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 Thursday, April 24, 2008, Vol. 9, No. 81 Headlines A R G E N T I N A CAMPUS VIRTUAL: Seeks Bankruptcy Protection CERVATRAS SA: Trustee to File General Report in Court Tomorrow CUEROMAX SA: Trustee to File Individual Reports on April 25 DANA CORP: Inks Separation Pact with CEO & COO Michael Burns DANA CORP: Ogre Wants Court to Overrule US$1.3MM Claim Objection FUREX SA: Trustee to File Individual Reports in Court Tomorrow INDUSAIRE SRL: Proofs of Claim Verification Deadline is June 23 LOS TACURUSES: Proofs of Claim Verification is Until June 18 MENENDEZ HERMANOS: Trustee to Verify Claims Until June 30 PARADOR EMPALME: Trustee to File General Report Tomorrow PREVENCION Y SEGURIDAD: Trustee to Verify Claims Until June 16 SENDRA DANIEL: Trustee to File Individual Reports Tomorrow SPI SRL: Proofs of Claim Verification Deadline is June 2 TELEFONICA DE ARGENTINA: Amends Stock Purchase Pact w/ Datacorp TYSON FOODS: To Appeal Chicken Advertising Case B A R B A D O S BIOVAIL CORP: Bill Wells Assumes Chief Executive Officer Role B E R M U D A FAIRVIEW INSURANCE: Proofs of Claim Filing Deadline is May 7 FAIRVIEW INSURANCE: Sets Final Shareholders Meeting for May 27 WARNER CHILCOTT: To Issue First Quarter 2008 Earnings on May 9 XL CAPITAL: Posts Net Realized Loss on Investments of US$102.3MM YRC WORLDWIDE: Agrees to Amendments on Aug. 17 Credit Agreement YRC WORLDWIDE: Moody's Cuts CF Rating to Ba2; Outlook Negative B R A Z I L BANCO BRADESCO: BBVA Sells Stake in Bank for BRL2.29 Billion BANCO ITAU: Roberto Setubal Won't Run Bank's Daily Operations BRASIL TELECOM: Reports BRL248.3MM Net Income in First Qtr. 2008 COMPANHIA SIDERURGICA: Hires Goldman Sachs as Financial Advisor ENERGIAS DO BRASIL: Power Distribution Rises 2.3% in 1st 3 Mos. FLEXTRONICS INT'L: May Complete Phase 2 of Arima Deal This Month GERDAU SA: To Invest US$180 Million in CCA Tie-Up GERDAU SA: Quanex Shareholders Okay US$1.67 Billion Purchase HEXCEL CORP: S&P Holds BB Corp. Credit Rating with Pos. Outlook SHARPER IMAGE: Seeks to Employ RCR Real Estate Advisors SHARPER IMAGE: Court OKs Womble Carlyle Employment as Counsel C A Y M A N I S L A N D S ABC CAYMAN: Proofs of Claim Filing is Until May 1 KELLET HOLDINGS: Proofs of Claim Filing Deadline is April 31 MUTSUKI GLOBAL: Proofs of Claim Filing Deadline is May 1 PARMALAT SPA: Can File Damages vs Citigroup, Says Parma Judge PARMALAT SPA: Files EUR5-Billion Suit vs Hermes Asset Europe PELOTON ABS: Proofs of Claim Filing Deadline is May 1 SAGAMINO GLOBAL: Proofs of Claim Filing is Until May 1 C O S T A R I C A DOLE FOOD: Will Offset Carbon Emissions from Crop Transport SIRVA INC: Committee to Challenge DIP Financing Order SIRVA INC: OOIDA Insists Members Are Class 4 Creditors SIRVA INC: Court Allows Triple Net's US$2 Million Claim TERADYNE INC: Earns US$21.8 Million in First Quarter 2008 G U A T E M A L A BANCO INDUSTRIAL: Fitch Puts 'B+(EXP)' Rating to Upcoming Notes BANCO INDUSTRIAL: Moody's Rates Tier 1 Capital Notes at Ba3 J A M A I C A NAT'L COMMERCIAL: Court Says No to Injunction Extension Plea M E X I C O ASARCO LLC: USW Examines Bankruptcy Status With Firm BOWNE & CO: Improved Cash Flow Cues Moody's to Up Rating to Ba2 DIOMED HOLDINGS: Trustee Appoints 5-Member Creditors' Committee DIOMED: Wants to Hire McGuireWoods as Bankruptcy Counsel FEDERAL-MOGUL: Asbestos Trust Wants Pneumo Claims Holders Barred FRONTIER AIRLINES: To Hire Davis Polk as Bankruptcy Counsel FRONTIER AIRLINES: To Hire Togut Segal as Conflicts Counsel GAP INC: March 2008 Net Sales Down 12% to US$1.37 Billion GAP INC: Fitch Affirms IDR at BB+ on Considerable Liquidity HASBRO INC: Earns US$37.5 Million in First Quarter 2008 PRIDE INTERNATIONAL: Board Drops Ownership Threshold to 10% THERMADYNE HOLDINGS: Moody's Lifts CF Rating to B3 from Caa1 USG CORP: Mexican Unit's 1Q Operating Profit Falls to US$4 Mln. P A R A G U A Y MILLICOM INT'L: Posts US$158MM Net Income in Qtr. Ended March 31 P U E R T O R I C O CARIBBEAN RESTAURANTS: S&P Lifts Rating to B- With Neg. Outlook JETBLUE AIRWAYS: Loss Expectations Cue S&P to Cut Rating to B- SEARS HOLDINGS: US$1 Bil. LOC End Won't Affect S&P's 'BB' Rating U R U G U A Y BANCO ITAU: Expects AFAP UnionCapital Buy to Get Regulators' OK V E N E Z U E L A CA LA ELECTRICIDAD: Fitch Upgrades Foreign and Local IDR to BB- PETROLEOS DE VENEZUELA: Uruguay Unit Denies Wilson Relationship PETROLEOS DE VENEZUELA: Inks Investment Project with ANCAP PETROLEOS DE VENEZUELA: Gov't Approves Oil Sudden-Gains Tax - - - - - ================= A R G E N T I N A ================= CAMPUS VIRTUAL: Seeks Bankruptcy Protection ------------------------------------------- The National Commercial Court of First Instance No. 14 in Buenos Aires is studying the merits of Campus Virtual SA's request to enter bankruptcy protection. Don Quijote filed a "Quiebra Decretada" petition, after failing to pay its debts since April 12, 2008. The petition, once approved by the court, will transfer control of the company's assets to a court-appointed trustee who will supervise the liquidation proceedings. Clerk No. 28 assists the court in this case. The debtor can be reached at: Campus Virtual SA Alicia Moreau de Justo 2030 Buenos Aires, Argentina CERVATRAS SA: Trustee to File General Report in Court Tomorrow -------------------------------------------------------------- Manuel Alberto Fada, the court-appointed trustee for Cervatras S.A.'s bankruptcy proceeding, will present in the National Commercial Court of First Instance in La Plata, Buenos Aires, a general report containing an audit of the firm's accounting and banking records on April 25, 2008. Mr. Fada verified creditors' proofs of claim until Oct. 22, 2007. He presented the validated claims as individual reports in court on Dec. 4, 2007. Mr. Fada is also in charge of administering Cervatras’ assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Cervatras S.A. Athaona 3642, Barrio Parque San Vicente Ciudad de Cordoba, Cordoba Argentina The trustee can be reached at: Manuel Alberto Fada Avenida General Paz 108 Cordoba, Argentina CUEROMAX SA: Trustee to File Individual Reports on April 25 ----------------------------------------------------------- Rodolfo Fernando Daniel Torella, the court-appointed trustee for Cueromax S.A.'s bankruptcy proceeding, will present in the National Commercial Court of First Instance in Buenos Aires the validated claims as individual reports on April 25, 2008. Mr. Torella verified creditors' proofs of claim until March 14, 2008. He will file in court a general report containing an audit of Cueromax's accounting and banking records on June 9, 2008. Mr. Torella is also in charge of administering Cueromax's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Rodolfo Fernando Daniel Torella Arcos 3726 Buenos Aires, Argentina DANA CORP: Inks Separation Pact with CEO & COO Michael Burns ------------------------------------------------------------ Michael Burns, on Jan. 31, 2008, tendered his resignation as Dana Holding Corporation's president, chief executive officer, chief operating officer, and member of the company's board of directors. In line with Mr. Burns' resignation, Dana disclosed in a filing with the U.S. Securities and Exchange Commission that it has entered into a separation agreement with Mr. Burns on March 27, 2008, pursuant to which Mr. Burns' employment terminated on March 31, 2008. In accordance with the terms of the Separation Agreement, Mr. Burns continued to receive his base salary through March 31. The Agreement also provides that Mr. Burns is entitled to: (a) participate in all medical, dental, prescription drug, hospitalization, life insurance and other welfare coverages and benefits in which he was participating immediately prior to the Resignation Date through the Termination Date; (b) a previously paid and disclosed incentive award earned in 2007 under Dana's 2007 Annual Incentive Plan; (c) a previously disclosed incentive award earned in 2007 under Dana's 2007 Executive Incentive Compensation Plan; (d) an accrued benefit plus interest in full satisfaction of the Supplemental Retirement Benefit of which he will receive 60% in cash and 40% in the form of an allowed general unsecured claim; (e) a payment in the amount of US$3,000,000 in consideration for executing a Confidentiality, Non-Compete, Non- Solicitation, Non-Disclosure and Non-Disparagement Agreement with Dana Corporation; (f) a payment in the amount of US$150,000 as additional consideration for his obligations and commitments under the Agreement, the Non-Compete Agreement and a release of claims against Dana; and (g) benefits under the Consolidated Omnibus Budget Reconciliation Act commencing as of the Termination Date; (h) payment of attorneys' fees reasonably incurred since Nov. 1, 2007, in connection with his employment arrangements or the termination, provided that the fees will not exceed US$125,000; and (i) all other or additional benefits to which Mr. Burns is entitled in accordance with the applicable terms of any applicable plan, program, agreement or arrangement of Dana or any of its affiliates. Under a Non-Compete Agreement, Mr. Burns has certain confidentiality obligations and will be bound by certain restrictive covenants, including one year non-competition and non-solicitation restrictions that will prohibit him from engaging in any business in competition with the businesses conducted by Dana and from soliciting the customers and employees of Dana. In addition, under the Release, Mr. Burns will release any claims he might have against Dana. A full-text copy of the Separation Agreement is available for free at http://ResearchArchives.com/t/s?2ac9 About Dana Corp. 