/raid1/www/Hosts/bankrupt/TCRLA_Public/080421.mbx
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.
* * *
In November 2005, Standard & Poor's Ratings Services assigned
its 'BB+' senior unsecured debt rating to the 10-year notes
issuance by LPG International Inc., a wholly owned subsidiary of
Ultrapar Participacoes S.A., in the amount of US$250 million.
At the same time, the 'BB+' long-term corporate credit ratings
on Ultrapar, a Brazilian company with operations in liquefied
petroleum gas (LPG) distribution, chemical production, and
integrated logistics, were affirmed. S&P said the outlook is
stable.
==========================
C A Y M A N I S L A N D S
==========================
CRESCENT BROTHERS: Sets Final Shareholders Meeting for April 24
---------------------------------------------------------------
Crescent Brothers Investments, Ltd., will hold its final
shareholders' meeting on April 24, 2008, at 10:00 a.m. at Close
Brothers (Cayman) Limited, 4th Floor Harbour Place, George Town,
Grand Cayman.
These matters will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted; and
2) authorizing the liquidators to retain the records of the
company for a period of six years from the dissolution of
the company, after which they may be destroyed.
Crescent Brothers' shareholder decided on Feb. 25, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Linburgh Martin
Attn: Neil Gray
Close Brothers (Cayman) Limited
Fourth Floor, Harbor Place
P.O. Box 1034, Grand Cayman
Cayman Islands
Telephone: (345) 949 8455
Fax: (345) 949 8499
GLOBAL ALPHA: Proofs of Claim Filing Deadline is April 29
---------------------------------------------------------
Global Alpha Alliance Ltd.'s creditors have until
April 29, 2008, to prove their claims to John Cullinane and
Derrie Boggess, the company's liquidators, or be excluded from
receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Global Alpha's shareholder decided on Feb. 29, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane and Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
Telephone: (345) 914-6305
LA CHAINE: Will Hold Final Shareholders Meeting on April 25
-----------------------------------------------------------
La Chaine Limited will hold its final shareholders' meeting on
April 25, 2008, at 10:00 a.m. at BDO Tortuga, 2nd Floor,
Building 3, Governors Square, 23 Lime Tree Bay Avenue,
Grand Cayman, Cayman Islands.
These matters will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted; and
2) authorizing the liquidators to retain the records of the
company for a period of five years from the dissolution of
the company, after which they may be destroyed.
La Chaine's shareholders agreed on March 6, 2008, to place the
company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Glen Trenouth and Rodney Graham
P.O. Box 31118, Grand Cayman KY1-1205
Cayman Islands
Telephone: (345) 943 8800
Fax: (345) 943 8801
SENIOR FUNDING: Proofs of Claim Filing Deadline is April 23
-----------------------------------------------------------
Senior Funding Limited's creditors have until April 23, 2008, to
prove their claims to Westport Services Ltd., the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Senior Funding's shareholder decided on March 18, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attn: Evania Ebanks
P.O. Box 1111, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
THE PRAIRIE FUTURES: Final Shareholders Meeting is on April 25
--------------------------------------------------------------
The Prairie Futures Fund Ltd. will hold its final shareholders'
meeting on April 25, 2008, at 10:00 a.m. at BDO Tortuga, 2nd
Floor, Building 3, Governors Square, 23 Lime Tree Bay Avenue,
Grand Cayman, Cayman Islands.
These matters will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted; and
2) authorizing the liquidators to retain the records of the
company for a period of five years from the dissolution of
the company, after which they may be destroyed.
The Prairie Futures' shareholders agreed on March 6, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Glen Trenouth and Rodney Graham
P.O. Box 31118, Grand Cayman KY1-1205
Cayman Islands
Telephone: (345) 943 8800
Fax: (345) 943 8801
==================
C O S T A R I C A
==================
ANIXTER INT'L: Earns US$253.5 Million in Year Ended Dec. 31
-----------------------------------------------------------
Anixter International Inc. has reported US$253.5 million of net
income for the year ended Dec. 28, 2007, an increase of 21%,
compared to US$209.3 million of net income in 2006.
Net income in 2007 and 2006 was favorably impacted by a number
of tax items that increased net income US$11.8 million and
US$27.0 million, respectively. Excluding these favorable tax
items, net income rose 33 percent from the prior year.
The company’s net sales during 2007 increased US$914.3 million,
or 18.5%, to US$5,852.9 million from US$4,938.6 million in 2006.
A series of recently-completed acquisitions accounted for
US$125.5 million of the increase while favorable effects of
foreign exchange rates contributed US$139.3 million to sales.
Excluding the acquisitions and the favorable effects of foreign
exchange rates, the company’s net sales increased US$649.5
million, or approximately 13.2%, in 2007 as compared to the
prior year.
The factors driving the company’s strong organic growth were
consistent with those the company has seen during the past
couple of years. The company experienced solid growth in larger
project business, as it relates to data center builds in the
enterprise cabling market and particularly within the
energy/natural resources customers in the electrical and
electronic wire and cable market. The company also continues to
experience strong growth in security and OEM supply sales.
About Anixter
Anixter International Inc. -- http://www.anixter.com/-- is the
world's largest distributor of communication products and
electrical and electronic wire and cable, and a leading
distributor of fasteners and other small parts ("C" class
inventory components) to original equipment manufacturers.
The company has nearly US$725 million in inventory of more than
325,000 products, logistics network of 197 warehouses with more
than 5 million square feet of space. It has operations in Latin
American countries including Mexico, Costa Rica, Brazil and
Chile.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 2, 2007, Fitch Ratings affirmed these ratings for
Anixter International Inc. and its wholly owned operating
subsidiary, Anixter Inc.:
Anixter International Inc.
-- Issuer Default Rating 'BB+';
-- Senior unsecured debt 'BB-'.
Anixter Inc.
-- Issuer Default Rating 'BB+';
-- Senior unsecured notes 'BB+';
-- Senior unsecured bank credit facility at 'BB+'.
===================================
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
-------------------------------------------------------
The Honorable Martin Glenn of the U.S. Bankruptcy Court for the
Southern District of New York extended, on an interim basis, the
deadline for PRC LLC and its debtor-affiliates to remove
prepetition causes of action to the earlier of:
(i) the effective date of a confirmed Chapter 11 plan; or
(ii) July 21, 2008.
The Debtors' request to extend the Removal Period was originally
set to be heard on April 23, 2008. The Court has yet to set
another hearing to consider the request.
As of April 1, 2008, PRC LLC is a party to some non-bankruptcy
causes of actions filed in various venues throughout the United
States, each of which was filed before the date of its
bankruptcy.
About PRC LLC
Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC
-- http://www.prcnet.com/-- is a leading provider of customer
management solutions. PRC markets its services to brand-
focused, Fortune 500 U.S. corporations and delivers these
services through a global network of call centers in the U.S.,
Philippines, India, and the Dominican Republic.
PRC is the sole member of each of PRC B2B, LLC, and Precision
Response of Pennsylvania, LLC, and the sole shareholder of
Access Direct Telemarketing, Inc., each of which is a debtor and
debtor-in-possession in PRC's joint Chapter 11 cases.
Panther/DCP Intermediate Holdings, LLC, is the sole member of
PRC.
PRC, together with its operating subsidiaries PRC B2B, Access
Direct, and PRC PA, is a leading provider of complex,
consultative, outsourced services in the Customer Care and Sales
& Marketing segments of the business process outsourcing
industry. Since 1982, the company has acquired and grown
customer relationships for some of the world's largest and most
brand-focused corporations in the financial services, media,
telecommunications, transportation, and retail industries.
The company and four of its affiliates filed for Chapter 11
protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-
10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP,
represents the Debtors in their restructuring efforts. The
Debtors chose Stephen Dube, at CXO LLC, as their restructuring
and turnaround advisor. Additionally, Evercore Group LLC
provides investment and financial counsel to the Debtors.
The Debtors' consolidated financial condition as of Dec. 31,
2007 showed total assets of US$354,000,000 and total debts of
US$261,000,000.
The Debtors submitted to the Court a Chapter 11 Plan of
Reorganization on Feb. 12, 2008. (PRC LLC Bankruptcy News,
Issue No. 10; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
=============
G R E N A D A
=============
* GRENADA: S&P Publishes Report Summary
---------------------------------------
Standard & Poor's Ratings Services has released a report on the
island nation of Grenada.
Strengths
-- Robust economic growth expected over the next several
years, based upon significant reconstruction activity and
the gradual recovery of major economic sectors; and
-- Grenada's membership in the Eastern Caribbean Currency
Union.
Weaknesses
-- The large size of the government debt; and
-- Lack of fiscal discipline.
Rationale
Grenada is recovering from Hurricane Ivan's 2004 devastation.
Reform momentum to restore fiscal sustainability has been uneven
since the 2005 debt restructuring. Specifically, fiscal
performance has been disappointing in the past two years. The
fiscal deficit stood at 7% of GDP in 2006 compared to the
budgeted target of 3.1% of GDP, followed by an even wider
deficit of 8.4% of GDP in 2007 compared to the budgeted target
of 2.7% of GDP. Fiscal setbacks reflect the significant
underperformance of grants, only 18% of the budgeted amount was
received in 2007, which was not compensated for by lower
spending.
The delayed reform of tax concessions, twice-postponed
introduction of a VAT, and hard-to-contain spending pressures --
including recent retroactive salary increases and preelection
spending -- have impaired Grenada's fiscal performance and, if
not addressed in a timely manner, will negatively impact the
2008 fiscal outcome. S&P conservatively projects a central
government fiscal deficit of 5.9% of GDP for
2008 or 3.5% of GDP on general government level, including
social security surpluses. As a result of this worse-than-
expected fiscal performance, progress in reducing the large
government debt has been minimal. Government debt -- the
fourth-largest among speculative-grade-rated countries-- has
hovered at around 120% of GDP during the past four years, as
fiscal slippages undermined the positive impact of Grenada's
growing economy on debt ratios during this period.
The rebound of the real economy is the bright side of Grenada's
credit story. While uneven, real GDP growth has averaged 4.6%
in the past three years, since Hurricane Ivan hit the island in
2004. Real GDP growth of 3.6% in 2007 reflects continuing gains
in tourism, a 9% increase in stay overs and a 3% increase in
total arrivals, transportation, and manufacturing. S&P expects
economic growth to remain at 3% of GDP, reflecting ongoing large
tourism developments, continuing reconstruction activity, and a
further pickup in agriculture.
