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 Wednesday, April 23, 2008, Vol. 9, No. 80 Headlines A R G E N T I N A AGRO GENERAL: Proofs of Claim Verification Deadline is June 13 ALITALIA SPA: Air France-KLM Formally Withdraws Binding Offer ALITALIA SPA: OAO Aeroflot to Resume Talks over Italy's Stake CAMPUS VIRTUAL: Seeks Bankruptcy Protection CEREAL PRO: Trustee to File Individual Reports on July 18 DANA CORP: Appoints Gary Convis as Chief Executive Officer INKWIL SA: Trustee to File Individual Reports on July 14 LIDER COMBUSTIBLES: Proofs of Claim Verification is Until May 8 REDLEY ARGENTINA: Proofs of Claim Verification is Until May 12 SUBTIL SA: Trustee to File Individual Reports on July 23 TELEFONICA DE ARGENTINA: Eyes 1MM Broadband Clients This Year B A H A M A S HERCULES INC: Earns US$32.4 Million in Quarter Ended March 31 B E L I Z E CONTINENTAL AIRLINES: S&P Changes Outlook to Negative on Ratings B E R M U D A CENTRAL EUROPEAN: Buys Compania de Radio Assets for RON47.2 Mil. YRC WORLDWIDE: Enters into Credit Agreement Amendment YRC WORLDWIDE: Renews Asset-backed Securitization Facility YRC WORLDWIDE: Fitch Holds Ratings on Amended & Restated Loans B R A Z I L BANCO DO BRASIL: Eyes 10% Growth in Remittances from Japan BANCO DO BRASIL: Gov't Okays Bank's Staff Increase EMBRATEL PARTICIPACOES: Earns BRL281 Million in First Quarter FERRO CORP: Revises First-Quarter 2008 Estimates HEXCEL CORP: Earns US$23.2 Million in First Quarter of 2008 HEXCEL CORP: Annual Stockholders Meeting Scheduled on May 8 IWT TESORO: Unable to File Form 10-K Due to Bankruptcy JAPAN AIRLINES: In Discussions With MUFG on JALCard Sale UAL CORP: Worse Earnings Prompt S&P to Revise Outlook to Neg. XERIUM TECH: Ernst & Young Expresses Going Concern Doubt C A Y M A N I S L A N D S AMKOR TECHNOLOGY: Eric Larson Named EVP Product Management Group AMKOR TECHNOLOGY: To Issue 1st Quarter 2008 Results on April 30 AMKOR TECHNOLOGY: Moody's Holds Junk Rating on US$190 Mln Notes CRESCENT ARENA: Proofs of Claim Filing is Until April 30 EMERALD MANAGEMENT: Sets Final Shareholders Meeting for April 30 HEMERA INVESTMENTS: Proofs of Claim Filing Deadline is April 30 NORANDA HIGHLANDS: Proofs of Claim Filing is Until April 30 ORPHEUS DESSERTS: Proofs of Claim Filing Deadline is April 30 PARMALAT SPA: Cannot Seek Damages vs Banks, Says Milan Court RON LIMITED: Proofs of Claim Filing is Until April 30 RON LIMITED: Sets Final Shareholders Meeting for April 30 SOLARIS CAPITAL: Proofs of Claim Filing Deadline is April 30 SOUTHERN HEMISPHERE: Proofs of Claim Filing Deadline is April 30 T.F. CAPITAL: Proofs of Claim Filing is Until April 30 C H I L E CODELCO: Workers Strike Prompts Shut Down of Three Copper Mines C O L O M B I A AMPEX CORP: Files 2007 Annual Report on Form 10-K with SEC AMPEX CORP: Discloses Terms of Chapter 11 Reorganization Plan SOLUTIA INC: Court OKs Payment of US$197 Mil. to Professionals SOLUTIA INC: Court Approves Settlement Pact with Air Liquide SOLUTIA INC: EOI Eyes Acquisition of Queeny Plant for US$1 Mil. C O S T A R I C A SIRVA INC: Committee Allowed to Hire BDO as Accountant & Advisor SIRVA INC: Panel Allowed to Retain Pachulski Stang as Counsel SIRVA INC: Committee Allowed to Hire TRN as Investment Banker D O M I N I C A N R E P U B L I C BANCO BHD: Int'l Finance Corp. to Invest in Bank's Parent BANCO INTERCONTINENTAL: Court Upholds Verdict on Bank Officials J A M A I C A CASH PLUS: Receiver Says More Firms Connected to Scheme NATIONAL WATER: Demanding Payment of Outstanding Debts M E X I C O ATSI COMMS: January 31 Balance Sheet Upside-Down by US$250,000 CEMEX SAB: 2008 First Quarter Net Income Up 18% to US$470 Mil. DIOMED HOLDINGS: Amex Delists Securities Effective April 28 FIAT SPA: Targets In Line With Expectations Amid Poor Car Market FREESCALE SEMICON: SigmaTel's Stockholders Approve Merger Pact FRONTIER AIRLINES: CEO Says Credit Card Companies Worried HIPOTECARIA SU: Moody's Puts Ba2 Rating to Class B Certificates WOLVERINE TUBE: Posts US$97 Mil. Net Loss in Year Ended Dec. 31 P A N A M A CHIQUITA BRANDS: Suits for Colombia Death Leave Firm Uncertain STARTECH ENV'L: Puerto Rican Firm To Install Plasma Converters P A R A G U A Y * PARAGUAY: S&P Probes Presidential Election's Effect on Ratings P E R U GRAN TIERRA: To Ring Opening Bell at American Stock Exchange U R U G U A Y BANCO ITAU: Will Acquire AFAP UnionCapital V E N E Z U E L A PETROLEOS DE VENEZUELA: To Face Exxon Mobil in Netherlands Court PETROLEOS DE VENEZUELA: To Discuss Discrepancy in Output Figures PETROLEOS DE VENEZUELA: Paying Interests to Investors on Time PETROLEOS DE VENEZUELA: Bolivian Gov't Seeks More Oil from Firm - - - - - ================= A R G E N T I N A ================= AGRO GENERAL: Proofs of Claim Verification Deadline is June 13 -------------------------------------------------------------- Donato Antonio Sarcuno, the court-appointed trustee for Agro General Rojo S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until June 13, 2008. Mr. Sarcuno will present the validated claims in court as individual reports on Aug. 12, 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 Agro General 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 Agro General's accounting and banking records will be submitted in court on Sept. 24, 2008. Mr. Sarcuno is also in charge of administering Agro General's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Donato Antonio Sarcuno Bernardo de Irigoyen 330 Buenos Aires, Argentina ALITALIA SPA: Air France-KLM Formally Withdraws Binding Offer ------------------------------------------------------------- Air France-KLM SA has formally withdrawn its binding offer to acquire the Italian government's 49.9% stake in Alitalia S.p.A., Chris Staiti and Andrew Davis write for Bloomberg News. According to Air France, the report adds, the agreement disclosed last March 14 was "no longer valid" since the conditions that needed to be met "were not fulfilled." As previously reported in the TCR-Europe, Air France, Alitalia and its unions had expressed willingness to resume sale negotiations, which was stalled after the parties failed to reach an agreement on the French carrier's offer. Air France CEO Jean Cyril Spinetta said the airline will not submit a new offer, stressing that the amended plans presented to unions during the negotiations was the only one that would enable Alitalia to return to profitability within a short time. Alitalia chairman Aristide Police had recommended the resumption of negotiations between the parties. Prime Minister-elect Silvio Berlusconi had said he might accept an acquisition of Alitalia by Air France through a tie-up between the carriers. Mr. Berlusconi said Alitalia could be a part of a "three-way merger of equals," referring to becoming a possible third carrier to the merger of Air France and KLM Royal Dutch Airlines. Bridging Loan Gianni Letta, an adviser to Mr. Berlusconi, and nephew Enrico, undersecretary to current Prime Minister Enrico Prodi, have agreed to press for a EUR150 million emergency bridging loan for Alitalia, Bloomberg News relates. They also agreed to work on a joint strategy to sell Alitalia before its cash runs out. As of March 31, 2008, Alitalia had EUR170 million in cash and credits available to finance its operations. The government had pledged to grant Alitalia a EUR300 million bridging loan if the sale of its 49.9% stake to Air France pushes through. The Italian carrier said in January 2008 that it needs to raise EUR750 million in fresh funds in the first half of the year to remain at "adequate operating levels." Italian Bidders AirOne S.p.A., banks led by Intesa Sanpaolo S.p.A. and Italian businessmen led by Mr. Berlusconi adviser Bruno Ermolli may form a group to bid for Alitalia, Bloomberg News says, citing an unsourced Il Messaggero report. According to Il Messaggero, AirOne will own 40% of the bidding vehicle, the banks will control 40% and Mr. Bruno's group will hold 20%. Mr. Berluconi has been insisting that an Italian consortium will present a binding offer for Italy's 49.9% stake in Alitalia in less than a month. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. ALITALIA SPA: OAO Aeroflot to Resume Talks over Italy's Stake ------------------------------------------------------------- OAO Aeroflot will resume negotiations with Alitalia S.p.A. over the sale of the government's 49.9% stake in the Italian carrier, Reuters reports say, citing Russian President Vladimir Putin. Mr. Putin, after speaking with Aeroflot chairman Alexander Zurabov, said the Russian carrier is ready to resume contact with Alitalia, Reuters saysreports. Mr Putin noted that Alitalia's condition is complicated, citing the airline's debt and profitability problems as well as the need to convince the Italian government and the unions to accept it possible offer, Reuters relates. Aeroflot CEO Valery Okulov, however, told Russia Today that the carrier is not planning to submit a second bid for Alitalia. "I believe we gained useful experience by participating in an Alitalia privatization tender, but the information we have does not inspire sufficient optimism to participate in the project for a second time." Italy's Prime Minister-elect Silvio Berlusconi welcomed Aeroflot's possible offer, adding that they are open to all options to revive Alitalia as along as the it remains the national carrier headquartered in the country. As reported in the TCR-Europe on April 3, 2008, an Aeroflot spokesman said it may submit a proposal to acquire Italy's stake in Alitalia S.p.A. if talks between Air France-KLM SA and the national carrier's unions fail. Aeroflot and financial backer UniCredit S.p.A. had joined the preliminary rounds of bidding for Alitalia, but withdrew. Air France has withdrawn its bid for Alitalia, but said it may resume talks with the carrier and its unions. Alitalia chairman Aristide Police has recommended the resumption of negotiations between the parties. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Finance Minister Tommaso Padoa-Schioppa had said that if the sale to Air France fails, Alitalia may seek protection from creditors and the government would appoint a special commissioner to initiate bankruptcy proceedings. CAMPUS VIRTUAL: Seeks Bankruptcy Protection ------------------------------------------- The National Commercial Court of First Instance in Buenos Aires is studying the merits of Campus Virtual S.A.'s request to enter bankruptcy protection. Don Quijote filed a "Quiebra Decretada" petition, after failing to pay its debts. 