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 is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. 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 Dana Holding Corp. following the company's emergence from Chapter 11 on Feb. 1, 2008. S&P said 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. DANA CORP: Ogre Wants Court to Overrule US$1.3MM Claim Objection ---------------------------------------------------------------- Ogre Holdings, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to overrule reorganized Dana Corp.'s objection to Claim No. 14990 seeking damages as a result of the rejection of a settlement agreement involving environmental remediation at the Acraline Site in Tipton, Indiana. The Reorganized Debtors had objected to Claim No. 14990 and asked the Court to estimate the Claim at US$1,300,000. "Dana's arguments against Claim No. 14990 are off the mark," Frank J. Deveau, Esq., at Sommer Barnard PC, in Indianapolis, Indiana, says. Mr. Deveau asserts refutes the Reorganized Debtors' assertions that they are only liable for 77.5% of any remediation costs at the Tipton Site. He says now that the Reorganized Debtors have rejected the settlement agreement, they are completely responsible for the contamination at the Property. Mr. Deveau tells the Court that the only reason why Ogre Holdings consented to the settlement agreement was because Dana Corporation, now Dana Holding Corporation, agreed to manage the remediation, pay the bulk of the costs on an ongoing basis, and seek reimbursement of all expenses from their insurers. However, Mr. Deveau contends, due to the rejection of the settlement agreement, Dana will not manage the remediation, will not pay any costs on an ongoing basis, and will not seek any reimbursement from insurers. Ogre Holdings asserts that the amount sought in Claim No. 14990 is well supported by the reports and evaluations prepared by Cornerstone Environmental, Health and Safety, Inc., an environmental consulting firm who has spent nine years dealing with the environmental issues and challenges posed by the Property. Mr. Deveau says the approach espoused by Cornerstone will remediate the Property to residential level closure standards and will enable Ogre Holdings to obtain a covenant not to sue. Ogre Holdings says it intends to engage in discovery with the Reorganized Debtors to determine what insurance coverage was available as of the Petition Date to reimburse remediation expenses at the Property. Ogre Holdings adds that it will depose the Reorganized Debtors' environmental consultant, Environmental Resources Management, with regard to its remediation plan for the Property. Ogre Holdings says it will present evidence from Cornerstone, Dr. Vicky Keramida, an environmental engineer, and a municipal well-field expert, at trial to support Claim No. 14990. 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 is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. 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 Dana Holding Corp. following the company's emergence from Chapter 11 on Feb. 1, 2008. S&P said 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. FUREX SA: Trustee to File Individual Reports in Court Tomorrow -------------------------------------------------------------- Salomon S. Wilhelm, the court-appointed trustee for Furex S.A.'s bankruptcy proceeding, will present in the National Commercial Court of First Instance in Buenos Aires the validated claims as individual reports on April 25, 2008. Mr. Wilhelm verified creditors' proofs of claim until March 7, 2007. He will file in court a general report containing an audit of Furex's accounting and banking records will be submitted in court on June 3, 2008. Mr. Wilhelm is also in charge of administering Furex's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Salomon S. Wilhelm Lavalle 1290 Buenos Aires, Argentina INDUSAIRE SRL: Proofs of Claim Verification Deadline is June 23 --------------------------------------------------------------- Susana Graciela Marino, the court-appointed trustee for Indusaire SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 23, 2008. Ms. Marino will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 3, 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 Indusaire 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 Indusaire's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Marino is also in charge of administering Indusaire's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Indusaire SRL Hidalgo 1370 Buenos Aires, Argentina The trustee can be reached at: Susana Graciela Marino Uruguay 560 Buenos Aires, Argentina LOS TACURUSES: Proofs of Claim Verification is Until June 18 ------------------------------------------------------------ Norberto Perrone, the court-appointed trustee for Los Tacuruses SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 18, 2008. Mr. Perrone will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 46, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Los Tacuruses and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Los Tacuruses' accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Perrone is also in charge of administering Los Tacuruses' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Los Tacuruses SA Esmeralda 819 Buenos Aires, Argentina The trustee can be reached at: Norberto Perrone Constitucion 2894 Buenos Aires, Argentina MENENDEZ HERMANOS: Trustee to Verify Claims Until June 30 --------------------------------------------------------- Estudio Aguilar, Pinedo, Rascado Fernandez y Asociados -- the court-appointed trustee for Menendez Hermanos SA's reorganization proceeding -- will be verifying creditors' proofs of claim until June 30, 2008. Estudio Aguilar will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 15 in Buenos Aires, with the assistance of Clerk No. 22, 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 Menendez Hermanos 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 Menendez Hermanos' accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on April 15, 2009. The debtor can be reached at: Menendez Hermanos SA Oruro 1168 Buenos Aires, Argentina The trustee can be reached at: Estudio Aguilar, Pinedo, Rascado Fernandez y Asociados Montevideo 373 Buenos Aires, Argentina PARADOR EMPALME: Trustee to File General Report Tomorrow -------------------------------------------------------- Pablo Javier Kainsky, the court-appointed trustee for Parador Empalme S.R.L.'s bankruptcy proceeding, will present in the National Commercial Court of First Instance in Buenos Aires a general report containing an audit of the firm's accounting and banking records on April 25, 2008. Mr. Kainsky verified creditors' proofs of claim until Dec. 18, 2007. He presented the validated claims as individual reports in court on March 7, 2008. Mr. Kainsky is also in charge of administering Parador Empalme's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Pablo Javier Kainsky Reconquista 715 Buenos Aires, Argentina PREVENCION Y SEGURIDAD: Trustee to Verify Claims Until June 16 -------------------------------------------------------------- Moises Gorelik, the court-appointed trustee for Prevencion y Seguridad Total SRL's reorganization proceeding, will be verifying creditors' proofs of claim until June 16, 2008. Mr. Gorelik will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 15 in Buenos Aires, with the assistance of Clerk No. 29, 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 Prevencion y Seguridad 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 Prevencion y Seguridad's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on April 1, 2009. The debtor can be reached at: Prevencion y Seguridad Total SRL Paraguay 754 Buenos Aires, Argentina The trustee can be reached at: Moises Gorelik Lavalle 1675 Buenos Aires, Argentina SENDRA DANIEL: Trustee to File Individual Reports Tomorrow ---------------------------------------------------------- Carlos Antonio Palma, the court-appointed trustee for Sendra Daniel C. y Juan J. Sendra S.H.'s bankruptcy proceeding, will present in the National Commercial Court of First Instance in Mendoza the validated claims as individual reports on April 25, 2008. Mr. Palma verified creditors' proofs of claim until March 11, 2007. He will submit in court a general report containing an audit of Sendra Daniel's accounting and banking records on June 10, 2008. Mr. Palma is also in charge of administering Sendra Daniel's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Carlos Antonio Palma 9 de Julio 313, Ciudad de Mendoza Mendoza, Argentina SPI SRL: Proofs of Claim Verification Deadline is June 2 -------------------------------------------------------- Luis Di Cesare, the court-appointed trustee for SPI SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 2, 2008. Mr. Di Cesare will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 45, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by SPI 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 SPI's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Di Cesare is also in charge of administering SPI's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: SPI SRL Uruguay 43 Buenos Aires, Argentina The trustee can be reached at: Luis Di Cesare Viamonte 1336 Buenos Aires, Argentina TELEFONICA DE ARGENTINA: Amends Stock Purchase Pact w/ Datacorp --------------------------------------------------------------- Telefonica de Argentina SA has amended its stock purchase agreement with Telefonica Datacorp S.A., in which Datacorp will sell to TASA the 14,948 Additional Shares representing 1.8578% of Telefonica Data Argentina S.A.’s stock capital, to be acquired by Datacorp. In addition, the company and Datacorp agreed to: (i) extend the term for the compliance of certain conditions (including regulatory authorization and the completion of the procedure for the acquisition of the minority shareholders’ shares) for an additional 6-month period as from June 17, 2008; (ii) amend the price for the purchase and sale of the shares to the amount of US$56 million for the shares representing 97.89% of TDA S.A.’s capital stock, and US$1 million for the shares to be acquired from TDA S.A.’s minority shareholder, (iii) subject the closing to the whole transaction to the completion of the procedure for the acquisition of the minority shareholders’ shares and the approval of this amendment by the company’s Audit Committee and Board of Directors, all of which should occur before Dec. 17, 2008. 