Political dynamics center on the upcoming general elections due
on November 2008. A close race is expected between the ruling
New National Party, which has just a single-seat majority in
Parliament, and the strong opposition. The preelection period
will likely have a negative impact on fiscal performance, but
may benefit investment and economic growth. The party will try
to increase infrastructure spending and move ahead with other
major investments.
The ratings remain constrained by the persistently difficult
fiscal situation, which hinders the reduction of the large
government debt. Without resolute fiscal consolidation, the
positive momentum brought about by the 2005 debt restructuring
will be lost and much-needed domestic and foreign investment
undermined. In fact, the disbursements under the International
Monetary Fund's Poverty Reduction and Growth Facility have been
on hold since 2006 due to the lack of fiscal discipline.
Given the crucial importance of keeping debt dynamics under
control to avoid new arrears and future debt-default pressures,
S&P expects the authorities to adhere to fiscally responsible
policies. This would support stronger business and investor
confidence, which is so crucial for bolstering the country's
economic growth.
Outlook
The stable outlook balances the risk of continuing fiscal
underperformance with a relatively favorable amortization
profile on Grenada's debt. Any upward movement in the ratings
hinges on the government's success in improving its fiscal
position and achieving economic growth that will put Grenada's
high debt on a declining trend. Conversely, downward rating
pressure would stem from the government's inability to keep
deficits under control, which would make resolute debt reduction
difficult and, hence, increase the risk of new debt
renegotiations.
=============
J A M A I C A
=============
CABLE & WIRELESS: Jamaican Unit Launches Four Stores
----------------------------------------------------
Cable & Wireless Plc's Jamaican unit Chief Commercial Officer
Mariano Doble told Radio Jamaica that the firm has launched four
new "Lifestyle Stores."
Cable & Wireless is offering a one stop shop service with the
launching of the stores, Radio Jamaica says, citing Mr. Doble.
Radio Jamaica relates that Cable and Wireless started a major
make-over of its retail outlets as part of a multi-million U.S.
dollar program to recapture the mobile phone market from rivals.
Mr. Doble told Radio Jamaica that the launching of the stores
and the one stop shop service is Cable & Wireless' "first step
in recapturing the Jamaican market but more importantly the
strategy is behind the experience that we deliver in our
stores."
Mr. Doble commented to Radio Jamaica, "What we are trying to put
out there is a full service provider communications package
where a customer can come to one place and capture all their
communication needs." Cable & Wireless' "aggressive strategy
will see the roll-out of additional retail outlets and the
renovation" of almost 100 dealer locations in Jamaica, Mr.
Doble added.
About 11 stores will be launched in two to three weeks with
another group of lifestyle outlets coming up in 2009, Mr. Doble
told Radio Jamaica.
Headquartered in London, Cable & Wireless Plc
-- http://www.cw.com/new/-- operates through two standalone
business units -- International and Europe, Asia & US. The
International business unit operates integrated
telecommunications companies in 33 countries offering mobile,
broadband, domestic and international fixed line services to
residential and business customers, with principal operations in
the Caribbean, Panama, Macau, Monaco and the Channel Islands.
The Europe, Asia & U.S. business unit provides enterprise and
carrier solutions to the largest users of telecoms services
across the U.K., U.S., continental Europe and Asia -- and
wholesale broadband services in the U.K.
* * *
As of Feb. 12, 2008, Cable & Wireless Plc carried a Ba3 long-
term corporate family rating, a B1 senior unsecured debt rating
and a Ba3 probability of default rating from Moody's Investors
Service, which said the outlook is stable.
The company also carries a BB- long-term local and foreign
issuer credit ratings from Standard & Poor's Ratings Services,
which said the outlook is stable. S&P rates its short-term
local and foreign issuer credit at B.
CASH PLUS: Court Denies Carlos Hill's Request for Bail
------------------------------------------------------
Radio Jamaica reports that the Half way Tree Criminal Court
denied the request for bail by the defense attorneys for Cash
Plus Limited's President Carlos Hill.
Mr. Hill's brother Bertram Hill reportedly was also denied bail.
As reported in the Troubled Company Reporter-Latin America on
April 17, 2008, Mr. Hill was charged with fraud after police
officers raided his house in response to complaints from
investors who accused Cash Plus of fraud. Specifically,
investors complained that cheques received from the firm
bounced. Mr. Hill's brother Bertram and Cash Plus' Chief
Financial Officer Peter Wilson also face fraud charges. The
Hill brothers and Mr. Wilson were charged with five counts of
fraudulent conversion and one count of conspiracy.
According to Radio Jamaica, prosecutors objected to bail after
declaring that Cash Plus doesn't have money in Jamaica to repay
investors. They asked the court to keep the Hill brothers and
Mr. Wilson in custody.
Radio Jamaica notes that Mr. Wilson was offered bail for
J$5 million.
The report says that prosecutors said during the court hearing
that Mr. Hill and his organization deceived investors when they
published information suggesting they had bought the Hilton
Kingston Hotel and Drax Hall Estate in St. Ann for
US$142 million. The prosecutors claimed that Cash Plus doesn't
own any of the properties.
The false information was published to attract investors to Cash
Plus, Radio Jamaica says, citing the prosecutors.
The court hearing will resume on May 14, 2008, Radio Jamaica
adds.
Cash Plus Limited is an investment club in Jamaica. It
collapsed in 2007 after the Financial Services Commission moved
to regulate its operations. The company is a financial arm of
the Cash Plus Group of Companies, a business conglomerate
established in 2002 by mortgage banker Carlos Hill. The company
offers its participants the opportunity to participate in the
group's ventures which include mergers and numerous
acquisitions.
In April this year, the Supreme Court of Jamaica placed Cash
Plus into receivership. Cash Plus admitted that it wouldn't be
able to pay its lenders until April 14. The firm has 40,000
lenders with loans totaling J$4 billion. Cash Plus was unable
to repay its investors. The Financial Services Commission said
it was informed by the attorney acting on behalf of Cash Plus
that the investment club lacked the funds to start the repayment
of the principal and interest owing to its investors.
PricewaterhouseCoopers' accountant Kevin Bandoian was appointed
as joint receiver-manager for Cash Plus.
* JAMAICA: S&P Publishes Report Summary
---------------------------------------
Standard & Poor's Ratings Services has released a report on the
island nation of Jamaica.
Strengths
-- The government's commitment to fiscal discipline, debt
reduction, and economic growth reinvigoration;
-- Developed local capital markets (compared to its rating
peers); and
-- Political stability.
Weaknesses
-- Difficulty in reducing a high general government debt
burden;
-- Limited fiscal flexibility; and
-- Vulnerability stemming from the island's geographical
location, size, and openness.
Rationale
Achieving higher rates of economic growth is one of the main
goals of the Jamaica Labour Party, which came to power in
September 2007. Averaging 1.6% during the past five years,
Jamaica's real GDP growth continues to be constrained by a
crowding out of the private sector due to the government's high
borrowing needs, labor-market rigidities affecting productivity,
high security costs, and external shocks. Hurricane Dean,
followed by prolonged rainy period, dampened GDP growth to an
estimated 1.1% in 2007, down from 2.6% in 2006. The negative
impact on agriculture and resulting food shortages drove average
inflation to 17% in 2007 from 5.7% in 2006. The GDP growth
outlook for 2008 is 2% and incorporates the impact of the
slowdown in the United States, Jamaica's main trading and
tourism partner. However, this is counterbalanced by ongoing
gains in construction, recovery of the agriculture sector, and a
still-strong tourism sector as evidenced by robust first-quarter
2008 results and advanced bookings for newly opened hotels. On
the economic side, Jamaica Labour Party's focus is on restoring
growth in the agriculture sector, increasing capacity in the
manufacturing and export sectors, and aggressive investment
promotion.
Fiscal discipline remains the cornerstone of the government's
program. The general government deficit stood at 5.6% of GDP in
fiscal 2007, year ended March 31, 2008, including the official
fiscal deficit of 4.7% of GDP, 1.3% of GDP of off-budget
expenditure, and 0.4% of social security surpluses. The
official fiscal deficit is targeted at 4.5% of GDP for 2008.
S&P more conservatively expects the fiscal 2008 deficit to stand
at 4.8% of GDP at the central government level and 4.5% of GDP
at the general government level. The new 2008-2009 budget
introduces revenue-enhancing measures, aims to boost tax
compliance, and addresses wage and other expenditure containment
-- although the third memorandum of understanding with the trade
unions has yet to be signed. The government's medium-term goal
is to reach a balanced budget by fiscal 2010 (March 31, 2011)
and consequently bring down the level of government debt, which
currently stands at 127% of GDP, to below 100% of GDP in the
same period. The government is simultaneously trying to improve
the debt's cost structure (interest consumes 42% of central
government revenue, and equaled 13% of GDP in 2007) by working
with multilateral institutions. In fact, loan agreements with
multilateral creditors totaling US$117 million have been signed
since September 2007, while another US$219 million in loans is
being negotiated for the 2008-2009 fiscal year. A US$30 million
policy-based loan with the Inter-American Development Bank was
signed in April 2008, and is a part of a three-year US$90
million policy-based loan. This funding will come in handy in
meeting Jamaica's high borrowing requirements (fiscal deficit
and amortization) in fiscal 2008, which should amount to 10.8%
of GDP.
The external situation remains challenging, as a growing oil
bill and uncertainties surrounding the growth in tourism inflows
are only party counterbalanced by thus-far strong remittance
inflows. The external current account deficit should hover
around 13%-15% of GDP in the next two years and external
liquidity should remain tight, with the external financing gap
amounting to 123% of usable reserves and current account
receipts in 2008. While the situation on the Jamaican foreign
exchange market has currently stabilized, confidence needs to be
supported by disciplined fiscal policies and a timely monetary
response, two crucial factors that have thus far performed well
in Jamaica. Overall, continuation of the austere fiscal stance,
coupled with structural improvements to increase the
transparency and efficiency of governance, is the only viable
strategy for bolstering investor confidence amid gloomier
financial and economic times. This is particularly true given
Jamaica's high debt burden, large amortization needs, and
inherent structural vulnerability to external shocks.
Outlook
The stable outlook balances the government's ongoing commitment
to disciplined fiscal and monetary stances with the risk
stemming from the challenging external environment. Despite the
difficulties facing Jamaican policymakers in the short term, S&P
expects the new Jamaica Labour Party government to benefit from
the strong support of the domestic private sector, multilateral
agencies, and external investors and to act decisively on the
fiscal consolidation front to maintain hard-won macroeconomic
stability.
===========
M E X I C O
===========
ALERIS INT'L: S&P Puts Ratings on Watch Neg. on Weak End Markets
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings for Aleris
International Inc., including the 'B+' corporate credit rating,
on CreditWatch with negative implications.