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. The debtor can be reached at: Campus Virtual S.A. Alicia Moreau de Justo 2030 Buenos Aires, Argentina CEREAL PRO: Trustee to File Individual Reports on July 18 --------------------------------------------------------- Miryam Lewenbaum, the court-appointed trustee for Cereal Pro SA's reorganization proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on July 18, 2008. Ms. Lewenbaum will be verifying creditors' proofs of claim until June 4, 2008. She will present in court a general report containing an audit of Cereal Pro's accounting and banking records on Sept. 15, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on June 13, 2009. The debtor can be reached at: Cereal Pro SA Uruguay 705 Buenos Aires, Argentina The trustee can be reached at: Miryam Lewenbaum Montevideo 666 Buenos Aires, Argentina DANA CORP: Appoints Gary Convis as Chief Executive Officer ---------------------------------------------------------- Reorganized Dana Corp. has named Gary L. Convis to the post of Chief Executive Officer. Mr. Convis was appointed to Dana's new Board of Directors in January 2008 after retiring from Toyota Motor Corporation, where he had spent more than 20 years culminating in his role as Chairman of Toyota Motor Manufacturing, Kentucky. "We are delighted to welcome Gary as Chief Executive Officer," Dana Executive Chairman John Devine, who had served as the company's acting CEO since January, said. "Gary is widely respected as one of the leading experts in lean manufacturing and management systems, including the Toyota Production System. Along with his strong leadership and global industry experience, we believe he is an ideal choice as our new Chief Executive." "I am honored by the Board's confidence in me to lead Dana," Mr. Convis said. "I'm also eager to join with our people in establishing world-class manufacturing systems and returning this great company to the leadership ranks of the global automotive supply industry." Mr. Convis comes to Dana after more than four decades spent at Toyota, General Motors Corporation, and Ford Motor Company. He became the first American president of Toyota's largest plant outside Japan, Toyota Motor Manufacturing, Kentucky, in 2001. He was named chairman of TMMK in 2006 and retired in 2007. Prior to this, in 2003, he was the first American manufacturing executive appointed by Toyota Motor Corporation to be a managing officer of TMC, as well as Executive Vice President of Toyota Motor Engineering & Manufacturing North America, Inc. Prior to serving in these roles, Convis spent 16 years at New United Motor Manufacturing, Inc., a joint venture between GM and Toyota. Previously, he spent more than 20 years in various roles with GM and Ford Motor Company. Mr. Convis earned a bachelors degree in mathematics with a minor in physics from Michigan State University. He will continue to serve as a member of Dana's board. He is also a board member of Cooper-Standard Automotive Inc. and Compass Automotive Group, Inc. Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/ -- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total assets and US$7,665,000,000 in total debts resulting in a total shareholders' deficit of US$534,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represented the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, served as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners served as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represented the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC served as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. The Debtors' Third Amended Joint Plan of Reorganization was deemed effective as of Jan. 31, 2008. Dana Corp., starting on the Plan Effective Date, operated as Dana Holding Corporation. (Dana Corporation Bankruptcy News, Issue No. 74; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Toledo, Ohio-based Dana Holding Corp. following the company's emergence from Chapter 11 on Feb. 1, 2008. The outlook is negative. At the same time, Standard & Poor's assigned Dana's US$650 million asset-based loan revolving credit facility due 2013 a 'BB+' rating (two notches higher than the corporate credit rating) with a recovery rating of '1', indicating an expectation of very high recovery in the event of a payment default. In addition, S&P assigned a 'BB' bank loan rating to Dana's US$1.43 billion senior secured term loan with a recovery rating of '2', indicating an expectation of average recovery. INKWIL SA: Trustee to File Individual Reports on July 14 -------------------------------------------------------- Marcelo Carlos Rodriguez, the court-appointed trustee for Inkwil SA's bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on July 14, 2008. Mr. Rodriguez will be verifying creditors' proofs of claim until May 29, 2008. He will present in court a general report containing an audit of Inkwil's accounting and banking records on Sept. 9, 2008. Mr. Rodriguez is also in charge of administering Inkwil's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Inkwil SA Avenida Cordoba 1886 Buenos Aires, Argentina The trustee can be reached at: Marcelo Carlos Rodriguez Cerrito 146 Buenos Aires, Argentina LIDER COMBUSTIBLES: Proofs of Claim Verification is Until May 8 --------------------------------------------------------------- Nestor Eduardo Amut, the court-appointed trustee for Lider Combustibles S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 8, 2008. Mr. Amut will present the validated claims in court as individual reports on June 19, 2008. The National Commercial Court of First Instance in San Jorge, 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 Lider Combustibles 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 Lider Combustibles' accounting and banking records will be submitted in court on Aug. 18, 2008. Mr. Amut is also in charge of administering Lider Combustibles' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Nestor Eduardo Amut Corrientes 1419, San Jorge Santa Fe, Argentina REDLEY ARGENTINA: Proofs of Claim Verification is Until May 12 -------------------------------------------------------------- Tito Jorge Gargalione, the court-appointed trustee for Redley Argentina S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until May 12, 2008. Mr. Gargalione will present the validated claims in court as individual reports on June 24, 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 Redley Argentina 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 Redley Argentina's accounting and banking records will be submitted in court on Aug. 20, 2008. Mr. Gargalione is also in charge of administering Redley Argentina's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Redley Argentina S.A. Cullen 5399 Buenos Aires, Argentina The trustee can be reached at: Tito Jorge Gargalione Medrano 833 Buenos Aires, Argentina SUBTIL SA: Trustee to File Individual Reports on July 23 -------------------------------------------------------- Angel Miragaya, the court-appointed trustee for Subtil SA's bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance in Buenos Aires on July 23, 2008. Ms. Miragaya will be verifying creditors' proofs of claim until June 9, 2008. She will present in court a general report containing an audit of Subtil's accounting and banking records on Sept. 17, 2008. Ms. Miragaya is also in charge of administering Subtil's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Subtil SA Rivadavia 5748 Buenos Aires, Argentina The trustee can be reached at: Angel Miragaya Lavalle 1718 Buenos Aires, Argentina TELEFONICA DE ARGENTINA: Eyes 1MM Broadband Clients This Year ------------------------------------------------------------- Argentine news daily La Nacion reports that Telefonica de Argentina SA expects to reach one million broadband customers by year-end. Business News Americas relates that Telefonica de Argentina has 890,000 broadband clients. Rival operator Telecom Argentina has some 783,000 broadband customers and Grupo Clarin, through its Internet providers Fibertel and Flash, has 700,000, La Nacion states. Headquartered in Buenos Aires, Argentina, Telefonica de Argentina SA -- http://www.telefonica.com.ar/-- provides telecommunication services, which include telephony business both in Spain and Latin America, mobile communications businesses, directories and guides businesses, Internet, data and corporate services, audiovisual production and broadcasting, broadband and Business-to-Business e-commerce activities. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2008, Fitch Ratings upgraded its local currency issuer default rating on Telefonica de Argentina to 'BB' from 'BB-'. The ratings agency also affirmed its 'B+' foreign currency issuer default rating on the telecom firm. Telefonica de Argentina's foreign currency rating is rated B2 by Moody's Latin America with a positive outlook. ============= B A H A M A S ============= HERCULES INC: Earns US$32.4 Million in Quarter Ended March 31 ------------------------------------------------------------- Hercules Incorporated reported net income for the quarter ended March 31, 2008 of US$32.4 million, or US$0.29 per diluted share, as compared to US$80.3 million, or US$0.70 per diluted share, for the first quarter of 2007. The first quarter of 2007 included approximately US$0.41 per diluted share from the resolution of IRS audit items for the years 1993-2003. Net income from ongoing operations for the first quarter of 2008 was US$38.9 million, or US$0.35 per diluted share, an increase of 13% per diluted share compared to US$35.7 million, or US$0.31 per diluted share, in the first quarter of 2007. Net sales in the first quarter of 2008 were US$558.3 million, an increase of 11% from the same period last year. Volume and pricing increased by 7% and 1%, respectively. Rates of exchange increased sales by 5% during the quarter, while mix was 2% unfavorable. Net sales in the first quarter of 2008 increased in all major regions of the world versus the prior year. Sales increased 6% in North America, 25% in Latin America, 15% in Europe (3% excluding the impact of the Euro), and 15% in Asia Pacific. Reported profit from operations in the first quarter of 2008 was US$67.4 million, a decrease of 4% compared with US$70.2 million for the same period in 2007. Profit from ongoing operations in the first quarter of 2008 was US$74.6 million, an increase of 3% compared with US$72.2 million in the first quarter of 2007. Cash flow from operations for the quarter ended March 31, 2008 was US$29.7 million as compared to US$25.8 million for the same period last year. "The first quarter results continue to demonstrate both the strength of our global businesses and of our Company," said Craig A. Rogerson, President and Chief Executive Officer. "We delivered another quarter of strong sales growth, solid earnings and cash flow against the backdrop of a challenging U.S. economy and elevated and escalating raw material costs." Interest and debt