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. TYSON FOODS: To Appeal Chicken Advertising Case ----------------------------------------------- Tyson Foods Inc. will appeal the ruling of a federal judge in Baltimore, who has granted a preliminary injunction against the advertising Tyson uses to promote this line of products. The company will also seek a stay to suspend the judge's instruction to remove point of sale materials in stores that sell the products. "We strongly disagree with this decision and will appeal since we firmly believe we have acted responsibly in the way we have labeled and marketed our products," said Dave Hogberg, senior vice president of Consumer Products for Tyson Foods. The company will now take the legal dispute to the U.S. Court of Appeals for the Fourth Circuit in Richmond, Virginia. "Our company has complied with federal regulations throughout the development of this product line and we intend to stand our ground," Mr. Hogberg said. "Our chicken raised without antibiotics that impact antibiotic resistance in humans is more than a labeling and marketing program. It also represents a change in the way our chickens are raised, as we work to provide the kind of product nine out of ten of consumers tell us they want." After extensive consumer research and the appropriate government approvals, Tyson started marketing its retail fresh chicken under a USDA accepted "Raised Without Antibiotics" label in summer 2007. After the USDA claimed an error in its approval of a fully-disclosed antimicrobial feed ingredient under the claim, the company later sought and received approval for a modified label, which reads "Raised Without Antibiotics that impact antibiotic resistance in humans." The preliminary injunction does not affect the USDA-approved product label used on Tyson's retail fresh chicken products. It does affect Tyson advertising of the products, however, the company is not currently running any ads and has none scheduled. Company officials were not planning to resume advertising for the campaign until just before the start of the summer grilling season. The decision also affects point of sale materials, such as posters and brochures, which are used in stores where the product is sold. Since this issue directly impacts consumers and customers, the company intends to seek a stay from the U.S. Court of Appeals to suspend the judge's order. "We've received overwhelming customer support for this product line and intend to do everything possible to continue making it available to our customers and consumers," said Scott Rouse, senior vice president of Customer Development for Tyson Foods. Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. The company makes a wide variety of protein-based and prepared food products at its 123 processing plants. Tyson has approximately 114,000 Team Members employed at more than 300 facilities and offices in 26 states and 80 countries. Tyson's U.S. beef plants are located in Amarillo, Texas; Dakota City, Nebraska; Denison, Iowa; Finney County, Kansas; Joslin, Illinois, Lexington, Nebraska and Pasco, Washington. The company also has a beef complex in Canada, and is involved in a vertically integrated beef operation in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on April 8, 2008, Moody's Investors Service confirmed Tyson Foods, Inc.'s corporate family rating and probability of default rating at Ba1. Moody's said the rating outlook remains negative. =============== B A R B A D O S =============== BIOVAIL CORP: Bill Wells Assumes Chief Executive Officer Role ------------------------------------------------------------- The board of directors of Biovail Corporation appointed Bill Wells as chief executive officer, effective May 1, 2008. Mr. Wells joined Biovail's board in 2005, and has been the company's lead director since June 30, 2007. As CEO, Mr. Wells will remain on the company's board. The company also disclosed that the board has appointed Dr. Douglas Squires as chairman of the board, effective May 1, 2008. Dr. Squires is the company's current interim chairman and chief executive officer. The appointments will conclude a year-long transition phase from Eugene Melnyk, Biovail founder's exit, Donna Kardos of Wall Street Journal reports. According to WSJ, Mr. Melnyk resigned as chairman in May 2008, as part of a settlement with the Ontario Securities Commission. WSJ says that OSC alleged that he "repeatedly breached" Ontario securities law by failing to file insider-trading reports on more than 5,000 trades in Biovail shares earlier this decade. Mr. Wells has extensive financial and leadership experience with large companies, as chief financial officer of Loblaw Companies Limited, Canada's food distributor and provider of general merchandise, drugstore and financial products and services. Prior to joining Loblaw, Mr. Wells was CFO of Bunge Limited in the United States, a food and agri-business company. He led Bunge's initial public offering on the New York Stock Exchange and was a key member of the management team that grew Bunge's market valuation from US$1.3 billion to over US$10 billion. "Bill Wells brings a unique skill set to the CEO position at an important time for the company and its shareholders," said Dr. Squires. "[Mr. Wells] has gained intimate knowledge of the company's business and operations from his service as a member of the board and as lead director. He has significant experience in strategic financial management for companies and in the deployment of assets to maximize return on capital and achieve key business objectives. [Mr. Wells] is exceptionally well qualified to lead Biovail in this new phase of the company's development." "Biovail is a great company with outstanding potential to deliver enhanced value for its shareholders," Mr. Wells said. "I look forward to executing the company's new strategic plan, which is being developed by the board and management." "Loblaw has an outstanding group of people working on executing Loblaw's turnaround plan, which I am confident will succeed," added Mr. Wells. Consistent with Biovail's historical practice and its corporate, operational and tax structure, Mr. Wells, as Biovail's key decision maker, will be based in Barbados, where he will also serve as president of Biovail Laboratories International SRL, the company's principal operating subsidiary. "We are pleased to have the benefit of Dr. Squires' extensive pharmaceutical experience continue at the Board level with his appointment as chairman," Michael Van Every, chairperson of Biovail's audit committee, said. "We thank and commend Dr. Squires for his strong leadership as CEO over the past three years, a time of many challenges for the company, and we look forward to his continued leadership in his role as chairman." About Biovail Corporation Based in Ontario, Canada, Biovail Corporation (NYSE:BVF)(TSX:BVF) -- http://www.biovail.com/-- is a specialty pharmaceutical company that applies advanced drug-delivery technologies to improve the clinical effectiveness of medicines. The company is engaged in the formulation, clinical testing, registration, manufacture and commercialization of pharmaceutical products. Its main therapeutic areas of focus are central nervous system disorders, pain management and cardiovascular disease. The primary markets for its products are the United States and Canada. Biovail has a portfolio of drug-delivery technologies includes controlled release, enhanced absorption, rapid absorption, taste masking, and oral disintegration technologies, among others. Biovail operates R&D, manufacturing and clinical research facilities in the U.S., Canada, Barbados, Puerto Rico and Ireland. It markets its products directly in North American through its marketing divisions Biovail Pharmaceuticals Inc. and Biovail Pharmaceuticals Canada. * * * Standard & Poor's placed Biovail Corporation's long-term foreign and local issuer credit ratings at 'BB'. The ratings still hold to date with a stable outlook. ============= B E R M U D A ============= FAIRVIEW INSURANCE: Proofs of Claim Filing Deadline is May 7 ------------------------------------------------------------ Fairview Insurance Group, Ltd.'s creditors have until May 7, 2008, to prove their claims to Carolynn D. Hiron, 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. Fairview Insurance's shareholders agreed on April 17, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victioria Street Hamilton, Bermuda FAIRVIEW INSURANCE: Sets Final Shareholders Meeting for May 27 -------------------------------------------------------------- Fairview Insurance Group, Ltd., will hold its final shareholders' meeting on May 27, 2008, at 9:00 a.m. at Canon's Court, 22 Victioria Street, Hamilton, Bermuda. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. Fairview Insurance's shareholders agreed on April 17, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Jennifer Y. Fraser Canon's Court, 22 Victioria Street Hamilton, Bermuda WARNER CHILCOTT: To Issue First Quarter 2008 Earnings on May 9 -------------------------------------------------------------- Warner Chilcott Ltd. will issue its first quarter 2008 financial results prior to the market opening on May 9, 2008. The company will host a conference call for all interested parties on May 9, 2008 at 8:00 AM (Eastern Time) to review the results. To participate in the call, please dial (877) 397-0297 in the United States and Canada or (719) 325-4913 internationally. Investors and other interested parties may also access the conference call via a simultaneous audio webcast by visiting http://ir.wcrx.comand clicking on Events & Presentations. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing (888) 203-1112 within the U.S. and Canada or (719) 457-0820 internationally. The passcode for the replay is 6773545. Headquartered in Hamilton, Bermuda, Warner Chilcott Ltd. -- http://www.warnerchilcott.com/-- is the holding company for a host of pharmaceutical makers. Women's health care products, including hormone therapies (femhrt and Estrace Cream) and contraceptives (Estrostep, Loestrin, and OvCon), are the company's largest segment. Other products include dermatology treatments for acne (Doryx) and psoriasis (Dovonex and Taclonex). United States subsidiary Warner Chilcott Inc. makes prescription drugs for dermatology and women's health; other subsidiaries provide services in data management systems, pharmaceutical development, manufacturing, and chemical development. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 8, 2008, Standard & Poor's Ratings Services revised its outlook on specialty drug manufacturer Warner Chilcott Corp., Warner Chilcott Limited's subsidiary, to positive from stable. The ratings, including B+ corporate credit rating, were affirmed. "The outlook revision on the company reflects its solid operational track record and improving financial profile over the past two years," said S&P's credit analyst Arthur Wong. XL CAPITAL: Posts Net Realized Loss on Investments of US$102.3MM ---------------------------------------------------------------- XL Capital Ltd reported net income available to ordinary shareholders for the quarter ended March 31, 2008, of US$211.9 million, or US$1.20 per ordinary share, compared with US$549.7 million, or US$3.06 per ordinary share, for the quarter ended March 31, 2007. The reduction in net income of US$337.8 million is due primarily to: -- A decrease in net income from investment affiliates of US$107.1 million -- Net realized losses on investments of US$102.3 million, as compared to a gain of US$9.3 million in the prior year quarter -- A decrease in underwriting profit from Property and Casualty operations of US$52.4 million -- An increase in foreign exchange losses of US$44.2 million -- A decrease in net income from financial operating affiliates of US$39.6 million Net income excluding net realized gains and losses for the first quarter of 2008 was US$276.9 million, or US$1.57 per ordinary share, compared with US$540 million, or US$3.01 per ordinary share, for the prior year quarter. Annualized return on ordinary shareholders' equity was 9.9% and 22.7% for the three months ended March 31, 2008 and 2007, respectively. Return on ordinary shareholders' equity, based on net income excluding net realized gains and losses was 12.9% and 22.3% for the three months ended March 31, 2008 and 2007, respectively. At March 31, 2008, diluted and basic book value per ordinary share was US$46.11, as compared to diluted book value of US$50.29 and basic book value of US$50.30 as of Dec. 31, 2007. The decrease is due primarily to the increase in the net unrealized losses on investments, which has more than offset net income and positive currency translation adjustments. Commenting on the current quarter results, President, Chief Executive Officer and Acting Chairperson, Brian M. O'Hara said: "Although XL is steadily navigating through some extremely difficult global credit market conditions, which is reflected in our lower investment performance relative to the outstanding results in the prior year quarter, we have still achieved another solid performance from our Insurance, Reinsurance, and Life operations." Segment Highlights: First Quarter 2008 vs. First Quarter 2007 Insurance: Underwriting profit for the quarter ended March 31, 2008, was US$40.7 million compared with US$116.8 million in the prior year quarter. Included in the current quarter's underwriting results is net favorable prior year development of US$17.3 million, as compared with US$20.2 million in the prior year quarter. -- Gross premiums written increased 3.1% primarily due to higher levels of long-term agreements, positive foreign exchange movements, favorable customer retention, and selective writing of new business. These increases have been partially offset by the decline in premium rates across most lines and lower premiums from the run off of ICAT. -- Net premiums earned decreased 4.1% mainly as a result of an increase in ceded premiums related to the purchase of an adverse development cover related to the company's Lloyd's operations. -- The combined ratio was 96.7% compared with 89.2% for the prior year quarter. The loss ratio excluding the impact of net prior year development for the current and prior year quarter was 69.6% and 63.5%, respectively. The increase in the loss ratio reflects an increase in property risk and catastrophe losses in the current quarter relative to the prior year quarter, as well as the effect of the decline in premium rates. Reinsurance: Underwriting profit for the quarter ended March 31, 2008, was US$67.4 million compared with US$43.6 million for the prior year quarter. Included in the current quarter's underwriting results is net favorable prior year development of US$49.7 million, as compared with US$44.5 million in the prior year quarter. -- Gross premiums written decreased by 22% due principally to selective treaty cancellations and competitive market conditions. Favorable foreign exchange movements offset the impact of timing differences on certain large contracts. -- Net premiums earned decreased marginally by 0.4% primarily due to lower net premiums written in previous quarters that have been partially offset by the earned impact of the decrease in the cession rate to Cyrus Re. -- The combined ratio was 87.8% compared with 92% in the prior year quarter. The loss ratio excluding the impact of net prior year development for the current and prior year quarter was 67.2% and 71.9%, respectively. The decrease in the loss ratio is due mainly to a lower level of property catastrophe losses in the current quarter relative to the prior year quarter that included Windstorm Kyrill. Life Operations: Gross premiums written were US$235 million compared with US$213.3 million in the prior year quarter. The contribution to earnings from life operations was US$27.4 million as compared with US$23.1 million in the first quarter last year, due mainly to business growth, higher net investment income and favorable foreign exchange movements. Investment Operations: Net investment income from P&C operations, excluding investment income from Structured Products, decreased 2% from the prior year period to US$308 million primarily due to lower investment yields. Net income from investment affiliates was US$11.8 million in the first quarter of 2008 compared with US$118.9 million in the first quarter of 2007. Net income from investment manager affiliates was US$12.9 million as compared with US$37.4 million for the prior year period. Net realized losses on investments were US$102.3 million in the current quarter. This includes charges of US$114.8 million for other than temporary impairments. Net unrealized losses on investments, net of tax, were US$1.4 billion at March 31, 2008, compared with net unrealized losses, net of tax of US$332.5 million at Dec. 31, 2007. The increase in net unrealized losses of US$1.1 billion for the quarter was substantially due to continuing widening credit spreads on corporate and structured credit investments, and unfavorable foreign exchange rate movements, partially offset by declines in interest rates. Total investments available for sale decreased from US$36.3 billion at Dec. 31, 2007, to US$32.2 billion at March 31, 2008, due mainly to asset sales to fund the redemption of the company's muni-GIC liabilities. Other Items Total operating expenses were US$263.8 million for the first quarter 2008, a decrease from US$280.5 million in the prior year quarter. The decrease is primarily due to the inclusion of US$24.1 million of operating expenses of Security Capital Assurance Ltd. in the prior year quarter. The quarter ended March 31, 2008, includes a foreign exchange loss of US$67.7 million as compared with a