"The CreditWatch listing reflects our assessment that the weak
end-market demand in the company's North American rolled and
extruded products segment is likely to continue over the next
several quarters," said Standard & Poor's credit analyst Maurice
Austin, "primarily because of weaker demand for building and
construction, distribution, and transportation products. This,
combined with increased debt balances due to the company's
aggressive growth strategy over the past few years, has resulted
in credit measures that we would consider to be weak for the
rating."
In resolving the CreditWatch listing, S&P will review the
company's near-term operating and financial strategy in light of
the difficult operating conditions and evaluate its cash flow
generation capability.
About Aleris International
Headquartered in Beachwood, Ohio, Aleris International Inc.
(NYSE:ARS) -- http://www.aleris.com/-- manufactures rolled
aluminum products and offers aluminum recycling and the
production of specification alloys. The company also
manufactures value-added zinc products that include zinc oxide,
zinc dust and zinc metal.
The company's international segment provides aluminum metal to
customers through both tolling arrangements and product sales,
and the types of scrap that it recycles are similar to those
processed by Aleris’ U.S. recycling facilities. In 2004 its
five plants have a rated annual capacity of 1.08 billion pounds.
The operations include two aluminum recycling and foundry alloy
plants in Germany as well as aluminum recycling facilities in
Brazil, Mexico and Wales. The segment’s growth is largely a
result of its development and use of efficient scrap preparation
and recycling technologies that allow high recovery of metal and
delivery of a top-quality product. In Asia, the company has
subsidiaries in Hong Kong and China.
CLEAR CHANNEL: Extends Consent Payment Deadline to April 25
-----------------------------------------------------------
Clear Channel Communications Inc. extended the date of schedule
of expiration on the tender offers and the consent payment
deadline for the notes to 8:00 a.m. New York City time, on
April 25, 2008, in connection with Clear Channel's tender offer
for its outstanding 7.65% senior notes due 2010 and Clear
Channel's subsidiary AMFM Operating Inc.'s tender offer for its
outstanding 8% senior notes due 2008,. The offer expiration
date and the consent payment deadline are subject to extension
by Clear Channel, with respect to the Clear Channel notes, and
AMFM, with respect to the AMFM notes, in their sole discretion.
The completion of the tender offers and consent solicitations
for the notes is conditioned upon the satisfaction or waiver of
all of the conditions precedent to the agreement and plan of
merger by and among Clear Channel, CC Media Holdings Inc., B
Triple Crown Finco LLC, T Triple Crown Finco LLC and BT Triple
Crown merger Co. Inc., dated Nov. 16, 2006, as amended.
The closing of the merger has not occurred. On March 26, 2008,
Clear Channel, joined by CC Media Holdings Inc., filed a lawsuit
in the Texas State Court in Bexar County, Texas, against
Citigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, The
Royal Bank of Scotland, and Wachovia, the banks who had
committed to provide the debt financing for the merger. Clear
Channel intends to complete the tender offers and consent
solicitations for the CCU notes, and AMFM intends to complete
the tender offers and consent solicitations for the AMFM notes,
upon consummation of the merger.
Clear Channel, on Jan. 2, 2008, received the requisite consents
to adopt the proposed amendments to the CCU notes and the
indenture governing the CCU notes applicable to the CCU notes,
and that AMFM had received the requisite consents to adopt the
proposed amendments to the AMFM notes and the indenture
governing the AMFM notes. 87% of the AMFM notes have been
validly tendered and not withdrawn and approximately 98% of the
CCU notes have been validly tendered and not withdrawn.
The Clear Channel tender offer and consent solicitation is being
made pursuant to the terms and conditions set in the Clear
Channel offer to purchase and consent solicitation statement for
the CCU notes dated Dec. 17, 2007, and the related Letter of
Transmittal and Consent. The AMFM tender offer and consent
solicitation is being made pursuant to the terms and conditions
set in the AMFM offer to purchase and consent solicitation
statement for the AMFM notes dated Dec. 17, 2007, and the
related Letter of Transmittal and Consent.
Clear Channel has retained Citi to act as the lead dealer
manager for the tender offers and lead solicitation agent for
the consent solicitations and Deutsche Bank Securities Inc. and
Morgan Stanley & Co. Incorporated to act as co-dealer managers
for the tender offers and co-solicitation agents for the consent
solicitations. Global Bondholder Services Corporation is the
Information Agent for the tender offers and the consent
solicitations.
About Clear Channel
Based in San Antonio, Texas, Clear Channel Communications Inc.
(NYSE:CCU) -- http://www.clearchannel.com/-- is a media
and entertainment company specializing in "gone from home"
entertainment and information services for local communities and
premiere opportunities for advertisers. The company's
businesses include radio, television and outdoor displays.
Outside U.S., the company operates in 11 countries -- Norway,
Denmark, the United Kingdom, Singapore, China, the Czech
Republic, Switzerland, the Netherlands, Australia, Mexico and
New Zealand. As of Dec. 31, 2007, it owned 717 core radio
stations, 288 non-core radio stations which are being marketed
for sale and a leading national radio network operating in the
United States.
* * *
As reported on March 28, 2008, Standard & Poor's Ratings
Services said its ratings on Clear Channel Communications Inc.,
including the 'B+' corporate credit rating, remain on
CreditWatch with negative implications.
Fitch Ratings stated that in line with previous guidance, Clear
Channel Communications' 'BB-' Issuer Default Rating and Senior
Unsecured Ratings would remain in place if the going-private
transaction is not completed.
Moody's stated that assuming the transaction is completed as
currently contemplated, Clear Channel will likely be assigned a
Corporate Family Rating of B2 and the rating on the existing
senior notes is likely to be notched down to Caa1 based on their
expected subordination to the new senior secured debt facilities
and the new senior notes.
MAXCOM TELECOM: Posts 1Q 2008 Net Exchange Rate Loss of MXN14MM
---------------------------------------------------------------
Maxcom Telecomunicaciones, S.A.B. de C.V. reported its unaudited
financial and operating results for the quarter ended March 31,
2008.
Results First Quarter 2008
Financial Highlights:
-- First quarter 2008 revenues reached MXN624 million and
increased by MXN94 million or 18% in comparison to the
first quarter of 2007.
-- EBITDA increased by 32% to reach MXN192 million in
comparison to the first quarter of 2007.
-- EBITDA margin increased by 327 basis points to 31% this
reporting quarter, when compared to the same period last
year.
Operating Highlights:
-- Total company Revenue Generating Units (RGUs), increased
to 391,477 or 31% in the first quarter of 2008 compared to
the same period last year. The company recorded RGU net
adds of 30,535 in the quarter.
-- Total company customer base increased by 15% to reach
221,181 customers.
-- When compared to the same period last year:
* Voice RGU's (formerly voice lines in service) increased
23% to reach 347,539. Voice RGU's include residential
voice, commercial voice, public telephony lines and
wholesale lines.
* Data residential RGU's increased by 86% to 17,531, of
which 9,886 are DSL subscribers.
-- The company installed 2,820 public telephones during the
quarter bringing the number of coin operated phones to
27,730.
-- The company added 10,511 mobile RGU's to its residential
and commercial business divisions during the first
quarter, which brought to 14,846 the mobile RGU base.
-- Pay TV number of RGU's reached 8,183. This product growth
continues to reflect consumers' demand for high quality
video services.
Revenue Generating Units
Revenue Generating Unit is separately a telephone line,
broadband internet subscriber, mobile subscriber or pay TV
subscriber. A home or business may contain one or more RGU's.
For example, a subscriber to pay TV services, broadband
internet, mobile telephony service and residential telephony
service would constitute four RGU's.
The term RGU represents an individual service subscriber who
generates recurrent revenue for the company. During the first
quarter of 2008 Maxcom added a total of 30,535 revenue
generating units. As of March 31, 2008, Maxcom reported a total
of 391,477 RGU's, an increase of 31% in comparison to the same
period last year.
Revenues
Maxcom total revenues for the first quarter of 2008 were MXN624
million, an increase of 18% over revenues of MXN 531 million,
recorded in the first quarter of 2007. The following table is a
breakdown of the sources of revenue for the company.
Residential:
Residential revenues represented 42% of the total during the
first quarter, compared with 40% in the same quarter of 2007.
Revenues in the residential business segment reached MXN263
million, an increase of 23% in comparison to MXN214 million in
the first quarter of 2007.
The 23% increase in revenues is directly related to the 28%
increase in RGU's and was mainly driven by:
1. An increase in the number of mobile RGU's to reach 13,495,
and an increase in the number of pay TV RGU's to reach
8,183 as customers see a stronger value proposition than
what is offered by the competition. The company offers
competitive prices through its bundled products in triple
and quadruple play. Pay TV and mobile services were
introduced at the end of 2007 and customers have quickly
adopted the new high quality service and technology;
2. An increase in the number of data RGU's which increased by
86% to reach 17,531. This number includes 9,886 DSL
subscribers as more customers are seeing the benefits of a
broadband connection's higher speeds and the price
advantage of buying with a bundle offer; and,
3. A 14% increase in voice RGU's (formerly voice lines in
service) in the residential business segment to reach
227,139. The company continues to build-out clusters in
cities that are currently served which have allowed this
growth rate.
However these revenue increases were partially affected by the
Easter and Holy Week vacation periods which had an impact by
lowering overall traffic through the network, in addition to
having a fewer number of working days in the quarter in
comparison to the first quarter of 2007.
In addition, residential RGU per customer increased from 1.12 in
the first quarter of 2007 to 1.24 in the first quarter of this
year demonstrating the company's ability to successfully up sell
more services to the customer base.
Commercial:
Commercial revenues represented 30% of the total during the
first quarter of 2008, compared with 22% in the same quarter of
2007. Revenues in the Commercial Business reached
MXN190 million, an increase of 64% in comparison to MXN116
million in the same period of 2007.
The 64% or MXN74 million increase in revenues during the first
quarter of 2008 is mainly explained by an increase in the
average revenue per customer that the company recorded, a 24%
increase in the number of RGU's and an increase in the sale of
fiber optic backbone capacity in comparison to the first quarter
of 2007. The increase in RGU's was mainly driven by:
1. A higher number of voice RGU's (formerly voice lines in
service) which have increased by 22% to 70,500, primarily
due to several small and medium business accounts that
acquired tailored telecommunications solutions in the
first quarter of the year;
2. A higher number of data customers in the quarter to reach
3,060. The company recorded a total number of 949 DSL
subscribers, among all other services offered. The 11%
increase was negatively affected by the highly competitive
commercial space in which the company participates;
3. The introduction of mobile services to the company's
commercial customers to reach 1,351; and,
4. The higher number of RGU's from other value added-services
that the company provides. Some of the services provided
include: firewall protection, IT outsourcing services,
hosting and others.
