T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, April 22, 2008, Vol. 9, No. 79 Headlines A R G E N T I N A AGROGANADERA NORTE: Trustee to Verify Claims Until May 12 ANGELITE SA: Files for Reorganization in Buenos Aires Court AUTOMOTORES SAN TELMO: Claims Verification Deadline is June 3 CULLIGAN INT'L: S&P Cuts Rating to B- on High Leverage DON QUIJOTE: Seeks Bankruptcy Protection ELIAGRO SA: Trustee to Verify Proofs of Claim Until June 24 FIDEICOMISO FINANCIERO: Subordinated Certificate Gets Moody's Ca GOFFRE CARBONE: Files for Reorganization in Buenos Aires Court MATI SA: Trustee to Verify Proofs of Claim Until June 3 MEIGA SA: Proofs of Claim Verification Deadline is July 2 THE LOOK: Proofs of Claim Verification Deadline is June 5 TYSON FOODS: Leases Production in Tyson Plant, Cuts 110 Jobs B E L I Z E CONTINENTAL AIRLINES: Posts US$80 Mil. Net Loss in 1st Qtr. 2008 B E R M U D A ENERGY XXI: S&P Revs Outlook to Stable; Holds CCC+ Credit Rating IPC HOLDINGS: Issues First Quarter 2008 Earnings Webcast Alert B R A Z I L BANCO BRADESCO: Unit to Provide BRL1.20B Coverage for New Plant BANCO ITAU: Discloses Agenda for Extraordinary General Meeting CAMARGO CORREA: Will Build Pipeline for Minas-Rio Iron Complex COMPANHIA ENERGETICA: Signs US$6.32 Billion Deal with Votorantim DELPHI: Plastech Wants to Return Tooling to Delphi Automotive FIAT SPA: In Talks with Chrysler Over Alfa Romeo Production GENERAL MOTORS: Plastech Complains About Tooling Repossession GLOBAL CROSSING: Unit's Revenue Increases 9% in Fourth Quarter NET SERVICOS: Earns US$19.4 Million in 2008 First Quarter UAL CORPORATION: Remains Open to Industry Consolidation UAL CORP: Kirkland & Ellis Has Custody of Restricted Files UAL CORPORATION: March 2008 Status Report on Plan Consummation UNIAO DE BANCOS: Secures US$210 Million Syndicated Loan C A Y M A N I S L A N D S BAE SYSTEMS: Proofs of Claim Filing Deadline is April 28 BASIS YIELD: Foreign Reps Seek Dismissal of Chapter 15 Case BASIS YIELD: Grant Thornton to Lodge Claim for Assets BRASKEM CAYMAN: Will Hold Final Shareholders Meeting on April 29 CS OFFSHORE: Sets Final Shareholders Meeting for April 29 CY OFFSHORE: Will Hold Final Shareholders Meeting on April 29 GRAND CIRCLE: Moody's Withdraws All Ratings on Canceled Deal TOKYO CRIMSON: Proofs of Claim Filing Deadline is April 28 C O L O M B I A DOLE FOOD: S&P Lifts Debt Rating to B- & Puts '4' Recovery Rtng. C O S T A R I C A SIRVA: Court Lifts Stay on 360networks Panel's Preference Case SIRVA INC: OOIDA Wants to be Reclassified as Class 4 Claimants D O M I N I C A N R E P U B L I C PRC LLC: Files Supplement Site Consolidation Incentive Plan PRC LLC: Committee Wants to Employ Halperin as Conflicts Counsel PRC LLC: Inks Stipulation Resolving Pact With Spirit Airlines E C U A D O R PETROECUADOR: Contributes US$1.48 Billion to Ecuador's Coffers G U A T E M A L A BRITISH AIRWAYS: May File Lawsuit vs BAA over Terminal Five J A M A I C A CABLE & WIRELESS: Unit to Invest US$5MM for 150 Retail Outlets CASH PLUS: Businessman Seeks to Recover J$30MM from Carlos Hill CASH PLUS: Court Grants J$5 Million Bail to Peter Wilson CASH PLUS: Patrice Mitchell Gets Court Injunction Against Firm M E X I C O BLOCKBUSTER INC: CEO Keyes' US$5.6M Pay Lower than Predecessor's BLUE WATER: Creditors Committee Appeals Final DIP Order BLUE WATER: Wants to Pay Incentives to Critical Employees DURA AUTOMOTIVE: Wants to Implement Canadian Restructuring FLEXTRONICS: Completes Phase 1 of Arima Computer Acquisition FOAMEX INT'L: Names David J. Lyon to Board of Directors KRISPY KREME: Posts Fourth Quarter Net Loss of US$31.8 Million METROFINANCIERA SA: Moody's Holds Global Scale ID Rating at B1 SHARPER IMAGE: Enters Into Premium Finance Agreement with AICCO SHARPER IMAGE: Agent Asks Court to Enforce Sales Protocol SHARPER IMAGE: Withdraws Motion Against Calif. Attorney General SHARPER IMAGE: U.S. Trustee Objects to Conway Del Genio Hiring WENDY'S INT'L: Drops Buyout Proposals of Trian Fund & Triarc Cos * MEXICO: Fitch Sees Increased Risks in Housing Construction Biz P E R U DOE RUN: La Oroya Strike Ends, Work Resumes P U E R T O R I C O FERNANDEZ MOLEDO: Case Summary & 37 Largest Unsecured Creditors HORIZON LINES: S&P Rtg Unaffected by Puerto Rican Trade Subpoena U R U G U A Y BANCO SURINVEST: Fitch Assigns B Long-Term Issuer Default Rating CHILDREN'S TRUST: Fitch Eyes BB Rtng on US$47MM Series B Bonds V E N E Z U E L A GOODYEAR TIRE: Board Approves 2008 Performance Plan, MIP SHAW GROUP: Earns US$8.9 Million in Quarter Ended February 29 SHAW GROUP: Moody's Lifts Ratings to Ba1 on Strong Performance X X X X X X * S&P Publishes 2008 Industry Credit Outlook for LatAm Banks * Large Companies with Insolvent Balance Sheet - - - - - ================= A R G E N T I N A ================= AGROGANADERA NORTE: Trustee to Verify Claims Until May 12 --------------------------------------------------------- Eduardo Raul Duschkin, the court-appointed trustee for Agroganadera Norte S.R.L.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 12, 2008. Mr. Duschkin will present the validated claims in court as individual reports on June 12, 2008. The National Commercial Court of First Instance in Vera, Santa Fe, 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 Agroganadera Norte 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 Agroganadera Norte's accounting and banking records will be submitted in court on July 11, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Sept. 11, 2009. The debtor can be reached at: Agroganadera Norte S.R.L. San Martin 1840, Vera Santa Fe, Argentina The trustee can be reached at: Eduardo Raul Duschkin Belgrano 1757, Vera Santa Fe, Argentina ANGELITE SA: Files for Reorganization in Buenos Aires Court ----------------------------------------------------------- Angelite SA has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Angelite to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 17 in Buenos Aires. Clerk No. 33 assists the court in this case. The debtor can be reached at: Angelite SA Uruguay 651 Buenos Aires, Argentina AUTOMOTORES SAN TELMO: Claims Verification Deadline is June 3 ------------------------------------------------------------- Daniel Guillermo Contador, the court-appointed trustee for Automotores San Telmo S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 3, 2008. Mr. Contador will present the validated claims in court as individual reports on July 15, 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 Automotores San Telmo 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 Automotores San Telmo's accounting and banking records will be submitted in court on Sept. 9, 2008. Mr. Contador is also in charge of administering Automotores San Telmo's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Daniel Guillermo Contador Tucuman 1657 Buenos Aires, Argentina CULLIGAN INT'L: S&P Cuts Rating to B- on High Leverage ------------------------------------------------------ Standard & Poor's Ratings Services lowered its ratings on water services provider Culligan International Co., including the corporate credit rating (to 'B-' from 'B') and the issue-level and recovery ratings. S&P removed the ratings from CreditWatch, where they had been placed with negative implications on Nov. 30, 2007, because of fiscal 2007 operating results that were below our expectations. The outlook is stable. Total debt outstanding at the company was about US$831 million as of Dec. 31, 2007. "The downgrade primarily reflects a decline in financial performance resulting from weak organic growth during the year, and the company's high leverage," said Standard & Poor's credit analyst Kenneth Shea. For the full year 2007, adjusted EBITDA declined 15%, reflecting a 1% decline in organic sales (total sales increased a modest 3% due to favorable currency exchange translations), narrowed gross margins, inventory rationalization, and costs associated with the transition to a new third-party distribution center. These factors were partially offset by the favorable impact of lower product costs achieved from some manufacturing outsourcing initiatives. Culligan International Company is a U.S. operating subsidiary of Culligan Holding S.ar.l., and the principal borrower under the rated debt facilities. Culligan is a global provider of water treatment products and services for household and commercial applications. The company has operations in China, the United Kingdom, France, Italy and Argentina, among others. DON QUIJOTE: Seeks Bankruptcy Protection ---------------------------------------- The National Commercial Court of First Instance No. 22 in Buenos Aires is studying the merits of Don Quijote Cereales SRL's request to enter bankruptcy protection. Don Quijote filed a "Quiebra Decretada" petition, after failing to pay its debts since April 11, 2008. The petition, once approved by the court, will transfer control of the company's assets to a court-appointed trustee who will supervise the liquidation proceedings. Clerk No. 44 assists the court in this case. The debtor can be reached at: Don Quijote Cereales SRL Armenia 2280 Buenos Aires, Argentina ELIAGRO SA: Trustee to Verify Proofs of Claim Until June 24 ----------------------------------------------------------- Juan Carlos Caro, the court-appointed trustee for Eliagro S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until June 24, 2008. Mr. Caro will present the validated claims in court as individual reports on Aug. 20, 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 Eliagro 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 Eliagro's accounting and banking records will be submitted in court on Sept. 3, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on April 8, 2009. The trustee can be reached at: Juan Carlos Caro Florida 470 Buenos Aires, Argentina FIDEICOMISO FINANCIERO: Subordinated Certificate Gets Moody's Ca ---------------------------------------------------------------- Moody's Latin America has assigned a rating of Aaa.ar (Argentine