loss of US$23.6 million in the prior year quarter. The current quarter loss is primarily driven by the significant decline of the United States Dollar against most European currencies. The overall impact of foreign exchange movement has been accretive to shareholders' equity, as the foreign exchange loss in the current quarter was more than offset by currency translation gains. The quarter ended March 31, 2007, included US$23.5 million of net income from Security Capital Assurance Ltd. as a consolidated subsidiary and US$11.1 million of income from XL's share of earnings from Primus Guaranty Ltd. The current quarter includes a charge of US$4.8 million related to the unwinding of the discounted loss reserves ceded by Security Capital Assurance Ltd. and no equity earnings from Security Capital or Primus Guaranty. The company declared a semi-annual dividend of US$32.50 per share on its Fixed/Floating Series E Perpetual Non-Cumulative Preference Shares on Feb. 22, 2008. The dividend was paid on April 15, 2008. About XL Capital Ltd. Headquartered in Hamilton, Bermuda, XL Capital Ltd., -- http://www.xlcapital.com-- through its operating subsidiaries, is a provider of global insurance and reinsurance coverages to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. As of March 31, 2008, the company had consolidated assets of US$54.8 billion and consolidated shareholders' equity of US$9.3 billion. * * * As reported in the Troubled Company Reporter on April 3, 2008, Fitch Ratings has downgraded and removed from Rating Watch Negative two classes of subprime second lien residential mortgage-backed securities C-BASS, series 2007-SL1 insured by XLCA: Class A1 to 'BB' from 'A' and Class A2 to 'BB' from 'A'. YRC WORLDWIDE: Agrees to Amendments on Aug. 17 Credit Agreement --------------------------------------------------------------- On April 18, 2008, YRC Worldwide Inc. and certain of its foreign subsidiaries entered into Amendment No. 1 to the credit agreement, dated as of Aug. 17, 2007. 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 will: 1. increase the company’s total leverage ratio from 3.0x to 3.75x for each of the fiscal quarters ended March 31, June 30 and Sept. 30, 2008 and 3.5x for each fiscal quarter thereafter, 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. 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; 2. increase the interest rates and fees applicable to the revolving credit facility and term loan. 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 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; 3. require the company and its domestic subsidiaries to pledge these collateral: a. receivables not secured by the ABS facility or the company’s captive insurance companies, b. intercompany notes not secured by the ABS facility, c. fee-owned real estate parcels that have an estimated internal market value of US$2.5 million or greater, d. 100% of the stock of all domestic subsidiaries of the company, and e. 65% of the stock of first-tier foreign subsidiaries of the company other than the company’s captive insurance companies; 4. require 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 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; 5. require each domestic subsidiary of the company except for YRRFC to guarantee the credit facility; and 6. modify 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, security interests in pledged collateral will be released, 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 only material domestic subsidiaries and subsidiaries of the company that guarantee certain other indebtedness of the company or its subsidiaries will remain as guarantors. USF and Roadway Bonds The holders of USF Bonds and Roadway Bonds 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. The description of the rights of the holders of USF Bonds and Roadway Bonds is qualified by reference to the respective indentures, which are filed as Exhibit 4.3.1 and Exhibit 4.4.1 to the company’s form 10-K for the year ended Dec. 31, 2007, respectively. About YRC Worldwide 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: Moody's Cuts CF Rating to Ba2; Outlook Negative -------------------------------------------------------------- Moody's Investors Service has lowered the ratings of YRC Worldwide Inc., Corporate Family Rating to Ba2 from Ba1. At the same time, Moody's downgraded the ratings of YRC Regional Transportation's senior notes and YRC Worldwide's convertible notes to Ba3 from Ba1, and upgraded the ratings of the notes issued by the company's Roadway subsidiary to Baa3 from Ba1. Under the terms of "equal and ratable" provisions contained in the indentures, these notes will be granted a security interest in certain assets of the company that ranks pari passu with the security interest granted on those assets under the company's amended bank credit facility. The rating outlook is negative. The downgrade of the Corporate Family Rating considers the continued challenging operating environment in the trucking sector which is expected to further constrain YRC's earnings and cash flow, resulting in weaker credit metrics. Moody's views favorably the company's announcement that it has amended its senior revolving credit facility to provide increased room under prescribed financial covenants as well as the renewal and amendment of its Asset Backed Securitization facility. The ability to comply with prior covenant levels would have become problematic for YRC in light of anticipated earnings weakness. The amended covenants will enable the company to maintain a good liquidity profile while implementing strategies to improve operating performance. According to David Berge, Vice President of Moody's, "there is still significant headwind facing the company from what is expected to be a deep and possibly prolonged recession in the trucking market." Moody's expects that YRC, like most less than truckload carriers, will report weak operating results through 2008. The company should benefit from recent cost saving initiatives, including the closure of unprofitable business units in its regional segment, and enhanced operating flexibility available under its new labor agreement with the Teamsters running through 2013. Nevertheless, cyclical operating pressures will continue to weigh on overall financial performance. Key credit metrics such as Retained Cash Flow to Debt, EBIT/Interest, and Debt to EBITDA are currently weaker than those of many industry peers. YRC has reduced its balance sheet debt since the 2005 acquisition of USF Corporation, yet with the erosion of earnings during 2007 financial metrics have deteriorated. Under Moody's analytic methodology, the company carries a high debt burden related to adjustments for multi- employer pension plans. While the multi-employer obligations are viewed as debt-like in Moody's analysis, it is important to note that they do not represent a large near term claim on cash. Moody's anticipates that YRC will continue to apply free cash flow to reduce indebtedness which should help to rebuild financial metrics over time. Moody's expects that the company will be able to generate sufficient operating cash flow through 2008 to cover repayment of the US$225 million of notes due in December. This will likely require that operating ratios of at least 96-97% are achieved for the second half of the year, and that cash contributions from working capital in the fourth quarter follow historical seasonal patterns. Given the challenges posed by the weak business environment, the recent covenant amendment provides important stability to the company's liquidity profile. YRC maintains a modest cash balance, and typically experiences seasonal variances in its working capital requirements; the fourth quarter generally exhibits a significant cash inflow from working capital reductions. The company's US$950 million revolving credit facility and US$150 million Term Loan contain a financial covenant limiting its ratio of debt to EBITDA, as defined in the agreement, to certain levels. While the company has remained in compliance with the covenant through the first quarter of 2008, continued earnings pressures might have resulted in the company being unable to remain compliant in future quarters. The recently announced amendment provides covenant headroom which should enable the company to maintain an adequate liquidity profile. In exchange for covenant relief, YRC is providing a collateral package comprised of certain parcels of real estate and accounts receivable not pledged to its securitization facilities. The company will also provide a pledge of 100% of stock of domestic subsidiaries and 65% of stock of first tier foreign subsidiaries. By virtue of the "equal and ratable" provision, the Roadway and YRC Regional notes will gain a security interest that ranks pari passu with the company's bank credit facility. The outlook remains negative in recognition of the sensitivity of cash flows and covenant cushion to changes in the company's operating ratio. Considering YRC's and the LTL sector's overall vulnerability to weaknesses in the U.S. economy and the uncertainty surrounding the depth and duration of the current economic downturn, Moody's believes there are significant challenges facing the company in reaching its margin and cash flow goals. The change in ratings of the senior notes, which had been rated the same as YRC's Corporate Family Rating prior to the amendment of the credit facility, reflects the effect of both