Nonetheless, the Easter and Holy Week vacation periods also
impacted overall traffic through the network.
In addition, RGU per commercial customer increased from 10.98 in
the first quarter of 2007 to 12.70 to the first quarter of 2008
demonstrating the ability of the commercial sales force in
successfully up selling services to the customer base.
Public Telephony:
Public Telephony represented 15% of total revenues during the
first quarter of 2008. Revenues in this business totaled MXN94
million, an increase of 13% when compared to MXN84 million in
2007. The increase in revenues is attributed to the 38% growth
in the base of public telephones installed. However and
partially offsetting this revenue growth, as the number of
public telephones continues to grow, the average revenue per
public telephone tends to decline.
Wholesale:
In 2008, Wholesale revenues decreased by 32% to reach MXN72
million, in comparison to the MXN106 million registered during
the same quarter in the previous year. The decrease in the
Wholesale Business was mainly driven by an average decline of
18% in long distance on net equal access termination rates, due
to a more competitive market environment, in particular with
national calling party pays (CPPn).
However and partially offsetting this average tariff decrease,
the company interconnected new clients and restructured three
switches to increase termination capacity. Also, the company
was able to complete the interconnection with cellular providers
in 72 locations across Mexico.
Other Revenue:
Other revenue represented 1% of total revenues and reached MXN5
million, in comparison to MXN11 million or 2% of total revenues
in the previous quarter. Other revenues are primarily comprised
of lease of microwave frequencies and CPE sales.
Network Operation Cost
Network Operation Costs in the first quarter of 2008 increased
10% to reach MXN247 million in comparison to MXN225 million in
the previous year or MXN22 million, which was mainly due to a
23% increase in installation expenses, an 11% increase in
network operating services and a 1% increase in technical
expenses, which are detailed below.
The increases in installation expenses were mainly due to a 27%
increase in RGU's installed in the residential and commercial
divisions.
The increases in network operating services were mainly in:
1. Public Telephony costs directly related to an increase of
38% in the number of public phones;
2. The amounts paid to carriers for calling party pays;
3. The amounts paid for pay TV content; and,
4. The lease of circuits and ports, among others.
However, these increases were offset by lower costs in long
distance interconnection, directly related to lower wholesale
average rates as previously explained.
The increases in technical expenses were due to higher costs
associated with power and electricity services, partially offset
by maintenance expenses and a better price in the lease of
poles.
SG&A
SG&A expenses were MXN 185 million in the first quarter of 2008,
16% above MXN160 million in the same period of 2007. The MXN25
million increase was mainly driven by higher salaries, wages and
benefits as a result of an increasing headcount, specifically in
the residential and commercial sale forces. These increases
were partially offset by lower sales commissions, bad debt
expenses and external advisory expenses, among others.
EBITDA and Adjusted EBITDA
EBITDA for the first quarter of 2008 was MXN192 million, a 32%
increase from MXN146 million in the same period of last year.
EBITDA Margin was 31% during the period, 327 basis points higher
than 27% in the first quarter of 2007.
Adjusted EBITDA for the first quarter of 2008 was MXN194
million, 31% higher than MXN148 million in the same period of
last year. Adjusted EBITDA Margin was 31% during the period,
310 basis points higher than 28% in the first quarter of 2007.
Operating Income
Operating Income for the first quarter of 2008 was MXN70
million, 26% higher than MXN56 million in the previous Year.
Operating margin for the first quarter was 11%.
Comprehensive Financial Result
During the quarter, the company registered a Comprehensive
Financial Result of MXN63 million, a MXN2 million decrease when
compared to MXN65 million in the same period of 2007.
The lower Comprehensive Financial Result was due to a decrease
of 9% or MXN5 million on the amount of net interest paid which
decreased from MXN54 million in the first quarter of 2007 to
MXN49 million in the first quarter of 2008.
However and partially offsetting this decrease, the company
recorded:
1. As a result of the change in the accounting standards in
Mexico, inflationary accounting (NIF B-10) is not required
in a low-inflation environment. As of the first quarter
of 2008 the company prepared its financial statements in
terms of current Mexican pesos. Therefore, the
comprehensive financial result will no longer be affected
by the results in monetary position. In this case the
company recorded a monetary position gain of MXN11 million
in the first quarter of 2007 which does not compare to the
first quarter of 2008; and,
2. A net exchange rate loss of MXN14 million in the first
quarter of 2008, compared to a net exchange rate loss of
MXN22 million recognized in the same period of last year
as a result of the Peso revaluation. At March 31, 2008
the exchange rate between the Mexican Peso and the United
States Dollar was MXN10.6962, compared to MXN11.0507 at
the end of March 31, 2007.
Taxes
The company cancelled MXN6 million in deferred income tax
provisions during the first quarter 2008, compared to
registering asset taxes of MXN9 million in the first quarter of
2007. During the first quarter of 2008 and according to the
latest tax reform in Mexico, asset tax was replaced with the
single rate corporate tax (Impuesto Empresarial a Tasa Unica).
The company is not subject to pay single rate corporate tax for
this reporting quarter.
Net Income
The company posted net income during the first quarter of 2008
of MXN8 million, which compares favorably to a net loss of MXN18
million reported in the first quarter of 2007.
Liquidity and Capital Sources
Operating activities generated resources of MXN91 million, which
resulted mainly from consolidated net income, non-cash items
(such as depreciation and amortization), and resources generated
by working capital.
Capital Expenditures
Capital Expenditures during the period totaled MXN362 million,
higher than the MXN230 million recorded in the first quarter of
2007. Capital Expenditures were primarily used for telephone
network systems, the buildout of new clusters, and equipment for
Maxcom's network expansion.
Indebtedness
At March 31, 2008, the company reported its Indebtedness level
at MXN2,233 million. The company's leverage ratio measured by
Debt/EBITDA, presented a profile reduction, from the level of
3.9 times in 2007 and reaching 3.1 times in 2008. In addition,
net Debt/EBITDA presented an even more important profile
reduction as a result of the recent initial public offering
which yielded cash resources for the company's expansion.
Adoption of New Accounting Standards
B-10: As of Jan. 1, 2008, the company has adopted the changes to
"Inflationary Effects", B-10 in accordance with the Mexican
Financial Standards (NIF) which establishes the rules for the
recognition of inflationary effects in the country; furthermore,
it incorporates changes such as, reclassifying accumulated
results for non-monetary assets and has the possibility of
choosing between the national consumer price index (INPC) and
the value of UDIs. It has been determined that the country does
not face an inflationary environment, and therefore the company
as of Jan. 1, 2008, will suspend the recognition of these
inflationary effects in its financial information. Consequently,
the financial information corresponding to the period ended
March 31, 2007, is expressed in Millions of Mexican Pesos of
purchasing power at Dec. 31, 2007 (date on which bulletin B-10
was still in effect) and the financial information for
March 31, 2008, is in current Mexican Pesos.
About Maxcom
Headquartered in Mexico City, Mexico, Maxcom Telecomunicaciones,
SA de CV, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory. Maxcom Telecomunicaciones
launched commercial operations in May 1999 and is currently
offering Local, Long Distance and Internet & Data services in
greater metropolitan Mexico City, Puebla and Queretaro.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2008, Moody's Investors Service confirmed Maxcom
Telecomunicaciones, S.A. de C.V.'s corporate family rating at
B3. At the same time, Moody's confirmed its B3 rating on the
company's US$200 million in Senior Unsecured notes due in 2014.
Moody's said the outlook for all ratings is now positive.
Moody's rating action concludes the review for upgrade initiated
in November 2007.
QUEBECOR WORLD: E&Y Issues Monitor's Report to Quebec Court
-----------------------------------------------------------
Ernst & Young, Inc., the Court-appointed monitor of Quebecor
World Inc. and certain of its affiliates' bankruptcy proceedings
under the Companies' Creditors Arrangement Act, presented its
report to the Quebec Superior Court of Justice with respect to
the activities of the companies and certain events occurring
since Feb. 15, 2008.
CCAA Proceedings
On Feb. 19, 2008, the Quebec Superior Court of Justice
ordered:
(a) the extension of the stay termination date to May 12,
2008;
(b) Ernst and Young to prepare a report on inter-company
transactions:
(c) that Quebecor World Inc. will be relieved of any
obligation to call and hold an annual general meeting of
shareholders on or before June 30, 2008, and Quebecor
World is directed to call a meeting within three months
following the lifting of the stay termination date; and
(d) confirmation of various changes to the Initial Order as
amended on Jan. 31, 2008.
Stabilization of Operations
(a) Overview
With significant progress to date, the Applicants are under
discussions with suppliers to re-establish supply arrangements
and credit terms during the stay period.
The Applicants have hired additional accounting staff to adapt
to a large volume of new information, increasing levels of time
sensitive payment requests and high volumes of manual
transactions. The Applicants are also implementing procedures
to ensure that renegotiated vendor credit limits are respected.
The Applicants are working on a reconciliation of their
prepetition trade liabilities. The analysis is ongoing as the
payment of prepetition payments permitted by the U.S.
Proceedings, the receipt and investigation of certain 20 day
administrative and reclamation claims, and the set-off rights
claimed by certain customers must be taken into consideration.
(b) Banking
In accordance with the terms of the Initial Order, a
C$20,000,000 negotiated indemnification amount was deposited to
the Canadian Bank of Commerce on February 21, 2008.
(c) Customers
The Applicants continue to negotiate and extend contracts in the
normal course. Contract extensions have been reached with
several customers since filing, with several more significant
contracts subject to ongoing negotiations. Management expects
that receipt of the Final DIP Order in the Chapter 11
proceedings will enable the Applicants to finalize negotiations
with several significant customers.
(d) Leases
The Applicants have entered into new leases for additional
office or warehousing space and as well as have renewed leases
for manufacturing premises. The new leases have been small in
value and for relatively short periods of time (one to six
months), and the lease renewal for manufacturing premises was
done substantially on the same conditions as previously existed,
and is for a period of one year only.
Cash Flow Results for the Six Weeks Ended March 23, 2008
As of March 23, 3008, the consolidated North American operations
of the Applicants produced negative cash flow of US$77,000,000,
approximately US$116,000,000 better than projected for the same
period in the cash flow forecast prepared by the Applicants.