National Scale) and Ba3 (Global Scale, Local Currency) to the Debt Securities of Fideicomiso Financiero Tarjeta Privada X, issued by Banco de Valores S.A. (acting solely in its capacity as Trustee). Moody's also assigned a rating of Ca.ar (Argentine National Scale) and Ca (Global Scale, Local Currency) to the subordinated Certificates. The securities are backed by a pool of credit card receivables originated by Banco Privado de Inversiones S.A. located in Argentina. Interest and principal on the VDF are payable from the cash flow of the credit card receivables. The ratings assigned are based on these factors: -- The credit quality of the securitized pool; -- The credit enhancement provided through the 20% initial subordination level; -- The ability of Banco Macro Bansud to act as backup servicer in the transaction; -- The availability of several reserve funds; and, -- The legal structure of the transaction. Structure Banco de Valores S.A. (Issuer and Trustee) issued one class of peso-denominated, floating-rate bonds (VDF) and a residual certificate, all of them backed by a pool of credit card receivables originated by Banco Privado de Inversiones SA. The VDF original balance is equal to 80% of the original issuance amount. The transaction has an expected maturity of 11 months. At closing, the VDF were backed by credit card outstanding balances generated by eligible accounts. The ownership of those accounts remains with the originator but the receivables are assigned to the trust. The transaction has five reserve funds: an expense fund, a liquidity reserve fund, a backup servicer replacement fund, and sinking funds for interest and principal. During the first four months after closing, only interest is paid monthly to VDF investors. The VDF will bear a floating interest rate (Badlar + 375 bps) with a minimum rate of 13% and a maximum rate of 21%. If an early amortization event occurs, the revolving period will terminate automatically. Beginning in the fifth month after closing, scheduled interest and principal will be paid in that order, on each payment date. Principal is scheduled to be paid in seven monthly installments. If the scheduled principal is not paid on time, it will not constitute an event of default under the terms of the transaction documents, given that the promise to investors is to receive ultimate principal before the legal final maturity date. During the revolving period, collections will not be transferred to the trust account but there will be an offset between the collections to be submitted and the new receivables assigned to the trust. This procedure was established to minimize trust expenses. Seller And Servicer Banco Privado de Inversiones SA is the seller of the receivables and the primary servicer of the transaction. The bank was founded in 1993 to provide financial services to the middle-high and high income segment of the market. In 1996, the bank began issuing MasterCard and Visa credit cards to its customers. Banco Macro Bansud S.A. is the designated backup servicer. If a servicer replacement trigger is hit, the trustee is obligated to immediately notify Banco Macro and Visa and MasterCard. The trustee, who receives pool and borrower data from the servicer on a monthly basis, will transfer this information to the backup servicer. In addition, Visa and MasterCard will also have duplicate data which they can transfer to Banco Macro, if necessary. Given that the bank is a member of the Visa and MasterCard system, the transfer of data should be straightforward. Banco Macro will be entitled to receive this information as the new owner of the accounts according to the conditional assignment contract which will become effective upon the occurrence of a servicer replacement event. Thus, even if Banco Privado de Inversiones SA's membership in the Visa and MasterCard networks is terminated, credit card customers will not have their credit lines suspended. The servicer will transfer collections to the trust account on a weekly basis. As a result, there is one week of commingling risk at the originator/servicer level which may affect the deal should the originator/servicer enter into a reorganization procedure. This risk is mitigated by the ability of Banco Macro, once it is appointed as backup servicer, to service the receivables, and by the servicer replacement reserve account that will be funded at closing with 0.5 times the next interest payment. Credit Enhancement Moody's considered the credit enhancement provided in this transaction through an initial subordination level of 20%, as well as the historical performance of Banco Privado's pools. In addition, Moody's considered factors common to all credit card securitizations such as payment rates, charge offs, delinquencies and dilution; as well as specific factors related to the Argentine market, such as the probability of a decrease of the monthly payment rate and changes in the macroeconomic scenario. The factors mentioned above are simulated in stress situations, based on the variability that they have shown in the past and on stress scenarios consistent with the rating levels assigned. Rating Action: Originator: Banco Privado de Inversiones S.A. -- ARS28 Million in Floating Rate Securities of "Fideicomiso Financiero Tarjeta Privada X", VDF rated Aaa.ar (National Scale Rating) and Ba3 (Global Scale, Local Currency). -- ARS7 Million in Certificates of "Fideicomiso Financiero Tarjeta Privada X", CP rated Ca.ar (National Scale Rating) and Ca (Global Scale, Local Currency). GOFFRE CARBONE: Files for Reorganization in Buenos Aires Court -------------------------------------------------------------- Goffre Carbone y Cia. SACI has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Goffre Carbone to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 15 in Buenos Aires. Clerk No. 29 assists the court in this case. The debtor can be reached at: Goffre Carbone y Cia. SACI Uruguay 651 Buenos Aires, Argentina MATI SA: Trustee to Verify Proofs of Claim Until June 3 ------------------------------------------------------- Hugo Cesar Gonzalez, the court-appointed trustee for Mati S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until June 3, 2008. Mr. Gonzalez will present the validated claims in court as individual reports. The National Commercial Court of First Instance in San Francisco, 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 Mati 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 Mati's accounting and banking records will be submitted in court. Infobae didn't state the submission dates for the reports. The debtor can be reached at: Mati S.A. Pueyrredon 1141, San Francisco Cordoba, Argentina The trustee can be reached at: Hugo Cesar Gonzalez Iturraspe 2227, San Francisco Cordoba, Argentina MEIGA SA: Proofs of Claim Verification Deadline is July 2 --------------------------------------------------------- Miguel Rudnitzky, the court-appointed trustee for Meiga SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until July 2, 2008. Mr. Rudnitzky will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 21 in Buenos Aires, with the assistance of Clerk No. 41, 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. La Nacion didn't state the submission dates for the reports. 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 SA Terrero 1957 Buenos Aires, Argentina The trustee can be reached at: Miguel Rudnitzky Parana 426 Buenos Aires, Argentina THE LOOK: Proofs of Claim Verification Deadline is June 5 --------------------------------------------------------- Alberto Jose Buceta, the court-appointed trustee for The Look S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 5, 2008. Mr. Buceta will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 3 in Buenos Aires, with the assistance of Clerk No. 6, 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 The Look 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 The Look's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Buceta is also in charge of administering The Look's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: The Look SA Joaquin V. Gonzalez 1045. Buenos Aires, Argentina The trustee can be reached at: Alberto Jose Buceta Avenida Rivadavia 1342 Buenos Aires, Argentina TYSON FOODS: Leases Production in Tyson Plant, Cuts 110 Jobs ------------------------------------------------------------ Tyson Foods Inc. has consolidated some of its prepared foods business as part of its ongoing effort to improve production efficiency. Production will be discontinued at the Tyson plant in York, Nebraska, and subsequently shifted to one of the company's other meat processing operations. The York closing will result in the elimination of 110 jobs. Affected Team Members will continue to receive pay and benefits through June 17 and production at the plant will end on or before June 17. The workers will be given the opportunity to transfer to other Tyson locations and, in some cases, will be offered cash incentives. "Given the dynamics of the meat business, we must continually pursue ways to operate more efficiently," said Roy Slaughter, vice president of Poultry and Prepared Foods Operations for Tyson. "After careful consideration, we have decided it will be more efficient for another, larger operation to absorb the work done at York." The York plant produces uncooked meats such as flat iron steak and the Shaved Steak(r) brand, as well as other sliced beef and pork items for various retail and foodservice customers. Tyson plans to move some of the equipment from York to the company's recently restructured meat processing operation in Emporia, Kansas, which employs more than 700 people. company officials currently believe the existing workforce at Emporia is capable of handling York's production with very little additional staffing. "We want to thank our York Team Members for their hard work over the years and also thank the York community for its support of our operation," Mr. Slaughter said. The York facility was originally built as a pork slaughter plant in 1952. It has since been remodeled and operated by numerous companies over the years including IBP, inc., which was purchased by Tyson Foods in 2001. Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. The company makes a wide variety of protein-based and prepared food products at its 123 processing plants. Tyson has approximately 114,000 Team Members employed at more than 300 facilities and offices in 26 states and 80 countries. Tyson's U.S. beef plants are located in Amarillo, Texas; Dakota City, Nebraska; Denison, Iowa; Finney County, Kansas; Joslin, Illinois, Lexington, Nebraska and Pasco, Washington. The company also has a beef complex in Canada, and is involved in a vertically integrated beef operation in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on April 8, 2008, Moody's Investors Service confirmed Tyson Foods, Inc.'s corporate family rating and probability of default rating at Ba1. Moody's said the rating outlook remains negative. =========== B E L I Z E =========== CONTINENTAL AIRLINES: Posts US$80 Mil. Net Loss in 1st Qtr. 2008 ---------------------------------------------------------------- Continental Airlines Inc. reported a first quarter 2008 net loss of US$80 million. Excluding a US$5 million after tax gain from the sale of aircraft, Continental recorded a net loss of US$85 million. Fuel costs increased 53.2% (US$364 million) in the first quarter compared to the first quarter of last year, with crude oil prices peaking at US$110.33 per barrel and Gulf Coast jet fuel peaking at US$139.67 per barrel during the quarter. Further, during the quarter, the company incurred additional fuel costs of US$69 million year-over-year that were included as part of its regional capacity purchase cost. As a result, the total year-over-year impact of higher fuel costs on the company for the first quarter was US$433 million. Continental plans to remove from service an additional 14 older, less fuel efficient 737-300 aircraft as leases expire on those aircraft from September 2008 to April 2009. These 14 737-300s are in addition to the 34 737-300s and 500s that were already planned to be removed from service in 2008 and 2009. Continental also expects to reduce regional jet capacity beginning in the fall 2008; however, its plans are fluid as it is attempting to negotiate better economics with ExpressJet, and as the CRJs flown for Continental by Chautauqua come off lease. "Thanks to the continued hard work and dedication of my co- workers, we ran a solid operation despite extremely challenging times," Larry Kellner, Continental's chairman and chief executive officer, said. "In this rapidly changing competitive environment, we will stay focused on running a clean, safe and reliable airline with the best customer service in the industry." First Quarter Revenue and Capacity Total revenue for the quarter of US$3.6 billion increased 12.3% (US$391 million) over the same period in 2007 as a result of increased fuel surcharges on passenger tickets and cargo, international growth and modest fare increases. Passenger revenue grew 11.3% (US$328 million) compared to the first quarter of last year, an increase in all geographic regions. As a result of record high fuel prices, a weakening economy and a weak dollar, Continental plans to reduce domestic mainline capacity 5.0% on an annual run-rate basis beginning this fall. Continental expects that its 2008 mainline capacity, including international growth, will increase about 2.0%, and that its 2009 mainline capacity, including international growth, will be approximately flat compared to 2008. Consolidated revenue passenger miles for the quarter increased 3.9% year-over-year on a capacity increase of 4.1%, resulting in a first quarter consolidated load factor of 78.5%, 0.2 points below the previous first quarter record set in 2007. Consolidated yield for the quarter increased 7.2% year-over- year. Consolidated revenue per available seat mile for the quarter increased 7.0% year-over-year due to increased yields. Mainline RPMs in the first quarter of 2008 increased 4.4% over the first quarter 2007, on a capacity increase of 4.8%. Mainline load factor was 78.8 percent, down 0.3 points year- over-year. Continental's mainline yield increased 7.2% over the same period in 2007. As a result, first quarter 2008 mainline RASM was up 6.7% over the first quarter of 2007. First Quarter Operational Accomplishments Continental employees earned US$6 million in cash incentives for twice finishing in the top three of the network carriers for monthly on-time performance during the quarter. The carrier recorded a U.S. Department of Transportation on-time arrival rate of 71.0% and a systemwide mainline segment completion factor of 98.9% for the quarter. "Despite the incredibly difficult industry environment, our co- workers continued to deliver exceptional service, as our revenue results show," Jeff Smisek, president of Continental, said. "However, in this fuel environment, we must reduce our domestic capacity to help reduce our losses in the domestic system." About Continental Airlines Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/ -- is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,900 daily departures throughout the Americas, including Belize, Mexico, Europe and Asia, serving 144 domestic and 139 international destinations. More than 500 additional points are served via SkyTeam alliance airlines. With more than 45,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 69 million passengers per year. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 27, 2007, Fitch Ratings affirmed Continental Airlines 'B-' issuer default rating with a stable outlook. ============= B E R M U D A ============= ENERGY XXI: S&P Revs Outlook to Stable; Holds CCC+ Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on oil and gas exploration and production company Energy XXI (Bermuda) Ltd. to positive from stable and affirmed its 'CCC+' corporate credit rating on the company. "The outlook revision reflects the progress Energy XXI has made integrating properties acquired from Pogo Producing Co. in June 2007, which has helped improve operating results," said S&P's credit analyst Paul Harvey. The positive outlook also acknowledges the benefits to earnings and cash flow over the near term that come from the currently strong hydrocarbon price environment. During first half of fiscal 2008, Energy XXI's production averaged about 26,000 barrels per day, which is a 61% increase over average production for fiscal year ended June 30, 2007. The company should also continue to have solid reserve replacement while repaying debt. Headquartered in Hamilton, Bermuda, Energy XXI (Bermuda) Limited (LSE:EGY) -- http://www.energyxxi.com/-- is an independent oil and natural gas exploration and production company founded in 2005, whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company's properties are primarily located offshore in the Gulf of Mexico and onshore in the Louisiana Gulf Coast. IPC HOLDINGS: Issues First Quarter 2008 Earnings Webcast Alert -------------------------------------------------------------- IPC Holdings, Ltd. released these Webcast Alert: What: IPC Holdings, Ltd.: First Quarter 2008 Conference Call When: April 25, 2008 at 08:30 AM Eastern Where: http://www.videonewswire.com/event.asp?id=46856 How: Simply log on to the company's web site. Teleconference Number: 800-862-9098 Telephone Number: 785-424-1051. Conference ID: IPC. Contact: Valerie T. Masters, email: Valerie.Masters@ipcre.bm, Tel. Number: (441) 298-5111 Headquartered in Bermuda, IPC Holdings, Ltd. through its wholly owned subsidiary IPCRe Limited (Bermuda), provides property catastrophe reinsurance and, to a limited extent, aviation, property-per-risk excess and other short-tail reinsurance on a worldwide basis, with a subsidiary in Dublin, Ireland. * * * IPC Holdings, Ltd. carried A.M. Best Co.'s BB+ rating on the company's US$236,250,000 convertible preferred stock assigned on Nov. 1, 2005. The preferred stock will mature on Nov. 15, 2008. =========== B R A Z I L =========== BANCO BRADESCO: Unit to Provide BRL1.20B Coverage for New Plant ---------------------------------------------------------------- Banco Bradesco SA's Bradesco Auto/RE will provide BRL1.20 billion in comprehensive coverage for a new 7.6 million ton per year pellet plant. According to Banco Bradesco, pellet producer Samarco Mineracao SA launched the plant on April 18, 2008. About Samarco Mineracao Headquartered in Minas Gerais, Brazil, Samarco Mineracao S.A. is a company that works in the exportation of iron ore and pellet market, selling 100% of its products to over 15 countries in Europe, Asia, Africa, Middle East and the Americas. Samarco's shareholding is equally divided between Companhia Vale do Rio Doce and BHP Billiton. 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 ITAU: Discloses Agenda for Extraordinary General Meeting -------------------------------------------------------------- Banco Itau Holding Financeira S.A. is making additional information available on the Investor Relations Web site to supplement the Convening Notice to an Ordinary and Extraordinary General Meeting on April 23, which includes: -- Matters up for deliberation, -- Explanation of materials, -- Proposal of the Board of Directors -- Power of attorney template -- CV's of members of the Board of Directors and the Board of Oversight -- Comparative presentation of alterations in the By-laws, and -- Comparative presentation of alterations in the Plan for Granting Stock Options This information will allow the bank's shareholders to adopt a position ahead of time regarding the issues to be taken up at the General Meeting, which will qualitatively enrich the debate on the matters up for deliberation. This material is intended, therefore, to expand the dialogue with thousands of shareholders, extending the practices of Corporate Governance adopted by Itau Holding. 