustee to Verify Proofs of Claim Until June 4 ZUAZO SA: Proofs of Claim Verification Deadline is May 9 B A R B A D O S * BARBADOS: S&P Publishes Report Summary B E L I Z E * BELIZE: S&P Publishes Report Summary B E R M U D A FOSTER WHEELER: UK Subsidiary Bags Bahrain Nat'l Gas Contract B R A Z I L ADVANCED MICRO: Posts US$358 Mln Net Loss in First Quarter 2008 BANCO BRADESCO: Grants BRL16B Bridge Loan to Tele Norte BANCO CRUZEIRO: UBS Pactual Decreases Stake in Bank BANCO DAYCOVAL: Tarpon Investment Funds Increase Stake in Bank BANCO DO BRASIL: Extends BRL16 Billion Bridge Loan to Tele Norte BANCO ITAU: Grants BRL16 Billion Bridge Loan to Tele Norte BANCO NACIONAL: Inks Two Copasa Contracts for Over BRL704 Mil. BANCO NACIONAL: Okays BRL63.5MM Loan for Water Supply Expansion BANIF BANCO: Moody's Puts Preliminary Ba1 Local Currency Rating BRASIL TELECOM: Tele Norte Gets BRL16 Bil. Loan to Acquire Bank FIDELITY NAT'L: Converts Banco Real Portfolio to Brazilian Unit JAPAN AIRLINES: To Pay US$110 Million Fine for U.S. Price-Fixing LAZARD GROUP: Moody's Maintains Positive Outlook on 'Ba1' Rating TAM SA: Will Invest BRL30 Million in Cargo Transport Services TELE NORTE: Gets BRL16 Bil. Loan for Brasil Telecom Acquisition ULTRAPAR PARTICIPACOES: Sets Shareholders' Meeting to April 28 C A Y M A N I S L A N D S CRESCENT BROTHERS: Sets Final Shareholders Meeting for April 24 GLOBAL ALPHA: Proofs of Claim Filing Deadline is April 29 LA CHAINE: Will Hold Final Shareholders Meeting on April 25 SENIOR FUNDING: Proofs of Claim Filing Deadline is April 23 THE PRAIRIE FUTURES: Final Shareholders Meeting is on April 25 C O S T A R I C A ANIXTER INT'L: Earns US$253.5 Million in Year Ended Dec. 31 D O M I N I C A N R E P U B L I C PRC LLC: Court Extends Action Removal Period to July 21 G R E N A D A * GRENADA: S&P Publishes Report Summary J A M A I C A CABLE & WIRELESS: Jamaican Unit Launches Four Stores CASH PLUS: Court Denies Carlos Hill's Request for Bail * JAMAICA: S&P Publishes Report Summary M E X I C O ALERIS INT'L: S&P Puts Ratings on Watch Neg. on Weak End Markets CLEAR CHANNEL: Extends Consent Payment Deadline to April 25 MAXCOM TELECOM: Posts 1Q 2008 Net Exchange Rate Loss of MXN14MM QUEBECOR WORLD: E&Y Issues Monitor's Report to Quebec Court SARE HOLDING: Moody's Puts Ba3 Global Rating to Proposed Notes VISTA: Completes Purchase of Equipment for Paredones Project VITRO SAB: Shareholders Approve 2007 Financial Results P U E R T O R I C O HORIZON LINES: Federal Agents Serve Warrant on Puerto Rico Trade PILGRIM'S PRIDE: Moody's Places Ratings for Likely Downgrade S U R I N A M E * REPUBLIC OF SURINAME: S&P Publishes Report Summary T R I N I D A D & T O B A G O * REPUBLIC OF TRINIDAD & TOBAGO: S&P Publishes Report Summary V E N E Z U E L A CA LA ELECTRICIDAD: Restructures Corporate Debt PETROLEOS DE VENEZUELA: Invests VEF1 Mil. in Six Social Projects PETROLEOS DE VENEZUELA: Gov't Inks Three Oil Supply Contracts PETROLEOS DE VENEZUELA: To Install Nine Pumps in Nueva Esparta X X X X X X * Moody's Sees Continued Stable Securitization for Latin America * BOND PRICING: For the Week April 14 - April 18, 2008 - - - - - ================= A R G E N T I N A ================= ALCATEL-LUCENT: Inks Strategic Pact with Technology Bureau ---------------------------------------------------------- Alcatel-Lucent SA has signed a strategic agreement with Technology Bureau, one of the main communications integrators in Argentina. Under the terms of the agreement, Technology Bureau will become the exclusive reseller of Alcatel-Lucent’s fixed broadband access, optical and radio transmission solutions to the high- growth segment of cooperative market. This partnership helps both companies strengthen their business and presence in Argentinean cooperatives that focus on improving the delivery of basic public services such as telecoms, electricity, water and gas in remote and low-density areas. As such, the agreement aligns with Alcatel-Lucent’s “Broadband for All” program to provide widespread access to broadband communications services, while addressing the challenges of mass adoption, including availability, affordability and awareness. "Cooperatives have experienced significant growth in Argentina and represent a valuable resource in the country’s development. With its local experience and extensive portfolio, Alcatel- Lucent is an ideal partner to offer the communications solutions that will further support this development,” said Miguel Angel Paissanidis, CTO of Technology Bureau. “As access to broadband services is essential to social and economic development, Alcatel-Lucent is actively helping service providers leapfrog the latest technologies -– building on business models that bring compelling and differentiating services to all,” said Diego Fernandez Buente, responsible for the cooperative segment in Alcatel-Lucent in Argentina. "With the experience and distribution network of Technology Bureau, our solutions will become more widely available to cooperatives in Argentina bringing advanced services to a broad range of residential and business customers.” Alcatel-Lucent will provide its family of DSL and point-to-point fiber access products as well as it optical networking solutions. Alcatel-Lucent is the leader in fixed broadband access with a cumulative market share of 41% in DSL and also leads in optical networking with a 24% market share for the full year 2007, according to Ovum RHK. About Technology Bureau Technology Bureau is an ISO 9000-2000 certified company that offers integrated telecommunications solutions. It has presence throughout Argentina and other countries in Latin America. Technology Bureau is recognized by carriers as an experienced supplier of technology and integrator of connectivity solutions. Its value added comes from the introduction of solutions that cover equipment as well as engineering, installation and maintenance services in a variety of technologies, including terrestrial and satellite access, transmission, switching, networking, security and network management products. About Alcatel-Lucent’s Broadband for All Alcatel-Lucent’s “Broadband for All” initiative aims at enabling mass-market broadband access in high-growth markets. Access to voice and broadband services is essential for social and economic development. Yet billions of people are currently underserved. With the largest portfolio of wireline and wireless access solutions and unparalleled expertise in end-to- end IP transformation, Alcatel-Lucent can help service providers in high-growth economies leapfrog to the latest technologies and business models to bring compelling and differentiated services to all communities. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported on April 4, 2008, Moody's Investors Service affirmed the ratings for Alcatel-Lucent, which include a Ba3 corporate family rating for Alcatel-Lucent and a Not-Prime for its short term debt, as well as Ba3 ratings for senior and B2 ratings for subordinated debt that was issued originally by the predecessor companies Alcatel S.A. and Lucent Technologies, Inc. Moody's said the outlook for the ratings is Negative. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. BUENA VISTA: Court Appoints Francisco N.J. Valacco as Trustee ------------------------------------------------------------- The National Commercial Court of First Instance in Rosario, Santa Fe, has appointed Francisco N. J. Valacco as trustee for Buena Vista Benzadon S.A.'s bankruptcy proceeding. Mr. Valacco will be verifying creditors' proofs of claim and present the validated claims in court as individual reports. He will file a general report containing an audit of Buena Vista's accounting and banking records. Mr. Valacco will be in charge of administering Buena Vista's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Francisco N. J. Valacco Callao 826, Rosario Santa Fe, Argentina DANA HOLDING: Appoints Gary L. Convis as Chief Executive Officer ---------------------------------------------------------------- Dana Holding Corp has named Gary L. Convis, 65, to the post of Chief Executive Officer. Mr. Convis was appointed to Dana’s new Board of Directors in January 2008 after retiring from Toyota Motor Corporation, where he had spent more than 20 years culminating in his role as Chairman of Toyota Motor Manufacturing, Kentucky. "We are delighted to welcome Gary as Chief Executive Officer," said Dana Executive Chairman John Devine, who had served as the company’s acting CEO since January. "Gary is widely respected as one of the leading experts in lean manufacturing and management systems, including the Toyota Production System. Along with his strong leadership and global industry experience, we believe he is an ideal choice as our new Chief Executive." "I am honored by the Board’s confidence in me to lead Dana," Convis said. "I’m also eager to join with our people in establishing world-class manufacturing systems and returning this great company to the leadership ranks of the global automotive supply industry." Mr. Convis comes to Dana after more than four decades spent at Toyota, General Motors Corporation, and Ford Motor Company. He became the first American president of Toyota’s largest plant outside Japan, Toyota Motor Manufacturing, Kentucky (TMMK), in 2001. He was named chairman of TMMK in 2006 and retired in 2007. Prior to this, in 2003, he was the first American manufacturing executive appointed by Toyota Motor Corporation to be a managing officer of TMC, as well as Executive Vice President of Toyota Motor Engineering & Manufacturing North America, Inc. Prior to serving in these roles, Mr. Convis spent 16 years at New United Motor Manufacturing, Inc., a joint venture between GM and Toyota. Previously, he spent more than 20 years in various roles with GM and Ford Motor Company. Mr. Convis earned a bachelor’s degree in mathematics with a minor in physics from Michigan State University. He will continue to serve as a member of Dana’s board. He is also a board member of Cooper-Standard Automotive Inc. and Compass Automotive Group, Inc. About Dana Holding Dana Holding Corporation (NYSE: DAN) -- http://www.dana.com/-- is a supplier of axles; driveshafts; and structural, sealing, and thermal-management products; as well as genuine service parts. The company's customer base includes virtually every major vehicle manufacturer in the global automotive, commercial vehicle, and off-highway markets, which collectively produce more than 70 million vehicles annually. Based in Toledo, Ohio, the company's continuing operations employ approximately 35,000 people in 26 countries and reported 2007 sales of US$8.7 billion, with more than half of this revenue derived from outside the United States. As of Dec. 31, 2007, the company had subsidiaries in the United Kingdom, Venezuela, Argentina, Luxembourg, Mexico, Korea, Brazil, Taiwan and Australia, among others. On March 3, 2006, Dana Corp. and its affiliates filed for chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of New York (Case No. 06-10354). Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represented the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, served as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners served as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represented the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC served as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007 and on Oct. 23, 2007, the Bankruptcy Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. The Debtors' Third Amended Joint Plan of Reorganization was deemed effective as of Jan. 31, 2008. Dana Corp., starting on the Plan Effective Date, operated as Dana Holding Corporation. * * * As reported in the Troubled Company Reporter-Europe on Feb. 13, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Toledo, Ohio-based Dana Holding Corp. following the company's emergence from Chapter 11 on Feb. 1, 2008. The outlook is negative. At the same time, Standard & Poor's assigned Dana's US$650 million asset-based loan revolving credit facility due 2013 a 'BB+' rating (two notches higher than the corporate credit rating) with a recovery rating of '1', indicating an expectation of very high recovery in the event of a payment default. In addition, S&P assigned a 'BB' bank loan rating to Dana's US$1.43 billion senior secured term loan with a recovery rating of '2', indicating an expectation of average recovery. DELTA: PBGC Insists Recovery on Pension Plan's Unfunded Debts ------------------------------------------------------------- The Pension Benefit Guaranty Corporation maintains that claims seeking to recover benefits from Delta Air Lines Inc. under the Qualified Plan should be disallowed because "participants are preempted from recovering directly from the employer any unfunded benefits under a terminated pension plan." Andrea M. Wong, assistant chief counsel for PBGC, argues that PBGC has the exclusive right to recover the Pension Plan's unfunded benefit liabilities. Ms. Wong relates that in 1987, the United States Congress enacted the Pension Protection Act, which: (i) amended the Employment Retirement Income Security Act to explicitly provide that upon termination of a pension plan, the employer's liability to PBGC "[will] be the total amount of the unfunded benefit liabilities to all participants and beneficiaries under the plan;" and (ii) required PBGC to share a portion of its recovery of the unfunded benefit liabilities with participants, setting out a precise formula for the sharing mechanism. Pursuant to the PPA, actions by employees to recover unfunded nonguaranteed benefits directly from their employers are precluded, which will otherwise result in either PBGC's not recovering the appropriate amount to pay benefits, or a double recovery by the participants and double payment by the employer's bankruptcy estate, which will be "counterproductive," Ms. Wong says, pointing to Int'l Ass'n of Machinists and Aerospace Workers v. Rome Cable Corp., 810 F. Supp. 402 (N.D.N.Y. 1993). Additionally, participants must first exhaust their administrative remedies by waiting for PBGC to complete its benefit determinations and adhere thereafter to PBGC's appeal process when dissatisfied with the determinations, Ms. Wong maintains. Ms. Wong says Retired Delta pilots, including the Claimants, are currently receiving estimated benefits under the Qualified Plan without final benefit determination letters issued. Hence, any challenge by the Pilots to PBGC benefit payments is premature, because the Pilots have not exhausted their administrative remedies, she explains. Ms. Wong finds that the Claims appear to be seeking benefits from the Non-Qualified Plans, the amounts of which may be related to the amount of their benefits payable under the Qualified Plan. Any determination as to Non-Qualified Plan benefits should not bind PBGC in its determination of the Pilots' Qualified Plan benefits, Ms. Wong contends. Separately, the U.S. Bankruptcy Court for the Southern District of New York directed the Debtors to satisfy these Claims by the next Interim Distribution Date: Allowed Allowed Unsecured Administrative Claimant Claim No. Claim Amount Claim Amount -------- --------- ------------ -------------- Robert Adam 8588 US$193,464 US$1,930 Frederick Darvill 3738 59,299 475 Leon McGalliard 8201 86,752 737 Mark Sztanyo 8577 320,338 3,167 Robert Thorne 6498 77,843 649 Christopher Waggener 8024 185,658 1,803 8592 185,658 1,803 Judge Adlai S. Hardin expunged these Claims in their entirety: * Claim No. 8197 filed by Harold Wilkins; * Claim No. 8028 filed by Gene Mercer; * Claim No. 8110 filed by Huey Pierce; * Claim No. 7998 filed by Paul Watkins; * Claim No. 8108 filed by S.W. Barazzone; and * Claim No. 7974 filed by Virgil Cheney. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 95; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on April 18, 2008, Moody's Investors Service placed the debt ratings of Delta Air Lines, Inc. ("Delta", corporate family at B2) and Northwest Airlines Corporation ("Northwest", corporate family rating at B1) on review for possible downgrade. The review was prompted by the announcement that the two airlines have agreed to combine in an all-stock transaction with a combined enterprise value of approximately US$18 billion. Fitch Ratings has affirmed the debt ratings of Delta Air Lines, Inc. following the announcement that Delta has agreed to merge with Northwest Airlines Corp., subject to approval by the two airlines' shareholders and the U.S. Department of Justice. Delta's ratings were affirmed as: Issuer Default Rating at 'B'; First-lien senior secured credit facilities at 'BB/RR1'; Second- lien secured credit facility (Term Loan B) at 'B/RR4'. The issue ratings apply to US$2.5 billion of committed credit facilities. The Rating Outlook for Delta has been revised to Negative from Stable. Standard & Poor's Ratings Services placed its ratings, including the 'B+' long-term corporate credit rating, on Northwest Airlines Corp. on CreditWatch with negative implications, following announcement of a merger agreement with Delta Air Lines Inc. (B/Watch Pos/--). The CreditWatch listing affects enhanced equipment trust certificates with various ratings, excepting those that are insured by a bond insurer. S&P's listing of Northwest ratings on CreditWatch with negative implications and those of Delta on CreditWatch with positive implications implies that S&P foresee a corporate credit rating of either 'B' or 'B+' for the combined entity. EL TREBOL: Trustee to Verify Proofs of Claim Until May 30 --------------------------------------------------------- Daniel Pedro Cid, the court-appointed trustee for El Trebol S.R.L.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 30, 2008. Mr. Cid will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Obera, Misiones, 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 El Trebol 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 El Trebol's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. The debtor can be reached at: El Trebol S.R.L. Km. 40 de la Ruta Nacional 14, Campo Viera Misiones, Argentina The trustee can be reached at: Daniel Pedro Cid Santiago del Estero 213, Obera Misiones, Argentina FRIMEN SA: Proofs of Claim Verification Deadline is June 18 ----------------------------------------------------------- Alfredo Jorge Yanni, the court-appointed trustee for Frimen S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 18, 2008. Mr. Yanni will present the validated claims in court as individual reports on Aug. 18, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Frimen 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 Frimen's accounting and banking records will be submitted in court on Sept. 29, 2008. Mr. Yanni is also in charge of administering Frimen's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Alfredo Jorge Yanni Viamonte 1446 Buenos Aires, Argentina GREY ARMOR: Proofs of Claim Verification Deadline is May 5 ---------------------------------------------------------- Hector Ricardo Martinez, the court-appointed trustee for Grey Armor S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 5, 2008. Mr. Martinez will present the validated claims in court as individual reports on June 18, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Grey Armor 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 Grey Armor's accounting and banking records will be submitted in court on Aug. 19, 2008. Mr. Martinez is also in charge of administering Grey Armor's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Grey Armor S.A. Carlos Calvo 329 Buenos Aires, Argentina The trustee can be reached at: Hector Ricardo Martinez Avenida Independencia 2251 Buenos Aires, Argentina GUARIBAL SA: Trustee to Verify Proofs of Claim Until June 4 ----------------------------------------------------------- Estudio Stenner y Orella, the court-appointed trustee for Guaribal S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until June 4, 2008. Estudio Stenner will present the validated claims in court as individual reports on July 17, 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 Guaribal 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 Guaribal's accounting and banking records will be submitted in court on Sept. 12, 2008. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on March 9, 2009. The trustee can be reached at: Estudio Stenner y Orella Uruguay 667 Buenos Aires, Argentina LIFE INSURANCE: Proofs of Claim Verification is Until June 19 ------------------------------------------------------------- Mariel Agesta, the court-appointed trustee for Life Insurance SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 19, 2008. Ms. Agesta will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 23, 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 Life Insurance 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 Life Insurance's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Agesta is also in charge of administering Life Insurance's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Life Insurance SA Tucuman 1668, Buenos Aires, Argentina The trustee can be reached at: Mariel Agesta Esmeralda 625 Buenos Aires, Argentina LOS ALGODONALES: Trustee to Verify Proofs of Claim Until June 4 --------------------------------------------------------------- Estudio Stenner y Orella, the court-appointed trustee for Los Algodonales S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until June 4, 2008. Estudio Stenner will present the validated claims in court as individual reports on July 17, 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 Los Algodonales 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 Los Algodonales' accounting and banking records will be submitted in court on Sept. 12, 2008. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on March 9, 2009. The trustee can be reached at: Estudio Stenner y Orella Uruguay 667 Buenos Aires, Argentina MEIGA SA: Proofs of Claim Verification is Until June 17 ------------------------------------------------------- Miguel Luis Rudnitzky, the court-appointed trustee for Meiga S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 17, 2008. Mr. Rudnitzky will present the validated claims in court as individual reports on Aug. 14, 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 Meiga 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 Meiga's accounting and banking records will be submitted in court on Sept. 26, 2008. Mr. Rudnitzky is also in charge of administering Meiga's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Meiga S.A. Terrero 1955 Buenos Aires, Argentina The trustee can be reached at: Miguel Luis Rudnitzky Cachimayo 11 Buenos Aires, Argentina PAGLIETTINI SA: Trustee to File Individual Reports on Aug. 11 ------------------------------------------------------------- Estudio Tisocco Asociados, the court-appointed trustee for Pagliettini SA's reorganization proceeding, will present the validated claims as individual reports the National Commercial Court of First Instance in Buenos Aires on Aug. 11, 2008. Estudio Tisocco will be verifying creditors' proofs of claim until June 5, 2008. The trustee will submit in court a general report containing an audit of Pagliettini's accounting and banking records on Sept. 22, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on March 18, 2009. The debtor can be reached at: Pagliettini SA Diaz Colodrero 3110 Buenos Aires, Argentina The trustee can be reached at: Estudio Tisocco Asociados Viamonte 1570 Buenos Aires, Argentina PREPER SRL: Proofs of Claim Verification is Until May 16 -------------------------------------------------------- Laura Beatriz Sosa, the court-appointed trustee for Preper S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 16, 2008. Ms. Sosa will present the validated claims in court as individual reports on July 3, 2008. The National Commercial Court of First Instance in Cordoba 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 Preper 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 Preper's accounting and banking records will be submitted in court on Aug. 28, 2008. Ms. Sosa is also in charge of administering Preper's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Preper S.R.L. Avenida Olmos 201, Ciudad de Cordoba Cordoba, Argentina The trustee can be reached at: Laura Beatriz Sosa Padre Lozano 320, Bu Alto Alberdi Ciudad de Cordoba, Cordoba Argentina ROFIL MEDICAL: Proofs of Claim Verification is Until June 13 ------------------------------------------------------------ Esther Ferraro, the court-appointed trustee for Rofil Medical Argentina SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 13, 2008. Ms. Ferraro will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 45, 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 Rofil Medical 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 Rofil Medical's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Ferraro is also in charge of administering Rofil Medical's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Rofil Medical Argentina SRL Cuba 1940 Buenos Aires, Argentina The trustee can be reached at: Esther Ferraro Esmeralda 960 Buenos Aires, Argentina SEARCH SA: Trustee to File Individual Reports on July 14 -------------------------------------------------------- Hector Vegetti, the court-appointed trustee for Search SA's bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on July 14, 2008. Mr. Vegetti will be verifying creditors' proofs of claim until May 29, 2008. Mr. Vegetti will submit in court a general report containing an audit of Search's accounting and banking records on Sept. 5, 2008. Mr. Vegetti is also in charge of administering Search's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Search SA Araoz 823 Buenos Aires , Argentina The trustee can be reached at: Hector Vegetti Montevideo 711 Buenos Aires , Argentina TALLERES INA: Proofs of Claim Verification Deadline is June 17 -------------------------------------------------------------- Alicia Mabel Orinov, the court-appointed trustee for Talleres Ina SACIF's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 17, 2008. Ms. Orinov will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 5 in Buenos Aires, with the assistance of Clerk No. 9, 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 Talleres Ina 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 Talleres Ina's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Orinov is also in charge of administering Talleres Ina's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Talleres Ina SACIF Sarmiento 983 Buenos Aires, Argentina The trustee can be reached at: Alicia Mabel Orinov Oliden 3688 Buenos Aires, Argentina TELEFONICA DE ARGENTINA: Parent Eyes 150 Mil. Clients in LatAm -------------------------------------------------------------- Telefonica de Argentina SA's parent Telefonica SA expects about 150 million subscribers in Latin America by year-end. Business News Americas relates that Telefonica had 134 million clients in Latin America in 2007, including: -- 102 million mobile subscribers, -- 23.9 million fixed line subscribers, -- five million broadband accounts, and -- 1.16 million pay television accounts. Telefonica's Latin American General Director Jose Maria Alvarez- Pallete told BNamericas that Latin America's seven main markets are experiencing higher economic growth than the company expected and the firm should take advantage of it. BNamericas recalls that Telefonica's Chief Executive Officer Cesar Alierta said in 2007 that the firm expects to invest up to EUR16 billion in Latin America through 2010. According to BNamericas, Telefonica is positive that Latin America will be the fastest growing region in the telecommunications segment in the next few years. A 7.8% average annual growth rate is expected. Sales of Telefonica's fixed, broadband, and television operations in Latin America increased 11% to EUR20.1 billion, compared to 2006. Latin America represented 35.6% of Telefonica's global revenues in 2007, BNamericas states. Headquartered in Buenos Aires, Argentina, Telefonica de Argentina SA -- http://www.telefonica.com.ar/-- provides telecommunication services, which include telephony business both in Spain and Latin America, mobile communications businesses, directories and guides businesses, Internet, data and corporate services, audiovisual production and broadcasting, broadband and Business-to-Business e-commerce activities. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2008, Fitch Ratings upgraded its local currency issuer default rating on Telefonica de Argentina to 'BB' from 'BB-'. The ratings agency also affirmed its 'B+' foreign currency issuer default rating on the telecom firm. Telefonica de Argentina's foreign currency rating is rated B2 by Moody's Latin America with a positive outlook. VELIDI SA: Trustee to Verify Proofs of Claim Until June 4 --------------------------------------------------------- Estudio Stenner y Orella, the court-appointed trustee for Velidi S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until June 4, 2008. Estudio Stenner will present the validated claims in court as individual reports on July 17, 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 Velidi 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 Velidi's accounting and banking records will be submitted in court on Sept. 12, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on March 9, 2009. The trustee can be reached at: Estudio Stenner y Orella Uruguay 667 Buenos Aires, Argentina ZUAZO SA: Proofs of Claim Verification Deadline is May 9 -------------------------------------------------------- The court-appointed trustee for Zuazo S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 9, 2008. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance in Cruz del Eje, Cordoba, 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 Zuazo 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 Zuazo's accounting and banking records will be submitted in court. Infobae didn't state the submission dates for the reports. The trustee is also in charge of administering Zuazo's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Zuazo SA Pueyrredon Esquina 9 de Julio Cruz del Eje Cordoba, Argentina =============== B A R B A D O S =============== * BARBADOS: S&P Publishes Report Summary ---------------------------------------- Standard & Poor's Ratings Services has released a report on the island nation of Barbados. Strengths -- Political stability and strong governance, reflecting mature political, legal, and economic institutions; -- Monetary stability, supported by a long-standing fixed- exchange-rate regime; and -- Strong human development indicators, reflecting high per- capita income and good education and health systems. Weaknesses -- Limited fiscal flexibility, due to a relatively high gross general government debt level and the resulting high interest burden; and -- A small open economy with few growth prospects outside the tourism sector and high current account deficits, which leave Barbados vulnerable to negative external factors. Rationale The Democratic Labour Party under David Thompson won 20 of the 30 seats in Barbados' Jan. 15, 2008, parliamentary elections, ending nearly 14 years of government by the Barbados Labour Party. One of the new prime minister's key economic pledges is to balance the budget. Such a step would signal a significant fiscal adjustment that could lead to a more rapid decline in gross public sector debt, which totals 70% of GDP -- although net public sector debt is just 45% of GDP, given the publicly owned National Insurance Scheme's large holdings of government assets. Furthermore, the prime minister has pledged to scale back so-called off-budget spending, mainly for road construction. These changes would not only reduce expenditure, but also add to the transparency of the budgetary process. S&P expects the fiscal balance to deteriorate modestly in fiscal 2007 ended March 31, 2008, to a small deficit of 0.6% of GDP from a small surplus of 0.2% in fiscal 2006, including the National Insurance Scheme's large surpluses. The general government deficit is likely to widen further in fiscal 2008, to 1.1% of GDP, before contracting again in 2009-2010. GDP growth in Barbados is expected to slow to 3% in 2008 from 4.5% in 2007, due to the United States recession and lower public sector capital expenditure. Barbados relies less upon the U.S. market than many Caribbean countries, and therefore will be somewhat less affected by the U.S. slowdown. The current account deficit, which reached an expected 8% of GDP in 2007, should moderate due to lower capital expenditure and a slowdown in growth. However, the country is heavily reliant upon oil imports, which will keep the current account deficit at about 7.5% of GDP in 2008. This energy dependence may change should the exploration of Barbados' untapped oil reserves prove successful. Overall, the ratings on Barbados continue to balance out still- high external pressures and limited fiscal flexibility against political stability and strong governance within both the public and private sectors. Continuing challenges for the country are to increase tourism prospects and to diversify into new service sectors to generate solid economic growth. Outlook The stable outlook reflects the expectation that the public sector debt burden will continue to decline supported by fiscal discipline and economic growth from traditional and new sectors. Alternatively, fiscal slippage and the consequent reversal of the declining debt trajectory would put the ratings under pressure. Similarly, the widening of the external current account deficits, particularly accompanied by declining FDI and equity inflows, would weaken the international reserve position, undermine the fixed-exchange-rate regime, and ultimately lead to negative rating consequences. =========== B E L I Z E =========== * BELIZE: S&P Publishes Report Summary -------------------------------------- Standard & Poor's Ratings Services has released a report on the British colony of Belize. Strengths -- The favorable amortization and cost profile of government debt following the 2007 debt restructuring; -- A commitment to a restrictive fiscal stance, evidenced by a gradual reduction in the general government deficit; and -- A strong real economy, reflecting an expanding tourism sector, promising developments in the oil sector, and successful economic diversification. Weaknesses -- High external liquidity pressures, reflecting a very low level of foreign exchange reserves; -- A large (though diminishing) general government debt burden; and -- External vulnerabilities, given Belize's narrow and open economic structure and weather-related risk. Rationale The ratings on Belize balance out the government's large debt against its improved amortization and cost profile. The debt exchange, launched by the government on Dec. 18, 2006, and concluded on Feb. 20, 2007, affected 50% of Belize's total public debt. The participation rate in the restructuring was high, with over 95% of eligible claims exchanged by year-end 2007. While the restructuring did not reduce the stock of the government's debt which stood at 86% of GDP in 2007, it lengthened its maturity significantly and decreased debt interest payments. Interest costs dropped to 5.5% of GDP in 2007 from 8% in 2006, and should decrease further to 4.4% of GDP in 2008. The restructuring should save Belize an estimated US$481.5 million between 2007 and 2015. Lower amortization needs, coupled with a strengthened external current account performance -- the current account deficit is estimated at 3.3% of GDP in 2007, down from 14% two years ago -- have helped lower external liquidity pressures. The external financing gap declined to 123% of usable reserves, adjusted for 100% of the monetary base and current account receipts (CAR) in 2007 from 163% in 2005, and should remain at this level in the near future. The still-high external financing gap ratio reflects the central bank's continuously tight external reserve position. Foreign-exchange reserves are very low, and, adjusted for the legally required level (40% of the monetary base), barely cover six days of current account payments -- one of the lowest coverages among rated sovereigns. However, according to S&P's methodology, which adjusts the level of reserves in sovereigns with a long-standing peg for 100% of the monetary base, usable reserves are negative. Belize's fiscal performance has been gradually improving. The fiscal adjustment reflects revenue strides, including tax measures. Expenditure containment has been less successful, as spending continues to reflect Belize's political cycle and reconstruction needs. As a result, S&P forecasts the central government fiscal deficit at 2.9% of GDP in fiscal 2007 (ended March 31, 2008) -- above the budgeted target of 1% of GDP, but an improvement from 4.4% of GDP in fiscal 2006. Spending in fiscal 2007 was 12% higher than budgeted, and reflects additional preelection spending and the impact of Hurricane Dean. Fiscal prudence is essential if Belize is to reduce its debt burden and increase foreign-exchange reserves. The fiscal deficit is projected at 3.2% of GDP on the central government level for fiscal 2008, 2.7% of GDP on the general government level, including social security surpluses. Government finances will feel the impact of lower revenue in fiscal 2008 due to the upcoming transfer of oil revenue to the newly created Petroleum Revenue Management Fund. The estimated revenue loss of 2% of GDP is expected to be counterbalanced by contained spending and further improvement in tax administration. On the qualitative side, S&P expects the victory of the United Democratic Party which gained 57% of the popular vote and secured 25 out of 31 seats in the House of Representatives during February 2008's general elections, to increase transparency and dynamism in government operations. Overall, fiscal deficits in the range of 2.0%-2.5% of GDP in the next two to three years (as forecasted by S&P), coupled with real GDP growth of 2.5%-3.0%, should lead to the gradual decline of government debt to 76% of GDP by 2010 from 86% of GDP estimated at year-end 2007. Stronger fiscal efforts would ensure a more robust debt decline. The real economy suffered from both external and domestic events in 2007. Hurricane Ivan damaged the country's agricultural sector, infrastructure, and housing, with a total loss estimated at US$100 million. In