According to management, the favorable variance is attributable
to a number of factors not reflected on the Cash Flow Forecast
including scrap paper sales, limited post-filing credit received
form suppliers, temporary deferral of several capital projects,
and a conservative forecast of certain payroll cost.
A copy of the actual cash flow results and the variances from
the cash flow forecast for the six weeks ended March 23, 2008 is
available for free at:
http://bankrupt.com/misc/Quebecor_CashFlowResultMarch2008.pdf
Cash Flow Forecast for the 13 Weeks Ending June 22, 2008
To assist their short term financial performance and ongoing
financing requirements during their restructuring proceedings,
the Applicants have prepared a revised cash flow forecast for
the 13 weeks ending June, 22, 2008. Management is expecting to
incur an US$87,000,000 negative cash flow during the period.
Management anticipates, however, that the Applicants will be
marginally cash positive starting May as the Applicants move
through their normal seasonal business cycle.
The Revised Cash Flow Forecast does not require borrowings on
the US$400,000,000 Revolving Credit Loan Facility, outside of
the Letter of Credit Sub-Facility.
A full-text copy of the Revised Cash Flow Forecast is available
for free at: http://researcharchives.com/t/s?2a6b
Creditors Committee
A weekly call has been set-up with the professional advisors of
the AD Hoc Bondholder group, the Bank Syndicate and the Official
Committee of Unsecured Creditors; the Applicants; and E&Y to
identify and discuss emerging issues.
Ad Hoc Bondholder Group
The Ad Hoc Bondholder Group has created a subcommittee known as
the Ad Hoc Bondholder Subcommittee and has retained Milbank,
Tweed, Hadley, McCloy LLP as U.S. Counsel, to review and analyze
issues regarding the rank and priorities of various notes issued
by the Applicants.
Official Committee of Unsecured Creditors
The Committee replaced Osler, Hoskin and Harcourt LLP with
Bennett Jones LLP as Canadian legal counsel upon identification
of a certain conflict by Osler Hoskin before its retention.
Governance
The Board of Directors of Quebecor World Inc. disclosed the
members of its Restructuring Committee:
(a) Mr. Andre Caile,
(b) Mrs. Michele Desjardins,
(c) Mr. Jean La Couture,
(d) Mr. Jean Neveu, and
(e) Mr. Jacques Mallette
On March 24, 2008, the Restructuring Committee selected a
candidate for the Chief Restructuring Officer position. The
terms and conditions of the CRO engagement are under discussion
and documentation.
Status of Latin American Operations
As of April 1, 2008, the Applicants transferred US$6,000,000 to
Mexico, Peru, Argentina, and the British Virgin Islands:
Mexico US$2,500,000
Peru 2,500,000
Argentina 700,000
British Virgin Islands 300,000
The Applicants are working on the transfer of the remaining
US$4,000,000 to Colombia. According to the Applicants, the
process
to transfer funds to Colombia is complicated because Colombian
laws prohibit funds transfers by way of an inter-company loan
from non-domestic sources and the Financing Facilities prohibit
them from investing in the equity of foreign subsidiaries. The
Applicants are reviewing alternative mechanisms to effect the
cash transfer.
Status of European Operations
The Applicants are assessing their alternatives with respect to
the European operations. As of April, 1, 2008, the Applicants
have transferred EUR9,000,000 to finance its European
operations.
Operations in the United Kingdom
After being unable to renew a contract with the Associated
Newspaper Limited in 2005, Quebecor World PLC was unable to find
a replacement for this major contract. Given the platform used
by QW UK, it was difficult to realign costs to match reduced
production volumes, resulting in operating losses and layoffs.
These difficulties were compounded by the intense competition in
the market driven by considerable overcapacity.
UK Administrators Ian Best and David Duggins of Ernst & Young UK
retained GVA Grimley to market and sell the QW UK fixed assets.
A team of 26 employees were retained to decommission the
equipment and make the assets ready for sale. The
Administrators estimate that the overall process, including the
disassembly and removal of equipment, will not be completed
until the end of 2008.
The Administrators are marketing two properties where the
operations were conducted. Holding costs, including insurance,
site clean-up and security costs, could be significant until the
properties are sold.
A meeting of the creditors of Quebecor World UK was held on
March 28, 2008, for the creditors to vote upon the proposal made
by the Administrators including to:
(a) continue the realization of the assets;
(b) perform an investigation of any claims QW UK may have
against third parties;
(c) continue the Administration, as required;
(d) establish a creditors' committee;
(e) enable the Administrators to perform a distribution under
the Administration, if it is a more cost effective process
than under a liquidation; and
(f) move the company directly into a creditors' voluntary
liquidation at the end of the Administration.
The Administrators have indicated that approximately 35
creditors were present at the meeting, most of whom were
employees. The creditors voted in favor of the proposal and
have requested that a creditors' committee be formed. The
Applicants say that a representative of Quebecor World S.A. will
sit on the creditors' committee.
Quebecor World UK has payables of approximately GBP70,000,000 of
which GBP41,000,000 are for pension related obligations and
GBP15,000,000 are for inter-company payables.
Preparation of Restructuring Business Plan
The Applicants have begun the preparation of their five-year
business and financial plans with the advice and assistance of
UBS and input from Ernst & Young. The business plans will
reflect the Applicants' expectations of future operating
performance during and after the CCAA and Chapter 11 processes.
Management expects that the preparation of the business plans
will be completed in May.
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In March
2007, it sold its facility in Lille, France. Quebecor World
(USA) Inc. is its wholly owned subsidiary.
Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable
Justice Robert Mongeon oversees the CCAA case. Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case. Ernst & Young Inc. was appointed as Monitor.
On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-
10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail. In Canada it has 17
facilities in five provinces, through which it offers a mix of
printed products and related value-added services to the
Canadian market and internationally.
The company has operations in Mexico, Brazil, Colombia, Chile,
Peru, Argentina and the British Virgin Islands.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In March
2007, it sold its facility in Lille, France. Quebecor World
(USA) Inc. is its wholly owned subsidiary.
Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable
Justice Robert Mongeon oversees the CCAA case. Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case. Ernst & Young Inc. was appointed as Monitor.
On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-
10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.
The company has until May 20, 2008, to file a plan of
reorganization in the Chapter 11 case. The Debtors' CCAA stay
has been extended to May 12, 2008. (Quebecor World Bankruptcy
News, Issue No. 12; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating
to the US$400 million super priority senior secured revolving
term loan facility of Quebecor World Inc. as a Debtor-in-
Possession. The related US$600 million super priority senior
secured term loan was rated Ba3 (together, the DIP facilities).
The RTL's better asset value coverage relative to the TL
accounts for the ratings'
differential.
SARE HOLDING: Moody's Puts Ba3 Global Rating to Proposed Notes
--------------------------------------------------------------
Moody's de Mexico has assigned an A3.mx national scale rating,
and a Ba3 global scale local currency issuer rating, to the
proposed senior unsecured notes of Sare Holding, S.A.B. de C.V.
Moody's also affirmed the company's A3.mx/Ba3 national scale and
global scale local currency issuer and senior unsecured debt
ratings. The rating outlook is stable. The proceeds from the
proposed senior unsecured 5.5-year, MXN1,500 million notes will
be used to refinance the company's bonds, short-term debt and
for other working capital needs. Sare Holding is a homebuilder
engaged in the development, construction, marketing and sale of
affordable, middle income, residential and tourist housing
developments in Mexico.
According to Moody's, these ratings reflect the company's
business model as a home developer for all income sectors of the
market, its strong land reserve strategy, its good position in
markets with strong demographic growth, its limited regional
concentration, and its experienced management team that has been
able to withstand periods of severe economic stress. It is one
of the largest home developers in Mexico with 40 years of real
estate experience, with continued solid earnings growth and a
strong credit metrics vs. its peers. The company's proven
efficient controls, construction expertise, sophisticated
operating systems, and a diversified portfolio of housing
developments has enabled the company to continue to develop and
remain profitable without depending entirely on government-
sponsored housing programs -- a competitive advantage over other
housing developers. Furthermore, Sare Holding has been in
business since 1967, developing single-family homes and office
buildings since 1977. It is a publicly traded company, which
enhances its transparency and corporate governance.
These positive rating characteristics are tempered by several
factors. While Sare Holding serves all income sectors in the
Mexican housing market, its portfolio is heavily weighted in
low-income housing, which is subject to economic and political
shifts in Mexico. Furthermore, middle-income families in Mexico
seeking to purchase a home use commercial banks as their main
source of financing. Many finance their purchases with
accumulated cash. Others will purchase lots and slowly, as
their means allow, build their homes. Some developers offer
financing, but these are typically short-term loans with
durations of two to five years. Although banks also offer
mortgages, the mortgage market for middle and residential homes
is still relatively small compared to other countries. Sociedad
Hipotecaria Federal and INFONAVIT continue to increase the
funding options for homes. Nevertheless, it is still
challenging for developers to obtain financing for the
construction and the take-out of middle income and residential
homes, since there is no standardized secondary mortgage market
in Mexico. The company continues to focus on diversifying its
funding sources.
The stable rating outlook is based on Moody's expectations that
the company's sound management team will continue to execute
strong internal controls, construction expertise and efficient
methods. Moody's believes that Sare Holding has solid franchise
value, with a well-recognized brand and a valuable land reserve
strategy. The stable outlook also reflects Moody's expectations
that the company will at least maintain its fixed charge
coverage ratio and effective leverage, improve efficiency in
land development, continue to access the public capital markets,
and reduce its reliance on funding from government-sponsored
entities. Furthermore, Moody's also expects that the company
will continue to focus on targeting all segments of the housing
market, while maintaining high quality construction.
Rating improvements will be based on Sare Holding increasing its
franchise value while maintaining its strong credit metrics,
which Moody's believes will take time. Negative rating pressure
will result from a weakening of the company's credit statistics:
Total Debt/Total Assets moving closer to 50%; Debt/EBITDA moving
closer to 4.0; and fixed charge coverage moving closer to 3.5 on
a consistent basis. Shifts in governmental housing policies,
combined with a substantial increase in interest rates, would
also place negative pressure on the rating.
Ratings assigned with a stable outlook:
-- A3.mx national scale senior unsecured debt rating; Ba3
global scale local currency senior unsecured debt rating.
These ratings were affirmed with a stable outlook:
-- A3.mx national scale senior unsecured debt rating; Ba3
global scale local currency senior unsecured debt rating.
-- A3.mx national scale issuer rating; Ba3 global scale local
currency issuer rating.