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. CAMARGO CORREA: Will Build Pipeline for Minas-Rio Iron Complex -------------------------------------------------------------- Camargo Correa SA has won the tender to construct a 525- kilometer slurry pipeline for the Minas-Rio iron complex under construction in Brazil. Business News Americas relates that MMX is the majority owner of the project. According to BNamericas, the pipeline will connect the Minas-Rio complex mines at Alvorada de Minas in Minas Gerais to the port of Acu on the Rio de Janeiro coastline. Output will be exported from the coastline. The report says that the project will be completed in the first quarter of 2010. Once it is completed, MMX will have the capacity to transport some 26.6 million tons per year of pellet feed, including 7.6 million tons of iron pellets. Camargo Correa SA is one of the largest private industrial conglomerates in Brazil. The company is a holding company with interests in cement, engineering and construction, textiles, footwear and sportswear manufacturing. It also owns non- controlling equity interests in the energy, transportation (highway concessions) and steel businesses. During the last 12 months through June 2007, Camargo Correa had net sales of BRL9.2 billion and EBITDA of BRL1.4 billion. As reported in the Troubled Company Reported-Latin America on Nov. 27, 2007, Fitch Ratings affirmed the foreign currency and local currency Issuer Default Ratings of Camargo Correa S.A. at 'BB'. Fitch also affirmed the 'BB' rating on the US$250 million senior unsecured bonds due 2016 issued by CCSA Finance Limited (a special-purpose vehicle wholly-owned by Camargo and incorporated in the Cayman Islands), which is unconditionally guaranteed by Camargo Correa. In addition, Fitch has also upgraded Camargo's national debt rating to 'AA-(bra)' from 'A+(bra)'. Fitch said the rating outlook is stable. COMPANHIA ENERGETICA: Signs US$6.32 Billion Deal with Votorantim ---------------------------------------------------------------- Business News Americas relates that Companhia Energetica de Minas Gerais has entered into a 20-year contract with industrial conglomerate Grupo Votorantim for US$6.32 billion or BRL10.5 billion. According to Cemig, it will supply power to Votorantim's industrial plants in the southeast and midwest regions. Under the contract, Votorantim's present and future supply needs, which is based in Minas Gerais state, will be guaranteed, said Cemig. Companhia Energetica de Minas Gerais aka Cemig -- http://www.cemig.com.br/-- is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market. Cemig's concession area extends throughout nearly 96.7% of the State of Minas Gerais, Brazil. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). * * * As reported on March 8, 2007, Moody's Investors Service assigned corporate family ratings of Ba2 on its global scale and Aa3.br on its Brazilian national scale to Companhia Energetica de Minas Gerais aka CEMIG. The rating action triggered the upgrade of CEMIG's outstanding debentures due in 2009 and 2011, and of the BRL250 million 2014 senior unsecured guaranteed debentures of its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from B1 on the global scale and to Aa3.br from Baa2.br on the Brazilian national scale, concluding the review process initiated on Aug. 8, 2006. DELPHI: Plastech Wants to Return Tooling to Delphi Automotive ------------------------------------------------------------- Plastech Engineered Products Inc. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the Eastern District of Michigan to return certain tooling equipment to Delphi Automotive Systems LLC. Specifically, the Debtors seek authority to: (a) surrender certain tooling owned by Delphi Automotive Systems, LLC, that is in the Debtors' possession; (b) sell to Delphi certain de minimis finished goods inventory made with the Delphi tooling for US$4,671, free and clear of liens; and (c) lift the automatic stay to effectuate the release of tooling and the sale of the de minimis inventory to Delphi. According to Deborah L. Fish, Esq., at Allard & Fish, P.C., in Detroit, Michigan, the Debtors currently are in possession of certain tooling which is fully paid for and is owned by Delphi at a plant in Croswell, Michigan that was used to make service parts for Delphi's Powertrain Division that are no longer in production. Ms. Fish informs that the Inventory represents idle assets that are of little or no use or value to the Debtors' estates or restructuring efforts, as the Inventory consists of service parts that are no longer in production. The Debtors have determined in their sound business judgment that the sale of the Inventory to Delphi is the most efficient way to convert idle assets of de minimis value into cash, Ms. Fish relates. Pursuant to Section 363(b)(1) of the Bankruptcy Code, "[t]he trustee, after notice and a hearing, may use, sell or lease, other than in the ordinary course of business, property of the estate." However, Ms. Fish states that the Debtors acknowledge the Court's discretion in granting their request, giving due consideration to the Debtors' exercise of sound business judgment. Furthermore, Ms. Fish notes Section 363(f) permits a debtor to sell property free and clear of another party's interest in the property if: (a) applicable non-bankruptcy law permits such a free and clear sale; (b) the holder of the interest consents; (c) the interest in a lien and the sales price of the property exceeds the value of all Liens on the property; (d) the interest is in bona fide dispute; or (e) the holder of the interest could be compelled in a legal or equitable proceeding to accept a monetary satisfaction of its interest. The Debtors believe that the sale of the inventory to Delphi is commercially reasonable in light of the assets being sold and as a result, the value of the proceeds from the sale fairly reflects the value of the Inventory sold, Ms. Fish maintains. The Debtors propose that any party with a lien on the Inventory be given a corresponding security interest in the proceeds of the sale. In light of these, the requirements of Section 363(f) of the Bankruptcy Code would be satisfied for any proposed sales free and clear of liens, Ms. Fish says. Moreover, because the Debtors have no further need for the Delphi Tooling, the Debtors believe that the automatic stay should be lifted pursuant to Section 362(d) of the Bankruptcy Code to allow Delphi to take possession of the Delphi Tooling and to deem the applicable purchase orders between Delphi and the Debtors terminated upon the return of the Delphi Tooling and payment for the Inventory, Ms. Fish asserts. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. * * * As reported in the Troubled Company Reporter-Latin America on March 18, 2008, Standard & Poor's Ratings Services still expects to assign a 'B' corporate credit rating to Delphi Corp. if the company emerges from bankruptcy in early April. S&P has revised its expected issue-level ratings because changes to the structure of the proposed financings have affected relative recovery prospects among the various term loans. S&P's expected ratings are: a) The US$1.7 billion "first out" first-lien term loan B-1 is expected to be rated 'BB-', with a '1' recovery rating, indicating the expectation of very high recovery in the event of payment default. b) The US$2 billion "second out" first-lien term loan B-2 is expected to be rated 'B', with a '4' recovery rating, indicating the expectation of average recovery in the event of payment default. c) The US$825 million second-lien term loan is expected to be rated 'B-', with a '5' recovery rating, indicating the expectation of modest recovery in the event of payment default. FIAT SPA: In Talks with Chrysler Over Alfa Romeo Production ----------------------------------------------------------- Chrysler LLC has initiated talks with Fiat SpA over a possible cooperation agreement under which Chrysler will produce the Italian auto manufacturer's Alfa Romeo cars in its U.S. factories, Reuters reports, citing German newspaper Handelsblatt. The talks, Reuters says, is now in the advanced stage. A Chrysler spokeswoman, however, dismissed the report as speculation, saying "there could be other partnerships with other carmakers," Reuters relates. Chrysler earlier announced a production alliance with Japanese automaker Nissan, the paper reveals. A TCR-Europe reported on March 27, 2008 disclosed Fiat entered into discussions with Detroit's auto manufacturers on sharing production of Alfa Romeos in the U.S. Fiat's chief executive officer Sergio Marchionne said that production of Alfa cars will start by 2011 or 2012. Meanwhile, Alfa, which will start distributing and selling cars in the U.S. cars next year, will have to absorb losses until production starts with a partner. Fiat had to manufacture in the U.S. because of the weakness of the dollar against the euro. Fiat is also preparing to transfer its Iveco division to the U.S. along with the relaunched Fiat 500 compact car. About Fiat Turin, Italy-based Fiat SpA -- http://www.fiatgroup.com/-- (BIT:F) is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. Outside Europe, the company has subsidiaries in the United States, Japan, India, China, Mexico, Brazil and Argentina, among others. * * * As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries Ba3 Corporate Family and Senior Unsecured ratings from Moody's Investors Service, which said the outlook is positive. The company carries Standard & Poor's Ratings Services' BB long- term corporate credit rating. The company also carries B short- term rating. S&P said the outlook is stable. GENERAL MOTORS: Plastech Complains About Tooling Repossession ------------------------------------------------------------- Plastech Engineered Products Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Michigan to deny the request of General Motors Corporation to lift the automatic stay to allow it to repossess tooling from the Debtors. General