expense was US$16.7 million in the first quarter of 2008, down US$0.5 million or 3% compared with the first quarter of 2007, reflecting lower outstanding debt balances and improved debt mix, partially offset by losses on cross currency interest rate swaps. Total debt was US$807.6 million at March 31, 2008, an increase of US$11.6 million from year-end 2007. Cash and cash equivalents were US$99.1 million at March 31, 2008, as compared to US$116.5 million at year-end 2007. Capital spending was US$22.1 million in the first quarter as compared to US$24.2 million in the same period last year. Cash outflows for severance, restructuring and other exit costs were US$6.1 million in the quarter. The company purchased 1.3 million shares of common stock at a cost of US$23.3 million during the first quarter of this year. The company has now purchased 4.1 million shares for US$77.7 million under its US$200 million authorization. Segment Results � Ongoing Basis In the Aqualon Group, net sales increased 17% while profit from ongoing operations was flat in the first quarter as compared with the first quarter of 2007. All business units had increased sales in the first quarter as compared to the prior year. In the aggregate, the sales increase was driven by 14% higher volume, including 2% from the 2007 specialty surfactants acquisition, 1% higher prices and 5% favorable rates of exchange, partially offset by 3% unfavorable product mix. Coatings and construction sales increased 19% in the first quarter of 2008 as compared to the same period of last year, due to 15% higher volume, 1% increased pricing and 7% favorable rates of exchange, partially offset by 4% negative mix. Sales into the coatings markets were up 19% in the first quarter of 2008 as compared to the same period of last year. Strong volume growth in China, the Middle East, South America and Eastern Europe, offset a soft North American market. Construction market sales increased 19% as compared to the first quarter of last year. Strong growth was achieved in Asia, the Middle East and Eastern Europe, whereas other regions were lower. Pricing improvements were achieved in both the coatings and construction markets. Regulated industry sales increased 14% in the first quarter of 2008 as compared to the same period of last year, primarily due to 5% higher volume, 3% improved product mix, 2% increased pricing and 4% favorable rates of exchange. Sales were higher in all segments. Sales increased in the pharmaceutical, personal care and food markets by 29%, 14% and 6%, respectively, as compared to the first quarter of last year. Growth was achieved in all major regions of the world. Energy and specialties sales increased 15% in the first quarter of 2008 as compared to the same period of last year. The increase was due to 19% higher volumes, 1% higher prices, and 3% favorable rates of exchange, partially offset by 8% unfavorable product mix. Energy sales increased 12% and specialties increased 18%, as compared to the prior year. Sales of both energy and specialty businesses grew in most major regions of the world. Price increases were achieved across all product families. Profit from ongoing operations was flat, primarily as a result of the higher volume and the associated contribution margin, increased selling prices, lower pension expenses and favorable rates of exchange, offset by higher raw material, transportation and utility costs and planned and unplanned shutdowns. Margins were adversely impacted as price increases did not fully offset higher raw material, freight and utility costs, and by the previously announced incident at our methylcellulose joint venture in China and a planned maintenance shutdown at the company's Doel, Belgium MC plant. "Aqualon�s strong top line growth reflects our global scale and presence as well as continued growth in fast growing markets including China, the Middle East and Latin America," said Mr. Rogerson. "Aqualon�s global diversity enabled us to offset weaker demand in some of our North American markets." In the Paper Technologies and Ventures Group, net sales in the first quarter increased 7% and profit from ongoing operations increased 7% compared with the same quarter in 2007. Paper Technologies sales increased 2% due to 6% favorable rates of exchange, partially offset by 1% lower prices, and 3% unfavorable product mix. Volume in the aggregate was flat. Sales in fast growing markets were up 16% compared to the prior year. Modest price increases were achieved in North America while pricing was lower in both Europe and Asia. Sales of new products continued to drive growth in overall sales and profitability. Ventures sales increased 23% primarily due to 7% higher volume, 7% higher prices, 4% improved product mix, and 5% favorable rates of exchange. Sales increased in all Ventures business units. Significant growth was achieved in both building products and synthetic lubricants. Pricing was favorable in most Venture businesses. The increase in profit from ongoing operations reflects favorable rates of exchange, higher volume and improved selling prices in Ventures, and lower pension costs, partially offset by higher raw material and utility costs, and increased SG&A costs. "The Venture businesses continue to deliver improved results, while many of our global Paper Technology markets are growing more modestly," commented Mr. Rogerson. "Sales of higher margin new products continue to support margins overall." Outlook "We remain optimistic about revenue, earnings and cash flow growth in 2008," said Mr. Rogerson. "We expect significant raw material, freight and utility cost headwinds, but expect announced and additional price increases to partially offset these costs. Despite these challenges, we expect profitability to improve through higher utilization of our recent capacity expansions and the impact of our new product introductions. We continue to pursue acquisition opportunities to expand our product offerings and accelerate value creation for our shareholders." Wilmington, Delaware-based Hercules Inc. -- http://www.herc.com -- (NYSE:HPC) manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets. Outside the United States, the company has subsidiaries in Argentina, Bahamas, Belgium, Brazil, Hong Kong, India, Indonesia and France. * * * As reported in the Troubled Company Reporter-Latin America on April 14, 2008, Standard & Poor's Ratings Services raised its ratings on Hercules Inc., including the corporate credit rating to 'BB+' from 'BB'. S&P said the outlook is stable. =========== B E L I Z E =========== CONTINENTAL AIRLINES: S&P Changes Outlook to Negative on Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services has revised its rating outlook on Continental Airlines Inc. (B/Negative/B-3) to negative from stable. S&P also placed its ratings on selected enhanced equipment trust certificates that are secured by regional jets on CreditWatch with negative implications. "The negative outlook is based on the earnings and cash flow impact of rapidly increasing fuel prices and a weak U.S. economy," said Standard & Poor's credit analyst Philip Baggaley. "While Continental continues to report better operating results than its peer 'legacy carriers,' including a relatively modest US$80 million first-quarter 2008 net loss, there is a clear risk of deterioration in its financial profile due to the very difficult airline industry outlook," the analyst continued. The CreditWatch listing of selected enhanced equipment trust certificates reflects concerns that collateral values of 50-seat regional jets, which are less fuel-efficient on a per-seat basis than most other planes, will come under pressure because of continued high fuel prices. Neither the outlook change nor the CreditWatch listing are related to the impact of the recently announced merger agreement between Delta Air Lines Inc. and Northwest Airlines Corp., although S&P does believe that Continental may enter into a merger of its own in response. In that event, S&P would place its ratings on Continental on CreditWatch. The 'B' long-term corporate credit rating on Houston-based Continental reflects its participation in the high-risk airline industry and a heavy debt and lease burden, but also better- than-average operating performance among its peer large U.S. hub-and-spoke airlines. S&P expects Continental, like other U.S. airlines, to report materially worse earnings and cash flow in 2008 than last year (when the company reported an impressive US$566 million of pretax earnings), because of much higher fuel prices and a weak U.S. economy. The company's first-quarter loss, while likely to be the best result among peer legacy carriers, showed the impact of higher fuel prices (US$433 million higher, including the indirect impact through payments to regional partner airlines). Continental, the fourth-largest U.S. airline, serves markets mainly in the southern and eastern U.S. from hubs at Houston; Newark, New Jersey; and Cleveland, Ohio. International routes serve the central Pacific, selected Asian destinations, Latin America, and Europe. Continental's route system is more balanced among these various markets than those of other large U.S. airlines, reducing risk somewhat. Although Continental currently has adequate liquidity and will likely report narrower losses than similar U.S. airlines, worse- than-expected fuel prices and economic weakness could erode the company's financial profile and cause a downgrade. If Continental is able to weather the downturn and industry conditions improve, S&P could revise the outlook to stable. If Continental announces a merger agreement, S&P will place its ratings on the company, excepting 'AAA' rated aircraft-backed debt insured by bond insurers, on CreditWatch. The CreditWatch implications would depend on particulars of the announced transaction. Our CreditWatch review of selected enhanced equipment trust certificates secured by regional jets will focus on Continental's expected need to maintain control of these planes in any future bankruptcy and on expected market values of the planes in view of much higher fuel prices. 