Based in Mexico City, Mexico, Sare Holding, S.A.B de C.V. --
http://www.sare.com.mx/-- is a fully integrated, diversified
homebuilder engaged in the development, construction, marketing,
consulting, and sales of affordable, middle- and upper income
housing developments in Mexico. The company was founded in 1967
and first developed single-family homes and office buildings in
1977. It has an important presence in Mexico City and nine
different states in the country: State of Mexico, Jalisco,
Puebla, Michoacan, Guanajuato, Queretaro, Quintana Roo, Guerrero
and Morelos. Sare Holding is one of the top eight home
developers in Mexico. As of Dec. 31, 2007, the company had
approximately MXN8 billion in assets and MXN4.1 billion in
shareholders equity.
VISTA: Completes Purchase of Equipment for Paredones Project
------------------------------------------------------------
Vista Gold Corp. has finalized the purchase of gold ore
processing equipment to be used at the company's Paredones
Amarillos Project in Baja California Sur, Mexico, as
contemplated by the company's purchase agreement with A.M. King
Industries, Inc., and its wholly owned subsidiary, Del Norte
Company Ltd. The transportation of the major equipment items
(gyratory crusher, SAG mill, ball mills and pebble crusher) from
the Colomac Mill Site in the Northwest Territories in Canada to
Edmonton, Alberta, pursuant to the agreement terms, started on
March 1, 2008 and concluded on April 17, 2008. A portion of the
other equipment acquired in the transaction has also been
shipped. All of the shipped equipment is now in Vista Gold's
lay-down yard in Edmonton. The company plans to transport the
major equipment components for reconditioning at certified
repair facilities nd the other equipment items directly to its
own facilities in Baja California Sur, Mexico, for inspection
and repair. The remaining equipment at the Colomac site, which
is not critical to the development schedule, is scheduled to be
dismantled during the summer and transported on the 2009 ice
road.
President and Chief Operating Officer, Fred Earnest stated, "The
equipment is ready for re-conditioning, which is scheduled to
occur during the next six months. We have acquired the major
processing equipment for our proposed plant at the Paredones
Amarillos Project, at what we believe is a considerable savings
in time and expense, compared to the purchase of new equipment.
We are currently undertaking a definitive feasibility study to
examine the technical and economic parameters associated with a
potential mine operation to produce 130-150,000 ounces of gold
per year. This study is scheduled for completion in July 2008.
We expect to complete financing arrangements by the end of the
third quarter and commence construction immediately thereafter.
We currently anticipate a 12-month construction period, with
first gold production planned for the fourth quarter 2009."
About Vista Gold Corp.
Vista Gold Corp. (Amex: VGZ; TSX), based in Littleton, Colorado,
evaluates and acquires gold projects with defined gold
resources. Additional exploration and technical studies are
undertaken to maximize the value of the projects for eventual
development. The corporation's holdings include the Maverick
Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects
and Hycroft mine, all in Nevada, the Long Valley project in
California, the Yellow Pine project in Idaho, the Paredones
Amarillos and Guadalupe de los Reyes projects in Mexico, the
Amayapampa project in Bolivia, and the Awak Mas deposit in
Indonesia.
* * *
As reported in the Troubled Company Reporter on April 1, 2004,
Vista Gold's independent auditors expressed doubt about the
company's ability to continue as a going concern after reviewing
its financial statements for the year ending Dec. 31, 2003.
Vista Gold reported US$14.2 million net loss in the year ended
Dec. 31, 2007, US$2.2 million net loss for the three-month
period ended Sept. 30, 2007, and US$3.23 million net loss for
three-month period ended June 30, 2007.
VITRO SAB: Shareholders Approve 2007 Financial Results
------------------------------------------------------
Vitro S.A.B. de C.V. reported that during its Annual General
Shareholders Meeting, the 2007 financial results were approved.
The shareholders approved the 2007 Audit, Corporate Practices
and Finance and Planning Committees reports, as well as those of
the Board of Directors and chief executive officer.
Additionally, the shareholders approved:
* a cash dividend of MXN0.40 per common share, payable on
May 12, 2008;
* elected Directors for 2008;
* certified the independent ones; and
* elected the Chairman of the Audit and Corporate Practices
Committees, in accordance with the Mexican Securities Law.
The shareholders recognized the company’s key achievements which
include another historic sales record in the Glass Containers
business unit, an excellent recovery of the Flat Glass business
unit, as well as a consolidated financial position despite a
temporarily disruption in natural gas supply to some of our
manufacturing facilities, which impacted our financial results.
Federico Sada, CEO of Vitro said, “Thanks to our debt
refinancing, to an important capital investment in order to
expand our manufacturing capacity, as well as to increase our
efficiency and cost reduction permanent efforts, we are
prepared to engage the path for profitable and selective growth”
“Our results confirm that we have implemented the right
strategies and we now have new perspectives. Our focus and
determination have helped us to move forward and we will
continue working with more energy during 2008 to continue
creating value for our shareholders”, concluded Mr. Sada.
During 2008, the Company expects to invest approximately
US$250 million in maintenance of its glass containers and float
glass manufacturing facilities, as well as capacity expansion
projects, the completion of the Vimex transfer from Mexico City
to Toluca, and optimizing its manufacturing processes and
technology to maintain its competitive edge.
Headquartered in Monterrey , Mexico , Vitro, S.A.B. de C.V.
(BMV:VITROA; NYSE: VTO), through its two subsidiaries, Vitro
Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is
a leading global glass producer, serving the construction and
automotive glass markets and glass containers needs of the food,
beverage, wine, liquor, cosmetics and pharmaceutical industries.
* * *
Vitro, SAB de CV continues to carry Moody's global foreign
currency rating of B2 on the company's proposed US$750 million
senior unsecured guaranteed notes due 2012 and 2017, assigned on
Jan. 18, 2007. As well as Fitch's long-term issuer default
rating of B, which was upgraded in Jan. 30, 2007 with a stable
outlook.
====================
P U E R T O R I C O
====================
HORIZON LINES: Federal Agents Serve Warrant on Puerto Rico Trade
----------------------------------------------------------------
Horizon Lines, Inc., has confirmed that federal agents served
search warrants and a grand jury subpoena relating to an
investigation of pricing practices of ocean carriers operating
in the Puerto Rico trade.
Horizon Lines is cooperating fully with the government
officials. The company has not been informed of the specific
subject matter of the inquiry, being conducted by the United
States Department of Justice's Antitrust Division.
Horizon Lines does not expect the government inquiry to impact
the service levels provided to its customers.
Headquartered in Charlotte, North Carolina, Horizon Lines Inc.
(NYSE: HRZ) -- http://www.horizon-lines.com/-- is a domestic
ocean shipping and integrated logistics company comprised of two
primary operating subsidiaries. Horizon Lines LLC operates a
fleet of 21 U.S.-flag containerships and 5 port terminals
linking the continental United States with Alaska, Hawaii, Guam,
Micronesia and Puerto Rico. Horizon Logistics LLC offers
customized logistics solutions to shippers from a suite of
transportation and distribution management services designed by
Aero Logistics, information technology developed by Horizon
Services Group and intermodal trucking and warehousing services
provided by Sea-Logix.
* * *
Moody's Investor Services placed Horizon Lines Inc.'s long-term
corporate family and probability of default ratings at 'B1' in
July 2007. The ratings still hold to date with a stable
outlook.
PILGRIM'S PRIDE: Moody's Places Ratings for Likely Downgrade
------------------------------------------------------------
Moody's Investors Service has placed under review for possible
downgrade the ratings of Pilgrim's Pride Corporation, including
the company's Ba3 corporate family rating.
This review action was based on Moody's concern that the company
may be challenged to meet its bank covenants and thereby
maintain adequate liquidity and credit metrics appropriate for
its rating given the expected adverse impact of high feed grain
costs on profitability and cash flow. LGD assessments are also
subject to adjustment.
Ratings under review for possible downgrade:
-- Corporate family rating at Ba3
-- Probability of default rating at Ba3
-- US$400 million 7.625% senior notes due 2015 at B1
-- US$250 million senior subordinated notes due in 2017 and
US$5.1 million (original US$100 million) senior subordinated
notes due 2013 at B2
Ratings withdrawn (debt repaid)
-- Senior notes due 2011 at B1
Pilgrim's Pride anticipates that its fiscal 2008 feed grain
costs will rise by more than US$700 million over the prior
fiscal year. This is in addition to 2007's feed grain cost
increase of approximately US$600 million. Since the company's
reported fiscal 2007 EBITDA, pro forma for the acquisition of
Gold Kist, was only US$414.7 million, the anticipated increase
in input costs in fiscal 2008 is likely to severely hurt
margins, in Moody's view. Cost inflation may not be able to be
fully passed along to customers on a timely basis given
competition and an undoubted reluctance by food service
customers to continue to absorb higher costs themselves.
Pilgrim's Pride's realization of US$155 million in synergies as
of Dec. 29, 2007 from the Gold Kist acquisition is not
sufficient to materially soften the effect of highly
inflationary costs. The prospect of further pressure on
profitability leads to Moody's concern about the ability to
comply in the future with financial covenants in bank credit
agreements and thereby maintain adequate liquidity.
Moody's review will focus on the impact on near term
profitability of the company's plan to reduce weekly chicken
processing by about 5% in the second half of fiscal 2008 and to
close 6 of 13 US distribution centers; on initiatives to boost
sales and operating margins over the longer term in the face of
what could be further cost inflation; and on liquidity,
including projected covenant compliance and likely usage of the
company's committed bank credit facilities, primarily its US$550
million revolving credit, its US$300 million asset backed
revolving credit, and its US$300 million accounts receivable
securitization.
Headquartered in Pittsburg, Texas, Pilgrim's Pride Corporation
is the world's largest chicken company. Sales for the twelve
months ended Dec. 29, 2007 exceeded US$8.3 billion.
Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the U.S.,
Mexico and in Puerto Rico. Pilgrim's Pride employs about 40,000
people and has major operations in Texas, Alabama, Arkansas,
Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania,
Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with
other facilities in Arizona, Florida, Iowa, Mississippi and
Utah.
===============
S U R I N A M E
===============
* REPUBLIC OF SURINAME: S&P Publishes Report Summary
----------------------------------------------------
Standard & Poor's Ratings Services has released a report on the
Republic of Suriname.
Strengths
-- Progress in maintaining macroeconomic stability, supported
by a disciplined fiscal stance and prudent monetary
management;
-- A concentrated effort to improve debt management, as
demonstrated by the gradual clearance of bilateral arrears
and an improving debt profile; and
-- Favorable economic prospects, stemming from strong
interest by foreign investors in the Republic of
Suriname's main economic sectors.