addition, the shrimp industry experienced some setbacks, oil production has moderated, and the tourism sector performed below par as arrivals grew by just 1.8% in 2007 compared with 4.5% in 2006. As a result, real GDP grew by 1.7% in 2007, down from an earlier estimated 3%. Real GDP growth is expected to rebound to 2.5% in 2008 on the back of gains in the oil industry, new hydroelectric and construction projects, and the development of agricultural niches (e.g. shrimp farming, citrus, papaya, and using sugar cane waste for electricity generation). The performance of the traditional sectors, such as tourism and agriculture, will be mixed due to external economic and weather-related factors. Outlook The stable outlook reflects S&P's expectation that the government's ability to improve its financial position and reduce debt improved following the debt restructuring. Specifically, lessened fiscal and external liquidity pressures following the debt exchange provided the government with a favorable time frame in which fiscal discipline can be tightened, debt management improved, and the transparency of its finances enhanced. Together, this should reduce the sovereign's high debt levels. If the new government benefits from this important momentum and acts on its promise of increased transparency, governance efficiency, and fiscal prudence, debt should decline. On the other hand, if the government does not capitalize on the benefits of the current situation and allows further fiscal slippages, the loss of momentum -- especially amid a more challenging external situation -- will negatively affect the ratings. ============= B E R M U D A ============= FOSTER WHEELER: UK Subsidiary Bags Bahrain Nat'l Gas Contract ------------------------------------------------------------- Foster Wheeler Ltd.'s UK-headquartered subsidiary, Foster Wheeler Energy Limited, part of its Global Engineering and Construction Group, has been awarded a contract by the Bahrain National Gas Company (BSC) (BANAGAS) to carry out the pre-FEED (pre-front-end engineering design) for the revamp and expansion of the BANAGAS liquefied petroleum gas facilities in Bahrain. The expansion will allow the plant to increase its gas throughput, which is planned to reach 530 million standard cubic feet per day by 2020. The Foster Wheeler contract value for this project was not disclosed and will be included in the company's first-quarter 2008 bookings. Foster Wheeler will develop the configuration for the expanded plant, which will include high-yield LPG recovery unit(s). The company will also produce a licensor evaluation and the basis of design for the selected technology and other areas to be revamped for inclusion in an invitation to bid for the FEED phase of the project. “The award of this contract continues Foster Wheeler's long- standing relationship with BANAGAS,” said Michael J. Beaumont, chairman and chief executive officer, Foster Wheeler Energy Limited. “With our knowledge of BANAGAS' existing facilities and our in-depth technical expertise, we will work with our client to develop an optimized development scheme of this expansion.” Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. The company reported total debt of approximately US$150 million at Sept. 30, 2007. =========== B R A Z I L =========== ADVANCED MICRO: Posts US$358 Mln Net Loss in First Quarter 2008 --------------------------------------------------------------- Advanced Micro Devices Inc. disclosed that for the first quarter of 2008, it incurred a net loss of US$358 million. This compares to a a net loss of US$1.772 billion for the fourth quarter of 2007 and a net loss of US$611 million for the first quarter of 2007. The company also said that first quarter 2008 operating loss was US$264 million. These results include an impact of US$50 million, or US$0.08 per share, from ATI acquisition-related charges. For the first quarter of 2008, revenue was US$1.505 billion, down 15% compared to the fourth quarter of 2007 and up 22% compared to the first quarter of 2007. “A seasonally weak first quarter was amplified by a challenging economic environment for consumers and lower than expected revenues of previous generation products, resulting in lower than expected revenues in all business segments. However, we are encouraged by the market acceptance of our Quad-Core AMD Opteron(TM) server processors as well as our new chipset and graphics offerings,” said Robert J. Rivet, AMD’s Chief Financial officer. “We remain committed to achieve operating profitability in the second half of the year, driven by our portfolio of new products and platforms and aggressive restructuring programs.” First quarter 2008 gross margin was 42% compared to 44% in the fourth quarter of 2007 and 28% in the first quarter of 2007. The decrease from the prior quarter was primarily due to decreased microprocessor unit shipments. The company says that in the seasonally down second quarter, it expects revenue to decrease in line with seasonality. As previously disclosed, AMD expects to record a restructuring charge in the second quarter of 2008. About AMD Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. -- http://www.amd.com/-- (NYSE: AMD) is a global provider of innovative processing solutions in the computing, graphics and consumer electronics markets. AMD is dedicated to driving open innovation, choice and industry growth by delivering superior customer-centric solutions that empower consumers and businesses worldwide. Outside the United States, the company has subsidiaries in Belgium, Brazil, China, Germany, Japan, Malaysia and Bermuda, among others. * * * As reported in the Troubled Company Reporter-Latin America on April 11, 2008, Standard & Poor's Ratings Services placed its 'B' corporate credit and senior unsecured ratings on Advanced Micro on CreditWatch with negative implications following the company's announcement that first-quarter revenues will be lower than previously expected as a result of weakening business conditions and continued technical challenges. Moody's Investors Service also placed Advanced Micro Devices' B1 corporate family and probability of default ratings, along with its B2 senior unsecured rating, under review for possible downgrade following the company's announcement that first quarter 2008 results will be weaker than anticipated. BANCO BRADESCO: Grants BRL16B Bridge Loan to Tele Norte ------------------------------------------------------- Banco Bradesco SA, along with other Brazilian banks, has granted Tele Norte Leste Participacoes SA a BRL16 billion bridge loan to cover the proposed acquisition of Brasil Telecom Participacoes SA, financial daily Valor Economico reports. According to Valor Economico, the deal for the loan was also reportedly reached with Banco Itau and Banco do Brasil. Valor Economico notes that Tele Norte is expected to seek debt restructuring deals in foreign capital markets to fund the deal in the longer term. Business News Americas relates that Tele Norte will make a BRL4.8 billion offer for Brasil Telecom. It must borrow much more as Brasil Telecom's main Brazilian shareholders need BRL11 billion to buy out majority owner Citigroup. Brazilian news daily O Estado de S Paulo relates that Tele Norte will disclose the takeover offer this week, after postponing the announcement several times. According to O Estado, the deal is awaiting authorization from telecoms regulator Anatel. Tele Norte promised to pay Brasil Telecom BRL500 million in compensation once Anatel refuses to approve the deal. Tele Norte will reorganize its ownership structure after acquiring Brasil Telecom, BNamericas adds. Brasil Telecom would be entitled to the compensation as Tele Norte's offer interrupted court proceedings between Citigroup and Opportunity, Tele Norte's shareholders, BNamericas states. About Tele Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. About Banco Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO CRUZEIRO: UBS Pactual Decreases Stake in Bank --------------------------------------------------- Funds managed by investment bank UBS Pactual has decreased its stake in Banco Cruzeiro do Sul SA to 9.54% of non-voting capital. According to Banco Cruzeiro, 4.32 million of its preferred shares were owned by UBS Pactual as of April 8, 2008. Business News Americas relates that earlier this month, Banco Cruzeiro and UBS Pactual signed swap agreements, about BRL50 million each with a maximum tenor of 365 days. Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul SA (Bovespa - CZRS4) -- http://www.bcsul.com.br/-- is a private- sector multiple bank with operations in the consumer segment, through paycheck-deductible loans to public employees and social security beneficiaries, and in the corporate segment, offering middle-market companies short-term loans usually backed by receivables. The bank's core business is lending to civil servants, with payments automatically deducted from payrolls. * * * As reported in the Troubled Company Reporter-Latin America on March 27, 2008, Moody's Investors Service assigned a Ba1 long- term foreign currency debt rating to Banco Cruzeiro do Sul S.A.'s existing US$30,000,000 senior unsecured notes due in May 2010. Moody's said the outlook on the rating is stable. BANCO DAYCOVAL: Tarpon Investment Funds Increase Stake in Bank -------------------------------------------------------------- Investment funds controlled by Tarpon Investment Group increased their stake in Banco Daycoval SA to 4.20% of all capital and 11.7% of non-voting, Business News Americas reports. According to BNamericas, Banco Daycoval disclosed this month a share buyback program for up to 10% of preferred shares through April 3, 2009. Banco Daycoval "moved BRL1.09 billion when it went public" in July 2007, BNamericas notes. Headquartered in Sao Paulo, Brazil, Banco Daycoval started its activities in 1968, with the creation of Daycoval DTVM and Valco Corretora de Valores. Brothers Ibrahim and Sasson Dayan control the bank. It is the core business of its shareholders and specializes in financing small- and medium-sized companies, backed by receivables. It also operates with consignment lending for payroll deduction and consumer financing. Since June 2007, the bank has had 29% of its shares traded at Bovespa on the New Brazilian Stock Market. These shares enjoy a tag- along privilege, giving minority shareholders 100% of the value of the block of controlling shares in the event of the sale of the institution. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 27, 2007, Fitch Ratings placed Banco Daycoval S.A.'s Long-term foreign currency Issuer Default Rating at 'BB-' and Long-term local currency IDR at 'BB-' with a Stable Outlook. BANCO DO BRASIL: Extends BRL16 Billion Bridge Loan to Tele Norte ---------------------------------------------------------------- Banco do Brasil SA, along with other Brazilian banks, has granted Tele Norte Leste Participacoes SA a BRL16 billion bridge loan to cover the proposed acquisition of Brasil Telecom Participacoes SA, financial daily Valor Economico reports. According to Valor Economico, the deal for the loan was also reportedly reached with Banco Itau and Banco Bradesco. Valor Economico notes that Tele Norte is expected to seek debt restructuring deals in foreign capital markets to fund the deal in the longer term. Business News Americas relates that Tele Norte will make a BRL4.8 billion offer for Brasil Telecom. It must borrow much more as Brasil Telecom's main Brazilian shareholders need BRL11 billion to buy out majority owner Citigroup. Brazilian news daily O Estado de S Paulo relates that Tele Norte will disclose the takeover offer this week, after postponing the announcement several times. According to O Estado, the deal is awaiting authorization from telecoms regulator Anatel. Tele Norte promised to pay Brasil Telecom BRL500 million in compensation once Anatel refuses to approve the deal. Brasil Telecom would be entitled to the compensation as Tele Norte's offer interrupted court proceedings between Tele Norte's shareholders Citigroup and Opportunity, BNamericas states. Tele Norte will reorganize its ownership structure after acquiring Brasil Telecom, BNamericas adds. About Tele Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. About Banco do Brasil Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * On Feb. 29, 2008, Moody's Investors Rating Service assigned a Ba2 foreign currency deposit rating to Banco do Brasil. BANCO ITAU: Grants BRL16 Billion Bridge Loan to Tele Norte ---------------------------------------------------------- Banco Itau Holding Financeira SA, along with other Brazilian banks, has granted Tele Norte Leste Participacoes SA a BRL16 billion bridge loan to cover the proposed acquisition of Brasil Telecom Participacoes SA, financial daily Valor Economico reports. According to Valor Economico, the deal for the loan was also reportedly reached with Banco Bradesco and Banco do Brasil. Valor Economico notes that Tele Norte is expected to seek debt restructuring deals in foreign capital markets to fund the deal in the longer term. Business News Americas relates that Tele Norte will make a BRL4.8 billion offer for Brasil Telecom. It must borrow much more as Brasil Telecom's main Brazilian shareholders need BRL11 billion to buy out majority owner Citigroup. Brazilian news daily O Estado de S Paulo relates that Tele Norte will disclose the takeover offer this week, after postponing the announcement several times. According to O Estado, the deal is awaiting authorization from telecoms regulator Anatel. Tele Norte promised to pay Brasil Telecom BRL500 million in compensation once Anatel refuses to approve the deal. Brasil Telecom would be entitled to the compensation as Tele Norte's offer interrupted court proceedings between Tele Norte's shareholders Citigroup and Opportunity, BNamericas states. Tele Norte intends to reorganize its ownership structure after acquiring Brasil Telecom, BNamericas adds. About Tele Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. About Banco Itau Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA(Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. The bank has offices in Miami, New York, Hongkong, Lisbon, Luxembourg, Bahamas, the Cayman Islands, Chile and Uruguay. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Fitch changed the outlook of Banco Itau Holding Financiera S.A.'s 'BB+' foreign currency IDR rating to positive from stable. BANCO NACIONAL: Inks Two Copasa Contracts for Over BRL704 Mil. -------------------------------------------------------------- Brazilian news agency Agencia Estado reports that Banco Nacional de Desenvolvimento Economico e Social has signed two contracts with Minas Gerais state water utility Copasa for over BRL704 million. Business News Americas relates that the funds will be used in projects under the federal government's growth acceleration plan called PAC. They will be used for the construction of a BRL22.6 million wastewater treatment plant in Corrego do Onca. They will also be used to expand potable water supply and sewerage services throughout the state for BRL682 million. According to BNamericas, Brazil's President Luiz Inacio Lula da Silva will visit Belo Horizonte to sign 10 contracts to launch works in nine mining municipalities for BRL520 million. President Lula da Silva will also announce the disbursement of BRL412 million for unfinished projects, which include: -- housing, -- infrastructure development, and -- sanitation. PAC investments in the state will total BRL1.73 billion by 2010, including the resources from Banco Nacional to Copasa and counterpart funds from state and municipal governments, BNamericas states, citing Caixa Economica Federal's Regional Supervisor Dimas Lamounier. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. BANCO NACIONAL: Okays BRL63.5MM Loan for Water Supply Expansion --------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has approved BRL63.5 million financing for the expansion of water supply and sewage to 57 thousand households of Rondonopolis. Works will generate around 3,000 direct jobs. The project, which is part of the Growth Acceleration Program, also covers the implementation of improvements to the existing systems and enhancement of service quality. BNDES’ support corresponds to 95% of the total cost, which is BRL66.9 million and will contribute to the generation of 3 thousand jobs during the works. After the completion of the works, the entire urban population of the city will be provided with sewage treatment services. Currently, only 25% of this population is served and 76.3% of sewage collected is treated. Altogether, 57 thousand households will be benefited with this project. Investments in the water supply system will assist the entire urban population, especially the low-income areas. Such investments, thus, will also reduce death of children and diseases. The project is expected to reduce losses and provide regular services, which will avoid the current downtimes, also enhancing the environmental conditions by spreading out to everyone the sewage treatment services. Rondonopolis has 173 thousand inhabitants, 94.4% out of which live in the city. In the 80s, the city became the large center of the south region of Mato Grosso owing to its economic, demographic and urban importance. In the 90s, agriculture, farming, commerce and industry became the foundations of the local economy, and agriculture started to generate employment and income. The sanitation system did not follow the growth of the city. Water connections were precarious, fitted with non-standardized and often improper materials. The use of such materials cause increased losses of treated water, increasing the risk of bursting the network due to excessive pressure and also increases the risk of water contamination. The project will bring positive environmental impacts, such as: * the reduction of chemicals thrown into Rio Vermelho, due to the reuse of sludge from water treatment; * reduction of pollutant material thrown on the rivers and on the Pantanal of Mato-grossense; and * cleaning-up of water tables. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. BANIF BANCO: Moody's Puts Preliminary Ba1 Local Currency Rating --------------------------------------------------------------- Moody's Investors Service assigned a bank financial strength rating of D- to Banif Banco de Investimentos S.A. The rating agency also assigned long and short term global local currency deposit ratings of Ba1 and Not Prime, respectively, and national scale ratings of Aa2.br and BR-1 to the bank. At the same time, Moody's assigned its long and short term foreign currency deposit ratings of Ba2 and Not Prime. All ratings have a stable outlook. The rating agency noted that the D- bank financial strength rating for Banif Banco benefits from the bank's established investment banking franchise but is limited by relatively weak stand-alone financial fundamentals, reflecting its very short operating track record and inherently volatile earnings profile. Over the last two years, costs incurred with the implementation of a new operational structure have also pressured profitability, however this should abate as the bank grows its operations, said Moody's. Increasing competition in the bank's core business segments could result in narrower financial margins in the future. The D- BFSR also reflects the bank's significant reliance on wholesale funding sources, particularly on certificates of deposit with related companies, as well as its limited access so far to third-party sources of funding. The rating is also indicative of the bank's modest balance sheet and adequate capital base, which was boosted temporarily last year by the sale of shares held in Sao Paulo's mercantile and stock exchanges. Moody's noted that Banif Banco's niche operation targets middle and upper-middle market companies. Its franchise is reinforced by a financial brokerage operation that generates a reasonable inflow of recurrent revenues in the form of transaction fees and commissions. The bank's investment banking operations are supported by a management team that has a demonstrated ability to promote business growth in line with a disciplined risk culture, said Moody's. Banif Banco's Ba1 global local currency deposit rating is based on the bank's baseline credit assessment of Ba3, which is then lifted two notches by Moody's assumption of a high probability of support from the bank's ultimate parent, the Portuguese-based Banif SGPS, SA. Moody's also noted there is a low likelihood that the bank would be eligible for systemic support given the bank's low participation in the Brazilian deposit market. These ratings were assigned to Banif Banco de Investimentos SA: -- Bank Financial Strength Rating: D-, stable outlook -- Long-term global local currency deposit rating: Ba1, stable outlook -- Short-term global local currency deposit rating: Not Prime -- Long term foreign currency deposit rating: Ba2, stable outlook -- Short term foreign currency deposit rating: Not Prime -- Brazilian National Scale Deposit Ratings: Aa2.br long-term deposit rating and BR-1 short-term deposit rating Headquartered in Sao Paulo, Brazil, Banif BI was established in 2005. As of December 2007, the bank had total assets of approximately BRL828 million (US$468 million) and equity of BRL347 million (US$196 million). BRASIL TELECOM: Tele Norte Gets BRL16 Bil. Loan to Acquire Bank --------------------------------------------------------------- Tele Norte Leste Participacoes SA has secured a BRL16 billion bridge loan from Brazilian banks to cover its proposed acquisition of Brasil Telecom Participacoes SA, sources told financial daily Valor Economico. According to Valor Economico, the deal for the loan was reportedly reached with: -- Banco Itau, -- Banco Bradesco, and -- Banco do Brasil. Valor Economico notes that Tele Norte is expected to seek debt restructuring deals in foreign capital markets to fund the deal in the longer term. Business News Americas relates that Tele Norte will make a BRL4.8 billion offer for Brasil Telecom. It must borrow much more as Brasil Telecom's main Brazilian shareholders need BRL11 billion to buy out majority owner Citigroup. Tele Norte will reorganize its ownership structure after acquiring Brasil Telecom, BNamericas says. Brazilian news daily O Estado de S Paulo relates that Tele Norte will disclose the takeover offer this week, after postponing the announcement several times. According to O Estado, the deal is awaiting authorization from telecoms regulator Anatel. Tele Norte promised to pay Brasil Telecom BRL500 million in compensation once Anatel refuses to approve the deal. Brasil Telecom would be entitled to the compensation as Tele Norte's offer interrupted court proceedings between Citigroup and Opportunity, Tele Norte's shareholders, BNamericas states. About Tele Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. * * * To date, Brasil Telecom carries Moody's Investors Service's Ba1 senior unsecured and credit default swap ratings. FIDELITY NAT'L: Converts Banco Real Portfolio to Brazilian Unit --------------------------------------------------------------- Fidelity National Information Services, Inc. has converted Banco Real's more than 5,000,000 Brazilian credit card portfolio to Fidelity Processadora e Servicos S.A, its Brazil-based card processing services company. Fidelity Processadora e Servicos S.A., which is a joint venture among Fidelity National, Banco Real and Banco Bradesco, provides Brazil's most comprehensive range of card processing and support services including call center management, back-office support, card transaction processing, risk management and collection services. As a result of the Banco Real conversion, Fidelity Processadora e Servicos now processes more than 22 million cards in Brazil. "FIS' proven expertise and excellent reputation in Brazil were key factors in our decision to partner with FIS," said Felix Cardamone, executive vice president of Banco Real. "The feature functionality, scalability and operational efficiency of FIS' BASE2000(TM) card processing platform will enable us to offer more choices to our customers at competitive prices." "We are very proud and appreciative of the conversion teams whose hard work and dedication resulted in a successful transition," said FIS International division executive vice president, Vince Pavese. "We are extremely pleased to have partnered with Banco Real," added Fidelity National Information Services, Inc. president and chief executive officer, Lee A. Kennedy. "Brazil represents an excellent opportunity for our company and we are strongly committed to providing the bank and its customers with excellent service and support." About Banco Real Banco Real is the third biggest private bank in assets in Brazil. In 2007, the institution had a profit of BRL2.975 billion, a rise of 45% in relation to 2006. According to information given by Banco Central, Banco Real has reached a record participation in the Brazilian credit market, with 7.1% of the total market. In addition to these figures, Banco Real has more than 33,000 employees, approximately 2,000 branches and offices for banking attendance (Postos de Atendimento Bancario [PABs]) and more than 9,800 points of sale all over the national territory. In October, 2007, Banco Real integrated the consortium formed by RBS, Fortis and Santander. About Fidelity National Based in Jacksonville, Florida, Fidelity National Information Services, Inc. -- http://www.fidelityinfoservices.com/-- provides core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage related information products; and outsourcing services to financial institutions, retailers, mortgage lenders and real estate professionals. FIS has processing and technology relationships with 35 of the top 50 global banks, including nine of the top ten. Nearly 50% of all US residential mortgages are processed using FIS software. FIS maintains a strong global presence, serving over 7,800 financial institutions in more than 60 countries worldwide, including Brazil, Chile and Japan. * * * As reported in the Troubled company Reporter-Latin America on Oct. 29, 2007, Standard & Poor's Ratings Services placed its ratings, including the 'BB' corporate credit rating, on Fidelity National Information Services Inc. on CreditWatch with negative implications. Moody's Investors Service also placed these ratings on review for possible downgrade: US$1.6 billion First Lien Senior Secured Term Loan B Ba1; US$2.1 billion First Lien Senior Secured Term Loan A Ba1; US$900 million First Lien Senior Revolving Credit Facility Ba1; US$200 million 4.75% (Certegy) notes due September 2008 Ba1; and Corporate Family Rating Ba1. JAPAN AIRLINES: To Pay US$110 Million Fine for U.S. Price-Fixing ---------------------------------------------------------------- Agence France Press writes that Japan Airlines International Co. has agreed to pay a US$110 million criminal fine and pleaded guilty for its role in a price-fixing scandal tied to air cargo shipments. According to senior Justice Department antitrust official, Thomas Barnett, JAL "engaged in a conspiracy" in the United States and other countries to cut out competition by fixing the rates on international shipments of air cargo to and from America and elsewhere, relates AFP. Mr. Barnett adds that the "price-fixing conspiracy inflicted a heavy toll on American businesses and consumers," states AFP. James Rowley at Bloomberg News writes that the cargo charges reflected a base rate plus surcharges for fuel and security that JAL imposed after the Sept. 11 terrorist attacks. Mr. Rowley notes that the plea agreement was announced as Japan's Fair Trade Commission raided freight forwarders and shipping companies as part of a price-fixing probe. JAL, which has participated in the scheme from on or about April 1, 2000, to February 2006, said it had "fully" cooperated with the U.S. government probe, reports AFP. AFP relates that JAL had set aside JPY11.5 billion (around US$113 million) in the expectation it would have to pay a fine to settle the investigation. Mr. Rowley relates that according to the airline's public relations manager, JAL decided the plea agreement is the "best resolution" of the matter. 