the downgrade in the CFR as well as collateral protection granted lenders under the Roadway notes, which is not afforded to the YRC convertible notes. The indenture for the Roadway notes and the indenture for the YRC Regional Transportation notes provides that, in the event of YRC pledging collateral as security for any other debt instrument, the Roadway notes and YRC Regional Transportation notes will be secured equally and ratably by a pledge of specified collateral. However, Moody's views the collateral protection being afforded to the Roadway notes as substantially superior to that of the YRC Regional Transportation notes, effectively subordinating these notes to the Roadway notes. Per Moody's Loss Given Default methodology, the change in priority from senior unsecured class of debt to senior secured has a substantial positive impact on the expected recovery on these notes in the event of default. Conversely, the effective subordination of the unsecured YRC Convertible notes and the YRC Transportation notes to a substantial level of secured debt implies weaker recovery under those notes in the event of default. The ratings could be downgraded if the free cash flow in 2008 were to fall substantially below US$200 million, therefore requiring the company to rely more heavily on its revolving credit facility to refinance the December maturities and likely the notes maturing in May 2009 as well, assuming they cannot be refinanced in the capital markets. Ratings could also be lowered if weaker operating performance were to impair the likelihood of compliance with the new financial covenants in the company's credit facility, possibly requiring waivers or further amendments of terms. The ratings could be stabilized if free cash flows become strongly positive in 2008 and 2009, with operating ratios returning to the mid-90% range. The company will have to demonstrate the maintenance of a solid liquidity position throughout this period, with only minor and temporary reliance, if any, on the revolving credit facility to cover note maturities while maintaining ample cushion to covenants. Downgrades: Issuer: USF Corporation -- Senior Notes due 2009-2010, to Ba3 (LGD4-63%) from Ba1 Issuer: YRC Worldwide Inc. -- Probability of Default Rating, Downgraded to Ba2 from Ba1 -- Corporate Family Rating, Downgraded to Ba2 from Ba1 -- Senior Convertible Notes due 2023, to Ba3 (LGD4-63%) from Ba1 Upgrades: Issuer: Roadway LLC -- Senior Notes due 2008, to Baa3 (LGD2-14%) from Ba1 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. =========== B R A Z I L =========== BANCO BRADESCO: BBVA Sells Stake in Bank for BRL2.29 Billion ------------------------------------------------------------ Banco Bilbao Vizcaya Argentaria, S.A., aka BBVA has sold its stake of 5% of the ordinary shares in Banco Bradesco SA for BRL2.29 billion. According to Banco Bradesco, BBVA exercised a sale option. The stake was sold to NCF Participacoes, which is controlled by Banco Bradesco majority shareholders Cidade de Deus and Fundacao Bradesco. Banco Bradesco told Business News Americas that Banco Espirito Santo had purchased 1.5% of its ordinary shares for BRL685 million and raised its stake in Banco Bradesco to 7.97%. NCF Participacoes sold the shares. About BBVA Banco Bilbao Vizcaya Argentaria, S.A. is a diversified international financial group with operations in retail banking, asset management, private banking and wholesale banking. During the year ended Dec. 31, 2007, the company was organized into five business areas: Spain and Portugal, Global Businesses, Mexico and the United States, South America and Corporate Activities. On Jan. 3, 2007, the company acquired State National Bancshares, Inc. About Banco Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO ITAU: Roberto Setubal Won't Run Bank's Daily Operations ------------------------------------------------------------- Banco Itau Holding Financeira SA's spokesperson told Brazilian financial daily Gazeta Mercantil that the bank's Chief Executive Officer Roberto Setubal will no longer run daily operations. According to Gazeta Mercantil, Mr. Setubal will continue as Banco Itau's chief executive officer but he will concentrate on "matters considered strategic to the bank." Gazeta Mercantil relates that Geraldo Carbone will lead Banco Itau's personal banking area. Capital markets chief Alfredo Setubal will be in charge of the insurance and private pension areas. Banco Itau Holding Financeira SA -- http://www.itau.com.br/-- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA(Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. The bank has offices in Miami, New York, Hongkong, Lisbon, Luxembourg, Bahamas, the Cayman Islands, Chile and Uruguay. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2007, Fitch changed the outlook of Banco Itau Holding Financiera S.A.'s 'BB+' foreign currency IDR rating to positive from stable. BRASIL TELECOM: Reports BRL248.3MM Net Income in First Qtr. 2008 ---------------------------------------------------------------- Brasil Telecom Participacoes S.A. registered consolidated net revenue of BRL2,762 million in the first quarter of 2008 (2.6% up on the first quarter of 2007) and net income of BRL248.3 million. BrT Movel's EBITDA stood at BRL14.7 million in the first quarter 2008, 236.3% up on the same period the year before. The EBITDA margin of the mobile operations came to 3.4%, 2.3 p.p. up on the first quarter 2007. In the first quarter of 2008, Brasil Telecom added 69,500 ADSL users to its network, totaling 1,637,300 users in service at the end of the quarter, up by 18.3% year-on-year. ADSL users represented 20.4% of Brasil Telecom's network in the first quarter 2008, versus 16.7% in first quarter 2007. The Internet Group, responsible for Brasil Telecom's Internet services, recorded 1.3 million broadband clients nationwide at the end of 2008 first quarter, up by 16.2% on the same period the previous year. Gross revenue from data communication amounted to BRL791 million in first quarter 2008, 23% higher than in first quarter 2007. BrT Movel reached 4,577,600 mobile users at the end of the first quarter 2008, with 314,900 net additions in this quarter. In the first quarter 2008, BrT Movel's client base grew by 25.8% year-on-year. Its market share in Region II came to 13.7%, 0.8 p.p. higher than in the previous year. Mobile telephony net revenue continued increasing, totaling BRL426.1 million, 10.7% up year-on-year. Operating costs and expenses totaled BRL2,397.6 million, 0.4% lower than the BRL2.389 million recorded in the first quarter of 2007. In the first quarter 2008, Brasil Telecom's investments totaled BRL159.9 million while net debt stood at BRL513.5 million, 55.1% less than in the first quarter 2007. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. * * * To date, Brasil Telecom carries Moody's Investors Service's Ba1 senior unsecured and credit default swap ratings. COMPANHIA SIDERURGICA: Hires Goldman Sachs as Financial Advisor --------------------------------------------------------------- NoticiasFinancieras reports that Companhia Siderurgica Nacional SA has hired Goldman Sachs as financial advisor for the potential sale of its stake in mining firm Nacional Minerios SA. Nacional Minerios will use its mineral and logistics resources, including its own and outsourced iron ore, to increase its sales and export capacity to 40 million tons per year from the current 14 million tons per year by 2012, NoticiasFinancieras states. About Nacional Minerios Nacional Minerios SA owns ore mines in Minas Gerais, Brazil, with intermittent access to railway and maritime transport. About Companhia Nacional Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal and the U.S. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 27, 2007, Standard & Poor's Ratings Services revised its outlook on Brazil-based steel maker Companhia Siderurgica Nacional and related entity National Steel S.A. to positive from stable. At the same time, Standard & Poor's affirmed its 'BB' corporate credit rating on CSN and its 'B+' rating on NatSteel. ENERGIAS DO BRASIL: Power Distribution Rises 2.3% in 1st 3 Mos. --------------------------------------------------------------- Energias do Brasil S.A. increased power distribution by 2.3% to 6.29 terrawatt-hours in the first three months of 2008, compared to 6.14 terrawatt-hours in the first three months of 2007. Energias do Brasil told Business News Americas that its distribution to residential and commercial customers rose 5.7% to 1.37 terrawatt-hours and 3.7% to 845 gigawatt-hours respectively in the first three months of 2008, compared to the same period last year. According to BNamericas, Energias do Brasil said that increased distribution indicates new customers in the concession area and an increase in gross domestic product. Energias do Brasil's distribution to industrial customers increased 3.8% to 1.08 terrawatt-hours in the first three months of 2008, compared to the same period last year. Energias do Brasil's rural consumers received 213 gigawatt-hours in the first quarter 2008, about 7.2% higher compared to last year's first quarter. The firm distributed power to its own operations and conventional suppliers, BNamericas states. Energias do Brasil S.A. is an integrated utility group controlled by Energias de Portugal, with activities in generation, distribution and commercialization of electricity. Its power distribution subsdiaries Bandeirante, Escelsa and Enersul represent altogether