Weaknesses
-- Institutional weaknesses, including remaining deficiencies
in managing debt payments and difficulty in reforming a
structurally inefficient, public-sector-dominated economy;
-- An open, narrow-based economy exposed to adverse external
developments, especially commodity price fluctuations; and
-- Policy reversal risk, stemming from the untested ability
of the ruling government to maintain prudent policymaking
during the economic downturn, and reflecting the ongoing
strong support for opposition parties with notoriously bad
policymaking records.
Rationale
Suriname's successful efforts to reduce debt arrears and a
continuously prudent policy mix have resulted in significant
improvement in the sovereign's balance sheet, the strengthening
of macroeconomic fundamentals, and the diminishing risk of
policy reversal -- all of which were behind S&P' November 2007
ratings upgrade. While some of the balance sheet improvement
reflects the benefits of rising commodity prices -- Suriname
exports alumina, gold, and oil, which together account for 80%
of current account receipts (CAR) -- positive developments in
the real economy are equally important. In particular, ongoing
gains in production capacities and productivity, committed
investments bolstering future economic expansion, the first
modest signs of economic diversification, and a pickup in
private sector activity are expected to solidify and preserve
growth beyond economic and political cycles. S&P expects GDP
growth to hover at around 5% from 2008 to 2010, slightly down
from the 5.6% average growth rate of the past three years. This
growth forecast has upside potential, should major investment in
the bauxite sector in western Suriname, under discussion for
some time, materialize.
The positive trends on the economic side are paralleled by
government efforts to sustain fiscal discipline and improve the
public sector balance sheet. Fiscal surpluses (1.7% of GDP in
2006 and 1.9% in 2007) are expected to persist until 2009,
reflecting the growing economy, tax measures, lower interest
payments, and subdued capital spending. The government is
proactively using this positive momentum to implement measures
aimed at increasing policy flexibility and to build a safety
cushion in preparation for the inevitable downturn in commodity
prices, revenue from the bauxite, gold, and oil sectors
contribute more than 25% of total government fiscal revenue.
Areas needing reform include strategic planning: setting up the
macroeconomic framework for budget preparation and integrating
it with Suriname's five-year economic plan; the tax system:
revision, including tax-law modernization; tax administration
(improvement); and public financial management (enhancement).
Similarly, the government's track record of aggressive debt-
reduction and arrears clearance during the past two years is
another important indicator of the sovereign's strategy to
structurally improve its credit profile amid the stabilized
domestic macroeconomic situation and favorable commodity prices.
Specifically, during 2005-2007 Suriname restructured and/or
repaid its debt to the German export agency; to the Italian
export guarantee agency (SACE); to Japan; to two Spanish banks
(Banco Bilbao Vizcaya Argentaria S.A. and Banco Santander); to
the Netherlands Investment and Development Bank; and, most
recently, to the United States (U.S. PL 480 loan). These
repayments lowered the government's external debt to an
estimated US$280 million in 2007 from US$389 million in 2006.
This, together with growing external reserves, resulted in the
net external public sector moving to a creditor position with
net assets of 4.7% of CAR in 2007, up from net debt of 11% of
CAR in 2006 and 33% of CAR in 2003. Further debt reduction,
which would address the US$128 million of remaining arrears,
mostly on debt to Brazil and a remaining loan to the U.S. under
the agricultural credit program GSM, is expected in the next two
years. Reflecting fiscal surpluses and debt repayment, net
general government debt is declining and estimated at 19% of GDP
in 2007, half its 2004 level.
Despite impressive debt reduction, structural (administrative)
impediments to smooth debt payment are still present. Suriname
posts recurring minuscule arrears on multilateral debt --
arrears are ongoing to the European Investment Bank and now
cleared to the Inter-American Development Bank -- and on
bilateral debt to the French Development Agency. While these
arrears are small and often technical -- hence, short term in
nature -- they indicate the need for deeper and more structural
reform of the debt management apparatus. The government is
committed to clearing small outstanding arrears.
The ratings on Suriname continue to be constrained by unduly
large, often inefficient, and costly state involvement in the
real economy. The resulting structural weaknesses remain
largely unaddressed and continue to cause many economic
distortions, create much red tape, undermine policymaking
transparency, and give rise to corruption. Public sector reform
is still in the consultancy stage, privatization prospects are
dim, and more focused structural projects (e.g., the
strengthening of public sector management and increasing
competitiveness) are in the early stages of implementation. On
a positive note, the legalization and institutionalization of
prudent fiscal and monetary policies have been important factors
in promoting and ensuring future policy transparency and
predictability. Checks and balances have also improved in the
past few years. The government's next tasks are to focus on
more strategic policymaking and to gradually address the
structural reform agenda.
Although substantially subsided since the early 2000s, political
and policy reversal risk is still significant. In this context,
efforts to institutionalize the currently prudent policy stance,
and the creation of an efficient regulatory environment to
minimize the impact of the political cycle, remain important for
the ratings.
Outlook
The stable outlook reflects S&P's expectation for continuous
prudent fiscal and monetary stances and further efforts in
clearing the remaining bilateral and recurring multilateral
arrears. Suriname's key challenge is to maintain macroeconomic
discipline throughout the often vulnerable political and
economic cycles. While there is upside potential for sustained
economic growth, reflecting increasing foreign direct investment
interest in Suriname's oil and mining industry, the benefits of
such growth will be short-lived and unevenly distributed without
focused reform on the structural front. As such, future
improvement in the sovereign's creditworthiness will be based
upon the Surinamese government's success in using the positive
growth outlook to reform the economic structure, bring
robustness and strategic planning into policymaking, improve the
efficiency of the public sector, and put in place a regulatory
framework to ensure policy continuity and, hence, minimize
political risk. Alternatively, negative pressure on the ratings
would result if the government deviates from currently
responsible monetary and fiscal stances or if political risk
increases.
===============================
T R I N I D A D & T O B A G O
===============================
* REPUBLIC OF TRINIDAD & TOBAGO: S&P Publishes Report Summary
-------------------------------------------------------------
Standard & Poor's Ratings Services has released a report on the
Republic of Trinidad and Tobago.
Strengths
-- A booming energy economy, which underpins continuing
fiscal and current account surpluses that, in turn,
improve fiscal and external flexibility; and
-- A public sector net external creditor position estimated
at 45% of current account receipts in 2008, considerably
above the 22% of current account receipts for the 'A'
median.
Weaknesses
-- A high and increasing nonenergy fiscal deficit due to
slower development of more labor-intensive nonenergy
industries, compounded by the rapid growth in operational
expenditure; and
-- The contingent liability posed by off-budget nonfinancial
government-owned entities, some of which suffer persistent
losses.
Rationale
The ratings on the Republic of Trinidad and Tobago reflect
continuing surpluses in its fiscal and external accounts. The
current account surplus is expected to remain strong at 22% of
GDP in 2008, slightly below the 24% recorded in 2007. At the
same time, the general government surplus is estimated at 0.6%
of GDP in 2008, down from 1.5% in 2006, reflecting the
continuation of a significant expansionary fiscal policy. The
general government surplus is expected to again reach 1% of GDP
in 2009, under the assumption that the government will gradually
reduce the pace of public expenditure in order to lower
inflationary pressures posed by growing spending. This
performance, along with Trinidad and Tobago's political and
macroeconomic stability and the continuation of high energy
prices, boosts policy flexibility and underpins strong medium-
term economic growth prospects. Trinidad and Tobago's economy
grew at an average 9% rate in real terms in the past three
years, and is projected to grow by 5.5% in 2008.
At the same time, due to the ongoing expansionary fiscal stance
and slower pace in the development of, and tax reductions in,
the more labor-intensive nonenergy sector, the nonenergy deficit
is expected to increase to 15% of GDP in 2008 from 8% in 2004,
reflecting the country's heavy exposure to changes in energy
prices. However, general government and public sector debt
continue to decline. S&P expects net general government debt to
be in a net creditor position of 2.3% of GDP in 2008, which is
far better than the 'A' median's 26% net debtor position for the
same period.
Outlook
The positive outlook on the foreign currency rating reflects
continuing fiscal and current account surpluses that, in turn,
strengthen macroeconomic stability and external flexibility. At
the same time, continuing contributions to the Heritage and
Stabilization Fund, which S&P estimates will reach 10% of GDP in
2008, should provide an increasingly important buffer for the
country's open, energy-based economy.
The stable outlook on the local currency rating balances the
falling government debt burden with inflationary pressures that
have led the country's central bank to increase its open market
operations to an expected 8% of GDP in 2008, up from 1.8% of GDP
in 2004.
Rapid progress in diversifying the economy to reduce the
nonenergy deficit, improvements in transparency and governance,
and the implementation of legislation to supervise unregulated
credit unions, representing about 7% of the financial system and
have large nonperforming assets, could strengthen Trinidad and
Tobago's creditworthiness. Conversely, any slippage in the pace
of restructuring government-owned entities or significant
increases in an already-high level of fiscal spending could lead
to a reversal in the recent positive ratings trend.
=================
V E N E Z U E L A
=================
CA LA ELECTRICIDAD: Restructures Corporate Debt
-----------------------------------------------
Venezuelan news agency Agencia Bolivariana de Noticias reports
that C.A. La Electricidad de Caracas has restructured its
corporate debt to save money and boost investment in new
projects.
Business News Americas relates that C.A. La Electricidad first
repurchased debt that it had issued under the control of U.S.
power firm AES Corp. for US$269 million. It then sold new bonds
for US$650 million.
C.A. La Electricidad's President Javier Alvarado said in the
report that the new debt doesn't restrict social spending. The
report says that "the new debt was issued with terms favorable
to C.A. La Electricidad and mostly sold on secondary
international markets."
Mr. Alvarado told BNamericas that C.A. La Electricidad's new
investment plan "will be four times larger than its previous
one." According to BNamericas, C.A. La Electricidad will
construct a 500-megawatt thermo plant in the Valles del Tuy
municipality and a 200-megawatt thermo plant on the Margarita
island.
C.A. La Electricidad expects "immediate" savings of
US$32.5 million and yearly savings of US$4.7 million "as the
rate was dropped to 8.5% from 10.3%," Agencia Bolivariana
states.
Headquartered in Caracas, Venezuela, CA La Electricidad De
Caracas is a subsidiary of AES Corporation and is engaged
in providing electricity services. The company operates in
Caracas, Guarenas, Guatire in Miranda State and San Felipe in
Yaracuy State. As of May 11, 2007, CA La Electricidad de
Caracas is a subsidiary of Petroleos de Venezuela, S.A.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 2, 2007, Standard & Poor's Ratings Services raised its
long-term corporate credit rating on C.A. La Electricidad de
Caracas to 'BB-' from 'B'. The ratings were removed from
CreditWatch with developing implications, where they were placed
originally on Feb. 13, 2007. S&P said the outlook is stable.