Motors seeks "contingent" relief from the automatic stay to allow it to repossess the Tooling only in the event that the Debtors reject a relevant purchase order, the Debtors close a relevant plant, the Debtors' financing expires, or the Debtors are unable to supply parts. Matthew P. Ward, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Wilmington, Delaware, states that General Motors' request is procedurally improper, as the relief must be sought only through an adversary proceeding, pursuant to Rule 7001 of the Federal Rules of Bankruptcy Procedure. Bankruptcy Rule 7001 provides that, "a proceeding to recover . . . property" and "a proceeding to determine the validity, priority, or extent of a lien or other interest in property" are adversary proceedings." Mr. Ward contends General Motors' request is improper because it seeks only prospective and "contingent" relief from the automatic stay based upon speculative future events. As these "speculative" events have not occurred, the motion is merely an advisory opinion rather than an actual case or controversy, and therefore the Court lacks jurisdiction because there does not presently exist any actual dispute that is ripe for adjudication, Mr. Ward relates. In addition, Mr. Ward says the standards applicable for modifying the automatic stay under Section 362(d)(1) of the Bankruptcy Code are not satisfied. He cites that General Motors has not afforded the Debtors with the breathing spell to which they are entitled. To the contrary, General Motors filed the Stay Relief Motion within six weeks of the Petition Date, a period when the Debtors' initial exclusivity period has not yet expired, and the Debtors have been engaged in negotiating restructuring proposals with their major creditor constituencies, Mr. Ward maintains. Mr. Ward tells the Court that General Motors has created issues for vendors, moldbuilders, and other major customers by sending a negative signal, such as the relief sought by Roush Manufacturing, Inc., to lift the automatic stay in order to exercise state law rights with respect to certain Tooling. Mr. Ward avers that relief from the automatic stay would be particularly inappropriate because General Motors is merely an unsecured creditor. He emphasizes ceding to GM's request would be detrimental to other unsecured creditors, and other creditors in general, and would put the collateral of the Debtors' secured lenders in jeopardy, particularly those claims senior in priority to General Motors, whose recovery depends on the Debtors' continuing operations. Mr. Ward maintains that lifting the stay would affect the Debtors' production of GM's parts and would, in turn, cause immediate shutdowns at GM's plants. To the Debtors' knowledge, Mr. Ward says there is no orderly transition plan in place, and any transition plan would take weeks, if not months, to implement procedures and protocols to identify any Tooling and to safely remove it without causing disruption to the Debtors' operations and its other customers' production lines. The Official Committee of Unsecured Creditors concurs with the Debtors' contentions. "The relief requested in the Motion is of a contingent nature and based upon speculation as to future events. The Motion essentially seeks an advisory opinion on a controversy that is not ripe for adjudication." Goldman Sachs Joins Objection Goldman Sachs Credit Partners L.P., the administrative and collateral agent for the Debtors' Prepetition First Lien Term Lenders, joins in the Debtors' objection to GM's request. According to Richard A. Levy, Esq., at Latham Watkins LLP, in Chicago, Illinois, Goldman Sachs asks the Court, in the event the Court grants GM's request, to make clear that nothing in the Court's order terminates or otherwise impairs any liens, claims or other interests the Prepetition First Lien Term Agent and the Prepetition First Lien Lenders may have in the Tooling under applicable law. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on March 20, 2008, Standard & Poor's Ratings Services placed the ratings on General Motors Corp., American Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc. on CreditWatch with negative implications. The CreditWatch placement reflects S&P's decision to review the ratings in light of the extended American Axle (BB/Watch Neg/--) strike. The work stoppage that began Feb. 25 at American Axle's U.S. United Auto Workers plants has forced closure of many GM (B/Watch Neg/B-3) plants, as well as plants of certain GM suppliers. The strike began after the expiration of the four- year master labor agreement with American Axle. Although S&P still expects American Axle and the UAW to reach an agreement that will reflect more competitive labor costs, the timing is unknown. To resolve the CreditWatch listings, S&P's will assess the strike's impact on the companies' credit profiles, particularly liquidity, once production resumes. S&P could lower the ratings any time prior to a resolution of the Axle strike if the liquidity of the companies becomes compromised, although downgrades are not likely for another several weeks. As reported in the Troubled Company Reporter-Latin America on Feb. 28, 2008, Fitch Ratings has affirmed the Issuer Default Rating of General Motors at 'B', with a Rating Outlook Negative. As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets in the US, Canada and Germany. As reported in the Troubled Company Reporter-Latin America on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. The outlook is stable. GLOBAL CROSSING: Unit's Revenue Increases 9% in Fourth Quarter -------------------------------------------------------------- Global Crossing Ltd.'s Chief Financial Officer Jean Mandeville said in a conference call that the revenue of the firm's GC Impsat rose 9% to US$95 million in the fourth quarter 2007, from US$87 million in the third quarter 2007. According to BNamericas, Mr. Mandeville said that GC Impsat was created after Global Crossing acquired regional corporate services provider Impsat, a process that was completed on May 9, 2007. Mr. Mandeville told BNamericas that GC Impsat generated US$229 million revenues from May to Dec. 31, 2007. The integration of the networks of Global Crossing and Impsat would be complete by the middle of this year and with the merger some US$10 million in savings "had already been made from operational synergies," BNamericas says, citing GC Impsat's Managing Director H�ctor Alonso. BNamericas relates that Mr. Alonso said that the data center and managed services softwares continued to lead growth in the region, increasing at 10% per year. The report says that from the time Impsat was acquired until the end of 2007, about 66% of data center revenue was from value added softwares like hosting and managed services. Mr. Alonso commented to BNamericas, "An excellent example is the network management operation launched in Brazil and Colombia in November last year. In 45 days we were able to sign six new customers. Our newly combined company has resulted in improved capabilities and greater network reach and a company more aligned with customers' needs than ever before. These advantages have provided us with better positioning within the industry and we are increasingly able to provide a one-stop shop that enterprise customers are demanding." Customer revenues "were well diversified with no single customer accounting for more than 10% of revenues," with Brazil, Colombia and Argentina as the highest revenue-generating nations, respectively contributing 29%, 19%, and 18% of the total, followed by Venezuela with US$23 million -- accounting 10% of total revenue, BNamericas says, citing Mr. Mandeville. Mr. Mandeville told BNamericas that Global Crossing's Venezuelan network communications business was incorporated into GC Impsat to "streamline operations" and GC Impsat will consider doing the same for Global Crossing's networks in Chile, Brazil, and Argentina. About GC Impsat GC Impsat is a provider of private telecommunications network and Internet services in Latin America, offering integrated data, voice, data center and Internet solutions. Its network consists of owned fiber-optic and wireless links, teleports and earth stations, and leased satellite links. The company's regional infrastructure also includes 15 metropolitan networks and 15 world-class data centers located in the main business centers of Latin America and has operations in Argentina, Brazil, Chile, Colombia, Ecuador, Peru, Venezuela and the United States. About Global Crossing Ltd. Headquartered in Florham Park, New Jersey, Global Crossing Ltd. (NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides telecommunication services over the world's first integrated global IP-based network. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. The company filed for chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the Debtors filed for protection from their creditors, they listed US$25,511,000,000 in total assets and US$15,467,000,000 in total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003. Global Crossing's Latin American business has operations in Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru, Mexico, Venezuela and the United States (Florida). It also has operations in the United Kingdom. * * * At Sept. 30, 2007, Global Crossing Ltd.'s balance sheet showed total assets of US$2.6 billion, total debts of US$2.7 billion and a US$74 million stockholders' deficit. As reported in the Troubled Company Reporter-Latin America on Nov. 8, 2007, Global Crossing Ltd. said in a statement that its net loss increased 75% to US$89 million in the third quarter 2007, compared to US$51 million in the third quarter 2006. NET SERVICOS: Earns US$19.4 Million in 2008 First Quarter --------------------------------------------------------- Net Servicos de Comunicacao SA reports BRL32.3 million or US$19.4 million of net income for the first quarter of 2007, up 9% compared to BRL29.6 million for the same quarter of 2006, Business News Americas reports. For the first quarter of 2007, the company's net revenues boosted 26.7% year-on-year to BRL830 million from BRL655 million, the report adds. According to the report, the company's operational costs moved 32.6% at BRL395 million in the 2008 first quarter, compared to BRL298 million for the 2007 first quarter. The increase resulted from higher workforce expenses, up 73% year-on-year, as well as efforts to sustain quality targets for customer care and maintenance services. Headquartered in Sao Paulo, Brazil, Net Servicos de Comunicacao SA -- http://nettv.globo.com/NETServ/us/empr/sobr_visao.jsp-- is the largest pay-television operator in Latin America. The company operates in 79 Brazilian cities, including Sao Paulo, Rio de Janeiro, Belo Horizonte and Porto Alegre. It is also the leading provider of high-speed cable modem Internet access through Net Virtua service. Its advanced network of coaxial and fiber-optic cable covers over 44,000 kilometers and passes approximately 9 million homes. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 21, 2008, Moody's Investors Service assigned a Ba2 foreign currency rating to the proposed up to US$200 million guaranteed long term senior unsecured notes to be issued by Net Servicos de Comunicacao S.A. The rating outlook is stable. UAL CORPORATION: Remains Open to Industry Consolidation ------------------------------------------------------- Julie Johnsson of the Chicago Tribune reports that the merger between Delta Air Lines Inc. and Northwest Airlines would allow Continental Airlines and United Airlines to pursue a merger of their own. Two people briefed on the matter said that Continental Airlines and United Airlines have already laid most of the groundwork for a merger, and are prepared to move quickly to wrap up a deal if ever the Delta-Northwest merger pushes through, says Reuters. A person familiar with the talks also revealed that merging the labor unions of United and Continental is not likely to present a problem since extensive discussions have already been held between the two sides, Ms. Johnsson reports. Chris Walsh of the Rocky Mountain News notes that experts say a merger with Continental is the best option for United, as the two have complementary strengths, particularly when it comes to their route networks. According to The Australian, industry observers say both United Airlines and American Airlines could do a merger that would make them even larger than the proposed Delta-Northwest combination. The Australian's Melanie Trottman and Ann Keeton relate that United has reportedly been in talks with Continental, and American could make a counterbid for Northwest, or try to interest Continental in a deal. According to various reports, Gerard Arpey, CEO of American Airlines, has said his company "may or may not participate in consolidation" and that the company "will remain competitive irrespective of any consolidation that occurs." United's Statement on Consolidation "The industry has changed dramatically -- both globally and domestically -- and the old paradigms no longer apply; the current fuel and economic environment are only accelerating the need for a different approach," UAL Corporation Chairman, President and Chief Executive Glenn Tilton said in a statement. "Consolidation is but one of the changes necessary to achieve sustained profitability, and we have been fully supportive. As the industry evolves, we will take the actions we need to strengthen our global competitiveness, and we will participate in consolidation when and if it is the right choice and provides the right benefits for employees, customers and shareholders," Mr. Tilton added. UAL Union's Statement on Possible Consolidation "United CEO Glenn Tilton's dream of finding a dance partner for our airline appears, by most accounts, closer to becoming a reality," said a statement issued by the Union Coalition at United Airlines. "Mr. Tilton and his executives need a reminder concerning any merger or consolidation scenario that involves our airline. Unlike bankruptcy, when Tilton and his minions exploited U.S. Bankruptcy laws to squeeze every penny it could from its employees, a merger would require United executives to address employee concerns if it is to succeed. "Mr. Tilton can no longer hide behind the robes of a bankruptcy judge to get what he wants from labor. Those days ended once United exited bankruptcy. Management now faces a group empowered by unity and a common determination of regaining what was taken from us under the guise of duress. CEO Glenn Tilton and his executives have helped themselves to millions of dollars of stock options, bonuses, pay raises and dividends without any regard to their employees or passengers. Management's self-serving approach to running this airline must end. "We are firmly entrenched at the consolidation table. The road to any consolidation involving United Airlines must pass through labor. And traveling that road requires a hefty toll. "United Airlines exists today only due to the sacrifices and sweat equity the employees have invested, not from any heroic efforts of Glenn Tilton and his executives. "Today, their honeymoon is over. It is now our turn to have a say in the future and direction of our airline. If the current management at United expects our cooperation in any consolidation or merger action, they must address our needs. The Union Coalition at United Airlines, representing unionized employees, has had enough of Mr. Tilton and his executives lining their pockets at the expense of their employees and of management's lack of permanent interest in the company they pretend to serve. "Together, we will reclaim our careers and our collective future. The road toward a successful merger or consolidation involving United Airlines goes through its unions. Unless our concerns are met; unless we are extended the respect we've earned and are provided the future we so richly deserve, Mr. Tilton's merger dreams will remain just that." The Union Coalition at United represents more than 48,900 United employees. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 155 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). * * * As reported in the Troubled Company Reporter on April 17, 2008, Fitch Ratings has affirmed the debt ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. UAL Corp.'s Issuer Default Rating was affirmed at 'B-' while United Airlines Inc.'s IDR was confirmed at 'B-'; and Secured bank credit facility (term loan and revolving credit facility) at 'BB-/RR1'. The Rating Outlook for UAL and United has been revised to Stable from Positive. UAL CORP: Kirkland & Ellis Has Custody of Restricted Files ---------------------------------------------------------- Under Rule 5005-4-D of the Local Rules of the United States Bankruptcy Court for the Northern District of Illinois, the Clerk of the Court must maintain sealed documents as restricted documents for a period of 63 days following the closure of the case in which the documents were filed. At the end of the 63-day period, and so long as no appeal with respect to the case is pending, the Bankruptcy Clerk is to place the restricted documents in the public file, "[e]xcept where the court orders otherwise in response to a request of a party," Erik W. Chalut, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, notes. The Reorganized Debtors relate that on Jan. 28, 2008, they received notice from the Bankruptcy Clerk that it would release a document -- Referenced Filing -- that was filed under seal in the adversary proceeding UAL Corporation v. State Street Bank & Trust Company et al., Case No. 03A61, to the public file unless an order from the Court directs otherwise. The Referenced Filing is not the only document filed in the Reorganized Debtors' Chapter 11 cases and the related adversary proceedings that is currently in the Court's restricted files, Mr. Chalut says. During the course of the Chapter 11 proceedings, parties filed more than 870 confidential documents under seal, the majority of which remain restricted as of March 18, 2008. The Restricted Documents contain highly confidential and commercially sensitive information regarding the Reorganized Debtors' business operations, Mr. Chalut tells the Court. Disclosure of these to the public would harm the Restricted Debtors by giving its competitors and its customers access to highly confidential commercial or other information, he asserts. Due to the sensitive nature of the Restricted Documents, these should not be released into the public record now or at a later time after closure of the relevant Chapter 11 Proceedings, Mr. Chalut maintains. The Reorganized Debtors anticipate that they will receive similar notices from the Bankruptcy Clerk regarding the Restricted Documents in the future unless there is a Court order directing the disposition of the Restricted Documents. At the Reorganized Debtors' behest, Judge Eugene R. Wedoff directs the release of the Restricted Documents to the custody of Kirkland & Ellis on the Reorganized Debtors' behalf. Specifically: * With respect to the Restricted Documents filed in Chapter 11 Proceedings that have satisfied the 5005-4-D Conditions, the Reorganized Debtors ask the Court to direct the Bankruptcy Clerk to release these documents to the possession of Kirkland & Ellis as soon as practicable. * With respect to any Restricted Document filed in a Chapter 11 Proceeding that has not satisfied the 5005-4-D Conditions, the Reorganized Debtors ask the Court that these documents be released to the possession of Kirkland & Ellis as soon as practicable after the relevant Chapter 11 Proceeding has satisfied the 5005-4-D Conditions. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 155 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter on April 17, 2008, Fitch Ratings has affirmed the debt ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. UAL Corp.'s Issuer Default Rating was affirmed at 'B-' while United Airlines Inc.'s IDR was confirmed at 'B-'; and Secured bank credit facility (term loan and revolving credit facility) at 'BB-/RR1'. The Rating Outlook for UAL and United has been revised to Stable from Positive. UAL CORPORATION: March 2008 Status Report on Plan Consummation -------------------------------------------------------------- Erik W. Chalut, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, reports that: * as of March 14, 2008, United has authorized the issuance of approximately 112,300,000 shares which represents approximately 97.6% of the 115,000,000 shares of new UAL common stock available to United's employees and creditors; * as of Feb. 29, 2008, approximately 101,000 shares have been distributed in connection with the Director Equity Incentive Plan of a total 175,000 shares available and approximately 9,300,000 shares have been distributed in connection with the Management Equity Incentive Plan of a total 9,825,000 shares available; and * as of March 14, 2008, United will have distributed approximately 26,200,000 shares of New UAL Common Stock to its employees' 401(k) plans. Additionally, after monetizing 2,100,000 shares to satisfy tax withholding obligations, employees and retirees will have received 4,200,000 net shares directly. UMB Bank's Appeal The Bankruptcy Court issued a ruling and a memorandum of decision on the value of the secured claim of UMB Bank, NA on Aug. 24, 2007. UMB filed a notice of appeal to the District Court on Sept. 4, 2007, while Regional Airports Improvement Corp. filed its notice of appeal on September 5. The Debtors cross-appealed on the issue of the court's calculation of the discount rate, on Sept. 14, 2007. The District Court consolidated the appeals on Nov. 6, 2007, and established a coordinated briefing schedule. Briefing in connection with the appeal and cross appeal was completed March 20, 2008. Judge Harry D. Leinenweber has not yet set a date for hearing or ruling. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 155 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, Fitch Ratings has affirmed the debt ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. UAL Corp.'s Issuer Default Rating was affirmed at 'B-' while United Airlines Inc.'s IDR was confirmed at 'B-'; and Secured bank credit facility (term loan and revolving credit facility) at 'BB-/RR1'. The Rating Outlook for UAL and United has been revised to Stable from Positive. UNIAO DE BANCOS: Secures US$210 Million Syndicated Loan ------------------------------------------------------- A Uniao de Bancos Brasileiros SA official told Business News Americas that the bank has secured a US$210 million, five-year syndicated loan. BNamericas relates that Caja Madrid, HSBC, Intesa Sanpaolo, and Mizuho Corporate Bank contributed US$25 million each. Nordea, JPMorgan Chase, Swedbank, and WGZ Bank each chipped in US$10 million. Chile's BancoEstado and Brussels-based Dexia gave US$5 million each. Uniao de Bancos' Correspondent Banking and Multiplateral Organization Relations Chief Richard Bird told BNamericas that the bank initially sought US$250 million "and now it is wrapping up a US$45 million bilateral loan to complement the syndicated loan." According to BNamericas, Uniao de Bancos will use the money to finance commercial loans to corporates and small and medium sized enterprises. Mr. Bird told BNamericas that Uniao de Bancos is negotiating with two major financial institutions for another syndicated loan. "We're always looking for opportunities. Tenors are shorter now than just a couple of months ago but we still see demand from our corporate clients," Mr. Bird commented to BNamericas. Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/-- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. The company's businesses comprise segments: Retail, Wholesale, Insurance and Pension Plans and Wealth Management. Uniao de Bancos and its associated companies FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas) offer a network composed of 17,000 points of service. It also counts on 7,580 automated teller machines and all 30 Hours' products and services, including the telephone service and the Internet banking. The company's international network consists of branches in Nassau and the Cayman Islands; representatives offices in New York; banking subsidiaries in Luxembourg, the Cayman Islands and Paraguay; and a brokerage firm in New York -- Unibanco Securities Inc. * * * To date, Standard & Poor's Ratings Services rated Unibanco-Uniao de Bancos Brasileiros SA's long-term foreign issuer credit rating and local issuer credit rating at 'BB+'. ========================== C A Y M A N I S L A N D S ========================== BAE SYSTEMS: Proofs of Claim Filing Deadline is April 28 -------------------------------------------------------- BAE Systems (Hong Kong) Limited's creditors have until April 28, 2008, to prove their claims to Thomas Andrew Corkhill and Iain Ferguson Bruce, 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. BAE Systems' shareholder decided on Feb. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Thomas Andrew Corkhill and Iain Ferguson Bruce c/o KCS Hong Kong Limited 8th Floor, Gloucester Tower, The Landmark 15 Queen's Road Central, Hong Kong BASIS YIELD: Foreign Reps Seek Dismissal of Chapter 15 Case ----------------------------------------------------------- Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham, foreign representatives of Basis Yield Alpha Fund (Master), ask the U.S. Bankruptcy Court for the Southern District of New York to dismiss their request for protection of Basis Yield's U.S.- based assets under Chapter 15 of the U.S. Bankruptcy Code. The Foreign Representatives also seek dismissal of their request for recognition of Basis Yield's insolvency proceeding pending in the Grand Court of the Cayman Islands. On behalf of the Foreign Representatives, Karen B. Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP, in New York, notes that Chapter 15 does not provide for a specific procedure to withdraw or dismiss a Chapter 15 petition. She points out though that Section 105(a) of the U.S. Bankruptcy Code provides, in relevant part, that "[t]he court may issue any order, process or judgment that is necessary or appropriate to carry out the provisions of this title." She further notes that Rule 1017 of the Federal Rules of Bankruptcy Procedure provides, in relevant part, that "a case shall not be dismissed on motion of the petitioner . . . before a hearing on notice as provided in Rule 2002." Accordingly, she contends that a case filed under Chapter 15 may be dismissed by the Bankruptcy Court after hearing and notice of motion. "The Foreign Representatives have determined that it is in the best interest of the Foreign Debtor's creditors and all parties in interest to now request that this Court dismiss the Chapter 15 case without prejudice," Ms. Dine says. The Bankruptcy Court will convene a hearing on the Foreign Representatives' dismissal request on April 30, 2008. Objections are due April 23. If the Bankruptcy Court approves the dismissal request, Basis Yield's liquidation will be carried out by the Cayman Court, Bill Rochelle at Bloomberg News says. The Foreign Representatives filed the Chapter 15 request in late August 2007. On the same day, the Bankruptcy Court issued a temporary restraining order pending a hearing on a preliminary injunction. In September 2007, the Bankruptcy Court entered a preliminary order pursuant to which all entities were, among others, enjoined from commencing any legal proceedings against the Foreign Representatives in connection with Basis Yield. In November 2007, the Foreign Representatives filed a summary judgment regarding the recognition of the Cayman Islands case as a foreign main proceeding. Judge Robert Gerber of the Southern New York Bankruptcy Court denied the Summary Judgment Request in January 2008 after finding that none of the papers filed by the Foreign Representatives have addressed, in any meaningful way, any of the factors that would support recognition of Basis Yield's Cayman Islands liquidation as a foreign main proceeding. Judge Gerber told the Foreign Representatives during the hearing to return to Court with answers to questions where Basis Yield actually conducted operations. About Basis Yield Basis Yield Alpha Fund (Master) is a Cayman Islands mutual fund. It operates as a master-feeder structure that allows investors' funds to be channeled through two companies operating in a single jurisdiction to a "master" company operating in the same jurisdiction. These two feeder funds are Basis Yield Alpha Fund (US), a US feeder fund for US taxable investors, and Basis Yield Alpha Fund, a non-US feeder for all other investors. On Aug. 29, 2007, Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham filed a chapter 15 petition for Basis Yield (Bankr. S.D.N.Y. Case No. 07-12762). Karen Dine, Esq. at Pillsbury Winthrop Shaw Pittman LLP represents the petitioners. (Basis Yield Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). BASIS YIELD: Grant Thornton to Lodge Claim for Assets ----------------------------------------------------- In a proceeding before the New South Wales Supreme Court in Sydney, Australia, the legal counsel for Grant Thornton said that the accounting firm is considering lodging a claim for a proportion of Basis Yield Alpha Fund (Master)'s assets, Madeliene Koo at InvestorDaily reports. The New South Wales proceeding seeks to clarify investor rights. Grant Thornton is the official liquidator of Basis Yield. According to the newspaper, legal counsel for Basis Capital Group, Basis Yield Fund's parent, said Grant Thornton's interest in the Cayman Islands-based Basis Yield Fund's assets may cause the amount of money in the fund to be reduced, and more time is needed to sort out the problem. "This issue could adversely affect the interests of the investments [the investors are] seeking clarification on," InvestorDaily said quoting Richard Gilbert, chief executive at Investment and