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. In October 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. LAZARD GROUP: Moody's Maintains Positive Outlook on 'Ba1' Rating ---------------------------------------------------------------- Moody's Investors Service reaffirmed its positive outlook on the Ba1 senior unsecured rating of Lazard Group LLC. The rating outlook was initially assigned on March 19, 2007. Notwithstanding the counter-cyclical nature of some of Lazard's revenue streams, Moody's will continue to assess the company's operating performance in coming quarters (and business pipeline going forward) to determine how Lazard's revenue model and expense flexibility perform in the current challenging market environment, the first significant market downturn faced by Lazard since its 2005 IPO and recapitalization. Management's intentions with respect to financial policy, including leverage, remain a critical rating factor. Since the ratings were assigned in 2005, the company has increased the aggregate amount of its outstanding debt by issuing in 2007 an additional US$600 million of senior debt to fund acquisitions and increase available cash. Moody's will continue to monitor Lazard's progress towards achieving (and subsequently sustaining) debt leverage of 2.5x or less, a level that is more consistent with a rating in the Baa category. To the degree that revenues are constrained by an increasingly difficult macro environment, sustaining leverage at around 2.5x could pose a challenge for Lazard, though debt reduction would help in this regard. Moody's said that since initially rating Lazard in 2005, the firm has made a successful transition into a public company and has generated solid profitability. Moreover, since its IPO, Lazard has been successful at retaining and recruiting advisory professionals to its platform. Lazard's asset management business has also gained traction and is now generating increased levels of net new assets and has become a solid earnings contributor to the firm. The rating agency, however, expressed concern that the turmoil across global capital markets has led to a very challenging operating environment, with the prospect for revenue and earnings growth equally challenging. Though Lazard has not been burdened by the large asset concentrations and valuation write- downs born by the more capital-markets intensive firms, the company in 2008 must nonetheless demonstrate that it can profitably contend with some of the same global headwinds bearing down on the industry. Looking ahead, Moody's expects that industry M&A volumes over the next year- a major driver of Lazard's advisory revenue -- will come in significantly below the level generated in 2007. Given that much of the industry-wide volume decline is expected to be centered in sponsor-related transactions, Lazard should be relatively well positioned to compete for available advisory engagements, given the strength of the firm's relationships with strategic corporate buyers and sellers. Nevertheless, Lazard is not immune from an industry-wide contraction in M&A. Moody's also noted on the plus side that Lazard's restructuring practice is likely to benefit from a projected increase in corporate defaults, with the resultant restructuring revenue helping to partially offset a decline in M&A revenues. Lazard's much improved asset management business should continue generating a sustainable level of revenue, further reducing the likelihood of significantly negative earnings volatility. These ratings of Lazard Group LLC were affirmed with a positive outlook: -- US$600 million 6.85% Senior Notes due June 15, 2017 rated Ba1; -- US$550 million 7.125% Senior Notes due May 15, 2015 rated Ba1; -- US$287.5 million Senior Notes due 2035 associated with its Equity Securities Units also rated Ba1. Lazard is an international advisory and money management firm that reported earnings from continuing operations before minority interests of US$337.7 million in 2007. The company has locations in Australia, Brazil, China, France, Germany, India, Japan, Korea, and Singapore. TAM SA: Will Invest BRL30 Million in Cargo Transport Services ------------------------------------------------------------- Brazilian news service Agencia Estado reports that TAM SA plans to invest some BRL30 million in its cargo transport services. As reported in the Troubled Company Reporter-Latin America on April 18, 2008, TAM changed the name of its freight unit from TAM Express to TAM Cargo. According to TAM's Marketing Director Manoela Amaro, the change is part of the plan for restructuring the brand, and consequently, for a new definition of the company's business units. The freight division is growing in business importance for TAM. Business News Americas relates that the majority of the resources will be invested in infrastructure at domestic cargo terminals throughout Brazil. TAM will also invest BRL8 million in national and international cargo systems to expand cargo transport capacity and integrate operational, commercial, and financial administration, BNamericas states. TAM currently -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. The company's international operations include direct flights to 17 destinations: New York and Miami (USA), Paris (France), London (England), Milan (Italy), Frankfurt (Germany), Madrid (Spain), Buenos Aires and Cordoba (Argentina), Santiago (Chile), Caracas (Venezuela), Montevideo and Punta del Este (Uruguay), AsunciOn and Ciudad del Este (Paraguay), and Santa Cruz de la Sierra and Cochabamba (Bolivia) * * * 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. TELE NORTE: Gets BRL16 Bil. Loan for Brasil Telecom Acquisition --------------------------------------------------------------- Tele Norte Leste Participacoes SA has secured a BRL16 billion bridge loan from Brazilian banks to cover its proposed acquisition of Brasil Telecom Participacoes SA, sources told financial daily Valor Economico. According to Valor Economico, the deal for the loan was reportedly reached with: -- Banco Itau, -- Banco Bradesco, and -- Banco do Brasil. Valor Economico notes that Tele Norte is expected to seek debt restructuring deals in foreign capital markets to fund the deal in the longer term. Business News Americas relates that Tele Norte will make a BRL4.8 billion offer for Brasil Telecom. It must borrow much more as Brasil Telecom's main Brazilian shareholders need BRL11 billion to buy out majority owner Citigroup. Tele Norte will reorganize its ownership structure after acquiring Brasil Telecom, BNamericas says. Brazilian news daily O Estado de S Paulo relates that Tele Norte will disclose the takeover offer this week, after postponing the announcement several times. According to O Estado, the deal is awaiting authorization from telecoms regulator Anatel. Tele Norte promised to pay Brasil Telecom BRL500 million in compensation once Anatel refuses to approve the deal. Brasil Telecom would be entitled to the compensation as Tele Norte's offer interrupted court proceedings between Citigroup and Opportunity, Tele Norte's shareholders, BNamericas states. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. About Tele Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As reported on April 27, 2007, Standard & Poor's Ratings Services placed on CreditWatch with negative implications the 'BB+' corporate credit rating on Tele Norte Leste Participacoes S.A. The creditwatch resulted from TmarPart's decision to buy out its holding company's preferred shares. ULTRAPAR PARTICIPACOES: Sets Shareholders' Meeting to April 28 -------------------------------------------------------------- Ultrapar Participacoes S.A. has informed the Shareholders to attend the Ordinary and Special Shareholders' Meeting, to be held on April 28, 2008, at 2:00 p.m., at company headquarters located at Av. Brigadeiro Luis Antonio, 9th floor, in the City and State of Sao Paulo, to vote on the following matters: At the Special Shareholders’ Meeting 1) Approve the modification of the maximum number of members of the Board of Directors , altering it from 7 to 8, with the consequent modification of Article 17 of the Company Bylaws; 2) Consolidation of the Company Bylaws. At the Ordinary Shareholders’ Meeting 1) To examine and approve the management report, financial statements and balance sheets referring to the year ended on Dec. 31, 2007, supported by a report from the company's Independent Auditors; 2) To ratify the approval of the capital budget for the year 2008, in accordance with the decision of the Board of Directors on Feb. 20, 2008; 3) To decide on the destination of net earnings for the year ending, with the ratification of dividends referring to this said period, already distributed and paid; 4) To elect the members of the Board of Directors, and to set the management's remuneration; 5) To elect the members of the Fiscal Council and set their remuneration. The company said that the minimum percentage of voting capital necessary for requesting a multiple vote for the election of members of the Board of Directors is 5% of the voting capital, according to CVM Instruction The company disclosed that the election of the members of the Board of Directors must consider the composition to be approved at the Extraordinary Shareholders’ meeting. In order to attend the General Shareholders Meeting, holders of nominative shares that are held in collective custody must provide a shareholder position statement, provided by the custodial body, showing the respective shareholding, at a minimum of two working days in advance of the meeting date. The shareholder’s position as the holder of common shares must be proven by consultation of the share registry book. About Ultrapar Participacoes Ultrapar Participacoes S.A. (NYSE: UGP) (BOVESPA: UGPA4) is a company with two main operations: LPG distribution (through its fully-owned subsidiary Ultragaz Participacoes Ltda.) and chemical production (through its also fully-owned subsidiary Oxiteno S.A.). A third smaller but growing business is the transportation and storage of chemicals and fuels, Ultracargo Operacoes Logisticas e Participacoes Ltda., which completes Ultrapar's business portfolio and reinforces the trend for further business diversity in the long run. <