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 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. ============= B E R M U D A ============= CENTRAL EUROPEAN: Buys Compania de Radio Assets for RON47.2 Mil. ---------------------------------------------------------------- Central European Media Enterprises Ltd. has acquired the assets of Compania de Radio Pro s.r.l. which owns the two leading radio channels in Romania: -- Pro FM, a pop music channel reaching an average all day audience share of about 7% in the 15-35 year old national demographic. -- Info Pro, a national infotainment channel launched in 2004. Total consideration was RON47.2 million (approximately US$20.6 million). Compania de Radio Pro is a member of the Media Pro group of companies, in which Central European Media has an 8.7% economic interest and Chief Operating Officer Adrian Sarbu, holds the remaining interest. The purchase price was set based on an independent valuation. Pro FM delivered revenues of EUR3.3 million (US$5.2 million) in 2007 with an EBITDA margin of 42%. The Info Pro channel is still in a startup stage and delivered revenues in 2007 of EUR0.6 million (US$0.9 million) and an EBITDA loss of EUR1 million (US$1.6 million). The close collaboration of the Compania de Radio Pro channels with MTV Romania creates an opportunity for the company to enhance its exposure to the youth demographic and capitalize on potential cross-promotional synergiesand economies of scale. The acquisition will also increase the company's ability to offer bundled advertising services to customers across the entire Pro TV group. Central European Media Chief Executive Officer, Michael Garin commented: "We are thrilled to be able to acquire the profitable Radio Pro channels to further develop our expansion into the youth market in Romania. The combination of MTV Romania, our leading web sites and the Radio Pro channels will further enhance our multichannel strategy and allow us to offer a broader range of audience to our advertisers." Mr. Sarbu, added: "Media Pro has been building the Radio Pro business since 1993 and established radio brands that can now successfully support the growth of CME's new channel, MTV Romania. We also look to expand our multi-channel strategy through radio into other CME territories in the future. With an established channel like Pro FM operating at a similar EBITDA margin to CME's most successful TV channels, we view this form of media as a strong addition to our current business model." About Central European Media Based in Bermuda, Central European Media Enterprises Ltd., is a TV broadcasting company with leading networks in six Central and Eastern European countries. Launched in 1994, the company and its partners now operate 16 channels in six countries, including TV Nova, Nova Cinema and Galaxie Sport in the Czech Republic; PRO TV, PRO Cinema, Pro International, Sport.ro, MTV and Acasa in Romania; Nova TV in Croatia, TV Markiza in the Slovak Republic; POP TV and Kanal A in Slovenia; and Studio 1+1, Kino and Citi in Ukraine. For the year ended Dec. 31, 2007, the company generated segment revenues of US$840 million and segment EBITDA of US$320 million. Central European Media is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV". * * * As reported in the Troubled Company Reporter-Europe on March 5, 2008, Moody's Investors Service upgraded the corporate family rating of Central European Media Enterprises Ltd to Ba2 from Ba3. Concurrently, the ratings on the company's senior unsecured notes were also upgraded to Ba2 from Ba3. Moody's outlook for all ratings is stable. YRC WORLDWIDE: Enters into Credit Agreement Amendment ----------------------------------------------------- YRC Worldwide Inc. disclosed in a regulatory filing that on April 18, 2008, with certain of its foreign subsidiaries, entered into Amendment No. 1 to the Credit Agreement, dated as of Aug. 17, 2007, among the company, the foreign subsidiaries and the lenders and agents party. The Credit Agreement, as amended, continues to provide the Company with a US$950 million senior revolving credit facility, including sublimits available for borrowings under certain foreign currencies, and a US$150 million senior term loan. The Credit Agreement Amendment: -- increases, until such time as the company receives a rating of BBB- or better from Standard & Poor�s and Ba1 or better from Moody�s, in each case with a stable outlook (the �Fall Away Event�), the company�s Total Leverage Ratio (as defined in the Credit Facility) from 3.0x to (i) 3.75x for each of the fiscal quarters ended March 31, June 30 and Sept. 30, 2008 and (ii) 3.5x for each fiscal quarter thereafter; this was a proactive amendment however, as the company�s Total Leverage Ratio for the fiscal quarter ended March 31, 2008 was below 3.0x; -- increases the interest rates and fees applicable to the revolving credit facility and term loan as set forth in the definition of �Applicable Rate� in Section 1.01 of the Credit Facility; effective with this amendment, the interest rate on amounts outstanding under the revolving credit facility and term loan is LIBOR plus 100 basis points and LIBOR plus 125 basis points, respectively, and the facility fee for the revolving credit facility is 25 basis points; the company expects interest expense to increase US$1.5�4.0 million annually with this amendment; -- requires the company and its domestic subsidiaries to pledge the following collateral (i) receivables not secured by the ABS facility or the company�s captive insurance companies, (ii) intercompany notes not secured by the ABS facility, (iii) fee-owned real estate parcels that have an estimated internal market value of US$2.5 million or greater, (iv) 100% of the stock of all domestic subsidiaries of the Company and (v) 65% of the stock of first-tier foreign subsidiaries of the company other than the company�s captive insurance companies; -- requires the Company and its subsidiaries to pledge additional assets, including rolling stock and the remaining real estate if the Total Leverage Ratio exceeds 3.5x at the end of any Test Period (as defined in the Credit Facility) or if the company receives a rating of BB- or worse from Standard & Poor�s and Ba3 or worse from Moody�s prior to the Fall Away Event; -- requires each domestic subsidiary of the company except for YRRFC to guarantee the credit facility; and -- modifies certain negative covenants (and in certain instances introduces new negative covenants) related to permitted liens, permitted acquisitions, permitted asset sales (and certain related mandatory prepayments from the proceeds thereof) and restricted payments. Upon the occurrence of the Fall Away Event: (i) security interests in pledged collateral will be released; (ii) all negative covenant provisions (including the company�s Total Leverage Ratio) and the mandatory prepayment provision will revert to pre-Credit Agreement Amendment levels and concepts; and (iii) only material domestic subsidiaries and subsidiaries of the Company that guarantee certain other indebtedness of the Company or its subsidiaries will remain as guarantors. The holders of USF Bonds and Roadway Bonds, each as defined in the Credit Facility, will receive an equal and ratable lien (pursuant to the terms of the respective bond indentures) in certain assets that are pledged under the Credit Facility. Pursuant to Section 1008 of the USF Bond indenture, holders of USF Bonds are entitled to an equal and ratable lien with respect to stock of the �significant� subsidiaries of YRC Regional Transportation and any intercompany debt among Regional and its �significant� subsidiaries. Currently, the �significant� subsidiaries are USF Holland, USF Reddaway and YRC Logistics Services. Pursuant to Section 4.06(a) of the Roadway Bond indenture, holders of Roadway Bonds are entitled to an equal and ratable lien with respect to stock of subsidiaries of Roadway LLC, intercompany debt among Roadway and its subsidiaries and certain property owned by Roadway and its subsidiaries, including certain real estate and rolling stock. A full-text copy of Amendment No. 1, dated as of April 18, 2008, to the Credit Agreement, dated as of August 17, 2007, among the Company, the Canadian Borrower, the UK Borrower, the financial institutions party thereto and JPMorgan Chase Bank, National Association, as Administrative Agent, may be viewed for free at: http://ResearchArchives.com/t/s?2af0 YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people. The company has subsidiaries in Bermuda, the United Kingdom, Netherlands, Singapore, Hong Kong and Mexico. YRC WORLDWIDE: Renews Asset-backed Securitization Facility ---------------------------------------------------------- YRC Worldwide Inc. disclosed in a regulatory filing that on April 18, 2008, it renewed its asset-backed securitization facility. The renewed facility will expire on April 16, 2009. The renewed facility: (i) reduces the financing limit available under the ABS facility from US$700 million to US$600 million, (ii) reduces the letters of credit sublimit from US$325 million to US$125 million, (iii) modifies the Total Leverage Ratio consistent with the Credit Agreement Amendment recently entered, (iv) increases the loss and discount reserve requirements and (v) increases the administrative fee (calculated based on financing limit) and program fee (calculated based on utilization) to 50 basis points and 75 basis points, respectively. The interest rate under the ABS facility for conduits continues to be a variable rate based on A1/P1 rated commercial paper (weighted average interest rate of 3.35% at March 31, 2008), plus the program fee. The interest rate for Wachovia Bank, National Association is one-month LIBOR, plus 100 basis points, as Wachovia will no longer use a conduit to purchase receivables under the ABS facility. The Company expects interest expense to increase up to US$4.0 million annually with this renewal. The ABS facility utilizes the accounts receivables of these subsidiaries of the company: -- Yellow Transportation, Inc.; -- Roadway Express, Inc.; -- USF Holland Inc.; and -- SF Reddaway Inc. Yellow Roadway Receivables Funding Corporation, a special purpose entity and wholly owned subsidiary of the Company, operates the ABS facility. Under the terms of the renewed ABS facility, the Originators may transfer trade receivables to YRRFC, which is designed to isolate the receivables for bankruptcy purposes. A third-party conduit or committed purchaser must purchase from YRRFC an undivided ownership interest in those receivables. The percentage ownership interest in receivables that the conduits or committed purchasers purchase may increase or decrease over time, depending on the characteristics of the receivables, including delinquency rates and debtor concentrations. In connection with the renewal of the ABS facility, the Company unconditionally guaranteed to YRRFC the full and punctual payment and performance of each of the Originators obligations under the ABS facility. YRRFC has pledged its right, title and interest in the guarantee to the Administrative Agent, for the benefit of the purchasers, under the Third Amended and Restated Receivables Purchase Agreement. A full-text copy of the Third Amended and Restated Receivables Purchase Agreement may be viewed for free at: http://ResearchArchives.com/t/s?2af1 YRC Worldwide Inc. (Nasdaq: YRCW) -- http://www.yrcw.com/-- is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, USF Holland, USF Reddaway, and USF Glen Moore. The enterprise provides global transportation services, transportation management solutions and logistics management. The portfolio of brands represents a comprehensive array of services for the shipment of industrial, commercial and retail goods domestically and internationally. Headquartered in Overland Park, Kansas, YRC Worldwide employs approximately 60,000 people. The company has subsidiaries in Bermuda, the United Kingdom, Netherlands, Singapore, Hong Kong and Mexico. YRC WORLDWIDE: Fitch Holds Ratings on Amended & Restated Loans -------------------------------------------------------------- Following the announcement that YRC Worldwide Inc. (NASDAQ: YRCW) has amended and restated its credit facility agreement, Fitch Ratings has taken these rating actions on YRCW and its Roadway LLC and YRC Regional Transportation, Inc. subsidiaries: YRC Worldwide Inc. -- Issuer Default Rating (IDR) affirmed at 'BB+'; -- Credit facilities affirmed at 'BB+'; -- Senior unsecured downgraded to 'BB' from 'BB+'. Roadway LLC -- IDR affirmed at 'BB+'; -- Senior notes downgraded to 'BB' from 'BB+'. YRC Regional Transportation, Inc. -- IDR affirmed at 'BB+'; -- Senior notes downgraded to 'BB' from 'BB+'. Fitch's ratings apply to approximately US$1 billion in consolidated debt and a US$950 million revolving credit facility. The Rating Outlook for YRCW is Negative. The most significant revisions to YRCW's credit facility are a change in the facility's leverage covenant and a pledge of collateral to secure the facility. The leverage covenant, which is based on the ratio of balance sheet debt to 12 months EBITDA, has been raised to 3.75 times (x) for the first three quarters of 2008. The ratio will then decline to 3.5x in the fourth quarter of 2008 through the facility's maturity in 2012. The prior leverage covenant was 3.0x for the duration of the agreement. In the event of certain credit ratings upgrades, the collateral securing the credit facility will be released, the leverage ratio covenant will decline to 3.0x and certain other provisions in the credit facility will revert back to their pre- amended status. In return for the loosened covenant, YRCW has agreed to secure the facility with a combination of hard assets (primarily real estate), a portion of various subsidiaries' accounts receivable not already pledged as collateral under YRCW's asset backed securitization (ABS) facility agreement, 100% of the capital stock of YRCW's U.S. subsidiaries, 65% of the stock of certain first-tier foreign subsidiaries and a security interest in certain intercompany notes. According to the indenture covering the outstanding US$225 million in Roadway notes due in December, the Roadway notes will also be secured by certain Roadway collateral pledged to the credit facility, including certain Roadway properties. In addition, the capital stock of the YRC Regional Transportation subsidiaries that has been pledged as collateral for the credit facility will also be shared as collateral with the two series of outstanding YRC Regional Transportation notes. In addition to the revisions to its credit facility, YRCW has also accelerated the renewal of its ABS facility. The facility had been scheduled to mature next month. The ABS facility, which is essentially a receivables sales program, is a key component of the company's liquidity, and YRCW regularly uses it for cash borrowings, as well as to back letters of credit. The limit on the renewed facility has been reduced to US$600 million from US$700 million, however, to account for the actual level of receivables generally available to support the program. The loosening of the leverage covenant significantly reduces the likelihood of a near-term default on the credit facility. Although YRCW has been slowly reducing its debt load over the past several years, a very weak industry demand environment has driven a sharp decline in YRCW's EBITDA over the past 12 months. Full-year EBITDA declined to US$489 million in 2007 from US$837 million in 2006, raising the company's year-end EBITDA leverage to 2.5x from 1.5x. With the sharp decline in EBITDA, concern had been growing recently that YRCW's EBITDA leverage would come uncomfortably close to, or might exceed, the prior covenant level of 3.0x by mid-2008. The addition of 75 basis points to the covenant in the first three quarters of this year is expected to provide sufficient headroom to avoid a covenant- triggered default in the near term. However, the covenant level's decline to 3.5x in the fourth quarter and beyond could be a concern if industry conditions continue to worsen throughout the year. The downgrade of the senior unsecured ratings reflects the addition of collateral to secure the credit facility, which has put the holders of the company's existing unsecured notes in a junior position in YRCW's capital structure. In addition, although the Roadway and YRC Regional Transportation notes are now secured by some collateral, Fitch believes the collateral coverage of these notes is relatively low, effectively putting holders of these notes in a position similar to that of the unsecured holders. As a result, Fitch has downgraded the secured Roadway and YRC Regional Transportation notes, as well. The Negative Rating Outlook reflects the near-term challenges that YRCW continues to face with the slowing of the U.S. economy. Although industry shipment levels appear to be stabilizing somewhat, they are stabilizing at weakened levels, and there are no indications yet of a significant improvement in demand in the near term. Should a persistently weak industry environment drive further declines in YRCW's financial performance, Fitch may downgrade the ratings further. =========== B R A Z I L =========== BANCO DO BRASIL: Eyes 10% Growth in Remittances from Japan ---------------------------------------------------------- Banco do Brasil SA expects a 10% increase in remittances from its Brazilian clients living in Japan this year. Business News Americas relates that Banco do Brasil has seven branches in Japan and partnerships with: -- Sumitomo Bank, -- Seven Bank, and -- the Japanese postal service. Banco do Brasil told BNamericas that its surveys indicate that Japan-based customers send about 48% of their salaries to Brazil on average. Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * On Feb. 29, 2008, Moody's Investors Rating Service assigned a Ba2 foreign currency deposit rating to Banco do Brasil. BANCO DO BRASIL: Gov't Okays Bank's Staff Increase -------------------------------------------------- The Brazilian State news daily reports that Banco do Brasil SA has secured approval from the Brazilian government to increase its workers to up to 91,000. Business News Americas relates that the decision includes Banco do Brasil's 13 units. Published reports in Brazil say that Banco do Brasil has up to 83,000 workers and it is now set to begin hiring about 8,000 new staff for its expansion. Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * On Feb. 29, 2008, Moody's Investors Rating Service assigned a Ba2 foreign currency deposit rating to Banco do Brasil. EMBRATEL PARTICIPACOES: Earns BRL281 Million in First Quarter ------------------------------------------------------------- Embratel Participacoes SA's net profit increased 113% to BRL281 million in the first quarter 2008, compared to BRL132 million in the same quarter last year. Business News Americas relates that Embratel Participacoes' net revenues rose 11.2% to BRL2.35 billion in the first quarter 2008, from BRL2.11 billion in the first quarter 2007. According to BNamericas, Embratel Participacoes' long distance voice revenues account for 52.3% of its total revenues in the first quarter 2008, compared to 55.3% in the same period last year. BNamericas notes that Embratel Participacoes' revenues from national long distance calls increased 6.3% in the first quarter 2008, from the first quarter 2007, and revenues from international calls dropped 4.4%. The report says that about 123,000 lines of 64 kilobits per second were added for data transmission in the first quarter 2008. Embratel Participacoes' data services revenues rose 9.9% in the first quarter this year compared to the same quarter last year due to initiatives aimed at corporate and residential customers. BNamericas states that Embratel Participacoes' Ebitda rose 17.5% to BRL629 million in the first quarter 2008, compared to BRL535 million in the same quarter last year. The Ebitda margin was 26.7% in the first quarter this year, compared to 25.3% in the first quarter last year. Embratel Participacoes' capex was BRL291 million in the first quarter 2008 -- 57% were invested in access, infrastructure and local services, 19.6% in network infrastructure, 13.7% in data services and Internet, 6.3% in the firm's satellite unit Star One, and 3.4% in other areas, BNamericas states. Embratel Participacoes SA offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and Internet transmission, and is present all over the country with its satellite solutions. Embratel is the market leader in revenues with Long Distance, Domestic and International calls. * * * Embratel Participacoes is rated by Moody's: * local currency issuer rating -- B1; and * senior unsecured debt -- B2. FERRO CORP: Revises First-Quarter 2008 Estimates ------------------------------------------------ Ferro Corporation said that earnings per share for the 2008 first quarter are now expected to be in the range of 16 to 18 cents, including approximately 10 cents per share in special charges, or 26 to 28 cents excluding special charges. As reported by Thomson First Call, analysts expect first-quarter earnings of 20 cents per share, excluding special charges. Previously, the company had estimated that earnings for the quarter would be in the range of 12 to 17 cents per share, including 5 cents of special charges. The Company now expects net sales for the first quarter to be approximately US$600 million, exceeding its previous estimates of sales between US$550 million and US$575 million. The increased sales are due to better than expected sales volume, product pricing actions and favorable changes in foreign exchange rates. The improved earnings outlook is primarily the result of better than forecasted results from the Company�s Inorganic Specialties Group and lower than anticipated selling, general and administrative expenses. The company�s revised first-quarter earnings estimate includes pretax costs of approximately US$3.3 million related to a previously announced manufacturing interruption at its Bridgeport, New Jersey manufacturing location in December 2007. The manufacturing issues at the site have been corrected and are not expected to impact future financial results. �It is encouraging to announce improved performance estimates in the midst of difficult macroeconomic conditions,� said Ferro Chairman, President and Chief Executive Officer James F. Kirsch. �The people of Ferro have been working hard to restructure our business, reduce costs and manage the extraordinary volatility in raw material costs. We have built a strong foundation for sustainable improvement in the business, and it is beginning to translate into improved results for our shareholders. We will continue on the path we have established to complete our restructuring programs and improve our business operations across the entire company.� Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a supplier of technology-based performance materials for manufacturers. Ferro materials enhance the performance of products in a variety of end markets, including electronics, solar energy, telecommunications, pharmaceuticals, building and renovation, appliances, automotive, household furnishings, and industrial products. Headquartered in Cleveland, Ohio, the company has approximately 6,300 employees globally and reported 2007 sales of US$2.2 billion. The company has subsidiaries in Argentina, Australia, France, Germany, Brazil, China, Spain , Hong Kong and Korea, among others. Ferro Corp. carries Moody's corporate family rating of B1 with a positive outlook. This ratings was assigne don May 2007. HEXCEL CORP: Earns US$23.2 Million in First Quarter of 2008 ----------------------------------------------------------- Hexcel Corporation results for the first quarter of 2008. Net sales from continuing operations during the quarter were US$344.5 million, 21.9% higher than the US$282.6 million reported for the first quarter of 2007. Operating income for the first quarter was US$36.4 million, compared to US$29.9 million for the same quarter last year. The 2008 operating income included US$2.7 million of pension settlement expense associated with the termination of Hexcel�s U.S. defined benefit pension plan. Net income from continuing operations for the first quarter of 2008 was US$23.2 million, or US$0.24 per diluted share, compared to US$14.8 million or US$0.15 per diluted share in 2007. Adjusted net income from continuing operations for the first quarter of 2008 was US$0.23 per share, which excludes the one- time items of the termination of Hexcel�s U.S. defined pension plan and the US$2.5 million reversal of valuation allowances against U.S. deferred tax assets. Chief Executive Officer Comments Mr. Berges commented, �This was a strong start for 2008 and continues the momentum from the second half of 2007. Sales and adjusted operating income for the quarter were again at record levels, and we�re well on our way to hitting our full year guidance as our adjusted diluted earnings per share (excluding the one-time items) for the quarter was a solid US$0.23, as compared to US$0.15 last year.� �Sales for commercial aerospace were up sharply across the board, a total of 29.6% in constant currency over the first quarter of 2007; limiting our ability to serve other industrial markets for the third quarter in a row. We are accelerating our plans for adding capacity to support what we now see as the continued strong demand. We are now making first fiber on our new Spanish line, and have begun to qualify product from our new German and French prepreg plants. We expect each of them to cover their incremental costs in the second half of this year. The new China prepreg plant for wind energy and our next carbon fiber line are expected to begin production by October. We are now targeting the remaining tranche of our previously announced carbon fiber and precursor capacity to come on line in the second half of next year versus the original 2010 target.� �We are in discussions with all of our customers who serve the B787 to understand their demand plans for the coming quarters. While it�s too early to comment on the impact of the delay to our sales, we have updated our estimated sales content per B787 to now be in the US$1.3 � US$1.6 million range, up from prior estimates of US$1.0 - US$1.3 million. A380 sales continued their steady recovery though they are still below the levels in the first half of 2006. Despite the recent negative news about U.S. airline profitability and the economy in general, Airbus and Boeing continue to expand their huge backlog with reported first quarter orders exceeding deliveries by 2.5 times.� �We are reaffirming all of our guidance targets including operating margins of 12 � 12.5% even though sales inflated by current exchange rates could depress the ratio and the B787 schedule impact is likely to reduce our near term outlook for that program. We now expect our full year earnings to be at the high end of the US$0.90-US$0.95 range.� Markets Commercial Aerospace Commercial aerospace sales of US$191.9 million grew 33.3% (29.6% in constant currency) for the quarter over first quarter 2007. Sales to Airbus and its subcontractors grew over 35% in the quarter and were about equal to the total sales from Boeing and its subcontractors. Sales to �other aerospace� which includes a wide range of aircraft producers as a group were up over 25% for the fifth consecutive quarter as both regional jets and turboprop build rates have been strong. Industrial Industrial sales of US$78.3 million for the first quarter of 2008 had trends generally consistent with those of the second half of 2007 with sales other than wind energy down from the prior year due to soft winter recreation sales and capacity constraints. On a constant currency basis, industrial sales were down 4.9% for the quarter compared to first quarter 2007, but essentially flat sequentially. Wind energy revenue had strong double digit growth both sequentially and year over year as new prepreg capacity is now coming on line in our Austrian operations. The company now expects wind to be more than 50% of our industrial segment sales for the year. Space & Defense Space & Defense sales of US$74.3 million for the quarter were 10.9% higher compared to the first quarter of 2007 in constant currency. In the aggregate, this market performed as expected with continued strength in global rotorcraft sales which now account for almost half of this segment. Exchange rate impacts With the average dollar to the Euro rate about 14% weaker in the first quarter of 2008 as compared to 2007, the impact of exchange rates on this quarter�s results are significant. There are several impacts to Hexcel; our European aerospace sales are primarily denominated in dollars, but have a significant portion of their costs in Euros and GBP; more than one-third of our total sales are denominated in Euros and GBP, so the weakening dollar causes these sales (and their related costs and profits) to translate higher; and we have overhead costs, capital expenditures, working capital accounts, etc. denominated in Euros and GBPs that all translate into higher balances as the dollar weakens. The company's guidance included a net-after- hedging reduction of operating income in 2008 by over US$5 million as compared to 2007. But should the dollar continue to weaken as it has this quarter, every 5% move of the dollar results in an increase in annualized sales of approximately US$25 million and operating income decrease of about US$1 million. These impacts, of course, reduce the company's gross margin and operating income percentages. The difference in exchange rates lowered this quarter�s total company gross margin by about 150 basis points and operating income by over 100 basis points as compared to last year. Operations Gross margin decreased to 23.3% for the quarter compared to 25.3% for the first quarter of 2007. The benefits of higher volume were offset by the impact of exchange rates and about US$3 million of incremental costs and start-up activities associated with the new facilities in Spain, France, Germany and China. All of the above expansion costs and almost all of the exchange exposure is in our Composite Materials segment who provide materials to wind energy and to our European commercial aerospace customers. This segment�s adjusted operating income of 15.6% would have been over 17% on a constant dollar basis and about 18% excluding the new plant costs. While we have little control over currency swings, the company says it expects the incremental costs of all but the China plant to be at least break-even at the operating level for the second half of 2008. Adjusted operating income for our Engineered Products segment increased to 12.0% as compared to 8.8% in 2007. Last year�s results were impacted by the start-up and research and technology costs associated with the development and qualification of our new HexMC(R) products. Tax The tax provision was US$9.6 million for the first quarter of 2008 which included a US$2.5 million benefit from the reversal of valuation allowances against U.S. deferred tax assets. Excluding this benefit, the effective tax rate for the quarter was 38.5%. The company continues to review strategies to improve our tax efficiency. Cash Total debt, net of cash as of March 31, 2008 was US$345.3 million, an increase of US$57.5 million during the quarter. Approximately US$35 million of the increase was in accounts receivable as a result of the higher sales. Other uses of cash during the first quarter included the final cash contributions to the U.S. defined pension plan and annual cash incentive awards, as well as other working capital needs arising from sales growth. Capital spending for the quarter was US$43.9 million compared to US$15.6 in the first quarter of 2007, primarily due to the accelerated progress being made on our fiber expansion plans. High first quarter capital spending, as well as additions to inventory for growing sales contributed to the increase in accounts payable. The company completed the termination of the U.S. defined benefit pension plan, which resulted in a US$2.7 million charge during the quarter and US$6.4 million in cash contributions to the plan. In total, the charges for the termination were US$12.1 million with cash contributions to the plan of just under US$10 million. The anticipated savings is approximately US$2 million per year in pension costs. Hexcel will host a conference call at 10:00 A.M. ET, tomorrow, April 22, 2008 to discuss the first quarter results and respond to questions. The telephone number for the conference call is (913) 312-0693 and the confirmation code is 9942911. The call will be simultaneously hosted on Hexcel�s web site at www.hexcel.com/investors/index.html. Replays of the call will be available on the web site for approximately three days. Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced composites company. The company develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications such as wind turbine blades. The company has subsidiaries in Austria, the United Kingdom, Spain, Hong Kong, Japan and Brazil. * * * Hexcel carries Moody's Ba3 corporate family rating with a stable outlook. This rating was placed on April 2007. HEXCEL CORP: Annual Stockholders Meeting Scheduled on May 8 ----------------------------------------------------------- Hexcel Corporation's Annual Meeting of Stockholders will be held on May 8, 2008 at 10:30 a.m. The meeting will be at the Community Room, Two Stamford Plaza, 281 Tresser Boulevard in Stamford, Connecticut. Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced composites company. The company develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications such as wind turbine blades. The company has subsidiaries in Austria, the United Kingdom, Spain, Hong Kong, Japan and Brazil. * * * Hexcel carries Moody's Ba3 corporate family rating with a stable outlook. This rating was placed on April 2007. IWT TESORO: Unable to File Form 10-K Due to Bankruptcy ------------------------------------------------------ IWT Tesoro Corp. made a good faith effort to file its annual report, however, due to the bankruptcy and its change of independent accounting firms, it has not been able to file its Form 10-K within the required time frame. The company does intend to use its reasonable best efforts file a Form 10K for the year ended 2007. I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, -- http://www.iwttesoro.com/-- is headquartered in New York City. The company and its subsidiaries distribute building materials, specifically hard floor and wall coverings. They are wholesalers and do not sell directly to any end user. Their products consist of ceramic, porcelain and natural stone floor, wall and decorative tile. They import a majority of these products from suppliers and manufacturers in Europe, South America (Brazil), and the Near and Far East. Their markets include the United States and Canada. They also offer private label programs for branded retail sales customers, buying groups, large homebuilders and home center store chains. The Debtor and its debtor-affiliates, International Wholesale Tile, Inc. and American Gres, Inc., filed for Chapter 11 bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead Case No. 07-12841). John K. Sherwood, Esq., at Lowenstein Sandler P.C., represents the Official Committee of Unsecured Creditors. As of June 30, 2007, the Debtors had total assets of US$39,798,579 and total debts of US$47,940,983. On Jan. 23, 2008, the Bankruptcy Court approved the sale of substantially all of the assets of the Debtors. JAPAN AIRLINES: In Discussions With MUFG on JALCard Sale -------------------------------------------------------- Japan Airlines International Co., Ltd. is to sell a 49% stake in wholly owned credit card unit JALCard Inc. to Mitsubishi UFJ Financial Group Inc., informed sources revealed to Jiji Press. Jiji Press' sources say that JAL has eliminated other possible candidates for the deal and that the two parties are in talks over the price of the unit's shares, estimated at around JPY50 billion. According to the sources, JAL and MUFG are expected to finalize a deal as early as May after working out the details of the business tie-up. JAL, states Jiji Press, will consider alliances with MUFG mostly in card businesses, including the launch of credit cards that serve as cash cards in addition to cards adopting JAL's mileage point service. Jiji Press notes that JALCard has about two million card holders, a relatively small number for a Japanese credit card business. But its core members are wealthy entrepreneurs and businesspeople, and the annual average value of transaction among all members is JPY900,00 far higher than the industry average. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/-- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. S&P said the outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. UAL CORP: Worse Earnings Prompt S&P to Revise Outlook to Neg. ------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on UAL Corp. and its United Air Lines Inc. subsidiary (both rated B/Negative/--) to negative from stable. "The outlook change is based on expected materially worse earnings and cash flow generation in 2008, consistent with industry trends, due to very high fuel prices and a weak U.S. economy," said Standard & Poor's credit analyst Philip Baggaley. "Manageable debt maturities and relatively low capital expenditures continue to support liquidity, but fuel price volatility and the risk of a protracted economic downturn indicate the potential for a downgrade over the next 12 months," the analyst continued. United also faces a potential bank covenant compliance problem, depending on earnings levels and actions the company may take in response. The outlook change does not relate to potential effects of the proposed merger of Delta Air Lines Inc. and Northwest Airlines Corp., though S&P do expect UAL to redouble its efforts to find a merger partner in response. The corporate credit rating on UAL reflects United's participation in the price-competitive, cyclical, and capital- intensive airline industry; high fuel costs, which may prove increasingly difficult to recover through fare hikes in a softening U.S. economy, and a highly leveraged financial profile. These weaknesses are mitigated by United's extensive and well-positioned route system and by reductions in labor costs and financial obligations achieved in bankruptcy reorganization. Chicago-based United is the second-largest U.S. airline, with strong positions in the Midwest and western U.S. and on trans-Pacific routes and a solid position on trans- Atlantic routes. S&P expect UAL to report a sizable 2008 loss, compared with 2007 pretax earnings of US$695 million, because of much higher fuel costs and a weak U.S. economy. Although United is expected to post solid revenue gains in the first quarter, with passenger revenue per available seat mile up in the high-single-digit- percent area, S&P expect these improvements to wane as the year goes on United is one of the leading carriers of business traffic, which will be squeezed by corporate layoffs and cost- cutting. Its international operations, a greater proportion of total flying following shrinkage of the domestic system in and since bankruptcy, should hold up better, but will likely weaken later this year. The company is planning further domestic capacity reductions and stepped-up cost-cutting, but the scale of expected fuel price increases will far offset these efforts. S&P expect UAL, like other U.S. airlines, to report much worse earnings and cash flow in 2008, though its cash flow plus unrestricted cash and short-term investments should enable it to meet manageable debt maturities and capital expenditures. S&P could lower the rating if external pressures cause materially worse-than-expected losses, reducing cash flow protection. If UAL enters into a merger agreement, S&P would very likely place ratings on CreditWatch. The CreditWatch implications would depend on particulars of the proposed transaction. 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. XERIUM TECH: Ernst & Young Expresses Going Concern Doubt -------------------------------------------------------- Ernst & Young LLP raised substantial doubt on the ability of Xerium Technologies, Inc., to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditing firm stated that the company will likely have future debt covenant violations under its existing loan agreements. Failing to meet financial covenants constitutes an event of default, upon which the company's lenders could accelerate the debt causing it to become payable and due. Management related that while the company was in compliance with the financial covenants under its senior credit facility at Dec. 31, 2007, and expects that it would generate cash flow from operations sufficient to service the debt under the senior credit facility prior to the stated maturity of the debt if there is not otherwise an event of default under the debt, the company anticipates to be in financial covenant non-compliance for the period ended March 31, 2008. The company posted a net loss of US$150,212,000 on total sales of US$615,426,000 for the year ended Dec. 31, 2007, as compared with a net income of US$31,288,000 on total sales of US$601,439,000 in the prior year. At Dec. 31, 2007, the company's consolidated balance sheet showed US$891,441,000 in total assets and US$892,493,000 in total liabilities, resulting in US$1,052,000 stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with US$286,338,000 in total current assets available to pay US$768,020,000 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at: http://ResearchArchives.com/t/s?2a8c About Xerium Technologies Based on Youngsville, North Carolina, Xerium Technologies Inc. (NYSE: XRM) -- http://www.xerium.com/-- manufactures and supplies consumable products used primarily in the production of paper: clothing and roll covers. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. ========================== C A Y M A N I S L A N D S ========================== AMKOR TECHNOLOGY: Eric Larson Named EVP Product Management Group ---------------------------------------------------------------- Amkor Technology, Inc. said that Eric Larson has joined the company as Executive Vice President Product Management Group, effective April 14, 2008. Larson, 52, will report to Ken Joyce, Amkor�s Chief Operating Officer, and will have overall management responsibility for Amkor�s Product Business Units, including Wirebond Products, Wafer-Level Processing and Flip- Chip Products, Test Services, R&D, Emerging Technologies and Corporate Development. Larson brings more than 24 years of semiconductor and technology sector leadership experience to his new role. Larson started his career at Hewlett Packard where he worked for 17 years in a number of senior management positions including General Manager of the Integrated Circuits Business Division and General Manager of the Mobile Business Operation. He also served 7 years in senior management positions at Amkor from 1996 to 2003, including as President of our Wafer Fabrication business and Executive Vice President of Corporate Development. Larson is re-joining Amkor after having served in executive management positions with several start-up ventures. �We are pleased to have Eric join Amkor�s executive management team,� said James Kim, Amkor�s Chairman and Chief Executive Officer. �Having worked closely with Eric in the past, I have first hand knowledge of his strong work ethic and team building skills. I have great confidence in Eric�s ability to lead our product business units in delivering innovative and cost effective packaging and test solutions to our customers.