some 64% of consolidated total assets, while the power generation assets represent some 31%. * * * In May 2007, Moody's Investors Service placed a Ba2 long-term corporate family rating on Energias do Brasil. FLEXTRONICS INT'L: May Complete Phase 2 of Arima Deal This Month ---------------------------------------------------------------- Flextronics International Limited said that it expects to close the second phase of its two-phase acquisition of Arima Computer Corporation notebook and server businesses in April of this year. Flextronics completed phase one on March 18, 2008. Phase one include the acquisition of the design and services group of Arima. The second phase will include the acquisition of Arima's notebook and server manufacturing facility in WuJiang China, and is expected to close this month. Arima Computer's notebook and server business will become part of the Flextronics Computing segment. Upon completion of the two-phase transaction, Flextronics will have acquired all of the Arima's design, manufacturing and service resources related to notebook and servers. "Closing phase one of this acquisition significantly enhances our ODM server offering and significantly strengthens our position in the rapidly growing notebook market," said Sean Burke, president of Flextronics Computing. "We are pleased to welcome Arima's talented design and service employees to our team, as we continue to strengthen our world-class solutions for the computing marketplace." About Flextronics Headquartered in Singapore, Flextronics International Ltd. (NasdaqGS: FLEX; Singapore Reg. No. 199002645H) -- http://www.flextronics.com/-- is an Electronics Manufacturing Services provider focused on delivering design, engineering and manufacturing services to automotive, computing, consumer digital, industrial, infrastructure, medical and mobile OEMs. Flextronics helps customers design, build, ship, and service electronics productsthrough a network of facilities in over 30 countries on four continents. As of the year ended March 31, 2007, the company's regulatory filing with the U.S. SEC showed that it had subsidiaries in Austria, Brazil, China, France, Hong Kong, Hungary, Malaysia, Mexico and the United States, among others. The company has yet to submit its annual report for the year ended March 31, 2008. * * * Flextronics International Ltd. continues to carry Moody's "Ba1" probability of default and long-term corporate family ratings with a negative outlook. The company also carries Standard & Poor's "BB+" long-term local and foreign issuer credit ratings with a negative outlook. GERDAU SA: To Invest US$180 Million in CCA Tie-Up -------------------------------------------------- Gerdau SA has teamed up with Central American steel corporation CCA. According to Gerdau, it will own a 30% stake and invest some US$180 million in CCA. Gerdau's President Andre Gerdau Johannpeter commented to Business News Americas, "The association listed Grupo Gerdau as a leading company in Central America and the Caribbean. The region is strategic and of special importance to the group." About CCA CCA is a steel corporation in Central America. It has a steel plant in Guatemala, four rolling units in Guatemala and Honduras and commercial offices in Guatemala, Honduras, and El Salvador. The corporation also has distribution units in Guatemala, Belize, El Salvador, Honduras, and Nicaragua. CCA has installed capacity of 500,000 tons per year of steel and 690,000 tons per year of rolled products and also holds a minority share in Honduran company Intrefica. About Gerdau Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook. GERDAU SA: Quanex Shareholders Okay US$1.67 Billion Purchase ------------------------------------------------------------ Quanex Corp. told the Associated Press that its shareholders have authorized Gerdau SA to purchase the firm for US$1.67 billion. As reported in the Troubled Company Reporter-Latin America on Feb. 22, 2008, Quanex set a special meeting of stockholders for March 31, 2008, to approve and adopt the agreement and plan of its merger with a subsidiary of Gerdau. Stockholders of record as of the close of business on Feb. 29, 2008, were entitled to vote at the special meeting. The AP relates that "with about 90% of the shares represented, over 99% were voted for the deal." Quanex's unit Quanex Building Products Corp. was "spun off from the parent." It will replace Quanex in the Standard & Poor's SmallCap 600, the AP states. About Quanex Corp. Quanex Corp., formerly Michigan Seamless Tube Company, is engaged in the production of engineered carbon and alloy steel bars, heat treated bars, aluminum flat-rolled products, flexible insulating glass spacer systems, extruded profiles, and precision-formed metal and wood products. The two markets served by the Company include vehicular products and building products. The segments served by the Company include Vehicular Products, Engineered Building Products and Aluminum Sheet Building Products. Quanex has 27 manufacturing facilities in 12 states in the United States. About Gerdau Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook. HEXCEL CORP: S&P Holds BB Corp. Credit Rating with Pos. Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on aerospace supplier Hexcel Corp. to positive from stable. At the same time, S&P affirmed ratings, including the 'BB' corporate credit rating, on the company. About US$370 million of debt is outstanding. "The outlook revision is based on improving profitability and credit protection measures, benefiting from growth in core markets, operational leverage, and debt reduction, despite high levels of capital spending," said Standard & Poor's credit analyst Roman Szuper. The ratings on Hexcel reflect participation in the cyclical and competitive commercial aerospace industry, significant investment in carbon fiber capacity needed to support increasing jetliner production rates, and uncertainty arising from on ongoing proxy contest over director nominations. Those factors are partly offset by the company's position as the world's largest manufacturer of advanced composite materials, generally favorable market conditions, and financial profile that is somewhat better than average for the rating. The outcome of a proxy contest over director nominations remains uncertain until the annual meeting of stockholders, which is scheduled for May 8, 2008. OSS Capital, an activist hedge fund, is proposing three nominees for the board of directors and is opposing three members proposed by Hexcel. OSS, which owns 5.5% of Hexcel's common stock, stated its main concern as Hexcel's financial underperformance; as a consequence, OSS alleges that shareholder value is not maximized. OSS offers no specific actions to address its concerns, aside from its proposal for board nominees. The nominating and governance committee of Hexcel's board offered to add one of the OSS candidates to the existing board, but the offer was rejected. S&P will monitor the situation and any potential adverse effect on credit quality. Continued favorable conditions in core markets, ongoing gains in operating efficiency, and further strengthening in credit protection measures could lead to a ratings upgrade over the next 12 months. S&P could revise the outlook to stable if the slowing global economy has a greater-than-expected effect on the company's sales and profits. Hexcel's financial policy or strategic direction may change somewhat if OSS representatives join the board of directors either through a proxy win or a settlement with the company. S&P would assess the rating outlook if Hexcel's financial policy becomes more aggressive. Stamford, Conn.-based Hexcel is a leader in the composites industry, producing lightweight, high-performance carbon fibers, industrial fabrics, specialty reinforcements, carbon prepregs, structural adhesives, honeycomb, and composite structures for the commercial aerospace, defense and space, and industrial sectors. The company concentrates on serving growing markets in which it has competitive advantage. 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. SHARPER IMAGE: Seeks to Employ RCR Real Estate Advisors ------------------------------------------------------- Sharper Image Corporation has determined that it requires the assistance of an experienced real estate consultant in addressing a variety of real estate issues that are sure to arise in its bankruptcy case, like analysis, assessment, marketing and disposition of its leased and owned properties, Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice, PLLC, in Wilmington, Delaware, relates. Accordingly, the Debtor asks the U.S. Bankruptcy Court for the District of Delaware for permission to hire RCS Real Estate Advisors as its exclusive real estate consultant in its Chapter 11 case. The Debtor's primary purpose of employing RCS is to get RCS' assistance in assessing its properties in a way that maximizes value. Before the Petition Date, RCS had been engaged by the Debtor to conduct value analysis on its array of leases, and RCS has since been valuing the Debtor's own property in Arkansas. RCS' close coordination with the Sharper Image's management has made it well acquainted with the Debtor's businesses and property, Mr Kortanek explains. It is for these reasons and for the best interest of Sharper Image, its property, its creditors and all other interested parties, that it wisher to employ RCS. As real estate consultant, RCS will: (1) analyze all real estate assets owned by the Debtor and to conduct a review of the occupancy cost of each in relation to sales, volume and profitability. RSC is bound to discuss its findings and recommendations with Sharper Image after the review; (2) create a portfolio book for the Debtor's leases, indicating the current lease terms, sales, profits, occupancy cost and the store's contribution in relation to sales; (3) create a site ranking report by contribution, revenues, occupancy costs, for all or selected leases; (4) perform a rejection claim analysis on all or selected leases; (5) assist the Debtor in developing real estate goals -- the Real Estate Action Plan -- to determine which stores to close, renegotiate or retain under renegotiated terms, and existing stores to go forward with; (6) negotiate with landlords for the reduction of rents, for the modification or extension of terms for all or certain leases; (7) work with landlords and the Debtor for the accurate documentation of all lease modification proposals; to provide accurate and timely status reports regarding the status of these proposals; (8) attend in all court hearings, to meet with the Statutory Creditors' Committee and to meet with Sharper Image and its counsel; (9) coordinate with the Debtor, its counsel and affected landlords on all real estate matters particularly the status and on going changes of the Real Estate Action Plan; (10) perform desktop leasehold valuations for certain assets, to negotiate waivers, payout terms for prepetition cure amounts due to landlords in the case of lease assumptions, and conduct negotiations with respect to mitigating allowed rejection claims in the case of lease rejections; and (11) dispose all properties of the Debtor, by sale or otherwise, on the Debtor's terms and conditions, and subject to its sole authority and discretion by: -- reviewing all documents, -- marketing the Disposition Properties pursuant to a marketing program and budget, -- communicating with parties interested in the Disposition Property, -- responding, informing and negotiating with prospective buyers, and making recommendations to the Debtor, -- providing guidance to Sharper Image on methods to resolve issues that pertain to Disposition properties, -- working closely with the Debtor's counsel with regards to the hearing or auction, to obtain the attendance of all the interested parties through direct communications, supplementing the required notice process, -- working with the attorneys responsible for the implementation of the proposed transaction, reviewing documents, negotiating and assisting in resolving problems which may arise, and -- to appear in court during the term of retention, to testify or consult with the Debtor in matters involving the marketing or disposition of a Disposition Property. Inasmuch as RCS is employed by Sharper Image to perform highly specialized tasks, its compensation is result-oriented and directly related to the benefits received by the Debtor's estate in every transaction, requiring RCS to file periodic fee applications pursuant to Sections 330 and 331 of the Bankruptcy Code and in compliance with Rule 2016 of the Federal Rules of Bankruptcy Procedure, Mr. Kortanek says. RCS will be compensated on a per transaction basis based on a fee structure set forth in the parties' Retention Agreement. A copy of the Retention Agreement was not available as of press time. Given the transactional nature of RCS's engagement and the flat fee, percentage-based fee structure, the Debtor submits that recording and submission of detailed time entries for services rendered in this case is unnecessary and would be unduly burdensome to RCS. RCS will, however, file a final fee application in accordance with applicable Bankruptcy Rules and Local Rules. Ivan L. Friedman, president and chief executive officer of RCS, assures the Court that RCS is a "disinterested person," as that term is defined in the Bankruptcy Code and holds no interest adverse to Sharper Image and its estate. About Sharper Image Based in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- is a multi-channel specialty retailer. It operates in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it is also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The company filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D.D., Case No. 08-10322). Steven K. Kortanek, Esq. at Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the Debtor in its restructuring efforts. An Official Committee of UnsecuredCreditors has been appointed in the case. When the Debtor filed for bankruptcy, it listed total assets of US$251,500,000 and total debts of US$199,000,000. (Sharper Image Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SHARPER IMAGE: Court OKs Womble Carlyle Employment as Counsel ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorizes Sharper Image Corp. to employ Womble Carlyle Sandridge & Rice, PLLC as its counsel, effective as of the Debtor's bankruptcy filing. However, absent further Court order, the retainer to be held by Womble Carlyle as security until the firm files its final fee application will only be applied to costs and expenses incurred in connection with the Chapter 11 case, Judge Kevin Gross said. Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice, PLLC, in in Wilmington, Delaware, discloses that his firm does not maintain a separate firm policy or practice in making conflict-related determinations. Mr. Kortanek states that as a general philosophy, Womble Carlyle refrains from suing other professionals without the firm management's prior approval. The firm's position in this regard only addresses direct lawsuits, and does not prevent the firm from otherwise taking a position adverse to any professional in the Debtor's case or in any related proceeding, he says. As reported by the Troubled Company Reporter on March 10, in its motion to employ the firm, it is stated that in exchange for the contemplated legal services, Womble Carlyle will be paid based on its applicable hourly rates: Professional Hourly Rate ------------ ----------- Attorney US$120 to US$750 Paraprofessionals US$30 to US$450 Rebecca L. Roedell, executive vice president and chief financial officer of Sharper Image, stated that Womble Carlyle received a US$40,000 retainer from the Debtor as security for payment of the firm's fees and expenses for professional services to be performed relating to the preparation for and prosecution of the Chapter 11 case. Prior to the Petition Date, Womble Carlyle incurred a total of US$19,341 in fees and expenses which was paid prepetition from the Retainer. About Sharper Image Based in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- is a multi-channel specialty retailer. It operates in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it is also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The company filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D.D., Case No. 08-10322). Steven K. Kortanek, Esq. at Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the Debtor in its restructuring efforts. An Official Committee of UnsecuredCreditors has been appointed in the case. When the Debtor filed for bankruptcy, it listed total assets of US$251,500,000 and total debts of US$199,000,000. (Sharper Image Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ========================== C A Y M A N I S L A N D S ========================== ABC CAYMAN: Proofs of Claim Filing is Until May 1 ------------------------------------------------- ABC Cayman Banking Ltd.'s creditors have until May 1, 2008, to prove their claims to Anis Chacur Neto and Jose Eduardo Cintra Laloni, 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. ABC Cayman's shareholders agreed 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: Anis Chacur Neto and Jose Eduardo Cintra Laloni Avenida Presidente Juscelion Kubitschek 1400 – 4th Floor, Sao Paulo, Brazil Contact for inquiries: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, Grand Cayman KY1-1102 Telephone: (345) 949 8455 Fax: (345) 949 8499 KELLET HOLDINGS: Proofs of Claim Filing Deadline is April 31 ------------------------------------------------------------ Kellet Holdings Limited's creditors have until April 31, 2008, to prove their claims to Royhaven Secretaries Limited, 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. Kellet Holdings' shareholders agreed on March 14, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Royhaven Secretaries Limited Attn: Sharon Meghoo Coutts House, 1446 West Bay Road P.O. Box 707, Grand Cayman KY1-1107 Cayman Islands Telephone: 945-4777 Fax: 945-4799 MUTSUKI GLOBAL: Proofs of Claim Filing Deadline is May 1 -------------------------------------------------------- Mutsuki Global Investment Limited's creditors have until May 1, 2008, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Mutsuki Global'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: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands Telephone: (345) 914-6305 PARMALAT SPA: Can File Damages vs Citigroup, Says Parma Judge ------------------------------------------------------------- Judge Paola Artusi of a court in Parma, Italy, issued a ruling April 21, 2008, admitting Parmalat S.p.A. as a civil party to a criminal case against 10 Citigroup Inc. executives in connection to the dairy group's bankruptcy in December 2003, various reports say. According to Thomson Financial, the Citigroup managers are facing charges of fraudulent bankruptcy and abetting Par