PETROLEOS DE VENEZUELA: Invests VEF1 Mil. in Six Social Projects
----------------------------------------------------------------
Petroleos de Venezuela, S.A., through its affiliated company
PDVSA Gas, has invested over VEF1,000,000 in six social projects
that will benefit 3,500 residents of La Vaca sector (located in
the Simon Bolivar municipality, in Maracaibo Lake’s Eastern
Shore), as well as residents of the El Carmelo and Puerto Paez
municipalities (located in the La Cańada de Urdaneta
municipality). The latter two are the locations of the Ule and
Bajo Grande gas processing plants, respectively, in Zulia state.
Portions of these social projects have been completed thanks to
the work done by professionals from the Engineering and
Construction Management Division of the Gas Occidente Processing
Organization. This progress includes paving of the main streets
of La Vaca sector, a project requested by this town’s Community
Council, as well as construction of a sports court named “Alvaro
Polanco” in the same town.
Most of the construction workers are residents of La Vaca sector
and were selected by the town’s Community Council. Such
Community Council gave a presentation to PDVSA Gas and to
Pantersa, the company responsible for the social project to
improve the Ule Plant (the selected town), which explained the
selection process of the specialized personnel working in the
construction projects. Such selection process included
considering aspects like abilities, skills and the workers’
families’ socio-economic situation.
Upholding Social Responsibility
The New PDVSA Gas abides by the guidelines issued by the
Bolivarian Government and continues to uphold social
responsibility and carry out works to increase the welfare of
communities across the nation. An example of this is the
donation of computers and refurbishment of the computer room
“Maria Moreno de Lopez” in the Lagunillas municipality.
Also, a pre-school was built in the La Cańada municipality as
part of the Puerto Paez Basic School. 80% of these works has
already been completed, and responsibility over them will be
handed to the community during the second and third quarter of
this year, complying with the infrastructure and donation time
table established for this period by the Engineering and
Construction Management Division of the Gas Occidente Processing
Organization.
This way, PDVSA Gas is investing its resources to consolidate
patriotic and revolutionary sovereignty throughout the country,
thereby providing social benefit to Venezuelan communities and
enhancing their quality of life.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela
SA's long-term issuer default rating and local currency long
term issuer default rating at BB-. Fitch said the ratings
outlook is negative.
PETROLEOS DE VENEZUELA: Gov't Inks Three Oil Supply Contracts
-------------------------------------------------------------
The Venezuelan government, which runs Petroleos de Venezuela SA,
has signed three contracts for monthly supply of 1.48 million
barrels of oil to Bolivia, Nicaragua, and Haiti, Prensa Latina
reports.
Prensa Latin relates that the signing of the contracts is made
under Venezuela's Bolivarian Alternative for the Americas, an
international cooperation organization based on the idea of
social, political, and economic integration between the
countries of Latin America and the Caribbean. The Venezuelan
government initially proposed the initiative as an alternative
to the US' Free Trade Area of the Americas.
According to Bolivian daily Los Tiempos, the contracts
establishes direct monthly supply of 250,000 barrels of oil and
derivatives or their energy equivalents and special terms of
payment like a 2% yearly interest rate.
Prensa Latina notes that Petroleos de Venezuela's joint venture
with Yacimientos Petroliferos Fiscales Bolivianos, Petroandina,
will be responsible for the shipments.
Petroleos de Venezuela also signed agreements with Yacimientos
Petroliferos for the exploration of oil and gas in the north of
La Paz and south east Bolivia, Prensa Latina adds.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela
SA's long-term issuer default rating and local currency long
term issuer default rating at BB-. Fitch said the ratings
outlook is negative.
PETROLEOS DE VENEZUELA: To Install Nine Pumps in Nueva Esparta
--------------------------------------------------------------
Petroleos de Venezuela S.A. will install nine diesel and
lubricant pumps in several municipalities in the island state so
as to guarantee fuel supply to artisan fishermen in Nueva
Esparta state.
Rafael Ramirez, People’s Minister of Energy and Petroleum and
president of PDVSA, met with representatives from 64 fishermen
organizations of Nueva Esparta state and informed them of
PDVSA’s initiative. The meeting was held in Playa Valdez,
Maneiro municipality, in Margarita Island.
Minister Ramirez indicated that the first two fuel pumps will be
located in the towns of Boca de Rio and Robledal (Macao
municipality), and will begin operating in the next few days.
These two pumps will benefit 282 fishermen located in this area
of Margarita Island. The remaining infrastructure will be built
in the towns of Manzanillo, La Isleta, La Guardia, Playa Moreno
and Playa Valdez, located in the Antolin del Campo, Garcia, Diaz
and Maneiro municipalities, respectively, as well as in Coche
Island, located in Villalba municipality.
PDVSA’s initiative allows fishermen to obtain fuel for their
boats directly and efficiently, and is part of the policies
implemented by the Bolivarian Government to empower communities.
Furthermore, Minister Ramirez informed that the Venezuelan Food
Producer and Distributor (PDVAL) will expand its services by
offering artisan fishermen the opportunity to purchase, sell,
store and distribute sea food at fair prices to the residents of
Nueva Esparta state.
PDVAL also will provide fishermen with fishing supplies and
tools at reasonable prices, thereby protecting them from price
speculation of such supplies and tools which directly influences
fish prices.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela
SA's long-term issuer default rating and local currency long
term issuer default rating at BB-. Fitch said the ratings
outlook is negative.
===========
X X X X X X
===========
* Moody's Sees Continued Stable Securitization for Latin America
----------------------------------------------------------------
When past financial and economic crises bruised Latin America,
there was a silver lining: The markets learned what to do
differently the next time. According to a new report published
by Standard & Poor's Ratings Services, most of the region's
major economies benefited greatly from those lessons, and its
growing securitization markets gradually adapted and folded that
knowledge into transactions to mitigate various kinds of credit
and market risks.
In these hard financial and economic times in the global
markets, the question is whether things will be different this
time for structured finance investors in Latin America. S&P's
analysis of different types of credit risks in Latin American
securitizations indicates that credit performance is stable.
S&P expects this stability to continue so long as the current
turbulence in international credit markets doesn't provoke a
broader recession in the United States or globally.
"We expect this stability to continue so long as the current
turbulence in international credit markets doesn't provoke a
broader recession in the U.S. or globally," the report says.
Most Latin American structured finance markets today enjoy the
advantages of unprecedented political and macroeconomic
stability, rapidly growing domestic capital markets --
essentially a new phenomenon -- and high commodities prices
driven by new sources of demand, such as India and China, that
were minimal in the past. These favorable macroeconomic
conditions, in addition to a deeper sophistication with consumer
and other types of debt that underlie structured finance
products, foster a foundation for future growth and stability.
"Latin American Securitization Remains Stable In The Face Of
Global Market Turbulence," was published April 16, 2008, on
RatingsDirect, the real-time web-based source for S&P's credit
ratings, research, and risk analysis, at www.ratingsdirect.com.
This article will appear in a special issue of S&P's CreditWeek
titled, "Beyond BRIC--2008." The issue coincides with a webcast
scheduled for May 1: "Will Frontier Markets Flourish While
Industrial Countries Falter?". The webcast will feature many
authors in the issue, including S&P's chief economist David
Wyss, chairperson of the Sovereign Ratings Committee John
Chambers, and managing director in the Latin America/emerging
markets structured finance Juan De Mollein, as well as Index
Analysis and Management group's Alka Banerjee. All of the
articles in this issue of CreditWeek, the global authority on
credit quality, will also be available in a special report on
RatingsDirect.
* BOND PRICING: For the Week April 14 - April 18, 2008
------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Argnt-Bocon PR11 2.000 12/3/10 ARS 59.84
Argnt-Bocon PR13 2.000 3/15/24 ARS 57.58
Arg Boden 2.000 9/30/08 ARS 15.02
Argent-EURDIS 7.820 12/31/33 EUR 69.86
Argent-USDIS 8.280 12/31/33 USD 68.75
Argent-Par 0.630 12/31/38 ARS 36.84
BRAZIL
------
CESP 9.750 1/15/15 BRL 63.73
CAYMAN ISLANDS
--------------
Shinsei Fin Caym 6.418 1/29/49 USD 68.50
Shinsei Finance 7.160 7/29/49 USD 66.68
Vontobel Cayman 5.000 3/12/10 CHF 68.40
Vontobel Cayman 7.250 6/27/08 CHF 73.60
Vontobel Cayman 7.650 8/22/08 CHF 74.80
Vontobel Cayman 8.000 10/24/08 CHF 54.00
Vontobel Cayman 8.250 4/25/08 CHF 67.80
Vontobel Cayman 8.250 7/28/08 CHF 45.60
Vontobel Cayman 9.100 10/31/08 CHF 65.60
Vontobel Cayman 10.000 10/24/08 CHF 53.60
Vontobel Cayman 10.400 7/8/08 CHF 54.40
Vontobel Cayman 10.800 9/26/08 CHF 55.80
Vontobel Cayman 10.900 9/26/08 CHF 54.20
Vontobel Cayman 11.000 6/20/08 CHF 43.60
Vontobel Cayman 11.500 6/27/08 EUR 62.00
Vontobel Cayman 11.500 7/22/08 CHF 67.40
Vontobel Cayman 17.500 6/5/09 CHF 67.00
Vontobel Cayman 20.000 1/23/09 EUR 69.60
JAMAICA
-------
Jamaica Govt LRS 7.500 10/6/12 JMD 71.97
Jamaica Govt LRS 12.750 6/29/22 JMD 73.89
Jamaica Govt LRS 12.850 5/31/22 JMD 74.49
PUERTO RICO
-----------
Puerto Rico Cons. 5.900 4/15/34 USD 45.00
Puerto Rico Cons. 6.250 5/1/22 USD 74.00
Puerto Rico Cons. 6.300 11/1/33 USD 47.00
VENEZUELA
---------
Petroleos de Ven 5.250 4/12/17 USD 68.36
Petroleos de Ven 5.375 4/12/27 USD 59.31
Petroleos de Ven 5.500 4/12/37 USD 58.17
Venezuela 7.000 3/31/38 USD 70.67
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marie Therese V. Profetana, Sheryl Joy P. Olano,
Rizande de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
240/629-3300.
* * * End of Transmission * * *