Financial Services Association. The Basis Yield Fund, which invested in the United States sub-prime mortgage market, is in an official liquidation proceeding in the Cayman Islands after the collapse of the U.S. sub-prime market. InvestorDaily said that BT Financial Group, custodians for Challenger Financial Group, the Commonwealth Bank of Australia, and Melbourne-based teachers' superannuation fund Combined Funds have joined in the New South Wales proceedings to claw back investor funds in the Basis Yield Fund and the Basis Aust-Rim Diversified Fund administered through their wrap platforms. About Basis Yield Basis Yield Alpha Fund (Master) is a Cayman Islands mutual fund. It operates as a master-feeder structure that allows investors' funds to be channeled through two companies operating in a single jurisdiction to a "master" company operating in the same jurisdiction. These two feeder funds are Basis Yield Alpha Fund (US), a US feeder fund for US taxable investors, and Basis Yield Alpha Fund, a non-US feeder for all other investors. On Aug. 29, 2007, Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham filed a chapter 15 petition for Basis Yield (Bankr. S.D.N.Y. Case No. 07-12762). Karen Dine, Esq. at Pillsbury Winthrop Shaw Pittman LLP represents the petitioners. (Basis Yield Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). BRASKEM CAYMAN: Will Hold Final Shareholders Meeting on April 29 ---------------------------------------------------------------- Braskem Cayman Limited will hold its final shareholders' meeting on April 29, 2008, at 10:00 a.m. at Avenida das Nacoes Unidas, 4.777, Sao Paulo � SP, Brazil. These matters will be taken up during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted; and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. Braskem Cayman's shareholders agreed on March 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: Joel Benedicto Junior Avenida das Nacoes Unidas, 4.777 Sao Paulo � SP Brazil CS OFFSHORE: Sets Final Shareholders Meeting for April 29 --------------------------------------------------------- CS Offshore Fund, Ltd., will hold its final shareholders' meeting on April 29, 2008, at 2100 McKinney, Suite 1770, Dallas, Texas 75201 USA. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. CS Offshore's shareholders agreed on March 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: James W. Traweek, Jr. 2100 McKinney, Suite 1770 Dallas, Texas 75201 USA CY OFFSHORE: Will Hold Final Shareholders Meeting on April 29 ------------------------------------------------------------- CY Offshore Fund, Ltd., will hold its final shareholders' meeting on April 29, 2008, at 10:00 a.m. at Avenida das Nacoes Unidas, 4.777, Sao Paulo � SP, Brazil. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. CY Offshore's shareholders agreed on March 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: James W. Traweek, Jr. 2100 McKinney, Suite 1770 Dallas, Texas 75201 USA GRAND CIRCLE: Moody's Withdraws All Ratings on Canceled Deal ------------------------------------------------------------ Moody's Investors Service has withdrawn all the ratings for Grand Circle Holdings, LLC, including the B2 Corporate Family Rating, as well as the issue ratings of its subsidiaries. The ratings are being withdrawn because the transaction has been canceled. The last rating action occurred on March 20, 2008. Ratings withdrawn are: Grand Circle Holdings, LLC -- Corporate family rating at B2 -- Probability of default rating at B2 -- US$170 million senior secured second lien facilities rated B2 consisting of these: Grand Circle River Cruise Lines, LLC - US$145 million senior secured second lien term loan guaranteed by Grand Circle Holdings, LLC at B2 (LGD 4, 52%) GC Cayman Holdings, LTD - US$25 million senior secured second lien term loan guaranteed by Grand Circle Holdings, LLC and Grand Circle River Cruise Lines, LLC at B2 (LGD 4, 52%) Headquartered in Boston, Massachusetts, Grand Circle Holdings LLC, through its brands: Grand Circle Cruise Line, Grand Circle Travel and Overseas Adventure Travel, offers more than 100 river cruise tours, river barge tours, small-ship ocean tours, extended stay vacations, safaris, and adventure vacations. Pro- Forma revenues for the twelve-month period ended Dec. 31, 2007, was approximately US$729 million. The company has a subsidiary in Cayman Islands. TOKYO CRIMSON: Proofs of Claim Filing Deadline is April 28 ---------------------------------------------------------- Tokyo Crimson Energy Holdings Corporation's creditors have until April 28, 2008, to prove their claims to Takao Onuki, 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. Tokyo Crimson's shareholders agreed on March 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Takao Onuki CTC Building, 2232 Roxas Boulevard 1300 Pasay City, Philippines =============== C O L O M B I A =============== DOLE FOOD: S&P Lifts Debt Rating to B- & Puts '4' Recovery Rtng. ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned recovery ratings to Dole Food Co. Inc.'s unsecured debt issues and raised the issue- level ratings on this debt. The issue-level ratings on the unsecured debt were raised to 'B-' from 'CCC+'. Recovery ratings of '4' were assigned to this debt, indicating the expectation of average (30%-50%) recovery in the event of a payment default. The issue-level rating on Dole's secured loans is affirmed at 'B+'. The recovery rating on this secured debt remains unchanged at '1', indicating the expectation for very high (90%- 100%) recovery in the event of a payment default. Both the senior unsecured and secured debt issue ratings are removed from CreditWatch, where they were initially placed with negative implications on Nov. 27, 2007. Ratings List Dole Food Co. Inc. Corporate Credit Rating B-/Negative/-- Ratings Removed From CreditWatch To From -- ---- Dole Food Co. Inc. Senior Secured Local Currency B+ B+/Watch Neg Recovery Rating 1 1 Ratings Raised; Removed From CreditWatch Dole Food Co. Inc. Senior Unsecured Local Currency B- CCC+/Watch Neg Rating Assigned Dole Food Co. Inc. Senior Unsecured Recovery Rating 4 Based in Westlake Village, California, Dole Food Company Inc. -- http://www.dole.com/-- is the world's largest producer and marketer of high-quality fresh fruit, fresh vegetables and fresh-cut flowers. Dole markets a growing line of packaged and frozen foods and is a produce industry leader in nutrition education and research. Dole's fresh-cut! Flowers segment sources, imports and markets fresh-cut flowers, grown mainly in Colombia and Ecuador, primarily to wholesale florists and supermarkets in the U.S. ================== C O S T A R I C A ================== SIRVA: Court Lifts Stay on 360networks Panel's Preference Case -------------------------------------------------------------- Judge James M. Peck approved a stipulation between Sirva Inc., its debtor-affiliates and the Official Committee of Unsecured Creditors in their Chapter 11 cases, and the Official Committee of Unsecured Creditors of 360networks (USA) Inc., lifting the automatic stay with respect to a preference action pending before Judge Allan L. Gropper in the United States Bankruptcy Court. In the Adversary Proceeding styled "The Official Committee of Unsecured Creditors of 360networks (USA) Inc., et al. v. U.S. Relocation Services, Inc., Adv. Pro. No. 03-03127 (ALG)," 360networks Committee seeks the return of US$1,863,014 in preferential transfers. Judge Peck ruled that the Stipulation will enable both sides to avoid the expense of litigation concerning the Stay and the liquidation of 360networks Committee's Claim in Sirva's Chapter 11 Cases. The parties had agreed that: -- the payments will be treated as made under any plan of reorganization; -- neither the Creditors' Committee nor any other creditor will be estopped from objecting to the confirmation of a Plan, by virtue of entry of the Prepetition Claims Order; -- certain Class 4 Claims, or a similar unimpaired class of unsecured creditors, will remain outstanding at the time of confirmation; -- the Debtors will not argue that payments made under the Prepetition Claims Order will render moot any confirmation objection by the Creditors' Committee or any creditor; -- the Debtors will not amend a Plan to eliminate Class 4 without the consent of Creditors' Committee and the 360networks Committee. Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets : SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation solutions to a well-established and diverse customer base. The company handles all aspects of relocation, including home purchase and home sale services, household goods moving, mortgage services and home closing and settlement services. SIRVA conducts more than 300,000 relocations per year, transferring corporate and government employees along with individual consumers. SIRVA's brands include Allied, Allied International, Allied Pickfords, Allied Special Products, DJK Residential, Global, northAmerican, northAmerican International, Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA Settlement. The company has operations in Costa Rica. The company and 61 of its affiliates filed separate petitions for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis, L.L.P. is representing the Debtor. An official Committee of Unsecured Creditors has been appointed in this case. When the Debtors filed for bankruptcy, it reported total assets of US$924,457,299 and total debts of US$1,232,566,813 for the quarter ended Sept. 30, 2007. The combined hearing on the adequacy of the disclosure statement and the confirmation of the Debtors' proposed Plan of Reorganization is set April 18, 2008. (Sirva Inc. Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) SIRVA INC: OOIDA Wants to be Reclassified as Class 4 Claimants -------------------------------------------------------------- The Owner Operator Independent Drivers Association Class asks the U.S. Bankruptcy Court for the Southern District of New York to issue an order entitling