� �I am delighted to welcome an executive of Eric�s caliber to Amkor,� said Ken Joyce. �Eric brings extensive semiconductor industry knowledge, business acumen and leadership skills to our existing team of talented and experienced product business unit managers.� About Amkor Headquartered in Chandler, Arizona, Amkor Technology, Inc. (Nasdaq: AMKR) -- http://www.amkor.com/-- is a provider of semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronics design and manufacturing services. Outside the United States, the company has wholly-owned subsidiaries in Honk Kong, France, Japan, Singapore, the British Cayman Islands and Netherlands. AMKOR TECHNOLOGY: To Issue 1st Quarter 2008 Results on April 30 --------------------------------------------------------------- Amkor Technology, Inc. said that it will issue its financial results for the first quarter of 2008 after the close of trading on the NASDAQ Global Market on Wednesday, April 30, 2008. At 5:00pm Eastern Time, Amkor management will host a conference call to discuss the company�s financial results. This call is being webcast by Thomson Financial and can be accessed at Amkor�s Web site. Interested parties may also access the call by dialing 303-205-0033. About Amkor Headquartered in Chandler, Arizona, Amkor Technology, Inc. (Nasdaq: AMKR) -- http://www.amkor.com/-- is a provider of semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronics design and manufacturing services. Outside the United States, the company has wholly-owned subsidiaries in Honk Kong, France, Japan, Singapore, the British Cayman Islands and Netherlands. AMKOR TECHNOLOGY: Moody's Holds Junk Rating on US$190 Mln Notes --------------------------------------------------------------- Moody's Investors Service affirmed Amkor Technology, Inc.'s corporate family (B2), long-term debt (B1 senior unsecured; Caa1 senior subordinated) and speculative-grade liquidity (SGL-2) ratings and revised the outlook to positive. The positive ratings outlook reflects Amkor's improved operating and financial performance with continued free cash flow generation against the backdrop of favorable industry fundamentals. It also reflects Moody's expectations that Amkor will continue to demonstrate a stable to improving credit profile as a result of better operating and financial discipline. Despite likely near-term consumer electronics end market demand weakness, the positive outlook anticipates the company will continue to benefit from a favorable business environment for OSAT services, relatively stable pricing in leading edge packaging solutions and continued demand for its advanced products. Ratings could experience upward pressure over the next 6-12 months if Amkor: (1) continues to sustain its track record of maintaining profitability and achieving anticipated financial and operating performance resulting in operating margins of 12-15% over a semiconductor cycle; (ii) continues to sustain a fixed cost structure such that it is able to generate sufficient free cash flow allowing it to build/maintain cash reserves to comfortably service intermediate debt maturities through 2011; (iii) repays debt prior to scheduled maturities; or (iv) is able to source or convert a sufficient amount of equity capital, such that debt to book capital is consistent with mid/high single-B rated technology peers. Over the past two years, the company's improved operating performance has led to EBITDA growth, margin expansion, and solid free cash flow generation applied to debt reduction (to US$1.76 billion at year end 2007 down from US$2.14 billion in 2005), resulting in improved credit protection measures. Financial leverage, as measured by debt to EBITDA, was 2.8x as of December 2007, which is comparable to B1-rated industry peers, thus lending additional support to the positive outlook. In February 2008, Amkor retired US$88 million of senior notes, further reducing leverage. Liquidity remains good, with cash balances of US$410 million at Dec. 31, 2007 plus access to an unused US$100 million secured revolving credit facility maturing November 2009, for which covenant compliance is expected over the next year. Combined with our expectations of stable to improving annual free cash flow (US$368 million on a Moody's adjusted basis for the twelve months ended Dec. 31, 2007) and improved financial flexibility, Amkor is well positioned to maintain leverage near current levels. Given that Amkor is strongly positioned within the B2 rating category, the rating can tolerate temporary financial leverage weakness as a result of possible fluctuations in EBITDA over the next twelve months due to end market demand softness. These ratings were affirmed and assessments revised: -- Corporate Family Rating -- B2; -- Probability of Default Rating -- B2; -- US$1,061 Million Senior Unsecured Notes with various maturities -- B1 (LGD-3, 44%); -- US$190 Million 2.5% Convertible Senior Subordinated Notes due 2011�Caa1 (LGD-6, 90%); -- Speculative Grade Liquidity Rating -- SGL-2. The ratings outlook is positive. Headquartered in Chandler, Arizona, Amkor Technology, Inc. (Nasdaq: AMKR) -- http://www.amkor.com/-- is a provider of semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronics design and manufacturing services. Outside the United States, the company has wholly-owned subsidiaries in Honk Kong, France, Japan, Singapore, the British Cayman Islands and Netherlands. CRESCENT ARENA: Proofs of Claim Filing is Until April 30 -------------------------------------------------------- Crescent Arena Limited's creditors have until April 30, 2008, to prove their claims to Linburgh Martin and Jeff Arkley, 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. Crescent Arena's shareholder decided on March 20, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Linburgh Martin and Jeff Arkley Attn: Neil Gray Close Brothers (Cayman) Limited Fourth Floor, Harbor Place P.O. Box 1034, Grand Cayman Telephone: (345) 949 8455 Fax: (345) 949 8499 EMERALD MANAGEMENT: Sets Final Shareholders Meeting for April 30 ---------------------------------------------------------------- Emerald Management Company will hold its final shareholders' meeting on April 30, 2008, at 9:00 a.m. at Crusader International Management (Cayman) Ltd., 5th Floor, Windward 3, Regatta Office Park, Cayman Islands. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted; and 2) giving explanation thereof. Emerald Management's shareholders agreed on March 19, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Stuart Jessop Crusader International Management (Cayman) Ltd. 5th Floor, Windward 3 Regatta Office Park, Cayman Islands Telephone: (345) 949 1599 Fax: (345) 949 0520 HEMERA INVESTMENTS: Proofs of Claim Filing Deadline is April 30 --------------------------------------------------------------- Hemera Investments N.V.'s creditors have until April 30, 2008, to prove their claims to Kenneth M. Krys, 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. Hemera Investments' shareholder decided on March 28, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Kenneth M. Krys Attn: Deon Myles Krys & Associates Cayman Ltd P.O. Box 31237, Governors Square Building 6, 2nd Floor, 23 Lime Tree Bay Avenue Grand Cayman KY1-1205, Cayman Islands Telephone: 345-945-4700 Fax: 345-946-6728 NORANDA HIGHLANDS: Proofs of Claim Filing is Until April 30 ----------------------------------------------------------- Noranda Highlands, Inc.'s creditors have until April 30, 2008, to prove their claims to Linburgh Martin and John Sutlic, 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. Noranda Highlands's shareholder decided on Feb. 20, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Linburgh Martin and John Sutlic Attn: Neil Gray Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, Grand Cayman Telephone: (345) 949 8455 Fax: (345) 949 8499 ORPHEUS DESSERTS: Proofs of Claim Filing Deadline is April 30 ------------------------------------------------------------- Orpheus Desserts Holding N.V.'s creditors have until April 30, 2008, to prove their claims to Kenneth M. Krys, 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. Orpheus Desserts' shareholder decided on March 28, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Kenneth M. Krys Attn: Deon Myles Krys & Associates Cayman Ltd P.O. Box 31237, Governors Square Building 6, 2nd Floor, 23 Lime Tree Bay Avenue Grand Cayman KY1-1205, Cayman Islands Telephone: 345-945-4700 Fax: 345-946-6728 PARMALAT SPA: Cannot Seek Damages vs Banks, Says Milan Court ------------------------------------------------------------ A judge in Milan, Italy, issued a ruling April 18, 2008, excluding Parmalat S.p.A. as civil party in the market rigging lawsuit against Citigroup Inc., UBS AG, Deutsche Bank AG, Morgan Stanley and nine individuals, Bankruptcy Law360 reports. As reported in the TCR-Europe, Milan prosecutors accused the banks of disguising the terms of Parmalat bond sales and other financing from investors, thus helping the dairy company conceal its financial situation. The trial commenced in January and will resume in July. Lawyers for the banks had rejected claims that the concerned firms, as well as their current and former managers, withheld information on Parmalat's true financial situation prior to its collapse. Parmalat, meanwhile, said the Milan ruling has no effect on its ability to claim damages, since these will be its object in the bankruptcy proceedings pending before a court in Parma, Italy. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted Parmalat Permanent Injunction. RON LIMITED: Proofs of Claim Filing is Until April 30 ----------------------------------------------------- Ron Limited's creditors have until April 30, 2008, to prove their claims to Bronwynne R. Arch and Sylvia Lewis, 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. Ron's shareholder decided on March 10, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bronwynne R. Arch and Sylvia Lewis P.O. Box 1109, Grand Cayman KY-1102 Cayman Islands Telephone: 949-7755 Fax: 949-7634 RON LIMITED: Sets Final Shareholders Meeting for April 30 --------------------------------------------------------- Ron Limited will hold its final shareholders' meeting on April 30, 2008, at 10:45 a.m. at HSBC Financial Services (Cayman) Limited, P.O. Box 1109, George Town, Grand Cayman, Cayman Islands. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted; and 2) authorizing the liquidator to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Ron's shareholder decided on March 10, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquid